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04-15-1997
• • I City council Agenda Packet April 15, 1997 r r v . _I Agenda No, 7^0/y Agenda Item _ Bate-~~ ~ , AGENDA CITY OF DENTON CITY COUNCIL April 15, 1997 Speci%' Called Mectirg of the City of Denton City Council on Tuesday, April 15, 1997 at 11:00 a.m. in the Council Chambers of City Hall, 215 E. McKinney, Denton, Texas at which the following items will be considered: 11:00 a. m. L Receive and open bids regarding City of Denton General Obligation Bonds, Series 1997. 2. Ordinance authorizing the issuance, sale and delivery of City of Denton General Obligation Bonds, Series 1997, levying the tax to pay same, and approving v4 authorizing instruments and procedures relating thereto. C E R T I F I C A 'r ii i certify that the above notice of meeting was posted on the bulletin board at the City 11311 of the City of Denton, Texas, on the uay of , 1997 at o'clock (a. m.) (p.m.) i CITY SECRETARY I NOTE: THE CITY OF DEiN'rON CITY COUNCIL CHAMBERS IS ACCESSIBLE IN ACCORDANCE WITI1'rEll: AMERICANS WITH DISABILITIES ACT. THE I` CI'T'Y WILL PROVID]? SIGN LANGUAGE INTERPRETERS FOR THE 1[EARING IMPAIRED ]F REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 506-8309 OR USE TELECOMMUNICATIONS DEVICES FOR TI11. DFA174'1'DD) BY CALLING 1-800-RELAY-TX SO THAT SIGN 1 ANGUAGL INTI:RI'RE'fER CAN BE SCHEDULED THROUGH 0 THE CITY SECR1 rARY S OFFICE. ACCO0379 i 0 • • • • $4,700,000 CITY OF DENTON, TEXAS GENERAL OBLIGATION BONDS, SERIES 1997 Sealed Bids Due Tuesday, April 15, 1997, at 11:00 AM, CDT The following ratings have been assigned: MOODY'S INVESTORS SERVICE, INC. "A 1" STANDARD & POOR'S RATINGS SERVICES "AA-" A Division of The McGraw-Hill Co.-oponles, Inc. 4 4 k ~ I ~ , ~RST SOUTI-f AIST COMUNY ~yy • ~ ~ ¢~n ~f ~ S <~v~{la IP ~rl A 4i~' . ~~~~y1,fT'fy 4"',c~Y. tr Y.Y''~- • • Moody's Municipal Daily Rating Recap i Denton, Texas Rating date: April 1, 1997 ' Mooi:Ws ra"np: Al Ocncral Obligation Bonds, Series 3997 Safe: S4,700,ax1 Satlsfaclorily Molrlolned Financial Operallons Dale Of Sang: April IS Type: Competitive Generally conservative management practices roull in SeW ty: Gcoctal obligation, limited tax. ample CcrierAl rund rescrve.x of 23% of General Fund 1 Use of Proceeds: Hnnd proceeds will be u..+ed for revenues fur fr+cit 1996. Sales tax revenue+eumprise an mrecl, drainage, and parks improvements, equal portion of the top two revenue pruviderv at 32% Lost Rating change: April 1969: A in Al along with property taxes. Given the economically scn.+i- Credlf Comment: Assignment of the Al rating on the tive nature of one of the top revenue sources, sales tax, s rc i management general obligation debt it based on the following e to maintain appruprn General credit factors: mild reserve levels t to offset any downturn in this n ae• nUC 50UfCC. Drversificatlon of the Local EcenomyConlinues High Debt Burden; However, Dobt Position Is fknwn derives b-mcrts from its location in the pal. Manageable 1aVrort Werth Nletroplex. The city eonlinncs to atiracl a fkbt burden iv high a 6 2%, which is Ahnust dnublu the wide range of Industrial and new commercial businesses medians for comparable cities. However, ibis is ptinta- and provides increasing levels ofempluyment opportuni- rily attributable in overlapping colrties which contribute lies for area fe,identc. Modest recovery of taxable values approximately 7U46 to overall dcht burden. Debt pnsitiun ever the pass few years, has allowed vtluG to rebound to remains manageable, with 69% of principal retired in 10 19ytl levels. 'Phis moovery follnws several years of a yettrs and consuming d moderate 14%L of r sluggish area economy coupled with the foss of Texas expendituro. Modest additional debt rp issuance ice t, tF uttiei• lnsirumenri (furmerly tbs., top taxpayer) which eomrih- pared sted tiled to decltnas in taxabic values. The area employment ongoing pared. However, tg of the city's CrP, and projected borrowing of overlapping g en entities such as the h;l+c is stabilized by the presence of two major slate school disuicl, and motlesl rate of tax bme gruwth, uliVVU116cs, and the presence of uric of the key Federal immediate improvement. of ovefall debt position 14 not Enwrgcricy h1anngt:mcnt Agency sitex in dw cuunuy, anticipated. Proceeds of the current offerings will pro- Socioeconomic indices, while trending ciotcly with stoic norms, are skewed somewhat ncgntivciy duc to a large vtdc funds for streriv, drainage, and parks Improvements. studcol prewncc. . aenlyst; JUM 1, !finds (212) 663••4424 • ~ v • 0 • • I , i I I Denton, Texas Aurvrts: Kin G'. tFona2rb20a•11t0, DindBode4 212.209.1213 _ RW RATM t CAE)ffrow ! tronia, PeteibHr/Pacca; Victor Equip- serve goal of 12.504. Operating tevenues 14.7W 60 Wes w 1947 et6►pd 1, 1997MFet 15, ment. and Andrew Corp„continuestoex• are diversified, with property and sale 19992017 Ace panel and further diversifies the economy. taxes and franchise fee accounting for i Unemployment declined to 3.1 % in 1996 nearly 85% of the total budget. Public G18mi nn4marMMn Tvi-- from a high of 7.5% in 1991. Economic safety continues to be the largest expendi- activity should amain vibrant due to its tureat/0%ofthebudget. Thecity projects i ~etioo7cro9rr7n prostusury to the growing Alliance Airport a modest $300,000 deficit based on the The rating on Denton, Texas bonds region, whKh includes the American Air. 1997budgrt due to conservative estimates, fleas a stable economy that is anchored lines maintenance facility, the Federal Ex- Overall net debt is moderately high at largely in the services sector, sound as. press International routing centegseveral $2,822 per capita and 6% of market value. sessed valuation growth, conservative fis- distriburiodwarchouse facilities, the new Although nearly $23 million of authotired cal management resulting in healthy Texas Motor Speedway racetrack, and the debt will be issued in the next five years, reserves, and moderately high debt. soon•to-beconstructed $1.3billions Intel future debt ratios should remaitstabiedoe Denton, which is 36 and 38 miles from Corp. computer-chip plant. Taxable prop. to the rapid principal repayment schedule, Dallas and Fort Worth, is a regional eco. erty slue have risen in the past three with 68% scheduled to retire in 10 years. nomic centre to the mersoplex. The econ• years, increasing .296 million to $2.17 omyispredominantfyservice related, with billion in fiscal 1997, after sustaining OUTLOOK the bulk of employment focused on higher loshes from 1991.1991. Economic diversification, continued tax• education, health care, and government Financial performance is strong and sta• able property base growth, and mainte- positions. Major employers include the ble and is due largely to prudent fiscal nance of healthy general fund reserve Ua7versiryof North Texas, Texas WomenS management practices. Despite a address concerns related with assessed University, two healthcare facilities , Den- $200,000 shortfall in fiscal 1996, the un- valuation declines from 1993-1994 and ton Independent School District, ar,d the designated general fund balance remains the modest operating deficit in fiscal 1996. city. The manufacturing industry, com- healthy at $6.3 million, or 21 % of expert- Further positive trends could lead to a posed of companies such as Boeing Elec• ditures, exceeding the revised annual re- rating upgrade. i _r • 0 • • I Prepacd by: I eFMTS0JMEff(0MPAW TABULATION OF BIDS RECEIVED AT SALE OF S1,700,0W CITY OF DENTON, TEXAS GENERAL OBLIGATION BONDS, SERIFS I997 SELLING TUESDAY, APRIL 15, 1997, AT 11:00 AM, CDT TRUE INTEREST ACCOUNT MANAGER COST 1 I . i 1 r • r _i~ . Sol V' MIR" "Bond Bu?ex's" I» des of 20 hSunlclpal Bondi Bads Val"don of Par Boti& ' T7a most important guile a to what the Municipal Bond hlarkd has done in one time period versus ano0sd is the 'Bond Buyx/i 20 Bond Index. Published on Thuncray of each aoek, it is the accepted guide of the Municipal Bond Industry to detemsine nerds oral movements of intrn t rain in the nsorkel To compute the mdrs each axk a poll is Urn of several large investment banking houses on the 30 year price ! leap es d in terms of an Intcreat rate) of the outsia ding bonds of certain mun 6palities. k week 1967 128$ 1989 1714 1991 1992 .1293 .1324. 1443. 149E 1971 I January 1 695 7 744 703 7,09 6.32 6.17 5.34 6.66 5.37 570 2 6,70 7.81 7,40 7.03 7,13 6,40 6,19 5.31 613 5,50 3,71 3 663 7.61 7.29 714 7,10 6.56 6.16 5.29 6.44 5,40 5,71 4 4 6.54 731 7.27 7.19 7.06 6.59 6,10 3,28 6,49 546 5.71 k S 6.56 7,00 6.65 5.73 Nbmary 1 6.57 7.49 729 7,24 6.86 671 6.04 3.25 6,40 S,40 5.70 2 6.67 7.40 7.39 7,20 6.91 674 5,97 536 6.38 5,37 5,62 3 6.62 7.55 7.54 7.16 6,97 675 5.85 5,42 6.18 333 5.56 4 6,59 7.32 755 7.27 701 6.74 5,60 5.58 6,11 568 5.63 5 557 Manh 1 6,54 7,47 7.36 7.25 7.06 6.71 5.47 5,84 6.08 5.59 570 2 661 7.67 732 715 7.06 6.76 5.58 5.88 6.18 5.81 5.75 3 6 68 7.15 7 12 732 7.13 6.79 5.71 5.84 6.06 1.86 5.78 4 6,79 7,89 772 7.31 714 677 5.78 5.92 6.09 5.90 511 S 7.90 1,64 7.33 6.07 6 07 April 1 693 7.Bo 756 733 7.06 6.73 536 6.34 6.03 3.66 5.86 2 7.27 7.81 7.54 7.31 7.02 6.66 5,14 6,22 6.01 6.03 3.66 3 110 7.87 7.44 7.39 6.98 6.60 4.7U 6.19 5.96 5.94 4 1.82 777 7.40 7.51 701 6.68 3.67 6.16 6,06 511 S 7,83 6.69 5.75 May 1 196 7.84 736 754 6.9! 6,64 5.71 6.16 6,10 606 2 7.82 7.85 7.36 7,39 6.93 6.54 5.69 6.32 5.96 6.00 3 8.31 7.97 7.18 7.29 6.94 6.51 5.11 6,14 5.92 5,96 4 1.03 7.96 7.11 7.26 6.98 636 573 6.13 5,83 5,67 5 7,26 6,97 5,94 June 1 7,91 7.X1 7 721 706 6.57 5.67 6,09 5.79 5.94 2 713 7.78 6.95 7.20 7.19 6.52 5.68 5.96 5.75 6.12 3 7.63 773 6.88 728 7.15 6.46 5.61 6.D4 5.86 6.06 4 7.72 777 7.08 7.27 7.13 6.42 5.37 6.16 5.82 5.97 5 774 7.02 6.28 5.91 July 1 7 771 700 7.24 7,10 636 5.55 6.27 3,91 5.94 2 7.67 1.77 691 7,21 797 6.17 5.15 6.22 5,61 6,DO 3 7.66 7.77 6,95 7.17 7.04 6.16 3.50 6.22 3.99 3.88 I 4 7.72 7.76 8.95 7,15 7,00 6,05 3.61 6.22 5.97 5.66 / 5 773 3,09 3,63 Augusl 1 7.86 7 666 708 6,99 6.06 5,61 6.16 6.03 5.79 2 7.79 7.93 7.02 7.22 6.94 6.05 345 6.25 6.07 567 3 7.61 7.05 7.09 1.26 6.88 6.21 3.40 6.22 6.12 3.74 4 7.60 7,60 7.35 7.56 6.36 6.31 333 6.21 6.08 5.75 5 7.16 7.47 6.85 5,98 5.86 SeptemM I 8.05 776 7 7.41 6.86 6.24 5.35 6.16 5.90 5.95 2 8.39 767 7.16 735 6.81 6.15 5.24 6.18 5.83 5,89 3 8.32 759 7.33 741 678 6.27 5.27 6.24 3.91 5.68 4 8.30 7.62 7.40 733 6.73 6.33 5.30 6.37 6.00 376 S 7,64 $..10 6.43 / tktobct 1 813 73 t 7.27 7.48 6.64 6.27 5.30 6.50 3.88 5.70 , 2 866 752 7.19 716 6.66 6.29 5.20 6,44 312 573 3 917 7.43 7.19 7.46 6.67 6.34 3.20 6.49 5.72 5.72 4 8.72 7.36 7.22 7.43 6,73 6.53 331 6.64 S.76 5.73 S 8,43 6.69 662 5.70 Novcm2re 1 1.90 713 111 7.29 6.71 6 51 .51 5.45 6.63 370 5.67 + 0 2 603 7.44 7.20 7.24 6.69 6.38 5.46 6.96 5,68 560 3 1.91 7.50 1.12 1.15 6 73 6.28 5,46 7.06 5.65 3.55 4 7.96 7.50 7,08 7,13 6.18 626 549 7.03 5.65 334 5 7D4 7.01 5.54 ' December 1 790 766 7.00 7,06 6.80 6.2$ 3.46 6.90 333 337 2 8.10 7.66 6.99 7,05 6.71 672 333 6.83 5.51 3.66 3 8,03 7.66 6,96 7.11 6,66 6,23 S36 6,77 511 3.67 4 7.93 7.51 6,97 7.14 6511, 6.19 334 6,70 3.44 5.66 5 7.06 130 6.17 329 671 1 k 9, 01111141 • • • r ~4rA._;Fw~A"dF.Yr'f~aPei'~'?2F'f'.F:L".?:R,1t9eN!7~~!'L^1*dE1,~"$P.Yk6~'1"7577'd!Y'_4d3E1,Y0'Ff`~"~'f~~'~ SlVY,#~'MFi.~ i` r I NET BOND ISSUE'S INTEREST BUYER'S AVERAGE HISTORICAL SALE INFORMATION SALE DATE RATE INDEX LIFE $2,515,000 City of Denton, Texas General Obligation Bonds, 5/196 5.890574% 6,06 12.310 Years Series 1996 _ 55,190,000 City of Denton, Texas Certificates of Obligation, 517196 5.796203% 606 9.062 Years Series 1996 $1,610,000 City of Denton, Texas General Obligation Bonds, 2/21195 5,859554% 6.18 11.280 Years Series 1995 _ $2,000,000 City of Denton, Texas certificates cf Obligation, 2121/95 5.9007659E 6.10 12.905 Years Series 1995 $2,705,000 City of Denton, Texas Certificates of Obligation, 1 M93 5.0928949E 5.45 10.389 Years Series 1993A • $2,975,000 City of Denton, Texas General Obligation Bonds, 3/16193 5.44039E 5.58 10.913 Years Series 1993 • 0 • • ^r CITY OF D.ENTON, TEXAS (Den on County) $4tj 00,000 GENERAL OBI LIGATION BONDS, SER]di,S 1997 f • • ~ • Sealed Bids Due Tuesday, April 15, 1997, at 11:00 AM, CDT t i s r t '~r d V i, y 1 ^ 4~a t f J4' y t' , .r..y~...n✓'~! ~iki mmi y v fi R tl t+ ♦ R 1 Y j 4 t • • • I NOTICE OF SALE AND BMDL1G INSTRUCITONS I ON $4,700,000 ' CITY OF DENTON, TEXAS (Arlon County) GENERAL OBLIGATIION BONDS, SERIES 1997 Sealed Bids Due Tuesday, AprU l5, 1997, at 11:00 ATI, CDT THE BONDS WILL BE DESIGNATED AS'Ot1ALIFIED TAX-EXEMPT UBLIGADONS" FOR FINANCIALINSTITUTrONS. THE SALE BONDS 0H12RED FOR 5ALE AT COMrt.TrTwZ BItDHNG 'Me City of Anton, Texas (the "City") is ofrering for sale its S4,700,003 General Obligation Bonds, Series 1997 (the )ads"). Annt:FSs os Bros Sealed bids, plainly marked "Bid for Bonds", should be Addressed to "Mayot and City Council, City of Denton. Texas", and delivered to the City Secretary at City Hall 213 E. McKinney Street, Denton, Texas, prior to 11:00 AM, CDT, on the date of the bid opening. All bids must be submined on the Official Bid Form, without alteration or intedineation. Brno aY TELEPHONE OR FACSIMILE Bidders must submit SIGNED Official Bid Forms to David Medanich, First Southwest Company, 1700 Pacific Avenue, Suite 500, Dallas, Texas 75201, and submit their bid by telephone or facsimile (fax) on the date of , the sale. Telephone bids will be accepted M (214) 953-4054, between 10:00 Of. CDT and 1030 AM, Cur. Fax bids trust be received between 10:00 A.M. CDT and 10,30 AM, CDT, on the date of the sale at 1214) 9534050, attention: Rhonda Yaildcrsline ja Flnl Southwest Company wW not be responsible for subr itting any bids received after Ibe above deadl;na" First Southwest Company assumes no responsibility or hibility with spay to any irregularities associated with the submisslon of d, bids if telephone or fax opdom are exercised. PLwtt AND Timm or Btu Orr.NiNG... The bids for the Bonds will be publicly opened and read in the City Council Chamber of the City Hall at I I:00 AM, CDT, Tuesday, April 13, 1997. Aw'ARD Or THE BONDS The City Council will take action to award the Bonds (or reject all bids) 0 a meeting scheduled to convene ut 11:00 AM, CDT, on the date of the bid opening, and adopt an c inarsti authorizing the Bonds and approving the Official Statement (the "Ordinarxe'). TICE BONDS DescaHrrioN The Bonds will be dated April 1, 1997 (the "Bond Date"). Interest will accrue from the Bond Data and will be due on Fcbniary 15, 1998, and each August 15 and February 15 thercalter until the earlier or maturity or prior redemption. The Bands will he issued only in fully registered form in any integral multiple of $5,000 for any one maturity. The Bonds will mature on / February 15 In each year ss followr. ~ MATITtfIY SCHEDULE t j Principal Principal Principal t • 1 Year Amount Year Amount Year Amount • • 1998 $ 25.000 2005 $195,000 201 I $ 280,000 r 1999 135,000 2006 205,000 2012 295,000 2000 145,000 2007 220,000 2013 315,000 2001 153,000 2008 235,000 2014 335,000 2002 160,000 2009 245,000 2015 355,000 2003 175,000 2010 265,000 2016 375,000 r 2004 185,000 2017 400,000 I • O E BOOK•£NTRY•ONLT slmkt The City intends to utilize the Book-Frtry Only System of The Denosilory Trust Company 1"DTC") See "The Bonds and Certificates • Bonk-Entry-Only System" in the Official Statement s REDEMPTION... The City rest•ves the right, Wits option, to telecra Bonds having stated maturities on and after February 15.2008, in whole or in part in principal Pmounts of $5,000 or any integral multiple thereof, on February 15, 2007, or any date thereafter, at the !I par value thereof plus accrued interest to the date fixed for redemption. SERIAL BONDS OP SERIAL BONDS AND TERM BONts5... Bidders may provide that all the bonds he issued as Serial Bonds maturing f in accord with the Maturity Schedule slrow n above (Alternate 1) or as a cumbinolion of Scnal Bonds and Terms Bonds (Adremate 2), but a bid with all Term Bonds is nod permitted. Ahermate 1 Serial Bonds: i Serial Bonds maturing on February 15. 1998 through February 13, 2017. Aliewar 2 Serial Bonds and Term Bonds: Sena) Bcnds maturing on February 13. 1998 through February 15, 2012, aDd one or two term bonds fff consisting or the February 15, 2013 through February 15. 2(117 matuntics with each term consisting of two or more consecutive annual principal amounts accumulated from the maturity schedule shown above. S14NDATORY SINKING FUND If the successful bidder elects to alter the Matunty Scbelule reflected above and convert the prindpal amounts of the Serial Rinds maturing in the years 2013 ihrcxagh 2017 into -rcrm Bonds", such 'Term Bonds" shall be 11, subject to mandatory redemption on February 15, 2013, or the first Fchruary IS next following the last maturity for Serial Bonds, and annually thereafter on cab February 15 until the stated malunty for the Term Bonds at the redemption prices of par plus accrual interest io the date of redemption. TTe principal amounts of the Tenn Bonds to be redeemed on each mandatory redemption date shall he the principal amounts that wood have teen due and payable in the Maturity Schedule shown above had no conversion to Term Bonds oceumed, M least thirty ("i0) days prior to each mandatory date, the Pa)i,.a Agent/Regisuar shall select by lot the Term Bonds to be redeemed and cause a notice of redemption to be given in the manner provided in the Official Statemert The principal amount of the Term Bonds required to be redoemed porsuora to the operation Of such mandatory redemption provisions nuy be reduced, at the option of the City, by the principal amount of the T'errn Bonds of the same maturity wb'. h at )east fifty (4^.1 days prior to a mandatory rodemptior date 0) shall have been acquired by she City at a price not exceeding the principal amount of such Term Bonds plus accrued ine i st to the date of purchase and delivered to the Paying AgenuRegistrar for cancellation cr (ii) shall have been retlecrod pursuant to the optional redemption provisions and not theretofore credited against a mandatory redemption rejuirersrni. j PAT1NO AUNT(RF.GlnRtP The initial Paying a gemuRegistrw shall he Texas Commerce Bank National Association, Dallas, r Texas (ace "the Bonds • Paying AgenORegistrar" in the Official Statement). SOM F OF PA%MENT The Bonds are direst and voa,d general obligations of the C Dewon. Texas, payable out of the ; receipts from an ad valorem tax levied, within the limits prescribed by law, on ail taxable paoperty located within the City, a; p+; provided in the Ordinance. Further Lk-tails regarding the Bonds are set fcnh in the Official Statement. • CoNnnioNS OF THE SALE T1 PIE or IIJOS AND INTEREST RATIA Tho Bonds will be sold in one block on an "All or None" basis, and at a price of not less than their par value plus accrued interest from the dale of the Bonds to the date of delivery or the Bonds. Bidden are invited to name the rate(s) of nilmst to be borne by the Bonds, provided that each rate bid must bo in a multiple of v8 or i% tr m or I% and the ties effective interest rate must net exceed IS%. The highest rate bid may not exceed the lowest rate bid by more than 2% In rate. Interest rates for maturities on or after February 15, 2008 shall be struclumJ in ascersding order such that for each succeeding ` maturity, rates shall be equal to or greater than the inloresl rate for the nururity of the preceding year. No limitation is imposed upon • bidders as to the number of rates or changes which may be used. All Bonds or one maturity mum bear one and the same rate. No O • bids involving supplemental interest rates will be considered. BA.sm FOR AWARD The sale of the Bonds will be awarded to the bidder making a hid that conforms to the specifications herein and which produces the lowest True Interest Cost rate to the City. Tive True Interest Cost rate is that rate whlch, when used to compute the total present value as of the Dated Date of all debt scrvlca payments on the Bonds on the bails of send-annual compounding, produces an amount equal to the sum of the par value of the Bonds plus any premium bid (but not Interest accrued ' from the Dated Date to the dote of their delivery). In the event of a bidders error in interest cost rate calculations. the Interest rates, and premium, if any, set furth in the Official Bid Form will be considered as the official bid. ii , s • • • i GooD FArr" DEK61T A Good Faith Deposit, payable to the "City of Dcnion, Texas", in the amount of $94,000.00, is required. Such Good Faith Deposit shall be a bank cashier's check or certified check, which is to be retained uncashed by the City pencling the Purchaser's compliance with the terms of the bid and the Notice of Sale and Bidding Instructions. The Good Faith Deposit may accompany the Official Bid Form or it may be submitted separately, If submitted separately, it shall be made available to the City prior to the opening of the bids, and shall be accompanied by instructions from the bank on which drawn which authorize its use as a Good Faith Mposit by the Purchaser who shall be named in such instructions. The Good Faith Deposit of the Purchaser will be returned to the Purchaser upon payment for the Bonds. Na interest will be allowed on the Good Faith Deposit In the event the Purchaser should fail or refuse to take up and pay for the Bonds in accordance with the bid, then said check shall be cashed and accepted by the City as full and complete liquidated damages. The checks accompanying bids other than the winning bid will be returned in mcdiately after the bids a-e openaL and an award of the Bon is has been made. DEL!"VERY OF THE BONDS AND ACCOMPANYING DOCUNIFY" CUSIP NustaEtts . , . It is anticipated that CUSIP identification nutribeirs will appear on the Bonds, but neither the failure to print or type such number on anv Bond nor any error with respect thereto shall constitute cause for a failure or refusal by the Purchaser to accept delivery of and pay for the Bonds in accordance with the lerms of this Notice of Sale and Bidding Insulations and the iemu of the Offcial Bid Form. All expenses in relation to the printing or typing of CUSIP numbers on the Bonds shall be paid by the City; provided, however, that the CUS(P Service Bureau charge for the amig?momt of the numbers shall be the responsibility of and shall be paid for by the Purchaser DELIVERY OF BONDS Initial Delivery will he accomplished by the issuance of one Initial Bond (also called the 'Bond" or "Bonds"), either in typed or printed form, in the aggregate principal amount of $3,700,000, payable in stated insldiments to the ! Purchaser, signed by the Mayor and City Secretary, approved by the Anomey General, and registered and manually signal by the CompuoUer of Public Accounts. Upon delivery of the Initial Bond, it shall be imrmedialely canceled and one definitive Bond for each mutunty will be registered and delivered only to Cade & Co., and deposited with OTC in comta`don with DTCs Book Entry-Only System. Delivery will be at the principal office of the Paying Agent/Reghtyar. Payment for the Bonds must be made in iminevliately available run& for unconditional credit to the City, or as nthcrsvise directed by the City. The Purchaser will be - given six business days notice of Oe time fixrd for delivery of the Bonds. It is anticipated that delivery of the Booths) can be matte on or zboin: May 20, 1991, and it is u.sdentocd and agreod that the PurOh will accept dr1r cry and make payment for the Bonds b} 10.00 Alert, CDT, on Slay 20, 1997, or thereafter on the date the Bond is tendered for delivery, up to and including June 3, 1997, if for any reason the City is unable to make delivery on or before June 3, 1997, the City shall immediately contact the Purchaser and offer to allow the Purchaser to extend its offer for an additional thirty days. If the Purchaser does not elect to extend its offer within six days therealer, then its Good Faith Deposit will be rerumed, and bah the City and the Purchaser shall be relieved of any further obligation. In no event shall the City be liable for any damages by reason of its failure to deliver ft Bonds, provided such failure Is due to circumstances beyond the City's reasonable control. CONnrrlr)NS To DELIVERY The obligation of the Purchaser to take up and pay rot the Bonds is subject to the Purchasers receipt of (a) the legal opinion of McCall, Parkhurst & Horton L, LT., DWI&%. Te).as, Bond Counsel for the City ('Bond CounW"), ib) the j` no-litigation certificate, and (c) the certification as Io the Official Staterrcnt, all as further described In the Official Statement i In order to provide the City with information required to enable it to corrq.ly with certain conditions of the Internal Revenue Code of 1956 relating to the exemption of imcrat on the Bonds fwm the gross income of their owrters, the Purchaser will be required to ! complete, execute, and deliver to the City Ion of before the 6h business day prior to the delivery of the Bonds) a certif:ation as to Is their "issue price" substantially in tbe form and to the effect attached hereto or accompanying ddt Notice of Safe and Bidding Instructions. In the event the successful bidder will not reoffer the Bonds for sale, such certificate may be modified in it marsm approved by the City. In no event Will the City fall to dellver the Bondi as a result of the Inidal Punhaser s Inability to sell a • 11 svhstandal amount of the Bonds al a particular price prior to debsery. Each bidder, by Submitting its bid, agrees to complete, execute, and deliver such a certificate by the date of delivery of the Bonds, if its bid Is :AcepW by the City. It will be the responsibility of the Purchaser to institute such syndicate reporting requirements to make such investigation, a tAherwise to ascertain the facts necessary to enable it to make such certification with reasonable oerturil) Any questions concerning such certification should be direeW to Bond Counsel. LEGAL Or1N70NS The Bonds are offered when, as and if issued, subject to the approval of the ARotncy General of she State of ` Texas. Delivery of and payment for the Bonds is subject to the receipt by the Purchaser of opinions of Bond Counsel, to the effect I _ • that the Bonds are valid and binding obligations of the City and that the interest on the Bonds will be excludable from gross income • • for federal income tax purposes under existing law, subject to the matters ,described under "Tat Matters" hemp, including the altcrrtaive Tnimrnum tax on corporations, CERTIFICATION Of 017743AL STAI EViENT... At the time of paymen' fa and Initial Delivery of the Bonds, the City will execute and r deliver to the Purchaser a certificate in the form set forth in the Officiaf Statement ifl • f e f I' Ifs{I CHANGE IN TAx F_xE%ln STAN s....At any time before the Bonds are Icrsdered for delivery, the Purchaser may Aiihdraw its bid if I the interest received by private holden on obligations of the same type and character shall be declared to he includable in gross r income under present federal income tax laws, either by ruling of the Intemal Revenue Service or by a decision of any Federal court, or shall be declared taxable or be required to be taken into account in computing any federal income taxes, by the to oa o` any federal income tax law enacted subsryuent to the date of this Notice of Sale and Bidding Inetruclions, GENERAI, FINANCIAL AD%WR Finl Southwest Company is employed as Financial Advisor to de City in connection with the ;ssuance of 1 the Bonds. The Financial Advisor's fee for services rendered w.Ih rcvpect to the sale of the Bonds is contingent upon the issuance and delivery of the Bonds, First Southwest Company may submit a hid for the Bonds, either independently or as a member of a syndicate organized to submit a bid for the Bonds, First Souhwest Company, in its capwry as Financial Advisor, has relied on the opinion of 1. Bond Counsel and has not verified and dens not assume any rcspvn.ibility for the information, covenants and representations i contained in any of the legal documents wish resprt to the federal income tat status of the Bonds, or the possible impact or any f4f present, pending or future actions taken by any legislative or judicial bodies. Ijuhe normal (nurse of business. the Financial Advi t may from tints to time KIl inveetment securities to the Cily for the invrstmcnt of bond orncteds or other funds of the City un n-Ihc re rocit of the City. BLt'E SM 1.Asys By submission of its bid, the Purchaser repreknts that the sale of the Bonds in states other than Texas will be made only pursuant to exemptions from registration or, whore necessary, the Purchaser will register the Bonds in ac:urdance with the l' l securities law of the stales in which the Bonds are offered or sold, The City agrees io cooperate with the Purchaser, at the Purchaser's written request and expense, in registering the Bonds or obtaining an exemption from registntinn in any state where such acticn is necessary, provided, however, that the City shall not be oblig.ded to emote a general or special consent to scrvke c,f process in any r 1, such jurisdiction. i1 NOT AN OFFER TO SELL... This Notice of Sale and Bidding Lutructions does not alone constitute an offer to sell the Bonds, but is merely notice of the sale of the Bonds. The offer to soil the Bonds A being made by means of the Notice of Sale and Bidding I t Tnstructions, the Official Bid Form and the Otfcial Statement Prospective purchasers ac urged to carefully examine the Official If Statement to determine the investment qua!ay of the Bonds. IWANCL or ADDITIONAL DEBT... The City does cot anticipate the issuance of additional general obligation debt within the next 12• months. RATINGS ...The presently outstanding tax supposed debt of she City is rated "A I" by Mowdy's Inveslun Service, Inc, ("hfood)'y 7 and "AA-" by Standard & Psmr's Ratings Orcup, a division of McGraw-Hill ("S&P" The City afro has five (5) issues outstanding which are rated "Aaa" by Moody:s and "AAA" by S&P through insurance by various commercial insurance companies. Applications for contract ratings on this issue have been made to both Moodys and S&P. The results of their determinations will be provided as soon as possible MUNICIPAL BOND INSUxsNCE... In the event the Bonds are qualified for municipal bond insurance, and the Purchaser desires to " purchase such insurance, the cost therefor jKbe nald by the Purchaser, Any fees to he paid to the roting agencies as a result of said insurance gjal be call b Iv It will he the responsibility of the Purchaser to disclose the existence of insurance, its semis and the effect thercor with respect to the rtsoffenng of the Bonds, j THE 0111CIAL STATEMST AND COMPLIANcir w1TH SEC RcLF l4e'242 The City has prepared the accompanying Offtei al Statement and, for the iimised purpose of complying with SEC Rule 15(312, deems such Official Statement to to final as of its date f within the meaning of such Rule for the purpose or review prior to bidding. To the best krsowdedge and helief of the City, she Official Starem:nl contains infuriation, including financial information or operating data, concerning every emny, emerpnse, fund, acerWnt, Or person that is material to an evaluation of the offcnng of she Bonds. The City has not failed to comply with any such undertaking. Representations mode and to be made by the City concerning the Absence of material misstatements and ondssions in a Official I Statement are addressed elsewhere in (his Notice of Sale and Bidding InsrrucUoms and in the Official Slatem eni. 'fhe City will furnish to the Purr haver, or Purc :saw, act ng through a doignalnl sc,dor representative, in accordance with ' instructions received from the Purchaser(s), within worn (7) husiness days from the sale date an aggregate of 100 copies of the _ f Official Staltini including a like number of topics of any Supplement(s) reflecting inierem rates and other terms mlatipg to the • • initial moffenng of the Bonds, The cost of a reprinted Official StatemroL if the Purchaser(s) shall so elect, and the cost of any Official Statement in excess of the number specified shall be prepared and disinhuieJ at the cost or the Purchasers?. The Purchacerlsl shall he responsible fur providing in writing the initial reoffering prices and other terms, if any. to the Financial Advisor J by the dose of the next business thy after the m ard. Excgpt as noted above, the City ssuwi no respMtsibilily or obligation for the disinbution or delivery of any tropics of the Official Statement in conrsation with the offering or reoffering of the subjrxa smuritics. IV i i~ nor e r CONTINUING DvCI MCAa ACRUMAY7 The City will agree In the Ordinance to provide certain periodic Information and - notices of material events in accordance with Securities and Exchange Commission Rule 15(2•)2, as described in the Official Statement under "Continuing Disclosure of Information". The Purcbmet it) obligation to accept and pay for the Bonds is condidoned upon delivery to the Purchaser(s) or (their) agent of a cen fled copy of the Ordinance, containing the agreement described under such heading. Antim 9Ai, CoPtEM Or Ntmce, BID FOAM AM7 STATLmyw. , . A limited numbs of additional copies of this Notice of Sole and Bidding Instructions, tle Official Bid form and the Official Statemmt, as available ova and above the normal mailing, nuty be obtained el the offices of First Southwest Company, Investment Bankers, 1700 Pacific Avenue, Suite 500, Dallas, Texas 75201, Financial Advisor to the City. On the date of the safe, u:e City Council will, In the ordinance authorizing the Issuance of the Bonds, confirm its approve) of the form and content or'he Official Statement, and any addenda, supplement or amendment thereto, wid authodu its im in the reoffering of the Bonds by the Purchase JACK MILLER Mayor City of Denton, Texas i ATTEST: )ENNIM WALTERS , City SWrLuy April 1, 1997 'r • I i i ' I v j 1 ryr+.-~+M ~ Y~.4 C Y a y ~ a ~ e., c s r f , BONDYEARS f Booda Accumulated Bonds Maturing Amount Bond Years Bond Years Maturing I 1998 f 25,000 21.806 21106 1998 1999 135,000 252.750 274.556 1999 i 2000 145,000 416.472 691.028 2000 r 2001 155,000 600.194 1,291.222 2001 2002 160,000 779.556 2,070.778 2002 2003 175,000 147.639 3,098.417 2003 2004 185,000 1,271361 4,369,776 2004 2005 195,000 1,535.081 5,904.861 2005 2006 205,000 1,818.806 7,723.667 2006 2007 220,000 2,171189 9,895356 2007 h 2008 235,000 2.554972 12,450.528 2008 2009 245,000 2.908.694 15,359.222 2009 2010 265,000 3,41L139 18,770.361 2010 2011 280,000 3,884.222 22,654,563 2011 f: 2012 293,000 4,387.306 27,041 AN 2012 2013 315,000 4,999350 32,041.639 2413 2014 335,000 5,652.194 37,693.633 2014 2015 355,000 6,344.639 44,038.472 2015 2016 375,000 7,017.083 51,115.556 2016 2017 400,000 7,948.689 59,D64.444 2017 ; Average Maturity 12,567 Yeah 4 4 j I I _ f 1 ` 10 P";6" 4 • • 1 I I OMCL4L BID FOR.'11 11 Honorable h1ayor and City Cot,ncil April 15.1991 + City of Denton, Texas 11 Members of the City Council: Reference is made to your Official Statement and Notice of Sale and Bidding Insmiions, dated April 1, 1997 of $4,700,000 CITY OF DENTON, TEXAS GENERAL OBLIGATION BONDS, SERIFS 1997, both of which constitute a pan hereof For your legally issued Bonds, as described in said Notice of Sale and Bidding Instrucbens and Official Statement, %'e will pay you par and aimed interest from dine of issue to date of delivery to us, plus a cash prerniurn of $for Bonds maturing and bearing interest as Hlo%s: Principal Interest Principal Interest Principal Interest MatuLiL Amount Rarc Maiuri Amount Rate Maturily Amount Rate 2115,'98 S 25,000 _ % 2/15/95 $ 195.000 % 2!15111 S 280,000 915 ' 2115N9 135,000 % 2/15/06 205 D00 % 2/15/12 295,000 % VIM 145,000 % 2/15/07 220,D00 % V15113 313,WO % 2/15/01 155,000 % LI3N8 235,0(10 % L13/14 335,000 % 2/15/02 160,000 % 2/I!M 245,000 % 7J15115 355,000 % VIM 175,000 % 2/15/10 265.000 % 2/iS/16 375.000 % 2/15tt4 185,000 % 2,15/17 400,000 % Bonds maturing on Februaary 15, 1998 through February 15, 2012 shall he Seri al Bonds As irs0cated below, the Bidder may bid one or two term bonds consisting of the February 15, 2013 through February 15, 2017 maturities with each term consisting of two to nacre consecutive annual principal amounts accumulated from the maturity schedule she%n above. For those years which have been combined into term bonds, the principal amount shown in the table above shall N the mandatory sinking fund redemption amounts in such years except that the amount shown in the year of the term bond maturity date shall mature in such year. The term bonds created are as follows: Year of Maturity Date First Mandatory Principal Interest February 15 Redemption Amount Rate $ % S % Our calculation (which is nuts put of this bid) of the interest cost from the above is, TRUE INTEREST COST % i • We are having the Bonds of the following maturities insured by at a premium of S . said orantlum Io be Paid by the Purchaser. Any fees to be paid to the rating agencies as s mult of said insurance eill b< natd by the 1IL The Initial Bonds shall 1r 'stud in the name of _ , which will, upon payment for the Bonds, be canc. he Paying Agent,Registrat The Bonds will then be registered in the name of Cede A Co. (DTC's partnership nominee), on( er the Book-Enlr/-Only System. • ~I A bank cavhict s check or ceni`ed check of the Bank, . in the amount of $94,000.00, which ~ • • represents our Good Faith Depm;t 0s attached hereto) or (has been made available to you prior to the opening of this bid), and is t submitted in accordance with the tomes as set forth in the Official Statement and Notice of Sale and Bidding Instructions. t We agree to accept delivery of the Bonds utilizing the Book Entry-Only System through DTC and make payment for the Initial Bond in immediately available funds in the Corporate Trust Division, Texas Conurserce Bank National Association, Dallas, T^.xa1, not later than lo o0 AM. CD'F, on kluy 20, 1997, or thereafter on the date the Bonds are tendered for delivery, pursuant to the terms set forth in the Notice of Sale and Bidding Instructions. It will be the obligation of the purchaser or the Bonds to complete the DTC Eligibility i Questionnaire. t I `e • i 1 The undersigned agrees to complete, execute, and deliver to the City, at least six business days prior to delivery of the Bonds, a certificate relating to the 'issue price" of the Bonds in the fornt and to the eRat acmmpartying the Notice of Sale and Bidding lnstrvctions, with such changes thereto as may be acceptable to the City. We agree to Is made In aridng the Irudal reoffering prk s and other terms, if say, to the FTnarww Advisor by the close or the next I bminesa day after the award. I Respectfully submiued, i [ By Authorized Representative t AMP_TANCE CLAUSE I The above and foregoing bid is hereby in all things accepted by the City of Denton. Texas, subject to and In accotdance with the Nodce of Sale and Bidding Instructions, this the 13th day of April, 1991. I ATTEST: Mayor I 1 City of Denton, Texas , [7 r _ City Secretary t I I [j I I , i 1 r~ 7 t, I 1^ I [t s t t ~ s • f E ' i , CERTIFICATE OF UNDERWRITER The undersigned hereby certifies as follows with respect to the sale of $4,700,000 CITY OF DENTON, TEXAS GENERAL OBLIGATION BONDS, SERIES 1997 (the "Bonds"), 1. The undersigned is the underwriter or the manager of the underwriters and selling group (the "Underwater") which has purchased the Bands from the City of Denton, Texas (the "Issuer"). 1 The undersigned has made a bona ride offering of the Bonds to the public. 3. The first price during the initial offering (expressed as a "yield") of each maturity of the Bonds at which a substantial amount hereof (at least 10 percent of the principal amount of each maturity of the Bonds) has been sold to the public Is set forth below: i Principal Offering Principal Offering Amount Year of Price Amount Year of Price Maturing Maturity (%Nield) Maturing Maturity- (*Nield) S 25,000 1998 S 233000 2008 135,000 1999 245,000 2009 145,000 2040 265,000 2010 155,000 2001 280,000 2011 160,000 2002 295,000 2012 175,000 2003 315,000 2013 185,000 2004 335,000 2014 _ 195,000 2005 355,000 2015 205,000 2006 375,000 2016 220,000 2007 400,000 2017 _ 4. For purposes of this certificau, the term 'public' does not include (a) the undersigned, (b) members of the syndicate, if any, numaged by the undersigned, or (c) any bondhouses, brokers, dealers, and similar persons or organizations acting in the capacity of underwriters or wholesalers that are related to, or controlled by, or are acting on behalf of or as agents for the undersigned or members of any syndicate in which the undersigned is participating in the sale of the Bonds. 5. The offering price described above reflects current market prices at the time of such sales. 6. If any or all of the obligations constituting the Bonds are to be guaranteed then the premium paid for such guarantee in an i amount equal to S is a reasonable amount payable solely for the transfer of credit risk for the I~ payment of debt service on the Bonds and does not include any amount payable fora cost other than such guarantee, e.g., a credit rating fee. The Underwriter has represented that the present value of the premium paid for the guarantee for each obligation constituting the Bonds to which such premium is properly allocated and which are insured thereby is less than the present value { of the Interesl reasonably expected to be saved as a result of the insurance on each obligation constituting the Bonds. The premium has been paid to a person which Is not exempt from federal income taxation and which Is not a user or related to the I user of any proceeds of the Bort&. In determining present value for this purpose, the yield of the Bonds (determined with regard i to the payment of the guarantee fee) has been used as the Jiscount rate S t 7. The undersigned understands that the statements made heroin will be relied upon by the Issuer in its e(To6 to comply with the conditions imposed by the Internal Revenue Code of 1986 and by Bond Counsel In tendering their opinion that the Interest on the Bonds is excludable from the gross income of the owners thereof. EXECUTED and DELIVERED this day of 1997. (Name of Underwriter or Manager) By ti 0 i (Title) I I I f I r; ~,r..w..... _ • r OMCIAL STATEMENT Ratings: Mood] s: Applied For Dated April 1, 1997 S&Pt Applied For See ("Other Information NEW ISSUE • Book-Entry-Only Ratings" herein) In the opinion of Bond Counsel, interest on the Bonds will be excludable from gross .ncome fur federal income tax purposes under statutes, regulations- published rulings and court decisions existing on the date thereof, subject to the tuners described under "Tax Maners" herein, including the alternative minimum tax on corporations. THE BONDS WILL BE DglI aNATEDAS'OUALIFIEDTAX-EXFMPf OBLIGATIONS' FOR FINANCIAL iNSTITUTIONS $4,700,000 CITY OF DENTON, TEXAS (Denton County) CENTRAL OBL1GA11ON BOWS, SERIFS 1991 Dated Dare: Apri11,1997 Due: February 15, as shown below PAYMENT TERMS Interest on the $4,700,000 City of Denton, Texas General Obligation Bonds, Series 1997 (the 'Bonds') will accrue from the dated date shown above, will be payable February 15 and August 15 of each year commencing February 15, 1998, and will be calculated on the basis of a 360-day year consisticg of twelve 30-day months. The definitive Bonds will be initially registered and delivered only to Cede & Co., the nominee or The Deponi:c;ry Trust Company ("DTC") pursuant to the Book-Entry-Only System described herein. Beneficial ownership of the Bonds may b• acquired in denominations of 55,000 or integral multiples thereof. No physical delivery of the Bonds will be trade to the owners thereof. Principal of, premium, if any, and interest on the Bonds will be payable by the Paying Agent/RegiWar to Cede & Co., which will snake distribution of the amounts so paid to the beneficial owners of the Bonds. See "The Bonds - Book-Entry-Only System herein. The Initial Paying , Agent/Registrar is Texas Commerce Bank National Association, Dallas, Texas (see "The Bonds - Paying Agent(Registrv"). { AUTHORITY FOR ISSUANCE The Bonds are issued pursuant to the Constitution and general saws of the state or Texas, (the I e "State") including particularly Article 1175, Vernon's Texas Codes Annotated V.T.C,&'), as amended, and are direct and voted obligation of the City of Denton, Texas (the "City"), payable from a continuing ad valorem tax levied on all taxable property within the City, within the limits prescribed by law, as provided in the ordinance authorizing the Bonds (the "Ordinance") (see "The Bonds - Authority for Issuance"). PL lt", Proceeds fro in the sale of the Bonds will be used for street and drainage Improvements, parks improvetrtents, and to pay the costa of issuance associated with il,e sale of the Bonds. 1 MATURITY SCHEDULE Amount Maturity Rate Yield Amrtunt _ Maturity Rate Yield 5 25.000 1998 S 235,000 2008 I 135,000 1999 2454100 2009 145,000 2000 265,000 2010 155,000 2001 280,000 2011 I 160,000 2002 295,000 2012 175,000 2003 315,000 2013 • 185,000 2004 335,000 2014 195,00 2005 355,000 2015 205,000 2006 375,000 2016 220,0(10 2007 400,000 2017 (Accrued Interest from April 1, 1997 to be added) • REDEMMON OrTION The City ®setves the right, at its option, to redeem Bonds having stated maturities on acrd after Fchroary 15, 2008, in whole or in pan in principal amounts or 55,000 or any integral multiple thereof, on February 15, 2007, or • any date thereafter, at the par value thereof plus accrued interest to the dale of redemption (see "The Bonds - Optional Redemption"). LEGALITY The Bonds are offered for deliverywhen, as and if issued and received by the inidah purchaser(s) and subject to the approving opinion of the Attorney General of Texas end the opinion or McCall. Parkbunt & Horton L.L.P., Bond Counsel, Dallas, Texas (see Appendix C, "Form of Bond Counsel's Opinion"). DELI VERY It is expected that the Bonds will be available for delivery through The Depository Trust Company on May 20, 1997. t• • • This official Statement, which includes the corer page and the Appendices hereto, does not constitute an offer to sell or the solicitation of an offer to buy in any jurisdiction to any person, to whom it is unlawful to make such offer, solicitation or sale. r] No dealer, broker, salesperson or other person has been authorised to give infonnatirn or to make any representation other 11! than those contained in this O friar Statement, and, if given or made, such other information or representations must not be relied upon. L The information set forth herein has been obtained from the City and other sources belined to be reliable, but such information { is not guaranteed as to accuracy or completeness and is nor to be construed as the promise or guarantee of the Financial Advisor. This Ofcral Statement contains, in pan, estimates and matlrrt of opinion which ore not intended as statements of fact, and no representation is made as to the correctness of such estimates and opiniom, or that they will he realised. The information and expressions of opinion contained herein are subject to change without notice, and neither the delivery of I 1 this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been I no change in the affairs of the City or other matters described. TABLE OF CONTENTS t OFFICIAL STATEINIENT SUMMARY-, .............._....3 TAX MATTERS...............,,.....,,.................................. 23 CITY OFFICIALS, STAFF A!•D CONSULTANTS..... S OTHER INFOILMATION..............................................25 EL-nDOFFICLUS ,._.........5 RATINGS .25 . 5 I SELECTED CONStRT ANTS ADMINIANDsrRATIVE ADVISORS.-.. STAFF_....... . . . ~~~SALE. ....FOR- 25 S REGISTRATION AND QUALIFICATION OF BONDS 25 INTRODUCTION 7 L[GALPUBLICINVESTMENTS FU DS INTEEXAS IBILffYTO SECURE 25 1 THEBONDS . .,,,,,,,,,,,,,,,,7 LEGAL OPINIONS ANDN4LrrtOATIONCERTIRCATT..23 11 . ALTNENTic TY OF FINANCIAL DATA AND NNLR Il J O TAX INFORMATION. ND GENERAL TABLEI • VALUATION, E%EMITIONS A LNurrv0 LSCTEURE OF ULSTRATION 226 1 . j OBLIGATioNDEBT 4... ~ 13 CET CATEGORY ~ TAB DEBT HST ATION ANDGENERAL VALUATIONS BY APPENDICES GFNPSUL 1NFOauurloN REGARDING WE CITY A TM1PIE 2 TAXABLE ASSESSED 14 EXCERPTS FROM THE A.NMIAL FINANCIAL REPURT.. B ~ i TABLE 4 - TAR RATE, LE0 AND COLLECTION FORM OF BOND COUNSELS Or'INION C His-.my 15 TABLES T ESTTIV(PA The rover page hereof, this page, the appendices included AoE 15 herein and any addenda, supplement or amendment hereto, TABLE TAx AoEqu { OVER .....IAPP.ING DEBT . 15 16 are part of the Official Statement. 7ABlE7 ESTIMATEDGYER I 1 • , DEBT INFORMA7TON ..............................................17 TABLES - PRO-FoRMAGENERALOBLGAT1oNDLRT SLRVICE REQUMEMENTS . 17 TABLE9 - INTEREST AND SINKING FUND BUDGET I l - 1 PTABLEIRO -ojecn rc- COMPUFATIONOF .SELF, i1 SL'PPORTINO i • DEBT 17 / TABLE I l A1.1HGRI7ED BUT UNISSUED , 18 {7 OBLIGATION BONDS.... TABLE 12 • OTHER UBL.IGATIOKS 11 L FINANCIAL L'+ IFOR.MATION .......................19 • TABLEI3 • GENERALFUNDREVENUESA.ND E%PENDITURE HISTORY.... 19 • • TABLE 14 MUNICIPAL SALES TAX HrsTORY.......... 20 TABLE 15 • CURRENT INVESTMENTS .........................22 2 I~ i , e • OFFICIAL STATENIENT SUM6LARY This summary is subject in all respects to the more complete information and definitions contained or incorporated in this Official Statement. The offering of the Bonds to potential investors is nude only by means of this entire Official Statement. No person is authorized to detach this summary from this Official Statement or to otherwise use it without the entire Official Statement. TueCrtv..... The City of Dcmon is a political subdivision and municipal corporation of the State, located in Denton County, Texas. The City covers approximately bl square miles (see "Introduction • Description of City"). THEBONOS.................................. The Bonds we issued as $4,700,000 General Obligation Bonds, Series 1997. The Bonds mature, or are subject to trundatury redemption prior to maturity on February 15, 1998 f through February 15. 2017 (see "no Bonds - Description of the Bonds"). r PAI MENT OF INTEREST Interest on the Bonds accrues from April I. 1997, and is payable February 15, 1998, and each August IS and February 15 thereafter until maturity or prior redemption (see "The Bonds . Description of the Bonds" and '"no Bonds-Optional Redemption"). AUTHORITY FOR WIJAN'ce The Bonds arc issued pursuant to the general laws of the State, including particularly Article 1175. V.T.C.A., and an Ordinance passed by the City Council of the City (see "The Bonds - Authority for Issuance'). SECIRtrv FORTNe$ONDS,..,,.,.. The Bonds constitute direct and voted obligations or the City, payable from the levy and collection of a direct and continuing ad valorem tax, within the limits prescribed by law, on all taxable property located within the City (see "The Bonds - Security and Source of Payment"). OrTIONAL REDEMPTION The City reserves the right, at its option, to redeem the Bonds having stated maturities on and after February 15, 2008, in whole or in pare in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2007, or any date thereafter, at the par value thereof plus ~~gy accrued Interest to the date or redemption. Additionally, the Bonds may be subject :o mandatory redemption in the event the initial purchaser elected to aggregate one or more maturities as a Term Bond (see "The Bonds - Optional Redemp"on"). TAX Ex"tPTION In the opinion of Bond Counsel, he interest on the Bonds will he excludable from gross Income for federal income tax purposes under existing law, st.nject to the matters described under the caption "Tax Matters" herein, including the alternative minimum tax on ! corporations. 1 USE OF PROCEEDS Proceeds from the sate of the Bonds will he used for street and drainage improvements, parks improvements, and to pay the costs of issuance associated with the sale of the Bonds. RATINGS The presently outstaruling tux supported debt of the City is rated "A I" by Moody's Investors I Service, Inc. ("Moody's") and "AA-" by Standard A Poor's Ratinfis Services. A Division of the McGraw-Hill Comr ies, Inc. ("SRP"). The City also has Issues outstanding which are rated "Aaa" by hloody's and 'AAA' by S&P through insurance by various commercial insurance companies. Appiitations for contract ratings on the Bonds have been made to Moody's and 56rP (see "Other hfomvation • Ratings"). SvSTEM.... The definitive Bonds will be initially registered and delivered only to Cede R Co., the nominee of DrC pursuant to the Book-Entry-Only System described herein. Beneficial ownership of the Bonds may be acquired in denominations of $5,000 or intrgral multiples thereof. No physical delivery of the Bonds will be made to the beneficial owners thereof. Principal of, premium, if any. and interest on the Bonds will be payable by the Paying Agent/Registrar to Cede dt Co., which will nuke distribution of Pe amounts so paid to the • beneficial owners of the Bonds (see "Tbe Bonds • Book-Entry-Only System") . - PAYMENT RECORD The City has nevet defaulted 0. 3 ' ■ SELECFEO FINANCIAL INFO RMATION Ratio Funded / I Fiscal Per Capita Net Per Capita Tax Debt to !1 , Year Estimated Taxable Taxable Funded Funded Taxable % of r4 Ended City Assessed Assessed Tax Tax Assessed Total Tax 9130 Population Valuation") Valuation Debt Debt Valuation Collections i} 1993 67,422 S 1,912,619,686 S 28,368 S 36,896,048 S 547 1.93% 100.43% 1994 68,650 1,875,109,346 27,314 31,590.555 460 1.68% 99.90% 1995 69,350 1,975,426,752 28,403 29,584,197 425 1.50% 170,21% 1996 70,450 2,047,819,765 29,068 28,202,177 400 1.38% 10091% iii}}} 1997 71,675 2,171,729,330 30,300 28,977,009 `t' 404 1.33% N.A. f1. (r) Taxable assessed value as of the end or fiscal year, 1997 value a or January 31. 1997. (2) Projected, Includes the Bonds. For additional Information regarding the City, please contact: Kathy DuBose David K. M-,lanich E Executive Director of Finance First Southwest Company - City or Denton or 1700 Pacific Avenue, Suitc 500 215 E. McKinney Street Dallas, Texas 75201 Denton, Texas 76201 (214) 953.4000 1817) 566-8320 I ~b Il 1 ,I -i r , , 4 • CI] Y OFFICIALS, STAFF AND CONSLITANTS ELECTED OFFICIALS ` Term Ciry Council Expires lack Miller May, 1999 Mayor Euline Brock May, 1998 j Mayor Pro Tem li ROM Beasley May, 1998 Councilmember David Biles May, 1997 Ccuncilme-nbcr Jerry Cott May, 1997 Councitmember Neil fT.,rrance May. 1997 Coun0mcmber l Carl Cane Young, Sr. May, 1997 Councilmember SELECTED ADMINUTRATIVE STAFF Name Position Tod Bensvides City Manager Rick Svehla Assistant City Manager ' Kathy DuRose Executive Director for Finance R.E, Nelsod Executive Director for Utilities Mike Jer Executive Director of Operations , Jennifer K. Walten City Secretary Herbert L. Prouty City Attorney Ca NSULTANTS AND AnYLsorls I Auditors ...........DeloineA.TDucheLL P. Fort Worth, Texas I Bond Counsel, ..............M"]. Parkhurst R Horton LLP. Dallas, Texas Financial Advisor, ................................................_.....................,.....................,............................,....._.,........Fust9outhwestCampany _.J Dallas, Texas f k I s i l t 1 , -FIR - mom" . fl r fJ [I; [J i IJ THIS PAGE LEFT BLANK INTENTIONALLY [J fJ' [J f) f~ fly ; f)r I b I I r bli I", • • OFFII' AL STAT'E6fEN r RELATIs;G TO S4,700,000 CITY OF DENTON, TEXAS GENERAL OBLIGATION BONDS, SERIES 1997 INTRODUCTION This Official Statement. which includes the Appcndiecs h^reto, provides certain information regarding the issuance of S3,701,ix>u City of Denton,Texas General Obligation Bonds, Series 1991, Capitalised terms used in this Official Statement have the same meanings assigned to such terms in rho Ordinance to be adopted on the date of sale of the Bonds which will authorize the issuance of the Bonds, except as otherwise indicated herein. There fotloAs in this Official Statement descriptions of the Bonds and cerutin information regarding the City and its finances All des, riptions of documents contained herein are only summaries and are qualified in their entirety by reference to each such document. Copies of such documents may be obtained from the City's Financial Advisor, FiN Southwest Company, Dallas, Texas, DE8(tUpTII1N OF T11F, Ctrv The City of Denton, Texas is a political subdiasion located in Anton County operating as a t hone-ruie city under the laws of the Slate of Texas and a charter approved by he voters in 1959. The City operates under the Counrii/vil,mager form of guvcmment where the Mayor and six Councalmembers arc elated For staggered two-year temxsThe City Council fnr,nul ate operating policy for the City while the City Ttanagv'r is the chef administrad ve off cer. The City is approximately 61 Nmue miles in area. THE BONDS Dt.sL RIPr'l s, OF THE Bohus . . The Bonds are dated April 1. 1997, and mature on February 15 In each of the )cars and in the amounts shown on the cover pages hereof. Interest will (e computed on the basis of a 360-day year of twelve 30-day months, and will be pa)ahle on February 15 and Aulvst 15, commencing February 15. 1998. The derinitive Bonds will be issued only in fully registered form in any integral multiple of $5,010 for any one maturity and will be initially registered and delivered or,ly to Cede Yt Co.. the nominee of Tie Dcpo:itory'frost Company ( WIC"i pursuant to the Book-Entry-Only System descnbcd herein. No physical delivery or the Bonds will be nude to the owners thereof. Principal of, premium, if any, and interest on the r7 Bonds Ail] he payable by the Paying Arent/Rcgistrar to Cede & Co., which will make distribution of the amounts so paid to the boncfcial uwncrs of the Bonds. See "Bonk-Entry-(oily System' herein. At 111ORI rv FOR IsSUAMY., , , The Bonds lire being issued pursuant in the Constitution and general laws of the State of Texas, particularly Article 1175, as amended, elections held and parsed by a majority of the participating voters; and the0rdinanee. SECfRITa' xna SCARCt OF P41%lh%T, All taxable property within the City is subject to acontinuing direct annual ad valorem tax levied by the City sufficient to provide for the payment or principal of and interest on all Bonds which tax must be levied within the limits ptescnted by law, TAx Rx7E LlxllrklION , . , All taxable property within the City is subject to the assessrnent, levy and collation by the City of a \1 continuing, direct annual ad valorem tax sufficient to provide for the payment of principal or and interest on ail ad valorem fax debt within the limits presCnbcd by law. Article XI, Section 5, of the Texas Constitution is Applicable to the City, and limits its m,txinmm ad valorem tax rate to $150 per $100 Taxable Assessed Valuation for all City purposes. The Home Rule Charter of • a the City adopts the consfitutionatly awhurired maimum tat rateof 52,50 perSIOOT'axable Assessed Valuation. ' OPTIONAL REDEMPTION The City reserves the right, at its option, to redeem Bonds having stated maturities on and after / February 15, 2008, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2007, or any date thereafter, at the par value thereof plus accrued interest to the slate of redemption. If less than all of the Bonds are to be redeemed, the City may srlat the maturities of Bonds to he redeemed. If less than all the Bonds of any maturity are to be redeemed, the Paying AgentIRcgisirar (ar DTC while the Bonds are in Book-Entrv-Only form) shall determine by lot the Bonds, or portions thereof, within such maturity to be redeened. If a Bond (or any portion or the principal sum thereof) shall have been • called for redemption and notice of such redemption shall have been given, such Bond (or the principal amount therecar to he - + redeemed) shall become due and payable on such redemption date and Interest thereon shall cease to accrue from and after the I~ • • redemption data provided funds for the payment of the redemption price and accrued interest thereon are held by the Paying - AgenuRegistrar on the redemption date. 7 i 1 i IlI 1~ f %IkSnxttaRY SISKl%C Fk %D REDEMPTION In addition to being subject to optional redemption as provided :move, should the Purchaser(s) select Alternate 2 (a combina!ion of Scrial Bonds and Term Bonds), the Term Bondi we subject to mandatory sinking fund redemption prior to maturity at a price of par plus accrued interest to the redemption mate from amounts required IP be deposited in the Interest and Sinking Fund with not more than two term maturities as so designated by the successful bidder as follnws. 2013 b313,(l0) 2016 1375.01 2014 335,01 2017 400.6,^2 2015 355,000 { NOTICE of RIXEVtvrlo,v . , . At least 30 days prior to the date fixed for any redemption of Bonds or portions thereof prior to 111 1 maturity a written notice of such redemption shall be published once in a financial publication, journal, or reporter of general I circulation among securities dealers in The City of Yew York, New York (including, but not limited In, The Bond Buy and The J Wall Street Journal), or in the Stale Texas (including, but not limited it), The Texas Bond Reporter). Such notice also shall he sent by the Paying Agen'JRegistrar by United Stales mail. first class postage prepaid, nut less than 30 days prior to the date fixed for any such redemption, to the registered owner of each Bond to be wdeemed at its addrexs as it appeared on the 45i° des; prior to such redemption date, provided, howescr, that the failure to send, mail, or receive such notice, or any defea therein or in'.ne j sanding or mailing thereof, shall not affect the validity or efrcctiveness of the proceedings for the rrdenr ion of any Lund, a'sd it is hereby specifically provided that the publication of such nal.ce as required above shall he the only notice actually required in connection with of as a prerequisite to the redemption of any Bonds. BOOK-ENTRY'-ON"LY SYSnat The Depository Trust Company ("DTC"), New York, New York, will act ax securities II depository for the Hoods, the Bonds will be issued as lofty-registered securities registered in the name of Cede & Co. (OTC's , partnership nominee). One fully-rrgistered cenificale will be issued for each rruturty of the Bonds in the aggregate principal amount Preach such maturity and will be deposited with DTC. DTC is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the t meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meanrt is of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant m the prrvisiom of Section 11 % of the II j Secunties Exchange Act of 1934. DTC holds securities that its participants ("Direct Puticipnnts") deposit with DTC. DTC also facilitates the settlement among participants of securities transactions, such as transfers and pledges, !a deposited securities r 1 through electronic computerized book-entry changes in Participants accountx, thereby elimlnatin; the need for physical f1 !I movernent of securities certificates. Direct Participants include securities brokers and dealers, bank-, trust companies, clearing corporations, and certain other organisations. DTC is owned by a number of its Direct Farticiparv and by the New York Stock r Exchange, Inc , the American Stock Exchange, Inc., and the Naional Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as securities brokers and dealers, banks, and trust companies that clear through or maintain t a custodial relationship %;th a Direct participant, either directly or indirstly ("Indirect Participants"). TM Rules applicable to DTC and its Participants are on rile with the Securities and Exchange Commission E` purchases of Bonds under the DTC system must made by or through DTC participants, which will revive a credit fix such f purchases on DTC's records, The ownership interest of each actua! Purchaser of each Bond ("Beneficial Owner") is in turn to be recorded on the Direct or Indirect Participants' records, Beneficial 0 criers will rot receive ritten confirmation from DTC of ~f their purchase, but Beneficial Owners are expected to receive written confinnacions providing derails of the transaction, as well 1 as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner a itered into f the transaction. Transfers of ownership interest in the Bonds are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. Benerlcinl Owners will not receive certificates representing their i • ownership interests In the Bonds, eii:ept In the event that use of the book-entry system described herein Is discontinued. i 'ro facilitate subsequent transfers, all Bonds deposited by Dins) Participants with DTC arc registered in the name or DTCs 111 r ' partnership nominee, Cede & Co, The deposit of Bonds with DTC and their registration in the name of Cede & Co. effect ho change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reRmt I only the identity of the Direct participants to whose accounts such Bonds are credited, which may or may not be the Beneficial j Owners. The Participants will remain responsible forkeeping account of thcirb0chngs on behalf of their customerL Conveyance of noises and ahu communications by UTC to Direct Participants, by Direct participants to Indirect Participants, f - i and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, s•sbjmt 0 J to any statutory or regulatory requirements as may be in effect from time to time. Redemption notices shall be sent to Cede & Co. If less than all c f the Bonds within an issue are being redeemed, DT'C's practice f ' is todeiermine by lot the amount of the interest oreach Direct participant in such issue to be redeemed. ll ~I 9 . vw '4 7 . • • Neither DTC nor Cede A, Co, will consent or vote with respect to the Floods. Under its usual procedures, DTC mail, an Omnibus Prosy to the City as soon as possible after the Record Date (hereinafter deEned). The Omnibus Proxy assigns Cede & Co.'s j consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the Record Date (identified in a listing attached to the Omnibus Proxy). 1 Pnncipal and interest payments on the Hoods will he made to DTC. DTC's practice is to credit Direct Participants accounts on each payable date in accordance with their respective holdings shown on DTC's rmords unless DTC has reason to believe that it will not receive payment on such payable date. payments by Participant, to Beneficial Owners will be governed by standing instmc-ions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name; and will be the resporimbiliry of such Participant and not of DTC, the Paying AgenURegistrar or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal and interest to DTC is the responsibility of the City, disbursement of such payments to Direct Participants shall he the responsibility of DTC, I and dlsburscrmern of such payments to the Beneficial Owners shall he the responsihility of Direct and Indirect Participants. DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving reasonabte notice to the City. Under such circumstances, in the event that a successor securities depository is not obtained, Bonds are required to he printed and delivered The City may decide to discontinue use of the system of book-entry transfers through DTC (or a successor sxurities depository). In that event, Bonds will be printed and delivered. Use of Certain Terms in Other Sections r f ibis O$iciaf Statement. In reading this Official Statement it should he understood that i while the Bonds are in the Book-Entry-Only System, references its other sections of this Offcial Statement to registered owners should be read to include the person for which the Participam acquires an interest in the Bonds, but (i) all rights of ow ncrship I must be exercised through DTC and the Hook-Entry-On;y System, and (it) except as described above, notices that are to be given to regis'erA owners under the Ordinance will be given only to DTC. Information concerning DTC and the Book-Entry-001v System has been obtained from DTC and is not guarattead as to accuracy t or completeness by, and is not to be construed as a -presentation by the City or the Purchasers. PAVING .4cEnT/RrctsTRAR The initial Paying Agent/RegUirar Is Texas Commerce Bank Nziional Association, Dallas, Texas, In the Ordinance, the City retains the right to replace the Paying Ageni/Registrar. The City covenants to maintain and t provide a Paying Agent/Regisirar at all times until The Bonds arc duly paid and any successor Paying Agent/Registrar shall be a r` commercial bank or trust company organized under the laws of the state or Texas or other entity duly qualified and legally authorized to serve as and perform the duties and services or Paying Agent/Registrar for the Bonds. Upon any change in the Paying Agent/Registrar for the Bonds, the City agrees to promptly cause a written notice thereof to be sent to each registered owner of the Bonds by United States mail, first class, postage prepaid, which notice shall also give the address of the new Paying AgenURegistrar. TRASSEER, EXCHANGE ASD REGISTRATIUA In the event the Book-Entry-Only System should be discontinued, the Bonds may be transferred and exchanged on the registration books of the Paying AgcnURegisuar only upon presentation and surrender thereof to The Paying AgenuRegktrar and such iransler or exchange shall be without expense or service charge to the regisicrcl owner, except for any tax or other gosemmental charges required to be paid with respect to such registration, exchange and transfer. Bonds may be assigned by the execution of an assignment form on the respective Bonds or by ether instrument of j transfer and assignment acceptable to the Paying AgenivRegistrar New Bonds will be delivered by the Paying AgenURegislrar, in lieu of the Bonds being transferred or exchanged, at the principal office of the Paying Agent/Registrar, or sent by United States mail, first class. postage prepaid, to the new registered owner or his designee. To the extent possible, new B,ndx issued in an exchange or transfer of Bonds will be delivered to the registered owner or assignee of the registered owner in nM more than three business days after the receipt of the Bonds to be canceled, and the written instrument of transfer or request far exchange duly • executed by the rrgistered owner or his duly authorized agent, in fore satisfactory to the Paying Ageni/Registrar. New Bonds registered and delivered in an exchange or trans4r shall be in any integral :multiple of $5,000 for any one maturity and for it Ink: aggregate principal annount as the Bonds surr idered for exchange or transfer. See "Book•Ewy Only System" herein for a description of the system to be utilized initially in regard to ownership and transferability of the Bonds. Neither the City not the Paying Agent/Registrar shall be required to transfer or exchange any Bond called for redemption, in whole or in par, within 45 days of the date fixed for redemption; provided, however, such limitation of transfer shall not be applicable to an exchange by the I registered owner or the uncalled balance of a Bond. J 9 - ,,,..sue • ~t RECORD DATE FOR INTEREST PAYMENT The record date ("Record Date") for the interest payable on the Bonds on any interest payment date means the close of business on the last business day or the preceding month. } In the event of a non-payment of interest on a scheduled payment date, and for 30 days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when fands for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the pal due interest ('Special Payment Date", which shall be IS days alter the Special Record Date) hall be sent at least five business days prior to the Special Record Date by United States mail, first clan postage prepaid, to the address of each Holder of A Bond appearing on the registration books of the Paying AgenUkegistrar at the close of business on the last business day neat ] preceding the date of nailing of such notice. i Bo-mHoLDERs' RESUDITS The Ordinance does not establish specific events of default with ripen to the Bonds. Under J State law there Is no right to the acceleration of rnanrity of the Bonds upon the failure of the City to observe Lay covenant under the Ordinance. Although a registered owner of Bonds could presumably obtain a judgment against the City if a default occurred in the payment of principal of or interest on any such Bonds, such judgment could riot he satisfied by execution against any property of the City. Such registered owner's only practical remedy, if a default occurs, is a matdamus or mandatory injunction proceeding to compel the City to levy, assess and collect an annual ad valorem tax suff 6cnt to pay principal of an interest on the Bonds as it becomes due. The enforcement of any such remedy may be difcult and time consuming and a registered owner could be required to enforce such remedy on a periodic basis. The Ordinance does not provide for the appointment of a trustee to represent the interests of the bondholders upon any failure of the City to perform in accordance with the terms of the Ordinance, or upon any other condition. Furthermore, the City is eligible to seek relief from its creditors undo Chapter 9 or the U.S. Bankruptcy Coda Although Chapter 9 provides for the recognition of a security interest represented by a specifically pledged !f source of revenues, the pledge of taxes in support of a general obligation of a bankrupt entity is of specifically recognized As a security Interest under Chapter 9. Chapter 9 also includes an automatic stay provision that would prohibit, without Bankruptcy Court approval, the prosecution of any other legal action by creditors or boodboldcrs of an entity which has sought protection under Chapter 9. Therefore, should the City avail itself of Chapter 9 protection from creditors, the ability to enforce would be subject to the approval of the Bankruptcy Court (which could require that the action be heard In Bankruptcy Court instead of other federal or state court); and the Bankruptcy Code provides for broad discretionary powers of a Bankruptcy Court In administering any proceeding brought before it. The opinion of Bond Counsel will note that all opinions relative to the enrorceabilicy of the Ordinance and the Bonds arc qualified with respect to the customary rights of debtors relative to their I creditors. rr k e I a . a '1 • 10 I1~ 4 y~ t4 ~J 1. ^ I .h t '1 I 10 0 let • • _ f i , TAX INFOR.'sIATION i AD VALOREM TAM Lew. The appraisal of property within the City is the responsibility of the Denton County Appraisal District (the "Appraisal District"). Excluding agrin:lrural and open-space land, which may be taxed on the basis of productive capacity, the Appraisal District is required under the Property Tax Code to appraise all property within the Appraisal District on the basis of 100% i of its market value and is proltihited from applying any assessment ratios. The value placed upon property within the Appraisal District is subject to review by an Appraisal Review Board, consisting of at least three members appointed by the Board of Directors of the Appraisal District. The Apprasal Districtis required to review the value of property within the Appraisal District at least every three years. The City may require annual review at its own expense, and is entitled to challenge the detertrdnation of appraised value i of property within the City by petition filed with the Appraisal Review Board. Reference is made to the V,T,C.A., Property Tax Code, for identification of property subject to taxation; property exempt or which may be exempted from taxation, if claimed, the appraisal of property for ad salorem taxation purposes, and the procedures and limitations applicable to the levy and collection of ad valorem taxes. Article VIII of the State Constitution ("Arlicle VIII") and State law provide for certain exemptions from property taxes, the valuarion Of agnculiura] anal opco-space lands at productivity value, and the exemption of certain Personal property from ad valorem taxation. Under Section 1-b, Article VIII, and State law, the guveming body of a political subdivision, at its option, may grant: (1) An exemption of not less than 33,000 of the marker value of the residence homestead of persons 65 years of ape or older and the disabled i from all ad valorem taxes thereafter levied by the political subdivision; (2) An exemption of up to 20% of the market value of resiJencehomesteads. The minimum exemptionunderthis provisionis$5,1100. State law and Section 2, Article Vlll, mandate an additional property tax exemption rot disabled veterans or the surviving spouse or i children of a deceased veteran who died white on active duty in the armed forces, the exemption applies to either real or personal property with the amount or assessed valuation exempted ranging from 55,000 to a rraximum of $12,000. Article VIII provides that eligible owners of both agricultural land (Section 1-d) and open-space land (Section 1d•1), including open-space land devuted to farm or ranch purposes or open space land devoted to timber production, may elect to have such property appraised for property taxation on the basis of its productive capacity. The same land may not be qualified under both Sc6on Id and I d- I. Noobusiness personal property, such as ati ornobiles or light trucks, are exempt from ad valorem taxation unless the governing body of a political subdivision elects to tax this property Boats owned as nonhusiness property are exempt from ad valorem taxation. I Article VIII, Section t-j, provides for `frceport property' to tee exempted from ad salorcm taxation. Freeport property is defined as gmssIs detained in Texas for 175 days or less for the purpose of assembly, storage, manuracturing, processing or fabrication. Decisions to continue to tax may be resersei-in the future, decisicm to exempt frceport property are not subject to reversal. I The City and the other taxing bodies within its territory may ay7ee to jointly create tax increment financing zones, under which the tax . values on property in the zone are "frozen" at the value of the property at the time of creation of the zone. The City also may enter into tax abatement agreements to encourage economic development. Under the agreements, a property owner agrees to construct certain improvcmens on its property The City in turn apt as not to levy a tax on all or part of the increased value attributable to the I improvements until the expiration of the agreement. The abatement agreement could last for a period of up to 10 years. 1 FTPSCTtFF. TAx RITE ASD ROLLSk(x TAx RATE By each September l or as, ssx)n thereafter as practicable, the City ` Council adopts a tax rate per 3100 taxable value for the current year. The tax rate consists of two components: (1) a rate for funding of maintenance and operation expenditures, and 12) a rate for debt service. • Under the Propctly Tax Code, the City must annually calculate and publicize its "effective tax rate" and 'rollback tax rate'. The City Council may not adopt a tax rate that exrseds the iowerof the rollback lax rare or 103% of the effective tax rate until it has held a public hearing rn the proposed increase foGowing notice to the taxpayers and otherwise complied with the Property Tax Codde. If the adopted tax rate exceeds the rollback tax rate the qualified voters or me City by petition may require that an election he held to determine whether or not to reduce the tax rate adopted for the current yearto the rollback tax rate. 1 "F,ffective tax rate" means the rate that will produce lea years total tax levy (adjusted) from this year's total taxable values • r (adjusted). "Adjusted" means lust values are not included in the calculation of last year's rates and new values are not included in this year's taxable values. • "Rollback tax rate" means the rate that will produce last year's maintenance and operation to levy (adjusted) from this years values (adjusted) multiplied by 1.08 plus a rate that will produce this yeals debt service from this yeti's values (unadjusted) divided by the anticipated tax collection rate II I a. a cam' , 0 • ~i The Property Tax Code provides that certain cities and counties in the State may submit a propositicn to the voters to authorize an additional one-half cent sales tat on retail sales of taxable items. If the additional tax is levied, the effective tax rate and thel rollback tax rate calculations are required to be offset by the revenue that will be generated by the sales tax in the current year. 11 Reference is made to the Property Tax Code for definitive requirements for the levy and collection of ad vatorem taxes and the calculation of the various defined lax rates. PROPERTY AsSSSSMENT AND TAX PAYMENT... Property within the City is generally assessed as; of January I of each year. Business invertory may, at the option of the taxpayer, be assessed as of September I, Oil and gas reserves are assessed on the basis of a al -ation process which uses an average or the daily price of oil and gas for the prior year. Taxes become due October 1 of the same year, and become delinquent on February I of the following year. Taxpayers 65 years old or older are 1 pernuned by State law to pay taxes on homesteads in four installnients with the first due, n February i oreach year and the final installment due on August 1, f PENALTIES AND INnRF.ST Charges for penalty and interest on the unpaid balance of delinquent taxes are made as follows: Cumulative Cumulative Month Penalty Interea Total Ii 11 February 6% 1% 7% Starch 7 2 9 April 8 3 11 May 9 4 13 June 10 S 1.5 July 12 6 1F After July, penalty remains at 12%, and interest increases at the rate of 1% each rnomh. In addition. if an account is delinquent in July, a 15% attorneys collection fee is added to the total tax penalty and interest charge. Und:r certain circumstances, taxes r afiich become delinquent on the homestead of a taxpayer 65 years old or older incur a pemdty of 8% per annum with no additional penalties or interest assessed. in general, property subject to the City's lien msy be sold, in whole or in parcels, t pursuant to court order to collect the amounts due. Federal law does not allow for the collection of Penalty and interest against an estate in bankruptcy. Federal bankruptcy law provides that an automatic stay of action by croditors and other entities, including governmental units, goes into effect with the filing of any petition in bankruptcy. The automatic stay prevents governmental units from foreclosing on property and prevents liens for post•petition taxes from attaching to property and obtaining secured creditor status unless, in either case, an order lifting the slay is abtained from the bankruptcy court. In many cases post-petition taxes are paid as an administrative expense of the estate in bonkruptcy or by order of the bankruptcy court . CCTV APPLICATION OF TAX CODE The City grants an exemption to the market value o: the residence homestead of persons - 65 years of age or older of $24,000 and those who are disabled of $10,000. The City grants an addWenal S5,DW exemption orthe market value of residence homesteads. I See Table I for a listing of the amounts of the exemptions described above. Ad valorem taxes are not levied by ibeCity against the exempt value of residence homesteads for the payment of debt. I The City does not tax nonbusirtess personal property; and the City collects its own taxes. The City does not permit split payments, an! Jiscounts are nsx dlowed. The City does not tax frccport property. 1 The City collects the additional one-half rent des tax for reduction clad valorem taxes. The City has adopted a tax abatement policy but has not enter d into any tax abatement agreements. 12 i' MOON `,.,z......~.........u o M „ w TAMLEI • VALOATION, EXEMPTIONS ANn GENERAL OBLIGATION DEBT f 1 1996197 Marker Valuation Established by Denton County Appraisal District S 2,416,042,188 I Less ExemptionslReductions at 100% Markel Value: Residence Homestead Exemptions S 45,279,519 Over 65 Exemptions 59,998,274 Disabled Persons Exemptions 1,292,995 4 Disabled Veterans Exemptions 2,734,330 V4 Agricultural Land Use Productivity 73,208,192 Historical/Other Exemptions 2,251,630 Freeport Exemptions 59.547,918 244,312,858 1996197 Taxable Assessed Valuation $ 2,171,729,330 City Funded Debt Payable from Ad V alnrem Taxes (as of 3-1-97) "t, Gcnaal Obligation Bonds $ 20,856,730 Tat and Airport System Certificates 50,000 Tax and Ulilily System Certificates 13,845,000 The Bonds 4,700.000 Funded Debt Payable frum Ad Valorem Taus $ 39,451,730 Ltss ScILSupporting General Obligation Debt _ 8,454,721 General Purpose Funded Nbt Payable from Ad Valorem Taxes f 30,997,009 Interest and Sinking Fund as of 3-1.97 $ 1,888,066 Ratio Total Funded Debt to Taxable Assessed Valuation 1.82% Ratio Net Funded Debt to Taxable Assessed Valuation 1.4396 u 1997 Estimated Population • 71,615 Per Capita Taxable Assessed Valuation - $30,300 Per Capita Total Funded Debt $550 Per Capita Nei Funded AcN - 5432 (1) The above statement of indebtedness does not include 583,890,000 Utility System Revenue Bonds outstanding. Tlxse Revenue ' I Bonds are payable solely from and secured by a pledge of the net revenues of the Ufih.y System, as defiled In the ordinance; authorizing these bonds. 1 i ll L 13 + i1~ L%.1~ • • TABLE2 TAXABLE ASSESSED VALUATIONS BY CATEGORY Taxable Arcrumd Value for Fiscal Year Ended Segember 30. 1997 1996 I9^' '1 %Of %of of , Gregory Ansount Tout Amount To l Anmunt Total Real, Rai&nfial, Single Fartuly S 1067,055MI 45.90% S IA05,718.679 45.18% S 968.580.329 46,03% Real, Res dential. Muhi-Family 199,814,'06 8.60% 196,806.296 9.94% 193,628,161 9.10% ~ Real, Vacant L k&JTracts 43,916,376 2.15% W.130.549 1.98% 41,534,096 207% t Real, Acreage (Land Onl)) 102.914.337 443% 106,031,113 476% 119,649,047 5.67% h` Real, Farm and Ranch lmprovctncnu 9,166.355 0.39% 8,120.510 039% 8,559,417 0,4 t% Real, commem..l and lnduwial 427.660,4130 15.403 4226583414 18,98% 391,084633 18.594 [e rf Real and Tangible Personal, Utililiea 51,662.314 2491 . 55.996,595 2.56'% 56,564,784 2.69% Tangible Personal. Cemmemial and 6tdustnal 166,510,206 16.61% 361,5Z0068 I6.3alk 308157,308 14.64% Tangible Personal, Mobile Homo [11 03.7417 078% 11,514,790 0.7U% 13,316499 063% Tangible Pw,aal, Daher 5,291,150 021% 6289,107 0.29% 1,606,989 0.08% Real Property, In~emo'y - 0.00% 0.00% 000% Tout Apl led Value Befrre F s empuces 32124,195,211 101).00% 31.226.186.150 1(1000% 32,104.101393 10000% Lea, Taal Earnipions7reductioru (2W312.958) (214,444,2741 026,931,8311 PWI Under Prolnt 35341,640 27,816,783 65.500.745 Supplemenu 56,415,136 28.061,006 32,362.475 Taaahle Assessed Value 3 2,171,729,130 3 2,047190.765 3 1,915,426,752 ` Taxable Appraised Value few E 1 Fiscal Year Ended Selumber 10 . Rf J 1994 1993 % of % or Category Arnnmd Taal Amoum Total r~ Real, Ra)&nusl, Single Fanaly f 90,545,003 4.95% 3 903.747,627 42.63% Real, ResAtmia6 Mulli Family 191.939,'416 a.95% 180.15V ISO 11.1% r Real, Vacant LoWrractr 48328006 2.38% 55,159,901 2 Wk III Real, Acroge (Land Only) 125,690.226 6.19% 162121,511 7.66% Real. Fum and Ranch Improvemenn 8,709,705 0.0% 9,726,761 0.41 % Real, C9mmetsial and lndaunal 369,114,887 19,19% 421,345661 20 U% Rol and Tangible Personal, Vtilniea 55,446,061 2,73% 52,690,138 249% TangibtrPmsrut,Carurareial and tndusuial 296371450 14.58% 316,416,406 14.93% Tangible Personal, Mobile Homes 10626, W 1 0.53% 9,542.913 0.45% I Tangible Personal, Other 1,57+,070 008% 2376.223 0.11% f Real Pmperty, Inventory 0.00% 0170% ToW Appraised Value Before Exemptions 3 2P32,110,299 100.00% g 2.119,749,441 113100% Lem ToW FaemptionsMir&Abons (211,002,336) (259890.227) Roll Under Prosnl 59,498,307 32861,969 SupPlnnenu 0,513.077 20,897499 Taxable Assessed Value 1,975, t04446 3 1,912,619.686 NOTE: Valuations shown are certified taxable assessed values reported by the Denton Central Appraisal District to the state Controller of Public Accounts. Certified values are subject to change throughout the year as contested values are resolved and , the Appraisal District updates records, For the Fiscal )'ear ended 1997 the values are as of January 31, 1997. TABLE3 • VAtLAnoN AND GENFR.ALOBLIGATION DEBT HISTORY Net Ratio Fiscal Taxable Tax Debt Tax Debt Funded Year Taxable Assessed Outstanding to Taxable Debt 6s.-led Estimated Assessed Valuation at End Assessed Per 9130 Population yaluation"I Per Capita of Year Valuation _Capita _ 1993 67,422 $ 1,912,619,686 f 28,368 $ 36,896,048 1,93% f 547 1994 68,650 1,875,109,346 21,314 31,590,555 1,689E 460 1995 69,550 1,975,426,752 29,403 29184,797 1,509E 423 1996 70,450 2,047,919,765 29,068 28,202,177 1.38% 400 I~ 1997 71.675 2,17 J .729,330 30.300 28,917,009177 133% 404 (1) Taxable assessed value as of the end of fiscal year, 1997 value as of January 31, 1997. (2! Projected, Includes the Bonds. j ' I1 14 ff r - » i • TABLE 4 - TAX RATE" LEVY AND COLLECTION HISTORY Fiscal Year Distribution fnded Tax General Interest and %Current %Total 9130 Rate Fund Sinking Fund Tax Levyoj Collectinrts Collations 199) S 0.71800 T -O,48470 $ 0.23330 $ 13,732,609 97.95% 100.43% 1994 0.74790 0.49130 0.25660 14,023943 98.50% 99.90% 1995 0.56090 0.31540 014550 11,090,169 98.65% 100.21% 1996 0.54090 0.31360 012730 11,076,651 98.98% 100.91% 1997 012940 0.32070 010770 11,475,417 N.A. N.A ' (1) Tax kvy as of the end of fiscal year; 1997 levy as of January 31, 1997. i TABLES - TLNI.ARGFSTTAXTAI'ER.S I 1995197 % of Total Taxable Taxable Assessed Assessed Name of Taxpayer Nature of Properly Valuation Valuation PeterbilllPaccar Diesel Truck Manufacturing S 46,228,753 2.13% General Telephone Company Telephone Utility 38,543,031 1477% Notamillifemark/Epic IlospitaMofessional Building 31,353,267 1.44% t Tetra Pak Packaging Manufacturing 30,532,549 1.41% Texas Instruments F.lectronicManufacturer 23,928,469 1,10% Golden Triangle Mall Shopfing Mall 17,944,277 0,83% Andrew Corporation Electronic Equipment 17,404,452 0,80% Safety Klecn Corp. Recycled Industrial Solvents 13,031,197 0.60% Acme Brick Crick Manufacturing 12,324,665 0.57% Albensons,Inc . Grocery Stor-VA'arehouse 11,475,094 0.53% $ 242,765,154 ILIB% GENERAL OBLIGATION DEBT LlivviATtoN No general obligation debt limitation is imposed on the City under current State law or the City's Nome Rule Chaner (see "Tax Rate Limitation"). - TABLE6 - TAx ADEOLACYpt 1997 Principal and Interest Requirements.._ $ 019,857 $0.3033 Tax Rate at 99% Collection Produces S 6,520,997 Principad and erect Requircmenu, 1997.2017...... $ 3,038,8,11 Average Annual $0.1414 Tax Rate at 99% Collection Produces $ 3,040,11' ® (1) Includes self•supportingdebt, 4 i , i 15 • •'y r\r1 " 1 }tt1 l C I, jj( \,n sh0T ~1~11'v e4 'NN S Jfy. .r. d.'. ( r: n ~..a,.,,;,_jw. TABLET FSTIMATEDO\ERLAPI'1i6DEBT Expenditures of the various taxing entities within the territory of the City are paid out of ad valorem taxes levied by such entities on properties within :he City. Such entities are independent of the City and may i,eur borrowings to finance their expenditures. This statement of direct and estimated overlapping ad valurem tax bonds ( Tax Debt') was developed from information contained in "Texas Municipal Reports" published by the Municipal Advisory Council of Texas. Except foe the amounts relating (1 to the City, the Ci, a has not independently verified the accuracy or completeness of such information, and no person should rely !lJ upon such infonna.jort as being accurate or complete. Furthermore, certain of the entities listed may have issued additional ( bonds since the date hereof, and such cutities may have programs requiring the issuance of substantial amounts of additional II bonds, the amount of which cannot be determined. The following table refln•ts the estimated share of overlapping Tax Debt of the City 1996,97 Cuy's Authonmd Taxable 1996W Total Ftnmated Osolappin6 But Unissued /Asessed Tax Funded % Funded Debt Debt As Of Taxing lunsdicti on Value Rate Debt Apnlaabie At of 3-1-97 3.1.97 City of Denton $ 2.171,729,330 f 032840 S 28,977,009 10000'4 S 28,977,009 f 27,357,r jo Denton Independent School Cis= 2,433,412,897 1.660ryd 92,710,000 68.044 81,621,884 78,735.000 1 Dol County 13,763,740.238 0.26690 58,845,000 2042% 12,016,149 14,623D00 J E Argyle Independent School Dotrict 201.799.197 1 53000 2.716.000 1.64% 49,974 0 1Qum Independent School District 115.11 1 58M 5,990,000 03996 35,341 0 Total Direct and Cnalappin8 Funded Debt S 122,700,357 Ratio of Direct and Overlapping Funded Debt to Taxable Assessed Valuation . 5.63% Per Capita Osertappinee Funded Debt f 1,712 [ - (I) Includes the Bonds, less self-supporting debt #j LI ~ . 11 f l I I) 16 a • d y ° 'P• n... G•1 :rf e .tyy' Pr i -'F !t" r•! r'f i-(n atear. • • DFBT LNFOR-NfAT10N T4BLE8 PRO-FORM S GENERAL OBLIG xTION DEBT SERI ICE REAL tRE%IENTS Fiscal Year Total q of Ended Ou~standm Debt'" This $4.700,000 Issue' Outstanding Principal 9130 Principal Intetess Total Principal Interest Total Debt Retired 1997 S 4,455,000 $ 2,064,857 S 6,519,857 S 6,519,857 1998 4,245,000 1,671,490 5,916,490 S 25,000 S 38610 S 411,217 6,327,707 1999 3,965,000 1,430,166 5295,166 135,000 276.450 411.450 5,706,6!6 2000 2,605,808 2,298,831 4,904,639 143,000 268.050 413,050 5,317,689 2001 2,531,70G 2,002,690 4534.390 155.000 259,050 414,050 4,948,440 43.36`+ 2002 2,143,728 1,876,291 4,020,019 160,rxio 249,600 409,600 4.429,619 2003 1,061,437 1.752,933 3,840,410 171,rJYJ 239,350 414,550 4,114,110 2004 1,963.037 1,432,319 3,395,356 185,000 228,750 413,750 3,809,106 2005 1,720.000 716,221 1,436,221 1950010 217,350 412,350 2,848,571 2006 1,500,000 626,978 2,126,978 205,000 205,350 410,350 2.537,328 6803% 2007 1,505,00(r 544,203 2,049,203 220,000 192,600 412,600 2,461,803 ;008 1,300,00(! 458,505 1.758,505 235," 178,950 413,950 2,172,455 2009 1,130,(011 391.263 1,521,263 245,000 163,330 409,550 1,930,813 2010 1,020,00) 330.970 1.350970 265,400 149,250 414,250 1,765,220 2011 1,055,00) 272,325 1,327,325 280,000 132,900 412,900 1,740,225 85359E 2012 1, 110,000 211.136 1,321156 295000 115,650 410,650 1,731,806 2013 925,0) 146,813 1,011,813 315,000 97,350 412,350 1,484,163 2014 8157.0 94,438 909,438 335,000 77,850 412,850 1,321,288 2015 725,0(0 48,169 773,169 355,000 57,150 412,150 1,185,319 2016 4S5.0(w) 13,944 498,944 375000 35,250 - 410,250 909,194 99.05% 2017 400.000 12.000 412,000 412,000 100,00% S 37,186,710 SS 18~M4.579 S 55,571,309 SS 4 l.L541,867 SS 8,243,867 5 63,815.176 (1) 'Outstanding Debt' dsxs nut include lease'purchase obligations. (2) Aserage life of the Bands • 12.567 years, Interest on the Bands has been calculated at the aserage rate of &30% for purposes of dlusuation. (3) Includes seif-supcningdebt. T431LE9 • LNTER"T AND SINKING FIND BL DGET PROJECTION t Tax Supported Debt Service Requirements. Fiscal Year Ending 9-30.91 S 6,519,857 Interest arid 5mkir g Fund. 9.30.96 S 682,167 0 Inieresl and Sirsking Fund Tax Lesy na' 99fk Collection....... 4,465,575 Budgeted Transfer.L 9M765 7.074.510 Estimated Balancc.9.3097._,._.. S 554,653 TABLE 10 • CONIPLTSnON OF SELr•SLPPORTTNc DEBT Net Resenue from Solid Waste System, Fiscal Year Ended 9.3095 _ ...S 1.500.693 L- 0 Less: Solid Waste System Resenue Bond P.equtrements. 1997 Fiscal Year „ Balance Asailable for Oshcr Purposes .__...S 1.500.603 Solid Waste S)s em General Obligation Bond Requirenenn, 1997 Fiscal Year. 1.128.839 Balance S 371.834 Percentage of System General0oligationBondsSelf-Supporting,...,..,._ 10000E 17 1 14 a' • • It~ T1.31,E11 AUTHORIZED BUT UNK5VED GENERAL OBLIGATION BONDS I Amount Amount Date Amount Heretofore Bcing Unissued Purpose Aulhorimd Authorized Issued Issue Balance Streetano Traffic Improvements 2124!96 $ 11,112,000 S 1,500,000 S 1,875,000 f 1,737,000 I~ Drainage Improvements 2124/% 7,238,000 715,000 673,000 5,848,000 Parks 2124196 7,650.00r 300,000 750,000 6,600,000 Street and Traffic Impruvements 12113/86 1,736,000 5,264,000 1,400,000 1,072.000 Part 12/13/86 5,950,000 .550.000 0 1.400,600 IJ S 39,686,000 S 12,324000 S 4,700,000 f 22,657,000 r ANTICIPATED ISSll ANCE of GENERAL OBLIGATION DEBT The City does not anticipate the issuance or additiOR 11 general ]J obligation debt within the next 12 months. TABLE 12 • O'rHIR OBLIGATIONS ~l The City s capital leases amounted to $129333 as of September 30, 1996. PENSION FUND... The City provides pension benefits for all or its full-time employees through the Texas Municipal Retirement System ('"IMRS"), a State-wide administered pension plan, The City makes annual contributions m the plan equal to the amounts accrued for pension expense. (For more dctaiL-d information concerning the retirement plan, see Appendix {ff "Excerpts from the City's Annual Financial Repon") I Il 11 I li 18 =-~naarRSnel~~Mra~~ . h VMW M1 • • _ ~ n.... n..,......~~, Mil..nwr ws. ~.-,.Mru..u ur.M,,. Y'r.W♦ FINANCIAL INFORMATION TABLE 13 - GENERAL FUND RRV'ENUEB AND EXPENDMMI HISTORY Fiscal Yew Ended September 30, Revenues, 1996 1995 1994 1993 1992 Taxes S 18,001,498 -$17.447,919 S 17,105,835 S 16,650,257 S 15,571,920 Lkenses and Permits 572,676 388,274 418,693 359,319 293,621 1 Franchise Fee 6,067,244 6,112,649 777,025 722,881 750,487 Fines and Forfeitures 1,374,050 1,552,640 1,195,427 1,313,157 1,037,717 Fees for Service 1,140,724 1,144.994 1,025,766 884,129 621,125 Intaest Revenge 710,569 693,281 410,394 587,293 578,158 Intergovernmental 540,630 538,734 439,901 478,314 527,038 Miscellaneous $82,370 560.227 503,217 370,448 428,954 Total Revenues S 29,169,781 S 28,439,116 $ 21,926,258 S 21,364.996 $ 20,009.020 ' EuYndiy General Cavemrnent $ 6,044,178 $ 7,716,321 $ 10,272584 S 9,381,080 $ 9,643,947 Public Safety 13,696,802 12,492,825 11.763.248 11,497,213 11,310,593 - Public Works 4,396,384 4374,433 4,107,816 4,270,662 4,366.116 Parka and Rweation 2,735,176 2,451,278 2,405,557 2,347.584 2,317,244 Capital oudly 635.151 622,009 420.981 266,394 345,619 Total Expenditures $ 29,507,691 S 27,686,866 S 28,990.166 $ 27,762,933 S 28.165,519 Excess (deficiency) of Revenues OvurExpenditures $ (317,910) S 752,252 $ (7.063,928) $ (6,397,935) S (8,176,499) I Proceeds of Long•Term Debt - - 104,990 OperatingTransfers In 379.003 174,698 8,155,072 7,708,732 7,678935 OperadngTransfers (Out) _ (252,266) (121,542) (117.821) (158.771) 201.148) I Excess of Rvenues and Other Sources Over (Under) Expenditures and ~ Other Uses S (200,175) $ 805,408 S 973,323 S 1,152,046 S (593,722) Beginning Fund Balance .7,000,780 or 6,205,197 5,231,674 4,079,928 4,673,530 Ending Fund Balance S 6,8011,614 S 7,010,605 S 6,205,197 $ 5,231,674 S 4.079.923 Difference from prior year ending balance due to re-classificalirnt of Hotel•Motel tax reserve fund. r • ti J 19 _ 211 .1 TABLEI4 b1UN'ICIPAL SALES TAX HISTORY The City has adopted the Municipal Sales and Use Tax Act, VATCS, Tax Code, Chapter 321, which grants the City the power to Il - impose and levy a I% local Sales and Use Tax within the City; the proceeds are credited to the General Fund ard are Dot pledged to the payment of the Bands Collections aid enforcements are effected through the o(ricn of the Comptroller of Public Accounts, j Star of Texas, who remits the proceeds of the tax, after deduction or a 2% service fee, to the City monthly. Revenue from this r ! _ source, for the years shown, has been: Il riscal Year %Of Equivarentof Ended Total Ad Valorem Ad Valorem Per 9/30 Coliecled Tax levy Tax Rate Capita 1992 S5,536,602 41.02% $0.2810 S 83 1993 6,311,913 45.96% 0.3300 94 J` 1994 6,962,105 49.649E 0.3713 101 1995 °j 10,147.979 91.59% 0.5137 146 1996 11.103.921 100,26% 0.5423 158 I j (1) In January of 199t, the citizens of Denton voted to increase sales tax 4i cent to reduce property taxes. 1 F DNANOAL POLICIES 1F 1 Basis of Accounting The accounting policies of the City conrortn to generally accepted accounting principles of the Governmental Accounting Standards Board and program standards adopted by the Gos'emment Finance OR7cen Association or the United States wont Canada itie GPOA has awarded a Certificate of Achievement for Excm;i nce in Financial Reporting to the City of Denton for each of the fiscal years ended September 30, 1983 through September 30, 1995. The City's current report has been submitted to GFOA to determine its eligibility for another Cenificate. [I The City has also received the GFOA'S award for Distinguished Budget Presentation for its 1994 annual appropriation budget + ® receiving its highest rating to date. The City has wbmitted its 1996 budget to the GFOA to determine its eligibility for another Certificate, The City has also received the specially notab;e classification as a communication document. The measurement focuses for the Enlerprin Funds, Internal Scrsice Funds and Nonexpendable Trust Funds are income determination and cost of service, respectively. Accordingly, the accrual basis, whereby revenues and expenses are identified in the accounting period in which they art carried and incurred and net income, is utilized for these funds. The modified accrual basis, whereby revenues are recognized when they beconv both measurable arid available for use during the year and experadi'ntes are recognized when the related rund liability is incurred, Is used for all other funds. Budgetary Procedures As prescnM by City Charter the City Manager, at least 60 days prior to the beginning of each fiscal year, subnuts to the City Couricii a proposed budget for the fiscal year beginning the following October I. The budget includes proposed 333 ' expenditures and revenues m4uired to fund the expendituics. Following Council considerations, amendments and refinetnenLi, a public hearing Is ordered and conducted for the purpose of obtaining taxpayer comments. The budget is finally approved and adopted by passage of an ordinance by the City Council prior to the beginning of the fiscal year Th: budget Is adopted an a basis consistent with generally accepted accounting prlnnplea. ~It Il 20 (1 e • L~rFStrteYts The City of Demon invests its investable funds in iasestracrus authorized by Texas law in accordance with investment policies approves! by the City Council of the City of Denton. Both state law and the City's investment policies are subject to change. ]xcxt, BNFstlteRTS... Under Texas law, the City is authorized to invest in (1) obligations of the United States or its agencies and inMoWntalitics, (2) dint obligations of the State of Texas or its agencies and instrumentalities, (3) collateralired mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the United States, (4) other obligations, the principal of and interest on which are unconditionally guaranutid or insured by, or backed by the full faith and credit of. the State of Texas or the United States or their respective agencies and instrumen(alities, 1.5) obligations of states, agencies, counties, cities, and other political subdivisions of any sate rated as to investment quality by a nationally rxngaind investment raring firm nut less than A or its equivalent, (6) certificates of deposit that are guaranteed or insure) by the Federal D slosh Insurance Corporation or are soured as to principal by obligations desctibesd in the preceding clauses or in any other nmmner and amount prunded by law for City deposits, (7) certificates of deposit and share certificates issued by a state or federal credit union domiciled in the State of Texas that are guaranteed or insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund, or are secured as to principal by obligations dewr!bed in the clauses (I ) through (5) or in any other mariner and arount provided by law for City deposits, (g) fully collateralized h repurchase agreements that have a define) terminatlon date, arc fully wc-urcd by obligations described in clause (1), and are placed through a primary government secunties dealer or a financial institution doing business in the State of Texas, (9) bankers' acceptances with the remaining term of 270 days or less, if the shon~tcrm obligations of the accepting bank or its parent are rated at )east A-I or P-1 or the equivalent by at least one nationally recognized aadit rating agency, (10) commercial papa that is rated at )cast A-1 or P-1 or the equivalent by either (a) two nationally recognized credit rating agencies or (b) one nationally recognized credit rating agency if the papa is fully secured by an incvcvaHc letter of co,tit issued by a U.S or state bank, (11) no-load money market mutual funds regulated by the Securities and Exchange Commission that have a dollar weighted average portfolio maturity of 90 days or less and include in their investnent objectives the maintenance of a stable net asset value of Sl for each sh;-re, and (12) no-load mutual funds registered with the Securities and Exchange Commission that. have an average weighted maturity Of less than two yeah; invests exclusively in obligations described in the preceding clauves; and are continuously rated as to investment quality by at least one nationally recognized investment rating Finn of not dcss than AAA or its equivalent. The City may invest in such obligations directly or through govemment investment pools that invest solely in such obligations provided that the pools arc rated no lower than AAA or AAArn or an equivalent by at least one nationally recognized rating service. The City is specifically prohibited from investing in: (1) obligations whose payment represents the coupon paymenu on the outstanding principal balance of the underlying mortgage-backed security collateral and pays no principal; (2) obligations whose r- rnont represents the principal stream of cash flow from the underlying murigage-backed sevtisy and bears no interest; (3) ce.olcr4 ized mongage obligations that have a stated final maturity of greater than 10 years; and (4) collateralized mortgage Obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. DNrgrT%IL%T POI. te'tFS, UnderTcxas law, the City is rejoined to invest its funds under wntten investment policies that primarily emphavbe safety of principal and liquidity, that aJ,(ress investmer.1 diversifica[ion, yield, maturity, and the quality and capability of investment managemei 1; and that includes a list of authorized investments for City funds. maximum allowable stared maturity of any mdividua] imeslnxnt and the maximum average dale-weighted rtcuunty allowed for poc!ad fund groups. All City funds must be invested consistent with a formally adopted "Investment Strategy Susemscut" that specifically addresses each funds' investment. Each Insesnnent Strategy Statement will describe its objectives concerning: (1) suitability of investment type, (2) preservation and safety of principal. (3) liquidity, (4) mau ketability of each investment, (5) diversification of the p tifoliu, and (6) yield. Undcr Teas: law, City investments must be nude "with judgment and care, under prevailing circumstances, that a person of prudence. Jisercticn, and intelligence would exercise in the managernem of the person's own affairs, not for speculation, but for investment, considering the probable safety of capita) and the probahle income eu be ~krived." Al Iraq quarterly the investment officers of the City shall submit an investment report detailing: (1) the invest!! _nt position of the City, (2) that all investment officers e jointly prepared and signed the report, (3) the beginning market value, any addlitiom and changes to market value and the ending value of each paled fund group, (4) the hssok value and market value of each separately listed asset at the beginning and end of the ` pooled fiord group few which each repsrtin1, ~ period, (5) the nuluritYducof each separately Invested asset, (6) the accountor fund or individual investment was acquired, and (7) the compliance of the investment portfolio as it relates to, (a) adopted investment strategy statcnvcnts and (b) sure law, No person may invest City funds without express written authority from the City Coursed. ADDITIONAL PROVISIONS Under Texas law the City is additionally required to: (1) annually review its adopted policies and strategies, (2) require any investment officers' with personal business relationships or relatives with firms seeking to sell securities to , e ( the entity to disclose the relationship and file a statement with the Texas Ethics Commission and the City Council; (3) require the + e • registered principal of firms seeking to sell securities to 6e City to: (a) receive and review the City's investment policy , (b) acknowledge that rcasonabie controls and procedures have been implemented to peclude imprudent investment activities, and (c) , deliver a wdCcn statemnn arresting to these requirements; (4) perform an annual audit of the management controls on investments and adherence to the Ci!y's investment policy. (5) provide specific investment training for the Treasurer, Chief Financial Officer and investment officers; (r,) restrict reverse reNrchave rgrcernens. to not mire than 90 days and restrict the investment of reverse repurchase agrecmem. finds to no greater than the term of the revere rePLIR11 a agramenl; restrict the investment in mutual 21 • li funds in the aggregate to no more than 80% of the City's monthly average fund balance, excluding bond proceeds and reserves and other funds held for debt service and further restrict the investment in non-money market mutual funds of any portion of bond proceeds, reserves and furxls held for debt service and to no more than 15% of the entity's monthly average fund balance, excluding bond proceeds and reserves a-id other funds held for debt service; (8) require local govemmrnt investment pools to conform to the 111 new disclosure, rating, per asset val ue, yield calculation, and advisory board requirements. TAIRLE 15 • CLARENT IMISMINrs } As of January 1, 1997, the following Mccntages of the City's investible funds were invested in the following cale`uries of investments: Purchase Mwket Description Percent Price Value U.S. Treasury Securities 49.60% f 60,162,371 $ 60,598,119 tf U.S. Agency Securities 4673% 56,965,142 51,090,471 Municipal 3.66% 4,495,227 4,475,775 100.00% $ 121,622,740 $ 122,164,365 [7 ' As of such dale, the market value of such investments (as determined by the City by reference to published quotations, dealer bids, lI li and comparable information) was over 100% of their book value No funds of the City at, invested in derivative securities, i.e., h securil e$ whose rate of return is detnrrsined by reference to some Wier insWrnent, index, or commodity. ll` } 22 • • TAX MATTERS ' Ortoos On the date of initial delivery of the Bonds, McCall, Parihurst & Iforton L.L.P., Dallas, Texas, Bond Counsel, will render its opinion that, in accordance with statutes, «gulaJone, published rulings and court decisions existing on the date thereof, (1) interest on the Bonds will be excludible from the "gross income' of the holders thereof and (2) the Bonds will not be I treated as 'private activity bonds' the interest on which would be included as an alternative minimum tax preference item under section 57(x)(5) of the Internal Revenue Code of 1986 (the "Code"). Except as stated above, Bond Counsel will express no opinion as to any other federal, state or Taal tax consequences of the purchase, ownership or disposition of the Bonds. Ste Appendix C - Form of Bond Counsel's Opinion. t I In rendering its opinion, Bond Counsel will rely upon (a) the City's no-arbitrage certificate. and (b) covenants of the City with respect to arhitrage, the application of the proceeds to he received from the issuance and sale of the Bonds and certain other matters. Failure of the City to comply with these representations or covenants could cause the interest on the Bonds to become includable in gross income retroactively to the date of issuanceof the Bons's. The law upon which Bond Counsel has based its opinion is subject to change by the Congress and to subsequent judicial and adminutrattve interprewtion by the courts and the Department of the Treasury. There can be no assurance that such law or the interpretation thereof will not be changed in a manner which would ad, erscly affect the tax treatment of the purchase, ownership or disposition of the Bonds. FEDERAL IN COMETAY AccotINTING TRF.AT%IL'.T OF ORIGINAL Lmi.E DISCOUNT... The initial public offering price to be paid I for one or more maturities of the Bonds (the "Osiprial Issue Discount Bonds") may be less than the principal amount thereof. In such event, the difference between (i) the amount payable at the m311+rity of each Original Issue Discount Certificate, and (it) the initial offering price to the public of such Original Issue Discount Bond would constitute Original issue discount with respect to I such Original Issue Discount bond in the hands of any uwnrt who has purchased such Original Issue Discount Bond in the initial public offering of the Bonds. Under existing law, such initial owner is entitled to exclude from gross income (as defined in Section 61 Of the Code) an amount of income with respect to such Original Issue Discount Bond equ J to that portion of the amount of such original issue discount allockle to the period that such Original Issue Discount Bond continues to be owned by such owner. For a discussion of certain collateral federal tax consequences, seediscussion selforth below. In the event of the redemption, sale or other taxable disposition of such Original Issue Discount Bond prior to stated maturity, however, the amount realized by such owner in excess of the basis of such Original Issue Discount Bond in the hands of such owner (adjusted upward by the portion of the original issue discount allocable to the period for which such Original Issue Discount Bond was held by such initial owner) is includable in gross income. Under existing law, the original issue discount on each Original Issue Discount Bond is accrued daily to the stated maturity thereof (in amounts calculated as described below for each six-month period ending on the date before the semiannual anniversary dates of the date of the Bonds and ratably within each such six-month period) and the accrued amount is added to an initial owner's basis for such Original [,sue Discount Bond ForpurpOUS Df determining the amount of gain or loss recognized by - such owner upon the redemption, sale or other disposition thereof. The amount to he added to basis for each accrual period Is equal to (a) the sum of the issue price and the amount of original issue discount acrrued in prior periods multiplied by the yield , to aahd maturity (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period) less tb) the amounts payable as nvrent interest during such accrual period on such Certificate. i The fedeT,d inconw taa consequences of the purchase, ownership, redemption. sale or other disposition of Original Issue Discount Bonds which are not purchased in the initial offering at the initial offering price may be determined according to rules which ddfer from those descnbed above. All owners of Original Issue Discount Bonds should consult their own tax advisors with respect to the determination for federal, state and local income tax purposes of the treatment of interest accrued upon redemption, sale or other disposition of such Ongin,d Issue Discount Bonds and with respect to the federal, state, local and • foreign tax consequences of the purchase, ownership, redemption, sale or other disposition of such Original Issue Discount c Bonds. i CotLATS.tt+t Flnt.RAt INCOSIE TAx CoNSEQCSNCES... The following discussion is a summary of certain collatesl federal income tax consequences resulting from the purchase, ownership or disposition of the Bonds. This discussion Is based on existing simutes, regulations, published rulings and court decisions, all of which are subject to change or modification, retroactively. • I The following discussion is applicable to investors, other than those who are subjoct to special provisions of the Code, such as financial institutions, property and casualty insurance companies, life insurance companies, individual recipients of Social • Saunty or Railroad Retirement benefits, individuals allowed tamed income credit, certain S corporations with Subchapter C earnings and profits and taxpayers who maybe deemed to have incurred or continued indebtedness to purchase tax-exempt , obligations. 23 r, • r _ - .........n. "....~•.4.~V.M,+d'M'wrvN wAY niN.JYriYtw~~9Y"4 a"~r. 4 INVESTORS, INCLUDING THOSE WHO ARE SUBJECT TO SPECIAL PROVISIONS OF THE CODE, SHOULD CONSULT THEIR OWN TAX ADVISORS AS TO THE TAX TREATMENT WHICH MAY BE ANT1CiPATEDTO RESULT I i { FROM THE PURCHASE, OWNERSHIP AND DISPOSITION OF TAX-EXENIPT OBLIGATIONS BEFORE I DETERMINING WHETHER TO PURCHASE THE BONDS. Interest on the Bonds may be subject to the "branch profits lax" imposed by section 884 of the Code on the effectively-connect:d earnings and profits of a foreign corporation doing bu•iacss in the united States. i Under section 6012 of the Code, holden of tax-exempt 0ligatiom, such as the Bonds, may be required to disclose interest received or accrued during each taxable year on their returns of federal income taxation. } Section 1276 of the Code provides for ordinary income lax treatment of gain recognized upon the disposition of a tax-exempt J obligation, such as the Bonds, if such obligation was acquired at a "market Discounl" and if the fixed maturity of such obligation is equal to or exceeds, one year from the date of issue. Such treatment applies to "market discount bonds" to the extent such gain f does not exceed the accrued market discount of such bonds. A "market discount bond" is one which is acquired by the holder at a purchase price which is less than the stated redemption price or, in the case of a bond issued at an original issue discount, the "revised issue price" (i.e., a market discount). The 'accrued market discount' is the amount which bears the same ratio to the market discount as the number of days during which the holder holds the obligation bears to the number of days between the acquisition date and the final maturity date. STATE, LOCAL AND Fon.