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September 11, 2012 Agenda
AGENDA CITY OF DENTON CITY COUNCIL September 11, 2012 After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, September 11, 2012 at 3:00 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: WORK SESSION 1. Citizen Comments on Consent Agenda Items This section of the agenda allows citizens to speak on Consent Agenda Items only. Each speaker will be given a total of three (3) minutes to address any items he/she wishes that are listed on the Consent Agenda. A Request to Speak Card should be completed and returned to the City Secretary before Council considers this item. 2. Requests for clarification of agenda items listed on the agenda for September 11, 2012. 3. Receive a report, hold a discussion and give staff direction regarding the City’s Healthy Incentives Program for employees. 4. Receive a report, hold a discussion, and give staff direction regarding the creation of a Tax Increment Reinvestment Zone for approximately 700 acres of land located north of Airport Road in the City’s industrially zoned area. 5. Receive a report, hold a discussion, and give staff direction on the proposed revisions to City Ordinance 6-26 (Keeping of Fowl) to allow for urban chickens. Following the completion of the Work Session, the City Council will convene in a Closed Meeting to consider specific items when these items are listed below under the Closed Meeting section of this agenda. The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Government Code, as amended, or as otherwise allowed by law. CLOSED MEETING 1.Closed Meeting: A. Consultation with Attorneys – Under Texas Government Code Section 551.071. 1.Consult with and provide direction to City’s attorneys regarding legal issues and strategies associated with Phase I and proposed Phase II Gas Well Ordinance regulation of gas well drilling and production within the City Limits and the extraterritorial jurisdiction, including Constitutional limitations, statutory limitations upon municipal regulatory authority, moratorium on drilling and production and claims associated therewith, including variance requests for relief from the moratorium, statutory preemption and/or impacts of federal and state law and regulations as it concerns municipal regulatory authority and matters relating to enforcement of the ordinance. City of Denton City Council Agenda September 11, 2012 Page 2 B. Deliberations regarding Certain Public Power Utilities: Competitive Matters – Under Texas Government Code Section 551.086. 1. Receive competitive public power information and related commercial information from staff pertaining to the proposed operating budget for the Denton Municipal Electric (DME) department for FY 2012-2013, including without limitation, revenues, expenses, commodity volumes, electric power pricing proposal information, system load characteristics, and commitments; and discuss, deliberate, and consider adoption of the budget and provide staff with direction regarding such matters. 2. Receive a report and a presentation from Denton Municipal Electric staff regarding certain public power competitive and financial matters related to the Request for Proposals No. 4859 issued by the City soliciting proposals for a solar-generated energy facility or facilities for the City of Denton, Texas; discuss, deliberate, provide staff with direction, consider and take final action regarding such matters. C. Consultation with Attorneys – Under Texas Government Code Section 551.071; Deliberations regarding Real Property – Under Texas Government Section 551.072; Deliberations regarding Certain Public Power Utilities: Competitive Matters –Under Texas Government Code Section 551.086. 1. Discuss, deliberate, and receive information from staff and provide staff with direction pertaining to the acquisition of fee lands for public purposes situated in the T.M. Downing Survey, Abstract Number 346, the M.E.P. & P.R.R. Company, Abstract Number 927, and the M.E.P. & P.R.R. Company, Abstract Number 1475, all in the City of Denton, Denton County, Texas; and consultation with the City’s attorneys regarding legal issues associated with the acquisition or condemnation of the tracts referenced above where a public discussion of these legal matters would conflict with the duty of the City’s attorneys to the City of Denton and Denton City Council under the Texas Rules of Disciplinary Conduct of the State Bar of Texas, or would jeopardize the City’s legal position in any administrative proceedings or potential litigation; and receive competitive public power information and competitive financial information from staff regarding plans, proposals for system improvements regarding transmission and distribution systems, and marketing strategies regarding Denton Municipal Electric (“DME”), and discuss, deliberate, provide staff with direction regarding such matters. D. Consultation with Attorneys – Under Texas Government Code Section 551.071; Deliberations regarding Real Property – Under Texas Government Section 551.072. 1.Discuss, deliberate, and receive information from staff and provide staff with direction pertaining to the acquisition of real property interests located (1) in the M.E.P. & P.R.R. Company, Abstract Number 927, located generally in the 500 block of North Mayhill Road; and (2) in the City of Denton City Council Agenda September 11, 2012 Page 3 M.E.P. & P.R.R. Company, Abstract Number 1469, located generally in the 1500 block of North Mayhill Road, all in the City of Denton, Denton County, Texas; and consultation with the City’s attorneys regarding legal issues associated with the acquisition or condemnation of the tracts referenced above where a public discussion of these legal matters would conflict with the duty of the City’s attorneys to the City of Denton and Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas, or would jeopardize the City’s legal position in any administrative proceedings or potential litigation. ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING WILL ONLY BE TAKEN IN AN OPEN MEETING THAT IS HELD IN COMPLIANCE WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH FINAL ACTION, DECISION, OR VOTE IS TAKEN IN THE CLOSED MEETING IN ACCORDANCE WITH THE PROVISIONS OF §551.086 OF THE TEXAS GOVERNMENT CODE (THE ‘PUBLIC POWER EXCEPTION’). THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A CLOSED MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOV’T. CODE, §551.001, ET SEQ. (THE TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA OR TO RECONVENE IN A CONTINUATION OF THE CLOSED MEETING ON THE CLOSED MEETING ITEMS NOTED ABOVE, IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS ACT, INCLUDING, WITHOUT LIMITATION §551.071-551.086 OF THE TEXAS OPEN MEETINGS ACT. Regular Meeting of the City of Denton City Council at 6:30 p.m. in the Council Chambers at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: REGULAR MEETING 1. PLEDGE OF ALLEGIANCE A. U.S. Flag B. Texas Flag “Honor the Texas Flag – I pledge allegiance to thee, Texas, one state under God, one and indivisible.” 2. PROCLAMATIONS/PRESENTATIONS A.Proclamations/Awards 1.Blood Cancer Awareness Month 2.Constitution Week 3. BUDGET ITEMS FOR INDIVIDUAL CONSIDERATION A.Consider adoption of an ordinance of the City of Denton, Texas, levying the ad valorem property tax of the City of Denton, Texas, for the year 2012, on all taxable property within the corporate limits of the City on January 1, 2012, and adopting a tax rate of $0.68975 per $100 of valuation for 2012; providing City of Denton City Council Agenda September 11, 2012 Page 4 revenues for payment of current municipal maintenance and operation expenses and for payment of interest and principal on outstanding City of Denton debt; providing for limited exemptions of certain homesteads; providing for enforcement of collections; providing for a severability clause; and providing an effective date. B.Consider adoption of an ordinance of the City of Denton, Texas, approving the 2012 tax rolls; and providing an effective date. C.Consider adoption of an ordinance of the City of Denton, Texas, adopting the Fiscal Year 2012-13 Annual Program of Services (Budget) and the Capital Improvement Program of the City of Denton, Texas, for the fiscal year beginning on October 1, 2012, and ending on September 30, 2013; and declaring an effective date. D.Consider adoption of an ordinance of the City of Denton, Texas, ratifying the adoption of the Fiscal Year 2012-13 Annual Program of Services (Budget) and the Capital Improvement Program of the City of Denton, Texas, for the fiscal year beginning October 1, 2012, and ending on September 30, 2013 when the Budget will raise more revenue from property taxes than last year’s budget; and providing an effective date. 4. BUDGET 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 Budget Consent Agenda authorizes the City Manager or his designee to implement each item in accordance with the Staff recommendations. The City Council has received background information and has had an opportunity to raise questions regarding these items prior to consideration. Citizens may speak on items listed on the Budget Consent Agenda. A Request to Speak Card should be completed and returned to the City Secretary before Council considers the Budget Consent Agenda. Citizen comments on Budget Consent Agenda items are limited to three minutes. Listed below are bids, purchase orders, contracts, and other items to be approved under the Budget Consent Agenda (Agenda Items A – U. This listing is provided on the Budget Consent Agenda to allow Council Members to discuss or withdraw an item prior to approval of the Budget Consent Agenda. If no items are pulled, Budget Consent Agenda Items A – U below will be approved with one motion. If items are pulled for separate discussion, they may be considered as the first items following approval of the Budget Consent Agenda. A.Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager or his designee, to enter into an Interlocal Agreement with Denton County for the County to provide property tax billing and collection services for the City of Denton; providing a savings clause and providing an effective date. B.Consider adoption of an ordinance approving an agreement between the City of Denton, Texas, and the Denton Chamber of Commerce regarding an Economic Development Partnership; and providing an effective date ($226,259). City of Denton City Council Agenda September 11, 2012 Page 5 C.Consider adoption of an ordinance awarding a contract for the purchase of Software Maintenance for continued vendor support of the Oracle EnterpriseOne (formerly PeopleSoft EnterpriseOne (formerly JD Edwards OneWorld) software as awarded by the State of Texas Department of Information Resources (DIR) through the Go DIRect Program, Contract Number DIR-VPC-03-018; providing for the expenditure of funds therefor; and providing an effective date (File 3100– Purchase of Annual Maintenance for Oracle EnterpriseOne Software Package awarded to Oracle USA, Inc. in the amount of $131,358.91). D.Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Service Access and Support for 3G (third-generation) and 4G/LTE (Long Term Evolution) Wireless Computer Network from the State of Texas Department of Information Resources contract (DIR-SDD-1777) for laptops and cell phones used by City of Denton personnel; providing for the expenditure of funds therefor; and providing an effective date (File 5035– Purchase of Annual Service Access for 3G/4G/LTE awarded to AT&T Mobility in the estimated amount of $72,000). E.Consider adoption of an ordinance approving the expenditure of funds for Wireless Communication Services as approved by the State of Texas Department of Information Resources (DIR) under DIR Sprint/Nextel contract, DIR-SDD- 1780; providing for the expenditure of funds therefor; and providing an effective date (File 5036–Purchase of Annual Wireless Communication Services for Sprint Air Cards and Cell Phones awarded to Sprint/Nextel Network, Inc. in the estimated amount of $105,408). F.Consider adoption of an ordinance approving the expenditure of funds for the purchase of Maintenance for Harris Public Utility Billing System and associated Software Modules available from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4735–Purchase of Maintenance for Harris Public Utility Billing to Harris Computer Systems Inc., in the annual amount of $106,421.34 with a two year option to renew for an estimated three year total of $326,828.02). G.Consider adoption of an ordinance approving the expenditure of funds for the purchase of annual maintenance for Interactive Voice Response and Outage Management System and associated software modules for Denton Municipal Electric (DME) utility available from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 3881–Purchase of Annual Maintenance for Milsoft Utility Systems awarded to Milsoft Utility Solutions in the amount of $62,282.62). H.Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Service for CodeRED Emergency Notification System and CodeRED Weather Warning Service available from only one source in accordance with Texas Local Government Code 252.022, exempting such City of Denton City Council Agenda September 11, 2012 Page 6 purchases from requirements of competitive bids; providing for expenditure of funds therefor; and providing an effective date (File 3964–Purchase of Annual Service for CodeRED Emergency Notification and CodeRED Weather Warning Service awarded to Emergency Communications Network, LLC in the annual amount of $44,299.00 for an estimated three year total of $132,897.00). I.Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Maintenance for VisionAir Public Safety Software System and associated modules used for Police and Fire Department Dispatching and Records Management available from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 2640–Purchase of Annual Maintenance for VisionAir Public Safety Software System awarded VisionAir in the amount of $211,530.96). J.Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Service Access and Support for 3G (third-generation) and 4G/LTE (Long Term Evolution) Wireless Computer network from the Texas Department of Information Resources contract (DIR-SDD-1777) for the Public Safety Mobile Computers used by City of Denton Police, Fire and EMS personnel available from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing the expenditure of funds therefor; and providing an effective date (File 3561–Purchase of Annual Service Access and Support for Enhanced Data rates for 3G (Third-Generation) and 4G/LTE (Long Term Evolution) awarded to AT&T Mobility (DIR-SDD-1777) in the amount of $123,271.32). K.Consider adoption of an ordinance approving the expenditure of funds for the purchase of Summation 360, a product upgrade and hosted solution for the Tele- Works System, along with continued vendor support of the Tele-Works System and associated hardware and software modules available from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 3869–Purchase of Summation 360 upgrade and maintenance for the Tele-Works System awarded to Tele-Works, Inc., in the amount of $80,881.00). L.Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Maintenance for continued vendor support of the Municipal Court Incode Software from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4771–Purchase of Annual Maintenance for Municipal Court Incode Software Package awarded to Tyler Technologies, Inc. in the amount of $54,939.34). City of Denton City Council Agenda September 11, 2012 Page 7 M.Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Maintenance for continued vendor support of the Millennium Library System and associated hardware and software modules available from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 3224– Purchase of Annual Maintenance for Millennium Library System and associated modules awarded to Innovative Interfaces, Inc. in the amount of $83,053). N. Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Maintenance for ITInvolve Configuration Management Software application and Internet Hosting Services from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4986–Purchase of Annual Maintenance for ITInvolve Configuration Management Software awarded to ITInvolve, Inc. for four (4) one-year terms with a first payment of $32,500 for a total contract award of $130,000). O. Consider approval of an ordinance of the City of Denton, Texas amending the schedule of rates contained in Ordinance No. 2011-158 for electric service; providing for a repealer; providing for a severability clause; and providing for an effective date. The Public Utilities Board recommends approval (6–0). P. Consider approval of an ordinance amending the schedule of engineering fees contained in Ordinance No. 2011-159; providing an amendment to the public works overtime inspection fee; providing a repealer; providing for a severability clause; and providing for an effective date. The Public Utilities Board recommends approval (6-0). Q. Consider approval of an ordinance of the City of Denton, Texas providing for the confirmation of the schedule of miscellaneous fees, deposits, billings and procedures for administrative services to city utilities customers contained in Ordinance No. 2011-160; providing for a repealer; providing for a severability clause; and providing for an effective date. The Public Utilities Board recommends approval (6–0). R. Consider approval of an ordinance of the City of Denton, Texas amending the schedule of rates for solid waste service contained in Ordinance No. 2011-161. as authorized by Chapter 24 of the Code of Ordinances of the City of Denton, Texas; providing that the provisions of Sections 26-3, 26-4, 26-5, 26-7, 26-8(a), and 26-9 of the Code of Ordinances of the City of Denton, Texas shall expressly apply to City of Denton solid waste service; providing for the amendment to the residential refuse and recycling collection services rates (Schedule SWR); amending the multi-family household item collection services rate (Schedule SWMFS); amendment to the commercial solid waste refuse collection services and dumpster rates (Schedule SWC); amendment to the commercial recycling services rate (Schedule SWCR); amendment to the sanitary landfill services rates regarding wholesale municipal solid waste rate per ton (Schedule SWL); providing for a repealer; providing for a severability clause; and providing an effective date. The Public Utilities Board recommends approval (6–0). City of Denton City Council Agenda September 11, 2012 Page 8 S. Consider approval of an ordinance amending the schedule of wastewater rates contained in Ordinance No. 2011-162; providing for an amendment in the rates for residential wastewater service (Schedule SR); amending the mobile home park wastewater service (Schedule SMH); amending the commercial and industrial wastewater service (Schedule SC); amending the commercial/industrial wastewater service which measures with dedicated water meters (sub- meters) water for wastewater billing (Schedule SCD); amending the commercial/industrial wastewater service which measures with dedicated water meters (sub-meters) water excluded from wastewater billing (Schedule SCS); amending the septage & chemical toilet disposal at the pecan creek water reclamation plant septage transfer station (Schedule SCH); amending the equipment services facilities and restaurant & food service establishments wastewater service (Schedule SEE); amending the metered wastewater inside and outside corporate limits (Schedule SM); amending the sale of treated wastewater effluent (Schedule SGE); amending the wastewater tap and manhole fees (Schedule ST); adding the collection and transportation services permit (Schedule SWP); providing for a repealer; providing for a severability clause; and providing for an effective date. The Public Utilities Board recommends approval (6–0). T. Consider approval of an ordinance amending the schedule of water rates contained in Ordinance No. 2011-163 for water service rates and water rates; amending the residential water service rate (Schedule WR); amending the commercial/industrial water service rate (Schedule WC); amending the metered water from fire hydrant rate (Schedule WFH); amending the wholesale treated water service rate to the Upper Trinity Regional Water District (Schedule WW); amending the wholesale raw water service rate to Upper Trinity Regional Water District (Schedule WRW); amending the wholesale raw water pass-through rate to Upper Trinity Regional Water District from Lake Chapman into Lake Lewisville (Schedule WCL); amending the water tap and meter fees; providing for a repealer; providing for a severability clause; and providing for an effective date. The Public Utilities Board recommends approval (6–0). U. Consider adoption of an ordinance of the City of Denton, Texas authorizing the approval of an agreement for planning services related to infill, redevelopment and the development review process by and between the City of Denton, Texas and Clarion Associates, LLC, Denver, Colorado; providing for the expenditure of funds therefor; and providing an effective date (File 5053–not-to-exceed $150,000 for agreement for planning services). 5. CONSENT AGENDA Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Consent Agenda authorizes the City Manager or his designee to implement each item in accordance with the Staff recommendations. The City Council has received background information and has had an opportunity to raise questions regarding these items prior to consideration. Listed below are bids, purchase orders, contracts, and other items to be approved under the Consent Agenda (Agenda Items A – R). This listing is provided on the Consent Agenda to allow Council Members to discuss or withdraw an item prior to approval of the Consent Agenda. City of Denton City Council Agenda September 11, 2012 Page 9 If no items are pulled, Consent Agenda Items A – R below will be approved with one motion. If items are pulled for separate discussion, they may be considered as the first items following approval of the Consent Agenda. A. Consider approval of a resolution reviewing and adopting revisions to the Investment Policy regarding funds for the City of Denton; and providing an effective date. The Audit/Finance Committee recommends approval (2-0). B.Consider adoption of an ordinance of the City of Denton, Texas, approving an Amendment to an Economic Development Program Grant Agreement dated August 17, 2010 between the City of Denton and Grand Mesa LLC. assigning the agreement to Schlumberger Technology Corporation and providing an effective date. C.Consider approval of a resolution amending Resolution No. R2009-015 by establishing a standing committee of the City Council of the City of Denton, Texas to be known as the Committee on Citizen Engagement. D.Consider approval of a resolution of the City Council of the City of Denton, Texas accepting the recommendations made by the Citizens Advisory Oversight Committee appointed by the City Council on April 19, 2005, regarding the five- year capital improvements program, respecting the reallocation of funding of street improvements from Austin Street to the Hickory Street Grand Project; and providing an effective date. E.Consider adoption of an ordinance of the City Council of the City of Denton, Texas authorizing the City Manager to execute a contract with Alexander Open Systems (AOS), Inc. to provide EMC Avamar Data Backup Solution and Professional Services as awarded by the State of Texas Department of Information Resources (DIR) through the Go DIRect Program, Contract Number DIR-SDD-1418; providing for the expenditure of funds therefor and providing an effective date. (File 5028–EMC Avamar Data Backup Solution awarded to Alexander Open Systems (AOS), Inc. as a three year lease purchase agreement through De Lage Landen Public Finance LLC totaling $267,197.52). F. Consider adoption of an ordinance approving the expenditure of funds for an upgrade to the Supervisory Control and Data Acquisition (SCADA) hardware and software system for Denton Municipal Electric (DME) available from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4724–SCADA System upgrade for Denton Municipal Electric awarded to Open Systems International, Inc. (OSI) in the amount of $343,590). The Public Utilities Board recommends approval (5-0). G.Consider adoption of an ordinance of the City of Denton, Texas authorizing the expenditure of funds for payments by the City of Denton for Electrical Energy Transmission Fees to those cities and utilities providing energy transmission services to the City of Denton; and providing an effective date (File 4847– City of Denton City Council Agenda September 11, 2012 Page 10 Electrical Energy Transmission Fees for Electric Transmission Texas, LLC in the additional amount of $69,576.90 for a total award of $289,830.60 and Electrical Energy Transmission Fees for Lower Colorado River Authority (LCRA) in the additional amount of $111,809.61 for a total award of $1,057,018.70; for a total expenditure of $1,346,849.30). The Public Utilities Board recommends approval (5-0). H.Consider adoption of an ordinance authorizing the City Manager to execute a Professional Services Agreement (PSA) with Innovative Transportation Solutions, Inc. for Transportation Services as set forth in the contract; and providing an effective date (File 4848–Professional Service Agreement for Transportation Consultant Services to Innovative Transportation Solutions, Inc. for a one year contract in the amount of $126,000, with four (4) one-year options to renew, for a not to exceed total award of $630,000). The Mobility Committee recommends approval (3-0). I.Consider adoption of an ordinance authorizing the City Manager to execute a Professional Services Agreement for indefinite Delivery Survey Services on a work order basis for various City of Denton departments; providing for the expenditure of funds therefor; and providing an effective date (File 4948–awarded to Teague Nall and Perkins, Inc. in an amount not-to-exceed $400,000.00). J. Consider adoption of an ordinance authorizing the City Manager to execute a Professional Services Agreement (PSA) with CP&Y, Inc. and the City of Denton Solid Waste Division for professional engineering and consulting services; and providing an effective date (File 5045–awarded to CP&Y, Inc. in the amount of $135,000). The Public Utilities Board recommends approval (5-0). K. Consider adoption of an ordinance approving the expenditure of funds for the purchase of LON GON Odor Control for the City of Denton Landfill from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4887– Purchase of Odor Control Chemicals for the City of Denton Landfill awarded to Enviro Chemical Research in the annual estimated amount of $50,000 for an estimated three year amount of $150,000). L. Consider adoption of an ordinance accepting competitive bids and awarding a three year contract for the purchase of Water and Sewer Supplies for the City of Denton Water/Wastewater Department and Project 380; providing for the expenditure of funds therefor; and providing an effective date (Bid 4973–Three Year Contract for Water and Sewer Warehouse Inventory and Project 380-Part A awarded by line item to the lowest responsible bidder meeting specification in the unit price amounts shown on Exhibit A for an annual estimated expenditure of $1,000,000 and a three year estimated total of $3,000,000, and Part B awarded to Fortiline Waterworks in the estimated amount of $534,245.22). City of Denton City Council Agenda September 11, 2012 Page 11 M. Consider adoption of an ordinance of the City of Denton, Texas amending Chapter 28 of the Code of Ordinances by revising the 2009 International Energy Conservation Code, as published by the International Code Council, by establishing local amendments thereto; establishing a penalty of a fine not to exceed $2,000.00 for violations hereto; providing for severability; repealing all ordinances in conflict herewith; and providing an effective date. N. Consider adoption of an ordinance of the City of Denton, Texas amending Sections 28-27, 28-28, 28-33, 28-34, 28-123, 28-124, 28-144, 28-145, 28-251, and 28-252 of the Code of Ordinances of the City of Denton, Texas. to provide for the adoption of the 2009 International Building Code, 2009 International Residential Code for one and two family dwellings, 2009 International Fuel Gas Code, 2009 International Plumbing Code, and the 2009 International Mechanical Code all published by the International Code Council, regulating and governing the conditions and maintenance of all property, buildings and structures; by providing the standards for supplied utilities and facilities and other physical things and conditions essential to ensure that structures are safe, sanitary and fit for occupancy and use; providing for the condemnation of buildings and structures unfit for human occupancy and use and the demolition of such structures, providing for the regulation and governing of the construction, altering, movement, enlargement, replacement, repair, equipment location, removal and demolition of detached one and two family dwellings and multiple single family dwellings (townhouses) not more than three stories in height with separate means of egress; providing the regulation and governing of the design construction, quality of materials, erection, installation, alteration, repairs, location, relocation, replacement, addition to, use or maintenance of plumbing and mechanical systems in the City of Denton, Texas; providing for the regulation and governing of fuel gas systems and gas fired appliances; providing for the issuance of permits and collection of fees thereof; providing for amendments thereto; providing for a penalty for violation of a fine not to exceed $2,000.00; providing for a severability clause; repealing all ordinances in conflict therewith; and providing for an effective date. O. Consider adoption of an ordinance amending Article III of Chapter 28 of the Code of Ordinances of the City of Denton, Texas, (“Electrical Code”) by repealing the 2005 National Electrical Code with certain amendments and providing for the adoption of the 2011 National Electrical Code with certain deletions and amendments; providing for a penalty in the amount of $2,000.00 for violations thereof; and providing for an effective date. P. Consider adoption of an ordinance amending Chapter 29 of the Code of the City of Denton, Texas, to provide for the adoption of the International Fire Code, 2009 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 severability; repealing all ordinances in conflict therewith; and providing for an effective date. City of Denton City Council Agenda September 11, 2012 Page 12 Q. Consider adoption of an ordinance finding that a public use and necessity exists to acquire fee simple to a 0.289 acre tract situated in the M.E.P. & P.R.R. Company Survey, Abstract No. 1469, located in the City of Denton, Denton County, Texas, as more particularly described on “Exhibit “A”, attached to the ordinance, located generally in the 1500 block of North Mayhill Road (the “Property Interests”), for the public use of expanding and improving Mayhill Road, a municipal street and roadway; authorizing the City Manager or his designee to make an offer to (1) Robert Earl Edwards, Donald Eugene Edwards, Myrtle Elizabeth Edwards and William Warren Edwards; (2) successors in interest to the Owner to the Property Interests; or (3) any other owners of the Property Interests, as may be applicable, to purchase the Property Interests for the purchase price of Twenty Four Thousand Four Hundred Twenty Two Dollars and No Cents ($24,422.00), and other consideration, as prescribed in the Purchase Agreement, as attached to the ordinance and made a part thereof as Exhibit “B”; authorizing the expenditure of funds therefor; and providing an effective date. R. Consider adoption of an ordinance finding that a public use and necessity exists to acquire (I) fee simple to a 2.115 acre tract; and (II) a slope easement, encumbering a 0.202 acre tract, each located in the M.E.P. & P.R.R. Company Survey, Abstract No. 927, City of Denton, Denton County, Texas, as more particularly described on “Exhibit “A”, attached to the ordinance, located generally in the 500 block of North Mayhill Road (the “Property Interests”), for the public use of expanding and improving Mayhill Road, a municipal street and roadway; authorizing the City Manager or his designee to make an offer to (1) 551 Mayhill Joint Venture; (2) successors in interest to the Owner to the Property Interests; or (3) any other owners of the Property Interests, as may be applicable, to purchase the Property Interests for the purchase price of One Hundred Sixteen Thousand Eight Hundred Fifty Four Dollars and No Cents ($116,854.00), and other consideration, as prescribed in the Purchase Agreement, as attached to the ordinance and made a part thereof as Exhibit “B”; authorizing the expenditure of funds therefor; and providing an effective date. 6. ITEMS FOR INDIVIDUAL CONSIDERATION A. Consider appointments to the Council Committee on Citizen Engagement. B. Consider nominations/appointments to the City’s Boards & Commissions. 1. Airport Advisory Board 2. Community Development Advisory Committee 3. Health & Building Standards Commission 4. Human Services Advisory Committee 5. Parks, Recreation and Beautification Board 6. Planning and Zoning Commission 7. Public Art Committee 8. Public Utilities Board C. Consider approval of a resolution of the City of Denton declaring the completion of the work of the Special Citizens Bond Advisory Committee for the 2012 street bond election; and declaring an effective date. City of Denton City Council Agenda September 11, 2012 Page 13 D. Consider a request for an exception to the Noise Ordinance for the purpose of performing live music for the Mexican Independence Day Fair at the corner of McKinney Street and Railroad Avenue in the vicinity of La Estrella Mini Market on Saturday, September 15, 2012, beginning at 4:00 p.m. and concluding at 1:00 a.m. This request is for an extension of hours from 10:00 p.m. to 1:00 a.m. for amplified sound. The amplified sound will remain at the allowable 70 decibels. Staff recommends extending the hours for amplified sound until 12 midnight. E. Consider adoption of an ordinance amending Ordinance No. 2012-024, as amended by Ordinance. No. 2012-126, establishing a moratorium on certain gas well permits for gas well drilling and production activities within the corporate limits of the City of Denton, Texas by redefining exemptions, providing definitions and replacing terms; establishing exclusions and revising variance procedures; providing for extension of the moratorium; providing a cumulative clause; providing a severability clause; and providing an effective date. 7. CONCLUDING ITEMS A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. B. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. 