~IGN TAXIES Investors should consult their own tax advisors concerning the lax implications of the f purchase, ownership or disposition of the Bonds under applicable state or local laws. Foreign investors should also conwlt their own tax advisors regarding the tax consequences unique to investors who are not United States persons. QUALIFIED TAX-ExESrrir ODLtGATIONS FOR Fi,VANCIAL INSTITUTIONS... Section 265(a) of the Code provides, in pertinent par. that interest paid or incurred by a taxpayer, including a "financial institution; on Indebtedness incurred or continued to 11 l~ purchase or carry tax-exempt obligations is not deductible by such taxpayer in determining taxable income. Section 265(b) of the Code provides an exception to the disallowance of such deduction for any interest expense paid or incurred on indebtedness of a taxpayer which is a "financial institution" allocable to tax-exempt obligations, other than "private activity bonds," which are f l designated by an issuer as "qualified taxeexempt obligations." Section 265(b)(5) of the Cade defines the term "financial tl institution" as refeTing to any corporation described in section 585(aX2) of the Code, or any person accepting deposits from the - public in the ordinary course of such person's trade or business which is subject to federal or state supervision as a financial E Institution. a The City expects to designate the Bonds as "qualified tax-exempt obligations" within the meaning of section 265(b) of the Code. In furtherance of that designation, the City will covenant to take such action which would assure or to refrain from such action which would adversely affect the treatment of the Bonds as "qualified tae-exempt obligalons." i ilk ) 11r 24 ICI f a cu • • OTHER MOWATION RATINGS The presently outstanding tax supported debt of the City is rated "A 1" by Moodys and "AA= by S&P. The City also has issues outstanding which are rated "Aaa" by Moody's and "AAA" by S&P through insurance by various commercial insurance compari Applications for contract ratinji on this issue have bean made to Moody's and S&P. An explanation or the significance or such ratings may be obtained from the company furnishing the rating The ratings reflect only the respective views of such organization and the City makes no representation as to the appropriateness of the ratings. There is no assurance that such ratings will continue for any given period of time or that they All not be revised downward or withdrawn entirely by tither or both of such rating companies, if in the judgment of either or bath companies, circumstances so warrant. Any such downward revision or Nithdrawai or such ratings, or either of them, may have an adverseeffect on the market price of the Bonds. E.ITIGATION It is the opinion of the City Attorney and City Staff that there is no pending litigation against the City that would have a material adverse financial impact upon the City or its operations. REGISTRATION AND QUALIFICATION OF BONDS FOR SALT The sale of the Bonds has not been registered under the Federal Securities Act of 7933, a, amended, in reliance upon the exemption provided thereunder by Section 3(a)(2); and the Bonds have not been qualified under the Securities Act of Texas in reliance upon various exemptions contained therein; nor have Lh^ Bonds been qualified under the securities acts of any jurisdiction. The City assumes no responsibility for qualification of the Bonds under the securities laws of any jurisdiction in which the Bonds may be sold, assigned, pledged, hypothecated or otherwise transferred. This disclaimer of responsibility for qualification for sale or other disposition of the Bonds shall not be construed as an interpretation of any kind with regard to the availability of anyexemption from securities registration provisions LEGAL INx E5TxtENTS AND ELIG Iarl-ITY TO SE CURE PCaI Ic FUNDS IN Ttw Section 9 of the Bond Procedures Act provides that the Bonds "shall constitute negotiable in_truments, and are investment 0 securities governed by Chapter 8, Texas Uniform Commercial Code, notwithstanding any provisions of law or court decision to the contrary, and are legal and authorized investments for banks, savings banks, cost companies, building and loan associations, savings and loan associations, insurance companies, fiduciaries, and trustees, end for the sinking fund of cities, lawns, villages. school districts, and other political subdivisions or public agencies or the State of Texas The Bonds arc eligible to secure deposits of any public funds of the state, its agencies and political subdivisions, and are legal. security for t1h u deposits to the extent of their market value. For political subdivisions in Texas which have adopted investment policies and guidelines in accordance with the Public Funds Invcstmcnt Act (V.T.C.A., Government Code, Chapter 2256), the Bonds may have to be I assigned a rating of "A" or its equivalent as to inscorocol quality by a national rating agency before such obligations are eligible I investments for sinking funds and other public funds. No review by the City has been made of the Saws in other states to determine whether the Bonds are legal investments for various institutions in those states. LEGAL OPINIONS AND No-LITIG ATION CERTITICATE The City will funish a complete transcript orprocmlings had incident to the authorization and issuance of the Bonds, including the unqualified al. proving legal opinion of the Attorney General of Texas approving the Initial Bond and Initial Certificate and to the efrect that the Bonds are valid and legally binding obligations J the City, and based upon examination of such transcript of proceedings, the approving legal opinion of Bond Counsel, to like effect and to the effect that the interest on the Bonds will be excludable from gr rss income for federal income tax purposes under Section 103(1) of the Code, subject to the matters described • under "Tax Maners' herein, including the alternative minimum tax on corporations. The customary closing papers, including a certificate to the effevi that no litigation of any nature has been filed or is thrn pending to restrain the issuance and delivery of the Bonds, or a hick wou d affect the provision made for their payment or security, or in any manner questioning the validity of said r Bonds will also be frtrnishedBond Counsel was not requested to participate, and did not take part, in the preparation of the Notice of Sale and didding Instructions, the Official Bid Form and the Official Statement, and such firm has not assumed any I responsrbi6:y o ith respect thereto or undernAco independently to verify any of the information contained therein, except that, in its capacity as Bond Counsel, such firm has reviewed the information describing the Bonds in the Official Stalernent to verify that such description conforms to the provisions of the Ordinance. The legal fee to be paid Bend Counsel for services rendered • I in copnection with the issuance of the Bonds is contingent on the We aid delivery of the Bonds. The legal opinion will • accompany the Bonds deposited with DTC or will be printed on the Bonds in the event of the discontinuance of the Book-Entry. Only System. I 25 i I . • • AYTHEYTICITY OF FINANCIAL DATA AND OTHER INFORMATION The financial data and other information contained herein have been obtained from City records, audited financial statements and other sources which are believed to be reliable. There is no guarantee that any of the assumptions or estimates contained herein will be realized. All of the summaries of the statutes, documents and resolutions contained in this Official Statement are made subject to all of the provisions of such statutes, documents and resolutions. These summaries do not purport to be complete (j statements of such provisions and reference Is made to such documents for further information. Reference is made to original f1 iI i documents in all respects. CONTINUING DISCLost'RE OF INFORMATION In the Ordinance, the City has made the following agreement for the benefit of the holders and beneficial owners of the Bonds. i The City is required to observe the agreement for so long as it remains obligated to advance funds to pay' the Bonds. Under the agreement, the City will be obligated to provide certain updated financial information and operating data annually, and timely l ? notice of specified material events, to certain information vendors, This information will be available to securities broken and If others who subscribe to receive the informatinn from the vendors, ANNUAL REPORTS The City will provide certain updated f narcial information and operating data to cenain information vendors annually. The irformation to be updated includes all quantitative financial information and operating data with respect [ to the City of the general type included in this Official Statement xnderTablcs numbered I through 6 and 8 through 15. The City will update and provide this Information within 6 months after the end of each fiscal year ending in or after 1996. The City will provide the updated information to each nationally recognized municipal securities information repository ("NRMSIR") and to any state information depository ("SID") that is designated by the Skate of Texas and approved.by,the State of Texas and approved by the staff of the United States Securities and Exchange fro!Rw1ia15i90[(~l1Ri`!>rsF~ii'jkat on exina a `(fir) or in L•alnrrtargtd togw trnstk,ee blot oa yam rbnnr The City may provide updated information in full text or rpq„itsgorp"o'by'relcrence cenara.otlker publicly available documents, as permitted by SEC Rule 15c2-12. The updated ~E+Wrptatipryr,poill include audited financial statements, if the City cominiissicm an audit and it is completed by Inc time. If audited financial statements are not available by the required time, the City will provide audited financial statements when and if the audit report becomes available. Any such financial statements will be prepared in accordance with the accounting principles described in Appendix B or such other accounting Principles as the City may be require) to employ from time to tine pursuant to state law or regulation. j 4 The City's current fiscal year end is September 30. According:), it must provide updated information by March 31 in each year, f unless the City changes its fiscal year. If the City changes its fiscal year, it will nosily each NRMSIR and any SID of the change. !i MATERtAt EVENT NOTIL'FA The City will also provide timely minces of certain events to certain information vendors. Vic City will provide notice of any of the following events with respect to the Bonds, if such event is material to a decision to purchase or sell Bonds: (1) principal and interest payment delinquencies, (2) non-payment related defaults; (3) unscheduled draws on debt service resenes reflecting f nancial difficulties; (4) unscheduled draws on credit enhancements reflecting financial j difficulties: (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions or events affecting the tax-exempt stars of the Bands; (7) modifications to rights of holders of the Bonds; (8) Bond calls; (9) defeasances; (10) release, substitution, or sale of property securing repayment of the Bonds; and (11) rating changes. Neither the Bonds no: the Ordinance make any provision for debt eerricc reserves, credit enhancement, or liquidity enhancement. In addition, the City Wilk n:ovide timely notice of any failure by the City to provide information, data, or financial statements in accordance with its agrccmcnt described above under "Annual Reports." The City will provide each notice described in this paragraph to any SID and to either each NRMSIR or the Municipal Securities Rulemaking Board NISRB"). AAAILAWLITY OF INFORMATION FROM NIlMSdRS AND $ID The City has agreed to provide the foregoing Information only to NI<MSIRs and any SID. 11e information will be available to holders of Bonds Orly if the holders comply with the procedures ( 1 and pay the charges established by such information vendors or obtain the information through securities brokers who do so. 11 r TT,e Municipal Advisory Council of Texas has been designated by the State of Texas and approved by the SEC staff as a r qualified SID, The address of the Municipal Advisory Council is 600 West 8th Street, R 0. Box 2177, Austin, Texas 78768- ; 2177, and its telephone number is 512/476-6947 M { UmITATiONS Ann AMENDMENTS The City has agreed to update information and W provide notices of material events only as described above. The City has not agreed to provide other information that may be relevant or material to a complete presentation of its financial results of opsratioos, condition, or prospects or agreed to update any information that is provided. r j • except Ls described above. The City makes no representation or warranty concerning such information or concerning its • usefulness to a decision to invest in or sell Bonds u any future date. The City disclaims any contraclnal or ton liability for damages resulting in whole or in part from ary breach of its continuing disclosure agreement of from any statement made pursuant to its agreement, although hoiden of Bonds may seek a writ of mandamus to compel the City to comply with its agreement. ff 26 11~ E !is • • The City may amend its continuing disclosure agreement from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the Identity, nature, status, or type of operations of the City, if (i) the agrnment, as amended, would have permitted An underwriter to purchase or sell Bonds in the offering described herein in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (ii) eit(.er (a) the holders of a majority in aggregate principal amount of the outstanding r Bonds consent to th^ amendment or (b) any person unaffiliated with the City (such as nationally recognized bond counsel) determines that the amendment will not materially impair the interests of the holders and beneficial owners of the Bonds. The City may also amend or repeal the provisions of this continuing disclosure agreement if the SEC amends or repeals the applicable provisions of the SEC rule 15c2-12 or a court of final jurisdiction entersjocigrnem that such provisions of the SEC Rule I5c2-1 2 are invalid, but only if and to the extent that the provisions of this sentence would not prevent an snderwnta from lawfully purchasing or selling Bonds in the primary offering of the Bonds. If the City so amends the agreement. it has agreed to include with the next financial information and operating data provided in accordance with its agreement described above under "Annual Reports" an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information and operating data so provided. COMPLI1NCE 141TH PRIOR UNDERTA%1905 The City is in compliance with all existing continuing disclosure agreements in accoidancewith SECRule ISc2.12. FIMSCIALAD1t50R First Southwest Compare a employed as Financial Advisor to the City in conneclion with the issuance of the Bonds. The Financial Adviwr s fee for services tendered with respect to the sale of the Bonds is contingent 6pon the issuance and delivery of the Bonds. First Southwest Company may submit a bid for the Binds, either independently or as a member of as syndicate organized to submit a bid for the Bonds. First Southwest Company, in its capacity as Financial Advisor, has relied on the opinion of Bond Counsel card has not verified and does not .ssume any responsibility for the infornu[ion, covenants and representations contained in any of the legal documents with respect to the federal income tax status of the Bonra, or the possible impact of any present, pending or future actions taken by any legislative orjudi6d bodies. In the normal course of business, the financial Advisor may from time to time sell investment securities to the City for the investment of bond proceeds or other funds of the City upon the request of the City. CF RTIFI C ATION OF TISE OFFICI.%L STATESIENT At the time of payment for and delivery of the Bonds, the City wili famish a certificate, executed by proper officers, acting in their official capacity, to the effect that to the best of their knowledge and belief: (a) the descriptions and statements of or pertaining to the City contained a its Official Statement, and any addenda, supplement s.r amendment thereto, on the date of such Official Statemen6 on the date of sale of said Binds and the accepLAnce of the best bid therefor, and on the date of the delivery, were and are true and correct in all material respects; (b) insofar as the City and its affairs, including its financial affairs, are concerned, such Official Statement did not and does not contain an untrue statement of a material fact or omit to state a material fact required to be staled therein or necessary to make the staierncnts therein, in the light of the cirnsmstances under which they f were made, not misleading; (c) insofar as the descriptions and statements, including financial data, of or pertaining to entities, " other than the City, and their activities contained in such Official Statement are concerned, such stater. nts and date have been E Obtained from sources which the City believes to be reliable and the City has no reason to believe fiat they are untrue In any venal respect', and (d) there has been no matenal adverse change in the financial condition of the City since the dale of the last ` audited financial statements of the City. 1` - The OrdlnauCC authorizing the issuance of the Bonds will also approve the form and content of this Official Staterrscnt, and any addenda, supplement or amendment thereto, and authorize its further use in the reoffering of the Bonds by the Purchaser. • JACKMILLER Mayor , Ciry of Denim Texas i ATTEST: JENNIFER WALTERS City Secretary 27 , • i • - ii i3 hI i! r L~ ~f i~ ff . Il; THIS PAGE LEFT BLANK INTENTIONALLY c f [f M i) Il~ I ~ fir. r , ;•t { 1 t f,': i • e ; ! APPENDIX A GENERAL INFORMATIGN REGARDING THE CITY I L AmarUlo DENTON Fort WOrth■ 00alaa I a I I Paso * Houston Austln ` San Antonlo f r • _ r • . fY.'~ 1 ~ r J.~~ ! ti~l.e r~ ^j,s A .~.o~ ti ,x". (i • ~j (I i ~l !J THIS PAGE LEFT BLANK INTENTIONALLY I U ~ OJT b ii I' s 0 r 1 LOCATION- , • TM City of Denton is situated in the nonbern portion of the ')alias/Fort Worth Consolidated Statistical Area (CMSA). h is approximately equidistant from O,e two major urban centers of the region, with excellent access to and from iii f- of the area. The City covers approximately 61 square miles and is located only 38 miles frum duw'ntown Dallas, and 36 miles from Fort Worth on Interstate Highway 35. EcoNovrv Denton is in the midst of., rich agricultural and livestock area; The hub city of Texas' new "land of Lakes" region, which provides Denton and neighboring cities with abundant water for municipal, industrial and rxreatiund purposes: One of the three rmajor university centers in Texas; The home of diva sift ed industrial interests; The site of the Nations first underground Control Center of the OlTice of Emergency Planning and Office of Civil and Defense Mobilization; One or the key cities in the economically significa,t Dallas Consolidated Metropolitan Area j RFCE"DEvEIAPxIEVrs ! EVC&Lnne_ ainnwis The City became hone to three new restaurans, Appiebee's, Pancho's Mexican Buffet, and Jason's Deli. All ■ three restaurants have been very successful and provide over 200 jobs to the community. r Cunsiruction began in August of a new 16,000 square fool, five screen, state-of-the-art mot vie theater inside the mall. The theater is f■ an expansion of the existing United Artist Entmainment facility located just outside the Golden Triangle Mall. ra', . Hartzell Manufacturing announced the purchase of EMC Plastics in July, with the intent of building a new 100,000 square foot structure, almost three times the size of the present facility, at an estimated cost of $S trillion later this year. Hartzell also expects to increase its local workforce from 110 to 300, Also, Golden Triangle Mall is among four Melvin Simon Rc Associates, Inc., 0 properties being considered for a possible $5 mullion renovation. Bruine5.r Rusvll-Newtna~ Mamufacn,rina completed a 20,400 square foot addition to its facility on loop 288 clued at 5598,000. Russell-Newrian has been irunufacturing lingerie since 1939, and includes major customers such as J.C. Penney, Dillards and We]- ` Mart. Ben E. Keith Corr ty is completing its expansion project, increasing the fanlitis warehouse space to 110,000 square feet, three 1 time its original size. The estimated value of d,c expansion is $3.5 million. Ben EKeth has also doubled its woriforo- Telecom Remarkning Corooration of America (TRM sells No~them Telecom, AT&T, ROLM, NT..C and Mitel equipment. They . also purchase excess telecom inventory (entire gstems or parts) and repair defective circuit boards and tekphones. TRCA relocated to Demon from Carrollton. TRCA has clever employees and expects to employ 35 within the next twrJve to fifteen month period. . ephgne OottajjQpl opened its Business Contact Center and will employ approximately 190 at full capacity. The Center handles customer inquiries from GE's rmitiaine business customers within a 13 state area s µ'cath;mrol Suooly completed 50,000 square feet on the first phase of a new 120,000 square foot officdwarehouse. Total emplo)vrent at this phase of the new facility is 65. Ibalt 6tnnufacturine. Inebegan p.odu tinn and distribution or steel gun safes in the sunurer of 1992. Colbalt recently purchased a 21,64'7 square foot building, moving from their 10,000 square foot lease facility. Approximately ten empioyees will be added to the . - current staff of 13 ~e Fsder t Ftncr.cncv .~xncv tFEhtAI announced its clocisfon to permanently locate its national teleregistratfon in Denton. FEMA teased permanent space at Wcedhtl Squaw for its teleregi-;ration center The operation provides di saga assistance to all areas of the country. The operation employs 8 to 10 permanent employees and up to 250 temporary in a case of emergency. p r,ilt hfuty,ty Comnanv, a cuilda of semi-trailer trucks, celebrated die grand opening of the new engineering lab at the ptart facility and the relocation or the division headquarters from Newark, California. The relocation and expansion brought the total empluynenl for Pcterbilt to approximately 1,300 employees. Health Trust. Inc., parent company of Denton Repional Medical Grater, began construction of a $50 million, 225,000 square f.vt, f hospital in approtirr..tely 50 acres. The company plans to market the remaining land for commercial and retail development. It is I/ estimated that the row facility will generate about too nix jobs and S4 million in payroll. A-1 I I ' I e , o Grnr¢ia~^xile CorDOraliojj began operation in August of 1994 in an existing 175,000 square foot building form^ny owned by the Pillsbury Company. As estimated, $1 million was invested in renovation to the building and approximately $12 million in new equipment wit purchased, Georgia-Pacific manufactures corrugated sheets. Georgia-Pacific, who became Duntoni first Enterprise L: ore Project, employs 50. The ecunor de effect of Alliance Airport in Denton and Tarrant County should provide future economic activities. Alliance Airport Is located ordy 15 miles south of Denton on Interstate Highway System 35 West. M. Ray Perryman Consultants, Inc. projects that Alliance Airport's economic impact should include 9.164 permanent jobs within Fort Worth PMSA, 5702.8 million additional local { spending :uad $234,4 million in employee earnings. 1 Health Care HCA Denton Community Hospital completed its $23 million expansion project. The expansion included the j addition of . third floor with 44 private patient rooms and a 12 bed progressive care unit, a new comprehensive cardiac care center, a new magmtic resonance imaging center, an outpatient surgery center, and a 30,000 square foot office building. Approximately 100 new jobs were created by HCA's expansion. Denton Regional Medical Center completed an office and ambulatory surgery phase of a 64,000 square foot facility in September. The S48 million medical center occupies 60 acres of a total 3Wacre site at the intersection of 1-35 and Colorado Boulevard. Plans ate pending for a new 350,(100 square foot, 122 bed hospital. ] EcoYOM1C AND POruursax G MRS... During Fiscal Year 1987-98, the City an', die Chamber of Commerce, in concert, brought 't about the expansion of the Dallas/Fort Worth Commercial Trade lone. This expansion was granted by the Suste Railroad J Commission and will allow for greatly reduced shipping costs in the Denton area. Denton has noted a consistent population increase and a steady economic growth in the last four decades. Historical population totals from U.S. Census records are: 1940 Census 11, 192 1950 Census21,372 1960 Census26.844 1970 Cenws39,874 1980 Cenw.c49,079 1990 Census66,270 The City's ascension lowted a lop rung on Texas econondc ladder is attributed partly to the steady influences of governmental activity which Includes the year-by-year expansion of the two State-supported universities, and panty because of such environmental ;J factors at its location in a rich agricultural region, some oil and g.ts production in the northwest section or Denton county, its inclusion in the Dallas/Fort Worth Meuoplex, its proximity to three of Texas largest reservoirs (lake Texoma is only 40 miles from ) Denton), its excellent highway and transportation facilities, its mild clitrate, and the Tess tangible but influential aspects of social, l cultural and edmadon advantages that have prompted professional workers to choose Denton as a place of residence. f - LNUSTaIAL Ftrt'ar Denton is most favorably located within 38 miles of two major cities (Dallas and Fort Worth) and is, ) officially, apart of the Dallas/Fort Worth Mcimplex. This area comprises a market which is growing at a rate three limes the nations , average Denton is fast becoming an integral pan of this dynamic industrial complex. Enrn.ot'sttv't/LAaoa Fostcz A plemiful supply of skilled labor is available to indu,try in the Denton area. The expansion of the Andrew Corporation, the consolidation of Peterbilt Motors Company, and the Boeing Defense Voctronics Plant, have played a large J pan in maintaining the City's economy. The economic effect of the new ' lliance Alrpon in Denton and Tarr-iit Counties should provide future economic expansion upponunities. Alliance Airport is located 15 miles south of Denton on the Interstate Highway System 35 West Employment figures for Denton County are as follows:' i September Average Annual j ' 1995 1994 1993 1992 1991 1990 Civilian l rbor Forte 193.817 188,247 Ic 7-109 117,585 172,277 169.523 Total Employment 186,624 180,415 172,869 168,744 164,354 162,673 Total Unemployrsenl 7,193 7,826 7,440 8,841 7,923 6,580 Percent Unemployment 3.70% 410% 4.10% 5.00% 4.60p% 4.00% ~ 1. e ~ v o Sou•ce: Texas Employment Commission. ilf A•2 I t J i i; 1 r 1~DUSfRY Ado BUSINESS Major Employee Approximate Nu mber of Employer Description Employees I University of North T'exas Education Facility 5,500 f Denton State School School for Handicapped 2,100 Peterbih Diesel Trucks 1,575 Denton Independent School District City School System 1,408 Texas Woman's University Education Facility 1300 Boeing Electronics Military Electronics 11000 City of Dentor Municipality 986 Denton County Municipality 925 Denton Regional Medical Center Ifuspitalhlcalth Care 775 Andrew Corporation Micro% ave Antenna Manufacturing 588 Victor Equipment Co. Welding Equipment 563 IICA Dcntop Cunununity Ho--pital Hospital/Health Care 500 I RusscI1-Newman hlanuficturing Company Lint(rie Manufacturi. g 400 'i Jostens, Inc. Class Rings 350 MJA/WC Marketing & Research Telephone Survey/Marketing 250 Sally Beauty Supply Beauty Supplies 250 First State Bank Financial Institution 250 C-cncral Telephone Electric Telephone UWity 235 Teti; Pak Machinery 212 Morrison Milling FloudGrain Mill 200 Acme Brick Bricks 200 Denton Publishing Company Newspapers 180 Union Camp MuldAall Bags 120 Turbo Refrigeration Refrigerating/fleating Equipment III I Source: Cty of Denton Chamber of Comn-w ce Economic Des lopment Otfice, August. 1994. EDUCATION.. . Denton is the home of the University of North Tests, founded in 1890, and Texas Woman's University, founded in 1901 I The two universities have a combi.md enrollment of approximately 36,000 students, and more than 7,051 faculty men-&U. Approxitnately 25,114 students are enrolled in co-educational University of North Texas. This University has a larger enrollment than the combined enrollment of Southern Methodist University at Dallas, Texas Christian University in Fart Worh, and Rice University I at Houston. Texas Woman's Universi y has at approximate enrollment of 9,852 which includes tde Denton, Dallas and Houston locations. The University it North Texas campus comprises a land area of more than 400 acres valued in excess of $130 million. The Unive.sity f I embraces eight academic units cf colleges and schools, and ofkrs Bachelors degrees in 66 fields, Master's degrees in ill areas and • Dsxtor d programs are in 45 disciplines. Texas Woman's University, a major State-supported texhing and research institution, is the Nation's largest unk.ersity for wDffW. With approximately 1,400 faculty me,ntscrs, 90 percent of whom hold the Doctoral degree or other appropriate terminal degree in ' their field, TWU stresses small classes, personal attention, and excellence in texhing. Ttuough its ten schools and colleges, TW'U offers programs leading to the Bxhclor's degree in 77 major areas, the Master's in 72 fields, and the Doctoral degree in 42 areas of s rociahration. Science research programs are conducted in chemistry, biology, physic, nutrition, tex:ites, bone microradiology and other related fields. North Central Texas College, e.'taNished in 1924, opened a TcchnicJ Vocational Center in the Denton area offering Associate • • Degrees in Occupational therapy Assistance, Criminal Justice, Mid-Management Training and Micro Computer Applications. { I NCItC specializes in training geared directly to business and industry needs. f Denton has an outstanding public school system, with all elementary aid secondary schools fully accredited not only by the Texas Education Agency, but by the Southern Association of Colleges and Schools. Only 82 scl,ool districts have canned that distinction on hot',, the elementary and wonrary kvJs. A•3 The Denton Independent School District operates two high school„ two junior high schools and ten elementary schools. The total k enroll went for the 1994195 school year is 11.800. The District offers classes at each school and at the instructional center for students who experience learning disabilities or handicaps. Counselors, speech and language specialists, psychologists, and reading and diagnostic consultants are available for all grade levels. Denton State School It is one of Americas most modem and progressive educational institutions. This State-supported educational itlstitution for mentally handicapped'fexas residents is located on a 200-aae site paid for by Denton citizens. Present facilities include 47 dormitories (including outreach dome) which accommodate Fran: than 1,188 students, 5 buildings for F~ physically handicas•Tcd children with a capacity of 600, and a 52-bed acute hospital with supporting facilities such as X-ray, `j laboratory, dental, and pharmaceutical. In addition to these buildings, there is a moder,. alministration building, an academic building, a large laundry, a maintenance shop and a warehouse The School has a staff or 2,100, with an annual payroll in excess of 1118.000.000. 1r 1 AcartvtTUas Northwestern Denton County is one of the more diversified agriculture areas in Texas. Wih soil types ranging from rich black to deep sandy loam, and gad soft, artesian water, s is an ideal center for diversified farming and livestock. i ` Principal crops are cution, com, wheat, oats, hay, grain sorghums and peanuts, Dairy cattle, beef cattle, sheep, bogs, chickens and (1 turkeys contribute a substantial and steady income every year to the farmers and ranchers of the County. A very significant concentration of valuable world champion quane,fiorses and horse ranches, located inunediately to the north and west of the City's 'v corporate boundaries, pnuvide a prosperous economic resource for the City and area. Pruducts significant in this total include the f . horse industry, beef, eggs, wheat, grain sorghums, hay and nursery crops. T)UNSPOKTATIOM. , . Denton is located ouiy 20 miles northeast of the Dallas-Fort Worth International Airport This facility br gan ` operations in January, 1974. It is the largest airport in the 1-tuted States, second largest in the world, and represents an ~nvescm rat in excess of $700,000,000. The Denton Municipal Airport uses a full instrument landing sys!em The runway is 5,000 feet by 150 feet with plans to extend it to l v i, 6,000 feet. Dallas Love Field, Fort Worth Meacham Field, and the Alliance Airport are also located in close proximity to the City. Denton Is the focal point in the Interstate Highway System O.H. 35-E arsrl I It. 35-W). LFf. 35•E connects Denton with Dallas, m' ! 1 H. 35-W ties to Fort Worth. The east and west sections of the U. S. Interlate 35 form pan of a vast network that begins at UK Canadian border on the north and traverses the entire United States, to end at the Mcxican border on the south. North from Denton the highway connects with Oklahoma City and thence through the Midwest. Roil transportation is fumished by two railroads - Santa Fe and Union Pacific-Missouri bas transportation by OreyhoundrTrailways Bus Lines motor freight by twelve truck lines 11 80 KING.. , There arc six banks in the City Bank of America Texas, NA Bank One, Texas, NA.... First Sue Bank of fiJ Texas - ..The Pilot Point Natio.tal Bank.., Provident Bank Texas Bank. CDMaFNtiD RANK D'FlO6nrs rll ~ ' Y_ car Amount i! 199I f 565,630,000 {l ` 1992 663,882,000 1993 671,821,000 1994 619,211,000 1993 728,100,000 (1) City of Denton Economic D c%clopment Services , Bank One constructed a new 4,000 square foot branch at the G,Y,en Triangle Mall, Texas Bank replaced its original building on University Drive with a new 2,500 square fuut branch. The Denton Bands opened a new branch in existing space at 1-35 Fast grad Lillian Miller Parkway. I II A-e ~11 I~ I 1, i4l • • G R019T11 t-MICFS City Suite Fiscal Building Permiuir`h Water Sewer Nectri, Unemployment Unemployment Year commercial Residential Tail Meters Mom Moen Rates Run 1991 S 6,149,572 S 12,40,159 $ 18,764,031 14,267 14,)44 26 7.50% 6.60% 1992 40,336,291 22,197,221 62,533,502 14914 15,042 27AM 7.50% 7,50% 1993 30,820,964 28,285.720 59,106,684 15,877 15,992 7,956 6.00% 7.00% 1994 30,316,353 33,793.717 64,110,070 16,250 16,338 29,904 6.00% 6.40% 1993 !,837,779 36,330,517 48,168,591 WOO 16,470 31,090 5.30% 6.10% ,1l New Construction Only. I MEDICAL Denton has two hospitals Denton Regional 6ledical Center and "CA Denton Community Hospital with e combined total of 343 beds an1325 dmiors. RECREATIOei.., Lake Ray Roberts. ]mated approximately 8 miles northeast of the City's corporate boundary on the Elm Fork of the Trinity Rher, is a major water consmation and flood control (amity of more than 799,600 rave-feet of storage which provides an abundance of parks and other water and outdoor related recreational facilities. Major pars: facilities on Lake Ray Roberts are scheduled to open this year. Nearby lake Lewisville, one of North Texas' largest lakes, is one of Texas' most popular recreation areas. Lake Lewisville has a shore !~ne of 183 miles lo^•atal entirely in Denton County. Lake Lewisville anacts over 3,000,000 visitors to its shores annually. The upper reaches of the lake are only about 3 miles east of the Denton City limits, while the dam is 15 miles from downtown Denton. Cxapesine Lake, another large buJy cf water created by the U.S. Army Corps of Engineers, is located in Denton and Tarrant Counties. The dam is 21 miles from Denton. Parks and recreational arras Pound on the shores of Lake Ray Roberts, Lake L-ewi.,ville and Grap.^vine Wes. Boating, fishing, hunting, sw',nu Ling and a6 water sports are the favorite recreational pastimes at the lakes, which, bocause of this areas favorable cl;mate, are Lt use the year round. Econo'strc R4U:CIG The following data was taken from Sales and Marketing Management 1994 Suney of Buying Power, dated August 30, 1995, F Median Age of Population 7ZW 7c of Population Whose Age is: I8-24 26.E 25.34 17.30% 35.49 18.70% 1 50 and Over 17.40% 1 Households 27,50 I Median Household ElTative Buying Ineome S 29091 ~ Total Effective Buying Income $ 1,048,487,000 I % of Households by EBD Group y $10,000 - 519,999 18,80% ]1 $20,000 - $34,999 20.00' 535,000. 549,999 If.60% $50,000 and Over 26,30% Buying Power Index 0.0274 Retail Sales S 759,954 Food 108,898 Eating and Drinking 73,667 L General Merchandise 134.QD4 ~ Furnitc umitere•Home Furnishings-Appliances 25,391 391 Automotive 243,363 Drug 11,088 i A-5 1 71 i • I ~ • r, r n n e. enx..... ue n. w:.w~w w. ■C~ ~ i 11I1I~ 1 THIS PAGE LEFT BLANK INTENTIONALLY E! I ~ #1 l1 Rti ~ x ~ ~I i • I I 1 App M= EXCERPTS FROM THE CITY OF DEMON, TEXAS ANNUAL FtNANCtAL REPORT For the Year EMW SePWTIW 30,1996 1Te information contained in this Appendix con ists of excerpts from the City 0 Denton, i Texas Annual Financial Report for the Year Faded Septembtt 30,19%, and is not Lvended . to be a cornptcte statement of the C Ws financial condition. Reference is nnda to the complete Report for further infonnatior. i •f J[ y. r i k a ~1 I 11 l , THIS PAGE LEFT BUNK INTENTIONALLY J ~~11 tt !i 1 C . N • • r^ Ja ~1, b1r ~q.~ rA i ~t y \ L,4~r S'.~, Mtl • • Touche u.P - CityCenterTower11 Telephone (817)31.7.3300 + Suite 2950 l 301 Commerce Street Fort Worth, Texas 76102 I INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Members of the City Council City of Denton, Texas: We have audited the accompanying general purpose financial statements of the City of Denton, Texas ("City"), as of September 30, 1996, and for the year then ended, listed in the foregoing table of contents. These general purpose financial statements are the responsibility of the management of the City. Our responsibility is to express an opinion on these general purpose financial statements based II on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by y the Comptroller General of the United States. Those standards require ' that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, I evidence s sporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by - martagemerit, as well as evaluating th i overall financial statement presentation. We believe thrt our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements present fairly, in all material respects, the financial position of the City at September 30, I S96, and the results of its operations and the cash I flows of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles. Our audit was conducted for the purpose of forming an opinion on the general purpose financial I statements taken as a whole. The combining and individual fund and account group financial statements and schedules listed in the foregoing table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City. 1 These financial statements and schedules are also the responsibility of the management of the city. Such additional information has been subjected to the auditing procedures applied in our audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects when considered in relation to the general purpose financial statements taken as a whole. • In accordance with Governmeni,Wiring,Srandards, we have also issued a report dated December 20, f 1996 on our consideration of the City's internal control structure and a report dated December 20. I 1996 on its compliance with laws and regulations. LLP • December 20, 1996 • DeloitteTtlt►che Tohmatsu International r, • • I I CITY OF DENTON, TEXAS r, COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS 1 SEPTEMBER 30, 1996 Goven~-ental Fund Types ASSETS AND OTHEA OWS General Special Revenue Debt Service Captal Projects J Cash end deposits (Note 21 1 7,060,722 11,950,2113 1 41,590 12.961,762 )((1 { Investments (Note 2) 7,779,685 1.969,690 l~ Receivables (net of allowances for uncr Aec•.ible l• Ir1 Taxes 1,014,160 Accounts E 1 UmNlled wti service i Special assessments Accrued interest 131,522 367 26,405 Other 599,209 164,462 78,080 Out from other funds (Note 11) 495,133 110,274 4,581,832 4,095,731 Due from other governments 659,953 297,591 Merchandise inventory Prepaid home { Ceferred bond issuance costs ES Restricted asset Cash and deposit (Note 2) Investments (Nate 2) Accrual interest Due from other funds d Advances to other funds t Fixed assets Intl, where applicable, of accumulated depreciation; (Note 21 Amount available in Debt Sli Fund • Amount to be provided for retirement of long-term liabilities Total Assets and Oliver Do" 113,130.081 12.885,379 14,823,472 19,439,609 I (Continued) • The r_rompenying notes to financial etaLnten•e era an integral pan of lKs statement. . _ . 1 I Iflflf ComlHehanlive Annul Financial Report , •-......•..•~-r . • r • r CITY OF DENTON, TEXAS i Aduclary Pond Tom Proprietary Fund Types Type Acwunt Groups 4memonnJum orm ere>se~ I Tent and Genera! Fred General Long SeptemDar 30, September 30, Enterprise IraernW Service Ageney Anne Term UeGlides 1996 1695 l 8",960 1 639,223 12,877,215 1 1 1 12,605,360 1 6,960.598 9,066,056 5,011,517 23,826,951 57,660,534 I 1,014,160 9%9,673 6,076,984 6,076,984 6,613,460 I 5,562,508 6,562.506 4,890,791, 1,078 1,075,9S5 214,100 11508,349 1,336,890 I 510,723 49,341 7,356 1,409,071 2,364,847 194,703 21715,699 - 12,193,522 2,000,690 957,879 1,365,676 941,496 $1759,651 2,701,354 3,320.691 1,833 1811559 183,29S 2,249 1,221,226 1.221,226 962,763 3,434,279 149,529 - 3,583,606 4,207,248 81,947,744 5,421,012 87,366,756 40,946,741 357,012 - 357,012 351,114 9,902,779 - 8,902,779 1,535,172 , 4,831,784 - 4,131,714 5,973,181 177,302,154 6,130,315 108,561,744 291,994,213 279,143,317 552,167 682,167 104,904 • 29,373,390 29,373,380 29,976,326 l r 6302,302,229 122,472,153 12,684,471 6101,561,744 130,055,647 1496,354,665 1455,014,208 I ( 1 Comprehensive Annual Flnarldel R*W l r , CITY OF DENTON, TEXAS ' COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS (Continued) ~ SEPTEMBER 30, 1998 rf Governinventsl Fund Types L1A6R.fTlE6, EGIRTY AND GTHM MWIT8 General Special Revenue Debt Ssn4ce Capital Projects usbwtiee: Ac oft its pa cable and acr.t - I 8a Vas 81,387,785 11,017,896 1 1,819 41,082,438 Rat«n,eppayable - 43,001 I Accumulated unpaid compsmated steenc to (Note 4) - - ' Deposits 8,156 [ Payette Irom restricted assets Accounts payable and accrued expense Aetsnspe pgable r , Out to other funds (Note 111 l Accrued Internal - ` Revenue and general obligation bends paysbts, current (Note 0,1 Accrued irtereat - { a to other funds (Note 11) 4,867,e11 42,317 3,7. 1,196 347,107 l~ f r Other batilities 2,6162 Advances from other funds Deferred revenues 88,521 .59,339 218,190 1,849 Lesson payable Moles 4 and SI ` General obligation bonds payable (Note 41 Certificates of oblioation (Note 4) Revenue bonds psyeble (not of bond discoontl 1 1 E (Nate 41 if It` Clain., osysbla (Note 8) 1 1 • Notes psysbro (Note 41 ! landfill closwapostclosun cacti (Nora tai Total 1.1abIG1Fes $6.3 29,476 61,122,314 83 911,305 i1,440 4,495 1111 ~1 r (Continuedl 1 , is o The accompanying notes to rinancial statements are an integral pan of this statement. t 4 Cornprshanafve Annual Flnarldal Report Ito • CITY OF DENTON. TEXAS FK..o sty Fund Totals Froprietery Fund Types Typss Aeenunt Groups (Memorandum ONyI Trust and General Fred Genoel Long- September 30, September 30, Enterprise Iniernsi Service _ Agency Assets Term Liabilities 1996 1995 6 3.408,803 6 553,676 $2.967,930 t 6 6 10,330,147 6 12,537,561 17,148 - 60,149 116,662 I 727,974 40,076 3,6S8.409 4,426,459 4,069,918 1,158,167 1,164,326 1,172,775 142,058 142,058 124,082 42,502 - 42,502 - • 77,910 1,980,499 22,574 2,003,063 1,085,427 5,909,832 5,909,832 4,466,980 150,026 Q 8,369,227 3,749,895 148 21,095,301 3,4S7,832 2,662 29.307 4,831,784 4,631,784 5,891,764 I 547,999 449,050 36.035 75,354 - 8,535 119,984 396,130 430,871 88,655 22,320,623 22,640,349 23,149,751 , 8,023,850 1,724,918 4,067,780 13,816,548 10,505,000 I 83,890,001 63,990,001 50,010,000 1 2,325,492 - 2,525,492 3,286,012 31,273,659 - - 31,273,659 64,696,392 • 2,900,561 - 2,900,561 2,646,259 $153,142,021 $9,780,640 62,868,078 6 630,055,547 0207,923,975 6188,531,878 I • ~ ~ s o i .5. Comprehensive Annual Financial Report • CITY OF DENTON, TEXAS f i, E COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS IConcludedl I SEPTEMBER 30, 1956 Governmental Fund Types LMIUrrlEq, EQUITY AND OTHER CREDITS General Special Revenue Debt Service Capital Projects y 1 Fund Equity: Contributed capital _ (net, where applicable of secumufated depiecistionl t t 1 t - I Investman: in general fixed assets (Note 31 Retained earnings _ e Reserved for bond retirement (Note 41 - li Reserved for capital projects t Reserved for Meet replacement - - t Reserved for landfill retirement - - - liaterved for debt retirement Reserved for dumpster replacement - - - L Reserosd for rate stabdirabon - - neserved for working capital - Q Reserved for emergency - - Reserved for water icwer - Reserved lot water walls Reserved for inf ust rocture financing - 1 Reserved for future clams - ' 1 Reserved for eutnoraeo expenditures - _ r 1 Unreserved Fund balances Resaried for debt service Rer:,rved for encumbrances 482,761 223.830 - 453.041 t, Reserv,.A for ceptal protects - 7,502,073 • Vnreserved - ' Designated for subsequent years' expenditures Undes,gneted 6,317,844 1,339,235 - i Total Equity and Other Credits 6,800,605 11583,065 682,167 7,955,110 • Total Liabilities, Equity r • • and Drifter Credits $13,130,081 12,885,379 14,623,472 s: 439,609 The accompanying notes to financial atslements are an integral part of this statement `ff{ 11 •6• (1 - Comprehensive Annual financial Report 4 s . e CITY OF DENTON, TEXAS_ Fiduciary Fund Tatets Propietary Fund Tvpee Types Account Groups Wemorendum On1y1 Trust and General Fixed General Long- September 30. SaptarMer 30, Enterprise Internal Sendce Agency Assets Term liabilities Me 1995 I 1 14,209,112 11,012,199 1 / - 1 6 15,221,310 815,925,424 108,561,744 108561,744 102.418,S47 I 12,802,157 - - 121PO21157 9,588,568 17,296,701 149.529 - 17,448,230 13.189.822 l I 5,421,012 - - 5.421.012 5.987.422 458,975 - 456,975 191.975 I 307.100 307,100 262,100 75,000 75,000 75,000 45,932,000 45,932,600 400,000 2,153,000 2,153.000 2,000,000 5,384,000 5.384,000 8,000,000 550.000 550,000 350,000 90,000 1,610.000 1,610.000 1.1 10,001D j - 3,130.531 - 3,130,531 2.737,019 13 000 - 13.000 46,384,163 3,96S,243 52,349.406 87.630,451 I 682,167 704,904 I! 1,169.632 5,615,469 - - 7.502,073 6,738,207 • i . 511.548 16,393 7,673,472 6.965,872 I 149,160.208 13,691,511 16,393 106,561,744 26d,430,809 2611,4/2,328 • 8302,302,229 $22,472153 $2,984,471 $108,S61,744 130,055.547 $496,354,685 1455,014,206 3I~ e e I I , _ ! .7. Comprehensive Annuat Financial Report ti • ~~~-.r.r-.✓' a • • CITY OF DENTON, TEXAS J COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES • ! ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1995 Gwermtarn el Fund Tvaea I7I Gonorol Spes;r Revenue Oabt 6arvlce Cwd Projects i REVENUES. Tees $11,001,499 1 74.681,801 1 - Liceroa end pemre 672,078 - Franchiea her 0,057,244 I Foes " furl ehwn 1,574,050 Fen for services 1,140.724 707,583 Interest revenue 710,589 811,097 14,743 359,441 Inbrpavsrrtmantel 540,630 2.634,580 272,887 Comvibutierte Mieceflweow 582,370 1.581.704 101,935 690.,618 I Teal Revew7 29,189,781 5,219.024 4.758.379 1,222626 M EXPENDITURES. If Cu"" • i 1 Genoel Government 8,044,178 3.51511 754 Public ufety 13,696,602 254,995 Pubbc works 4,398.384 Prls"reoeeion 2.735.170 609,640 Cepnel "ley 635,151 434.209 4,185.675 Debt service - , Prmclpr rememem 3.549.515 Interest end Lace chwpee 1,411,448 ~l Ever Eeaendirum 29,507,891 4,965,603 4,960 903 4,165.675 EXCESS OF REVENUES OVER IUNOERI EXPENDITURES 1317,9101 353,421 1202,5841 12,662.8491 OTHER FINANCING SOURCES fUSESI Proceeds of longterm debt 2,705.000 Operating nensfen n 370003 300,653 179,147 997.590 j ` Opwrmg trenefere Jowl 1252,2681 1411,7751 1275,1301 I Tort Other Fnencng Sowces IUmo1 117,735 (170,9221 179,847 3.427,154 ! J EXCESS OF REVENUES AND OTHER SOURCES 1 OVER WOODEN EXPENDITURES ANO OTHER USES 1200,17SI 242.499 122.7371 484,305 • FUND BALANCE • October 1 7,000,760 1.370.566 704.9111 7,490.809 ~ • • FUND BALANCE • September 30 1 8,800,005 1 1,663,085 1 682,167 1 7,655,114 J t The accompanvng 001es to fnancief ermMOts we at nteprel port of this star ..t. •B• 1 Comptehensive Annual FinOncld Repat I k • r • CITY OF DENTON, TEXAS 1 lI T n.l. F0. 6my Fwd O eow s dwn 0.Jy1 Typ. Y44r Ended bpadmEl4 - Trwn Sop14mDa 30, 1990 Sw&rAw 30, 1995 i 122,583,299 122,099,270 ■ 577.675 366,274 ! 6.067.244 0,112.649 1,574,050 1,552,840 1.849.101 1.747M4 2,186 1,175,038 1,112.600 • 3.646.077 4,378.641 24,635 24.636 . 2,923,487 3.481,588 26,803 40,416,013 40,853.882 f 39,351 11,650,263 10,151,522 Q 13,951,797 12,004.527 vv 4,396,394 4,374,433 3,344,822 3.017.813 5155,034 5,533,057 3.549,515 3,095,856 I~I 1411,446 1,491,032 f 39.351 43,559,283 41,268.840 ' (12.548) (3,142.4701 1414.9581 2,705,D00 1.010.000 • 1,849,293 482,317 • 1939,479) 1397.3171 i 3,013.814 1,705,000 112, 5481 471.344 1,290042 i 28,941 10.540,000 15,255,958 , • 918,393 917,017,344 816,640,400 • • i ` •9 - Comprohenolve Annual Financial Report • • CITY OF DENTON, TEXAS a COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES • BUDGET AND ACTUAL GENERAL, SPECIAL REVENUE RECREATION FUND AND DEBT SERVICE FUNDS (BUDGET BASIS) FOR "FHE FISCAL YEAR ENDED SEPTEMBER 30, 1996 General Fund Variance f Favorable Budget Actual (Unfavorable) REVENUES: Taxes $17,574,713 $18,001,498 4 426,765 I Licenses and permits 415,430 572,676 157,246 Franchise fees 5,688,955 6,067,244 378,289 Fines and forfeitures 1,480,993 1,574,050 93,057 Fees for services 1,167,129 1,140,724 (26,4051 Interest revenue 613,845 710,589 96,744 ' I Intergsvernmenial 522,407 540,630 18,223 Miscellaneous 447,310 582,370 135,060 Total Revenues 27,910,782 29,189,781 1,278,999 EXPENDITURES: Current • General Government 8,475,381 7,843,985 631,396 Q Public safety 13,843,280 13,676,696 165,584 Public works 2,810,842 2,732,999 77,843 Parks and recreation 4,600,819 4,377,842 222,977 Capital outlay 546,811 501,797 45,014 i! Debt service • C1 Principal retirement - - 1 Interest and fiscal charges - - ~1! Total Expenditures 30,277,133 29,133,319 1,143,814 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 12,366,3511 56,462 2,422,813 OTHER FINANCING SOURCES IUSESI Operating translers in •370,768 370,003 0651 • Operating transfers (out) 1252,2681 1252,268) Total Other Financing Sources (Uses) 118,500 117,735 (7651 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDERI EXPENDITURES AND OTHER USES 12,247,8511 174,197 2,422,048 FUND BALANCE • October 1 4,955,205 6,687,166 1,731,961 ~l • FUND BALANCE • September 30 S 2,707,354 $ 6,861,363 $4,154,009 t • • The accompanying notes to financial statements are an integral part of this statement. 1 11 •10• Comprehensive Annual Financial Report 1 1- Mill s 0 CITY OF DENTON. TEXAS f f f Special Revenue Recreation Fund Debt Service Fund Variance Variance Favarable Favorable f Budget Actual 1Unlavorablel Budget Actual Nnlavorablel t $ S 14,581,801 14,581,801 $ f f f 625,250 624,537 17131 f - 14,743 14,743 161,835 161,835 f 625,250 624,537 17131 4,743,636 4,758,379 14,741 591,648 544,581 47,067 33,948 36,960 13,0211 3,578,049 3,549,515 28,534 1,525, 308 1,411,448 113,660 625,596 581,550 44,046 5,103,357 4,960,963 142,394 f 1346! 42,987 43,333 1359,7211 1202,5841 157,137 • 149.7 21 179,847 30,126 ~ • ~ ~ 131,2041 (31,2041 131,2041 131,204) 149,721 179,847 30,126 r f (31,550) 11,783 43,333 1210,0001 122,7371 187,263 / f 5,530 140,962 135,432 1218,9751 704,904 923,879 • $ (26,0201 $152,745 $178,765 $ 1428,9751 4 682,167 $1,111,142 • a ~f Comprehensive Annual Financial Report ll f1 r ✓5 • • CITY OF DENTON. TEXAS COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS • t , ALL PROPRIETARY FUND TYPES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1996 Proprietary Fund Types Enterprise Internal Service OPERATING REVENUES: Electric service $ 69,533,180 11 Water service 15,328,696 - Wastewater service 9,997,665 - Charges for goods and services 6,830,428 6,687,569 t j Premiums 4.599,478 ttt Miscellaneous 122,045 7,664 Tate Operating Revenues 101,811,914 11,194.611 OPERATING EXPENSES: Purchased power 41,469,061 ~Fuel 6,981,645 Purchase of water 80,290 Salaries and wages 11,343,969 772,628 Materials and supplies 1,910,975 3,539,654 Maintenance and repairs 3,967,291 45,259 Depreciation 6,817,656 1,695,084 Inauranca 3,635,667 ! Administrative cost 9,465,707 Closuu/Poetclosure cost 264,302 - II Miscellaneous 4,068,260 1.008,246 Total Operating Expenses 86,349.156 10.496,338 ti Operating Income 15,462.756 698,273 NONOPERATING REVENUES IEXPENSESI: ' Interest revenue 5,350.953 655,415 1 Interest expense and fiscal charges 17,365,7011 (135,345) - Other 136,1601 211,760 Total Nonopersting Revenues IEsperi 12,050,9281 731,630 I l l Income Before Operating Transfers 13,411.830 1,430,103 1E}E OPERATING TRANSFERS IN IOUTI: Operating Transfers in - - ! 1 A Operil trenslers local 1778,8141 (132,0061 Total Operating Transfers 1776,8141 (132,0001 Not Income 12,635,016 1,298,103 Add Depreciation of Fixed Assets accused with Contributed Capital 1,791,193 313.742 Increase in Petelned Earnings 14,425,209 1,611,845 ~t RETAINED EARNINGS • October 1 as previously reponsd 120,624,887 11.067.470 r Adjustment of fixed asters (Note 31 • RETAINED EARNINGS - October 1 as ttstatad 120,524,687 11,067,470 RETAINED EARNINGS • September 30 111134,9 5 1.09a $12,679,315 The accompanying notes to financial statements are an integral part of this statement. •12• 1 Comprehensive Annual FinaNldal Repo„ - r~ '1-' • • CITY OF DENTON. TEXAS r , Total Wamorendum Ordyl Year Ended September 30, 1996 September 30, 1995 S 69.633,180 1 68,972,242 16,329,696 13,642,386 9,997,665 9,619,D66 13,417,997 12,677,168 4,599,478 2,814,736 128,609 1,162,627 113,006,625 108, 688,2 25 41,469,061 41,264,742 6,981,645 8,608,612 80,290 67,212 12,116,697 11,674,506 5,450,629 6,395,990 4,012,650 3,130,720 1 6,412,740 8,183,941 3,535,567 6,971,098 9,465,707 9,121,716 264,302 207,842 6,066,606 3,871,018 96,845,494 95,609,367 16.161,031 _ 13.078 838 6,006,368 3,238.096 I (7,501,0451 16,268.312) , 175,580 1266.0921 11,319,0981 (3,317,2081 14,841,933 9,761,630 83,871 • 1908,8141 (178,9711 1908, 614) 195,0001 13,933,119 9,666,630 2,104,935 2.019,964 16,038,064 11,698,594 131,582,357 118,409,667 i. • - 1,497,106 • • 131, 592, 3 57 119,905,703 $147,630,41t 1131,692,357 •13- Comprehensive Annual Financial Report _ _ • • CITY OF DENTON, TEXAS COMBINED STATEMENT OF CASH FLOWS • fi ALL PROPRIETARY FUND TYPES L t FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1996 t f Proprietary Fund Types Enterprise Internal Service Cash flows from operating activitiee: 1 Cash received from customers f 94,988,138 6 8,871,132 Cash paid to employees for services (55,938,6111 1769,651) Cash paid to suppliers 116,174.6391 (81833.691) 1 Net cash provided by operetiorq 23,874,888 1,267,890 Cash flows from noncriphal financing activities: Contributions to Float Replacement Fund 1167,8771 Operating transfers out to other funds 1776,814) 1132,0001 Operating transfers from other funds [i Principal payment on long-term advances from other funds 11,05D,000) t1 Payment received on longterm advance to other funds 1,050,000 Contributions to others 18,2491 Proceeds from others 139,846 65,412 Net cash fused fort nonaapital financing activities 1812,9941 176,5881 ~t Cash flows from caphal and related financing activities: Proceeds received from contributed capital 261,153 Principal payments on revenue bonds and certificates of obligation 14,552,380) 1538,104) Interest and fiscal charges 16,860,0211 1143,1991 Proceeds from issue of revenue bonds and certificates of obligation 44, 260,000 - ` i Proceeds from issue of notes payable 282,360 - J Principal payments on notes payable 133,905,092) Proceeds from advance from other funds , Ninc;pal payments under capital lease obligation 1102,1161 1121,718) AcgUispUOn end consuvction of fixed assets (10,862,141) 12,448,7971 Proceeds from sate of fixed assets 188,093 Net cash (used fat capital and rotated Financing activities 111,478,2371 13,083,72SI !I Cash Ilows from Investing activities: `I Proceeds from sale and matwdics of investment securities 84,139,445 3,171.836 • Purchase of investment securities 1101,930,7741 11.992,9331 Interest received on investments 5,369,970 821,639 ` Not cash provided by (used for) Investing activities 112,421,3591 1,800,641 S ' Net increase ideuoesal in cash end cash equivalents 1837,7021 171,8521 Cash and cash pvfvafents • October 1 6,146,861 1,060,634 t • Cash and cash equlvslents • September 30 1 4,309,259 1 988,782 • (Continued) The accompanying notes to financial statements are an integral part of this statement. .14. Comprehensive Annual Fhtandal Report `J c - • • CITY OF DENTON, TEXAS Touts (Mcmasndum Only) _ ' Year Ended September 30, 1996 September 30, 1995 $103,869,270 1108,889,748 166,708,1621 01,592,39F) ' 122,008,3301 176,867,5781 26,142, 778 19,429,775 1 1167,8771 (473,693) (908,814) (178,8711 83,871 11.050.000) 1550.0001 1,050,000 550,000 18,2491 195,358 20,990 (889,682) 1547,703! 261,153 201,848 (5,090.4841 15,029,145) (7,003, 2201 0,202,63 IJ 44,260,000 2,000,000 282.360 137,280 { 133,905,0921 1136,0001 • 91,397 1 . (223134) (204,3131 I 113,310.938) 19,631,3921 168,093 194,420 t 14,541,9621 118,578,436) I 87,311,280 81,530,760 • 003.923,7071 (86,533.1021 5,991.609 3,175,452 / 110, 620, 8181 11,626,8901 / (909,5841 11,623,2541 6,207 595 7,730,849 J • S 6,296,011 6 6,207,595 • • 3 •15• Comprehensive Annual Financial Report i • • 0 0 A _ CITY OF DENTON, TEXAS_ i1 1 COMBINED STATEMENT OF CASH FLOWS - t , ALL PROPRIETARY FUND TYPES (Concluded) Fr F T"~ FISCAL YEAR ENDED SEPTEMBER 30, 1996 I~ - - ~t Enterprise Internal Service Reconciliation of Proprietary Fund Operating Income to Net Ch sh 1 rovided by Operating Activities LI Operating income: $15,462,756 $ 698,273 Adjustments: Depreciation expanse 6,817,656 1,595,084 Loss (Gain) on sale of fixed asset 8,401 ClosurelPostclosure expense 254,302 1 Decrease (increase) in receivables 696,745 142,452 Decrease (Increase) in due from other funds 17,520,521) (2,465,931) Decrease (Increase( in inventories 341,947 277,290 Decrtase Increase) in prepaid items (1,8361 1179,747) Increase IDecreasel in accounts payable (391,9611 126,453) r. Increase (Decrease) in leases payable - 112,37E1 1{ f Increase (Decrease) in accumulated unpaid compensated absences 62,714 3,077 14 Increase Perri in due to other funds 8,153,084 1,999,440 C Increase (Decrease) in claims payable 1771,6201 Total adjustments 8,412,130 569.617 Net cash provided by operating activities $23,674,688 $1,267,890 r Supplemental Schedule of Noncash Capital and Related Financing Activities Noncash achvity during the year consisted of con,nDuteO capital from contractors and developers for the Enterprise Funds j and the internal Service Funds in the amount of $666,065 and $473,603, respectively. o r The accompanying notes to financial statements are an integral part of this statement. 1 If 16 `{t Comprehensive Annual Financial Report I 1 0 • CITY OF DENTON, TEXAS j , Totals (Memorandum Only) Year Ended September 30, 19,16 September 30, 1995 $16,161,031 $13,078,838 { I ` 8,412,740 8,183,941 8,401 254,302 207,842 839,197 (503,3861 19,986,4521 ",601,0141 619,237 194,172 (181,583) (2,0991 I (418,414) 13,865,6931 112,376) 50,772 65,791 72,112 10,152,524 1,505,388 1771,620) 2,108,912 8,981,747 6,350,937 $25,142,778 $19,429,775 • ~ I ' .I ~a t 117. r Comprehensive Annual Financial Report • r_ r i CITY OF DENTON, TEXAS F~ 4I IJ t' U' ,I Is- Comprehensive Annul Financial Repot t • • CITY OF DENTON, TEXAS NOTES TO FINANCIAL STATEMENTS J FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1996 I I (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ' The City of Denton ('the City') was incorporated September 26, 1866. The City operates as a Home Rule City, under a Council-Manager form of government and provides the following services as authorized by its Charter: public safety (police and fire), public works, parks and recreation, electric, water and wastewater utilities, solid waste, and general administrative services. The City is a municipal corporation governed by an elected mayor and six-member council. The City receives funding from state and federal government sources and must comply with the requirements of these funding source entities. However, the City is not included in any other governmental "reporting entity,' as defined in pronouncements by the Governmental Accounting I Standards Board ('GASB') Statement No. 14, 'The Reporting Entity,' since Council members are elected by the public and have decision-making authority, the authority to levy taxes, the power to designate management, the ability to significantly influence operations, and primary accountability for fiscal matters. l The accounting policies of the City conform to generally accepted accounting principles as oplicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The r following is a summary of the more significant policies: I A. Reporting Entity The City is governed by an elected mayor and six-member Council. As required by generally accepted accounting principles, these financial statements present the City (the primary government) and its component units, which are entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the City's operations and so data from these units are combined with data of the primary government. A discretely presented component unit, on the other hand, is reported in a separate column in the • combined financial statements to emphasize it is legally separate from the City. The City had no discretely presented component units at September 30, 1996. i Blended Component Unit-The Denton Economic Development Board (Board) is legally separate from the City and the City appoints its governing board. Although it is legally separate from the City, the Board is reported as if it were part of the primary government because the City provides the • majority of its funding and the Beard provides the City's economic development services almost exclusively for the benefit of the City The Board does provide marketing and economic development • O services to the City and the City provides for custody and investment of the Board's assets, various l! administrative/personnel/legal services and the majority of fending for the Board's budget. The Board is reported as a special revenue fund type. There are no separately issued financial statements of the Board. •19• J . • C`- • 11,7 .1 Z • • f, Notes, City of Denton (Continued) September 30, 1996 ` ff d1 B. Fund Accounting The accounts of the City are maintained on the basis of funds or account groups, each of which is considered a separate accounting entity. The operations of each fund are summarized by providing a separate set of self-balancing accounts which comprise its assets, liabilities, fund equity, 1 revenues, expenses and expenditures. The following funds and account groups are used by the City. Governmental Fund Types 1 General Fund- The General Fund is the principal fund of the City. All general tax revenues and other receipts that are not allocated by taw or contractual agreement to some other fund are accounted for in this fund. From the fund are paid the general operating costs, the fixed charges and the capital r~ improvement costs that are not paid through other funds. Special Revenue Funds- The Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or major capital projects) that are legally restricted to expenditures for specified purposes. These funds include the grants from the Department of ` Housing and Urban Development (Community Development Block Grant) and from the Texas Criminal 1 I Justice Division, Department of Education, the recreation fund and miscellaneous other revenues. V Debt Service Fund- f The Debt Service Fund accounts for the payment of principal and interest on general long-term liabilities, paid primarily by taxes levied by the City, and for the payment of principal and interest on capital leases in the governmental fund types. Capital Projects Funds- The Capital Projects Funds account for the acquisition of capital facilities being financed from bond proceeds, contributed capital, or transfers from other funds, other than those recorded in the Enterprise Funds and the Internal Service Funds. 1 Proprietary Fund Types • Enterprise Funds- ~f J i The Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. These funds include the Electric, Water F, • and Wastewater Utility Systems (Utility System) and the Solid Waste operations. 1 • • lnternal Service Funds- t] The Internal Service Funds account for the financing of materials and services provided by one r) department of the City to other departments of the City on a cost-reimbursement basis. These funds { j Zo . v • _ I Notes, City of Denton (Continued) September 30, 1996 include the Fleet Services Fund (vehicle maintenance and machine shop), the Warehouse Fund, the Motor Pool Fund, and the Risk Retention Fund. Fiduciary Fund Types Trust and Agency Funds- Trust and Agency Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governments, and/or other funds. These include the Expendable Trust Fund and Agency Funds. The Expendable Trust Fund is accounted for in essentially the same manner as Governmental Fund Types. The Expendable Trust Fund is comprised of several trust funds of varied purpose. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The Agency Funds include the Payroll Fund, the Deferred Compensation Fund and other miscellaneous funds. General Fixed Assets Account Group ' The General Fixed Assets Account Group represents a summary of the fixed assets of the City, other than assets of the Proprietary Funds. Capital outlays in funds other than Proprietary Fund Type are recorded as expenditures of those funds at the time of purchase and subsequently recorded for control purposes in the General Fixed Assets Account Group. General Long-Term Liabilities Account Group ' The General Long-Term Liabilities Account Group represents a summary of the long-term liabilities of the City paid principally by taxes levied by the City. This account group does not include long-term debt accounted for in the Proprietary Fund Types. C. Basis of Accounting I The accrual basis--The Proprietary Fund Types are accounted for on a flow of economic resources measurement focus. Accordingly, the accrual basis, whereby revenues and expenses are identified in the accounting period in which they are earned and incurred and net income is determined, is utilized for these funds. The City applies all GASS pronouncements as well as the Financial Accounting Standards Board pronouncements issued on or before November 30, 1989, unless these pronouncements conflict or contradict GASB pronouncements. Modified accrual basis-The Governmental Fund Types are accounted for on a flow of financial O resources measurement focus. Accordingly, the modified accrual basis is used for these funds and the Agency Funds, Modifications in the accrual basis for these funds include the following: 1. Revenues are recognized when they become both measurable and available for use during the year. Those revenues treated as being susceptible to accrual include taxes, interest and intergovernmental revenues, Property tax revenue is recognized independently of receivables in the fiscal year for which taxes have been levied, provided they become available. Available • means then due, or past due and receivable during the current period, collected within the O O current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. Such time thereafter should not exceed 60 days. Revenue sources from licenses, fines and forfeitures, service charges and other miscellaneous revenues are recognized as the cash is received. 21- i v • • (t l Notes, City of Denton (Continued} [ September 30, 1996 l 2. Expenditures are recognized when the related fund liability is incurred, except for interest and principal on general long-term debt, which are recorded when due, and vacation and sick leave, which are recorded when payable from current available resources. 3. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable I appropriation, is employed as an extension of formal budgetary integration. Encumbrances outstanding at year-end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. D. Budgets and Budgetary Accounting The City Council follows these procedures as prescribed by City Charier, in establishing the budgets reflected in the financial statements:' 1. At least sixty days prior to the beginning of each fiscal year, the City Manager submits to the j City Council a proposed budget for the fiscal year beginning on the following October 1. The operating budget includes proposed expenditures and the means of financing them. ~j 2. Public hearings are conducted prior to the adoption of the budget in order to obtain taxpayer } comments. } 3. The annual budget adopted by the City Council covers the General Fund, Special Revenue j i Fund (Recreation Fund only), the Debt Service Fund, the Enterprise Funds, and Internal Service Func's (except for the Risk Retention fund). The budget is legally enacted by the City Council through passage of an ordinance prior to the beginning of the fiscal year. The general purpose financial statements reflect the legal level of control, which is at the appropriation level by function activity within an individual fund as approved by City Council, j 4. The City Charter provides tha the City Manager has the authority to transfer any unencumbered appropriation balances from one appropriation to another within a single function (office, department or agency). City Council approval is not required at this level, ! The Charter also provides that within the last three months of the fiscal year the City Manager roust have City Council approval of any transfer of unencumbered appropriation balances or !1 t portions thereof between functions as well as any increases in fund appropriations. Individual r amendments were not material in relation to the original appropriations which were amended. All budgets are adopted on a basis consistent with generally accepted accounting principles ~ • except that for the Governmental Fund Types, Proprietary Fund Types, and the Special Revenue Recreation fund encumbrances are treated as budgeted expenditures in the year of commitment to ` f purchase and for the Proprietary Fund Types depreciation e_pense is not budgeted. All unexpended l appropriations at fiscal year end lapse to the appropriate fund balance except for those of the 111 multi-year grants and/or projects. Encumbered appropriations are carried forward to the succeeding year. • A reconciliation of rcvenue.t and expenditures on the budgetary basis to revenues and f • O expenditures on the modif4d accrual Oasis for Governmental Fund Types is as follows: ~j 22 1 + Y =Mc • • Notes, City of Denton (Continued) September 30, 1996 I General Special Revenue Fund Funds Revenues and Other Sources: Budgetary basis $29,559,784 1624,537 Other Special Revenue Recreation Funds unbudgeted 72,550 All other Special Revenue Funds 4,822,790 Revenues and other sources on modified accrual basis 29,559,784 5,519,877 Expenditures and Other Uses: Budgetary basis 29,385.587 612,754 Other Special Revenue Recreation Funds unbudgeted 67,196 All other Special Revenue Funds 4,597,428 Encumbrances Ined 374,372 Expenditures and other uses on modified accrual basls 29,7;9,959 5,277,378 Revenues end other sources over (under) expenditures and other uses on modified accrual basis 1 (200,175) 1 242,499 f E. Cash and Investments For the purposes of the 'Statement of Cash Flow,' the City considers investments with maturities of under 90 days at acquisition to be cash and cash equivalents. Investments are carried at cost which approximates market value except for Investments in the deferred compensation plan which are carried at market value. Interest earned on investments is recorded in the funds in which the investments are recorded. F. Unbilfed Receivables f The City accrues amounts for utility services provided in September, but not billed at September '21, 1996. • G. inventories Inventories are valued at the lower of cost or market. Cost is determined using a moving f average method. No inventories exist in the governmental fund types. I 11. Fixed Assets Enterprise and Internal Service Funds- • Fixed assets are recorded at cost, including net interest during the construction period. Contributed property is recorded at fair market value at the date of contribution. Depreciation is recorded on each class of depreciable property utilizing the straight-line method over the estimated useful lives of the assets. •23- C • • e Notes, City of Demon (Continued) 1 f September 30, 1996 f I Estimated useful lives are as follows: f UsefW Life 7 Fixed Asset (Years) ENTERPRISE FUNDS- i Electric System. General assets Structures 50 Equipment 5 20 [t D stribut+on assets Structures 50 ! I Equipment 20 33 [ Transmission assets Equipment 20 33 (1 Internal combustion assets . Structures 50 . Equipment 13 20 Steam power assets • Structures 50 . Equipment 20 35 Water and Wastewater System Structures 50 4 Water and wastewater mains 20 33~ Equipment 10 20 f Furniture and fixtures 10 Water Storage Rights 40 100 Solid Waste I Vehicles and equipment 10 INTERNAL SERVICE FUNDS. - Vehicles and equipment 1 10 `l FJ Renewals and betterments of property and equipment are capitalized, whereas normal repairs and maintenance are charged to expense as incurred. t e General Fixed Assets- 1 ~ General fixed assets are recorded as expenditures in the General, Special Revenue or Capital y Projects Funds when acquired. Such assets are capitalized at cost in the General Fixed Assets Account Group. Significant gifts or contributions of assets are recorded in the General Fixed Assets Account Group at the fair market value at the date of acquisition. Public domain (infrastructure)( e general fixed assets consisting of streets, curbs, sidewalks, gutters and drainage systems, are f O e capitalized along with other general fixed assets. No depreciation is provided on general fixed assets. 1. Property Tax Revenue Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on October 1 and are due and payable at that time. All unpaid taxes levied October 1 become delinquent February 1 of the following year. I . 24. 77- • r Notes, City of Denton (Continued) September 30, 1996 k , The City records revenue from current property taxes in the year in which bills are measurable and available. An allowance is provided for delinquent taxes not expected to be collected In the future. At September 30, 1996, the City had a tax margin of $1.55 per $100 valuation based upon a maximum ad valorem tax of $2.50 per $100 valuation Imposed by Texas Constitutional law. Additional revenues up to $39,931,908 could be raised per year based on the current year's assessed value of $2,047,790,164 before the limit is reached. J. Compensated Absences The City allows employees to accumulate unused vacation up toforty days. Upon termination, any accumulated vacation time will be paid to an employee. Generally, sick leave is not paid upon termination except for firemen and policemen. Firemen and policemen accumulate unused sick leave up to a maximum of 90 days. All other employees are paid only upon illness while in the employ of j the City. As of September 30, 1996, the liability for accrued vacation leav3 and accrued sick leave Is approximately $4,426,459. The amounts applicable to the Enterprise Funds ($727,974) and Internal Service Funds ($40,076) have been recorded in those funds, and the amount applicable to other funds ($3,658,409) has been recorded in the General Long-Term Account Group. The amount expected to be paid from current available financial resources is not significant. K. Comparative Data Comparative totals for the prior year have been presented in the accompanying general purpose financial statements in order to provide an understanding of changes in the City's financial position and operations. However, comparative data (presentation of prior year amounts by fund type) in each of the statements have not been included, since their inclusion would make the combined statements unduly complex and difficult to read. , In certain cases, the amounts previously reported in 1995 have been reclassified In order to conform to the 1996 presentation. L. 'Memorandum Only' Total Columns Total columns on the combined statements are captioned as 'memorandum only' to indicate • that they are presented only to facilitate analysis. Data in these columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting ' principles. This presentation does not represent a consolidation. Interfund eliminations have not been made in the aggregation of this data. • ~ 0 0 r . 25 - y , !7=1 07, Ili= • Notes, City of Denton (Continued) September 30, 1996 I I' (2) CASH AND INVESTMENTS In order to facilitate effective cash management practices, the operating cash and certificates ) of deposits of all funds, except for the deferred compensation fund, are pooled into commcr accounts for the purpose of increasing income through combined investment activities. At year end, the carrying amount of the City's deposits (cash and certificates of deposit) was $16,189,188, and the 1 bank balance was 4909,387. Federal depository insurance or the fair value of collateral held by the City's agent in the City's name exce:d in total the City's bank deposits (cash and certiftates of r1 deposit) at year-end. 1 The investments of the deferred compensation fund are held separately from those of other ry City funds by an outside trustea appointed by the City. 1171 Statutes authorize the City to invest in obligations of the U.S. Treasury, U.S. agencies, ttti repurchase agreements, municipal pools, municipal securities, and certificates of deposit. The f~ investments reported at Septomber 30, 1996 are similar to those held during the fiscal year. r At September 30, 1996, the City's investments (U.S. Treasury and Agency Securities and Municipal Securities) are insured or registered or the securities are held by the City or its agent in the C1 City's name. As of September 30, 1996, the City's investments are as follows: fi Category I Par Cost Market Value U.S. Treasury Securities $ 68,110,761 $ 68,350,000 $ 68,110,761 S 69,101,975 U.S. Agency Securities 38,587,755 38,630,000 38,587,755 38,980,569 Municipal Securities 4,497,198 4,500,000 4,497,198 4,446,563 t{~ Total Securities 5111,195,714 $111,480,000 $111,195,714 $112,529,107 [1 Municipal Pool ITexpool) 8,280,000 8,280,000 8,280,000 1 Municipal Pool (Logic) 2,000,000 2,000.000 2,000,000 {I r Certificates of Deposit 86,494 86,494 86,494 86,494 Deferred Compensation Investments 2,503,102 2,503,102 Total $111,282,208 $121;846,494 $124,065,310 4125,398,703 • I 26 (y • Notes, City of Denton (Continued) September 30, 1996 t I (31 FIXED ASSETS I General Fared Assets- General fixed assets balances and transactions for the year ended September 30, 1996, are summarized below: Balance Balance October 1, Transfers/ Transfers/ September 30, 1995 Additions Deductions 1996 Land / 5,275,689 $ 3 4 5,275,689 Buildings 17,527,931 1,856,378 1639,9401 18,744,369 Streets 57,845,138 4,017,406 64,832,544 Machinery and equipment and other improvements 10,874,137 2,061,265 1332,6041 12,602,798 Construction in progress 10,925,652 4,253,161 15,072,469) 10,106,344 Total 1102,418,547 412,168,210 416,045,0131 $108,681,741 Investment in General Fixed Assets- From bond issues 4 73,870,444 a 9,325,630 4(5,072,4691 4 78,123,605 From current revenue 10,631,077 1,893,039 (972,5441 11,551,572 84,501,521 11,218,665 16,045,013) 89,675,177 From contributions _ 17,917,026 969,541 18,886,567 , Total 4102,418,547 412,188,210 4(a,045,013) $108,561,744 i ~ f i r • • 1 rJotes, City of Denton (Continued) September 30, 1996 1 General Fixed Assets by function and activity as of September 30, 1996 are summarized as~ follows: Mach.(EQuip. and Other ' Tote Lend Buildings street. Imp" yams rite GENERAL GOVERNMENT: 1 Perks 1 9.554,735 12,412,800 1 5,440.026 1 11,701,909 Legal 81,569 - 81,569 Municipal Court 16,118 16,118 Human Resources 59,906 59,906 (1 CMO,'MSED 1,038,729 262,304 732.000 41,425 i Facility Management 10,298,368 2,600,585 7,089,950 607,833 Library 3,951.202 892,400 - 3,058,802 South Branch Library 700,520 700,520 i Ma nni nglCD 116,395 116,395 Inspections 47,612 - 47,512 Mein Street 3,146 3,146 Total General Govarnment 25,866,300 5,275,669 14,154,376 6,438,235 11 Ali LIC WORMS: C1) Trelfm Engineering 3,617,516 35,050 418,529, 3,163,937 Engineering 176,557 176,557 [ - Code Enforcement 74,650 14,650 - streets S6,360,805 56,351,791 9,014 Street Sweeping 'Drainage 3,611,810 3,795,065 16,745 r` Airport 2,186,842 850,110 1,267,159 69.573 l~ 11111 Environmertal Health Services 3.000 3,000 Animal Control 411,552 - 386.802 24,750 • Total pubfic N'orka 166,582,732 1 - 1 1,271,962 961,832,544 13,478,226 - r )1 , • • 1 - 7 • *^'^w'v' ~J 1t r t' ~t "f.1e ra r1~ P . r r c~ . c..ux1w . Notes, City of Denton (Continued) September 30, 1996 ■ I Mech./Equip, and Other Total Lent Buildings Stress Impro%a Monta icontinuedl FfNANCE: Finance Adminstteticn { 31,883 { 1 t ( 31,683 Customer Service 149,508 149,506 { Purchasing 12,848 12,848 ! Internal Audit 13,70 13,713,1 Budget 1,864 1,864 Treasury 40,177 - 40,177 Accounting 66,884 - 66,89< Murdcipol Court Clerks 51,911 - 51,911 Tax 12,275 - 12,275 f f AdmUdstrauve Services 95,998 - 95,998 1 Information Serv ces 413,263 413,263 Vol at Finance 890,124 890,124 j 0 PU&,'C WiFTY: Fire Administration 129,197 - 129,197 Fite Operations 3,155,840 2,823,531 332,309 f Fire Preventicn 13,932 13,972 Emergency Medical 151,712 151,712 Police 1,663,563 494,500 1,169,063 , Total Public 6sfery 5,114,244 3,318,031 1,796,213 Construction in Progress 10,106,344 TOTAL $103,551,744 $5,275,689 118,744,369 $61,632,544 112,602,798 r r , •29• f • ..r i Iy I Notes, City of Denton (Continued) September 30, 5996 Changes in general fixed assets by function and activity for the fiscal year ended September 30, 1996 are summarized as follows: General General Fixed Assets Tronsreno Fixed Asss:s 101155 Additions Deductions 9130195 GENERAL GOVERNMENT: r Parks 0 7,327.350 $2.227,385 6 t 9,554,735 1 6 Legal S9,914 21,655 81.569 rr1` Municipal' Court 9,542 6,576 16,118 11 Human Resources 53,419 6.487 59,906 1111111 CMO(MSED 1,037,254 1,475 - 1,038.729 l~ Facility Management 10,361,980 576,328 (639,9401 10,298,368 j Library 4,109,471 174,335 (332,604) 3.951,202 South Bench 4brary 911255 609,265 700,520 Ce Pianrvng/CD 74,977 41,418 116,395 it Inspections 47,612 47,612 Main Street 3,146 3,146 Total General Government 23,175.920 3,664,924 1972,544) 25,868,300 V80C WORKS; i f Tulfic Engineerng 3,091,271 526,245 - 3.617.516 ft I t Engineering 170,851 5,704 176,557 Code Enforcement 14,650 14,650 Streets $3,797,992 2,562,813 S6,360,50S l~ Street Sweeping/Drsinage 2,767,651 1,044,159 - 3,811,810 1111!!!! Airport 2,198,842 - 2,186,642 - Environmcnial Health Services 3,000 3,000 Animal Control 411,552 411,552 f Tats) public Works 082,443,811 14,138,921 1 066,582,732 r e1 • ti - ~ f f~ . .30. 15 Cv oil' • Notes, City of Denton (Continued) September 30, 1996 1 1 , f General General Fixed Assets Transfers/ Fixed Astaire 10(1!95 Additions Deductions 9130!96 (continued) ADVANCE: Finance Administration { 23,573 { 8,110 S { 31,683 " Customer Service 127,373 22,135 14g,5p8 Purchasing 9,200 3.648 - 12,848 internal Audit 13,713 13,713 Budget 1,864 - 1,854 - I Treasury 35,450 4,727 40,177 Accounting 62,023 4,881 65,884 Municipef Court Clerks 49,435 2,476 51,911 I Tax 12,275 12,275 Administrative Servlcss 88,301 7,697 95,998 Information Services 407,841 5,422 413,263 {1, Total Finance 829,184 60,940 890,124 l - MDBl1C SAFETY: l Fire Administration 129,197 129,197 Fire Operti 3.151,193 4,647 3,15S,840 I Fire Prevention 10,669 3,263 - 13,932 Emergency Medical 147,146 4,566 - 151,712 " J Police 1,605,775 57,788 1,663163 1i Total Public Safrty 5,043,980 70,264 5,114,244 Construction in Progress 10,925,652 4,253,161 (S,072,459) 10,105,344 TOTAL 1102,418,547 {12,188,210 416,045,0131 1108,561,744 s • -31. i Y_µ .a~. • • Notes, City of Denton (Continued)i September 30, 1996 i J! Construction in progress is composed of the following: Ptoiect Eepended to Appropriation September 30, 1996 Committed Airport Improvements 1 3,101,881 s 3,101,881 11 j GIs Computer System 1,284,304 1,214,1;141 69,353 Library 1,203,139 1,203,139 1 City Hall West Renovations 141,346 108,785 32,561 !I Rails to Trans 87,000 14,900 72,100 Perk Construction 300.000 267,728 32,272 City Hall Renovations 1,131,309 91,628 1,039,681 Public Solely Radio 76,409 76,409 Public Softy Computer System 1,314,534 1,228,750 85,784 Teasley Londccoping 78,121 77.629 452 Street and Budge • (y - Elm 314,516 50,977 263,539 Locust 1,155 373 582,658 572,655 Engineering Street 4S,750 28,274 17,478 Jim Christat Road 1,003,370 1.003,370 - Ryan Rood 1,053,924 88,598 965,326 FM 2499 Right of Way Acquisition 20.000 11,559 8,441 MayrASridga 8,218 392 7,826 Mayh81 at Cooper Creek Bridge 20,000 2,696 17.304 W41owerest Loop Drainage 50,000 1,445 48,SSS Sidewalks 750,000 4,099 745,901 , College and Second Streets 134,750 99.070 35,680 Shady Oaks and Woodrow Lone 70.000 48,899 21,101 1 OrICOM 113,000 69,436 43,564 r[I r Willawwood &4asoy,5idowsk 112,000 51,621 60,479 [ 3 II Carroll and Parkway Turn 35,000 14,072 20128 [ M,ngoJRuddefl(No"milh ~m 15,000 11,532 3,468 Redo Curb Medians to OTC 15,000 253 14,747 1 35 at McCormick Traffic Signal 55.200 22,829 32,371 377 at Collins Signal Corridor 18,000 617 17,388 Cr McKinney at Mayhill Traffic Signal 34,500 6,749 27,751 V.S. 377 at 1-351mprovemenis 25,300 196 25,104 Lillian Males Sidewalk Connection 23,768 74,915 8,853 CMAO - Eagle Drive Turn Lone 22,277 8,477 13.800 Drainage Study • Pecan Creek 48,900 48,398 592 l Audio Lane Asphah Overlay 21,500 21,500 Lommore Asphalt Overlay 2S,S00 13,002 12,498 Old North 45,000 S49 44,451 Coronado, Massey, Mingo, Collier 117,000 62,222 54,778 r Loop 288 • R,ght-of Way 27,013 26,965 49 Watmort Right of Way 19,889 16,490 3,399 380)6ell Turn Signal 20,000, 586 19,414 Lillian MilerlSoutlindge Village 15,000 13,377 1,623 11 • i Turn Lanes Engineernq Fees 10,000 4,712 5,288 f Loop 288 - R,Qht-of Way 14,491 14,490 1 DMC Parking Lot 48,840 36,875 11,965 Alice at Panhandle 100,000 95,449 4,552 Kerley Street Culvert 330,000 13,851 316,149 Pecan Creek O.emege 260,000 40,736 219,264 t Mrsc Drainage Caput Improvements 69,000 12.510 55.490 College and Vine Drainage 20000 13,118 6,882 Traffic Signals 199,000 12,034 186.966 11_ • Loop 288 Bypass Right-ri 32S,000 709 324,291 l l Nottingham IMingo to Audra) 260,000 2,629 257,371 , • Street Construction 150,000 36,908 113.092 Mingo Road Repawng,Shoulder 140,000 166 139,834 Flow Area Repaving and Concrete 260,000 92,976 167,024 Southeast Sidewalks 55-000 17,674 37 316 Total 416.393.152 1! 0.106.344 16 286 806 32 ! ti _.Y..__,. ......y7eR.e,. - • r • i r Notes, City of Denton (Continued) f September 30, 1996 `j I Enterprise and Internal Service Funds. r The City conducted a comprehensive inventory and analysis of historical cost of fixed assets in fiscal year 1993. As a result, the City corrected the fixed assets cost and accumulated depreciation balances of the Enterprise Funds in fiscal year 1995 through a prior period adjustment to beginning retained earnings. The cumulative effect of the prior period adjustment was to increase beginning retained earnings and fixed assets of the Enterprise Funds in fiscal year 1995 by $1,497,106. Fixed assets of these funds are as follows: September 30 1996 1995 Utility System- Land and land rights S 1,856,227 $ 1,846,562 Water storage rights 67,715,402 67,433,042 I Electric plant and equipment 103,603,321 99,544,849 Water plant and equipment 46,723,364 45,468,078 Wastewater plant and equipment 52,729,722 51,164,232 272,628,036 265,456,763 Less - Allowance for depreciation (106,017,909) 0001116,190) 166, 610,12 7 165, 340, 5 73 Construction in progress 4,749,191 3,495,972 I Total fixed assets • Utility System $171,359,318 $168,836,545 Solid Waste- , Land and land rights $ 6,596,378 $ 4,643,695 Vehicles and equipment 1,648,331 1,411,776 8,244,709 6,055,471 Less • Allowance for depreciation (2,438,931) 12,300,4121 5,805,778 3,755,059 • Construction in progress 137,058 Total fixed assets - Solid Waste $ 5,942,836 $ 3,755,059 Internal Service- , Land and land rights S 183,806 $ 1 e3,806 Vehicles and other assets 17,497,386 16,073,914 • • 17,681,192 16,257,720 { Less - Allowance for depreciation 111,550,877) (11,424,554) Total fixed assets - Internal Service $ 6,130,315 $ 4,833,166 -33- - t Notes, City of Denton (Continued) C~ September 30, 1996 1 14i LONG-TERM LIABILITIES Long-term liabilities transactions for the year ended September 30, 1996, are summarized as follows: i Balance at Retired Balance at October 1, and September 30, 1995 Issued Transferred 1996 `~II Censrallong-Term [labAities 1 General Obligation bonds 0 22,543,453 0 2,515,000 0 2,737,630 11 22,320,823 Certificates of Obligation 4,689,668 190,000 811,888 4,067,780 Obligations under capital leases 60,450 51,915 8,535 Accumulated unpaid compensated ~t absences 3,387,659 270,750 3,658,409 Totalgenerallong-term iabd3Yies 30,681,230 2,975,750 3,601,433 30,055,547 Proprle rar y Fund Types f Utility System revenue bonds 54,395,000 39,260,000 4,385,000 89,270,000 i 1 General Obligation: General Obligation Bonds 104,045 15,390 88,655 General Obligation Bonds: (pledged by Solid Waste revenues! 584,233 81,981 502,252 Certificates of Obligation 5,815,332 5,000,000 608,112 10,207,220 Obligations under capital leases 337,680 2,480 228,711 111,449 Accumulated unpaid compensated absences 702,259 65,791 7E8,050 Note payable 64,896,392 282,360 33,905,093 31,273,659 Total proprlefary fund types 126,834,941 44,610,631 39,224,:87 132,221,285 • Total long-term liabilities $157,516,171 547,586,381 042,825,720 0162,276,892 /j 34 t, • • Notes, City of Denton (Continued) September 30, 1996 1 General Bonded Debi General bonded debt at September 30, 1996, is comprised of the following: Amount Outstanding at Interest Rate Final Original Amount September 30, Bonded Debt 1%) Issue Date Maturity of Issue 1996 General Obligation Refunding 7.70 to 8.00 1985 2004 $5,171,730 $7,436,730 General Obligation 6.40 to 9.40 1987 2007 1,225,000 525,000 General Obligation 6.50 to 9.50 1988 1998 1,075,000 375,000 General Obligation 9,00 to 9.50 1989 1999 1,265,000 565,000 General Obligation 5.55 to 8.50 1992 2012 2,630,000 2,390,000 General Obligation 4.65 to 7.50 1993 2013 2,975,000 2,550,000 General Obligation Refunding 3.00 to 5.40 1993 2009 13,315,000 10,945,000 ' General Obligation Refunding 5.75 to 8.50 1995 2015 1,610,000 1,610,000 General Obligation 5.40 to 7.40 1996 2016 2,515,000 2,515,000 Total General Obligation Bonds 31,781,730 22,911,730 r Certificates of Obligation 6.0010900 1987 2007 150,000 50,000 Q Certificates of Oblioation 6.00 to 8.00 1987 1997 11100,000 125,000 ` Certificates of Obligation 6.60 to 9.60 1989 1999 1,155,000 150,000 t Certificates of Obligation 6.00 to 9.00 1989 1999 11550,000 525,000 I Certificates of Obligation 4.40 to 7.40 1992 2007 1,325,000 545,000 Certificates of Obfgation 4.20 to 5.30 1993 2003 1,450,000 600,000 Certificates of Obligation 4.40 to 7.40 1994 2014 2,705,000 2,430,000 Certificates of Obligation 4.30 to 7.30 1994 2005 3,220,000 2,660,000 Certificates of Obllgat on 5.25 to 8.25 1995 2015 2,000,000 2,000,000 Certificates of Obligation 5.00 to 7,00 1996 2016 5,190,000 5,190,000 Total Other General Bonded Debt 19,845,000 14,275,000 Total Generai Bonded Debt 651,626,730 $37,186,730 t Proceeds of general bonded debt are restricted to tf,-) uses for which they were approved in the bond elections. The City Charter expressly prohibits the use of bond proceeds to fund operating expenses, The general obligations are collateralized by the full faith and credit of the City and, primarily, payable from property taxes. In prior years, the City defeased general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds.. Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the • City's financial statements. On September 30, 1996. $6,875,000 of bonds considered defeased are still outstanding. -35• • Notes, City of Denton (Continued) September 30, 1996 1 Revenue Bonds- Revenue bond debt at September 30, 1996, is comprised of the following issues: Amount Outstanding at interest Rate Final Original Amount September 30, Revenue Bonds M Issue Date Maturity of Issue 1996 1 Utility System Refunding 5.00 to 7.00 1987 2009 $ 17,485,000 $ 1,230,000 Utility System 3.75 to 9.75 1988 2008 3,500,000 525,000 l Utility system 6.00 to 9:00 1989 2009 20,000,000 8,400,000; Utility System 5.80 to 8.75 1992 2014 4,500,000 4,385,000 1 Utility System 5.00 to 7.50 1993 2013 6,575,000 5,365,000 Utility System Refunding 2.50 to 5.40 1993 2009 27,085,000 25,455,000 Utility System Refunding 3.55 to 6.75 1993 2007 6,045,000 4,650,000+ Utility System Refunding 5.30 to 7.80 1996 2024 36,510,000 36,510,000 utility System 5.30 to 7.40 1996 2016 2,750,000 2,750,000 it $124,450,000 889,270,000 1 The City has the option to retire at par ali or a portion of the bonds prior to maturity on or after f+ December 1, 1993. t) The revenue bonds are collateralized by the revenue of the Utility System and the various special funds established by the bond ordinance. The ordinance provides that the revenue of the j System is to be used first to pay operating and maintenance expenses of the System and second to establish and maintain the revenue bond funds. Any remaining revenues may then be used for any lawful purpose. The ordinance also contains provisions which, among other items, restrict the # j issuance of additional revenue bonds unless the special funds noted above contain the required amounts and certain financial ratios are met. The City is in compliance with all significant requirements. Below is a summary of the various restricted asset accounts required by the bond ordinance as of September 30, 1996: J Interest and Sinking Fund $10,660,020 / Reserve Fund 5,187,316 r Emergency Fund 250,000 Extension and Improvement Fund 4.136.174 t 1220, 233.510 -36- Ij 0 1 i` ' It I- IN I I • Notes, City of Otsnton (Continued) September 30, 1996 ' Assets in these accounts consists of cash and U.S. government securities. Related liabilities and retained earnings are as follows: Payable from restricted assets- Accrued interest $ 1,888,852 Revenue bonds payable, current 5,380,000 Retained earnings reserved for bond retirement 12,802,157 220.071..= In addition, the City has established a reserve fund to pay for General Obligation bonds pledged by Solid Waste revenues of $307,100. In prior years, the City defeased revenue bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the City's financial statements. On September 30, 1996, $32,865,000 of bonds considered defeased are still outstanding. Note Payable- in 1980 the City and the City of Dallas contracted with the Corp of Engineers for the construction and deveiopn•ent of Ray Roberts Reservoir in Denton County. In contracts with the Corp of Engineers, the City will ).1ty for twenty-six (26%) per cent of the estimated water storage rights of the reservoir. Water obtained from the Reservoir will be pro rata on the basis of each city's I proportional share of total construction cost. The closing of the dam was completed in 1987 with water being available from the Reservoir in 1989. The City's estimated total cost of water storage rights at September 30, 1996, was $67,465,338. Of this amount, the future use currently estimated at $28,943,682 at September 30, 1996 is financed by the Corp of Engineers. In May 1996, the City issued $36,510,000 in Utility System Refunding Bonds, with an interest rate of 6.0811 to advance refund $36,031,777 of outstanding debt related to present demand of water storage rights and the recreation facility originally financed through the Corp. Net proceeds of $34,839,670 (after the payment of 51,670,330 in underwriting fees, insurance and other issuance costs) were paid to the Corp of Engineers to satisfy the outstanding present demand and recreation debt. The City completed the advance refunding to reduce its total debt service payments over the l next 29 years by $42,188,181 and to obtain an economic gain (difference between the present values r of the old and new debt service payments) of $7,256,115. 1 No principal or interest payment with respe a to this storage for future water supply is required • to be made during the first ten (10) years following the date the project is operational for water supply purposes unless all or a portion of such storage is used for purposes of withdrawal of water from or transfer of water into Ray Roberts Reservoir during this period. When any portion of the storage for future water supply is used, the amount of the project investment cost allocated thereto, plus interest applicable to such portion as provided, will be due and payable on the date of the first use of such portion. The said amount due shall be paid within the life of the project and not to exceed fifty (50) consecutive annual payments. • The City is also responsible for twenty-six (26%) per cent of the cost of any major capital • O replacement facilities required. The City will also be required to pay the Corp twenty-six 126%) per cent of the annual experienced operation and maintenance costs for specific water supply facilities at the Reservoir. Aggregate maturities of the long-term debt (principal and interest) for the years subsequent to September 30, 1996, are as follows: -37• I • r • t~ Notes, City of Denton (Continued) P.I September 30, 1996 1 Bands S General I F,scal Year Obtigations Revenue Notes Payable Capital Leases Total 1997 S 6,519,657 S 10,660,014 S 34,811 S 97,735 s 17,312,417 1998 5,916,490 10,098,327 2.030.253 15,299 18,061,369 1999 5,295,166 8,962,028 2,008,308 15,499 16,281,001 2000 4,904,639 8,388,346 2,008,308 15,301,293 2001 4,534,390 7,944,181 2,008,308 14,486,879 1 2002.2006 15,816,984 36,260,198 10,041,540 62,140,722 a 20072011 8,007,265 28,279.033 10,041,540 46,327,838 1 i 2012.2016 4,574,519 16,600,707 10,041,540 31,216,766 ~j 2017-2021 12,997,119 10,041,540 23,038,659 2022.2048 10,222,200 54,492,260 - 64,714,460 Total principal 55,571,310 150,432,153 102,748,408 129.533 308,881,404 I and interest Less apphcaoie nte+est (18,384,5801 161,162,1531 (71,474,749) 19,549) 1151,031,0311 Total prlncgpal S 37,186,730 S 89,270,000 $ 31,273,659 $119,984 S 157,850,373 { J (1, Bonds Authorized and Unissued- General obligations bonds authorized but unissued as of September 30, 1996, amounted to $27,357,000. When issued, the proceeds will be allocated to thu applicable Capital Projects Funds. (5) LEASES Leases payable represent the remaining principal amounts payable under lease purchase 1 agreements for the acquisition of vehicles, copier equipment, computer hardware and other equipment. These leases are recorded as capital leases. The vehicles, copier equipment and the { landfill vehicles are recorded in the Proprietary Fund Types, and the computer hardware and other • equipment are recorded in the General Fixed Assets and General Long-Term Liabilities Account Groups. ! Aerraining requirements, including interest, under these leases are as follows: I L• _ ~i 3e 1 ;,alll go - M e r 0 Notes, City of Denton (Continued) f September 30, 1996 General Proprietary Long-Term Year Fund Types Liabilities 1997 $ 88,986 S 8,749 1998 16,299 1999 15,499 2000 - 120,784 8,749 Less- Applicable Interest 19,335) (214) Net Present Value S 111,449 $ 8,535 I (6) PENSION PLANS Texas Municipal Retirement Plan: ! Plan Description- The city provides pension benefits for all of its full-time employees (exceot firefighters) through a nontraditional, joint contributory, defined contribution plan in the state-wide Texas Municipal Retirement System {TMRS), one of over 670 administered by TMRS, an agent multiple-employer public employee retirement system. It is the opinion of the TMRS management that the plans in TMRS are I substantially defined contribution plans, but they have elected to provide additional voluntary disclosure to help foster a better understanding of some of the nontraditional characteristics of the plan. Benefits depend upon the sum of the employee's contributions to the plan, with interest, and the city-financed monetary credits, with interest. At the date the plan began, tle city granted 4 monetary credits for service rendered before the plan began of a theoretical amount equal to two Ik times what would have been contributed by the employee, with interest, prior to establishment of the plan. Monetary credits for service since the plan began are a percent (200%) of the employee's accumulated contributions. In addition, the city can grant as often as annually another type of monetary credit referred to as an updated service credit which is a theoretical amount which, when added to the employee's accumulated contributions and the monetary credits for service since the plan began, would be the total monetary credits and employee contributions accumulated with interest if ' the current employee contribution rate and city 'matching percent had atv,ays been in existence and O of the employee's salary had always been the average of his salary in the last three years that are one year before the effective date. At retirement, the benefit is calculated as if the sum,.+•he employee's accumulated contributions with interest and the employer financed monetary creo ,s with interest were used to purchase an annuity. ' Members ran retire at ages 60 and above with ten or more years of service or with 25 years of service regardless of age. The plan also provides death and disability benefits. A member is vested after ten years, but he must leave his accumulated contributions in the plan. If a member withdraws O his own money, he is not entitled to the employer-financed monetary credits, even if he was vested. O O The plan provisions are adopted by the governing body of the city, within the options available in the state statutes governing TMRS and within the actuarial constraints also in the statutes. f I •39• • • 0 Notes, City of Denton (Continued) September 30, 1996 [ Il I~ Contributions- The contribution rate for the employees is 6%, and the city matching percent is currently f 200%, both as adopted by the governing body of the city. Under the state law governing TMRS, the city contribution rate is annually determined by the actuary. This rate consists of the normal cost contribution rate and the prior service contribution rate, both of which are calculated to be a level percent of payroll from year to year. The normal cost contribution rate finances the currently accruing monetary credits due to the city matching percent, which are the obligation of the city as of an employee's retirement date, not at the time the employee's contributions are made. The normal cost contribution rate is the actuarially determined percent of payroll necessary to satisfy the obligation of the city to each employee at the time his retirement becomes effective. The prior service contribution rate amortizes the unfunded actuarial liability over the remainder of the plan's 25-year amortization period. When the city periodically adopts updated service credits and increases in annuities in eff^ct, the increased unfunded actuarial liability is to be amortized over a new 25-year period. Currently, the unfunded actuarial liability is being amortized over the 25-year period which began January, 1996. The unit credit actuarial cost method is used for determining the city contribution rate. Contributions i are made monthly by both the employees and the city. Since the city needs to know its contribution rate in advance to budget for it, there is a one-year lag between the actuarial valuation that is the basis for the rate and the calendar year when the rate goes into effect. The city's total payroll in fiscal year 1996 was $30,454,079 and the city's contributions were based on a payroll of 526,353,340. Both the city and the covered employees made the required actuarially determined contributions, amounting to $3,998,615 47.99% of covered payroll for the months in 1995, 6.3696 or $382,315 city-contributed normal cost plus employee-contributed normal cost of $352,295 and 1.63% or $97,981 to amortize the unfunded actuarial liability, and 9.26% for the months in calendar year 1996, 7.14% or $1,493.519 city-contributed normal cost plus employee- contributed normal cost of $1,228,905 and 2.19% or ;443,600 to amortize the unfunded actuarial liability). The city adopted changes in ince the previous actuarial valuation, which had she effect of increasing the city's c for 1986 by 0.0644 of payroll. There were no retated-party transactions. ~f Funding Status and Progress- Even though the substance of the city's plan is not to provide a defined benefit in some form, some additional voluntary disclosure is appropriate due to the nontraditional nature of the defined contribution plan which had an initial unfunded pension benefit obligation due to the monetary credits granted by the city for services rendered before the plan began and which can have additions to the 1 unfurded pension benefit obligation through the periodic adoption of increases in benefit credits and bene its. Statement No. 5 of the Governmental Accounting Standards Board (GASS 5) defines • pencan benefit obligation as a standardized disclosure measure of the actuarial present value of pennon benefits, adjusted for the effects of projected salary increases, estimated to be payable in the future as a result of employee service to date. The measure is intended to help users assess the [ ! funding status of public employee pension plans, assess progress made in accumulating sufficient { assets to pay benefits when due, and make comparisons among public imployee pension plans. The pension benefit obligation shown below is similar in nature to the standardized disclosure • measure required by GASS 5 for defined benefit plans except that there is no need to project salary j increases since the benefit credits earned for service to date are not dependent upon future salaries. • ip The calculations were made as part of the annual actuarial valuation as of December 31, 1995. Because of the money-purchase nature of the plan, the interest rate assumption, currently 8.0% per year, does not have as much impact on the results as it does for a defined benefit plan. Market value of assets is not determined for each city s plan, but the oarket value of assets for TMRS as a whole was 114.2% of book value as of December 31, 1995. .40. I1 r.rw.nrow Ww'~+'t1•fl•tf~~ w,r,.~w+~.`rr.r..a..... Notes, City of Denton (Continued) September 30, 1996 Pension Benefit Obligation Annuitants currently receiving benefits S 3,260,676 Terminated employees 3,449,665 Current employees Accumulated employee contributions including allocated invested earnings 15,229,603 Employer-financed vested 22,943,304 Employ er•financed nortvested 4,277,071 I Total 49,160,619 f Net Assets Available for Benefits, at Book Value 37,689,286 Unfunded Panslon Benefit ObrgaGon 511,471,233 The book value of assets is amortized cost for bonds and original cost for short-terra securities and stocks. The actuarial assumptions used to coml the actuarially determined city contribution rate are the same as those used to compute the pension benefit obligation. The numbers above reflect the adoption of changes in the plan since the previous actuarial valuation, which had the effect of increasing the pension benefit obligation by 421;,264. Trend Information - Nine If ear Historical Trend Information Year December 31, December 31, December 31, December 31, December 31, Ended 1987 1988 1989 1990 IS91 Net Assets Available for i Benefits $11,643,689 $14,146,080 $16,633,114 $19,345,511 $21,968,636 Pension Benefit Obligation $13,665,302 $16,639,047 $19,319,318 $22,536,840 $24,945,432 Percentage Funded 85.2% 85.0% 86.1% 85.8% 88.1% Unfunded Pension Benefit Obligation 3 2,021,613 $ 2,492,967 S 2,686,204 $ 3,191,329 $ 2.976,796 Annual Covered Payroll $16,535,036 518,148,919 $18,947,816 $21,120,188 $21,443,097 Unfunded Pension Benefit 11 Obligation as a Percentage of Covered Payroll 12.2% . 117% 14.2% 15.1% 13.9% • City Contribution to TMRS S 825.976 $ 968,006 $ 1,020,272 S 1,078,635 S 1,156,035 Average City Rate 5.0% 5.3% 5.4% 5.1% 6.4% I ~ -41- oil 1 11 • • :.r Notes, City of Denton (Continued) ! September 30, 1996 Nine Year Nistoricol Trend Intormetion (continuedl Year December 31, December 31, December 31, December 31, Ended 1992 1993 1994 1j95 Net Assets Available for r Benefits $25,071,409 $28,858.450 $32,534,014 $37,669,286 Pension Benefit Obligation $28,911,481 637,299,424 $42,764,413 $49,160,519 [1 Percentage Funded 86.7% 77.4% 76.08% 76.67% tl Unfunded Pension Benefit Obligation $ 3,840,072 $8,440,974 $10,230,399 $11,471,233 1 Annual Covered Payroll $21,896,750 $23,501,218 $23,820,706 $26,353,340 t Unfunded Pension Benefit Obligation as a Percentage of Covered Payroll 171% 35.9% 42.9% 43,5% r City Contribution to TMRS 6 1,146,207 $1,611,637 $1,902,083 $2,417,415 Average City Rate 5.2% 6.9% 8.0% 9.2% l_ Trend information prior to 1987 is not available. Ten year trend information will not be shown separately until one year of additional data have been accumulated. 1 Fireman's Relief and Retirement Plan; t Tike City provides pension benefits for all Civil Service employees of the Fire Department through a defined contribution plan. The Board of Trustees of the Denton Fireman's Relief and Retirement Fund is the administrator for the pension plan. The Pension plan is not considered a part of the City of Denton entity. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. Fire employees are required to become a member as a condition of employment. An employee becomes fully vested after 20 years of credited service. City contributions for, and interest forfeited by, employees who leave employment before vesting are [ + redistributed to plan participants. aI the City's total Fire Department portion of payroll in fiscal year 1996 was $4,205,937. The City made the required contribution (9.0% for 1995 and 1996) amounting to $377,769. The covered employees made the required contribution I10% for 1995 and 1996) amounting to $420,594. Both sources contributed $798,363 in total. tt (7) DEFERRED COMPENSATION PLAN The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all permanent City employees, permits them to defer, until future years, up to 25% of annual gross earnings not to exceed $7,500. The deferred 1 compensation is not available to empluyees until termination, retirement, death, or unforeseeable • emergency. 4 O All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of benefits under the plan), subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City 42 s • r • Notes, City of Denton (Continued) September 30, 1996 I r )II ' in an amount equal to the fair market value of the deferred account for each participant. Investments (primarily cash and cash equivalents) in the deferred compensation plan are recorded at market value. It is the opinion of the City's legal counsel that the City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The management of the City believes that it is unlikely that it will use the assets to satisfy the claims of general creditors at this time. (8) SELF-INSURANCE PLAN f The City has established a self-insurance plan for workers' compensation benefits and general liability. Accrued claims payable Include provisions for claims reported and claims incurred but not reported. The provisions for reported claims is determined by estimating the amount which will ultimately be paid each claimant. The provision for claims incurred but not yet reported is estimated based on the City's experience. The costs associated with the self-insurance plan are reported as interfund transactions. Accordingly, they are treated as operating revenues of the Internal Service Risk Retention Fund and operating expenditures (expenses) of the other funds. Workers' Compensation and General Liability Insurance 1 It is the policy of the City of Denton not to purchase commercial insurance for Workers' Compensatirn claims. Commercial liability insurance coverage is purchased for public officials, airport, emergency medical services, and after-school action site programs at Denia and Martin Luther King, Jr. Recreation Centers. The City reports liabilities when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported. Because actual claims liabilities depend on such complex factors as inCation, changes in legal dsctrines and damage awards, the process used in computing claims liability does not necessarily result in an exact amount. Claims liabilities are reevaluated periodically to take into consideration settlement of claims, new claims and other factors. As of September 30, 1996, the estimated value of these liabilities was $2,525,492, Changes in balances of claims liabilities during fiscal year 1996 were as follows: y ` I 0 • I •e3. ti • • t Notes, City of Denton SContinued) j September 30, 1996 (1 j Claims Liability Claims and Claims Liability Beginning of Change in Claims End of Fiscal Year Estimates Payments Fiscal Year Workers' Compensation 1996 $373,522 $ 239,620 $318,750 $ 294,392 (1 1995 337,000 333,180 296,658 373,522 General Liability t 1996 $2,912,490 $ (281,620) $410,870 $2,220,000 ! 1995 829,000 2,345,111 261,621 2,912,490 [1 J On September 30, 1996, the City of Denton held $3,143,531 in the Risk Retention Fund for payment of claims. There were no significant reductions in insurance coverage from coverage in the prior year and the amount of settlements did not exceed insurance Coverage in the current year or in any of the past three fiscal years. (9) COMMITMENTS AND CONTINGENCIES Agreement with TMPA• In 1976, the City, along with the cities of Bryan, Greenville and Garland, Texas (the "Cities') entered into a Power Sales Contract with the Texas Municipal Power Agency (TMPA), TMPA was created through concurrent ordinances of the Cities and is governed by a Board of Directors consisting t of eight members, two appointed by the governing body of each city. Under the terms of the agreement, TMPA agreed to construct or acquire electric generating plants to supply energy and power to the Cities for a period of not less than 35 years. The Cities in turn agreed to purchase all future power and energy requirements in excess of the amounts generated by their systems from TMPA at prices intended to cover operating costs and retirement of debt. In the event that revenues are insufficient to cover all costs and retire the outstanding debt, each of the Cities has guaranteed 1 a portion of the unpaid debt based, generally, upon its pro rata share o' the energy delivered to I consumers in the prior operating year. As of September 30, 1996, total TMPA debt outstanding was approximately $1,301,205,000 and the City's percentage is approximately 21 In the opinion of management, the possibility of a material payment under this guarantee is remote in that TMPA is generating operating profits and assets exceed liabilities. { 1 TMPA operates a 452 megawatt lignite fueled generating plant. In 1996, TMPA switched to an external source of lignite to reduce costs. Should TMPA be dissolved, each City would be entitled to an undivided interest in the property. ~J • iP 44 j o .alw 'I I • Notes, City of Denton (Continued) September 30, 1996 Selected financial statement information of TMPA is as follows: Seotember 30. (Unaudited) 1996 1995 f- (000's) (000's) Operating Revenues $ 169,655 S 174,208 Operating Expenses 106,423 295,289 Operating Income (Loss) 63,232 1121,081.1 ^ Other Nonoperating (Uses) (82,424) (80,924) Current Assets 58,540 73,643 I. Total Assets 1,522,731 1,541,706 i Long-Term Debt 1,301,205 1,321,025 J f Total Liabilities 1,485,896 1,503,074 Total Equity 36,835 38,632 Agreement with the City of Defies. During 1985, the City entered into an agreement with the City of Dallas which provides for J the purchase of a minimum of 500,000 gallons/day of untreated water from the City of Dallas from Lake Lewisville. This contract will be effective for 30 years. Litigation- Various claims and lawsuit, are pending against the City. In the opinion of City management and legal counsel, the potential fosses after insurance coverage on all claims will not have a material effect on the City's financial position as of September 30, 1996. 1 •45. r Notes, City of Denton (Continued) September 30, 1996 r~ 70! SEGMENT INFORMATION FOR ENTERPRISE FUNDS Segment information for the year ended September 30, 1996, was as follows: !(f` Utitity Systern Solid Waste Fund Total [1 Operating Revenues S 95,370,624 $6,441,090 $101,811,914 f1 l~ Depreciation 6,679,138 138,518 6,817,656 l Operating Income 14,368,693 1,093,865 15,462,758 Net Income 11,677,408 957,608 12,635,016 Current Capital Contributions: (1 In aid of construction 927,219 927,219 I1 Accounts Receivable: Accounts receivable, gross 12,843,240 12,843,240 Atlowance for uncollectibles 6,766,256 6,766,256 Accounts receivable, net 6076,984 6,076,984 Property, Plant and Equipment Additions 7,171,273 2,169,238 9,360,511 F] Total Assets 288,098,997 14,203,232 302,302,229 ll~~ Net Working Capital 10,279,623 1,288,119 11,567,742 i~ Bonds Payable 89,270,001 8,984,553 98,254,554 ~J Notes Payable 31,219,934 53,725 31,273,659 t, . Total Equity 149,201,506 958,701 149,160,208 rr~f11 I1 • 46 •J dlr. • 1 ~ • ..y. Notes, City of Denton (Continued) September 30, 1996 (1 1) INDIVIDUAL FUND DISCLOSURES Individual fund disclosures as of and for the year ended September 30, 1996, are as follows: Interfund Receivables and Payables: f Interlund Interfund Advances to Advances from Fund Receivables Payables Other Funds Other Funds General Fund $ 495,183 1 4,867,411 s S Special Revenue Funds: Community Development Elock Grant Recreation 33 485 Criminal Justice 443 4,815 Library 13,242 2,727 Other 96,556 34,290 Debt Service 4,581,882 3,721,196 Capital Project Funds: Airport Improvement 42,579 89,477 General Projects 446,698 5.789 Street Improvement 1,088,484 229,874 Construction Projects 2,045,172 21,967 Other Capital Projects 472,848 - - Enterprise Funds Utility System 9,063,110 8,368,227 4,831,784 4,000.000 Solid Waste 34,372 831,784 Internal Service Funds: Warehouse 6,999 Fleet Services Motor Pool 1,937 _ Risk Retention 2,706,768 3,749,895 Trust and Agency Funds: Expendable Trust 6 - Agency • Payroll - 142 Total $21,096,301 $21,096,301 $4,831,784 14,831,784 ~ I ' •47. I ~4 t i • I Notes, City of Denton (Continued) September 30, 1996 (121 CONTRIBUTED CAPITAL During fiscal year 1995.1996, contributed capital changed by the following amounts: Enterpdso Funds internal Service Funds 111 utility System Total Motor Pool Total Beginning balance - October 1 115,073,087 $ 852,337 t $52,331 Contributions from customers 261,153 473,603 473,603 Contributions from developers 666,065 Depreciation _ 11,791,193) 1313,7421 1313,7421 I, 414,209,112 $1,012,198 $1,012,198 11 (1) The Working Capital Fund had no activity in contributed capital for the year ended September 30, 1996. 111111 (13) CLOSURE AND POSTCLOSURE CARE COST State and federal laws and regulations require the City to place a final cover on its Mayhill f` Road landfill site upon closure and to perform certain maintenance and monitoring functions at the site for thirty years after closure. Altho rgh closure and postclosure care costs will be paid only upon anticipated closure, the City reports a portion of these costs as an operating expense in each period based on landfill capacity used as of each balance sheet date. The 52,900,561 reported as landfill E a closure and postclosvre care liability at September 30, 1996, represents the cumulative amount 1 incurred to date based on the use of 92.4% of the estimated capacity of the landfill. The City will recognize the remaining estimated cost of closure and postclosure care of $237,269 as the remaining estimated capacity is filled. These amounts are based on what it would cost to perform aii closure and postclosure care in 1996. The City expects to close the lanuiill in the year 1997. Actual cost may fluctuate due to inflation, changes in technology, or changes in regulations. IJ ' I.F i 1 48 t e • h APPENDIX C I FORM OF BOND COUNSEL'S OPINION S 11MM.twwMwM1__...... _ E ..}i„.~~i ~ e?~~ "'lF•r' ,fix ,.1 'x°b.`i!"•'un ~~'~t ~1 ~J}M ~1~t1j~ ~ Lrr,.~ rsr=.i 4 3^ . x a • .r i t !1 f . r THIS PAIGE LEFT BLANK INTENTIONALLY LLLff Y it f i • ~1 A O ff fl i1 • • I uw ornC[ S MCCALL. PARKHURST $ HORTON L.L. P, Caf AVE. ;IC, AN( EN7EP 717 NCRT,1 MA.RACCD 1225 ONE RI`ERw ALX PLACE AUS, IN. 7EIAS 7870,32411 NINTH FLCGR SAN ANTONIO, TEXAS 78205.3503 z.-e ~ece DALLAS TEXAS 75201-6587 +...a.. c"e e'0 F'525so f"c a:"na PLO E.'i: La" .:.a..r ...`K e'. •[,a=-c,a 0'11519200 r..,. L[ iaI'll W50 CITY OF DENTON GENERAL OBLIGATION BOND, SERIES 1997, DATED APRIL 1, 1997, IN THE FRINCIPAL AMOUNT OF $4,700,000 AS BOND COUNSEL for the City of Denton, in Denton County, Texas (the "Issuer"), see have examined into the legality and validity of the bond issue initially evidenced by the bond described above (the "Initial Bond"), which Initial Bond originally has been issued and delivered as a single fully registered bond, without interest coupons, with the principal amount lhercof payable in installments due on February IS in each of the )cars 1998 through 2017, and with the unpaid balance of each installment of principal, respectively, bearing interest from the date of the Initial Bond to the scheduled due date ("maturity"), or to the date of pre- payment or ro&mption, of cash installment of principal, at the rates per amlum for each maturity set forth in the Initial Bad with interest, calculated on the basis of a 360-day year composed of niche 30-day months, payable on February 15, 1998, and semiannually on each August 15 and February 15 thereafter, and with the then out- standing principal of the Initial Bond being subject to prepayment or rWemplion, as a whole, or in part, prior to scheduled maturity, at the option of the Issuer, on Februay 15, 2007, or on any date whatsoever thereafter, in accordance with the terms and conditions slated on the face of the Initial Bond. The Initial Bond may, at the I request of the registered owner, be transferred and converted into, andlor exchanged for, fully registered bonds, without interest coupons, in the deramination of 55,000 or any integral multiple of 55,000, and such bonds again may be transferred and/or exchanged, all subject to the conditions stated and in the manner provided in the Ordinance authorising the issuance of the Initial Bond (the "Bond Ordinance"), with any such bonds which are registered, authenticated, and delivered in accordance with the Bond Ordinance being hereinafter called "Dcfin- itivc Bonds". WE HAVE EXAMINED the applicable and portinent provisions of the Constitution and laws of the state of Texas, and have examined and relied upon a transcript ofcertified proce dings of the Issuer and other pertinent instruments famished b5 the Issuer rciating to the authorization of the Initial Bond and Definitive Bonds and the • issuance and delivery of the Initial Bond, including the executed Initial Bond and a printed specimen of the form for Afrnutive Bands u t ally made available by the Issuer for completion and exchange for the Initial Bond; and svc have examined and relied upon the Issuer's Federal Tax Certificate, of even date herewith. BASED ON SAID EXAMINATION, IT IS OUR OPINION that the Initial Bond and Definitive Bonds have been duly authorized, and the Initial Bond has been duly issued and delivered, all in accordance with law, and that, except as may be limited by laws applicable to the Issuer relating to bankruptcy, reorganization, and O other similar matters affecting creditors' rights, the Initial Bond constitutes and the Definitive Bonds will ~e constitute valid and legally binding obligations of the Issuer; and that ad vaioretn taxes sufficient to provide for O the pz<mmt of the inicrest on and principal of the Initial Bond and D66tive Bonds have beer, levied and pledged for such purpose, within the limit prescribed by law. • • r I t~ t~ t~ l~ t E~ t~ THIS PAGE LEFT BLANK INTENTIONALLY 1 f e • t i ~TFMMfwI` W ry#M~# a ♦i mot. 1~°b f L 1 rip • • I IN OUR OpIN10N, exalt as discrsscd below, the interest on the Initial Bond and the Deftni 've Bonds (collectively, the "Bonds") is excludable from the gross income of the owners for federal inconx tax purposes under the statutes, regulations, published rulings, and court decisions existing on the date of this opinion. We are further of the opinion that the Bonds are not "private activity bonds" and that, accordingly, iterest on the Bonds will not be included as an individual or corporate alternative minmum tax preference item under section 57(ax5) of the Internal Revenue Code of 1986 (the "Code"). In expressing the aforementioned opinions, we have relfod on, and assume oompliarxr by the Issuer with, contain representations and covenants regarding the use and investment of the proceeds of the Initial Bond. We call )bur attention to the fact that failure by the Issuer to comply with such representations and covenants may cause the interest on the Bonds to become includable in gross income retroactively to the date of issuarwc of the Bonds. WE CALL YOUR ATTENTION TO THE FACT that the interest on Lx-exempt obligations, such as the Mal Bond and the Definitive Bonds, is (a) included in a corporation's alternative minimum taxable income for purposes of dacrmining the alternative minimum tax and the environmental tax imposed on corporations by sekiions 55 and 59A of the Code, (b) subject to the branch profits tax enposed on foreign corporations by section 884 of the Code, and (c) included in the passive investment income of a Sub-chapter S corporation and avbject to the tax imposed by section 1375 of the Code. f EXCEPT AS STATED ABOVE, we express ro opinion as to any, fode: al, state, or local tax consequences of acquiring, carrying, owning, or disposing of the Initial Bond and the Definitive Bonds. WE HAVE ACTED AS BOND COUNSEL for the Issuer for the sole purpose of rendering an opinion with respect to the legality and validity of the bonds described above under the Constitution and laws of the State of T.%m, end with rc rpect to the exemption of the interest on such bond" from federal incone, taxes, and for no other reason or purpose. We have not been requested to investigate or vtrify, and have not investigated or veriGcd, any records, data, or other material relating to the financial conditirn or capabilities of the Issuer, and have not asaumcd any responsibility with respect thereto, We have rcliou solely on certificates executed by officials of the Issuer as to the current outstanding indebtedness and assessed valuation of taxable property of said Issuer. Respcctft..;y, r ILI • 1 2 P • • _ -r- Agenda No Agenda Item Date DATE: April 15, 1997 CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM: Kathy OUBose, Executive Director of Finance SUBJECT: GENERAL OBLIGATION BONDS, SERIES 1997 RECOMMENDATION: Staff recommends that the City Council accept the best bid received for the purchase of the 1997 General Obligation Bonds. SUMMARY: On April 15, 1997, David Medanich from First Southwest Company and L,E. I1'ed) Brizzolara, III from McCall, Parkhurst and Horton will open the bids we receive regarding the City of Denton's General Obligation Bonds, Series 1997. The process of opening sealed bids publicly and tabulating thern before the City Council is required by the City Charter. The $4,700,000 in General Obligation Bonds are being issued for three purposes (i,e., Street projects • $3,275,000; Drainage projects - $675,000; and Parks & Recreation projects - $750,000(. All the projects were previously approved in the 1996.2001 Capital Improvement Program (CIP). A specific listing of items is as follows: DIV./DEPT. DESCRIPTION PROJECTED COST Drainage Avenue "G" 200,000 Drainage Good Samaritan Village Drainage 100,000 Drainage CarrollrCrescent Culvert Imp. 250,000 Drainage Misc. Drainage Capital Imp. PH II 125,000 Par; . & Rec. Upgrade Existing Parks PH 11 350,000 Parks & Rec. Athtetic Facilities Renov. & Dev. PH 1 400,000 StreetlTrans. Southeast Denton Sidewalks PH N 60,000 Stree /Trans. Avenue "D" Modification 290,000 Street/Trans. Phase It Nottingham (Mingo to Paisley) 590,000 Street/Trans. Lp. 288 Bypass -Right-Of-Way PH 11 341,000 • StreetlTrans. FAV Drive Paving & Drain (PH I&II) 1,400,000 Street/Trans. SidewalksZkeways PH 1 142,000 Street/Trans. Street Construction PH 11 452,000 I • • ~ti • i • . .`n _ ....__.....«.e..n~w Yn oilYninfSYJ ~\Rµa w..... City Council Report General Obligation Bonds, Series 1997 Page 2 Attached is a copy of the appropriate ordinance authorizing the issuance, sale, and delivery of the City of Denton General Obligation Bonds, Series 1997. I DEPARTMENTS AND GROUPS AFFECTED: Drainage, Street/Transportation and Parks & Recreation Divisions will be affected by the approval of the ordinance. FISCAL IMPACT: The General Obligation Bonds, Series 1997 will require an annual debt service payment of approximately $412,000. Respectfully submitted: Kath u6 sf e Executive Director of Finance i Prepared by: arias L J on Director cal Operations • l AFF013CE j i 4 • • Agenda No.. 9 `0/ Agenda Item ~js oZ- Date _ -/5-97 ORDINANCE NO. 97- ORDINANCE AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF CITY OF DENTON GENERAL OBLIGATION BONDS, SERIES 1997, LEVYING THE TAX TO PAY SAME, AND APPROVING AND AUTHORIZING INSTRMEN TS AND PROCEDURES RELATING THERETO; AND PROVIDING AN EFFECTIVE DATE THE STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON WHEREAS, an election was held on December 13, 1986 at which the City Council was authorized to issue certain of the bonds hereinafter authorized; and WHEREAS, at said election the following bonds were authorized to be issued: Amount Prop. Amount Amount Being Previously Voted No. Authori Issued Issued But Unissued 1 $7,736,000 51,400,000 $5,264,000 51,012,000 2 3,466,000 0 3,466,000 0 3 185,000 0 185,000 0 4 700,000 0 700,000 0 5 5,950,000 0 4,550,000 1,400.000 6 1,000,000 0 1,000,000 0 ' 7 2,600,000 0 2,600,000 0 WHEREAS, an election was held on February 24, 1996 at which the City Councit was authorized to issue certain of the bonds hereinafter authorized; and WHEREAS, at said election the following bonds were authorized to be issued: Amount • Prop. Amount Amount Being Previously Voted No. Authorized Issued Issued But Unissued 1 S11,112,000 $1,875,000 S1,500,000 $7,737,000 2 7,238,000 675,000 715,000 5,848,000 3 7,650,000 750,000 300,000 6,600,000 • • WHEREAS, the bonds hereinafter authorized and designated were voted and are to be issued, sold, and delivered pursuant to Vemon's Ann. Tex. Civ. St. Articles 823 and 1175, Anicle D{ of the City's Home Rule Charter, and other applicable laws; and WHEREAS, it is considered to be in the best interest of the City that said interest bearing bonds be issued, NOW, THEREFORE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: Section 1. AMOUNT AND PURPOSE OF THE BONDS. The bond or bonds of the City of Denton, Texas (the "Issuer") are hereby authorized to be issued and delivered in the aggregate principal amount of S-t,100,000, FOR THE PURPOSE OF THE ACQUISITION OF PROPERTY AND MAKING IMPROVEMENTS FOR PUBLIC PURPOSES IN SAID CITY, TO-WIT: STREET AND TRAFFIC CONTROL MROVEMENTS; DRAINAGE IMPROVEMENTS AND PARK IMPROVEMENTS. Section 2. DESIGNATION OF THE BONDS. Each bond issued pursuant to this Ordinance shall be designated: "CITY OF DENTON GENERAL OBLIGATION BOND, SERIES 1947, and initially there shsl] be issued, sold, and delivered hereunder a single fully registered bond, w'stuout interest coupons, payable in installments of principal (the "Initial Bond"), but the Initial Bond may be assigned and transferred and/or converted into and exchanged for a like aggregate principal amount of fully registered bonds, without interest coupons, having serial maturities, and in the denomination or denominations of $5,000 or any integral multiple of $5,000, all in the manner herein- after provided. The term "Bonds" as used in this Ordinance shall mean and include collectively the Initial Bond and all substitute bonds exchanged therefor, as well as all other substitute bonds and replacement bonds issued pursuant hereto, and the term "Bonds" shall mean any of the Bonds. Section 3. INITIAL DATE, DENOMINATION, NUMBER, MATURITIES, INITIAL E REGISTERED OWNER, AND CHARACTERISTICS OF THE INITIAL BOND. (a) The Initial Bond is hereby authorized to be issued, sold, and delivered hereunder as a single fully registered Bond, without interest coupons, dated April 1, 1997, in the denomination and aggregate principal amount of $4,700,000, numbered R-1, payable in annual installments of principal to the initial registered owner thereof, to-wit: • or to the registered assignee or assignees of said Bond or any poirtion or portions thereof (in each case, the "registered owner"), with the annual installments of principal of the Initial Bond to be payable on the dates, respectiveiy, and in the principal amounts, respectively, stated in the FORM OF INITIAL BOND set forth in this Ordinance. f • (b) The Initial Bond (i) may be prepaid or re{eemed prior to the respective scheduled due O • dates of installments of principal thereof, (ii) may be assigned and transferred, (iii) may be converted J and exchanged for other Bonds, (rv) shall have the characteristics, and (v) shall be signed and sealed, J i 2 . r 1 • • and the principal of and interest on the Initial Bond shall be payable, all as provided, and in the manner required or indicated, in the FORM OF INITIAL BOND set forth in this Ordinance. Section 4. INTEREST. The unpaid principal balance of the Initial Bond shall bear interes'. from the date of the Initial Bond to the respective scheduled due dates, or to the respective dates of prepayment or redemption, of the installments of principal of the Initial Bond, and said interest shall be payable, all in the manner provided and at the rates and on the dates stated in the FORM OF INITIAL BOND set forth in this Ordinance. Section 5. FORM OF IN777AL BOND. The form of the Initial Bond, including the form of E~E Registration Certificate of the Comptroller of Public Accounts of the State of Texas to be endorsed I on the Initial Bond, shall be substantially as follows: FORM OF INITIAL BOND NO. R•1 $4,700,000 UNITED STATES OF AMERICA STATE OF TEXAS COUNTY OF DENTON CITY OF DENTON GENERAL OBLIGATION BOND SERIES 1997 THE CITY OF DENTON, in Denton County, Texas (the "Issuer"), being a political subdivision of the State of Texas, hereby promises to pay to or to the registered assignee or assignees of this Bond or any portion or portions hereof (in each case, the "registered owner") the aggregate principal amount of $4,700,000 (FOUR MILLION SEVEN HUNDRED THOUSAND DOLLARS) I( in annual installments of principal due and payable on February 15 in each of the years, and in the respective principal amounts, as set forth in the following schedule: f PRINCIPAL PRINCIPAL YEAR P.MOUNT YEAR AMOUNT 1998 S 25,000 2008 $235,000 1999 135,000 2009 245,000 • ' 2000 145,000 2010 265,000 • J 200I 155,000 2011 280,000 2002 160,000 2012 295,000 2003 175,000 2013 315,000 2004 185,000 2014 335,000 3 • • 2005 195,000 2015 355,000 2006 205,000 2016 375,000 2007 220,000 2017 400,000 and to pay interest, calculated on the basis of a 360-day year composed of twelve 30-day mon!hs, from the date of this Bond hereinafter stated, on the balance of each such installment of principal, respectively, from time to time remaining unpaid, at the rates as follows. per annum on the above installment due in 1998 per annum on the above installment due in 1999 _°io per annum on the above instalment due in 2000 _°.o per annum on the above installment due in 2001 per annum on the above installment due in 2002 per annum on the above installment due in 2003 f per annum on the above installment due in 2004 per annum on the above installment due in 2005 per annum on the above installment due in 2006 -°.o per annum on the above installment due in 2007 per annum on the above installment due in 2008 per annum on the above installment due in 2009 per annum on the above installment due in 2010 per annum on the above installment due in 2011 p per annum on the above installment due in 2012 per annum on the above installment due in 2013 per annum on the above installment due in 2014 per annum on the above installment due n 2015 per annum on the above installment due in 2016 _°.o per annum on the above installment due in 2017 with said interest being payable on February 15, 1998, and semiannually on each August 15 and February 15 thereafter while this Bond or any portion hereof is outstanding and unpaid. ME INSTALLMENTS OF PRINCIPAL OF AND THE INTEREST ON this Bond are payable in lawful money of the United States of America, without exchange or collection charges The installments of principal and the interest on this Bond are payable to the registered owner hereof through the services of TEXAS COMMERCE BANK NATIONAL ASSOCIATION, DALLAS, TEXAS, which is the "Paying Agent/Registrar" for this Bond, Paymew. of all principal of and interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof on each r principal and/or interest payment date by check, dated as of such date, drawn by the Paying AgenvRegistrar on, and payable solely from, funds of the Issuer required by the ordinance authorizing the issuance of this Bond (the "Bond Ordinance") to be on deposit with the Paying Agent/Registrar e for such purpose as hereinafter provided, and such check shall be sent by the Paying Agent/Registrar o by United States mail, first-class postage prepaid, on each such principal and/or interest payment date, to the registered owner hereof, at the address of the registered owner, as it appearai at the close of business on the last day of the month next preceding each such date (the "Record Date") on the Registration B:,oks kept by the Paying Agent/Registrar, as hereinafter described The Issuer cove- 4 • • nants with the registered owner ofthis Bond that on or before each principal and/or interest payment date for this Bond it will make available to the Paying AgenvRegistrar, from the "Interest and Sinking Fund" created by the Bond Ordinance, the amounts required to provide for the payment, in immediately available funds, of all principal of and interest on this Bond, when due. IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banking institutions in the City where the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the row succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorised to close; and payment on such date shall have the sane force and effect as if made on the original date payment was due. THIS BOND has been authorized in accordance with the Constitution and laws of the State of Texas FOR THE PURPOSE OF THE ACQUISITION OF PROPERTY AND MAKING IMPROVEMENTS FOR PLBLIC PURPOSES IN SAID CITY, TO-WIT: STREET AND TRAFFIC CONTROL IMPROVEMENTS; DRAINAGE IMPROVEMENTS AND PARK IMPROVEMENTS. ON FEBRUARY 15, 2007, or on any date whatsoever thereafter, the unpaid installments of principal of this Bond may be prepaid or redeemed prior to their scheduled due dates, at the option of the Issuer, with funds derived from any available source, as a whole, or in part, and, if in pan, the particular portion of this Bond to be prepaid or redeemed shall be selected and designated by the Issuer (provided that a portion of this Bond may be redeemed only in an integral multiple of $5,000), at the prepayment or redemption price of the par or principal amount thereof, plus accrued interest to the date fixed for prepayment or redemption. ON FEBRUARY 15, 2013, and on FEBRUARY IS of each of the years hereinafter specified, the unpaid installments of this Bond scheduled to mature on FEBRUARY 15, 2017 are subject to mandatory prepayment and redemption prior to their scheduled maturities, and shall be prepaid and redeemed by the Issuer, in part, prior to their scheduled maturities, with money from the Mandatory Redemption Account of the Interest and Sinking Fund, (provided that a portion of a Bond may be redeemed only in an integral multiple of $5,000) at a prepayment and redemption price equal to the par or principal amount thereof and accrued interest to the date of prepayment and redemption, on the dates, and in the principal amounts, respectively, as shown in the following schedule: Date Principal Amount 2013 5315,000 2014 335,000 2015 355,000 2016 375,000 t, 2017(maturity) 400,000 • The principal amo-mt of any prepayment and redemption of this Bor i required to be prepaid and redeemed on any prepayment and redemption date pursuant to me foregoing operation of the Mandatory Redemption Account shall be reduced, at the option of the Issuer, by the principal amount 5 • • of any prepayment and redemption of this Bond out of the maturity scheduled for prepayment and redemption in pan on such prepayment and redemption date which at least 50 days prior to the date of such mandatory prepayment or redemption shall have been prepaid and redeemed pursuant to the optional redemption provisions set furth herein and not theretofore credited against a mandatory redemption requirement. AT LEAST 30 days prior to the date fixed for any such prepayment or redemption a written notice of such prepayment or redemption shall be mailed by the Paying Agent/Registrar to the registered owner hereof. By the date fixed for any such prepayment or redemption due provision shall be made by the Issuer with the Paying Agent/Registrar for the payment of the required prepay- ment or redemption price for this Bond or the portion hereof which is to be so prepaid or redeemed, plus accrued intem-t thereon to the date fixed for prepayment or redemption. If such written notice of prepayment or redemption is given, and if due provision for such payment is made, all as provided above, this Bond, or the portion thereof which is to be so prepaid or redeemed, thereby automatically shall be treated as prepaid or redeemed prior to its scheduled due date, and shall not bear interest f after the date fixed for its prepayment or redemption, and shall not be regarded as being outstanding except for the right of the registered owner to receive the prepayment or redemption price plus accrued interest to the date fixed for prepayment or redemption from the Paying Agent/Registrar out of the funds provided for such payment. The Paying Agent/Registrar shall record in the Registration Books all such prepayments or redemptions of principal of this Bond or any portion hereof. I THIS BOND, to the extent of the unpaid or unredeemed principal balance hereof, or any unpaid and unredeemed portion hereof in any integral multiple of $5,000, may be assigned by the initial registered owner hereof and shall be transferred only in the Registration Books of the Issuer kept by the Paying Agent/Registrar acting in the capacity of registrar for the Bonds, upon the terms and conditions set forth in the Bond Ordinap« Among other requirements for such transfer, this Bond must be presented s.,d surrendered to the Paying Agent/ Registrar for cancellation, together with proper instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, evidencing assignment by the initial registered owner of this Bond, or any portion or portions hereof in my integral multiple of $5,000, to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be transferred and registered. Any instrument or instruments of assignment satisfactory to the Paying Agent/Registrar may be used to evidence the assignment of this Bond or any such portion or portions hereof by the 1 initial registered owner hereof Anew bond or bonds payable to such assignee or assignees (which then will be the new registered owner or owners of such new Bond or Bonds) or to the initial registered owner as to any portion of this Bond which is not being assigned and transferred by the initial registered owner, shall be delivered by the Paying Agent/Registrar in conversion of and exchange for this Bond or any portion or portions hereof, but solely in the form and manner as provided in the next paragraph hereof for the conversion and exchange of this Bond or any portion hereof The registered owner of this Bond shall be deemed and treated by the Issuer and the Paying Agent/Registi ar as the absolute owner hereof for all purposes, including payment and discharge of ® liability upon this Bond to the extent of such payment, and the Issuer and the Paying Agent/Registrar • • shall not be affected by any notice to the contrary. AS PROVIDED above and in the Bond Ordinance, this Bond, to the extent of the unpaid or unredeemed principal balance hereof, may be converted into and exchanged for a like aggregate 6 - • 0 • • principal amount of fully registered bonds, without interest coupons, payable to the assignee or assignees duly designated in writing by the initial registered owner hereof, or to the initial registered owner as to any portion of this Bond which is not being assigned and transferred by the initial registered owner, in any denomination or denominations in any integral multiple of $5,000 (subject to the requirement hereinafter stated that each substitute bond issued in exchange for any portion of this Bond shall have a single stated principal maturity date), upon surrender of this Bond to the Paying Agent/Registrar for cancellation, all in accordance with the form and procedures set forth in the Bond Ordinance. If this Bond or any portion hereof is assigned and transferred or converted each bond issued in exchange for any portion hereof shall have a single stated principal maturity date corresponding to the due date of the installment of principal of this Bond or portion hereof for which the substitute bond is being exchanged, and shall bear interest at the rate applicable to and borne by such installment of principal or portion thereof Such bonds, respectively, shall be subject to redemption prior to maturity on the same dates and for the same prices as the corresponding installment of principal of this Bond or portion hereof for which they are being exchanged No such 1 bond shall be payable in installments, but shall have only one stated principal maturity date. AS PROVIDED IN THE BOND ORDINANCE, THUS BOND IN ITS PRESENT FORM MAY BE ASSIGNED AND TRANSFERRED OR CONVERTED ONCE ONLY, and to one or more assignees, but the bonds issued and delivered in exchange for this Bond or any portion hereof may be assigned and transferred, and converted, subsequently, as provided in the Bond Ordinance. The Issuer shall pay the Paying Agent/Registrar's standard or customary fees and charges for transferring, converting, and exchanging this Bond or any portion thereof, but the one requesting such transfer, conversion, and exchange shall pay any taxes or governmental charges required to be paid with respect thereto. The Paying Agent/Regisuar shall net be required to make any such assignment, conversion, or exchange (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or portion thereof called for prepayment or redemption prior to maturity, within 45 days prior to its prepayment or redemption date. IN THE EVENT any Paying Agent/Registrar for this Bond is changed by the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Bond Ordinance that it promptly will appoint a competent and legally qualified substitute therefor, and promptly will cause written notice thereof to be mailed to the registered owner of this Bond. IT IS HEREBY certified, recited, and covenanted that this Bond has been duly and validly voted, authorized, issued, sold, and delivered; that all acts, conditions, and things required or proper • to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been performed, existed, and been done in accordance with law, that this Bond is a general obligation of the Issuer, issued on the full faith and nredit thereof, and that annual ad valorem taxes i sufficient to provide for the payment of the interest on and principal of this Bond, as such interest comes due and such principal matures, have been levied and ordered to be levied against all taxable property in the Issuer, and have been pledged irrevocably for such payment, within the limit pre- t9 ' scribed by law. • • BY BECO.WNG the registered ovmer of this Bond, the registered owner thereby acknowledges all of the terms and provisions of the Bond Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Bond Ordinance is duly recorded and available for 7 0 • • inspection in the official minutes and records of the governing body of the Issuer, and agrees that the terms and provisions of dds Bond and the Bond Ordinance constitute a contract between the registered owner hereof and the Issuer. I i I • i S r' a WIN - • • IN WITNESS WHEREOF, the Issuer has caused this Bond to be signed with the manual signature of the Mayor of the Issuer and countersigned with the manual signature of the City Secretary of the Issuer, has caused the official seal of the Issuer to be duly impressed on this Bond, and has caused this Bond to be dated April 1, 1997. City Secretary, City of Denton, Texas Mayor, City of Denton, Texas (CITY SEAL) (INSERT BOND INSURANCE LEGEND, IF ANY) R FORM OF REGISTRATION CERTICAJE OF THE i COMPTROLLER OF PUBLIC ACCOUNTS: COMPTROLLER'S REGISTRATION CERTIFICATE: REGIS7FR NO. I hereby certify that this Bond has been exr-r:~'ned, cerJfied as to validity, and approve: by the Attomq General of the State of Texas, and that this :3ond has been registered by the Comptroller of Public Accounts of the State of Texas. Witness my signature and seal this Comptroller of Public Accounts of the State of Texas (COMPTROLLER'S SEAL) Section 6. ADDITIONAL CHARACTERISTICS OF THE BONDS. Registration and Transfer. (a) The Issuer shall keep or cause to be kept at the principal corporate trust office of TEXAS COMMERCE BANK NATIONAL ASSOCIATION, DALLAS, TEXAS (the "Paying Agent/Registrar") books or records of the registration and transfer of the Bonds (the "Registration Books"), and the Issuer hereby appoints the Paying Agent/Registrar as its registrar and transfer agent to keep such books or records and make such transfers and registrations under such reasonable regidatiorns as the Issuer and Paying Agent/Regist-ar may prescribe; apd the Paying Agent/Registrar • shall make such transfers and registrations as herein provided. The Paying Agent/Registrar shall ' p obtain and record ;n the Registration Books the audress of the registered owner of each Bond to which payments with respect to the Bonds shall be mailed, as herein provided; but it shall be the duty of each registereJ owner to notify the Paying Agent/Registrar in writing of the address to which payments shag be mailed, and such interest payments shall not be mailed unless such not;ce has been 9 o given The Issuer shall have the right to inspect the Registration Books during regular business hours of the Paying Agent/Registrar, but otherwise the Paying Agent/Registrar shall keep the Registration Books confidential and, unless otherwise required by law, shall not permit their inspection by any other entity. Registration of each Bond may be transferred in the Registration Books only upon presentation and surrender of such Bond to the Paying Agent/Registrar for transfer of registration and cancellation, together with proper written instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent/Registrar, (i) evidencing the assignment of the Bond, or apy portion thereof in any integral multiple of 55,000, to the assignee or assignees thereof, and (ii) the right of such assignee or assignees to have the Bond or any such portion thereof registered in the name of such assignee or assignees Upon the assigrment and transfer of any Bond or any portion thereof, a new substitute Bond or Bonds shall be issued in conversion and exchange therefor in the manner herein provided The Initial Bond, to the extent of the unpaid or unred!emed principal balance thereof, may be assigned and transferred by the initial registered owner thereof once only, and to one or more assignees designated in writing by the initial registered owner thereof All Bonds issued and delivered in conversion of and exchange for the Initial Bond shall he in any denomination or denominations of any integral multiple of $5,000 (subject to the requirement hereinafter stated that each substitute Bond shall have a single stated principal maturity date), shall be in the form prescribed in th.: FORM OF SUBSTITUTE BOND set forth in this Ordinance, and shall have the characteristics, and may be assigned, transferred, and converted as hereinafter provided. If the Initial Bond or any portion thereof is assigned and transferred or converted the Initial Bond must be surrendered to the Paying Agent/Registrar for cancellation, and each Bond issued in exchange for any portion of the Initial Bond shall have a single stated principal maturity date, and shall not be payable in installments, and each such Bond shall have a principal maturity date corresponding to the due date of the installment of principal or portion thereof for which the substitute Bond is being exchanged; and each such Bond shall bear interest at the single rate applicable to and borne by such installment of principal or portion thereof for which it is being exchanged, If only r portion of the Initial Bond is assigned and transferred, there shall be delivered to and registered in the name of the initial registered owner substitute Bonds in exchange for the unassigned balance of the Initial Bond in the same manner as if the initial registered owner were the assignee thereof If any Bond or portion thereof other than the Initial Bond is assigned and transferred or converted each Bond issued in exchange therefor shall have tht same principal maturity date and bear interest at the same rate as the Bona for whi:h it is exchanged. A form of assignment shall be printed or endorsed on each Bond, excepting the Initial Bond, which shall be executed by the registered owner or its duly authorized attorney or representative to evidence an assignment thereof. Upon surrender of any Bonds or any portion or portions thereof for transfer of registration. an authorized representative of the Paying o Agent/Registrar shall make such transfer in the Registration Books, and shall deliver a new fully registered substitute Bond or Bonds, having the characteristics herein described, payable to such assignee or assignees (which then will be the registered owner or owners of such new Bond or Bonds), or to the previous registered owner in case only a portion of a Bond is being assigned and transferred, all in conversion of and exchange for said assigned Bond or Bonds or any portion or portions thereof, in th; same form and manner, and with the same effect, as provided in Section 6(d), 0 below, for the conversion and exchange of Bonds by any registered owner of a Bond. The Issuer O M shall pay the Paying Agent/Regisuar's standard or customary fees and charges for making such trans- fer and delivery of a substitute Bond or Bonds, but the one requesting such transfer shall pay any taxes or other governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make transfers of registration of any Bond or any portion 10 • • thereof (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or any portion thereof called for redemption prior to maturity, within 45 days prior to its redemption data (b) Owngrsh y of Bonds. The entity in whose name any Bond shall be registered in the Registration Books at any time shall be deemed and treated as the absolute owner thereof for all purposes of this Ordinance, whether or not such Bond shall be overdue, and the Issuer and the Paying Agent/Registrar shall not be affected by any notice to the contrary; and payment of, or on account of, the principal of, premium, if any, a id interest on any such Bond shall be made only to such registered owner. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. (c) Payment of Bonds and Interest The Issuer hereby further appoints the Paying AgenvRegistrar to act as the paying agent for paying the principal of and interest on the Bonds, and to act as its agent to convert and exchange or replace Bonds, all as provided in this Ordinance The Paying Agent/Registrar shall keep proper records of all payments made by the Issuer and the Paying Agent/Regisimr with respect to the Bonds, and of all conversions and exchanges of Bonds, and all replacements of Bonds, as provided in this Ordinance. However, in the event of a nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the Issuer Notice of the Special Record Date and of the scheduled payment date of the past due interest ("Special Payment Date", which shall be fifteen (1S) days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first class postage prepaid, to iJ the address of each Holder of a Bond appearing on the registration books of the Paying Agent/Registrar at the close of business on the 15th business day next preceding the date of mai'mD of such notice (d) Cmersion and Exchange or Replacemen Authentication. Each Bond issued and delivered pursuant to this Ordinance, to the extent of the unpaid or unredeemed principal balance or principal amount thereof, may, upon surrender of such Bond at the principal corporate trust office of the Paying Agent/Registrar, together with a written request therefor duly executed by the registered owner or the assignee or assignees thereof, or its or their duly authorized attorneys of representatives, with guarantee of signatures satisfactory to the Paying Agent/Registrar, may, at the • option of the registered owner or such assignee or assignees, as appropriate, be converted into and exchanged for fully registered bonds, without interest coupons, in the form prescribed in the FOAM OF SUBSTITIJTE BOND set forth in this Ordinawe, in the denomination of $5,000, or any integral multiple of $5,000 (subject to the requirement hereinafter stated that each substitute Bond shall have a single stated maturity date), as requested in writing by such registered owner or such assignee or assignees, in an aggregate principal amount equal to the unpaid or unredeemat pincipal balance or • principal amount of any Bond or Bonds so surrendered, and payable to the appropriate registered owner, assignee, or assignees, as the case may be. If the Initial Bond is assigned and transferred or converted each substitute Bond issued in exchange for any portion of the Initial Bond shall have a single stated principal maturity, date, and shall not be payable in installments; and each such Bond shall have a principal maturity date corresponding to the due date of the installment of principal or portion 11 • • thereof for which the substitute Bond is being exchanged; and each such Bond shall bear interest at the single rate applicable to and borne by such installment of principal or portion thereof for which it is being exchanged. If a portion of any Bond (other than the Initial Bond) shall be redeemed prior to its scheduled maturity as provided herein, a substitute Bond or Bonds having the same maturi.; date, bearing interest at the same rate, in the denomination or denominations of any integral multiple of $5,000 at the request of the registered owner, and in aggregate principal ainount equal to the unredeemed portion thereof, will be issued to the registered owner upon surrender thereof for cancellation. If any Bond or portion thereof (other than the Initial Bond) is assigned and transferred or converted, each Bond issued in exchange therefor shall have the same principal maturity date and bear interest at the same rate as the Bond for which it is being exchanged. Each substitute Bond shall bear a letter and/or number to distinguish it from each other Bond. The Paying Agent/Registrar sha11 convert and exchange or replace Bonds as provided herein, and each fully registered bond delivered in conversion of and exchange for or replacement of any Bond or portion thereof as permitted or required by any provision of this Ordinance shall constitute one of the Bonds for all pwposes of this j Ordinance, and may again be converted and exchanged or replaced. It is specifically provided that any Bond authenticated in conversion of and exchange for or replacement of another Bond on or prior to the first scheduled Record Date for the Initial Bond shall bear interest from the date of the Initial Bond, but each substitute Bond so authenticated after such first scheduled Record Date shall bear interest from the interest payment date next preceding the date on which such substitute Bond was so authenticated, unless such Bond is authenticated after any Record Date but on or before the next following interest payment date, in which case it shall bear interest from such next following interest payment data; provided, however, that if at the time of delivery of any substitute Bond the interest on the Bond for which it is being exchanged is due but has not been paid, then such Bond shall bear interest from the date to which such interest has been paid in full. THE INITIAL BOND issued and delivered pursuant to this Ordinance is not required to be, and shall not be, authenticated by the Paying Agent/Registrar, but on each substitute Bond issued in conversion of and exchange for or replacement of any Bond or Bonds issued under this Ordinance there shall be printed a bond, in the form substantially as followr "PAYING AGENT/REGISTKAR'S AUTHENTICATION CERTIFICATE It is hereby certified that this Bond has been issued under the provisions of the Bond Ordinance described in this Bond; and that this Bond has been issued in conversion of and exchange 1 for or replacement of a bond, bonds, or a portion of a bond or bonds of an issue which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. i TEXAS COMMERCE BANK NATIONAL ASSOCIATION, DALLAS, TEXAS Paying Agent/Registrar • Dated • J By Authorized Rep:esenlative" 12 A A An authorized representative of the Paying Agent/Registrar shall, before the delivery of any such Bond, date and manually sign the above Bond, and no such Bond shall be deemed to be issued or out- stznding unless such Bond is so executed. The Paying Agent/Registrar promptly shall cancel all Bonds surrendered for conversion and exchange or replacement. No additional ordinances, orders, or resolutions need be passed or adopted by the governing body of the Issuer or any other body or person so as to accomplish the foregoing conversion and exchange or replacement of any Bond or portion thereof, and the Paying Agent/Registrar shall pro-Me for the printing, execution, and delivery of the substitute Bonds in the manner prescribed herein, and said Bonds shall be of type composition printed on paper with lithographed or steel engraved borders of customary weight and strength. Pursuant to Vemon's Ann. Tex. Civ. St. Art. 717k-6, and particularly Section 6 thereof, the duty of conversion Pnd exchange or replacement of Bonds as aforesaid is hereby imposed upon the Paying Agent/Reg strar, and, tipon the execution of the above Paying Agent/Registrars Authentication Certificate, the converted and exchanged or replaced Bond shall be valid, incontestable, and enforceable in the same manner and with the same effect as the Initial Bond which originally was issues pursuant to this Ordinance, Approved by the Attorney General, and registered by the Comptrollor of Public Accounts. The Issuer shall pay the Paying Agent/Registrars standard or customary fees and charges for transferring, converting, and exchanging any Bond or any portion thereof, but the one requestiuig any such transfer, conversion, and exchange shall pay any taxes or governmental charges required to be paid with respect thereto as a condition precedent to the exercise of such privilege of conversion and exchange The Paying Agent/Registrar shall not be required to make any such conversion and exchange or replacement of Bonds or any portion thereof (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or portion thereof called for redemption prior to maturity, within 45 days prior to its redemption data (e) I n ral. All Bonds issued in conversion and exchange or replacement of any other Bond or portion thereof, (i) shall be issued in fully registered form, without interest coupons, with 4 the principal of and interest on such Bonds to be payable only to the registered owners thereof, (ii) may be redeemed prior to their scheduled maturities, (iii) may be transferred and assigned, (iv) may be converted and exchanged for other E+ nds, (v) shall have the characteristics, (vi) shall be signed and sealed, and (vii) the principal of and interest on the Bonds shall be payable, all as provided, and in the manner required or indicated, in the FORM OF SUBSTITUTE BOND set forth in this Ordinance. O (t) Payment of Fees and Chg&ej The Issuer hereby covenants with the registered owners of the Bonds that it will (i) pay the standard or customary fees and charges of the Paying r Agent/Registrar for its services with respect to the payment of the principal of and interest on the Bonds, when due„ and (ii) pay the fees and charges of the Paying Agent/ Registrar for services with respell to the transfer of registration of Bonds, and with respect to the conversion and exchange of Bonds solely to the extent above provided in this Ordinance. A O O (g) Lubstitute Payjn& Agent/Registrar. The Issuer covenants with the registered owners of the Bonds that at all times while the Bonds are outstanding the Issuer will provide a competent and legally qualified bank trust company, financial institution, or other agency to act as and perform the services of Paying Agent/Registrar for the Bonds under this Ordinance, and that the Paying 13 I A f .-i 0 s Agent/Registrar vrll be one entity. The Issuer reserves the right to, and may, at its option, change the Paying Agent Registrar upon not less than 120 days written notice to the Paying Agent/Registrar, to be effective not later than 60 days prior to the next principal or interest payment date after such notice, In 6,e r ant that the entity at anytime acting as Paying Agent/Registrar (or its successor by merger, acgasition, or other method) should resign or otherwise cease to act as such, the issuer covenants that promptly it will appoint a competent and legally qualified bank, trust company, financial institution, or other agency to act as Paying Agent/Registrar under this Ordinance. Upon any change in the Paying Agent/Registrar, the previous Paying Agent/Registrar promptly shall transfer and del„m the Registration Books (or a copy thereof), along with all other pertinent books and records relating to the Bonds, to the new Paying Agent/Registrar designated aid appointed by the Issuer. Upon arty change in the Paying Agent/Registrar, the Issuer promptly will cause a written notice thereof to be sent by the new Paying Agent/Registrar to each registered owner of the Bonds, by United States mail, first-class postage prepaid, which notice also shall give the address of the new Paying Agent/Registrar. By accepting the position and performing as such, each Paying Agent/Regis- trar shall be deemed to have agreed to the provisions of this Ordinance, and a certified copy of this Ordinance shall be delivered to each Paying Agent/Registrar. Section FORM OF SUBSTITUTE BONDS. The form of all Bonds issued in conversion and exchange or replacement of any other Bond or portion thereof, including the form of Paying Agent/Registrar's Bond to be printed on each of such Bonds, and the Form of Assignment to be printed on each of the Bonds, shall be, respectively, substantially as follows, with such appropriate variations, omissions, or insertions as are permitted or required by this Ordinance FORM OF SUBSTITUTE BOND (Book-Entry Only Legend, if appropriate) NO. UNITED STATES OF AMERICA PRINCIPAL AMOUNT STATE OF TEXAS $ COUNTY OF DENTON CITY OF DENTON GENERAL OBLIGATION BOND SERIES 1997 ORIGINAL DATE INTEREST RATE MATURITY DATE _ OF ISSUE CUSIP NO. 010 APRIL 1, 1997 r ON THE MATURITY DATE specified above the CITY OF DENTON, in Denton County, Texas (the "Issuer"), being a political subdivision • `the State of Texas, hereby promises to pay to , or to the registered assignee hereof (either being hereinafter called the "registered owns`) the principal amount of t➢ I and to pay interest thereon, calculated on the basis of a 360-day year composed of twelve 30-day months, from April 1, 1997, to the maturity date specified above, or the date of redemption prior to 14 I I 0 e maturity, at the interest rate per annum specified above; with interest being payable on February 15, 1998, and semiannually on each August 15 and February 15 thereafter, except that if the date of authentication of this Bond is later than the first Record Date (hereinafter defined), such principal amount shall bear interest from the interest pay.nent date next preceding the date of authentication, unless,uch date of authentication is after any Record Date (hereinafter defined) but on or before the nex. following interest payment date, in which case such principal amount shall bear interest from such next following interest payment date, THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful monty of the United States of America, without exchange or collection charges The principal of this Bond shall be paid to the registered owner hereof upon presentation and surrender of this Bond at maturity or upon the date fixed for its redemption prior to maturity, at the principal corporate trust office of TEXAS COMN ERCE BANK NATIONAL ASSOCIATION, DALLAS, TEXAS, which is the "Paying Agent/Registrar" for this Bond. The payment of interest on this Bond shall be made by the Paying Agent/Registrar to the registered owner hereof on each interest payment date by check, dated as of such interest payment date, drawn by the Paying Agent/Registrar on, and payable solely from, funds of the Issuer required by the ordinance authorizing the issuance of the Bonds (the "Bond Ordinance") to be on deposit with the Paying Agent/Registrar for such purpose as hereinafter provided, and such check shall be sent by the Paying Agent/Registrar by United States mail, first-class postage prepaid, on each such interest payment date, to the registered owner hereof, at the address of the registered owner, as it appeared at the close of business on the last day of the month next preceding each such date (the "Record Date") on the Registration Books kept by the Paying Agent/Registrar, as hereinafter described. However, the payment of such interest may be made by any other method acceptable to the Paying Agent/Registrar and requested by, and at the risk and expense of, the registered owner hereof Any accrued interest due upon the redemption of this Bond prior to maturity as provided herein shall be paid to the registered owner at the principal corporate trust office of the Paying Agent/Registrar upon presentation and surrender of this Bond for redemp- tion and payment at the principal corporate trust office of the Paying AgentiRegistrar. The Issuer covenants with the registered owner of this Bond that on or before each principal payment date, interest payment date, and accrued interest payment date for this Bond it will make available to the Paying Agent/ Registrar, from the "Interest and Sinking Fund" created by the Bond Ordinance, the amounts required to provide for the payment, in immediately available funds, of all principal of and interest on the Bonds, when due, IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday, Sunday, a legal holiday, or a day on which banking instivitions in the City where the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day on which banking institutions are authorized to close, and payment on such date shall have the same force and effect as if made on the original date payment was due. 1 e THIS BOND is one of an issue of Bonds initially dated April 1, 1997, authorized in O accordance with the Constitution and laws of the State of Texas in the principal amount of 34,700,000, FOR THE PURPOSE OF THE ACQUISITION OF PROPERTY AND MAKING ,J MPROVEMENTS FOR PUBLIC PURPOSES IN SAID CITY, TO-WIT: STREET AND 15 c_„ 0 0 TRAFFIC CONTROL PaROVEMENTS; DRAINAGE IMPROVEMENTS AND PARK IMPROVEMENTS. ON FEBRUARY 15, 2007, or on any date whatsoever thereafter, the Bonds of this Series may be redeemed prior to their scheduled maturities, at the option of the Issuer, with funds derived from any available and lawful source, as a whole, or in part, and, if in pan, the particular Bonds, or portions thereof, to be redeemed shall be selected and designated by the Issuer (provided that a portion of a Bond may be redeemed only in an integral multiple of S5,000), at the redemption price of the par or principal amount thereof, plus accrued interest to the date fixed for redemption ON FEBRUARY 15, 2013 and on FEBRUARY 15 of each of the years hereinafter specified, the outstanding Bonds of this Series scheduled to mature on FEBRUARY 15, 2017 are subject to mandatory redemption prior to their scheduled maturities, and shall be redeemed by the Issuer, in part, prior to their scheduled maturities, with money from the Mandatory Redemption Account of the Interest and Sinking Fund, with the particular Bonds or portion thereof to be redeemed to be selected by the Paying Agent/Registrar, by lot or other customary method (provided that a portion of a Bond may be redeemed only in an integral multiple of $5,000) at a redemption price equal to the par or principal amount thereof and accrued interest to the date of redemption, on the dates, and in the principal amounts, respectively, as shown in the following schedule: Date Principal Amount 2013 S315,000 2014 335,000 2015 355,000 2016 375,000 2017(maturity) 400,000 The principal amount of the Bonds required to be redeemed on any redemption date pursuant to the foregoing operation of the Mandatory Redemption Account shall be reduced, at the option of the Issuer, by the principal amount of any Bonds out of the matur;ty scheduled for redemption in part on such redemption date which at least 50 days prior to the date. of such mandatory redemption (i) shall have been acquired by the Issuer at a price not ex.eeding ?lu principal amount of such Bonds plus accrued interest to the date of purchase and delivered to the Paying Agent/Registrar for cancellation or (i) shall have been redeemed pursuant to the optional redemption provisions set forth herein and not theretofore credited against a mandatory redemption requirement. AT LEAST 30 days prior to the date fixed for any redemption of Bonds or portions thereof prior to maturity a written notice of such redemption shall be published once in a financial publication, journal, or reporter of general circulation among securities dealers in The City of New York, New F York (including, but not limited to, The Bond Buyer and The Wall Street Journal), or in the State of , 9 Texas (including, but not limited to, The Texas Bond Reporter). Such notice also shall be sent by + O the Paying Agent/Registrar by United States mail, first-class postage prepaid, not less than 30 days prior to the date fixed for any such redemption, to the registered owner of each Bond to be redeemed at its address as it appeared on the 45th day prior to such redemption date; provided, however, that the failure to send, mail, or receive such notice, or any defect therein or in the sending or mailing 16 • thereof, shall not affect the validity or effectiveness of the proceedings for the redemption of any Bond, and it is hereby specifically provided that the publication of such notice as required above shall be the only notice actually required in connection with or as a prerequisite to the redemption of any Bonds or portions thereof. By the date fixed for any such redemption due provision shall be made with the Paying AgenvRegistrar for the payment of the required redemption price for the Bonds or portions thereof which are to be so redeemed, plus accrued interest thereon to the date fixed for redemption. If such written notice of redemption is published and if due provision for such payment is made, all as provided above, the Bonds or portions thereof which are to be so redeemed thereby automatically shall be treated as redeemed prior to thew scheduled maturities, and they shall not bear interest after the date fixed for redemptinn, nD'! trey shall not be regarded as being outstanding except for the right of the registered owner to receive the redemption price plus accrued interest from the Paying Agent/ Registrar out of the funds provided for such payment. If a portion of any Bond shall be redeemed a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000, at the written request of the registered owner, and in aggregate principal amount equal to the unredeemed portion thereof, will be issued to the registered owner upon the surrender thereof for cancellation, at the expense of the Issuer, all as provided in the Bond Ordinance, THIS BOND OR ANY PORTION OR PORTIONS HEREOF IN ANY INTEGRAL MULTIPLE OF 55,000 may be assigned and shall be transferred only in the Registration Books of the Issuer kept by the Paying Agent/Registrar acting in the capacity of registrar for the Bonds, upon the terms and conditions set forth in the Bond Ordinance Among other requirements for such assignment and transfer, this Bond must be presented and surrendered to the Paying AgenVR4strar, together with proper instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agcnt/Registrar, evidencing assignment of this Bond or any portion or portions hereof in any integral multiple of 55,000 to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be transferred and registered. The form of Assignment printed or endorsed on this Bond shall be executed by the registered owner or its duly authorized attorney or representative, to evidence the assignment hereof. A new Bond or Bonds payable to such assignee or assignees (which then will be the new registered owner or owners of such new Bond or Bonds), or to the previous registered owner in the case of the assignment and transfer of only a portion of this Bond, may be delivered by the Paying Agent/Registrar in conversion of and exchange for this Bond, all in the form and manner as provided in the next paragraph hereof for the 1 conversion and exchange of other Bonds. The Issuer shall pay the Paying AgenVRegistrar's standard or customary fees and charges for making such transfer, but the one requesting such transfer shall pay • any taxes or other governmental charges required to be paid with respect thereto. The Paying Agent/Registrar shall not be required to make transfers of registration of this Bond or any portion hereof (i) during the period conunencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or, (ii) with respect to any Bond or any portion thereof called for redemption prior to maturity, within 45 days prior to its redemption data The registered owner of this Bond shall be deemed and treated by the a Issuer and the Paying Agent/Registrar as the absolute owner hereof for all purposes, including O e payment and discharge of liability upon this Bond to the extent of such payment, and the Issuer and J the Paying Agent/Registrar shall not be affected by any notice to the contrary. 17 • • ALL BONDS OF THIS SERIES are issuable solely as fully registered bonds, without interest coupons, in the denomination of any integral multiple of $5,000. As provided in the Bond Ordinance, this Bond, or any unredeemed portion hereof, may, at the request of the registered owner or the assignee or assignees hereof, be converted into and exchanged for a like aggregate principal amount of fully registered bonds, without interest coupons, payable to the appropriate registered owner, assignee, or assignees, as the case may be, having the same maturity date, and bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000 as requested in writing by the appropriate registered owner, assignee, or assignees, as the case may be, upon Sur- render of this Bond to the Paying AgentRegistrrs for cancellation, all in accordance with the form and procedures set forth in the Bond Ordinance. The Issuer shall pay the Paying Agent/ Registrar's standard or customary fees and charges for transferring, converting, and exchanging any Bond or any portion thereof, but the one requesting such transfer, conversion, and exchange shall pay any taxes or governmental charges required to be paid with respect thereto as a condition precedent to the exercise of such privilege of conversion and exchange. The Paying Agent/Registrar shall not be required to make any such conversion and exchange (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following j principal or interest payment date, or, (ii) with respect to any Bond or portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. IN THE EVENT any Paying AgenvRegistrar for the Bends is changed by the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Bond Ordinance that it promptly will appoint a competent and legally qualified substitute therefor, and promptly will cause written notice thereof to be mailed to the registered owners of the Bonds. IT 1S HEREBY certified, recited, and covenanted that this Bond has been duly and validly voted, authorized, issued, sold, and delivered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the authorization, issuance, and delivery of this Bond have been performed, existed, and been done in accordance with law; that this Bond is a general obligation of the Issuer, issued on the full faith and credit thereof, and that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Bond, as such interest comes due and such principal matures, have been levied and ordered to be levied against all taxable property in the Issuer, and have been pledged irrevocably for such payment, within the limit pre- scribed by law. BY BECOMING the registered owner of this Bond, the registered owner thereby acknowledges cell of the terms and provisions of the Bond Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Bond Ordinance is duly recorded and available for inspection in the official minutes and records of the governing body of the Issuer, and agrees that the terms and provisions of this Bond and the Bond Ordinance constitute a contract between each registered owner hereof and the Issuer, is -r" • • IN WTTNESS WHEREOF, the Issuer has caused this Bond to be signed with the manual or facsimile signature of the Mayor of the Issuer and countersigned with the manual or facsimile signature of the City Secretary of the Issuer, and has caused the official seal of the Issuer to be duty impressed, or placed in facsimile, on this Bond. City Secretary, City of Denton, Texas Mayor, City of Denton, Texas (CITY SEAL) FORM OF PAM-0 AGENTIREGISTRAKS AUTHENTICATION CERTIFICATE PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE j}} (To be executed if this Bond is not accompanied by an executed Registration Certificate of the Comptroller of Public Accounts of the State of Texas) It is hereby certified that this Bond has been issued under the provisions of the Bond Ordinance described in this Bond; and that this Bond has been issued in conversion of and exchange for or replacement of a bond, bonds, or a portion of a bond or bonds of an issue which originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. TEXAS COMMERCE BANK NATIONAL 3 ASSOCIATION, DALLAS, TEXAS Paying Agent/Registrar Dated By Authorized Representative - (INSERT BOND INSURANCE LEGEND, IF ANY) • J 19 h I X • • FORM OF ASSIG M ASSIGNMENT FOR VALUE RECEIVED, the undersigned registered ovw7 of this Bond, or duly authorized representative or attorney thereof, hereby assigns this Bond to f / (Assignee's Social (print or typewrite Assignee's name and Security or Taxpayer address, including zip code) Identification Number) and hereby irrevocably constitutes and appoints attorney to transfer the relistration of this Bond on the Paying Agent/Registrar's Registrat;on Books with full power of substitution in the premises. Dated Signature Guaranteed, NOTICE Signature(s) must be Registered Owner guaranteed by an eligible guarantor NOTICE: This signature: must correspond institution participating in a with the name of the Registered Owner securities transfer association appearing on the face of this Certificate in recognized signature guarantee every particular without alteration or program enlargement or any change whatsoever. Section 8. TAX LEVY. A special Interest and Sinking Fund (the "Interest and Sinking Fund") is hereby created solely for the benefit of the Bonds, and the Interest and Sinking Fund shall be established and maintained by the Issuer at an official depository bank of the Issuer. The Interest • and Sinking Fund shall be kept separate and apart from all other funds and accounts of the Issuer, and shall be used only for paying the interest on and principal of the Bonds. All ad valorem taxes levied r and collected for and on account of the Bonds shall be deposited, as collected, to the credit of the Interest and Sinking Fund. During each year while any of the Bonds or interest thereon are outstanding and unpaid, the governing body of the Issuer shall compute and ascertain a rate and amount of ad valorem tar which will be sufficient to raise and produce the money required to pay the ® interest on the Bonds as such interest becomes due, and to provide and maintain a sinking fund O • adequate to pay the principal of its Bonds as such principal matures (but never less than 2% of the original principal amount of the Bonds as a sinking fund each year) including such amounts to satisfy .J the mandatory redemption schedule for the Bonds maturing February 15, 2017 which shall be 20 i • e - • • depc4ted into a Nfandatory Redemption Account, with such mandatory redemption of principal and interest constituting payment at maturity, on the dates and for the nnounts as follows February 15, 2017 Mandatory Redemption Dates Principal - un February 15, 2013 S315,000 February 15, 2014 335,000 February 15, 2015 355,000 February 15, 2016 375,000 February 15, 2017(maturity) 400,000 and said tax shall be based on the latest approved tax rolls of the Issuer, with full allowance being made for tax delinquencies and the cost of tax collection. Said rate and amount of ad valorem tax is hereby levied, and is hereby ordered to be levied, against all taxable property in the Issuer for each year while any of the Bonds or interest thereon are outstanding and unpaid; and said tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Intsrest drid Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of the Bonds, as such interest comes due and such principal matures, are hereby pledged for such payment, within the limit prescribed by law. Section 10. DEFEASANCE OF BONDS. (a) Any Bond and the interest thereon shall be deemed to be paid, retired and no longer outstanding (a "Defeased Bond") within the meaning of this Ordinance, except to the extent provided in subsection (d) of this Section 10, when payment of the principal of such Bond, plus interest thereon to the due date (whether such due date be by reason of maturity, upon redemption, or otherwise) either (i) shall have been made or caused to be made in accordance with the ternu thereof (including the giving of any required notice of redemption), or (ii) shall have been provided for on or before such due date by irrevocably depositing with or making available to the Paying Agent/Registrar for such payment (1) lawful money of the United States of America sufficient to make such payment or (2) Government Obligations which mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money to provide for such payment, and when proper arrangements have been made by the Issuer with the Paying Agent/Registrar for the payment of its services until all Defeased Bonds shall have become due and payable At such time as a Bond shall be deemed to be a Defeased Bond hereunder, as aforesaid, such Bond and the interest thereon shall no longer be secured by, payable from or entitled to the benefits of, the ad valorem taxes herein levied and pledged as provided in this r Ordinance, and such principal and interest shall be payable solely from such money or Government Obligations L (b) Any moneys so deposited with the Paying AgenvRegistrar may at the written direction r • of the Issuer also be invested in Government Obligations, maturing in the amounts and times as { ti hereinbefore set forth, and all income from such Government Obligations received by the Paying Agent/Registrar which is not required for the payment of the Bonds and interest thereon, with respect to which such money has been so deposited, shall be turned over to the Issuer, or deposited as directed in writing by the Issuer. 21 - - - ----aarr.~Y1Wr • • (c) The term "Government Obligations" as used in this Section shall ,near direct obligations of the Ur.;ted States of America, including obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, which may be United States Treasury obligations such as its State and Local Govemment Series, which may be in book entry form. (d) Until all Defeased Bonds shall have become due and payable, the Paying Agent/Registrar shall perform the services of Paying Agent/Registrar for such Defeased Bonds the same as if they had not been defeased, and the Issuer shall make proper arnangcmends to provide and pay for such services as required by this Ordinance. Section 11, DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED BONDS. (a) Replacement Bonds. In the event any outstanding Bond is damaged, mutilat-d, lost, stolen, or destroyed, the Paying Agent/Rogistrar shall cause to be printed, executed, and delivered, a new bond of the same principal amount, maturity, and interest rate, as the damaged, mutilated, lost, stolen, or destroyed Bond, in replacement for such Bond in the manger hereina'ler provided. (b) Application for Replacement Bonds. Application for replacement of damaged, mutilated, lost, stolen, or destroyed Bonds shall be made by the registered owner thereof to the Paying Agent/Registrar. In every case of loss, theft, or destruction of a Bond, the registered owner applying for a replacement bond shall fumi sh to the Issuer and to the Paying Agent/Registrar such security or indemnity as may be required by them to save each of them harmless from any loss or damage with respect thereto Also, in every case of loss, theft, or destruction of a Bond, the registered owner shall furnish to the Issuer and the Paying Agent/Registrar evidence to their satisfaction of the loss, theft, or destruction of such Bond, as the case ma., be. In every case of damage or mutilation of a Bond, the registered owner shall surrender to the Paying Agent/Registrar for cancellation the Bond so damaged or mutilated. (c) No Default Occurred. Notwithstanding the foregoing provisions of this Section, in the event of any such Bond shall have natured, and no default has occurred which is then contineing in the payment of the principal of, redemption premium, if any, or interest on the Bond, the Issuer may authorize the payment of the same (without surrender thereof except in the case of a damaged or mutilated Bond) instead of issuing a replacement Bond, provided security or indemnity is furnished as above provided in this Section. • ; (d) Cirgs for Issuing Replacement Bonds. Prior to the issuance of any replacement bond, the Paying Agent/ik4strar shall charge the registered owner of such Bond with all legal, printing, and other expenses in comtection therewith. Every replacement bond issued pursuant to the provisions of this Section by virtue of the fact that any Bond is lost, stolen, or destroyed shall constitute a contractual obligation of the Issuer whether or not the lost, stolen, or destroyed Bond shall be found at arty time, or be enforceable by anyone, and shall be entitled to all the benefits of this ® Ordinance equally and proportionately with any and all other Bonds duly issued under this Ordinance p p J (e) Authori for Issuing Replacement Bonds. In accordance with Section 6 of Vernon's Ann, Tex Civ. St, Art. 717k-6, this Section of this Ordinance shall constitute authority for the issuance of any such replacement bond without necessity of fwther action by the governing body of 22 • • the Issuer or any other body or person, and the duty of the replacement of such bonds is hereby authorized and Imposed upon the Paying Agent/Registrai, and the Paying Agent/Registrar shall authenticate a,,d deliver such Bonds in the form and manner and with the effect, as provided in Section 6(d) of this Ordinance for Bonds issued in cr eversion and exchange for other Bonds. Section 12. COVENANTS REGARDING TAX-EXEMPTION. The Issuer covenants to refrain from taking any action which would adversely affect, and to take any action required to ensure, the treatment of the Bonds as obligations described in section 103 of the Internal Revenue Code of 1996, w, amended (the "Code"), the interest on which is not includable in the "gross income" of the holder (cr purvoses of federal income taxation. In f inherance thereof, the Issuer covenants as follows (a) to take any action to assure that no more than 10 percent of the proceeds of the Bonds Oess amounts deposited to a reserve fund, if any) are used for any "private business use", as defined in section 141(bx6) of the Code or, if more than 10 percent of the proceeds are so used, that amounts, whether or not received by the Issuer, with respect to such private business use, do not, under the terms of this Ordinance or any underlying arrangement, directly or indirectly, secure or provide for the payment of more than 10 percent of the debt service on the Bonds, in contravention of section 141(b)(2) of the Code; (b) to take any action to assure that in the event that the "private business use" described ;n subsection (a) hereof exceeds 5 percent of the proceeds of the Bonds Oess amounts deposited into a reserve fund, if any) then the amount in excess of 5 percent is used for a "private rosiness use" which is "related" and not "disproportionate", within the meaning of section 1•11(b)(3) of the Code, to the governmental use; J (c) to take any action to assure that no amount which is greater than the lesser of $5,000,000, or 5 percent of the proceeds of the Bonds (less amounts deposited into a reserve fund, if any) is directly or indirectly used to finance loans to persons, other than state or local governmental units, in contravention of section 141(c) of the Code; (d) to refrain from taking any action which would otherwise result in the Bonds being treated as "private activity bonds" within the meaning of section 14l(b) of the Code; (e) to refrain from taking any action that would result in the Bonds being • "federally guaranteed" within the meaning of section 149(b) of the Code; (f) to refrain from using any portion of the proceeds of the Bonds, directly or indirectly, to acquire or to replace funds which were used, directly or indirectly, to acquire investment property (as defined in section 148(bx2) of the Code) which produces a materially higher yield over the term cf the Bonds, other than investment property acquired with • (l) proceeds of the Bonds invested for it reasonable temporary period of • 3 years or less until such proceeds are needed for the purpose for which the Bonds are issued, 23 f i • • (2) amounts invested in a bona fide debt service fund, within the meaning of section 1.148-1(b) of the Treasury Regulations, and (3) amounts deposited in any reasonably required reserve or replacement fund to the extent such amounts do not exceed 10 percent of the stated principal amount (or, in the case of a discount, the issue price) of the Certificates; (g) to otherwise restrict the use of the proceeds of the Bonds or amounts treated as proceeds of the Bonds, as may be necessary, so that the Bonds do not otherwise contravene the requirements of section 148 of the Code (relating to arbitrage), Section 149(g) of the Code (relating to hedge bonds), and, to the extent applicable, section 149(d) of the Code (relating to advance refundings); and (h) to pay to the United States of America at least once during each five-year period (beginning on the dale of delivery of the Bonds) an amount that is at least equal to 90 percent of the "Excess Earnings", within the meaning of section 148(f) of the Code and to pay to the United States of America, not later that 60 days after the Bonds have been paid in full, I! 100 percent of the amount then required to be paid as a result of Excess Earnings under section 148(f) of the Code, f For purposes of the foregoing (a) and (b), the Issuer understands that the term "proceeds" includes "disposition proceeds" as defined in the Treasury Regulations and, in the case of refunding bonds, transferred proceeds (if any) and proceeds of the refunded bonds expended prior to the date of issuance of the Bonds. It is the understanding of the Issuer that the crvenants contained herein are intended to assure compliance with the Code and any regulations or r.:.ings promulgated by the U.S. Department of the Treasury pursuant thereto. In the event that regulations or rulings are hereafter promulgated which modify, or expand provisions of the Code, as applicable to the Bonds, the Issuer will not be required to comply with any covenant contained herein to the extent that such modification er expansion, in the opinion of nationally-recognized bond counsel, will not adversely affect the exemption from federal income taxation of interest on the Bonds under section 103 of the Code. In the event that regulations or rulings are hereafter promulgated which impose additional requirements which are applicable to the Bonds, the Issuer agrees to comply with the additional requirements to the extent necessary, in the opinion of nationally-recognized bond counsel, to preserve the exemption from federal income taxation of interest on the Bonds under section 103 of the Code In furtherance of such intention, the Issuer hereby authorizes and directs the Mayor of • the Issuer to execute any documents, certificates or reports required by the Code and to make such elections, on behalf of the Issuer, which may be permitted by the Code as are consistent with the purpose for the issuance of the Bonds. In order to facilitate compliance with the above covenant (h), a "Rebate Fund" is hereby established by the Issuer for the sole benefit of the United States of America, and such fund shall not • be subject to the claim of any other person, including without limitation, the owners of the • O Certificates. The Rebate Fund is established for the additional purpose of compliance with Section 148 of the Code. 24 i • • Section 13. ALLOCATION OF, AND LIMITATION ON, EXPENDITURES FOR THE PROJECT. The Issuer covenants to account for the expenditure of sale proceeds and investment earn~ngs to be used for the purposes described in Section I of this Ordinance (each such purpose referred to herein and Section 1 hereof as a "Project") on its books and records by allocating proceeds to expenditures within 19 months of the later of the date that (1) the expenditure is made, or (2) the Project is completed. The foregoing notwithstanding, the Issuer shall not exp-nd We proceeds or investment earnings thereon more than 60 days after the later of (1) the fifth anniversary of the delivery of the Bonds, or (2) the date the Bonds are retired, unless the Issuer obtains an opinion of nationally-recognized bond counsel that such expenditure will not adversely affect the tax-exempt status of the Bonds Section 14. DISPOSITION OF PROJECT. The Issuer covwnts that the property constituting the Project will not be sold or otherwise disposed in a transaction resulting in the receipt by the Issuer of cash or other compensation, unless the Issuer obtains an opinion of nationally- recognized bond counsel that such We or other disposition will not adversely affect the tax-exempt status of the Bonds. Section 15. CUSTODY, APPROVAL, AND REGISTRATION OF BONDS; BOND COUNSEL'S OPINION, CUSIP NUMBERS, PREAMBLE AND INSURANCE. The Mayor of the Issuer is hereby authorized to have control of the Initial Bond issued hereunder and all necessary records and proceedings pertaining to the Initial Bond pending its delivery and its investigation, examination, and approval by the Attorney General of the State of Texas, and its registration by the Comptroller of Public Accounts of the State of Texas. Upon registration of the Initial Bond said Comptroller of Public Accounts (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate on the Initial Bond, and the seal of said Comptroller shall be impressed, or placed in facsimile, on the Initial Bond. The approving legal opinion of the Issuer's Bond Counsel and the assigned CUSIP numbers may, at the option of the Issuer, be printed on the Initial Bond or on any Bonds issued and delivered in con ersion of and exchange or replacement of any Bond, but neither shall have any legal effect, and shall be solely for the convenience and information of the registered owners of the Bonds. The preamble to this Ordinance is hereby adopted and made a pan hereof for all purposes. If insurance is obtained on any of the Bonds, the Initial Bond and all other Bonds shall bear an appropriate legend concerning insurance as provided by the insurer. Section 16 SALE OF INITIAL BOND. The Initial Bond is hereby sold and shall be delivered to for cash for the par value thereof and accrued interest thereon to date of delivery, plus a premium of $ . It r is hereby officially found, determined, and declared that the Initial Bond has been sold at public sale to the bidder offering the lowest interest cost, after receiving scaled bids pursuant to an Official Notice of Sale and Bidding Instructions and Official Statement dated . 1497, prepared and distributed in connection with the sale of the Initial Bond. Said Official Notice of Sale and Bidding • Instructions and Official Statement, and any addenda, supplement, or amendment thereto have been ® 0 and are hereby approved by the Issuer, and their use in the offer and We of the Bonds is hereby ap- proved. It is further officially found, determined, and declared that the statements and representations contained in said Official Notice of Sale and Official Statement are true and correct in all material respects, to the best knowledge and belief of the City Council. 25 1 • • Section 17. INTEREST EARNINGS ON BOND PROCEEDS. Interest earnings derived from the investment of proceeds from the We of the Initial Bond shall be used along with other bond proceeds for the acquisition and construction of the improvements for which the Bonds are issued, provided that after completion of such improvements, if any of such interest earrings remain on hand, such interest earnings shall be deposited in the Interest and Sinking Fund. It is further provided, however, that any interest earnings on bond proceeds which are required to be rebated to the United States of America pursuant to Section 12 hereof in order to prevent the Bonds from being arbitrage bonds shall be so rebated and not considered as interest earnings for the purposes of this Section. Section 18. DTC REGISTRATION. The Bonds initially shall be issued and delivered in such manner that no physical distribution of the Bonds will be made to the public, and the Depository Trust Company ("DTC"), New York, New York, initially will act as depository for the Bonds. DTC has represented that it is a limited purpose trust company incorporated under the laws of the State of New York, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered under Section 17A of the federal Securities Exchange Act of 1934, as amended, and the Issuer accepts, but in no way verifies, such representations. The Initial Bond authorized by this Ordinance shall be delivered to and registered in the name of the Purchaser. However, it is a condition of delivery and sale that the Purchaser, immediately after such delivery, shall cause the Paying Agent/Registrar, as provided for in this Ordinance, to cancel said Initial Bond and deliver in exchange therefor a substitute Bond for each maturity of such Initial Bond, with each such substitute Bond to be registered in the name of CEDE & CO., the nominee of DTC, and it shall be the duty of the Paying Agent/Registrar to take such action. It is expected that DTC will hold the Bonds on behalf of the Purchaser and/or The DTC Participants, as defined and described in the Official Statement referred to and approved in Section 16 hereof (the "DTC Participants"). So long as each Bond is registered in the name of CEDE & CO., the Paying Agent/Registrar shall treat and deal with DTC in all respects the same as if it were the actual and beneficial owner thereof It is expected that DTC will maintain a book entry system which will identify beneficial ownership of the Bonds by DTC Participants in integral amounts of $5,000, with transfers of ownership being effected on the records of DTC and the DTC Participants pursuant to rules and regulations established by them, and that the substitute Bonds initially deposited with DTC shall be immobilized and not be further exchanged for substitute Bonds except as hereinafter provided. The Issuer is not responsible or liable for any functions of DTC, will not be responsible for paying any fees or charges with respect to its services, will not be responsible or liable for maintaining, supervising, or reviewing the records of DTC or the DTC Participants, or protecting any interests or rights of the beneficial owners of the Bonds. It shall be the duty of the Purchaser and the e DTC Participants to make all arrangements with DTC to establish this book-entry system, the beneficial ownership of the Bonds, and the method of paying the fees and charges of DTC. The Issuer does not represent, nor does it in any way covenant that the initial book-entry system established with DTC will be maintained in the future The Issuer reserves the right and option at any time in the future, in its sole discretion, to terminate the DTC (CEDE & CO.) book-entry only regis. tration requirement described above, and to permit the Bonds to be registered in the name of any e owner. If the Issuer exercises its right and option to terminate such requirement, it shall give written H notice of such termination to the Paying Agent/ Registrar and to DTC, and thereafter the Paying Agent/Registrar shall, upon presentation and proper request, register any Bond in any name aS provided for in this Ordinance. Notwithstanding the initial establishment of the foregoing book-entry system with DTC, if for any reason any of the originally delivered substitute Bonds is duly filed with 26 t { • • the Paying Agent/Registrar with proper request for transfer and substitution, as provided for in this Ordinance, substitute Bonds will be duly delivered as provided in this Ordinance, and there will be no assurance or representation that any book-entry system will be maintained for such Bonds. Section 19, CONTINUING DISCLOSURE. (a) Annual RepQL (i) The Issuer shall provide PrtnualIy to each NRMSIR and any SID, within six months after the end of each fiscal year ending in or after 1997, financial information and operating data with respect to the Issuer of the general type included in the final Official Statement authorized by Section 16 of this Ordinance, being the information described in Exhibit A hereto, which Exhibit is attached to and incorporated in this Ordirance as if written word for word herein. Any financial statements so to be provided shall be (1) prepared in accordance with the accounting principles described in Exhibit A hereto, or such other accounting principles as the Issuer may be required to employ from time to time pursuant to state law or regulation, and (2) audited, if the Issuer commissions an audit of such statements and the audit is completed within the period during which they must be provided. If the audit of such financial statements is not complete within such period, then the Issuer shall provide unaudited financial statements by the required time and will provide audited financial statements for the applicable fiscal year to each NRMSIR and any SID, when and if the audit report on such statements become available. (ii) If the Issuer changes its fiscal year, it will notify each NRMSIR and any SID of the j change (and of the date of the new fiscal year end) prior to the next date by which the Issuer otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to each NRMSIR and any SID or filed with the SEC. (b) Material Event Notices. The Issuer shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any of the following events with respect to the Bonds, if such event is material within the meaning of the federal securities laws: - 1. Principal and interest pr.-- delinquencies; 1 Non-payment related defaults; • 3. Unscheduled draws on debt service reserves reflecting financial difficulties; ` 4. Unscheduled draws on credit enhancements reflecting financial difficulties; ' 5. Substitution of credit or liquidity providers, or their failure to perform; • 6. Adverse tax opinions or events affecting the tax-exempt status of the Bonds; t ' • 7. Modifications to rights of holders of the Bonds; v 8. Bond calls; 27 • 9. Defeasances, 10. Release, substitution, or sale of property securing repayment of the Bonds; and H. Rating changes. The issuer shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any failure by the Issuer to provide financial information or operating data in accordance with subsection (a) of this Section by the time required by such subsection. (c) Limitations. Disclaimers, and Amendments. (i) The Issuer shall be obligated to observe and perform the covenants specified in this Section for so long is, but rnly for so long as, the Issuer remains an "obligated person" with respect to the Bonds within the meaning of the Rule, except that the Issuer in any event will give the notice required by Subsection (b) hereof of any Bond calls and defeasance that cause the Issuer to no longer be such an "obligated person". (ii) The provisions of this Section are for the sole benefit of the registered owners and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The Issuer undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the Q Issuer's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein The Issuer does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. (iii) UNDER NO CIRCUMSTANCES SHALL THE ISSUER BE LIABLE TO THE REGISTERED OWNER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE ISSUER, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. • (iv) No default by the Issuer in observing or performing its obligations under this .:.-ction shall comprise a breach of or default under the Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the Issuer under federal and state securities laws. (v) The ProvWons of this Section may be amended by the Issuer from time to time to adapt • t'1 • to changed circumstances that arise from a change in legal requirements, a charge in law, or a change in the identity, nature, status, or type of operations of the Issuer, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account any amendments or 28 I~ ~.3 nrrra i ' e e interpretations of the Rule since such offering as well as such changed circumstances and (2) either (a) the registered owners of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the outstanding Bonds consent to such amendment or (b) a person that is unaffiliated with the Issuer (such as nationally recognized bond counsel) determined that such amendment will not materially impair the interest of the registered owners and beneficial owners of the Bonds If the Issuer so amends the provisions of this Section, it shall include with any amended financial information or operating data next provided in accordance with subsection (a) of this Section an explanation, in narrative form, of the reason for the amendment and of the impact of any change in the type of financial information or operating data so provided. The Issuer may also amend or repeal the provisions of this continuing disclosure agreement if the SEC amends or repeals the applicable provision of the Rule or a court of final jurisdiction enters judgment that such provisions of the Rule are invalid, but only if and to the extent that the provisions of this sentence wauld not prevent an underwriter from lawfully purchasing or selling Bonds in the primary offering of the Bonds (d) Definitions. As used in this Section, the following tams have the meanings ascribed to such terms below: WSW means the Municipal Securities Rulemaking Board "NRMSIR" means each person whom the SEC or its staff has determined to be a nationally recognized municipal securities information repository within the meaning of the Rule from time to time. "Rule" means SEC Rule 15c2-12, as amended from time to time. ~J "SEC" means the United States Securities and Exchange Commission. "SID" means any person designated by the State of Texas or an authorized department, officer, or agency thereof as, and determined by the SEC or its staff to be, a state information depository within the meaning of the Rule from time to time. Section 20. FURTHER PROCEDURES The Mayor of the Issuer, the City Secretary of the Issuer, and all other officers, employees, and agents of the Issuer, and each of them, shall be and they are hereby expressly authorized, empowered, and directed from time to time and at any time to do e and perform all such acts and things and to execute, acknowledge, and deliver in the name and under the corporate seal and on behalf of the Issuer all such instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Bond Ordi- nance, the Bonds, the sale of the Bonds, and the Notice of Sale and Official Statement; and the Director of Finance of the City shall cause the expenses of issuance of the Bonds to be paid from the ` proceeds of sale of the Initial Bond or from any other lawfully available funds of the Issuer. In case e any officer whose signature shall appear on any Bond shall cease to be such officer before the delivery of such Bond, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. f 29 i sa e Section 21. OPEN MEETINGS. The City Council has found and determined that the meeting at which this Ordinance is considered is open to the public and that notice thereof was given in accordance with the provisions of the Texas Open Meetings, Law, Tex. Gov't. Code, Chapter 551, as amended. Section 22. EFFECTIVE DATE. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the I Sth, day of April, 1997. t lack Miller, Mayor ATTEST: Jennifer Walters, City Secretary By: APPROVED AS TO LEGAL FORM: Herbert I . Prouty, City Attorney By: e J 30 _ i i.- ••-r day 9 'I. I ~ ~ • N'. r i~ „`,i , l ~ ' t, '1 SY F. :.t ~~w.r 1 • i • 1 EXHIBIT A DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 19 of this Ordinance: Annual Financial Statements and Operating Data The financial information and operating data with respect to the Issuer to be provided ann,utlly in accordance with such Section are as specified (and included in the Apppidix or under the tables c f the Official Statement referred to) below: Tables numbered I through 14, inclusive, under the captions "Tax Information", "Debt Service Requirements" and "Financial Information" in the Official Statement. Appendix B in the Official Statement. Accounting Principles The accounting principlm referred to in such Section are the accounting principles described in the notes to the financial statements referred to in the paragraph above. s . r_. s r :r . AGENDA CITY OF DENTON CITY COUNCIL April 15, 1997 Closed Meeting of the City of Denton City Council on Tuesday, April 15, 1997 at 5:45 p.m. in the Civil Defense Room of City Hall, 215 E. McKinney, Denton, Texas, at which the following items will he considered: NOTE: THE CITY COUNCIL. RESERVES THE RIGHT TO ADJOURN INTO CEASED h1FETING AT ANY TIME REGARDING ANY ITEM FOR WHICH IT IS LEGALLY PERMISSIBLE. 1. Closed Meeting: A. Legal Matters Under TEX. GOVT CODE Sec. 551.071 1. Discuss and consider settlement of litigation styled Yaoit v. City of Denton. B. Real Estate Under TEX. GOVT CODE Sec. 551.072 C. Personnel/Board Appointments Under TEX. GOVT CODE Sec. 551.074 Regular Meeting of the City of Denton City Council on Tuesday, April 15, 1997 at 7:00 p.m, in the Council Chambers of City Hall, 215 F. IyIcKinney, Denton, Texas at which the following items will he considered: L Pledge of Allegiance wD A. U.S. Flag A. Texas Flag "Honor the Texas Flag - I pledge allegiance to thee, Texas, one and indivisible." 2. Consider approval of the minutes of February 4, February 11, and February 18, 1997. 3. Presentation of the Tree City U.S.A. Award and the Growth Award from the National Arbor Day Foundation. 4. Consider an exception to the noise ordinance for the American Cancer Society's Relay for Life from 7:00 p,m., April 18, 1997 until 7:00 a.m., April 19, 1997 at Fouts Field. CITIZEN REPORTS 5. Michael Berry regarding raw sewage standing in residential street. 6. Brandy Bracken regarding septic, water, and road problems on Carpenter Road, O II 7. Dessie Goodson regarding City matters. I f Cam, • • • f City of Denton City Council Agenda April 15, 1997 Page 2 PUBLIC HEARINGS 8. Public hearing and consider adoption of an ordinance to rezone 20.017 acres from the Agricultural (A) zoning district to the Single Family 10 (SF-10) and Single Family 7 (SF-7) zoning districts. This tract is located on the north side of Ryan Road, approximately 100 feet east of La Mancha Drive. (Z97-005) (The Planning and Zoning Commission recommends approval 7-0.) 9, Public hearing and consider adoption of an ordinance rezoning 735.89 acres from Planned Development 126 to the Agricultural (A) zoning district. The subject property is located from 1,500 feet south of US 380 to 3,800 feet south of McKinney Street, approximately 6,000 feet east of Mayhill Road. (The Planning and Zoning Commission recommends approval 6-0.) 10. Public hearing and consider adoption of an ordinance amending Ordinance 83-110 (PD63) to reduce the required front yard setback from 25 feet to 24.3 feet for Lot 1, Block 2, of the Snider Addition Section 2. The subject property is located on the north sid.. of US 377, west of Windsor. (The Planning and Zoning Commission recommends approval 6-0.) VARIANCES 11. Lxaction variance of Section 34-119 requiring water and sewer service for the IXC Subdivision. The subject property is in Division I of the ET) on the north side of Milam Road, approximately 2,299 feet west of 1-35, and consists of 0.327 acres. (The Planning and Zoning Commission recommends appro,a] 6-0.) 12. Exaction variance of Section 34-116 (e) requiring adequate water capacity for fire protection for the IXC Subdivision. The subject property is in Division 1 of the ETJ on the north side of Milan Road, approximately 2,299 feet west of I-35, and consists of 0.327 acres. (The Planning and Zoning Commission recommends approval 6-0.) 13. Exaction variance of Section 34-116 (c) requiring fire hydrants for the IXC Subdivision. The subject property is in Division 1 of the ET) on the north side of Milam Road, approximately 2,299 feet west of 1-35, and consists of 0.327 acres. (The Planning and Zoning Commission • recommends approval 6-0.) 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 t 0 his designee to implement each item in accordance with the Staff recommendations. The City Council • • has received background information and has had an opportunity is raise questions regarding these items prior to consideration. Listed below are bids and purchase orders to be approved for payment under the Ordinance section of the agenda. Detailed back-up information is attached to the ordinances (Agenda items 14-22). This listing is provided on the Consent Agenda to allow Council Members to discuss or withdraw an • • City of Denton City Council Agenda April 15, 1997 Page 3 item prior to approval of the Consent Agenda. If no items are pulled, Consent Agenda Items 14-22 below will be approved with one motion. 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 shall then be considered before approval of the Consent Agenda. 14. Tax refund to First State Bank for $602.47. 15. Tax refund to Andrew Corporation for $2,326.28. 16. Ordinance accepting competitive bids and awarding a contract for the purchase of materials, equipment, supplies or services. (Bid #2026 - Oils and Lubricants) 17. Ordinance accepting competitive bids and awarding a contract for the purchase of materials, equipment, supplies or services. (Bid #2028 - Irrigation supplies/South Lakes Park) 18. Ordinance accepting competitive bids and providing for the award of contracts for public works or improvements. (Bid #2009 - Laurelwood 8" waterline) 19. Ordinance awarding a contract for the purchase of materials, equipment, supplies or services by the State. ([ease Agreement #2045 - IBM) R 20. Ordinance amending Ordinance No. 97-052 by changing the rate, type of service and payment J provisions on rate schedule CWM in connection with the sale of compost and wood mulch by the Water Reclamation Division of the Wastewater Department of the City of Denton to the general public. 21. Ordinance amending Chapters 13 and 14 of the Code of Ordinances to replace references to the Division of Environmental Health Services with the Division of Consumer Health. 22. Ordinance authorizing the City Manager to execute an interlocal agreement for a solid waste project pertaining to the construction of a landfill recycling drop-off facility, between the City and the North Central Texas Council of Governments; authorizing the City to accept a grant from the Texas Natural Resource Conservation Commission through a subcontract with the • North Central Texas Council of Governments; and authorizing the City Manager to expend matching funds related thereto. ITEMS FOR INDIVIDUAL CQ\SIDERATION 23, Ordinance approving the creation of the Spring [fill Estates Water System within the City's ETJ • in accordance with Section 34-119 of the Denton City Code and the terms and conditions of the I ® • attached agreement; authorizing the Mayor to execute an agreement between Spring Hill Estates Water Company, Tryon Development Corporation and the City. 24. Ordinance authorizing the City Manager to execute an agreement with the State of Texas, acting through the Texas Department of Transportation for contribution of funds for the reconstruction of U. S. Highway 377 between Interstate Highway 35E and Collins Street. • • f City of Denton City Council Agenda April 15, 1997 Page 4 25. Ordinance authorizing the Mayor to execute the first amendment to an agreement between the City of Denton and SPAN, Inc., relating to public transportation in the City. j 26. Ordinance authorizing the Mayor to execute an electric distribution system maintenance and operation agreement by and between the City of Denton and the City of Sanger, wherein the City of Denton Municipal Electric Utility will perform services relating to the maintenance and operation of the electric distribution system of the City of Sanger. 27. Resolution appointing a member to the Board of Directors of the Denton Health Facilities Development Corporation. 28. Resolution appointing a member to the Board of Directors of t!ie Denton Retirement and Nursing Center Finance Authority. 29. Resolution authorizing the submission of an appluation to the Criminal Justice Division of the Office of the Governor, State of Texas, requesting con.i*nued funding for one Juvenile/Domestic J Violence Investigator and associated training and supplies for a Family Services Unit, 30. Resolution of the City of Denton expressing City Council's opposition to House Bill 3321 which requires donation of public right-of-way to private investor owned telecommunication companies. 31. Ordinance authorizing City Manager to execute an airport lease agreement between the City of Denton and Fox 51 Limited which amends the existing fixed based operator and commercial airport leases between the parties and incorporates the terms of such leases into one new lease. 32. Resolution approving the assignment by Fox 51 Limited of an airport lease agreement to Ezell Aviation, Inc., said property consisting of a fixed based operator lease of 56,300 square feet and the commercial lease of 178,918 square feet, 33. Miscellaneous matters from the City .Manager. 34. Official Action on Closed Meeting Items: A. Legal Matters B. Real Estate C. Personnel ' D. Board Appointments 35. New Business ti- This item provides a section for Council Members to suggest items for future agendas. • i i • i City of Denton City Council Agenda April 15, 1997 Page 5 36. Possible Continuation of Closed Meeting: A. Legal Matters Under TEX. GOV'T CODE Sec. 551.071 B. Real Estate Under TEX. GOV'T CODE Sec. 551.072 1 C. Personnel/Board Appointments Under TEX. GOV'T CODE Sec. 551.074 CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the day of , 1997 at o'clock (a.m.) (p.m.) CITY SECRETARY I NOTE: THE CITY OF DENTON CITY COUNCIL CHAMBERS IS ACCESSIBLE IN J ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 566-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY , CALLING 1-800-RELAY-TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. ACCO0379 S 4 i i j I rr 0 it • • Agenda No, Agenda Item oZ Date /S -97 CITY OF DENTON CITY COUNCIL MINUTES February 4, 1997 The council convened into a Closed Meeting on Tuesday, February 4, 1997 at 5:45 p.m. In the Civil Defense Room of City Hall. PRESENT: Mayor Miller; Mayor Pro Tem Brock; Council Members Beasley, Biles, Cott, Durrance, and Young. ABSENT: None II 1. Council considered the following items in Closed Meeting: A. Legal Matters Under TEX. GOVT CODE Sec. 551'.071 B. Real Estate Under TEX. GOVT CODE Sec. 551.072 C. Personnel/Board Appointments Under TEX. GOVT CODE Sec. 551.074 The Council convened into a Regular Meeting on Tuesday, February 4, 1997 at 7:00 p.m. in the Council Chambers of City Hall. . PRESENT: Mayor Miller; Mayor Pro Tem Brock; Council Members Beasley, Biles, Cott, Durrance, and Young. ABSENT: None i~ 1. Pledge of Allegiance i The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. 2. The Council considered approval of the minutes of December 3 and December 17, 1996. Council Member Beasley noted that on page 13 of the December 3rd meeting, the vote was 5-1 but indicated that it was passed unanimously. She requested a correction that the vote was unanimous. • Brock motioned, Biles seconded to approve the minutes as corrected. on roll vote, Beasley "aye", Brock "aye", Cott "aye", Durrance , "aye", Young "aye", Biles "aye" and Mayor Miller "aye". Motion carried unanimously. Mayor Miller presented the Yard of the Month awards: • Godfrey's Place Inn Bob and Loretta Norton J. F. Kobler Downtown Business Award - Campus Theatre i I O i • I City of Denton City Council Minutes February 4, 1997 Page 2 CITIZEN REPORTS 3. The Council received a citizen report from Willie Hudspeth regarding drainage problem north of 623 Newton. Mr. Hudspeth stated that he built a home at 623 Newton and had to give an easement for drainage because the City would not give approval to build the home on the property without the easement. If the easement was going to be used and enforced, he would be protected. His attorney had indicated tc him that that was 'not the case. The City and the County determined that water needed to go through the creek behind his property. A wide trench was made to collect the water from McKinney, all of the water from the buildings and concrete surrounding the new courthouse, all of the water from the Sho riff's department, all of the water from the entire area was directed into one area. Right now the water was 50 feet from his home which he knew would be the case. He had planned for the water to come 50' from his home. When the water came in now, from what thv< City allowed to be built in the area, it would- be blocked from the buildings and blocking it up even more to his home. It would put a great deal of water on his property. He had asked that the water be drained further east where it had been draining in the past. He was told that that could not happen. He felt he would lose his home in a heavy rain with flooding because of the building of the County facility. The flooding would also erode his property. He had asked the City earlier to not kill his 50 year old tree which he was ignored and now the tree was dead. He asked the Council to not ignore this area of the City. Mayor Miller stated that Council would ask for a report on the issue. Council Member Young asked how far the water was on his property after the last heavy rain. Hudspeth replied that the water was 50 feet before the ditch was A added. Council Member Young asked if there was money in the CIP for work in that channel. Rick Svehla, Deputy City Manager, stated that there were funds for Pecan creek but most was upstream from Ruddell. • Council Member Young stated that. there were no funds for J improvements in that area of the channel. Svehla replied no that it was all upstream from Ruddell and the Hudspeth property was downstream from the Rladdell Street bridge. 0 • _ I City of Denton City Council Minutes February 4, 1997 Page 3 Council Member Young asked if there was any way to move the project up in the CIP. svehla replied only if the oversight Committee recommended that it be moved up on the list and the Council made that decision. PUBLIC HEARINGS 4. The council held a public hearing and considered adoption of an ordinance rezoning 128.418 acres from Planned Development 118 to the Single Family 16 (SF-16) zoning district. The subject property was located southeast of the intersection of US 377 and Brush Creek Road. (The Planning and Zoning Commission recommended approval 6- 0.) Rick Svehla, Deputy City Manager, stated that the first planned development approved for this property was in 1986 for mixed uses including single family, multi-family, a private school and general retail. In 1994, the planned development was changed to single- farily with 11,000 square foot lots with a nine hole golf course. This proposal originally was for 148 acres with approximately 20 acres for commercial zoning. When the petitioner was given the staff back-up which recommended denial based on the commercial zoning, he withdrew the commercial zoning. The zoning was for SF- 16 zoning with the lots using septic systems with a minimum one acre net lots. The Mayor opened the public hearing. Tim House, representing the developer, stated that originally they had requested 128 acres of SF-16 and 20 acres of commercial zoning along Highway 377. The purpose of the commercial was not because of commercial intentions but felt that it would be an appropriate buffer between the Highway and the estate homes. When it was realized that that was not in compliance with staff's wishes, that application was withdrawn. The previous owner's plans were for a • higher density residential development along with nine holes of golf. That plan failed and the property was listed for sale. The intent was for one acre minimum size lots with the preliminary plat showing an average lot size of 1.6 acres. The SF-16 zoning was requested because the lots backing up the golf course were too large for agricultural zoning. Council :Member Young asked if the proposal would be using city ~ • 0 water. House replied yes that it would originate in Argyle but would be coordinated through Denton. Council Member Young asked about streets and sidewalks. - c. • • i I City of Denton City Council Minutes February 4, 1997 Page 4 House replied that the street would be built according to standards but that they would be asking for a variance with sidewalks as it would detract from the rural estate concept for the subdivision. No one spoke in opposition. The Mayor closed the public hearing. The following ordinance was considered: NO. 97-027 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A CHANGE FROM PLANNED DEVELOPMENT 118 (PD-118) TO THE SINGLE FAMILY 16 (SF-16) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION FOR 128.418 ACRES LOCATED SOUTHEAST OF THE INTERSECTION OF US 377 AND BRUSH CREEK ROAD; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS i THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. Cott motioned, Young seconded to adopt the ordinance. On roll vote, Beasley "aye", Brock "aye", Cott "aye", Durrance "aye", Young "aye", Hiles "aye" and Mayor Miller "aye". Motion carried unanimously. 5. The Council was to hold a public hearing and consider adoption of an ordinance for a specific Use Permit for Delta Lodge, Inc. The subject property was in the General Retail (GR) zoning district and was located on the southwest corner of Oak and Fry Streets. (The Planning and zoning commission recommended approval 5-2.) Mayor Miller indicated that he had a letter from the petitioner asking to have this item postponed. If approved by Council this item would not be considered at this meeting and would have to be renoticed in the newspaper. Young motioned, Cott seconded to postpone this item. On roll vote, • Beasley "aye", Brock "aye", Cott "aye", Durrance "aye", Young "aye", Biles "aye" and Mayor Miller "aye". Motion carried unanimously. 6. The Council held a public hearing and considered adoption of ` an ordinance rezoning 0.23 aces from the General Retail (GR) zoning • district to the Single Family 7 (SF-7) zoning district. The • • subject property was located on the north side of Scripture, between Lovell and Bryan. (The Planning and Zoning Commission recommended approval 6-1.) Rick Svehla, Deputy City Managfr, stated that the Planning and zoning commission had recommended approval of this proposal. The • City of Denton City Council Minutes February 4, 1997 Page 5 area was zoned general retail in 1969. Over the years the property was used as a day care facility which was allowed in general retail zoning. The current owners would like to change the zoning to allow for a residence. Under the current zoning ordinance, residential uses were not allowed in commercial zoning. Because of the amount of opposition, the 20% rule was in effect which required a 6-1 minimum vote. The Mayor opened the public hearing. Jim McKissick stated that this was a home with homes on both sides of the property. The original zoning was residential and the owners of the property wanted to live in the house. Council Member Biles stated that there were current residences on both sides of the proposed property. McKissack replied correct. Council Member Biles stated that if the proposed property went back to residential, there would be four residential uses in a row which would be most of that block for residential. McKissick replied correct. Myron Hargrove stated that he and his wife had owned the property for approximately two years. He felt the recommended zoning was a good and proper use. The property was in close proximity to the University. The Planning and Zoning Commission approved 6-1 for the change in zoning. There were single family residences on both sides of the property. Rob Raynor stated that he was in opposition to the proposed zoning. The surrounding areas were developed by medical facilities and the neighborhood was a general retail neighborhood. Single family zoning was objectionable for three reasons. one was that the • landscape ordinances which were designed to protect residential zoning would be activated. The existing general retail neighbors, if they wanted to do something with their property, would have to abide by those rules. Any new construction abutting this tract would be subject to the setback design used to protect residential zoning. The market values of the property in this area were based on general retail values. By allowing this residential intrusion, the value of the area would be lowered such as the additional • screening costs associated with residential zoning. He requested • that the Council keep the zoning as it had been since 1969. The Mayor closed the public hearing. • • City of Denton City Council Minutes February 4, 1997 Page 6 Mayor Pry Brock asked that if the property became residential and there was a family living there, would the surrounding neighbors be required to make changes right away. Svehla replied no. Those changes would be required only as changes were made to the adjacent lots. This proposal was necessary because at one time the property was a home, then became a day care and now the owners wanted to change it back to a residence. If the owners of the adjacent lots wanted to expand, they would have to build a fence and any improvement would have to stay 10 feet from the property line. Council member Biles stated that this was one of four residential structures facing Scripture. The other three were presently occupied as single family residerces. Only the commercial establishments would be subject to the requirement of fences, etc. Svehla replied no that if those residences made alterations or additions they would be changing the non-conforming uses and would-- have to have a change in zoning to residential. Council Member Biles asked if staff was aware of any changes to the properties on the north side of the property line. Svehla replied that there had been no changes. The owner of that property had been at the Planning and Zoning Commission meeting and had indicated that there were no definite plans at this point in time. Council Member Young asked if any of the homes in the area could be used for businesses. Svehla replied correct as they were in the proper zoning. Brock motioned to approve request. This was an area which was zoned general retail many years ago. The area was fragile and valuable with much history and there was a need to maintain diversity in area. Biles seconded the motion and agreed with the observations that it was a unique neighborhood. This current zoning was a catch-all which was done with cumulative zoning. Council Member Beasley noted all of the different zoning in the ® area. Although there were retail uses in area, she still agreed • • that it would make a nice area of single family homes. Council Member Cott stated that over time, commercial establishments were required to meet conditions of the local neighborhood. He would be opposing the motion. i City of Denton City Council Minutes February 4, 1997 Page 7 on roll vote, Beasley "aye", Brock "aye", Cott "nay", Durrance "aye", Young "nay", Biles "aye" and Mayor Miller "aye". Motion failed with a 5-2 vote as and six affirmative votes were needed. VARIANCE8 7. The Council considered exaction variances to Section 34-116 (e), pertaining to fire flow and Section 34-116 (c) pertaining to fire hydrants. This 19.118 acre tract was located in Division one of the City of Denton's extraterritorial jurisdiction on the northeast corner of F.M. 3163 and Trietsch Road. (Milam Ridge) (The Planning and Zoning Commission recommended approval 6-0.) Rick Svehla, Deputy City Manager, stated that the petitioner was requesting variances for fire hydrants and for fire flow. The cost for these improvements would be in excess of the value of improvements. The Council had granted similar variances on property located across the road. Beasley motioned, Brock seconded to approve the variances. On roll. voto, Beasley "aye", Brock "aye", Cott "aye", Durrance "aye", Young "aye", Biles "aye" and Mayor Miller "aye". Motion carried unanimously. } CONSENT AGENDA Mayor Miller asked that Item Ill be pulled from consideration and asked the City Attorney to work with Purchasing Department for more background information. Brock motioned, Durrance seconded to approve the Consent Agenda and associated ordinances with the exception of Item Ill. On roll vote, Beasley "aye", Brock "aye", Cott "aye", Durrance "aye", Young "nay", Hiles "aye" and Mayor Miller "aye". Motion carried with a 6-1 vote. . B. Considered approval of a tax refund to Fawn R. Conger for $507.60. 9. NO. 97-028 AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. (Bid 11973 - Office + 0 Supplies) J f • r • I ' City of Denton City Council Minutes February 4, 1997 Page S 10. NO. 97-029 AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. (Bid 01985 - Computer and Facsimile Supplies) 12. NO. 97-030 AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. (Bid 11990 - Cellular Service) 13. NO. 97-031 AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. (Bid 11993 - Track Loader 2.4 CU YD) 14. NO. 97-032 AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND PROVIDING FOR THE AWARD OF CONTRACTS FOR PUBLIC WORKS OR IMPROVEMENTS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. (Bid 01991 - Demolition and Clearing 126) 15. NO. 97-033 AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE EXPENDITURE OF FUNDS FOR THE PURPOSE OF PAYMENT BY THE CITY • FOR FEES TO FIRST SOUTHWEST COMPANY; AND PROVIDING AN EFFECTIVE DATE. i E 16. NO. 97-034 AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE 0 EXPENDITURE OF FUNDS FOR THE PURPOSE OF PAYMENT BY THE CITY 0 • j FOR ADMINISTRATIVE FEES AND PARTICIPATION TO UPPER TRINITY J/I REGIONAL WATER DISTRICT (UTRWD); AND PROVIDING AN EFFECTIVE DATE. rte, AM. 0 City of Denton City Council Minutes February 4, 1997 Page 9 17. NO. 97-035 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCAL ADDENDUM TO A CONTRACT BETWEEN THE CITY OF DENTON AAID THE UPPER TRINITY REGIONAL WATER DISTRICT FOR WATER TREATMENT AND TRANSMISSION SERVICES; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. 18. NO. 97-036 K4 ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCAL ADDENDUM TO JOINT OWNERSHIP AND OPERATIONS CONTRACT BETWEEN THE CITY OF DENTON AND UPPER TRINITY REGIONAL WATER DISTRICT REGARDING PARTICIPATION IN THE SANGER TRANSMISSION LINE; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. 19. NO. 97-037 AN ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE UNIVERSITY OF NORTH TEXAS TO PROVIDE FUNDING TO THE UNIVERSITY OF NORTH TEXAS VISUALIZATION LABORATORY; AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT; APPROVING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. ITEMS FOR INDIVIDUAL CONSIDERATION 20. Ordinance designating a loading zone for school buses and parents on the south side of Hanover street for Woodrow Wilson Elementary School. (The Traffic safety commission recommended approval.) Rick Svehla, Deputy City Manager, stated that this request was for a loading zone for parent pick-up and drop-off of students at O Woodrow Wilson Elementary School. The Traffic Safety Commission recommended approval. The following ordinance was considered: ` NO. 97-038 1 AN ORDINANCE OF THE CITY OF DENTON, TEXAS DESIGNATING A O LOADING ZONE FOR SCHOOL BUSES AND PARENTS ON THE SOUTH SIDE OF HANOVER STREET FOR WOODROW WILSON ELEMENTARY SCHOOL; PROVIDING A SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY NOT TO EXCEED TWO HUNDRED DOLLARS; AND DECLARING AN EFFECTIVE DATE. 0 -7 .1 • • City of Denton City Council Minutes February 4, 1997 Page 10 Biles motioned, Young seconded to adopt. On roll vote, Beasley "aye", Brock "aye", Cott "aye", Durrance "aye", Young "aye", Biles "aye" and Mayor Miller "aye". Motion carried unanimously. 21. Ordinance authorizing the City Manager to execute an interlocal cooperative memorandum of agreement between the City of Argyle and City of Denton relating to common Wastewater Certificate of Convenience and Necessity areas and providing for dual wastewater certification for two overlay areas. Bob Nelson, Executive Director for Utilities, stated that this request would authorize an interlocal agreement with Argyle to allow dual certification for wastewater in two small areas along the south boundary of the City. Denton had worked with Argyle and all were in agreement with the proposal. Council Member Biles asked why the City was not withdrawing its certification. Nelson stated that the City would do that at a later date and it would be done in conjunction with another case. The following ordinance was considered: NO. 97-039 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTEP-LOCAL COOPERATIVE MEMORANDUM OF AGREEMENT BETWEEN THE CITY OF ARGYLE, TEXAS AND CITY OF DENTON, TEXAS RELATING TO COMMON WASTEWATER CERTIFICATE OF CONVENIENCE AND NECESSITY AREAS, PROVIDING FOR DUAL WASTEWATER CERTIFICATION FOR TWO OVERLAY AREAS; AND PROVIDING AN EFFECTIVE DATE. Biles motioned, Young seconded to adopt the ordinance. On roll vote, Beasley "aye", Brock "aye", Durrance "aye", Young "aye", Biles "aye" and Mayor Miller "aye". Motion carried unanimously. • 22. Resolution declaring the intent to reimburse expenditures for drainage projects with bond proceeds. f Kathy Du9ose, Executive Director for Finance, stated that this was a reimbursement resolution for I.rainage projects. The City would be selling bonds in the spring, Recent legislation allowed the City to designate funds before the actual sale and to be reimbursed with t bond money. • The following resolution was considered: f ni- • i City of Denton City Council Minutes February 4, 1997 Page 11 NO. R97-006 A RESOLUTION TO DECLARE THE INTENT TO REIMBURSE EXPENDITURES FOR MISCELLANEOUS DRAINAGE PROJECTS WITH BOND PROCEEDS; AND PROVIDING FOR AN EFFECTIVE DATE. Biles motioned, Brock seconded to approve the resolution. on roll vote, Beasley "aye", Brock "aye", Durrance "aye", Young "aye", Biles "aye" and Mayor Miller "aye". Motion carried unanimously. 