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 ___________________, 2012 at ________o'clock (a.m.) (p.m.) __________________________________________ CITYSECRETARY NOTE: THECITYOFDENTONCITYCOUNCILCHAMBERSISACCESSIBLEINACCORDANCE WITHTHEAMERICANSWITHDISABILITIESACT.THECITYWILLPROVIDESIGNLANGUAGE INTERPRETERSFORTHEHEARINGIMPAIREDIFREQUESTEDATLEAST48HOURSINADVANCEOF THESCHEDULEDMEETING.PLEASECALLTHECITYSECRETARY'SOFFICEAT349-8309ORUSE TELECOMMUNICATIONSDEVICESFORTHEDEAF(TDD)BYCALLING1-800-RELAY-TXSOTHATA SIGNLANGUAGEINTERPRETERCANBESCHEDULEDTHROUGHTHECITYSECRETARY’SOFFICE. AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions regarding this report may be directed to DEPARTMENT: Human Resources/Risk ManagementScott Payne at 349-7836 ACM: Bryan Langley SUBJECT Incentives Program for employees. BACKGROUND In 2010, the City introduced the Healthy Incentives Program (HIP), a program developed by Risk Management, in conjunction with the Employee Insurance Committee and the Wellness Committee, in an attempt to motivate our employees to change their behavior when it comes to their health. By offering financial incentives (lower monthly health premium amounts for participation) staff hoped the program would motivate employees to take a more active role in their overall health and take positive steps to improve their well-being. -funded health plan to complete an on-line Health Risk Assessment (HRA) through the website of United Healthcare (UHC), habits related to nutrition, exercise, and other lifestyle questions. In addition, the HRA asked for self-reported biometric numbers such as weight, HDL and LDL cholesterol, glucose, and blood pressure. In order to give our employees as much information as possible to allow them to input accurate numbers into the HRA, the City conducted s Benefits and Wellness Fair. Employees who completed the HRA earned a $10 per month reduction in their monthly health premium for 2011. Approximately 62% of our employees participated and received the lower premium. Employees began working on the second phase of the HIP in 2011 in order to earn a lower premium for the 2012 health plan year. Employees who wished to participate had to again . In addition, the employees had to meet at least 4 of 6 biometric measurements (BMI, total cholesterol, HDL cholesterol, blood pressure, glucose, non-smoker) and earn additional participating in a fun run/walk, giving blood, getting a flu shot, getting an eye exam, or having a dental cleaning. Employees who completed the HRA, met at least 4 of 6 biometric benchmarks, and earned an additional 4-6 wellness and activity points (biometric benchmark points + wellness and activity points = 10 points), received a $30 per month ($360 per year) discount on their health premium. While the participation number decreased somewhat, approximately 52% of employees still qualified for the lower premium for 2012. Employees are currently working on phase three of the HIP in order to qualify for the lower premium in 2013. With the opening of the Employee Health Center (clinic) in December 2011, we have been able to integrate the medical staff at the clinic into the HIP. We have also been Agenda Information Sheet September 11, 2012 Page 2 able to utilize an on-line program provided by CareH company, to help make phase three a more comprehensive, robust, and user-friendly program. To qualify for the lower premium in 2013, employees will need to complete a comprehensive blood draw and HRA at the clinic. Employees can earn 100 points for each of five benchmarks (BMI/waist measurement, blood pressure, total cholesterol, glucose, tobacco use) that are met. Employees can also earn points for getting recommended preventive exams and screenings; receiving a dental or vision exam; participating in 5k/fun runs; working online programs through CareHere Connect that are assigned by the clinic physicians in an effort to improve a specific health category; and other activities/events. Employees who earn 1,000 points qualify for the lower monthly health premium amount. To date, 759 employees have had the HRA and blood draw completed at the clinic and 590 employees have already earned 1,000 points or more. Staff will go through the attached presentation with the City Council to discuss the comparison of the 2010 and 2011 HRA and highlight areas where City employees are making improvements in their overall health and wellness. ESTIMATED SCHEDULE OF PROJECT The financial incentives for the second phase of the Healthy Incentives Program began January 1, 2012. The incentives for the third phase will begin on January 1, 2013. PRIOR ACTION/REVIEW (Council, Boards, Commissions) Council previously received a briefing on the Healthy Incentives Program on October 12, 2010. FISCAL INFORMATION The revenue for employee premiums for health insurance is budgeted in 8500.5801. The required employee premium amount to meet our estimated health expenditures for FY 11-12 is equal to the monthly premium charged for those that participate in the Healthy Incentives Program. Those employees that do not participate are charged $30 more per month for their health premiums. Therefore, there is no reduction in revenue to the City for this program. EXHIBITS Exhibit 1 Health Risk Assessment Results Presentation Respectfully submitted: _____________________________ Scott Payne Risk Manager AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: Economic Development Department ACM: Jon Fortune SUBJECT Receive a report, hold a discussion, and give staff direction regarding the creation of a Tax Increment Reinvestment Zone for approximately 700 acres of land located north of Airport Road BACKGROUND At their July 17, 2012 meeting, City Council discussed the proposal to create a TIRZ in the industrially zoned property (Westpark) located north of Airport Road. Council requested additional information, which was provided in an informal staff report on July 27, 2012. The Economic Development Partnership Board met on August 7, 2012, and voted to recommend that City Council consider the following: 1.Create a TIRZ to spur development in our industrially zoned area. All but two small sites lack water, sewer, drainage, and/or are in need of road improvements. Estimated costs for the improvements are $10 - $11 million. 2.Participate at a rate of 40% in the TIRZ for a period of 20 years. Should the TIRZ fail to produce enough revenue for the property owner to recoup the investment, the TIRZ would end at 20 years. 3.Offer additional 20% incentive to the property owner when locating a Combined Heat & Power (CHP) plant user. CHP users are typically manufacturing facilities that produce higher property tax valuation and higher paying jobs. 4. infrastructure. 5.Consider the possibility of selling TIRZ bonds at such point that the TIRZ annual revenue is at a level that can more than sufficiently cover the annual debt payment. 6.Encourage Denton County to participate in the TIRZ. ESTIMATED SCHEDULE OF PROJECT If City Council supports the proposal, staff will begin the notification process required under the TIRZ legislation. In order to establish 2012 as the base year, the TIRZ must be created by December 2012. Agenda Information Sheet September 11, 2012 Page 2 PRIOR ACTION/REVI EW The Economic Development Partnership Board discussed this proposal at seven meetings in 2012 and recommend approval of the TIRZ 5-0. City Council received a report on the TIRZ proposal at their July17, 2012 meeting. FISCAL INFORMATION Based on a projected build-out of 25 years and a participation contribution to the TIRZ at the end of 20 years is estimated at $9.84 million. The potential revenue to the City over the same period is estimated at $14.76 million. This does not take into consideration the revenue from roll back taxes when the Ag exemption is removed from the property. Respectfully submitted: _______________________________ Linda Ratliff, Director Economic Development Department WESTPARK INDUSTRIAL PARK TAX INCREMENT REINVESTMENT ZONE (TIRZ) PROPOSAL Economic Development Department City of Denton July 17, 2012 BUSINESS OPPORTUNITY The WestPark Business Park is the largest industrially zoned property within the City of Denton. There are approximately 650 acres available for development and only a limited number of smaller industrial tracts (20-30 acres) in the area. The City of Denton has been approached by the current property owner (the Rayzor family) with a proposal to invest approximately $10 million in needed public infrastructure so that the property can be developed. The property owner has requested an opportunity to recoup their investment through the establishment of a Tax Increment Reinvestment Zone (TIRZ). The improvement of this property will make it more marketable for industrial users. Without site ready property, individual businesses will be required to add costly infrastructure improvements in order to locate here. In discussing the infrastructure needs with previous industrial prospects, the cost of needed infrastructure outweighs any incentive the City has to offer. EXISTING CONDITIONS WestPark has four existing city streets (see map below): Jim Christal (red), which runs east/west WestParkRoads through the park Oak Street (orange), which connects Jim Christal to I-35 Western Boulevard (blue), which runs north/south. Precision Drive (yellow), which connects to Airport Road, just east of Peterbilt. Jim Christal and Western Blvd. are not built to current Mobility Plan requirements. In addition, Jim Christal and Western Blvd. currently do not have water or wastewater services. Of the 650 acres, only one 27 acre tract has sufficient infrastructure to support a business location. However, this one site will be required (by Code) to extend the utilities along the frontage of the site, and depending upon the traffic impact of the project, may be required to build one or more lanes of Western Blvd. TAX INCREMENT REINVESTMENT ZONE (TIRZ) What is a TIRZ? A TIRZ is a defined area where public infrastructure improvements are deemed necessary to promote development. The costs of the improvements to the area are repaid by the contribution of future tax revenues. Specifically, each taxing entity may choose to dedicate all, a portion or none of the tax revenue that is attributable to the increase in property values. The additional tax revenue that is received from the affected properties is referred to as the tax increment. A TIRZ Board is appointed by the City Council to administer TIRZ funds and projects. The board membership must include representation of other participating taxing entities. CHP Sites. The proposed WestPark TIRZ would include an additional layer of consideration as it pertains to the potential location of a Combined Heat & Power (CHP) facility. The City of Denton wishes to recruit high energy customers of electric, gas, steam and chilled water commodities to the industrial park. Certain tracts within the proposed TIRZ boundaries have been identified as preferred CHP customer sites. These sites will be reserved for CHP customers for a period of 36 months, and a percentage of the revenues generated by these sites will be allocated to the TIRZ Fund if (a) occupied by CHP customers or (b) occupied by non-CHP companies that the City Council has approved for TIRZ funding. At the end of the 36-month term, the City and property owner will assess the interest and activity in the CHP identified tracts. The City and the property owner may negotiate the size and location or even the elimination of the conditions set on CHP land at that time. The actual location of the CHP facility will be determined when the first CHP user is identified. The location of the facility may contribute to changes in the selection of CHP tracts. Tax Abatements in the TIRZ. TIRZ legislation allows taxing entities (other than school districts) to both offer a tax abatement to the property owners in the zone and to participate in TIRZ contributions. Any agreement to abate taxes on real property within a TIRZ must be approved by the board of directors of the zone and by the governing body of each taxing unit that agrees to deposit any of its tax increment into the tax increment fund. If a taxing entity enters into a tax abatement agreement, the taxes that are abated will not be considered in calculating the tax increment of the abating entity or that entity’s deposit into the tax increment fund. Example: The City commits to participating in a TIRZ at 40% of the incremental tax revenue. Company ABC will locate only if given a 50% tax abatement for 5 years. The company’s annual property tax valuation is $50 million. Scenario – no tax abatement City’s property tax City’s 60% TIRZ 40% revenue on $50 M $344,875 $206,925 $137,950 Scenario – with 50% tax abatement City’s property tax Business tax abatement City’s 60% after TIRZ 40% after revenue on $50 M 50% abatement abatement $344,875 $172,438 $103,462 $68,975 In the abatement scenario, the business pays property taxes on 50% of the value, saving them revenue of the $172,438 in taxes. Their payment of $172,438 is captured in the annual totalTIRZ, of which 40% would be allocated to the TIRZ Fund and 60% would be allocated to the City’s General Fund. Once the tax abatement agreement expires, the full amount of property tax revenue would be included in the 60%/40% calculations. INFRASTRUCTURE COSTS PROJECTIONS The property owners provided the following estimates for road, water, wastewater and drainage improvements to be completed in two phases (Table 1). In our last discussion with the property owners, they indicated they may combine both Phase I and II as one project, excluding the improvements to Precision Drive. Table 1: INFRASTRUCTURE COST PROJECTIONS PHASE I Jim Christal and Oak Street paving, drainage, water, wastewater from I- $4,831.104 35 to Western Blvd. Western Blvd. water, sewer, drainage $1,145,257 TOTAL PHASE I $5,976,361 PHASE II Western Blvd paving from Jim Christal to Airport Road $2,126,906 Precision Drive paving, drainage, water and wastewater from Oak $2,638,109 Street to Airport Road. TOTAL PHASE II $4,765,015 TOTAL PROJECT $10,741,376 PROPERTY TAX REVENUE ANALYSIS The property owner provided the tax revenue analysis in Table 2 below, which represents valuation at full build-out. The property owner estimates it will take 25 years to reach build-out. In a May 2012 conversation, we were informed the increase in land valuation was not included in the analysis. Staff researched current land assessed and market valuations and learned that the property has a current market value of $7,065,057. However, due to the Ag exemption, the 2011 assessed value is $157,070. Although the property owner indicated the value of the land could increase as much as $1 per square foot, staff elected to capture one-half of that amount to remain conservative in our projections. Table 2: PROPERTY TAX REVENUE ANALYSIS AT BUILD-OUT Acres to EstimatedEstimatedEstimatedCity Tax CountyTotal DevelopBldg SF Value/SFValueRevenueRevenueRevenue Industrial 236.18 4,115,200 $30.00 $123,456,010 $850,612 $338,269 $1,188,881 Rail- 180.72 3,148,865 $30.00 94,465,958 650,870 258,837 909,707 Served Mixed Use 219.49 2,390,246 $100.00 239,024,610 1,646,880 654,927 2,301,807 Land 636.39 $0.50 $13,860,574 95,603 38,443 134,046 TOTALS636.399,654,312$470,807,152$3,243,965$1,290,475$4,534,440 TIRZ REIMBURSEMENT ASSUMPTIONS: Revenues from residential and multi-family development will not be included in the TIRZ. TIRZ valuation and revenue projections assume that only 30% of the above “Mixed Use” valuation and revenues will be derived from non-residential development. Total estimated valuation for “Mixed Use” is $239,024,610 at build-out. Revenue projections are based on 30% of this value, or $71,707,383. of Estimated Value added each year. Assume 25-year build-out with 1/25 th Assume 20-year TIRZ. Assume Business Personal Property (BPP) equals 40% of Estimated Value. Assume 2% growth in valuation each year. Assume Denton County participation in TIRZ. TIRZ VALUATION AND REVENUE PROJECTIONS Table 3: TIRZ VALUATION AND REVENUE PROJECTIONS ImprovementBPPLandTotalCityCountyAnnualCumulative Year ValuationValuationValuationValuationRevenueRevenueTIRZTIRZ 1 $11,585,173 $4,634,069 554,423 $16,773,665 $69,418 $27,914 $64,888 $64,888 5 47,035,803 18,814,321 2,772,115 85,165,867 352,459 141,728 329,458 985,864 10 106,120,187 42,448,075 5,544,230 170,656,118 706,260 283,996 660,171 3,625,293 15 165,204,570 66,081,828 8,316,345 256,146,370 1,060,062 426,264 990,884 7,918,286 20 $224,288,953 $89,715,581 $11,088,460 $325,092,994 $1,345,397 $541,001 $1,257,599 $13,800,846 The property owner proposes the County participate in the TIRZ. The TIRZ Valuation and Revenue Projections table (above) assumes City and County participation at 40%. Total City TIRZ contribution is estimated at $9.84 million and County TIRZ contribution is estimated at $3.36 million. Cumulative net revenue to the City is estimated at $14.76 million and cumulative net revenue to the County is estimated at $5.94 million. REIMBURSEMENT TERM The property owner’s proposal included the following reimbursement scenario: 1.Each year, the property owner would receive a payment from the TIRZ Fund equal to 40% of the incremental revenue, less any TIRZ administrative expenses incurred. (Based on the TIRZ Valuation and Revenues Projections above, the TIRZ revenue would reach $10 million in year 17.) 2.At such time that the annual revenue from the TIRZ exceeds an amount sufficient to retire TIRZ bond debt, the property owner requests the City sell TIRZ bonds to reimburse the property owner. In this way, the property owner would receive the full reimbursement sooner than by simply receiving the annual revenue throughout the term of the TIRZ. To sell bonds in the amount of $10 million, an annual revenue stream of approximately $1 million is needed. Assuming the above projections are accurate, revenues exceeding $1 million will be generated in year 16, at which time the annual TIRZ reimbursement payments will have totaled approximately $9 million. It would be possible to issue bonds in amounts less than $10 million in earlier years of the TIRZ. For example, in year 12, the TIRZ will have collected $5 million. Based on the current projections, annual TIRZ revenue in year 12 would equal $792,456. It may be possible to issue $5 million in bonds to reimburse the property owner at that time. Timing, interest rates and debt payment terms would have to be considered if bonds are sold. Bonds cannot be sold for terms that exceed the useful life of the improvements. KEY THRESHOLDS AND CONDITIONS OF THE TIRZ 1. In order to establish a base year for the TIRZ, the zone should be created by December Base Year. 31, 2012. 2. The TIRZ revenue will be collected on incremental increases above the 2012 20 Year TIRZ. valuation in years 2013 through 2032 (20 years). 3. Annual payments from the TIRZ Fund will be paid to the property owner, Reimbursement Initiated. once the minimum improvements have been completed. 4. are defined as Phase I and Phase II improvements, excluding Precision Minimum Improvements Drive items. 5. The City intends to construct a CHP facility to assist in the Combined Heat & Power (CHP). attraction of large industrial customers. Specific tracts within the property have been identified as suitable and desirable for CHP customers. These tracts will be reserved for CHP customers for a period of 36 months, after the completion of the Minimum Improvements. The CHP tracts total approximately 275 acres. At the end of the 36-month term, the City and property owner will assess the interest and activity in the CHP identified tracts. The City and property owner may negotiate the size and location or even the elimination of the conditions set on CHP land at that time. The actual location of the CHP facility will be determined when the first CHP user is identified. The location of the facility may contribute to changes in the selection of CHP tracts. Property tax revenue resulting from businesses located in the CHP tracts may CHP Tract Conditions: be included in the TIRZ if: a.The business is a CHP customer, or b.The City Council determines that the benefit of the location of the business outweighs the need to reserve the land for future CHP users. INCENTIVES FOR BUSINESSES LOCATING AT WESTPARK Participation in a TIRZ will impact the City’s ability to provide tax abatements to companies that may locate within the boundaries of the TIRZ. As explained on page three of this report, TIRZ law allows the participating taxing entities to offer tax abatements, with conditions. The TIRZ Board, City Council, and County Commissioners (if participating) must all approve abatement requests. It is staff’s recommendation that the property owner be included in this approval process, as an abatement would result in less revenue being allocated to the TIRZ Fund. It is recommended that a condition of the TIRZ require that all stakeholders – City, County and property owner – must agree that an abatement is necessary in order to close the sale of land and construct the project. Staff recommends that abatements be limited to no more than 50% within the TIRZ. CONCLUSION The WestPark TIRZ Proposal establishes perimeters, thresholds of improvements, terms and conditions for the City, County, and property owner. Should the estimated development schedule be accelerated, the TIRZ could end in less than 20 years. If the County declines to participate, the City may want to consider establishing a 30-year TIRZ, or encourage the property owners to ensure that a more aggressive development schedule is implemented in order for them to receive full reimbursement. AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: Police ACM: Jon Fortune SUBJECT Receive a report, hold a discussion, and give staff direction on the proposed revisions to City Ordinance 6-26 (Keeping of Fowl) to allow for urban chickens. BACKGROUND On October 6, 2009 Dawn Paradise spoke to City Council during the public comments portion of the City Council meeting regarding urban chickens. Ms. Paradise proposed some changes to the current City ordinance governing the keeping of fowl. Following this presentation, staff was asked to research the issue and the suggested changes offered by Ms. Paradise. On June 3, 2010 staff issued an Informal Staff Report (10-044) to Council on this topic. This report outlined staff resea ordinances in other municipalities. The report ended with a list of staff recommendations in terms of ordinance revisions in the event Council decided to move forward with this issue. This staff report was subsequently used in the development of the recently adopted Sustainability Plan. Urban chickens were listed as a strategy to increase the access and availability of locally produced food. One of the action items in the plan was to revise applicable City ordinances to allow for urban chickens. The ability for any citizen to keep and maintain fowl is governed by City Ordinance 6-26. Currently, fowl cannot be kept within the city limits if the pen, yard, or coop is within 150 feet of any residence, business, commercial establishment, school, hospital, or nursing home. Owners are also required to maintain the yard, pen, or coop so that they do not give off offensive odors to others residing in the vicinity or in such a way as to breed or attract insects or rodents. Proposed Ordinance An examination of other city ordinances in Texas regarding the keeping of chickens found a variety of conditions and restrictions. Among the common themes are the number of chickens allowed, the distance to other structures, and the issue of odors. Specifically to Denton, the allowance of urban chickens should be done while addressing the most likely neighborhood Noise concerns can best be handled through a limitation on the number of hens, the prohibition of roosters, and a minimum distance requirement to residential structures, churches, and businesses. Odor concerns are already addressed in the existing ordinance. At large animal Agenda Information Sheet September 11, 2012 Page 2 complaints, as well as an increase in the presence of predator wildlife, can be mitigated through the requirement for all hens to be kept in enclosed yards or pens. Finally, the use of a City Among the requirements would be: 1.A minimum distance of 50 feet to other residential structures, churches, and businesses. 2.A maximum limit of eight (8) hens on any single parcel of property in a residential neighborhood. 3.Prohibiting the keeping of roosters. 4.A requirement that hens be kept in an enclosure or fenced area at all times. 5.A requirement that the owner registers and obtains an annual, renewable permit. A draft of the proposed ordinance is attached for review. OPTIONS 1.Council can direct staff to bring forward the proposed ordinance for consideration at a future Council meeting. 2.Council can direct staff to make changes to the proposed ordinance. PRIOR ACTION/REVIEW 06/03/10 Informal Staff Report (10-044) 03/27/12 Informal Staff Report (2012-035) FISCAL IMPACT Staff does not anticipate any fiscal impact related to this proposed ordinance revision. EXHIBITS Proposed Ordinance Respectfully submitted, Lee Howell Chief of Police Prepared by: Scott Fletcher, Captain s:\legal\our documents\ordinances\12\urbanchickensanimalamendments2.doc ORDINANCE NO. 2012-__________ AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE PROVISIONS OF CHAPTER 6 BY AMENDING SECTION 6-26 TO ADD PROVISIONS TO ALLOW THE KEEPING OF CHICKENS WITHIN THE CITY LIMITS OF DENTON WITH CERTAIN RESTRICTIONS; PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING FOR A SAVINGS CLAUSE; PROVIDING FOR A PENALTY NOT TO EXCEED $500 FOR VIOLATIONS OF THIS ORDINANCE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. Chapter 6 “Animals” of the Code of Ordinances of Denton, Texas is hereby amended by amending Section 6-26 to add subsections (a) through (e) and to re-designate the original subsections as subsections (f) and (g). Section 6-26 shall read as follows: Sec. 6-26. - Keeping of fowl. (a)It shall be unlawful for any owner of any chicken to maintain more than eight (8) hens on any single parcel of property in a residential neighborhood. (b)It shall be unlawful for any person to keep or harbor any chicken within the corporate limits of the city in any pen, shed, coop, enclosed structure, or fenced yard, if any part of such enclosure, structure, or yard is within fifty (50) feet of any residence, business or commercial establishment or office, school, hospital or nursing home. (c) It shall be unlawful for any person to keep or harbor a rooster within the corporate limits of the city. (d)It shall be unlawful for any person to keep or harbor any chicken that is not maintained within an enclosed structure or fenced yard that prevents the animal from straying off of the owner’s property. (e)It shall be unlawful for any person to keep or harbor any chicken within the corporate limits of the city unless the person possess a current and valid permit from the city. (f)It shall be unlawful for any person to keep or harbor any fowl (other than chickens) within the corporate limits of the city in any pen, shed, coop, enclosed structure, or fenced yard, if any part of such enclosure, structure, or yard is within one hundred fifty (150) feet of any residence, business or commercial establishment or office, school, hospital or nursing home. This section shall not apply to pet birds kept within residential or commercial structures, nor shall it apply to birdhouses for the keeping of migrating or wild birds. S:\Legal\Our Documents\Ordinances\12\UrbanChickensAnimalAmendments2.doc (g)It shall be unlawful for any owner of any fowl to maintain yards, pens, sheds, coops, or other enclosures in which such fowl are confined in such a manner as to give off odors offensive to persons of ordinary sensibilities residing in the vicinity, or to breed or attract flies, mosquitoes or other noxious insects or rodents, or in any manner to endanger the public health, safety or welfare, or to create a public nuisance. SECTION 2. 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 invalidity. SECTION 3 . Save and except as amended hereby, all the provisions, sections, subsections paragraphs, sentences, clauses, and phrases of the Code of Ordinances shall remain in full force and effect. SECTION 4 . Any person found guilty of violating this ordinance by a court of competent jurisdiction shall be fined a sum not to exceed five hundred dollars ($500) per day. Each day that a provision of this ordinance is violated shall constitute a separate offense. SECTION 5 . This ordinance providing for a penalty shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record-Chronicle, the official newspaper of the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this the ____ day of _____________, 2012 ____________________________________ MARK A. BURROUGHS, MAYOR ATTESTED: JENNIFER WALTERS, CITY SECRETARY By: _________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: __________________________________ Page 2 of 2 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: Finance ACM: Bryan Langley ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, levying the ad valorem property tax of the City of Denton, Texas, for the year 2012, on all taxable property within the corporate limits of the city on January 1, 2012, and adopting a tax rate of $0.68975 per $100 of valuation for 2012; providing revenues for payment of current municipal maintenance and operation expenses and for payment of interest and principal on outstanding City of Denton debt; providing for limited exemptions of certain homesteads; providing for enforcement of collections; providing for a severability clause; and providing an effective date. BACKGROUND The proposed tax rate of $0.68975 per $100 valuation is used to balance the FY 2012-13 Budget. This proposed tax rate is the same as the prior year, but is above the effective rate of $0.68046. Of the proposed tax rate, $0.47088 will be applied to fund operations and maintenance in the General Fund and $0.21887 will be applied to fund tax-supported General Obligation and Certificates of Obligation debt. The property tax exemptions provided by the City Council are also described in the attached ordinance. Per the direction of the City Council, the over 65 exemption has been increased from $40,000 to $45,000 in FY 2012-13. The attached tax rate ordinance also indicates that the over 65 exemption will be increased to $50,000 in FY 2013-14; however, this increase in the over 65 exemption will need to be approved by the City Council at the time the tax rate is adopted. All other exemptions remain at the same level as in previous years. PRIOR ACTION/REVIEW The FY 2012-13 Budget was submitted to the City Council on July 27, 2012. A workshop to present the details of the Budget to the City Council was conducted on August 2. The City Council also discussed the proposed budget during Work Sessions on August 7, August 14, August 21, and August 28. A Public Hearing on the Budget was held on August 21. In addition, two public hearings were held on the proposed tax rate on August 21 and August 28. Agenda Information Sheet September 11, 2012 Page 2 FISCAL INFORMATION The proposed property tax rate will generate $46,328,517, of which $31,579,391 will be used to fund operations and maintenance in the General Fund and $14,678,435 will be used to fund tax- supported General Obligation and Certificates of Obligation debt. An additional $70,691 will also be generated for the Downtown Tax Increment Financing district. Respectfully submitted: Bryan Langley Assistant City Manager AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: Finance ACM: Bryan Langley ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, approving the 2012 tax rolls; and providing an effective date. BACKGROUND As a component of the budget process, the City is required by Chapter 26 of the Texas Property Tax Code to approve the tax roll on an annual basis. The tax levy is calculated by taking the 2012 Certified Appraisal Roll (excluding property values under protest) and applying the 2012 adopted tax rate. The anticipated collection rate is 100 percent. FISCAL INFORMATION The approval of the tax roll will enable the County to mail tax bills in October 2012. Respectfully submitted: Bryan Langley Assistant City Manager AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: Finance ACM: Bryan Langley ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, adopting the Fiscal Year 2012- 2013 Annual Program of Services (Budget) and the Capital Improvement Program of the City of Denton, Texas, for the fiscal year beginning on October 1, 2012, and ending on September 30, 2013; and declaring an effective date. BACKGROUND The City Council received the FY 2012-13 Proposed Budget on July 27, 2012. A workshop to present the details of the Budget was conducted on August 2, 2012. Further Work Session discussions on the Budget were also held on August 7, August 14, August 21, and August 28. A public hearing on the Proposed Budget was also held on August 21 to solicit citizen feedback. In addition, two public hearings were held on the tax rate on August 21 and August 28. Since the Proposed Budget was presented at the end of July, the City Manager has reorganized his executive staff. In particular, an additional Assistant City Manager position has been added to provide an enhanced focus on service delivery in accordance with the direction and goals of the City Council. In addition, to improve the development process, a contract with Clarion Associates is now also proposed to provide specific recommendations on how to improve the and process. The funding for the organizational changes and the Clarion study are included in the proposed FY 2012-13 Budget. The City was also recently contacted regarding the potential donation and use of a Denton County historical bridge. While a specific location for such a bridge has not been identified, a possible location may be in the Quakertown Park area. As such, funding in the amount of $250,000 is included in the Capital Improvement Program budget to provide resources for the possible relocation and refurbishment of this bridge. The FY 2012-13 Proposed Budget is summarized by fund in the attached Budget Resource and Expenditure Summary (Exhibit 1). Exhibit 2 provides a summary of the proposed General Fund Expenditures by department which includes the adjustments discussed above. Agenda Information Sheet September 11, 2012 Page 2 FISCAL INFORMATION The total FY 2012-13 expenditure budget is listed by fund below: General Fund $94,320,286 General Debt Service Fund 39,913,999 Electric Fund 158,987,525 Water Fund 43,867,930 Wastewater Fund 28,252,407 Solid Waste Fund 25,124,689 Airport Fund 2,492,925 Technology Services Fund 8,972,973 Materials Management Fund 7,438,866 Fleet Management Fund 12,819,861 Risk Retention Fund 2,719,945 Health Insurance Fund 21,812,160 Street Improvement Fund 7,158,774 Recreation Fund 1,950,348 Tourist and Convention Fund 1,508,740 Police Confiscation Fund 155,000 Traffic Safety Fund 896,505 Non-Airport Gas Wells Fund 40,000 Parks Gas Well Fund 800,000 Tree Mitigation Fund 50,000 Public Education Government Fund 154,427 McKenna Trust Fund 10,000 Miscellaneous Special Revenue Fund 40,000 Park Land Dedication Trust Fund 200,000 Park Development Trust Fund 100,000 Total Operating Expenditures $459,787,360 Grant Program $6,296,010 Capital Improvements Program $278,909,663 TOTAL EXPENDITURES $744,993,033 Agenda Information Sheet September 11, 2012 Page 3 EXHIBITS 1. Budget Resource & Expenditure Summary 2. Revised General Fund Expenditures by Department 3. Ordinance Respectfully submitted: Bryan Langley Assistant City Manager BUDGETRESOURCE&EXPENDITURESUMMARY 201213 201011201112201112201213 RESOURCESACTUALBUDGETESTIMATEPROPOSED TOTALOPERATINGRESOURCES TOTALRESOURCES 201011201112201112201213 EXPENDITURESACTUALBUDGETESTIMATEPROPOSED TOTALOPERATINGEXPENDITURES TOTALEXPENDITURES GENERALFUND EXPENDITURESBYPROGRAMSUMMARY 201213 201011201112201112201213 ACTUALBUDGETESTIMATEPROPOSED NEIGHBORHOODSERVICES PUBLICSAFETY TRANSPORTATION ADMINISTRATIVE&COMMUNITYSERVICES AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: Finance ACM: Bryan Langley ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, ratifying the adoption of the Fiscal Year 2012-13 Annual Program of Services (Budget) and the Capital Improvement Program of the City of Denton, Texas, for the fiscal year beginning October 1, 2012, and ending on September 30, 2013 when the Budget will raise more revenue from property taxes than last BACKGROUND Chapter 102 of the Local Government Code (LGC) requires certain provisions to be taken when the adoption of a budget will require raising more revenue from property taxes than in the previous year. Specifically, Chapter 102.007 Section C of the LGC states: Adoption of a budget that will require raising more revenue from property taxes than in the previous year requires a separate vote of the governing body to ratify the property tax increase reflected in the budget. A vote under this subsection is in addition to and separate from the vote to adopt the budget or a vote to set the tax rate required by Chapter 26, Tax C The FY 2012-13 Proposed Budget will require raising more revenue from property taxes than in the previous year. Because of this, the City Council is required to take separate action to vote to ratify the property tax increase in the budget. FISCAL INFORMATION The FY 2012-13 proposed tax rate is $0.68975 per $100 valuation, which is the same tax rate as FY 2011-12. The FY 2012-13 Adopted Budget will generate approximately $2,099,160 or 4.75 percent more property tax revenue than FY 2011-12. Of this amount, $918,440 is tax revenue related to additional value from new construction over the past year. Respectfully submitted: Bryan Langley Assistant City Manager AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: Finance ACM: Bryan Langley ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager or his designee, to enter into an Interlocal Agreement with Denton County for the County to provide property tax billing and collection services for the City of Denton; providing a savings clause and providing an effective date. BACKGROUND This Interlocal Agreement for tax collection services to be performed by Denton County was initially established in March 2007. At that time, the agreement was exclusive to the processing of statements and supplemental payments for the 2007 tax year and subsequent tax years. In August 2008, the City Council renewed the Interlocal Agreement, and included a provision for all tax years to be included in processing supplemental tax payments. The County currently processes tax statements (approximately 42,000 accounts) and tax responsible for billing and collecting payments for all three taxing entities (the City, the County and the School District). This Interlocal Agreement continues to authorize Denton County to process tax statements and payments on behalf of the City of Denton. The County will process the initial tax statements in October, with two delinquent mailings before April 1 and July 1. The most substantial change to the agreement for 2012 is a reduction in price. The price for this service will be reduced from $0.71 per statement to $0.67 per statement. RECOMMENDATION Staff recommends approval of continuing the Interlocal Agreement with Denton County to provide tax processing services for the 2012 tax year. PRIOR ACTION/REVIEW City Council Meeting, March 6, 2007 The City Council approved an Interlocal Agreement with Denton County, establishing