23. The Council considered adoption of an annexation schedule with regard to the proposed annexation of a 286 acre tract located north of Brush Creek Road and east of hWY 377. (A-75) (The Planning and Zoning Commission recommended approval.) Rick Svehla, Deputy City Manager, stated that at the last study session, council directed staff to begin the annexation proceedings, Staff was recommending a timing schedule for the annexation process. Beasley motioned, Brock seconded to approve the schedule. On roll vote, Beasley "aye", Brock "aye", Cott "aye", Durrance "aye", Young "aye", Biles "aye" and Mayor Miller "aye". Motion carried unanimously. 24. Nominations/appointments to Boards and Commissions. There were no nominations/appointments at this meeting. f 25. Miscellaneous matters from the City Manager. City Manager Beravides did not have any items for the Council. 26. There was no official action taken on Closed Meeting Items. 27. New Business • There were no items of New Business suggested by Council Members for future agendas. 28. There was no continuation of the Closed Meeting. With no further business, the meeting was a6journed at 8:05 p.m. 6 • 0 JENNIFER WALTERS JACK MILLER, MAYOR CITY SECRETARY CITY OF DENTON. TEXAS CITY OF DENTON, TEXAS ACCO0362 E' 4F IN i CITY OF DENTON CITY COUNCIL MINUTES February 11, 1997 The Council convened into a Closed Meeting on Tuesday, February 11, 1997 at 5:45 p.m. in the Civil Defense Room of City Hall. PRESENT: Mayor Miller; Mayor Pro Tem Brock; Council Members Beasley, Biles, Cott, Durrance, and Young. ABSENT: None 1. The Council considered the following in Closed Meeting: A. Legal Matters Under TEX. GOVT CODE Sec. 551.071 1. Received attorney-client privileged legal advice on legality of provisions within the proposed ordinance rewriting the Zoning Chapter of the City Code relating to appropriate zoning district classifications within which parochial schools should be located and the specific use permit process. B. Real Estate Under TEX. GOVT CODE Sec. 551.072 C. Personnel/Board Appointments Under TEX. GOVT CODE.- Sec. 551.074 The Council convened into a Special Called Meeting on Tuesday, February 11, 1997 at 7:00 p.m. in the City Council Chambers. PRESENT: Mayor Miller; Mayor Pro Tem Brock; Council Members Beasley, Biles, Cott, Durrance, and Young. ABSENT: None 1. The council considered approval of an ordinance of the City of Denton authorizing the Mayor to execute on behalf of the City of Denton a memorandum of understanding with N.W. Realty, Inc. and Terrano Realty, Inc. relating to economic development program incentives for International Isotopes, Inc. (AIPC) to effectuate an expansion of operations and an increase in employment levels of AIPC in Denton by locating facilities in 475 acre North Texas A Research Center. Linda Ratliff, Director of Economic Development, stated that this ordinance would authorize the execution of a memorandum of understanding for the purpose of constructing a 2,332 foot road. Although the road was not proposed on the CIP program at this point in time, it had always been on the long range thoroughfare plan. ® The property owners had asked to expedite the construction of that road for the purpose of locating a medical isotope company on that O 0 property. The company was very interested in Denton and had had a relationship with the University of North Texas for several years, The location of the company could ultimately greatly benefit the University. The cost of the road was estimated at $606,000 with engineering and design costs of another $103,000. The property had two options related to the construction of the road. If the City constructed and designed the road, the total cost of the project would be $709,000 with an 18 month term once the City received e • City of Denton City Council Minutes February 11, 1997 Page 2 written notice from the property owners to proceed. If the property owners provided the City with the design plans, the cost of the project would be $606,000 and take 12 months to complete from written notice to proceed. In consideration of the road, the property owners would dedicate the right-of-way and guarantee that two buildings would be built with a total value of $4.75 million. The structures would be equipped with personal property valued at approximately $7.5 million. They would also guarantee that a payroll of $4 million would be obtained by the end of the fourth quarter of 1999. The property owners would execute a promissory note in the amount of the construction, design and engineering costs, if included. A deed of trust for the property would be provided as collateral for the purpose of reimbursing the City should the improvements or personal property values not be met. Since it was anticipated that this location would generate more development in the area, the contract would allow the property owners to sell or develop other pieces of land. Depending on the total amount of the note, the property owners would transfer $1,500 for a $606,000 note or $1,700 for a $709,000 note into an escrow account to reduce the principle of the note. All sales of any.- property in that tract would be approved by the City of Denton. If at the end of a three year term of the note, the combined total of the improved value of the new structures and equipment was $12,250,000 or greater or the payroll generated at the North Texas Research Center was $4 million or greater, the responsibilities of the property owners would be considered met and the note would expire. If at the end of the three year term, the improved value or the payroll thresholds were not met, the property owners would reimburse the City for the amount of the note. Consideration would be given for any improvements made over the three years. The contract provided a formula of the amount of the promissory note less an increase in City of Denton annual property tax revenues times ten years. Mayor Pro Tem Brock asked if the amount of repayment would increase annual taxes based on the actual tax figures. That would not be known until a new appraisal was done after the improvements. All Rstliff replied correct. Chris Coil stated that he had some major concerns regarding this facility. He had a concern when such a large facility would be producing radioactive materials. He questioned if an environmental ` impact study had been done on what would happen with this facility in place. He had a concern dealing with fact that Denton just had 41 a lopsided election dealing with the recent EDC vote and whether to 0 0 use sales tax money for private entities in order to promote growth. The public decided that that was not a proper use of tax dollars. He did not think it would be proper following the results of that election to spend taxpayers money to build this road. Other roads in the City were a priority. He was curious if traffic studies had been done in the area. He did not see any kind of traffic flow into that area. V 7-- o City of Denton City Council Minutes February 11, 1997 Page 3 Dorothy Damico stated that she had three points regarding this issue. She had been gathering information regarding the proposal and felt that it would be an excellent company for Denton. It was high tech/high salary and good for the community. She supported the company in Denton. Because she was involved in the group that educated voters who ultimately voted against the recent sales tax, she wanted to assure Council that many who voted against that package were not opposed to economic development activities. There were a number of people who were opposed to the idea of having tax dollars spent to directly benefit private developers for private businesses. This appeared to be such a case. If so, there were many questions she would need answered before she could completely support the proposal. Such a question would be if there was a real need for the road in order to have the company. Could the developers do part of the project. She did not support 1008 the City's participation in the project. Council Member Cott asked what would happen if the petitioner indicated that he would not come to Denton without the road. Damico replied that the tax payers in the City of Denton were people she knew. She would have to consider whether or not to ask them to support this project. Mayor Pro Tem. Brock stated that she would like to deal with some of the questions raised by Mr. Coil. The council was aware of the magnitude of the recent election. one of the things said by many of the leaders of those who were working against the sales tax was that a special designated tax was not needed. There was no need for a separate group to make decisions without open discussion or without the recall that elections provided. They indicated that projects such as this could be created within the structure of the City Council in full view of the public with citizens able to express their opinions. Even though some felt that the timing was very unfortunate, Council felt that the timing might be good as it would show that the system in place still worked. She initially had some concerns about safety and environmental issues. The City did not deal directly with issues of this type. This was a very highly regulated matter on the federal level and the manufacturer had to receive permits from federal agencies. The City did not have the expertise or authority to regulate those environmental decisions. The fundamental answer as to whether to spend taxpayers money for such a project was would the project create new taxes. There would be a payback for this development. This was a unique project and did something that many wanted which was to bring very high tech jobs to Denton. It would bring jobs related to the assets which the community had. She saw this as creating other jobs and developments which would be similar in nature. She felt it was appropriate for Denton to have a research oriented development of this kind and it would be valuable as it would, be the first of this sort. Council Member Young stated that the road was going to be built anyway. Money would be saved in the long term as the company 4 • • City of Denton City Council Minutes February 110 1997 Page 4 would be paying for the road. This project dial not have anything to do with the sales tax. The people who voted against the sales tax were not against economic development. He felt this was economic development dt its best. It would bring good high paying jobs to Denton and eventually be a research center for north Texas. Mayor Miller id that the safety aspect of the project was regulated b,. :ral governmental agencies both in terms of creation and zation. He was delighted that the company would consider Den.c.. :or this proposal. The City had an opportunity to develop not just one proposal but over 400 aores of a research park. The Vision project for Denton worked on what the community would look like 20 years from now. One aspect of the Work Group was a research park to bring in high tech - high paying jobs to broaden the tax base. He felt it was appropriate to spend tax dollars to leverage thia aspect of the Vision project. Council Member Beasley stated that there had been questions about the project but felt that they had been answered to everyone's satisfaction. The consensus of feeling from the citizens was that-- this was a good project. She was sorry it was coming at this particular time when the city was trying to continue with economic development. She felt good about the project and knew that there would be some continued questions about the project. She felt that by putting the road in the City would recoup the tax money very j quickly. The following ordinance was considered: NO. 97-040 AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE MAYOR TO EXECUTE ON BEHALF OF THE CITY OF DENTON A MEMORANDUM OF UNDERSTANDING WITH N.W. REALTY, INC. AND TERRANO REALTY, INC. RELATING TO ECONOMIC DEVELOPMENT PROGRAM INCENTIVES FOR INTERNATIONAL ISOTOPES, INC. (AIPC) TO EFFECTUATE AN EXPANSION OF OPERATIONS AND AN INCREASE IN EMPLOYMENT LEVELS OF AIPC IN DENTON BY LOCATING FACILITIES IN THE 454 ACRE NORTH TEXAS • RESEARCH CENTER AND DECLARING AN EFFECTIVE DATE. Young motioned, Cott seconded to adopt the ordinance. Mayor Pro Tem Brock stated that no city money would be spent and no city activity would be initiated until all promissory notes and • other legal papers were signed and in place. O • on roll vote, Beasley "aye", Brock "aye", Cott "aye", Durrance "aye's, Young "aye", Biles "aye" and Mayor Miller "aye". Motion carried unanimously. Following completion of the Special Called Session the Council convened into a Work Session at which the following items were considered: s City of Denton City Council Minutes February 11, 1997 Page 5 1. The council received a report, held a discussion and gave staff direction regarding the final recommendations of the Diversity Task Force. Mary Ann Fulgium, Acting Director for Human Resources, stated that on November 12, 1996 Dr. Richard Lewis, a diversity consultant, presented a report of findings and recommendations to Council. On December 28, 1996 Cr. Lewis sent additional recommendations which were included in the back-up. These recommendations would effect the organization internally and the community externally. Staff was recommending that some of the recommendations be taken into consideration. The first would be to implement a diversity management panel. This panel would be chaired by the Director of Human Resources and would consist of other management who would be designated by the Director of Human Resources. This panel would ensure the implementation of the recommendations which were approved by the Council. It would be given a sunset review date in order to complete the recommendations. The City's Work Force Diversity Committee would continue to serve as an advisory group to the Director of Human Resources. Other recommendations would be to-- expand the current internship program; establish mobility positions which would give internal employees the opportunity to cross train and move upward in the organization; training for the unemployed and underemployed which would expand on such programs as the summer youth program; create an employee recruitment plan; consider off- site Civil Service examinations; update the compensation plan; and investigate considerations for disadvantaged business. Staff was asking direction on implementing these recommendations. Mayor Miller asked if staff had any recommendation for a sunset date. Fulgium suggested waiting until all recommendations were completed and then decide a date at that time. Mayor Pro Tem Brock asked about the funding for the mobility positions. Would these be new positions. City Manager Benavides indicated that these would be new positions. f Mayor Pro Tem Brock asked if they would be similar to internships. ' City Manager Benavides stated that the positions would be like internships and the individuals would probably spend time in other • departments to learn how the City worked. • f1 Mayor Miller assumed that the diversity management panel would take up each of the recommendations and after discussions with the City Manager and staff, return them to the City Council. Budgetary needs would be handled at that time. Council Member Beasley stated that most of the recommendations of the task force had been put in a manageable way to address those issues. . i • city of Denton city council Minutes February 11, 1997 Page 6 Consensus of Council was to proceed with the recommendations. 2. The council received a report, held a discussion and gave staff direction regarding the Texas Department of Transportation's Routine Airport Maintenance Program (RAMP). Linda Ratliff, Director for Economic Development, stated that the Texas Department of Transportation had development a new project for routine maintenance at airports. Staff had visited with TxDot individuals who inspected the Airport and who identified maintenance projects for a 50-50 grant. TxDot was asking that the City enter into a contract with them and each year they would inspect the Airport to identify projects. The State would participate in a grant up to $10,000. The City would have the opportunity to decline participating in any year. Once the projects were identified, TxDot combined all of the airports in the region and sent all of those projects to bid for lower costs of the projects. The City would not have to bid or manage the project. The first proposed project was for erosion control in which there would be some reseeding and reshaping of the drainage channel.• Another project was to paint the south access road to the t- hangers yellow. Herbicide and vegetation control would also be done. The total cost of the projects would be $19,476 with the City paying $9,713. Staff recommended that the City enter into the contract and participate in the program for this year. Staff was also requesting to take $9,000 from excess funds left over when the Economic Development Corporation was terminated. Council Member Cott asked if any tenants at the Airport were late on payments to the City. Mayor Miller stated that that was not listed on the agenda for discussion. Council Member Cott suggested having the Airport Board create a relative marketing concept of all area airports and see why the City should stay in this business. • Mayor Miller felt that this was a whole diffsrent issue to be taken up at a future time. Staff was seeking a recommendation for specific funding. Mayor Pro Tem Brock asked what was spent annually on maintenance. 6 Ratliff stated that she was not sure at this point in time. Most • $ of the maintenance was done by the Parks Department. Council Member Young asked if the Airport was making money. Ratliff stated that the revenues from tha Airport were put directly into the operating account. The Airport did not operate off revenue. City Manager Benavides stated that it probably was in the red. i 7 -1 • I , • I I City of Denton city council Minutes February 11, 1997 Page 7 Council Member Young felt that a tower was needed at the Airport especially with added traffic from the speedway. Mayor Miller stated that that was not a point for discussion. Council Member Beasley felt that this was another economic development project. She felt that the Airport would be beneficial to the City if it could be put into the kind of shape needed to attract people to use it. Mayor Miller asked if the proposal had been reviewed by the Airport Advisory Board. Ratliff stated no but it would be discussed the next day at their meeting. Consensus of the Council was to proceed with the proposal. Council Member Cott felt that a marketing plan was needed. Mayor Miller suggested that Council Member Cott include that suggestion at the end of a Regular Session and put it on an agenda to see if Council was interested in doing such a study. 3. The Council received a report, held a discussion and gave staff direction regarding 1997-96 Airport Improvement Plan projects and the funding thereof. Linda Ratliff, Economic Development Director, stated that this year m_ney from the FAA would be received through the Texas Department of Transportation. Staff had visited with FAA and TxDot for possible funding for projects on the Airport Master Plan. Two projects were proposed. one was a reconstruction of the terminal apron at a cost of $1 million. Because the FAA did not have funding this year, that project would not be considered. Only safety related projects would be considered. The second project was safety related but it had a moderate rating. The City would • have about a 50-50 chance for money this year from FAA through TxDot. The City's 10% share would be $1C,000. TxDot had requested a resolution from the Council stating that the City was interested in the project and would reserve $10,000 to apply toward; the project should funding be received. If desired by Council a resolution would be presented at the next meeting. Money for the project would be used from the excess from EDC funds. ® Council Member Beasley stated that this project would be an O • enhancement to the Airport. This was a safety issue and would make the Airport safer in the future. Consensus of Council was to proceed with preparing a resolution for consideration. i • City of Denton City Council Minutes February 11, 1997 Page 8 4. The Council received a report on the schedule for City Hall renovation. Bruce Hennington, Facilities Manager, discussed the reconstruction phases of the project as detailed in the agenda back-up materials. Rick Svehla, Deputy City Manager, stated that City Council meetings would be held in the Jury Selection Room which was a large room with good visuals and acoustics. That room had seating for 100 citizens with the ability to do sound and television. It also had space for Executive Sessions. The Council would have to pass an ordinance indicating the change in meetings rooms. Mayor Miller asked when the move would take place for the Council meetings. Rick Svehla, Deputy City Manager, stated that the first meeting in July would be in held in the Jury Room. f Mayor Dro Tem Brock stated as compared with other cities, the- -Council ihambers had about the same amount of seating. Money was going to be spent to bring the building up to code with sprinklers and ADA requirements. Electrical work, heating and fire exits would also be improved. j Consensus of the Council was to proceed with the ordinance to accept the bids. 5. The council received a report, held a discussion and gave staff direction on the Emergency Management Plan. Ross Chadwick, Fire Chief, stated that the plan was based on four basic principles. Mitigate emergencies from happening in the first place, prepare for those emergencies, respond to those emergencies and recover from those emergencies. The basic plan set the foundation for all responses. The State guidelines and format were used but was made specific to Denton. The keys for effective • emergency management were to have a disaster plan in place and ready to be implemented. Good standard operating procedures should be in place with adequate checklists, adequate training and ! exercises, use of a standard emergency management system, an effective emergency operations center and community integrated emergency management system. A goal was to complete all of the above projects so as to be ready for any emergency which might 0 happen. O O Consensus of the Council was to proceed with the project. 6. The Council received a report, held a discussion and gave staff direction regarding the Bolivar Water Supply Corporation Service Area issues. Bob Nelson, Executive Director for Utilities, stated that this service area was north of the City. The area was in Denton's • • City of Denton City Council Minutes February 11, 1997 Page 9 extraterritorial jurisdiction (ETJ) in 1976 when the PUC established the certified area when the various utilities could operate. At that time the City made application to cover its ETJ. Shortly thereafter, several individuals wanted water and the Bolivar Water Supply Corporation began extending linoq into that area even though they did not have certification to do so. In 1992 Bolivar was in need for funding to expand their system and went to the Federal Government for a loan. One of the provisions of that loan was that the District needed a certificate to serve in the area and could not lose that territority and thus be unable to pay back the loan. The City asked the TNRCC to make the area dual certified similar to Argyle but because of the loan criteria, the TNRCC granted a single certification to Bolivar. The only concern about the transfer was that in the event that an urban development was proposed in the area, a large amount of paper work was required to have the CCN back in Denton's name. The current service policy was to allow the individuals in the area to drill a well or have the normal extension policy from the nearest line. There were several options to consider with this proposal. One option was that Denton continue it's present position which was to allow-- individual properties which had requested a transfer from Denton's single CCN to the Bolivar Water Supply Corporation, to do so without contesting such a transfer. Option two would be to grant a blanket transfer of the CCN to the Bolivar Water Supply corporation for all properties adjoining the present service. Staff's recommendation was to proceed with the second option. Possible conditions for Option 2 included that Denton would purchase the water lines at net book value, the City would not be obligated to pay any fee to Bolivar for lost revenue of existing or future potential customers; Denton would pay Bolivar for a period of five years or until they had enough growth in the area to equal the area that would have been taken. Council Member Cott stated that Denton had been asked by Austin to stay away from the area. He suggested waiting until the citizens requested the service. Nelson stated that the residents had asked for Denton water. This • area was not seen as a market share or market profit. Denton only wanted to serve what the customers wanted. If that area sometime in the future became urban and wanted urban type densities, there would be a need for some type of fire protection in the area. Council Member Beasley asked that if option two were adopted and in the future someone outside the area who was now within 200 feet of ® Bolivar's water line wanted water, would the process start again. • Nelson replied that that might be a case by case basis. J Mayor Miller stated that part of the issue was political. They had had visits with State Representatives and there were a number of people in the area who did not like option 1. If no other type of solution was suggested, legislation would probably be introduced which would put the TNRCC in charge and not Denton. If something • 0 City of Denton City Council Minutes February 11, 1997 Page 10 were not done, it would be done for Denton. Council Member Biles stated that when the TNRCC prepared the certificate of transfer order, they would insert an agreed upon valuation methodology and thus conditions would be put into the order to transfer from Denton to Bolivar. That would bind the legal relationships between the two parties. Nelson replied correct. Council Member Biles asked if that were to happen, would Bolivar have the opportunity to protest a transfer in the future or were they bound by the transfer order. Nelson stated that the implied issue was that Bolivar would not protest. Council Member Biles suggested including another condition in which Bolivar could not protest a transfer back to Denton. He asked if this was a contract matter from a regulatory point of view. - l City Attorney Prouty stated that it could be a contract with 1 Bolivar with all items indicated under the circumstances when Denton would give up its CCN and the circumstances under which Bolivar would retransfer to Denton. That contract could be j incorporated as part of the order from TNRCC. Council Member Biles stated that he had seen correspondence from 1996 indicating that Denton would not oppose individual transfers from Denton to Bolivar. He requested wording as suggested for a transfer back from Bolivar to Denton. He requested that the City Attorney advise Council as to whether a contract could be incorporated betweer. the two entities and put into the TNRCC order. Council Member Durrance asked if future expansion with regards to Lake Ray Robert was within growth guidelines as far as inclusion in the area. Nelson replied correct. Biles motioned, Young seconded to proceed with Option 2 but to further advise Council on a contract between the two entities. The subject matter would be Option 2 and to amend Option 2 to include i an item that Bolivar would not oppose a retransfer of any subject e area back to the City of Denton. O ~ Mayor Miller asked if his motion included having staff discuss the item with Bolivar. Council Member Biles replied correct. on roll vote, Beasley "aye", Brock "aye", Cott "aye", Durrance "aye", Young "aye", Biles "aye" and Mayor Miller "aye". Moticn carried unanimously. • • City of Denton city council minutes February 11, 1997 Page 11 With no further business, the meeting was adjourned at 8:55 p.m. JACK MILLER, MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS ACC00366 • 1 • r D Yam • • CITY OF DENTON CITY COUNCIL MINUTES February 18, 1997 T.:e Council convened into a Closed Meeting on Tuesday, February 18, 1997 at 5:45 p.m. in the Civil Defense Room of City Hall. PRESENT: Mayor Miller; Mayor Pro Tem Brock; Council Members Beasley, Biles, Cott, Durrance, and Young. ABSENT: None 1. The Council considered the following in Closed Meeting: A. Legal Matters Under TEX. GOVT CODE Sec. 551.071 B. Real Estate Under TEX. GOVT CODE Sec. 551.072 C. Personnel/Board Appointments Under TEX. GOVT CODE Sec. 551.074 The Council convened into a Regular Meeting on Tuesday, February 184 1997 at 7:00 p.m. in the Council Chambers of City Hall. PRESENT: Mayor Miller; Mayor Pro Tem Brock; Council Members Beasley, Biles, Cott, Durrance, and Young. ABSENT: None 1. Pledge of Allegiance The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. CITIZEN REPORT 2. Joe Dodd regarding the Cable Television Ordinance. Mr. Dodd stated that cable television had the ability to give some of the old days back as it had given local government back to the citizens. what the citizens did not know about was each other. A free speech channel was needed for citizens to air their viewpoints. It could air neighborhood meetings and the views of citizens. It could be a valuable channel in many ways. The sooner • it was on the air, the sooner Denton would be better. His leaving the Cable Television Advisory Board was giving up on the system. The Board went through much time to develop a good ordinance regarding cable access rules. They agreed on the final wording and sent it on for action. He questioned why it still was not before the council. He felt that the City Manager would not let the item be on the agenda. The ordinance went through a lot of thought and much time in preparing. He thought that during a work Session • ® discussion on the item, the Council would debate putting the word "indecency" back into the ordinance which he hoped would not happen. The Courts had thrown out the word "indecency" and the Council should not put it back into the wording. The ordinance was designed to keep the 'Klan' off the television. An ordinance could not be designed to keep one group off the television. _A MAO AAAWL • City of Denton City Council Minutes February 18, 1997 Page 2 PUBLIC BEARI!!a 3. The Council held a public hearing and gave staff direction with regard to the proposed annexation of a 286.57 acre tract north of Brush Creek Road and east of Highway 377. (A-75) Rick Svehla, Deputy City Manager, stated that Council reviewed this annexation at its last study session. This was a large piece of property which was platted several months ago. Because it was a large development, the annexation study was triggered. This was the first public hearing for comment regarding the possible annexation of the property. Council Member Young asked about water and sewer use in the development. Svehla replied that the development would have septic tanks with Argyle water. The Mayor opened the public hearing. . No one spoke in favor. No one spoke in opposition. The huyor closed the public hearing. Brock motioned, Beasley seconded to proceed with the annexation. Council Member Young asked about the size of the homes and lots. i Svehla replied that the lots would be at least one acre in size and the developer had talked about large homes on those lots. on roll vote, Beasley "aye", Brock "aye", Cott "aye", Durrance "aye", Young "aye", Biles raye" and Mayor Miller "aye". Motion ' carried unanimously. i • CONSENT, AGENDA City Manager Benavides suggested that item 16 be pulled and would be rebid for consideration. Cott motioned, Brock seconded to pull the item. • Randy Bradley, representing Dallas Peterbilt, stated that for the • • past few years Volvo, a competitor of Peterbilt, had taken great I delight in allowing its dealer to offer a bid price to the City of Denton which in many cases was below the cost to produce a - J Peterbilt and probably below their production cost. T!e only justification for this practice would be their attempt to bring embarrassment to Peterbilt. From just a financial side of buying trucks, having Peterbilt in Denton leas a blessing because the City was able to buy at the lowest possible price. However, from the community relations standpoint, he asked how the Council thought } • 0 City of Denton City Council Minutes February 18, 1997 Page 3 their neighbors who worked at Peterbilt felt when a competitor truck came to the plant to picY. up trash. The truck business was not like the other types of businesses where there were so many makes and models that no one would, know tha difference. There were only 3-4 manufacturers of this type of truck so that when a foreign brand appeared, it was very noticeable. The bid in question was for a front loader refuse truck which Council was considering to award to Lone Star Volvo because they were the low bid. There was one omission in their bid package which could be used to thrown out the bid. In three different places in the bid document, a complete detailed list of the specs being bid was requested. All of the bidders with the exception of Lone Star Volvo included such a list with their bid. The Council was being asked to forgive this oversight and was being asked to award them the bid as they were $977 lower than Peterbilt. That was a right which the Council could do. He requested that the Council consider awarding the bid to Peterbilt. Council Member Biles asked if the motion was to approve the Consent Agenda and associated ordinances but to exclude Item €6 and have staff rebid the item. Bradley stated that he was in opposition to rebidding the item as everyone would know what the other had bid in the previous proposal. a Mayor Miller stated that the motion was only to pull Item 16 from the consent Agenda and tc, rebid it. Bradley asked what benefit there would be to the City to rebid the item. Mayor Miller stated that there were legal restrictions which the Council had to operate under. The Council's decisions were based on advise from a legal standpoint and from other aspects. He asked the City Attorney to address the item. II City Attorney Prouty stated that the Council could not make a 0 decision based on a preference for a local bidder. That was an item ruled on by the Attorney General. Under the currant competitive bidding laws, a bid had to be awarded to t1ie lowest responsible bidder. The only preference which could be given would be if an out-of-state bidder's state allowed a preference, then in- state bidders could be allowed the same deduction. There were three options Council could consider with this item. One was if the ® Council determined that this was a material defect, which appeared Q not to be the case. If Council determined that it was a material defect, then the Volvo bid would have to be elim!;.jted. If Council determined that it was an immaterial defect, then Council could waive or not waive the defect. If the defect was waived, the bid could be awarded to Lone Star Volvo. If the defect was not waived, then the bid could be awarded to Peterbilt or rebid the item. The Council always had the ability to rebid no matter what the options. • • City of Denton amity Council Minutes February 18, 1997 Page 4 Council Member Young asked if council could award the bid tonight to Peterbilt. City Attorney Prouty stated yes if the Council deterained that the failure to submit the item by Volvo was a material defect or even if immaterial, the Council would not waive the defect. Council Member Young asked if he could make a motion irdicating not to waive the defect. Mayor Miller stated that there was a motion on the floor. City Attorney Prouty stated that the council would have to vote on the motion on the floor or have the motion withdrawn. Mayor Miller asked if Council Member Cott wanted to withdraw his motion. Council Member Cott stated no that the integrity of the bid process was more important than the sale of one truck. - I Mayor Pro Tem. Brock asked how common a procedure was this type of i notion. Tom Shaw, Purchasing Agent, stated that rebidding was rare but that this type of situation was also rare. Mayor Miller felt that Council was being put into the position of trying to decide a legal issue about what constituted a material defect and at same time was in a position of a political issue. There were several issues at work. The Council could not legally show preference to a bidder simply because it was a local. One of the concerns with not accepting bids was that it might happen with all bids. on the issue of Volvo's tactics, the council could not control the behavior of other organizations. The Council could decide the validity of the bid based upon whether it fit into a category. It was noted in three different places in the bid specifications that the data sheets were important and were part of . the bid. He understood from the Purchasing Department that that was not intended on our part, as it was something which was no longer needed. Looking at it as or,jcctively as he could, he did not think it was up to the kidders to decide whether that was important or not. The more he looked at the ramifications in terms of making sure that bidders knew what was expected, he intended to vote against the motion. If the motion failed, he would be ` pi.epared to declare that the apparent successful bidder did not 9 • meet the bidding specifications. on roll vote, Beasley "aye", Brock "aye", Cott "aye", Durrance "nay", Young "nay", Biles "aye" and Mayor Miller "nay". Motion carried with a 4-3 vote. Bradley stated that if the bid went back to Volvo, Peterbilt would request a private carrier to pick up trash as it would not want a Volvo at the Peterbilt plant. ,..~--neser~ • s City of Denton City Council Minutes February 18, 1997 Page 5 Council Member Young stated that this happened last year with the bid for police cars. The City did not buy cars from a local dealer. He felt it silt a bad massage when the city did not do business with local dealers. Mayor Miller stated that the City was restricted by State law to accept the low bidder. The Council all shared the same sentiment but could not go against state statutes. Council Member Biles felt that Mr. Bradley had missed the mark in this issue. If the Council could, it would buy all motor vehicles from Peterbilt. If they could they would buy from all dealers in Denton. State law indicated that they could not do that. The Council had heard his complaints. The $977 discrepancy was insufficient to cover the cost of one immaterial list. Council decided to determine that this was an immaterial issue and agreed with the Peterbilt statements but also decided to give Peterbilt a second chance at the bid. As a Council Member he felt that the Council demonstrated concern for local taxpayers. Council Member Young asked for more information on items 19 and Ill. He asked what would be the Kerley Street improvements. Rick Svehia, Deputy City Manager, stated that the bid was for the bridge only. Staff was still in the process of designing the creek. This bid would spend about half of the money. Council Member Young asked if the bridge would be done first and then the channel. Svehla relied correct that the bridge would be done fic^t so the cost would be known. He did not want to loose any money with the bridge costs. Council Member Young asked about Item 012 not Item Ill. Barbara Ross, Community Development Administrator, stated that this would be a community development block grant project which could be used for economic development. The Small Business Center Advisory Board had been working on this project for several years which would develop a local community development corporation. This corporation would create jobs for low and moderate income citizens. The Corporation would provide loans to small businesses to expand or develop a new business in the City. Council Member Young asked to get this information to the Black O Chamber of Commerce and the Hispanic Chamber of Commerce. Biles motioned, Young seconded to approve the Consent Agenda and the associated ordinances. On roll vote, Beasley "aye", Brock "aye", Cott "aye", Durrance "aye", Young "aye", B±les "aye" and Mayor Miller "aye". Motion carried unanimously. i • 0 ...,~..,,.e. PON s 0 City of Denton City Council Minutes February 18, 1997 Page 6 SERVICES; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. (Bid 11969 - Fleet Vehicles) 5. NO. 97-042 AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES; PROVIDING FOR THE EXPEN.OITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. (Bid 01976 - Distribution Transformers) 7. NO. 97-043 AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES; PROVIDING FOR THE EXPENDITURE 0: FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. (Bid 01997 - Firefighter Station Uniforms) 8. NO. 97-044 AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND PROVIDING FOR THE p AWARD OF CONTRACT FOR PUBLIC WORKS OR IMPROVEMENTS RATIFYING THE CONTRACT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. (Bid 11984 - Renovation of Denton City Hall) 9, NO. 97-045 AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND PROVIDING FOR THE AWARD OF CONTRACT FOR PUBLIC WORKS OR IMPROVEMENTS RATIFYING THE CONTRACT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. (Bid 11995 - Kerley Street Culvert Improvements) 10. NO. 97-046 AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE CITY MANAGER TO EXECUTE ON BEHALF OF THE CITY OF oENTON AN ACCEPTANCE OF AN OFFER FROM THE TEXAS DEPARTMENT OF TRANSPORTATION RELATING TO A GRANT FOR ROUTINE AIRPOR" MAINTENANCE PROGRAM; AND DECLARING AN EFFECTIVE DATE. 11. NO. R97-007 @ A RESOLUTION OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE 9 EXECUTION OF AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE TEXAS DEPARTMENT OF TRANSPORTATION TO PROVIDE FINANCIAL 1 ASSISTANCE FOR CERTAIN IMPROVEMENTS TO THE DENTON MUNICIPAL AIRPORT; AND PROVIDING AN EFFECTIVE DATE. I N l - 0 a • City of Denton City Council Minutes February 18, 1997 Page 7 12. NO. 97-047 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE THE CONTRACT BETWEEN THE CITY OF DENTON AND THE DENTON COMMUNITY DEVELOPMENT CORPORATION; APPROVING THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE. 13. NO. 97-048 AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT BETWEEN THE CITY OF DENTON AND BINKLEY & BARFIELD, INC.; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING AN EFFECTIVE DK.CE. 14. NO. 97-049 AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A REAL ESTATE CONTRACT BETWEEN THE CITY OF DENTON AND ROBERT W. CALLAHAN, JAMES E. CALLAHAN AND ANN C. STARK RELATING TO THE PURCHASE OF PROPERTY IN THE VICINITY OF THE CITY'S WASTEWATER TREATMENT PLANT; AUTHORIZING THE-- EXPENDITURE OF FUNDS; AND PROVIDING AN EFFECTIVE DATE. ITEMS FOR INDIVIDUAL CONSIDERATION 15. The Council considered an ordinance authorizing the City Manager t•.) execute an amended agreement between the City of Denton and Nebrig & Associates, Inc., to lease certain premises of the Municipal Airport and construct and maintain an office, hangar, maintenance, and related aviation facilities thereon. Linda Ratliff stated that this was an amended lease from the original lease of 1996. The agreement was a 1.5 acre parcel with options on two additional parcels. The Nebrigs agreed to build a taxiway from the existing taxiway to their site and in addition, agreed to construct a 301 taxiway along the southern portion of the property. Typically, a taxiway was built on the tenants property and used by that tenant or its customers. This particular taxiway would be adjacent to property to be developed to the south. The • amended lease redefined the boundaries of the property and would allow for growth and development in the south. The following ordinance jas considered: ` NO. 97-050 • AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE THE ® O FIRST AMENDED AIRPORT LEASE AGREEMENT BETWEEN THE CITY OF DENTON AND NEBRIG & ASSOCIATES, INCORPORATED TO LEASE CERTAIN PREMISES OF THE MUNICIPAL AIRPORT AND CONSTRUCT AND MAINTAIN AN OFFICE, HANGAR, MAINTENANCE AND RELATED AVIATION FACILITIES THEREON; AND PROVIDING AN EFFECTIVE DATE. - • 0 • • City of Denton City Council Minutes February 18, 1997 Page 8 Young motioned, Beasley seconded to adopt the ordinance. on roll vote, Beasley "aye", Brock "aye", Cott "aye", Durrance "aye", Young "aye", Biles "aye" and Mayor Miller "aye". Motion carried unanimously. 16. The Council considered an ordinance annexing and establishing temporary agriculture "A" zoning district classification on a 11.24 acre tract located south of Robinson Road and east of Nowlin Road. (A-74) (The Planning and Zoning Commission recommended approval 6- 0.) Rick Svehla, Deputy City Manager, stated that this was the final reading of the ordinance to annex this property into Denton. The applicant was in favor and was developing the land ~o the east of the property. The following ordinance was considered: NO. 97-051 AN ORDINANCE OF THE CITY OF DENTON, TEXAS ANNEXING A TRACT.- COMPRISING 11.24 ACRES, LOCATED SOUTH OF ROBINSON ROAD AND EAST OF NOWLIN 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. Biles motioned, Brock seconded to adopt the ordinance. on roll vote, Beasley "aye", Brock "aye", Cott "aye", Durrance "aye", Young "aye", Biles "aye" and Mayor Miller "aye". Motion carried unanimously. 17. The Council considered an ordinance of the City of Denton providing for the establishment of the schedule of compost and wood mulch rates in connection. with the sale by the Water Reclamation Division of the Wastewater Department of the City of Denton to the general public for compost and wood mulch. Bob Nelson, Executive Director for Utilities, stated that after O much work getting the facility in order, the wastewater treatment plant was creating compost and wood chips which were eligible for marketing in the community. There had been many requests for the compost. The Public Utilities Board suggested marketing half of the compost to the general public and put the other out for wholesalers. The rate would he $20 per cubic yard for compost and $10 for wood chips. An individual would come to City Hall for a ® receipt to purchase or work with the landfill for a receipt. That individual would then go to the Wastewater Treatment Plant for their compost. There would be a $10 minimum purchase which was a half of a cubic yard. The items would be marketed in bulk and not in bags at this time. Council Member Beasley stated that an individual could get $10 worth of material. • • City of Denton City Council Minutes February 18, 1997 Page 9 Nelson relied correct that $10 would be a half of a cubic yard. The following ordinance was considered: NO. 97-052 AN ORDINANCE OF THE CITY OF DENTON PROVIDING FOR THE ESTABLISHMENT OF THE SCHEDULE OF COMPOST AND WOOD MULCH RATES IN CONNECTION WITH THE SALE By THE WATER RECLAMATION DIVISION OF THE WASTEWATER DEPARTMENT OF THE CITY OF DENTON TO THE GENERAL PUBLIC OF COMPOST AND WOOD MULCH; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE PATE. Beasley motioned, Biles seconded to adopt the ordinance. On roll vote, Beasley "aye", Brock "aye", Cott "aye", Durrance "aye", Young "aye", Biles "aye" and Mayor Miller "aye". Motion carried unanimously. 18. The Council considered an ordinance of the City of Denton amending Chapter 28, Sections 27 and 28, of the Code of Ordinances of the City of Denton, Texas; adopting the 1994 Uniform Building.. Code with certain amendments, deletions, and additions thereto; providing for a severability clause and repealing clause, and providing for a maximum penalty as proaided in Section 1-12 of the code of ordinances of the City of Denton, Texas. Rick Svehla, Deputy City Manager, stated that the Building Code Board had recommended adopting the 1994 Building code with local amendments. The following ordinance was considered. NO. 97-053 i AN ORDINANCE OF THE CITY OF DENTON AMENDING CHAPTER 28, j SECTIONS 27 AND 28, OF THE CODE OF ORDINANCES OF THE CITY OF ! DENTON, TEXAS; ADOPTING THE 1994 UNIFORM BUILDING CODE WITH CERTAIN AMENDMENTS, DELETIONS, AND ADDITIONS THERETO; PROVIDING FOR A SEVERABILITY CLAUSE AND REPEALING CLAUSE; • PROVIDING FOR A MAXIMUM PENALTY NOT TO EXCEED TWO THOUSAND DOLLARS ($2,000.00) FOR EACH VIOLATION THEREOF; AND PROVIDING FOR AN EFFL,-eIVE DATE. Biles motioned, Beasley seconded to adopt the ordinance. Mayor Pro Tem Brock asked for the requirement for sprinkling a • commercial building. • 0 Ross Chadwick, Fire Chief, stated that commercial was 10,000 square feet. The residential size was increased from 5,000 to 7,500 square feet. Council Member Cott asked when the ordinance would take effect and how would it get changed. E • • City of Denton City Council Minutes February 18, 1997 Page 10 City Attorney Prouty stated that it would take effect 14 days from the date of passage. Council Member Cott asked how it would be changed. City Attorney Prouty stated that there were a number of different entities which structured the Uniform Building Code. This was an attempt to make building codes uniform throughout the U.S. Chadwick stated that this- ordinance was dealing with the 1994 codes. Those codes were revised approximately every three years. Within a year work would. be started on adopting the 1997 codes. Council Member Young asked about sprinkling restaurants. Chadwick replied that it was only for new buildings and not ioi , existing ones. Council Member Young asked ebuut variances for different types of hangars or did all hangars ryuire sprinklers. I Chadwick stated that the hangars were like any other kind of~ occupancy. If a new hangar was built, the new regulations would have to be followed. Council Member Durrance asked about a :ire wall for strip centers. Chadwick stated that was in tha present building code. On roll vote, Beasley "aye", Brock "aye", Cott "aye", Durrance "aye", Young "nay", Biles "aye" and Mayor Miller "aye". Motion carried with a 6-1 vote. 19. The Council considered an ordinance amending Chapter 29 of the Code of ordinances of the C?ty of Denton, Texas to provide for the adoption of the uniform Fire Code, 1994 Edition; providing for amendments thereto; re-establishing permit fees; providing for a penalty in the amount of $2,000 for violations thereof; providing for a severability clause; and repealing all ordinances in conflict • therewith. r Ross Chadwick, Fire Chief, stated that the Uniform Fire Code worked with other codes. Changes to the code included going from semi- annual fire inspections to annual inspections. There was an option for additional inspections for those agencies with problems. Some I1 of the fees were reduced dealing with larger occupancies to be in O line with actual costs. • • Council Member Young asked about candles'open flames in assembly areas. Chadwick replied that was already in the existing ordinance. Rick Jones. Fire Marshall, stated that that was part of the permit structure. The Department inspected businesses who had open flames • • r City of Denton city council Minuttc February 18, 1997 Page 11 on desks and insured that those were fire safe. They did not charge non-profit organizations but inspected tY,em to be sure the type of material was fire safe. They wanted to prevent candles in wooden containers or near combustible materials. Council Mamber Young asked about outside burning. Chadwick stated that a cooking pit was not illegal but open burning of trash and debris was illegal. The following ordinance was considered: NO. 97-054 AN ORDINANCE AMENDING CHAPTER 29 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS TO PROVIDE FOR THE ADOPTION OF THE UNIFORM FIRE CODE, 1994 EDITION; PROVIDING FOR AMENDMENTS THERETO; RE-ESTABLISHING PERMIT FEES; PROVIDING FOR A PENALTY IN THE AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; PROVIDING FOR A SEVERABILITY CLAUSE; REPEALING ALL ORDINANCES IN CONFLICT THEREWITH; AND PROVIDING FOR AN EFFECTIVE DATE. , Biles motioned, Beasley seconded to adopt the ordinance. en roll vote, Beasley "aye", Brock "aye", Cott "aye", Durrance "aye", Young "?.ye", Biles "aye" and Mayor Miller "aye". Motion carried unanimously. 20. The Council considered an ordinance ordering an election to be held in the City of Denton, Texas, on May 3, 1997 and if a runoff election is required, on May 31, 1997, for the purpose of election council members to Places 1, 2, 3, and 4 of the City Council of the City of Denton, Texas; designating voting places and appointing election officials; providing for bilingual notice of the election; ordering that an electronic voting system be used; making additional provisions for the conduct thereof; and other provisions relating thereto. The following ordinance was considered: • NO. 97-055 i AN ORDINANCE ORDERIN,3 AN ELECTION TO By HELD IN THE CITY OF DENTON, TEXAS, ON MAY 3, 1597, AND, IF A RUNOFF ELECTION IS REQUIRED, ON MAY 31, 1997, FOR THE PURPOSE OF ELECTING COUNCILMEMBERS TO PLACES 1, 20 3, AND 4 OF THE CITY COUNCIL ON THE CITY OF DENTON, TEXAS; DESIGNATING VOTING PLACES AND 8 APPOINTING ELECTION OFFICIALS; PROVIDING FOR BILINGUAT.NOTICE ® 0 OF THE ELECTION; ORDERING THAT AN ELECTRONIC VOTING SY..TEM BE USED; MAKING ADDITIONAL PROVISIONS FOR THE CONDUCT THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. Biles motioned, Brock seconded to adopt the ordinance. On roll vote, Beasley "aye", Brock "aye", Cott "aye", Durrance "aye", Young "aye", Biles "aye" and Mayor Miller "aye". Motion carried unanimously. i • City of Denton City Council Minutes FeLr•.ary 180 1S9° Page 12 21. The Council considered a resolution authorizing the City Manager to negotiate a contract with the Children's Trust Fund of Texas for a Family Resource Center. Rick Svehla, Deputy City Manager, stated that this resolution would allow staff to negotiate a contract with Children's Trust Fund of Texas. One of the Vision Committee was successful in obtaining this grant. The following resolution was considered: NO. R97-008 A RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOTIATE A CONTRACT WITH THE CHILDREN'S TRUST FUND OF TEXAS FOR A FAMILY RESOURCE CENTER; AND PROVIDING AN EFFECTIVE DATE. Hiles motioned, Young seconded to approve the resolution. Council Member Beasley asked about matching funds. Ross replied that it would be 104 of the grant. Council Member Cott asked if there was a for-profit organization in the City which could provide the service. Ross replied that there was none in the City. This project was an outgrowth from the Vision project. The Family Resource Center Task Force was given the mission to develops an organization to provide this type of service to the community. The recommendation was to use a private non-profit organization. Currently there was no for- profit organization offering these services. on roll vote, Beasley "aye", Brock "aye", Cott "aye", Durrance "aye", Young "aye", Biles "aye" and Mayor Miller "aye". Motion carried unanimously. 22. The council considered nominations/appointments to City Boards and Commissions. • Council Member Biles nominated Sarah LaGrone to the Keep Denton Beautiful Board. 23. The Council considered a schedule for future City Council meetings. • city Manager Benavides stated that the City Manager had provided a IL O O memorandum to Council proposing a change in meeting dates. This was a ger.4ral approval of the principle of the dates. Cott motioned, Brock seconded to adopt the schedule. On roll vote, Beasley "aye", Brock "aye", Cott "aye", Durrance "aye", Young "aye", Biles "aye" and Mayor Miller "aye". Motion carried unanimously. • • :Lir. City of Denton City Council Minutes February 18, 1997 Page 13 24. Vision Update Mayor Pro Tem Brock stated that specific projects were already coming to pass. The Family Resources Center had received a start- up grant and was in the position to get other grants in future years. Another projact realized was a computer center at the MLK Center. The next project was to expand into other areas of the City so all would have access to computer programs. 25. Miscellaneous matters from the City Manager. City Manager Benavides stated that according to the contract, to renovation work of City Hall would start tomorrow. The renovation work would not disturb early voting for City Council. 26. There was no official action taken on Closed Meeting Items. 27. New Business Tka following items were suggested by Council for future agendas: A. Council Member Yoang asked for the Council to again" consider the infill policy for council consideration. City manager Benavides stated that staff was bringing this item to Council for a recommendation on the Herch 25th work session. B. Mayor Pro Tem Brock stated that April 12th was the clean up day and Keep Denton Beautiful wanted to know if Council would be participating. 28. There was no continuation of the Closed Meeting. With no further business, the meeting was adjourned at 8:20 p.m. i 1 JACK MILLER, MAYOR CITY OF DENTON, TEXAS • JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS • ACCO036E 0 1 • e Agenda No O/S~ _ Agenda Ite Date -1 7 D E CITY OF DENTON, TEXAS MUNICIPAL BUILDING • OENTON, TEXAS 76201 • TELEPHONE (817) 566.8307 Office of the City Manager CITY COUNCIL REPORT TOs Mayor and Members of the City Council FROMi Ted Benavides, City Manager DATE: April 15, 1997 SUBJECT: Request For Exception to the Noise Ordinance for the American Cancer Society's Relay For Life from 10:00 p.m. April 18, 1997 until 7:OD a.m. April 19, 1997 at Fouts Field. i BACKGROUND Ms. LaVona Duryea, Co-Chairman for the Relay for Life Committee, has requested that the City Council grant an exception to the noise ; ordinance from 10:00 p.m. Friday, April 18, 1997 until 7:00 a.m. Saturday, April 19, 1997. The Denton County Unit of the American Cancer Society is planning a fundraiser at UNT's Fouts Field and plans to use the stadium sound system for announcements and music. Also during the event, there will be several bands playing and other organizations performing (Attachment 1.) As you know, the noise ordinance declares loudspeakers, amplifiers, and musical instruments a noise nuisance, particularly after 10:00 p.m. Monday through Saturday and anytime on Sunday (Attachment 2). The ordinance does, however, provide that the City Council may make exceptions when the public interest is served. Participants, made up of UNT and TWU student organizations, walk or run the track for twelve hours beginning at 7:00 p on Friday and end 7:00 a.m. Saturday morning. During the event games, music and entertainment will be in progress on the football field. Corporate sponsors of the event include the Denton Record Chronicle, Texas Bank, VITAS, Texas Onocology, Denton Regional Medical Center, and others. PROGRAMS. DEPARTMENTS. OR GROUPS AFFECTED: ` Ms. Duryea indicates that the closest residential area is approximately two blocks north of Fouts Field. As a result there will be very little impact on the neighborhood. ff 'Dedicatrd to Quality Service" -0 WIN • r • Fiscal Impact: None. Please advise if I can provide additional information. RESPECTFULLY SUBMITTED: red Benavides City Manager Prepared By: Veronica S. Rolen Administrative Assistant II Approved By: SA -tyI i a m s Assistant to the City Manager I Attachments: 1. Request from LaVona Duryea 2. Noise Ordinance c • l • • s.. 1 4S ~ `o • • RELAV% 0 3109 Westgate Drive f Denton, Texas 76207 ~ 15 March 1997 Denton City Council % Mr. Joseph Portugal. City of Denton Municipal Building A TEAM EVENT TO 215 E. McKinney FIOMT CANCfi Denton, Texas 76201 v Dear City Council Memberst The Denton County Unit of the American Cancer Society is planning a fundraiser called the Relay for Life on April 18 and 19, 1997, at UNT's Fouts Field. Participants walk or run on the track for twelve hours beginning at 7100 p.m, on Friday, April 18, and ending at 1100 a.m, on Saturday, April 19. During this time a full schedule of games, music, and entertainment will be in progress on the football field. Teams are made up of 10-15 members representing departments and student organizations at both UNT and TWtI, local clubs, schools, churches, and businesses. The teams pay a fee to enter and each learn member solicits donations to sponsor them in this event, Corporate sponsors of this event ` Include Denton Record-Chronicle, Texas Bank, VITAS, Texas Oncology, r Denton Regional Medical Center, and others. There will be a luminary service honoring those who have survived cancer and In memory of those who have lost their lives to cancer. We have set a goal to raise $50,000,00 at this event for cancer research. Ile are requesting an exception to the city sound ordinance from IOt00 p,m, on April 18, until 7t00 a.m, on April 19. We plan to use the stadium sound system on April 18, between the hours of 7100 p.m. and 12100 p,m.1 from 121CI0 p.m, until 7100 a,m, we will use a portable sound system on the football field for announcements and for music. There are several bands and other organizations scheduled to perform. We do not believe this sound will be a disturbance to area residents. The closest residential area is apptoximately two blocks north of Fouts Field. The Interstate is to the south and west, and UNT to the east. Please call myself at (817) 566-2136 or 382-9844 if you have any • questions that were not covered in the preceding information, Your consideration of this request is greatly appreciated, Sincerely, ' ~/v ` /"(L'LArIFrZ_ • LaVona Duryea ( • O J Co-Chairman Relay for Life Committee 3 • ttrf of • • I Chapter 20 NUISANCES' Art. I. In General, if 201-20.30 Art. It. Abandoned Property, Of 20.31-20.70 , Div. 1. Generally, If 20.31-20.40 Div. 2. Motor Vehicles, If 20.11-20-70 Art. IA. Grave and Weeds. Of 70.71-1073 ARTICLE I. IN GENERAL Sec. 20-1. Noise. gal it shall be unlawful for any person to make or cause any unreasonably loud, dis- turbing, unnecessary noise which causes or may cause material distum, discomfort or injury to persons of ordinary sensibilities in the immediate vicinity thereof. +b) It shall be unlawful for any person to make or cause any noise of such character, intensity and continual duration as to substantially interfere with the comfortable enjoyment of private homes by persons of ordinary sensibilities. cl I'he following acts, among others. are declared to be noise nuisances in violation of this Code, but such enumeration shall not be deemed to be exclusive: J t1) The playing of any phonograph, television, radio or any musical instrument in such manner or with such volume, particularly between the hours of 10.00 p.m. and 7 00 a. m., as to annoy or disturb the quiet, comfort or repose of persons of ordinary sen- sibilities in any dwelling, hotel or other type or residence; 2) The use of any stationary loudspeaker, ampUfler or musical instrument in such manner or with such volume a to annoy or disturb persons of ordinary sensibUities in the immediat& vicinity thereof, particularly between the hours of 10:00 p.m. and 1 00 a.m., or the operation of such loudspeaker, ampiiflar or musical instrument at any 1 time oa Sunday; provided, however, that the city council may make exceptions upon • L appllestioo when the public interest wilkbe served thereby; f3) The blowing of any steam whistle attached to any stationary boiler or the blowing of any other loud or W- esching steam whistle within the city limits, except to give notice of the time to begin or stop work or Be a warning of danger, W The erection, excavation, demolition, alteration or repair work on any building at any time other than between the hours of 7'.00 am. and S-30 p.m., Monday through • 'Crow nfueaew-Protected m(grstary bird rowta declwd aulsanee, 1647; Inspection 0 and abatement warrants, 11946 et seq.; insect and rodent control in mobile home and rec. reational vehicle parks, 132-91. Svpp No. 1 1389 I • • S 20.1 DENTON CODE , Saturday; provided, however, that the city council may issue special permits for suc~/ \work at other boors in case of urgent necessity and in the interest of public safety and cgnvenien". 51 The creation of any loud and excessive noise in connection with the loo 'rig or un- loadin4 of any vehicle or the opening or destruction of bales, boxes, ates or con- tainers; , (6) The use of drum, loudspeaker or other instrument or devs 'for the purpose of attracting' atte tion by the creation of noises to any perforZce, show, theatre, motion picture ho as. sale of merchandise or display which cabses crowds or people to block or congrega upon the sidewalks or streets near or'adiacent thereto. Code 1966, 44 14.20, 14.21) Crow reference-Animal ise, S 6.26. See. 20.2. Odors. (a) It shall he unlawful for any rson to create or cause any unreasonably noxious, unpleasant or strong odor which causes terial disitress, discomfort or injury to persons of ordinary sensibilities in the immediate vi ' ity thereof. (b) It shall be unlawful for any person to a o or cause any odor, stanch or smell of such character, strength or continued duration as substantially, intarfete with the comfortable t enjoyment of privets homes by persons of erdin~y sensibilities. Ic) The following scts or conditio~among of rs, are declared to be odor nuisances in violation of this Code, but such enu oration shall no be deemed to be exclusive: (11 Offensive odors from co lots, hog pens, fowl c pe and other similar places where animals are kept or which disturb the comfo and repose of persons of ordinary sensibilities, / (2) Offensive odors tm, privies and other simile: places, semprocess" i or 43) Offensive the use or possession of chemicals from industrial activities wblch disturb the comfort and repose oPo (4) ORenat Edon from smoke from the burning of trash, ru rubber. chemicals or other tAMP Of eubstaacea; • (5) Off Ye odors from stagnant pools allowed to remain on y premises or from prbaga, refits, offal or dead animals on any promises. (Code 1986,11 14.21,14.23) / Sec. 20.3. Garbada, trash sad mbblah nuiss_ see-Generally, (a) Storing or keeping garbage, trash and rubbish. The storing or keeping any and all O /stacks, heaps or piles of old lumbar, refuse, junk. old an or machinery or thereof, O O garbage, trash, rubbish, scrap material, mini, demolished or partly demolished res or buildings, piles of woes, bricks or broken rocks on any premises bordering any pu Ik street supp.Ns 1 1390 • • 120-1 DENTON CODE E Saturday; provided, however, that the city council may issue specisi permits for such work at other hours in ease of urgent necessity and in the interest of public safety and (k convenience; 151 The creation of any loud and excessive noise in connection with the loading or un- loadirg of any vehicla or the opening or destruction of bales, boxes, crates or con• tainers; (6) The use of any drum, loudspeaker or other instrument or device the u pose of attracting attention by the creation of noises to any performance. motion picture house, sale of merchandise or display which causes crowds or people to block or congregate upon the sidewalks or streets near or adjacent thereto. (Code 1966, If 14.20, 14.21) Cross reference-Animal noise, 16.26. Sec. 20.3. Odors. (a) it shall bei unlawful for any person to create or cause any unreasonably noxious, unpleasant or strong odor which causes material distress, discomfort or injury to persons of ordinary sensibilities in the immediate vicinity thereof. (b) it shali be unlawfW for any person to create or cause any odor, stench or smell of such terfare with the comfortable character, strength or continued duration sato bs tial sensibilities. enjoyment of private homes by persons (c) The following acts or conditions, among others, are declared to be odor nuisances in violation of this Code, but such enumeration shall not be deemed to be exclusive: I11 Offensive odors from cow lots, hog pens, fowl coops and other similar places where animals are kept or fed which disturb the comfort and repose of persons of ordinary sensibilities; (2) Offensive odors from privies Ltd other similar places; { (3) Offensive odors from the use or possession ofchemicals or from industrial processes or activities which disturb the comfort and reposs of persons of ordinary sensibilities; (4) Offensive odors from smoke from the burning of trash, rubbish, rubber, chemicals or other things car eubatenew • (5) Offensive odors from stagnant pools allowed to remain on any premises or from rotting prbsp, refuse, offal or dead animals on any premises. (Code 1966,1114,22, 14-23) Sec. 20.5. Oarba#4 tr la uLd mbbfsh nul" oes-Generally. Gash and rubbish. The storing or keeping of any and all stub(al, hasps asps ~ or or piles of keeping g old Iumbarmber, refuse, junlt, old can or ms or Pvi+ thereof, • ~*y garbage, trash, rubbish, songs matsrW, ruins, demolished or pertly demolished structures or buildings, piles of stones, bricks or broken rocks on any promises bordering any public street 9upp NO 1 1390 ! Agenda Ng 4/- CITY COUNCIL REPORT FORMAT Agenda IN Date _~.~-~g7 ----r-'--~-- TO: Mayor and Members of the City Council FROM: Rick Svehla, Deputy City Manager DATE: April 15, 1997 SUBJECT: Hold a public hearing and consider an ordinance to rezone 20.017 acres from the Agricultural (A) zoning district to the Single Family 10 (SF-10) and Single Family 7 (SF-7) zoning districts on property located on the north side of Ryan Road, approximately 100 feet east of La Mancha Drive. RECOMMENDATION: The Planning and Zoning Commission recommena6d approval of the rezoning request (7-0) at its meeting on April 9, 1937. SUMMARY: See Planning and Zoning Commission Report. BACKGROUND: See Planning and Zoning Commission Report. PROGRAMS. DEPARTMENTS OR GROUPS AFFECTED: Not applicable. FISCAL IMPACT: None. Please advise if I can provide additional information. RESP LY SUBMITTED, i ick Sve la Deputy City Manager Prepared by: Donna Bateman Senior Planning Technician Attachment #1: Planning and Zoning Commission Report. Attachment #2: Draft Planning and Zoning Commission Minutes from April 9, 1997. Attachment #3: Ordinance. ! ` s • • ATTACHMENT 1 PLANNING AND ZONING COMMISSION REPORT FFTFOro Mayor and Members of the City Council : Pl anning and Zoning Commission Date: April 15, 1997 Subject: Z-97-005 GENERAL INFORMATION Applicants: Dale and Craig Irwin Kent Key 525 S. Carroll Boulevard 25 Oak Forrest Circle Suite 100 Denton, TX 76205 Denton, TX 76201 Owner: Custom Designs, Inc. P.O. Box 50877 Denton, TX 76206 Action: Request to rezone from the Agricultural (A) zoning district to the Single Family 10 (SF-10) and Single Family 7 (SF-7) zoning district. Location and Size: The subject property consists of a 20.017 acre tract located on the north side of Ryan Road, approximately one hundred (100) feet east of La Mancha Drive. Surrounding Land Use and Zoning: LOCATION ZONING LAND USE North: Agriculture Vacant and Single Family Residences South: PD-22 Good Samaritan Nursing Facility East: SUP-140 & Ag. Denton West Mobile Home Park & Single Family • West: SF-16 Single Family Residences Denton Development Plan (DDP): Low intensity Area #62 (81% allocated), SPECIAL INFORMATION The property is not platted. Platting the property will be necessary to divide the lot into E • seventy four (74) lots, as proposed, following approval of the rezoning request. Public • • improvements needed to support this development include the construction of streets; the extension of water and sewer lines; fire hydrants; and sidewalks. These Issues will be addressed during the platting phase. • • BACKGROUND The subject property was annexed into the city limits and given the Agricultural (A) zoning classification in July, 1971. A neighborhood meeting was held on March 20, 1997. During the meeting there was concern expressed from property owners to the west regarding the size of the lots abutting their properties, the Montecito del Sur subdivision, The applicants proposed rezoning the lots to the SF-10 (10,000 square foot minimum) zoning district with platted lots of 11,000 square feet minimum. After further concern was voiced, the item was pulled from the March 26, 1997 Planning and Zoning Commission agenda and an additional neighborhood meeting was scheduled for April 7, 1997. After an agreement was made between the developers and surrounding homeowners, all opposition was pulled. NOTICE Ten (10) property owners were notifed of the request on March 14, 1997 and on March 26, 1997. Seven (7) reply forms have been returned in favor and none have been returned in opposition. ANALYSIS The table below will provide a summary of the Plan related analysis for this projoat Denton Development Plan Policy Analysis Summary Low Intensity Area Development Elating vs. Policy POLICY COMMENTS SignTKandy somewhd Consistent r lmonaiment inconsistent To be eorslslend with the Plan, s Arloceded Mansmy (exoting zoning) daeiopmerk should n01 exceed ks 1201.02 trim x allocated kdensry. Actual lrsa~ ty (propcGd zoning) - 610 35 trips Strict sale plan control within 1,600 last of The protxud rezoning is for low density sedsting low density res;denllat. residential but s ska plan wkl not be x rov'"O. TraMK design to ensure thal Multi-Farrvly w Non-RasidertW uses have access to Not Applicable. collectors or larger anerods with no dram access through residemA streets. SVHKier# grim space, rsereational . fec0dise and clNersky of perks we Park plan is voluntary provided. i Input trio plwvring by neighborhood A neghborbood r)"ing was Mid on assoeieabns and councils b encouraged March 20. t9g? and sehdufd again an x • April 7, 1497 at City Hall West J Neighborhood service cof4w Is Nd Applicable. ® • ancounagd. separe7,on Not Applicable Page 2 3. i • • 0 l C'. c..'-..f, R W YncrSo-3i';'Y..°kY..'cC~ i~r........ . 1 Any arm d corirwoue efitp comrrwcW development Is strongly d'acouragad In Not Applicable. or Weer low irt"Ity areas. Topography me topography d the lid would nd x ""Aare with adacwrt properAa. Loa lydwwy Arw Darned - The primary pipom d IMa am Is to ensure the ovoran W d L"Iramporlabon belanee by cortronhg da overall dwwy and hbraly. Furthw. 9ase areas reprowt peffwy howirq arar h ft Cy cl Denton Thus. V*" areas ahoLAd anpheefze rasidertW use kvioad of a mbdure of residential and normider". RECOMMENDATION I The Planning and Zoning Commission recommended approval of this rwuest V-0). ffff ALTERNATIVES 1. Deny to request. 2. Approve the regetst as submitted. 3. Approve the request with other conditions. 4. Postpone consideration. ENCLOSURES 1. Proposed Rezoning. 2. Location Map. 3. Surrounding Zoning Exhibit. i i r Page 3 WWI MAI" • • ENCLOSURE 1 Z-97-005 (Ryan Road) NORTH Zoned AG S 89o17'i6"E 976.15' c SINGLE FAMILY - 7 T lV 1 ~ m N w~ J co C3 1% I ~u ~ N W _ x v C b (n C C b c ~W 7 N J p 1` o z z y C •i i f y N 89°01'50"W 976.98' Ryan Road Ico' ROW) S Date: 4/7/97 Scale: Hone • s ENCLOSURE 2 0 - M Z97= 05 I I o C c_ 7 w I o % Ro 00 E 4 O 1 a I • h h ~ I • • 65 _ SF-10 _rr f M - w t ' c f r a PD 1 SF- a SF-10 SF-7 20 Cr lit q/% - 7r; - t, i T PD r .193 41 gr t PD 22 ETJ • i -E I IN - is • • ATTACHMENT 2 P&7, Minutes J=Jl ti April 9, 1997 f J J~~ I~ Page 5 ! ~,t IV. Hold a public hearing and consider making a recommendation to rezone a 20.017 acre tract from the Agricultural (A) zoning district to the Single Family 10 (SF-10) and Single Family 7 (SF-7) zoning districts. The tract is located on the north side of Ryan Road, approximately one hundred (100) feet east of [a Mancha Drive. (Z-97-005) Nis. Russell returned to chambers at 6:15 p.m. Ms. Russell read the rules of procedure for the public hearing and opened the public hearing. Ms. Bateman: This request has changed some from what is in your backup. This is a little over twenty acres and the request is to rezone from the Agricultural zoning district to the SF-7 and SF-10 zoning districts. The property is not platted and there are several issues than will be addressed during the platting stage that will include the construction of streets, water and sewer lines, and other issues. The property was annexed in 1971 and was zoned Agricultural at that time. On March 20th we had a neighborhood meeting and the neighbors were concerned about lot sizes. The applicants were proposing lots in the SF-10 district that would be approximately eleven thousand square feet. There was opposition to that so the applicants pulled it off of the last agenda. The applicants and the neighborhood met and have made some agreements concerning some issues. At the time that I wrote my staff report there was eighteen percent opposition, as you can see by looking at the reply forms that opposition has been pulled. We now have seven reply forms in favor and zero in opposition. At this time you are looking at the zoning and not the lot layouts. The design of the lots will be looked at during the platting phase. Mr. Svehla: The requirement for the SF-10 will be ten thousand square foot lots. The developer can certainly plat bigger lots than that, There is no restriction, but understand that unless there is some condition attached to the zoning when they come to plat they can be ten thousand square foot lots. Nis. Russell: Would the petitioner care to speak? Mr. Kent Key: My name is Kent Key and my address is 25 Oak Forrest Circle. I am developing this property along with Dale and Craig Irwin. We did have a neighborhood meeting and there was • some concern. I live near this property and I understand their concerns, I know what my concerns would be. That is why we put SF-10 on the side that abuts their neighborhood. They wanted us to raise the lot size and leave the zoning the same and we agreed to that on that side of the street. They also wanted us to lose a lot on the other side of the street and we did agree to that. When we bring it in for platting it will reflect those changes. That is how we gained approval from the neighborhood. I think we have a good transition. We have a trailer park community down the road • and we are just trying to make the transition from the large estate homes down to the smaller less O • costly homes. I think this will do that, Nis. Russell: Is there anyone to speak in favor of the petition? Mr. Henry Rife: Niy name is Henry Rife and my address is 2248 Stonegate. I am probably the spokesman for the Montecito people who live next door. We had a very good conversation with c , • • P&Z Minutes IT [ April 9, 1997 A~- , U r Page 6 Kent and the ]resins and we are very pleased to have them next to us. We are looking forward to this development. I 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. Does staff have any final remarks? Ms. Bateman: Staff recommends approval. As Mr. Svehla said if you want to place the condition on the zoning then you can do so. We will address the lots when the property is platted. Mr. Powell: I move we recommend approval of Z-97-005. Ms. Schertz: Second. Ms. Russell: Any discussion? All in favor please raise your right hand. Opposed same sign. Approved. (7-0) V. Consider amending Section 34-114(1xd) of the Code of Ordinances concerning Estate Subdivisions. Mr. Salmon: What has happened here is that we have an ordinance that says that you can built and estate style street as long as all of your lots are one acre or larger, and you have at least one hundred feet of frontage. Frankly we have never treated it that way, on several occasions we have approved plats with pie shaped lots and flag shaped lots. A lot of those probably did not meet this requirement. I don't think it was ever our intention to not allow these type of lots, obviously we don't have a problem with them. In order to do this legally and meet all of our ordinance requirements we would like to change the word "frontage" to "lot width." Lot width is defined in the zoning ordinance as being measured at the building line setback. It would be much easier to get a hundred feet at the building line than at the frontage line. Staff is recommending that we make this change to the ordinance. Mr. Cochran: I move that we recommerxi to the City Council that Section 34-114(1)(d) of the Code of Ordinances be amended and require one hundred feet of lot width instead of one hundred feet of lot frontage for estate lots. • Mr. Jones: Second. ` Ms. Russell: Any discussion? All in favor please raise your right hand. Opposed same sign. Approved. (7-0) VI. Consider amending Section 34-115(g)(2) concerning driveway corner clearance standards. • • i Mr. Salmon: This particular one is a little bit of an anomaly. When the ordinance was changed back in 1988 we intended for the corner clearance at two local streets to be fifty feet and it shows that in all of the draft ordinances. For some reason when the ordinance went to City Council it wasn't that way and then it was codified. The only difference between the draft ordinance and the adopted ordinance is that the draft ordinance added one more line for local/local corner clearance { 4 ~ • • ATTACHMENT 3 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A CHANGE FROM THE AGRICULTURAL (A) ZONING DISTRICT CLASSIFICATION ANI) USE DESIGNATION TO THE SINGLE FAMILY 10 (SF-10) AND SINGLE FAMILY 7 (SF-7) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION FOR A 20.017 ACRE TPJ.CT LOCATED ON THE NORTH SIDE OF RYAN ROAD, APPROXIMATELY ONE HUNDRED (100) FEET EAST OF LA MANCHA DRIVE; PROVIDING FOR A PENALTY IN THE MAXA4UM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Mr. Craig Irwin initiated a change in zoning for a 20.017 acre tract of land from the Agricultural (A) zoning district classification and use designation to the Single Family 10 (SF-10) and Single Family 7 (SF-7) zoning district classifications and use designation3; and WHEREAS, on April 9, 1997, the Planning and Zoning Commission recommended approval of the change of the zoning changes; and WHEREAS, the City Council finds that the changes in zoning will be in compliance with the Denton Development Plan; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the zoning district classification and use designation of the 2.686 acres of land described in Exhibit A is changed from the Agricultural (A) zoning district classification and use designation to the Single Family 10 (SF-10) zoning district classification and use designation under the comprehensive zoning ordinance of the City of Denton, Texas. I SECTION 11. Thai the zoning district classification and use designation of the 17.348 acres of land described in Exhibit B is changed from the Agricultural (A) zoning district classification and use designation to the Single Family 7 (SF-7) zoning district classification and use designation under the comprehensive zoning ordinance of the City of Denton, Texas. • SECTION III That the City's official zoning map is hereby amended to show the change in zoning district classification. ' SECTION IV. 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. • o ti...- of • f SECTION V. That this ordinance shall become e8'edive 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, a daily newspaper published in the City of Denton Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this the day of 1997. JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: } 1 4 J I PAGE 2 4 r~ . ~i • EXHIBIT A FIELD NOTES 2.686 ACRES BEING all that certain lot, tract, or parcel of land situated in the C. Poullalier Survey Abstract Number 1006, in the City and County of Denton, Texas, being a part of that certain (called) 20.017 acre tract of land conveyed by deed from South Denton Venture to Custom Designs, Inc. recorded in Volume 1428, Page 335 Real Property Records, Denton County, Texas, and being more particularly described as follows: BEGINNING at an Iron rod set for corner In the north line of Ryan Road, a public roadway, said point being the southeast corner of Lot 34, Block A of Phase t, Montecito Del Sur, an addition to the City of Denton, Denton County, Texas according to the replat thereof recordod In Cabinet F, Page 226, Plat Records, Denton County, Texas; THENCE N 01° 52' 57" E, pass at 10.37 feet an Iron rod found, a total distance of 890.32 feet with the east lint, of said Block A of said Addition to an iron rod found for corner, said point being the southwest corner of that certain tract of land conveyed by deed from Estalena M. White to Jimmie Frank White and wife, Shirley Ann White recorded in Volume 840, Page 444, Deed Records, Denton County, Texas; THENCE S 89° 17' 16" E, 99,50 feet with the south line of said White tract to an Iron rod set for corner, said point being the northwest comer of proposed Lot 11, D Block A of Ridgemont, a proposed addition to the City of Denton, Texas, according to the proposed land plan as drawn by Burke Engineering on 20 February, 1997 and revised on 20 and 22 March, 1997; THENCE S 170 50' 15" E, 106.50 feet with the west line of said Lot 11 to an Iron rod set for corner in the proposed west line of Ridgemont Circle, a proposed public roadway having a proposed right-of-way of 50.0 feet ; j THENCE along the arc of a curve to the left having a central angle of 120° 32'54', a radius of 50.00 feet, an are length of 105.20 feet, whose chord bears S 02° 09 24" W, 86.84 feet with said west line of said proposed Ridgemont Circle to on iron A rod set for corner; r ~ THENCE S 01 ° 52' 57" W. 703.64 feet with said west line of said proposed Ridgemont Circle to an Iron rod set for corner in said north line of said Ryan Road; THENCE N 89° 00' 52" W, 135.02 feet with said north line of sald Ryan Road to • the PLACE OF BEGINNING and containin 2.685 acres of land. • • N• T 61 • • s EXHIBIT B FIELD NOTES 17.348 ACRES BEING all that certain lot, tract, or parcel of land situated In the C. Poulialier Survey Abstract Number 1006, in the City and County of Denton, Texas, being a part of that certain (called) 20.017 acre tract of land conveyed by deed from South Denton Venture to Custom Designs, Inc. recorded in Volume 1428, Page 835 Real Property Records, Denton County, Texas, and being more particularly described as foilows~ COMMENCING at an Iron rod set for corner in the north line of Ryan Road, a public roadway, said point being the southeast corner of Lot 34, Block A of Phase 1, Montecito Del Sur, an addition to the City of Denton, Denton County, Texas according to the ieplat thereof recorded in Cabinet F, Page 226, Plat Records, Denton County, Texas; THENCE S 89° 00' 52" E, 135.02 feet with said north line of said Ryan Road to an iron rod set for PLACE OF BEGINNING In the west line of proposed Ridgemont Circle, a proposed public roadway having a proposed right-of-way of 50.0 feet; THENCE N 01° 52' 57' E, 703.64 feet with said west line of said proposed Ridgemont Circle to an iron rod set for corner; THENCE along the arc of a curve to the right having a central angle of 12V 32' 54", a radius of 50.00 feet, an arc length of 105.20 feet, whose chord bears N 02° 09' 24" E, 86.84 feet with the west line of said proposed Ridgemont Circle to an iron rod set for corner, said point being the southwest corner of proposed Lot 11, Block A of Ridgemont, a proposed addition to the City cf Denton, Texas according to the proposed land plan as drawn by Burke Engineering on 20 February, 1997 and revised on 20 and 22 March, 1997; THENCE N 17° 50' 15"W, 106.50 feet with the west line of said proposed Lot 11 to an iron rod set for corner in the south line of that certain tract of land conveyed by deed from Estalena M. White to Jimmie Frank White and wife, Shirley Ann White recorded in Volume 840, Page 444, Deed Records, Denton County, Texas; a THENCE S 89° 17' 16" E, 876.84 feet with said south line of said White tract to an r iron rod found for corner, said point being the northwest corner of that certain tract of land conveyed by deed from Estalena M. White to James L. Helm recorded in Volume 665, Page 491, Deed Records, Denton County, Texas; • THENCE S 01° 45' 39" W i~ ® • pass at 223 feet the northwest corner of that certain tract of land conveyed by deed from Frank L. Helm and wife, Minnie M. Helm to James L. Helm recorded in Volume 381, Page 256, Deed Records, Denton County, Texas, a Coal distance of 895.45 feet with the west line of said Helm tracts to an iron rod found for corner in said north line of said Ryan Road; THENCE N 89° 00' 52" W, 843.14 feet with said north line of said Ryan Road to the PLACE OF BEGINNING and containing 17.348 acres of land. /3, • • Aoendi No. Agenda Itrm D / om Date I~ LILA CITY O!• DENTON, TEXAS MUNICIPAL BUILDING ~ DENTON, TEXAS 76201 ~ TELEPHONE (817) 566-8307 Office of the City Manager TO: Mayor and Members of the City Council FROM: Rick Svehla, Deputy City Manager DATE: April 9, 1997 I RE: Rezoning of Planned Development 126 The agenda back-up for this proposal indicates that 732 acres will be considered for rezoning to agriculture. Today we received a new legal description which changes the acreage slightly to 795.89 acres. Please use this new figure when considering this proposal. Please let me know if you need any further information. I R ck Sve la Deputy City Manager 1s i J i r J ' 'Dr,icand to Quality &*r&-t" t4 • Agenda No. Agenda Item CITY COUNCIL REPORT Dale TO: Mayor and Members of the City Council FROM: Rick Svehla, Deputy City Manager DATE: April 15, 1997 SUBJECT: Hold a public hearing and consider an ordinance rezoning 732 acres from Planned Development 126 (PD-126) to the Agricultural (A) zoning i district. The subject property is located from 1,500 feet south of US 380 to 3,800 feet south of McKinney Street, approximately 6,000 feet east of Mayhill Road. RECOMMENDATION: The Planning and Zoning Commission recommends approval of the request (6-0). SUMMARY: See Planning and Zoning Commission Report. BACKGROUND: See Planning and Zoning Commission Report. , PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: Not applicab'e. FISCAL IMPACT: None. 1 0 a exam ELM • • Please advise if I can provide additional information Respectfully submitted: i Rick Svehla Deputy City Manager Prepared by: a ter E. eaves, Jr., AICP Urban Planner J Attachment #1: Planning and Zoning Commission Report. Attachment #2: Ordinance. Attachment #3: Draft minutes of 3/26/97 P&Z meeting. j • f~ z ATTACHMENT 1 PLANNING AND ZONING COMMISSION REPORT F City Council Planning and Zoning Commission April 15, 1997 Z-96-038 FORMATION Land Advisors Inc. 5580 Peterson Lane Gallas, Texas 75240 Owner: Same as above Action: Request change in zoning for 731.26 acres from Planned Development 126 (PD-126) to the Agricultural (A) zoning district (Enclosure 1). Location: The subject property runs north and south from US 380 to approximately 3,800 feet south of McKinney, and is approximately 6,000 feel east of Mayhill. Surrounding Zoning and Land Use: North: Agricultural and Commercial zoning, mixed uses. South: Agricultural and PD-132 zoning, vacant and large lot residential uses. East: ETJ, vacant land and residential uses. West: ETJ, vacant land and residential uses. Denton Development Plan: Moderate Intensity Area #40 (71% allocated) Low Intensity Area #44 (110% allocated) Low Intensity Area #45 (51% allocated) Low Intensity Area #56 (34% allocated) Low Intensity Area #57 (66% allocated) SPECIAL INFORMATION The subject property is not plaited. The applicant is proposing a "large lot' single family residential subdivision. Water service is proposed to be extended to the property. Sewer service will also be extended. Sidewalks, fire hydrants, streets, and drainage improvements will be provided as required through the plat process. BACKGROUND • The property encompassed by Planned Development 126 was annexed into the City ® • J of Denton by a series of ordinances enacted between 1984 and 1987. Page 1 I Z 3. 4 e • November 4, 1986 690 acres of the subject proporty is rezoned by Ordinance 86-221 from the Agricultural (A) zoning district to a Planned Development, and a concept plan is approved. January 6, 1987 Another ordinance is adopted for the same 690 acres due to an incorrect advertisement. October 18, 1988 Ordinance 88-165 is approved amending PD-126 to include a total of 867 acres and approving a new concept plan for the entire acreage. September 4, 1990 Ordinance 90-125 approves an extension of the development phasing schedule for PD-126. NOTICE Thirty-two (32) notices were mailed on March 14, 1997. Two (2) replies have been received in favor, one (1) reply has been received opposed. ANALYSIS This request is a rezoning from Planned Development 126 to the Agricultural (A) zoning district for 731.26 acres. A small portion of the subject property is located in a moderate intensity area, the majority is in a Low Intensity Area. The table below will provide a summary of the Plan related analysis for this project. Denton Development Pian Policy Analysis Summary Low Intei Area Development Rating VS Pi POLICY COMMENTS tr,WnW 1W t,w,w wn • To be consislent with the Plan, a AAoaated intensity . 43,676 intensity trips, development should not exceed Its Proposed Intensity . 10,056 intensity trips. x allocated intensity. 732 acres x 10 VO'ga . 7,320 Amenity center . 421 x 650 Vdrga . 2,736 strict site plan control within 1,600 Low density residential use within 1,600 lost feet of existing low density No 3ita plan proposed. Not being proposed X residential. as a PD. ® Q Q Page 2 y I • Traffic design to ensure that Mult- Not Applicable Famiry or Non-Residental uses have access to oollecton or larger Arterids vnth no dred access through residential str9sts. J Sufflclent groan spec, rscreatlonal Landscaping will be required ss per tlw Ciys x faatiOes and diversity of parks are landscaping Screening, and Treo provided, Preservation Ordnance, No buHoryerds are proposed, Input into punning by neighborhood No neighborhood meeting held, associations and councils Is onoouraged, Neighborhood service center Not Applicable. concentration Nonrasidential 'A mile seporabon Not Applicablo. Any form of oontnuous strip Not Applicable. comma rdal development is strongly discouraged In or near low Intensity areas e proposed rezoning -does not cover the entire area of PD-TYM7 acres). us request leaves a portion of PD-129 (Enclosure 2) at the north end, a large block west of Trinity and south of Blagg, and a 'doughnut hole' piece in what is identified as Tract II. The area at the northern end has a concept plan with uses as follows: ®32 acres of General Retail @10 acres of Multi-Family @20.8 acres of Light Industrial This area is entirely within a Moderate Intensity Area. The large block has the following uses: 05 acres of Park @30 acres of Single Family Agricultural QSome Single Family 7 @47 acres of Cluster Housing at 8 units per acre • The "doughnut hole" appears has three existing homes. RECOMMENDATION The Planning and Zoning Commission recommends approval of the rezoning from Planned Development 126 (PD-126) to the Agricultural (A) zoning district for the • proposed 731.26 acres (6-0). O Page 3 s • pop Prz • ♦-eY)VM]vx tnaw,vTYJ.i,G'LLM aa~.. ALTERNATIVES 1. Approve as recommended. 2. Approve with conditions. I 3. Deny. 4. Postpone consideration. ENCLOSURES 1. Location map. 2. Concept map for PD-126. i I } i Page 4 6. ? i • • • scar, Haar ,ivo rwo IrJ !31 O v -y I>ar W 'i tmr..... I I ~5'\1 c+ RECEIV D SEP 0 i >JJiT4^ DEYi DFl'hTi ZONM LbrATEN W nw~ r wnraw t~VT R.U 0 ENCLOSURE2 u+"wY t,o • t t iL,, 4„(~~ flR Cp of' i►o tF-~ I IF-A t 11 t 04 M.7 onj ~a t tt p ,u/1~K~Q~ h V Cl-1 1, FyeK~ r Fyn' &F- A as 17 a 1 I•{ Nt 4o F- , ~I is F-F ,t 8f_7 ne PAAK 77 H F; CL-8 ,t YF 4 *Alp ,CHIPAAK 1 FMK ,F l0 a~ H . $ Lao tF-f0 rta tf-ty of s 31 CL-~ ! f of PARK ,F•A ae OR ~t a-, I 0 1 37 Mi OF OA *1 t it OFF M f+~ MF wk o ~ ~ o 0 J LAKEVIRW PLANNED DEVELOPMENT • ATTACHMENT 2 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A CHANGE FROM PLANNED DEVELOPMENT 126 (PD-126) TO THE AGRICULTURAL (A) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION FOR 735.892 ACRES OF LAND LOCATED FROM 1,500 FEET SOUTH OF US 380 TO 3,800 FEET SOUTH OF MCKINNEY STREET, APPROXCMATELY 6,000 FEET EAST OF MAYHILL ROAD; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000,00 FOR VIOLATIONS THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Land Advisors Inc , owner of the subject property, initiated a change in zoning for 735.892 acres from Planned Development 126 (PD-126) io the Agricultural (A) zoning district classification and use designation; and WHEREAS, on March 26, 1997, the Planning and Zoning Commission recommended approval of a change in zoning from Planned Development 126 (PD-126) to the Agricultural (A) zoning district classification and use designation, and WHEREAS, the City Council finds that this change in zoning district will be in compliance with the Denton Development Plan; NOW, THEREFORE, D THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: Section I. That the zoning district classification and use designation of the 735.892 acres described in Exhibit A, attached hereto and incorporated herein, is changed from Planned Development 126 (PD-126) to the Agricultural (A) zoning district classification and use designation under the comprehensive zoning ordinance of the City of Denton, Texas. Section IL That the City's official zoning map is amen4ed to show the change in zoning district classification, • e io lll. 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 Lf this ordinance is violated shall constitute a separate and distinct offense. Section lV. 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, a daily newsraper published in the City of Denton, • Texas, within ten (10) days of the date of its passage. I l /I . • • w PASSED APPROVED this the _ day of 1997• i I JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: _ f APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY i BY: J i i e I PAGE 2 e won" • PFR 08 147 02t42RI RL65T LIC►CITER/J4tcVi P.2~,11 mcr I BEING a tract or parcel of land situated in the Moreau Forrest Survey, Abstract No. 417, Denton County, Texas, said tract or parcel being all of that certain 131.358 acre tract, "Tract 7" as described in County Clerk's Docvmerat Number 94-0045817, Deed Record, Denton County, Toms, and being more particularly described by metes and bounds as follows BEGINNING at a point in the intersection of Blagg Road and Trinity Road, said po'rtt also being the Southeast cornet of the herein described tract; 71irNCE along the oocupied North line of said Blagg Road, North 89' 06'20" West, 1394.13 feet to a point for cornet; THENCE North 00' 2944" East, 264.81 feet to a point for corner; THENCE North 89' 35'23 0 West, 900,23 feet to a point for corner; THENCE departing said Blagg Roid, North 27' 05' 46' East, 471.01 feet to a point for an inner ell corner of the herein described tract, THENCE North 62' 32' 50" West, 827.66 feet to a point for comer; THENCE North 00' 01'30" West, 1229.91 feet to a point for corner, THENCE South 89' 52' 11" East, 1444.44 feet to a point of interaction; THENCE North 89' 55'22* East, 1388.89 feet to a point for corner, said point tming in Trinity Road; THENCE South 00' 30' 53" West, 2322.47 feet to a POINT OF BEGINNING and CONTAINING 5,721,959 square feet or 131.358 acres of laird area, more or less, contained within these metes and bounds. r 4 i ~~a~zaaarx+cun t + - i • APR 0B '77 02:43PM RLST LIOUTER/JAM VYA P. 3/21 j TRACT n BEING a tract or parcel of land situated in the Moreau Forrest Survey, Abstran3 No. 417, Denton County, Tests, said tract or parcel being all of that Derma 30.199 acre tract, "Trot I" and also being a portion of that certain 242.4220 acre tract as described in County Clerk's Dmment Number 94- 0045817, Deed Records, Denton County, Texas, and being more particWarly described by metes and bounds as follows: BEGINNING at a point in Blagg Road said point also bring the Yonhwe,t comer of the tract desctbed herein; THENCE along said Blagg Road, South 84' 43'47'.C- ast, 1432.17 fret to a point for comer; THENCE departing said Blagg Road, South 04' 50' 49" West, 2522.95 feet to a point for corner; THENCE South 84' 53'05- East, 763.13 feet to a point for corner, said point being on Trinity Road; TIIENCE along said Trinity Road, Sarah 06' 10' 34" West, 1118.20 feet to a point for corner; THENCE departing said Trinity Road, North 84' 43'47' West, 376.20 feet to a point for corner; THENCE South 02' 32' 12" West, 663. 0, feet to a point for corner; THENCE South 87' 10'544 East, 267.83 feet to a point for corner in Trinity Road; THENCE along said Trinity Road, South 43' 21' O1" West, 653.15 feet to a point for comer in the intersection of Trinity Road and Mills Road; THENCE departing said Trinity Road and along said Mills Road, North 87' 12'47' West, 941.34 feet to a point for comer; j THENCE departing said Mills Road, North 01 * 33'30" East, 1161.76 fat to a point for Cotner; f I THENCE North 84' 41'47* West, 683.17 feet to a point for comer; • THENCE North 04' 59 40" East, 3685.36 to the POINT OF BEGINNING and CONTAINING 7,440,269 square feet or 170.805 acres of land area, more or less, within these mesas and bounds. ivawnaarx+einml • • O i J . r • • FFR 03 '97 0.:44Pf1 RUST LICFLITER/Jk1E A P.4,11 TRALT 11:1 BEING a tract or parcel of land situated in the Moreau Forres• -tuNvi, Abstract Nurnber 417 aad the W Durham Sur%vy, Abstract Number 330, Denton County, Texas, saia Tact or parcel being all of that certain t.193 acre tract, "Tract 2", all of that certain 53.975 acre tray "Tract 3", all of that certain 0.544 acre tract, "Tract 4", all of that certain 129.437 acre tract, "Trac, 5", all of that certain 63.151 acre tract, "Tract 6, Pk:cel I", and a portion of that certain k42 4220 acre tract as described in County Clerk's Document Number 94-0045817 and also being all of that certain tract described in Volurne 251, Page 488, all of that certain tract described in Volume !45, Page 305, and all of that certain tract described in County Clerk's Document number 93-0064;". Deed Records, Denton County, Texas, and being more particularly described by metes and bounds As follows-. BEGINNING at a point in the intersection of Trinity Road and Mills Road, said point also being the West line of the herein described tract; THENCE along said said Trinity Road, North 45' 42' 41' East, 799.72 feet to a point for comer; THENCE North 06' 10' 34" East, 1669,18 feet to a point for corner; THENCE South 84' 53'05" East, 646.69 feet to a point of inter:.wtion; THENCE departing said Trinity Road, South 84 ° 47360 East, 368.19 feet to a point for comer; THENCE South 35' 34' 32' East, 320 i2 feet to a point for comer, THENCE South 69' 28' 16" East, 422..5 feet to a point for comer; THENCE South 64' 46 54" East, 323.71 feet to a point for corner; THENCE South 05' 54' 23" East, 507 57 feet to a point for corner; THENCE South 23' 25' 50" East, 490.89 feet to a point for comer; THENCE South 34' 06'54" West, 232.82 feet to a point for comer; • THENCE South 33' 01' 16" East, 281.65 feet to a point for comer, THENCE South 00' 35' 13" West, 13.32 feet to a point of intersection; , THENCE South 00' 33'07" West, 409.37 feet to a point of intersection; • THENCE Sout' 06' 1 T 32' East, 792.72 feet to a point of intersection; 0 • THENCE South 03 ° 28'02" West, 576.21 fat to a point for corner, 13. .y i i WP OEf '97 CQ:4EFfl RCST LIOFI7C.°.-JPMW4 P.S/11 THENCE North 55' 02'53" West, 437.40 feet to a point of interwtiun, THENCE North 45' 26' 15" West, 306 29 feet to a point of intersection, THENCE North 57' 21' 12" West, 448.62 feet to a point of intersection; THENCE North 35' 50'00' West, 880.95 feet to a point for comer; THENCE North 87' 39'33" West, 196 71 feet to a point for comer; THENCE South 03' 13' 45" West, 1182 64 feet to a point for corner; THENCE South 60' 26'450 East, 546.69 feet to a point of intersection; THENCE South 37' 06'22" East, 406.29 feet to a point of intersection; THENCE South 40' 44'094 East, 551.29 feet to a point of intersection; THENCE South 33' 41' 46" East, 277.90 feet to a point for corner; I THENCE South 25' 06'00" West, 152 09 feet to a point for corner; THENCE South OS' 56'29" West, 296.8: point for corner; THENCE North 48' 20'23 0 Eau, 25 4cxt for corner; THENCE South 02' 27' 3 S West, IA3 86 M to a point of interactim THENCE South 02' 28' 16" West, 949 52 feet to a point of intersection; h THENCE South 02' 30'01 1 West, 1339.23 feet to a point of intersection; THEM, E South 83' 27' 55" East, 352.05 feet to a point for corner, THENCE South 02' 27'49* West, 130.26 feet to a point for corner; i THENCE South 81' 13'32* West, 86.24 feet to a point of intersection; THENCE South 68' 27'45' West, 111.15 feet to a point of intersection; THENCE South 55' 08'07' West, 134.14 feet to a point of intersection i THENCE North 83' 40'48" West, 78.18 feet to a ;toiut of intersection; i O THENCE North 63' 27122* West, 149.69 feet to a point for comer, y" PPR Ce •97 02:47Pi1 PLST LIC-+LiTER/JanE5Or4 P. 6/11 THENCE South 25' 57' 56" West, 232.50 feet to a point for corner; THENCE South 63' 27'22" East, 149.37 feet to a point iar corner; THENCE North 26' 02'38" East, 168.76 feet to a point for an interior ell comer, j i E THENCE South BY 40'470 East, 122 65 feet to a point ofiotersection; THENCE North 55' 08'074 East, 150.52 feet to a point of intersection, THENCE North 68' 27'44" East, 101.42 fat to a point of intersection; THENCE North 81' 13'31" East, 62.77 feet to a point of intersection; f THENCE South 87' 32' 12" East, 15.00 feet to a point of intersection; THENCE South 02' 27'4V West, 1800.00 feet to a point for comer; THENCE South 26' 28'54" West, 274.05 feet to a point for comer, THENCE South 42' 52'480 West, 220 14 fat to a point for comer, said point being on the North right-of-way line of Highway 426(a 100' right-of-way), THENCE along said North right-of-way line, North 47' 27' 12" West, 319.58 fen to a point of intersection, ~ I 'MENCE North 46' 46'12" Wrst, 95620 feet to apoint of curvature, THENCE 204 50 feet along the arc of a curve to the left, having a radius of 710.61 het, a central angle of 16' 29' 18", and a chord bearing and distance of North 55' 21'51* West, 203.79 feet to a point for comer; THENCE departing said North right-of--way line, North 03' 12'57" East, 1566.45 to a point far an interior ell oomer, THENCE North 64' 35'241 West, 413.13 feet to a point for comer; t I HENCE North 01' 5931" East, 706 01 feet to a point of intersection, j THENCE North 02' 40' 18" East, 2126,97 feet to a point for corner; THENCE North 84' 51' 02" West, 554.33 fat to a point for corner, THENCE North 05' 48'06" West, 10.33 fat to a point for corner; k _Z: 1 NPR 03 '97 OZ:41;Pt1 "T LICHLITER/JFrESC44 P.7/11 THENCE Ncnh 88' 39 36" West, 856.14 fed to a point for corner, said point being in Trinity Road, THENCE along said Trinity Road, North 02' 51' 54" East, 527.49 feet to a point for comer, THENCE departing said Trinity Road, South 86' 16' 15" East, 651.98 feet to a point for Comer; THENCE North 16' 57 38" East, 146 41 feet to a point for comer, THENCE North 82' 26'52 " West, 707.37 feet to a point for corner, said point being in Trinity Road; THENCE along said Trinity Road, North 02' 5 i' 54" East, 580,38 feet to a point for corner; THENCE departing said Trinity Road, South 86' 49'21* East, 186.90 feet to a point for corner, THENCE North 47' 1038' East, 29.14 feet to a point for comer; THENCE North I0' 09'354 %VcA 72 21 fed to a point for comer, THENCE North 39' 48'40" West, 87,14 feet to a point for comer; THENCE North 76.05' SV West, 134.40 feet to a point for comer, said point being in Trinity Road; THENCE along said Trinity Road, North 02' 51' 54" West, 901, 55 feet to a point for corner; THENCE South 97039133* East, 230.55 feet to the POINT OF BEGINNING and CONTAINING 16,832,816 square feet or 386.428 acres of land area, more or less, within these metes and bounds. • r • • • • E J6• I ti r• APR 08 197 02:49PIl RUST L1C7i.ITERi7AMS0(4 P.8i11 TRACT rv PE^IC a i:!ct of parcel of Ind situated in the W. Durham Survey, Abstract 330, Denton County, Tow, said tract of parcel being all of that certain 47 300 acre tract, "Tract 6, Parcel 2' as described in County Clerk's Doeument Number 94-0045817, Dad Records, Denton County, Texas, sand tract or parcel being more particularly described by metes and bounds as Follows- BEGINNING at a point in the South right-of-way line of Highway 426 (a 100 foot riglci-of-way), said point also being the North-Avst corner of the tract described herein; THENCE 88.68 feet along a curve to the right having a radius of 610.61 feet, a cvmral angle of 08' 19' 16", and a chord bearing and distance of South 51' 16' 48" East, 88.60 feet to a point of tangency; THENCE South 46' 46' 12" East, 955.59 fat to a point of intersection; THENCE South 47' 27' 12' East, 315.62 feet to a point for corner; THENCE departing said right-of-way line, South 01' 58' 17" West, 147235 feet to a point for comer; THENCE North 86' 55'270 West, 1111.07 feet to a point for comer, i THENCE North 03' 58'254 East, 2340.84 feet to the POINT OF BEGINNING and CONTAINING J 2,060,423 square feet nr 47.301 acres of land area, more or less within these metes and bounds; • +LAwwstnx~rn+e _ • O • t i i • r • ~'Tl~c ~'rl RUST I.ICHLITERiJFt'E~JN P.9~11 Course: N 894)6-20 W Disftno : 13941:%0 Course: N 00-2iM4 E Distance: 264.810 Course: N 89-355-23 W Distance: 900.230 Course: N 27.05-46 E Distance: 471.010 Course: N 82.32-50 W Distance: 827.860 Course: N C"1.50 W Distance: 1229.910 Course. S 89-52.11 E Distance: 1444.44D Course: N 89-56-22 E Dimarrw 188.800 Course. S 00-30-53 W Distance: 2322,470 Perimeter. 10243.550 Area 8721959.378 151.358 acres Mapo eck Closure - (Uses bated courses 3 COGO Units) Error of Closure: 0.0127 Course: S 40.07.59 W Precision 1:806893.53 Figure Name, 2 Course: S 84.43.47 E Distance: 1432.172 Course: S 04.50.49 W Distance: 2522.950 Course: S 8453-05 E Distance: 763.130 Course: S 06-1034 W Distance 1118200 Course: N 8443.47 W Distance: 376.200 Course. S 02-32-12 W Dislarice: 663.090 Course: S 81.10-54 E Distance 267.830 Course: S 43.21-01 W Di Uv": 653.150 Course: N 81.1247 W Distance: 941.340 Course: N 01-3330 E Distance: 1161.700 Course: N 644347 W Distance: 683170 Course: N 04.5940 E Distance: 3685.359 Penrnater.14268.351 Area: 7440268.994 170.805 acres Mapdteck Closure • (Uses listed courses & COGO Units) Error of Closure: 0,1498 Course: N 83-54.29 E Precision 1:95279.09 Figure Name: 3 Course- N 454241 E Omar" 799 720 j Course: N 00.10.34 E Distance: 1869.180 Al Course. S 84-53-W E Distance: 646.690 Course: S 8447-36 E 04starce: 368.180 Course: S 35-3432 E Distance: 320.120 Course. S 69-28 18 E Distance: 422.250 Course: S 64-4654 E Distance: 323.710 Course.. S 06-54-23 E Distance: 507.570 Course: S 23.2550 E Distance: 490.890 • • WP Lei '97 CV:51Fni "T LICFLIT ER/Ji41E5I:11 P.1©/11 Course. S 3406-54 W Distance: 232.820 Course: S 33-01-16 E Distance: 281.650 Course: S 00-3513 W Distance: 13,320 Course: S 003307 W Distance: 409.370 Course S 0617-32 E Di.lance. 782 720 Course: S 03-28-02 W Distance: 576.210 Course: N 65.02.53 W Distance- 437.400 Course: N 452615 W Dislance: 306.290 Course: N 57.21.12 W Distance: 448.620 Course: N 35-.%.00 W Distance: 880,950 Course: N 87-09.33 W Distance: 196 710 Course: S 03-13- 45 W Distance: 1182.640 Course: $ 60.28-45 E Distance: 546.690 I Cotton S 37-05-22 E Distance. 408280 Course: S 404449 E Distance: $51 290 Course. S 33-41-48 E Distance 277.900 Course: S 25.06.00 W Distance: 152.090 Comae- S 08-56-29W Distance: 296.820 Course: N 48.20-23 E Distance: 258.990 Course: S 02-27.35 W Distance: 443.880 Course S 02-2618 W Distance: 949.520 Course: S 02.3001 W Distance: 1339 230 Course: S 63.27-55 E Distance: 352.050 Course: S 02-27.48 W Distance: 130,260 Corse: S 81-13-32 W Dislsnce. 86.240 Course- S 68-27-45 W Distance' 111,150 Course: S 55.0807 W Dk4arcl: 134.140 Carat: N 83.40.48 W Distance: 78.180 Course: N 83-27-22 W Distance 149.690 Corse: S 25.57.56 W Distance: 232.500 Corse' S 6327.22 E Distance: 149.370 Course: N 2602.38 E Distance. 168180 Course: S 834047 C Dutence:122.850 Course N 55.08-07 E Distance: 150,520 Course. N %27-44 E Distance, 101.420 Course: N 81.13-31 E Distance: 62,770 Course: S 87.32.12 E Distance: 15.000 Course: S 02.27.40 W Distance: 1800.000 Course S 26.28-64 W Distance- 274 050 Course: S 42-5248 W Distance: 220.140 f Course: N 47.27.12 W Distance: 319.580 Course: N 45-4612 W Distance: 9%200 Arc Lenp81: 204.500 Radius: 710.810 Dente: -1629-19 Course, N 0312-57 £ Distance: 1568.450 • Co~ N 64-3524 W Distance 413 130 Course: NO 1 -59-31 E Distance: 706.010 r Course N 02.40.18 E Distance: 2128970 Course: N 645102 W Distance: SU.330 Course. N 0648-06 W Distance. 10 330 Course' N 88-39.38 W Distance: 8x8.140 Course. N 02-51-54 E Dislartoe 527.490 8 Course: S 661615 E Distance: 851.980 Course: N 1657.38 E Distance: 146410 0 Corse. N 82-2652 W Distance. 707.370 a a ~Q. it • • APR 08 '97 E2*5 FM RUST LICFLITER/JFtCS4r1 P. 12/11 Cares: N 0251-64 E Di Uwm: 580,380 Coupe: S 88 8-21 E Distarm:166.900 Course N 47-1038 E Distmos: 29.140 Coups: N 1D-W35 W DisUuroe: 72.210 Coups: N 39-4840 W Distance: 87.140 Course: N 78-350 W Otomm:134.400 Course: N 02-51.54 W Distance: 901.553 Course: S 87.3933 E Distance: 230.552 Perkrieter: 32837.765 Area: 18832816.225 386.428 acres Ma pchea Ciosrre • (Uses hstod ooumn a LOGO Units) Error of Ckm n: 0.8714 Corse: N 44-MIS W ProcWw 1:48906.63 FVure Name: 4 Arc tenoft 88.679 Radius: 610.610 Deb: S if'-16 Care: S 4646.12 E Distance: 955.590 Course: S 47.27-12 W Diefan , 316.820 Course: 9 01 -58-17 W Distanos: 1472.350 Course: N 86-5627 W Distance: 1111.070 Course: N 033&26 E Disfanoe: 2340.840 Perkneter: 6284.149 Arse: 2080423.257 47.301 acres Mapchs* Cbsure • (Uses tsW courses a 0000 Units) Error of Closure: 0.5402 Course: S 38.50.19 W Precision 1:11633.44 ad. oil, 0 • ~ --_-~-z--~ urc r~oov ' a~m IYII ~ } \ \ p 1 'yi \ ,^a i \ \ \ ~,P 1~ iwrn n • >L d?~+ a~ f~ R"cCEN D ~ , ~~;sra ~ a~ri i;~rt w mrtrc=r,, waa as uoo tamio ~x~~+ wr .s:: r ^:'x... • a ATTACHMENT 3 P&Z Minutes March 26, 1997 Page 2 1H. Hold a public hearing and consider making a recommendation to rezone a 20.017 acre tract from i the Agricultural (A) zoning district to the Single Family 10 (SF-10) and Single Family 7 (SF-7) zoning district. The tract is located on the north side of Ryan Road, approximately one hundred (100) feet east of La Mancha Drive. (Z-97-005) Ms. Russell: The applicant has submitted a letter requesting that this item be postponed until the April 9, 1997. IV. Hold a public hearing and consider a detailed plan for part of Planned Development 14 (PD-14). The subject property consists of 0.549 acres, located on the south side of University Drive (US 380), approximately 850 feet west of Old North Road. (Z-97-002) Nis. Russell: The applicant has submitted a letter requesting that this item be postponed and they will resubmit at a later date, ~'Hold a public hearing and consider a request to rezone approximately 732 acres from Planned rDevelopment 126 (PD-126) to the Agricultural (A) zoning district. The subject property runs north and south from JS 380 to approximately 3,800 feet south of McKinney Street, and is approximately 6,000 feet east of Mayhill Road. (Z-96-038) Ms. Russell read the rules of procedure and opened the public hearing. Mr. Reeves: This is a rezoning of 732 acres from Planned Development 126 to the Agricultural zoning district. The subject property is between Hwy 380 and just South of E. McKinney Road. We first started to review this case last year in October or November. At that time the applicants were proposing to do away with an arterial level street that is shown or our Thoroughfare Plan map. During that public hearing the applicant decided to try to work something out. They have worked that out and the applicant will build two lanes of that road and they will dedicate right- of-way for the other two lanes. They are proposing the Agricultural zoning district which is our most restrictive zoning district as far as permitted uses and the lots have to be at least one acre in size. They have not submitted a preliminary plat at this time, but the proposal several months ago was for somewhere between four hundred and four hundred and fifty lots. The analysis is in your backup and staff is recommending approval. The road location will be shown during the platting stage and i' will run from Hwy 380 to E. McKinney. Nis. Russell: Would the petitioner care to speak? Mr. Rod Zielke: My name is Rod Zielke. Mr. Dan Tomlin is here also and he represents the t) owner of the property. We are here asking for zoning and we have withdrawn our request to amend the Thoroughfare Plan. O 0 Ms. Russell: Is there anyone that would like to speak in favor of the petition? Ms. Kay Wilkinson: My name is Kay Wilkinson and 1 live on the corner of Trinity Road and Hwy 380. We have had one fatality since our last meeting and several accidents in front of our ii c_ „ • • s P&Z Minutes March 26, 1997 Page 3 house. 1 am in favor of this rezoning to Agricultural and I would like to thank the developer and the Commission for working on this and keeping the road in there. We have been working on Trinity and we now have a posted speed limit and weight limit. I would like to know if they have a proposed start date? I would also like to know when the proposed road will be built? Ms. Russell: We will have the petitioner address those questions in his closing remarks. Is there anyone else to speak in favor of the petition? Is there anyone to speak in opposition? Mr. Thomas Kay: My name is Thomas Kay and my address is Rt. 2, Box 1179. This property is surrounded by mobile home parks and I would like to know what kind of homes will be built here. Who is going to want a two hundred and fifty thousand dollar home that is surrounded by mobile home parks? Nis. Nicole Carr: My name is Nicole Carr and my address is 188 Cunningham Road. We backup to tract 2 and our main concern is whether or not we will be annexed into the city. With this road being built are there going to be sidewalks? If this development goes in then McKinney is going to have more traffic. Ms. Russell: A lot of the things that you addressed wil'. be taken care of in the platting stage. Mr. Persau& Last year the Council looked a annexing areas that are surrounded by the city. and they did not give staff direction to annex that. They may look at that again in the future and direct staff to start annexation. At some point in the future those areas that are surrounded by the city will be annexed. Right now we are just talking about the land use. Ms. Russell: Is there anyone else to speak in opposition? Ms. Robin Butt. My name is Robin Butt and my address is Rt. 2, Box 637N. I live down by Camp Copus. My concern is safety. We only have one way in and out and that is west on E. McKinney. This development will add about nine hundred more cars to this road and that is a safety concern. Mr. Cochran: Part of this proposal is to add an arterial from E. McKinney to Hwy 380 and that • will eventually be a four lane road. Ms. Russell: Is there anyone else that would like to speak in opposition? Would the petitioner care to speak in rebuttal. Mr. Zielke: If the zoning is approved then we will try to bring back a plat to the next available ' 6 meeting. We are going to build this development in phases. • b Nis. Russell: We will close the public hearing. Does staff have any final remarks? Mr. Reeves: As we go through the platting process the alignment of the road will be determined. 1 .J P&Z Minutes March 26, 1997 Page 4 Nis. Schertz arrived at 5:45 p.m. Nis. Russell: Will the road be built in phases also? Mr. Reeves: They will preliminary plat the entire subdivision and then develop the project in phases. The road will be built as the subdivision develops. Mr. Powell: Under PD 126 how many lots were proposed? Mr. Reeves: If this PD was built out the way it was proposed it would generate about thirty to forty thousand traffic trips because it is a mixed use PD. Mr. Powell: The point 1 am trying to make is that this is considerably less traffic and considerably less construction than what it is presently zoned for. Mr. Reeves: That is correct. Mr. Persaud: When we did that rezoning to PD 126 it had the potential of bringing in twenty thousand people. It allowed for commercial and multi-family zoning. Mr. !ones: 1 move we approve the request to rezone 731.26 acres from Planned Development 126 to the Agricultural zoning district. Ms. Gamer. Second. Ms. Russell: Any discussion? All in favor please raise your right hand. Opposed same sign. f Approved. (6-0) VI. Hold a public hearing and consider three requests to amend Ordinance 83-110. The subject property is located north of US 77 and west of Windsor Drive.(Z-97-006A-C) a. A request to reduce the front yard setback from twenty-five (25) feet to sixteen (16) feet for Lots 4B and 7B, Block 2, of the Snider Addition, Section 1, and the rear setback from i fifteen (15) feet to ten (10) feet for Lots 6A through 713, Block 2, of the Snider Addition, Section 1. r b. A request to reduce the front yard setback from twenty-five (25) feet to sixteen (16) feet for ots 11 A & 11B, Block 2, of the Snider Addition Section 1. A c. t request to reduce the front yard setback from twenty-five (25) feet to twenty-three feet for p 0 Lot 1, Block 2, of the Snider Addition Section 2. his. Russell opened the public hearing. Mr. Reeves: This is a request to reduce the setbacks established by Ordinance 83-110 for • r AQbMdm Nd, Agenda Items Date 9 7 CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM: Rick Svehla, Deputy City Manager DATE: April 15, 1997 SUBJECT: Hold a public hearing and consider an ordinance amending Ordinance 83-110 (PD-63) to reduce the required front yard setback from 25 feet to 24.3 feet for Lot 1, Block 2, of the Snider Addition Section 2. The subject property is located on the north aide of US 77, west of Windsor. RECOMMENDATION: The Planning and Zoning Commission recommends approval of the request (6-0). SUMMARY: See Planning and Zoning Commission Report. i BACKGROUND: See Planning and Zoning Commission Report. D PROGRAMS. DEPARTMENTS OR GROUPS AFFECTED: Not applicable. FISCAL IMPACT: None. 1 i I • 0 • Please advise it 1 can provide additional Information Respectfully submitted: i Rick Svehla Deputy City Manager I Prepared by: 1 Waller E. "Reeves, Jr., AICP Urban Planner Attachment #1: Planning and Zoning Commission Report. Attachment #2: Ordinance. ' Attachment #3: Draft minutes of 3126197 P&Z meeting. r O f j ~ l i i i I qq i • • ATTACHMENT 1 PLANNING AND ZONING COMMISSION REPORT To: City Councf From: Planning and Zoning Commission Date: April 15, 1997 Subject: Z-97-006C GENERAL INFORMATION Applicant: Ms. Margaret McCarthy 1213 Mockingbird Grapevine, Texas 76051 Owner: Unique International 49 Linderhof Circle Bedford, Texas 76022 Action: Amend Ordinance 83-110 to reduce setbacks in Planned Development 63 (PD-63). Location: The subject property is located on the north side of US 77, west of Windsor Drive (Enclosure 1). ' Surrounding Zoning and Land Use: LOCATION ZONING LAND USE NoM: Sea Endosurs 7 S1ngla family residential uso. SouN: See Endosura 1 Single family residential use. Eaat Sea Enclosure 1 School, park vacanl land, residential use. Weat See £nclosurs 1 Resldenllal use enton eve opmen an: ow Intensity Area #13 (141 e allocated). SPECIAL INFORMATION The subject property is platted An amending plat will need to be done if the requested setback reduction is approved. • BACKGROUND Approximately the southern third of PD-63 was placed in the Agricultural (A) zoning district by Ordinance 69.01, which adopted a new zoning ordinance and zoning map for the City of Denton. The remainder of the property was annexed into the City by Ordinances 77.42 and 62.5. • • October 4, 19!33 33.872 acres are rezoned from the Agricultural (A) zoning district to Plannad Page 1 • • Development 63 (PD-63) by Ordinance 83-110 which adopts a "concept plan" establishing the setbacks for the proposed uses of the PD (Enclosure 2). The applicant first applied for variances of the required setbacks from the Zoning Board of Adjustment. However, after reviewing material submitted with the variance applications, staff discovered that the subject property is in a PD. Under such circumstances the Zoning Board of Adjustment has no authority to vary the requirements of 3 PD, as those requirements can only be changed by ordinance. Additionally, Section 35.158 defines a decrease in setbacks as being a "substantial change' and not a minor amendment that the Director of Planning and Development could approve. For clarity and notice reasons, staff grouped the application into three requests; Z-96.006A A reduction of the front yard setback from twenty-five (25) feet to sixteen i (16) feet for Lots 4B through 7B, Block 2, of the Snider Addition Section 1, and a reduction of the rear yarn setback from fifteen (15) to ten (10) feet for Lots 6A through 7B, Block 2, of the Snider Addition Section 1 (Encl,)sure 3). Z-96-006B A reduction of the front yard setback from twenty-five (25) feet to sixteen feet for Lots 11A & 11 B, Block 2, of the Snider Addition Section 1 ' (Enclosure 4). Z-96-006C A reduction of the front yard setback from twenty-five (25) feet to twenty- three (23) feet for Lot 1, Block 2, of the Snider Addition Section 2 (Enclosure 5). NOTICE Twenty-four (24) notices were mailed on March 14, 1997. One reply has been received in favor, seven replies opposed, and four replies with no opinion. ANALYSIS As a result of being defined as a "substantial change' by the ordinance, the request requires Planning and Zoning review and recommendation, and City Council approval. The Commission recommended denial of Z-97-006A & B, and as per Section 35, the • applicant is required to appeal the recommendation of denial to the Council. Z-97- 006C received a recommendation of approval from the Commission. Z-97.006C. The application is for a reduction of the front yard setback from twenty- five (25) feet to twenty-three (23) feet for Lot 1, Block 2, of the Snider Addition Section 2, Based on the applicant's presentation at the Planning and Zoning Commission, the • subject house is actually 24.3 feet from the front property line. This request is being • O J made for future title purposes. Page 2 y • • RECOMMENDATION The Planning and Zoning Commission recommends a reduction of the front yard setback for Lot 1, Block 2, of the Snider Addition Section 2, from 25 feet to 24.3 feet. i ALTERNATIVES 1. Approval as recommended. 2. Approve with conditions. 3. Deny. 4. Postpone consideration. ENCLOSURES 1. Locatio(VSurrounding zoning rnap. 2. Ordinance 83-110. 3. Notice map for 97-006A. 4. Notice map for 97-0066. 5. Notice map for 97.0060. _ i • Page 3 S. • • ENCLOSURE I ~ N 0.4 Q IA. l._.. 1 +_arrr_rrrrr___ T I I~ ~ i~ I ~ ICI R I I' L ~ I~1 I ~ 00) (L Ul) J ~c ~ Ili rrs ~ per JA 111L 11 04 ~a y i 1 _ 7 rtrv` 1l b'~ {~j~~L 1. ~r+'+'J3 l_T+\~--.~j\~~ F-. .__y f LQ r 3~ Ali IPM LL Ij -1 O i9 ,4r r 2ij L - z aHn gaawr ~ t-~~~ 'off ~ ~ / % f ~I ~ i • • ENCLOSURE 2 ' NO. AN ORDINANCE AKENDING THE ZONING MAP OF THE CITY OF DENTON, TEXAS, AS SAKE WAS ADOPTED AS AN APPENDIX TO THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS, BY ORDINANCE NO. 69-1, AND AS SAID HAP APPLIES TO APPROXIMATELY 33.872 ACRES OF LAND OUT 07 THE B.B.B. a C.R.R. COMPANY SURVEY, ABSTRACT NO. 116, DENTON COUNTY, TEXAS) AND MORE PARTICULARLY DESCRIBED HEREIN; AND DECLARING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS; SECTION 1. The goring Classification and Use designation of the follow- ing described property, to-Witt All that certain 33.672 acre tract of land situated in the B.B.B. a C.A.R. Company Survey, Abstract No. 186, Denton County, Texas, said tract being part of a tract shown by deed to B. E. Tripp and recorded in Volume 996, Page 379 of the Deed Records of Denton County Texas and being more particularly described as follows$ COMMENCING at an iron pin occupying the northeast cornet of the f said B. E. Tripp tract, said point being in the west line of 4 F.M. 2164) THENCE south 00859'41' west wltn the vest line of F.K. 2164 a distance of 1,752.01 feet to the point of beginning; THENCE south 00059'41' vest a distance of 230.27 feet to a point for a corner; THENCE north 87033' west a distance of 304.64 feet to a point for a corner; THENCE south 30157130' vest a distance of 817.36 feet to a point for a correct :HENCE soutn 00000130' east a distance of 904.77 feet to a point of curvature; THENCE along a curve to the left with a Central angle of 23845108' a radius of 291.76 feet, a length of 123.44 feet and a chord bearing of south 11853'06' east to a tangent point; THENCE south 23145140' east a distance of 74.82 feet to a point of curvature; j THENCE along 4 curve to the right with ■ Central angle of 11425114' a radius of 690.03 feet, a length of 137.54 feet and a chord bearing of south 18003111' east to a tangent point; r THENCE south 12020130' east a distance of 145.00 feet to a point for a cornet, said point also being ■ point of Curvatures THENCE along a curve to the left with a central angle of 692101030, a radius of 405.00 feet, a length cf 488.92 feat and a chord bearing of south 43004131' west to a tangent poirtl THENCE south 08629130' west a distance of 209.42 feet to a point • • of curvature; 1 Z•1605-SNIDER DEVELOPMENT CORPORATION-PAGE 1 n 3 • • A ENCLOSURE2 I THENCE ■lAng a 'curve to the right with a central angle of 290161530, a radius of 510.83 feet, a length of 261.36 feet and a cbord bearing of south 23'08'574 wear to a point for cornert THENCE north 51158' west a distance of 483.62 feet to a point for a co:nerr THENCE north 01427'19' east a distance of 315.14 feet to a paint for a corner; THENCE north 89033150` east a distance of 270.41 feet to a point for a cornerl THENCE north 01015'49' east a distance of 1,963.56 feet to a point for a Cornett THENCE south 89.06'11' east a distance of 525.84 feet to a point for a Cornett THENCE north 76930141' east a distance of S1S.29 feet to a point for a cornert THENCE south 74810102" east a distance of 510.98 feet to the point of beginning and containing in all 33.672 acres of land. is hereby changed from Agricultural •A' District Classification Use to Planned Development 'PD' District Classification and Use under the Comprehensive Zoning Ordinance of the City of Denton, Texas with the following conditions and specifications, 1. Development shall conform with approved Planned Development Concept Plant r 2. The property shall be platted in accordance with he City of Denton Subdivision Regulations and Land Development Codes 3. Plat approval shall constitute specific plan approvals 4. Private road or private ingress-egress easement shall erbetltute for puolic dedicated streets when townhouse subdivision occurst sad 5. Sidewalks shall be installed it the developer's expense along one side of every public street within tad development. The Zoning Map of the City of Denton, Texas, adopted the 14th day of January, 1969, as an Appendix to the Code of Ordinances of the City of Denton, Texas, under Ordinance No. 69-1, be, and tha same is hereby amended to show sucn change in District Classification and Use sabject to the above conditions • and specifications. SECTION it. That the City Council of the City of Denton, Texas, hereby finds that such change is in accordance with a comprehensive plan for the purpose of promoting the general welfare of tea fff City of Denton, Texas, and with reasonable consideration, among other things for the character of the district and for its • peculiar suitability or particular uses, and with a view to • conserving the value of the buildings, protecting human lives, \ f-1605-54IDER DEVELOPMENT CORPORATION-PAGE 2 a, -"01001 oil ENCLOSURE2 and encouraging the most appropriate uses of land for the maximum benefit to the City of Denton, Texas, and its citizens. SECTION Ill. That this ordinance shall be in full force and effect immediately after its passage and approval, the required public hearings having heretofore been held by the Planning and Zoning Commission and the City Council of the City of Denton, Texas, after giving due notice thereof. PASSED AND APPROVED this the 7 J day of , 1943. ZPrY OF DENTO , TEXAS ATTEST, CH AOTTE AL N. I~ CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORMi C. J. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS BYr Co .~.r i i . 1-1503-SNIDER DEVELOPMENT CORPORATION-PAGE 3 ~w~ F o • i ENCLOSURE2 1 .a \ ` fi Z;` "111 1 1 y 1. nAA un 1 IM "I ~=1 I r• ~•I ^yJyi/\\ ue): MtY6l Py~j NQ Wl f SITE / COnCF7Tllal STf C.JAii f~ P:r IDnu6 DIUN4q ~ , DAD v w1M f0w t•'d sl`Y~`9. 1 1 1 - ' •i. ~ VICINITY lAAP • ~ rlo ~ oEVnovMerrtsnscr ~ 1 J ~ f . • ENCLOSURE 3 3273 't 2 9209 Z-97-006A 3iflfRiJ---- BENJIFXAN"_'. 1 261 ,y \ v JiLlAW 293 289 26s ~ 3 3210 284268 264 9100 2 272 292 y 276 % 0 3100 260 r' 297 264 2900 300 (Y 9130 4 h~ f 301 I ! 111 -3Z I `I ~ f fl 43 32B 2 + 306 1 ' 4 `l y 1 04?8 312 !f I;, 4 1 4 316 I 920 S' 7 r 324 ~ , ` 2904 532 OQ y, au FPM 426 - 2909 2905 \ \ - 290, ■ s ~a ' 421 573 509 545 501 429 3 426 i 18 lb- b PTAIM b ir. • • ENCLOSURE 4 n p \ 3212 7-97-006 8 3213 \ 3300 2 3209 1 AID ENJI -,AN 281 j 2 293 289 - 285 284 284 ' 268 272 292 <V ` 276 VQ' 280 3100 100 2900 297 264 % 300 i 441 8 84 4 ' 2 ? ! ti 8, 0 f' 309 24 If' 437 328 308 y i 4 ``AT, 7 312 f ~1. 4 341 f1 1 318 4 5 401 345, 820 524 324 / 2900 . / ,l X900 , 632 4 632 r~ ~ 2909 , L~ • • • ENCLOSURE5 Z-97-006 2 1 4081,404 pp 28324 4316,33 12 8 p438 281 l i = 2 09405 01 28 25 1 17'113 309 05301 293 269 285 ' 2 284 272 R G 276 IT E e 9 ~ 20 3100 3100 297 28 I 1 300 304 424 2041 301 ' 305 ~0 l 404 309 437 29. \ 328 308 i r 4 333 7 j 4 4 312 .,Y 4 r} 337 4 341 0 O 31$ 524 409 405 401 345 2900 I \ l /3. • • ATTACHMENT 2 ORDINANCE N0. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING ORDINANCE 83.110 (PD-63) TO REDUCE THE REQUIRED FRONT YARD SETBACK FROM 25 FEET TO 243 FEET FOR LOT 1, BLOCK 2, OF THE SNIDER ADDITION SECTION 2; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Ms. Margaret McCarthy, on behalf of Unique International, owners of the subjee' property, initiated an amendment to Ordinance 83.110 which created Planted Development 63 (PD-63) and established the front yard setbacks for the uses permitted within the subject planned development district, to reduce the front yard setback from 25 feet to 243 feet for Lot 1, Block 2, of the Snider Aa~;tion Section 2; and WHEREAS, on March 26, 1997, the Planning and Zoning Commission recommended approval of an amendment to Ordinance 83-110 to reduce the front yard setback from 25 feet to 24.3 feet for Lot 1, Block 2, of the Snider Addition Section 2; and WHEREAS, the City Council finds that this amendment to Ordinance 83-110 will be in compliance with the Denton Development Plan; NONV, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: Section 1. That Ordinance 83-110 (PD-63), attached hereto and incorporate) herein by reference, is amended to reduce the front yard setback for Lot 1, Block 2, of the Snider Addition Section 2 from 25 feet to 243 feet. Sectio 11. That a copy of this ordinance shall be attached to ordinance No, 83.110, showing the amendment herein approved. Section 11[. That the provisions of this ordinance, as they apply to Lot 1, Block 2, of the • Snider Addition Section 2, govern and control over any conflicting provisions of Ordinance No. 83- 110, as they relate to the subject property, but all the provisions of the Ordinance No. 83-110 as they apply to the remainder of PD-63 not herein amended shall continue in force and effect and shall apply to the remainder of PD-63. Se ion jV. Thai any person violating any provision of this ordinance shalt, upon conviction, be fined a sum not exceeding $2,000.00. Each day that a provision oftlus ordinance is viotat M shall • constitute a separate and distinct offense. I c 7 7 7, 7 • • I , i n That this ordinance shall become effective fourteen (14) days front the date of its passage, and the C;ty Secretary is hereby directed to cause the caption of this ordinance to be published trice in the Denton Record-Chronicle, a daily newspaper published in the City of Denton, I Texas, within ten (lo) days of the date of its passage PASSED APPROVED this the day of 1997. JACK MILLER MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: i APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY.'A i PAGE 2 r. Jlv L a1 • • ENCLOSURE 2 , ` No. AN ORDINANCE AMENDING THE ZONING MAP Of THE CITY OF DENTON, TEXAS, AS SAME WAS ADOPT" AS AN APPENDIX TO THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS, BY ORDINANCE NO. 69-1, AND AS SAID MAP APPLIES TO APPROXIMATELY 33.672 ACRES OF LAND OUT OF THE B.B.H. a C.R.A. COMPANY SURVEY, ABSTRACT NO. 186, DENTON COUNTY, TEXAS) AND MORE PARTICULARLY DESCRIBED HEREIN; AND DECLARING AN EFFECTIVE DATE. ' THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS: SECTION I. The Zoning Classification and Use designation of the follow- i ing described property, to-wits All that certain 33.872 acre tract of land situated in the ! B.B.B. 6 C.R.R. Company Survey, Abstract No. 166, Denton County, !E Texas, said tract being part of a tract shown by deed to B. E. Tripp and recorded in Volume 996, Page 379 of the Deed Records of Denton County Texas and being more particularly described as follows; COMMENCING at an iron pin occupying the northeast corner of the 'said B. E. Tripp tract, said point being in the west line of F.M. 2164; THENCE mouth 004S9141" west with the west line of F.H. 2164 a distance of 1,752.01 feet to the point of beginning; THENCE south 00459141' west a distance of 230.27 feet to ■ point for a corner; THENCE north 87433' west a distance of 304.64 feet to a point for a corners THENCE south 80057130' vast a distance of 817.36 feet to a point for a corner; .HENCE ■ouen 00600130" east a distance of 904.77 feat to a point of curvatures THENCE along a curve to the left with a central angle of 23045108' a radius of 297.76 feet, a length of 123.44 feet and a chord bearing of south 11453906' east to a tangent points THENCE south 23845140" east a distance of 74.82 feet to a point of curvature; THENCE along a curve to the right with a central angle of • 11425114' a radius of 690.03 feet, a length of 137.54 feat and a chord bearing of south 18003112' east to a tangent point; - THENCE south 12420130' east a distance of 145.00 feet to a point for a corner, said point also being a point of e u vatures j THENCE 69'10103! of radius of 405.00 efeatita lwith a ength of t4qa.92 feet and a chord bearing of south 43104131• west to a tangent point) • THENCE south 08929130' west a didttnce of 209.42 feet to a point • • of curvature) 2-1605-SNIDER DEVELOPMENT CORPORATION-PAGE 1I . e • ENCLOSURE 2 i . THENCE along a 'curve to tie right with a central angle of 23.18'53', a radfus Of 510.63 feet, a length of 261.36 feet and a cbotd bearing of south 23106'57' west to a point for corner; THENCE north 57456' west a distance of 463.62 to ' to a point for a cornett THENCE north Ol627119' east a distance of 315.14 feet to a point for a cornett THENCE north 69.33150' east a distance of 270.41 feet to a point for a Cornett THENCE north 01015149" cast a distance of 1,963.56 feet to a point for a cornea THENCE south 69006111' east a distance of $15.64 feet to a poi-.t for a Cornett THENCE north 76.30141' east a distance of 515.29 feet to a point for a Cornett THENCE south 74410102' east a distance of 510.96 feet to the point of beginning and containing in all 33.671 acres of land. is hereby changed from Agricultural 'A• District Classification Use to Planned Development 'PD• District Classification and Use under the Comprehensive Zoning Ordinance of the City of Denton, Texas with the following conditions and speclficationar 1. Development shall conform with ayproved Planned Development Concept Plan; 2. The property shall be platted in accordance with he City of Denton Subdivision Regulations and Land Development Code; 1. Plat approval shall constitute specific plan appcovalt 4. Private road or private ingress-egress easement shall substitute for public dedicated streets when townhouse Subdivision occurs; and i 5. Sidewalks shall be installed it the developer's j expense along one aide of every public street 6 within the development. y The Zoning Map of the City of Denton, Texas, adopted the of ,the a city l of 9 Dentonan Texas, under Ordinance Not 1 as Ordinances 69-1, be, and the same is hereby amended to show suce change in District Classification and Use subject to the above conditions • and specifications. SECTION II. l That the City Council of the C►ty of Denton, Texas, hereby finds that such change is in accordance with a comprehensive plan for the purpose of promoting the general welfare of the City of Texas, the character r of sonablo the district s ando for amIts f things • peculiar suitability or particular uses, and with a view to L' conserving the value of the buildings, protecting human lives, • Z-1605-5NIOER DEVELOPMENT CORPORATION-PACE 2 f i` • • ENCLOSURE2 citisens and maximum benefitg to the most the City of pDe ton t Texas, And its n the SECTION III. That this ordinance shall be in full force and effect immediately after its passage ■nd approval, the required public hearings naving berstotare been held by the Planning and toning Commission a6d the City Council of the City of Denton, Texas, after giving due notice thereof. PASSED AND APPROVED this the 'Y ~ day of ~.r I.M. Qo"rDrNTO), 'TEXAS ATTEST, CITY SECRETARY Cif",, CITY OF DENTON, TEXAS APPROVED AS 10 LEGAL FORM, C. 0. TAYLOR, JR., CITY ATTORNEY CITY OF DENTON, TEXAS BY (f A~- i 7 i i l 1-1605-SNIDER DEVIL40PNOT CORPORATION-PAGE 3 +ti 6+ , ~~!g1rnY.1e...► 1 ,aj.2 Aid f~~~x II ~t. • • ENCLOSURE2 1 • M.M Y.hIJM. .LY ~ ~ 1 1 TAM.. • L4 yn9 W f Qt1UL.TO4L ' / • V W . ~ M ~ ....+4~-run JJ SITE CoHCtMAL $rt7 PUN l . irs. iQ4~.e cw.cn 00 o •~r .5 ~i 4~J, r,~M 40 VICINITY IAAP p C. • {MpiJl okV60PMLM T1t►CT ~ i • • • I r • • ATTACHMENT 3 P&Z Minutes March 26, 1997 Page 4 Nis. Schertz arrived at 5:45 p.m. Ms. Russell: Will the road be built in phases also? Air. Reeves: They will preliminary plat the entire subdivision and then develop the project in phases. The road will be built as the subdivision develops. Mr. Powell: Under PD 126 how many lots were proposed? Mr. Reeves: If this PD was built out the way it was proposed it would generate about thirty to forty thousand traffic trips because it is a mixed use PD. Air. Powell: The point I am trying to make is that this is considerably less traffic and considerably less construction than what it is presently zoned for. Mr. Reeves: That is correct. Mr. Persaud: When we did that rezoning to PD 126 it had the potential of bringing in twenty thousand people. It allowed for commercial and multi-family zoning. Mr. )ones: I nave we approve the request to rezone 731.26 acres from Planned Development 126 to the Agricultural zoning district. 1 Ms. Ganzer: Second. j Ms. Russell: Any discussion? All in favor please raise your right hand. Opposed same sign. Approved. (6-0) Vl. Hold a public hearing and consider three requests to amend Ordinance 83.110. The subject property is located north of US 77 and west of Windsor Drive.(Z-97-006A-C) a. A request to reduce the front yard setback from twenty-five (25) feet to sixteen (16) feet for lots 4B and 713, Block 2, of the Snider Addition, Section 1, and the rear setback from • fifteen (15) feet to ten (10) feet for Lots 6A through 7B, Block 2, of the Snider Addition, Section 1. b. A request to reduce the front yard setback from twenty-five (25) feet to sixteen (16) feet for Lots 11A & 1113, Block 2, of the Snider Addition Section 1. • c. A request to reduce the front yard setback from twenty-five (25) feet to twenty-three feet for • Lot 1, Block 2, of the Snider Addition Section 2. Ms. Russell opened the public hearing. Air. Reeves: This is a request to reduce the setbacks established by Ordinance 83-110 for ~D, • • P&Z Minutes March 26, 1997 Page 5 Planned Development 63. The applicant was directe6 to seek a variance from the Zoning Board of Adjustment for the setbacks on these platted lots in the subdivision, After looking at the application I found that these lots are in a planned development and the Zoning Board of Adjustment cannot grant variances to change the setbacks. On Lot 1, Block 2 of the Snider Addition, Section 2 the applicant is requesting a reduction in the front setback. We have received a number of responses on this, half of the responses are in opposition and the other half have no opinion. The applicant has informed me that the house which was built after 1994 is J actually 24.3 feet from the front property line along Casie Street instead of the required 25 feet. This creates a problem for the property owner becat,se the title company is not going to give them a clear title to the property without some kind of recognition that the building has been built into the front setback. If this had been a straight zoning district then this could have gone to the Zoning Board of Adjustment. The second item is for Lot I lA and 1113, Block 2 of the Snider Addition, Section 1, the applicant is requesting a reduction in the front setback from 25 feet to 16 feet. There is unanimous opposition to this and the staff is recommending denial. A reduced setback on these lots would put the buildings out in front of the existing lots and is not in keeping with the rest of the neighborhood. I talked with the applicant earlier today and after reviewing the staff report they agreed that this probably wasn't a very good idea and that they didn't want to pursue this. The final item is for a reduction in the front setbacks for Lots 4B through 7B, Block 2 of the Snider Addition, Section 1, and for a reduction in the rear setbacks for Lots 6A through 7B, Block 2 of the Snider Addition, Section 1. We have a number of opposed responses. (Visual presentation of building placement on the lots.) There is a sixteen foot utility easement along the front and the back of the property and the electric department will rat allow the eave of the building to extend into that easement. Staff is recommending approval for a reduction in the front yard setback to 24.3 ft for item C, denial for item B, and approval of front setback for item A, and denial for the rear yard setback on item A. i Mr. Cochran: What is the build able depth for the lots on Casie Court? Mr. Reeves: It is about forty feet, 1 Nis. Russell: Would the petitioner care to speak? Ms. Penny McCarthy: My name is Penny McCarthy and my address is 1213 Mockingbird Drive • in Grapevine. I am with Mid Cities Builders and I am the builder on this project. John and Vince Petrobond are the owners of Unique International and are the backing for these lots. We do have a couple of choices, and one of those would be to put in small duplexes. We just built two duplexes that were a thousand and seventy-two square feet in size. In order to tit duplexes on these lots we are looking at nine hundred and eighty-eight square feet. That is really not very big. We want to try to keep these in accordance with what is in the neighborhood. We don't ® think the neighborhood would want a two story duplex. VY'e don't have a problem with Lots I IA O O J and I IB. At 292 Casie Court we are nine inches over the front setback and I just asked for two feet to be on the safe side. Mr. Cochran: Did you build the house at 292 Casie Court? d • 0 0 P&Z Minutes March 26, 1997 Page 6 Ms. McCarthy: Yes we did and we finished it in August of 1996. Nis, Russell: Why do you think tliat the neighbors wouldn't want a two story house? Ms. McCarthy: All of the houses in that area are one story duplexes and 1 don't think that they would want a two story out there. I don't think it would look right. I could be wrong and I j might ask them if necessary. i Nis. Gamer: Are these three bedrooms? Nis. McCarthy: ?hey are three bedrooms and two baths. They are very nice homes. Nis. Russell: Is there anyone to speak in favor of the petition? Is there anyone to speak in opposition? Nis. Russell: I have a card from Amy Cook at 309 Caste Court and her comments are that this would be detrimental to property values and it could possibly lead to more requests for changes to existing structures and lead to unsightly additions close to the sidewalk. Nis. Naomi Allen: N1y name is Naomi Allen and my address is 2103 McCormick. I am not in opposition to the twenty-three foot setback on item C. Why was that not caught in the inspection process? I understood that zoning doesn't change restrictions. Mr. Persaud: It would depend on the zoning. In a PD there are no standard restrictions. The PD sets the restrictions. Ms. Allen: There are recorded restrictions with the Snider Addition. I made my investment based on the deed restrictions, Mr. Reeves: Deed restrictions recorded with the plat are private agreements between the 1 property owners in a subdivision. We review them in the case of private streets, but only because we want to make sure that we are indemnified for anything that might happen on those private streets. In this particular case we would not have reviewed the deed restrictions. • Nis. Allen: Regardless of that, you rely on those things as protection when you purchase property. I have already made my investment, I invested in a vacant lot and improvements. Ar: there going to be sidewalks there and can you put them over the utility easement? My unit is a two bedroom, two bath duplex. It sounds like they are saying that the lots are not buildable. ® 1 am not opposed to two stories. I am opposed to the lot where they are talking about a nine foot reduction. I don't want buildings that are at the curb. Why do they have to be square buildings? • J They could possibly replat and increase the size of the lots by reducing the number of lots. I am opposed to all of it except the two foot reduction in the front setback for the one lot. Ms. Susan Volgamere: My name is Susan Volgamere and my address is 293 Casle Court. Is Ilwy. 77 going to be widened? If so, is this area within the right-of-way? There Is alsL a • • P&cZ Minutes March 26, 1997 Page 7 drainage problem behind the duplexes that were just built. Are there any plans to correct this and will it affect these properties? Mr. Salmon: Ilwy 77 is proposed to be widened by TXDOT and it will be a four lane divided highway similar to Teasley Lane. When Hwy 77 is widened they will be installing underground drainage structures like any normal urban road section would have. Concerning drainage, what we have now is a flat area that doesn't drain well, and there may also be a lot grading problem. I think that when this subdivision was platted they dedicated right-of-way and I don't think any additional right-of-way will be needed. Ms. Russell: Would anyone else like to speak in opposition? Would the petitioner care to make any closing remarks? Mr. Joha Petrobond: My name is John Petrobond and I own the lots in that subdivision. We did our research to see what size building we could put on the lot. There is a problem with these lots and we are trying to build what people want. Ms. Russell: We will close the public hearing. Are there any final remarks? How is it that this building was built over the setback? Mr. Reeves: These things happen occasionally and the building department is looking into it. This was built along a curve and there may have been a problem in finding the correct location for the house. The Building Inspections department is looking at doing a form board survey in the future for foundation work. Mr. Cochran: Are there any duplexes or single family structures that have a fifteen foot setback? Mr. Reeves: The Villas of Piney Creek have a fifteen foot setback with a zero lot line. 1 Mr. Cochran: Are there any instances where we have relaxed the setbacks in existing neighborhoods? • Mr. Reeves: The Zoning Board of Adjustment has granted variances for carports or additions to buildings in the front, Mr. Bucek: 1 would just like to say that if the Commission grants these variances it will have no impact on your deed restrictions and would not impact your lawsuit if you wanted to pursue ' that. - - • 0 as J Mr. Cochran: I move that we approve the reduction for the front setback from 25 feet to 24.3 feet for Lot 1, Block A of the Snider Addition, Section 2. Ms. Schertz: Second. • • r - P&Z Minutes March 26, 1997 Page 8 Ms. Russell: Any discussion? All in favor please raise your right hand. Opposed same sign. Approved. (6-0) Mr. Cochran: I move that we deny item B. Mr. Jones: Second. Ms. Russell: Any discussion? All in favor please raise your right hand. Opposed same sign. Approved. (6-0) i Mr. Powell: I move that we recommend a reduction in the front yard setback from 25 feet to 16 feet on Lots 4B through 7B, Block 2 of the Snider Addition, Section 1. Ms. Schertz: Second. Mr. Cochran: I am going to vote against this because I believe that the argument that was put forth by the applicant and the staff was based purely on economics and that all houses are square. I think that you should build a house that conforms to your lot instead of trying to change the regulations. I don't think that is good policy and die neighbors are in opposition. Ms. Russell: I am going to vote against this because I see no compelling reason why you can't E build a different style, and I think you can build on the property. Nis. Gamer: I agree with you and Mr. Cochran. Benjamin Street town homes are two story and they are just around the comer. Mr. Powell: I withdraw my motion. Nis. Schertz: I withdraw my second. Mr. Cochran: I move denial of Z-97-006A. Ms. Ganzer: Second. O Ms. Russell: Any discussion? All in favor please raise your right hand. Opposed same sign. Approved. (6-0) r Take a ten minute break at 6:45 p.m. • 6:30 p.m. Joint meeting with the Public Utility Board. Hold a public hearing and consider the O O 1997-2002 Capital Imprnvemeuts Program. f Present from Staff: Jon Fortune, Chief Finance Officer; Mary Ragusa, Budget Administrative Assistant 11; Bob Nelson, Ed Hodney, Director of Parks and Recreation; Howard Martin, Director of Environmental Services; Jerry Clark, Director of Engineering and Transportation. ay • • :.t Agenda ne. ' Agenda Itert1.~_. ' Dale CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM: Rick Svehla, Deputy City Manager DATE: April 15, 1997 SUBJECT: Consider an exaction variance of Section 34-119 concerning water and sewer service for the IXC Subdivision. The subject property is in Division 1 of the ETJ on the north side of Milam Road, approximately 2,299 feet west of 1-35, and consists of 0.327 acres. RECOMMENDATION: The Planning and Zoning Commission recommends approval (6-0). SUMMARY: See Planning and Zoning Commission Report. BACKGROUND See Planning and Zoning Commission Report. PROGRAMS. DEPARTMENTS OR GROUPS AFFECTED: Not applicable. FISCAL IMPACT: None. f • • ~ t • • Please advise if I can provide additions' information. Respectfully submitted; Rick Svehla Deputy City Manager Prepared by: alter . Reeves, Jr., AICP Urban Planner Attachment #1: Planning and Zoning Commission Report. Attachment #2: Draft minutes of the March 26, 1997, P & Z meeting. • d. • x mop 0 • ATTACHMENT 1 I PLANNING AND ZONING COMMISSION REPORT To: City Council From: Planning and Zoning Commission Date: April 15, 1997 Subject: Exaction variance of Sec. 34.119 for IXC Development Plat f Recommendation E The Planning and Zoning Commission recommends approval (6-0). Background The owner of the proposed addition has applied for the following exaction variances to the Code of Ordinances of the City of Denton, Section 34-119 regarding water and sewer service. This request is based on the lack of a reasonable connection between the required improvement and the proposed development, This 'exaction variance" has been recommended to the City Council because the Commission has determined that the imposition of the development exaction pursuant to these regulations exceeds any reasonable benefit to the property owner or is so excessive as to constitute confiscation of the tract to be platted, and recommends approval of the variance to waive such exaction, so as to prevent s ich excess, to the city council. Section 34-119 requires all developments within the jurisdiction of the city shall have approved water supply and sanitary sewerage facilities. The applicant has asked for a variance of this requirement as the proposed use, as defined by the development plat, is for an unmanned building for fiber optic equipment. The nearest City of Denton water line is over 8,000 feet away at the Intersection of US 77 and 1-35. The nearest City of Denton sewer line is 2,000 feet away at the truck stop at 1-35 and FM 3168. The cost of extending City of Denton water and sewer lines to an unmanned building would be approximately $160,000 f,jr tie water line and $40,000 for the sewer line. A well and septic system would cost between $10,000 and $20,000. The cost of providing water and sewer service for a building that will be unmanned, and without facilities requiring water or sewer would exceed any reasonable benefit to the property owner. • Enclosures 1, Development plat. • ~ O 0 3. e 0 0 1 OmKfPr y rM,rL{ rr A M rrurrr rY.rrll r.rr fr.rr \r W I.w • ~ M,~i+Y~\Tw \lwfrN ~r+rliirii ~YIrYF.N~rY rjlV/ir' i ' -Lrwrr.rRarr.r rwer\n\rl.rr~1rrrrr mr\wlrll1, r,r r\r r.r r r rrWr rr/rx rr\r.."r r1 iRw r:. re\~rrw r.~.rarr\rrY rrrr rlrpr I y .r.~~rvwr4 n r.\rllrr rrrrrarrlrr ' nsprroyr rrrr r,r rrrrrrr\~1r n+\rrr r/r ' rrrrrlrrlrrr\rrwrrrrrrrrrrrlrrwrrYa '~Y.narrrl~rrrlr r\Y rrYrlr MM.w..rr r .r r,Ir\rr\,\,rrrrrr~rr J~rrrr{ ' rrsrrrA rr✓t,r\rrlr. rrlWY.l~rrr~ rrr\%Yr. ~V V')';rrNOrlwr r\ru1.►Ir RrY.rrrrYrrlrr \.wrrr.r'i• .wnrrrl.'r~+~rrrrarr, r.Nrtr..r\rrlwlr• V\ Irl(r f 4 r*powY~.l1.w{rLrlr %LM N. rr•rrrL~rrwy' ~~pf..rr)rd IFrD4. mm"U y, y r~.rrrrra.rr .rrarwrr\r•rryrr R e / „KxiN VI u NLL,~ 1111 ~r~w `Sir Mft \1 MI r14•1 Moir " • - •\~,rlrw•rr!'M,r~a~Mw~ ~~4r7~.iMwMrw r., N r I A t •'ar•lum nwwrANV9~OrY ML140~~ . AY EAS S71RTa1 O 1' <0 71 j J, it r rr raVrr \n werr..\r.._ Z GRAPHIC SCJtLd' ,r r1r.n8 4 aria all n „fa for r . , N, w . \u"ir wrr xr. I BLOCK A 'g ~rvrr rcrrwrrr,gn\r~rrrrl •rr r4rrrr •,w\in,rr+ t o.327 '.^.vrwr rrr.r.rrr\r.r.r. • rrrr.r.rw..r ra ul rN O.S?7 ACRD DtNt'OX COUNTY. rr~rrrr.rrrrr.rrrrrrr.rgr.rW r.x NZ + ~,r r:wuaw rrr\e rr rwar+r a\r nf~,_prr~rr ' mew /1 w ',!L- •C1rA/rl F}IrlrMl~w •r ✓ sxurr\ u r r , fr ~r w.i . aW fi:tNUr.oYl, wlrYr rtrrL.Irl.Lrr\. r~l rMNr M+rr• _ _ I~-1,....,,. \Yr~.F ri. rpr/rrJrrrrrY.Lrrrww~pll _ _ _ _ 1M~rww.r q.r.rrrrrw./ arra.g/e.r~r =x,.f = - - _JL4Y RO't0 - - - - - - - f_.-f_- I awrnunarJnrvra d L[11M • Nr ' '..•r, - F ',,~/r rA\rrrl►.~Jwst„n INPPP" .r, orNr ref•rewrr rrrr ® R4[Y Ra Rr wrL xr J 1 f\ MPOPT a rL.•11lr JI • i ' of •ViNr❑%t\I \•:R ' ~ r'rrr~,lrRrrrnrr.Ixa Yll rl -O//•WR 1ilr.( • dirl Y1r1YYMrrar' ' r,J. rn~.ry rlr'ot i rr{ ru.•Ni ft".mcm'~" mnr aw Nfr smum l i(M-fi Ml x,rur DEVELOPMENT PUT LOT T BLOCK [AI' XUNSURVEYQVt)M enwN1an 1XC SUBDIVN THE d r, ZZUK I R~.%.r.r r LRTJM,EM TQtl 0.361 J. A' SURVEY A-] an4m !Y, TEXAS JOB N4 06. 7 • • ATTACHMENT 2 P&Z Minutes March 26, 1997 Page 14 - Approved. (6-0) 1 tr. Consider the following variances: 1 1. An exaction variance of Section 119 requiring water and sewer service. 2. An exaction variance of Section 34-116(e) requiring water capacity for firs protectioli purposes. 3. An exaction variance of Section 34.116(c) requiring fire hydrants. i Mr. Reeves: These are three exaction variances for a proposed development plat for IXC to build a fiber optics equipment building. The first variance regarding water and sewer service, our Subdivision Regulations require the provision of water and sewer service. This proposed plat is eight thousand feet away from the nearest City of Denton water line and two thousand feet away from the nearest City of Denton sewer line. The cost would be approximately two hundred thousand dollars to extend those two lines to an unmanned building containing only equipment. The second variance requiring water capacity for fire protection purposes, in order to provide adequate capacity the cost would be about a hundred and sixty thousand dollars to a building that isn't required to have sprinklers. The final variance is for fire hydrants, if you are going to recommend the first two variances then the fire hydrant issue is mute. Staff recommends all three exaction variances. Mr. Powell: 1 move we recommend approval to the City Council of the exaction variance of Section 34-119 regarding water and sewer service. Mr. Jones: Second Ms. Russell: Any discussion? All in favor please raise your right hand. Opposed same sign. Approved. (6-0) Mr. Powell: I move we recommend approval to the City Council of the exaction variance of . Section 34-116(e) requiring water capacity for fire protection purposes. Mr. Jones: Second i Ms. Russell: Any discussion? All in favor please raise your right hand. Opposed same sign. Approved. (6-0) • Mr. Powell: I move we recommend approval to the City Council of the exaction variance of • O Section 34-116(c) requiring fire hydrants. Mr. !ones: Second. Nis, Russell: Any discussion? All in favor please raise your right hand. Opposed same sign. -S c'` • • Agenda Nfl.__,l I Agenda Item Date - S 7 j CITY COUNCIL REPORT FORMAT TO: Mayor and Members of the City Council FROM: Rick Svehla, Deputy City Manager DATE: April 15, 1997 SUBJECT: Consider an exaction variance of Section 34-116(e) requiring adequate water capacity for fire protection for the IXC Subdivision. The subject property is in Division 1 of the ETJ on the north side of Milam Road, approximately 2,299 feet west of 1.35, and consists of 0.327 acres, RECOMMENDATION: The Planning and Zoning Commission recommends approval (6-0). SUMMARY: See Planning and Zoning Commission Report. BACKGROUND: See Planning and Zoning Commission Report. PROGRAMS. DEPARTMENTS OR GROUPS AFFECTED: Not applicable. FISCAL IMPACT: None. • J a • t' • 0 q. • • :r Ple2se advise if I can provide additional information. Respectfully submitted: O.A Rick Svehla Deputy City Manager Prepared by: Ara Walter E. Reeves, Jr„ AICP Urban Planner Attachment #1: Planning and Zoning Commission Report. Attachment #2: Draft minutes of the March 26, 1997, P Z meeting. 1 d N I r 1 4. • i • ATTACHMENT 1 r _ . PLANNING AND ZONING COMMISSION REPORT To: City Council From: Planning and Zoning Commission Date: April 15, 1997 Subject: Exaction variance of Sec. 34-116(x) for IXC Development Plat Recommendation The Planning and Zoning Commission recommends approval (6-0). i Background The owner of the proposed addition has applied for the following exaction variance to the Code of Ordinances of the City of Denton, Section 34.116(e) regarding water capacity for fire protection. This request is based on the lack of a reasonable connection between the required improvement and the proposed development. This 'exaction variance' has been recommended to the City Council because the Commission has determined that the imposition of the development exaction pursuant to these regulations exceeds any reasonable benefit to the property owner or is so excessive as to constitute confiscation of the tract to be platted, and recommends approval of the variance to waive such exaction, so as to prevent such excess, to the city council. Section 34.116(e) requires adequate water capacity for fire protection purposes in all developments within the jurisdiction of the city. The cost of extending a City of Denton water line large enough to provide for adequate water capacity would be approximately $160,000, for an unmanned building with no facilities. Enclosures 1. Development plat. • i r • Ins-YM~.+-~~ ~xr • f • l r., r • • • i wee..r{rrri...wwrw.rrrwrrrrrr.rrL~.t ~ ' r\'f~'n.."si~.fr~°wrw~wri:riY.'wr rrif Mr,.r.!r•+rrrw.f' ' ''rwrwrry,T.rrY.ef wa[+'fr r+rtrr.r. mrnrrcrYr.~N r r frr errwase.. r.rrw rrr t ~i...ror~ r r.r rr:r 1rr r.rw r. i.rwrr V \ rw 1Ue ' war, c.r.trw f{{e r.t rn.fr w.w rr rrr.tfry rrrrnlLnvvrffr •.s.oiw.o.r~...rerrrr.rrrwerrwrrrr rrw ' . wrwrrr.~r rer..wrrrYr rrrrr r~rr rr errr t J ' ~~sawrr~rw~,i ~A==iK 1 Y I .I . i Wtr wlrY `-wl~r~rrirrrf►1rLf r•It~t~rr~[.~YY ou.rr YR ~N.'. w. iln cwt. rJ`frpYVf.~il.t.rNalr.w/r - r/- rtiasw{wf rs ~fr,wf.Rie fY. rrir.wtui.rrrrr. ~r~..tirr'Lr~"r..wr+~v.r ~wra.wrr.L.+~rr JI its r•~w~ 6.wtuulow 9M.'.. w lei L,...d f h yrtS,rro.{rrwrtrrr.rr.rrrrfYrr fw.wwrcf..r f t rx•t eo ed'"r ~",ti rr [~:.,c`rr`w~r.`rr~rw`r'~+Lq r: i"~'i. •r[r ~wYr r~aniwertetwan•tnw et`yrs~~s SURVEY A-)-"' N I,rv I 0 J' <0' 1 I J J, AYERS z CRAPNN Y6 ttfw ' • ffr , yr•wi.'•Lrr A t Ctesew rwwtrfrw Yr►rrrr.r r w Lu rr. 1 BLOCK COUNTY ~ c.u°Z nue.[ t TEXAS L.wL['.w.\..\wrr+•[.......r,arr..rLw.r M06 Yaws t{ ~7f1 ~D:JP7 ACRE DENTOX . frrwrrwrwrffff•r.wrrfrwterrr r.e q{.o MAN I'm N[ PP ,.w... ww uaww iweNam v.r a.aaf~r.o~.w . I e. W 7f~AV1~'[il{Ie11. AI •rrr.Ilr1L r./.~L. Ylr r.~w w.. ^r= fV<IiA1 1 tw rf / Ur •r/rwlm. aft~rrr rr ~wrlr4Lr ~L r.l. ~rl I L _--ii 1 .rrwr.•w Lr+w•tr..Lrrorwrgrryre.+nrL. -4--wLtr _ _ _1LW ROAD _ _ _ - ^ ^ _ t, t-[-t-- .'„S osnerwanwfeorc , i u¢n a.r t L bwY'.tfirer Lwry n+tw &A" cw<.c. q ror %I ~~aw>Lwrorw p r .f. rt n. fr • ueu..a.r+e i~•aarw .a. A...., . C;~ O yr'YL[~4.LOMwSfYKM11 .[..LUnt'rwN •':d 'Whom U la Ww • . ,f,[1M raft M'P~ tYLrR Mft w11 on" F11" . w. M.a•. v n/.~~ vN W.. Mf , w.Y.If Yr[ DEVELOPMENT PLAT f.n{.... LOT 1 BLOCK A' IPAlox YL4QIOaIG Y ' raw:e►r ;:;`w. t4It !XC SUBDIVISION 0.361 '^,RES IN THE ww XRvK lima we J. A' SVRVEYA-2 ~•.Y. (1117) *247r . Be, h, TAUS 0 • P&Z Minutes ATTACHMENT 2 ' March 26, 1997 Page 14 Approved. (6-0) b. Consider the following variances: 1. An exaction variance of Section 119 requiring water ana sewer service. 2. An exaction variance of Section 34-116(e) requiring water capacity for fire protection purposes. 3. An exaction variance of Section 34.116(c) requiring fire hydrants. Mr. Reeves: These are three exaction variances for a proposed development plat for IXC to build a fiber optics equipment building. The first variance regarding water and sewer service, our Subdivision Regulations require the provision of water and sewer service. This proposed plat is eight thousand feet away from the nearest City of ]Denton water line and two thousand feet away from the nearest City of Denton sewer line. The cost would be approximately two hundred thousand dollars to extend those two lines to an unmanned building containing only equipment. The second.variance requiring water capacity for fire protection purposes, in order to provide adequate capacity the cost would bxr about a hundred and sixty thousand dollars to a building that isn't required to have sprinklers. The final variance is for fire hydrants, if you are going to recommend the first two variances then the fire hydrant issue is mute. Staff recommends all three exaction variances. Mr. Powell: I move we recommend approval to the City Council of the exaction variance of Section 34 119 regarding water and sewer service. Mr. Jones: Second Ms. Russell: Any discussion? All in favor please raise your right hand. Opposed same sign. Approved. (fro) Mr. Powell: I move we recommend approval to the City Council of the exaction variance of Section 34-116(e) requiring water capacity for fire protection purposes. • Mr. Jones: Second Nis. Russell: Any discussion? All in favor please raise your right hand. Opposed same sign. Approved. (6-0) J • Mr. Powell: I move we recommend approval to the City Council of the exaction variance of t' • O Section 34-116(c) requiring fire hydrants. Mr. ]ones: Second. Nis. Russell: Any discussion? Alb in favor please raise your right hand. Opposed same sign. I • • Agenda No. 4 7- O/ S< Agenda Item Cate CITY COUNCIL REPORT FORMAT TO: Mayor and Members of the City Council FROM: Rick Svehla, Deputy City Manager DATE: April 15, 1997 SUBJECT: Consider an exaction variance of Section 34-116(c) requiring fire hydrants for the IXC Subdivision. The subject property is in Division 1 of i the ETJ on the north side of Milam Road, approximately 2,299 feet west of 1.35, and consists of 0.327 acres. RECOMMENDATION: The Planning and Zoning Commission recommends approval (6-0). SUMMARY: See Planning and Zoning Commission Report. BACKGROUND: See Planning and Zoning Commission Report. PROGRAMS. DEPARTMENTS OR GROUPS AFFECTED: Not applicable. FISCAL IMPACT: None. I i I • i 0 0 • I • • f Please advise it ! can provide additional information. Respectfully submitted: i Rick Svehla Deputy City Manager Prepared by: k *WalterE. s, Jr., 1CP Attachment #1: Planning and Zoning Commission Report. Attachment #2: Draft minutes of the March 26, 1997, P & Z meeting. J • i 1. • 0 • ~A FAMM • • ATTACHMENT I PLANNING AND ZONING COMMISSION REPORT To: City Council From: Planning and Zoning Commission Date: April 15, 1997 i Subject: Exaction variance of Sec. 34-116(c) for IXC Development Plat Recommends Ion The Planning and Zoning Commission recommends approval (6-0). Background The owner of the proposed addition has applied for the following exaction variances to the Code of Ordinances of the City of Denton, Section 34-116(c) regarding fire hydrants. This request Is based on the lack of a reasonable connection between the required improvement and the proposed development. This "exaction variance" has been recommended to the City Council because the Commission has determined that the imposition of the development exaction pursuant to these regulations exceeds any reasonable benefit to the property owner or is so excessive as to constitute i confiscation of the tract to be platted, and recommends approval of the variance to waive such exaction, so as to prevent such excess, to the city council Section 34-116(c) requires the installation of fire hydrants in all developments within the jurisdiction of the city. The cost of extending a City of Denton water line large enough to provide for adequate water capacity would be approximately $160,000. If the variance for water capacity for fire protection purposes is approved, the variance for fire hydrants should also be approved as the cost of installing fire hydrants ($2,500 each) to under capacity lines would exceed any reasonable benefit to the property - owner. Enclosures 1. Development plat. i • • - t I 0 • • • . ,I a.w+s.ra FYrY+.V••MwYri•tllYrw.lrlMr•+IY Y.y~ • fr.r. Filwrl Y.Y1•YrYn T~ r wr•\w/i r. r. r ' wttsrarr r'+r>r+~r.+w!lr rrlrlr srrw` •:.IrI.I(Ath•Yfi•RYrlwl rl.rr lr•h*!b.•I.IYR WrrrR+lrh.wr lNlr Wrrll+Ta+rr•rr+rrif wewr\Ilhlrf.Yrwh•i~hrr►rrllrli~•rwVrrr i/rftr+ .•.♦,wyI3vw~~Y.•r.VR. wV wlrr•I r.+rarrr Wr••++r•..h ►+u+rll•laae NNrN .~►)♦w ItY /+.Ai\•Y.I.wI•iilrrw/►•^I~I+YMY+Yr Y✓, I ~ Mur+Nlhrr wtrr• rr.rf.rr►rr • rttrr rr.tar ' 4Iw1M+.wrrhrtri.~i ri+ rY...I+Y: t 1~'r~N•RrNtt/rf YRrr. V+. r.11R. Y1h..AlirrrlYr~ ' rrrfrr /r.uu. W ri. Yr il.+I rlM..•V rr~+rilM bri t.14VRr rL 141.' i• 4wrs ~rrI~ YMri Ylr+w~lr.. h•r.~+•rHrrRY.I~11,lYY y ~rM.rr.+rrrtrl+.wlr/ I.N iN rt .pyl.Rwpy rp+~ll~Ie W~Irr/It~r4M.F.rY1iY.W v M [1 wlr~rrrrrYlrTr.rCfY~Ur4p,lr+f.r+Ihr 1. Irrrhr rw r•M~rrlhrrrr.. ' w.. Y /rtvi:~•t "bus It ~ ( ~~r t~:a~r~h~ Y1• ^rrri rf •wivrwr~twrv wr Rx'r ea.oe'. ,r~~. '.n ',i.rrrr~rr..rr~rr w--:eiww wlAw~rerr. y t'Jly I vYb'FS SURVEY A-2..•. •w.lumin v.e.o savaenN tNtJn.tv~+w 0 jr. A V CILIPA~ lC S~CALd~ .r ~r`w° nut err H ' wu~'~..~r•M'GT~ ~ . Z ! Lor r . , PAN Pi °i.me ' I BLOCK A $ 'Y traN+trr•.rrwwr..w~r►rr+ .rtw •..r.+Irr LLI rt. NV. ^.u•+Mrw w..hra..fl. r.rrQliLTi..t tr.r wlrr►.r Yirwrrwwrrrw.Mr•h+r~rtrarTl►rr '~iin N I !0.327 ACRL DgJIrT'OX COUNTY. 7LXA$ ' r.Nw r/!'~ ~ I N~NIIIClMMIOAO rtaewte+a wRt_pne_~tr ' { / $ ~ n w t ~ rul.traaamltlltr • I ~ ! ! r~ ~r1~Ir.rRR1.+R1r11YRle NY[.r+•• wi ~ t 1 f I`'.. ~r/al! t li~.~1Mtlb+LaNN{YYNIYII.+rw!•t.hVll Ylr /V I.~.I h.. ' ti~ r ~tqt'~~ /~t...,,. ~ r 1••/I~r.rl.i.►rrVfrr/rr ~.In•Yr •.•YVtl pnl ~ La?,~+rvw.r rT!.rwrw..r rYrr+grrwlr.r.\r AM" ROAD - - - - - - - - - - - - - rwt Mrh..wr 7..t rrr Alr.r .''i, tiw.+ti---- dive "go •v "N' . •a . ra- r R.rr •D In b~ i IR~LLlD.pi 1N RI alw to _ fi .p i a 4t .ntnru.rt.r t ,t ~ ;eft ~\in..~or i~r~itwlr~l irtw - rtr, • t lta alVl PINT "'O'O I•n.tr WIN wa i... mw:\ groat an •RM Y ttanK want DEVELOPMENT PLAT LOT I BLOCK A'K BURViYEN~' IXC SUBDIVISION P0.tgx07 u+twatev 0.361 '^AES W THE r BatUM.TB AS961N 'I J. A' SURM A-2 •,r R17)4116'R' M TEXAS lUdNa 96. 0 • ATTACHMENT 2 P&Z Minutes March 26, 1997 Page 14 Approved. (6-0) b. Consider the following variances: 1. An exaction variance of Section 119 requiring water and sewer service. i 2. An exaction variance of Section 34-116(e) requiring water capacity for fire protection purposes. 3. An exaction variance of Section 34-116(c) requiring fire hydrants. Mr. Reeves: These are three exaction variances for a proposed development plat for IXC to build a fiber optics equipment building. The first variance regarding water and sewer service, our Subdivision Regulations require the provision of water and sewer service. This proposed plat is eight thousand feet away from the nearest City of Denton water line and two thousand feet away from the nearest City of Denton sewer line. The cost would be approximately two hundred thousand dollars to extend those two lines to an unmanned building containing only equipment. The second variance requiring water capacity for fire protection purposes, in order to provide adequate capacity the cost would be about a hundred and sixty thousand dollars to a building that isn't required to have sprinklers. The final variance is for fire hydrants, if you are going to recommend the first two variances then the fire hydrant issue is mute. Staff recommends all three exaction variances. Mr. Powell: I move we recommend approval to the City Council of the exaction variance of Section 34-119 regarding water and sewer service. Mr. Jones: Second Ms. Russell: Any discussion? All in favor please raise your right hand. Opposed same sign. Approved. (6-0) Mr. Powell: I move we recommend approval to the City Council of the exaction variartce of Section 34-116(e) requiring water capacity for fire protection purposes. Mr. Jones: Second Ms. Russell- Any discussion? All in favor please raise your right hand. Opposed same sign. Approved. (6-0) Q Mr. Powell: I move we recommend approval to the City Council of the exaction variance of • 0 Section 34-116(c) requiring fire hydrants. Mr. Janes: Second. j Ms. Russell: Any discussion? Ali in favor please raise your right hand. Opposed same sign. a 16 • P&Z Minutes March 26, 1997 Page 15 Approved. (6-0) I -C. Consider the development plat of the IXC Subdivision. The subject property is located in Division 1 of the ETI on the north side of Milam Road, approximately 2,299 feet west of I-25, and consists of 0.327 acres. Mr. Reeves: This is adevelopment plat of 0.327 acres and the Development Review Committee recommends approval with the condition that the exaction variances are approved. Mr. Cochran: I move approval of the development plat of the IXC Subdivision. j Mr. Jones: Second. Ms. Russell: Any discussion? All in favor please raise your right hand. Opposed same sign. Approved. (6-0) VIII. Director's Report. • Discussion of consent agenda. Mr. Persaud: Mr. Cochran has asked that we discuss the consent agenda. From the staff standpoint we feel that having the consent agenda does give the Commission a chance to expedite the proceedings. If there are items on the consent agenda that someone has questions about then any member of the Commission can pull that item from the agenda or any member of the audience can pull an item off of the agenda for discussion. Also staff has received complaints from a Montecito resident about a batting cage with flood lights in a neighbors backyard. Staff would like to know if you want to do any kind of an ordinance to regulate this? Mr. Cochran: Is there any kind of code enforcement that would take care of this now? Mr. Persaud: We looked into that and it would have to be a noise violation where they would call the police and report it. The neighbors don't want to do that. • Mr. Cochran: It seems excessive to create an ordinance because one person is having a problem. i Mr. Powell: I agree with you. IX. Future Agenda Items. • Adjourned at 8:30 p.m. • i • i. ..•.....P t.'~r Y. ~.Y+.~ ...6..aY~'anM4"1../n'I.MTU9. Y.'!flKI~.I'.Y.u..... A~enOa Nd . ~ AQanda Or Data 7 CITY of MAIM, TEXAS MUNICIPAL BUILDING 215 E MLKINNEY DENTON, TEXAS 76201 (817) 566.8200 DFW METRO 434.2529 CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM: Kathy DuBose, Executive Director of Finance DATE: March 25, 1997 SUBJECT: APPROVAL OF A TAX REFUND TO FIRST STATE BANK i RECOMMENDATION: f The Tax Department has mailed an overpayment letter and an application for refund to the taxpayer. All completed forms and necessary documentation have been returned requesting this refund which the Tax Spaciahst recommends. i SUMMARY: ~ i Chapter 31.11 of the Texas Property Tax Code requires the approval of the governing body of the taxing unit for refunds in excess of $500.00. First State Bank has requested a refund in the amount of $602.47 because they overpaid the account of James Spoonts, account #102709. BACKGROUND: First State Bank made a payment of $602.47 on November 20, 1996, and another payment of 5602.47 on December 12, 1996, against a tax base of $602.47. A tax refund Is due. PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: • The Tax Department and the tax account of James Spoonts. i FISCAL IMPACT: S602.47 • 0 I "Dedicated to Quality Service" 1 {y r~ City Council Report Page 2 Please advise if 1 can provide additional information. RESPECTFULLY SUBMITTED: _ ,J~~t, vSL Prepared by: Kathy Bose Executive Director of Finance Julie rewilt Tax pecialist Attachment: Application for Tax Refund Copy of Cancelled Check City Overpayment Report AAAOSF3E . i f . i a I OWN • • s'•'• arep ro ` & % APPLICATION FOR TAX REFUND Rawnd Applkal o'.: 1,~!!t) - ~ ~ Collecting Offire 1Jar~~$',, v, Collecting Tax For::! ° (Taxing Units) Address City, Slate, Zip Code - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - In order to apply for a tax refund, the following information must be provided by the taxpayer. WENTIF-I"TIyON, OF PROPERTY OWNER: Name, ts Address t Telephone Number (if addd+onal information is needed): IDENTIFICATION OF PROPERTY: Description of Property: 142E_~ Address or Location or Prope AW+ Account Number of Property: f `109 or Tax Receipt Number: - INFORMATION ON PAYMENT OF TAXES: Name of Taxing Unit Year for Amount of From Which Refund Which Refund Date of the Amount of Tax Refund Is Requested Is Requested Tax Payment Taxless Paid Requested I f t,C 19 11"-Zo/ 19,10- $ 192 $ 10CIR• 2. 19 ~ 1 19g(e- s O214-7 $ Taxpayer's reason for refund (attach supporting documentation): P kA ,,~'ECS ~rrtST-,5rATIE 1~$AJk )S II~~lCfsr/tire A- AtF1tAJ7 DF OUfe PAYMfuT'. °I hereby apply for the refund of the above-described taxes and certify that the information I have given on this form is true and correct" Signatu a Date of Application for Tax Refund • DETERMINATION FOR TAX REFUND: Approval Disapproval _r Signature of Authorized Officer Date • Signature of Presiding Officer(s) of Taxing Date Unit(s) for refund applications over $500 Any parson who makes a Intee entry upon the foregoing record shall be subject loon* of ft loliowing penalties; 1. knprlsonmant of not more than 10 years nor toss than 2 years and/or a One of not more than 15,000 of both such fine and Imprlwnmantt 2. connnenrent In jail For a Farm up to 1 year or a One nol to exceed 11,000 at both such fine and imprlsonmsnF a eel forth In Sac lion 31.10, Penal Code. PMN0 P It I t 13 111 'r i • r I _ FIRST STATE BANK OF TEXAS DENTON,TEXAS Member First Bancorp VOID MR116W.' IVAr"jNl}FjI*UAantxleArrvAnmm~nir.rnrnkaoNxrdnenr.nurMAUK<oriA[m. 7S15i7 ® 4807844248 1119 FSD - ESCROWED TAKES vunDHASeR DENTON,TEXAS NOV 19 1996 0owIRST STATE filY. 7 BANK OffE Six YE&C, zato LTBCTS PAY TO THE ORDER OF CITY 6F DENTDN TAK DEPARTMENT Now 4664016,00-57 :a. t 9 r ,d: t. r i r~ I, ~I r:` I n' v , rr: thJ h,,I rr, 7'1gr ld o~: 4m.r. i~: CASHIER1S CHECK ~,~,t,,r tHi1^n ,,,i,l f a71"1 4 5, c~~H ,tnrr tr~a t r IN! WIYNISE OF N: fID41l1fY BOKp WILL AE RF CF11E7 BffOFIE A4T EA.VIERS CRECK OF INS BANK PAS BE MnAE00n l1ErVUa in OE ,t ,tI r t rr EWITRIs LOST. 115mme OR S1OIEK Ar.CA7"En FATAEEE MrW FIN71Afl BA 4K UEOOM*fO't N.'I aJ 8•~7 i '.':-22-56 Ui70A';U3 q7 f:J960IS221 7844Raso 1~0000,L6Q~]571' I l-i Ffl'1 V .r, NN~~ CI R 7 IODUI 13Pl0 OP;s!V FI RS! sign of • >1119t4 42 < f s ~ N 001k "V S• r'y'a. ri-L iVr V, ' i' I R -W F~'W- MAIN • / • • i s i REPORT FIOR05DW 03/21/97 AT 19:05 O V E R P A Y M E N T S ACCOUNT NO. RECEIPT NO. NAME ADDRESS AMOUNT STATUS OF I;u 10197400000 96/02120-0013 BOEDEKER, F W FANNIN ST 171.47 OVERPAY 096.6000000 96/02126-0017 MARTINO, DAVID C WOLFTRAP -714 10.00 OVERPAY ; 1V,OS400000 96/03103-0010 GOODE. GLENN EDWARD. 1-35- 0.01 OVERPAY 02321800000 96/03/04-0011 VELA, ROLAND INDUSTRIAL ST 64.49: OVERPAY t7899000000 96/03/06-0237 RUPLE, MICHAEL D CUMBERLAND CT 168.52 OVERPAY '2103100000 96103/09.0402 SIMPSON, ERIC P BAYFIELD -1019 421.40 OVERPAY 1 17538200000 96!03/09-0403 BECKMAN, CURIIS E A PIERINA E N LOCUST ST 353.19 OVERPAY 06567700000 96/03/10-0116 MONROE, ORAN E. (EST) 10.30 OVERPAY 1U270900000 96!03112-0011 SPOONTS, JAMES A CAMBRIDGE LN 602.47 OVERPAY 115:3400000 96/03/17-0073 MORRISON. NANCY J TA AVE E 0,02 OVERPAY 03137bl OO00 96/03/17-0195 ROLL HERBERT - KAYEWOOD DR 0.20 OVERPAY 022143000D0 96/03/23-0230 SADOWSKI, RAY S MEAOOWBROOK OR 0.02 OVERPAY 0351c300000 96103/23-0293 BROCK, HORACE R HIGHLAND PARK 6.00 OVERPAY 13530900000 96/03/23-0302 ENLOW, JULIUS D I-35 0.07 OVERPAY 03515300000 96/03/23-0342 BROCK. HORACE R HIGHLAND PARK 30.00 OVERPAY 1773'7000000 96/03/26-0190 GREER. CHARLES D ASHLEY CA 91.06 OVERPAY 02297700000 96/03/27-0315 HARLOW, CLARENCE F LAUREL ST 329.05 OVERPAY 03500300000 96/03/30-0286 HARRIS, RICHARD A JR FRY ST 0.27 OJERP4Y , 03554100000 96/03/30-0464 MULKEY,CLIFFORD,LANDY,GWENDEL MCKINNEY ST 8.00 OVERPAY 02354800000 96/03130-0498 TURNER, PHILIP M CAE NE - 270.00 OVERPAY 03262600000 96/03/30-0640 KROLL, STEVEN A W PARKWAY ST 2.54 OVERPAY 036433D0000 96/03/30-0749 LEE, BOBBY E DAUGHERTY ST 1.00 OVERPAY 10493600000 96/03/30-0941 SCAGGS, CARTER J BRANDYWINE CA 371.15 OVERPAY 07699800000 96/03/31-0075 DAVIS. WALLACE E JR ETAL 0.01 OVERPAY 'i 023.'8400000 96/03/31-0145 JOLLY, LEO M BUCKINGHAM DR 0.60 OVERPAY j 02900500000 96/03/31-0164 HIGHT. R08ERT LEE DONNA RD 41,18 OVERPAY {1 03452300000 95/03/31-0199 DENTON BIBLE CHURCH BANDERA ST 0.01 OVERPAY 10514700000 96103/31-0334 HILDRETH, EDDIE JA INDIAN RIDGE 0 131.84 OVERPAY 03559100000 36/04/01-0065 BLAKE, FRANK C W HICKORY ST 22.00 OVERPAY 03332900000 96/04102-0196 HARWELL, HELEN ANNA ST 200.00 OVERPAY 90736100000 96/04/02-0245 BURKHARDT. DAVID R DDS S LOOP 288 0.01 OVERPAY 03463700000 96/04/03-0184 ATKINS. MARK H HIGHLAND PARK 100.00 OVERPAY 02711700000 96/04/06-0740 KAY, GEORGE J MEADOW VIEW CT 624.47 OVERPAY 03153900000 96104/06-1276 JOHNSON, DONALD K CHERRYWOOD LN 392.76 OVERPAY 03409700000 96/04106-1469 MARQUEZ, TOMAS d MARIA WILLOWWOOD ST 33.18 OVERPAY 07519200000 96/04/06-1570 HARDIN. ALANA B WINDSWEPT CT 27.53 OVERPAY 14607300000 96/04106-2255 DESJARDINS, RAYMOND TARTAN CR 565.09 OVERPAY 18297000000 96/04/06.2392 OLIVARES, ADOLFO LIDO WAY 63.40 OVERPAY 13051700000 96/04/08-0094 KING 8 KING F/S N ELM ST 86.65 OVERPAY 02545700000 96/04/13.0229 2AM'JDIO, MELQUTADES FOXCROFT CR 178,15 OVERPAY • + 03104100000 96104/16-0144 PASS, JULIA A STUART RD 0. 28 OVERPAY 90657200000 96/04/21-0067 STICKER STATION S LOCUST ST 1.00 OVERPAY 03409000000 96/04/21-0159 RPS VENTURES INC WILLOWWOODST 1.00 OVERPAY 03196800000 96/04121-0176 CRAWFORD, LARRY P KINGSTON TC 1.00 OVERPAY 02179200000 96/D4/21.0379 VETERANS AFFAIRS BERNARD ST . 228.06 OVERPAY. 02928400000 96/04/21-0384 MORRISON, VIRGINIA N BELL -1909 P C.10 OVERPAY f 91615100000 96/04/22-0166 OPTIONS SALON S ELM +K ST 0.02 OVERPAY 3 03407000000 96/04/23-0025 WILLIAMS, JOHN PAUL N LOCUST ST 0.80 OVERPAY 1 ' 03439500000 96/04!24-0147 NW REALTY INC SHADY OAKS DR 157.10 OVERPAY 03439400000 96/04124-D148 NW REALTY INC SHADY OAKS OR 394.46 OVERPAY Q 03439800000 96/04/24-0149 NW REALTY INC SHADY OAKS DR .154.46 OVERPAY JJ` 03439600000 96/04124-0150 NW REALTY INC SHADY. OAKS OR 138,71 OVERPAY WWRIN 070. • Agenda No. q 7- Agenda Item ' Date JJ--~1-- DIM) ~ I CfTY of DENTON# TEXAS MUNICIPAL BUILDING 215 E McKINN£Y~ DEN TON, TEXAS 76201 (817) 566-8200 DFW METRO 434.2529 CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM: Kathy DuBose, Executive Director of Finance i DATE: March 28, 1997 SUBJECT: APPROVAL OF A TAX REFUND TO ANDREW CORPORATION RECOMMENDATION: The Tax Department has received a supplement from the Appraisal District for 1996 making a correction to the appraised value, The Appraisal District included the value of $440,250 in two personal property accounts. They are now removing the duplication, reducing the tax Andrew Corporation owed in 1996. Andrew Corporation is due a refund which the Tax Specialist recommends, SUMMARY: Chapter 31.1: of the Texas Property Tax Code requires the approval of the governing body of the taxing unit for refunds in excess of $500.00. Andrew Corporation is due a refund of $2,326.28 on account 1916792 due to a deleted appraised value in 1996. BACKGROUND: Andrew Corporation paid their 1996 tax in full on January 31, 1997. A supplement causing a reduction in appraised value reduced the taxes due in 1996. This reduction in taxes warrants a refund • of $2,326.28 to Andrew Corporation. PROGRAMS, DEPARTMENTS OR CROUPS AFFECTED: The Tax Department and the tax account of Andrew Corporation. FISCAL IMPACT • • o $2,326.28 "Dedicated to Quality Sen-ice" f C^ .er. 4`Cr~.n i.m!"y.yn.:i.r..ee.~rwtr rJrrvwMiTll..n.wNtYiYIYNf'.'.HM~aVwl~wr~w+ne+aM~L.P~r City Council Report Page 2 i 1 Please advise if 1 can provide additional information. RESPECTFULLY SUBMITTED: f ~L Prepared by: Kath DuBoS Y Executive Director of Finance Julie Prewitt~ Tax Specialist Attachment: Copy of Appraisal District Supplement Copy of Tax Overpayment Report AAA04F70 I~ k Y r a y; . 'f s t of Nll I1.s.~~f 4 ` ,s_ • a • ~r Denton Central Appraisal District A C A 0 S Y S T E M 06/97 12;31 THE SOFTWARE GA", INC. 1996 SUPPLEMENTAL ROLL M6 FOR: CITY OF DEN70H (COS) o OWNER NAME AHD ADDRESS PROKRTY DESCRIPTION RECEIPT N CLfKNT VALUES PRIOR VALUES GAIN/LOSS F916792 (26522) w ANDREW COW FEFEFEKE ACCOUNT - FABRICATION PERSONAL f 440,250 440,250 2701 5 T)ATHILL RD WAIN)JSE LOCATION: 3923 MORSE ST DENTON, TX 76206-3999 4116, DENTON (V4L6E INCLUDED WITH COS ASSESSED S 0 440,250 -440,250 F113984) RECEIPT TAXABLE S 0 440,250 -440,250 SITUS: 3923 9116 rrrSE ST 9 147 TAX AMT $ 0.00 2326.28 -2326.28 DENTON, ENTITIES: MAR 2 7 Ft EXEMPTIONS SUPF CODES DELETE - DELETE VALUE INCLUDED UNDER P113964 F9192i9 ~36322i)--------- RE't44EILICARE PERSONAL PROPERTY - CHIROPRACTIC PERSONAL S 2,070 0 ATTN: PROPERTY TAX DEFT EWIF LOCATION: 2317 UNIVERSITY OR 1511 OLD HWY 6 U OB-5, DENTON ! LIFESTYLE COS ASSESSED f 2,070 0 21070 J NU CRIGNTON, rN 55112 CHIR()FRACTIC RECEIPT TAXABLE t 2,070 0 2,070 SITUS: 2317 48-5 UNIVERSITY DR W 9 24852 TAX ATTT S 10.94 0.00 10.94 DENTON, ENTITIES, DOI, SOS, C05 EXErPTIONS: SUPF CODE: A - ADD FEFLACES F917W3 P904412 (106903) TRIAD SY5TET15 FItWrZIAL CORE FEZS"L PROPERTY - COMPUTER PERSONAL S 1,013 6,527 15466 LOS GATOS BLVD EWIFYENT LOCATION: VARIDJS, DENTON LOS rATGS, CA 954322 COS ASSESSED $ 1,013 6,527 -5,514 SITUS: DENTON, RECEIPT TAXABLE t 1,013 6,527 -5,514 /,0 ENTITIES: SOS, COS 9 21345 1AX AMT f 5.35 34.49 -29.14 • I~ EXEM'TIONS SUPP CODE: C - CHANGE ._'3, = PROTEST ~t -eXe ~ o4r m16434 (a5323a) SHAW, APANDA CLATTON EST, SPACE 271 (MH ONLY), U'PR HS f 16,817 16,817 5+01 F rOINPEY 9271 MH SERIAL 9 AH01968220 LAM M t DENTON, TX 76208 PF50367M COS ASSESSED t 16,817 16,817 0 • RECEIPT TAXABLE S I L B17 16,817 --5,000 ENTITIES: 601, 505, COS 4 3075 TAX AMT f 62.44 88.86 -26.42 • EYEMPTIOHS: HS MAR 2 8 [ L~ 1~ ~ CODE : C - CHANGE U ' 1. mop e e • r T,EPORT FIOR050W 03/27/97 AT 2255 O V E R P A Y M E N T S P'. ' ACCOUNT NO. RECEIPT NO. NAME ADDRESS AMOUNT STATUS OF P' 90856700000 96/06/10.0053 CHAMBERLIN, JOHN W DENTON TEXAS 382.90 OVERPAY 51647500000 96/06/10-0060 WHITE, KENNY 26.41 OVERPAY 03405000000 96/06/11-0042THORNTON, DAVID E WOODLAND ST 0.47 OVERPAY 90079400000 96/06/13-0010 CULLIGAN WATER CONDITIONER S WOODROW LN 3.14 OVERPAY 02840700000 96/06/13-0012 MARTIN, STEPHEN L N CARROLL 8V 3.99 OVERPAY 51604200000 96/06/14-0029 LOVELL, MICHAEL 26.42 OVERPAY 51607400000 96/06/14 0031 JONES, NOEL 26.41 OVERPAY 51412700000 96/06114-0033 CAMPBELL, MIKE TEASLEY 10365 L 26.42 OVERPAY 03457200000 96/06/17-0004 PACCAR INC AIRPORT AD 0.18 OVERPAY 16292700000 96/06/18-0007 LYSBERT, VEAL C d MARGARET J W UNIVERSITY 0 0.04 OVERPAY 51648700000 96/06/19.001t HAVRAN, CINDY 31.65 OVERPAY 80754100000 96!06/19-0019 IMAGE DESIGN HOMES E OAK AAA ST 158.45 OVERPAY 51610400000 96/06/19.0025 PATTERSON. VIRGINIA 37.87 OVERPAY 11118900000 9610G/19.OD27 DOUGLAS 6 ASSOC LLC S LOOP 288 34.43 OVERPAY 03367900000 96/06/19.0029 PUGH, G C JR 8 BETTY G JOYCE N WOOD ST 121.53 OVERPAY 03525000000 96/06/t9-0031 ROOGES, KINNETH L AUDRA LN 79.26 OVERPAY 03620600000 96/06/19-0033 RAGLE, RALPH A JR E MISSION ST 26.42 OVERPAY 03677200000 96/06/19-0035 PARSONS, WILNA N FISHTRAP RO 125.66 OVERPAY 03549600000 96/06/19-0037 PARK, RANDY L W OAK ST 26.41 OVERPAY 03535200000 96106119-0039 STAFFORD, CHARLES R. GREENLEE ST 45.15 OVERPAY 02252500000 96/061$9-0041 REIKOFSKI, ROGER 0 VICTORIA OR 26.41 OVERPAY 10350000000 96106/19-0043 VARBRO, LISA H HOWARD CT 26.41 OVERPAY 03267700000 96106/19-0045 HALL, JONATHAN P COLT ST 26,41 OVERPAY 02404600300 96/06/19-0047 ARGO, PATRICIA N CRAWFORD ST 26.42 OVERPAY 02474300000 96/06/14.0049 RODRIQUEZ, MAXIMINO A N RUDOELL ST 26.41 OVERPAY 10288000000 96/06/10-0051 WATTS, DENNY W JA PEAR TREE PL 26.41 OVERPAY 13241200000 96/06/19-0053 HATRIDGE, GEORGE R KINGS CT 26.42 OVERPAY 02286500000 96/06/10-0055 COX, LUCIUS L JR JASMINE ST 147,94 OVERPAY 02985100000 96/06/19-0058 LINSON, R C E HICKORY ST 97.80 OVERPAY 02798300000 96/06/19-0060 PAGE, ROBERT L SAVANN*H TA 121.53 OVERPAY 10521400000 96/06/19-0062 WHALEY. CHARLOTTE HOLLYHILL LN 26.42 OVERPAY 02969500000 96/OG/19-0064 STANLEY, CURTIS W. ATLAS DR 26.41 OVERPAY $516tO400000 96/06/19-0069 PATTERSON. VIRGINIA 3.27 OVERPAY 02885100000 96/06/19-0070 LINSON, R C E HICKORY ST 0.30 OVERPAY 81877400000 96/06/20-0023 SCHLUTER, KRISTY W UNIVERSITY D O.OV OVERPAY 12663800000 96/06/21-0016 HERIGODT ADVERTISING DENTON TEXAS 2.64 OVERPAY 13200600000 96/06/27-0002 TEXAS, STATE OF 1-35 1$.84 OVERPAY 13200800000 96/06127.0003 TEXAS. STATE OF I-35E 1.85 OVERPAY 03E53400000 96/06/27.0004 TEXAS, STATE OF 26.72 OVERPAY 91673200000 96/06/27-0021 ANDREW CORP MORSE A116 ST 2,326.28 OVERPAY • 90441200000 96/06/27-0023 TRIAD SYSTEMS FINANCIAL CORP DENTON TEXAS 31.54 OVERPAY 02044000000 96/06/27-0028 LENIHAN, J E FANNIN ST $57.16 OVERPAY TOTAL OF OVERPAYMENTS 23,457.29 0.00 I e • 3 Agenda tua ..V.. ORDINANCE NO. Agenda Itg 11 Date +7_~-- i AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES; PROVIDING FOR THE EXPENDITURE OF ! UNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. WIIEREAS, 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 ordinanc;s; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described bids are the lowest responsible bids for the materials, equipment, supplies or services as shown in the "Bid Proposals" submitted therefore; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION-1. That the numbered items in the following numbered bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" attached hereto, are hereby accepted and approved as being the lowest responsible bids for such items: BID ITEM , NUMBER NO_ VENDOR "OUNT 2026 ALL DOUGLAS DISTRIBUTING EXHIBIT A SECTION 11. That by the acceptance and approval of the above numbered items of the submitted bids, the City accepts the offer of the persons submitting the bids for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Bid Invitations, Bid Proposals, and related documents. SECTION IH. That should the City and persons submitting approved and accepted items and of the submitted bids wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the bids, the City Manager or his designated representative is hereby authorized to execute the written contract which shall be attached hereto; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities and - • specified sums contained in the Bid Proposal and related documents herein approved and accepted. e • f 0 • • • ..r SECTION IV. That by the acceptance and approval of the above numbered items of the submitted bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids or pursuant to a written contract made pursuant thereto as authorized herein. SEC 0.N-V. That this ordinance shall become effective immediately upon its passage and approval. PASSED ARID APPROVED this day of 1497. JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: - APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: SLTPLY.0RD • r 2 i r 3 • BID M 2026 "EXHIBIT A" BID NAME Oils aodLubricants DOUGLASS D1STPL OPEN DATE March 25, 1997 M -QTY DESCRIPTION--------: VEN60E IA 10 dr.Antlwcmr Hydraulic Oil (t5 Cal. drum) 5122.I0 I B 3000 gal. Aotiwear1-111dnulic Oil (bulk) $1.851 ~ 2 25 dr.Dextron It ATF (SS gal. drums)_ _ $161.151 lA - 3500pl. Fleet Motor Oil ISW40 (butk) S2.521 38 20 cs. Fleet Motor Oil 1SW40 ( uarts 511.52 CS J _ 10-dr. 90W Gear Lubc SS pl.-drum) 5164.00 S 6dr.Chassis Grease (120 lb, drum) SIDO.90 Detivery: 2 DAYS i f 3 f • • :.f DATE: APRIL 15, 1997 CITY COUNCIL REPjORT T0: Mayor and Members of the City Council FROM: Kathy DuBose, Executive Director of Finance SUBJECT: BID # 2026 - OILS & LUBRICANTS RECOMMENDATION. Council approve award of Bid #2026, Oils & Lubricants, to the low bidder meeting specifications, Douglass Distributing for an estimated anrual expense of $22,000. SUMMARY, Bids were received for the purchase of oils and lubricants for Fleet Services to use during their routine maintenance on this city's fleet. Purchases will be made on an as-needed basis. The bid is for a one year period with built-in renewal options. The city mailed thirteen invitations to bid and received four responses. PROGRAMS, DEPARTMEdTS,DR_GROUPSAEEECTED. All fleet user departments. FISCAL IMPACT: Purchases will be paid from the budgeted gardge inventory account number 730-025-0583-8702. Attachments: Tabulation sheet Respectfully submitted: Kathy'DuBdie Executive Director of Finance ' Prepared by: Name: M anie Harden Title: Buyer • Amp _roveeddd, i Name: Tom D. Shaw, C.P.M. r _ O Title: Purchasing Agent • B59. AGENDA i p • [..~1 ter- • , i 7~1 n. e B[D N 2026 BID NAME Oils and Lubricants BUCKLE DOUGLASS SPECIALTY SOUTHWEST OlL CO. DISTR. OIL CO. UffL TRKS OPEN DATE March 2S, 1997 INC. l~_N j__qTY DESCREI'TION VENDOR VENDOR VENDOR VENDOR _IA _ 10 dr.Arllwear. Hydraulic Oil (SS SaL drum'__ 5113.18 - $122.10 SI3&73 Y $161.11 IB- 3000gol AndwearHydraulicOillbulk) __$1.92 _ SIAS52.01 $2.87 2 - 23 dr. Destran 11 ATF (SS Sd drums S95M 5161.15 $158.20 S204.17 3A _3500 al'FleetMotorOilISW40(bulk) $2.831 5252 $2.71 -5352 38 T 20 C& Fleet Motor Oil ISW-40 - - - (quarts) - 511.01 CS S! 152 CS $10.68 CS 511.88 C5 I _ 1 10 dr.90W Gear Lobe SS gat drum) 5220.00 $161.00 5188.21 5207.06_ S _ 6 dr.Chaa(s Grease 12(0 lb. drum 590.00 _ 5100.80'1 _ $79.00 $113.63_ Delivery: 2 DAYS 2 DAYS WEEKLY 3 DAN'S s t 5 k . Agenda No 9 1 Agenda Itcm. L7 ORDINANCE NO. Dale ~s AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of STATE law and City ordinances; and WHEREAS, the City Manager or a designated employee has reviewed snd 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 Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW,THEP.EFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION-I. That the numbered items in the fallowing numbered bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" attached hereto, are hereby accepted and approved as being the lowest responsible bids for such items: I BID ITEM NUMBER N0. VENDOR AMOUNT 2028 ALL WICKHAM SUPPLY EXHIBIT A SECTION. 11. That by the acceptance and approval of the above numbered items of the submitted bids, the City accepts the offer of the persons submitting the bids for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Bid Invitations, Bid Proposals, and related documents. SECTIONM. That should the City and persons submitting approved and accepted items and of the submitted bids wish to enter into a fonnal written agreement as a result of the acceptance, approval, and awarding of the bids, the City Manager or his designated representative is hereby authorized to execute the written contract which shall be attached hereto; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Bid Proposal and related documents herein approved and accepted. p J t e SECTIONIY. That by the acceptance and approval of the above numbered items of the submitted bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids or pursuant to a written contract made pursuant thereto as authorized herein. SECT1ON-Y. That this ordinance shall become effective immediately upon its passage and approval. { PASSED AND APPROVED this day of 1997. JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: - APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY i BY: SUPPLY.ORD 2 r; e a ; r x,. • • BID N 2028 "LXIIIBITA" N'ICKIL M DID NAME Irrigalion Supplies! SL'PPEv, South Lakes Park INC. OPEN" DATE March 25,1"1 N QTt DESCRIPTION tiENDOR~ TVII DESCRIPTION VENDOR - - - - I _ 759 Turbo Rotor FC NCT70 519.975 50 43 1 112" x 1 1!2" x 1 SST TEE st.000 - - 2 119 Turbo Rotor PC NCT70 519975 ` 1~ 23 1 1@" SSS TEE ; $0.520 J - !49 ! I!Z" Pop_up NSSP S1~J0 52 10 1112" SS 90 ELL i _$0.390 - 4 21 12" Pop-up 0137P $5.650 53 4 .1 112" SS 45 ELL 5 490011 . Clan 200 SW Pipe S94.111C 54, 64 1112" x 1 SS Reducer Bushing - f0,2T0 - - - - - 6 2!80112 112" Class 200 SW fie _ S38.22/C 65 22 1 112" x 1114" Reducer Bushing _80.270 Pfpe 56 2 9 8 2380 1i 1 112" 2660 V[ 1 1 H" Clasa2200 SAN'Pipe_ 00 SW P pe - Sl! ON1C 68 40.1 11x 1 S 1g i 1 Reducer SST TEES ~ng~' $~0~►v0 I 10 6280111 'Clan 200 S1S' N _ 58.50/C 59 51 1 174" x 1 SS Reducer Bwhi --~-_$0.280 11 120 IIlN" Class 100 SWPpe S6.22X 60-21 1 114" SS 90 ELL $0.310 12 289 1" %IT%MT KBI S%ingJoint 56.680_ 61 3 1114* SS 46 ELL _ 10.440 13 11-Wei e AG 1" Q1'C V ! 00_ 51610 62 10 1114" SSS TEE $0.430 14 11 Nest AG 1 QukkCoupler_KetC100 518.980 - 63_ 1 1114" Slip Cross 1 $1.060 15 44 1" P•1 ah e R 1FC 11024FCR-Z0 $72.260 64 6 11114" x 112^ SS Reducer Bushing $0.260 16 5000 If 12 Ga OF Wirs While 2500' Roll 355.29N 65 1 1114" x 314" SS Reducer Bushing _ {0.280 17 60000 If 12 Ga. OF Wiro Red 2500' Roll _ $55_291121 60 1 1114- x 1114- x 112" SST TEE $0.800 18 59 3" SSS TEE $3.250 X67_ 183 11- ST 90 ELL r- $0.270 19 45 3 x 2172" S Reducer Busfi1!~ $1_080 88 7 1SST TEE $0.460 20 6 3 x 3 x Z aSS TEE 13.540 69 _ 4-1" SSS TEE $0.270 - 21 _ 7 3" SS 90 ELL $2.210 70 10 1" SS 90 ELL _ $0.210 22 10 3" SS 45 ELL $2.860 71 1 1" SS 45 ELL $0.310 - - - - - - - --3 13 6 3 x 1 SS Reducer Bushing _ 81.080- r72 1" x 314" SS Reducer Gushing $0.200 24 3 3' Slip Cap $1:090 73 2_314" Slip Cron $0.650 25 2'3' 53 Coupling_ $1160 74 37 314" x lit" ST 90 ELL $0_150 26 - (DELETED BY ADDENDUMZ 7 S 1 314" SS 45 ELL . $0.780 27 2-3)t 2 SS Reducer Bushing f 1.080 76 1 314" x 112" SS Reducer Bushing I _$0.110 28 2 2" SXT Mate Adapter $0196- 0 390 77 S S x 314" x 314 M TEE $0.460 - 29 92 2 x 2172 US MaleAdapter f/ 470 78 20 374 x 314" x 112" SST TEE $0.220_ 30 11 2" SXT Mate Adapter $6.390 79 6 311 SS 90 ELL $0.110 31 53'2 1/2- SSS TEE-, f2 480 BO 2 2 Febco Double Check Away. M806Y $162.660 32 51 2112' x 2 SS Reducer Bushing - f0 _1081 6 1 P.Velvs W1FC 11024FCR $33.010 33 44 2112" x 1 112" SS Reducer Gushing _ 80 730 82 70 14' 160 D ge ns B Nox:M 420.16 $1.410 34 25 2 V2" x 1 SS Reducer Sushing $0.730 83 115 3M DBY Splice KK 2/k $1.500 35 44 2112 SS 90 ELL TEE $1 1.860 84 63 10" Round Valve Box rdLld $0.284 36 12 2112" x 1 114" SS Reducer_Bushin_qS0 730 85 70 1i2" x 112" x 12" Cobra Connector $5.090 37 2 217Z" Sllp Cross $3.760 81-_2 18 x 19 x 32 Mini-Vault *W $89.850 38 10 2 V2' x 2112" x 1 SST TEE ;2.720 87 _18 Blus Turf The PVC Connont $5.140 39 1 2172" SS 90 ELL $'850 86 - 48 Purple Primer $3.100 • 1 19 1SSS T ET Peduesr Bushing - - 750 Grand Toe 1, $24,416.890 - - 4 42 12'2- S390 ELL $0.610 - i 8 43 2 r Slip Cross $1.780 ery DAYS 44 30 2 x 2 x 1 SST TEE 81.250 45 18"1 x 7 SS Reducer Bushing $0.450 46 13 2 x-11 114" SS Reducer Bushing 90.450 9 47 2 2" SS 45 ELL _ $0.7 10 • 48 3 2 x 11112" SS Reducer Bushing $0,460 49 1 2 x 314" SS Reducer Bushing $0.450 3 • DATE: APRIL 15,1997 CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM: Kathy DuBose, Executive Director of Finance SUBJECT: BID # 2028 - IRRIGATION SUPPLIES/SOUTH LAKES PARK RECOMNIENDATION. Council approve award of Bid #2028 - Irrigation Supplies/South Lakes Park to the low bidder meeting specifications, Wickham Supply, Inc. for the unit prices shown on Exhibit A. The estimated expenditure is 824,400.00. SUMMARY: This bid is for the purchase of irrigation supplies the Parks Department will use to complete the South Lakes Park irrigation project. A materials list was compiled and bid invitations were mailed to six vendors. Fiv:, vendors responded to the invitation. PRO.GRAI4LS,_DEPARTMENTS_OR_GRO.UPS-AFFECTED; Parks and Recreation D^partment, Users of South Lakes Park. FISCAL IRIPACT, Funds for the project are available in miscellaneous equipment account number 444.031-PARK-9640.9107 which has a current balance of $25,796.00. Attachments: Tabulation sheet Memor usdum from Bob Tickner, Superintendent of Parks j Respectfully submitted: 4 Kath Du% Executive Director of Finance Prepared by: Name: MeI ie Harden Title: Buyer Approved: Name: Tom D. Shaw, C.P.M. Q Title: Purchasing Agent • O J A6D 7^ENDA I`f f 4 PEW • • BID q - 2926 - f BID NAME Irrigation Supplies! DENTEX KEETCH WICKHAM LONGHORN GOLDTH- South Lakes Park SUPPLY PIPE SLTPLY INC. WAiTE'S OPEN DATE March 25,1997 VENDOR VENDOR VENDOR VENDOR N~ QTY DESCRIPTION VENDOR - Estimated Total: $27,062.79 $29,621.22 $24,418.89 $26,270.04 $24,623.83 DNivsry: 14 DAYS _ 10 DAYS _3 DAYS 2 DAYS 2 DAYS - - - i r I I ~ i I r' 6 _ +t g., "a' ~A~ffism~ ladmemoymum;Q • • WY of DENTON, TEXAS MUNICIPAL BUILDING a 215 E MCKINNEY• DENTON, TEYAS 76201 (817) 566.8200 & DFW METRO 434.252? MEMORANDUM TO: Tom Shaw, Purchazing Agent FROM: Bob Ticknor, Superintendent of Park rr DAT': March 28, 1997 SUBJECT: Recommendation on Bid 02028 E~ After review of bids received on Bid 12028, South Lakes Park irrigation supplies, we wish to recommend the low bid of $24,418.89 received from Wickham Supply, Inc., Richardson, TX 75081. 01Therbids received were: Goldthwaites ~.t Texas $24,523.83 ` Longhorn Supply 25,270.04 Dentex Supply 270062.79 Keetch Pipe Supply 29,521.22 Please place this item on the next available Council agenda for approval. Thank you for your time and effort. • AJJ00820 b "Dedicated to Qualify Satire" • • Agenda Na _ / Agenda Item ORDINANCE NO. Dale_ AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND PROVIDING FOR THE AWARD OF CONTRACTS FOR PUBLIC WORKS OR IMPROVEMENTS; PROVIDING i OR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City has solicited, received and tabulated competitive bids for the construction of public works or improvements in accordance with the procedures of STATE law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and recommended that the herein described bids are the lowest responsible bids for the construction of the public works or improvements described in the bid invitation, bid proposals and plans and specifications therein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION.I. That the following competitive bids for the construction of public works or improvements, as described in the "Bid Invitations", "Bid Proposals" 6r plans and specifications on file in the Office of the City's Purchasing Agent filed according to the bid number assigned hereto, are hereby accepted and approved as being the lowest responsible bids: BID NUMBER CONTRACTOR AMOUNT 2009 SABER DEVELOPMENT CORPORATION $122,865.62 SECT10N_11. That the acceptance and approval of the above competitive bids shall not constitute a contract between the City and the person linbmitting the bid for construction of such public works or improvements herein accepted and approved, until such person shall comply with all requirements specified in the Notice to Bidders including the timely execution of a written { contract and famishing of performance and payment bonds, and insurance certificate after notification of the award of the bid. i • SEC:nONIII. That the City Manager is hereby authorized to execute all necessary written contracts for the performance of the construction of the public works or improvements in accordance with the bids accepted and approved herein, provided that such contracts are made in accordance with the Notice to Bidders and Bid Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein. t0 ~ O 1 7 7 7 7 1 7 1 • • SECnON-1V. That upon acceptance and approval of the above competitive bids and the execution of contracts for the public works and improvements as authorized herein, the City Council hereby authorizes the expenditure of funds in the manner and in the amount as specified in such approved bids and authorized contracts -xecuted pursuant thereto. SECTION. That this ordinance shall become effective immediately upon its passage and approval. PASSED ARID APPROVED this the day of JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY:- APPROVE!" AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY _ f • BY: • • 2 , f ~ E . 4' t t r DATE: APRIL 15, 1997 CIT.Y_Ct WNCIL REPORT TO: Mayor and Members of the City Council FROM: Kathy DuBose, Executive Director of Finance SUBJECT: BID 91009 - LAURELWOOD 8" WATERLINE R.ECOMAIENDATION. We recommend this bid be awarded to the low bidder, Saber Development Corp., in the total amount of 3122,865.62. SUMMARY: This bid is for all labor and materials necessary in the replacement of 2,305 linear feet of 8" waterline on Laurelwood from Kayewood to Highway 380, and, 408 linear feet of 6' waterline on Redwood hom Laurelwood to Greenwood. These waterlines have had numerous breaks and have required high maintenance since 1988. This project is exp=ted to be completed in 30 days. Water Engineering found several mathematical errors up -n review of Sabers bid as shown on the corrected total of the tabulation sheet. I Notices to bid were mailed to 70 prospective contractors. Bid proposals -vere received from ' of those. PROGRAMS, DEPARTbIENTS_ORGROUPS AFFECTED: Water & Sewer Field Service, Water Utility, Water Utility Customers, Citizens in the area. f FISCAL INIPACT: Funds for this project are from Capital Improvement Revenue Account 9620- 081-0461-R601-9114. Attachmcnts: Tabulation Sheet Location Map PUB Minutes Recommending Approval Respectfully submitted: s~ k Kathy DuB t Prepared by: Executive Director of Finance Name: Denise Harpool Title: Senior Buyer t Approved: t Name: Tom D. Sl w, C.P.M. Title: Purchasing Agent 958 A^.ENDA 3 • ~BID NAME LAl'RELNOOD S"W'ATERLLNE SAM ; 4ENDEREON JAOOE CO9ClEC OBR j MID STATE DEVELOPMENT, CONST KMLIC CONST CONST UTILITIES OPEN DATE 0•I11.97 COS.P. DLSlPAMON I~^~T _VENDOR \ENOOR I- YL\DOVENDOR. VENDOR_ VENDOR 1 TOTAL RID AWAFD S122,776.06 S137,9A1.00 SI77124001 1123,60675 $161,771.00 SB6501.001 I I I i I CASISIERSCBECK/SOND IVIES NES + IES ITS ITS VTS CORK MU TO 5111,16162 ' i I i i f I I~ f i 1 ~ G J 4 ' i 7 e, ~,.,.,...,._._.._..«..«...,wr~ar«e~ry~}~•.r:py~({' gyp. . 0 s s L-VC,ATION MAP ff RA fr R M, u! DWUL vaL KINGSTON TRACE z Ls Lk. 8 ZA9 ArrEN i°' DOrEA Man*" LN. W. w E qr n ` ~DnrDAD Lm. iN OR W" 7 NuMEA NCrOAIA 8WXEN MILL CHUB C 0 ® 9 ~°N AK PDND C , 1RLWts11I16 ADD L.^UREL.WOOI3 OAYt W ATEL. INES R toks"cl D WAN00 ou ' f W 0"sm O • cam" AUORA • rum cr. KVM'f DR. W. EXHIMFr 1 • • ven.un u„6 nun[ rxx Nu':c srrosas~t~ ~7-i'3-4Y tlilYSA"1l.it ^ITY OF DENTON PUBLIC UTILITIES BOARD MEETING March 19, 1997 5. CONSIDER APPROVAL OF BID NO. 2009 IN THE, AMOUNT OF $122,865.62 FOR CONSTRUCTION OF THE LAURELWOOn 8" WATERLINE Ms. Jordan presented this item saying staff recommends award of the contract to Saber Development Corporation in the amount of $122,665.62 for the Laurelwood waterline project consisting of portions of Redwood and Kayewood streets. The bid does not include asphalt patching and this work will be performed by the Engineering and transportation Department at S2-00 per square foot of patch. Mr. Giese made a motion to approve this item. Mr. Thompson seconded the item.. All ayes. no nays, motion approved. i I •,I i J 6 • u++~^r-•-.~.✓'.'r~ • t.'. .ale 0 0 . Apende Nu„r Apen': Item~7-~- Date Y I ORDINANCE NO. AN ORDINANCE AWARDING A CONTRACT FOR THE PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES BY THE STATE; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, pursuant to Resolution 92-019, the State Purchasing General Services Commission has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or service; in accordance Mfli the procedures of state law on behalf of the City of Denton; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described materials, equipment, supplies or services can be purchased by the City through the General Services Commission programs at less cost than the City would expend if bidding these items individually; and W IfEREAS, the City Council has provided in the City Budget for the appropriation of fiords to be used for the purchase of the materials, equipment., supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the items in the following numbered lease agreement for materials. equipment. supplies, or services, shown on "Purchase Order #73832" attached hereto, are hereby accepted and approved as being the lowest responsible bids for such items: LEASE AGREEMENT VENDOR AMOUNT 2045 IBM CORPORATION $897,268,0 s SECTION IL That by the acceptance and approval of the above numbered items set forth in the attached purchase order, the City accepts the offer of the persons submitting the bids to the General Services Commission for such items and agrees to acquire the materials, equipment. supplies or services in accordance with the terms, conditions. specifications, standards, quantities ® and for the specified sums contained in the bid documents and related documents filed ,,ith the 0 0 General Services Commission, and purchase orders issued by the City. i ' • • SECTION UI. chat should the City and persons submitting approved and accepted items set forts- in the attached purchase order wish to enter into a formal %+ritten agreement as a result of the City's ratification of bids awarded by the General Services Commission, the City Manager or his designated representative is hereby authorized to execute the %witten contract which shall be attached hereto; provided that the «ritten contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the General Services Commission, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SEC11ON IV. That by the acceptance and approval of the above numbered items set forth in Oe at!a-.hed purchase order, the City Council hereby authorizes the expenditure of funds therefor in Lhe amount and in accordance aith the approved purchase orders or pursuant to a ATitten contract made pursuant thereto as authorized herein. SEC1f0,,N V. That this ordinance shall be.ome affective immediately upon its passage and approval, PASSED AND APPROVED this day of 1996. JACK MILLER, MAYU'? I ATTEST: JENNIFER WALTERS, CITY SECRETARY • BY: i APPROVED AS TO LEGAL FORM: IIERBLRT L. PROUTY, CITY ATTORNEY BY: srATARMIN ANCE 2 r.--h •~w..a...-......-....-. _v, . r' 4th.. -.t. s • DATE: APRIL 15, 1997 CITY COUNCIL REPORT r0: Mayor and Members of the City Council FROM: Kathy Du Rose, Executive Director of Finance SUBJECT: LEASE PURCHASE AGREEMENT 02045 -IBM CORPORATION RECOWNUVDATION: We recommend this Lease Agreement with IBM Corporation be approved in the amount of $174,334.00 for the first seven months, 5299,186.00 per year for 1798 and 1999, and S 124,562.00 for the year 2000 for a total of $897,268.00 over a 36 month period. St)bDtARY: Purchase Order 073832 is for the first seven months of the acquisition cf 296 Pentium 166 pc work stations, 32 Pentium 200 pc power w(xk stations and 30 Pentium 150 laptop computers. These unit will be distributed throughout the City of Denton to upgrade the city's computer capabiiity as approved in C the Information Services Long Range Plan. The above referenced purchase order is written in the amount of the first seven (7) months payment of a total ` 36 month leasepurchase agreement. Assuming Council approval, a new purchase order will be written for the 12 months of 1997-98 physical year and for subsequent months through May, 2000. The prices for the acquisition of this equipment are taken from the State of Texas General Services Commission Contract for purchases or le/aes from Qualified Information Services Vendors. The General Services Commission contract listings satisfy all competitive bidding requirements (Texas Local Government Code Section 271,082, 271.083, 601b, Section 3,081VTCS, and Attorney General ruling camber DM-350). t Presentations were made to the Information Services Advisory Bowl and Public Utility Baud by Gary Collins, Director of information Services. Both advisory boards approved the recommendation to lease the equipment over a 36 month period and to utilize the General Services Commission Cooperative Purchasing Pr gram. PROGRAMS.DEPARTMENTS OR GROUPS AFFECTED. Information Services Divisiom, City of Denton Staff and Citizens of Denton. FISCAL IMPACT: Fund- for this leaselpurchase acquisition are available from 1996-97 budget funds for the first seven months. Subsequent pa mints will come from appropriate budget funding. - Attachments: Memorandum from Kathy DuFbse, Executive Director of Finance Minutes from Information Services Advisory Board Purchase Order 473832 to IBM Corporation Respectfully submitted: Lc F Ke 8 Executive irectoroffinance Appro"ed by: Name: Tom D. Shaw, C.P.M. Title: Purchasing Agent l6S AnFNDI 3 it , rte, • I I 1 CITY of DENTON, TEXAS MUNICIPAL BUILDING, 215 E MCKINNEY o DEN TON. TEXAS 76201 (817) 566.8200 - DPW METRO 434.2529 MEMORANDUM TO: Mayor and Members of City Council FXOM: Kathy DuBose, Executive Director of finance DATE: April 9, 1997 SUBJECT: Personal Computer Acquisition The Long Range Technole gy Plan was developed to address serious technology issues facing the City, including the replacement of old and obsolete equipment, replacement of functionally obsolete software, connectivity and standardization of various networks and equipment, and ensuring that we can deal with problemr associated with the year 2000. As we move forward with this plan, we will bring to you for approval different elements during the next three years of implementation. The issue of personal c mputer acquisition presented here allows us to equip many employees with long needed access to information and to upgrade obsolete equipment. We have worked extensively with North Texas Computer Services (NTCS) and Utilities staff to develop a recommendation consisting of personal computers for three different levels of users (i.e, workgroup user, power user, and mobile user). All current personal computers that meet the minimum specifications or can be easily upgraded will be retained. We will twee sealed bids for disposition of the discontinued machines as a group, as there are maintenance service companies that buy used equipment for parts. In leasing this equipment, we will be able to analyze our needs at the end of the three year lease term as to whether we should purchase at that time or 'roll over' the lease in part or in whole to upgraded equipment. The first year lease fee is in the current year's budget and future payments will be budgeted in subsequent years. Both the Informata -vices Advisory Board and the Public Utility Board recommend approval. If you have any questions, please let me know. I , 4 ' Dedicared to Qualrn Senice" e • MINUTES OF INFORNIATION SERVICES ADVISORY BOARD MEETING OF MARCH 06, 1997 The Information Services Advisory Board meeting was held on Monday, March 06, 1997, at 6:00 p.m., in the Information Services conference room. N EMBERS PRESENT: Don Edwards, Lisa Green, Vicki McCombs, and Maureen Saringer 11IENIBERS ABSENT: Warren Searls, Renae Seely, and Lupe Tovar OTHERS PRESENT: Gary Collins, and Kathy DuBose from the City staff Vicki McCombs made the motion to approve the minutes from the February 17, 1997, Information Services Advisory Board meeting. Maureen Saringer seconded the motion, and it passed unanimously. A discussion was held regarding the recommendation of the leasing of computers. Gary stated that North Texas Computer Services had helped in determining configurations, kinds J of machines to consider, and lease rates based on type of equipment as well as availability of equipment. Kathy DuBose added that Utilities has worked on thi. with us. Gary said our work group will be a Pentium 166, 32MB, with a 15" monitor. The unit cost for the IBM is $2,096.,5, Compaq is $2,119, and HP is $2,327.78. Don Edwards asked who else submitted pricing. Gary responded that these three had submitted pricing. North Texas Computer Services made a recommendation, and Glen Fisher from Utilities concurred. Gary said that there would be no CD-ROMs in the wort. groups but that the power users would • have CD-ROMs. There will be 15" monitor, 10/100MB ethernet card in all of them, and Windows '95, which constitutes the price. i Maureen asked what constitutes power users. Gary mentioned electrical engineering, civil engineering (for example in Jerry Clark's area), and work requiring a lot of graphics as examples of users who would have a rued for more powerful PCs. When the initial survei was • done, Greg Galluizi identified which people were power users or work group users. Currently, e o J the list is being re-examined. Some positions will be reclassified from work group to power user or vice versa, as appropriate. Moreover, there are some new positions that did not exist when the survey was originally done. Although these are I :try close estimates at this time, 5 • • Information Services Advisory Board Minutes March 06, 1997 Page 2 there will be a recounting of the inventory so that the numbers can be finalized. Kathy DuBose stated that we have also had some systems die. Gary continued to describe the proposal. All 8086s, 286s, 386s, and (hopefully) 486s will be replaced with Pentiums. Some of the unused 486s may be useful in "control areas" where there are no people behind them; e.g., traffic signals or heating and air conditioning systems. Vicki wanted to know what would hapFrn to the discontinued 286s, 386s and 486s. Gary responded that we would take sealed bids for disposition of the entire group of unused PCs. Maureen inquired about locating sources to bid on the discarded equipment. Gary answered that there is a marketplace for used PCs, or there are maintenance services that buy used equipment for parts. Kathy said that we have people that do auctions a few times a year. Gary summarized the proposals regar.ing the lease rates. Leasing the IBM equipment on the work group side comes in lower. For the power user (Pentium 200, 64MB, CD-ROM, ethernet card, 17" monitors), the Compaq is the least expensive cost overall. On the laptops, consideration was given to Olivetti, NEC, and Toshiba because the pricing was much higher on the IBMs, Compaqs, and HPs. Vicki asked Lae purpose of the laptops. Gary stated that those were for directors or exacutive directors to take home, for travel, etc. That would be in the lieu of a desktop computer. Vicki expressed some concern. She had done some calculating herself and thought that financially it would be less expensive to purchase the equipment-ownership vs. leasing. Gary explained to the group the purpose of leasing instead of purchasing. This lease would have a three-year fair market value; at the end of the three years, we can either pay the market value or renew the lease on new equipment. After ce^,'nuing to discuss these concerns, Don recommended that the group make a motion to go forward with what was being presented before the Board. Maureen made the motion to recommend that the City Council approve the leasing of IBM PCs for the work group m?zhines, Compaq PCs for the power user machines, and NEC for the lapto t machines from IBM. Lisa seconded the motion, and it passed with a 3.1 vote. 11 There being no further business, the meeting was adjourned at 7:45 p,m. I • 6 • 0 i 1.00 A.%N0n:EI C_ h • . . _ wn N r.. .r . . . 4 . a'.A w-. 61. g--Pt • • • . . ....,.u ,..r.w. W. ,.a... o +.F7`1rt Y'cR Ti'i>tL4'. FY:KA .Rb•,', , PURCHASE ORDER NO: 73832 THIS !S A %X% , In's r 'ber musk appear on all CONNRMING ORDER invoices, delivery slips, uses, 4 IIF MARKEDI } tins, boxes, packing slips and bins. DO NOT DUPLICATE - Re0 No. Bid No: TD) Date: 04 09 97 F, go No. 01 PURCHASING DIVICOTY9 1 B i?EN s~Nf ITDEE TONN. TEXAS 7620+-4354 817/383-7100 D/FVV METRO 8171267-0042 FAX 8171383-73x2 VENDOR IBM CORPORATION NAME/ HLTH/B/MFG/INS DELIVERY CONFIRMATION ONLY C11 ADDRESS 1605 LBJ FREEWAY ADDRESS INFORMATION SERVICES DALLAS TX 75234 601 E HICKORY DENTON, TX 76205 DEAN BELVIS nV~eENDOR NO, 11149000 DELIVERY OUOTFD 05 01 97 FOB DESTINATION BUYER TS TERMS ' LINE IT rz 3 '»2.4 XM,~ „e,h `7,, i ",r n .3 L ¢;A ta5"pbS T' C ' ) 001 1.00 LT VENDOR CAT. 1 N / A MFG MAKE 16,837.000 116,837.0 CITY i 93921 7 MONTHS LEASE PAYMENT OF 296 IBM PC 340 P166, 1.208, HD 16MB RAM, 256K CACHE, 16MB RAM UPGRADE, IBM G50 DISPLAY 1(15 IN., 28 PITCH 1024 RES) IBM 10/100 TX PCI UTP NETWORK CARD Wi^H WINDOWS 95. ` 002 1.00 LT VEBDOR CAT. 1 M / A MFG MAKE 20,707.000 20,707.OC CITY 1 93921 7 MONTHS LEASE PAYMENT OF 32 COMPAQ DESK PRO 2000 P200, 2.5GB HD, 32MB RAM 256K CACHE, COMPAQ 8X INTERNAL CD-ROM • COMPAQ 32KB RAN UPGRADE COMPAQ V70, DISPLAY (17 IN., .28 PITCH, 1280 RES), COMPAQ 10/100 TX PCI•UTP NETELLIGENT CARD WITH WIN 95 AND 1 YH LABOR WARRANTY ON PC AND MONITOR UPGRADE TO THREE Me, P GE TOTAL t 137,544.00 . • O VINUOR INSTRUCTIONS: I. ietms • Net 70 aw'^• w^^•'I I. Send si mvolct with dupliute Copy. 4. SAipping msuuctions. FOB Oesbnabon Prepaid sw,A y..,n.nl I Bill to - Ac[ounls Payable 5. No lederal ar slate sales tam shall be eKladcf 215 E. V Kinney St. in PrKes bdled tNWcha•'inq wcrcm Denton, f% ]620F4199 PURCHASING +.MM. M 414 17 • • . ._..-.~.........-.._._._..,..._.._........_...-.._...,,,.-.,....,...w.a..wv^rrw.,..~nrrwa-a~aeR•.'--rw•n r'.,e.: ..al PURCHASE ORDER Na. 73832 'HIS IS A XXX Ihis number must appear tin dl CONFIRMINC DRDER invoices. delivery slips, cases, . (IF MARKED) uns, boxes, pacing slips and bills, DO NOT DUPLICATE I 2 Req No. Bid Na Date 04 09 97 Page No. 02 CITY OF DENTON TEXAS PURCHASING DIVISION / 901-8 TEXAS STREET / DENTON, TEXAS 76201-4354 8 17083- 7 100 DfFW METRO 8171267-0042 FAX 8 171383-7302 VENDOR IBM CORPORATION NAME/ HLTH/B/MFG/INS FELIVERY CONFIRMATION ONLY CI1 ADDRESS 1605 LBJ FREEWAY ADDRESS INFORMATION SERVICES DALLAS TY 75234 601 E HICKORY DENTON, TX 76205 en DEAN BELVIS VENDOR NO. I 1149000 DELIVERY OUDIEO 05 01 97 FOB DESTINATION BUYER TS TERMS 003 1.00 LT VENDOR CAT. 1 N / A MFG NAME 31,676.000 31,676.011 CITY 1 93921 7 MONTHS LEASE PAYMENT OF 26 NEC LAPTOPS WITH DOCKING STATIONS 6000 PLUS RJ-11 JACK, (1) PCI, (1) ESA (1) SHARED EXP SLOTS, FULL 004 1.00 LP VENDOR CAT. I N / A MFG NAME 4,710.000 4,710.0 CITY 0 0.3921 7 MONTHS LEASE PAYMENT OF 4 NEC LAPTOPS WITH PCMCIA NETWORK CARD INSTEAD OF DOCKING STATIONS NEC VERSA 6050 MX P-150HXX LAPTOP, 2.1GB HD, 16MB RAN, 33.6 INT FAX/ A MC,:,EM, 1OX CD-ROM, 144KB 3.5 IN. FDD, 12.1 IN. TFT, 16MB RAN UPGRADE 3 COM FAST ETH IL 19/100Th, WITH WIN 95, AND CARRYING CASE • r I P ,E TOTAL s 36,386.0 e , 1 • J vEINXlR INST8l1C110NS. I terms • Net 30 a'.w„ I. Send migmal invoice with dupbnte COPY 4. Shipping mitrocbons. FOR, Oestuuwon preprd uw, .a....,. .,..,.,1 2 Ddl to - Accounts Payable S No leder l or state fairs to stub be Included 215 I AkKicsty Se in prices belted. j hasesg Division Oen;IK 76201.4299 PUY+CHASING j' C 1 e / • • 4 PURCHASE ORDER NO: '13832 THIS IS A XXX This number must appear on all CONFIRMING ORDER invoices, deivorr sips, cases, IIF MARKED) - clos, boxes, packing slops and bills. . DO NOT DUPLICATE Heq No. Bid No: D■tr 04 09 97 Page No. 03 PURCHASING DIVISION / 9001 9 7CXAS STT140 ITL~X~SEXAS 76201-4354 VENDOR IBM COEPORATION 8 1 71383-7 100 D/FVV METRO 8171267-0042 FAX 8171383-73D2 NAME/ HLTH/b/MFG/INS DELIVERY CONFIRMATION ONLY C11 ADDRESS 1605 LBJ FREEWAY ADDRESS INFORMATION SERVICES DALLAS TX 75234 601 E HICKORY DENTON, TX 76205 0 DCAM BELVIS VENN NO. 11149000 DELIVERY OUOTED 05 01 97 F08 DESTINATION BUYER TS TERMS INE QU 1A~..1~'..~ r ~ 7 7v W ~ ,k 3 005 1.00 LT VEMPOR CAT. 1 N / A MPG NAME 404.000 404.0 CITY 1 93921 7 MONTHS LEASE OR UPGRADING 7 15" MONITORS TO 17" MONITORS FOR LEGAL I P GE TOTAL a 404.OC • s • Ot 100 044 0080 8509 174,334.00 GR ND TOTAL 174,334.OC E s'INUOR INSTAUETIONS. I. Terms - Net 30 I. Send mipmal luvoice with dupbute copy. ! 4. Shipping aistrochsns FOB Deshrahon prepnd aku,. 1 II to - Accowls psralle 5 No federal or slate tares tam s1u0 ke "rcleded 715 E McKimer SL N pv+ces kdkd hXC rrRl hvr e,Ir nchron, rK 16701.4199 PURCHASING . • r e .,i.., <<'. L. i ...:x..L.'Ji:zItrI''v}-.^f=:J.'l.;4JYtR4EpF Agenda No._~.7-~,c..T Apenda Item a0 Date OFFICE OF THE CITY ATTORNEY MEMORANDUM TO: Honorable Mayor and Members of the City Council FROM: Michael S. Copeland, Assistant City Attorney SUBJECT: Amendment to Compost and Wood Mulch Ordinance DATE: April 1, 1997 The purpose of this memorandum is to briefly summarize what changes are being proposed to Ordinance 97-052 which was passed by the City Council on February 18, 1997. The changes are made pursuant to the request of Howard Martin, Director of Environmental Services and reflect changes which I believe he and the City Council deemed appropriate at the time Ordinance 97-052 wait presented to the City Council on February 18, 1997. Below are the proposed changes to the compost/wood mulch ordinance: 1. A lower minimum sale quantity of 1/2 cubic yard is established. 2. Purchasers of the products may pay for the same either at the City of Denton Customer Service Department or at the Pecan Creek Water Reclamation plant. 3. Any reference to days or hours of service in the ordinance are deleted. We have drafted the proposed amended ordinance to be retroactive to March 1, 19970 the effective date of ordinance 97-052, the first f compost and wood mulch ordinance. H chael S. Copeland I MSC/cd • • _ i J: \WNXS%M \CQ"P0S r .0afl ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON AMENDING ORDINANCE NO. 97-052 BY CHANGING THE RATE, TYPE OF SERVICE AND PAYMENT PROVISIONS ON RATE SCHEDULE CWM IN CONNECTION WITH THE SALE OF COMPOST AND WOOD MULCH BY THE WATER RECLAMATION DIVISION OF THE WASTEWATER DEPARTMENT OF THE CITY OF DENTON TO THE GENERAL PUBLIC; PROVIDING FOR A SEVER- ABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION L. That Ordinance No. 97-052 is hereby amended by adopting a new CWM Rate Schedule, attached hereto and incorporated herein as Exhibit A, for the sale of compost and wood mulch, as provided for in Chapter 26 of the Code of Ordinances of the City of Denton, Texas SECTION 11, That if any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, 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. SECTION III. That the amendment to the Schedule of Rates herein adopted shall be effective, charged and applied retroactive- ly, as applicable, to the sale of compost and wood mulch by the Water Reclamation Division of the Wastewater Department of the City of Denton on or after March 1, 1997; and a copy of said rates shall be maintained on file in the office of the City Secretary. PASSED AND APPROVED this the _ day of , 1997. JACK MILLER, MAYOR i ATTEST: JENNIFER WALTERS, CITY SECRETARY • @ 0 BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: t y r.. • • SCHEDULE CWM COMPOST AND WOOD MULCH SCHEDULE (Effective 03/01/97) APPLICATION Applicable to any and all customers, whether residential, commer- cial or wholesale, who elect to acquire the City of Denton Compost and/or Wood Mulch for their use. The City of Denton reserves the right to restrict or limit the sale of compost or wood mulch to any customer at any time. i RATE I Compost and Wood Mulch will be sold by volume on a cubic yardage basis, and are to be purchased in cubic yardage increments. Quantities will not be sold in volumes less than one half (1/2) cubic yard. A. Compost Per Cubic Yard $20.00 B. Wood Mulch Per Cubic Yard $10.00 PRODUCT AVAILABILITY The City of Denton produces compost and wood mulch throughout the year in varying limited quantities. The City of Denton does not guarantee the availability of either product, and expressly reserves the right to restrict the sale of either product based upon available volumes. TYPE OF SERVICE/PAYMENT FOR SAME Compost and Wood Mulch may be purchased at the City of Denton i Customer Service Department, located at 215 East McKinney, Denton, Texas during regular business hours, or at the Pecan Creek Vater Reclamation Plant (the "Plant"), located at 1100 Mayhill Road, Denton, Texas. All compost and wood mulch sold will be sold in bulk, and will not be bagged or otherwise packaged. All customers wishing to purchase compost and wood mulch will be required to pay for same, prior to being entitled to receive any compost or wood mulch. All compost and wood mulch sold shall be provided to the • customer at the Plant once the customer presents a paid receipt to the attendant. No product deliveries will be made to any cus- tomer's site location at this time. Page 2 e :r i I ' WHOLESALE PURCHASES All compost or wood mulch purchased wholesale, for resale to the public, is to be identified as a City of Denton manufactured product. The wholesale purchaser must provide the City of Denton selling price information to the retail customer if it is request- ed. i r • I ' E Page 3 • r • Agenda No._ 9z 1 Agenda Item _ OaEe DI5-° 0.3 CITY OF DENTON, TEXAS 300 WOODROW LANE • DENTON, TEXAS 7F2)5 a TELEPHONE (817),W-75 ANIMAL CONTROL ICONSUMER HEALTH CITY COUNCIL REPORT FORMAT TO Mayor and Members of the City Council FROM: Michael W. Jez, Executive Director of Operations DATE: March 25, 1997 SUBJECT: ORDINANCE AMENDMENT CHANGING ENVIRONMENTAL HEALTH DIVISION TO CONSUMER HEALTH DIVISION RECONLMENDATION: The staff recommends adoption of this unendment to the Code of Ordinance. SUMMARY This amendment is merely a housekeeping activity. The consumer health division was formerly called the environmental health division. This name was often confused with the environmental services division. The current ordinance st:ll makes reference to the environmental health division, This amendment changes each of those references to consumer health BACKGROUND: • No additional information. r PROGRAMS DEPARTMENTS OR GROUPS AFFECTED: Consumer Health Division CCPJCIInrl wPD Marsh 26,1997 'Dedicated to Quality Service" t4 • • r -Page 2- City Council Report Format FISCAL IMPACT None. Please advise if I can provide additional information. Respectfully submitted: ittl'frha W. Jez Executive Director of 4ations Prepared by: i Nome Slalo-Kul], bt g Animal Control/Con Health Attachment: i j E 1 I • i r • E • O CCR}CIIAN.WPO March 26,1997 J ' Page 2 of 8 11 a ' a 2, • • s f'.\MPDOCS\0PD\C':,NST>MA HEA ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON AMENDING CHAPTERS 13 AND 14 OF THE CODE OF ORDINANCES TO REPLACE REFERENCES TO THE DIVISION OF ENVIRONMENTAL HEALTH SERVICES WITH THE DIVISION OF CONSUMER HEALTH; PROVIDING FOR A SAVINGS CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the division of Environmental Health Services of the City of Denton has been renamed; and WHEREAS, the Environmental Health Services division is now the Consumer Health division; and { WHEREAS, Chapter 13 and Chapter 14 of the Denton Code of Ordi- nances references the "Environmental Health Services" division; and WHEREAS, references to "Environmental Health Services" in Chapter 13 and Chapter 14 of the Denton Code of Ordinances need to be replaced with "Consumer Health"; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That Section 13-2 Subsections (a), (i), and (j) of the Code of Ordinances, Denton, Texas, are hereby amended to read as follows: f Sec. 13-2. Definitions. (a) Administrator shall mean the administrator of the j division of consumer health. (i) Health Officer shall mean a sanitarian or health inspec- tor of the consumer health division of the city. (j) Health or regulatory authority shall mean the consumer health division of the city. • SECTION II_ That Section 13-20 Subsection (5) of the Code of Ordinances, Denton, Texas, is hereby amended to read as follows: See. 13-20. Permit Required. (b) Any person desiring to operate a food service establish- ment shall make written application for a permit at the office • of the consumer health division. The application shall • include the applicant's full name, street and post office address, and whether such applicant is an individual, firm, or corporation, and, if a partnership, the names of the partners, together with their addresses shall be included; the location and type of the proposed establishment; and the signature of the applicant or applicants. If the application is for a temporary or seasonal food service establishment, it shall also include the inclusive dates of the proposed operation. Page 3 of 9 ( c 7 7 • • SECTION III. That Section, 13-24 Subsection (a) of the Code of Ordirances, Denton, Texas, is hereby amended to read as follows: Sec. 13.24. Plans and Permits. (a) The owner shall submit plans and specifications for con- struction of work areas intended for use in the operation of a food establishment, and the location, size, and type of fixed equipment and interior finishes of such areas to the City of Denton consumer health division for approval before work is begun, when a food service establishment is construct- ed, or: (1) The nature of the operation changes; (2) The establishment is extensively remodeled; or (3) When an existing structure is converted for use as a food service establishment. 1 SECTION IV. That Section 13-25 Subsection (a) of the Code of Ordinances, Denton, Texas, is hereby amended to read as follows: Sec. 13-2S. Expiration and Renewal of Permits. (a) A permit lapses and is void unless the applicable permit fee is received by the consumer health division before the expiration date of the existing permit. SECTION V. That Section 13-26 of the Code of ordinances, Denton, Texas, is hereby amended to read as follows: Sec. 13-26. Revocation of Permit. The consumer health administrator may, after providing oppor- tunity for a hearing, revoke a permit if the administrator deter- mines that the manager or owner of a food service establishment has: • (1) Interfered with the health officer in the performance of his duties; or (2) Been convicted twice within a twelve-month period for a violation of this chapter; or • (3) Failed to comply with a hold order or a condemnation • • order; or (4) Failed to comply, within the time specified, with an j order to correct or abate an imminent and serious threat to 1 the public health or safety; or Page 2 Page 4 of 8 f • • (5) Intentionally or knowingly impeded a lawful inspection by the health officer; or (6) Been closed two or more times within a twelve-month period for conditions that constituted a serious and imminent threat to public health. Prior to revocation, the health officer shall notify the holder of the permit, or the person in charge of the food service establishment, in writing, of the reason for which the permit is being revoked and that the permit shall be revoked at the end of five (5) days following service of such notice unless a written request for a hearing is filed with the city by the holder of the permit within such five-day period. If no request for hearing is filed within the five (5) calendar day period, a final notice of revocation shall be served. Upon receipt of the final notice of revocation, the food service establishment shall immediately cease operation and the permit shall be considered finally revoked. I SECTION VI. That Section 13-34 Subsection (a) of the Code of Ordinances, Denton, Texas, is hereby amended to read as follows: Sec. 13-34. Reinspection. (a) Any food service establishment inspected by the City of Denton consumer health division which receives a score of seventy-five (75) or below on any inspection must be rein- spected. SECTION VII. That Section 13-42 Subsection (a) of the Code of Ordinances, Denton, Texas, is hereby amended to read as follows: Sec. 13-42. Food Handler's Permit. (a) In order to receive a food handling permit, every person owning, employed by, or otherwise connected with a food ser- vice establishment whose work brings him into contact with • food, utensils, or food service equipment is required to at- tend a food handling school held by the City of Denton or to achieve a score of seventy (70) or above on the basic knowl- edge test administered by the consumer health division. This requirement must be met upon expiration of a food handler's permit and upon application for a new food handler's permit. The administrator Ahall issue a permit to the applicant if the O applicant has: O O (1) Completed attendance of food handling school; or has achieved a score of seventy (70) or above on the basic knowledge test administered by the administrator; or (2) Is not suspected of being: Page 3 Page 5 of 8 i 7 7 • • a. Infected with a disease in a communicable form that can be transmitted by foods; b. A carrier of organisms that cause such a dis- ease; or c. Infected with a boil, an infected wound, or an acute respiratory infection. SECTION VIII. That Section 13-53 Subsections (a) and Sgt of the Code of Ordinances, Denton, Texas, are hereby amended to read as follows: (a) A mobile unit must have a commissary as a base of operations. Said commissary must meet all requirements of state law and: (1) Be inspected and permitted by the consumer health division of the City of Denton; or (2) Provide a copy of its most recent inspection report performed by the Texas Department of Health or the local health authority with competent jurisdiction over the commissary or base of operations; and (3) Provide any other documentation deemed necessary by the administrator to enable the administrator to enforce this chapter or otherwise protect the public health and safety. (g) The appll:ant for a food permit for a mobile unit shall present an inspection report to the consumer health division. This inspection shall have been made by the regulatory authority with Jurisdiction or the Texas Department of Health, if the locAtion of the commissary outside the corporate limits of Denton, Texas. • SE rN IX. That Section 13-61 Subsection (a) of the Code of Ordinances, Denton, Texas, is hereby amended to read as follows: i Sec. 13-61. Violations. (a) The administrator of the consumer health division, or any of his designated employees, shall have the responsibility and • power to enforce all provisions of this chapter within the corporate limits of the City of Denton, Texas. • O SECTION X. That Section 14-26 of the Code of Ordinances, Denton, Texas, is hereby amended to read as follows: Page 4 Page 6 of B 3 . 1.c"V • • Sec. 14-26. Designation of City Health Officer. The duties provided in this chapter shall ba performed by the city health officer. The city health officer is the consumer health manager. SECTION XI. That Section 14-86 'Definitions" of the Code of Ordinances, Denton, Texas, is hereby amended to read as follows: Sec. 14-86. Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly- indicates a different meaning: I i Administrative area means the area of an establishment not I generally accessible to the public, including but not limited to individual o`fices, stockrooms, employee lounges, or meeting rooms. Director means the manager of the consumer health division of the city. Food establishment means any operation defined as such in section 13-1 of this Code. Hospital means any institution that provides medical, surgical, and overnight facilities for patients. Public aervice areas means any area, other than an administra- tive areas, to which the general public routinely has access for municipal services and which is designated a public service area in a written policy prepared in compliance with this article. i Retail establishment means any establishment which primarily sells goods to the general public. SECTION XII. That the amendment of the Code of Ordinances, • Denton, Texas, by the enactment of this ordinance shall not be construed as abandoning any action now pending under or by virtue of said Code of Ordinances or as affecting any rights of the City under any section or provision of any Code of Ordinances at the time of passage of this ordinance. SECTION XIII. 