tax billing and collection management on behalf of the City of Denton for tax years 2007 and forward. Agenda Information Sheet September 11, 2012 Page 2 City Council Meeting, August 19, 2008 The City Council approved an Interlocal Agreement with Denton County to provide property tax billing and collection services for the City of Denton, for the tax year 2008. City Council Meeting, August 18, 2009 The City Council approved an Interlocal Agreement with Denton County to provide property tax billing and collection services for the City of Denton, for the tax year 2009. City Council Meeting, July 20, 2010 The City Council approved an Interlocal Agreement with Denton County to provide property tax billing and collection services for the City of Denton, for the tax year 2010. City Council Meeting, July 19, 2011- The City Council approved an Interlocal Agreement with Denton County to provide property tax billing and collection services for the City of Denton, for the tax year 2011. FISCAL INFORMATION Under the current Interlocal Agreement, the City pays the County for receipting, bookkeeping, issuing and mailing of the tax statements. Expenditures for the 2011 tax year are currently $30,766. The proposed fees for the 2012 tax year (which are reduced from the 2011 contract) are $0.67 per initial statement processing in October and delinquent statement processing before April 1 and July 1. Based on this rate, contract expenses are expected to be $28,140 in the upcoming fiscal year. Respectfully Submitted By: Bryan Langley Assistant City Manager AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: Economic Development ACM: Jon Fortune SUBJECT Consider adoption of an ordinance approving an agreement between the City of Denton, Texas, and the Denton Chamber of Commerce regarding an Economic Development Partnership; and providing an effective date ($226,259). BACKGROUND The City Council and the Denton Chamber of Commerce first entered into an economic development partnership agreement in 1986. The attached contract represents the 2012-13 annual agreement and funding for the Denton Chamber of Commerce Economic Development program. General Fund and Utility Fund dollars and provides for the administration and operation budget of the Chamber of Commerce that includes: Prospect generation activities Marketing activities, i.e. trade shows, publishing/printing, website(s) administration, marketing materials Economic Development Partnership Board support Small Business Development Center support The Chamber will work closely with the Denton Airport on branding and marketing efforts, which will In addition to City funds, the Chamber of Commerce solicits private sector funding to enhance marketing and allies development efforts. PRIOR ACTION/REVIEW The Economic Development Partnership Board reviewed the $226,259 budget and work plan for the 2012-13 fiscal year at their June 5, 2012 meeting and recommended approval (8-0). FISCAL INFORMATION The proposed contract provides for a total City contribution of $226,259, to be funded as follows: General Fund - $61,430 and Utility Fund - $164,829. EXHIBITS Ordinance Denton Chamber of Commerce Economic Development Agreement Respectfully submitted: _______________________________ Linda Ratliff, Director Economic Development Department AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance awarding a contract for the purchase of Software Maintenance for continued vendor support of the Oracle EnterpriseOne (formerly PeopleSoft EnterpriseOne (formerly JD Edwards OneWorld) software as awarded by the State of Texas Building and Procurement Commission, Department of Information Resources (DIR) through the Go Direct Program, Contract Number DIR-VPC-03-018; providing for the expenditure of funds therefor; and providing an effective date (File 3100-Purchase of Annual Maintenance for Oracle EnterpriseOne Software Package awarded to Oracle USA, Inc. in the amount of $131,358.91). FILE INFORMATION The City of Denton uses the Oracle EnterpriseOne software package for Job Cost, Warehouse Inventory and Procurement, Financials, General Ledger Accounting, Human Resources, Employee Information, and Payroll. It is essential for the City of Denton to keep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. The Technology Services department could not identify any local vendors that could provide software maintenance for this application. Additionally, the Oracle software is only available from a sole source provider and is considered proprietary. The continued utilization of the Oracle EnterpriseOne financial software solution creates continuity and is therefore the best value for the City of Denton. RECOMMENDATION Award to Oracle USA, Inc. in the amount of $131,358.91. PRINCIPAL PLACE OF BUSINESS Oracle USA, Inc. Dallas, TX ESTIMATED SCHEDULE OF PROJECT This expenditure is for annual maintenance for the time period of November 1, 2012 through October 31, 2013. Agenda Information Sheet September 11, 2012 Page 2 FISCAL INFORMATION Funding for this item is budgeted in the fiscal year 2012-2013 Technology Services operating account number 830400.6504. EXHIBITS Exhibit 1: Quote Exhibit 2: Cost Matrix Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 3001 Exhibit 1 . Jason Haydel jason.haydel@oracle.com (512)671-5652 Page 1 of 8Service Contract Number: 5546615 RL_Specified_Agreement_v030109 Jason Haydel (512)671-5652 jason.haydel@oracle.com JasonHaydeljason.haydel@oracle.com Page 2 of 8Service Contract Number: 5546615 RL_Specified_Agreement_v030109 131,358.91 Page 3 of 8Service Contract Number: 5546615 RL_Specified_Agreement_v030109 0.00 131,358.91 Page 4 of 8Service Contract Number: 5546615 RL_Specified_Agreement_v030109 JasonHaydel (512)671-5652jason.haydel@oracle.com Page 5 of 8Service Contract Number: 5546615 RL_Specified_Agreement_v030109 Page 6 of 8Service Contract Number: 5546615 RL_Specified_Agreement_v030109 . - - - - - - - - - - Page 7 of 8Service Contract Number: 5546615 RL_Specified_Agreement_v030109 131,358.91 Agreement: Billing Address (associated with Credit Card) City,State,andZip(associatedwithCreditCard) JasonHaydel jason.haydel@oracle.com AK, AZ, CA, HI, ID, NV, OR, UT, WA: Oracle America, Inc. PO Box 44471 San Francisco, CA 94144-4471 All other States: Oracle America, Inc. PO Box 203448 Dallas,TX75320-3448 Page 8 of 8Service Contract Number: 5546615 RL_Specified_Agreement_v030109 ORDINANCE NO. _______ AN ORDINANCE AWARDING A CONTRACT FOR THE PURCHASE OF SOFTWARE MAINTENANCE FOR CONTINUED VENDOR SUPPORT OF THE ORACLE ENTERPRISEONE (FORMERLY PEOPLESOFT ENTERPRISEONE (FORMERLY JD EDWARDS ONEWORLD)) SOFTWARE AS AWARDED BY THE STATE OF TEXAS BUILDING AND PROCUREMENT COMMISSION DEPARTMENT OF INFORMATION RESOURCES (DIR) THROUGH THE GO DIRECT PROGRAM, CONTRACT NUMBER DIR- VPC-03-018; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 3100-PURCHASE OF ANNUAL MAINTENANCE FOR ORACLE ENTERPRISEONE SOFTWARE PACKAGE AWARDED TO ORACLE USA, INC. IN THE AMOUNT OF $131,358.91 WHEREAS, pursuant to Resolution 92-019, the State Purchasing Building and Procurement Commission has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of state law on behalf of the City of Denton; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described materials, equipment, supplies or services can be purchased by the City through the Building and Procurement Commission programs at less cost than the City would expend if bidding these items individually; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered purchase order for materials, equipment, supplies, or services, shown in the "Purchase Orders" listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMER VENDOR AMOUNT 3100 Oracle USA, Inc. $131,358.91 SECTION 2. By the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the Building and Procurement Commission, the City Manager or his designated representative is hereby authorized to execute the written contract which shall be attached hereto; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the Building and Procurement Commission, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _______ day of _______________________, 2012. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 4-ORD-File 3100 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Service Access and Support for the 3G (third-generation) and 4G/LTE (Long Term Evolution) Wireless Computer Network from the State of Texas Department of Information Resources contract (DIR-SDD-1777) for laptops and cell phones used by City of Denton personnel; providing for the expenditure of funds therefor; and providing an effective date (File 5035-Purchase of Annual Service Access for 3G/4G/LTE awarded to AT&T Mobility in the estimated amount of $72,000). FILE INFORMATION The City of Denton uses the AT&T Mobility 3G/4G/LTE Network to provide wireless access to the City Enterprise Network. This wireless connectivity provides City personnel direct access to the City Network thereby affording direct access to web applications for GIS mapping and work order systems. It is essential for the City of Denton to keep the current wireless connectivity with the established vendor to ensure there is no break in service or support. Department Estimated Expenses Serviced 2012-2013 Legal $1,100 Building Inspections $4,000 Office $6,100 Denton Municipal $24,900 Electric Fleet Services $750 Gas Well $800 Facilities Management $1,152 Fire $5,580 Traffic Operations $350 Parks & Recreation $2,600 Public Communications $480 Office Technology Services $1,344 Water Admin $4,380 AT&T Circuit $18,000 estimated Total $71,536 Agenda Information Sheet September 11, 2012 Page 2 RECOMMENDATION Award to AT&T Mobility in the estimated amount of $72,000. PRINCIPAL PLACE OF BUSINESS AT&T Mobility Hurst, TX ESTIMATED SCHEDULE OF PROJECT Continuation of current wireless service for the 2012-2013 fiscal year. FISCAL INFORMATION The cost of individual instruments and services will be charged to the City Department or Division to which it is assigned. Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 5035 ORDINANCE NO. _______ AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL SERVICE ACCESS AND SUPPORT FOR THE 3G (THIRD-GENERATION) AND 4G/LTE (LONG TERM EVOLUTION) WIRELESS COMPUTER NETWORK FROM THE STATE OF TEXAS DEPARTMENT OF INFORMATION RESOURCES CONTRACT (DIR-SDD- 1777) FOR LAPTOPS AND CELL PHONES USED BY CITY OF DENTON PERSONNEL; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 5035-PURCHASE OF ANNUAL SERVICE ACCESS FOR 3G/4G/LTE AWARDED TO AT&T MOBILITY IN THE ESTIMATED AMOUNT OF $72,000). WHEREAS, pursuant to Resolution 92-019, the State Purchasing Building and Procurement Commission has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of state law on behalf of the City of Denton; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described materials, equipment, supplies or services can be purchased by the City through the Building and Procurement Commission programs at less cost than the City would expend if bidding these items individually; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered purchase order for materials, equipment, supplies, or services, shown in the "Purchase Orders" listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMER VENDOR AMOUNT 5035 AT&T Mobility $72,000 SECTION 2. By the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the Building and Procurement Commission, the City Manager or his designated representative is hereby authorized to execute the written contract which shall be attached hereto; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the Building and Procurement Commission, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _______ day of _______________________, 2012. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 2-ORD-File 5035 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance approving the expenditure of funds for wireless communication services as approved by the State of Texas Department of Information Resources (DIR) under DIR Sprint/Nextel contract, DIR-SDD-1780; providing for the expenditure of funds therefor; and providing an effective date (File 5036-Purchase of Annual Wireless Communication Services for Sprint Air Cards and Cell Phones awarded to Sprint/Nextel Network, Inc. in the estimated amount of $105,408). FILE INFORMATION Sprint/Nextel provides push-to-talk and cell phone services available in a single hand held unit. Solid Waste uses the push-to-talk functionality, as radio communication between the driver and crew leaders. Also, this service provides real-time GPS tracking for all Solid Waste vehicles. The wireless air card service gives access to the City Computer Network, thereby affording direct access to web applications for GIS mapping and work order systems. Other City departments also use these units to communicate with field crews. It is essential for the City of Denton to keep the current wireless connectivity with the established vendor to ensure there is no break in service or support. Currently, the City has 119 air cards and 40 cell phones. Department Estimated Serviced Expenses 2012-2013 $540 Fleet Services $540 Denton Municipal $15,120 Electric Materials Management $1,236 Traffic Operations $1,080 Public Communications $2,052 Office Solid Waste $84,300 Water Admin $540 estimated total $105,408 Agenda Information Sheet September 11, 2012 Page 2 RECOMMENDATION Approve the requested expenditure to Sprint/Nextel Network, Inc. in the estimated amount of $105,408 PRINCIPAL PLACE OF BUSINESS Sprint Irving, Texas ESTIMATED SCHEDULE OF PROJECT Continuation of current wireless communication service for the 2012-13 Fiscal Year. FISCAL INFORMATION The cost of individual instruments and services will be charged to the City Department or Division to which it is assigned. Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 5036 ORDINANCE NO. _______ AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR WIRELESS COMMUNICATION SERVICES AS APPROVED BY THE STATE OF TEXAS DEPARTMENT OF INFORMATION RESOURCES (DIR) UNDER DIR SPRINT/NEXTEL CONTRACT, DIR-SDD-1780; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 5036-PURCHASE OF ANNUAL WIRELESS COMMUNICATION SERVICES FOR SPRINT AIR CARDS AND CELL PHONES AWARDED TO SPRINT/NEXTEL NETWORK, INC. IN THE ESTIMATED AMOUNT OF $105,408). WHEREAS, pursuant to Resolution 92-019, the State Purchasing Building and Procurement Commission has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of state law on behalf of the City of Denton; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described materials, equipment, supplies or services can be purchased by the City through the Building and Procurement Commission programs at less cost than the City would expend if bidding these items individually; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered purchase order for materials, equipment, supplies, or services, shown in the "Purchase Orders" listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMER VENDOR AMOUNT 5036 Sprint/Nextel Network, Inc. $105,408 SECTION 2. By the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the Building and Procurement Commission, the City Manager or his designated representative is hereby authorized to execute the written contract which shall be attached hereto; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the Building and Procurement Commission, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _______ day of _______________________, 2012. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 3-ORD-File 5036 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of Maintenance for Harris Public Utility Billing System and associated Software Modules available from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4735-Purchase of Maintenance for Harris Public Utility Billing to Harris Computer Systems Inc., in the annual amount of $106,421.34 with a two year option to renew for an estimated three year total of $326,828.02). FILE INFORMATION The City of Denton uses the Harris Public Utility Billing System software, North Star module, for maintaining utility customer accounts, producing utility bills, and processing utility revenues. It is essential for the City of Denton to keep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. The Technology Services department could not identify any vendors within the city limits that could provide software maintenance for this application. Therefore, procuring this maintenance from the above vendor is the best value for the City of Denton. Harris Computer Systems, Inc. is the sole source vendor for maintenance for the Harris Public Utility Billing System and associated software modules. Section 252.022 of the Local Government Code provides that procurement of commodities and services that are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body. RECOMMENDATION Award to Harris Computer Systems, Inc., an annual amount of $106,421.34 for the first year with two year option to renew for an estimated three year total of $326,828.02. This agreement provides the best value to the City of Denton by taking advantage of an overall maintenance increase of 2.35% instead of 5.26%, thereby lowering overall costs to the City. PRINCIPAL PLACE OF BUSINESS Harris Computer Systems, Inc. Ottawa, Ontario, Canada Agenda Information Sheet September 11, 2012 Page 2 ESTIMATED SCHEDULE OF PROJECT Annual maintenance is being paid for the time period of November 1, 2012 through October 31, 2013. FISCAL INFORMATION Funding for this item is budgeted in the fiscal year 2012-13 Technology Services operating account 830400.6504. EXHIBITS Exhibit 1: Quote Exhibit 2: Sole Source Letter Exhibit 3: Support Calls Exhibit 4: Cost Matrix Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 4735 Exhibit 1 A Division of Harris Computer Systems Subject:CHANGE ORDER forCITY OF DENTON, TX Change Order #:DENTON_Maintenance_CR1 Author: Paul Mullins IN WITNESS WHEREOF, the parties hereto have caused this Change Order to be duly executed as of This _____________ dayof ______________________, 2012 ______________________________________________________ Paul Mullins Director, Support Services NorthStar Utilities Solutions ______________________________________________________ John Durnell Applications Program SupervisorTechnology Services City of Denton, TX Revisions:Author / DetailsDate Change Request document Paul Mullins July 13, 2012 creation Change Order City of DENTON, TX Maintenance Agreement 1 A Division of Harris Computer Systems This Change Order is made as part of the Agreement for the Acquisition and Supply of Computer Software and City of Denton, TX Related Services dated XX between N. Harris Computer Corporation DENTON 1.Contractual Changes Document Section Impact Software License and Software Maintenance Replace terms of the Standard Support Support Agreement Agreement Define Maintenance Pricing for 2013, with options for extended 2 year and 3 year agreements. 2.Change Request November 1, 2012. 2.1 The commencement date of this agreement is 2.2 Establish a base line maintenance cost structure that is in line with market rates as outlined below, and define the pricing for the full three year period of the contract. Maintenance for any new products or modules will be at the prevailing rate for support when obtained and shall not exceed the maintenance cost structure of the then-current support agreement. 2.3 DENTON will be responsible for applying and managing the installation and DENTON acceptance testing of patch releases for the operating system and database that the NorthStar applications are running on. This will include one full version release per year an unlimited patches, and applies to a single live server and a single disaster recovery server. DENTON is not obligated to install any version releases, nor to install any maintenance releases, should it so elect. Change Order City of DENTON, TX Maintenance Agreement2 A Division of Harris Computer Systems Annual Maintenance Agreement (Renewal Options) 3. 3.1 Option 1 1 Year Maintenance Agreement (Effective Overall Year 1 Year-Over-Year Increase 5.26%) Proprietary Software Maintenance / Qty 2012 2013 Product (Current Year) 5% NorthStar & HHI 1 $40,212.32 42,222.94 eCARe / eBilling 1 17,984.01 18,883.21 Call Centre 1 2,307.44 2,422.81 Test Server 1 2,901.78 3,046.86 EIS 1 1,083.30 1,137.47 mCARE 13,412.33 14,082.95 Reports Anwhere 2,887.50 3,031.88 Sub-Total Proprietary Maintenance $80,788.68 $84,828.12 3rd Party Software Maintenance 6% GUI GUI License 155 11,625.00 12.400.00 GUI License 100 7,500.00 8,000.00 Reporting Cognos Administrator 1 309.00 319.00 Cognos User 1 2,420.00 2,490.00 Sub-Total Third Party Maintenance $21,854.00 $23,209.00 (see section 2.2) TOTAL SOFTWARE MAINTENANCE $102,642.68 $108.037.12 Change Order City of DENTON, TX Maintenance Agreement3 A Division of Harris Computer Systems 3.2 Option 2 2 Year Maintenance Agreement (Effective Overall Year 1 Year-Over-Year Increase 4.47%) (Effective Overall Year 2 Year-Over-Year Increase 3.13%) Proprietary Software Maintenance / Qty 2012 2013 2014 Product (Current Year) 4% 4% NorthStar & HHI 1 $40,212.32 41,820.82 43,493.65 eCARe / eBilling 1 17,984.01 18,703.37 19,451.51 Call Centre 1 2,307.44 2,399.73 2,495.72 Test Server 1 2,901.78 3,017.85 3,138.56 EIS 1 1,083.30 1,126.46 1,171.70 mCARE 13,412.33 13,948.82 14,506.77 Reports Anwhere 2,887.50 3,003.00 3,123.12 Sub-Total Proprietary Maintenance $80,788.68 $84,020.123$87, 381.04 3rd Party Software Maintenance 6% 0% GUI GUI License15511,625.0012.400.0012.400.00 GUI License1007,500.008,000.008,000.00 Reporting Cognos Administrator 1 309.00 319.00 319.00 Cognos User 1 2,420.00 2,490.00 2,490.00 Sub-Total Third Party Maintenance $21,854.00 $23,209.00 $23,209.00 (see section 2.2) TOTAL SOFTWARE MAINTENANCE $102,642.68 $107,229.23 $110,590.04 Change Order City of DENTON, TX Maintenance Agreement4 A Division of Harris Computer Systems 3.3 Option 3 3 Year Maintenance Agreement (Effective Overall Year 1 Year-Over-Year Increase 3.68%) (Effective Overall Year 2 Year-Over-Year Increase 2.35%) (Effective Overall Year 3 Year-Over-Year Increase 2.36%) Proprietary Software Maintenance / Qty 2012 2013 2014 2015 Product (Current Year) 3% 3% 3% NorthStar & HHI 1 $40,212.32 41,418.69 42,661.25 43,941.09 eCARe / eBilling 1 17,984.01 18,523.53 19,079.24 19,651.62 Call Centre 1 2,307.44 2,376.66 2,447.96 2,521.40 Test Server 1 2,901.78 2,988.83 3,078.49 3,170.85 EIS 1 1,083.30 1,115.80 1,149.28 1,183.75 mCARE 13,412.33 13,814.70 14,229.14 14,656.01 Reports Anwhere 2,887.50 2974.13 3,063.35 3,155.25 Sub-Total Proprietary Maintenance $80,788.68 $83,212.34$85, 708.71$88, 279.97 3rd Party Software Maintenance 6% 0% 0% GUI GUI License 155 11,625.00 12.400.00 12.400.00 12.400.00 GUI License1007,500.008,000.008,000.008,000.00 Reporting Cognos Administrator 1 309.00 319.00 319.00 319.00 Cognos User 1 2,420.00 2,490.00 2,490.00 2,490.00 Sub-Total Third Party Maintenance $21,854.00 $23,209.00 $23,209.00 $23,209.00 (see section 2.2) TOTAL SOFTWARE MAINTENANCE $102,642.68 $106.421.34 $108,917.71 $111,488.97 Change Order City of DENTON, TX Maintenance Agreement5 A Division of Harris Computer Systems 4.Standard Support Agreement See SSB Document 5.Hourly Rates The current NorthStar Utilities Solutions standard hourly rate is $200 / hour for the 2012 calendar year. The NorthStar hourly rate will not increase more than 5% per year. 6.Cancellation Policy This contract has options for a 2 or 3 year term. Ninety (90) days written notice is required for cancellation by either party. DENTON shall pay a 90 day penalty to NorthStar, equivalent to 3/12 of maintenance, if cancellation should occur prior to October 31, 2013. The 90 day penalty shall be calculated based on the rate of the current maintenance term, in which the cancellation notice is received.In the event that NorthStar terminates the agreement early, NorthStar Utilities Solutions will be obligated to refund the unused portion of the submitted funds on a prorated basis. A signature below will serve as authorization to proceed with this change request to the annual maintenance. Please Paul Mullins sign and return this by scanned copy or fax to: 613-226-3377 to the attention of . ____________________________________________________________________ Print Name Authorized Signature Date _________________________ _________________________ __________________ Name of Key Contact e-mail Phone Number (if other than Signatory) Change Order City of DENTON, TX Maintenance Agreement6 Exhibit 2 9ãwz,z· Calls opened between: and That are currently Open That are currently Closed All Calls (Open & Closed) Product Filter: Search Results: Opened Call #OpenedStatusSummary By Rita 808683 09/02/11 Sup Quote Reqd Need to move eCARE to CODVWEBF Details... Herrera Rita 808971 09/02/11 Closed Cash Question Details... Herrera Rita 810431 09/08/11 Closed Error trying to load account 4390892-00 in BJ Details... Herrera Rita 811119 09/09/11 Closed Account balance is wrong for account 8000504-0 Details... 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Hestand 849842 12/27/11 Rich Selmi Closed Error Message on Move Orders in Progress Page Details... 849845 12/27/11 Rich Selmi Closed Microsoft Update and mCARE Details... 850780 12/29/11 Rich Selmi Closed Need an Updated mCARE Test Environment Details... Rita 850944 12/29/11 Closed Question... we would like to have an item counter in cash Details... Herrera Rita Unable to delete account 4130159 from the customer 852235 01/03/12 Closed Details... Herrera setup screen Rita Customer Info 854991 01/09/12 Unable to print landscape in NS Details... Herrera Required Rita 855061 01/09/12 Closed Something went wrong with the Deposit Review Process Details... Herrera Rita 857257 01/12/12 Closed Question regarding water surcharges..... Details... Herrera 857536 01/12/12 Rich Selmi Closed Meter Exchanges Not Functioning Correctly Details... Rita 860079 01/19/12 Closed VL reflects the wrong # of bill days. Details... Herrera 9ãwz,z· Rita 863178 01/25/12 Closed Need to reprint several bill files that have been posted. Details... Herrera Rita 863921 01/27/12 Open ebills final bills do not generate notification Details... Herrera Rita eCARE download to Excel does not merge to the correct 864386 01/30/12 Closed Details... Herrera fields. Rita Special Reports Bill Repint feature does not have correct 864407 01/30/12 Closed Details... Herrera flat file Rita 864418 01/30/12 Closed Update eCARE Manager Details... Herrera Rita Something went wrong with deposit review process in 864547 01/30/12 Closed Details... Herrera test Rita 864597 01/30/12 Closed Credit event question Details... Herrera Rita Something went wrong with the posting process for bj 865554 01/31/12 Closed Details... Herrera 90262. Rita 865748 02/01/12 Closed Meter 4961809 - Meter Reading Load issue last month Details... Herrera Rita 866483 02/02/12 Closed Deposit Invoice Arrangement and Deposit Requirement Details... Herrera Rita 867437 02/06/12 Closed Oh boy.... BJ 90375 is bad!! Details... Herrera 867449 02/06/12 Rich Selmi Closed Number of Digits in the Electric Meter Field Details... Rita Account balance history on account 4310746-02 is 867869 02/07/12 Closed Details... Herrera wrong. Rita Something went wrong running the Debt Collectors 867891 02/07/12 Closed Details... Herrera report in TEST. Rita 867897 02/07/12 Closed Questions regarding Meter Reading Screen Details... Herrera Rita 868348 02/08/12 Schedule Patch Issues with credit event expiry dates Details... Herrera Rita 869233 02/09/12 Closed TRying to test MVRS in NS TEST Details... Herrera Rita 870314 02/14/12 Closed trying to test the mvrs for mdms project but Details... Herrera Rita Confirm NS-29104 - Can we add more options to the 871007 02/15/12 Details... Herrera Resolution tenant/owner field? 871069 02/15/12 Rich Selmi Closed Zero Pad Change and Cleanup Details... Rita Can you please tell me how the key value ssamindays 872224 02/20/12 Closed Details... Herrera works? Rita 872328 02/21/12 Closed Apply Branch Patch to LIVE Details... Herrera Rob 873417 02/23/12 Closed Unable to install new printer Details... Keeley Rita 873784 02/23/12 Closed Account balance on account 4020090-48 is wrong. Details... Herrera Rita 874272 02/27/12 Closed Meter 54730 is crashing the load for cycle 21.... Details... Herrera Rita 874689 02/27/12 Closed Something went wrong posting BJ 90821. Details... Herrera Rita 875411 02/29/12 Closed Would like information on Category Codes... Details... Herrera Rita 875446 02/29/12 Closed Premis Information Screen Details... Herrera Rob Confirm 876000 03/01/12 Need source of MVRS file export Details... Keeley Resolution Rita 876847 03/05/12 Closed Got a deadlock error on PAP file creation number 5538 Details... 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Rita 901672 05/17/12 Closed Unable to setup Online Account Access Details... Herrera Rita Account balance history on account 3710167-05 is 902493 05/21/12 Closed Details... Herrera wrong. Rita Need to bill account 4380006-01 ASAP. Error updating 902634 05/21/12 Closed Details... Herrera Billed Demand More screen. Rita Issue with MVRS in TEST NS 6.2.9 - Need for MDMS test 905322 05/30/12 Closed Details... Herrera project ASAP 906236 05/31/12 Rich Selmi Open Orders Linked to Linked Details... Rita 906570 06/01/12 Closed Question regarding credit events Details... Herrera Rita 907148 06/04/12 Closed Error trying to journal print BJ 82056 Details... Herrera Rita Is there a way to change the tenant/owner field for CSA 908829 06/07/12 Closed Details... Herrera t-on's? 909361 06/11/12 Rich Selmi Closed Meter Exchanged Crashed Details... Rita 909690 06/11/12 Closed Problem with BJ 92168.... Details... Herrera 916168 06/29/12 Rita Closed User reported error signing up for eCARE. 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New Search ORDINANCE NO. ____________ AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF MAINTENANCE FOR HARRIS PUBLIC UTILITY BILLING SYSTEM AND ASSOCIATED SOFTWARE MODULES AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH TEXAS LOCAL GOVERNMENT CODE 252.022, EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4735-PURCHASE OF MAINTENANCE FOR HARRIS PUBLIC UTILITY BILLING TO HARRIS COMPUTER SYSTEMS INC., IN THE ANNUAL AMOUNT OF $106,421.34 WITH A TWO YEAR OPTION TO RENEW FOR AN ESTIMATED THREE YEAR TOTAL OF $326,828.02). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as fice of the Purchasing Agent, are hereby approved: FILE NUMBER VENDOR AMOUNT 4735 Harris Computer Systems, Inc. 326,828.02 SECTION 2. The City Council hereby finds that this bid, and the award thereof, constitutes a procurement of items that are available from only one source, including, items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids. SECTION 3. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 4. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under the File 4735 to the City Manager of the City of Denton, Texas, or his designee. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _________ day of ____________, 2012. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ______________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 6-ORD-File 4735 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Maintenance for Interactive Voice Response and Outage Management System and associated software modules for Denton Municipal Electric (DME) utility available from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 3881-Purchase of Annual Maintenance for Milsoft Utility Systems awarded to Milsoft Utility Solutions in the amount of $62,282.62). FILE INFORMATION Denton Municipal Electric (DME) uses the Milsoft Utility Systems software and automated interactive voice response system (IVR) to efficiently respond to electric utility service outages. This IVR solution provides DME with answering and message routing ability, additionally providing caller address identification supporting the Outage Management System (OMS). The OMS solution provides DME with the ability to partially automate the response to power outages and dispatch service crews, inform customers of outage status, and provide estimated restoration times. It is essential for the City of Denton to keep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. The Technology Services department could not identify any local vendors in the city limits that could provide software maintenance for this application. Therefore, procuring this maintenance from the above vendor is the best value for the City of Denton. Milsoft Utility Solutions is the sole source vendor for maintenance for the IVR and OMS systems and associated software modules. Section 252.022 of the Texas Local Government Code provides that procurement of commodities and services that are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body. RECOMMENDATION Award to Milsoft Utility Solutions in the amount of $62,282.62. PRINCIPAL PLACE OF BUSINESS Milsoft Utility Solutions Abilene, TX Agenda Information Sheet September 11, 2012 Page 2 ESTIMATED SCHEDULE OF PROJECT The expenditure for annual maintenance is for the time period of December 16, 2012 through December 15, 2013. FISCAL INFORMATION Funding for this item is budgeted in the fiscal year 2012-2013 Technology Services operating account 830400.6504. EXHIBITS Exhibit 1: Quote Exhibit 2: Sole Source Letter Exhibit 3: Cost Matrix Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 3881 Exhibit 1 ORDINANCE NO. ____________ AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR INTERACTIVE VOICE RESPONSE AND OUTAGE MANAGEMENT SYSTEM AND ASSOCIATED SOFTWARE MODULES FOR DENTON MUNICIPAL ELECTRIC (DME) UTILITY AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH TEXAS LOCAL GOVERNMENT CODE 252.022, EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 3881-PURCHASE OF ANNUAL MAINTENANCE FOR MILSOFT UTILITY SYSTEMS AWARDED TO MILSOFT UTILITY SOLUTIONS IN THE AMOUNT OF $62,282.62). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as asing Agent, are hereby approved: FILE NUMBER VENDOR AMOUNT 3881 Milsoft Utility Solutions $62,282.62 SECTION 2. The City Council hereby finds that this bid, and the award thereof, constitutes a procurement of items that are available from only one source, including, items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids. SECTION 3. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 4. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 3881 to the City Manager of the City of Denton, Texas, or his designee. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _________ day of ____________, 2012. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ______________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 5-ORD-File 3881 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions concerning this acquisition may be directed to DEPARTMENT: Materials Management Kevin Gunn at 940 349-8595 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Service for CodeRED Emergency Notification System and CodeRED Weather Warning Service available from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing for expenditure of funds therefor; and providing an effective date (File 3964-Purchase of Annual Service for CodeRED Emergency Notification and CodeRED Weather Warning Service awarded to Emergency Communications Network, LLC in the annual amount of $44,299.00 for an estimated three year total of $132,897.00) FILE INFORMATION CodeRED Emergency Notification System allows the Emergency Management Coordinator in the Fire Department and other authorized individuals to utilize a web-based program to place telephone calls at high speed to the citizens of Denton during emergency situations such as hazardous materials spills, missing children, special events, etc. The System can also be used to notify groups such as off-duty personnel to report to work, Emergency Operations Center activations, Leadership Team notifications, etc. CodeRED Weather Warning Service is a prerecorded weather warning notification process that can automatically call residents when warnings are issued by the National Weather Service for tornadoes, flash flooding, severe thunderstorms, and winter storms. The Technology Services department could not identify any local vendors that could provide this type of service. Therefore, procuring this service from the above vendor is the best value for the City of Denton. Emergency Communications Network, LLC is the sole source vendor for service of the CodeRED Emergency Notification and CodeRED Weather Warning Service. Section 252.022 of the Texas Local Government Code provides that procurement of commodities and services that are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body. Agenda Information Sheet September 11, 2012 Page 2 RECOMMENDATION Award to Emergency Communications Network, LLC in the annual amount of $44,299.00 for an estimated three year total of $132,897.00. The three year agreement provides the best value for the City of Denton by taking advantage of the annual vendor discount. PRINCIPAL PLACE OF BUSINESS Emergency Communications Network, LLC Ormond Beach, FL ESTIMATED SCHEDULE OF PROJECT This is a three year contract which will provide the CodeREd service through September 30, 2015. FISCAL INFORMATION Funding for this item is budgeted in the fiscal year 2012-2013 Technology Services operating budget account 830500.7804 EXHIBITS Exhibit 1: Quote Exhibit 2: Sole Source Letter Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 3964 Exhibit 1 Exhibit 2 July 12, 2012 Mike Penaluna City of Denton 332 East Hickory Street Denton, TX 76201 ® Re: Emergency Communications Network, LLC CodeREDService Dear Mr. Penaluna: The CodeREDEmergency Notification System provides clients the ability to deliver high-speed, customized pre-recorded mass notifications. The CodeREDsystem utilizes many features that individually and in totality make ECN and CodeRED a unique sole provider. Below aremany of the unique features of CodeRED, a service of the Emergency Communications Network (ECN) that cannot be duplicated by any other system including: ® ECNis the only emergency notification system provider authorized to utilize RealCallpatented technology. RealCall is ECN’s proprietary technology.RealCall enables CodeREDto deliver accurate messages in their entirety without looping or repeating the message to answering machines and other voicemail devices. This revolutionary technology has been proven to maximize the efficiency of the local telephone infrastructure when telephone circuits are in their highest demand. Other technologies will leave partial, truncated or repeated messages - wasting valuable telephone circuit resources when they are most needed. (Unique process, Patented US Patent 6324262 B1) ® CodeREDutilizes a unique Universal ANI, a toll-free call back number that allows residents to call back and hear the last message that was delivered to their phone number. (Unique ability and technology) ® Using Validatatelephone number validation system, CodeREDis able to confirm every number in the customer’s database to verify validity and identify addresses without valid phone numbers. (Unique ability and technology) CodeREDoffers the option to add CodeREDWeather Warning™. Weather Warning delivers automatedsevere weather warnings to residents in the direct path of the storm within seconds of the alert being issued by the National Weather Service. Weather Warning is the only early warning system available to utilize the NOAA Storm Based Warning system’s polygon data to pinpoint a storm and automatically call those who will be impacted first. (Unique ability and technology) The CodeREDMobile Alert app provides an additional location-based method to deliver CodeREDinitiated notifications. The app is geo-aware to only alert subscribers within the affected area of the alert. The CodeREDMobile Alert app allows clients to reach not only residents, but visitors passing through the area and also protects citizens when they travel outside their primary coverage area. (Unique ability and technology) CodeREDhas a Message Origination application for launching Integrated Public Alert and Warning System (IPAWS) messages to open up a new communication channel in support of the FEMA program. (Unique ability and technology) As you can see from the list of unique features above, Denton, Texashas multiple reasons to sole source our CodeRED service. Many of our clients are able to immediately purchase the system through the sole-source method using the totality of these and other benefits. Please feel free to contact me if you have any questions. LEANNE SIEGFRIED GENERAL COUNSEL E M E R G E N C Y C O M M U N I C A T I O N S N E T W O R K TEL: 386 676 0294 x 208 EMAIL: LSiegfried@ecnetwork.com WEB: www.ecnetwork.com OFFICE: 9 Sunshine Blvd. Ormond Beach, FL 32174 Page 1of 1 ORDINANCE NO. ____________ AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL SERVICE FOR CODERED EMERGENCY NOTIFICATION SYSTEM AND CODERED WEATHER WARNING SERVICE AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH TEXAS LOCAL GOVERNMENT CODE 252.022, EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 3964- PURCHASE OF ANNUAL SERVICE FOR CODERED EMERGENCY NOTIFICATION AND CODERED WEATHER WARNING SERVICE AWARDED TO EMERGENCY COMMUNICATIONS NETWORK, LLC IN THE ANNUAL AMOUNT OF $44,299.00 FOR AN ESTIMATED THREE YEAR TOTAL OF $132,897.00) WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as , and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMBER VENDOR AMOUNT 3964 Emergency Communications Network, LLC $132,897 SECTION 2. The City Council hereby finds that this bid, and the award thereof, constitutes a procurement of items that are available from only one source, including, items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids. SECTION 3. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 4. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 3964 to the City Manager of the City of Denton, Texas, or his designee. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _________ day of ____________, 2012. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ______________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 4-ORD-File 3964 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Maintenance for VisionAir Public Safety Software System and associated modules used for Police and Fire Department Dispatching and Records Management available from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 2640-Purchase of Annual Maintenance for VisionAir Public Safety Software System awarded VisionAir in the amount of $211,530.96). FILE INFORMATION The City of Denton uses the VisionAir Public Safety Software Suite for managing all aspects of Public Safety Dispatching as well as managing the Public Safety Records for Police and Fire Departments. It is essential for the City of Denton to keep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. The Technology Services department could not identify any local vendors that could provide software maintenance for this application. Therefore, procuring this maintenance from the above vendor is the best value for the City of Denton. As the developer and owner of the copyright to the VisionAir Public Safety Software Suite, VisionAir is the sole-source vendor for continued support and maintenance for the VisionAir Public Safety Software Suite of modules. Section 252.022 of the Texas Local Government Code provides that procurement of commodities and services that are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body. RECOMMENDATION Award to VisionAir in the amount of $211,530.96. PRINCIPAL PLACE OF BUSINESS VisionAir, Inc. Castle Hayne, NC Agenda Information Sheet September 11, 2012 Page 2 ESTIMATED SCHEDULE OF PROJECT This expenditure is for Annual Maintenance for the time period of October 1, 2012 through September 30, 2013. FISCAL INFORMATION Funding for this item is budgeted in the fiscal year 2012-2013 Technology Services operating budget account 830700.6504. EXHIBITS Exhibit 1: Quote Exhibit 2: Sole Source Letter Exhibit 3: Cost Matrix Exhibit 4: Support Calls Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 2640 Exhibit 1 QTE4000117 Quote 7/17/2012 Date 1 Page ÞÞÞuÝzz z©u- / ·; I ä;r b/ a zt C ãt Bill To: Denton TX, City of Tax ID:EXEMPT 601 East Hickory, Suite E 601 East Hickory, Suite E Contact:Tiffany Wei Tiffany.Wei@cityofdenton.com Denton TX 76205 Email: Fax:(940) 349-8979 Ext. 0000 Maint. Beg. DateMaint. End Date Purchase Order No.Customer IDPayment Due Date:Master No. 2012.2013DENPDFDTX0110/1/201210/1/20129/30/2013 138 QuantityItem NumberDescriptionUnit PriceExt. Price 1 VMECAD002CAD 24x7 Software Support $43,659.22 $43,659.22 #0000196 CAD server and workstations, #062050, #071048, #081061, #091103 GeoRelay 1 VMERMS001RMS 8x5 Software Support $21,495.32 $21,495.32 #000196 RMS Server and workstations, #082008, #082093 Automated Citation Importer, #091066 RMS BarCode 1 VMEJAL001Jail 8x5 Software Support $6,098.49 $6,098.49 #000196 Jail server and workstations, #057122 1 VMEMBL002Mobile 24x7 Software Support $93,057.93 $93,057.93 #000196 Mobile server and clients, #082008 1 VMEFRE001Fire 8x5 Software Support $5,551.51 $5,551.51 #000196 Fire server and clients 1 VMEINF001INFORM 8x5 Software Support $4,043.35 $4,043.35 #017160 1 VMEOTH002Fingerprint Interface Software Support $2,288.21 $2,288.21 #072053 1 GEOMTE002GeoComm GeoLynx 9-1-1 Software Support $7,546.79 $7,546.79 #062050, #091099, #071048, #091103 1 GEOMTE010GeoComm GeoLynx Mobile Software Support $26,586.43 $26,586.43 #062058, #071075 1 VSETRN010LMS User Subscription $803.71 $803.71 #092003 1 VOTOTH002Remote Support Connectivity (Formerly Go To Assist) $400.00 $400.00 Tax Id 56-1747324 $211,530.96 Subtotal Support quote for budgetary purposes (software $0.00 Misc purchased as of this date). Products "prelive" $0.00 Tax will be prorated to the end date of this term. $211,530.96 Total Please advise IMMEDIATELY of any modifications. Remit to: VisionAIR, Inc., PO Box 203485, Dallas, TX 75320-3485 Exhibit 2 ORDINANCE NO. ____________ AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR VISIONAIR PUBLIC SAFETY SOFTWARE SYSTEM AND ASSOCIATED MODULES USED FOR POLICE AND FIRE DEPARTMENT DISPATCHING AND RECORDS MANAGEMENT AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH TEXAS LOCAL GOVERNMENT CODE 252.022, EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 2640-PURCHASE OF ANNUAL MAINTENANCE FOR VISIONAIR PUBLIC SAFETY SOFTWARE SYSTEM AWARDED VISIONAIR IN THE AMOUNT OF $211,530.96). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as hasing Agent, are hereby approved: FILE NUMBER VENDOR AMOUNT 2640 VisionAir Public Safety Software System $211,530.96 SECTION 2. The City Council hereby finds that this bid, and the award thereof, constitutes a procurement of items that are available from only one source, including, items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids. SECTION 3. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 4. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 2640 to the City Manager of the City of Denton, Texas, or his designee. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _________ day of ____________, 2012. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ______________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 6-ORD-File 2640 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Service Access and Support for 3G (third-generation) and 4G/LTE (Long Term Evolution) Wireless Computer Network from the Texas Department of Information Resources contract (DIR-SDD-1777) for the Public Safety Mobile Computers used by City of Denton Police, Fire and EMS personnel available from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing the expenditure of funds therfor; and providing an effective date (File 3561- Purchase of Annual Service Access and Support for Enhanced Data rates for 3G (third-generation) and 4G/LTE (Long Term Evolution) awarded to AT&T Mobility (DIR-SDD-1777) in the amount of $123,271.32). FILE INFORMATION The City of Denton uses the AT&T Mobility 3G/4G/LTE Network along with a dedicated network connection to AT&T Network Operations Center and the Netmotion Virtual Private Network solutions to provide Public Safety MDC (Mobile Data Computer) wireless access to the City Enterprise Network. This combination of networking, hardware and software systems provides public safety personnel direct access to public safety dispatching for Police and Fire, the Records Management System, and the Denton Repeat Offender Program. This system is certified by the Texas Law Enforcement Telecommunications System (TLETS) to access the National Criminal Justice Information System network. It is essential for the City of Denton to maintain the current wireless connectivity with the established vendor to ensure continued service and support of this network system. AT&T Mobility is the sole-source vendor for 3G/4G/LTE wireless connectivity in the Denton area. Section 252.022 of the Local Government Code provides that procurement of commodities and services that are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body. If the City chose to change wireless carriers, the equipment, professional services, and telecommunication changes would cost the City approximately $130,000 and require approval from TLETS to switch to a new carrier. Therefore, continued use of the AT&T Mobility 3G/4G/LTE network is the best value for the City of Denton. RECOMMENDATION Award to AT&T Mobility in the amount of $123,271.32. Agenda Information Sheet September 11, 2012 Page 2 PRINCIPAL PLACE OF BUSINESS AT&T Mobility Dallas, TX ESTIMATED SCHEDULE OF PROJECT Monthly access is being paid for the time period from October 1, 2012 through September 30, 2013. FISCAL INFORMATION Funding for this item is budgeted in the fiscal year 2012-2013 Technology Services operating budget account 830700.7944. EXHIBITS Exhibit 1: Quote Exhibit 2: Sole Source Exhibit 3: Cost Matrix Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 3561 Exhibit 1 To: City of Denton Attn: Tiffany Wei July 31, 2012 From: Sue Northrup Government Account Executive AT&T 208 S. Akard Dallas, Tx. 75202 972.754.8937 Monthly Recurring Charge:Account # 994860867 $69.99 per line less $10.00 credit - $18.20 discount = $41.79 per line $8441.58 Monthly $41.79 x 202 = Monthly Recurring Charge in addition to rate plan above: Billed from Mobility: Monthly Non-Recurring EVPC $420 .00$1,995.00 202 IP Addresses $606.00 DIR Billing : Accunet T1 access per month $269.64 $756.00 T1 MPLS Port per month $187.14 $1428.00 Total per month $ 456.78 Total Monthly Costs: $9,924.36 Total Non-recurring Costs(IC): $4,179.00 *This pricing exclusive of additional service fees, from DIR billing, but these fees will probably be close to current service fees that are charged for the Frame Relay. AT&T Mobility will provide Mobility rate plan/ services to the City of Denton under the Cellular Voice and Data Access Services Contract, Contract No. DIR-SDD-1777. The MPLS portion billed via DIR is through the DIR TEXAN NG Agreement –CTSA-005. This agreement is expected to be renewed for subsequent terms beginning October, 2012. The City of Denton is able to automatically renew their participation in this agreement unless prices increase more than 15% in one year. Confidential - 1 - August 2010 Exhibit 1 Respectfully submitted, Sue Northrup Confidential - 2 - August 2010 Exhibit 2 October 1, 2012 through September 30, 2013 AT&T Mobility is the sole source provider of wireless internet access compatible with the hardware utilized by the City of Denton. The agreement is expected to be renewed for subsequent terms beginning in October 2012. Sue Northrup Government Account Executive 214-754-8937 sue.northrup@att.com Confidential - 1 - August 2012 ORDINANCE NO. ____________ AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL SERVICE ACCESS AND SUPPORT FOR 3G (THIRD- GENERATION) AND 4G/LTE (LONG TERM EVOLUTION) WIRELESS COMPUTER NETWORK FROM THE TEXAS DEPARTMENT OF INFORMATION RESOURCES CONTRACT (DIR-SDD-1777) FOR THE PUBLIC SAFETY MOBILE COMPUTERS USED BY CITY OF DENTON POLICE, FIRE AND EMS PERSONNEL AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH TEXAS LOCAL GOVERNMENT CODE 252.022, EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING THE EXPENDITURE OF FUNDS THERFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 3561- PURCHASE OF ANNUAL SERVICE ACCESS AND SUPPORT FOR ENHANCED DATA RATES FOR 3G (THIRD-GENERATION) AND 4G/LTE (LONG TERM EVOLUTION) AWARDED TO AT&T MOBILITY (DIR-SDD-1777) IN THE AMOUNT OF $123,271.32). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as hereby approved: FILE NUMBER VENDOR AMOUNT 3561 AT&T Mobility $123,271.32 SECTION 2. The City Council hereby finds that this bid, and the award thereof, constitutes a procurement of items that are available from only one source, including, items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids. SECTION 3. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 4. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 3561 to the City Manager of the City of Denton, Texas, or his designee. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _________ day of ____________, 2012. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ______________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 5-ORD-File 3561 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn 349-8595 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of Summation 360, a product upgrade and hosted solution for the Tele-Works System, along with continued vendor support of the Tele-Works System and associated hardware and software modules available from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 3869-Purchase of Summation 360 upgrade and maintenance for the Tele-Works System awarded to Tele-Works, Inc., in the amount of $80,881.00). FILE INFORMATION The City of Denton uses the Tele-Works System to provide access to interactive applications and associated payment services for court citations and utility billing, and to search building permits and schedule inspections. The current release of the Tele-Works System will not support Payment Card Industry (PCI) compliance. With the Summation 360 upgrade and hosted solution, the City of Denton will have the capability to meet PCI compliance requirements for processing credit cards. This solution will shift responsibility in complying with PCI regulations from the City of Denton to a vendor isk and liability issues for mishandling credit card payments. This solution also provides integrated customer notifications for utility accounts billing and account status via text and e-mail messages. Utility accounts billing and status may be viewed from the Internet portal reducing the need for paper billing. In addition, a mobile version of the software is available allowing utility customers to view bills and account status from a smart phone. It is essential for the City of Denton to keep its maintenance current with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. The Technology Services department could not identify any vendors within the city limit that could provide software maintenance for this application. Therefore, purchasing this maintenance from the above vendor is the best value for the City of Denton. Agenda Information Sheet September 11, 2012 Page 2 FILE INFORMATION (CONTINUED) Tele-Works, Inc. is the sole source vendor for maintenance for the Tele-Works System and associated hardware and software modules. Section 252.022 of the Texas Local Government Code provides that procurement of items that are only available from one source do not have to be competitively bid. RECOMMENDATION Approve the continued software and hardware maintenance for the Tele-works System in the amount of $4,881 and the upgrade to Summation 360 hosted solution in the amount of $76,000 for a total award to Tele-Works, Inc. of $80,881. PRINCIPAL PLACE OF BUSINESS Tele-Works, Inc. Blacksburg, VA ESTIMATED SCHEDULE OF PROJECT Maintenance for the existing software and hardware will be from November 1, 2012 through completion of the upgrade. The Summation 360 upgrade and hosted solution will be completed by February 1, 2013 with maintenance to be provided through September 30, 2013. FISCAL INFORMATION Funding for this item is budgeted in the fiscal year 2012-2013 Technology Services operating account number 830400.6504. Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance Exhibit 1: Quote Exhibit 2: Sole Source Letter Exhibit 3: Cost Matrix 1-AIS-File 3869 Exhibit 1 · · o o o o SOW7824 City of Denton, TX Page 1 of 1 · · · · · · · · · · o o o · · · · · · · · · · · · · · · · · · · · · · · · · Exhibit 2 ORDINANCE NO. ____________ AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF SUMMATION 360, A PRODUCT UPGRADE AND HOSTED SOLUTION FOR THE TELE-WORKS SYSTEM, ALONG WITH CONTINUED VENDOR SUPPORT OF THE TELE-WORKS SYSTEM AND ASSOCIATED HARDWARE AND SOFTWARE MODULES AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH TEXAS LOCAL GOVERNMENT CODE 252.022, EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 3869-PURCHASE OF SUMMATION 360 UPGRADE AND MAINTENANCE FOR THE TELE-WORKS SYSTEM AWARDED TO TELE-WORKS, INC., IN THE AMOUNT OF $80,881.00). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as , and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMBER VENDOR AMOUNT 3869 Tele-Works, Inc. $80,881 SECTION 2. The City Council hereby finds that this bid, and the award thereof, constitutes a procurement of items that are available from only one source, including, items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids. SECTION 3. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 4. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 3869 to the City Manager of the City of Denton, Texas, or his designee. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _________ day of ____________, 2012. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ______________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 5-ORD-File 3869 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Maintenance for continued vendor support of the Municipal Court Incode Software from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4771-Purchase of Annual Maintenance for Municipal Court Incode Software Package awarded to Tyler Technologies, Inc. in the amount of $54,939.34). FILE INFORMATION The City Council approved the purchase of the Incode software package for Municipal Court during the formulation of the Fiscal Year 2009-10 Budget. The new software package was proposed because the current software package was no longer meeting the needs of the Court in terms of flexibility in data management and reporting tools. In researching new programs to recommend for purchase, site visits were conducted in 2009 by a City team including a member of the Technology Services staff, the Municipal Court Administrator, and the Municipal Judge. -world application in the City of Carrollton, the recommendation to purchase Incode was proposed and approved. It is essential for the City of Denton to keep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. The Technology Services department could not identify any vendors within the city limit that could provide software maintenance for this application. Therefore, purchasing this maintenance from the above vendor is the best value for the City of Denton. Tyler Technologies, Inc. is the sole-source vendor for maintenance for the Incode Software Suite of modules. Section 252.022 of the Texas Local Government Code provides that procurement of items that are only available from one source, do not have to be competitively bid. RECOMMENDATION Award to Tyler Technologies, Inc. in the amount of $54,939.34 Agenda Information Sheet September 11, 2012 Page 2 PRINCIPAL PLACE OF BUSINESS Tyler Technologies, Inc. Lubbock, TX ESTIMATED SCHEDULE OF PROJECT This expenditure is for Annual Maintenance for the time period of October 1, 2012 through September 30, 2013. FISCAL INFORMATION Funding for this item is budgeted in the fiscal year 2012-13 Technology Services operating account number 830400.6504. EXHIBITS Exhibit 1: Quote Exhibit 2: Sole Source Exhibit 3: Cost Matrix Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 4771 !"#$%&'( Exhibit 1 #$% &' ()*&+ ! 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(%)#(I#(%/%&",- #-"-'# &",- #-"-'#%:#(, $;%3<1<4714% %17<31<4714 012166577%012414586% P"?#(J,'*#%L > %G*"--#+%/%&",- #-"-'# &",- #-"-'#%:#(, $;%3<1<4714% %17<31<4714 012414586%01248353F% PS%G ( %) , #%C- #(J"'#%/%&",- #-"-'# &",- #-"-'#%:#(, $;%3<1<4714% %17<31<4714 012816587%0129715EF% ' %G (>%/%&",- #-"-'# &",- #-"-'#%:#(, $;%3<1<4714% %17<31<4714 0129F7577%012F9E567% '' %LHTG%/%&",- #-"-'# &",- #-"-'#%:#(, $;%3<1<4711% %17<31<4714 0431577%046E517% =>? -%@&/AB777CCC%@*#(!"+%D#'#,> %:(,- #(%%/%&",- #-"-'# &",- #-"-'#%:#(, $;%F<1<4714% %17<31<4714 0431577%046E517% =>? -%@&/AB777CCC%@*#(!"+%D#'#,> %:(,- #(%%/%&",- #-"-'# &",- #-"-'#%:#(, $;%F<1<4714% %17<31<4714 ,-./$./$01,$20$.031.)4 !"#$%&'( #$% &' ()*&+ ! " %!#&!"#$ !$!" !! ! #$% &' (),-./0)1&), '()* )+ ,-+ ./*0 '()* )+ ,-+ ./*0 ./*0 '()* )./*0 '()* ) ! 1 23 456/))(0 7*8((* ! 1 23 456/))(0 7*8((* '()* )'()* ) ,-+ #9!" ,-+ #9!" )&** ($+ !"$+ 0431577%046E517% =>? -%@&/AB777CCC%@*#(!"+%D#'#,> %:(,- #(%%/%&",- #-"-'# &",- #-"-'#%:#(, $;%F<1<4714% %17<31<4714 0431577%046E517% =>? -%@&/AB777CCC%@*#(!"+%D#'#,> %:(,- #(%%/%&",- #-"-'# &",- #-"-'#%:#(, $;%F<1<4714% %17<31<4714 0431577%046E517% =>? -%@&/AB777CCC%@*#(!"+%D#'#,> %:(,- #(%%/%&",- #-"-'# &",- #-"-'#%:#(, $;%F<1<4714% %17<31<4714 0E35F9%0E9539% &#$,"%:+ ?% !" #$%G"?*%H("U#(%/%&",- #-"-'# &",- #-"-'#%:#(, $;%F<1<4714% %17<31<4714 0E35F9%0E9539% &#$,"%:+ ?% !" #$%G"?*%H("U#(%/%&",- #-"-'# &",- #-"-'#%:#(, $;%F<1<4714% %17<31<4714 &#$,"%:+ ?% !" #$%G"?*%H("U#(%/%&",- #-"-'#0E35F9%0E9539% &",- #-"-'#%:#(, $;%F<1<4714% %17<31<4714 0E35F9%0E9539% &#$,"%:+ ?% !" #$%G"?*%H("U#(%/%&",- #-"-'# &",- #-"-'#%:#(, $;%F<1<4714% %17<31<4714 0E35F9%0E9539% &#$,"%:+ ?% !" #$%G"?*%H("U#(%/%&",- #-"-'# &",- #-"-'#%:#(, $;%F<1<4714% %17<31<4714 0431577%046E517% =>? -%@&/AB777CCC%@*#(!"+%D#'#,> %:(,- #(%%/%&",- #-"-'# &",- #-"-'#%:#(, $;%F<1<4714% %17<31<4714 0431577%046E517% =>? -%@&/AB777CCC%@*#(!"+%D#'#,> %:(,- #(%%/%&",- #-"-'# &",- #-"-'#%:#(, $;%F<1<4714% %17<31<4714 0431577%046E517% =>? -%@&/AB777CCC%@*#(!"+%D#'#,> %:(,- #(%%/%&",- #-"-'# &",- #-"-'#%:#(, $;%F<1<4714% %17<31<4714 0431577%046E517% =>? -%@&/AB777CCC%@*#(!"+%D#'#,> %:(,- #(%%/%&",- #-"-'# &",- #-"-'#%:#(, $;%F<1<4714% %17<31<4714 0431577%046E517% =>? -%@&/AB777CCC%@*#(!"+%D#'#,> %:(,- #(%%/%&",- #-"-'# &",- #-"-'#%:#(, $;%F<1<4714% %17<31<4714 0467577%0467577% )Q? #!%) J U"(#%/%&",- #-"-'# &",- #-"-'#%:#(, $;%1<1<4767% %14<31<4767 042E7B577%042E7B577% O#-#("+%P#$.#(%V- -/C-' $#W%C- #(J"'#%V>"Q!#- %,!> ( W &",- #-"-'#%:#(, $;%B<1<4714% %17<31<4714 %&'( $,'(!"=$>?@ABCBDC@ 5' #$ '($6 7"&8 $! 9$!::"67!;" $(!< # ,-./$./$01,$20$.031.)4 Exhibit 2 ORDINANCE NO. ____________ AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR CONTINUED VENDOR SUPPORT OF THE MUNICIPAL COURT INCODE SOFTWARE FROM ONLY ONE SOURCE IN ACCORDANCE WITH TEXAS LOCAL GOVERNMENT CODE 252.022, EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4771-PURCHASE OF ANNUAL MAINTENANCE FOR MUNICIPAL COURT INCODE SOFTWARE PACKAGE AWARDED TO TYLER TECHNOLOGIES, INC. IN THE AMOUNT OF $54,939.34). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as hereby approved: FILE NUMBER VENDOR AMOUNT 4771 Tyler Technologies, Inc. $54,939.34 SECTION 2. The City Council hereby finds that this bid, and the award thereof, constitutes a procurement of items that are available from only one source, including, items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids. SECTION 3. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 4. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 4771 to the City Manager of the City of Denton, Texas, or his designee. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _________ day of ____________, 2012. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ______________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 5-ORD-File 4771 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Maintenance for continued vendor support of the Millennium Library System and associated hardware and software modules available from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 3224-Purchase of Annual Maintenance for Millennium Library System and associated modules awarded to Innovative Interfaces, Inc. in the amount of $83,053). FILE INFORMATION The City of Denton uses the III Millennium software and associated modules for maintaining Library patron accounts, managing the Library collection, and processing fines and fees. It is essential for the City of Denton to upkeep current maintenance with the software vendor in order to ensure availability of upgrades, software fixes, and access to knowledge and support resources. The Technology Services department could not identify any vendors within the city limits that could provide software maintenance for this application. Therefore, procuring this maintenance from the above vendor is the best value for the City of Denton. Innovative Interfaces, Inc. is the sole source vendor for maintenance for the Millennium Library System and associated hardware and software modules. Section 252.022 of the Texas Local Government Code provides that procurement of commodities and services that are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body. RECOMMENDATION Award to Innovative Interfaces, Inc. in the amount of $41,515 for maintenance fees and $41,538 for subscription renewals for a total award of $83,053. (Total shown on last page of Exhibit 1). PRINCIPAL PLACE OF BUSINESS Innovative Interfaces, Inc. Emeryville, CA Agenda Information Sheet September 11, 2012 Page 2 ESTIMATED SCHEDULE OF PROJECT This expenditure is for Annual Maintenance for the time period of November 1, 2012 through October 31, 2013. FISCAL INFORMATION Funding for this item is budgeted in the fiscal year 2012-2013 Technology Services operating account 830400.6504. EXHIBITS Exhibit 1: Quote/ Millennium Library System Fee Schedule Exhibit 2: Sole Source Letter Exhibit 3: Cost Analysis Library Maintenance Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 3224 Exhibit 1 DENTON PUBLIC LIBRARY SYSTEM August 1, 2012 MILLENNIUM MAINTENANCE: November 1, 2012 to October 31, 2013 For the period TOTAL: $41,515 THIS INFORMATION IS CONFIDENTIAL BETWEEN DENTON PUBLIC LIBRARY SYSTEM AND INNOVATIVE INTERFACES, INC. ______________________ Sarita Sdoeung Senior Invoicing Specialist Exhibit 1 HOSTED MAINTENANCE AND SUPPORT SERVICES AGREEMENT Term of Agreement: November 1, 2012 a)The term of this Agreement is for the period through October 31, 2013 at $41,515 per annum, in advance, and covers the 1 . servers mentioned in Hosted Services Price Quotation provided to Future maintenance charges may be subject to a price increase not to exceed five (5%) percent per year of the yearly maintenance amount. If the Library adds any additional Innovative Software requiring network resources, after initial on-line access, an additional q for the required resources, and upon the LibraryÔs acceptance of purchase of quoted services, this Agreement shall be automatical include those services. If the Library adds any additional Innovative Interfaces Software modules to the System after the initial installation, t services shall be extended to cover the additional Software. Th charges for such Software shall be based upon Innovative Interfa maintenance rates. The additional cost of coverage for the addi be added to the annual maintenance amount. Credit card payments are subject to a 3.5% fee for any invoices Scope of Agreement: b) This Maintenance Agreement covers the Innovative-Owned software, network infrastructure and server hardware hosting the Software for the Library. Maintenance of peripheral hardware purchased from Innovative Int responsibility of the Library. Service Level Agreement: c) Innovative will deliver hosted services with a goal of 100% uptime, excluding scheduled maintenance which may be scheduled up to 48 hours in advance. In the event that unplanned Network or Hardware downtime occurs, Innovative will offer a credit of 10% of the monthly hosting fee for each hour of downtime, up to 100% of the monthly hosting fee per incident, with a cap of 2 months credit of hosting fees per calendar year Service Availability: d)Innovative will provide 24x7x365 monitoring of the hosted server and infrastructure will make its best efforts to return c receipt and repair Software within 48 hours of notice, excluding holidays. Reported issues will be triaged and addressed based on criteria: Target Target Severity Description Response Resolution 1 This amount is excluded of taxes. The Library will be responsible for allapplicable taxes. Exhibit 1 Server Down or Innovative Hosted 15 Urgent Services Network is inaccessible. No 1 Hour Minutes Innovative Hosted products are accessible. Innovative Hosted Server performance or ASAP network performance is impacted. 1 Hour 24 Hours Innovative Software is functional. Inquiries about Innovative Hosted Server Routine 4 hours 48 Hours or Innovative Hosted Services Network Backup Schedule: e) Innovative will perform daily incremental and weekly full backs of the hosted innovative software and data. Backups will be stored off-site and will be retained for a period of two weeks in the event that a restoration from backup is needed. Disaster Recovery: f) In the event that a disaster renders the Innovative Hosted Services Infrastructure inoperable, Innovative will make best efforts to restore business operations at another Innovative Hosted Facility, using the then most current backups available. A credit of hosted services fees, per the aforementioned Service Level Agreement in this document is applicable in Disaster Recovery situations. Data Ownership: g) The Library is the sole owner of the patron and catalog data on the Hosted Innovative Servers and is encouraged to insure such data as deemed appropriate by the Library. Data Security: h) The Library’s catalog and patron data will be accessible by authorized Innovative Staff for the purposes of maintenance, support and backup management. Library staff may access catalog and patron data at the sole discretion and enforcement of the Library. In the event that patron or catalog data is requested by a legal authority, such inquiries will be directed to the Library as the sole owner of the catalog/patron data. Additional Services: i) Any services provided due to Library supplied equipment failure, where such equipment was not purchased from Innovative, and over which Innovative has no direct control, shall be billable at Innovative' then current maintenance rates. Cancellation: j)If the Library decides to cancel the Agreement, Innovative Interfaces must be notified in writing at least 90 days prior to the annual renewal date. Termination of Hosted Agreement: k) In the event that this agreement is not renewed, the patron and catalog data can be migrated to a server of the discretion of the Library at the then current Innovative data migration service fees. DENTON PUBLIC LIBRARY INNOVATIVE INTERFACES, INC. By: By: Name: Name: Sarita Sdoeung Exhibit 1 Title: Title: Senior Invoicing Specialist Date: Date: August 1, 2012 Exhibit 2 Innovative Interfaces, Inc. Sarita Sdoeung 5850 Shellmound Way Emeryville, CA 94608 Dear Sarita: Your firm has been selected as a vendor providing annual maintenance and continued vendor support of the Millennium Library System and associated software modules. You have indicated to us that you are the only existing vendor of this/these commodities. Due to statutory requirements, unless you are the single or sole source of this/these commodities we must bid their procurement competitively. Single source, in this case, means that you are the only company that can supply us with this commodity. We are required to confirm this status with you. Please respond as necessary to the following questions and return this sheet to us via U.S. Mail or fax. Call if you have any questions. 1. Are you the sole or single source vendor for the commodities _X_Yes No 2. Is there any other vendor that offers this service? ____Yes X No If you are not the single source vendor of this service please list the other vendors we need to contact for bids: If you answered questions above as a single source vendor please sign below to certify that you are the single source of this material and return to: Elton Brock, Purchasing Agent 901 B Texas Street Denton, Texas 76209 Or Fax to (940) 349-7302 I certify that we are the sole source of the above listed commodity or commodities. Signed: Title: Senior Invoicing Specialist Print Name: Sarita Sdoeung Date: August 1, 2012 Exhibit 2 August 1, 2012 Elton Brock, Purchasing Agent 901 B Texas Street Denton, TX 76209 Fax: 940-349-7302 Please be advised that Innovative Interfaces, Inc. is the sole manufacturer of the MILLENNIUM system in use by Denton Public Library, hosted at InnovativeÔs secure facility. Therefore is the sole source for providing maintenance services for the software of said system. Innovative Interfaces, Inc. warrants that the prices set forth in this quotation do not exceed those charged by Seller to any other customers purchasing maintenance for the same items in like or comparable quantities. Please feel free to contact me if you have any questions. Regards, Sarita Sdoeung Senior Invoicing Specialist ORDINANCE NO. ____________ AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR CONTINUED VENDOR SUPPORT OF THE MILLENNIUM LIBRARY SYSTEM AND ASSOCIATED HARDWARE AND SOFTWARE MODULES AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH TEXAS LOCAL GOVERNMENT CODE 252.022, EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 3224-PURCHASE OF ANNUAL MAINTENANCE FOR MILLENNIUM LIBRARY SYSTEM AND ASSOCIATED MODULES AWARDED TO INNOVATIVE INTERFACES, INC. IN THE AMOUNT OF $83,053). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as ng Agent, are hereby approved: FILE NUMBER VENDOR AMOUNT 3224 Innovative Interfaces, Inc. $83,053 SECTION 2. The City Council hereby finds that this bid, and the award thereof, constitutes a procurement of items that are available from only one source, including, items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids. SECTION 3. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 4. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 3224 to the City Manager of the City of Denton, Texas, or his designee. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _________ day of ____________, 2012. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ______________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 5-ORD-File 3224 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of Annual Maintenance for ITinvolve configuration management software application and Internet hosting services from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4986-Purchase of Annual Maintenance for ITinvolve configuration management software awarded to ITinvolve, Inc. for four (4) one-year terms with a first payment of $32,500 for a total contract award of $130,000.) FILE INFORMATION City of Denton Information Technology operations are subject to complex regulatory framework. Denton Municipal Electric systems must comply with North American Electric Reliability Corporation (NERC) Critical Infrastructure Protection (CIP) requirements. Public Safety systems must comply with Texas Law Enforcement Telecommunications Systems (TLETS) requirements. Utilities Customer Service computer systems must comply with Payment Card Industry Data Security Standards (PCI-DSS) requirements. In addition, external financial auditors place requirements on the JD Edwards financial systems. All of these regulatory instructions require a structured and documented systems change management process. For example, software changes should be applied to a test environment first, to ensure there is no adverse effect on production systems. This testing must be documented and the changes approved by management before applying to production systems. In addition, interrelationships with other systems must be considered along with contingency plans to roll production systems back to a prior state should unforeseen problems arise as a result of changes. These planning efforts must also be documented and approved by management under the regulatory requirements. Finally, a maintenance outage time must be scheduled, and affected end users notified about the changes to be applied and how they will be affected. All of these documents and actions must be recorded and maintained as a record of systems operations and, in some cases, presented to auditors as proof of compliance with regulatory requirements. Currently, maintaining these records is a paper-based and labor intensive process. The ITinvolve configuration management software will provide a centralized repository for change management documents and approvals. This will improve the process and help ensure compliance with regulatory requirements. Agenda Information Sheet September 11, 2012 Page 2 RECOMMENDATION Award to ITinvolve, Inc. for four one-year terms with a first year payment of $32,500 for a total contract award of $130,000. PRINCIPAL PLACE OF BUSINESS ITinvolve, Inc. Houston, TX ESTIMATED SCHEDULE OF PROJECT The time period for this maintenance contract will be August 1, 2012 through August 31, 2016. FISCAL INFORMATION Funding for this item is budgeted in the fiscal year 2013-14 Technology Services operating account 830800.6504. EXHIBITS Contract with Pricing Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 4986 Exhibit 1 ORDINANCE NO. ____________ AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF ANNUAL MAINTENANCE FOR ITINVOLVE CONFIGURATION MANAGEMENT SOFTWARE APPLICATION AND INTERNET HOSTING SERVICES FROM ONLY ONE SOURCE IN ACCORDANCE WITH TEXAS LOCAL GOVERNMENT CODE 252.022, EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4986-PURCHASE OF ANNUAL MAINTENANCE FOR ITINVOLVE CONFIGURATION MANAGEMENT SOFTWARE AWARDED TO ITINVOLVE, INC. FOR FOUR (4) ONE-YEAR TERMS WITH A FIRST PAYMENT OF $32,500 FOR A TOTAL CONTRACT AWARD OF $130,000.) WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as in the office of the Purchasing Agent, are hereby approved: FILE NUMBER VENDOR AMOUNT 4986 ITInvolve, Inc. $130,000 SECTION 2. The City Council hereby finds that this bid, and the award thereof, constitutes a procurement of items that are available from only one source, including, items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids. SECTION 3. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 4. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 4986 to the City Manager of the City of Denton, Texas, or his designee. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _________ day of ____________, 2012. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ______________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 3-ORD-File 4986 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: Utilities Administration UTILITIES ACM: Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, amending the schedule of rates contained in Ordinance No. 2011-158 for electric service; providing for a repealer; providing for a severability clause; and providing for an effective date. (The Public Utilities Board recommends approval 6-0) BACKGROUND The proposed FY 2012-2013 Electric utility budget and CIP were presented and approved by the PUB during May and June, 2012. The Electric rate ordinance was approved by the PUB on July 23, 2012 by a vote of 6-0. The budget, along with a draft rate ordinance, was submitted to the City Council for review on July 27, 2012, and is scheduled for adoption on September 11, 2012. The proposed electric rate ordinance included in this agenda item is designed to recover the cost of service for the Electric utility and provide a positive or break-even net income. SUMMARY The attached Electric Rate Ordinance includes no rate increases. FISCAL SUMMARY The rates and charges included in the Electric rate ordinance provide the revenues necessary to cover the cost of service to customers. The proposed Electric rates have no increased charges and will increase the efficiency of utility collections. RECOMMENDATION Staff recommends approval of the proposed ordinance. EXHIBIT 1. Proposed FY2012-2013 Electric Rate Ordinance AIS September 11, 2012 Page 2 of 2 Respectfully submitted, Phil Williams General Manager Denton Municipal Electric Prepared by: William A. Bunselmeyer Manager, Energy Services & Business Development Denton Municipal Electric EXHIBIT1 ORDINANCE NO. 2012-_______ AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE SCHEDULE OF RATES CONTAINED IN ORDINANCE NO. 2011-158 FOR ELECTRIC SERVICE; PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The Schedule of Rates for electrical services as provided for in Chapter 26 of the City of Denton Code of Ordinances, is amended to read as follows: ELECTRIC RATE SCHEDULES PAGE RES Residential Service 2 RG Residential Renewable Energy Service Rider 4 GSS General Service Small 6 GSM General Service Medium 8 GSL General Service Large 10 TGS General Service Time of Use 12 G2 Local Government Small 15 G1 Local Government 17 WK Weekend Service 19 AF Athletic Field 21 LS Street Lighting 23 LT Traffic Lighting 24 UFL Unmetered School Zone/Crossing Flashers 25 ULT Unmetered Traffic Lighting 26 USC Unmetered Security Camera 27 LO Other Lighting 28 DD Security Lighting 30 DDL Decorative Downtown Lighting 32 DSL Non Standard Street Lighting 33 T1 Temporary Service 35 EGR Economic Growth Rider 37 GRP GreenSense Energy Efficiency Rebate Program 39 ECA Energy Cost Adjustment 40 RCA Renewable Cost Adjustment 42 DGR Distributed Generation From Renewable Sources Rider 44 IWG Independent Wholesale Generator Rider 46 CGR Commercial Renewable Energy Service Rider 49 SFR Special Facilities Rider 51 DFR Dark Fiber Rate 52 1 SCHEDULE RES RESIDENTIAL SERVICE (Effective 10/01/12) APPLICATION Applicable to any Customer for all electric service used for residential purposes in an individual private dwelling or an individually metered apartment, supplied at one point of delivery and measured through one meter. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE WINTER SUMMER Billing months of Billing months of November through April May through October (1) Facility Charge Single-Phase $ 8.25/bill $ 8.25/bill Three-Phase $16.50/bill $16.50/bill plus; (2) Energy Charge per billing period First 600 kWh 5.70¢/kWh Additional kWh 3.79¢/kWh All kWh 5.70¢/kWh plus; (3) Energy Cost Adjustment Charge See Schedule ECA See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: 2 Single-Phase Facility Charge Three-Phase Facility Charge ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block Rate per kWh in rate block TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 3 SCHEDULE RG RESIDENTIAL RENEWABLE ENERGY SERVICE RIDER (Effective 10/01/12) APPLICATION Applicable to any Customer for all electric service used for residential purposes in an individual private dwelling or an individually metered apartment, supplied at one point of delivery and measured through one meter. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. In light of additional costs associated with the Residential Renewable Energy Service Rider and to mitigate potential risk to ratepayers, any participant in the Residential Renewable Energy Service Rider must be, at the time this rider is applied for and continuing while such rider is in effect, a customer in good standing of all Denton Municipal Utilities, including Solid Waste services. Unless legal review procedures have been invoked in good faith regarding the obligation, a customer in good standing for the purpose of this Rate Rider is defined as a customer not owing any unpaid utility or solid waste debt obligation that is over forty-five (45) days past due to the City of Denton, Texas during the previous 12 months. NET MONTHLY RATE WINTER SUMMER Billing Months of Billing Months of November through April May through October (1) Facility Charge $ 8.25/bill $ 8.25/bill Three-Phase $16.50/bill $16.50/bill plus; (2) Energy Charge per billing period First 600 kWh 5.70¢/kWh All Additional kWh 3.79¢/kWh All kWh 5.70¢/kWh plus; (3) Renewable Cost Adjustment Charge See Schedule RCA See Schedule RCA 4 TERM Customers wishing to receive Renewable Energy Service must sign a Residential Renewable Energy Agreement and commit to accept this service for a minimum term of 6 months. At the end of each 6 month period, a customer’s Renewable Energy Service will be extended for another 6 month period unless that customer provides a written request to terminate that service to the City of Denton Customer Service Department 15 days prior to the end of the then-current 6-month participation period. MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Facility Charge Three-Phase Facility Charge ENERGY CHARGE Billing for the energy charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block rate per kWh in rate block TYPE OF SERVICE The City will supply single-phase service (or three phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 5 SCHEDULE GSS GENERAL SERVICE SMALL (Effective 10/01/12) APPLICATION The General Service Small (GSS) rate is applicable to any commercial or industrial customer having a maximum demand of less than 21.0 kW in each of the previous twelve (12) months for all electric service supplied at one point of delivery and measured through one meter. If the demand in any month is equal to or exceeds 21.0 kW, billing will be made under the Rate Schedule GSM and Customer must remain on the GSM rate for a minimum of twelve (12) billing periods. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE (1) Facility Charge Single-Phase $15.80/bill Three-Phase $21.10/bill plus; (2) Energy Charge per billing period First 2,500 kWh 7.02¢/kWh Additional kWh 3.67¢/kWh plus; (3) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Facility Charge Three-Phase Facility Charge 6 ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block Rate per kWh in rate block TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 7 SCHEDULE GSM GENERAL SERVICE MEDIUM (Effective 10/01/12) APPLICATION The General Service Medium (GSM) rate is applicable to any commercial or industrial customer having a maximum demand that meets or exceeds 21.0 kW in any one of the previous twelve (12) months but less than 250 kVA in each of the previous twelve (12) months for all electric service supplied at one point of delivery and measured through one meter. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE (1) Facility Charge Single-Phase $15.80/bill Three-Phase $21.10/bill plus; (2) Demand Charge $4.00/kW (all kW) plus; (3) Energy Charge per billing period First 6,000 kWh 4.43¢/kWh Additional kWh 3.66¢/kWh plus; (4) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) The Facility Charge, plus; 8 (2) The Demand Charge DETERMINATION OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the greater of: (1) the actual monthly kW demand as measured during the fifteen (15) minute period of maximum use each month; or (2) seventy percent (70%) of the maximum monthly actual demand for any month during the previous billing months of May through October in the twelve (12) months ending with the current month. ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block Rate per kWh in rate block PRIMARY SERVICE DISCOUNT Customers who receive service at secondary voltage (GM1) shall receive no Energy Charge discount. Customers utilizing City owned and operated facilities and transformation equipment and who are metered at primary voltage (GM2) shall receive an Energy Charge discount of 0.1¢/kWh. Customers who own, operate, and maintain all facilities necessary to receive three-phase primary voltage service and all transformation facilities required for conversion to utilization voltage (GM3) shall receive an Energy Charge discount of 0.3¢/kWh. The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage. TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 9 SCHEDULE GSL GENERAL SERVICE LARGE (Effective 10/01/12) APPLICATION The General Service Large (GSL) Rate is applicable to any commercial or industrial customer having a minimum actual demand of 250 kVA for all electric service supplied at one point of delivery and measured through one meter. Customers other than commercial and industrial may be allowed service under this rate, subject to the minimum billing provision. Customers who elect to discontinue service under this rate are ineligible for service under this rate for twelve months. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE (1) Facility Charge $65.55/bill plus; (2) Demand Charge $9.33/kVA (Minimum of 250 kVA billed) plus; (3) Energy Charge per billing period First 200,000 kWh 2.14¢/kWh Additional kWh 1.21¢/kWh plus; (4) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) The Facility Charge, plus; (2) The Demand Charge 10 DETERMINATION OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the greater of: (1) the actual monthly kVA demand as measured during the fifteen (15) minute period of maximum use each month; or (2) 250 kVA; or (3) seventy percent (70%) of the maximum monthly kVA actual demand for any month during the previous billing months of May through October in the twelve (12) month period ending with the current month. ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block Rate per kWh in rate block PRIMARY SERVICE DISCOUNT Customers who receive service at secondary voltage (GL1) shall receive no Energy Charge discount. Customers utilizing City owned and operated facilities and transformation equipment and who are metered at primary voltage (GL2) shall receive an Energy Charge discount of 0.1¢/kWh. Customers who own, operate, and maintain all facilities necessary to receive three-phase primary voltage service and all transformation facilities required for conversion to utilization voltage (GL3) shall receive an Energy Charge discount of 0.3¢/kWh. The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage. TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 11 SCHEDULE TGS GENERAL SERVICE TIME OF USE (Effective 10/01/12) APPLICATION Applicable to any customer having a minimum demand of 250 kVA for all electric service supplied at one point of delivery and measured through one meter, with the City providing all facilities necessary to receive primary voltage service. Customers electing this rate must remain on this rate for a minimum of twelve (12) continuous billing months. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. In light of additional costs associated with the General Service Time of Use rate and to mitigate potential risk to ratepayers, any participant in the General Service Time of Use rate must be, at the time this rate is applied for and continuing while such rate is in effect, a customer in good standing of all Denton Municipal Utilities, including Solid Waste services. Unless legal review procedures have been invoked in good faith regarding the obligation, a customer in good standing for the purpose of this Rate Rider is defined as a customer not owing any unpaid utility or solid waste debt obligation that is over forty-five (45) days past due to the City of Denton, Texas during the previous 12 months. NET MONTHLY RATE (1) Facility Charge $76.45/bill plus; (2) On-Peak Demand Charge $11.87/kVA plus; (3) Off-Peak Demand Charge $2.34/kVA plus; (4) Energy Charge per billing period 0.71¢/kWh plus; (5) Energy Cost Adjustment Charge See Schedule ECA 12 MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1)The Facility Charge, plus; (2)The Off-Peak Demand Charge, plus; (3)The On-Peak Demand Charge DEFINITION OF ON-PEAK HOURS The City's on-peak hours, for the purpose of this rate schedule, are designated as being from 2:00 P.M. to 7:00 P.M. each Monday through Friday, for the months of June through September excluding Independence Day and Labor Day. The City's on-peak hours may be changed from time to time. DEFINITION OF OFF-PEAK HOURS The City's system (off-peak) hours, for the purpose of this rate schedule, shall be all hours not designated as on-peak hours. DETERMINATION OF ON-PEAK DEMAND The demand used in calculating the On-Peak Demand Charge for the billing period shall be the greater of: (1) the kVA actual demand supplied during the fifteen (15) minute period of maximum use each month during on-peak hours as recorded by the City's demand meter, or (2) one hundred percent (100%) of the actual maximum on-peak demand similarly determined during the billing months of June through September in the twelve (12) months immediately preceding the current month. The On Peak Demand Charge will be applied to each billing period. DETERMINATION OF OFF-PEAK DEMAND The demand used in calculating the Off-Peak Demand Charge for the billing period shall be the 13 actual kVA demand supplied during the fifteen (15) minute period of maximum use during off-peak hours each month as recorded by the City's demand meter. The Off-Peak Demand Charge will be applied to each billing period. DETERMINATION OF DEMAND BILLING FOR CUSTOMERS WITH NO PEAK DEMAND HISTORY DURING OFF-PEAK MONTHS If the Customer is new or does not have a history of on-peak use for June through September, and elects to accept service on the TGS rate, the Customer's billed demand shall be the off-peak demand billed at the GSL demand rate. The off-peak demand will be billed every month at the GSL rate until the customer establishes a separate on-peak and off-peak demand during an on-peak month. At this time, both on-peak and off-peak demand will then begin billing at the TGS rate. PRIMARY SERVICE DISCOUNT Customers who receive service at secondary voltage (TG1) shall receive no Energy Charge discount. Customers utilizing City owned and operated facilities and transformation equipment and who are metered at primary voltage (TG2) shall receive an Energy Charge discount of 0.1¢/kWh. Customers who own, operate and maintain all facilities necessary to receive three-phase primary voltage service and all transformation facilities required for conversion to utilization voltage (TG3) shall receive an Energy Charge discount of 0.3¢/kWh. The City shall own, operate and maintain all metering facilities, either at primary or secondary voltage. ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh kWh Rate TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 14 SCHEDULE G2 LOCAL GOVERNMENT SERVICE SMALL (Effective 10/01/12) APPLICATION Applicable to any local City, County or School District having a maximum demand of less than 21.0 kW in each of the previous twelve (12) months for all electric service supplied at one point of delivery and measured through one meter. If the demand in any month equals or exceeds 21.0 kW, billing will be made under the Rate Schedule G1 and Customer must remain on the G1 rate for a minimum of twelve (12) billing periods. This rate is not applicable to resale service in any event, or to temporary, standby or supplementary service. NET MONTHLY RATE (1) Facility Charge Single-Phase $15.80/bill Three-Phase $21.10/bill plus; (2) Energy Charge 6.45¢/kWh plus; (3) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) Facility Charge, ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh kWh Rate 15 TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 16 SCHEDULE G1 LOCAL GOVERNMENT SERVICE (Effective 10/01/12) APPLICATION The Local Government Service (G1) rate is applicable to any local City, County, or School District having a maximum demand that equals or exceeds 21.0 kW in any one of the previous twelve (12) months but less than 250 kVA in each of the previous twelve (12) months for all electric service supplied at one point of delivery and measured through one meter. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service. NET MONTHLY RATE (1) Facility Charge Single-Phase $15.80/bill Three-Phase $21.10/bill plus; (2) Demand Charge $6.81/kW plus; (3) Energy Charge 3.15¢/kWh plus; (4) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: (1) Facility Charge, plus; (2) Demand Charge 17 DETERMINATION OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the greater of: (1) The actual kW demand supplied during the fifteen (15) minute period of maximum use during the current month as determined by City's demand meter; or (2) not less than 50% of the highest monthly actual demand determined during the billing months of May through October in the twelve (12) months immediately preceding the current month. ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh kWh Rate TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 18 SCHEDULE WK WEEKEND SERVICE (Effective 10/01/12) APPLICATION Applicable to any commercial and industrial user whose maximum demand load occurs during the period from Thursday at 12 midnight through Sunday at 12 midnight and does not experience a demand load during the period from Sunday 12 midnight through Thursday 12 midnight that exceeds 80% of the maximum demand load. Customers who violate the 80% requirement more than four (4) times during the month, or more than twice on the same day of the week, during the months of June through September, are ineligible for service under this rate for twelve (12) months. This rate is not applicable to resale service in any event, or to temporary, standby or supplementary service except in conjunction with applicable rider. NET MONTHLY RATE (1) Facility Charge Single-Phase $20.86/bill Three-Phase $26.08/bill plus; (2) Demand Charge $6.72/kW (First 20 kW not billed) plus; (3) Energy Charge per billing period First 2,500 kWh 7.02¢/kWh Next 3,500 kWh 3.67¢/kWh Additional kWh 2.70¢/kWh plus; (4) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING (1) Facility Charge plus; (2) Demand Charge 19 DETERMINATION OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the greater of: (1) the actual kW demand supplied during the fifteen (15) minute period of maximum use during the current billing period as determined by the City's demand meter less 20 kW; or (2) zero (0). ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block Rate per kWh in rate block TYPE OF SERVICE The City will supply single-phase service (or three-phase service if available at the point of delivery) at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 20 SCHEDULE AF ATHLETIC FIELD (Effective 10/01/12) APPLICATION Applicable to all electric service metered at one point for use to light specified areas for athletic events. This rate is not applicable to resale service in any event, or to temporary, standby, or supplementary service except in conjunction with applicable rider. NET MONTHLY RATE (1) Facility Charge Single-Phase $21.07/bill Three-Phase $31.60/bill plus; (2) Energy Charge per billing period Billing months of June through September: Peak (2:00 PM to 7:00 PM) 7.96¢/kWh Off Peak (All Other Hours) 3.98¢/kWh Billing months of October through May: All hours 3.98¢/kWh plus; (3) Demand Charge Billing months of June through September: Peak (2:00 PM - 7:00 PM) $4.94/kW Off Peak (All Other Hours) $1.17/kW Billing months of October through May: All hours $1.17/kW 21 plus: (4) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Facility Charge Three-Phase Facility Charge DETERMINATION OF DEMAND The demand used in calculating the Demand Charge for the billing period shall be the actual kW demand supplied during the fifteen (15) minute period of maximum use during the current billing period as determined by the City's demand meter. ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh in rate block Rate per kWh in rate block TYPE OF SERVICE The City will supply single-phase or three-phase service at sixty (60) cycles and at any standard voltages available from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 22 SCHEDULE LS STREET LIGHTING (Effective 10/01/12) APPLICATION Applicable to all street lighting owned and maintained by the City of Denton. NET MONTHLY RATE (1) Facility Charge Rate Luminaire Type Facility Charge LSA 100 W Sodium Vapor $5.15/bill LSB 250 W Sodium Vapor $7.30/bill LSC 400 W Sodium Vapor $9.19/bill plus; (2) Energy Cost Adjustment Charge (Current ECA per Schedule ECA) (Bulb Wattage Factor where the following Bulb Wattage Factors apply); Rate Luminaire Type Bulb Wattage Factor LSA 100 W Sodium Vapor 48 kWh LSB 250 W Sodium Vapor 105 kWh LSC 400 W Sodium Vapor 159 kWh TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120, 240, or 480 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the customer, subject to the Special Facilities Rider, may be required where service of the type desired by the customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 23 SCHEDULE LT TRAFFIC LIGHTING (Effective 10/01/12) APPLICATION Applicable to State and Local Government agencies that operate and maintain their own traffic signals. NET MONTHLY RATE (1) Energy Charge per billing period 5.62¢/kWh plus; (2) Energy Cost Adjustment Charge See Schedule ECA ENERGY CHARGE Billing for the energy charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh kWh Rate TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 24 SCHEDULE UFL UNMETERED SCHOOL ZONE/CROSSING FLASHERS (Effective 10/01/12) APPLICATION Applicable to Local Government agencies that operate and maintain their own unmetered school zone/crossing flashers. NET ANNUAL RATE (1) Energy Charge per billing period 5.62¢/kWh plus; (2) Energy Cost Adjustment Charge See Schedule ECA ENERGY CHARGE Billing for the energy charge shall be based on historical recorded annual kWh consumption. The total billed usage divided by number of school zone/crossing flashers will determine the average kWh usage. This average consumption will be billed for each school zone/crossing flasher once every twelve (12) months at the end of the fiscal year. Any accounts that are added during the year will be billed on prorated consumption. Energy Charge = kWh kWh Rate Annual Usage = 48 kWh per account TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 25 SCHEDULE ULT UNMETERED TRAFFIC LIGHTING (Effective 10/01/12) APPLICATION Applicable to Local Government agencies that operate and maintain their own unmetered traffic signals. NET ANNUAL RATE (1) Energy Charge per billing period 5.62¢/kWh plus; (2) Energy Cost Adjustment Charge See Schedule ECA ENERGY CHARGE Billing for the energy charge shall be based on historical recorded annual kWh consumption. The total billed usage divided by number of lighted intersections will determine the average kWh usage. This average consumption will be billed for each lighted intersection once every twelve (12) months at the end of the fiscal year. Any accounts that are added during the year will be billed on prorated consumption. Energy Charge = kWh kWh Rate Annual Usage = 904 kWh per account TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 26 SCHEDULE USC UNMETERED SECURITY CAMERA (Effective 10/01/12) APPLICATION Applicable to Local Government agencies that operate and maintain their own unmetered security cameras. NET ANNUAL RATE (1) Facility Charge $15.80 plus; (2) Energy Charge 5.62¢/kWh plus; (4) Energy Cost Adjustment Charge See Schedule ECA ENERGY CHARGE Billing for the energy charge shall be based on technical information of installed equipment. This calculated consumption will be billed for each camera once every twelve (12) months at the end of the fiscal year. Any accounts that are added during the year will be billed on prorated consumption. Energy Charge = annual kWh per camera kWh Rate Annual Usage = 300 kWh per camera per account TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 27 SCHEDULE LO OTHER LIGHTING (Effective 10/01/12) APPLICATION Applicable to Texas Department of Transportation unmetered and metered safety lighting systems and continuous lighting systems as those terms are defined in Texas Administrative Code, Title 43, Part 1, Chapter 25, Subchapter A, Rule §25.11. DEFINITION The following definitions apply to this Schedule LO: Hours of Operation Per Billing Period = 333 hours Bulb Wattage is the rated wattage of the luminaire bulb NET MONTHLY RATE LOA (Unmetered Lighting) (1) Energy Charge per billing period 5.62¢/kWh plus; (2) Energy Cost Adjustment Charge (Current ECA per Schedule ECA) x (Bulb Wattage/1000) x (Hours of Operation Per Billing Period) ENERGY CHARGE LOA (Unmetered Lighting) Billing for the Energy Charge shall be based on estimated kWh consumption during the billing period. Energy Charge = (kWh Rate x Bulb Wattage/1000) x (Hours of Operation Per Billing Period) NET MONTHLY RATE LOB (Metered Lighting) (1) Energy Charge per billing period 5.62¢/kWh plus; (2) Energy Cost Adjustment Charge See Schedule ECA 28 ENERGY CHARGE LOB (Metered Lighting) Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh x kWh Rate TYPE OF SERVICE The City will supply single-phase, sixty (60) cycle service at 120 or 240 volts from the City's distribution system through one standard transformation. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 29 SCHEDULE DD SECURITY LIGHTING (Effective 10/01/12) APPLICATION Applicable to any customer within the area served by the City's electric distribution system for outdoor area lighting when such lighting facilities are operated as an extension of the City's distribution system. NET MONTHLY RATE (1) Facility Charge Rate Luminaire Type Facility Charge DSA 100 W Sodium Vapor $ 8.14/bill DSB 250 W Sodium Vapor $10.76/bill DSC 400 W Sodium Vapor $12.97/bill DHA 250 W Metal Halide $12.65/bill DHB 400 W Metal Halide $15.07/bill plus; (2) Energy Cost Adjustment Charge (Current ECA per Schedule ECA) (Monthly Bulb Wattage Factor where the following Bulb Wattage Factors apply); Rate Luminaire Type Bulb Wattage Factor DSA 100 W Sodium Vapor 48 kWh DSB 250 W Sodium Vapor 105 kWh DSC 400 W Sodium Vapor 159 kWh DHA 250 W Metal Halide 105 kWh DHB 400 W Metal Halide 159 kWh TYPE OF SERVICE The City shall furnish, install, maintain and deliver electric service to automatically controlled, metal halide or sodium vapor lighting fixtures conforming to the City's standards and subject to its published rules and regulations. 30 Where necessary for proper illumination or where existing poles are inadequate, the City will install or cause to be installed, one (1) wood pole with the necessary lighting hardware and overhead conductor for each installed light, at a distance not to exceed eighty (80') feet from existing lines, at no charge to the Customer. Additional contractual arrangements between the City and the customer, subject to the Special Facilities Rider, may be required where the eighty (80’) feet distance limit is exceeded or service of the type desired by the Customer is otherwise not available at the point of service. TERM OF CONTRACT A two (2) year contract shall be agreed to and signed by each Customer desiring Security Lighting Service authorizing fixed monthly charges, which may be reviewed annually, and to be applied to the Customer’s monthly municipal utilities bill. In the event that a Customer requests the removal of the unit or discontinuance of the service prior to completion of two (2) years, the remainder of the contract period shall become due and payable. After the end of the initial two (2) year contract, service shall continue on a month-to-month basis and may be canceled by either party upon thirty (30) days notice. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 31 SCHEDULE DDL DOWNTOWN DECORATIVE LIGHTING (Effective 10/01/12) APPLICATION Applicable to any Customer requesting service on the perimeter of the historic County Courthouse Square located in downtown Denton and served by the City’s existing electric distribution system for outdoor area lighting at said location. NET MONTHLY RATE (1) Facility Charge $4.04/bill plus; (2) Energy Cost Adjustment (Current ECA per Schedule ECA) (350 kWh per Customer) TYPE OF SERVICE The City shall furnish, install, maintain and deliver electric service to automatically controlled lighting fixtures conforming to the City’s standards and subject to its published rules and regulations. The service is provided between dusk and midnight. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. FACILITY CHARGE The Facility Charge shall be assessed on each bill rendered. 32 SCHEDULE DSL NON-STANDARD STREET LIGHTING (Effective 10/01/12) APPLICATION Applicable to street lighting owned and maintained by the Customer. Availability of this service is contingent on the existence of an executed Special Facilities Rider between the legally responsible party and the City under which the legally responsible party accepts all responsibilities, both legal and financial, related to operation and maintenance of the subject lights, including but not limited to payment of all applicable energy charges. NET MONTHLY RATE (1) Facility Charge $8.14/bill plus; (2) Energy Charge 5.62¢/kWh Energy Charge = (kWh Rate) x (Bulb Wattage Factor) plus; (3) Energy Cost Adjustment Charge (Current ECA per Schedule ECA) (Monthly Bulb Wattage Factor where the following Bulb Wattage Factors apply); Rate Luminaire Type Bulb Wattage Factor DLSA 100 W Sodium Vapor 48 kWh DLSB 250 W Sodium Vapor 105 kWh DLSC 400 W Sodium Vapor 159 kWh DLHA 250 W Metal Halide 105 kWh DLHB 400 W Metal Halide 159 kWh Other – For any lamp types installed by owner that are not included in the list above, a Bulb Wattage Factor will be determined for each unique type. TYPE OF SERVICE The City shall deliver single-phase, sixty (60) cycle service at 120 or 240 volts to the site for non- standard streetlight fixtures supplied by the customer, and installed by the City in accordance with 33 Municipal Code requirements. Additional contractual arrangements between the City and the customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. ADDITIONAL SERVICE CHARGES If the City is required to maintain the privately owned lights to ensure public safety, the owner of the lights may be subject to additional service charges. The additional service charges shall be the actual cost of performing any work required to perform the necessary maintenance including but not limited to: Labor Regular time or overtime labor hourly rates in effect at the time the work is performed for all personnel performing the work. Labor charges shall be based on a one (1) hour minimum with all additional time above the minimum to be measured to the nearest one-quarter hour. Transportation To be billed by hours or miles, as applicable, according to the estimated cost of operating the required equipment. Material Any material needed to repair and/or maintain facilities will be billed at City of Denton Warehouse cost plus 25%. Administrative Fee 10% of the total labor, transportation, and material costs. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 34 SCHEDULE T1 TEMPORARY SERVICE (Effective 10/01/12) APPLICATION Applicable when a Customer requests electric service on a short term or temporary basis where a customer has received a permit from the City Building Inspections Department. This rate is not applicable after the certificate of occupancy or building final inspection has been issued. NET MONTHLY RATE (1) Facility Charge Single-Phase $15.80/bill Three-Phase $21.10/bill plus; (2) Energy Charge per billing period 7.11¢/kWh plus; (3) Energy Cost Adjustment Charge See Schedule ECA MINIMUM BILLING For each billing period, the Customer shall be obligated to pay the following charges as a minimum, whether or not any energy was actually used: Single-Phase Facility Charge Three-Phase Facility Charge ENERGY CHARGE Billing for the Energy Charge shall be based on actual kWh consumption during the billing period. Energy Charge = kWh kWh Rate TYPE OF SERVICE The City will supply single-phase service at sixty (60) cycles at a standard secondary voltage 35 available at the site. Additional contractual arrangements between the City and the Customer, subject to the Special Facilities Rider, may be required where service of the type desired by the Customer is not available at the point of service. ADDITIONAL TEMPORARY SERVICE CHARGES Labor Regular time or overtime labor hourly rates in effect at the time the work is performed for all personnel performing the work. Labor charges shall be based on a one (1) hour minimum with all additional time above the minimum to be measured to the nearest one-quarter hour. Transportation To be billed by hours or miles, as applicable, according to the estimated cost of operating the required equipment. Material Material that cannot be salvaged shall be billed at City of Denton Warehouse cost plus 25%, plus applicable sales tax. At the time a temporary service is removed or converted, any loss of the installed material due to negligence or willful action by the Customer will be billed separately to the Customer at replacement cost plus 25%, plus applicable sales tax. Administrative Fee 10% of the total labor, transportation, and material costs. PAYMENT The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. 36 SCHEDULE EGR ECONOMIC GROWTH RIDER (Effective 10/01/12) PURPOSE The purpose of this rider is to facilitate local economic growth and expand the ad valorem tax base of the City of Denton. AVAILABILITY This rider is available to the Customers who: (1)Receive service from Rate Schedules GSL or TGS; and (2)Pay City of Denton ad valorem tax; and (3)Receive no electric service discounts other than those specifically defined in the GSL or TGS rate schedules. APPLICATION This rider is available to electric service supplied at any one location. It is for firm electric service applicable to new and existing Customers as described below, over a five (5) year period. This rider is available to the following classes of Customers: (1) New customers whose electric service represents demand not previously served by the City at any location in the City's service area in the last twelve (12) months, where such metered demand will be in excess of 1,000 kVA, as estimated and mutually agreed upon by the DME General Manager and the customer. (2) Existing customers served under Rate Schedules GSL or TGS who increase their prior existing metered demand by 1,000 kVA. This increase shall be verified by sub-metering (at the Customers expense) the additional load. If sub-metering is not possible, at the discretion of the General Manager, the increase may be verified by comparing a three-month rolling average of the new level of demand to the prior demand averaged for corresponding months. During periods in which this verification method cannot be applied, the General Manager and the Customer may develop a mutually agreed-upon formula to estimate the base and additional demand levels. In light of additional costs associated with the Economic Growth Rider and to mitigate potential risk to ratepayers, any participant in the Economic Growth Rider must be, at the time this rider is 37 applied for and continuing while such rider is in effect, a customer in good standing of all Denton Municipal Utilities, including Solid Waste services. Unless legal review procedures have been invoked in good faith regarding the obligation, a customer in good standing for the purpose of this Rate Rider is defined as a customer not owing any unpaid utility or solid waste debt obligation that is over forty-five (45) days past due to the City of Denton, Texas during the previous 12 months. NET MONTHLY RATE The Customer shall be charged under the appropriate applicable rate schedules with the exception that the monthly billing demand (for GSL) or system demand and on-peak demand (for TGS) will be adjusted in accordance with the following table: Time Period Reduction to Billing Demand First Year 50% Second Year 40% Third Year 30% Fourth Year 20% Fifth Year 10% CONTRACT PERIOD The term of the contract will be for five (5) years. 38 SCHEDULE GRP GREENSENSE ENERGY EFFICIENCY REBATE PROGRAM (Effective 10/01/12) PROGRAM SUMMARY The objective of the GreenSense Energy Efficiency Rebate Program (“Program”) is to reduce energy demand and consumption by promoting energy conservation, thereby reducing the utility bills of Denton Municipal Electric (DME) customers, reducing the peak load of the DME’s electric system, reducing emissions in the state, and promoting energy conservation. The Program offers incentives, in the form of rebates on the electric service bills of DME retail customers and cash incentives to builders. Cash incentives may be paid to residential retail customers for the installation of photovoltaic applications. In light of additional costs associated with the GreenSense Energy Efficiency Rebate Program and to mitigate potential risk to ratepayers, any participant in the GreenSense Energy Efficiency Rebate Program must be, at the time this program is applied for and continuing while such program is in effect, a customer in good standing of all Denton Municipal Utilities, including Solid Waste services. Unless legal review procedures have been invoked in good faith regarding the obligation, a customer in good standing for the purpose of this Rate Rider is defined as a customer not owing any unpaid utility or solid waste debt obligation that is over forty-five (45) days past due to the City of Denton, Texas during the previous 12 months. Program applicants will be able to qualify for multiple incentives simultaneously. A separate application may be necessary for each incentive. The Program will be in effect each fiscal year beginning on October 1, until the allotted funding is depleted or until cancellation of the program by DME. At the time the funds are depleted, no additional applications for participation will be accepted until the next fiscal year. Qualifying applicants must receive electric service from DME. The Program guidelines and payments are subject to change by DME without prior notice. DME may, at any time, discontinue the Program without prior notice. The current program guidelines may be found in the GreenSense Energy Efficiency Rebate Program Manual located at www.dmepower.com. 39 SCHEDULE ECA ENERGY COST ADJUSTMENT (Effective 10/01/12) The Energy Cost Adjustment (ECA) rate shall be set by the Public Utilities Board (PUB). The ECA rate shall be reviewed on a monthly basis and adjusted as defined below to recover the variable cost of energy delivered to customers. Variable energy cost includes the variable cost of Texas Municipal Power Agency (TMPA) energy (excluding the portion of TMPA’s energy charge associated with fixed costs), the variable cost of purchased energy (excluding demand payments or fees for services), and fuel costs. ENERGY COST ADJUSTMENT BALANCING ACCOUNT CALCULATION The ECA Balancing Account shall be calculated using the following formula: ECA Balancing Account = (Actual plus Projected ECA revenue) – (Projected Energy Cost) Where: Projected Energy Cost = (Actual plus Projected cumulative cost of fuel) + (Actual plus Projected cumulative variable cost of TMPA energy) + (Actual plus Projected cumulative variable purchased energy cost). The General Manager, Denton Municipal Electric (DME) or his/her designee shall calculate the ECA Balancing Account balance monthly. In the event that the ECA Balancing Account balance calculated during the last month of each fiscal quarter (December, March, June, and September) is greater than or less than zero dollars ($0) by $5,000,000 or more during the next quarter, the General Manager, DME or his/her designee shall recommend to the PUB an ECA rate adjustment sufficient to recover/return any under/over collection, and maintain DME in a financially sound position. The PUB shall consider that recommendation and may adjust the ECA rate for the quarter immediately following as necessary to maintain DME in a financially sound position. ENERGY COST ADJUSTMENT CALCULATION ECA = [(Projected Energy Cost) + (ECA Balancing Account)] / (Projected kWh sales) ENERGY COST ADJUSTMENT CHARGE The Energy Cost Adjustment Charge shall be based on actual kWh consumption during the billing period. Energy Cost Adjustment Charge = kWh ECA rate 40 EXTRAORDINARY CIRCUMSTANCE ECA RATE ADJUSTMENT In the event that the ECA Balancing Account balance calculated for any month is greater than or less than zero dollars ($0) by $10,000,000 or more during the next month, the General Manager, DME or his/her designee shall recommend to the PUB an ECA rate adjustment sufficient to recover/return any under/over collection, and maintain DME in a financially sound position. The PUB shall consider that recommendation and may adjust the ECA rate for the month immediately following as necessary to maintain DME in a financially sound position. 41 SCHEDULE RCA RENEWABLE COST ADJUSTMENT (Effective 10/01/12) The Renewable Cost Adjustment (RCA) rate shall be set by the Public Utilities Board. The RCA rate shall be reviewed on a quarterly basis and adjusted as defined below to recover the cost of renewable energy delivered to customers. Renewable energy cost includes the Energy Cost Adjustment Charge (see Schedule ECA) plus the cost of Renewable Energy Credits (REC) purchased. RENEWABLE COST ADJUSTMENT BALANCING ACCOUNT CALCULATION The RCA Balancing Account shall be calculated using the following formula: RCA Balancing Account = (Actual plus Projected RCA revenue) – (Projected Renewable Energy Cost) Where: Projected Renewable Energy Cost = (Actual plus Projected cumulative ECA cost) + (Actual plus Projected REC cost) During the last month of each fiscal year quarter (December, March, June, and September), the DME General Manager or his/her designee shall calculate the RCA Balancing Account balance. In the event that the RCA Balancing Account balance calculated during the last month of each fiscal quarter is greater than zero dollars ($0) by $100,000 or more during the next quarter, the General Manager or his/her designee shall recommend to the Public Utilities Board an RCA rate adjustment sufficient to recover/return any under/over collection, and maintain DME in a financially sound position. The Public Utilities Board shall consider that recommendation and may adjust the RCA rate for the quarter immediately following. RENEWABLE COST ADJUSTMENT CALCULATION RCA = ECA + [(Projected Renewable Energy Cost) / (Projected kWh sales)] Where: Projected Renewable Energy Cost = Actual + Projected REC cost 42 RENEWABLE COST ADJUSTMENT CHARGE The Renewable Cost Adjustment Charge shall be based on actual kWh consumption during the billing period. Renewable Cost Adjustment Charge = kWh RCA rate EXTRAORDINARY CIRCUMSTANCE RCA RATE ADJUSTMENT In the event that an Extraordinary Circumstance ECA Rate Adjustment is made (see Schedule ECA) the RCA shall be adjusted concurrently with the Extraordinary Circumstance ECA Rate Adjustment by substituting the new ECA rate in the Renewable Cost Adjustment Calculation formula above. 43 SCHEDULE DGR DISTRIBUTED GENERATION FROM RENEWABLE SOURCES RIDER (Effective 10/01/12) APPLICATION This Rider is available to any retail customer receiving electric service under a DME electric rate schedule who owns and operates an on-site generating system powered by a renewable resource capable of producing power, and who interconnects with the DME electric system. Renewable energy technology is any technology that exclusively relies on an energy source that is naturally regenerated over a short time and derived directly or indirectly from the sun or wind. A renewable energy technology does not rely on energy resources derived from fossil fuels, waste products from fossil fuels, or waste products from inorganic sources. This Rider applies to a Customer-owned generating system that primarily offsets part or all of the Customer’s electric service provided by DME. If the Customer-owned generating system larger than 50kW or if the system’s primary purpose is to sell energy to the grid and not offset the Customer’s consumption, special arrangements and contract may be necessary. In light of additional costs associated with the Distributed Generation From Renewable Sources Rider and to mitigate potential risk to ratepayers, any participant in the Distributed Generation From Renewable Sources Rider must be, at the time this rider is applied for and continuing while such rider is in effect, a customer in good standing of all Denton Municipal Utilities, including Solid Waste services. Unless legal review procedures have been invoked in good faith regarding the obligation, a customer in good standing for the purpose of this Rate Rider is defined as a customer not owing any unpaid utility or solid waste debt obligation that is over forty-five (45) days past due to the City of Denton, Texas during the previous 12 months. CONDITIONS OF SERVICE All charges, character of service, and terms and conditions of the electric rate schedule under which the Customer receives service shall apply except as expressly altered by this Rider. The Customer shall comply with the current DME technical requirements for distributed generation interconnection. The Customer shall obtain approval from DME before the Customer energizes the customer’s on-site generating system or interconnects it with the DME electric system. The Customer shall submit to DME a completed interconnection application form and signed Standard Agreement for Interconnection and Parallel Operation of Distributed Generation Agreement. The minimum term of an Agreement under this Rider is one year, extended automatically unless terminated by either party with sixty days advance written notice The Customer is responsible for the costs of interconnecting with the DME electric system, including transformers, service lines, or other equipment determined necessary by DME for safe installation and operation of the Customer’s equipment with the City’s system. The Customer is responsible for any costs associated with required inspections and permits. 44 METERING Metering under this Rider shall be performed by a single meter capable of registering the flow of electricity in two directions (delivered and received) to determine the Customer’s net energy flow. RATE Beginning in a billing period after a Customer receives approval to interconnect the Customer’s on-site generating system from the City of Denton, all energy generated by the Customer’s system and delivered to the DME electric system will be considered renewable energy. The Customer shall be billed for all energy delivered by DME to the Customer under the approved residential rates. For any generation delivered by the Customer’s system to the DME system up to the amount of energy delivered by DME to the Customer, the City shall credit the Customer’s account for the energy generated as follows: Generation Credit = [(kWh delivered from the Customer’s approved system) x (Customer’s base electric service rate)] + [(kWh delivered from the Customer’s approved system) x (RCA rate)] For all energy delivered by the Customer’s system to the DME system that exceeds the amount of energy delivered by DME to the Customer, the City shall credit the Customer’s account for the energy generated as follows: Excess Generation Credit = (kWh delivered from the Customer’s system) x RCA rate (see Schedule RCA). Any Billing Period Credit shall be applied to the utility charges due from the Customer to the City of Denton for the billing period. INDEMNIFICATION The Customer operating the renewable distributed generation system indemnifies DME and holds DME harmless for all damages and injuries to DME, the Customer, or others arising out of Customer’s use, ownership or operation of Customer’s distributed generation facilities in parallel with DME’s system. Customer is solely responsible for providing adequate protection for operating in parallel with DME’s system in such a manner that faults or other disturbances on the DME system do not cause damage to the Customer’s distributed generation equipment. 45 SCHEDULE IWG INDEPENDENT WHOLESALE GENERATOR (Effective 10/01/12) APPLICATION The Independent Wholesale Generator (IWG) rate is applicable to non-renewable generating installations of ten (10) MW or less interconnected to and operating in parallel with DME’s distribution system, for the sole purpose of delivering the net output (gross output minus auxiliary load and step up transformer loses) of said generating installation to the Electric Reliability Council of Texas (ERCOT) transmission grid for sale in the ERCOT wholesale power market. DME will interconnect the IWG pursuant to the terms of the DME standard Agreement for Interconnection and Parallel Operation of Independent Wholesale Generation. Other services or special requirements for interconnection of a specific generating facility not included in the DME standard Agreement for Interconnection and Parallel Operation of Independent Wholesale Generation, requested by the IWG Customer, or required by DME may be provided pursuant to negotiation and agreement by both the IWG Customer and DME. The provision of said additional services or requirements shall be recorded in the form of an addendum to the DME standard Agreement for Interconnection and Parallel Operation of Independent Wholesale Generation. TERMS AND CONDITIONS OF SERVICE At a minimum, the IWG Customer shall comply with the current DME technical requirements for independent wholesale generation interconnection specified in the DME standard Agreement for Interconnection and Parallel Operation of Distributed Generation. The IWG Customer may not begin construction of its facilities until an Agreement for Interconnection and Parallel Operation of Distributed Generation has been signed by both the IWG Customer and the City of Denton. The IWG Customer shall obtain approval from DME before the IWG Customer begins operation of its generating system or interconnects it with the DME electric system. The IWG Customer is responsible for any costs associated with required City of Denton and/or DME inspections and permits. PRE-INTERCONNECTION STUDIES DME may, at its sole discretion perform pre-interconnection studies DME or the City of Denton deems appropriate, which may include, but are not restricted to, a service study, coordination study, emissions impact study, and utility system impact study. In instances where such studies are deemed necessary, the scope of such studies shall be based on the characteristics of the particular IWG generation system to be interconnected, DME’s distribution system at the specified proposed location(s), and environmental characteristics of the Denton County area. Such studies will also determine whether the electric interconnection can be made consistent with safe and reliable operation of DME’s distribution system. The cost of such analysis will be the responsibility of the IWG Customer. A cost estimate will be provided and agreed to by the IWG Customer prior to DME or the City performing the studies. 46 SYSTEM MODIFICATIONS The IWG Customer will be required to install, operate, and maintain in good order and repair, and without cost to DME, all facilities required by DME for the safe operation of the IWG system in parallel with DME’s electric system. The IWG Customer’s IWG system shall be installed, operated, and maintained by the IWG Customer at all times in conformity with good electrical practice and shall comply with the National Electric Code, the National Electric Safety Code, any applicable local codes and any applicable DME service standards included in the DME Agreement for Interconnection and Parallel Operation of Independent Wholesale Generation Any modifications or additions to DME’s electrical system caused by the addition of the Customer’s IWG system will be solely at the IWG Customer’s expense. However, the IWG Customer will not acquire any ownership in these facilities. The modifications and additions may include, but are not restricted to, the upgrading of transformer insulation levels and lightening arrester ratings, the replacement of circuit breakers due to increased fault current levels, additional protective relaying and any additional metering. Further, DME may require that a communications channel(s) be installed at the IWG Customer’s expense as part of the relay protection, remote control, remote metering, SCADA telemetry, and/or direct voice contact between DME and the IWG Customer. RATE The IWG Customer shall be subject to special contract arrangements and the rates charges to the Customer may consist of a minimum monthly Facility Charge plus a monthly distribution charge plus a monthly distribution line loss charge. These charges shall be calculated as follows: Monthly Facility Charge: The IWG Customer shall pay DME a monthly facility charge sufficient to compensate DME for its investment in special facilities dedicated exclusively to providing the IWG Customer service and/or that are necessary to ensure that the quality of service provided to other customers is not adversely affected pursuant to the requirements of the SYSTEM MODIFICATION provisions set forth above. The minimum monthly facility charge shall be $65.55. Distribution Delivery Charge: The IWG Customer shall pay DME a monthly distribution delivery charge equal to $2.06 times the IWG Customer’s delivery demand. The IWG Customer’s delivery demand shall be the greatest of the IWG Customer’s maximum 15 minute net capacity output as measured at the IWG Customer’s IWG site, the minimum billing kW shall be as established in the DME Agreement for Interconnection and Parallel Operation of Independent Wholesale Generation, or 1,500 kW. 47 Distribution Line Loss Charge: The IWG Customer shall pay DME a monthly distribution line loss charge equal to the applicable monthly Energy Cost Adjustment (ECA) charge (see schedule ECA) times monthly energy losses. Monthly energy losses shall be calculated as the metered monthly kilowatt-hour output of the IWG Customer’s IWG generating unit(s) as measured at the IWG Customer’s IWG site times five (5.0) percent. Generator Auxiliary Load Standby Charge: The IWG Customer shall pay the DME General Service Large rate for any electric service used by the IWG Customer to serve generator auxiliary load as a result of demand and energy requirements placed upon DME resulting from planned or forced outage of the IWG Customer’s IWG generation unit(s). Electric Service to Structures and Other Facilities Other than Generator Auxiliary Load: All charges, character of service, and terms and conditions of the applicable City of Denton electric rate schedule(s) under which the IWG Customer receives DME electric service for structures or other facilities not specifically supplying auxiliary service directly to its generating unit(s) shall apply except as expressly altered by this Rider. 48 SCHEDULE CGR COMMERCIAL RENEWABLE ENERGY SERVICE RIDER (Effective 10/01/12) This Rider defines the manner by which commercial customers may purchase predetermined 1000 kWh blocks of energy or 100% of actual energy consumption from renewable resources by substituting the Renewable Cost Adjustment Charge (see Schedule RCA) in lieu of the Energy Cost Adjustment (see Schedule ECA) specified in their applicable rate Schedule. APPLICATION This Rider is applicable to any non-residential Customer receiving service under rate schedules GSS, GSM, GSL, G1, TGS, or WK at one point of delivery and measured through one meter. This Rider is not applicable to resale service in any event, or to temporary, standby, or supplementary service. In light of additional costs associated with the Commercial Renewable Energy Service Rider and to mitigate potential risk to ratepayers, any participant in the Distributed Commercial Renewable Energy Service Rider must be, at the time this rider is applied for and continuing while such rider is in effect, a customer in good standing of all Denton Municipal Utilities, including Solid Waste services. Unless legal review procedures have been invoked in good faith regarding the obligation, a customer in good standing for the purpose of this Rate Rider is defined as a customer not owing any unpaid utility or solid waste debt obligation that is over forty-five (45) days past due to the City of Denton, Texas during the previous 12 months. NET MONTHLY RATE A customer eligible for service under this Rider may elect to purchase renewable energy at the Renewable Cost Adjustment Charge, determined in accordance with Schedule RCA. Said customer may elect to purchase 1000 kWh blocks of energy at the RCA rate, with the remainder of the customer’s energy use charged at the ECA rate or to purchase all energy used at the RCA rate. All other charges contained in the customer’s applicable rate Schedule shall continue to apply, as specified in said Schedule. Said customer’s energy charge shall be calculated as follows. Either: Total Energy Charge = [(Y x 1000 kWh) x RCA] + {[(Total Energy Used) - (Y x 1000 kWh)] x ECA} Where: Customer has elected to purchase a portion of its energy consumption at the RCA and: Y= Number of 1000 kWh RCA blocks elected by said customer 49 Or: Total Energy Charge = Total Energy Used x RCA Where: Customer has elected to purchase its entire energy consumption at the RCA TERMS OF SERVICE To exercise the energy supply choice made available by this Rider, an eligible customer must enter into a separate written agreement with Denton Municipal Electric that specifies either a specific number of 1000 kWh energy blocks to be purchased at the Renewable Cost Adjustment Charge or specifies that 100% of said customer’s monthly energy consumption is to be purchased at the Renewable Cost Adjustment Charge. The minimum term for a Schedule CGR agreement shall be 12 months. This Rider replaces the Energy Cost Adjustment Charge for participating customers. 50 SCHEDULE SFR SPECIAL FACILITIES RIDER (Effective 10/01/12) (1) All service shall be offered from available facilities. If a customer service characteristic requires facilities and devices not normally and readily available at the location which the customer requests service, the total cost incurred by DME for all facilities installed, buried, relocated and/or removed shall be the responsibility of the Customer and subject to a special contract entered into between DME and the Customer. This contract shall be signed by both parties prior to the DME providing service to the Customer. (2) Billing for services beyond the delivery of electricity, utilized by the Customer, may be subject to a special contract entered into between DME and the Customer. This contract shall be signed by both parties prior to DME providing service to Customer. 51 SCHEDULE DFR DARK FIBER (Effective 10/01/12) APPLICATION Service is available to any customer to the extent there is any excess capacity respecting Denton Municipal Electric’s fiber optic cable facilities, within the area served by Denton Municipal Electric’s (“DME”) distribution system, for the purpose of point-to-point dark fiber optic cable connectivity intended for the transport of high-speed data. MONTHLY RATE (1) Fiber Mileage Charge $400 per fiber pair/mile, per month; and (2) Building Presence Charge $180 per location, per month Total Fiber Rate $580 per fiber pair/mile, per month, per location RATE GUIDELINES (1)The minimum quantity of fiber to be leased shall be one (1) fiber pair. All fiber pairs furnished to the customer shall consist of two (2) fibers. (2)The minimum Fiber Mileage Charge is for one (1) fiber pair/mile. (3)After the first mile, Fiber Mileage Charge will be charged in increments of the nearest one-tenth (0.1) mile. (4)All costs associated with ingress to a customer’s location from the DME right-of-way shall be billed directly to the customer, and are not included in the Fiber Mileage Charge and the Building Presence Charge and shall be paid to Denton Municipal Electric within fifteen (15) calendar days from the date of issuance of the bill. (5)The Fiber Mileage Charge calculation is based upon the actual fiber pair distance along the DME distribution system rights-of-way. The Fiber Mileage Charge is not based upon any other method of calculation. The Fiber Mileage Charge is not based upon any distance determination, such as the distance the crow flies, or from point-to- point. (6)The Fiber Mileage Charge distance shall be capped at two (2) times the direct point-to- point distance. DISCOUNTS Special discounts will be applied for fiber pairs to the same location, and for fiber pairs for long- term contracts in the amounts as shown in the table below. The discount applicable to a customer shall not be a cumulative total of all the discounts offered. The discount any customer is entitled to shall be the largest single discount applicable to that customer’s service. 52 Discount Type Discount Discount Type Discount Term of Lease% Number of Fibers% 5-7 Years 30% 1-2 Fibers /Mileage Charge 0% 8-10 Years 45% 3-6 Fibers/ Mileage 9.7% Charge 7-12 Fibers/Mileage Charge 19% 12 or more Fibers/Mileage 28.7% Charge TYPE OF SERVICE The City shall furnish, install, maintain, and deliver only point-to-point dark fiber connectivity for the purpose of transporting high-speed data with a maximum loss of no more than 9.0 dB. PAYMENT Bills are due when rendered and become past due if not paid within fifteen (15) calendar days from date of issuance. TERM OF LEASE CONTRACT All dark fiber lease contracts shall be for a minimum term of five (5) years. 53 SECTION 2. The Assistant City Manager for Utilities is hereby authorized to expend funds to issue rebates to electric utility customers in the form and type set forth in Schedule GRP, as the installation of energy efficient upgrades is in the best interest of the City of Denton, Texas, as such will reduce energy demand and consumption, reduce the peak load of the DME’s electric system, reduce emissions in the state, and promote energy conservation, which are public purposes of the City. SECTION 3. All ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 4. 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 5. This ordinance and the rates herein adopted shall become effective, charged, and applied to all electric services rendered by Denton Municipal Electric, and all energy usage by customers of Denton Municipal Electric effective with the first billing issued on and after October 1, 2012; and a copy of said rates shall be maintained on file in the Office of the City Secretary of the City of Denton, Texas. PASSED AND APPROVED this the _______ day of ______________________, 2012. _______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: _________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: __________________________________ 54 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: UtilitiesAdministration ACM: Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance amending the schedule of engineering fees contained in Ordinance No. 2011-159; providing an amendment to the public works overtime inspection fee; providing for a repealer; providing for a severability clause; and providing for an effective date. (The Public Utilities Board recommends approval 6-0.) BACKGROUND Proposed FY 2012-2013 Utilities budgets and CIP’s were presented to and approved by the Public Utilities Board (“PUB”) during May and June, 2012. The Engineering Fees rate ordinance was recommended for approval by the PUB on July 23, 2012 by a vote of 6-0. The budgets, including draft rate ordinances, were presented to the City Council for review on July 27, 2012. The Engineering Fees rate ordinance is scheduled for adoption on September 11, 2012. The proposed engineering fees rate ordinance is designed to recover the cost of service for the services rendered and to provide a positive or break-even net income. The proposed schedule of Engineering Fees includes an increase to the public works overtime inspection fee (Overtime Fee) from $105 per hour to $135 per hour for FY 2012-2013. FISCAL SUMMARY The rates and charges included in the Engineering Fees rate ordinance provide the revenues necessary to cover the cost of service to customers. RECOMMENDATION Staff recommends approval of the proposed Engineering Fees rate ordinance and recommends that the City Council adopt this ordinance effective October 1, 2012. EXHIBIT 1.FY 2012-2013 Engineering Fee rate ordinance Respectfully submitted: Jim Coulter, Director Water Wastewater Utilities EXHIBIT1 ORDINANCE NO. 2012 - ________ AN ORDINANCE AMENDING THE SCHEDULE OF ENGINEERING FEES CONTAINED IN ORDINANCE NO. 2011-159; PROVIDING AN AMENDMENT TO THE PUBLIC WORKS OVERTIME INSPECTION FEE; PROVIDING A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas incurs administrative expenses in providing inspection services for public improvements which are constructed by developers, and should be properly borne as fees by developers; and WHEREAS, when contractors or utilities perform work within City of Denton right-of- way, the City incurs right-of-way inspection and administrative expenses, which should be properly borne as fees by the contractor or utility requesting services; and WHEREAS, when commercial establishments require loading zones, or parking lots, or commercial establishments file variances or appeals to the Traffic Safety Commission regarding the proper traffic flow and safety, the City of Denton thereby incurs inspection and administrative expenses, which should be borne as fees to the commercial establishment seeking the City action; and WHEREAS, the City Council finds that such fees as are recited herein bear a reasonable relationship to the actual administrative costs and expenses incurred by the City of Denton to conduct such inspections, and that the following ordinance should be enacted; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. That a public works inspection fee is hereby established in an amount equal to 3.5% of the cost to construct public improvements by developers. This inspection fee must be paid to the City by the developer of such development prior to the City’s authorization to proceed with construction of the public improvements. The cost to construct the public improvements is the cost set forth in the public improvements agreement by and between the City and the developer. The inspection fee covers inspection services by the City for weekdays, Monday through Friday from 8:00 a.m. to 5:00 p.m. Should the developer request inspection during any other time period including weekends, an additional overtime fee (the “Overtime Fee”) shall be paid to the city based upon the following hourly rate: $135.00 per hour as of and after the effective date of this ordinance. A minimum Overtime Fee shall be deposited with the City based upon four hours, at least 24 hours before the overtime inspection is scheduled to start; except that the weekend overtime deposit may be received on or before 12:00 p.m. of the Friday immediately preceding the weekend overtime period. If there are more than four overtime inspection hours, developer will be billed for such additional hours, which shall be paid no later than fifteen (15) days after the 1 date of the billing, and prior to incurring additional overtime inspections. Authorization to proceed with construction of the public improvements will be withheld until all outstanding inspection fees owing the City are paid in full. SECTION 3. A right-of-way inspection fee is hereby established in an amount equal to $100.00 per hour, with a minimum of one hour for each inspection conducted. The inspection fee covers inspection services by the City for weekdays, Monday through Friday from 8:00 a.m. to 5:00 p.m. Should the developer request inspection during any other time period including weekends, an overtime fee (the “Overtime Fee”) shall be paid to the city at a rate of $135.00 per hour. The right-of-way inspection fee will be invoiced monthly and must be paid to the City by the contractor or utility undertaking construction or repairs with the City right-of-way no later than fifteen (15) days after the date of the invoice. Authorization to proceed with construction of the public improvements will be withheld until all outstanding inspection fees owing the City are paid in full. Failure to pay the fee in full may result in the City terminating the contractor’s or utility’s right to work within the City right-of-way. SECTION 4. A parking lot permit inspection fee is to be paid to the City of Denton, and is hereby established in an amount equal the following: Parking lot permit fees 1 – 50 spaces $540.00 51 – 100 spaces $720.00 101 – 250 spaces $900.00 251 – 500 spaces $1,080.00 This parking lot permit inspection fee must be paid to the City by the developer or contractor of such facility prior to the City’s authorization to proceed with construction of the parking lot facilities. SECTION 5. A fee for appeals or for variances to the City of Denton Traffic Safety Commission is to be paid by the Applicant to the City of Denton, and is as follows: Fees for appeals or variances to Traffic Safety Commission Fee per appeal or variance $300.00 SECTION 6: A loading zone permit fee is to be paid by the Applicant to the City of Denton and is hereby established in the following amounts: 1. A single loading zone shall be a fee of $175.00 per year 2. A double loading zone shall be a fee of $350.00 per year 2 That any renewal of a loading zone permit shall require the payment by the Applicant to the City of Denton and is hereby established in the following amounts: 1. A single loading zone shall be a fee of $175.00 per year 2. A double