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 O O 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. Page 5 Page 7 of 8 • • PASSED AND APPROVED this the day of 1997. JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY 1 , ~I BY: y;4-4 i • I i I i • I II ~ • • Page 6 Page 8 of 8 Ott, e • 0 Abead~ Nd,~,.,_ Acenda Item CITY COUNCIL REPORT bate - - TO: Mayor and Members of the City Council FROM: R.F. Nelson, Executive Directorof Utilities DATE: April 22, 1997 SUBJECT: CONSIDER AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCAL AGREEMENT WITH THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS FOR THE CONSTRUCTION OF RECYCLING DROP-OFF FACILITY AT THE CITY'S LANDFILL i RECOMMENDATION: The Public Utilities Board recommends approval for the City Council to give authorization to the City Manager to execute an interlocal agreement with the North Central Texas Council of Governments for the Construction of a Recycling Drop- Off Facility at the City's Landfill BACKGROUND/SUMV RY: This past summer, the Solid Waste Department applied for a recycling grant from the North Central Texas Council ofGovemments (NCTCOG) in the amount of $54,355 and in January the City was notified that the grant application had been approved. The Department intends to construct a multi-material recycling drop-off site near the landfill entrance to be open to the public during landfill operating hours. Grant funds will be used tc purchase ten open-top containers to be placed at the site, to surface the site and to construct ai adjacent fenced area for the drop-off of appliances, l The Department intends to construct the site with used utility poles from the Electric f Department using Solid Waste Department personnel and equipment. Initially, the site will accept aluminum, steel/tin, glass, scrap metal, newspaper, office paper and cardboard. Eventually, the site may also accept plastic, clothing, furniture, mattresses, used oil and filters, and batteries. Commercial users of the landfill will also be encouraged to sort their loads at the site before proceeding to the landfill. • PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: City of Denton Solid Waste Department, Citizens of Denton, North Central Texas Council of Governments. FISCAL, IMPACT: This grant does not require any matching funds from the City. The Department estimates that the cost to construct the site with Department personnel and 0 equipment will be around S10,000. i ~ s c I • r • .r 11 1 City Council Report Page 2 Please advise if I can provide additional information. RESPECTFUL Y UBMIT'TEM E. Nelson, Executive Director of Utilities Pre aced by: Howard Martin, Direct & Environmental Operations Exhibit I Interlocal Agreement e ! i e • • f 2 i • k., lie I • • i C:\WOOCS\RE SVROV-OFF. ORD ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCAL AGREEMENT FOR A SOLID WASTE PROJECT PERTAINING TO THE CONSTRUCTION OF A LANDFILL RECYCLING DROP-OFF FACILITY, BETWEEN THE CITY AND THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS; AUTHORIZING THE CITY TO ACCEPT A GRANT FROM THE TEXAS NATURAL RESOURCE CONSERVATION COMMISSION THROUGH A SUBCONTRACT WITH THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS; AUTHORIZING THE CITY MANAGER TO EXPEND MATCHING FUNDS RELATED THERETO; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Texas Natural Resources Conservation commission ("TNRCC") has contracted with the North Central Texas Council of Governments ("NCTCOG") by the authority granted in the Current Appropriations Act; 55.229 of the Texas Water Code; and Chapter 371 of the Texas Health & Safety Code; and WHEREAS, funding for the City's Solid Waste Project providing for the construction of a recycling drop-off facility at the City's present landfill site (the "Project") are currently available from the Solid Waste Disposal Fund, through TNRCC Contract Number 61060400061 with the NCTCOG; and J WHEREAS, the City has applied to the NCTCOG for a grant requesting a substantial portion of the funding of the project, to the extent of $54,355.00, and the City's application has been granted by NCTCOG; and WHEREAS, the City, in order to receive the funds from NCTCOG respecting said grant, must execute a "North Central Texas Council Of Government's Interlocal Agreement For Solid Waste Project" (Subcontract No. 97-04-G32 hereinafter the "Interlocal Agreement"), as a subcontractor to the NCTCOG in order to complete the project and be entitled to the grant funds from the HCTCOG, serving as contractor; and ® WHEREAS, the acceptance of the grant funds and the construction of a Recycling Drop-off facility at the existing City landfill will result in a direct benefit to the City of Denton and will enhance the City being able to more effectively deal with solid waste issues; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: • O • SECTION I. That the City Council authorizes and directs the city Manager to execute the North Central Texas Council Of Government's Interlocal Agreement For solid Waste Project (Subcon- tract No. 97-04-G32) on behalf of the City of Denton, providing for the construction of a recycling drop-off facility at the site of 3 • • .:r the existing city landfill, a copy of which agreement is attached hereto and incorporated by reference herewith, along with any other documents, certifications or agreements necessary to obtain the f grant and to complete the Project. SECTION II. That the City Council hereby accepts the grant from the Texas Natural Resource Conservation Commission, and authorizes and directs the City Manager to execute the attached agreement between the City and the North Central Texas Council of Governments to substantially fund the costs of construction of the recycling drop-off facility at the site of the present City landfill. SECTION III. That the City Manager is hereby authorized to expend matching funds provided by the city, totalling $10,556.00 for completion of the recycling drop-off facility, as provided in the subcontract. SECTION IV. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _ day of 1997. JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: • APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY$ CITY ATTORNEY ` BY: EsE f 4 goo I • • Main Contract # El 060400 I Subcontract # 9764-G32 NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS INTERLOCAL AGREEMENT FOR SOLID WASTE PROJECT The Texas Natural Resourco Conservation Commission has certified that it has the authority to contract with North Central Texas Council of Governments by authority granted in the Current Appropriations Act; Texas Walor Code, section 5.229 and Texas H :alth and Safety Code, Chapter 371. Funds for this subcontract are currenfly available from the Solid Waste Disposal Fund, through Texas Natural Resource Conservation Commission contract #6106040061 with North Central Texas Council Of Governments. The NCTCOG has certified, and the SUBCONTRACTOR certifies that it has authority to perform the services contracted for by authority granted in "The Interlocal Cooperation Act," Texas Government Code, Chapter 791. This Interlocal Agreement is entered into by and between the parties named below. Neither TNRCC nor the State of Texas is a party to this Interocal Agreement. 1. CONTRACTING PARTIES: The Contractor: North Central Texas Council of Government Herein referred to as'NCTCOG" The Subcontractor: City of Denton Herein referred to as "SUBCONTRACTOR" ll. SERVICES TO BE PERFORMED: See "Attachment 8 - Work Program and Schedule of De;iverables of SUBCONTRACTOR" Ill. BUDGET AND PAYMENT PROCEDURES: See 'Attachment C - Budget and Payment" IV. ADDITIONAL CONTRACT PROVISIONS: See 'Attachment A • Special Provisions G Attachment D - General Provisions" f COUNCIL OF GOVERNMENT SUBCONTRACTOR I • North Central Texas ouncil of Governments City of Denton ~ Subcontracbr , Si nature SgneNro M ke Eastland • Name Marne a enav es % Executive Director • • Tile Title City Manager Dale I, Date ATTEST: APPROVED AS TO LEGAL FORK: HERBE~ T L? ROUTYj C1 ATTORNEY BY: _ By. LZ1 Jennifer Walters, C.iCity Secretary North Central Texas Council of Govemments • City of Denton Landfill Drop-Off Site pa" 6 ! Cam. • 0 Main Contract N 61 OW40061 Subcontract k 97-04-G32 North Central Texas Council of Governments Solid Waste Interlocel Agreement Table of Contents Attachment A. Special Provisions Article 1 Period of Performance Article 2 Scope of Services Article 3 Obligations Article 4 Identification of the Funding Source Article 5 Reporting Requirements Article 6 Monitoring Requirements Article 7 Compliance with Applicable Laws Article 8 Prohibited Uses and Activities Article 9 Authorized Representatives Article 10 Theme Phrase For Public Education Materials Article 11 Equipment Article 12 Construction Article 13 Other Expenses . Attachment B. Work Program and Schedule of Deliverables Attachment C. Budget Attachment 0. General Provisions i Article 1 Legal Authority Article 2 Scope of Services Article 3 Purpose Article 4 Types of Solid Waste Implementation Projects & Applicant Article 5 Examination of Records Article 6 Insurance and Liability Article 7 Audits & Accounting Systems Article 8 Amendments to Interfocai Agreement Article 9 Termination of Interlocal Agreement Article 10 Severability Article 11 Copyright Clause Article 12 Employment Practices • Article 13 Oral and Written Agreements { Article 14 ADA Requirements Article 15 Disadvantaged Businesses i r Article 16 Force Majeure Article 17 Entire Intedocal Agreement Appendix - Report Forms • Bimonthly Report • • Final Report/Special Form - Forms R1 & R1 a Financial Report Form North Central Texas Council of Governments - City of Denton Landfill Drop-Off Site Page 6 .~...r,~ 0 0 North Central Texas Council of Governments Solid Waste Interlocal Agreement Attachment A: Special Provisions I Article 1 Period of Performance The period of performance of this agreement begins on March 14. 1997 and ends on August 31, 1997. Article 2 Scope of Services All parties agree that the SUBCONTRACTOR, in consideration of compensation hereinafter described, shall provide the services with NCTCOG as specifically described in Attachment 8 of this Agreement and will follow the Special and General Provisions. The SUBCONTRACTOR agrees to implement the Project according to the agreed upon budget shown in Attachment C of this agreement. Article 3 Obligations w (a). Measure of Liability I In consideration of full and satisfactory performance hereunder, NCTCOG will be liable to SUBCONTRACTOR in an amount equal to the actual costs incurred by SUBCONTRACTOR in rendering such performance, subject to the following limitations: 1. NCTCOG is not liable for expenditures made in violation of, Article 8, of this Attachment which outlines prohibited activities as defined by the Texas Natural Resource Conservation Commission (TNRCC), as excerpted from "General Provisions for Texas Natural Resource Conservation Commission's List of Prohibited Activities' 2. NCTCOG is not liable for any costs incurred by SUBCONTRACTOR in the performance of this agreement which have not been billed to NCTCOG within thirty (30) days following termination of this agreement. 3. NCTCOG is not liable to SUBCONTRACTOR for costs incurred or performance rendered by SUBCONTRACTOR for costs incurred by SUBCONTRACTOR before 0 commencement of this agreement or after termination of this agreement. 4. Except as specifically authorized by NCTCOG in writing, NCTCOG is liable only for expenditures made in compliance with the cost principles and administrative requireme its set forth In Federal OMB Circular A-87. i 0 O • f North Central Texas Council of Governments - City of Denton Landfill Drop-Off Site Page 7 a'' • • (b). Method and Schedule of Payment 1. Request for Reimbursement'Financiat Report. SUBCONTRACTOR may submit a request for reimbursement no more often than once a month, by the tenth day following the end of each month for which expenditures are claimed. SUBCONTRACTOR must use the required Financial Reportt form with original signatures and provide documentation (invoices, etc.) if any construction, equipment of contractual expenses are claimed. Expenses must be itemized on each Financial Reporting'Request for Reimbursement form. Allowable expenditures are those authorized per the approved budget, Attachment C. The Financial ReporvRequest for Reimbursement should be sent to the NCTCOG Project Representative listed in exhibit A•1. 2. For all requests for reimbursement of equipment, payments wit] only be approved if the NCTCOG Project Representative has certified, in writing, that the equipment has been purchased and delivered to the SUBCONTRACTOR. 3. Payments. Upon review and approval of each such financial report/request for reimbursement, NCTCOG will make payment to SUBCONTRACTOR not to exceed the total approved budget of the grant project. No payment on any submitted claim for reimbursement shall be made it the balance for any single budget category identified in Attachment C of this Interlocal Agreement reflects a deficit of: (i) more than ten percent (10%) for budget categories having approved amounts of $1,DOO, or greater, or (ii) more than fifteen percent (15%) for budget categories having approved budget amounts of less than $1,000; I 4. The final Financial Report/Request for Reimbursement must be submitted within 30 days of the end of the project. (September 30, 1997) Article 4 Identification of the Funding Source The SUBCONTRACTOR shall give credit to the Texas Natural Resource Conservation Commission and the North Central Texas Council Of Governments as the funding source in all oral presentations, written documents, publicity, and advertisement regarding any activities which are described in the Work tasks covered by this Agreement. • Article 5 Proiect Reporting Requirements (a). The SUBCONTRACTOR shall prepare and submit to the NCTCOG, a bimonthly written progress report concerning performance under this Interlocal Agreement documenting accomplishments and units of work performed under Attachment B of this agreement. See Appendix for Bimonthly Report format. The SUBCONTRACTOR'S bimonthly progress • reports should contain descriptions of activities for the NCTCOG to ensure that the provisions of this fnterlocal Agreement are being complied with. In particular, any legal research and A iD related legal activities shall be clearly detailed in the bimonthly progress reports in order to assure the NCTCOG that the activities are not prohibited under Article 8 of this Interiocal Agreement (relating tc Prohibited Activities). The SUBCONTRACTOR shall comply with any reasonable request by the NCTCOG for additional information on activities conducted In order for the NCTCOG to adequately monitor the SUBCONTRACTOR'S progress in completing the requirements of and adhering to the provisions of this Interlonal Agreement North Central Texas Council of Governments • City of Denton Landfill Drop-OM Site Page, 9 • • (b). A final progress report shall be provided in conjunction with the final request for payment under this Interlocal Agreement, but, in no case later than 30 days after the end of the Interlocal Agreement period (September 30, 1997). Payments (reimbursements) required under this Interlocal Agreement may be withheld by the NCTCOG until such time as any past due progress reports are received. The final report shall consist of the completed forms R1 and R1a. See Appendix, for the Final Report forms. (c). The SUBCONTRACTOR shall prepare and submit to NCTCOG one Special Report documenting the success of the grant project and i!s general impact on the community. The Special Report will be due one year after the final report is due (September 30, 1998). The Special Report shall consist of the completed forms RI and R1a. See Appendix, for the Special Report Forms. (d). The SUBCONTRACTOR'S failure to comply with the requirements of this Article shall constitute a breach of this Interlocal Agreement. Article 6 Monitoring Requirements (a). NCTCOG may periodically monitor SUBCONTRACTOR for: 1. The degree of compliance with the terms of this Interlocal Agreement, including compliance with applicable rules, regulations, and promulgations referenced herein; and 2. The administrative and operational effectiveness of the project. 7 (b). NCTCOG shall conduct periodic analysis of SUBCONTRACTOR'S performance under this Interlocal Agreement for the purpose of assessing the degree to which contractual objectives and performance standards, as identified in this Interlocal Agreement or as subsequently amended, are achieved by SUBCONTRACTOR. (c). NCTCOG Project Representative must visit the SUBCONTRACTOR facility and certify in writing that equipment is on site in order for SUBCONTRACTOR to receive reimbursement for equipment expenditures. Article 7 Compliance with Aoolicable Laws The SUBCONTRACTOR shall give all notices and romply with all laws, ordinances, rules, • regulations and order of any public authority bearing on the performance of this contract, including, but not limited to, the laws referred to in this Interlocal Agreement. If the SUBCONTRACTOR or NCTCOG observes that this Interlocal Agreement is M variance therewith in any respect, the observing party shall promptly notify the other party In writing, and any necessary changes shall be adjusted by appropriate Interlocal Agreement mocification ® Article 8 Prohibited Uses and Activities O O Unless authorization is specifically provided in accordance with the provisions of this, Attachment, the SUBCONTRACTOR shall ensure that funds provided under this contract are not used for the following activities, programs, or projects: I (a). Duplication of Effort, Activities, projects, programs, studies, etc., that overlap or provide duplicate funding for projects under other State funding programs are not aulhorizsd. It the NCTCOG believes that other program grant awards are inadequate to meet the needs of the i North Central Texas Council of Governments - City of Denton Landfill Drop-Off Site Page9 • • r region, the NCTCOG may request that the FUNDING AGENCY (Texas Natural Resource Conservation Commission) consider authorizing the project in accordance with the provisions of Attachment A of this lnte local Agreement. (b). Land Acquisition Costs. Funds may not be used to acquire land or an interest in land. (c). Legislative and Lobbying Expenses. Any expenses (including legal expenses, staff time, travel, phone calls, telefaxes. etc.) that are related in any way to drafting legislation, lobbying for 'egislation, or other political activities are not authorized. (d). Food/Entertainment Expenses. Funds may not be used for food or entertainment expenses, including refreshments at meetings and other functions. This provision does not apply to authorized per diem expenses. (e). Waste Disposal. Funds may not be used for the costs of disposal of waste. This restriction also applies to the disposal of household hazardous waste or the cleanup and disposal of wastes found at an illegal waste disposal site. (f). Municipal Sotid Waste Expenses Only. Funds may be used only for programs and activities j related to the management of municipal solid waste and, in particular, funds may not be used for programs and activities solely related to the management of hazardous wastes, used oil, oil filters, antifreeze, or other special wastes. This provision, however, does not apply to authorized programs or facilities for the management of House Hazardous Waste. For instance, a used oil collection site in itself may not be funded, but a HHW collection event (including Texas Country Clean-Ups) or permanent HHW collection facility involving the collection of used oil may be funded. E (g). Landfilling Expenses. Funds may not be used for expenses directly relating to landfilling of solid waste, to include the purchase of landfill-related equipment or landfill operational costs. This provision, however, does not apply to the purchase and inslallation of scales at landfills under the appropriate grant category. (h). Projects Requiring a TNRCC Permit. Funds may not be used for projects or facilities that require a permit from TNRCC under state regulations. This provision, however, does not apply to projects or activities that may be located on a permitt6i facility which, by themselves, would not require a permit and would otherwise be eligible for funding (e.g., recycling collection at a permitted transfer station). 0 (i). Projects Requiring TNRCC Registration. Projects or facilities that require registration with TNRCC under state regulations, and which are otherwise eligible, may be funded. Hcwever, j ' only those expenses related to design and engineering work necessary prior to obtaining a k registration may be reimbursable before the registration is finally received. No actual site development, construction, equipment purchased, or similar expenses may be reimbursed prior to and until such time that a required registration is received. Remember that all projects must , A be completed by the end of the grant term, so the amount of time necessary to obtain a 0 registration mustbe considered. (j). Projects that Create a Competitive Advantage over Private fndustry. In accordance with Section 361.014(b) of the Texas Health and Safety Code, a project or service funded under this program must promote cooperation between public and private entities, and may not be otherwise readily available or create a competitive advantage over a private industry that provides recycling or solid waste services. North Centraf Texas Council of Governments - City of Denton Landfill Drop-Off Site pagel0 k, • • • 4' Article 9 Authorized Reoressntatives (a). The NCTCOG hereby designates the person in Exhibit A-1, Project Representative, as the individual authorized to give direction to the SUBCONTRACTOR for the purposes of this Intedccal Agreement. The NCTCOG Project Representative shall not be deemed to have authority to bind the NCTCOG in contract unless the EXECUTIVE DIRECTOR of the NCTCOG has delegated such authority. (b). The SUBCONTRACTOR shall identify, as its Project Representative, the person authorized to receive direction from the NCTCOG, to manage the work being performed, and to act on behalf of the SUBCONTRACTOR. The SUBCONTRACTOR'S Pruject Representative shall be deemed to have authority to bind the SUBCONTRACTOR In contract unless the SUBCONTRACTOR, in writing, specifically limits or denies such authority to the SUBCONTRACTOR'S Project Representative. (c). Either party may change its Project Representative. In addition, the Project Representative of either party may further delegate his or her authority a3 necessary, Including any delegation of authority to a new Project Representative. The party making the charge In Project Representative shall provide written notice of the change to the other pang. 1j y i r i f t i North Central Texas Council of Governments - City of Menton LandfM DrWOff Site Page ft s a Exhibit A-1 The NCTCOG hereby designates the Individual below as the person to give direction to the SUBCONTRACTOR as Project Representative of NCTCOG: Scott Schoonmaker PO Box 5888 616 Six Flags Drive. Suite 200 Arlington. Texas 76005.5888 TEL (817)695-9229; FAX (817)640-7806 The SUBCONTRACTOR hereby designates the individual named below as the person authorized to receive direction from the NCTCOG, to manage the work being performed, and to act on behalf of the SUBCONTRACTOR as a Project Representative: Joe lalenti City of Denton 901-A Texas Street Denton. TX 76201 _ TEL (817),566-8467 FAX (817)383.7334 ` The SUBCONTRACTOR designates the following toration for record access and review pursuant to Attachment A d Attachment D of this lnterfocal Agreement or any other applicable provision: Solid Waste Department Denton Munlclpal Utilities _ 901-A Texas Street Denton, TX 76201 Article 10 Theme Phrase For Public Education Materials The SUBCONTRACTOR shall use the phrase, "Take It Personally.!"on all written documents, • publicity, and advertisement materials produced for public education purposes. This consistent image which will appear on all materials distributed by the SUBCONTRACTOR will promote an understanding of the program, its mission, and its interconnectedness with other issues and programs. For the NCTCOG region, the slogan for all environmental resource conservation outreach activities is: 'Take It Personally!' NCTCOG shall furnish the SUBCONTRACTOR with camera-ready artwork of this phrase for printing purposes, , ® Article 11 Eguioment I' O (a), For the purposes of this Agreement, equipment is defined as items with a unit acquistion cost of $1,000 o greater and are subject to prior approval by NCTCOG before being purchased. The equipment described in the Worksoope and Budget (Attachments B 8 C) is approved for purchase by the SUBCONTRACTOR, If equipment purchases do not legitimately serve to fulfill the scope and purpose of the grant, then NCTCOG will not reimburse the SUBCONTRACTOR for such equipment purchases. North Cmntral Texas Council of Governments - City of Denton Landfill Drop-Off Site page 12 c „ _ - • 41 • • (b). SUBCONTRACTOR is expected to conform to the appropriate bid process according to the SUBCONTRACTOR'S own internal policies and procedures. SUBCONTRACTOR must have copies of all bids received in relation to this project and kept as documentation. The copies of all bids should be kept by the SUBCONTRACTOR at the location listed under Exhibit A-1. (c). Title to equipment and any constructed fixtures acquired from funds provided under this Interlocal Agreement shall, throughout the term of this Interlocal Agreement, be in the narr a of the SUBCONTRACTOR. All parties agree that upon full performance of this Intedocal Agreement, title shall remain with the SUBCONTRACTOR, provided however, that if this Interlocal Agreement is terminated, due to substantial failure by the SUBCONTRACTOR to fulfill its obligations under this Intedocal Agreement, title and physical possession of all equipment and constructed fixtures shall, upon writtnn nolificafion from NCTCOG, be transferred in good condition and within five (5) working days to NCTCOG. (d). The SUBCONTRACTOR agrees to conduct physical property inventories, to maintain property records and necessary control procedures, and to provide adequate maintenance with respect to all equipment and/or constructed facilities acquired under this Intedocal Agreement, as set lorth below. (e). The SUBCONTRACTOR may develop and use its own property management system which must conform with all applicable state and local laws, rules and regulations. If an adequate system for accounting for personal property owned by the SUBCONTRACTOR or its subgrantee is not in place or currently in use, the Property Accounting System Manual issued by the State of Texas General Services Commission shall be used as a guide for establishing J such a system. I (f). A physical inventory of all equipment or property acquired or replaced under this fnledocal Agreement having an initial purchase price of $1,000 or more, shall be conducted no less frequently than once every two years and the results of such inventories reconciled with the appropriate property records. Property control procedures utilized by the SUBCONTRACTOR shall include adequate safeguards to prevent bss, damage, or theft of the acquired property. The SUBCONTRACTOR agrees to develop and carry out a program of property maintenance as necessary to keep both originally acquired and any replaced property in good condition, and to utilize proper sales procedures to ensure the highest possible return, in the event such equipment or property is sold. O ' (g). All equipment and/or constructed facilities acquired or replaced under this interlocal Agreement shall be used by the SUBCONTRACTOR or its subgrantees, to support the purposes of this Interlocal Agreement, for as long as the equipment or facilities are needed for such purposes, whether or not the original projects or programs continue to be supported by State funds. 0 (h). The SUBCONTRACTOR or its subgrantee, may for the purpose of replacing various I~ • O equipment or facilities utilized under this Interlocal Agreement, either trade in or sell the equipment or property referred to in Attachment C of this Interlocal Agreement and use the proceeds of such trade-in or sale to offset the cost of acquiring needed replacement property. (i). Subject to Subsections Q) • (I) of this Section, if no longer needed for the support of the authorized projects or programs referred to in Subsection (g) of this Section, equipment and/or property acquired under this Interlocal Agreement, whether original or replacement, may be + North Central Texas Council of Governments • City of Denton Landfill Drop-Off Site Pape 13 • • used in support of other activities currently or previously supported by TNRCC, or alternatively, may be made available for use on other projects or programs, proving such other use will not interfere with the work on those projects or programs for which use equipment or facilities were originally acquired or constructed. (j). If any equipment or property acquired or replaced under this Interlocat Agreement is sold or transferred within Six (6) years of the initiation date of the Interlocal Agreement, the SUBCONTRACTOR agrees that TNRCC is entitled to a share of the proceeds from such sale. provided the fair market, per-unit value of the property at the time of the sale is in excess of five thousand dollars ($5,000). TNRCC's share of the sale proceeds shall be the same percentage as was the funding provided under this Interlocal Agreement that enabled the original purchase or acquisition of the property in question. Property that is no longer needed and that has a fair market, per-unit value of five thousand dollars ($5,000) or less may be retained, sold, transferred, or otherwise disposed of with no further obligation to TNRCC, provided the requirements set forth in Subsections (k) and (1) of this Section are followed. If the property or equipment has a fair market, per-unit value of five thousand dollars ($5,000) or more and less than six years has elapsed from the initiation of the Interlocal Agreement, the SUBCONTRACTOR or the subgrantee must contact TNRCC for final disposition instructions. I (k). If, prior to the termination date of this Interlocal Agreement, the SUBCONTRACTOR or its subgrantees determines that any equipment or constructed facilities acquired with funds provided as a result of this Interlocal Agreement is no longer needed for support of the programs or projects referred to in Subsection (g) of this Section, TNRCC may require the SUBCONTRACTOR to transfer title and possession to such equipment or movable constructed facilities to a third party named by TNRCC. (1). The SUBCONTRACTOR agrees that if a determination is made after this Interlocal Agreement has terminated that any equipment or constructed facilities acquired with funds provided as a result of this Interlocal Agreement is no longer needed for support of the programs or projects referred to in Subsection (g) of this Section, TNRCC has a right to require the transfer of any equipment or movable constructed facilities having a fair market, per-unit value of more than five thousand dollars ($5,000) to a third party named by TNRCC. (m). The SUBCONTRACTOR shall not grant or allow a third party a security interest in any original or replacement materials, equipment, or facilities purchased or constructed with funds made available to the SUBCONTRACTOR under this Interlocal Agreement. (n). The SUBCONTRACTOR agrees that, in the event any funds provided under this Interlocal Agreement are in turn awarded to any subgrantee for the purchase or acquisition of any equipment or constructed facilities, by such other party, the SUECONTRACTOR'S Interlocal Agreement with that subgranlee shall include the requirements set forth in Subsections (d) - (n) of this Section. i I Article 12 Construction { • j~ O • Appropriate construction costs are authorized as identified in the Work Scope (Attachment B) and Budget (Attachment C). Expenses budgeted under this category should be for costs related to the enhancement or building of permanent facilities. For example, facility design, site preparation and facility construction, including stabs, paving, awning, attendant shelters and sanitation facilities, fencing and lighting, and containment berms: and platform truck scales and electronic data-recording equipment. The SUBCONTRACTOR is expected to conform to the North Central Texas Councif of Governments - City of Denton Landfill Drop-Ott Site Page 14 t MIMI • i • i appropriate bidding process according to the SUBCONTRACTOR'S own internal policies and procedures. Appropriate costs that may be included are: A. The costs of planning the project B. The cost of materials and labor connected to the construction project C. The cost of equipment attached to the permanent structure; and D. Any subcontracts, including contracts for services, performed as part of the construction, i.e. Landfill scale installation expenses. Article 13 Other Expenses Other expenses, not falling under the main expense categories, are allowed as identified in the Budget (Attachment C). The restrictions set forth in the Uniform Grant and Contract Management Standards apply. All expenses budgeted under this 'Other' category should be itemized by the project funds recipient when requesting reimbursement. Some expenses that may be appropriate include: A. Postage/delivery G. Training B. Telephone/FAX H. Office Space C. Utilities 1. Basic Office Furnishings 0. Printi4Reproduction J. Legal costs for est. Interlocal Agreement E. Advertising/Public notices K. Vehicle Maintenance F. Signage L. Any others ~ I { I F e ~ A ~ a • North Central Texas Council of Governments • City of Denton Landfill DroW Situ P"s Is ATTACHMENT B M1 rk Program and Schedule of Deliverables of SUBCONTRACTOR f 1. April 15, 1997 - receive City Council approval of inter-local agreement. 2. April 16, 1997 - in consultation with the City's Purchasing Department, develop and issue container bid specifications including required newspaper advertising. As construction of the facility's interior progresses, begin construction of the facility's outside public access horseshoe shaped roadway. 3. April 21, 1997 - using landfill personnel and equipment, begin construction of the interior bay area. Begin delivery of utility poles from the City's pole yard to the facility site and plan for location of instructional and information signage. 4. May 21, 1997 - hold bid opening at Purchasing Department and select bidder. Prepare City Council agenda item requesting Council approval of bid selection and authorization to issue the purchase order for containers, 5. June 10, 1997 - request Council approval of bid selection and authorization to issue the container, asphalt, and gravel purchase orders. 6. June 11, 1997 - issue purchase order for containers, asphalt, and gravel and for facility site si gnage. 7. July 7, 1997 - take delivery of containers and gravel. Begin final phase of site construction to include asphalting of load ingloff-loading interior of facility and graveling of public access roadway. Commence facility advertising campaign in Denton and area newspapers, on cable channels, and with issuance of letters to regular landfill customers. Begin distribution of flyers to all landfill customers from landfill scale house. 8. July 21, 1997 - finish site construction and place containers in bays and erect signage. ~ I 9. July 28, 1997 - open site to the public. Tape facility in operation for use in preparing a cable " channel ad. North Central Texas Council of Governments - City of Denton Landfill Drop-ON Site paps i s r` 4 "111 1111 k Propcr Ap;Icemn form Iooro~ed by RCC n Jane 13. 1996 Meetng FOR NORTH CENTRAL TEXAS COUNCIL Of GOVERNMENT` ATDC-97-01 LOG IDENTIFICATION The North Central Taxes Council of Governments In Cooperation with the Texas Natural Resource Conservation Commission SOLID WASTE GRANT FUNDING PROJECT APPLICATION FORM - FY97 CYCLE GENERAL PROJECT INFORMATION Name of Local Applicant: City of Denton Title of Project: Landfill Drop off Site _ Total amount of grant project cash funds requested: 151355 Matching funds, if any: F1055Q Total cost of project (sum of above 2 lines): $68,911 I Local Contact for Project: Joe lalenti Tel N 617.566&8467 Fax 0 811.3831334 PROJECT PROPOSAL: Sections 1.5 i. Priority Project Category (3.10 ptsk Check the priority project category which best matches the scope and objective of your proposal lchecA only one) j Minmuing Apartment and Commercial Trash 110 points) 0 Minimizing Household Trash (7 points), or Expanding Recycling Markets 17 points) ,-r Stopping Illegal Dumping (6 points) X Assuring Treatment and Disrosal ^.ipacity {3 points) _ 0 0 , ! i Is9s ` i1c"ji datkorcyC015969p NCTCOG 17 iNVIRONMENTALRESOURCESI • • Pi,ect acplrarion Fran :rorc ec or PC[ ar .we 17 1996 6feeing 2. Prolect Merit and Need 040 Points, Please ~mn ^e mui scarce Sr ms secuon to no mc,e than : ;ages 'd,NV.M 1C4* S IF 5 1 Cfeariv descr~be the proposed pruiect and justify is ^eri a krm cerssfent vah tie of~arity ^aregorr strategies and recommereavoas in the Regional Pratt. Specify new ins :rr,er, 'a:gets 4`d -iarmzes .vaste stream d,versdn in the project a.ea or stops dlega+ dumping 015 li The City of Denton proposes to establish a large, multi maienal public recycling drop off facility at as landfill on a one acre site that will eventually approximate in size and scope the Dry Gulch drop-off facility off of Harry Hines Blvd. in Dallas. As the fist Vill in such an undertaking, the City will construct ten bays to hold a 40 yard open lop container each to accept variously aluminium, steelitin, clear, brown, and green glass, and newspaper. Scrap metal such as guttering and piping will also be accepted. In addition, the City will construct a fenced and gated area adjacent to the drop If site to accept used appliances. To facilitate and maximize the site's public accessibility and safety and to enhance future expandablility, the facility will be positioned along the landfill's main access road near its entrance. The site iri win be constructed in a horseshoe shape resembling a stair step pyramid laid in its side (see attached dluslrationl. Each of the site's ten bays wig be 24 feet long, 10 feet wide, and 8.5 feet high and wig be large enough to hold a 40 yard open top contamer. Each bay will be on the inside of the pyramid and will be constructed of stacked and braced wooden utility poles obtained from the City's Electric Department. The use of these poles has already been proven adequate to meet the site's design requirements and will minimize construction and maintenance costs. The floor of each bay wig be Flush with the level of the surrounding asphalted ground to permit the unobstructed loading and unloading of the open top containers by collection trucks when the fug containers are to be transported to market. The large area on the inside of the pyramid wig provide sufficient room far the maneuvering of collection vehcles and the surface of this area will be improved with asphah to permit the all weather access of recycling vehicles. The outside area of the pyramid wig actually be kn the shape of a large horseshoe roadway around the outside of the container bays. The roadway wig consist of packed earth and clay overlaid with gravel. This outside area wig be sloped upward from the landfill's access toad to permit customer cars, trucks, trailers, etc to drive up or back up to the bays. In this position, these vehicles wig be at a level about one foot above the edge of the containers and they wig be able to conveniently off lead their vehicle contents to the appropriate container below. • City also intends to construct a 50 foot square area for the deposit of used appliances rpht next to the main facility. This area will be fenced and gated and its surfaced graveled. The public will be invt?d to drop off their used appliances in this area. The City will contract with a local appliance recycler to cr ;t these appliances and recycle them. In 1997, the City will begs the landfill's 200 acre expansion. TIMe site that the City has chosen for the proposed drop off facility will be located in the expansion area adjacent m the City's centralize:11 corposting, grinding, and baring • facility. Normally, the landfill is open to the public Monday through Friday from 7Z A.M. to 4:00 P.M. and on O O Saturdays from 7:00 A.M. to 3:00 P.M. Although it win be within the expanded lardfifrs fenced area in order to provide after hours security, the drop-off site win be open to the pubic during these normal operating hours. Over the past several years, Denton's landfill has experienced tremendous growth in its lipping tannage. Just since 1991, disposal tonnages have increased from full over 72,000 tons to an estimated 90,000 tons 125%1 In 1996 I t i:lcmty_datlrecycVi 6969p ~a f L... ell s • 0 '•aroot aoo4oahan Form =ape,ea ,i ;xe '7 '996 Meermq rrhde tonnage is empecled it exceed 130 ON tons 441,1 -v ~e rear :000 Part or this increase is due to me area's burgeoning economy wnh as expanding pooulaban and emonas s 79 r,nstr-jc:ron and redevelopment. However, at the same !:me. the north Texas a+ea is erperrencmg a sgnd cant cec ,re in the rumoer of public !andblls,. 3s a consequence, an increasing nuroer of dsoosers are either r_ ;ea !a use me Denton landfill e' are using it as their landfill of preference. Because this trend s 7weiv ro cont nue r*, !^e "ex! ;ecau aea taiga 'he C to A if begin is 200 acre expansion of the landfill in !991 vrth an expected 'de :i 1? sears Of course, as the City s Softd Waste Master Plan states, the primary lactor that will affect the life of the City's expanded landfill and conserve fandfill space will be Denton's recycling diversion rate which is projected in the Plan to reach 25 percent by the year 2000. Because the Plan estimates that as much as 75 per cent of the landfill's waste stream is recyclable, the City believes that it can successfully meet its diversion goals by implementing a wide range of recycling activities including the type of public drop facility site proposed above. Given the current and projected economics of landfilling plus the fact that Denton recognizes its responsibility to contribute to the north Texas area's fandfilfing needs, the City's Plan anticipates regionalization at the expanded landfill by the end of the decade of not sooner. Consequently, this program suppotts the fotlovii Regional Solid Waste Mana ement Plan for North Texas Action Recommendations: Recommendation 19 supports the region's policy for continuing to be self sufficient in its own municipal solid waste f - management capacity Recommendation 110 encourages an landfill operators to operate facilities to minimize incoming waste and meet all permit I conditions to conserve and maximize existing space Recommendation 112 • supports the need for landfill facilities as a long term component of the region's solid waste management program. a. Who would be directly served or benefited? What is the affected geography ijurisdic;ions invohredl? 105 Pis). Because the site wig be located at the City's landfill, the site wig directly serve the landfill's :ash customers, r many of whom bring in recyclable waste from rural county areas, and contract customers which bring n recyclable waste from all over the north Texas region. Together these customers typically account for over 30 i per cent of an landfill disposals and since October, 1995 have accounted for over 3,400 landfill transactions. By ' providing on-site recycling containers, these customers will be able to presort their loads knowing that they win have a convenient facility in which to deposit their recyclable waste. As a consequence, customer bads intended for landfiling wig significantly decrease as win customer tipping fees. The fact that the City intends to increase ® !andfin fees by 17 per cent in 1991 will serve as an incentive for landfill users to sort their toads to divert I O recyclable$ to the new facility. The convenience of such a facility will not witrw make recycling easier for lanolin customs, but it will also improve opportunities for recycles in the srvrounding communities and the unincorporated areas of Denton County where there art few if any recyclinj facilities. In fact, the nearest drop-oll sites south of Denton are in The Colony. The proposed facility would be located within just a few miles of Denton's southern neighbor such 6cmty_datketIc~ljr6969p e • e:'. =Doicarmr Farm ~...ea a, re '996 Vol ling I Is :^e ^;Ties 01 Sri Shores 1Dfir, i,9 ;ate aal!ac iiC H Ca:'r . ?ev :.raSrt c t'!zen ireOUent1v : Watt the City a 0en10n t0 'in0 Cut Anere n Demon '.lei :3r Cnra 'lier Cia0:e r, aSte sithoogh -eSe Cities are :ecglaon'cady : osest :o Denlor. ire arCf it 'ii,.,'Carly 'ece"ies AcIii h,m aver C tes v [he cJUnly such as E E:m SargEr Highiana FJIage. PC 0e' ~'Ci E 1% 1w:'a, ;f --Curse Tuci or the -,asie from these utl', ro 'nuNC,ea Too S 'eC.C'ac a 't ~';C.^.S?: ?SLBCdiY 3CC255'e le '7 r:dn!v residents :ecause I is cca:ei at tie LOv Dsuah ,CUnoa-,. The facility will also serve as an addibcn to Centon s current six multi maser al drop off silts. In a recent recycling survey of the Carton community , 51.8 per cent of respondents who do not rer r't' Mated :hat the primary reason they do nor recycle is because of the inconvenient location of recycling sitil -ecause this site would be the only one located on the cast side of Denton, it woulu make recycling appreciably more convenient and accessible for several thousand Denton residents who would recycle if a site were located close by. b. Partnerships 145 Plsl: indicate of the applicant has part,c paled in local solid waste management planning activities, demonstrating a commitment to solid waste management goals, alone or in cooperation with other communities. Describe it the project is muUrjurisdlctional, cooperalive, or regional in nature and who the primary applicant and partners are. Describe whether the protect promotes pubfic!private cooperation lif applicable). E The Denton City Council and the City's Public Utilities Board have long recognized the reed for community supported solid waste management programs. Through Council and Board directed actions in 1992, the Solid Waste Master Plan Advisee; Cc „ ilree was f rrmed film among Denton citizens and in March, 1995 issued its Solid Waste Master Plan. The Plan identifies several solid waste management activities to be conducted over the next 20 years and its recommended management scenario anticipates the regionalization of the expanded landfill by the end of the decade. It is this recommenNior. that currently forms the basis for the COY 'S said waste management activities and proposed expenditures. MI eit motifs of the Plan are supportive of the Slate's preferred management hierarchies as established by the Texas Solid Waste C::oosal Act and of the Regional Solid Waste Management Plan for North Central Texas. Although this project wig start off modestly by comparison with the similar Dry Gul.h public recycling drop-off facility in Dallas an which a is modeled, the City expects the facility's scope to eventually approximate that of Dry Gulch. Right from its opening, the site will be available to residents, businesses, and landfill customers from \ all over the north Texas region. The City intends to aggressively promote the facility's availability and use among its landfill customers as well as those of surrounding communities and Denton residents. The landfil is already the landfill of choice for many north Texas customers as far away as Jacksboro, Gainesville, and Carronton. As • the attrition of landfills in the region continues, this facility win be uniquely positioned to divert s'ryndicant recyclable tonnages from landfilling. Since 1988 when the City of Denton constructed its fast public drop off recycling site, Denton has worked successfully to promote its cooperation with recycling emerprises. Both this application and the City's upcoming recycling request for proposals which win be issued in the nest few months will continue that promotion. To provide market transportation and commodity processing of the recyclables conecred at the landfill drop-off site, ® the City win recruit the services of a recycling company. The City will also use the marketing expertise of this e e company to promote the facility and to expand it to accept additional recyclable:. J Attached are letters from Pioneer Paper, BFI, and Fulton Recycling and Supply in support of Denton's proposal. An of these recycling companies recognize the potential which this facility has to impact the regions diversion rate and to provide a unique recycling opportunity for north Texans as wen as recycling promotion. I i:1 cTRty_datlrecycliIi6969p 20 r Niece AoOi¢ation Form -oprawea hr ACC at ure U. '995 Meelmg I c. Needs 012 Pisl' t If this is a startup or pilot project Where ao such ~f)gram e+sls ^cw Goes it cons fit live local government ' - 0f region? Or, 4 fit; if thj5's an enhancement of an eusl,ng pfogram. g!i e 3 brie' :esur atipn :f our 5xjVhnq program ano dicale j now the proposed proiett will Significantly mofove the progr3m? Strictly speaking, perhaps this protect cannot be considered to be exactly a startup or pilot project because its design and intended use is similar to the City's sit multi-mateflal drop off existing sites whO typically accept aluminum, sleek glass. and newspaper while several of these saes also accept used oil and liltefs and cardboard.. However, the current and projected scope of this project as well as its location makes it substantial; different from the Cites other drop-off sites. As stated above, the sue and scope al this facility will eventually approximate that of the Dry Gulch facility in Dallas. Although the site will start off accepting customary recyclables such is aluminum, sleet, and glass, within the first year, it wig also begin accepting scrap metals, plastic, office paper, cardboard, used oil and fillers, and newspaper. Eventually, the City hopes to expand the site to accept clothing and household goods. Along with that expansion, the City will establishing relatiori with not for profit organizations in Denton to work at the site and funnel useable items to those organizations lot charitable use. The City also intends to link this project with its unique Cable Swap Program which is carried on the City's local government cable Channel The Swap Program slows cil'aens to exchange with oath other all types of used goods with the purpose of keeping them out of the landfill. During the coming year, the Swap Program will be expandod to include the exchange of comae ial goods. The proposed drop-off site will serve also a depository for these goods, d. Past Funding Has the (primary} applicant applied but not received solid waste fee funds through the NCTCOG in the FY96 cycle, in any of the priority project categories? 13 Pis if applicant has not received funds, 0 Pis 'd funded). Yes, The City of Denton Solid Waste Department submitted ten grant applications during the first round of applications in 1996. None of these applications ranked high enough to be funded. is kmf y_tkllretyciji68s9p 21 • • "ai ci a•DpIK i000 Finn ~w'even :r:C ~t rjne 13, I?96 ifeetnq Are rra,'cr tasks ider(4,ed and described n'Ogical, .nrers!aic3, a ^arre' '-cnlev no The orolect oblechvesl 0 10 li 3. Are measurable outputs identified? C 5 cls~ ,.ring '997. the C rv s anof.il Nut dispose ar aver Par's r .vas:; i+ whim cash and comtracl customers will ;enerate stout 27 000 lens. T`3 CGTV :eiives :hat :e• :ent if aver a 000 lips of tma amount will be ,ecvcled. in adddmo. the City beiieves that Denton and county 'es dents 3s wall as Ihuse of surrounding cgies will generate another 2,000 tons annually, As a result, this site Dv tseif 40 generate over 10.000 lens of recyclables, an amount that will exceed the recycling tonnage generated by ad of the Gays current saes and its weekly yardwaste collections as estimated for 1996, b. Is there a clearly defiled timetable? 0-5 ptsl. Assuming that grant contracts would be available from the NCTCOG's in mid October, 1996, the City of Denton would proceed with the following grant implementation timetable: 1. November 18, 1996 - advise the C ly Council and Public Utilities Board of contract status and request approval to proceed with grant impementation including construction of facility and container purchase. 2. December 2, 1996 • us,ng lar i8 personnel and equipment, begin construction of the interior bay area, Be;n delivery of utility poles from the City's pole yard to the facility site and plan for location of instructional and information signage. 1 January 2, 1997 in consultation with the City's Purchasing Department, develop and issue container bid specifications including required newspaper advertising. As construction of the faciRty's interior progresses, begin construction of the facility's outside public access horseshoe shaped roadway. 4. January 23, 1997 - hold bid opening at Purchasing Department and select bidder, Prepare City Council agenda item requesting Council approval of bid selection and authorization to issue the purchase order for containers, asphalt, and gravel. 5. February 18, 1997 - request Council approval of bid selection and authorization to issue the container, asphalt, and gravel purchase orders. • 6. February 19, 1997 - issue purchase order for containers, asphalt, and gravel and lot facility site signage. 7. March 10, 1997 - take delivery of containers and gravel. Begin linal phase of site construction to include asphahing of loadingloff-loading interior of facility and graveling of public access roadway. Commence facility advertising campaign in Denton and area newspapers, on cable channels, and with issuance of letters to regular landfill customers. Begin distribution of flyers to all landfill customers from landfill scale house. • • • 8. March 28, 1991 - finish site construction artd place containers in bays and erect signage. 9. April 7, 1997 • open site to the public. Tape facility in operation for use in preparing a cable channel ad, is Vcrnty_dsIOrcyclji6969p 22 _7 7 led • r -ceu sac5ciii Form po .vex c. CC a .uric 'J '496 Maury Ectra points for Inn7vaton, creatlVHv ccovefat a aooroaCn ariacr 3 %e!l %riTlen program C 0151. Although at first glance the proposed drop-off fa[imi may appear tote like any other drop off facility, it Ml, in fact. be quite unique. 'Sh!le mast drop atf facilities are e,., veiv small, mis'acility huf occupy nose to an acre. Initially .he site wit accept the usual and custamarv topes or'eCVC-aoles sucn 3s a uminum steel, and glass. However, before the end of its first Year of operation. the City will aid significantly to the types of iecyclables collected at the site such as household and commercial goods. This site wd1 not simply be a transfer station for recyciabfes, but a repository for reusable household and other goods that suit have a useful life and would otherwise end up in the landfill. As stated previously in this application, the City will pursue opportunities to make these recyclable goods available to not for profit organizations in Denton and its surrounding communities. Because much of what is collected at the site wiA be traditional recyclable commodities such as aluminum and i steel, they wiA require transport to market and processing. As the attached letters of support from recycling companies state, these companies wrP provide the City with such recycling seryces. Overall, the Cityenvisions this project as a springboard to a facility the scopeof which wig significantly exceed that of most recycling drop-off facilities. Assuch, it will not only haves significant impact on lheregion's diversion rata, but it wig also significantly impact the public's perception of recycling. The facility's high profile in the community should be an important recycling educational tool and wig undoubtedly spur recycling activity. 1 i i • r tl I ~ { I *mty_6atlncycW6969p 23 • • "CitCi 30611CHi0il FCM ca a,±a aCC rl hurl 13 1996111/ Dent f r 9;311 of".ef ent4es'eS:Cnr C e p nlerlar ng -e:11 e:' o ei'n :et;:"be'niir ?ptrotrlale etperieri 10 3 .h2 :es gn .C79 aJC;Ce. i:.: %e'3'.; 1 e '3:.r:~ i4e --a'i iCe' '^E Ce'/AG+1 CI Ine Cit y S R2Cy Cling Joe lalentl became tie City S trr S1 CoCranalor in April, 1995. Joe ^aS crer c0 YeaiS of munieip31 management experience including a years of Utility Department experience with the City of Denton. Prerous to becoming the City's Recycling Coordinator, Joe served as the City's Solid Waste Cepaflment Administrative Assistant handling all aspects of Solid Waste management including administration of the City's recycling effort. David bugger has served as the Landfill's supers sor since 1992 and has been responsible for the on-site supervision of the City's yardwaste grinding operation and its appliance recycling storage area. David holds both B and C State solid waste certifications and is also certified by the State as a waste materials control inspector. If the proposed project could become an ongoing service, describe how the project may be sustained beyond the grant period 102 paintsl. The City has every intention of maintaining this facility at its permanent premier recycling drop-off site. The City will maintain the site and be responsible for its timely expansion in the same way that all of the City's drop-off sites are supported by the City with solid waste revenues and recycling commodity revenues, As such, aR proposed expenditures associated with the site wig be incorporated into the Solid Waste Department's annual operating budget and the site's expansion will be incorporated into the Department's Capital Improvement Plan. Indicate if the applicant or a partner in a group of applicants is a Clean Texas 2000 local government a certified Keep America Beautful city, andlor a Proud Community in Keep Texas Beautiful, thus demonstrating a commitment to environmental programs in the community; andlor if the applicant has a Local Solid Waste Management Plan, developed and allotted according to the State's Subchapter 0 gu4ebnes iD-5 Paints). In April, 1996, the City of Denton was designated as a Clean lexas 2000 city. In May, 1990, the City was also designated as a Keep America Beautiful city and in 1993 was designated as a Proud Community, • a. If applicant is providing cash matching funds (not in kind services) to indicate special commitment, please indicate this. The contribution is taken into consideration by the RCC 10.5 Pis for cash match equal to or greater than project, assigned at discretion of reviewer). Please provide more details in the Project Budget section, Detailed r Budget Sheet B. The City is providing cash match funds of $10, 556 in the form of labor and heavy equipment rental to construct the project l ility. I I i:lanty_dalVecyOi6969p 24 • i f CITY OF DENTON LANDFILL RECYCLING DROP-OFF FACILITY ROLL-OFF CONTAINER SERVICING AREA ' i (gravel) OPEN TOP CONTAINERS er PUBLIC ACCESS PUBLIC ACCESS (gravel) (gravel) LANDFILL ROAD COMPOSTING FACILITY 0 . • ~ ~ a o 1.04 i 25 I~ • • ATTACHMENT C SUBCONTRACTOR Budget & Detailed Cost Sheets f' f I • • 0 I North Central Texas Council of Govemments • City of Denton Landfill Drop-OH Site Page 26 j • NWo Acckawn Farm .op,oeea ae FCC n Jre 17. 1996 Mmtmg +1 5. PROJECT BUDGET 1010 points'. o'east ill out IN form n 1h IN :oss mea«aarm ennnales of your woposed aroitct 4 this k4w EI has am costs denhf ed n lines 9 chase wacn a Waled %dges snelt 'ar aa:'. I,c-Kaot re ':em. o1*M'i1e ortMl pie allached rams for lt4 detaded ~W es ❑pwaUonf :o m v!icn 1 7e'au ,Lee: mess 1ne,e s s c;r :Pm. ''e srvt s Aasea m worn Nleness led cmt etfecnveness of the promea e~oenses BUDGET CATEGORY AMOUNT 1. Petsonnel4atarles S 0 2. Fringe benefits $ 0 3. Travel S 0 1 4. Supplies S 0 5. Equipment $ 34,248 6. Construction S 18,101 1. Contractual (other than for construction) S Jtf1Qf1 B. Othur $-#000 Total thin) chirps (sum of 1 BI S 54,355 8. Indirect charges' S O Iota/ pro/do londr'ng roquasted Isom of 1.9) S 54,355 =cjj* Funds (optional): S1 '556 ntnDutpn is awarded points under Section s provid ed here 4 sokly for trudge! not r:eyh kto the score for this item. Ji What is the TOTAL COST of the proposed project, considering the total project funding requested and the matching cash funds being provided by the applicant. 5 66,911 1 r i I:kmtY_6e~lrecycylEt989p 27 - • Jrtachment ro Project Budget occrareo cv SCC at June +'s INS meelinq DETAILED BUDGET SHEET 4: Project Funda.d Equipment This budget sheet should be comP4!eo f any ercenses are entereq `nr ::u at*en L re i%r P-o~eci Budget Summary; otheryise omit. $34:;8 Equipment includes all non construction related, tangible property ^aving a unrh:ost of $1.000 n! more with an estimated useful lice of over one year. In the space below, please describe the types of equipment ro,u ntend to purchase with project funding, providing spec ficat ons if possible at This tine. Ind cafe how ynu obtained an estimate of the cost (vendor bid, estimate, 103rature review, industry or market pricesl. II you intend to use the Slate coopefative purchasing list as a potential source, please indicate so. j The project wpl require the purchase of the following equipment: !!i 12 - 40 yard open top containers Length: 23 ft. Front and sides: 11 gauge sheet metal Height: 93 inches Bottom: 3116 inch tensile plate Width: 96 inches Wheels: 6 inch by 9 inch sand pads an front 8 inch by 12 inch rokr; on rear Cable hook: 1(4114 inch plate steel Cost per container. $2,854 This estimate was obtained during July, 1996 directly from the City's preferred vendor. Two of the 12 requested containers will be used as swap out containers when containers are beirg emptied. II~ • '1 2B I` a; 7 A r • lnechrem fa Project eudget .aaro~eo by ACC at ;,ne q tags meeting 1 DETAILED BUDGET SHEET 5: Project Funded Construction Ths budget sheer should to :ome'eied I arv excerses are erf,ereo ::rstr,,cren ;n ire 9 if our Protect Budget Summary otherwise omit, 1 107 Construction costs n6ude fauuty oesgn, site creparatce, and iaci sv tcnstracnon. Construction :as!s may include work provided ether by the project funds recipient or :erough subccnnacts for oussde services, All applicable lows end rego/o6ons for bidding and contracting for services muss be /ollowed In the space below, please describe the construction expenses associated with the proposed project, providing as many specifications as possible at this lime (please identify any services to be subcontracted): This project calls for the subcontracted construction of a fence area for the deposit of used appliances: 200 feet of 3 it. cyclone steel fencing with double wide gate. Cost estimate: $800 This project calls for the subcontracted asphalting of the interior portion of the proposed facility: 5,625 sq. feet of asphalt paying with stabdued cement base Cost estimate: $8,807 This project tags for the graveling of the facility's public access roadway: 1,000 yards of sire gravel Cost estimate: $8,500 • 1 , f 29 j 1: AsrAca"KA • r 3narnaiMt to Pra,ect Budget xDora vea av 9CC xs 1une 17 1996 meeting DETAILED BUDGET SHEET 7; Project Funded Other Expenses This oudget sheet should be cornoeteo if anv eaoenses are entereo un;er ';trer an cane 3 of your Protect Budget Summary, otnervrse omit. 'Other' expenses are those for Terns if services :.ncn do ne: readily fit into any of the other budget ca:egor es in to s aoplicaron, if rou hill have ac.:horal ';thee licenses net already listed bl please list those expenses at the oottam of this sheet. If any sy r.e exoenses isted below are included :n the calculation of vour rate for rd rest charges. do nor list Imam on 1h is sneer. Possageidelivery TelephonerFAK Utilities Printingheproduction Advertisingfpublic notices 2.000 Signage Training Office space Basic office lurnishings (deslis, chairs, filing cabinets) Please identify "AdJcional other" expenses below: TOTAL 'other expenses, which should equal the amount S2,000 entered on line e 9 of your budget summary. O • 30 i '4 • 1 • Y North Central Texas Council of Governments Solid Waste lnterlocal Agreement Attachment D: General Provisions Article 1 Leoal Authority The SUBCONTRACTOR warrants and assures NCTCOG that it possesses adequate legal authority to enter into this Agreement. The SUBCONTRACTOR'S governing body where applicable has authorized the signatory official(s) to enter into this Agreement and bind the SUBCONTRACTOR to the terms of this Agreement and any subsequent amendments hereto. The SUBCONTRACTOR agrees to adhere to the provisions of section 330.569 of the TNRCC Municipal Solid Waste Regulations, the Uniform Grant & Contract Management Standards (UGCMS) and the contract between the TNRCC & NCTCOG. Article 2 Scope of Services The services to be performed by the SUBCONTRACTOR are herewith outlined in the General Provisions and Change Orders which are hereby incorporated into and made a part of this Agreement as if set out word-for-word herein. Article 3 Purpose (a). The purpose of this Interlocal Agreement (Agreement) is to accomplish the goals of House Bill 3072, 74th Texas Legislature (19950, as they relate to distributing solid waste fee revenue funds to support local and regional solid waste projects consistent with the regional solid waste p management plans approved by the TNRCC and to update and maintain those plans. (b). Under the overall goals of the funding program established under House Bill 3072, the l more specific purposes of this Agreement are: 1. To enable the NCTCOG to carry out or conduct various municipal solid waste management-related services and support activities within the NCTCOG's regional jurisdiction; and 2. To administer an efficient and effective, region-wide, pass-through (subgrantee) assistance grants program and/or, where authorized by the NCTCOG in accordance with Article 4 of this Attachment, to conduct various NCTCOG - :managed projects. I • Article 4 Types of Solid Waste tmulementation Projects & Applicants (a). Only those loca and regional political subdivisions located within the State of Texas as fisted below are eligible o receive funding from the NCTCOG as a pass-through grant: 1. Cities; • 2. Counties; O 0 3. Public schools and school districts (does not include Universil es or post secondary educational institutions); and 4. Other general and special faw districts created in accordance with state law, and with the authority and responsibility for water quality protection or municipal solid J waste management, to include river authorities. (b). Local and regional political subdivisions that are subject to the payment of state solid waste disposal fees and whose fee payments are in arrears, as determined by the FUNDING North Central Texas Council of Governments • City of Denton Landfill Drop-Off Site pap 1 i I, rrrY~IW W Ww~r.ul..u. n • • AGENCY, are not eligible to receive pass-through grant funding from the NCTCOG. The FUNDING AGENCY (Texas Natural Resource Conservation Commission) shall provide, on a quarterly basis, the NCTCOG a list of entitles for which fee payments are in arrears. The NCTCOG shall allow a potential pass-through grant applicant that is listed as being in arrears in its fee payments the opportunity to provide documentation of payment of the fees owed the state. If the potential applicant provides the NCTCOG with documentation c' payment of the fees, such as a canceled check or receipt from the state, the NCTCOG may consider that applicant to be eligible to receive pass-through grant funding under this agreement. The NCTCOG shall notify the FUNDING AGENCY of any applicants for which a determination of eligibility was made under this subsection. Article 5 Examination of Records (a). SUBCONTRACTOR shall maintain during the course of the work, complete and accurate records of all SUBCONTRACTOR'S costs and documentation of items which are chargeable to NCTCOG under this Agreement, NCTCOG shall have the right at any reasonable time to inspect, copy and audit those records on or oft the premises by authorized representatives of its own or any public accounting firm selec!ed by it. Failure to provide access to records may be cause for termination of the contract. The records to be thus maintained and retained by SUBCONTRACTOR shall include (without limitation); f. personnel and payroll records, including social security numbers and labor classifications, accounting for total time distribution of SUBCONTRACTOR'S employees working full or part time on the work, as well as canceled payroll checks or signed receipts for payroll payments in cash; 2. Invoices for purchases, receiving and issuing documents, and all other unit inventory records for SUBCONTRACTOR'S stocks or capital items; and 3. paid invoices and canceled checks for materials purchased and for subconlractee's and any other third parties' charges. The SUBCONTRACTOR further agrees to include in all its subcontracts pursuant to Article 11 hereof, a provision to the effect that the subcontraclee agrees that NCTCOG and its duly authorized rbpresentatives, shall, until the expiration of three (3) years after final payment under the subcontract or until all audit findings have been resolved, have access to and the right to examine and copy any directly pertinent books, documents, papers, invoices and records to such subcontractor involving transactions relating to the subcontract. • Article 6 Insurance and Liability SUBCONTRACTOR is a selfinsured municipal coorporafion. SUBCONTRACTOR understands and agrees that it shall be liable to repay and shall repay upon demand to NCTCOG to the { - ^ ezten , by applicable law, any amounts determined by NCTCOG, its independent auditors, or any agency of state government, to have been paid to the SUBCONTRACTOR in violation of the terms of this Agreement. • • 8 J Article 7 Audits & Accounting Systems (a). Current Independent Audits 1. If NCTCOG's maximum cbligation amount under this Agreement is $25,000 or more, the SUBCONTRACTOR is required to have an audit performed for each of the SUBCONTRACTOR'S fiscal years during which the Agreement is in effect, and which f North Central Texas Council of Governments • City of Denton Landfill Drop-Off Site page 32 r • • covers the entire operation of NCTCOG. Any such audit shall be performed by an `independent' auditor as defined in federal Office of Management and Budget (OMB) Circular A•128. 2. Each audit report required in Subsection (a) (1) of this Article shall be forwarded to NCTCOG authorized Project Representative as identified in Attachment A, Article 9. Exhibit A•1. Each audit report shall be delivered to NCTCOG designated Project Representative within thirty (301 days following completion of the audit report, or within one year following the audit period (SUBCONTRACTOR'S fiscal year), whichever comes first. 3. The minimum requirements for an audit Yrill vary, depending upon the SUBCONTRACTOR'S organize lion typa and the amount of NCTCOG'S maximum obligation amount under this Agi cement. (i) For cities, counties, councils of government, or other political subdivisions of the State (but not school districts or ;nsLtutions of higher learning) that enter into this j Agreement, for which NCTCOG'S maximum obligation amount is $25,000 or greater, audits shall meet the regareatents of federal office of Management and Budget (OMB) Circular A•128 "Audits of State and Local Governments", which is currently effective. (ii) An independent audit is not required for this tnterlocal Agreement if NCTCOG'S maximum obligation amount is less than $25,000. (b). Accounting Systems The SUBCONTRACTOR shall have an accounting system which accounts for costs In accordance with generally accepted accounting standards or principles. NCTCOG must propose and account for costs in a manner consistent with such standards or principles. Article 8 Amendments to Inleriocal Agreement Any alterations, additions, or delotions to the terms of this contract which are required by changes in Federal Law or Regulations are automatically incorporated into this Agreement without written amendment hereto, and shall become effective on the date designated by such law or regulation, provided if the SUBCONTRACTOR may not legally comply with such change, SUBCONTRACTOR may terminate its participation herein as authorized by Article 9. • NCTCOG may, from time to time, reasonably request changes in the Scope of the Services of the SUBCONTRACTOR to be performed hereunder. Such changes that are mutually agreed upon by and between NCTCOG and the SUBCONTRACTOR in writing shall be incorporated into this Agreement. Article 9 Termination of Intertocal Agreement 40 (a). This Interlocal Agreement shall terminate upcn full performance of all requirements contained herein, unless this Agreement is amended in writing to provide otherwise. (b). This agreement may be terminated in whole or in part in writing by either contracting party in the event of substantial failure by the other party to fulfill its obligation under this In!edocal Agreement through no fault of the terminating party, provided that no such termination may bA effected unless the other parry is given: North Central Texe, Council of Governments • City of Denton Landfill Drop-Off Site Page 33 r+ r i • r • 1. Not toss than thirty (30) days written notice (delivered by certified mail or return receipt requested) of intent to terminate with the specific reason as to why the parry chooses to terminate this Agreement; and 2, An opportunity for consultation with the terminating party prior to termination, (c). This Interlocal Agreement may be terminated in whole or in part in writing by NCTCOG for its convenience, rovided that the SUBCONTRACTOR is given not less than thirty (30) days written notice (delivered by certified mail, return receipt requested) of intent to terminate. Circumstances in which NCTCOG may terminate for convenience include, out are not limited to, the Texas Leg'islature's withdrawal of appropriations for this project. (d). If termination for default under Section (b) of this Article, or for reduction or loss of Legislative appropriations under Section (c) of this Article is effected by NCTCOG, an adjustment in the Interlocal Agreement amount shall be made, but: 1. No amount shall be allowed for anticipated profit on unperformed services, tasks or other work; and 2. Any payment due the SUBCONTRACTOR at the time of termination may be adjusted to the extent of any reasonable additionat costs incurred by NCTCOG caused solely by the SUBCONTRACTOR'S default or malfeasance. However, the adjustment for a termination shall provide for payment to the SUBCONTRACTOR for services rendered and expenses incurred by the SUBCONTRACTOR relating to contracts entered into prior to the termination, in addition to termination settlement costs reasonably incurred by the SUBCONTRACTOR relating to contracts relating to this project, entered into prior to the termination. (e). Upon receipt of a termination notice pursuant to Sections (b) or (c) above the SUBCONTRACTOR shall: 1. Promptly discontinue all services affected (unless the notice directs otherwise); and 2. Deliver to or otherwise make available to NCTCOG upon NCTCOG's written request, all data, drawings, specifications, reports, estimates, summaries, and such other information, materials, and equipment as may have been acwumulated by the • SUBCONTRACTOR in performing this Inlerlocal Agreement, whether completed or in progress. (f). If, after termination initiated by NCTCOG for failure of the SUBCONTRACTOR to fulfill its contractual obligations, it is determined that the SUBCONTRACTOR had not so failed, an adjustment of the Intedocal Agreement amount shall be promptly made as provided in Section (d) of this Article. ® • • J (g) It any delay or failure of performance is attributed to force majeure as defined in Article 17 of Attachment D, the SUBCONTRACTOR may in its sole discretion terminate this Interlocal Agreement in whole or in par}upon thirty (30) days written notice to NCTCOG. NCTCOG shall give the SUBCONTRACTOR not less than thirty (30) days written notice (delivered by certified mail or return receipt requested) of intent to terminate and an opportunity for consultation prior to termination. It such termination is Ofea;x:, an equitable adjustment shall be made In accordance with Section (d) of this Article. North Central Texas Council of Guvemments - City of Denton Landfill Drop-Off Site Page 34 i • • Article 10 Severabili All parties agree that should any provision of this Agreement be determined to be invalid or unenforceable, such determination shall not affect any other term of this Agreement, which shall continue in full force and effect. Article 11 Copyright Clavse The state or federal awarding agency and NCTCOG reserves a royalty-free, nonexclusive, and irrevocable license to reproduce, publish or otherwise use, and to authorize others to use, for state or federal government purposes: (a) the copyright of all maps, data, reports, research or other work developed under a grant, subgrant; and (b) any rights of cupyrights to which a grantee, subgrantee or a subcontractor purchases ownership with grant support. All such data and material shall be furnished to NCTCOG upon written request. Article 12 Employment Practices The SUBCONTRACTOR agrees that in the performance of this Agreement, it will not discriminate against any employee or applicant because of race, religion, color, sex, age, or national origin. The SUBCONTRACTOR assures that no person will. on the grounds of race, creed, color, handicap, national origin, sex, political affiliation or beliefs, be excluded from, be denied the benefit of, or be subject to discririinalion under any program or bct viry funded in whole or part under this Agreement. Article 13 Oral and Written Aorrements All oral or written agreements between the parties hereto relating to the subject matter of this Interlocal Agreement which were developed, executed or entered into prior to the execution of this Interlocal Agreement, are superseded by this Agreement. Article 14 ADA Requirements O The SUBCONTRACTOR shall comply with all applicable requirements of the Americans with Disabilities Act of 1990, 42 U.S.C. 12101. 12213 (Pamph 1995). i Article 15 Disadvantaged Businesses , Subcontractor shall comply with Section 252.0215 of Chapter 252 Texas Local Government Code. e O O Article 16 Force Maieure (a), A force majeure event shall be defined to include governmental decrees or restraints, acts of God (except that rain, wind, flood or other natural phenomena normally expected for the locality shall not be construed as an act of God), work stoppages due to labor disputes or strikes, fires, explosions, epidemics, rots, war, -.bellion, and sabotage. North Central Texas Council of Governments - City of Denton Landfill Drop-Off Site Page 35 I 0 • s • (b). Subject to the conditions enumerated in this Article if a delay or failure of performance by either party results from the occurrence of a force majeure event, the delay shall be excused and the time fixed for cimpletion of the work extended by a period equivalent to the time lost because of the event if, and to the extent that: 1. the delay or failure was beyond the control of the party affected and not due to its fault or negligence, and 2. the delay or failure was not extended because of the affected party's failure to use clue diligence to overcome the obstacle or to resume performance immediately after the obstacle was overcome. (c). No time extension shall be granted under this Article unless the party seeking relief has notified the other in writing within ten (10) days of the time of commencement of the event, of the anticipated length and cause of the delay, the measures taken or to be taken to minimize the delay and the timetable by which the SUBCONTRACTOR reasonably intends to implement these measures. The party seeking relief shall also give written notice of the ending of the event to the other party within ten (10) days after the event has ended. (d). If the SUBCONTRACTOR is the party seeking !elief under this Article, the burden of proving a force majeure event has occurred remains with it, and no extension shall be granted unless the NCTCOG agrees that the occurrence constitutes a force majeure event as defined herein above, which agreement may not be unreasonably withheld, (e). The NCTCOG shall be responsible only for costs incurred by the SUBCONTRACTOR after the prior written request by the Executive Director, or his authorized representative, to incur such costs in connection with any force majeure event. Neither NCTCOG nor the SUBCONTRACTOR shall have, and both hereby waive, any claim whatever for any damages resulting from delays caused by force majeure events. I (f). N :TCOG may, in the exercise of its reasonable discretion, f. minale this Agreement in whole or in part, in accordance with the provisions of Article 9, Attachment D, it force majeure causes a delay or failure of performance by SUBCONTRACTOR. (g). In no event shall th s Article lessen or modify NCTCOG's rights as set out elsewhere in this Agreement. Article 17 Entire Interlocal Agreement i This Agreement represents the entire Interlocal Agreement between the contracting parties and supersedes any and all prior contracts or agreements between the parties, whether written or oral respecting the subject maker of this Agreement. I 0 O O North Central Texas Council of Governments - City of Denton Landfill Drop-OM Site Page 36 • Appendix 1. Bi-monthly Report Il. FinaU$pecial Report Forms Form R1 - General Form Form R1a - Waste Reduction and Recycling lll. Financial Report/Request for Reimbursement Form i J r I k I North Cei tral Texas Council of Governments - City of Denton Landfill Drop-Off Site Pape37 r • • i 1. 91-monthly Report Form i • 1 r ' i I North Central Texas Council of Governments -City of Denton Landfill Drop-ON Site pap 34 r. 0 • 81-Monthly Progress Report Reporting Period Subcontract No. !97.04-G32 1 Reporting Agency t. Prolect Status (for cublication in fact sheets and on Internet): Narrative description o/project status, progress on major tasks, key nhievemenls or impediments. etc.. i i i I A ~ .1 39 • • i 2. Identity Need SuooortAtems for NCTCOG Attention More specific descrptim of delays, issues needing resolution, items for discucsion between subcontraclor and NCTCOG, etc. 3. Attachments - List any attached PSA's, photos, voucher forms, etc. • f k \J ~ ' l j i 40 • • II. FInanoeclal Report Forms Form R! General Form Form Fla • Waste Reduction and Recycling f i I e~ J North Central Texas Cound of Gaiemments - City of Denton landfill DropOff Site Poe 41 y. e • FY 1996/1997 REGIONAL SOLID WASTE GRANT REPORT ON RESULTS OF GRANT-FUNDED PROJECT (FORM RI) 1. Grant Recipient: 2. Contract or Project No.: 3. Report No,: 4. Grant Term: From To: S. Report Period: 6. Final FY 1906/1997 Report: From To: Yes No 7. General Ouestions: Complete the general questions listed on the back of this form, where &pplicable, 8. ATTACHMENTS: Complete the applicable form(s) for the category of project conducted with grant funds. if attached. FORM Ala -WASTE REDUCTION AND RECYCLING Supplemental Waste Diversion Tracking Form _ FORM Rib -LOCAL ENFORCEMENT FORM Ric -HOUSEHOLD HAZARDOUS WASTE - Attach a copy(ies) of the completed Data Information Form required to be submitted to TNRCC for each HHW collection activity. FORM R1d -TECHNICAL STUDIES AND LOCAL SOLID WASTE MANAGEMENT PLANS FORM Rte -OTHER FROJECTS: INSTALLATION OF LANDFILL SCALES FORM Rif - OTHER PROJECTS: CITIZENS COLLECTION STATIONS _ FORM Rig -OTHER PROJECTS: RIVER AND LAKE CLEAN-UPS, AND TEXAS COUNTRY CLEAN-UPS FORM R1h -EDUCATIONAL AND TRAINING PROJECTS (use for both stand- alone educational and training projc^ls, or other projects that include an educational component) 9. CERTIFICATION: I certity to the bey of my knowledge rid belief that this report Is correct and • complete. r Signature of Authorized Certifying Official l i ` Typed or Printed Name and Title Date Submitted 42 r' • r • Results Report Page 2 10. Project Goals/Objectives: Describe the goals and objectives of the grant-funded project (should be consistent with the initial application information) 11. Effectiveness (to date) In Achieving Stated Goals And Objectives: Is the project achieving the intended goals and objectives: Yes- No: Partially: Explain below: • • • • J i 43 {I I 0 • FY 96197 REGIONAL SOLID WASTE GRANT PROJECT IMPACT)RESULTS REPORT • FORM R1a WASTE REDUCTION AND RECYCLING Grant Recipient:- Contract/Project No.: Report Period: From To Amount of Grant Funding: The project funded is a (check one) __new program or -enhancement of an existing program, f . MATERIAL DIVERSION. List below the measured or estimated tons of material reduced, recycled or diverted from disposal that maybe attributed to grant finding. (Attach a monthly diversion tracking form or other diversion tracking records, it used). Tons For Average Tons For Malenal Type Report Period Monthly FY 96/97 Diversion' to date PAPER: GLASS: METAL: PLASTIC: BRUSH, TREE TRIMMINGS, & YARD TRIMMINGS: CONSTRUCTION & DEMOLITION (C&D) DEBRIS OTHER MATERIALS NOT LISTED: (Specify) f TOTAL TONS OF MATERIALS DIVERTED Averages should be calculated only for the number of months that the project was in effect. 1 2. NUMBER OF PERSONS SERVED. Estimate the number of people in the grant-funded project service area. 3. REVENUE FROM SALE OF RECYCLABLES. Enter the dollar amount of revenue that was generated during the reporting period through the sale of recovered materials that maybe attributed to grant funding. 4. DISPOSAL COSTS AVOIDED: Use the formula (Landfill tipping fee of $ per ton X total tons of materials j diverted for the report period = S. EDUCATION AND TRAINING COMPONENTS. If education or training activities were conducted as part of the A grant funded project, attach completed Farm RIh. p O J 6. COMMENTS. Attach additional sheets if necessary for explanation or for listing benefits derived from the grant. funded project. Sh"t, Of 44 • Financial ReoorVReguest for Reimbursement Form f I • ~ o 0 North Central 7eRas Council of Governments • City of Denton Land511 Drop-Off Site Page 4S ` r' • • NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS FINANCIAL STATUS REPORT FORM 269a 1. DEPARTMENT TO WHICH REPORT IS SUBMITTED DEPARTMENT OF ENVIRONMENTAL RESOURCES 2. GRANT,CONTRACT TITLE Landfill Drop-Off Site 3. EMPLOYER IDENTIFICATION NUMBER 4. RECIPIENT'1RGANIZATION (NAME AND COMPLETE) ADDRESS. INCLUDING ZIP CODE 5. NCTCOG CONTRACT NO. 6. FINAL REPORT YES NO 7. BASIS CASH ACCRUAL 8. TOTAL PROJECT/GRANT PERIOD 9. PERIOD COVERED BY THIS REPORT FROM: TO FROM: _ TO 10 BudgetCategones Approved Project Cost Cumulative Remaining _ Budget _ This Report Fro ect Cost Balance a. Personnel/Salarics I Fringe Benefits _ c. Travel d. Supplies _ e. Equipment Attach form 2693-1 • $34,248 00 R f. Contractual Attach form 26911)' Construction Attach form 26911)* $18107.00 h. Other $2,00000 1. Total Direct $541355 00 Indirect Charges _ k. Total _ $54,355-00 0 Negative ba'ances in any of the budget categories should be explained briefly in an accompanying narrative. 11. CERTIFICATION I cerby to the best of my tmowledge and belief that this report Is coc .tit and complete and that all outlays and unliquidated obligations are for the purposes set forth in the award documents, Si nature of Authorized CertityiN Official Typed or Prinled name and Tale Telephone (Area code, number and ext } Date Submitled RFIMBUFISAS 46 7 7 • NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS ITEMIZATION OF EQUIPMENT, CONTRACTUAL AND CONSTRUCTION COSTS SUPPLEMENTAL FORM 269A•1 EQUIPMENT PURCHASES (during this report penod)* NUMBER UNIT TOTAL PURCHASED ITEM DESCRIPTION COST COST i I i TOTAL E UIPMENT EXPENDITUR (Must agree with line we on Form 269a CONTRACTUAL "PENDITURES (during this re R riod)' TOTAL VENDOR/SUBCONTRACTOR FOR COST i TOTAL CONTRACTUAL EXPENDITURES (Must agree with line 10f on Form 269a) I CONSTRUCTION EXPENDITURES (dunn this report period). TOTAL VENDORISUBCONTRACTOR FOR COST I ' • i • L O • TOTAL CONSTRUCTION EXPENUI FUSES Must a ree with line 1 of town 269a 'Attach copies of invoices, recelpt and other documentation of the oxpenditurss. Attach Additional Sheets, If Needed 47 r: • • AQends No Agenda item,-C93 CITY COUNCIL REPORT TO : Mayor and Members or the city Council FROM : R. E. Nelson, P.E., Executive Director of Utilities DATE: April 15, 1997 SUBJECT : CONSIDER APPROVAL FOR THE CREATION OF THE SPRING HILL ESTATES WATER SYSTEM. RECOMMENDATION The Public Utilities Board recommends approval of an agreement (Exhibit A) for the creation of the Spring Hill Estates Water System near the intersection of U.S.: 80 and FNI 156 in the extraterritorial jurisdiction of Denton SUN MARY Section 34-119(4)(8) of the Code of Ordinances requires that the Public Utilities Board review and recommend and the City Council approve the creation of private water systems. On November 20, 1996, the PUB recommended approval for the creation of the Spring Hill Estates Water System subject to six conditions (Exhibit B, PUB agenda item). These conditions are included in the agreement that you are being asked to approve. The Tryon Development Corporation (Tryon) has approved the agreement by resolution (Exhibit Q. The Spring Hill Estates Water Company has not yet been incorporated, so that the resolution called for in Section III, Paragraph C of Exhibit A has not been submitted per (Exhibit D). Also, the applicant is required to acquire a Certlfllaie of Convenience and Neccessity (CCN) to operate a water system. Denton is already certified for this area and would not recommend approval of dual certification in this area until this agreement is approved. Once this agreement is accepted, the Spring Hill Estates Water Company will be incorporated, and they will apply for the CNN, thereby • completing the terms of this agreement. BACKGROLND Tryon, the developer of Spring Hill Estates, is proposing to develop a private water system to serve 82 lots on property located .ast of FM 156 and south of US 380. The proposed system consists of two - 43 G.P.M. (500 feet deep) wells; a 20,000 gallon • ground storage tank; a 2,000 gallon pressure tank; 2- 252 G.P.M. booster pumps; 7,675 + O O feet of 6 inch Aateriines; 14 gate valves; and one fire hydrant. • • PROGRAM/DEPARTMENT OR CROUPS AFFECTED: Citizens of Denton, Denton Municipal Utilities, TNRCC and Tryon Development. FISCAL IMPACT Minimal. There will be some expense for inspection of the system, but it will be a small amount. Respectfully submitted; t R. E. Nelson, Executive Director of Utilities Prepared by )ilLJordan, P.E. Interim Director of Water/Wastewater Engineering and Field Services Exhibit A. Agreement B. Public Utilities Board agenda item • C. Tryon Development Corporation ResOutiou • D. Spring ]fill Estates Water Company letter n. mmr .mqr. e, u', rp e t ~ r_n • • ORDINANCE NO. AN ORDINANCE APPROVING THE CREATION OF THE SPRING HILL ESTATES WATER SYSTEM WITHIN THE CITY'S ETI IN ACCORDANCE WfTH SECTION 34.119 OF THE DENTON CITY CODE AND THE TERKIS / ND CONDITIONS OF 7 HE ATTACHED AGREEMENT; AiJTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN SPRING HILL. ESTATES WATER COMPANY, TRYON DEVELOPNIF.NT CORPORATION AND THE CITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Tryon Development Corporation Tr)on'"), is proposing to develop a private water system to serve approximately 82 lots in the Spring Hill Estates, near the intersection of U.S. 380 and F.M. 156 in the extraterritorial jurisdiction of Ih. City, as shown on the Exhibit "A" to the attached Agreement between Spring Hill Estates Water Company ("Spring Hill"), Tryon, and the City, which is made a part of this ordinance as if written word for word herein; and i WHEREAS, the City of Denton on the advice of its Public Utilities Board deems it is in the public interest to approve the creation of the Spring Hill Estates Water System inside it's ET) in accordance with the attached Agreement and Section 34-119(4) of the Denton City Code; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS J Section I The City Council approves the creation of the Spring Hill Estates Water System within the City's ETI as shown on the attached Exhibit "A" conditioned on the full performance of all the conditions set forth in Section 34.119(4) of the Denton City Code and in the attached Agreement with Spring Hill and Tryon as set forth in Exhibit "A", including, without limitation the following conditions. I Tryon and Spring Hill shall perform and fully comply with all the conditions of Section 34-119(4) of the Denton City Code and with all other applicable laws. • 2, Tryon and Spring Hill will fully comply with all the conditions of Exhibit 3. Tryon and Spring Hill shall keep the City informed of the name of their certified operator. • 4. Tryon and Spring Hill shall provide a guarantee of perpetual maintenance • 0 J of the Spring [fill Water System in a form approved by the City Attorney ,.3 , l 1{J • i • 5. Tryon and Spring Hill must obtain a Certificate of Convenience and Necessity from the Texas Natural Resource Conservation Commission and obtain a dual certification in this area with the City of Denton. Section That the Mayor, or in his absence the Mayor Pro-Tem, is hereby authorized to enter into the attached Ag-eement with Spring Hill and Tryon Development i after approval as to form by the City Attorney and execution of the Agreement by Tryon and Spring Bill. Section III: That this ordinance shal' become effective immediately upon its passage and approval, PASSED AND APPROVED this the day of 1997 i I I JACK MILLER, MAYOR t ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY i BY: t ti t. ~~ljy. • • AGREEMENT FOR CREATION OF SPRING HILLS ESTATE WATER SYSTEM WITHIN CITY OF DENTON £TJ STATE OF TEXAS 4 COUNTY OF DENTON 5 KNOWN ALL MEN BY THESE PRESENTS: This Agreement, made this the day of 1996, between the City of Denton, "Texas, a Municipal Corporation, acting through its Mayor ("City") and Tryon Development Corpora- tion, a Texas Corporation, acting :hrough its President, hereinaf- ter referred to as "Tryon", and Spring Hill Estates Water Company, a private water Company, formed to operate the spring Hills Estate Water System, acting through its President, Kari Holmes, hereinaf- ter referred to as spring Hill: W I T N E S S E T H 1. Definition Of Terms As used in this Agreement, the following terms will have the following meanings: A. "Commission" means the Texas Natural Resource Conservation Commission. H. "CCN" meant =ertificates of convenience and necessity issued by the commission to a utility, public utility, governmental entity, or water supply and/or Sewer service corporation, if those terms are defined in the Texe.s Water Code. C. "City" means the City of Denton, Texas. D. "Denton Watcr System" means the diotribution linen, treatment plants, reservoirs, pump stations, mains, residential and commercial connections, and any other parts or components that will comprise the public water and wastewater system of the • City of Denton. E. "Potable water" means water meeting the requirements of the Texas Depar:ment of Health for human consumption and other domestic uses. F. "Spring Hill Estates water corr,pany" or -,Spring Hill" means the • private entity formed to own and operate the Spring Hill Water System. • G. "Spring Hill Estates Water Systen" means the distribution lines. treatmen= plants, reservoirs, pump stations, mains, EXHIBIT A S~ r_„ • • residential and commercial connections, and any other parts or componer.ts that will comprise the public water system of Spring Hill Estates. II. Recitals j WHEREAS, Tryon Develop.,.ent, cae developer of Spring Hills Estates, is proposing to develop a private water system to serve 82 lots as shown on Exhibit A, which is attached hereto and made a part of this Agreement for all purposes. This system is to consist of 2 500 feet deep wells with submersible pumps rated for 43 GPM, a 20,000 gallon ground storage tank, a 2,000 gallon pressure tank, 2-252 GPM Booster Pumps, 7,675 feet of six-inch water lines, 14 gate valves, one fire hydrant, and other pertinent improvements, which would serve customers within the extraterritorial jurisdic- tion of the City. WHEREAS, the City by Resolution 197- approved the creation of the Spring Hill Water System in accordance with Section 34- 119(4) of the Denton City Code. NOW, THEREFORE, for and in consideration of the mutual promises herein contained the parties agree as follows: III. Authority To Contract J A. Tryon certifies, pursuant to relevant law, that it has legal authority to enter into this Agreement. Exhibit "B", which is attached hereto and incorporated herein by reference, is a duly adopted resolution of Tryon's Board of Directors approving this Agreement and authorizing the President to exec,,te this Agreement on behalf of and as an act of Tryon. B. The City certifies, pursuant to relevant law, that it has legal authority to enter into this Agreement. Exhibit "C" which is attached hereto and incorporated herein by reference, is a duly adopted resolution of the Denton City council, approving this Agreement and authorizing the Mayor to execute this Agreement on behalf of the City. C. Immediately upon its formation and its legal existence as a private wat-r company the Board of Directors of the Spring Hill Fstates Water Compa,~y shall, by executing this Agreement, state that they have the legal authority to enter !nto this Agreement. I They shall forward to Tryon and City an Exhibit "D", to be attached • hereto and incorporated herein by reference, which will be a duly O • adopted resolution of the Board of Directors of Spring Hill, approving this Agreement and authorizing its President to execute this Agreement on behalf of spring Hill. Page 2 to ~ e • IV. Conditions of Approval The City hereby agrees to authorize, in accordance with Ordinance 34-119 of the City Code and other applicable laws, the creation of the Spring Hill Water System by Tryon subject to the following conditions: A. All sanitary control easements must have a minimum radius of 150 feet. B. Spring Hill and Tryon shall submit prior to construction all plans and specifications for its on-site sewer disposal to the City I of Denton through its Executive Director of Public Utilities. f Spring Hill shall not proceed with any construction on on-site f sewage disposal for Lots 1 and 2, Block E until and unless the City f of Denton approves such sewer system. C. Tryon and Spring Hill must provide certified evidence, through a registered professional engineer, that the water system will meet all City, State, and Federal Health and Water Quality Standards I including, without limitations, the system must be constructed using AWWA C-900, DR 18 rated pipe. All such plans and specifica- tions regarding said Spring Hill Water System must first be submitted to the City through its Executive Director of Public Utilities and no construction shall begin unless the City has approved such water system. D. All operators of the Spring Hill Water System must be certified by the State Department of Health through the Commission and all certifications must be kept current during the time the system is in operation. E. The City shall be given the right upon reasonable notice to inspect the system periodically to determine if the system is being operated and maintained according to all applicable laws and industry standards including without limitation all commission standards. F. Tryon and Spring Hill shall obtain dual certification for the area shown in Exhibit "A" by the Commission prior to undertaking ~ any operations and shall maintain dual certification during the term of this Agreement. 0. The review and approval procedures for Spring Hill and Tryon shall proceed concurrently with the normal platting and engineering plan approval process as outlined in this article, except for applications under these alternative water and sewer facility 8 proposals, which first require review and recommendation from the Public Utilities Board and must be filed concurrently from the City Council. n Page 3 - • • H. Tryon and Spring Hill must provide perpetual private mainte- nance of the spring Hill Estates Water System through one of the two following methods: 1. Through a irrevocable Maintenance Bond with a Insurance Agency rated at A or better by Best in an amount which is deemed sufficient to take care of all maintenance problems for the life of the system but not to be less than 10 years. 2. Through the formation of a Homeowners Association in a form approved by the City Attorney with funding determined adequate by the City through its Executive Director of Finance and Its Executive Director of Municipal Utilities to cover all maintenance during the life of the Spring Hill Water System. In addition, Tryon and Spring Hill will execute an irrevocable Escrow Agreement and place into an irrevocable Escrow Account for the benefit of the City, an amount not less than the cost of five years maintenance of the system to be accessible to the City if the Home owners Association's funding for any reason proves to be inadequate to take care of ongoing maintenance problems. J. Spring Hill and Tryon shall notify the City of the name of their certified operator(s) and shall continually keep and provide to the City access to any records that the City needs in order to adequately inspect the Spring Hill Water System and review any procedures applicable thereto. K. Spring Hill and Tryon shall fully comply with all the condi- tions of Section 34-119(4) of the City Code and all other applica- ble laws. i V. City Acceptance Of The System A. Tryon and Spring Hill agree that a City, at any time, may accept The Spring Hill Water System for operation and maintenance when the City's water and sewer lines are connected to the Spring Hill Estates Water System, provided the system has been designed, constructed, and operated in accordance with accepted industry and city standards. Prior to such acceptance by the City, the Spring Hill Water System, including all facilities, shall be inspected and evaluated as to standards, adequacy, conditions, and all other matters. If water and sewer lines and facilities are not according to city standards, a per linear-foot pro-rata charge shall be assessed to the users of such system for installation of these new facilities or will be on a per-linear-foot, actual-cost basis for • upgrading or repairing the existing facilities to meet city • • standards. B. Tryon, and Spring Hill understand and agree that the City, may hire a consultant, to perform a survey and feasibility study of the Page 4 Q I 0 ~ • 0 Spring Hill Estates Water System and that City, will perform a complete inventory and assessment of the Spring Hill Est'ites Water System prior to making a decision to accept the then existing system into the City Utility System. In the event the City decides to accept the existing Spring Hill Estates Water System into the City System, it shall be conveyed and dedicated to the City at no cost, in accordance with the additional terms of the Agreement set forth herein. However, this clause creates no obligation on the City to accept the Spring Hill Estates Water Sys'am as a part of the overall City Water System and the Spring Hill Estates Water System may only be accepted if the City, upon recommendation of its Public Utility Hoard, determines that it is feasible and acceptable for the City to manage and operate the Spring Hill Estates Water System and the City, through a majority vote of the city council agrees to ultimately accept a transfer of the Spring Hill Estates Water System. It is further agreed by the parties that the City shall not accept the Spring Hill Estates System until the final completion of all improvements necessary to bring the Spring Hill Estates Water System into full compliance of all applicable Local, State and Federal laws, rules and regulations, including, without limitation the construction and acceptable completion of any water treatment facilities adequate to extend service to Spring Hill Estates has been accomplished. VI. Spring Hills obligation Upon Transfer In consideration of the City's obligations and the mutual consideration given by the City in allowing the spring Hill Estates Water System to be created, Tryon and Spring Hill, by and through their designated and authorized representatives, agree as follows: A. Upon the request of the City through its Ctty Council, to transfer and convey to the City, for the management operation of the City, the entire Spring Hill Estates Water System, including but not limited to the following: 1. Any rights, obligations, duties they possess pursuant to any CCN it has received from the Commission, or any other license, permit, or certificate which you may have received from any state agency or governmental entity whatsoever • relating to water, water treatment services of whatever kind or nature within service area or in its outlying areas, which service area is described in Exhibit "A". 2. All rights, title, and interest in all real and personal property that comprises the Spring Hill Water System, to be more particularly described as Exhibits to the Transfer A Agreement when an inventory of all property is completed by i~ , the city. This inventory shall constitute a complete inventory and listing of all real and personal property, including but not limited to all easements and right-of-way 1-04 agreements, which are then owned, operated and maintained Page 5 9 VAIN- . • • by Spring Hill as a part of the Spring Hill Water System. B. To cooperate with the City in the event of a transfer to take all action necessary to comply with the rules of Commission or any other Federal, State, Local Agency which is necessary to accomplish and effectuate the transfer of the Spring Hill Water System. C. To be solely responsible, in the event of a transfer, for taking any action necessary to dis,;olve or otherwise terminate itc existence as necessary to fully accomplish the transfer of the Spring Hill Water System into the Denton Water System. VII. Documents And Access Provided A. Spring Hill agree, upon request of the City, through its Executive Director of Public Utilities, to deliver to the City immediately upon request, a copy of all plans, "as builts", specifications, equipment, construction warranties and drawings related to the Spring Hill Estates Water system, together with copies of all easements, permits, water rights or rights to water contracts or assignments, and other documents demonstrating property interest in the Spring Hill Estates Water System, as may be required by the City's Executive Director of Public Utilities. B. Spring JIM and Tryon grant to the City and it's Director of Public Utilities, their employees, agents, consultants and contractors an unrestricted right of entry to inspect, measure, slsrvey, and test Spring Hill Estates Water System and perform other activities related to the full examination and assessment of Spring Hill Estates Water System. In addition, Spring Hill shall allow and fully cooperate with City and it's Executive Director of Public Utilities, it's above indicated employees, agents, representatives, consultants, and contractors, to do a complete inventory, account- ing, and appraisal of all assets and intangible property of Spring Hill in the event of a transfer of the Spring Hill Estates Water System into the City water system. VIII. Physical Loss No approval by the City or it's Executive Director of Public • Utilities of any planned specifications, permits or other documents shall ever make the City responsible or liable for any defects in the Spring Hill Estates Water System and the City shall not be liable for any means or methods of construction if the water system. Spring Hill shall bear all risk of loss, damage, or destruction to its business and the assets of the Spring Hill Estates Water System. The City may terminate this agreement and • cancel its approval of the system and may move to have the • commission revoke the dual CCN Certification if Spring Hill allows the Spring Hill Estates Water System to deteriorate to such an J extent that the cost of repai•ing or restoring any assets of the Spring Hill System is greater than one-half of the total value of Page 6 1 ra j ,..,a,.,,.r.,,, .771 • • I , the system as determined by an independent appraiser approved by the City, through Lt's Executive Director of Public Utilities, or an independent appraiser approved by the city, determines that the Bond or Neighborhood Association Agreement is not sufficient to continue to maintain or repair the system. IX. Indemnity By Spring Hill A. Tryon and Spring Hill shall indemnify, defend, and hold harmless the City, it's or[iccrs, agents, servants, and employees from all suits, actions, losses, damageo, claims, or liability of any character, type, or description, including, without limitation, any fines, penalties and costs of damage whatsoever growing out of any action taken by any governmental entity, department or agency of any governmental entity, any other person, including citizen suits against the City or any of it's officers, agents, servants, and employees for non-compliance with the laws, rules or regula- tiono, whether relating to the environment or otherwise, and including, without limitation, the generality of the foregoing, all expenses of litigation, court costs, and attorney's fees for injury or death to any person or injury to any property sustained by any person or persons property arising out of or occasioned by the negligent acts or breaches of any of Tryon and Spring Hill's obligations under this Agreement. B. Tryon and Spring Hill shall purchase and maintain, during the term of this Agreement, adequate property damage and liability insurance, with a company rated A or better by Rest, which shall be in an amount not less than $1 million dollaro for each occurrence, to cover the indemnity obligation set forth in subsection vii above. The City shall be named an Additional Insured. Such contract shall contain a clause which requires 30 days prior written notification to Tryon, Spring Hill and the City prior to any change or cancellation in the policy. X. General Provisions f I A. Notices. Any written noticec required to be given under this Agreement shall be given by certified mail, return receipt request- ed, to the following persons at the following addresses: • City of Denton: Tryon. r Mr. Robert Nelson K. Wayne Lee Executive Director of Util. Route 1, Box lOB 21L E. Mcr.;nney Rhome, Texas 76078 Denton, Texan 76201 e Page 7 /1 ~ • • Spring Hill X. Wayne Lee Route 1, Box 108 Rhome, Texas 75078 A copy of all such notices shall be provided to the City manager by certified mail, return receipt requested, to: Mr. 'red Beravides City Manager 215 E. McKinney Denton, Texas 76201 3. Entire Agreement. This agreement constitutes the entire agreement between the parties and no prior or contemporary oral promises cr representation shall be binding as to either party. No modification of any provision to this agreement shall be effective, unless such modification is in writing and signed by authorized representatives of each party and is expressly stated to be a modification of this agreement. The failure of either party to insist upon the strict performance of any of the terms, provisions. or conditions of the agreement shall not be construed as a waiver or relinquishment for the future of such term, provision, or condition, C. Descriptive Captions. The titles or captions of the articles, :ections, subsections, paragraphs, or subparagraphs of this agreement are intended strictly for the convenience of the partir,a and shall have no effect and shall neither limit nor amplify the orovisions of the ac-eement itself. D. Applicable Law. The validity, operation, performances contract, shall be governed and controlled by the laws of the State of Texas and the terms and conditions of this Agreement shall be construed and interpreted in accordance with the laws of this State. Venue for any proceeding brought for any breach of this agreement shall be in Denton County, Texas. E. Breach of Contract. Any party to this agreement may terminate such Agreement, file an action for damages or seek specific • performance contract to pursue any other remedy it may have in law j or equity for breach of this Agreement or any intentional act or negligent act or omission. If it is necessary for any party to file a cause of action at law or an equity against any other party due to: 1. A breach of this contract by any other party; and/or any intentional negligent act or omission; that party shall be , • entitled to reasonable attorney's fees and costs and any I • 0 necessary expenses in addition to any relief to which it is I entitled. Page 8 I P ROW • • F. Cumulative Remedies. In the event of default by any party herein, all other parties shall have the rights and remedies afforded to them at law or in equity to recover damages and interpret or enforce the terms of this Agreement. The exercise of any one right or remedy shall be without prejudice to the enforce- ment. of any other right or remedy allowed by law or in equity. G. Assignment. Neither thin agreement nor any interest therein shal, be assigned by any party without the written consent of other parties. H. Binding of Bucceseore. This Agreement shall be binding on and shall note the benefit of the successors and assigns of the parties hereto, nothing contained in this Agreement shall be construed as consent to any assignment of this Agreement by the parties. I. No Third Party Beneficiary. The parties are entering this Agreement so for the benefit of themselves and agree that nothing herein shall be construed to confer for any right, privilege, or j benefit on any person or entity other than the parties hereto. XI. Termination The city reserves the right to cancel this Agreement without liability and revoke its approval and initiate a revocation of Spring Hills CNIt if any of the following conditions occur: 1. If Spring Hill commits a breach of this Agreement which is not cured to the sole satisfaction of the City of Denton, through its Executive Director of Municipal Utilities and within thirty days of the date that spring Hill receives such a written notice. 2. If Spring Hill fails to obtain its CNN or any other permit, license, or other approval of any Federal, State, or Local Agency or Covernmental Entity. Executed as of this, the day of , 1997, by Tryon Development Corporation, signing by and through its President, duly authorized to execute same; by Spring Hill Estates, • signing by and through its President, duly authorized to execute same; by the City of Denton, through its Mayor, Jack Miller, duly authorized to execute the same; thereby binding themselves, their successors, assigns, representatil,es for the faith`ul and full performance of the terms and provisions of this Agreement. CITY OF DENTON, TEXAS • A Municipal Corporation • JACK MILLER, MAYOR Page 9 13 A i 0 ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: I, SPRING HILL ESTATES A Private Water Company BY: G1 Its P es dent ATTEST: E BY:R/L.1IOL/11fD TRYON DEVELOPMENT CORPORATION j A Texas Co poration BY: f Its P e ent ATTEST: BY: IUWQr L. JIOt.NE3 STATE OF TEXAS O COUNTY OF DENTON This instrument was acknowledged before me on , 1997, by _ the Mayor of the City of Denton, Texas, a Texas M1±nTc pall Corporation on behalf of said corporation. O Notary Public, State of Texas I ~ I Page 10 1'f e • r. STATE OF TEXAS COUNTY OF DENTON This instrument was acknowledged before me on 2J CYkYdti 1!327 , 19970 by 1~a2~ jlpl ~~5 the President of Spring Estates, A Pr vat to Water Company on behalf of said company. Public, State of Texas STATE OF TEXAS i COUNTY OF DENTON This instrument was acknowledged before me on 21 r4)j aL IeM , 1997, by ~Ra L.FfO~ , the President of Tryon Development Corporation, a Texas Corporation, on behalf of said corporation. NCtafj Public, State of Texas Cs\wPDOCS\K\SPRINCHL.K 1 t i 1 • t e e 15 Page 11 i • • Spring Hill Estates P. Water System C j 1 m C1 T TC 9PG J7. n % top Ozj a/o ~ ! j.R nr'n ne o- - i m n Cr^ l (I N I•_Y :4' c>~ r I~ p• /7 I i~ I fl- OiSo-i fit[ 1 W ' v 2r ~ y -r. C' n • O m ' N 0, 0 Jptg ~ t.r ~ et E f ' 3 oar o 4 ; mi ~ h; : r - ii a 1 I 1, ~ IJ I°gi1~~~•fi7A ~n :N• I~ i 7r+ I 1 N ~ ,lC 1 pie ; ~ I itS el ^ a~ j Y ! I r - f"''• • u o~1 1 f7 lCl M' l 1 n $ ~ ~ v n f. ~ 'J Sr [ I uo < s ! o fit v u= MIiJ A,. C 111y./ if'' C=~ nm O h ~ .011 OI: L='(}+.~~ ~ I J 0 elf. e to g • 7' r- - S : if, 41 . \ \A00 \ GGam'. n ,I I ~ • • 'i J: EXHIBIT A - ` = ;r r , . • • NOVEMBER 20. 1996 PUBLIC UTILITIES BOARD AGENDA ITEM TO : CHAIRMAN AND MEMBERS OF THE PUBLIC UTILITIES BOARD FROM : R.E. NELSON, RE., EXECUTIVE DIRECTOR OF UTILITIES SUBJECT : CONSIDER APPROVAL FOR THE CREATION OF THE, SPRING HILL I ESTATES WATER SYSTEM. RECOMMENDATION The Utilities Department Staff recommends approval for the creation of the Spring Hill Estates Water System near the intersection of U.S. 380 and FM 156 in the extraterritorial jurisdiction of Denton (Exhibit 1) subject to the following conditions: I. The sanitary control easements have a minimum radius of 150 feet. 2. The City of Denton must approve on-site sewage disposal plans for Lots 1 and 2, Block E. 3. The system must be constructed using AWWA C-900, DR 18 water pipe. 4. The City may inspect the water system periodically. 5. The City may acquire the water n as outlined in Section 34.119(4)(h-i) listed below, 6. The Spring Hill Estates System will get a Certificate of Convenience and Necessity (CCN) from the State. The system will be dual certified for this area with the City, of Denton. SUMMARY Tryon Development, the developer of Spring Hill Estates, is proposing to develop a private • water system to serve 82 lots (see preliminary, plat. Exhibit 11). The proposed system consists of 2 - 43 G.P.M. (500 feet deep) wc1Is. a 20,000 gallon ground storage tank, a ~ 2,000 gallon pressure tank. 2- 252 G.P.N1, booster pumps, 7,675 feet of 6 inch waterlines, 14 gate valves and one fire hydrant. Section 34.119(4)(8) requires that the Board review and recommend and the City Council approve the creation of private water systems. The requirements of this section and how they apply to the Spring Hill Estates System are as - ® follows: • I I EXHIBIT B • • a. The cost to tie onto the city system would be significantly greater than the proposed alternative. The proposed water system is ap; mximately three miles from the nearest City of Denton water line on U.S. 380. The cost iO MnneCl to the City system is approximately 5300,000. The cost of the well system is estimated to be $100.000. b. The applicant of the proposed alternative system provides certified evidence from a registered professional engineer that the system ails meet all city, state and federal health and cater quality standards. The developer's engineer submitted the plans and a report to the TNRCC for approval. The TNRCC has given "conditional approval for construction ( see Exhibit III)." The City of Denton is concerned with two areas. First, the signed sanitary control easement only, calls for a 50-foot easement, a 150-foot easement is required. Second, the sanitary control area extends over U.S. 380, which the developer cannot control. C. The sizing and material quality of all facilities will meet the city standards. The distribution system sizing meets the requirements of the City, We would require the developer to use AWWA C-900, DR 18 rated pipe rather than th^ specified ASTM D-2431, SDR-21, Class 160. In addition, the developer has requested a variance from the subdivision requirements that fire hydrants and sufficient fire flow be provided. Staff will support this variance. It would be very J expensive to design the system to be able to provide adequate fire flow. Additionally, it could impact the water quality of the system. d. Perpetual private maintenance is guaranteed by such means as a homeowner's association, bonds or other means approved by the city attorney. - Staff is working with the developer to provide a guarantee acceptable to both the developer and the City Attorney. e. Operators of the system will be certified by the state department of health (TNRCC). The developer is going to provide me with the name of his certified operator. f. The city shall have the right to inspect the system periodically to determine if such system is being operated and maintained according to industry standards. e ~ • o The City will make this a requirement of granting approval to this water system. i 1$ 41-0. i • • g. The review and approval procedures for such private water and'or sewer system shall proceed concurrently with the normal platting and engineering plan approval process as outlined in this article, except for applications under these alternative waste and sewer facilities proposals, which shall first require review and recommendation from the public utilities board and final concurrence from the city council. This is the procedure that we are following with this agenda item. It. The city may accept existing or annexed private water or sewer systems for operation and maintenance when the city's water and sewer lines are connected to such system, provided the system has been designed, constructed and operated in accordance with accepted industry and city standards. Such private system shall be dedicated to the city at no cost. I. Prior to such acceptance by the city, such water and sewer lines and facilities shall be inspected and evaluated as to standards, adequacy, conditio, etc. if water and sewer lines and facilities are not according to city standards, a per- linear-foot charge shall be assessed to the users of such system for installation of these new facilities or will be on a per-linear-foot, actual-cost basis for upgrading or repairing the existing facilities to meet city standards. The City will make these a requirement of its approval also. In addition to the above requirements, the Spring Hill Estates System is located within Denton's CCN. Spring Hill Estates must get its own CCN. The City will support dual certification, not single certification to Spring Hill Estates. The lots will be provided wastewater service by on-site disposal. AGENCIES AFFECTED Citizens of Denton, Denton Municipal Utilities, TNRCC and Tryon Development. s FISCAL IMPACT r j Miminal. There will be some expense for inspection of the system, but it will be a small 1 amount, ~9 • Prepared by : Submitted by 4 Gerald P. Cosgrove. P.E. R,E. Nelson, P.E. 4 Engineering Administrator Executive Director of Utilities Approved by Howard Martin Director Environmental Operations Exhibit I. Location Map II. Preliminary Plat Ill. TNRCC Approval Letter n.\nvnr.v~npiAeeraprtnq_n • Jf i i J , 22 • 0 - 1 _ r .1 L. ro.u I V n ~ ~ "I 1 , f 1 • " J cc> . I / r ^ VV aun[ Trr S q 61r}l~ LAKC T r~} ru / q~au'~ + J ~ err 1'., . IVr C ~L y . 7 1.\• .l bt ~.,I r 1, \ ' •SL~ , f'I - `y.J / t.NlbnlLl t•~ 1 ' tLY I , 1 o r ~ 7~ •j ~ ~ ~ / ~ ~ f b 1114 OA 0 EX H IBIT I aJ • • _ ..:...w.w .