loading zone shall be a fee of $350.00 per year SECTION 7: All ordinances or parts of ordinances in force when the provisions of this ordinance becomes effective which are inconsistent or in conflict with the terms or provisions contained in the amended schedule of rates hereby enacted by this ordinance, are hereby repealed to the extent of any such conflict. SECTION 8: 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 9: The Schedule of Rates herein adopted shall be effective, charged, and applied to all engineering services occurring on and after October 1, 2012; and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary of Denton, Texas. PASSED AND APPROVED this the _______ day of _________________, 2012. ________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: _________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: _________________________________ 3 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: UtilitiesAdministration ACM: Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas providing for the confirmation of the schedule of miscellaneous fees, deposits, billings and procedures for administrative services to city utilities customers contained in Ordinance No. 2011-160; providing for a repealer; providing for a severability clause; and providing for an effective date. (The Public Utilities Board recommends approval 6-0.) BACKGROUND The Miscellaneous Fees, Deposits, Billings and Procedures for Administrative Services has no changes. The proposed miscellaneous rate ordinance is designed to recover the cost of service and provide a positive or break-even net income. PRIOR ACTION/REVIEW Proposed FY 2012-2013 Utilities budgets and CIP’s were presented to and approved by the Public Utilities Board (“PUB”) during May and June, 2012. The miscellaneous rate ordinance was approved by the PUB on July 23, 2012 by a vote of 6-0. The budget, along with the draft miscellaneous rate ordinance, was submitted to the City Council for review on July 27, 2012. It is scheduled for adoption by the Council on September 11, 2012. FISCAL SUMMARY The rates and charges included in the miscellaneous rate ordinance provide the revenue necessary to recover the cost of service to customers. RECOMMENDATION Staff recommends approval of the proposed miscellaneous rates ordinance, and requests that the ordinance become effective October 1, 2012. EXHIBITS 1.Proposed FY 2012-13 Miscellaneous Fees, Charges, and Deposits Ordinance Respectfully submitted: Howard Martin Assistant City Manager/Utilities EXHIBIT1 ORDINANCE NO. 2012-________ AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR THE CONFIRMATION OF THE SCHEDULE OF MISCELLANEOUS FEES, DEPOSITS, BILLINGS AND PROCEDURES FOR ADMINISTRATIVE SERVICES TO CITY UTILITIES CUSTOMERS CONTAINED IN ORDINANCE NO. 2011-160; PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the schedule of charges for general utility services as generally provided for in Chapter 26 of the Code of Ordinances; and for services to other City of Denton customers and taxpayers, are hereby established as follows: SERVICE CHARGES AND PROCEDURES SCHEDULES A. ACCOUNT CONNECTION AND RECONNECTION CHARGES PAGE Meter Connection Charge 3 Meter Reconnection Process Charge 3 Unauthorized Usage Penalty 4 New Customer Application Charge 4 B. METER CHARGES Meter Reading 5 Meter Testing 5 Meter Tampering and/or Damage Charge 5 Meter Inaccessibility Charge 6 C. MISCELLANEOUS FEES, CHARGES AND DEPOSITS Returned Payment Charge 7 Service Deposits 7 Waiver of Service Deposits 8 1 Late Payment Charge Due on Delinquent Balances 8 Interest Charge on Past Due Account Balance 9 Interest Earned on Contract Retainage 9 2 ACCOUNT CONNECTION AND RECONNECTION PROCESS CHARGES (Effective 10/01/12) For the purposes of this rate schedule, business hours shall be defined as Monday through Friday, 8:00 AM to 5:00 PM. METER CONNECTION CHARGE APPLICATION Applicable when a customer requests service on a first time basis where no permanent service previously existed and where a new account number is established or, when a customer requests service at an address which has existing or previous service, with an existing account number and history, and the electric and/or water meter must be installed or activated for readiness. CHARGE First Service Requested $23.00 First Service Requested, guaranteed $61.00 same day service First Service Requested, after $61.00 business hours METER RECONNECTION PROCESS CHARGE APPLICATION Applicable when a customer’s account is processed for disconnection due to nonpayment. CHARGE Delinquent Service Fee $46.00 (When service is disconnected at the electric meter socket or the water meter) Delinquent Service Fee $168.00 (When service is disconnected at the electric transformer or the water meter has been removed) Reconnect Charge, guaranteed same day service (In addition to delinquent service fees) $61.00 3 Reconnect Charge, guaranteed same day service (When service is disconnected at the transformer or the water meter has been removed) $231.00 When more than one trip, within twenty-four (24) hours, is required to restore a customer’s service, a Return Trip Charge, in addition to the Reconnection Charge, shall be applied for each additional trip. Return Trip Charge during business hours $23.00 Return Trip Charge after business hours $61.00 UNAUTHORIZED USAGE PENALTY APPLICATION Applicable to any customer that fails to request connection of services within 24 hours of occupancy in a new service location. CHARGE Unauthorized Usage Penalty $30.00 NEW CUSTOMER APPLICATION FEE APPLICATION Applicable when a customer requests new service or is added to an existing account and provides Social Security or Tax ID information to verify identity and credit history. CHARGE New ResidentialCustomer Application Charge - per person $3.00 New Commercial Customer Application Charge $16.00 4 METER CHARGES (Effective 10/01/12) METER READING APPLICATION Applicable to any electric or water utility customer who requests a reading of a city meter due to a contested billing more than twice in the previous twelve (12) months, and no error is found. CHARGE Per Additional Reading $46.00 METER TESTING APPLICATION Applicable to any customer who requests the testing of a city meter previously tested within the past four (4) years and the meter is found to be within accuracy standards. CHARGE Per Test $62.00/KWH Electric Meter $93.00/KW/KWH Electric Meter $93.00 Water Meter ACCURACY STANDARDS A meter is defined as within accuracy standards when found to be plus or minus two percent (2%) or less. METER TAMPERING AND/OR DAMAGE CHARGE APPLICATION Applicable to any person that tampers with, damages, or illegally connects to a city electric, water, or wastewater utility system. CHARGE Per Event $310.00 minimum per electric connection per system Per Event $200.00 minimum per water connection per system 5 METER INACCESSIBILITY CHARGE APPLICATION Applicable to any customer who prevents the regular and routine reading, maintenance, repair or removal of any city meter due to inaccessibility of the meter. CHARGE Per event $46.00 6 MISCELLANEOUS FEES, CHARGES, AND DEPOSITS (Effective 10/01/12) RETURNED PAYMENT CHARGE APPLICATION Applicable when a customer’s or taxpayer’s check, or money order, or bank draft for payment of fees, fines, court costs, taxes, utilities, or other charges has been dishonored by the maker’s bank and returned to the City of Denton unpaid. CHARGE Per Check $27.00 SERVICE DEPOSITS APPLICATION Applicable when a residential customer requests utility service in the City of Denton service area and does not have twelve (12) months of good credit standing with the City of Denton or demonstrates a passing credit rating through an external credit reporting agency. Applicable when a commercial customer does not have twenty-four (24) months of good credit standing with the City of Denton or demonstrates a passing credit rating through an external credit reporting agency. Not applicable when a commercial customer provides an irrevocable letter of credit to the City of Denton as security for payment. CHARGE Residential Customer An amount up to 1/6 of the last 12 months of billing at the service location. If utility service is disconnected for non-payment or the account is consistently past due, then the customer will be required to pay a deposit sum up to 1/6 of the last 12 months of billing at the service location. Commercial Customer An amount up to 1/6 of the last 12 months of billing at the service location. If utility service is disconnected for non-payment or the account is consistently past due, then the customer will be required to pay a deposit sum up to 1/6 of the last 12 months of billing at the service location. Deposits will earn interest for the customer. The applicable rate of interest will be adjusted semi-annually to equal the rate of a one-year United States Treasury Note on October 1 and 7 April 1 of each year. If refund of deposit is made within thirty (30) days of receipt of deposit, no interest payment will be made. If the City retains the deposit more than thirty (30) days, payment of interest, at the current rate, shall be made retroactive to the date the deposit was paid, A. Payment of the interest to the customer shall be made at the time the deposit is returned or credited to the customer’s account. B. The deposit shall cease to earn interest on the date it is returned or credited to the customer’s account. WAIVER OF SERVICE DEPOSITS APPLICATION Applicable when an Applicant is a citizen of the City of Denton, Texas and who also is a “victim of family violence,” applies for utility service in the City of Denton, Texas. To be a qualified as a “victim of family violence” an Applicant must secure and provide a certification letter, provided by one of the certifying entities to the Utilities Customer Service Department. If a proper, dated and completed certification letter is presented by or on behalf of the Applicant to the Utilities Customer Service Department, and its issuance is verified by the Utilities Customer Service Department, then the requirement of a utility deposit shall be waived for that Applicant. This provision is applicable solely to “victims of family violence” as defined by Texas Family Code, §71.004, as amended. No other relief from the City’s utility rates, or deposits, or charges, or fees is hereby provided to “victims of family violence.” LATE PAYMENT CHARGE DUE ON DELINQUENT BALANCES APPLICATION To cover a portion of the administrative costs of collecting past due balances, a late payment charge shall be assessed on the fifth business day following the due date. CHARGE $20.00 late payment charge 8 INTEREST CHARGE ON PAST DUE ACCOUNT BALANCE APPLICATION Interest shall be assessed on any past due account balance (excluding late payment charges) that remains unpaid at the time of the current month’s billing calculation. The interest provided for and assessed herein shall be due and payable on the due date of the current month’s billing statement. CHARGE 1% / month on all past due charges and account balances unpaid at the time of the current month’s billing calculation.** **Under no circumstances shall the interest charge provided for herein exceed the legal rate of interest. To the extent that it does so, the charge is inadvertent, and the City intends only to assess, charge and collect such interest rate that does not exceed the highest lawful rate. INTEREST EARNED ON CONTRACT RETAINAGE Contract retainage will earn interest for the contractor as provided by TEX. REV. CIV. STAT. ANN. Article 6252, Sec.5b (Vernon Supp. 1992). The rate of interest will be adjusted semi- annually to equal the interest rate of a one year United States Treasury Note on October 1 and April 1 of each year. Payment of the interest shall be made at the time the retainage is paid to the contractor. 9 SECTION 2. All ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 3. 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 4. This ordinance shall become effective, charged, and applied to all services occurring on and after October 1, 2012; and a copy of said fees and charges shall be maintained on file in the Office of the City Secretary of Denton, Texas. PASSED AND APPROVED this the _______ day of _______________________, 2012. _________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: __________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: ___________________________________ 10 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: UtilitiesAdministration ACM: Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas amending the schedule of rates for solid waste service contained in Ordinance No. 2011-161 as authorized by Chapter 24 of the Code of Ordinances of the City of Denton, Texas; providing that the provisions of Sections 26- 3, 26-4, 26-5, 26-7, 26-8(a), and 26-9 of the Code of Ordinances of the City of Denton, Texas shall expressly apply to City of Denton solid waste service; providing for the amendment to the residential refuse and recycling collection services rates (Schedule SWR); amending the multi- family household item collection services rate (Schedule SWMFS); amendment to the commercial solid waste refuse collection services and dumpster rates (Schedule SWC); amendment to the commercial recycling services rate (Schedule SWCR); amendment to the sanitary landfill services rates regarding wholesale municipal solid waste per ton (Schedule SWL); providing for a repealer; providing for a severability clause; and providing for an effective date. (The Public Utilities Board recommends approval 6-0.) BACKGROUND Solid Waste staff developed and presented to the Public Utilities Board at their meetings of May 21, 2012, June 11, 2012, and June 25, 2012 the fiscal year 2013 solid waste operating budget and fiscal year 2013-2017 capital improvement program (CIP). The proposed fiscal year 2013 rate changes were included in the FY 2013 budget documentation and presentation materials recommended by the Public Utilities Board to the City Council. They included residential refuse and recycling rate increases and commercial dumpster refuse rate increases. The rate increases support the service levels provided for the residential service customers, the commercial refuse customers, and the landfill customers for FY 2013. Proposed Customer Rates: FY 2012 FY 2013 Residential Refuse: Standard Cart $19.25 $20.10 Small Cart $17.10 $19.10 Large Cart $21.95 $24.20 Commercial dumpster refuse rates are proposed to increase approximately (5.06% avg.) AIS September 11, 2012 Page 2 of 2 PRIOR ACTION/REVIEW Proposed FY 2012-2013 Utilities budgets and CIP’s were presented to and approved by the Public Utilities Board (“PUB”) during May and June, 2012. This rate ordinance was approved by the PUB on July 23, 2012 by a vote of 6-0. The budget, along with a draft rate ordinance, was submitted to the City Council for review on July 27, 2012. The Solid Waste rate ordinance is scheduled for adoption on September 11, 2012. FISCAL SUMMARY The proposed rate increase will provide the revenues necessary to cover the cost of service to customers. RECOMMENDATION Staff recommends approval of the proposed ordinance, with an effective date of October 1, 2012. EXHIBITS 1.Proposed FY 2012-2013 Solid Waste Rate Ordinance Respectfully submitted: Howard Martin Assistant City Manager/Utilities EXHIBIT1 ORDINANCE NO. 2012- _______ AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE SCHEDULE OF RATES FOR SOLID WASTE SERVICE CONTAINED IN ORDINANCE NO. 2011-161 AS AUTHORIZED BY CHAPTER 24 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS; PROVIDING THAT THE PROVISIONS OF SECTIONS 26-3, 26-4, 26-5, 26-7, 26-8(a), AND 26-9 OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS SHALL EXPRESSLY APPLY TO CITY OF DENTON SOLID WASTE SERVICE; PROVIDING FOR THE AMENDMENT TO THE RESIDENTIAL REFUSE AND RECYCLING COLLECTION SERVICES RATES (SCHEDULE SWR); AMENDING THE MULTI-FAMILY HOUSEHOLD ITEM COLLECTION SERVICES RATE (SCHEDULE SWMFS); AMENDMENT TO THE COMMERCIAL SOLID WASTE REFUSE COLLECTION SERVICES AND DUMPSTER RATES (SCHEDULE SWC); AMENDMENT TO THE COMMERCIAL RECYCLING SERVICES RATE (SCHEDULE SWCR); AMENDMENT TO THE SANITARY LANDFILL SERVICES RATES REGARDING WHOLESALE MUNICIPAL SOLID WAST RATE PER TON (SCHEDULE SWL); PROVIDING FOR A REPEALER; PROVIDING SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. SECTION 1. The charges for Solid Waste collection services as authorized by Section 24- 42(b) of Article II, Section 24-66 of Article III and Section 24-4 of Article I of Chapter 24; and by Section 32-90 of Article IV of Chapter 32 of the Code of Ordinances of the City of Denton, Texas, are hereby established as follows: SOLID WASTE RATE SCHEDULES PAGE RESIDENTIAL REFUSE & RECYCLING COLLECTION SERVICES ............................. 3 Rates and Fees .............................................................. 3 Services ......................................................................... 4 Miscellaneous ............................................................... 5 MULTI-FAMILY REFUSE AND RECYCLING SERVICES ................................................. 6 Rates and Fees .............................................................. 6 Services ......................................................................... 7 Miscellaneous ............................................................... 7 COMMERCIAL REFUSE & RECYCLING COLLECTION SERVICES ............................ 8 Rates and Fees Î Commercial Refuse ............................. Rates and Fees Î Commercial Recycling .......................... Commercial Service Fees ........................................... 11 Shared Container Fees Î Square District ........................ Miscellaneous ............................................................. 14 1 CONSTRUCTION, DECONSTRUCTION, AND DEMOLITION MATERIALS SERVICES................................................................................................................................... 16 Rates and Fees ............................................................ 16 Miscellaneous ............................................................. 16 LANDFILL SERVICES ............................................................................................................. 17 Rates and Fees ............................................................ 17 Services ....................................................................... 18 Miscellaneous ............................................................. 19 2 SCHEDULE SWR AND SWRR RESIDENTIAL REFUSE & RECYCLING COLLECTION SERVICES (Effective 10/01/12) Residential accounts are defined as: Each living unit of a residential lot, each unit of a duplex or triplex, and any single unit or living space in which a person or single family resides. All refuse or recycling must be placed within a bag and within the appropriate cart with the lid fully closed, and placed at the curb by 7:00 a.m. on the scheduled collection day. Carts are only collected one time per week. Residential accounts will be bille Rates and Fees: Residential Rates and Fees Monthly Service Rates 1 Cart2 Cart3 Cart (SWR) Refuse - Standard Cart$20.10N/AN/A Refuse - Small Cart$19.10N/AN/A Refuse - Large Cart$24.20$40.00$60.00 (SWRR) Recycling $5.15$5.15$8.15 Minimum Monthly Billing Rate$17.85 Excess Refuse per cart reload and empty$6.00 Yard Waste (per Cubic Yard, in excess of 6 cubic yards)$7.00 Large Household Item (per item, in excess of 4 items per year)$5 Appliance with PCB's or refrigerants (per item)$50.00 Electronics (per item)$20.00 Residential C&D (mobilization)$70.00 Residential C&D (per cubic yard)$10.00 Cart Redelivery Fee$25.00 3 Services Residents shall contact Customer Service a minimum of one day prior to their scheduled collection day to request that Solid Waste collection personnel perform any services other than the scheduled weekly collection of the refuse and recycling. Minimum Billing/Base Rate Service A minimum monthly billing rate is applicable for an unoccupied residential unit and shall only be effective after written application is made by the ratepayer with the Customer Service Department, and such minimum billing rate shall be limited to a maximum period of six months per calendar year. Excess Refuse Solid Waste collection personnel will reload the refuse cart with additional bagged refuse materials adjacent to the refuse cart. Yard Waste There is no additional charge for the collection of up to 6 cubic yards (CYÓs) of yard waste per week (i.e. bagged grass clippings, bagged leaves, brush, and tree limbs which are cut in less than 4Ó lengths and stacked). If the volume of yard waste exceeds 6 CYÓs but does not exceed CYÓs, the total volume will be collected, and a fee per CY will be charged for each CY in excess of 6 CYÓs. If the total volume exceeds 11 CYÓs the resident shall contact Customer Service to request collection. Large Household Items Solid Waste collection personnel will collect up to four large household items per year, for no additional charge. Large household items are residential household type items that are consistent with household use, such as furniture and selected appliances. Appliances Appliances manufactured to contain PCBÓs or refrigerants will be charged for the collection and disposal of each appliance and/or the associated materials. Electronics Televisions, monitors, video displays, electronic devices and certain appliances containing cathode ray tubes, LED, LCD, or plasma displays will be charged for the collection, processing, recycling and disposal of these devices. Residential C&D Residential C&D waste includes but is not limited to lumber, brick, fencing, and drywall, not exceeding 8Ó in length. If the customer has over (8) cubic yards of C&D waste for collection at 4 any one pick-up, the customer is required to have a City refuse container of adequate size to contain the waste, and maintain a collection service frequency of at least once per month. Household Hazardous Waste Residential household hazardous wastes are unwanted chemicals that should not be placed in your refuse cart (pesticides, herbicides, cleaning chemicals, paints, oils, etc.). These wastes should be kept in their original container and set on the curb, approximately four feet from the refuse and recycling cart. Redelivery Fee Residential customers will be charged a re-delivery fee to reset each cart pulled for nonpayment. Miscellaneous When initiating new service, a deposit may be charged. Residential customers may be provided commercial containers and service at the published commercial rates. Temporary containers may be placed on residential property for up to thirty (30) days, with no more than three 30-day periods per year. Should any other fees and/or charges be established by any other authorized governmental entity, those fees and/or charges will be added to the monthly rate stated hereinabove in order that the City shall recover those additional costs from the customer. Other residential services may be provided at fees established by the department, and approved by the General Manager. The fees established will recoup the cost of service including the special and administrative services provided. 5 SCHEDULE MFR AND SCHEDULE SWMFS MULTI-FAMILY REFUSE AND RECYCLING SERVICES (Effective 10/01/12) A multi-family unit includes each separate living unit of a four-plex, apartment, condominium, or other multi-family living facility with four or more residenc Multi-family facilities are provided refuse collection services, and recycling collection services if requested. In addition to those services, multi-family residents receive Household Chemical Collections and Recycling Services and have the option to subscribe to either of the two Large Household Item Collection services offered. Rates and Fees: Multi-Family Rates and Fees Household Chemical Collections and Recycling Services (MFR) $2.30 Multi-Family Household Chemical and Recycling (per living unit per month) Large Household Item Collections (SWMFS) Annual Container Service (per living unit per month)$2.60 On-Demand Container Service Monthly RentalCollection Fee 4 CY Side Load Furniture Container$26.00$54.00 8 CY Front Load Furniture Container$40.00$73.00 Electronics (per item)$20.00 Appliances with or without PCB's or refrigerantsNot Collected Household Chemical Collections Multi-family household chemicals are unwanted chemicals that should not be placed in your refuse container (pesticides, cleaning chemicals, paints, oils, etc.). Residents shall contact Customer Service for their collection, and the materials should be placed at an agreed upon location. Annual Container Service A furniture container will be placed at a designated location and serviced weekly on the regular collection day. This requires a twelve (12) month service subscription. 6 On-Demand Container Service A furniture container will be placed at a designated location and Customer Service must be notified one day in advance for the container to be serviced. If the furniture container is contaminated with refuse, construction materials, or contains other non-furniture materials, the standard refuse service fees will apply. Services Residents shall contact Customer Service a minimum of one day prior to their scheduled collection day to request that Solid Waste collection personnel perform any services other than the scheduled weekly collection of the refuse and recycling. Electronics Televisions, monitors, video displays, electronic devices and certain appliances containing cathode ray tubes, LED, LCD or plasma displays will be charged for the collection, processing, recycling, and disposal of these devices. Appliances Appliances for multi-family residents are not collected through an appliance collection route, and may only be placed in the facility dumpster if they were not manufactured to contain PCBÓs or refrigerants. If they were manufactured to contain PCBÓs or refrigerants they should be transported by the resident to the landfill. Special Collection Special collection services may be provided to multi-family facilities upon request. Miscellaneous Should any other fees and/or charges be established by any other authorized governmental entity, those fees and/or charges will be added to the monthly rate stated hereinabove in order that the City shall recover those additional costs from the customer. 7 SCHEDULE SWC AND SCHEDULE SWCR COMMERCIAL REFUSE & RECYCLING COLLECTION SERVICES (Effective 10/01/12) Every owner, occupant, tenant, or lessee of any business, commercial, or institutional property not entitled to receive residential refuse collection service shall be required to have commercial solid waste collection service provided by the City of Denton. Only materials mutually agreed upon by the commercial recycling customer and the City are acceptable in the provided recycling container. The owner/manager of the commercial entity is the party responsible for notifying his/her personnel of proper recycling procedures. New commercial business development and redevelopment will be provided solid waste commercial refuse and recycling services, as outlined in the Denton Development Code and Site Plan Criteria Manual. Refuse and recyclables will be collected in city provided or city approved containers only. All businesses utilizing non-city owned containers shall comply with the requirements of the Collection and Transportation Rate Schedule (SWP) and shall be permitted per the requirements of the schedule. Should any other fees or charges be established by any other authorized government entity, those fees will be added to the monthly rates stated within this ordinance in order that the City may fully recover the additional governmental fees. Commercial accounts will be billed monthly or semimonthly. Rates and Fees Î Commercial Refuse: 8 Commercial Front Load Services Services per Week 123Extra Empty 3 CY Front Load$72.00$148.00$248.00$40.00 4 CY Front Load$88.00$182.00$302.00$45.00 6 CY Front Load$112.00$231.00$378.00$59.00 8 CY Front Load$137.00$279.00$456.00$74.00 Commercial Side Load Services Services per Week 12Extra Empty 3 CY Side Load$97.00$199.00$41.00 4 CY Side Load$118.00$244.00$46.00 Temporary Front Load Container Service Monthly Rental Collection Fee 4 CY Front Load$76.00$84.00 8 CY Front Load$76.00$114.00 Roll-Off: Open Top and Compactor Container Services ScheduledOn-DemandLandfill Fee Monthly RentalCollection FeeCollection Feeper Ton 15 CY Open Top$119.00$238.00$258.00$38.50 20 CY Open Top$131.00$238.00$258.00$38.50 30 CY Open Top$154.00$238.00$258.00$38.50 40 CY Open Top$162.00$238.00$258.00$38.50 20 CY Compactor$369.00$238.00$258.00$38.50 30 CY Compactor$419.00$238.00$258.00$38.50 35 CY Compactor$498.00$238.00$258.00$38.50 42 CY Compactor$606.00$238.00$258.00$38.50 9 On-demand municipal solid waste (MSW) collections, excluding construction, deconstruction, and demolition materials, must be collected a minimum of once pe Texas Municipal Solid Waste handling requirements. Commercial Recycling The contamination rate must not exceed 10% of the hauled load to qualify as recyclable materials. On demand recyclables equal to or greater than 10% contamination must be hauled a minimum of once per week. Containers with loads exceeding 10% co MSW and will be hauled and billed by the City of Denton as MSW. The City of Denton has the authority to inspect the contents of any container located within DentonÓs city limits in order to determine the materials content of the container, so as to ensure compliance with the contamination requirements, which shall not Rates and Fees Î Commercial Recycling: Commercial Recycling Rates and Fees Commercial Cart Service 1 Cart2 CartsExtra Empty Monthly Recycling Rate$5.15$10.30$5.15 Commercial Front Load Recycling Services per Month 124Extra Empty 4 CY Front LoadN/A$56.00$73.00$50.00 6 CY Front Load$70.00$80.00$99.50$55.00 8 CY Front LoadN/A$94.00$114.00$65.00 Temporary Front Load Container Service - 8 CY Front Load Monthly Rental Collection Fee Comingled$67.00$77.00 Select Commodity$67.00$44.00 10 Special Events Recycling (Delivered) Small Events$57.00Collapsible, Portable Receptacles 8 CY Dumpster with 1 Empty and Dumpster Package$114.00 Collapsible, Portable Receptacles Extra Empty$114.00Extra Empty of 8 CY Dumpster Commercial Refuse and Recycling Cart Service In those areas where commercial cart collection is available, sm generating less than one cubic yard of refuse per week, may contract for once per week cart service. All waste must be contained in the cart, and the cart s 7:00 a.m. on the scheduled collection day. A maximum of four carts are available, two refuse and two recycling. The cart(s) will only be serviced one time per week. Service above this level will require the customer to subscribe to front-load container service. Commercial Service Fees: Commercial Service Fees Roll-Off Delivery / Relocation / Inaccessible Fee$95.00 FL/SL Delivery / Relocation / Inaccessible Fee$75.00 Commercial Cart Delivery$30.00 Minimum Monthly Charge $23.63 Wait Time Fee (per hour, billed in 15 minute increments)$85.00 Same Day Service Fee (request same day service after 11:00 a.m.) Lock Installation or Removal (Charge for each service)$200.00 Deposit For up to 4 Containers $200.00 Each Addiditonal Container $50.00 Front Load / Side Load Quarterly Container Cleaningper Container per Month$30.00 Semi-Annual Container Cleaningper Container per Month$15.00 On-Demand Container Cleaning per Container $150.00 No Parking Zone Initial Calendar Year$185.00 (Single Length)Monthly Renewal Fee for Subsequent Years $2.94 11 No Parking ZoneInitial Calendar Year $360.00 (Extra Length)Monthly Renewal Fee for Subsequent Years $5.76 Right-of-Way Fee (per day)$5.00 Delivery / Relocation / Inaccessible Fee A fee will be charged for the delivery of a container, the relocation of a container, or if the container is inaccessible at the time of service. Minimum Charge A monthly minimum charge will be charged to all non-cart commercial solid waste customers. Wait Time Fee Customers that request the driver wait so that they can provide an additional service to the customer will be charged an on-site waiting time fee charged in fifteen (15) minute increments. Same-Day Service Fee The Solid Waste Department Customer Service personnel must receive on-demand service requests prior to 11:00 a.m. on the day service is desired in order to provide same day collection service. Lock Installation Fee For the Solid Waste DepartmentÓs installation or removal of container locks. Deposit Fee For containers, a commercial solid waste service deposit is required. Payments to the City that are not received by the due date will result in the customerÓs d next billing cycle. The deposit increase will be based upon the customerÓs billing history. To continue receiving service, the customer is required to remit the previous service balance owed and the increased deposit charges. The General Manager, Solid Waste Services, or designee, may waive the deposit based upon the review of the customerÓs credit history and other criteria. No Parking Zone Fees for Containers in Right-of-Way No Parking Zone fees provide for an identifiable and painted area in the street which is designated as a vehicular No Parking Zone, which provides for road clearance, allowing the CityÓs trucks to always have accessibility to the customerÓs container. The No Parking Zone is designed to prevent the container from being blocked by another vehicle, and therefore eliminates additional service fees from being charged to the cus 12 truck driver to return to the customerÓs address and empty the container once a vehicle blocking a container has moved. Customers may secure a dedicated No Parking Zone for front load and side load containers by completing an application with the City Traffic Engineer. Container Cleaning Fees Commercial container cleaning services are available for front-load or side-load containers. The service is a one-year service subscription that is elected by the customer. The one-year service agreement is on a annual basis, not a fiscal year basis. Only empty containers will be transported and cleaned, and are projected to be off the customerÓs site for no longer than four (4) hours. Shared commercial container customers that desire to have their containers cleaned shall determine the monthly amount to be billed to each customer, which when totaled shall equal the monthly rates for scheduled services or the on-demand service rate. Shared Commercial Containers Î Square District Shared container collection services which include both refuse and recyclables collections at each business site within the Square District of the City of DentonÓs Downtown Implementation Plan area will be provided for the charges listed below. Shared Container Fees Î Square District: Shared Commercial Containers - Square District Residential: Per living unit within the Square District$23.63month Commercial Business: For 1 Cubic yard of Service (Minimum)$23.63month For 2 or more Cubic Yards of Refuse or Recyclables$17.64per Cubi Administrative Fee for 2 or more Cubic Yards$2.00month Property owners within the Square District may have individual business containers on their property if they choose not to use shared container service. Shared Commercial Containers (Outside of Square District) Shared commercial container customers must have at least one (1) cubic yard of service per customer per week. The use of shared commercial containers shall be determined by the Solid Waste Division staff. Rates will include the additional monitoring, billing, and administrative costs associated with this service. Shared accounts are subject to other applicable service fees. 13 Miscellaneous All new commercial business development and redevelopment will b commercial refuse and recycling services, as outlined in the Denton Development Code and the Site Plan Criteria Manual. Refuse will be collected in City approved or City provided containers only. All non-City owned containers shall have a container permit affixed to the outside of each container in a location that is clearly visible when viewed by Solid Waste Department employees, from the front of the collection site. Commercial refuse collection services are provided through a volume-based rate system. The City reserves the right to reject recycling loads containing any materials other than the contracted material. If a load is rejected as recyclables by the City, it will be handled as municipal solid waste (MSW) and incur both the rejected recycling charges as well as associated commercial solid waste disposal rates. Other services may be provided at fees established by the department, and approved by the General Manager. The fees established will recoup the cost of service including the special services and administrative services provided. Should any other fees and/or charges be established by any other authorized governmental entity, those fees and/or charges will be added to the monthly rate stated hereinabove in order that the City shall recover those additional costs from the customer. Special Waste DentonÓs acceptance and disposal of Special Waste is defined by the State of Texas in the Texas Municipal Solid Waste Management Regulations and is conditional upon the special waste requested from the customer for disposal. Acceptance of special waste