•rsw•.+..•r.rr~,aw-a.~. ^.wr.-"~rv A.es...ara~.w....req.r,w•v•nwan.w...A'm~ealc•k.RrYZr ltn:A WL'al.ALaM>eH4w:RAw~`.a!tell`i'~'AY.Ri.Py1S1.+6M:rv~.vwk.. r WU'JSIFte4 • T r I Q e i .~s ^1l PHASE a (177 Rend / / Pr.p,,.4 40% Flat, A ,*@ 4AIIN f 3!3• T••14. .4 e ltei _ 5 se0•32.4 64. A, , f BLOCK E ? N 1.13,_ 3e 7Jt1 9. 9?'2730 64 f 3m r• ° c r.l 0 OS' f r r I veos LrP J m,rtrr l a n' 1 n J~~ f2!' tio.32 49 F f U. 1 J', rr e -:Itl. 1~ r^1' q ey'~.° r2r`--~_ 4E c - 8L DICK J f n 2 141 74 77/•31t I', 106 Ae 193 At 1 P u,5 , 1• R. ff,--A4,l,'- 19 J/1 I 2, 10l Ao 45 i 10•I e: I 1 n I US A. 101 At Putl r Sun•1 r r' IA ~TSS' r' f ^ 31 ob. Ar e:'f lj~-~Y`, tl) ! j • R n w c.d~:l r.... IB 4 T' f a B f C ru44r ,~'j d ~i lros 4,7 BLOCK D fi a'. r/~Q~ r~• .,r 1.,)ei I.J~Rr ruq At tr_ X06 Ae .I IT l~! a~ IIZl._ to !~I • f 1 u1 Ar 7 1 )8 ?01 A I Oo Ae 0$ Ar r X y V ~,t 13+ t a j r / V 1! tai -7pr1•151 ~b 0f IS J. (~-_I Jb ne n.l E 16 d14 Ar r. 6 1 5 .I Ct r't 30 i 9 i , + ~;n a_ 1 a•„'r 104 Ar o'III, •Z 72 2 It ~r 14. ..cPri~r lie iii ]7 5 d-r3i-`_Tf71 y ' 1 •I I 'Ol 1~ On er 'w A_M40 ' } u 4 %'1 1 29l !dM rr Nv i 10 A A 1 ~n m f b ~I v. fo r+ 1.0 Rr f ~ITj P • w % -'i 1 r 'i 2 i f ff^. 7 I 10 ley' A~ - .'I A. 0 13 m 106 At IDI A rI p, a ' % r 1aa nr er, IIJ4 _ f • fl -1 r ^r~ l Yl:~ II 14 15 716 Iv 1 sJ ' BLOCK, 4 'lr nt s 7I ? loe Ac o j1 nrz ar + 111 n' ~Ilra e,'1 A~ 7r7 / 19 IB IT IG r 15 "r• n. ! 12 M112 BL0 n D e r„ 1 1114 11 A, n. ~1 '.n A. L4 Ar I )l e(~ IO ''Z-`~~.K_ 1 • J L_..1 yt~._ 19 n 10 I7 • 'I, Ar. ri, i IUI Ar I 1,3 a r •in"A' 7N rl 1 I.,I I, t a A Inl YNG 0r ej s r 2PJI 1...75C... ur, 10 I ?d F'll /eni' yMLBLOCK B IA 39 10 IS 1X1.1 Ar rnJ ar 1(r' A, Irl I An 1 )41 A. l ul Al " !6 N IT IB i' 19 ~iM 1 I,9' ) A ' • p Ad L. r.r Ir,.,. I. C) 107 At IUO Ar IrJU Ar P('-' Ar r00 A, 100 Ar 100 A. UU A. •A wl )llt l4, 'I 1' I' 1' e, 1 • • i Barry R McBee, Cialrmaa R. B.'Ralpho Maroau, commwianer JOM Ft Baker, Commiuioger E' Den Punori Lrenmye Dirukr TEXAS NATURAL RESOURCE CONSERVATION COMMISSION Protedn p New by RPduti49 m,d Pervrniigy PoilydiCq October 18, 1996 i Mr. William L. Boomer, P. E. j LaWCon, Inc. P. O. Box 100247 Fort Worth, Texas 76183 Re: Spring Hill Estates Proposed Community Water System Texas Naaual Resource Conservation Commission (TNRCC) Public Water System IdcWfk*tloa Number Not Assigned Picas Review and Rate Design Team Lag Number 610-021 Denton County, Texas Dear Mr. Boomer: , The proposed wells and related water plant facilities arse eondidonany approved for coastruction based on our review of planning material received on October 4, 1996 with your letter dated October 1, 1996. The project generally meets the minimum rrquirements of the TNRCC's Chapter §290. Rules And H=jnh*nnLg kbIk-WA&.Sxalc= (Rules) except the following: 1. A minimum of one bast-Aiological sample must be collected for each La feet of completed waterline to check efficietx.y of disinfection procedures and must be repeated • if contamination persists (¢290.44(0(3:)• 2. All newly Installed Pipe must conform to ANSIlNSP' Standard 61 and must be certified by an organization accredited by ANSI (¢290.44(x)(1)). The designs engineer or water system owner is rerdied to rnodly the plant Revkw and Rate f • Design Team at (512) 2394460 no later than 48 hours prior to the time when the weft casing O • pressure cemen4ng begins, If pre4sure cementing is to begin on a Monday, then notification must be given on the preceding Thursday. If pressure cementing Is to begin on Tuesday, then notification must be given on the preceding Friday. After construction and before the well can be considered for final approval as a public water supply source, testing and well completion information L required, We have enclosed the 'Public 023 EXHIBIT 111 e e _Gn C'1.;e O'TMSW Ten as"6SB6L2 ?[1022 s5 1233 F'A '2114 '3-23- .96 1 .21Ar.1 °R21 %rC2'J .C. 717 =2°' October 18, 1996 Mr. William L. Boomer, P.E. Page 2 Well Completion Data Checklist" to guide you as to the type of information required. The submittal included an engineering report, 10 sheets engineering drawings, a draft sanitary control easement and one volume of technical specifications. The planning material describes the construction of a community water system consisting of the following components: ' Two 500 foot deep gravel packed water wells each cased with 6%-inch o.d. pressure- cemented, steel casing, 64'i-inch o.d. will slotted pipe and a submersible pump rated for 43 g.p.m. at 500 feet total dynamic head (t.d.h.), • One 20,000 gallon welded•stecl ground storage tank; • One 2,000 gallon ASME code hydropneumadc tank; • A 10 Iblday gas chlorination system; • Two 126 g.p.m. capacity, at 140 feet t.d.h.'each, service pumps enclosed in a 1 x 15 foot wood frame building with separate chlorine room; a 6-inch PVC waterline (class 150) with 11 fire hydrants, valves, fittings and related appurtenances; sad, • Master meter, fencing and electrical controls. I 1 These facilities will provide water supply for a proposed 82-lot subdivision located off U.S. Highway $80 and P.M. Road 136. The subdivision will coasist mainly of one acre lots with on- site sewage disposal. The distribution system design was done by Burke Engineering, Denton, Texas. Consuurtion will be according !o the North Central Texas Council of Governments standard specifications. If you have any q=tions regarding monitoring waivers for Phase 11 sad Phase V of the National Primary Drinking Water Regulations, please contact the TNRCC Publld Drinking Water Section, • Vulnerability Asse it Team at 5121299.6020. Please keep in mind that within 60 days of project completion the engineer must attest in writing ~J that the project was constructed as described In the' approved plans. spec&ations and any change orders filed with the TNRCC as required In §290.39(c)(3)(C) of the Rules. Refer to t-._ Plans Review and Rate Design Team Log No. 610-02I in all correspondence for this project. This will help complete our review and prevent It from being considered a new project, I ay t . 1 i ;.r LG'4CftCe0,T0(IaW Tew 46176]8'.252 Rt1C12b'96 1234PY 414 10-28-1396 11 :22A1d FRUI NC)CCN IC,C. 817 3?5 5267 G, 6 October 18, 1995 Mr. William L. Boomer, P.E. Page 3 If you have any quesdons pie= contact me at (S 12) 2396960, the address at the bottom of the first page or my 4aesaet E-mail address: "DIAUGIlI@smtpgate.U=.state.tx.us." Sincerely, David D. Laughlin, P. E. Plans Review and Rate Design Team Water Utilities Division, MC 153 DDUmIm enclosure cc: Spring HW Estates TNRCC Region No. 4 Office • Arlington (w/approved materials attached) , TNRCC Public Drinking Watei Secdotf, atm.; John Meyer 1 I as Asa $I • • Law O8lceol ToddW Ter II1~17163a-5252 t131197 :1 45PM 02116 I CERTIrICATE OF C01"RATE RNSOLUTION Date: 27 march 1997 Corpcration: TRYON DEVELOPMENT CORPORATION, a Texas corporation. President: KURT L. HOLMIS vice President: BERNA DEAN LIE Date of Meeting of Board of Directors: 10 March 1997 I other Corporate Officers DEREX EOLMES, Secretary We, President and Vice President of the corporation, certify the following facts, 1. The corporation is organized and operating under the laws of Texas, is qualified to do business here, and is in good standing. 2. No proceedings for forfeiture of the certificate of incorporation or for voluntary or involuntary dissolution of the corporation are pending. 3. Neither the articles of incorporation nor bylaws of the corporation limit the power of the Board of Directors to pass the resolution below. d. The President, Vice President, and other corporate officers are the persons authorized to make and sign this resolution. 5. The Secretary keeps the records and minutes of the proceedings of the Board of Directors of th(s corporation, and • the resolution below is an accarata reproduction of the one - • • ctAT:►rcm Of cOMPATT iWICUT[os--FAM l a~ EXHIBIT C r` • _ f 0 e • Lew 011UCe of Todd W Tew (1 (0171 638-5252 ' '.-.Sa 3)11r97 46P.„"1 M ~311R I made in those proceedings; it has not bean altered, amended, rescinded, or repealed; and it is now in effect. 6. The resolution below was legally adopted on the date of the meeting of the Board of Directors, which was called and hold in accordance with the law and the bylaws of the corporation, at whicb a quorum was present. 7. This resolution has been adopted by the Board of Directors; The President of TRYCN DEVELOPMENT CORPORATION, F"I L. HOLMSES is hereby aothorixed to sign and execute any and all documents and to act on behalf of said corporation with regard to the corporation entering and agreeing to that water System Agreement prepared by the City of Denton concerning the water system at Spring Hill Estates in Denton County, Texas. MI L.~HOLMES, PRESIDENT „ 4" BERNA DEAN LEE, VICE PRESIDENT • I I CtR211IG7a O1 CCR}OM11< R1a0L0Y1W1••1MZ 1 ~ i t~~.-_ • M las • i • 1aw016ceol ToddW TeA 4(817)638-5252 Ib.Y31197 ~7147PM L16 (corporate acknowledgment) THE STATE OF TEXAS } } I COUNTY OF DENTON Before me, the undersigned authority, on this day personally appeared KAKI L. BOWS, President of TRYON DEVELOPMENT CORPORATION, a corporation, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to as that he executed the same for the purposes and consideration therein expressed, in the capacity therein stated and as the act and dead of said corporation. Given under my hand and seal of office on this the 21St day of march, 1992. ~Q~~Q( TODD A IEW NOtARY PUBLIC 101115t y Public State of relas R to to acknowledgment) THE STATE OF TEXAS } COUNTY OF WISE } 9ofore me, the undersigned authority, on this day personally appeared BERNA OW LEE, Vise President of TRYON DEVELOPMENT CORPORATION, a corporation, known to me to be the person whose name is subsrribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity therein stated and as the act and deed of said corporation. Given under my hand and seal of office on this theb day of Marc 1992. t y Public NOrAORYPUBl1C ~J Stale of ruaa 1 G Coen 110wil" J • CZATIFIG:9 OF CORKAATL R11SOLUTIOY-•Par2 1 • • i Law Office of Todd W Tee 4(617)63&5252 ME 131197 149 PM 26116 I TRYON DEYELOPYEM CORPORATION No Res. a,7 cow% u-rvml, I.r IPW 27 March 1997 As of this date, we have not incorporated the Denton Spring Hill Estates Water Company. As soon as we do so, we will execute a Certificate of corporate Resolution on behalf of Denton Spring Bill Estates water company authorizing Kari L. v5olmes to sign and to act on behalf of the corporation concerning the water Agreerlsnt with the City of Denton. sincerely,y, / Bari L. Holmes RLS/tt 1 • J i i • 0 U EXHIBIT d a9 L • / CITY COUNCIL REPORT apanda hd." -/-O/ - Agenda lte Date ~ 0 DATEt April 3, 1997 TO: Mayor and Members of the City Council FROMt Rick Svehla, Deputy City Manager SUBJECTS Agreement to Contribute Funds - V.S. 377, IH.35E to Collins Street R£00MMENDATION1. Approve ordinance authorizing the City Manager to execute an agreement to ` contribute funds to the Tx.D.O.T. for the construction of U.S. 377, authorizing the expenditure of funds, and declaring an effective date. SUKMARY/BACKGROUNDt The Engineering and Transportation Department are preparing the plans and specifications for the Texas Department of Transportation (Tx.D.O.T.) to widen and improve U.S. 377 from I.H.35E to Collins Street. The highway will be expanded to a six lane facility with left turn lanes. This is the standard fixed limit agreement the Tx.D.O.T. requires for local participation on Tx.D.O.T. projects in the city limits. PQGB&MS, DEPARTMENTS, OR GROUPS AFFECTF.DL Bond funds will be utilized for this disbursement. The Utility Department has some utilities to be relocated (plane have been developed and will be bid in the near future (or next week(. Citizens and businesses will be inconvenienced during the construction period. FISCAL IMPACT City of Denton is contributing $1,350,000.00 towards the estimated $2,000,000.00 to construct. LY S BMITTEDt lar Wk LIL Deputy City Manager Prepared bys • Jerry lark Dire r of E gineering 6 Transportation f j r AEE0083A ;t m _ y: • i • COUNTY: Denton CSJ: 0081-04-028 PROJECT : CD 814-18 HIGHWAY: U.S.377 ADVANCE FUNDING AGREEMENT BETWEEN THE STATE OF TEXAS AND THE CITY OF DENTON THE STATE OF TEXAS § THE COUNTY OF TRAVIS § THIS AGREEMENT IS MADE BY AND BETWEEN the State of Texas, acting through the Texas Department of Transportation, hereinafter called the State, and the City of Denton acting by and through its designated officials, hereinafter called the Outside Entity. WITNESSETH WHEREAS, Transportation Code §201 et.seq. and Transportation Code §221.001 authorize the State to lay out, construct, maintain, and operate a system of streets, roads, and highways that comprise the State Highway System; and, WHEREAS, Commission Minute Order Number 104910 authorizes the State to undertake and complete a highway improvement generally described as construction of a six lane divided urban facility; and, WHEREAS, the Outside Entity has requested that the State allow the Outside Entity to participate in said improvement by funding that portion of the improvement described as construction of a six lane divided urban facility, herein after called the "Project"; and, WHEREAS, the State has determined that such participation is in the best interest of the citizens of the State; and, • NOW THEREFORE, in consideration of the premises and of the mutual covenants and agreements of the parties bereto, to be by them respectively kept and performed as hereinafter set forth, the State and the Outside Entity agree as follows; r Page 1 of 5 a ;wa 1~ aim W, I • • 3 COUNTY: Denton CSJ: 0081-04-028 PROJECT: CD 814-28 ARTICLE 1. TIME PERIOD COVERED This agreement becomes effective when signed by the last party whose signing makas the agreement fully executed, and the State and the Outside Entity consider it to be in full force and effect until the Project described herein has been completed and accept d by all parties or unless terminated as hereinafter provided. ARTICLE 2. PROJECT FUNDING The State will authorize construction of only those Project items of work which the Outside Entity has requested and has agreed to pay for as described in Payment Provision and Work Responsibilities, Attachment A, which is attached to and made a part of this contract. In addition to identifying those items of work paid for by payments to the State, Payment Provision and Work Responsibilities, Attachment A, also specifies those Project items of work that are the responsibility of the Outside Entity and will be carried out and completed by the Outside Entity at no cost to the State. Texas Government Code, Chapter 2106 requires the State to recover indirect costs associated with this agreement. The indirect cost will be calculated based on prevailing rates as determined through the State's Indirect Cost Recovery Program. ARTICLE 3. TERMINATION This :.Srccmcnt may be terminated in the following manner. 4 mutual written agreement and consent of both parties or, by either party upon the failure of the other party to fulfill the obligations set forth herein ♦ or, by the State if it determines that completion of the Project is not in the best interest of the State ® If the contract is terminated in accordance with the above provisions, the Outside Entity will be responsible for the payment of Project costs incurred by the State on behalf of the Outside Entity up to the time of termination. ARTICLE 4, RIGHT OF ACCESS ' If the Outside Entity is the owner of any part of the Project site, the Outside Entity shall permit • the State or its authorized representative access to the site to perform any activities required to • execute the work. The Outside Entity will provide for all necessary right-of-way and utility adjustments needed for performance of the work on sites not owned or to be acquired by the State. Page 2 of 5 .3 • 0 " I COUNTY: Denton CSJ: 0081-04-028 PROJECT : CD 814-28 ARTICLE 5. RESPONSIBILITIES OF THE PARTIES The Outside Entity acknowledges that while it is rot an agent, servant, nor employee of the State, it is responsible for its own acts and deeds and for those of its agents or employees during the performance of the work on the Project. ARTICLE 6. SOLE AGREEMENT In the event the terms of the agreement are in conflict with the provisions of any other existing agreements between the Outside Entity and the State, the latest agreement shall take precedence over the other agreements in matters related to the Project. ARTICLE 7. SUCCESSORS AND ASSIGNS The State and the Outside Entity each binds itself, its successors, executors, assigns, and administrators to the other party to this agreement and to the successors, executors, assigns, and administrators of such other party in respect to all covenants of this agreement. ARTICLES. AMENDMENTS Dy mutual written consent of the parties, the scope of work and payment provisions of this contract may be amended prior to the expiration of this contract. ARTICLE 9. INTEREST The State will not pay interest on funds provided by the Outside Entity. Funds ptovided by the Outside Entity will be deposited into, and retained in, the State Treasury. ARTICLE IU. INSPECTION AND CONDUCT OF WORK • Unless otherwise specifically stated in Attachment "A", Payment Provision and Work Responsibilities, to this contract, the State will supenise and inspect all work performed hereunder and provide such engineering inspection and testing services as may be required to ensure that the construction is accomplished in accordance with the approved plans and specifications, All correspondence and instructions to the contractor performing the work will be the sole responsibility of the State. Unless otherwise specifically stated in Attachment "A" to this contract, all work will be performed in accordance with the "Standard Specifications for • Construction and Maintenance of Highways, Streets, and Bridges" adopted by the State and • incorporated herein by reference, or special specifications approved by the State. J Page 3 of 5 COUNTY: Denton CSJ: 0081-04-028 PROJECT: CD 814-28 i ARTICLE 11. INCREASED COSTS f in the event it is determined that the funding provided by the Outside Entity will be insufficient to cover the State's cost for performance of the Outside Entity's requested work, the Outside Entity will pay to the State the additional funding necessary to cover the anticipated additional cost. The State shall send the Outside Entity a written notification stating the amount of additional funding needed and stating the reasons for the needed additional funds. The Outside Entity shall pay the funds to the State within 30 days of the written notification, unless otherwise agreed to by all parties to this agreement. If the Outside Entity cannot pay the additional funds, this contract shall be mutually terminated in accord with Article 3 - Termination. If this is a fixed price agreement as specified in Attachment' A", Payment Provision and Work Responsibilities, this provision shall only apply in the event cbangcd site conditions are discovered or as mutually agreed upon by the State and the Outside Entity. ARTICLE 12, SIGNATORY WARRANTY The signatories to this agreement warrant that each has the autbority to enter into this agreement on behalf of the organization they represent. ll+ 1 V • i e J Page 4ofS t r. ~'.'fa'!nwr•,.e..+~•.rytM~ .r n. ~....w--~. ✓r ~ ~ fy~' . 1 • ' k • • COUNTY: Denton CSJ: 0081404-028 ! PROJECT : CD 814-28 f IN WITNESS WHEREOF, THE STATE AND THE OUTSIDE ENTITY have executed duplicate counterparts to effectuate this agreement. THE STATE OF TEXAS Certified as being executed for the purpose and effect of activating and/or carrying out the orders, established policies, or work programs heretofore approved and authorized by the Texas Transportation Commission under the authority of Minute Order 100002. gy Date District Engineer THE OUTSIDE ENTITY NameoftheOutside Entity- City of Denton gy - -Date Typed or Printed Name and Title Ted Benavides, City Manzger For the purpose of this agreement, the addresses of record for each party shall be: For the Outside Entity: For the Texas Department of Transportation: 215 East McKinney 2624 West Prairie Denton, Texas 76201 Denton, Texas 76201 1 • Page 5 of S t e } I COUNTY: Denton CSJ: 0081-04-028 PROJECT: CD 814-28 i ATTACIBIENT "A" PAYMENT PROVISION AND WORK REWONSIBILITIES Description of the Cost of the Items of Work r The State will be responsible for the construction of a six lane divided urban facility for U.S. 377 firom I.H. 35E to Collins Street in the City of Demon. The Outside Entity's cost for its portion of the work is $1,350,000.00 which includes contingencies, construction engineering, indirect and construction cost at the rate in effect for the year the propo,cd work is to be completed. Schedule of Payment Upon execution of this agreement, the Outside Entity will remit a check or warrant made payable to the Texas Department of Transportation in the amount of $1,350,000.00 to be used in payment for the proposed work required by the Outside Entity. i r- ' 1 I Page I of 1 r' • - • . _ - ,t .S. a` '.'<.r.:v.rt' c. .t e 1'.a;-:, rr r, a4it'e'," lk t: 'ln't"I t~. ~i'; u'•~•'r..3 +..r.. a`.+t, Ga S,~».,r: l: I 5 [.rrw INDEX OF SMELTS 3'[C, Iq D[SUtITtO 01310 Mft1 • [A+/A rtw ~+.o: ~ r M M r.r Tim &Alf STATE OF TEXAS NOTC- i•D : ATTr IC C0410m ALAN DEPARTMENT OF TRANSPORTATION sr[cclurmrs Aava[ IT, M ma a.r+Mw v I 9EKIML[ WO a sn TRMfYOi.TM MOtM L 11" Mq [KCIK.TKN IrM 1 THIM .DTIi ME Y[ClrrCA rC•F I0 DATA LISTED WD DATED is rDLL0,r3 L,.L4 WE" On Tq7 IAxc?. I ,ICK f«fl0 PLANS OF PROPOSED T PERM COIIRACI HOVIUOa R![„t-.t/ ,a13Twl,t„ort w~ANI wU "tts INTERSTATE HIGHWAY IMPROVEMENT CCKT1ACTS rwA un 1ECOrKIL I"1% 1 O.Alwa AALA .V 1 w vRK[IC DATA M co6Ac m OMLL n7v10[ me EKCr 0ARR1CA0CS Awe PIAN A. A.0 IRIL[ M[17 "IMLA VW.1,6 s104 01 AC[OrOwC[ VIN K-na" rn/V K-nHS A i 11194m KrAILi STATE PROJECT pCPrn FDIC.TED on AT OTT" PDIWI As DIRECT[! n M 31P.G w1 I Il+ i r I t. K 1 n1Dr I'D" WIN IDlluyj url0 ..[,KI"t [wrld olw fsvs) StPf) of-R-RB INDEX OF SHEETS DEI~TON COUNTY =ACTM rv,[; AIt pct,ti[;, s°`Mpw";rtrm "u "Aa .t2„ns U.S. 377 FINAL PLANS, FROM: NORTH OF IH 35E tvfvf ImIt: ;ECI TU1 COLLINS STREET VMK MM OATCr 1 n.Dml;,,: t.) Nr.T LM ?4 Or PPOJECT 87675 METERS • 0877 KRWTTR .run star 1 .vi U-n w> Cleo 1 rRlwtl,•731.1 VMK ACCEPTED I .Mt U•ritq TEXAS DEPARTMENT OF TRANSPORTATION I . 1C I I .xnl-u-na) I .rcitl•t,•nu7 t.vws n_ 1 .?[,49.13-nfr) s .TCne-m.nt.) I •lc,q-11•ngr .95 t1opi K411-" I C.Cnll•134w) I CALK[[>•1it.) 1 «[o-nlwr . s.t. 1 [..r.ni.r Ix sIN 11 9164 ffl A § I.. . M IfwtARO VCET3 VTCIr ICKL1 IKw IrIE1 AM MK KEA 7r ~w'm R IC,R IT W OR VMD[R wT R31011IL3 lVEKInO As kI.D 49t tl•ILIV n. uni,. C. 11t ro Iw71 •.OA [t. Mt Ilq t1/ 7~R1is - 1.t. 12 DA T[j . r.c, . P.C. 1~rmc ~ nu ad ~ t449 MPA4rmm or rt=AL 141"AT APllwltn4710 COCUM fri~wmr • .I scat . 1 1 1. 1 .ASR'n1 / nn 1 r=te 1130 mmmlrsmmnnesTrr- -mr- I • • • .v....,. -0.^:... r, '.,tiv rr.`a ♦ . e'.,1S s" .4b ,ry. r c,` r*Ta;a.v Rb r~n;}~r f. I 1 18 3n MIN. 6 USUAL 4 18.3n MIN. 6 USUAL - I2 On - 15.3n - 18n 1.8n > BERM IOBn f d 06n 3 - 36n LANES 0.6n 3-3~6n LANES ltH 1-33M` TURN IM ~ LANE BERM d 1 i + D br' tt ~ "a CURB T D6A MONO CURB 0< 0.02 1 0,021 CAL VARx 09n 1TP. ` 2 V RMAX I! MALE-SECTION NORMAL PROPOSED HALF- ~SECIIWI WITH LEF1iT;1RN LANE TYPICAL CROSS SECTION F LM. 35E TO COLLINS ST. 6 LANE AND TURN LANE I rt • 828 la 3A MIN, 6 USUAL MEDIA i MEDIA - 18.3n MIN. 6 USUA:, r- - 12 On 2.IA 2.1n 12.0n ER 108n BENM 3 - 3.6n LANES IO.Bn 1.Rn 06A 3 - 36m LANES BERM i Obn 06n ! } 06A i , I MONO CURB PROFILE CL V MONO CURB o B 0 A2 0.02 poal OA V4RAK 06n TTP. O.bn TTP. 3AMAK OJ3 ' LEGfND• PROPOSfO j i ZK TYPICAL CROSS SECTION 200nn CONCRETE LM. 35 35E TO ELIlNS St. j z 1 I00nn MMAC 6 LANE 200nn LIME SUSGRADE ~ l 1A1-M 1~ ' RW ~I M ~ 1 ti-. s.}T • • l hem ~~-f~l v I` etA • ~ iI~ rw Q ~ ®M rw l• M iS Si S - •.A R...«. ««o..n.«~....- ..iw••«ww.•.ww•..w.fi.~«• •~'we .lf.• ll.. YN .w - w ~ rwM l ~wM r1IIYt O r R~ w •-FYI NY r ~ I~J•..~~o~«Vi 1.^Ir•~~ti M. I 1 S - f I r I I NMM__ _ ~I 1 II E dd PROFILE PLAN . I It m 1 I 4l(• p I } "IT L a IMP w.ww~ b+tJbtf8i0.••60+6 0 nu ~:oaa o~ro~ a'~~o a~ixa a+4ac ro e ° +iaa' a'+'fta a'~rta +zao- a~xsa• e • s r ~ `A I'6.°.'. a3 i4 ixrt t ,i~2~• va' r r : ; ~F Jr)d~Er? 1 RM•4f1.9 ' 1 I nn• nl- . ra.M r+sw r d + +w .~wr i+ U MA{.1.►Mr! ' JJ i ..~...N...._N..._.Jl~~.. .....11. ...-lt......_...» ~ rs .fie [ ~ w • rva 1..1 R. ~ i ~r rnr 1 • . I,nf- t +wr Iw •rr Zlz nn nR I. FI`M ~r H M;'J..w~ Yi -a nT -Ml nM • 213 13 IM 11 LIM ----'-7---~I'------ - --j ® ~'t PLAN 0 210 • . ° - _ PROFILE 1 sly. r r n s _ - 2 5 0+3015"' +370 + 366•' + + . +i76'• +J;b'-b+ aD' + L+b+ 2D-D+3~6'• + r_.., • • • +1 l 1 • [u . welt / Mm~ t rsnl. S WII a T h~ F . RII1f • * 1.4ws. y Y• hh Au •I ~ V W .l FPO &WM i. Iii .+►f '-Y r. roan ` . 9 { . f[ IR• /.lnM [ . ter• •.rra- bF, • J i i i . i Y Y4 .r - _ j q . i. •••r w -AMT. PL AN 2G~ 3 ~ i Y n . ""ft" l i. . ► ' I t ~.»w_ / • 1 ._a Ol R~ 200 .J__R , nr i11 I a UI.30 q - O+~Sbzf"0+bia 0+540 0+eaa-- +a~e ° + M- + c ' +7id O+ 93 + d + 048 +Sid- +SQO 'T. ` - _ Y. • I • ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE STATE OF TEXAS, ACTING THROUGH THE TEXAS DEPARTMENT OF TRANSPORTATION FOR CONTRIBUTION OF FUNDS FOR THE RECONSTRUCT'ON OF U.S. HIGHWAY 377 BETWEEN INTERSTATE HIGHWAY 35E AND r 'S STREET; AUTHORIZING THE EXPENDITURE OF FUNDS; AND DECLI .N EFFECTIVE DATE. THE C0,,oCJL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the City Manager is hereby authorized to execute an agreement with the State of Texas, acting through the Texas Department of Transportation, for the reconstruction and widening of U.S. Highway 377 from Interstate Highway 35E to Collins Street. .ES~7S,*! 11. That the City Council hereby authorizes the expenditure of funds in the amount of $1,350,rM 00 as specified in the agreement. SECTION It[. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of _ 1997. J JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: • APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY. CITY ATTORNEY L • • Apeaaa rvd 7_ 7 Agenda Item _ DaEe 7 '/-6- -9 7 CITY OF DENTON, TEXAS MUNICIPAL BUILDING • DENTON, TEXAS 76201 • TELEPHONE (617) 566.8307 Oltrce of the City Manager MEMORANDUM TO: Mayor and Members of the City Council FROM. Ted Benavides, City Manager DATE: April 15, 1997 SUBJECT: An Ordinance Amending the Agreement between the City of Denton, Texas and SPAN, Inc. In July of 1995, the City of Denton entered into an agreement with SPAN, Inc. to provide fixed route and demand response public transportation services. That agreement detailed the terms and conditions of the services to be provided. The attached ordinance proposes to amend the billing procedure (SPAN's request for reimbursement) and make two minor charges. In response to continuing decreases in federal operating assistance, staff continues to work closely with SPAN to streamline operating costs and to stay within the limits of the approved federal and state budgets. To assist, SPAN staff has proposed a new billing procedure which provides a better mechanism for controlling costs. Currently, the city reimburses SPAN on a line item basis and at the end of each month, SPAN submits receipts for each individual expenditure charged to the public transportation grant. The new procedure would establish a fixed hourly rate (currently $16.49/hour) using the fLll allocated cost formula recommended by the Texas Department of Transportation. The allocated cost formula utilizes the hours of operation, vehicle @ miles and fixed costs associated with the demand response and fixed route systems to determine the actual costs of service. Because cost factors are constantly changing, the hourly rate will be reviewed and agreed to annually (prior to October 1) by city staff and SPAN. The city attorney's office and the internal auditor have both reviewed and approved the proposed contract amendment and the change is reflected on page 3-0 of the agreement. Staff feels this will assist SPAN in controlling operating coats without minimizing 0 services to our ridership. The SPAN Advisory Board has also @ @ reviewed the request and recommends approval. A letter of support from the SPAN Board is included in Attachment 1. If 'Dedicated to Quality Sen*e" n4. • S Other revisions to the existing contract include a change in operating hours and the number of fixed routes implemented in October and revised in December 1996. The attached agreement reflects those changes on pages 1-A, 1-C, and 2-D. Please advise if you have questions or need additional informaticn. RESPECTFULLY SUBMITTED: Ted Benavides City Manager Prepared by. Veronica S. Rolen Administrative Assistant II i Approved By: Betty" Williams Assistant to the City Manager ATTACHMENTS: 1. Letter from SPAN Advisory Board } r 2. Ordinance II 2 • SPANTRANSPORTATION:1171382X' 30078201.1748 - PHONE 8171383.6433 April 7, 1997 Ted Benavides, City Manager City of Denton 215 East McKinney Street Denton, Texas 76226 Dear Mr. Benavides, ON March 26, 1997, the SPAN Board of Directors unanimously ap- proved a change in the billing procedure for contracted trans- portation services with the City of Denton. Since November, 1992, SPAN has been on a line item reimbursement contract with the City. We think that a full cost, fixed hourly rate reim- bursement for service provided would result in a more efficient and simplified method of payment in a timely manner. We further think that such a reimbursement method would provide a mechanism to control costs in view of increased demand and limited trans- portation resources. The Board confidently endorses the new pro- cedure, effective April 1, 1997. Sincerely, W. Garland Thornton, Jr. Chairman, SPAN Board of • Directors J , r® Greater Lewisville United Way of United Way, Ina Denton County, Inc. w r r I h ORDINANCE NO. AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE THE FIRST AMENDMENT TO AN AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND SPAN, INC., RELATING TO PUBLIC TRANSPORTATION IN THE CITY; AUTHORIZING THE EXPENDITURE OF FUNDS AS PROVIDED IN THE AGREEMENT; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION L That the Mayor is authorized to executt the Fhst Amendment to the Agreement between the City of Dente,i and Span, Inc., relating to public transportation in the City, such agreement as amended is attached hereto and made a part of this ordinance for all purposes. SECTION 11. That the City is hereby authorized to make expenditures as may be required under this agreement as amended. SECTION Ill That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this of 11997. JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: • APPROVED AS TO LEGAL FORM: i HERBERT L. PROUTY, CITY ATTORNEY • • I T:~WPDOCS'ORD:SPAN DOC C. • I° AbIENDMEN T TO THE AGREEAfEN'r BETWEEN THE CITY OF DENTON, TEXAS AND SPAN, INC. The Agreement entered into by and between the CitS of Denton, Texas, a Home Rule Municipal Corporation, (hereinafter referred to as City) and SPAN, INC. (herein after referred to as Agency) on July 18, 1995 is hereby amended so that hereafter same shall read as follows; and WHEREAS, the City Manager has determined that the Agency is the transportation provider for the City and provides a needed service to citizens of the City and the City Council has provided for funds in its budget for the purpose of paying for contractual services as well as providing for eligible Federal Transit Administration funds; and WHEREAS, the City has received grants from the Federal Transit Administration and the Texas Department of Transportation to provide public transportation in the Denton urbanized area and wishes to contract with SPAN, INC. to provide such services; NOW, THEREFORE, the parties hereto mutually agree as follows: 1. ,SCOPE OF SERVICES The Agency shall in a satisfactory and proper manner perform the following Project: undertake and complete the Project, and provide for the use of the Project facilities or equipment, substan- tially as described in City's Application for Federal funding, which is incorporated herein by reference, filed with and approved by the U. S. Government, and in accordance with the terms and conditions of this Agreement, including: A. Providing transportation within the city limits during the hours of 6:00 a.m. to 7:00 p.m., Monday through Friday and Saturdays from 9:00 a.m. to 3:00 p.m. except on holidays observed for New Year's Day, Martin Luther King, Jr. Day, Memorial Day, Independence Day, 1 Thanksgiving Day, day after Tbanksgiving Day, Christmas Eve, and Christmas Day. B. Charging a fee to each passenger with a disability One Dollar and Fifty Cents ($1.50) • for every one-way trip on the demand response system provided to that passenger. C. Providing transportation services within the city limits to the general public on four ' Fixed routes, as outlined in Section LA. hereof, for seventy-rive ($.75) for each one way trip, with a free transfer. 6 D. Charging a fee to each person 60 years of age and older and all persons with • O disabilities eligible under the "Americans with Disabilities Act" no more than half price fare on the public fixed route system. AAA011AD 5 2 • • R E. Before amending its fares, Agency shall send notice to City informing it of the proposed amendment. The City shall consider whether it shall approve the amendment. If the City does not take action to approve or disapprove the proposed fare within 60 days, it shall be deemed to have approved the proposed fare. F. Agency may contract with other persons or companies in accordance with the terms and conditions of this agreement to provide the services specified herein during times when Agency does not operate. Transportation services provided by such subcontractees shall be in accordance with the terms and conditions of this Agreement. II. OBLIGATIONS OF AGENCY In consideration of the receipt of funds from the City, Agency agrees to the following terms and conditions: A. It will establish a separate bank account for deposit of funds paid to the Agency by the City and the only expenditures from this account, until such time as said funds are exhausted, shall be for those expenses listed in the scope of services as provided for herein. Agency shall not commingle funds received from other sources in this account and shall not utilize these funds for any other purpose. B. It will establish, operate, and maintain an account system for this program that will allow for a tracing of funds and a review of the financial status of the project and will permit authorized officials for the City of Denton to review its books at any time. C. It will comply with all federal statutes and regulations promulgated thereunder applicable to the Agency. D. It will comply with all provisions of the current annual contract between the City and State Departme-it of Transportation, approved by the City of Denton on November 5, 1996. E. It will reduce to writing all of its rules, regulations and policies, such as drug testing, training procedures, grievance policies, and compliance with the Americans with Disabilities Act, and file a copy with the City Manager or authorized representative along with any amendments, additions, or revisions whenever adopted. • F. It will not enter into any contracts that would encumber the City funds for a period that would am%md beyond the term of this Agreement. G. At the discretion of the City, the Agency may be required to refund the balance of the special account to the City of Denton at the end of the Agency's fiscal year. • IL It will promptly pay all bills when submitted unless there is a discrepancy in a bill; O O any errors or discrepancies in bills shall be promptly reported to the Executive Director of Finance or their authorized representative for further direction. AAAn+:nD 6 0 0 ~I 1. It will appoint a representative who will be available to meet with the Executive Director of Finance and other City officials when requested. J. It will indemnify and hold harmless the City from any and all claims and suits arising out of the activities of the Agency, its employees, or contractors and save and hold the City harmless from all liability, including costs, expenses and attorneys fees, for or on account of, any claims, audit exceptions, suits, or damages of any character whatsoever resulting in whole or in part from the performance or omission of any act of any employee, agent or representative of the Agency, whether or not such claim arises from the sole negligence of City. K. It will submit to the City copies of year-end audited financial statements in accordance with the provisions hereof. It shall also submit to the City an annual report to include year-end statistics of the number of riders, fixed route by route, final financial data and other quantitative data enumerating milestones and accomplishments. The information in these reports should be as of September 30, 1996, 1997 and 1998, and should be submitted to the City no later than November 15, 1996, 1997 and 1998. L. It will maintain liability insurance in amounts not less than the statutorily required worker's compensation insurance, $500,000 in automobile liability insurance coverage, and $1,000,000 in general liability insurance coverage. It will name the City of Denton, Texas and the State of Texas as additional insurers on liability policies and shall provide City with certificates evidencing such coverage. Said policies shall not be cancelable unless 30 days written notice is given to City before carcellation. M. Agency shall submit its grant funds for the upcoming year no later than December J 31, 1995. N. Agency shall anticipate and be :,ctively involved in public hearings on the grant proposal. as required by the American with Disabilities Act and ridership input for system and route changes, at such times as required by law. 0. All requests for reimbursement shall be submitted to the City Manager no later than the seventh day of each month, The request should detail the number of service hours oprrated for both the demand response and fixed-route service. Reimbursement will be based upon the number of service hours multiplied by the 'fully allocated rate' determined annually by the City and Agency prior to October 1. Farebox revenue receipt figures shall also be included in each e billing statement, and documentation shall be provided to support such figures. In no event under the terms of this Agreement will the total compensation to be paid exceed the amount of the City's FTA and State grants, as outlined in the City's contracts with the State and the FTA. Farebox revenue receipt figures shall be included in each billing statement, and documentation shall be provided to support such figures. e P. Agency shall submit to the City copies of each accident report, the Police accident O O report, Agency accident report and indication of drug policy rction taken as soon as possible after the accident. A review of accidents will be conducted quarterly with the assistance of the City's Risk Manager. A,1AWAD 7 • • I' Q. Agency shall submit evidence of compliance with various federal and state regulations pursuant to City's request. R. The Agency agrees; 1. To comply with the Privacy Act of 1974, 5 U.S.C. § 552a and regulations thereunder, when performance under the Project involves the design, development, or operation of any system of records on individuals to be operated by the Agency, its third party contractors, sub-grantees, sub-recipients, or their employees to accomplish a Government function; I 2. To notify the Government when the Agency or any of its third party contractors, sub-grantees, sub-recipients, or their employees anticipates operating a system of records on behalf of the Government in order to implement the Project, if such system contains information about individuals retrievable by the individual's name or other identifier assigned to the individual. A system of records subject to the Act may no, be used in the performance of this Agreement until the necessary and applicable approval and publication requirements have been met. The Agency, its third party contractors, sub-grantees, sub-recipients, and their employees agree to correct, maintain, disseminate, and ase such records in accordance with the terms of the Act, and to comply with all applicable terms of the Act; 3. To include in every solicitation and in every third party contract, sub-grant, and sub-agreement when the performance of work under that proposed third party contract, sub- grant, or sub-agreement may involve the design, development, or operation of a system of records on individuals to be operated under that third party contract, sub-grant, or sub-agreement to accomplish a Government junction, a P3:vacy Act notification informing the third party J contractor, sub-grantee, or sub-recipient that it will be required to design, develop, or operate a system of records on individuals to accomplish a Government function subject to the Privacy Act of 1974, 5 U. 3,C. § 552a, and Federal agency regulations, and that a violation of the Act may involve the imposition of criminal penalties; and 4. To include the text of Subsections 125.c (l) through 125.c (4) of Part 11 of the City's Agreement with the Goventmeni, in all third party contracts, sub-grants, and sub- agreements under which work for this Agreement is performed or which is awarded pursuant to this Agreement or which may involve the design, development, or operation of such a system of records on behalf of the Government. • S. Prohibition of Crugs. The Agency agrees to comply with the following regulations: UMTA regulations, "Control of Drug Usc in Mass Transportation Operations," 49 C.F.R. Part 653; Department of Transportation regulations, "Drug Free Workplace Requirements (Grants)," 49 C. F. R. Part 29, Subpart F; and Department of Transportation regulations, "Procedures for Transportation Workplace Drug Testing Programs," 49 C.F.R. Part 40, and "Qualification of Drivers," 49 C.F.R. Part 391, Subpart h. ® s c Agency shall obtain from its third parry contractors, sub-grantees, and sub-recipients certifications required by Department of Transportation regulations, "Government-wide Debarment and Suspension (Non-procurement)," 49 C.F.R. Part 29, and otherwise comply with the requirements of those regulations. AAAorAD 8 • • T. Agency acknowledges that if it makes a false, fictitious, or fraudulent claim, statement, submission, or certification to the Government in connection with this Project, the Government reserves the right to pursue the procedures and impose on the Agency the penalties of 18 U.S.C. § 1001, 31 U.S.C. 231 and 3801 et eq., and/or 49 U.S.C. app. § 1607(h), and may be deemed by the Government to be appropriate. The terms of Department of Transportation regulations, "Program Fraud Civil Remedies," 49 C.F.R. Part 31, are applicable to this Project. III. TIME OF PERE-QRI%IANCE The services funded by the City shall be undertaken by the Agency within the following time frame: (Date of Award) through September 30, 1999. IV. METHOD OF PAYMENT A. Payment by the City for services provided hereunder shall be requested by the Agency by letter addressed to: City of Denton, 215 East McKinney, Denton, Texas 76201, Attn: City Manager's Office. B. Agency shall make each request for payment in accordance with the provisions herein and all requests for payment shall be submitted to the City Manager. C. The City shall submit a request for payment to the FTA. Within three (3) working lays of receiving reim6)ursement from the FTA, the City shall send payment to the Agency. D. It is expressly understood and agreed that (i) the funds payable under this Agreement are subject to receipt of monies from the State of Texas and the PTA. Should the funds be curtailed, or should the City be required to curtail its fundir3, City shall have the right to terminate this Agreement immediately without penalty. In no event under the terms of this Agreement will the total compensation to be paid excved the amount of the City's FTA and State grants, as outlined in the Citv's contracts with the State and the FTA. It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of the City of Denton. E. The City shall not be obligated or liable under this contract to any party other than the Agency for payment of any monies or provision of any goods or services. V. EVALUATIQN ® The Agency agrees to participate in an implementation and maintenance system whereby • O its services can be continuously monitored. The Agency agrees to make available its financial records for review by the City at the City's discretion. In addition, the Agency agrees to provide the City copies of the following data and reports: uno nD 9 ,y • • _ I I A. All external or internal audits. Agency shall submit a copy of the annual independent audit to City within ten (10) days of receipt. B. All external or internal evaluation reports, C. Agency shall submit quarterly financial statements to City in January, April, July, and September. Each statement shall in Jude expenses and income for the preceding quarter and shall identify the number of participants in each transportation program the agency operates. Agency shall submit such statements not later than the fifteenth day of the month following the end of each quarter. VI. DIRECTORS' MEETINGS During the term of this Agreement, the Agency shall cause to be delivered to the City copies of all notices of meetings of its Board of Directors, setting forth the time and place thereof. Such notice shall be delivered to the City in a timely manner to give adequate notice, and shall include an agenda and a brief description of the matters to be discussed. Agency understands and agrees that City representatives shall be afforded access to all Board of Directors' meetings. Minutes of all meetings of the Agency's governing body shalt be submitted to the City within ten (10) working days of approval. VII. SUSPENSION OR TERMINATION The City may suspend or terminate this Agreement and payments to the Agency, in whole or pan, for cause. Cause sha;l include but not be limited to the following: A. Agency's improper, misuse, or inept use of funds, B, Agency's failure to comply with the terms and conditions of this Agreement; C. Agency's submissioi A data or reports that are incorrect cr incomplete in any material respect; D. Appointment )f a trustee, receiver or liquidator for all or a substantial part of the Agency's property, or in litution of bankruptcy, reorganization, rearrangement of or liquidation proceedings by or against the Agency; or E. If for any reason the carrying out of this Agreement is rendered impossible or infeasible. • In case of suspension, the City shall advise the Agency, in writing, as to conditions • • precedent to the resumption of funding and specify a reasonab?e data for compliance. AAA032AD 10 0 I I In case of termination, the Agency will remit to the City any unexpended City funds. Acceptance of these funds shall not constitute a waiver of any claim the City may otherwise have ,.rising out of this Agreement. VIII. EQUAL OPPORTUNITY A. Agency will submit for City approval a written plan for compliance with the Equal Employment and Affirmative Action Federal provisions, within one h indred twenty (120) days of the effective date of this Agreement. B. Agency shall comply with all applicable equal employment opportunity and affirmative action laws or regulations. C. Agency will furnish all information and reports r.quested by the City, and will permit access to its books, records, and accounts for purposes of investigation to ascertain compliance with local, state and Federal rules and regulations. D. In the event of the Agency's non-compliance with the Federal non-discrimination requirements, the Agreement may be cancelled, terminated, or suspended in whole or in pzrt, and the Agency may be barred from further contracts with the City. IX. Q#2--1CT F Il VEREST A. The Agency covenants that neither it nor any member of its governing body presently has any interest, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed under this Agreement. The Agency further covenants that in the performance of this Agreement, no person having such interest shall be employed or appointed as a member of its governing body. B. The Agency further covenants that no member of its governing body or its staff, subcjntractors or employees shall possess any interest in or use his position for a purpose that is c; gives the appearance of being motivated by desire for private gain for himself, or others, particularly those with which he has family, business, or other ties. C. No officer, member, or employee of the City and no member of its governing body who exercises any function or responsibilities in the review or approval of the undertaking or 9 canying out of this Agreement shall (1) partrcipa;o in any decision relating to the Agreement which affects his personal interest or the interest in any corporation, partnership, or association in which he has direct or indirect interest; or (2) have any interest. direct or indirect, in this Agreement or the proceeds thereof. X. NEPOTISM Agency shall not employ in any paid capacity any person who is a member of the immediate family of any person who is currently employed by Agency, or is a member of Agency's governing board. The term "member of immediate family" includes: wife, husband, A.MJR.4D I 10 0 • son, daughter, mother, father, brother, sister, in-laws, auto, uncle, nephew, niece, step-parent, step-child, half-brothet and hall- sister. XI. SPFCIAL CONDITION A. Agency agrees to undertake, carry out, and complete the Project consistent with the terms and conditions determired by the Secretary of Labor to be fair and equitable to protect the interests of employees affected by the Project and meet requirements of Section 13(c) of Federal Transit Act, as amended, C) U.S.C. App. Section 1609(c), and Department of Labor (DOL) guidelines set forth in 29 C.F.R. Part 21°. These terms and conditions are identified in the letter of certification from DOL to FTA whose date is set forth in the Notification of Grant Approval to the City. The Agency agrees to carry out the Grant in compliance with the con- ditions stated in Viat DOL letter. That letter and any documents cited in the letter are incorporated herein by ref:rence and made part of this Grant. B. Ag,:ncy agr&.,s to comply with the requiiements of Section 8 of the Federal Transit Act, as amend •d, 49 U.S.C. App. Section 1607, and any implementing regulations that may be issued thereunder. C. Agency agrees that it will utilize its administrative process to solicit and consider public comment prior to raising fares or implementing a major reduction of service. D. Agency agrees that the Federal Government and the City may, at least annually and more frequently in its discretion, either conduct or require the Agency to have independently conducted, reviews and audits as the Government may deem rp propriate pursuant to the provisions of Section 9(g) of the Federal Transit Act, as amended, t9 U.S C. App. Section 1607a(g), and any regulations or guidelines that may be issued by the ernment. E. Agency agrees and assures that the rates charged elderly and handr_ Aped persons during nonpeak hours for transportation utilizing or involving the facilities and equipment financed pursuant to this Agreement will not exceed one-half of the rates generally applicable to other persons at peak hours, whether the operation of such facilities and equipment is b) the Agency or is by another entity under lease or otherwise. The Agency agrees and assures th d it will give the rate required herein to any person presenting a Medicare card duly issued to that person pursuant to Title 11 or Title XVIII of the Social Security Act. F. Agency agrees to comply with applicable Buy America statutory and regulatory provisions. The Agency may, without prior approval, procure an associated capital maintenance item eligible under Section 90) of the Federal Transit Act, 49 U.S.C. App. Section 1607ao), by contract directly with the original manufacturer or supplier of the item to be replaced, provided that the Agency first certifies in writing to the Government that: (1) such manufacturer or supplier is the only source of such item; and (2) the price of such item is no higher than the 8 price paid for such item by like customers. O O 0. Agency shall implement a project management plan, as approved by the Federal Government, in accordance with the requirements of Section 23 of the Federal Transit Act, as AAA02AD 12 ..rrr.rrr- 0 0 amended, 49 U.S.C. App. Section 1619, and any implementing regulations that may be there- under. XI1. ADDITIONAL COVENANTS OF AGENCY A. Definitions. As used in this section: 1. Agreement means any Grant Agreement or Cooperative Agreement. f 2. t.4plication means the signed and (fated proposal as may be amended for Federal financial assistance for the Project, together with all explanatory, supporting, and supplementary documents heretofore filed with and accepted and approved by the Government (UbITA) by or on behalf of the Agency. 3. Approval, Authorization, Concurrence, Waiver means a conscious written act by an authorized official of the UMTA and City granting permission to the Agency to perform or omit an action pursuant to this Agreement, which action may not be performed or omitted without such permission, An approval, authorization, concurrence, or waiver permitting the performance or omission of a specific action shall not constitute permission to perform or omit other sip liar actions unless such permission is clearly stated. Oral permission or interpretations have no legal force or effect. 4. UMTA Directive includes the most recent circulares, notices, and orders that present information about UMTA programs, application processing procedures, and guidance for administering approved Projects; there are also Department of Transportation directives that may be applicable to the Project. 5. Government means the United States of America, or its cognizant agency, the Department of Transportation (DCT), or its operating administration, the Urban Mass Transportation Administration (UMTA), used herein interchangeably. 6. Mass Transportation includes pub] c transportation and means transportation by bus, rail or other conveyance, either publicly or privately owned, the t provides general or special transportation service (but not including school bus, charter or sigl:.seeing service) to the public on a regular and continuing basis. 0 7. Proeec means the task or set of tasks provided for in the Project Budget which the Agency undertakes to perform pursuant to this Agreement. r 8. Project or Program Budget means the most recently dated statement, approved by the Government, of the estimated total cost of the Project or Program, the items to be deducted from such total in order to calculate the estimated net Project cost, the maximum o amount of Federal assistance for which the Agency, through the City, is currently eligible, the V specific items (including contingencies and relocation) for which the total may be spent, and the estimated cost of each of such items. Y AAAmIno 13 rrlYres~~ISYef~lc' • 9. Secretary means Secretary of the Department of Transportation or his or her duly authorized designee. 10. UMTA means the Urban Mass Transportation Administration of the U.S. Department of Transportation. 11. City means City of Denton, Texas. B. In the performance of its obligations pursuant to this Agreement, the Agency agrees to comply with all applicable provisions of Federal, State, and local laws, regulations, and UMTA directives. The Agency understands and agrees that Federal laws, regulations, policies, and related administrative practices in force and made applicable to this Agreement on the date of execution may be modified from time to time, and that the most recent of such provisions will govern administration of this Agreement at any particular tune, except if there is sufficient evidence in the Agreement of a contrary intent. Such contrary intent might be evidenced by express language in any amendments to the Agreement. Likewise, new Federal laws, regula- tions, policies and administrative practices may be established after the date of execution and thereafter be applied to this Agreement. As may be necessary to achieve compliance with these requirements, the Agency shall include notice of such requirements in all third party contracts, sub-grants, and other sub-assistance agreements financed with Government (UMTA) assistance. All limits or standards set forth in this Agreement to be observed in the performance of the Project are minimum requirements. If there is a conflict between Federal and State or local requirements, the Agency shall inform the City and the Government (UMTA) in order that an appropriate resolution may be arranged. C. Agency shall submit to the City such data, reports, records, contracts, and other documents relating to the Project as the City may, during the course of the Project and for three ears thereafter, require. The Agency shall retain intact, for three years following Project close- out, all Project documents, financial records, and supporting documents and make these records available to the City as the City may require. D. Agency shall immediately notify the City of any change in law, conditions, or any other event that may significantly affect its ability to perform the Project in accordance with the terms of this Agreement. In addition, thz Agency shall immediately notify the City of any decision pertaining to the Agency's conduct of litigation that may affect the City's interests in the Project or the City's administration or enforcement of applicable Federal laws or regulations. • Before the Agency may join the City as a named party to litigation, for any reason, the Agency agrees to first inform the City; this proviso applies to any type of litigation whatsoever, in any forum. E. Absent the express, written consent of the Government or the City and notwithstand- ing any concurrence by the Government in or approval of the award of any contract or ® subcontract or the solicitation thereof, neither the Government nor the City shall be subject to O O any obligations or liabilities by contractors of the City or their subcontractors or any other person not a patty to this Agreement in connection with the performance of this Project. AAAMAD 13 C ~ _.......-mom • • F. Agency shall prepare and maintain a Project Budget. A copy of the said budget shall be submitted to the City by March I of each year. The Agency shall carry out the Project and shall incur obligations against and make disbursements of Project funds only inconformity with the latest approved budget for the Project. The Project Budget may be revised, from time to time, to the extent permitted by and in conformance with the requirements of the Government. G. Agency shall establish and maintain either a separate set of accounts or accounts, within the framework of an established and approved accounting system, for the Project in a manner consistent with 49 C.F.R. § 18.20, or OMB Circular A-110, as amended, as may be applicable, 11. Consistent with the provisions of 49 C.F.R. § 18.21, or OMB Circular A-110, as amended, as may be applicable, the Agency shall record in the Project Account, and deposit in a bank or trust company all Project payments it receives from the City pursuant to this Agreement and all other funds provided for, accruing to, or otherwise received on account of the Project, (Project Funds). A separate bank account may be required when drawdowrns are made by letter of credit. The Agency is encouraged to use banks that are owned at least 50 percent by minority group members. 1. Expenditures made by the Agency shall be reimbursable as allowable costs to the extent that they meet all the requirements set forth below. They must; 1. Conform with the Project Description and the Project Budget and all other terms of the Agreement; J 2. Be necessary in order to accotr.plish the Project; 3. Be reasonable in amount for the goods or services purchased; 4. Be actual net costs to the. Agency (i.e., the price paid minus any refunds, rebates, or other items of value received by the Agency that have the effect of reducing the cost actually incurred, excluding Program Income); 5. Be incurred (and be for work performed) after the date of this Agreement, unless specific au horization from the Government (UMTA) or the City to the contrary is received; 41 6. Unless permitted otherwise by Federal statute or regulation, conform with Federal guidelines or regulations and Federal cost principles as set forth in the standards of OMB Circular A-122, Revised, "Cost Principles for Nonprofit Organizations," and the standards of 48 C.F.R. Part 31 are applicable; 7. Be satisfactorily documented; and • 8. Be treated uniformly and consistently under accounting principles and procedures approved and prescribed by the Government or City for the Agency; and those approved or prescribed by the Agency for its contractors. AAA032AD 15 I!F r , • • E J. All costs charged to the Project, including any approved services contributed by the Agency or others, shall be supported by properly executed payrolls, time records, invoices, contracts, or vouchers evidencing in detail the nature and propriety of the charges. The Agency shall also maintain accurate records of all Project Funds derived from the implementation of the Project. K, Any check or order drawn by the Agency with respect to any item that is or will be `f chargeable against the Project Account will be drawn only in accordance with a properly signed voucher then on file in the office of the Agency stating in proper detail the purpose for which such check or order is drawn. All checks, payrolls, invoices, contracts, vouchers, orders, or other accounting documents pertaining in whole or in -art to the Project shall be clearly identified, readily accessible, and, to the extent feasible, kept separate and apart from all other such documents. L. The Agency shall permit the Secretary and the Comptroiler General of the United States, or any of their duly authorized representatives to inspect all work, materials, payrolls, and other data and records with regard to the I-roject, and to audit the books, records, and accounts of the Agency and its contractors with regard to the Project, In the case of contracts awarded under other than competitive bidding procedures as defined by the Secretary of Transportation, the Agency shall require those contractors to permit the Secretary of Transportation and the Comptroller General of the United States, or any of their duly authorized representatives to inspect all work, materials, payi Als, and other data and records with regard to the Project, and to a,ldit the books, records, ant accounts pertaining to such contracts with regard to the Project. If the City is found to be responsible for meeting the audit requirements of 49 C.F.R. § 18.26 and OMB Circular A-128 or any revision or supplement thereto, the Agency shall comply with these requests. The Agency is responsible for obtaining any audits required by the Government (UMTA). Closeout of the Project will not alter the Agency's audit responsibilities. 1. The Agency shall report its cash disbursements and balances in a timely manner aF required by the City or Government. 2. The Agency shall provide for effective control and accountability for all Project funds consistent with Federal requirements and procedures for use of the letter of credit. 3. The Agency shall impose on its sub-recipients all applicable requirements of • Subsections 105.b. (1) (a), (b), and (c) of Pan 11 of this Agreement. r M. Neither the Agency nor any sub-recipient may use Federal assistance funds for publicity or propaganda purposes designed to support or defeat legislation pending before Congress. • N. Agency agrees that: • • 1. Any interest earned by the Agency on Federal funds must be remitted to the Government, except as provided by the Intergovemmentai Coop.:ration Act, 31 U.S.C. § 6503(a), or the Indian Self-Determination Act, 23 U.S.C. § 450. AAk012AD 16 • • s 2. Upon notice by the Government (UMTA) to the City of specific amounts due the Government, the Agency shall promptly remit any excess payment of amounts or disallowed costs to the Government (UMTA), including any interest due thereon. 0. The Agency ecognizcs that the Government (UMTA) reserves the right to deobligate unspent Federal funds orior to Project closeout, if such occurs, City may terminate this Agreement without pcne. ty. P. Agency agrees that, upon written notice, the City may suspend or termmr;e all or part of the financial assistance provided herein if the Agency is, or has been, in violation ai the terms of this Agreement, or if the Government or the City determines that the purposes of the statute under which the Project is authorized would not be adzquately served by continuation of Federal financial assistance for the Project. Any failure to make reasonable progress or other violation of the Agreement that significantly endangers substantial performance of the Project shall be deemed to be a breach of this Agreement. If the Agency's failure either to make adequate progress or to make reasonable use of the Project real property, facilities, or equipment, or to honor the terms of this Agreement is determined by the City to be willful or unreasonable, the City reserves the right to require the Agency to refund to the City the entire amount of Project funds provided by the City or any lesser amount as may be determined by the City. Q. Within 30 days of the termination of this Agreement, the Agency shall submit a final Financial Status Report (Standard Form 269), a certification or summary of Project expenses, and third party audit reports, as applicable. Agency agrees that either the Government (UMTA) or an agency designated by the Government (UMTA) will perform a final audit of the Project to determine the allow ability of costs incurred to determine settlement of the Federal assistance for the Project in accordance with Pan 1 of this Agreement. If City has made payments to the Agency in excess of the total amount of the Federal assistance due, the Agency shall promptly remit to the City that excess and interest as may be required by Subsections 105.b. and 105.e. of Part 11 of the City's Agreement with the Government. Project closeout occurs when the City notifies die Agency and forwards the final Federal assistance payment or when the Agency's remittance of the proper refund has been acknowledged by the City. Project closeout shall not invalidate any continuing obligations imposed on the Agency by this Agreement or by the City's final notification or acknowledgment. R. The following conditions are applicable to real property, equipment, and supplies financed under this Agreement: r I . The Agency agrees to observe the property management standards set forth in 49 C.F.R. 18.31, 18.32, and 18.33, or OMd Circular A-110, Attachment N, as appropriate, as now or hereafter amended, and any guidelines or regulations that the Government may issue. Exceptions to the requirements of 49 C.F.R. 18.31, 18.32, and 18.33, and to OhIB Circular t9 A-110, Attachment N must be specifically approved by the City. The City reserves the right to require the Agency to transfer title to any equipment financed with Federal assistance made available by this Agreement as set forth in 49 C.F.R. § 18,32(8) or OMB Circular A•110, Attachment N, as may be appropriate. The City also reserves the right to direct the disposition of real property or equipment financed with Federal assistance funds made available under this A.uod:AO 17 C • • Agreement, asset forth in 49 C.F.R. 18.31 and 18.32 or OMB Circular A-110, Attachment N, as may be applicable. 2. The Agency agrees to maintain the Project real property, equipment, and supplies in good operating order, and in accordance with any guidelines, directives, or regulations that UMTA may issue. If, during the period, any Project real estate, equipment, or supplies are not used in mass transportation service, whether by planned withdrawal, misuse or casualty loss, the Agency shall immediately notify the City. Unless otherwise approved, the Agency shall remit to the City a proportional amount of the fair market value, if any, of the real property, equipment, or supplies whose aggregate value exceeds $5,000, which value shall be determined on the basis of the ratio of the Federal assistance awarded by the Government to the actual cost of the Project. The following guidelines shall be followed in determining the fair market value. Unless otherwise approved in writing by UMTA, the fair market value of equipment and supplies will be the value of that property at the time immediately before the reason occurred that prompted the decision to withdraw that property from transit use, For example, in the event of loss of or damage to the property by casualty or fire, tee fair market value of the property will be calculated immediately before the loss or damage, inesp ctive of the extent of insurance coverage. In the case of equipment and supplies, fair market value shall be based on straight line depreciation of the equipment and supplies, based on the industry standaru' for useful life, irrespective of the reason for withdrawal of that property from !ramsit use. In the case of real property, the fair market value shall be determined by competent appraisal based on an appropriate date as determined by the Government consistent with the standards of 49 C.F.R. Part 24. The City, however, reserves the right to require another method of valuation to be used if the Government (UMTA) finds that special circumstances so require to assure the protection of the Federal investment. In unusual circumstances, the Agency may request that another reasonable method of determining fair market value be used, including but not limitei to accelerated depreciation, comparable sales, or established market values. In determining whether to approve an alternate method, the City may consider any action taken, omission made or unfortunate occurrence suffered by the Agency with respect to the preservation or conservation of the value of the real property, equipment, or supplies that, for any reason, have been withdrawn from service. 3. The Agency furthei agrees that the Project real property, equipment, and 1 supplies shalt be used for t1•a provi-:on of mass transportation set ice within the area and in the manner set for th in the Project Description. Should the Agency unreasonably e. lay in or refrain from using Project real estate or equipment, in the manner set forth in the Project Descriptio., the City reserves the right to require the Agency to return the entire amount of the Federal assistance expended on that real estate or equipment. rate Agency shall keep satisfactory records r with regard to the use of the real property, equipment, and supplies, and submit to the City upon i request such information as may be required to assure compliance with this `,ection and shall immediately notify the City in all cases in which Project real property, equipment, or supplies are used in a manner substantially different from what is set forth in the Project Description. >s The City reserves the right to require cite Agency to restore Project real property, equipment, i~ O v or supplies or pay for damage to Project re•t1 property, equipment, or supplies as a result of JI abuse or misuse of such property with the Agency's knowledge and consent. AAAO32AD 18 • • S. Agency may not c?.acute any transfer of title, lease, lien, pledge, morgage, encumbrance, contract, grant anticipation note, alienation, or other obligation that in any way affects the Federal interest in a..y Project real property or equipment, nor may the Agency obligate itself, in any oVher manner, to any third party with respect to Project real property or equipment, unless such transfer of title, lease, lien, pledge, mortgage, encumbrance, contract, grant anticipation note, alienation, or other obligation is expressly authorized in writing by the City and Government (UMTA); nor may the Agency, by any act or omission, adversely affect the Federal interest or impair the Agency's continuing control over the use of Project real property or equipment. T. Civil Rights 1. Equal Employment Opportunity - The following requirements are applicable to the Project: (a) In connection with Project implementation, the Agency may not discriminate against any employee or applicant for employment because of race, color, age, creed, sex, or national origin. The Agency shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, age, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Agency shall insert the foregoing provision (modified only to show the pardcular contractual relationship) in all of its contracts in connection with the develop- ment or operation of the Project, except contracts for standard commercidl supplies or raw materials and constiwlion contracts, and shall require all such contractors to insert a similar provision in all subcontracts, except subcontracts for standard commercial supplies or raw materials. (b) If, as a condition of assistance, the Agency has submitted, and the City has approved, an equal employment opportunity program that the Agency agrees to carry out, such program is incorporated into this Agreement by reference. Such program shall be treated as a contractual obligation; and failure to carry out the terms of that equal employment opportunity program shall be treated as a violation of this Agreement. Upon notification to the Agency of its failure to carry out the approved program, the Government or the City will impose such remedies as it may deem appropriate, which remedies may include termination of financial • assistance as set forth in Section 106 of Part It of the City's Agreement with the Government or other measures that may affect the ability of the Agency to obtain future financial assistance under the Urban Mass Transportation Act of 1964, as amended, or title 23, United States Code (Highways). 2. Small, Minority and Women's Business Enterprise. The following provisions P are applicable to the Project: • p (a) The Agency shall be responsible for meeting the requirements regarding participation by oilnority business enterprises (MBE) in Department of Transportation programs AAA032AD 19 • • set forth at 49 C.F. R. Part 23. Pursuant to the requirements of 49 C.F.R. § 23.43, the following clauses must be inserted in each third party contract: (i) POLICY. IT IS THE POLICY OF THE DEPARTMENT OF TRANS- PORTATION THAT MINORITY BUSINESS ENTERPRISES, AS DEFINED IN 49 C.F.R. PART 23, SHALL HAVE THE MAXIMUM OPPORTUNITY TO PARTICIPATE IN THE PERFORMANCE OF CONTRACTS FINANCED IN WHOLE OR IN PART WITH FEDERAL. FUNDS UNDER THIS AGREEMENT. CONSEQUENTLY, THE MBE REQUIREMENTS OF 49 C. F,R. PART 23 APPLY f TO THIS AGREEMENT. (ii) MBE OBLIGATION. THE AGENCY AND ITS CONTRACTORS AGREE TO ENSURE THAT MINORITY BUSINESS ENTERPRISES AS DEFINED IN 49 C.F. R. PART 23 HAVE THE MAXIMUM OPPORTUNITY TO PARTICIPATE IN THE PERFORMANCE OF CONTRACTS AND SUBCON- TRACTS FINANCED IN WHOLE OR IN PART WITH FEDERAL FUNDS j PROVIDED UNDER THIS AGREEMENT. IN THIS REGARD ALL AGENCIES AND CONTRACTORS SHALL TAKE ALL NECESSARY AND REASONABLE STEPS IN ACCORDANCE WITH 49 C.F.R. PART 23 TO ENSURE THAT MINORITY BUSINESS ENTERPRISES HAVE THE MAXIMUM OPPORTUNITY TO CrMPETE FOR AND PERFORM CONTRACTS. AGENCY AND ITS CONTRACTORS SHALL NOT DISCRIMINATE ON THE BASIS OF RACE, COLOR, NATIONAL ORIGIN OR SEX IN THE AWARD AND PERFORMANCE OF CONTRACTS ASSISTED BY THE DEPARTMENT OF TRANSPORTATION. (b) The Agency shall advise each sub-recipient, contractor, and subcontractor that failure to carry out the requirements set forth in 49 C.F.R. § 23.43(a) shall constitute a breach of contract and, after the notification of the Department of Transportation, may result in termination of the Agrecwent or contract by the Agency or such remedy as the Agency deems appropriate. (c) The Agency shall take action concerning lessees as follows: (i) The Agency shall not exclude MBEs from participation in business opportunities by entering into long-term, exclusive agreements with non-MBEs for the operation of major transportation-related activities for the provision of goods and services to the facility • or to the public on the facility. (ii) If the Agency is required to submit affirmative action programs under 49 C.F.R. § 23.41(a)(2) or 49 C.F.R. § 23.41(a)(3) and has business opportunities for lessees, it shall submit for approval to the Department of Transportation with its programs overall goals for the participation as lessees of firms owned and controlled by MBEs. These ® goals shall be for a specified period of time and shall be baud on the factors listed in 49 C.F.R. • O § 23.45 (g)(5). The Agency shall review these goals at least annually, and whenever they expire, analyzing projected versus actual MBE participation during the period covered by the review and any changes in factual circumstances affecting the selection of goals. Following each review, the Agency sball submit new overall goals to the Department of Transportation for AAAD3:AD 20 • • approval. If Agency fails to meet its goals for MBE lessees, it shall demonstrate to the City and the Government in writing that it made reasonable efforts to meet the goals. (iii) Except as provided in this section, the Agency is required to include lessees in affirmative action programs. Lessees themselves are not subject to the requirements of this Pan, except for the requirement under 49 C.F.R. § 23.7 that lessees avoid discrimination against MBEs. 3. Title VI Civil Rights Act of 1964. The Agency shall comply and shall assure the compliance by contractors and subcontractors under this Project with all requirements of Title VI of the Civil Rights Act of 1964, 42 U.S.C. § 2000d; Department of Transportation regulations, "Nondiscrimination in Federally-Assisted Programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act," 49 C.F.R. Part 21; and the Assurance by the Agency pursuant thereto. 4. Nondiscrimination on the Basis of Handicap. The Agency shall ensure that all fixed facility construction or alteration and all new equipment included in the Project shall comply with Department of Transportation regulations, "Nondiscrimination on the Basis of Handicap in Programs and Activities, Receiving or Benefitting from Federal Financial Assistance," 49 C.F.R. Part 27, and UNITA regulations, "Transportation for Elderly and Handicapped Persons," 49 C.F.R. Part 609, and any amendments thereto that may be issued. 5. Competition in Procurement. The Agency agrees to comply with the Procurement Standards requirements set forth at 49 C.F.R. § 18.36 or OMB Circular A-110, Attachment O, as may be applicable; and with any supplementary directives or regulations J including USITA Circular 4220.1B; and any revisions thereof, as may be applicable. UbITA reserves the right to review the Agency's technical specifications and requirements, where such review is necessary for proper Project administration. The Agency further agrees that, notwith- standing the requirements of Section l21 of Part 11 of the City's Agreement with the Government, no Federal funds shall be used to support procurements utilizing exclusionary or discriminatory specifications, G. Force Account. The City and Government (UhITA) reserves the right to determine the extent of its participation in force account costs. 7. Settlement of Third Party Contract Disputes or Breaches. The U.S. Government • has a vested interest in the settlement of any dispute, default, or breach involving any federally- assisted third party contract. Agency agrees that the Government retains the right to a proportionate share, based on the percentage of the Federal share committed to the Project, of any proceeds derived from any third party recovery. Therefore the Agency sbafl avail itself of all legal rights available under any third party contract. The Agency shall notify the City and Government of any current or prospective litigation or major disputed claim pertaining to any third party contract. The City and Government reserves the right to concur in any compromise p or w1ement of any claim by the Agency involving any third party contract. If the third party cont: pct contains a liquidated damages provision, any liquidated damages recovered shall be credited to the Project account involved unless the Government permits otherwise. In the event the Agency wishes to join the Government as a named party to litigation, for any reason, the AAA012AD 21 0 0 • Agency agrees to inform the City Government before doing so; this proviso applies to any type of litigation whatsoever, in any forum. 8. Ethics. The Agency shall maintain a written code or standards of conduct that shall govern the performance of its officers, employees, board members, or agents engaged in the award and administration of contracts supported by Federal funds. Such code or standards shall provide that no employee, officer, board member, or agent of the Agency may participate in the selection, award, or administration of a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when any of the parties set forth below has a financial or other interest in the firm selected for award: (i) The employee, officer, board member, or agent; (ii) Any member of his or her immediate family; (iii) His or her partner; or (iv) An organization that employs, or is about to employ, any of the above. The code or standards shall also provide that the Agency's officers, employees, board members, or agents may neither solicit nor accept gratuities, favors or anything of monetary value from present or potential contractors or sub-recipients. The Agency may set minimum rules where the financial interest is not substantial or the gift is an unsolicited item of nominal intrinsic value. As permitted by State or local law or regulations, such code or standards shall provide for penalties, sanctions, or other disciplinary actions for violations by the Agency's officers, employees, board members, or agents, or by contractors or sub-recipients or their agents. 9. Interest of Members of or Delegates to Congress. No member of or delegate to the Congress of the United States shall be admitted to any share or pan of this Project or to any benefit therefrom. U. CONSTRUCTION CONTRACTS The following provisions are applicable to federally assisted construction contracts: • 1. Nondiscrimination. Pursuant to the regulations of the Secretary of Labor at 41 C.F.R. 60-1.4(b)(1) and 60-1.4(c): (a) The Agency hereby agrees that it will incorporate or cause to be incorporated into any contract for construction work, or modification thereof, as defined in the regulations of the Secretary of Labor at 41 C.F.R. Chapter 60, that is paid for in whole or in • part with funds obtained from the Federal Government or borrowed on the credit of the Federal Q C Government pursuant to a grant, cooperative agreement, contract, loan, insurance, or guarantee, or undertaken pursuant to a Federal program involving the grant, cooperative agreement, contract, loan, insurance, or guarantee, the following equal opportunity clause; A+nar.AO 22 • • DURING THE PERFORMANCE OF THIS CONTRACT, THE CONTRACTOR AGREES AS FOLLOWS: (i) THE CONTRACTOR WILL NOT DISCRIMINATE AGAINST ANY EMPLOYEE OR APPLICANT FOR EMPLOYMENT BECAUSE OF RACE, COLOR, RELIGION, SEX, OR NATIONAL ORIGIN. THE CONTRACTOR WILL TAKE AFFIRMATIVE ACTION TO ENSURE THAT APPLICANTS ARE EMPLOYED, AND THAT EMPLOYEES ARE TREATED DURING EMPLOY- MENT WITHOUT REGARD TO THEIR RACE, COLOR, RELIGION, SEX, OR NATIONAL ORIGIN. SUCH ACTION SHALL INCLUDE, BUT NOT BE LIMITED TO THE FOLLOWING: EMPLOYMENT, UPGRADING, DEMO- TION, OR TRANSFER; RECRUITMENT OR RECRUITMENT ADVERTISING; LAYOFF OR TERMINATION; RATES OF PAY OR OTHER FORMS OF COMPENSATION; AND SELECTION FOR TRAINING, INCLUDING APPRENTICESHIP. THE CONTRACTOR AGREES TO POST IN CONSPICU- OUS PLACES, AVAILABLE TO EMPLOYEES AND APPLICANTS FOR EMPLOYMENT, NOTICES TO BE PROVIDED SETTING FORTH 711E PRO- VISIONS OF THIS NONDISCRIMINATION CLAUSE. (ii) THE CONTRACTOR WILL, IN ALL SOLICITATIONS OR ADVER- TISEMENTS FOR EMPLOYEES PLACED BY OR ON BEHALF OF THE CONTRACTOR, STATE THAT ALL QUALIFIED APPLICANTS WILL RECEIVE CONSIDERATION FOR EMPLOYMENT WITHOUT REGARD TO RACE, COLOR, RELIGION, SEX, OR NATIONAL ORIGIN. (iii) THE CONTRACTOR WILL SEND TO EACH LABOR UNION OR REPRESENTATIVE OF WORKERS WITH WHICH IT HAS A COLLECTIVE BARGAINING AGREEMENT OR OTHER CONTRACTOR UNDERSTANDING, A NOTICE TO BE PROVIDED ADVISING THE LABOR UNION OR WORK- ERS' REPRESENTATIVEOF THE CONTRACTOR'S COMMITMENTS UNDER SECTION 202 OF EXECUTIVE ORDER 11246 OF SEPTEMBER 24, 1965, AND SHALL POST COPIES OF THE NOTICE IN CONSPICUOUS PLACFS AVAILABLE TO EMPLOYEES AND APPLICANTS FOR EMPLOYMENT. (iv) THE CONTRACTOR WILL COMPLY WITH ALL PROVISIONS OF EXECUTIVE ORDER 11246 OF SEPTEMBER 24, 1965, AND OF THE RULES, REGULATIONS, AND RELEVANT ORDERS OF THE SECRETARY OF LABOR. (v) THE CONTRACTOR WILL FURNISH ALL INFORMATION AND REPORTS REQUIRED BY EXECUTIVE ORDER 11246 OF SEPTEMBER 24, 1965, AND BY THE RULES, REGULATIONS, AND ORDERS OF THE SECRETARY OF LABOR, OR PURSUANT THERETO, AND WILL PERMIT O O ACCESS TO ITS BOOKS, RECORDS AND ACCOUNTS BY THE SECRETARY OF LABOR AND UAITA FOR PURPOSES OF INVESTIGATION TO ASCER- TAIN COMPLIANCE 'WITH SUCH RULES, REGULATIONS, AND ORDERS. AAAMAD 2J I • e s (vi)IN THE EVENT OFTHE CONTRACTOR'S NONCOMPLIANCE WITH THE NONDISCRIMINATION CLAUSES OF THIS AGREEMENT OR WITH ANY OF SUCH RULES, REGULATIONS, OR ORDERS, THIS AGREEMENT MAYBE CANCELLED, TERMINATED, OR SUSPENDED IN WHOLE OR IN PART AND THE CONTRACTOR MAY BE DECLARED INELIGIBLE FOR FURTHER FEDERAL OR FEDERALLY ASSISTED CONTRACTS IN ACCOR- DANCE WITH PROCEDURES AUTHORIZED IN EXECUTIVE ORDER 11246 OF SEPTEMBER 24, 1965, AND SUCH OTHER SANCTIONS MAY BE IMPOSED AND REMEDIES INVOKED AS PROVIDED IN EXECUTIVE ORDER 11246 OF SEPTEMBER 24, 1965, OR BY RULE, REGULATION, OR ORDER OF THE SECRETARY OF LABOR, OR AS OTHERWISE PROVIDED BY LAW. (vii) THE CONTRACTOR WILL INCLUDE THE PROVISIONS OF PARA- GRAPHS (a) THROUGH (g) OF THIS SUBSECTION IN EVERY SUBCON- TRACT OR PURCHASE ORDER UNLESS EXEMPTED BY RULES, REGULA- TIONS, OR ORDERS OF THE SECRETARY OF LABOR ISSUED PURSUANT TO SECTION 204 OF EXECUTIVE ORDER 11246 OF SEPTEMBER 24, 1965, SO THAT SUCH PROVISIONS SHALL BE BINDING UPON EACH SUBCON- TRACTOR OR VENDOR. THE CONTRACTOR WILL TAKE SUCH ACTION WITH RESPECT TO ANY SUBCONTRACT. OR PURCHASE ORDER AS THE SECRETARY OF LABOR OR UhITA MAY DIRECT AS A MEANS OF ENFORCING SUCH PROVISIONS, INCLUDING SANCTIONS FOR NONCOM- PLIANCE; PROVIDED, HOWEVER. THAT IF A CONTRACTOR BECOMES INVOLVED IN, OR IS THREATENED WITH, LITIGATION WITH A SUBCON- TRACTOR OR VENDOR AS A RESULT OF SUCH DIRECTION, THE CONTRACTOR MAY REQUEST THE UNITED STATES TO ENTER INTO SUCH LITIGATION TO PROTECT THE INTERESTS OF THE UNITED STATES. (b) The Agency shall assure that each nonexempt prime contractor and subcontractor shall include in each nonexempt contract the requirements of Subsection 115. a. (1) (a) through (g) of Part II of this Agreement, (c) The Agency further agrees that it will be bound by this equal opportunity r clause with respect to its own employment practices when it participates in federally assisted e construction work; provided that if the Agency so participating is a State or local government, this equal opportunity clause does not apply to any agency, instrumentality or subdivision of f I such government that does not participate in work under the Agreement. f (d) The Agency agrees that it will assist and cooperate actively with UMTA JJ1 and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with ® the equal opportunity clause and the rules, regulations, and relevant orders of the Secretary of ® @ Labor. that it will provide UMTA and the Secretary of Labor such information as they may require for the supervision of such compliance; and that it will otherwise assist UMTA in dis- charging its primary responsibility for securing compliance. tin ±xn 24 0 e e (e) The Agency further agrees that it will refrain from entering into any contract or contract modification subject to Executive Order 11246 of September 24, 1965, as amended, with any contractor that is debarred from or has not demonstrated eligibility for Gov- ernment contracts and federally assisted construction contracts pursuant to the Executive Order; and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon contractors and subcontractors by UMTA or the Secretary of Labor pursuant to Part 11, Subpart D of the Executive Order. In addition, the Agency agrees that if it fails or refuses to comply with these undertakings, UMTA may take any or all of the following actions: Cancel, terminate, or suspend in whole or in part this Agreement; refrain from extending any further assistance to the Agency under the program with respect to which the failure or refusal occurred until satisfactory assurance of future compliance has been received from such Agency; and refer the case to the Department of Justice for appropriate legal prorxdings. 2. Sp~cificatioo The Agency hereby agrees that it will incorporate or cause to be incorporated the specifications set forth below into all Federal or federally assisted construction contracts, or modifications thereof, in excess of $10,000 to be performed in geographical areas designated by the Director, Office of Federal Contract Compliance Programs of the Department of Labor pursuant to the regulations of the Secretary of Labor at 41 C.F.R. § 60-4.3 and in construction subcontucts iii excess of $10,000 necessary in whole or in part to the performance of noa:onstruction Federal contracts and subcontracts covered under Executive Order 11246: STANDARD FEDERAL EQUAL EMPLOYMENT OPPORTUNITY CONSTRUC- TION CONTRACT SPECIFICATIONS (EXECUTIVE ORDER 11246): (l) AS USED IN THESE SPECIFICATIONS: (a) "COVERED AREA" MEANS THE GEOGRAPHICAL AREA DE- SCRIBED IN THE SOLICITATION FROM WHICH THIS CONTRACT RESULTED; (b) "DIRECTOR" MEANS DIRECTOR, OFFICE OF FEDERAL CONTRACT COMPLIANCE PROGRAMS, UNITED STATES DEPARTMENT OF LABOR, OR ANY PERSON TO WHOM THE DIRECTOR DELEGATES • AUTHORITY; (c) "EMPLOYER IDENTIFICATION NUMBER" ?BEANS THE ~ FEDERAL SOCIAL SECURITY NUMBER USED ON THE EMPLOYER'S QUARTERLY FEDERAL TAX RETURN, U.S. TREASURY DEPARTMENT FORM 941; • (d) "MINORITY" INCLUDES: O (i) BLACK (ALL PERSONS HAVING ORIGINS IN ANY OF THE BLACK AFRICAN RACIAL GROUPS NOT OF HISPANIC ORIGIN); AA km2AD 25 • • « • (ii) HISPANIC (ALL PERSONS OF MEXICAN, PUERTO RICAN, CUBAN, CENTRAL OR SOUTH AMERICAN OR OTHER SPANISH CULTURE OR ORIGIN, REGARDLESS OF RACE); (iii) ASIAN AND PACIFIC ISLANDER (ALL PERSONS HAVING ORIGINS IN ANY OF THE ORIGINAL PEOPLES OF THE FAR EAST, SOUTHEAST ASIA, THE INDIAN SUBCONTINENT, OR THE PACIFIC ISLANDS); AND (iv) AMERICAN INDIAN OR ALASKAN NATIVE (ALL PERSONS HAVING ORIGINS IN ANY OF THE ORIGINAL PEOPLES OF NORTH AMERICA AND MAINTAINING IDENTIFIABLE TRIBAL AFFILIA- TIONS THROUGH MEMBERSHIP AND PARTICIPATION OR COMMUNITY IDENTIFICATION). (2) WHENEVER THE CONTRACTOR, OR ANY SUBCONTRACTOR AT ANY TIER, SUBCONTRACTS A PORTION OF THE WORK INVOLVING ANY CONSTRUCTION TRADE, 11' SHALL PHYSICALLY INCLUDE IN EACH SUBCONTRACT IN EXCESS OF $10,000 THE PROVISIONS OF THESE SPECIFICATIONS AND THE NOTICE WHICH CONTAINS THE APPLICABLE GOALS FOR MINORITY AND FEMALE PARTICIPATION AND WHICH IS SET FORTH IN THE SOLICITATIONS FROM WHICH THIS CONTRACT RESULTED. (3) IF THE CONTRACTOR IS PARTICIPATING (PURSUANT TO 41 J C.F.R. § 60-4.5) IN A HOMETOWN PLAN APPROVED BY THE U.S. DEPARTMENT OF LABOR IN THE COVERED AREA, EITHER INDIVIDUAL- LY OR THROUGH AN ASSOCIATION, ITS AFFIRMATIVE ACTION OBLIGATIONS ON ALL WORK IN THE PLAN AREA (INCLUDING GOALS AND TIMETABLES) SHALL BE IN ACCORDANCE WITH THAT PLAN FOR THOSE TRADES WHICH HAVE UNIONS PARTICIPATING IN THE PLAN. CONTRACTORS MUST BE ABLE TO DEMONSTRATE THEIR PARTICIPA- TION IN AND COMPLIANCE WITH THE PROVISIONS OF ANY SUCH HOMETOWN PLAN. EACH CONTRACTOR OR SUBCONTRACTOR PARTICIPATING IN AN APPROVED PLAN IS INDIVIDUALLY REQUIRED • TO COMPLY WITH ITS OBLIGATIONS UNDER THE EEO CLAUSE, AND TO MAKE A GOOD FAITH EFFORT TO ACHIEVE EACH GOAL UNDER THE PLAN IN EACH TRADE IN WHICH IT HAS EMPLOYEES. THE OVERALL GOOD FAITH PERFORMANCE BY OTHER CONTRACTORS OR SUBCON- TRACTORS TOWARD A GOAL. IN AN APPROVED PLAN DOES NOT EXCUSE ANY COVERED CONTRACTOR'S OR SUBCONTRACTOR'S FAILURE TO MAKE GOOD FAITH EFFORTS TO ACHIEVE THE PLAN ® GOALS AND TIMETABLES. I~ O tl (4) THE CONTRACTOR SHALL IMPLEMENT THE SPECIFIC AFFIR- MATIVE ACTION STANDARDS PROVIDED IN PARAGRAPHS (7) (a) THROUGH (p) OF THESE SPECIFICATIONS. THE GOALS SET FORTH IN AAAO?:AD 26 -0 =2=0060aft" --I e THE SOLICITATION FROM WHICH THIS CONTRACT RESULTED ARE EX- PRESSED AS PERCENTAGES OF THE TOTAL HOURS OF EMPLOYMENT AND TRAINING OF MINORITY AND FEMALE UTILIZATION THE CONTRACTOR SHOULD REASONABLY BE ABLE TO ACHIEVE IN EACH CONSTRUCTION TRADE IN WHICH jr HAS EMPLOYEES IN THE COV- ERED AREA. COVERED CONSTRUCTION CONTRACTORS PERFORMING CONSTRUCTION WORK IN GEOGRAPHICAL AREAS WHERE THEY DO NOT HAVE A FEDERAL OZ FEDERALLY ASSISTED CONSTRUCTION CONTRACT SHALL APPLY THE MINORITY AND FEMALE GOALS ESTABLISHED FOR THE GEOGRAPHICAL, AREA WHERE THE WORK IS BEING PERFORMED. GOALS ARE PUBLISHED PERIODICALLY IN THE FEDERAL REGISTER IN NOTICE FORM, AND SUCH NOTICES MAY BE OBTAINED FROM ANY OFFICE OF FEDERAL CONTRACT COMPLIANCE PROGRAMS OFFICE OR FROM FEDERAL PROCUREMENT CONTRACTING OFFICERS. THE CONTRACTOR IS EXPECTED TO MAKE SUBSTANTIALLY UNIFORM PROGRESS TOWARD ITS GOAL IN EACH CRAFT DURING THE PERIOD SPECIFIED. (5) NEITHER THE PROVISIONS OF ANY COLLECTIVE BARGAINING AGREEMENT, NOR THE FAILURE BY A UNION WITH WHOM THE CONTRACTOR HAS A COLLECTIVE BARGAINING AGREEMENT, TO REFER EITHER MINORITIES OR WOMEN SHALL EXCUSE THE CONTRAC- TOR'S OBLIGATIONS UNDER THESE SPECIFICATIONS, EXECUTIVE ORDER 11246, OR THE REGULATIONS PROMULGATED PURSUANT THERETO. (6) IN ORDER FOR THE NONWORKING TRAINING HOURS OF APPRENTICES AND TRAINEES TO BE COUNTED IN MEETING THE GOALS, SUCH APPRENTICES AND TRAINEES MUST BE EMPLOYED BY THE CONTRACTOR DURING THE TRAINING PERIOD, AND THE CON. TRACTOR MUST HAVE MADE A COMMITMENT TO EMPLOY THE APPRENTICES AND TRAINEES AT THE COMPLETION OF THEIR TRAIN- ING, SUBJECT TO THE AVAILABILITY OF EMPLOYMENT OPPORTUNI- TIES. TRAINEES MUST BE TRAINED PURSUANT TO TRAINING PRO- GRAMS APPROVED BY THE U.S. DEPARTMENT OF LABOR. (7) THE CONTRACTOR SHALL TAKE SPECIFIC AFFIRMATIVE ACTIONS TO ENSURE EQUAL EMPLOYMENT OPPORTUNITY. THE EVALUATION OF THE CONTRACTOR'S COMPLIANCE WITH THESE SPECIFICATIONS SHALL BE BASED UPON ITS EFFORT TO ACHIEVE MAXIMUM RESULTS FROM ITS ACTIONS. THE. CONTRACTOR SHALL DOCUMENT THESE EFFORTS FULLY, AND SHALL IMPLEMENT AFFIR- 0 MATIVE ACTION STEPS AT LEAST AS EXTENSIVE AS THE FOLLOWING: A (a) ENSURE AND MAINTAIN A WORKING ENVIRONMENT FREE OF HARASSMENT, INTIMIDATION, AND COERCION AT ALL SITES, AND IN ALL FACILITIES AT WHICH THE CONTRACTOR'S EMPLOYEES ARE AAAMAD 27 • • ASSIGNED TO WORK. THE CONTRACTOR, WHERE POSSIBLE, WILL ASSIGN TWO OR MORE WOMEN TO EACH CONSTRUCTION PROJECT. THE CONTRACTOR SHALL SPECIFICALLY ENSURE THAT ALL FOREMEN, SUPERINTENDENTS, AND OTHER ON-SITE SUPERVISORY PERSONNEL ARE AWARE OF AND CARRY OUT THE CONTRACTOR'S OBLIGATION TO MAINTAIN SUCH A WORKING ENVIRONMENT, WITH SPECIFIC ATTCN- TION TO MINORITY OR FEMALE INDIVIDUALS WORKING AT SUCH SITES OR IN SUCH FACILITIES. (b) ESTABLISH AND MAINTAIN A CURRENT LIST OF MINORI- TY AND FEMALE RECRUITMENT SOURCES, PROVIDE WRITTEN NOTICE TO MINORITY AND FEMALE RECRUITMENT SOURCES AND TO COMMU- NITY ORGANIZATIONS WHEN THE CONTRACTOR OR ITS UNIONS HAVE EMPLOYMENT OPPORTUNITIES AVAILABLE, AND MAINTAIN A RECORD OF THE ORGANIZATIONS' RESPONSES. (c) MAINTAIN A CURRENT FILE OF THE NAMES, ADDRESSES AND TELEPHONE NUMBERS OF EACH MINORITY AND FEMALE OFF- THE-STREET APPLICANT AND MINORITY OR FEMALE REFERRAL FROM A UNION, A RECRUITMENT SOURCE OR COMMUNITY ORGANIZATION AND OF WHAT ACTION WAS TAKEN WITH RESPECT TO EACH SUCH INDIVIDUAL. IF SUCH INDIVIDUAL WAS SENT TO THE UNION HIRING HALL FOR REFERRAL AND WAS NOT REFERRED BACK TO THE CONTRACTOR BY THE UNION OR, IF REFERRED, NOT EMPLOYED BY THE CONTRACTOR, THIS SHALL BE DOCUMENTED IN THE FILE WITH J THE REASON THEREFOR, ALONG WITH WHATEVER ADDITIONAL ACTIONS THE CONTRACTOR MAY HAVE TAKEN. (d) PROVIDE IMMEDIATE WRITTEN NOTIFICATION TO THE DIRECTOR WHEN THE UNION OR UNIONS WITH WHICH THE CONTRAC- TOR HAS A COLLECTIVE BARGAINING AGREEMENT HAS NOT RE- FERRED TO THE CONTRACTOR A MINORITY PERSON OR WOMAN SENT BY THE CONTRACTOR, OR WHEN THE CONTRACTOR HAS OTHER INFORMATION THAT THE UNION REFERRAL PROCESS HAS IMPEDED THE CONTRACTOR'S EFFORTS TO MEET ITS OBLIGATIONS. (e) DEVELOP ON-THE-JOB TRAINING OPPORTUNITIES ANDIOR PARTICIPATE IN TRAINING PROGRAMS FOR THE AREA WHICH EXPRESS- LY INCLUDE MINORITIES AND WOMEN, INCLUDING UPGRADING PROGRAMS AND APPRENTICESHIP AND TRAINEE PROGRAMS RELEVANT TO THE CONTRACTOR'S EMPLOYMENT NEEDS, ESPECIALLY THOSE PROGRAMS FUNDED OR APPROVED BY THE DEPARTMENT OF LABOR. • THE CONTRACTOR SHALL PROVIDE NOTICE OF THESE PROGRAMS TO • THE SOURCES COMPILED UNDER (7)(b) ABOVE. (1) DISSEMINATE THE CONTRACTOR'S EEO POLICY BY PROVIDING NOTICE OF THE POLICY TO UNIONS AND TRAINING AAAWZAD 28 • a PROGRAMS AND REQUESTING THEIR COOPERATION IN ASSISTING THE CONTRACTOR IN MEETING ITS EEO OBLIGATIONS; BY INCLUDING IT IN ANY POLICY MANUALAND COLLECTIVE BARGAINING AGREEMENT; BY PUBLICIZING IT IN THE COMPANY NEWSPAPER, ANNUAL REPORT, ETC.; BY SPECIFIC REVIEW OF THE POLICY WITH ALL MANAGEMENT PERSONNEL AND WITH ALL MINORITY AND FEMALE EMPLOYEES AT LEAST ONCE A YEAR, AND BY POSTING THE COMPANY EEO POLICY ON j BULLETIN BOARDS ACCESSIBLE TO ALL EMPLOYEES AT EACH LOCATION WHERE CONSTRUCTION WORK IS PERFORMED. (g) REVIEW, AT LEAST ANNUALLY, THE COMPANY'S EEO POLICY AND AFFIRMATIVE ACTION OBLIGATIONS UNDER THESE SPECIFICATIONS WITH ALL EMPLOYEES HAVING RESPONSIBILITY FOR HIRING, ASSIGNMENT, LAYOFF, TERMINATION OR OTHER EMPLOY- MENT DECISIONS INCLUDING SPECIFIC REVIEW OF THESE ITEMS WITH ON-SITE SUPERVISORY PERSONNEL SUCH AS SUPERINTENDENTS, GENERAL FOREMAN, ETC., PRIOR TO THE INITIATION OF CONSTRUC- TION WORK AT ANY JOB SITE. A WRITTEN RECORD SHALL BE MADE AND MAINTAINED IDENTIFYING THE TIME AND PLACE OF THESE MEETINGS, PERSONS ATTENDING, SUBJECT MATTER DISCUSSED, AND DISPOSITION OF THE SUBJECT MATTER. (h) DISSEMINATE THE CONTRACTOR'S EEO POLICY EXTER- NALLY BY INCLUDING IT IN ANY ADVERTISING IN THE NEWS MEDIA, SPECIFICALLY INCLUDING MINORITY AND FEMALE NEWS MEDIA, AND D PROVIDING WRITTEN NOTIFICATION TO AND DISCUSSING THE CONTRACTOR'S EEO POLICY WITH OTHER CONTRACTORS AND SUBCONTRACTORS WITH WHOM THE CONTRACTOR DOES OR ANTICI- PATES DOING BUSINESS. (i) DIRECT RECRUITMENT EFFORTS, BOTH ORAL AND WRITTEN, TO MINORITY, FEMALE AND COMMUNITY ORGANIZATIONS, TO SCHOOLS WITH MINORITY AND FEMALE STUDENTS AND TO MINORITY AND FEMALE RECRUITMENT AND TRAINING ORGANIZA- TIONS SERVING THE CONTRACTOR'S RECRUITMENT AREA AND EMPLOYMENT NEEDS. NOT LATER THAN ONE MONTH PRIOR TO THE DATE FOR THE ACCEPTANCE OF APPLICATIONS FOR APPRENTICESHIP OR OTHER TRAINING BY ANY RECRUITMENT SOURCE, THE CONTRAC- TOR SHALL SEND WRITTEN NOTICE TO ORGANIZATIONS SUCH AS THE ABOVE, DESCRIBING THE OPENINGS, SCREENING PROCEDURES, AND TESTS TO BE USED IN THE SELECTION PROCESS. • (j) ENCOURAGE PRESENT MINORITY AND FEMALE EMPLOY- • EES TO RECRUIT OTHER MINORITY PERSONS AND WOMEN AND, WHERE REASONABLE, PROVIDE AFTER SCHOOL, SUMMER AND VACATION EMPLOYMENT TO MINORITY AND FEMALE YOUTH, BOTH AAAW! ALD 29 s L ~ i e • r ON THE SITE AND IN OTHER AREAS OF THE CONTRACTOR'S WORK FORCE. (k) VALIDATE ALL TESTS AND OTHER SELECTION REQUIRE- MENTS WHERE THERE IS AN vBLIGATION TO DO SO UNDER 41 C.F.R. PART 60-3. (1) CONDUCT, AT LEAST ANNUALLY, AN INVENTORY AND EVALUATION AT LEAST OF ALL MINORITY AND FEMALE PERSONNEL FOR PROMOTIONAL OPPORTUNITIES AND ENCOURAGE TH ESE EMPLOY- EES TO SEEK OR TO PREPARE FOR, THROUGH APPROPRIATE TRAINING, ETC., SUCH OPPORTUNITIES. (m) ENSURE THAT SENIORITY PRACTICES, JOB CLASSIFICA- TIONS, WORK ASSIGNMENTS AND OTHER PERSONNEL PRACTICES DO NOT HAVE A DISCRIMINATORY EFFECT BY CONTINUALLY MONITOR- ING ALL PERSONNEL AND EMPLOYMENT RELATED ACTIVITIES TO ENSURE THAT THE EEO POLICY AND THE. CONTRACTOR'S OBLIGA- TIONS UNDER THESE SPECIFICATIONS ARE BEING CARRIED OUT. (n) ENSURE THAT ALL FACILITIES AND COMPANY ACTIVI- TIES ARE NONSEGREGATED EXCEPT THAT SEPARATE OR SINGLE-USER TOILET AND NECESSARY CHANGING FACILITIES SHALL BE PROVIDED TO ASSURE PRIVACY BETWEEN SEXES. (o) DOCUMENT AND MAINTAIN A RECORD OF ALL SOLICITA- TIONS OF OFFERS FOR SUBCONTRACTS FROM MINORITY AND FEMALE CONSTRUCTION CONTRACTORS AND SUPPLIERS, INCLUDING CIRCULA. TION OF SOLICITATIONS TO MINORITY AND FEMALE CONTRACTOR ASSOCIATIONS AND OTHER BUSINESS ASSOCIATIONS. (p) CONDUCT A REVIEW, AT LEAST ANNUALLY, OF ALI. SUPERVISORS' ADHERENCE TO AND PERFORMANCE UNDER TI{E 1 CONTRACTOR'S EEO POLICIES AND AFFIRMATIVE ACTION OBLIGA- TIONS. • (8) CONTRACTORS ARE ENCOURAGED TO PARTICIPATE IN VOLUNTARY ASSOCIATIONS THAT ASSIST IN FULFILLING ONE OR MORE OF THEIR AFFIRMATIVE ACTION OBLIGATIONS SET FORTH IN PARAGRAPHS (7) (a) THROUGH (p). THE EFFORTS OF A CONTRACTOR ASSOCIATION, JOINT CONTRACTOR-UNION, CONTRACTOR-COMMUNI- TY, OR OTHER SIMILAR GROUP OF WHICH THE CONTRACTOR IS A ® MEMBER AND PARTICIPANT, MAY BE ASSERTED AS FULFILLING ANY O a J ONE OR MORE OF ITS OBLIGATIONS UNDER PARAGRAPHS (7) (a) THROUGH (p) OF THESE SPECIFICATIONS, PROVIDED THAT THE CONTRACTOR ACTIVELY PARTICIPATES IN THE GROUP, MAKES EVERY EFFORT TO ASSURE THAT THE GROUP HAS A POSITIVE IMPACT ON THE AAAO):AD 30 • • EMPLOYMENT OF MINORITIES AND WOMEN IN THE INDUSTRY, ENSURES THAT THE CONCRETE BENEFITS OF THE PROGRAM ARE REFLECTED IN THE CONTRACTOR'S MINORITY AND FEMALE WORK FORCE PARTICIPATION, MAKES A GOOD FAITH EFFORT TO MEET ITS INDIVIDUAL GOALS AND TIMETABLES, AND CAN PROVIDE ACCESS TO DOCUMENTATION THAT DEMONSTRATES THE EFFECTIVENESS OF ACTIONS TAKEN ON BEHALF OF THE CONTRACTOR. THE OBLIGATION I TO COMPLY, HOWEVER, IS THE CONTRACTOR'S .AND FAILURE OF SUCH A GROUP TO FULFILL AN OBLIGATION SHALL NOT BE A DEFENSE FOR THE CONTRACTOR'S NONCOMPLIANCE. (9) A SINGLE GOAL FOR MINORITIES AND A SEPARATE SINGLE GOAL FOR WOMEN HAVE BEEN ESTABLISHED. THE CONTRACTOR, HOWEVER, IS REQUIRZI) TO PROVIDE EQUAL EMPLOYMENT OPPORTU- NITY AND TO TAKE AFFI U MATIVE ACTION FOR ALI, MINORITY GROUPS, BOTH MALE. AND FEMALE, AND ALL WOMEN, BOTH MINORI- TY AND NON-MINORITY. CONSEQUENTLY, THE CONTRACTOR MAY BE IN VIOLATION 0:• THE EXECUTIVE ORDER IF A PARTICULAR GROUP IS EMPLOYED IN A SUBSTANTIALLY DISPARATE MANNER (EVEN THOUGH THE CONTRACTOR HAS ACHIEVED ITS GOAL FOR WOMEN GENERALLY, THE CONTRACTOR MAY BE IN VIOLATION OF THE EXECUTIVE ORDER IF A SPECIFIC MINORITY GROUP OF WOMEN IS UNDERUTILIZED). (10) THE CONTRACTOR SHALL NOT USE THE GOALS AND TIMETA- BLES OR AFFIRMATIVE ACTION STANDARDS TO DISCRIMINATE AGAINST ANY PERSON BECAUSE OF RACE, COLOR, RELIGION, SEX, OR NATIONAL ORIGIN. (11) THE CONTRACTOR SH"LL NOT ENTER INTO ANY SUBCON- TRACT WITH ANY PERSON OR FIPM DEBARRED FROM GOVERNMENT CONTRACTS PURSUANT TO EXECUTIVE ORDER 11246. (12) THE CONTRACTOR SHALL CARRY OUT SUCH SANCTIONS AND 1 PENALTIES FOR VIOLATION OF THESE SPECIFICATIONS AND OF THE EQUAL OPPORTUNITY CLAUSE, INCLUDING SUSPENSION, TERMINA- TION AND CANCELLATION OF EXISTING SUBCONTRACTS AS MAY BE • IMPOSED OR ORDERED PURSUANT TO EXECUTIVE ORDER 11246, AS AMENDED, AND ITS IMPLEMENTING REGULATIONS, BY THE OFFICE OF FEDERAL CONTRACT COMPLIANCE PROGRAMS. ANY CONTRACTOR WHO FAILS TO CARRY OUT SUCH SANCTIONS AND PENALTIES SHALL BE IN VIOLATION OF THESE SPECIFICATIONS AND EXECUTIVE ORDER 11246, AS AMENDED. 8 O 0 (13) THE CONTRACTOR, IN FULFILLING ITS OBLIGATIONS UNDER THESE SPECIFICATIONS, SHALL IMPLEMENT SPECIFIC AFFIRMATIVE ACTION STEPS, AT LEAST AS EXTENSIVE AS THOSE STANDARDS PRESCRIBED IN PARAGRAPH (7) OF THESE SPECIFICATIONS, SO AS TO AA 032AD 31 • • ACHIEVE MAXIMUM RESULTS FROM ITS EFFORTS TO ENSURE EQUAL EMPLOYMENT OPPORTUNITY. IF THE CONTRACTOR FALLS TO COMPLY WITH THE REQUIREMENTS OF THE EXECUTIVE ORDER, THE IbIPLE- MENTING REGULATIONS, OR THESE SPECIFICATIONS, THE DIRECTOR SHALL PROCEED IN ACCORDANCE WITH 41 C.F.R. § 60-4.8. (14) THE CONTRACTOR SHALL DESIGNATE A RESPONSIBLE OFFICIAL TO MONITOR ALL EMPLOYMENT RELATED ACTIVITY TO ENSURE THAT THE COMPANY EEO POLICY IS BEING CARRIED OUT, TO SUBMIT REPORTS RELATING TO THE PROVISIONS HEREOF AS MAY BE REQUIRED BY THE GOVERNMENT AND TO KEEP RECORDS. RECORDS SHALL AT LEAST INCLUDE FOR EACH EMPLOYEE THE NAME, AD- DRESS, TELEPHONE NUMBERS, CONSTRUCTION TRADE, UNION AFFILI- ATION IF ANY, EMPLOYEE IDENTIFICATION NUMBER WHEN ASSIGNED, SOCIAL SECURITY NUMBER, RACE, SEX, STATUS (E.G., MECHANIC, APPRENTICE TRAINEE, HELPER, OR LABORER), DATES OF CHANGES IN STATUS, HOURS WORKED PER WEEK IN THE INDICATED TRADE, RATE OF PAY, AND LOCATIONS AT WHICH THE WORK WAS PERFORMED. RECORDS SHAT T. BE MAINTAINED IN AN EASILY UNDERSTANDABLE AND RETRIEVE LE FORM; HOWEVER, TO THE EXTENT THAT EXISTING RECORDS SATISFY THIS REQUIREMENT, CONTRACTORS SHALL NOT BE REQUIRED TO MAINTAIN SEPARATE RECORDS. (IS) NOTHING HEREIN PROVIDED SHALL BE CONSTRUED AS A LIMITATION UPON THE APPLICATION OF OTHER LAWS THAT ESTAB- LISH DIFFERENT STANDARDS OF COMPLIANCE OR UPON THE APPLICA- TION OF REQUIREMENTS FOR THE HIRING OF LOCAL OR OTHER AREA RESIDENTS (E.G., THOSE UNDER THE PUBLIC WORKS EMPLOYMENT ACT OF 1977 AND THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM). 3. Notice. The Agency hereby agrees that it will ensure that the notice set forth below shall be included in, and shall be a part of, all solicitations for offers and bids on all 1 Federal and federally assisted construction contracts or subcontracts in excess of $10,000 to be ` performed in geographical areas designated by the Director, Office of Federal Contract Compliance Programs of the Department of Labor at 41 C.F.R. § 60-4.2: • NOTICE OF REQUIREMENT FOR AFFIRMATIVE ACTION TO ENSURE EQUAL EMPLOYMENT OPPORTUNITY (EXECUTIVE ORDER 11246): (1) THE OFFEROR'S OR BIDDER'S ATTENTION IS CALLED TO THE "EQUAL OPPORTUNITY CLAUSE" AND THE "STANDARD FEDERAL • EQUAL EMPLOYMENT SPECIFICATIONS" SET FORTH HEREIN. • O J (2) (a) THE GOALS AND THE TIMETABLES FOR MINORITY AND FEMALE PARTICIPATION, EXPRESSED IN PERCENTAGE TERMS FOR THE AAAO?2AD 32 • • CONTRACTOR'S AGGREGATE WORK FORCE IN EACH TRADE ON ALL CONSTRUCTION WORK IN THE COVERED AREA. ARE AS FOLLOWS: TIMETABLES GOALS FOR MINORITY GOALS FOR FEMALE PARTICIPATION IN PARTICIPATION IN EACH TRADE EACH TRADE INSERT GOALS FOR INSERT GOALS FOR EACH YEAR EACH YEAR (b) THESE GOALS ARE APPLICABLE TO ALL THE CONTRAC- TOR'S CONSTRUCTION WORK (WHETHER OR NOT IT IS FEDERAL OR FEDERALLY ASSISTED) PERFORMED IN THE COVERED AREA. IF THE CONTRACTOR PERFORMS CONSTRUC'T'ION WORK IN A GEOGRAPHICAL AREA LOCATED OUTSIDE OF THE COVERED AREA, IT SHALI, APPT j THE GOALS ESTABLISHED FOR SUCH GEOGRAPHICAL AREA WHERE THE WORK IS ACTUALLY PERFORMED. WITH REGARD TO THIS SECOND AREA, THE CONTRACTOR ALSO IS SUBJECT TO THE GOALS FOR BOTH ITS FEDERALLY INVOLVED AND NONFEDERALLY INVOLVED CONSTRUCTION. (c) THE CONTRACTOR'S COMPLIANCE WITH THE EXECU- TIVE ORDER AND THE REGULATIONS AT 41 C.F.R. PART 60-4 SHALL BE BASED ON ITS IMPLEMENTATION OF THE EQUAL OPPORTUNITY CLAUSE, SPECIFIC AFFIRMATIVE ACTION OBLIGATIONS REQUIRED BY THE SPECIFICATIONS SET FORTH AT 41 C.F.R. § 60-4.3(a), AND ITS EFFORTS TO MEET THE GOALS. THE HOURS OF MINORITY AND FFMALE EMPLOYMENT AND TRAINING MUST BE SUBSTANTIALLY UNIFORM THROUGHOUT THE LENGTH OF THE CONTRACT, AND IN EACH TRADE, AND THE CONTRACTOR SHALL MAKE A GOOD FAITH EFFORT TO EMPLOY MINORITIES AND WOMEN EVENLY ON EACH OF ITS PROJECTS. THE TRANSFER OF MINORITY OR FEMALE EMPLOYEES OR TRAINEES FROM CONTRACTOR TO CONTRACTOR OR FROM PROJECT TO PROJECT FOR THE SOLE PURPOSE OF MEETING THE CONTRACTOR'S GOALS SHALL BE A VIOLATION OF THE CONTRACT, THE EXECUTIVE • ORDER, AND THE REGULATION'S IN AT C.F.R. PART 60-4. COMPLIANCE WITH THE GOALS WILL BE MEASURED AGAINST THE TOTAL WORK HOURS PERFORMED. ' i (3) THE CONTRACTOR SHALL PROVIDE WRITTEN NOTIFICATION TO THE DIRECTOR OF THE OFFICE OF FEDERAL CONTRACT COMPLI- ANCE PROGRAMS WITHIN 10 WORKING DAYS OF AWARD OF ANY CONSTRUCTION SUBCONTRACT IN EXCESS OF $10,000AT ANY TIER FOR • O CONSTRUCTION WORK UNDER THE CONTRACT RESULTING FROM THIS SOLICITATION. THE NOTIFICATION SHALL LIST THE NAME, ADDRESS AND TELEPHONE NUMBER OF THE SUBCONTRACTOR; EMPLOYER AkAWZAAD 33 • Cam`. Y' . A • i IDENTIFICATION NUMBER OF THE SUBCONTRACTOR; ESTIMATED DOLLAR AMOUNT OF THE SUBCONTRACT; ESTIMATED STARTING AND COMPLETION DATES OF THE SUBCONTRACT; ANDTHE GEOGRAPHICAL AREA IN WHICH THE SUBCONTRACT IS TO BE PERFORMED. (4) AS USED IN THIS NOTICE, AND IN THE CONTRACT RESULTING FROM THIS SOLICITATION, THE "COVERED AREA" IS (INSERT DESCRIP- TION OF THE GEOGRAPHICAL AREAS WHERE THE CONTRACT IS TO BE PERFORMED, GIVING THE STATE, COUNTY AND CITY, IF ANY). 4. cc4mmodations for the Physically Handicapped. UhITA assisted construction, designs, and alterations shall be undertaken in accordance with and meet the requirements of the provisions of Generai Services Administration (GSA) regulations set forth at 41 C.F.R, Subpart 101.19.6, unless an exception is granted in writing by UMTA or a waiver is granted in writing by GSA. 5. Contract Security. The Agency shall follow the requirements of 49 C.F.R. § 18.36(h) or OMB Circular A-110, Attachment B, as applicable, and Federal (UMTA) guidelines with regard to bid guarantees and bonding requirements. 6. ins. The Agency shall cause to be erected at the site of construction, and maintained during construction, signs satisfactory to the Department of Transportation identifying the Project and indicating that the Government is participating in the development of the Project. 7. Safety Standards. Pursuant to section 107 of the Contract Work Hours and Safety Standards Act and Department of Labor regulations set forth at 29 C.F.R. § 1926, no laborer or mechanic working on a construction contract shall be required to work in surroundings or under working conditions that are unsanitary, hazardous, or dangerous to his or her health and safety as determined under construction and health standards promulgated by the Secretary of Labor. 8. Liquidated Damages. The Agency shall include in all contracts for construction a clause providing for liquidated damages, where appropriate. Liquidated damages clauses are appropriate if the parties may reasonably expect to suffer damages (increased costs on the Project involved) from the late completion of the construction and the extent or amount of such damages would be difficult or impossible to determine. The assessment for damages shall be ® at a specific rate per day for each doy of overrun in contract time; and the rate must be specified in the third party contract. Any liquidated damages recovered shall be credited to the Project account involved unless the Government permits otherwise. V. Pursuant to regulations set forth at 29 C.F.R. Part 5, the following provisions shall be incorporated in each construction contract of $25,000 let by the Agency in carrying out the o project. O 1. U1 NIMUM WAGES. AAA072Ab 34 s • (a) ALL LABORERS AND MECHANICS EMPLOYED OR WORKING UPON THE SITE OF THE WORK (OR UNDER THE UNITED STATES HOUSING ACT OF 1937 OR UNDER THE HOUSING ACT OF 1949 IN THE CONSTRUCTION OR DEVELOPMENT OF THE PROJECT), WILL BE PAID UNCONDITIONALLY AND NOT LESS OFTEN THAN ONCE A WEEK, AND WITHOUT SUBSEQUENT DEDUCTION OR REBATE ON ANY ACCOUNT (EXCEPT SUCH PAYROLI. DEDUCTIONS AS ARE PERMITTED BY REGULATIONS ISSUED BY THE SECRETARY OF LABOR UNDER THE COPELAND ACT, 29 C.F. R. PART 3), THE FULL AMOUNT OF WAGES AND BONA FIDE FRINGE BENEFITS (OR CAST{ EQUIVALENTS THEREOF) DUE AT THE TIME OF PAYMENT COMPUTED AT RATES NOT LESS THAN THOSE CONTAINED IN THE WAGE DETERMINATION OF THE SECRE- TARY OF LABOR WHICH IS ATTACHED HERETO AND MADE A PART HEREOF, REGARDLESS OF ANY CONTRACTUAL RELATIONSHIP WHICH MAY BE ALLEGED TO EXIST BETWEEN THE CONTRACTOR AND SUCH LABORERS AND MECHANICS. CONTRIBUTIONS MADE OR COSTS REASONABLY ANTICIPATED FOR BONA FIDE FRINGE BENEFITS UNDER SECTION 1(b) (2) OF THE DAVIS-BACON ACT ON BEHALF OF LABORERS OR MECHANICS ARE CONSIDERED WAGES PAID TO SUCH LABORERS OR MECHANICS, SUBJECT TO THE PROVISIONS OF 29 C.F.R. § 5.5(a)(1)(iv); ALSO, REGULAR CONTRIBUTIONS MADE OR COSTS INCURRED FOR MORE THAN A WEEKLY PERIOD (BUT NOT LESS OFTEN THAN QUAR- TERLY) UNDER PLANS, FUNDS, OR PROGRAMS THAT COVER THE PARTICULAR WEEKLY PERIOD, ARE DEEMED TO BE CONSTRUCTIVELY MADE OR INCURRED DURING SUCH WEEKLY PERIOD. SUCH LABORERS 7 AND MECHANICS SHALL BE PAID THE APPROPRIATE WAGE RATE AND FRINGE BENEFITS ON THE WAGE DETERMINATION FOR THE CLASSIFI- CATION OF WORK ACTUALLY PERFORMED, WITHOUT REGARD TO SKILL, EXCEPT AS PROVIDED AT 29 C.F.R. § 5.5(a)(4), LABORERS OR MECHANICS PERFORMING WORK IN NIORF, THAN ONE CLASSIFICATION MAY BE COMPENSATED AT THE RATE SPECIFIED FOR EACH CLASSIFI- CATION FOR THE TIME ACTUALLY WORKED THEREIN: PROVIDED, THAT THE EMPLOYER'S PAYROLL RECORDS ACCURATELY SET FORTH THE TIME SPENT IN EACH CLASSIFICATION IN WHICH WORK IS PERFORMED. THE WAGE DETERMINATION (INCLUDING ANY ADDI- TIONAL CLASSIFICATION AND WAGE RATES CONFORMED UNDER 29 • C.F.R. § 5.5(a) (U (ii) AND THE DAVIS-BACON POSTER (WH-1321) SHALL BE POSTED AT ALL TIMES BY THE CONTRACTOR AND ITS SUBCON- TRACTORS AT THE SITE OF THE WORK IN A PROMINENT AND ACCES- SIBLE PLACE WHERE IT CAN BE EASILY SEEN BY THE WORKERS. ® (b) 1. THE CONTRACTING OFFICER SHALL REQUIRE THAT ANY CLASS OF LABORERS OR MECHANICS THAT IS NOT LISTED IN THE f ~ O O WAGE DETERMINATION AND THAT IS TO BE EMPLOYED UNDER THE CONTRACT SHALL BE CLASSIFIED IN CONFORMANCE WITH THE WAGE DETERMINATION. THE CONTRACTING OFFICER SHALL APPROVE AN AAA031AD 35 C ~ • • I ADDITIONAL CLASSIFICATION AND WAGE RATE AND FRINGE BENEFITS THEREFOR ONLY WHEN THE FOLLOWING CRITERIA HAVE BEEN MET: a. THE WORK TO BE PERFORMED BY THE CLASSIFICA- Th)N REQUESTED IS NOT PERFORMED BY A CLASSIFICATION IN THE WAGE DETERMINATION; AND b. THE CLASSIFICATION IS UTILIZED IN THE AREA BY THE CONSTRUCTION INDUSTRY; AND C. THE PROPOSED WAGE RATE, INCLUDING ANY BONA FIDE FRINGE BENEFITS, BEARS A REASONABLE RELATIONSHIP TO THE WAGE RATES CONTAINED IN THE WAGE DETERMINATION. 2. IF THE CONTRACTOR AND THE LABORERS AND MECHANICS TO BE EMPLOYED IN THE CLASSIFICATION (IF KNOWN;, OR THEIR REPRESENTATIVFS, AND THE CONTRACTING OFFICER AGREE ON THE CLASSIFICATION AND WAGE RATE (INCLUDING THE AMOUNT DESIGNATED FOR FRINGE BENEFITS WHERE APPROPRIATE), A REPORT OF THE ACTION TAKEN SHALL BE SENT BY THE CONTRACTING OFFICER TO THE ADMINISTRATOR OF THE WAGE AND HOUR DIVISION, EMPLOYMENT STANDARDS ADMINISTRATION, U.S. DEPARTMENT OF LABOR, WASHINGTON, D.C. 20210. THE ADMINISTRATOR, OR AN AUTHORIZED REPRESENTATIVE, WILL APPROVE, MODIFY, OR DISAPPROVE EVERY ADDITIONAL CLASSIFICATION ACTION WITHIN 30 DAYS OF RECEIPT AND SO ADVISE THE CONTRACTING OFFICER OR WILL NOTIFY THE CONTRACTING OFFICER WITHIN THE 30-DAY PERIOD THAT ADDITIONAL TIME IS NECESSARY. 3. IN THE EVENT ;gE CONTRACTOR, LABORERS OR ME- CHANICS TO BE EMPLOYED IN THE CLASSIFICATION OR THEIR REPRESENTATIVES, AND THE CONTRACTING OFFICER DO NOT AGREE ON THE PROPOSED CLASSIFICATION AND WAGE RATE (INCLUDINGTHE AMOUNT DESIGNATED FOR FRINGE BENEFITS, WHERE APPROPRIATE), THE CONTRACTING OFFICER SHALL RF,FER THE QUESTIONS INCLUDING THE VIEWS OF ALL INTERESTED PARTIES AND THE RECOMMENDATION OF THE CONTRACTING OFFICER, TO THE ADMINISTRATOR FOR DETERMINATION. THE ADMINISTRATOR, OR AN AUTHORIZED REPRESENTATIVE, WILL ISSUE A DETERMINATION WITHIN 30 DAYS OF RECEIPT AND SO ADVISE THE CONTRACTING OFFICER OR WILL NOTIFY THE CONTRACTING OFFICER WITHIN THE 30-DAY PERIOD THAT ADDITIONAL TIME IS NECESSARY. • A • 4. THE WAGE RATE (INCLUDING FRINGE BENEFITS J WHERE APPROPRIATE) DETERMINED PURSUANT TO 29 C.F.R. § 5.5(a) (i) (1) (B) OR 29 C.F.R. § 5.5(a) (i) (1) (C), SHALL BE PAID TO ALL WORKERS PERFORMING WORK IN THE CLASSIFICATION UNDER THIS CONTRACT AAA03.AD 36 e s FROM THE FIRST DAY ON WHICH WORK IS PERFORMED IN THE CLASSIFICATION. (c) WHENEVER THE MINIMUM WAGE RATE PRESCRIBED IN THE CONTRACT FOR A CLASS OF LABORERS OR MECHANICS INCLUDES A FRINGE BENEFIT WHICH IS NOT EXPRESSED AS AN HOURLY RATE, T'HE CONTRACTOR SHALL EITHER PAY THE BENEFIT AS STATED IN THE WAGE DETERMINATION OR SHALL PAY ANOTHER BONA FIDE FRINGE BENEFIT OR AN HOURLY CASH EQUIVALENT THEREOF. (d) IF THE CONTRACTOR DOES NOT MAKE PAYMENTS TO A TRUSTEE OR OTHER THIRD PERSON, THE CONTRACTOR MAY CONSIDER AS PART OF THE WAGES OF ANY LABORER OR MECHANIC THE AMOUNT OF ANY COSTS REASONABLY ANTICIPATED IN PROVIDING BONA FIDE FRINGE BENEFITS UNDER A PLAN OR PROGRAM, PROVID- ED, THAT THE SECRETARY OF LABOR HAS FOUND, UPON THE WRITTEN REQUEST OF THE CONTRACTOR, THAT THE APPLICABLE STANDARDS OF THE DAVIS-BACON ACT HAVE BEEN MET. THE SECRETARY OF LABOR MAY REQUIRE THE CONTRACTOR TO SET ASIDE IN A SEPARATE ACCOUNT ASSETS FOR THE MEETING OF OBLIGATIONS UNDER THE PLAN OR PROGRAM. 2. WITHHOLDING, UMTA SHALL UPON ITS OWN ACTION OR UPON WRITTEN REQUEST OF AN AUTHORIZED REPRESENTATIVE OF THE DEPARTMENT OF LABOR WITHHOLD OR CAUSE TO BE WITHHELD D FROM THE CONTRACTOR, UNDER THIS AGREEMENT OR ANY OTHER FEDERAL CONTRACT WITH THE SAME AGENCY OR ANY OTHER FEDERALLY-ASSISTED CONTRACT SUBJECT TO DAVIS-BACON PREVAIL- ING WAGE REQUIREMENTS, WHICH IS WITHHELD BY THE SAME PRIME CONTRACTOR, SO MUCH OF THE ACCRUED PAYMENTS OR ADVANCES AS MAY BE CONSIDERED NECESSARY TO PAY LABORERS AND MECHANICS, INCLUDING APPRENTICES, TRAINEES, AND HELPERS, EMPLOYED BY THE CONTRACTOR ORANY SUBCONTRACTOR THE FULL AMOUNT OF WAGES REQUIRED BY THE CONTRACT. IN THE EVENT OF FAILURE TO PAY ANY LABORER OP. MECHANIC, INCLUDING ANY APPRENTICE, TRAINEE, OR HELPER, EMPLOYED OR WORKING ON THE e SITE OF THE WORK (OR UNDER THE UNITED STATES HOUSING ACT OF 1931 OR UNDER THE HOUSING ACT OF 1949 IN THE CONSTRUCTION OR DEVELOPMENT OF THE PROJECT), ALL OR PART OF THE WAGES REQUIRED BY THE CONTRACT, UMTA MAY, AFTER WRITTEN NOTICE TO THE CONTRACTOR, SPONSOR, APPLICANT, OR OWNER, TAKE SUCH ACTION AS MAY BE NECESSARY TO CAUSE THE SUSPENSION OF ANY e FURTHER PAYMENT, ADVANCE, OR GUARANTEE OF FUNDS UNTIL A SUCH VIOLATIONS HAVE CEASED. 3. PAYROLLS AND BASIC RECORDS. (a) PAYROLLS AND BASIC RECORDS RELATING THERETO SHALL BE MAINTAINED BY THE A.AA032AD 37 • • i CONTRACTOR DURING THE COURSE OF THE WORK AND PRESERVED FOR A PERIOD OF THREE YEARS THEREAFTER FOR ALL LABORERS AND MECHANICS WORKING AT THE SITE OF THE WORK (OR UNDER THE UNITED STATES HOUSING ACT OF 1937, OR UNDER THE HOUSING ACT OF 1949, IN THE CONSTRUCTION OR DEVELOPMENT OF THE PROJECT). SUCH RECORDS SHALL CONTAIN THE NAME, ADDRESS, AND SOCIAL SECURITY NUMBER OF EACH SUCH WORKER, HIS OR HER CORRECT CLASSIFICATION, HOURLY RATES OF WAGES PAID (INCLUDING RATES OF CONTRIBUTIONS OR COSTS ANTICIPATED FOR BONA FIDE FRINGE BENEFITS OR CASH EQUIVALENTS THEREOF OF THE TYPES DESCRIBED IN SECTION I(b) (2) (B) OF THE DAVIS-BACON ACT). DAILY AND WEEKLY NUMBER OF HOURS WORKED, DEDUCTIONS MADE AND ACTUAL WAGES PAID. WHENEVER THE SECRETARY OF LABOR HAS FOUND UNDER 29 C.F.R. § 5.5(a) (1) (iv) THAT THE WAGES OF ANY LABORER OR MECHANIC INCLUDE THE AMOUNT OF ANY COSTS REASONABLY ANTICIPATED IN PROVIDING BENEFITS UNDER A PLAN OR PROGRAM DESCRIBED IN SECTION I(b) (2) (B) OF THE DAVIS-BACON ACT, THE CONTRACTOR SHALL MAINTAIN RECORDS WHICH SHOW THAT THE COMMITMENT TO PROVIDE SUCH BENEFITS IS ENFORCE- ABLE, THAT THE PLAN OR PROGRAM IS FINANCIALLY RESPONSIBLE, AND THAT THE PLAN OR PROGRAM HAS BEEN COMMUNICATED IN WRITING TO THE LABORERS ORMECHANICS AFFECTED, AND RECORDS WHICH SHOW THE COSTS ANTICIPATED OR THE ACTUAL COSTS INCURRED IN PROVIDING SUCH BENEFITS. CONTRACTORS EMPLOYING APPRENTICES OR TRAINEES UNDER APPROVED PROGRAMS SHALL MAINTAIN WRITTEN EVIDENCE OF THE REGISTRATION OF APPREN- TICESHIP PROGRAMS AND CERTIFICATION OF TRAINEE PROGRAMS, THE REGISTRATION OF THE APPRENTICES AND TRAINEES, AND THE RATIOS AND WAGE RATES PRESCRIBED IN THE APPLICABLE PRO- GRAMS. (b) 1. THE CONTRACTOR SHALL SUBMIT WEEKLY FOR EACH WEEK IN WHICH ANY CONTRACT WORK IS PERFORMED A COPY OF ALL PAYROLLS TO UMTA IF UMTA IS A PARTY TO THE CONTRACT; BUT IF UMTA IS NOT SUCH A PARTY, THE CONTRACTOR WILL SUBMIT THE PAYROLLS TO THE APPLICANT, SPONSOR, OR OWNER, AS THE • CASE MAY BE, FOR TRANSMISSION TO UNITA. THE PAYROLLS SUBMITTED SHALL SET OUT ACCURATELY AND COMPLETELY ALL OF r THE INFORMATION REQUIRED TO BE MAINTAINED UNDER 29 C.F.R. § 5.5(a) (3) (i). THIS INFORMATION MAY BE SUBMITTED IN ANY FORM DESIRED. OPTIONAL FORM WH-347 IS AVAILABLE FOR THIS PURPOSE AND MAY BE PURCHASED FROM THE SUPERINTENDENT OF DOCU- 0 MENTS (FEDERAL STOCK NO. 029-005-00014-1), U.S. GOVERNMENT O 0 PRINTING OFFICE, WASHINGTON, D.C. 20402. THE PRIME CONTRACTOR IS RESPONSIBLE FOR THE SUBMISSION OF COPIES OF PAYROLLS BY ALL SUBCONTRACTORS. AAA6):AD 38 e e a 2. EACH PAYROLL SUBMITTED SHALL BE ACCOMPA- NIED BY A "STATEMENT OF COMPLIANCE," SIGNED BY THE CONTRAC- TOR OR SUBCONTRACTOR OR HIS OR HER AGENT WHO PAYS OR SUPERVISES THE PAYMENT OF THE PERSONS EMPLOYED UNDER THE CONTRACT AND SHALL CERTIFY THE FOLLOWING: (a) THAT THE PAYROLL FOR THE PAYROLL PERIOD CONTAINS THE INFORMATION REQUIRED TO BE MAINTAINED UNDER 29 C.F.R. § 5.5 (a) (3) (i) AND THAT SUCH INFORMATION IS CORRECT AND COMPLETE; (b) THAT EACH LABORER OR MECHANIC (IN- CLUDING EACH HELPER, APPRENTICE, AND TRAINEE) FMPLOYED ON THE CONTRACT DURING THE PAYROLL PERIOD HAS BEEN PAID THE FULL WEEKLY WAGES EARNED, WITHOUT REBATE, EITHER DIRECTLY OR INDIRECTLY, AND THAT NO DEDUCTIONS HAVE BEEN MADE EITHER DIRECTLY OR INDIRECTLY FROM THE FULL WAGES EARNED, OTHER THAN PERMISSIBLE DEDUCTIONS AS SET FORTH AT 29 C.F.R. PART 3; (c) THAT EACH LABORER OR MECHANIC HAS BEEN PAID NOT LESS THAN THE APPLICABLE WAGE RATES AND FRINGE BENEFITS OR CASH EQUIVALENTS FOR THE CLASSIFICATION OF WORK PERFORMED, AS SPECIFIED IN THE APPLICABLE WAGE DETERMINATION INCORPORATED INTO THE CONTRACT. 3. THE WEEKLY SUBMISSION OF A PROPERLY EXECUTED CERTIFICATION SET FORTH ON THE REVERSE SIDE OF OPTIONAL FORM WH-347 SHALL SATISFY THE REQUIREMENT FOR SUBMISSION OF THE "STATEMENT OF COMPLIANCE" REQUIRED BY 29 C.F.R. § 5.5(a) (3) (ii) (B). 4. THE FALSIFICATION OF ANY OF THE ABOVE CERTIFICATIONS MAY SUBJECT THE CONTRACTOR OR SUBCONTRAC- TOR TO CIVIL OR CRIMINAL PROSECUTION UNDER 18 U.S.C. § 1001 AND e 31 U.S.C. § 231. (c) THE CONTRACTOR OR SUBCONTRACTOR SHALL MAKE THE RECORDS REQUIRED UNDER 29 C.F.R. § 5.5(a) (3) (i) AVAILABLE FOR INSPECTION, COPYING, OR TRANSCRIPTION BY AUTHORIZED REPRESENTATIVES OF UMTA OR THE DEPARTMENT OF LABOR, AND SHALL PERMIT SUCH REPRESENTATIVES TO INTERVIEW EMPLOYEES e DURING WORKING HOURS ON THE JOB. IF THE CONTRACTOR OR A fD J SUBCONTRACTOR FAILS TO SUBMIT THE REQUIRED RECORDS OR MAKE THEM AVAILABLE, UAITA MAY, AFTER WRITTEN NOTICE TO THE CONTRACTOR, SPONSOR, APPLICANT, OR OWNER, TAKE SUCH ACTION AS MAY BE NECESSARY TO CAUSE THE SUSPENSION OF ANY FURTHER +osn~u 39 .1 • • k PAYMENT, ADVANCE, OR GUARANTEE OF FUNDS. FURTHERMORE, FAILURE TO SUBMIT THE REQUIRED RECORDS UPON REQUEST OR MAKE SUCH RECORDS AVAILABLE MAY BE GROUNDS FOR DEBARMENT ACTION PURSUANT TO 29 C.F.R, § 5.12. 4. APPRENTICES AND TRAINEES. (a) APPRENTICES. APPRENTICES WILL BE PERMITTED TO WORK AT LESS THAN THE PREDETERMINED RATE FOR THE WORK THEY PERFORMED WHEN THEY ARE EMPLOYED PURSUANT TO AND INDIVIDUALLY REGISTERED IN A BONA FIDE APPRENTICESHIP PROGRAM REGISTERED WITH THE U,S. DEPARTMENT OF LABOR, EMPLOYMENT AND TRAINING ADMINISTRATION, BUREAU OF APPREN- TICESHIP AND TRAINING, OR WITH A STATE APPRENTICESHIP AGENCY RECOGNIZED BY THE BUREAU, OR IF A PERSON IS EMPLOYED IN HIS OR HER FIRST 90 DAYS OF PROBATIONARY EMPLOYMENT AS AN APPRENTICE IN SUCH AN APPRENTICESHIP PROGRAM, WHO IS NOT INDIVIDUALLY REGISTERED IN THE PROGRAM, BUT WHO HAS BEEN CERTIFIED BY THE BUREAU OF APPRENTICESHIP AND TRAINING OR A STATE APPRENTICESHIP AGENCY (WHERE APPROPRIATE) TO BE ELIGIBLE FOR PROBATIONARY EMPLOYMENT AS AN APPRENTICE. THE ALLOWABLE RATIO OF APPRENTICES TO JOURNEYMEN ON THE JOB SITE IN ANY CRAFT CLASSIFICATION SHALL NOT BE GREATER THAN THE RATIO PERMITTED TO THE CONTRACTOR AS TO THE ENTIRE WORK FORCE UNDER THE REGISTERED PROGRAM. ANY WORKER LISTED ON A PAYROLL AT AN APPRENTICE WAGE RATE, WHO IS NOT REGISTERED OR OTHERWISE EMPLOYED AS STATED ABOVE, SHALL BE PAID NOT LESS THAN THE APPLICABLE WAGE ON THE WAGE DETER- MINATION FOR THE CLASSIFICATION OF WORK ACTUALLY PER- FORMED. IN ADDITION, ANY APPRENTICE PERFORMING WORK ON THE JOB SITE IN EXCESS OF THE RATIO PERMITTED UNDER THE REGIS- TERED PROGRAM SHALL BE PAID NOT LESS THAN THE APPLICABLE WAGE RATE ON THE WAGE DETERMINATION FOR THE WORK ACTUAL- LY PERFORMED. WHERE A CONTRACTOR IS PERFORMING CONSTRUC- TION ON A PROJECT IN A LOCALITY OTHER THAN THAT IN WHICH ITS PROGRAM 1S REGISTERED, THE RATIOS AND WAGE RATES (EXPRESSED IN PERCENTAGES OF THE JOURNEYMAN'S HOURLY RATE) SPECIFIED IN THE CONTRACTOR'S OR SUBCONTRACTOR'S REGISTERED PROGRAM SHALL BE OBSERVED. EVERY APPRENTICE MUST BE PAID AT NOT LESS THAN THE RATE SPECIFIED IN THE REGISTERED PROGRAM FOR THE APPRENTICE'S LEVEL OF PROGRESS, EXPRESSED AS A PERCENT- AGE OF THE JOURNEYMAN HOURLY RATE SPECIFIED IN THE APPLICA- BLE WAGE DETERMINATION. APPRENTICES SHALL BE PAID FRINGE O i+ BENEFITS IN ACCORDANCE WITH THE PROVISIONS OF THE APPREN- TICESHIP PROGRAM. IF THE APPRENTICESHIP PROGRAM DOES NOT SPECIFY FRINGE BENEFITS, APPRENTICES MUST BE PAID THE FULL AMOUNT OF FRINGE BENEFITS LISTED ON THE WAGE DETERMINATION AAA03'AD 40 • s w FOR THE APPLICABLE CLASSIFICATION. IF THE ADMINISTRATOR DETERMINES THAT A DIFFERENT PRACTICE PREVAILS FOR THE APPLICABLE APPRENTICE CLASSIFICATION, FRINGE BENEFITS SHALL BE PAID IN ACCORDANCE WITH THAT DETERMINATION. IN THE EVENT THE BUREAU OF APPRENTICESHIP AND TRAINING, OR A STATE APPRENTICESHIP AGENCY RECOGNIZEDBY THEBUREAU, WITHDRAWS APPROVAL OF AN APPRENTICESHIP PROGRAM, THE CONTRACTOR WILL NO LONGER BE PERMITTED TO UTILIZE APPRENTICES AT LESS THAN THE APPLICABLE PREDETERMINED RATE FOR THE WORK PERFORMED UNTIL AN ACCEPTABLE PROGRAM IS APPROVED, (b) TRAINEES. EXCEPT AS PROVIDED IN 29 C.F.R. § 5.16, TRAINEES WILL NOT BE PERMITTED TO WORK AT LESS THAN THE PREDETERMINED RATE FOR THE WORK PERFORMED UNLESS THEY ARE EMPLOYED PURSUANT TO AND INDIVIDUALLY REGISTERED IN A PROGRAM WHICH HAS RECEIVED PRIOR APPROVAL, EVIDENCED BY FORMAT. CERTIFICATION BY THE U. S, DEPARTMENT OF LABOR. EMPLOYMENT AND TRAINING ADMINISTRATION. THE RATIO OF TRAINEES TO JOURNEYMEN ON THE JOB SITE SHALL NOT BE GREATER THAN PERMITTED UNDER THE PLAN APPROVED BY THE EMPLOYMENT AND TRAINING ADMINISTRATION. EVERY TRAINEE MUST BE PAID AT NOT LESS THAN THE RATE SPECIFED IN THE APPROVED PROGRAM FOR THE TRAINEE'S LEVEL OF PROGRESS, EXPRESSED AS A PERCENT- AGE OF THE JOURNEYMAN HOURLY RATE SPECIFIED IN THE APPLICA- BLE WAGE DETERMINATION. TRAINEES SHALL BE PAID FRINGE BENEFITS IN ACCORDANCE WITH THE PROVISIONS OF THE TRAINEE PROGRAM. IF THE TRAINEE PROGRAM DOES NOT MENTION FRINGE BENEFITS, TRAINEES SHALI, BE PAID THE FULL AMOUNT OF FRINGE BENEFITS LISTED ON THE WAGE DETERMINATION UNLESS THE ADMINISTRATOR OF THE WAGE AND HOUR DIVISION DETERMINES THAT THERE IS AN APPRENTICESHIP PROGRAM ASSOCIAl ED WITH THE CORRESPONDING JOURNEYMAN WAGE RATE ON THE WAGE DETERMI- NATION, THAT PROVIDES FOR LESS I HAN FULL FRINGE BENEFITS FOR APPRENTICES. ANY EMPLOYEE LISTED ON THE PAYROLL AT A TRAINEE RATE WHO IS NOT REGISTERED AND PARTICIPATING IN A TRAINING PLAN APPROVED BY THE EMPLOYMENT AND TRAINING • ADMINISTRATION SHALL BE PAID NOT LESS THAN THE APPLICABLE WAGE RATE ON THE WAGE DETERMINATION FORTHE CLASSIFICATION OF WORK ACTUALLY PERFORMED. IN ADDITION, ANY TRAINEE PERFORMING WORK ON THE JOB SITE IN EXCESS OF THE RATIO PERMITTED UNDER THE REGISTERED PROGRAM SHALL BE PAID NOT LESS THAN THE APPLICABLE WAGE RATE ON THE WAGE DETERMINA- TION FOR THE WORK ACTUALLY PERFORMED. IN THE EVENT THE I, q EMPLOYMENT AND TRAINING ADMINISTRATION WITHDRAWS APPROV- AL OF A TRAINING PROGRAM, THE CONTRACTOR WILL NO LONGER BE PERMITTED TO UTILIZE TRAINEES AT LESS THAN THE APPLICABLE i AAA032AD 41 • • PREDETERMINED RATE FOR THE WORK PERFORMED UNTIL. AN ACCEPTABLE PROGRAM IS APPROVED. (c) EQUAL EMPLOYMENT OPPORTUNITY. THEUTILIZATION OF APPRENTICES, TRAINEES, AND JOURNEYMEN UN DER 29 C. F. R. PART 5 SHALL BE IN CONFORMITY WITH THE EQUAL EMPLOYMENT OPPORTUNITY REQUIREMENTS OF EXECUTIVE ORDER 11246, AS AMENDED, AND 29 C,F.R, PART 30. 5, COMPLIANCE WITH COPELAND ACT REQUIREMENTS. THE i' CONTRACTOR SHALL COMPLY WITH THE REQUIREMENTS OF 29 C.F.R. PART 3, WHICH ARE INCORPORATED HEREIN BY REFERENCE. 6. CONTRACT TERMINATION: DEBARMENT. A BREACH OF THE CONTRACT CLAUSES IN 29 C.F.R. § 5.5 MAY BE GROUNDS FOR TERMINATION OF THE CONTRACT, AND FOR DEBARMENT AS A CONTRACTOR AND A SUBCONTRACTOR AS PROVIDED IN 29 C.F.R, §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a) CERTIFICATION OF ELIGIBILITY, BY ENTERING INTO • THIS AGREEMENT OR A THIRD PARTY CONTRACT FINANCED UNDER THIS AGREEMENT, THE CONTRACTOR CERTIFIES THAT NEITHER IT (NOR HE NOR SHE) NOR ANY PERSON OR FIRM THAT HAS AN INTEREST IN THE CONTRACTOR'S FIRM IS A PERSON FIRM INELIGIBLE TO BE AWARDED GOVERNMENT CONTRACTS BY VIRTUE OF SECTION 3 (a) OF THE DAVIS-BACON ACT OR 29 C.F.R. § 5.12(a) (1). (b) NO PART OF THIS CONTRACT SHALL BE SUBCONTRACT- ED TO ANY PERSON OR FIRM INELIGIBLE FOR AWARD OF A GOVERN- MENT CONTRACT BY VIRTUE OF SECTION 3(a) OF THE DAVIS-BACON ACT OR 29 C.F.R. § 5.12(a) (1). AAA012AD 42 • • i (c) THE PENALTY FOR MAKING FALSE STATEMENTS IS PRESCRIBED IN THE U.S. CRIMINAL CODE, 18 U.S.C. § 1001. 10. OVERTIME REQUIREMENTS. NO CONTRACTOR OR SUBCON- TRACTOR CONTRACTING FOR ANN' PART OF THE CONTRACT WORK WHICH MAY REQUIRE OR INVOLVE THE EMPLOYMENT OF LABORERS OR MECHANICS SHALL REQUIRE OR PERMIT ANY SUCH LABORER OR MECHANIC IN ANY WORK WEEK IN WHICH HE OR SHE IS EMPLOYED ON SUCH WORK TO WORK IN EXCESS OF FORTY HOURS IN SUCH WORK WEEK UNLESS SUCH LABORER OR MECHANIC RECEIVES COMPENSA- TION AT A RATE NOT LESS THAN ONE AND ONE-HALF TIMES THE BASIC RATE OF PAY FOR ALL HOURS WORKED IN EXCESS OF FORTY HOURS IN SUCH WORK WEEK. ll. VIOLATION: LIABILITY FOR UNPAID WAGES: LIQUIDATED DAMAGES. IN THE EVENT OF ANY VIOLATION OF THE REQUIREMENTS j OF 29 C.F.R. § 5.5(b) (1). THE CONTRACTOR AND ANY SUBCONTRACTOR Ik RESPONSIBLE THEREFOR SHALL BE LIABLE FOR THE UNPAID WAGES. IN ADDITION, SUCH CONTRACTOR AND SUBCONTRACTOR SHALL BE LIABLE TO THE UNITED STATES (IN THE CASE OF WORK DONE UNDER CONTRACT FOR THE DISTRICT OF COLUMBIA OR A TERRITORY, TO SUCH DISTRICT OR TO SUCH TERRITORY) FOR LIQUIDATED DAMAGES. SUCH LIQUIDATED DAMAGES SHALL BE COMPUTED WITH RESPECT TO EACH INDIVIDUAL LABORER OR MECHANIC, INCLUDING WATCHMEN AND GUARDS, EMPLOYED IN VIOLATION OF 29 C.F.R. § 5.5(b) (1) IN THE SUM OF $10 FOR EACH CALENDAR DAY ON WHICH SUCH INDIVIDUAL WAS REQUIRED OR PERMITTED TO WORK IN EXCESS OF THE STAN- DARD WORK WEEK OF FORTY HOURS WITHOUT PAYMENT OF THE OVERTIME WAGES REQUIRED BY 29 C.F.R. § 5.5(b) (1). 12. WITHHOLDING FOR UNPAID WAGES AND LIOU DATED DAMAGES. UMTA OR THE AGENCY SHALL UPON ITS OWN ACTION OR UPON WRITTEN REQUEST OF AN AUTHORIZED REPRESENTATIVE OF THE DEPARTMENT OF LABOR WITHHOLD OR CAUSE TO BE WITHHELD, FROM ANY MONEYS PAYABLE ON ACCOUNT OF WORK PERFORMED BY THE CONTRACTOR OR SUBCONTRACTOR UNDER ANY SUCH CONTRACT • OR ANY OTHER FEDERAL CONTRACT WITH THE SAME PRIME CON- TRACTOR, OR ANY OTHER FEDERALLY-ASSISTED CONTRACT SUBJECT TO THE CONTRACT WORK HOURS AND SAFETY STANDARDS ACT, WHICH IS HELD BY THE SAME PRIME CONTRACTOR, SUCH SUMS AS MAY BE DETERMINED TO BE NECESSARY TO SATISFY ANY LIABILITIES OF SUCH CONTRACTOR OR SUBCONTRACTOR FOR UNPAID WAGES AND 9 LIQUIDATED DAMAGES AS PROVIDED IN THE CLAUSE SET FORTH AT I~ O 29 C.F.R, § 5.5(b) (2). 13. SUBCONTRACTS. THE CONTRACTOR OR SUBCONTRACTOR SHALL, INSERT IN ANY SUBCONTRACTS THE CLAUSES SET FORTH IN AAAw:AD 43 0 • 0 SUBSECTIONS 116.a.(1) THROUGH (12) OF PART 11 OF THIS AGREEMENT AND ALSO A CLAUSE REQUIRING THE SUBCONTRACTORS TO INCLUDE THESE CLAUSES IN ANY LOWER TIER SUBCONTRACTS. THE PRIME CONTRACTOR SHALL BE RESPONSIBLE FOR COMPLIANCE BY ANY SUBCONTRACTOR OR LOWER TIER SUBCONTRACTOR WITH THE CLAUSES SET FORTH IN SUBSECTIONS 116.a.(1) THROUGH 116.a.(12) OF PART II OF THE CITY'S AGREEMENT WITH THE GOVERNMENT. Nonconstruction Contracts. Pursuant to the regulations set forth at 29 C.F. R. Part 5, the following provisions shall be incorporated in all federally-assisted non-construction contracts of $2,500 let by the Agency in carrying out the Project: NONCONSTRUCTION CONTRACTS. THE REQUIREMENTS OF THE CLAUSES CONTAINED IN 29 C.F.R. § 5.5(b) OR SUBSECTIONS 116.a.(10) THROUGH 116.a,(13) OF PART lI OF THIS AGREEMENT ARE APPLICABLE TO ANY CONTRACT SUBJECT TO THE OVERTIME PROVISIONS OF THE CONTRACT WORK HOURS AND SAFETY STANDARDS ACT AND NOT TO ANY OF THE OTHER STATUTES CITED IN 29 C.F.R. § 5.1. THE CON- TRACTOR OR SUBCONTRACTOR SHALL MAINTAIN PAYROLLS AND BASIC PAYROLL RECORDS DURING THE COURSE OF THE WORK AND SHALL PRESERVE THEM FOR A PERIOD OF THREE YEARS FROM THE. COMPLETION OF THE CONTRACT FOR ALL LABORERS AND MECHAN- ICS, INCLUDING GUARDS AND WATCHMEN, WORKING ON THE CONTRACT. SUCH RECORDS SHALL CONTAIN THE NAME AND ADDRESS OF EACH SUCH EMPLOYEE, SOCIAL SECURITY NUMBER, CORRECT CLASSIFICATIONS, HOURLY RATES OF WAGES PAID, DAILY AND WEEKLY NUMBER OF HOURS WORKED, DEDUCTIONS MADE, AND ACTUAL WAGES PAID. THE RECORDS TO BE MAINTAINED UNDER THIS CLAUSE SHALL BE MADE AVAILABLE BY THE CONTRACTOR OR SUB- CONTRACTOR FOR INSPECTION, COPYING, OR TRANSCRIPTION BY AUTHORIZED REPRESENTATIVES OFUMTA, [)Of, ORTHE DEPARTMENT OF LABOR, AND THE CONTRACTOR OR SUBCONTRACTOR WILL PERMIT SUCH REPRESENTATIVES TO INTERVIEW EMPLOYEES DURING WORKING HOURS ON THE JOB. W. Environmental. Resource. Energy Protection, and Conservation Requirements. e L The National Environmental Policy Act of 1969, as amended, 42 U.S.C. 4321 e] seq.,; Section 14 of the Urban Mass Transportation Act of 1964, as amended, 49 U.S'C. app. 1601 et the Council on Environmental Quality regulations, 40 C.F.R. Part 1500 Lt gq.; and the FHWA/UMTA regulation, "Environmental Impact and Related Procedures," 23 C.F.R. Part 771, as amended, are applicable to the Project. 8 O 2. The Agency shall comply with the provisions of the Clean Air Act, as amended, 42 U.S.C. 1857 gI seq.,; the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251 et j a,; and implementing regulations, in the facilities that are involved in the Project for which Federal assistance is given. The Agency shall ensure that the facilities under AA40?2AD 44 ownership, lease or supervision, whether directly or under contract, that will be utilized in the accomplishment of the Project are not listed on the Environmental Protection Agency (EPA) List of Violating Facilities. Contracts, subcontracts, and sub-grants of amounts in excess of $100,000 shall contain a provision requiring compliance with all applicable standards, orders, or requirements issued pursuant to Federal statute or regulation. The Agency and any third party contractor thereof shall be responsible for reporting any violations to City and UMTA and to the EPA Assistant Administrator for Enforcement. In addition, the Agency shall notify City and UMTA of the receipt of any communication from the Director of the EPA Office of Federal Activities indicating that a facility to be utilized in the Project is under consideration for listing by EPA. 3. No facilities or equipment shall be acquired, constructed, or improved as a part of the Project unless the Agency obtains satisfactory assurances that they are (or will be) designed and equipped to limit air pollution as provided in accordance with the following EPA regulations: "Control of Air Pollution from Motor Vehicles and Motor Vehicle Engines," 40 C.F.R. Part 85; "Control of Air Pollution from New Motor Vehicles and New Motor Vehicle Engines; Test Procedures for Light-Duty Vehicles and Light-Duty Trucks and Selective Enforcement Auditing of New Light-Duty Vehicles, Light-Duty Trucks and Heavy-Duty Engines," 40 C.F.R. Part 86; and "Fuel Economy of Motor Vehicles," 40 C.F.R. Part 600; in accordance with applicable federally-approved State Implementation Plan(s) (in particular, the Transportation Control Measures); and in accordance with appropriate UMTA directives and all other applicable standards. 4. No publicly owned land from a park, recreation area, or wildlife or waterfowl refuge of national, State, or local significance as determined by the Federal, State, or local officials having jurisdiction thereof, or any land from an historic site of national, State, o. local significance may be used for the Project unless specific findings required under 49 U.S.C. § 303 are made by the Department of Transportation. 5. The Agency shall assist the Government (UMTA) to comply with section 106 of the National Historic Preservation Act involving historic and archaeological preservation by: I (1) Consulting the State Historic Preservation Officer on the conduct of investigations, in accordance with Advisory Council on Historic Preservation regulations, "Protection of Historic and Cultural Properties," 36 C.F.R. Part 800, to identify properties and resources listed in or eligible for inclusion in the National Register of Historic Places that may be affected by the Project, and notifying the Government (UA1TA) of the existence of any such properties; and (2) Complying with all Federal requirements to avoid or mitigate adverse effects upon such properties. 6. The Agency and its third party contractors shall comply with mandatory O 0 standards and policies relating to energy efficiency that are contained in applicable State energy conservation plans issued in compliance with the Energy Policy and Cottservation Act, 42 U,S.C. 6321 !g esq. AKOUAD 45 ~M~■~. -°-•-.--r~..-7+~-~--~. _ ..!!win 7 7" • 7. Should the proposed Project cause adverse environmental effects, the Agency shall take all reasonable steps to minimize such effects pursuant to 49 U.S.C. app. § 1610, other applicable statutes, and the procedures set forth in 23 C.F.R. Part 771. The Agency shall undertake all environmental mitigation measures that may be identified as commitments in applicable environmental documents (such as environmental assessments, environmental impact statements, memoranda of agreements, and statements required by 49 U.S.C. § 303) and with any conditions imposed by the Government as part of a finding of no significant impact or a record of decision; all such mitigation measures are incorporated in and made part of this Agreement by reference. In the event that some or all mitigation measures are deferred, once such measures are agreed upon by the Government, City and the Agency, those mitigation methods subsequently determined will be incorporated into this Agreement. Such mitigation measures may not be molified or withdrawn without the express written approval of the Government, 8. In carrying out the Project, the Agency shall make all appropriate efforts to foster the use of fly ash, substantially in compliance with EPA regulations "Guideline for Federal Procurement of Cement and Concrete Containing Fly Ash," 40 C.F.R. Part 249. Should the Agency make a determination that the use of fly ash is inappropriate in a particular procurement of cement or concrete, the Agency shall provide UMTA a written justification to support that decision. X. MISCELLANEOUS 1. Agency shall comply with Departmentof Transportation regulations, "Uniform Relocation and Real Property Acq,2isition Regulation for Federal and Federally Assisted Programs," 49 C.F.R. Part 24. 2. Agency shall comply with the flood insurance purchase requirements of section 102(a) of the Flood Disaster Protection Act of 1973, 42 U.S.C. § 4012(a), with respect to any construction or acquisition Project. 3. Agency shall comply with the bus testing requirements as set forth in section 12(h) of the Urban Mass Transportation Act of 1964, as amended, 49 U.S.C. app. § 1608(h), and any implementing regulations that may be issued thereunder. 4. Agency shall comply with any regulations that may be issued to implement e section 120) of the Urban Mass Transportation Act, of 1964, as amended, 49 U.S.C. app. § 16080), 5. If any invention, improvement, or discovery of the Agency or any of its third party contractors is conceived or first actually reduced to practice in the course of or under this Project, which invention, improvement, or discovery may be patentable under the laws of the • United States of America or any foreign country, the Agency shall immediately notify the e O Government (UMTA) and provide a detailed report. The rights and responsibilities of the Agency, third party contractors, the City and the Government with respect to such invention, improvement, or discovery will be determined in accordance with applicable Federal laws, regulations, policies, and any waiver thereof. AAA032AD 46 • • i 6. Rights in Data. a. The term "subject data" as used herein means recorded information, whether or not copyrighted, that is delivered or specified to be delivered under this Agreement. The term includes graphic or pictorial delineations in media such as drawings or photographs; text in specifications or related performance or design-type documents; machine forms such as punched cards, magnetic tape, or computer memory printouts; and information retained in computer memory. Examples include, but are not limited to: computer software, engineering drawings and associated lists, specifications, standards, process sheets, manuals, technical reports, catalog bent identifications, and related information. The term does not include financial reports, cost analyses, and similar information incidenu^1 to Project administration, b. The following restrictions apply to all subject data first produced in the performance of this Agreement: (1) Except for its own internal use, the Agency may not publish or reproduce such data in whole or in part, or in any manner or form, nor may the Agency authorize others to do so, without the written consent of the City and the Government, until such time as the Government may have either released or approved the release of such data to the public; this restriction on publication, however, does not apply to Agreements with academic institutions. (2) As authorized by 49 CT R. Part 18.34, the City and the Government (UMTA) reserve a royalty-free, non-exclusive Pnd irrevocable license to reproduce, publish or otherwise use, and to authorize others to use, for Federal Government purposes: (a) Any work developed under a grant, cooperative agreement, sub- grant, sub-agreement, or third party contract, irrespective of whether or not a copyright has been obtained; and (b) Any rights of copyright to which a Agency, sub-recipient, or a third party contractor purchases ownership with Federal assistance. C C. Agency urY.ierstands and agrees that, in addition to the rights set forth in Subsection 119.b.(2) of Part 11 of this Agreement, UMTA may make available to any UMTA f recipient, sub-grantee, sub-recipient, third party contractor, or third party subcontractor, either UMTA's license in the copyright to the "subject data" deriLved under this Agreement or a copy • of the "subject data" first produced under this Agreement. d. The City and Agency shall indemnify, save and hold harmless the Govem- ment, its officers, agents, and employees acting within the scope of their official duties against any liability, including costs and expenses, resulting from any willful or intentional violation by the Agency of proprietary rights, copyrights, or right of privacy, arising out of the publication, O translation, reproduction, delivery, use, or disposition of any data furnished under this O O Agreement, k"ow a 47 • • I e. Nothing contained in this clause shall imply a license to the City or Government under any patent or be construed as affecting the scope of any license or other right otherwise granted to the City or Government under any patent. f. Subsections b., c. and d. of Part 11 of this Section are not applicable to material furnished to the Agency by the U. S, Government and incorporated in the work furnished under the Agreement; provided that such incorporated material is identified by the Agency at the time of delivery of such work. g. In the event that the Project, which is the subject of this Agreement, is not completed, for any reason whatsoever, all data developed under that Project shall become subject data as defined in Subsection 119.a. of Part 11 of the City's Agreement with the Government and shall be delivered as the Government may direct. h. The requirements of Subsections a. through g, of this Section shall be included in all third party contracts of the Agency under this Project. 7. Privacy Should the Agency, or any or its third party contractors, sub-grantees, sub- recipients or their employees administer any system of records on behalf of the Federal Gm ern- ment, the Privacy Act of 1974, 5 U.S.C. § 552a (the Act), imposes information restrictions on the party administering the system of records. a. For purposes of the Privacy Act, when the Agreement involves the operation of a system of records on individuals to accomplish a Government function, the Agency and any third party contractors, sub-grantees, sub-recipients and their employees involved therein are considered to be Government employees with respect to the Government function. The requirements of the Act, including the civil and criminal penalties for violations of the Act, apply to those individuals involved. Failure to comply with the terms of the Act will make this Agreement subject to termination. b. As used herein: (1) "Operation of a system of records" means performance of any of the activities associated with maintaining the system of records on behalf of the Government including the collection, use and dissemination of records. • (2) "Record" means any item, collection, or grouping of information about an individual that is maintained by the Agency on behalf of the Government including, but not limited to, his or her education, financial transactions, medical history, and criminal or employment history and that contains his or her name, or the identifying number, symbol, or other identifying particular assigned to the individual, such as a finger or voice print or a ' photograph. _ (3) "System of records" on individuals means a group of any records under the control of the Agency on behalf of the Government from which information is retrieved by the name of the individual or by some identifying number, symbol or other identifying particular assigned to the individual. AAA0 240 48 v 0 Y. GENERAL PROVISIONS a. Bonus or Commission. The Agency warrants that it has not paid, and also agrees not to pay, any bonus or commission for the purpose of obtaining approval of its application for the financial assistance hereunder. b. State or Territorial Law, Except to the extent that a Federal statute or regulation conflicts with State or territorial law, nothing in the Agreement shall require the Agency to observe or enforce compliance with any provision thereof, perform any other act, or do any other thing in contravention of any applicable State or territorial law; however, if any of the provisions of the Agreement violate any applicable State or territorial law, or if compli- ance with the provisions of the Agreement would require the Agency to violate any applicable State territorial law, the Agency shall at once notify the Government (UMTA) in writing in order that appropriate arrangements may be made by the Government and the Agency to the end that the Agency may proceed as soon as possible with the Project. C. Records. The Agency will, for each local fiscal year ending on or after July 1, 1978, conform to the reporting system and the uniform system of accounts and records to the extent required by section 15 of the Urban Mass Transportation Act of 1964, as amended, 49 U.S.C. app. § 1611, effective for each local fiscal year ending on or after July 1, 1978, and applicable regulations "Uniform System of Accounts and Records and Reporting System," set forth at 49 C.F.R. Part 630. d. Severability. If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby if such remainder would then continue to conform to the terms and requirements of applicable law. IN WITNESS WHEREOF, the parties do hereby affix their signatures and enter into this Agreement as of the day of 1997. CITY OF DENTON, TEXAS JACK MILLER, MAYOR i ATT EST: JENNIFER WALTERS, CITY SECRETARY a 0 0 BY: AM0.12A 49 r der: s.~....-.,-.... ~ • APPROVED AS TO LEGAL FORM: OFFICE OF THE CITY ATTORNEY BY: AGENCY DIRECTOR ATTEST: BY: AAA032AD f • f r J' 4 AAAO32AD 50 • Agenda No 7-0l V Agenda Ite _ Date ~ CITY COUNCIL REPORT TO: MAYOR AND I1IEAIBERS OF THE CITY COUNCIL FROM: R. E. Nelson, Executive Director of Utilities DATE: April 15, 1997 SUBJECT: APPROVAL OF ELECTRIC DISTRIBUTION SYSTEM 3 MAINTENANCE AND OPERATION AGREEMENT WITH SANGER RECOMMENDATION: Approval of the attached Electric Distribution System Maintenance and Operation Agreement. SUMMARY: This agreement allows the City of Denton Electric Utility to operate the Sanger electric distribution system. The services to be performed are: Small repairs such as street lights, guy wires, tree limbs, etc. Power restoration activities and services Minor construction activities under a total value of $25,000 (including labor and material). No additional manpower is required to perform these duties since the Sanger system is so small and so close to Denton. BACKGROUND: • The City of Sanger has an electric system that consists of 35 miles of overhead line and 7 miles of underground line. Their system is made up of two feeders and one air switch. They have approximately 1500 customers. They have operated their system with six people, 4 linemen and two groundmen. Recently, their three most experienced linemen have resigned. This makes it impossible for them to operate their system. The City of Denton has been assisting Sanger with operation of their ® system, since March 18, 1997, under our existing mutual aid agreement which Is • • designed to cover short term emergencies. • • The City of Sanger is considering various options for the future of their utility. While they are in that process, they require continuing operation support. This agreement hill provide that support on a month by month basis. PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: Electric Utility Department FISCAL IMPACT: $8,000 per month revenue to the Electric Utility Department. f RESPEC/TFFU`LLLV SUBMITTED: R. E. Nelson, Executive Direc:er Department of Utilities Prepared by: Sharon Mays, Directo , Electric Utilities • i • O i !T~TTM T: 41 • • [:\MPDOCS\CRD\7M:N7. GRD ~ l l ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE MAYOR TO I EXECUTE AN ELECTRIC DISTRIBUTION SYSTEM MAINTENANCE AND OPERATION AGREEMENT BY AND BETWEEN THE CITY OF DENTON, TEXAS AND THE CITY OF SANGER, TEXAS, WHEREIN THE CITY OF DENTON MUNICIPAL ELECTRIC UTILITY WILL PERFORM SERVICES RELATING TO THE MAINTENANCE AND OPERATION OF THE ELECTRIC DISTRIBUTION SYSTEM OF THE CITY OF SANGER; PROVIDING FOR THE EXPENDITURE OF FUNDS 1HEREUNDER; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SE TI N I. That the Mayor is authorized to execute the Electric Distribution System Maintenance and Operation Agreement between the City of Denton and the City of Sanger (the "Agree- ment"), a copy of which is attached hereto. SECTION II. That the City Council is hereby authorized to expend the funds relating to the performance of the Agreement by the City of Denton Municipal Electric Utilitiea, SECTION III• That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _ day of 1997. JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY s BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY _ BY: • • THE STATE OF TEXAS 4 4 COUNTY OF DENTON 4 ELECTRIC DISTRIBUTION SYSTEX MAINTENANCE AND OPERATION AGREEMENT THIS AGREEMENT ("Agreement") is made and entered into by and between the City of Denton, Texas ("DENTON"), a Municipal Corpora- tion, acting by and through its Denton Municipal Electric Utility division, and the City of Sanger, Texas, a Municipal Corporation ("SANGER"). Section 1. scone of Mork/services to be Provided. Operations, maintenance and minor construction pertaining to the Electric Distribution system for the City of Sanger. A. Service Ticket activities and services (repair street light, guy wire, tree limbs, etc.) B. Power Restoration activities and services (fuses, poles, conductor, hardware, etc.) C. Minor Construction activiti,,, )rovide service (one/two pole extensions, 100-'j: !c ..-derground extensions, transformer, service wiz PROVIDED HOWEVER, Constrv- .n cost hereunder (material, labor i equipment) are limited to $25,000.00 total. Any Project requiring over $25,000.00 for construction costs shall be handled under separate contract. seotion .t. Oates and Cbarges (A) SANGER shall pay DENTON, for services provided under this • Agreement, t'ie following. (1) For the work performed by DENTON under Section 1 herein- r above, SANGER shall pay DENTON the sum of $8,000.00 per month compensation for services performed, and equipment utilized by DENTON in the performance of this Agreement; (2) The cost of materials, supplies, equipment rentals, outside • or independent contractor fees and expenses, sales, use and O O similar taxes, and other miscellaneous costs directly related to the provision of services under this Agreement for SANGER, all of which shall be inv..i.ced at the actual cost incurred by DENTON; ~t (3) An administrative charge equal to 101 of the sum of the amounts invoiced under subsection 2(A)(2), hereinabove. (B) DENTON shall deliver to SANGER an invoice for services performed and materials furnished on a monthly basis. All invoices shall be due upon receipt. Any invoice which remains unpaid more than 30 days after receipt by SANGER shall bear interest at the highest legal rate. I (C) DENTON shall keep records and accounts of the activities and transactions relating to the provision of services under this Agreement to which SANGER shall have reasonable access. Section 3. Warranties) Limitations. A) DENTON shall use reasonable diligence to provide regular and consistent maintenance and operating activities under this Agreement and shall perform its services in a good and workmanlike fashion. DENTON shall not be liable for any damages, costs or losses caused by the interruption, suspension, or curtailment or electric service due to any cause not reasonably within its control including, but not limited to, acts of God, nature or the elements, fire, accidents, civil or public disturbance, breakdown or accident to equipment, or any act or omission by any person or entity not subject to the control of DENTON. V~ B) In the event of a natural disaster in which SANGER suffers physical damage to its electrical system, DENTON shall assess its Electric Utility's situation to determine whether it is capable of providing assistance to SANGER, considering the needs of Denton's own electric utility customers first. DENTON shall be under no obligation to provide assistance to SANGER in the event of such a natural disaster. However, DENTON agrees that if its electric ,.::ility is capable of providing assistance to SANGER in the event of such natural disaster, then DENTON will do so in good faith. C) The entire liability of DENTON from any cause, whether by contract, tort or otherwise, shall not exceed the total sum received by DENTON under this Agreement. D) THE WARRANTIES CONTAINED IN THIS AGREEMENT ARE IN LIEU OF ALL OTHER VAARANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITA- TION, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. THE SERVICE BEING PROVIDED UNDER THIS AGREEMENT IS BP.ING SOLD "AS IS". SANGER AGREES THAT DENTON SHALL NOT BE LIABLE FOR O ANY SPECIAL, INCIDENTAL, INDIRECT, OR CONSEQUENTIAL DAMAGES OR FOR THE LOSS OF PROFIT OR REVENUE ARISING FROM THE PROVISION OF SERVICE 40 UNDER THIS AGREEMENT EVEN IF DENTON HAS BEEN ADVISED OF SUCH POSSIBILITY. Kelntename rd Operetlm Agreerent - Aepe 2 5 • i { I • Section 4. Test Termination. (A) This Agreement shall be for a primary term of thirty (30) days. (B) This Agreement shall be automatically renewed for successive thirty (30) day period, until SANGER provides written notice to DENTON of termination at least ten (10) working days prior to the end of a thirty (30) day term or renewal term of this Agreement. This provision is subject to the total one (1) year termination date set forth in Section 4 (C) hereinbelow. (C) This Agreement, notwithstanding the automatic renewal terms provided for in Section 4 (B) hereinabove, shall in all events terminate one year after its effective date. (D) DENTON may terminate this Agreement, at will and without cause, by giving SANGER thirty (30) days written notice of termination. (E) DENTON may terminate this Agreement on 10 days written notice in the event SANGER is or remains more than 10 days delinquent on any payment required to be paid to Denton under the terms of this Agreement. Section S. Notices. Any notice required or desired to be given from one party to the other party to this Agreement shall be in writing and shall be given and shall be deemed to have been served and received (whether actually received or not) if (i) delivered in person to the address set forth below; (ii) deposited in an official depository under the regular care and custody of the United States Postal Service located within the confines of the United States of America and sent by certified mail, return receipt requested, and addressed to such party at the address hereinafter specified; or (iii) delivered to such party by courier receipted delivery. Either party may designate another address within the confines of the continental United States of America for notice, but until written notice of such change is actually received by the other party, the last address of such party designated for notice shall remain such party's address for notice: ADDRESS FOR NOTICE: 9ENTON SANGER City of Denton, Texas City of Sanger, Texas Municipal Electric Utility • Attn: Sharon Mays Director of Electric Utilities O 901-B Texas Street Denton, Texas 76201 Maintenance and Operation Apreaent Gaye 3 ~l/ • • Section 6. Attorney's Fees Should either party to this Agreement i commence legal proceedings against the other to eni'orce the terms i and provisions of this Agreement, the party losinci in such legal proceedings shall pay the reasonable attorney's fees and expenses (including, but not limited to expert witness fees and deposition expenses) of the party prevailing in such legal proceedings. Section 7. No Assignment. Neither party shall have the right to assign that party's interest in this Agreement without the prior written consent of the other party. Section B. Beverability. If any term or provision of this Agreement is held to be illegal, invalid or unenforceable, the legality, validity or enforceability of the remaining terms or provisions of this Agreement shall not be affected thereby, and in lieu of each such illegal, invalid or unenforceable term or provision, there shall be added automatically to this Agreement a legal, valid or enforceable term or provision as similar as possible to the term or provision declared illegal, invalid or unenforceable. Section jjiver. Either DENTON or SANGER shall have the right to waive any requirement contained in this Agreement, which is intended for the waiving party's benefit, but, except as otherwise provided herein, such waiver shall be effective only if in writing executed by the party for whose benefit such requirement is J intended. No waiver of any breach or violation of any term of this Agreement shall be deemed or construed to constitute a waiver of any other breach or violation, whether concurrent or subsequent, and whether of the same or of a different type of breach or violation. Section 10. Governing Law: Venue. This Agreement and all of the transactions contemplated herein shall be governed by and construed in accordance with the laws of the State of Texas. The provisions and obligations of this Agreement are performable in Denton County, Texas such that exclusive venue for any action arising out of this Agreement shall be in Denton County, Texas. ' section 11. Paragraph 8ea4ingsi g,QnatructigiLL The paragraph headings contained in this Agreement are for convenience only and r shall in no way enlarge or limit the scope or meaning of the various and several paragraphs hereof. Both parties have partici- pated in the negotiation and preparation of this Agreement and this Agreement shall not be construed either more or less strongly against or for either party. 0 I~ O O J Section 12. ie aline 8ffect. Except as limited herein, the terms and provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Maintenance end Operation Asreeeent • Pape 4 r `s Section 13. (fender. Within this Agreement, words of any gender shall be held and construed to include any other gender, and words int he singular number shall be held and construed to include the plural, unless the context otherwise requires. section 16. Counterpart, This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which shall constitute but one and the same instrument. Section 13. Entirs_ rsementL It is understood and agreed that this Agreement contains the entire agreement between the parties and supersedes any and all prior agreements, arrangements or understandings between the parties relating to the subject matter. No oral understandings, statements, promises or inducements contrary to the terms of this Agreement exist. This Agreement cannot be changed or terminated orally and may only be changed or terminated in a writing signed by both parties. Section 16. ,glyationsbin gf Parties. Nothing contained in this Agreement shall be deemed or construed by the parties hereto or by any third party to create the relationship of principal and agent or of partnership or of joint venture or of any association whatsoever between the parties, it being expressly understood and agreed that no provision contained in this Agreement nor any act or acts of the parties hereto shall be deemed to create any relation- ship between the parties other than the relationship of independent parties contracting with each other solely for the purpose of effecting the provisions of this Agreement. EXECUTED on this the day of , 19970 to be effective as of the day of , 1997. CITY OF DENTON, TEXAS • JACK MILLER, MAYOR i f i } Maintenance end Operetfon Aprownt Pepe S Q v • • ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PP.OUTY, CITY ATTORNEY BY: CITY OF SANGER, TEXAS MAYOR ATTEST: CITY SECRETARY • r Nalnterwco and Operatlm Agreueent Page 6 9 1 • • CITY COUNCIL REPORT ApenlaNd.~ Agenda ItV 7 Y T0: Mayor and Members of the City Council Date FROM: Kathy DuBose, Executive Director of Finance DATE: March 14, 1997 SUBJECT: APPOINTMENT TO THE DENTON HEALTH FACILITIES DEVELOPMENT CORPORATION, INC., BOARD OF DIRECTORS RECOMMENDATION: Staff recommends appointment of Ted Benavides. SUMMARY: The Denton Health Facilities Development Corporation was organized in 1984. It is 2 nonprofit public health facilities development corporation. Board members serve as managers for the affairs of the corporation, and serve six year terms. Current terms expire in 1999. PROGRAMS DEPARTMENTS OR GROUPS AFFECTED: N/A FISCAL IMPACT: There is no cost to the City. Please advise if I can provide additional information. i Respectfully submitted: -~J Sf- Kath uB se Executive` Director of Finance Prepared by: o a J Fowler • Exec tiv Secretary AFF0073£ • ' ` • J , i • i • 8:\NPDOCS\RES\7iPA.'1"H li f . f RESOLUTION NO. A RESOLUTION APPOINTING A MEMBER TO THE BOARD OF DIRECTORS OF THE DENTON HEALTH FACILITIES DEVELOPMENT CORPORATION; AND DECLARING AN EFFECTIVE DATE. WHEREAS, Lloyd Harrell has resigned his position as a member of the Board of Directors of the Denton Health Facilities Development Corporation, effective January 31, 1997; and WHEREAS, the City Council wishes to appoint his successor; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION I. That Ted Benavides is hereby appointed to the Board of Directors of the Denton Health Facilities Development Corporation. SECTION II, That the term of office for said member shall be the remainder of Lloyd Harrell's term of office, which shall expire on November 2, 1999. SECTION I;1., That this resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 1997. JACK MILLER, MAYOR • ATTEST: JENNIFER WALTERS, CITY SECRETARY BY. • 0 0 APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY V BY: • • RESOLUTION NO. A RESOLUTION APPOINTING MEMBERS TO THE BOARD OF DIRECTORS OF THE DENTON HEALTH FACILITIES DEVELOPMENT CORPORATIONS; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the terms of the office of Lloyd V. Harrell, Rick Svehla, and John McGrane as members of the Board of Directors of the Denton Health Facilities Development corporation having expired; and WHEREAS, the City Council wishes to appoint their successors; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION That the following individuals are hereby appointed as the Board of Directors of the Denton Health Facilities Develcp- ment Corporation: Lloyd V. Harrell Rick Svehla Kathy DuBose SECTION II. That the term of office for said members shall be for six (6) years. SECTION III. That this resolution shall 'become effective immediately upon its passage and approovval. PASSED AND APPROVED this the day of , 1994. BO CASTLEBERRY, MAYO ATTEST: JENNIFER WALTERS, CITY SECRETARY i BY: 0 a- I APPRQ'v-D AS TO LEGAL FORM: I® DEBRA A. DRAYOVITCH, CITY ATTORNEY O 8 I BY: • r 11100 r DATE: April 5, 1994 CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: APPOINTMENTS TO THE DENTON HEALTH FACILITIES DEVELOPMENT CORPORATIONS, INC., BOARD OF DIRECTORS I RECOMMENDATI N: Staff recommends appointment of Lloyd V. Harrell, Rick Svehla, and Kathy DuHose. SUMMARY: The Denton Health Facilities Development Corporation was organized in 1984. It is a nonprofit public health facilities development corporation. Board members serve as managers for the affairs of the corporation, and serve six year terms. Current terms expired in 1993 making it necessary to appoint successors. This action is necessary to comply with the articles of incorporation. + PROGRAMS. DEPARTMENTS OR GROUPS AFFECTED: NIA , FISCAL IMPACT: There is no cost to the City. Respectfully submitted: Lloyd V. Harrell City Manager Preparel by. y r Ann fOgytne ✓ Flew'" Secretary AFOrCVed by. • KJ1nl,pgoie/'aLnq f+ec~trve ,reucr or Fnenu AFF0073E ' .4 • i 0-k WIN" • r 09en0 N".__ CITY COUNCIL REPORT A;enda Item _ Date T0: Mayor and Members of the City Council FROM: Kathy DuBose, Executive Director of Finance DATE: March 10, 1997 SUBJECT: APPOINTMENT OF BOARD MEMBER TO THE DENTON RETIREMENT AND NURSING CENTER FINANCE AUTHORITY RECOMMENDATION: Staff recommends appointment of Ted Benavides. SUMMARY: The Denton Retirement and Nursing Cent,ar Finance Authority was )rganized in 1979 as a public instrumentality and non-profit corpowion. It was organized to carry out the purposes of the Texas Hous'ng Fiance Corporations Act. Current board members were appointed in 1993 for a term of six years with the current board's term expiring in 1999. PROGRAMS. DEPARTMENTS OR GROUPS AFFECTED: N/A FISCAL IMPACT: There is no cost to the City. Please advise if I can provide additional information. Respectfully submitted; Kath B se Executive Director of Finance Prepared by: ' i • a . Fowler Exe utive Secretary J AFF 073E - ® • 0 1 f; • A:\P6T3R2.R RESOLUTION NO. I A RESOLUTION APPOINTING A MEMBER TO THE BOARD OF DIRECTORS OF THE DENTON RETIREMENT AND NURSING CENTER FINANCE AUTHORITY; AND DECLARING AN EFFECTIVE DATE. WHEREAS, Lloyd Harrell has resigned his position as a member of the Board of Directors of the Denton Retirement and Nursing Center Finance Authority, effective January 31, 1997; and WHEREAS, the City Council wishes to appoint his successor; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION I. That Ted Benavides is hereby appointed to the Board of Directors of the Denton Retirement and Nursing Center Finance Authority. SECTION II. That the term of office for said member shall be the remainder of Lloyd Harrell Is term of office, which shall expire on November 2, 1999. SECTION III. That this resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 1997. 1 JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY i BY: O ~ t, ~ O O J APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY i BY: ~Xt 4 ll OZ- a` • • 1',~6P90C$%RE S\WY SE. RES v C • RESOLUTION NO. J 'D(c A RESOLUTION APPOINTING MEMBERS TO THE BOARD OF DIRECTORS OF THE DENTON RETIREMENT AND NURSING CENTER FINANCE AUTHORITY: AND DECLARING AN EFFECTIVE DATE. WHEREAS, the terms of office of Lloyd Harrell, Rick Svehla, and John McGrane as members of the Board of Directors of the Denton Retirement and Nursino Center Finance Authority having expired; and WHEREAS, the City Council wishes to appoint their successors; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECj'ION I. That the following individual's are hereby appointed as the Board of Directors of the Denton Retirement and Nursing Center Finance Authority: Lloyd V. Harrell Rick Svehla John McGrane SECTION TI. That the term of office for said members shall be for six (6) yearsr SECTION TIT.. That this resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this thecl day of A 1993. BOB CASTLEBERRY, MAYO 1 ATTEST: JENNIFER WALTERS-, CITY SECRETARY 0 ~ ~ O O BY: APP D TO LEGAL FORM: DEB A. DRAYOVITCH, CITY ATTORNEY . BY : YI UL`L f • r • DATE: November 2, 1993 CITX COUNCIL REPORT TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: APPOINTMENT OF BOARD MEMBERS TO THE DENTON RETIREMENT AND NURSING CENTER FINANCE AUTHORITY. RECOKMENDATION: Staff recommends reappointment of current board members Lloyd V. Harrell, Rick Svehla, and John McGrane. 80104ARY: The Denton Retirement and Nursing Center Finance Authority was organized in 1979 as a public instrumentality and non-profit corporation. It was organized to carry out the purposes of the Texas Housing Finance Corporations Act. Current board members were appointed in 1987 for a term of six (6) years with the current board's term expiring in 1993. PROGF;+HG, DEPARTM_Wg0 OR GROUPS AFFECTED: N/A FISCAL I:RPACT:~ There is no cost to the City. Respectfully submitted: Lloyd V. Harrell City Manager Prepared bys^^~ s t -s L /G%~.~G ~ Ann ~'oreytho• Executive Secret / Appcoved by:~~. ktt5 P. He rane • xecutive Director of Finance J AFF0373E • • y r4 1b Y rs~~. vim. .~.r... i.. . • r • E: VID90CS\IES\I IT IRE. 1 y- o D q RESOLUTION NO. A RESOLUTION APPOINTING A MEMBER TO THE BOARD OF DIRECTORS OF THE DENTON RETIREMENT AND NURSING CENTER FINANCE AUTHORITY; AND DECLARING AN EFFECTIVE DATE. WHEREAa, John McGrane has resigned his position as a member of the Board of Directors of the Denton Retirement and Nursing Center Finance Authority, effective January 31, 1994; and WHEREAS, the City Council wishes to appoint his successor: NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION I. That Kathy DuBose is hereby appointed to the Board of Directors of the Denton Retirement and Nursing Center Finance Authority. SECTION II. That thu term of office "or said member shall be the remainder o1 John McG:anels term of office, which shall expire on November 2, 1999. SECTION III, That this resolution shaal Become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 1994. 1 SOB CASTLEBERRY, MAYOR 1 ATTEST: JENNIFER WALTERS, CI1Y SECRETARY 01-4 BY: • APPROVED AS TO LEGAL FORM: \ - DEBRA A. DRAYOVITCH, CITY ATTORNEY • • 8Y: x: • • A4enda Nd._ 7 C Agenda Item Date x/P7?Z CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM: Michael W. Jez, Executive Director of Operations SUBJECT: Continued Grant Funding for the Family Services Unit in the Police Department RECOMMENDATION: That the City of Denton make application for continued grant funding through the Criminal Justice Division of the Office of the Governor, State of Texas, for one (1) juvenile'domestic violence investigator and associated training and supplies for the Family Services Unit in the Police Department. SUMMARY: In 1996, the City of Denton received grant funding from the Criminal Justice Division in the amount of $63,118 for one (1) investigator and associated training and equipment to be dedicated to the investigation of criminal offenses involving family violence and juveniles. The grant funding period is five years, but must be renewed each year. This proposed resolution represents the grant renewal for the second year. BACKGROUND: Believing that family violence and juvenile deliquency can be attributed to problems rooted in the family, the Police Department identified the need for a pro-active, creative, and effective cor iprehensive response to problems associated with families experiencing social difficulty. These problems include youth crime; violent, unstable, or conflict-oriented families; and the early identification of children and adolescents at risk of engaging in violent or illegal behavior and the prevention of such behavior. An examination of the Department's caseload revealed that over one-third of all cases assigned to investigators involved juveniles, family violence, or child abuse. These cases were assigned to three specialized investigators. The overwhelming workload precluded these detectives from spending sufficient time on a case to accurately identify the root problem and provide the most effective response. Additionally, it was believed tF increased coordination and tracking of cases involving juveniles and family violen,.c r would facilitate the accurate identification of problems rather than treating symptoms. I The Police Department utilized the grant funding to provide an investigator that has been trained in the investigation of both juvenile offenses and domestic violence. Since the (I beginning of the grant in September 1996, this investigator has been assigned 199 cases • 0 involving family violence, t -maways, and juvenile crime. The additional staffing has assisted the Department in P:Itieving its goal of reducing the recidivism rate of family violence offenders and runaways by 5 percent each. t 1 • • PROGRAMS, DEPARTMENT OR GROUPS AFFECTED: This program will have a positive impact on the families of the community by providing a comprehensive approach to their problems. The additional staffing provides investigators assigned to these areas more time to investigate cases, rather than simply shoving people through the criminal justice system, thereby increasing the opportunities for the resolution of problems rather than the treatment of symptoms. The Family Services Unit will work in concert with the licensed social worker provided through Pro)rcto AniWad in the 1996-97 budget to provide referral services and victim's assistance as well as develop and implement creative programs to address identified needs. The Department is also seeking funding for a Child Abuse Unit that will contain two investigators, a lieutenant, and civilian clerk for the purpose of increasing the organization's ability to thoroughly and effectively investigate reported child abuse. The supervisor will be responsible for facilitating communication and coordinating activities bdween the two units. Once additional supervision is obtained, the DARE Unit will be transferred to the Child Abuse Unit to provide information regarding at-risk youth and suspected child abuse. FISCAL IMPACT: The second year funding for this grant includes a State contribution of 80 percent and a local match of 20 percent. The total cost of the program includes the investigator's salary, training and travel expenses, supplies, and direct and indirect operating costs. EXPENDI"TUBE STATE FUNDS LOCAL MATCH TOTAL Base Salary $32,915 S 8,229 $ 41,144 j Benefits 8,962 2,241 11,203 Training/Travel 1,123 281 1.404 Supplies/Direct Costs 2,814 703 3,517 Indirect Costs 916 0 916 Total 46,730 11,454 58,184 • RESPECTFULLY SUBMITTED: I i J` II L 1Vr 1 Ih r ; MExieael W. Jez a 'rec r of Operations C;L 5 4"4 4 • • 1 , Prepared by: J ie Iiousewm C rain Support Services Division E { f TLVI • • RESOLUTION NO. A RESOLUTION OF THE CITY OF DENTO?J, TEXAS, AUTHORIZING THE SUBN11SSION OF AN APPLICATION TO THE CRIMINAL JUSTICE DIVISION OF THE OFFICE OF THE GOVERNOR, STATE OF TEXAS, REQUESTING CONTINUED FUNDING FOR ONE (1) JUVENILEJDOMESTIC VIOLENCE INVESTIGATOR AND ASSOCIATED TRAINING AND SUPPLIES FOR A FAMILY SERVICES UNIT; AND PROVIDING AN EFFECTIVE DATE. \VHEREAS, the City of Denton is eligible to receive funds from the Criminal Justice Division of the Office of the Governor, State of Texas, and desires to increase the effectiveness of the Denton Police Department's efforts to resolve problems associated with juvenile crime and family violence; and WHEREAS, in order to receive such funds, it is necessary for the Council of the City of Denton to authorize the submission of a application to pie Criminal Justice Division of the Office of the Governor, State of Texas, requesting continued funding for one (1) juvenile/domestic violence investigator and associated training and supplies to be dedicated to the investigation of criminal offenses involving juveniles and family violence; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the City of Denton, Texas, certifies thst it is eligible to continue to receive a funding allocation from the Criminal Justice Division of the Office of the Governor, State of Texas, for one (1) investigator to be used in the investigation of criminal offenses involving juveniles and family violence and associated training and supplies; SECTION Il. That the City Council authorizes and directs the City Manager, or his designee, to represent and act on behalf of the City of Denton in applying for and %%orking with the Criminal Justice Division of the Office of the Governor, State of Texas, in regard to such grant application. SECTION III. That the Chief of Police shall forward a copy of this resolution to the Criminal Justice Division of the Office of the Governor, State of Texas. SECTION IV. That this resolution shall become effective immediately upon its passage and approval, • A O r- • • PASSED AND APPROVED this the day of 1997. JACK MILLER, MAYOR i ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: 5 • Y. 01, • t Agenda No Agenda ltem_~0 - Date_ Qs RESOLUTION NO. A RESOLUTION OF THE CITY OF DENTON EXPRESSING THE CITY COUNCIL'S OPPOSITION TO HOUSE BILL 3321 WHICH REQUIRES DONATION OF PUBLIC RIGHT- OF-WAN' TO PRIVATE INVESTOR-OWNED TELECOMMUNICATIONS COMPANIES; i AND PROVIDING AN EFFECTIVE DATE. WHEREAS, H.B. 3321 will donate public right-of-way purchased by cities with taxpayer funds to private investor-owned telecommunications companies; and WHEREAS, II.B. 3321 is contrary to the universally held view that the best regulation is that exercised at the local level; and WIIEREAS, H.B. 3321 will end the requirement that the public rights-of-way be used for the public good; and WHEREAS, 11.131. 3321 confiscates citizen-owned public tights-of-way when it caps the rental the private investor-owned-for-profit teieconununications companies must pay for the use of said public rights-of-way regardless of the value said rights-of-way bestow upon the telecommunications companies that will use them to generate enormous profits for private investors; and r~ WHEREAS, II.B. 3321 is contrary to prohibitions in the Texas Constitution preventing a municipality from mak;ng a gift to a private entity; and WHEREAS, H,B. 3321 is not in the public interest of the citizens of the State of Texas for the reason that local control will be terminated and then vested in 3 single commission that historically has not operated in the public interest; and WHEREAS, under H.B. 3321, cities will no longer be able to control the use of public right-of-way to benefit the public; and WHEREAS, the Public Utility Commission has amply demonstrated, through its action • and rulings in telecommunications matters, such as service provider cenifcote of operating authority, that the Public Utility :ommission does not operate with the interests of citizens and i municipalities as its primary goal; and W1iEREAS, H.B. 3321 will no longer follow the long-held view that private investor- owned telecommunications companies must pay fair market value rental to the cities for the use • of the taxpayer supplied right-of-way; and • • WHEREAS, H.B. 3321 may be argued by local exchange telephone companies for the proposition that franchises negotiated by such companies 16th cities prior to the adoption of 112. 3311 but not effective until 1997 are preempted; and - - • • WHEREAS, GTE may argue that II.B. 3321 allows GTE to reduce its franchise fee payment for 1997 to the City of Denton from approximately $800,000 to $125,006; and WHEREAS, through the present regulatory procedure vested in cities, tcleeommunica- tions companies have multiplied and prospered; and WHEREAS, the guiding principle behind H.B. 3321 is "whatever is goon for the private investor-owned telecommunications companies, is good for Texans" even though H.B. 3321 ends effective local regulation of citizen owned public rights-of-way, ultimate control is vested in the Public Utility Commission, and the public return on their investment is confiscated; and WHEREAS, the Public Utility Commission does not have the resources, nor the ability to oversee the use of public rights-of-way in each and every city in the State of Texas; and WHEREAS, H.B. 3321 will cause the lives of citizens to be put at risk through the inability of the Public Utility Commission siting at Austin to insure the telecommunications companies properly use the citizens' public rights-of-way in each and every city; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES: 'SECTION 1. That the City Council opposes H.B. 3321 for the reason that said legislation is confiscatory of public property for private monetary gain, contrary to constitutional prohibitions against a municipality making a gift to a private entity, detrimental to the health, safety, and welfare of the citizens of the State of Texas, and contrary to the public interest. SECTION 11. That the City Council requests that the City Secretary is directed to send a true and correct copy of this resolution to Senators T-im Haywood, Jane Nelson, and David Sibley and Representatives Mary Denny, Jim Hom, a;d Burt Solomons, who represent the Denton area are requested actively oppose H.B. 3321 and keep the City of Denton City Council fully informed. SECTION III. That this ordinance shall become effective immediately upon its passage • and approval i i PASSED AND APPROV ED this the day of 1997. s • ei, tl JACK MILLER, MAYOR PAGE2 ;4 0 1 • ATTEST: JENNIFER WALTERS, CITY SECRETARY i BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: Q • a- L y o m a E:\µ'PUOCS'JtES'liB 3321 AFSOLlJf10N I PAGES I, t • .-,_..r- 40 • • t Alenda Na. / ` T AOenda ItOm ,-,d,, ~7 Date C~ CITY of DENTON, TEXAS MUNICIPAL BUILDING + 215 E. McKINNEY + DENTON, TEXAS 76201 (817) 566-8200 + DPW METRO 434.2529 MEMORANDUM DATE: April 15, 997 TO: Mayor and City Council Members FROK: Linda Ratliff, Director of Economic Developments r~ SUBJECT: Amended Airport Lease Fox 51 RECOMMENDATION: The Airport Advisory Board and staff r,?.commend approval of the ordinance amending the lease between Fox 51 and the City of Denton. SUMMARY: The amendment accomplishes the following: 1. It combines two existing agreements into one simplified document. 2. It establishes a common due date for remittance of lease and fuel fee payments. • 3. It changes the formula for calculating fuel fees. In the past, fuel fees were based on a percentage of fuel cost on f fuel sold to FBO customers. Fuel used by the lessee's operation was not assessed. The proposed lease establishes a percentage on the net cost of all fuel purchased. It is much easier to calculate and is identical to the City's • agreement with the other FBO at the airport. ` • 4. It establishes a common termination date. The current fixed base operator (FBO) lease terminates in 2010 and the current commercial lease terminates in 2012. The proposed lease would terminate both agreements in 2011. "Dedicated to Quality Sen ice" • . Memorandum April 1, 1997 Page 3 i E 5. It establishes a common renegotiation clause. The commercial lease provides the ability to negotiate two five-year options while the FBO lease simply provides the ability to negotiate future terms. Like the FBO lease, th3 proposed amended lease provides the abiiity to negotiate future terms for the dBO tract and the commercial tracts. PROGRAMS, LEPj%ATMENTS OF, GROUPS AFFECTED: The proposed amendment will simplify record-keeping and tracking procedures for the Airport, Accounting and Audit departments. FISCAL IMPACT: Fox 51, with permission of the City Council, will assign this amended lease to Ezell Aviation, Inc. The Ezells are currently submitting plans to expand the physical boundaries of the lease, expand services and invest approximately $950,000 in site and building improvements. We will present Ezell Aviation's proposal at your May 6, 1997, Council meeting and will provide you with data on the increase in revenues for the City that result from the new development at that time. RE BOOS 72 • . j f: a • Ci\WFl0C5\0RD\FOY51.01%D ORDINANCE NO. i I AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN AIRPORT LEASE AGREEMENT BETWEEN THE CITY OF DENTON AND FOX-51 LIMITED WHICH AMENDS THE EXISTING FIXED BASE OPERATOR AND COMMERCIAL AIRPORT LEASES BETWEEN THE PARTIES AND INCORPORATES THE TERMS OF SUCH LEASES INTO ONE NEW LEASE; AND PROVIDING AN EFFEcrIVE DATE. THE COUNCIL OF THE CITY DENTON HEREBY ORDAINS: SF^,_TION i. That the City Manager is authorized to execute an Airport Lease Agreement between the City of Denton and Fox-51 Limited which amends the existing Fixed Base Operator and Commercial Airport Leases between the parties and incorporates the terms and conditions cintained within such leases an amended into one new lease, which is attached hereto and made a part hereof for all purposes. SECTION II. That this ordinance shall become effective,. 4.nmediately upon its passage and approval. PASSED AND APPROVED this the _ day of , 1997. JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: • APPROVED AS TO LEGAF FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: ~L%/ ft ~~i1"t y Qa a L • • 0 r. a • • i AIRPORT LEASE AGREEMENT COMMERCiAIJFBO WHEREAS, the City of Denton, Texas as Lessor and Fox-51 Limited, as Lessee, entered into an Airport Lease Agreement dated May 6, 1980; and WHEREAS, such Airport Lease Agreement was amended in writing as of June 18, 1980 and February 19,1985;and WHEREAS, the City of Denton, Texas as Lessor and Fox-51 Limited, as Lessee, entered into a Commercial Operator Lease dated April 1, 1988; and WHEREAS, such Commercial Operator Leese was emended in wdting as of February 2, 1984 and again as of August 20, 1991; and WHEREA F, M is the mutual desire of each of the parties to further amend such leases and place in one instrument all of the provisions of the leases between the parties hereto; WHEREAS, the City of Denton, Texas, Lessor and Fox-51 Limited, Lessee desire that this agreement constitute the entire understanding between the parties and as of its effective date supersedes all prior or independent teaseslagreements between the parties covering the subject matter h n of; NOW, THEREFORE, This lease and agreement is made and entered into this day of 1997 by and betweerr- the Ciy of Denton, a Municipal Corporation, sfuated in Denton County, Texas, hereinafter called *Lessor', and Fox-51 Limited, a corporation of the State of Texas, located at Route 1, Box 102, Denton , Texas, and whose registered agent Is F. D. Strickler, located it Route 1, Box 102, Denton , Texas, hereinafter referred to as 'Lessee." In consideration of the premises and the mutuaT covenants, the parties agree that the land to be leased is the following described land -tuated In Denton County, Texas: 1. PREMISES AND USE A. Land "R'- Fixed Base Oytrator Premise: A 100 x 200 foot trect of land, being approdmatet 20,000 square feet, and a 165 x 220 foot tract of land, being approximately 36,300 square feet having a combined area of approximately 58,300 square feet or 1.29 acres, described as follows: COMMENCING at the northwest corner of a tract of land as conveyed to P, F. Breen by deed recorded In Volume 127, Page 185 of the Deed Records of Denton County, Texas said point lying In the South right of way line of FM Road 1515; i THENCE west along the south right of way line of FM Road 1515 a distance of 350 feet to a point; THENCE north along the west right of way line of FM Road 1515 a distance of 1,000 feet to a point THENCE west perpendicut to said right of way line of FM 1515 a distance of 870 feet, more or less, • to a point on the rest edge of the pavement of the north taxiway; p • THENCE north 13450'41' west along the east edge of pavement of said north taxiway a distance of 10 1 A • feet to a point for a corner; THENCE north 76°09'1 Feast perpendicular to said east edge of pavement a distance of 175 feet to the point of beginning; THENCE north 13050'41' west 175 feet east of and parallel to said east edge of pavement a distance of 220 feet to a point for a corner; THENCE north 76°09'19" east perpendicular to said east edge of pavement a distance of 5 feet to a point for a corner; THENCE north 13°50'41"west 160 feet east of and parallel to said east edge of pavement a distance of 200 feet for a point for a corner; THENCE north 76°09'19' east perpendicular to said east edge of pavement a distance of 100 feet to a point for corner; THENCE south 13°50'41' east 280 feet east of and parallel to said east edge of pavement a distance of 200 feet to a point for a corner; THENCE north 76°09'19' east perpendicular to said east edge of pavement a distance of 60 feet to a point for a corner; THENCE south 13050'41" east 340 feet east of and parallel to said east edge of pavement a distance of 220 feet to a point for a corner, THENCE south 76°09'19" west perpendicular to said east edge of pavement a distance of 165 feet to the place of beginning and containing 56,300 square feet of land, more or less, as shown on Exhibit W. J attached hereto and incorporated herein by reference. B. Use of Fixed Based Operator Premises Land " A^: Lessor does hereby demise and let unto the Lessee, and Lessee does hereby lease and take from the Lessor, the land and facilities herein described, and the rights, licenses, and privileges in connection with the use of such property and improvements as follows; 1. The use, in common with others authorized so to do, of said airport and all appurtenances, facilities, improvements, equipment and services which have been or may hereafter be provided thereat. 2. The oporabon of a transportation system by aircraft, the repairing, maintaining, conditioning, servicing, parking or storage of aircraft or other equipment; the training of personnel and the testing of aircraft and other equipment; the saie, disposal or exchange of aircraft, engines, accessorln, and related equipment; the servicing by Lessee of aircraft and other airport related equipment, including the right to install and maintain on said airport adequate sto wee facilities, and appurtenances. Including right of way necessary therefor; the landing, taking off, parking, loading, and unloading of aircraft and other equipment; the right to load and unload persons, property and mad at said airport, by such means as Lessee may desire, with the right to designate the carriers who shall transport Lessee's passengers and their baggage to and from the airport, ® and, also, the further right to designate the carriers who shall transport Lessee's airborne freight. O 0 4 arty, to and from the said airport; the right to install and operate advertising signs, the general type and design of such sgns to be reasonable and appropriate; the right, but not the duty or obiigabon, to install, maintain and operate radio, communications, meteorolognaal and aerial 2 5 • • navigation, and such other similar equipment and facifbties in, on or about the premises herein leased, as may be necessary ur convenient for Lessee's operations; the conduct of any other aviation related business or operations reasonably necessary to the proper, necessary and appropriate conduct and operation by Lessee of its business; and without in any way limiting the foregoing, Lessee specifically agrees that, if Lessee elects to engage in or provide any of the above services on the premises herein leased, Lessee will: a. Provide service to the public on a nondiscriminatory basis; b. Conduct and operate its business and management In a courteous and efficient manner, c. If Lessee provides be-down service. Lessee will provide be-down service to overnight or ott er transient aircraft or aircraft remaining at the airport for twenty-four (21) hours or less; d. If Lessee provides aircraft fuel services, Lessee will make available either by tank truck, stationary pump or other suitable dispensing equipment approved by the Fire Marshall of a" City of Denton, the quality of gasoline and other petroleum distillates normally found at amilar airports; and aft storage tanks for gasoNne and other aviation fuels shall be placed underground In accordance with the provisions of the Fire Code of L1e City of Denton for underground flammable liquid storage tanks. e Lessee may not use any of the leased land or premises for the operation of, a mote?, hotel, restaurant, private club or bar, apartment house, or for industrial, commercial or retail purposes, except as authorized herein, without the expressed written consent of Lessor. 1 Lestae Is hereby authorized to construct upon the land herein teased, at its own cost and expense, uuildings, hangars, and structures, including fuel storage tanks or other equipment, that Lessor and Lessee mutually agree are necessary for use In connection with the operations authorized by this feria, provided, however, before commencing the construction of any improvements upon the premises. Lessee shall submit: a. all plans and specifications showing the location upon the premises of the proposed construction; b, the estimated castor such construction. No construction may commence until Lessor, acting by its City Council, has approved the plans and specifications and the location of the Improvements, the estimated costs of such construction, and the agreed estimated life of the building or structure. Documentary evidence of the actual cost of construction shall be deRvered by Lessee to Lessors City Manager from time to time as such costs are paid by Losses, and Lessor's City Manager Is hereby authorized to endorse upon a copy of this tease filed with the City Secretary of Lessor such actual amounts as he shall have found to have been paid by Lessee, and the findings of said City Manager when endorsed by him upon said contract shall be conclusive upon all parties for all purposes of this agreement. i C. CgMMIrclol Land Promises- Tract i and Tract 1; 1. Commercial rrad J (CTI) - Developed Lend subject to Lease Payments: i Al that tract of parcel of land lying in the T. Toby Survey, Abstract NurT,Def 1285, City of Denton, Denton • County, Texas, as shown in Exhibit A and described as follows: • • COMMENCING al the norttnvest corner of a tract attend as conveyed to the Nobles Company by deed recorded in Volume 2788, Page 895, Real Property Records of Denton County, Texas, saki point tying r3 1P • in the south line of F.M. 1515; THENCE north 8803343" west with the south line of said FM, 1515 a distance of 265.14 feet; THENCE north 01050'39" west along and near 9 fence on the east line of Tom Cole Road a distance of 1000.00 feet: THENCE south 8800911" west o distance of 902.71 feet to a comer on the east fine an asphalt taxiway, THENCE north 12125'00" west with the east line of said taxdway a distance of 274,35 feet; THENCE north 7713500" east a distance of 280.00 feet to an iron pin at the point of beginning of the herein described tract; THENCE north 12°25'00" west a distance of 240.00 feet to a point for a comer, THENCE north 77°35'00" east a distance of 427.15 feet to a point for a corner; THENCE south 1714713" Best a distance of 241.03 feet to a point for a corner, THENCE south 77°35'00" west a distance of 449.36 feet to the Point of Beginning and containing 105,180.55 square feet or 2.4146 acres of land. Together with the right of ingress and egress to the property, in common with others so authorized, of passage.- upon the Airport property generally, subject to reasonable regulations of Lessor. This right shall extend to Lessee's employees, passengers, patrons, and invitees. 2. Commercial Tract ill (CTh)- Land development completion required by January1,1998: J All that certain tract or parcel of land t#V in the T. Toby Survey, Abstract Number 1285, City of Denton, Denton County, Texas, as shown in Exhiblt A, and described as follows: COMMENCING at the northwest corner of a tract of land as c( weyed to the Nobles Company by dead recorded in Volume 2796, Page 695, Real Property Records, of Denton County, Texas said point ying in the south line of F.M. Road 1515; THENCE north 88°33's J" west wth the south line of said F.M. Road 1515 a distance of 295.14 feet; THENCE north 01°5739' west along and near a fence on the east line of Tom Co'a "(d a listance of 1000.00 feet; THENCE south 68°0921" we61 a distance o(902471 feet to a corner on the east fine an asphalt tcxiway; • THENCE north 12'25'00" west with the east line of said taxiway a distance of 274.35 feet i THENCE north 77°35'00" east a distance of 340.00 feet to an Iron pin at the point of beginning of the herein described tract; THENCE north 77035'00" east a distance of 389.38 feet to a point for a corner; O THE NCE south 1744213" east a distance of 115.49 feet to a point for a corner; • O THENCE south 55°3532' west a distonco of 280.40 feet to on Iron pin for a corner; 4 7 • • 0 THENCE south 77135'00' waist a distance of 140.00 feet to an iron pin for corner; THENCE north 12025'00' west a distance of 220.00 feet to the Point of Beginning and containing 73,737.45 square feet or 1.69211 acres of land. 1 Comvnercial Tract 11 Development (CTII) Requlremerx's: a. (CTII)is leased to Lessee for the purpose of future development by LEwe. Upon commencement of development of any property within (CTIQ, the Property shall on, that date be considered to be an addition to Commercial Traci I (CTI) and be subject to the same terms and cordtions as (CT), including but not limited to, the same rental rate and adjustments, if any, as d the added property had been within (CTI) from the original date of execution of this Lease. The date of Issuance of a building permit by Lessor for the improvements shall be considered the "commencement of development". b. If Lessee fails to commence development of at least thirty-six thousand eight hundred sMy nine (36,869) square feet of (CTIQ by January 1, 1996, that amount of property shall be automatically considered as an addition to (CTI) on that data 3s if commencement of development had begun on that property. c. If Lessee fails to commence development of the remainder of the property within (CTIQ by January 1, 1998, that proparty shall be automatically be considered as on addition to (CTI) on that dale as if commencement of development had begun on that property, 0. Use of Commerclsl Land Pt#: Lessee Is granted the non-exclusive privilege to engage in or provide the following: 1. NargarLease and Renfaf. The rental or tease of hangarsand hangar space and related facilities upon the leased premises. 2. Office Specs Lease or Rerdal: The rental or lease of office space In or adjolning Lessee's hangars, 3. Aircralf Storage and rte-down: To provide parking, storage and t e-down service, for both Lessee's and itinerant aircraft upon or within the teased premises. Lessee, his tenants and sublessees shall not be authorized to conduct eny services not specifically listed in this agreement The use of the lease premises of Lessee, his tenants or sublessees shall be limited to only those pr vats, commercial, retort or industrial activities having to do with or related to airports and aviation. No person, business or corporation may operate a commercial, retail or industrial business upon the premises of Lessee or upon the Airport without authorizatior from the Lessor In a when form approved by City Council. • The Cily shall respond to The request for authorization within sixty (60) days of written notification Lessw's City Manager. If authorization is not received within the required slxtyday time period, authorization of the actlvity will be considered granted. This granting of sul+ortzabon does not relieve the Lessee or it sublessee, successor, or assign of compliance with terms or conditions in this agreement ft. PREMISES AND LEASEHOLD IMPROVEMENTS • A. Premise Define O • For the purposes of this lee'.: The term 'Premises' shall mean all property located within the metes and bounds described above In Section I. Including leasehold improvements constructod by Oe Leaaee, but not Including 5 • C 1 - • 7, 7 • 0 certain easements or Property owned or controlled by the Lessor. B. Improvement Reguirernenis. In making any improvements on the Premises, Lessee shall comply with the following: 1. All requirements of the Lessors Land Development Code, other than platting requirements, including but not limited to Lessor's Building, Fire, Electrical, and Plumbing Codes, and other Codes and ordinances applirAbie to the improvements to be made, including the payment of any fees established by ordinance. 2. Prix to commencing development, Lessee shall obtain the City Council's determination that the improvements conform to and are compatible with the overall size, shape, color, quality, design, appearance, and general plan of the program established by the Lessors Master Plan for the Airport. 3. Any rules or regulations or the any Federal or State agency having jurisdiction thereof. C. Time for Approval by Council. The required determination by the City Council that the plans are compatible with the Master Plan for the Airport shall be made by the Council within sixty (60) days of ppoper submission of the plans to lessor. If the Council fails to ad within the sixty (60) days, the plans shall be deemed approved for the purposes of the requirement of compatibility with the Wier Plan but shall not be deemed approved for any other requirement-- including the requirement to comply with the Lessor's Land Development Code and other applicable codes. D. Ownership of Improvements: Al Wiclings and improvements constructed upon the premises by Lessee shall remain the property of Lesseb unless said property becomes the property of Lessor under the following conditions, terms and provisions: 1. Removal of BWSpas, No building or permanent fixture may be removed from the premises without the written consent of the Lessor. 2. Assumpborn. Al buildings and Improvements of whatever nature remaining upon the leased premises at the end of the primary term, or any extension thereof, of this lease shall automatically become the property of Lessor absolutely in fee without any cost to Lessor. 3. @yjIdingJ~. K is agreed that the life of the building to be constructed by Lessee on the property herein leased is: a. Thirty (30) years for Land A b. Twenty-five (25) years for Commercial Tracts I and tl i 4. Cancgflation. Should this lease be canceled for any reason before the and of the terms, Us especially understood and agreed that Lessor reserves the right to purchase all buildings, structures and improvements then erdsting upon the premises by tendering to Lessee (one twenty- frfth (1125th) of property oo Commercial Tracts I and N and one-thirtieth (1/30) of property on Land Al of the undepreciated value of such building for each year remaining on the agreed life of such 6 building The undeprecietad value of all Improvements is to be determined by having such O +a improvements appraised b/ three appraisers, one appointed by Lessor, one appointed by Lessee and ono appointed by the two appraisers; provided, however, the total value of such building plus an increase In value not to exceed fifty percent (50%) of the original cost of such Improvements 8 9 • • for each five (5) year rectal adjustment period. 10. PAYMENTS A. Pa menls • Fixed 9asad Ooarator Premises f Land Ai: 1. Fixed Base Operalor Land Payment: Land Rental peymentswill be due on the 15th of each month. The amount due currently is two- hundred, eighty-five dollars and thirty-three cents (528533). This amount will be adjusted according to the land lease payment adjustments in Section IV. If payments are delinquent, they will be penalized according to the Adjustments and Payment Terms criteria set forth in Section N of this lease. 2. Improvement Rental. i None, as there were no Improvements on the prope y herein leased at the beginning of the primary agreement. 3. Hangar and Pe-Down Rental Fees: Ten (10%) percent of all hangar and be-down rental fees collected by Lessee from customers of Lessee each month duriW the term of this lease. A certified statement concerning collection of hangar and 5*4own space rentals will be submitted within 60 days or the end of the calendar- month or, In the event of termination, 60 days from the date of termination. 4. Avfetron Fuel Fees: Fuel payments shall be based on fuel purchased by Lessee and the Lessee's sublessee: assigns, heirs or successors. It will Include all fuel purchased from off-alrport fuel vendors. The payment shall be based on the amount of four percent (4%) of net cost of fuel purchased. Net cost of fuel purchased is the cost of fuel not Including taxes on the purchase, Lessee will provide invoices on a monthly basis along with the payment to the Lessor. An annual certified copy of purchases will be submitted within 60 days of the end of the calendar year or, in the event of termination, within 60 days from the dale of termination. 9. Payments • Commercial LaDd Rent (Commercial Tracts 13 M): 1. Land Rentat. The land rental for Commercial Tract I and required development land in Commercial Tract 11 is currently at One-thousand, Thirteen Dollars (t1,013.CC). Property In Tract II will be added accordMg to the procedures set forth in this document as of 1998. Adjustments to the rate shall be made In accordance with the Adjustments and Payment Terms, Section N. The payments will be due as of the 15th of each month. 2. Lessor h"proyvment Rentals: O 0 0 None, as there were no Improvements upon the leased premises at the beginning of the primary agreement. 7 !O e • . I l N. PAYMENT ADJUSTMENTS AND TERMS A. Adiustmants: It is expressly understood and agreed that the yearly rental for the land herein leased shall Li readjusted in five (5) year periods during the term of this lease, (the first such readjustment occurring April 1, 1998), up or dawn, on the basis of the proportion that the then current United States Cost of Wing Index for the Dallas/Fort Worth, Texas Standard Metropolitan Statistical Area, as compiled by the U.S. Department of Labor, Bureau of Labor Statistics, bears to the June, 1980, index which was 256.4 (1967. 100). The adjustment shall be based on the annual cents per square feet based on the square footage for the Foxed Base Operator Land 'A' and the Commercial Tract I plus additions required with development as stated in Section I, Commercial Land Premises • Tract I d fl. L'., 3. Curent Fixed Base Operator Land rental Is at 5,0608 ($285.33 x 12 ■ $3,423,96 land rental per year 1 56 300 square feet • 5.0608 per square fooq. The Commercial Tract I is currently at 5.08558 (51,013112 $12,156 rental per year/ 142,049.55 square feet • 5.08558 per square fooq. SCHEDULED ADJUSTMENTS: Land rental adjustments will be Cased on the month of March and put into effect as of the 1st of April In the years of 1998, 2003, and 2008. 8. Pavmant Terms: All payments, including land rental, and fees, will be due on the 15th of the month. This payment will be for the prior month fees and the current month land rentals. If payments are not received before or on the 151h, a 5% penalty will be due as of the 18th. If payments are not received by th e first of the subsequent month, an additional penalty of 1 % of the unpaid r"Llee amount will be due. A 1 % charge Oil be added on the first of each subsequent month until unpaid rentatRee payment is made. Failure to pay the rent, fee, or either monetary penalty amounts on delinquent rent or fees shall constitute an event of default- of this Lease. V. LEASE TERMS A. The Fixed Bass Operator Land: The remaining term of this lease will be for a term of fourteen (14) years and four months, commencing on the 1st day of March, 1997, and ending on the thirtieth (30th) of June, 2011, unless sooner terminated as hereinafter set forth. Losses shall have an option to renew this lease at the tertmirdation of this lease on the thirtieth (30th) of June, &J11 at a renegotiated rental and terms mutually agreed upon by the Lessor and Lessee without regard for or considering the then cost of living Index. Lessee's election to renegotiate this lease shall be In writing, addressed to the City Manager of the City of Denton, and shall be filed with Lessor's City Manager at least 180 days before the expiration of this agreement. 9. Cofttrnerclal Land. Tract I and Tract 8: The remaining term of this lease will be for a term of fourteen (14) years and four months, commencing on the tat day of March, 1997, and continuing through the last day of June, 2011, unless earlier terminated under the provisions of the Agreement. Lessee shall have an option to renew this lease at the terminlation of this lease on the thirtieth (30th) of June, 2011 at a renegotiated rental and terns mutually agreed upon by the Lessor and Lessee without regard for or considering • the then cost of living Index. If lessee elects to renew this Lease. Lessee shall notify the City Manager, In writing, at least one hundred eighty (160) days before the expiration of this agreement. r V. ASSIf1NMC•NT OF LEASE Lessee expressly covenants that 4 will not assign this lease, nor sublet the whole or any part of the said premises for any purpose, except for rental of hangar space or tie-down space, without the written consent of • Lessor; exo%A that any person, corporation or Irted4xdlon that lends money to Lessee for the construction of any • hangar, structure, building or inprovement upon the leased premises and retains a security Interest In said 8 • 0 I hangar, stricture, building or improvement shall, upon default of Lessee's obligation to said mortgagee, have the right to enter upon said leased premises and operate or manage said hangar, structure, building or improvement according to the tens of this agreement, for a period not to exceed the term of the mortgage with Lessee, or until the loan is paid in full, but in no event longer than the term of this lease. Lessor agrees that It will not unreasonably withhold Its approval of" sale or sublease of the facilities for airport related purposes. VI. SUBROGATION OF MORTGAGE Any person, corporation or institution that lends money to essee for construction of any hangar, I structure, building or improvement and retains a security intereC in said hangar, structure, building or improvement shall, upon default of Lessee's oblgations to said mortgagee, have the right to enter upon said leased premises and operate or manage said hangar, structure, building or Improvement according to the ` terms of this Agreement, for a period not to exceed the term of the mortgage with Lessee, or until the loan is paid in full: or such mortgagee shall have the right to remove any buildings or structures from the premises; however, if such mortgagee is planning to remove am Luildings, then they will notify Lessor in writing of such intent to remove, and Lessor will have sbdy (60) drys from receipt of such notice to exercise an option to purchase such buildings or structures under the provisions of Article II hereof. VN. RIGHT OF EASEMENT Lessor shall have the right to estabfish easements, at no cost to Lessor, upon the leased ground space", for the purpose of providing utility services to, from or across the airport property. However, any such easements shall not Interfere with Lessee's use of the "leased ground space' and Lessor. shall restore the property to its original cond bon upon the Installation of any utility services on, in, over or under any such easement. VIII. CANCELLATION OF LEASE A. Cancellation by Lessor: In the event that Lessee shall file a voluntary petition In Bankruptcy or proceedings In bankruptcy shall be Instituted against It and Lessee thereafter is adjudicated bankrupt pursuant to such proceedings, o (any court shat) take jurisdiction of Lessee and its assets pursuant to proceedings brought under the provisions of any Federal reorganization act, or Lessee shall he divested of its estate herein by othor operation of law, or Lessee shall NO to perform, keep and observe any of the terms, covenants, or conditions herein contained, or on its part to be performed, the Lessor may give Lessee written notice to corred such condition or cure such default and, if any condition or default shall continue for thirty (30) days after the receipt of such notice by Lessee, then Lessor may, temJnate this lease by a thirty (30) days written notice to Lessee. In the event of default, Lessor has the right to purchase any or all structures on the leased premises under the provisions of Article fl hereof. B. Cancellatigyv Lessee: , ' Lessee may cancel this Agreement, In whole or pert, and terminate ell or any of its obligations hereunder at any time, by thirty (30) days written notice, upon or after the happening of any one of the following events: (1) Issuance by any court of competent jurisdiction of a permanent injunction in any way preventing or restraining the use of sad airport or any part thereof for airport purposes; (2) • any action of the CMI Aeronautics Board and/or Federal Aviation Agency refusing to permA Lessee to O O operate Into, from or through said airport such aircraft as Lessee may reasonably desire to operate thereon; the breach by Lessor of any of the covenants or agreements contained herein and the failure of Lessor to remedy such breach for a period of thirty (30) days after receipt of a written notice of the 9 0 • existence of such breach; (3) the inability of Lessee to use said premises and facilities continuing for a longer period than ninety (90) days due to any law or any order, rule or regulation of any appropriate governmental authority having Jurisdiction over the operations of Lessor or due to war, earthquake or other casualty; or (4) the assumption or recapture by the United States Government or any authorized agency thereof of the maintenance and operation o'said airport and facilities or any substantial part or parts thereof. IX. SPECIAL CONDfTIONS it is especially understood and agreed by and between Lessor and Lessee that this lease agreement is subject to the following special terms and conditions: A. Nothing contained herein shall be construed to grant or authorize the granting or an exclusive right within the meaning of Section 1349 of T419 49, United States Code Annotated. f B. Lessor reserves the right to further develop or improve any pubilc parking area, landing area, or other portion of the airport prop" without notice to Lessee. C. During time of war or national emergency, declared by the Congress or the President of the Unded States, Lessor reserves the right to alter, amend, or suspend this agreement upon demand of military, or naval authorities of the United States. D. Lessee, its personal representattve, successors In interest, and assigns, as a part of the- consideration hereof, does hereby covenant and agree as a covenant running with the land that: 1. no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities; 2. that .1 the construction of any improvements on, over, or under such land and the furnishing of services thereof, no person on the grounds of race, color or national origin shall be exclud d from participation in, denied the benefits of, or otherwise be subjected to discriminaton; 3. that the Lessee shall use the premises in compliance with all other requirements Imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-assisted programs of the Department of Transportation-Effectuation or Title %A of the Civil Rights Act of 1964, and as said Regulations may be amended, That in the event of breach orany of the abovo nondiscrimination covenants, Lessor shall have the right • to terminate the lease and to re-enter and repossess said land and the facilities thereon, and hold the some as Nsaid tease had never been made or issued. E. The tessee assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E, to insure that no person shall on the grcwnds of race, creed, color, national origin, or sex be excluded from pertidpating in any employment acilvities coverod In 14 CFR Part 152, Subpart E. The Lessee assures that no person shall be excluded on these jrounds from participating in or receMng the services of benefit of any program of actfviry covered by this subpart The Lessee assures • that it will require that its covered suborganizations provide assurances to the Lessor that they similarly p b wiii undertake affirmative action programs and that they will require assurances from their suborg,tnizabons, as required by 14 CFR Part 152, Subpart E. to the same effect. 10 /3 • • F. N Lessor files an action to enforce any covenant, term or condition of this lease, or for the rec.wery of the possession of the leased area, or for breach of any covenant, term or condition of this lease, then Lessee agrees to pay to Lessor reasonable attorneys fees Pr th° services of Lessor's attorney in such action as part of the costs incurred, such attorneys fees to set by the Court G. Lessors waiver or breach of one covenant or condition of this lease shall not be deemed a waiver of subsequent breaches of other provisions, and Lessors acceptance of rental payments shall not be deemed a waiver of any or the provisions of this lease. H. Lessee shad be provided access to the property leased hereunder either through access W or access "9', at Lessor's discretion, as shown on 6rhitA'A" attached hereto and Incorporated herein by reference. Lessor reserves the right to change Lessee's means of ingress and egress from one designated access to another at Lessors option, 1. Rurmays and Taxiways: That because of the present sixty thousand (60,000) pound continuous use weight bearing capacity of the runway and taxiways of the Airport, Lessee herein agrees to limit all aeronautical activity including larding. takeoff and taxaing, to aircraft having an actual weight, Including the weight of ifs fuel, of sixty thousand (60,000) pounds or less, until such time that the runway and designated taxiways on the Airport have been improved to handle air,: eft of such excessive weght$. ft is further agreed that, based on qualified engineering studies, the weight restrictions and provisions of this clause may be adjusted, up or down, and that the Lessee agrees to abide by any such changes or revisions as such studes may dictate. "Aeronautical Actrvtty" referred to in this clause shall include that activity of the Lessee or As agents or P bcontradont, and ft customers and invitees, but shall not Include those activities which A neither controls nor solicits, such as an unsolicited or unscheduled or emergency- landing. Negligent disregard of the provisions of this section shall be sufficient to pause the Immediate termination of this entire Agreement and subject the Lessee to be liable for any damages to the Airport that might resulL J. Principles of Operstfop1: The right to conduct seranaulk at activities for fumishing services to the public Is granted the lessee subject to Lessee agreeing; 1. To furnish caid services on a fair, equal and not unjustly discriminatory basis to all users thereof, and 2. To charge fair, reasonable and not unjustly discriminatory prices for each unitor service; provided, that the Lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types or price reductions to volume purchasers, K. Right of Individuals to Maintain Aircraft: Nis clearly, understood by the Lessee that no right or p, i rilege has been granted which would operate to prevent any person, firm or corporation operating aircraft on the airport from performing any services on its own aircraft with its own regular employees (including, but not limned to, maintenance and repair) that it may choose to perform. • L. Public Areas: I. Lessor reArves the right to further devr W or Improve the landing area of the airport as ! A sees fit, regardless of the desires or views of the Lessee, and without interference or hindrance. ` 2. Lessor shall be obligated to maintain and keep in repair the landing area of the airport and all publicly owned facilities of the airport together with the right to dired and control all • activities or Lessee In this regard. 0 • I 3. DurkV Erne of war or national emergency, Lessor shall have the right to base the landing area or any part thereof to the United States Government for military or naval use, and, N 11 0 e such lease is executed, the provisions of this instrument insofar as they are inconsistent with the provisions of the lease to the Government, shall be suspended. 4. Lessor reserves the right to take any action A considers necessary to protect the aerial approaches of the airport against obstnction, together with the right to prevent Lessee from erecting, or permitting to be erected, any building or other structure on or adjacent to the airport which, in the opinion of the Lessor, would limit the usefulness or safety of the airport or constitute a nazard to aircraft cr to aircraft navigation 5. This Lease shall be subordinate to the provisions of any existing or future agreement between Lessor and the United States or agency thereof, relative to the operation or maintenance of the Airport. X. INSURANCE A. Required insurence: Lessee, at its expense, shall maintain continuously in effect at all times during the term of this agreement the following insurance coverages: 1. Comprehensive general liability covering the teased premises, 'he Lessee or its company, its personnel, and its operations on the Airport. 2. Aircraft liability to cover all flight operabons of Lessee. 3. Fire and extended covarage for replacement value for all facilities used by the Lessee either as a part of this agreement or erected by the Lessee subsequent to this agreement. 4. Liability insurance limits shall be in the following minimum amounts: J 13odity Injury and Property Damage: One Million Dollars ($1,000,000) combined single limits on a per occurrence basis, 5. All policies shall name the City of Denton as an additional named insured and provide for a minimum of thirty (30) days written notice to the City prior to the effective dale of any cancellation or lapse of such policy. 8, All policies must be approved by the Lessor. 7. The Lessor shop be provided with a copy of all such policies within thirty (30) days of the signing of this Agreement. During the original or extended term of this Lease, Lessor herein reserves the right to adjust or increase the liability insurance amounts required of the Lessee, and to require any additional rider, provision, or certificates of Insurance, and Lessen hereby agrees to provide any such insurance requirements as may be r required by Lessor; provided however, that any requirements shall be commensurate with insurance requirements at other public use airports similar to the Denton Municipal Airport, in size and in scope of aviation activities, located in the southwestern region of the United States. Lessee herein agrees to comply with all 't increased or adjusted Insurancc requirements that may be required by the Lessor throughout the original or extended term of this Lease, including types of insurance and monetary amounts or limits of insurance, and 0 to comply with said insurance requirements within sW (60) days following the receipt of a notics in writing from I~ p {p Lessor stating the increased or adjusted insurance requirements. Lessee shall have the right to maintain In force both types of insurance and am,)unts of Insurance which exceed Lessors minimum Lrsurance requirements. 12 f i 0 0 i Ir In the event that State law should be amended to require additional types of insurance and/or insurance amounts which exceed those of Ike or similar public use airports in the smthwestarn region of the United States of America, then in such event, Lessor shall have the right to require that Lessee maintain in force types of insurance and/or amount of insurance as specified by Stale law. Failure of Lessee to comply with the minimum spedW amounts or types of insurance as required by Lessor shall constitute Lessee's default of this Lease. S. INDEMNITY: During all times that this lease is in effect, the parties agree that Lessee is and shalt be deemed to be an Independent contractor and operator and not an agent or employee of City with respect to its acts or omissions hereunder. For all the purposes hereunder, Lessee Is and shall be deemed an Independent contractor and it is mutually agreed that nothing contained herein shall be deemed or construed to constitute a partnership of-joint venture between the parties hereto. Lessee agrees to indemnify and hold harmless the City and its agents, employees, and representatives frA;+n and against all liability for any and all clis'ms, suits, demands, and/or actions arising from or based upon intentional or negligent acts or omissions on the part of Lessee, its agents, representathres, amployees,n»mbers, patrons, vistors, contractors and subcontractors (if any), and/or f sublessees, which may arise out of or result from Lessee's occupancy or use of the premises and/or activities conducted In connection with or Incidental to this Lease Agreement, Lessee shall also indemnify City against any and all mechanic's and materialmen's liens or any other types of liens Imposed upon the premises demised hereunder arising as a result of Lessee's conduct oractivity. This Indemnity Provision extends to any and all such calms, suits, demands, and/or actions- regardless of the type of relief sought thereby, and whether such relief is In the form of damages, judgments, and costs and reasonable attorney's fees and expenses, or any other legal or equitable form of remedy. This Indemity Provision shall apply regardless of the nature of the Injury or harm alleged, whether for injury or death to persons or damage to property, and whether such clalms by alleged at common law, or statutory or constitutional claims, or otherwise. This Indemnity Provision shall apply J whether the basis for the claim, suit, demand, and/or action may be attributable In whole or in part to the Lessee, or to any of its agents, representatives, employees, members, patrons, visitors, contractors (if any), and/or sublessees or to anyone directly or Indirectly employed by any of them. Further, City rssurres no responsibility or Nobility for harm, Injury, or any damaging events which are directly or Indirectly attributable to premise defects or conditions which may now exist or which may hereafter arise upon the promises, any and all such defects being expressly walled by Lessee. Lessee understands and agrees that this Indemnity Provision shall apply to any and all claims, suits, demands, and/or actions based upon or arising from any such claim asserted by or on behalf of Lessee or any of its members, patrons, visitors, agents, employees, contractors and subcontractors (if any), and/or subles•.ees. 11 Is expressly understood and agreed that the City shall not be liable or responsible for the negligence of Lessee, Its agents, servants, employees and customers. Lessor further agrees that it shallstailtir»s exercise reasonable precautions for the safety of and shall be solely responsible for the safety of its agents, representatives, employees, members, patrons, visitors, contractors and subcontractors (if any), and/or sublessees, and other persons, as well as for the protection of supplies and equipment and the property of Lessee or other persons. Lessee further agrees to comply with all applicable provlslons of Federal, State and municipal safety laws, regulations, and ordinances. PROVIDED FURTHER, that the Lessee and the City each agree to give the other party prompt and • timely notice of any such claim made or sun instituted which In any way, directly or Indirectly, p O contingently or otherwise, affects or might affect the Lessee or the City, Lessee further agrees that this Indemnity Provision shag be considered as an additional remedy to City and not an exclusive remedy. 13 /rO I` I • • I E XI. STANDARDS Lessee shall meet or exceed the following standards: A. Addlms : Lessee shall file with the City Manager's airport designee and keep current its mailing address, telephone number(s) and contacts where he can be reached in an emergency. B. LW: Lessee shall file wttti the City Manager's airport designee and keep current a list of its tenants and sublessees. C. Conduct: Lessees shall contractuaity require its employees and sublessees (and sublessee's invitees) to abide by the terms of this agreement. Lessee shall promptly enforce its contractual rights in the event of a default of such covenants. D. Utilities. Taxes and Fees: Lessee shall meet all expenses and payments In connection with the use of the Premises and the rights and privileges herein granted, including the bmety payment of utilities, taxes, permit fees, license fees and assessments lawfully leveed or assessed. E. L(E: Lessee shall comply with all cur. Lon', and future federal, state and local laws, rules and regulatons whk:h may apply to the conduct of business contemplated, including rules, regulations and ordinances promulgated by Lessor, and Lessee shalt keep in effect and post in a prominent place all necessary and/or required licenses or permits. F. Makdenarrca of ProafN: Lessee shall be responsible for the maintenance, repair and upkeep.. of all property, buildings, structures and improvements, Including the mowing or elimination of grass and other vegetation on the Promises, and shall keep said Premises neat, clean and in respectable condition, free from any objectionable matter or thing. 0. Unauthorized Use of Premises: Lessee may not use any of the leased land or premises for the operation of a motel, hotel, restaurant, private club or bar, apartment house, or for industrial, commercial or retail purposes, except as authorized herein. K Dwellings: it is expressly understood and agreed that no permanent dwelling or domicile may be built, moved to or established on or within the teased premises nor may the Lessee, his tenants, invitees, or guests be permitted to reside or remain as a resident on or within the leased premises or other airport premises. 1. Chank4 : Lessee agrees to properly store, collect and dispose of all chemicals and chemical residues; to pfcperly store, confine, collect and dispose of all paint, Including paint spray In the atmosphere, and paint products; and to comply with all Local, State and Federal regulations governing the storage, handling or disposal of such chemicals and paints. • J. Siena: During the term of this Agreement, Lessee shall he" the right, at its own expense, to place in or on the lease Premises signs Identifying lessee. Sad signs shall be of a size, shape and design, and at a location or locations, approved by the Lessor and In conformance with any overall r directional graphics or sign program established by Lessor on the Airport. Lessor's approval shall not be withheld unreasonably. Said signs shall be maintained In good repair throughout the term of this agreement Notwithstanding any other provision of this agreement, said signs shall ramain the property of Lessee. Lessee shall remove, at Its expense, all lettering, signs and placards so erected on the premises at the expiration of the term of this Agreementor extensions thereof. s i~ o 0 14 ■u nurnri~ ♦ r XII. COVENANTS BY LESSOR Lessor hereby agrees as follows: A. To provide and pay for the Installation and monthly electricity required for security lighting at the airport which Lessor requires to be installed under any safety or fire regulations, or as may be required by Lessor; B. To maintain the airport in an acceptable condition for general aviation activities on said airport; f C. Lessor covenants and agrees not to enter into any subsequent lease, contract, or agreement with any other person, firm or corporation for the operation of a fixed base general aviation operation or business similar to Lessee's business on the airport containing more favorable terms than this agreement or not accorded to Lessee hereunder unless the same rights, privileges and concessions are concurrently and automaticatly made available to Lessee. 0. That on payment of the rent, fees, and peAamance of the covenants and agreements on the part of Lessee to be performed hereunder, Lessee shall peaceably hold and enjoy the leased premises and all the rights and privileges herein granted. E. Lessor warrants and represents that In the establishment, construction and operation or the said Denton Municipal Airport, that Lessor has heretofore and at this ti no Is complying with all existing rules, regulations, and crReria dsfibuted by the Federal Aviation Agency, Civil Aeronautics Board, or any other.. governmental authority relating to and including, but not limbed to, noise abatement, air rights and easements over adjoining and contiguous areas, over-flight In landing or take-off, to the end that Lessee will not be legally liable for any action of trespass or similar cause of action by virtue of any aerial operations over adjoining property in the course of normal takeoff and Landing procedures from said Denton Municipal Airport Lessor further warrants and represents that at all times during the term hereof, or any renewal or extension of the same, that M wail continue to comply with the foregoing. XIfi. COVENANTS BY LESSEE Lessee hereby agrees as follows: A. To Indemnify and hold harmless the Lessor from and against all loss and damages, including death, personal injury, loss of property or other damages, arising or resulting from the operation of Lessee's business In and upon the leased premises. 1 B. Not to make or suffer any waste to be made of the premises and will keep said premises neat, clean and respectable condition, free from objectionable matter or thing, C. To observe and comply with all current and future laws and ordinances and all regulations of federal, state, county or city airport authorities or agendas having jurisdiction over the conduct of operations at the airport. 0. To keep adequate records of income and exponsos and make such records reasonably available, upon request, to the Director of Finance of the City of Denton, Texas. B E. Lessee will qL- t possession of all premises leased herein at the end of the primary term of this M~ lease or any renewal or extension thereof, and deliver up the premises to Lessor in as good condition I as existed when possession was taken by Lessee, reasonable wear and tear excepted. J ~ is ~8 f I e • • 1 F. Lessee shall, at Its expense, procure all licenses, certificates, permits, or other authorization from any and all governmental authorities, if any, having jurisdiction over the operations of Lessee. lW. MISCELLANEOUS PROVISIONS i A. Lessee shall provide all utilities for the premises leased to Lessee at its own cost and expense. Utilities shall also Include any security lighting required by Lessee for the convenience of customers of Lessee. Lessee shall he" the right to connect to the airport water fine now existing and to conned to any future utility lines at Lessee's expense. B. Ep]ilry byrnM)u. This Agreement constitutes the entire understanding, between the parties and as of its effective date supersedes all prior a' Independent Agreements beMreen the parties covering the subject matter hereof. Any change or modification hereof shall be In writing signed by both parties. C. BjndW EQ All the covenants, stipulations and agreements herein shall extend to, bind and inure to the benefit of the legal representatives, success-,rs and assigns of the respective parties hereto. D. $avarabitity. It a provision hereof shall be finally declared void or illegal by any court or administrative agency having jurisdiction, the entire AgreSfnent shall not be void; but the remaining provisions shall continue in effect as nearly as possiblr, In accordance with the original Intent of the parties. E. Ngtla. Arry notice D /en by one party to the other in connection with this Agreement shall be In writing and shall be sent by registered mail, return receipt requested, with postage and registration fees prepaid: 1. If to Lessor, addressed to: City Manager City of Denton Denton, Texas 78201 2. If to Lessee, addressed for Mr. F.D. Stricider Fox-51 Umited Route 1, Box 102 Denton, rexas 78201 rA Notices shall be deemed to have been received on the date of receipt as shown on the return receipt. F. Heading - The headings used In this Agreement are Intended for convenience of reference only and do not define or limfi the scope j 0. Govarrilirm Lamy. This agreement is to be construed In accordance with the laws of the State of I I Texas. 18 ~.Y'v:. ...r....._ ....~Y.~f r oil .r VIA.,: • i s S IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. CITY OF DENTON, LESSOR I BY: TED BENAVIDES, CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY BY. f i i i APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: FOX-51 LIMITED, LESSEE i BY:_ FRANK 0. STT'RRIICKLER TITLE: 1 THE STATE OF TEXAS § COUNTY OF DENTON § This hsLumeM was eckrtowfedped before ma on the day of -&-l-.&j4g01 by Frank D. Strkkler. { TARY PUBLIC, STATE OF TEXAS J-9 • O MY Commission Expires: t WIWI nikA scat OF IM al` Ml Coe toEvisMrcAAsp 2-0 ~•:-,ems ...~....q++... ' w~~. • T r Agenda ND Agenda tlem . Data CITY of DENTON, TEXAS MUMICIFAL BUILDING • 215 E MLKINNEY • 0ENTON, TEXAS 76201 (817) 566.8290 • DFW METRO 434.2529 MEMORANDUM DATE: April 11, 1997 TO: Mayor and City Council Members FROM: Linda Ratliff Director of Econom c Development 17 SUBJECT: Assignment of Airport Lease RECOMMENDATION: The Airport Advisory Board and staff recommend approval. of the resolution assigning the Fox 51 Limited lease to Ezell Aviation, Inc. SUMMARY: Ezell Aviation, Inc. and staff are completing our negotiations of a lease agreement which will be presented to City Council at your May 6, 1997, meeting. The assignment of the recently amended Fox 51 Limited lease is the first step in this process. The Airport Advisory Board and staff are very excited about the potential for this project. You will receive financial impact estimates which will include increased property tax, lease and fuel flowage revenues. We believe Ezell Aviation's commitment to • provide needed services that are not currently available at the . Denton Municipal Airport will also generate additional traffic and activities at our airport. r 08305A: • • • "Dedicated to Quality Senice" i -101 • 41 • i RESOLUTION NO. I A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEN TON, TEXAS, APPROVING THE ASSIGNMENT BY FOX-51, LIMITED OF THE FIXED BASED OPERATOR AND COMMERCIAL OPERATORLEASES OFAIKPORT PROPERTY CODIFIED INTO ONE LEASE ON APRIL 15,1997 TO EZELL AVIATION, INC., SAID PROPERTY CONSISTING OF APPROXIMATELY 235,218 SQUARE FEET OF LAND; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton has leased airport property to Fox-51, Limited, one parcel being identified as Land "A", Fixed Base Operator Premises consisting of approximalely 56,300 square feet of land, more or fees; and another parcel identified as Commercial Land Prerniaes, Tract I and Trod 11, Tract I cavisting of approximately 105,180.55 square feet of land and Tract 11, land development completion required by January 1, 1998 consisting of approximately 73,737.45 square of land; and WHEREAS, Fore-51, Limited wW a to assign it's interest in the abort Airport Lease Agreement approved by the City Council on April 15, 1997, to Ezell Aviation, Inc.; and WHEREAS, Fox-51, Linvtod is required to obtain the City's written consent to this assignment; NOW, THEREFORE; SECTION L That the City of Denton hereby gives its written consent to the assignment of Fox-51, Limited's Airport Lease Agreement between the City o. Denton dated May 6,1980, and amended on Jwte 16, 1980, and February 19,1985, and the Conmwrcial Operator Leave dated April 1, 1986 and amended on February 2, 1988 and August 20, 1991, pursuant to the assignment dated April 13, 1997 between Fox-51, Limited and Ezell Aviation, lnc,, attached as Exhibit "A". Tbese leases were codified into one lease on April 13, 1997. SECTION 11, That consent to this assignment is subject to and shall be considered valid only for so long as Ercil Aviation, Inc. complies with all turns of the Airport Lease Agreement between the City of Donke, Texts and Fox-51, Limited dated April 15,199 T. SE .TION Ill. That this resolution shall become effective immediately upon its passai c and approval. PASSED AND APPROVED this the day of _ 1997• , JACK MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: • • APPROVED AS TO LEGAL FORM; • HERBERT L. PROUT'Y, CITY ATTORNEY J i BY: VTn 'Pam ;A rA,J'A • 1 April 10, 1997 Nis. Linda Ratliff' Director of Economic Development Denton Municipal Airport 5000 Airport Road Denton, TX 76207 Dear Ms. Ratliff This letter is to serve notice that Ezell A-iation, Inc. has reached an agreement with Fox-51, Limited to accept the assignment of the Fixed Base Operator and Commercial Operator Leases consisting of approximately 235,218 square feet of land that Fox-5 t, Limited has leased at the Denton Municipal Airport. Sincerely, Aran it4nwc Fox-31, Limited A • • • 3 f • i • i April 10, 1099 I of .$I Nelson Ezell d b.a EYUL AV1Ati()N, INC- hall Limited a I 'M4 saved (Wator and CommcrcW Operatrgr Leases that it cu+icn ly~asoe tUtie FDenton, Mor+iclpal A1lporl dcscribod as approxirnetely 235,218 square feel of land rOX•51, I- MITFD IRANK STft1CKI,FR Given under my hand and seal of offico this A day of April, 1991, ?'X. ~Cuk& ,py+ u,,rNcfa r y EZELL AVIATION, INC, R BOX ~ CKI3NRID AIDC'38, ! X 7024 BRE NELSON' EZ1:l.L 1'/ Uiva+ under my haud and seal oroflicc this-LL1 day of April, 107. r ~I 111aaMlan + ~{.`1 Af1DNDAO WAK ~ NOTAN rvowo Mr #TAT& aieall tu c nand or e S aTo of Texas • e i T ~ IMP • • Q ud..~a • • END • c C