is subject to Federal and State laws and regulations, and the City of Denton has the right to refuse to accept or collect special waste at their discretion. Charges, approved by the General Manager, Solid Waste, for the collection and disposal of special waste, will be established based on the type of special waste, and the requirements for collection and disposal of the waste. Service Requirements Equipment Uses - All equipment furnished by the City, shall at all times be considered the property of the City. Customer shall keep the equipment free and clear of all levies, liens and encumbrances. Customer shall not modify the equipment or use it set forth herein. The City shall repair, as necessary, the equipment(s) furnished. The Customer, however, agrees to be solely responsible for any damages to or loss of equipment resulting from any negligent acts or misuse by the Customer or Customer's agents or employees, or invitees. The City may temporarily replace the size and/or the type of equipment contracted for with one or more pieces of equipment(s) of equivalent capacity for the purposes of repairing the 14 equipment. Customer agrees that the equipment is in the Customer's care, custody, and control at all times. Equipment Location - Customer shall provide an accessible location for the Equipment that is safe and provides adequate and legal clearance. This means that for a radius of at least five (5) feet around the Equipment there will be no objects or obstructions other than enclosures that meet City-required clearance standards. No container shall be set closer than two (2) feet to any structure (exception: a bollard in an enclosure). Additionally, the path that the CityÓs Service truck must take on CustomerÓs premises, must provide a minimum clearance on each side of the CityÓs truck of at least two (2) feet. Overhead clearance of twenty-five (25) feet is required fo roll-off containers, and twenty (20) feet for front and side-load containers. Failure to maintain or provide these minimum clearances will result in the CityÓs refusal to pay any and all damage claims and/or to service the container. Customer will be solely responsible for providing access to the Equipment at all times, and agrees that Customer shall not be relieved of payment of any charges for Services contracted for, but not provided by the City, because of CustomerÓs failure to maintain continuous prescribed access to the Equipment. Outside of normal wear and tear, the maintenance required to place the Container at another location will be charged to the Customer. Weight Limits - Loaded side-load containers shall not exceed a total weight of one ton. Loaded front-load containers shall not exceed a total weight of two tons. Any container evaluated by the CityÓs collection manager to contain excess weight shall be emptied by the customer to the level determined by the collection manager prior to being serviced. Tickets and/or fines for overweight roll-off loads, and the CityÓs administrative costs, are the responsibility of the customer, and shall be paid by the customer. Indemnification and Hold Harmless - Customer agrees that the City will not be liable to Customer. Customer shall defend, indemnify and hold the City harmless from any and all claims made by CustomerÓs lessor or CustomerÓs lessee at the Service location, and any and all claims made by any other person having an interest in the property situated at the Service location, for any loss, damage or deterioration of the pavement, surface or subsurface materials or facilities at the Service location by reason of use thereof by the CityÓs trucks that are used to Service the Equipment. Customer agrees to release, indemnify, defend and hold harmless the City of Denton, Texas from and against any and all claims for damages to enclosures or screening devices, from solid waste Equipment which do not have an access opening of at least twelve (12) feet inside diameter (ID) for front-load Equipment; and fifteen (15) feet (ID) for roll-off Equipment. Customer further agrees to release, indemnify, defend and hold harmless the City of Denton, Texas, from and against any and all claims of damages related to the furnishing of commercial solid waste service performed by the City. 15 SCHEDULE SWC&D CONSTRUCTION, DECONSTRUCTION, AND DEMOLITION MATERIALS SERVICES (Effective 10/01/12) For construction, deconstruction, demolition, and renovation sites where the customer requests the City of Denton provide roll-off collection services for the recycling and reuse of the salvaged materials. Rates and Fees: Rates are established for roll-off collection, transportation, and processing services of the listed materials and any other mutually agreed upon materials for which recyclable and reuse markets exist. Uncontaminated C&D materials will be accepted on a per ton or a cubic yardage basis. Rates charged will be based on the quantity and quality of materials to be delivered. Construction, Deconstruction, and Demolition Rates and Fees Monthly RentalCollection FeeLandfill Fees 20 CY Roll-Off$116.00$255.00N/A 30 CY Roll-Off$137.00$255.00N/A Mixed C&D MaterialN/AN/A$5.00per CY Concrete, Block, BricN/AN/A$5.00per CY Processing FeesN/AN/A$5.00per CY WoodN/AN/A$23.00per Ton Miscellaneous The City reserves the right to reject C&D loads containing any materials other than the agreed upon material. If a load is rejected, it will be handled as municipal solid waste (MSW) and incur commercial solid waste disposal rates. Other commercial services may be provided at fees established by the Solid Waste Division, and approved by the General Manager, Solid Waste Services. The fees established will recoup the costs and administration of the special services provided. Should any other fees and/or charges be established by any other authorized governmental entity, those fees and/or charges will be added to the monthly rate stat that the City shall recover those additional costs from the customer. 16 SCHEDULE SWL LANDFILL SERVICES (Effective 10/01/12) Rates and Fees MSW Disposal Rates Minimum Charge (per load)$20.00 Unsecured Loads$20.00 Gate Rate (per ton)$42.25 Commercial Rate (per ton)$26.75 Wholesale Rate (per ton)$22.00 State Surcharge (per ton)$1.25 Uncompacted Rate (per CY)$7.70 Compacted Rate (per CY)$8.10 C&D Rate (per CY)$5.00 Tires Each Street tires 31Ñ diameter$8.00 Street tires > 31Ñ diameter and < 42Ñ diameter$10.00 All off-road tires and street tires 42Ñ diameter$20.00 Yard Waste Per Ton Whole tree stumps$50.00 Bagged or unbagged grass, leaves$20.00 Brush < 12'$20.00 Brush > 12'$30.00 Appliances Appliance with PCB's or refrigerants (per item)$50.00 Electronics Electronics (per item)$15.00 17 Inert Material Per CY Clean Inert Material < 100 CY's$10.00 Clean Inert Material > 100 CY's$7.00 Other Charges Hand unloading outside regular operating hours$120.00 / Hour Materials pull-off charge$40.00 / Pull Sand, Select Soil, Rock and Crushed Concrete Sales Sand and Soil:SandSelect Soil City Loaded Per CYPer CY Sand & Soil < 50 CY's$5.00$7.00 Sand & Soil > 50 CY's$3.00$4.00 Customer Loaded Per CYPer CY Sand & Soil > 50 CY's$2.00$3.00 Rock and Crushed Concrete: Rocks$5.00Per 100 Lbs Crushed Concrete $7.00Per CY Materials Delivery Fee$100.00Per Load Services Customers with greater than 3,000 monthly tons may receive different rate structures for varied waste categories or guaranteed delivery volumes. Unsecured Loads In compliance with State regulations, solid waste loads that are not adequately secured to prevent the material from spilling will be charged an Unsecured Load Fee Appliances Appliances manufactured to contain PCBÓs or refrigerants for which the customer provides no certified removal documentation of the PCBÓs or refrigerants will be charged for the disposal of each appliance and/or the associated materials. 18 Electronics Televisions, monitors, video displays, electronic devices and certain appliances containing cathode ray tubes, LED, LCD, or plasma displays will be charged per device for disposal of these devices. Sand, Select Soil, Rock and Crushed Concrete Sales The Solid Waste Department may sell excess sand, select soil, and rock to the public. Note: Customers wishing to purchase large volumes of soil, greater than 50 CYÓs, and load their own vehicles, will be required to provide proof of insurance meeting the cityÓs minimum liability insurance coverage. Large volume sales and the actual rates charged will require pre-approval by the General Manager, Solid Waste. The soils must be excess to the needs of the Solid Waste Department. Pricing for special soils will be established by the General Manager, Solid Waste at a rate to fully recover costs. Special Waste and Other Waste Streams The acceptance by the landfill of and the disposal of special waste or other waste is conditional. Acceptance of special waste or other waste is subject to Federal and State laws and regulations. The City of Denton has the right to refuse to accept or dispose of special waste or other waste at its discretion. Charges for the disposal of special waste or oth on the type, characteristics, and amounts of waste, as well as the requirements for disposal of the waste. Such charges shall be established by the General Manager, Solid Waste, or designee. Miscellaneous The current State of Texas landfill surcharge of (30 TAC 330.602) $1.25 per ton is a pass- through charge collected on behalf of the State of Texas. Any additional assessment or fees established by a governmental entity will be added to the disposal rates and assessed on all waste delivered to the landfill. Other landfill services that are not otherwise listed under this Schedule SWL may be provided by the City at fees established by the General Manager, Solid Waste. Such fees shall be established that will recover the operational costs, administrative costs, and any other direct or indirect costs incident to the non-listed landfill services. Used Container Sales The Solid Waste Department will sell used metal containers and used surplus carts from time to time, as they become available for sale. 19 SECTION 2. The General Manager of Solid Waste of the City of Denton is hereby authorized to deny the use of the City of Denton landfill to any customer who provides false information regarding the origin of, or the composition of the solid waste delivered for disposal to the landfill; or for safety violations committed by a customer within the landfill; or for non- compliance with verbal and written instructions provided to the customer by Solid Waste Department personnel at the landfill; or for nonpayment of delinquent funds owed by the customer to the City of Denton, Texas; or for any violation of t within the landfill; or for any non-compliance by the customer with the Texas Commission on Environmental Quality regulations or policies; or for any non-compliance by the customer with the City of DentonÓs Code of Ordinances or rules; or for any violation of the written landfill rules by the customer as posted by the Solid Waste Department at the entrances to the landfill, from time to time. SECTION 3. It is in the public interest that the provisions of Sections 26-3, 26-4, 26-5, 26- 7, 26-8(a), and 26-9 of Article I of Chapter 26 of the City of Denton Code of Ordinances shall expressly apply to City of Denton Solid Waste service. SECTION 4. All ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 5. If any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or the application thereof to any person or under any circumstances is held invalid by any court of competent jurisdiction, such holding shall not affe 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 6. This ordinance shall become effective, charged, and applied to all solid waste services rendered by the City of Denton on and after October 1, 2012; and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary of Denton, Texas. PASSED and APPROVED this ________ day of ____________, 2012. _________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: __________________________________ 20 APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: ___________________________ ______ 21 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: UtilitiesAdministration ACM: Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance amending the schedule of wastewater rates contained in ordinance No. 2011-162; providing for an amendment in the rates for residential wastewater service (Schedule SR); amending the mobile home park wastewater service (Schedule SMH); amending the commercial and industrial wastewater service (Schedule SC); amending the commercial/industrial wastewater service which measures with dedicated water meters (sub- meters) water for wastewater billing (Schedule SCD); amending the commercial/industrial wastewater service which measures with dedicated water meters (sub-meters) water excluded from wastewater billing (Schedule SCS); amending the septage & chemical toilet disposal at the Pecan Creek Water Reclamation Plant transfer station (Schedule SCH); amending the equipment services facilities and restaurant & food service establishments wastewater service (Schedule SEE); amending the metered wastewater inside and outside corporate limits (Schedule SM); amending the sale of treated wastewater effluent (Schedule SGE); amending the wastewater tap and manhole fees (Schedule ST); adding the collection and transportation services permit (Schedule SWP); providing for a repealer; providing for a severability clause; and providing for an effective date. (The Public Utilities Board recommends approval 6-0.) BACKGROUND During the budget presentations, the Public Utilities Board (“PUB”) reviewed the Wastewater Utility budget and the proposed rate change that could be implemented to support the proposed FY 2012-2013 budget and FY 2013-2017 CIP. As part of the Wastewater budget discussions, the Wastewater department staff recommended and received PUB direction and approval for a 9% rate revenue increase. The 9% includes funding to support the aging wastewater infrastructure and reserve requirement financial plan. Staff is proposing an across the board rate increase of approximately 9% to all components of existing residential and commercial retail rates. The proposed rate increase is designed to recover the cost of service for the wastewater utility and provide a positive or break-even net income for the utility. The average residential customer using 6,000 gallons would incur the following monthly charge: Current Proposed Increase $27.50 $30.00 $2.50 PRIOR ACTION/REVIEW Proposed FY 2012-2013 Utilities budgets and CIP’s were presented and approved by the Public Utilities Board (“PUB”) during May and June, 2012. This rate ordinance was approved by the AIS September 11, 2012 Page 2 of 2 PUB on July 23, 2012 by a vote of 6-0. The budgets, including draft rate ordinances, were presented to the City Council for review on July 27, 2012. This ordinance is scheduled for adoption on September 11, 2012. SUMMARY An across the board increase of 9% is the simplest way to achieve the necessary rate revenue increase. Based on normal volumes, the proposed increase will generate the rate revenue needed to meet revenue requirements. FISCAL SUMMARY The proposed rate increase will provide the revenues necessary to cover the cost of service to customers. RECOMMENDATION Staff recommends approval of the proposed ordinance, with an effective date of October 1, 2012. EXHIBITS 1.Proposed FY 2012-2013 Wastewater Rate Ordinance Respectfully submitted: Howard Martin Assistant City Manager/Utilities EXHIBIT1 ORDINANCE NO. 2012-_________ AN ORDINANCE AMENDING THE SCHEDULE OF WASTEWATER RATES CONTAINED IN ORDINANCE NO. 2011-162; PROVIDING FOR AN AMENDMENT IN THE RATES FOR RESIDENTIAL WASTEWATER SERVICE (SCHEDULE SR); AMENDING THE MOBILE HOME PARK WASTEWATER SERVICE (SCHEDULE SMH); AMENDING THE COMMERCIAL AND INDUSTRIAL WASTEWATER SERVICE (SCHEDULE SC); AMENDING THE COMMERCIAL/INDUSTRIAL WASTEWATER SERVICE WHICH MEASURES WITH DEDICATED WATER METERS (SUB- METERS) WATER FOR WASTEWATER BILLING (SCHEDULE SCD); AMENDING THE COMMERCIAL/INDUSTRIAL WASTEWATER SERVICE WHICH MEASURES WITH DEDICATED WATER METERS (SUB-METERS) WATER EXCLUDED FROM WASTEWATER BILLING (SCHEDULE SCS); AMENDING THE SEPTAGE & CHEMICAL TOILET DISPOSAL AT THE PECAN CREEK WATER RECLAMATION PLANT SEPTAGE TRANSFER STATION (SCHEDULE SCH); AMENDING THE EQUIPMENT SERVICES FACILITIES AND RESTAURANT & FOOD SERVICE ESTABLISHMENTS WASTEWATER SERVICE (SCHEDULE SEE); AMENDING THE METERED WASTEWATER INSIDE AND OUTSIDE CORPORATE LIMITS (SCHEDULE SM); AMENDING THE SALE OF TREATED WASTEWATER EFFLUENT (SCHEDULE SGE); AMENDING THE WASTEWATER TAP AND MANHOLE FEES (SCHEDULE ST); ADDING THE COLLECTION AND TRANSPORATION SERVICES PERMIT (SCHEDULE SWP); PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Rate Schedules for wastewater service as provided for in Chapter 26 of the Code of Ordinances, are amended to read as follows: WASTEWATER RATE SCHEDULES SR Residential Wastewater Service 3 SMH Mobile Home Park Wastewater Service 6 SC Commercial and Industrial Wastewater Service 9 SCD Commercial/Industrial Wastewater Service Which Measures With 13 Dedicated Water Meters (Sub-meters); Water For Wastewater Billing SCS Commercial/Industrial Wastewater Service Which Measures With 15 Dedicated Water Meters (Sub-meters); Water Excluded From Wastewater Billing SCH Septage & Chemical Toilet Disposal at the Pecan Creek Water 17 Reclamation Plant Septage Transfer Station 1 SEE Equipment Services Facilities and Restaurants & Food 18 Service Establishments Wastewater Service SM Metered Wastewater Inside and Outside Corporate Limits 21 SGE Sale of Treated Wastewater Effluent 23 SSC Wholesale Wastewater Treatment Service for a 25 Governmental Agency, Division or Subdivision CWM DYNO Dirt Products 27 GBL Grass, Brush, and Leaves29 ST Wastewater Tap and Manhole Fees 30 STE Treated Effluent Wastewater Tap Fees 31 OSSF On-Site Sewage Facility Permit Fees 32 SWP Collection and Transportation Services Permit 33 SD Storm Drainage Fees 39 Special Facilities Rider 41 Special Conditions Rider 41 2 SCHEDULE SR RESIDENTIAL WASTEWATER SERVICE (Effective 10/01/12) APPLICATION Applicable for single-family residential service, and individually metered apartments or mobile homes or multi-family facilities with less than four (4) units. Also applicable for wastewater service without City of Denton, Texas water service. Not applicable for sub-billing or other utility billing by service user in any event. (SR) MONTHLY RATES - WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $9.00/bill (2) Volume Charge $3.50/1,000 gallons effluent (SRO) MONTHLY RATES – OUTSIDE CORPORATE LIMITS WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $10.35/bill (2) Volume Charge $4.05/1,000 gallons effluent Except as otherwise stated in this schedule, wastewater volume is calculated based upon a current winter Average Daily Usage, established annually during the previous billing months of December through February, and based upon 98% of actual water consumption during those months. The average daily usage may be calculated using as few as two months. The Average Daily Usage thus calculated establishes the wastewater volume charge for each subsequent month, through the following February. The calculated wastewater billed volumes will be capped at a maximum of 18,000 gallons/bill. For customers without an established winter Average Daily Usage water consumption billing history derived from the preceding billing months of December through February, wastewater volume for each billing month through the following February shall be calculated at 98% of 6,500 gallons. MINIMUM BILLING - WITH CITY OF DENTON WATER SERVICE Facility Charge VOLUME CHARGE - WITH CITY OF DENTON WATER SERVICE With a current Average Daily Usage, billings through the following February shall be based on the average daily usage calculated using the following formula. Current Average Daily Usage x 98% Rate per 1,000 gallons 1,000 3 For customers without an established current Average Daily Usage, billings shall be based on 98% of 6,500 gallons. 6,500 Gallons x 98% Rate per 1,000 gallons 1,000 PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. (SRNI/SRNO) MONTHLY RATES - WITHOUT CITY OF DENTON WATER SERVICE SRNISRNO Inside Corporate Outside Corporate Limits Limits (1) Facility Charge $9.00/bill $10.35/bill (2) Volume Charge $3.50/1,000 gals $4.05/1,000 gals The customer shall pay a minimum Volume Charge on the established billable volume of five thousand (5,000) gallons per month. MINIMUM BILLING - WITHOUT CITY OF DENTON WATER SERVICE The Facility Charge plus five thousand (5,000) gallons of wastewater. VOLUME CHARGE - WITHOUT CITY OF DENTON WATER SERVICE The billing for the wastewater volume shall be based on the minimum wastewater volume (5,000 gallons) during the billing period. Minimum Wastewater Volume Rate per 1,000 gallons 1,000 Wastewater volumes will be capped at a maximum of 18,000 gallons/bill. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 4 SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 5 SCHEDULE SMH MOBILE HOME PARK WASTEWATER SERVICE (Effective 10/01/12) APPLICATION Applicable for mobile home parks that are master water metered to provide residential wastewater service. Wastewater service is billed based on the Customer’s winter average water usage. Also applicable for wastewater service without City of Denton water service, in the event the mobile home park does not have a master meter for wastewater. Wastewater service is billed on the average residential wastewater volume per customer. Not applicable for sub-billing or other utility billing by service user in any event. (SMH) MONTHLY RATE - WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $23.55/bill (2) Volume Charge $3.50/1,000 gallons effluent (SMHO) MONTHLY RATE – OUTSIDE CORPORATE LIMITS WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $27.10/bill (2) Volume Charge $4.05/1,000 gallons effluent Except as otherwise stated in this schedule, wastewater volume is calculated based upon a current winter Average Daily Usage, established annually during the previous billing months of December through February, and based upon 98% of actual water consumption during those months. The average daily usage may be calculated using as few as two months. The Average Daily Usage thus calculated establishes the wastewater Volume Charge for each subsequent month, through the following February. The calculated wastewater billed volumes will be capped at a maximum of 18,000 gallons/bill. For customers without an established winter Average Daily Usage water consumption billing history derived from the preceding billing months of December through February, wastewater volume for each billing month through the following February shall be calculated at the established billable volume (5,000 gallons per month per mobile home) for mobile home park customers not receiving water service. MINIMUM BILLING - WITH CITY OF DENTON WATER SERVICE Facility Charge 6 VOLUME CHARGE - WITH CITY OF DENTON WATER SERVICE With a current Average Daily Usage, billings through the following February shall be based on the average daily usage calculated using the following formula. Current Average Daily Usage x 98% Rate per 1,000 gallons 1,000 For customers without an established winter Average Daily Usage, billings shall be based on the established billable volume of 5,000 gallons per mobile home per month. Established Billable Volume Rate per 1,000 gallons Number of Mobile Homes 1,000 PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. (SMNI/SMNO) MONTHLY RATE - WITHOUT CITY OF DENTON WATER SERVICE SMNISMNO Inside Corporate Outside Corporate Limits Limits (1) Facility Charge $23.55/bill $27.10/bill (2) Volume Charge $3.50/1,000 gals $4.05/1,000 gals The Customer shall pay a minimum Volume Charge on the established billable volume of five thousand (5,000) gallons per month. MINIMUM BILLING - WITHOUT CITY OF DENTON WATER SERVICE The Facility Charge plus five thousand (5,000) gallons of wastewater per mobile home VOLUME CHARGE - WITHOUT CITY OF DENTON WATER SERVICE The billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Minimum Wastewater Volume Rate per 1,000 gallons Number of Mobile Homes 1,000 7 PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 8 SCHEDULE SC COMMERCIAL AND INDUSTRIAL WASTEWATER SERVICE (Effective 10/01/12) REGULAR COMMERCIAL APPLICATION Applicable to all general commercial and industrial wastewater service users and to all wastewater service users not otherwise specifically classified under a specialized class wastewater rate. Also applicable to all commercial facilities not receiving metered water service from the City of Denton, including subdivisions, for apartments, or other commercial users. (SC) MONTHLY RATE - WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $23.55/bill (2) Volume Charge $4.50/1,000 gallons effluent Billing based on eighty five (85%) percent of monthly water consumption. Plus PRETREATMENT/PROGRAM CHARGES (As Applicable) (SCA) (A) Categorical Customer $400.00/bill (SCB) (B) Non-categorical Customer $ 50.00/bill SAMPLING AND ANALYSIS CHARGES (As applicable) (A) Sampling charge (each) $60.00 (B) Analysis charge (per test) $ Actual cost per test SCO MONTHLY RATE () – OUTSIDE CORPORATE LIMITS WITH CITY OF DENTON WATER SERVICE (1) Facility Charge $27.10/bill (2) Volume Charge $ 5.20/1,000 gallons effluent Billing based on eighty five (85%) percent of monthly water consumption. MINIMUM BILLING Facility Charge 9 VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Water volume .85 Rate per 1,000 gallons 1,000 COMMERCIAL AND INDUSTRIAL SURCHARGE In addition to the above charges for commercial and industrial services, there will be added to the monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vux.00834 ([Bu-250] B + [Su-250] S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. .00843 is the conversion factor Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. B is the unit cost factor for treating one pound of BOD Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS (SCNI/SCNO) MONTHLY RATE - WITHOUT CITY OF DENTON WATER SERVICE SCNISCNO Inside Corporate Outside Corporate Limits Limits (1) Facility Charge $23.55/bill $27.10/bill (2) Volume Charge $4.50/1,000 gals $ 5.20/1,000 gals The minimum apartment Volume Charge will be for five thousand (5,000) gallons per unit receiving wastewater service per month. Other commercial users will be billed on their estimated monthly wastewater volume. MINIMUM BILLING (1) Facility Charge plus 5,000 gallons wastewater per unit receiving wastewater service. or (2) Facility Charge plus other commercial user estimated monthly wastewater volume. 10 VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Minimum wastewater volume Rate per 1,000 gallons 1,000 Plus PRETREATMENT/PROGRAM CHARGES (As applicable) (1) Categorical Customer $400/bill (2) Non-categorical Customer $50/bill SAMPLING AND ANALYSIS CHARGES (As applicable) (1) Sampling charge (each) $60.00 (2) Analysis charge (per test) Actual cost per test COMMERCIAL AND INDUSTRIAL SURCHARGE In addition to the above charges for commercial and industrial services, there will be added to the net monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vux.00834 ([Bu-250] B + [Su-250] S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. .00834 is the conversion factor Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. B is the unit cost factor for treating one pound BOD. Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 11 SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 12 SCHEDULE SCD COMMERCIAL/INDUSTRIAL WASTEWATER SERVICE WHICH MEASURES WITH DEDICATED WATER METERS (SUB-METERS), WATER FOR WASTEWATER BILLING (Effective 10/01/12) APPLICATION Applicable to all commercial and industrial wastewater service users and to all wastewater service users not otherwise classified under this ordinance whose wastewater volume is measured by a water meter which measures the water which is returned into the wastewater collection and treatment system. The SCD sub-metered wastewater volumes are billed to the Customer. Not applicable for sub-billing or other utility billing by service user in any event. MONTHLY RATE (1) Facility Charge Billing Per Bill 3/4" Meter $ 25.25 1" Meter $ 30.20 1-1/2" Meter $ 35.75 2" Meter $ 47.55 3" Meter $102.40 4" Meter $189.10 6" Meter $253.60 8" Meter $333.50 10" Meter $445.50 (2) Volume Charge $4.50/1,000 gallons effluent The wastewater billing is based on ninety-eight (98%) percent of the actual water volume submetered. MINIMUM BILLING Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet customer's service requirements shall be 13 provided subject to the Special Facilities Rider. COMMERCIAL AND INDUSTRIAL SURCHARGE In addition to the above charges for services, there will be added to the monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vu x.00834([Bu-250] B + [Su-250] S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. .00843 is the conversion factor Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. B is the unit cost factor for treating one pound of BOD. Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS. VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Actual Water volume .98 Rate per 1,000 gallons 1,000 14 SCHEDULE SCS COMMERCIAL/INDUSTRIAL WASTEWATER SERVICE WHICH MEASURES WITH DEDICATED WATER METERS (SUB-METERS), WATER EXCLUDED FROM WASTEWATER BILLING (Effective 10/01/12) APPLICATION Applicable to all commercial and industrial wastewater service users and to all wastewater service users not otherwise classified under this ordinance whose wastewater volume is calculated by a water meter which measures the water which is not returned into the wastewater collection and treatment system. The SCS sub-metered wastewater volumes are consumed in the customer’s processes, not returned to the wastewater system, and are therefore excluded from the customer’s wastewater billing volumes. Not applicable for sub-billing or other utility billing by service user in any event. MONTHLY RATE (1) Facility Charge Billing Per Bill 3/4" Meter $ 25.25 1" Meter $ 30.20 1-1/2" Meter $ 35.75 2" Meter $ 47.55 3" Meter $102.40 4" Meter $189.10 6" Meter $253.60 8" Meter $333.50 10" Meter $445.50 (2)Volume Charge – None The wastewater billing exclusion is based on one-hundred (100%) percent of the actual water volume sub metered. MINIMUM BILLING Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 15 WASTEWATER SURCHARGE In addition to the above charges for services, there will be added to the monthly rate a surcharge based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vux.00834 ([Bu-250] B + [Su-250] S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. .00834 is the conversion factor Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. B is the unit cost factor for treating one pound of BOD. Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS. VOLUME CHARGE EXCLUSION The wastewater volume exclusion shall be based on the water volume calculated during the billing period. This sub-metered volume shall be excluded, in other words, removed, from the master meter water volume prior to the wastewater billing volume calculation. 16 SCHEDULE SCH SEPTAGE & CHEMICAL TOILET DISPOSAL AT THE PECAN CREEK WATER RECLAMATION PLANT SEPTAGE TRANSFER STATION (Effective 10/01/12) APPLICATION Applicable to all users of the Pecan Creek Water Reclamation Plant Septage Transfer Station. The user must sign the “Agreement for Disposal of Liquid Waste” and comply with the following requirements: 1.Section 26-191 of the City of Denton Code 2.Provide to the City: signed “Application for Permit”, “Agreement for Disposal of Liquid Waste” documents, and provide copy of current TCEQ Registration Certificate, current Insurance Certificate for each vehicle, and current Manager of Operations Driver’s License. 3.Comply with the “Liquid Waste Hauler – Vehicle Inspection Audit” requirements RATE (1) Facility Charge $5.45/bill (2) Volume Charge $35.10/1,000 gallons (3) Permit Fee each vehicle $300.00/per fiscal year MINIMUM BILLING Facility Charge PAYMENT Permit fee is due in full before first disposal at Pecan Creek Water Reclamation Plant Septage Transfer Station. Fee is prorated at $25 per month for current month and each of the remaining months in fiscal year. Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. VOLUME CHARGE Billing for the septage volume contained in the septage hauling tank, shall be based on the full tank volume only. 17 SCHEDULE SEE EQUIPMENT SERVICES FACILITIES AND RESTAURANTS & FOOD SERVICE ESTABLISHMENTS WASTEWATER SERVICE (Effective 10/01/12) APPLICATION Applicable to facilities which perform washing, cleaning or servicing of automobiles, trucks, buses or similar equipment and are categorized by North American Industry Classification System (NAICS) numbers: (811111, 811112, 811113, 811118, 811122, 811121, 811192, 811198, 447110, 447190) and /or similar code classifications. Applicable to all restaurants and food service establishments that prepare and serve food directly to customers and are categorized by NAICS numbers: (722110, 722211, 722212, 722213, 722410, 722310, 722320) and/or similar code classifications. MONTHLY RATE(SEE) (1) Facility Charge $23.55/bill (2) Volume Charge $6.20/1,000 gallons effluent Billing based on eighty (85%) percent of monthly water consumption. Plus PRETREATMENT / PROGRAM CHARGES (As Applicable) (SEA) (A) Categorical $400/bill (SEB) (B) Non-categorical $50/bill The appropriate Pretreatment/Program charge will be applied if the Customer is identified as either categorical or non-categorical. These charges are not to be applied if the Customer is not designated as either a categorical or non-categorical customer. SAMPLING/ANALYSIS CHARGES (As Applicable) (1) Sampling charge (each) $60.00 (2) Analysis charge (per test) Actual cost per test “SEE” RATE EXEMPTIONS (1) Customers under the SEE rate shall be charged the SC rate if only pre-wrapped and preprocessed foods are served from their premises and no food processing is performed on the premises so that only minimal organic material is discharged to the sanitary sewer. The exemption for the SEE class shall be determined by the City of 18 Denton Environmental Health Services Food Inspection Division. (2) Customers under the SEE rates shall be charged the SC rate plus the applicable industrial surcharge if the Customer: (a) Installs a wastewater sampling manhole on the sanitary sewer discharge line; (b) Agrees to pay for the City to sample and analyze, quarterly, the wastewater discharge for the following: Biochemical Oxygen Demand (BOD), Total Suspended Solids (TSS), and Fats, Oils and Grease (FOG), based on the actual costs; and (c) Agrees to pay, based on the industrial surcharge formula, a surcharge on all wastewater discharged that is in excess of 500 mg/l of BOD and 600 TSS as determined by the monitoring performed in Section 2(b). MINIMUM BILLING Facility Charge WASTEWATER SURCHARGE The wastewater surcharge calculation that applies to equipment services facilities and restaurant and food service establishments claiming the SEE exemption shall be based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vux.00834 ([Bu-500] B + [Su-600] S]) Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. .00834 is the conversion factor Bu is the tested BOD level for user X or 500 mg/l, whichever is greater. B is the unit cost factor for treating one pound of BOD. Su is the tested TSS level for user X or 600 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. 19 VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Water volume .85 Rate per 1,000 gallons 1,000 20 SCHEDULE SM METERED WASTEWATER INSIDE AND OUTSIDE CORPORATE LIMITS (Effective 10/01/12) APPLICATION Applicable to any wastewater service Customer whose wastewater discharge is metered from a single customer location and not otherwise classified under this ordinance. SMISMO MONTHLY RATE Inside Corporate Outside Corporate Limits Limits (1) Facility Charge $290.80/bill $334.40/bill (2) Volume Charge $4.50/1,000 gals $5.20/1,000 gals Plus (3) Pretreatment/Program Charge (As Applicable) (SMA) (A) Categorical $400/bill (SMB) (B) Non-categorical $50/bill The appropriate Pretreatment/Program charge will be applied if the Customer is identified as either categorical or non-categorical. The categorical and non-categorical classifications are not bound by corporate limits. These charges are not to be applied if the Customer is not designated as either a categorical or non-categorical Customer by the wastewater utility staff. SAMPLING/ANALYSIS CHARGE (As Applicable) (1) Sampling charge (each) $60.00 (2) Analysis charge (per test) Actual cost per test WASTEWATER SURCHARGE In addition to the above charges, there will be added to the monthly rate for metered wastewater, a surcharge based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vux.00834 ([Bu-250] B + [Su-250] S]) 21 Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. .00834 is the conversion B is the unit cost factor for treating one pound of BOD. Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS. MINIMUM BILLING Facility Charge, plus the appropriate Pretreatment/Program Charge, if applicable PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Wastewater volume Rate per 1,000 gallons 1,000 22 SCHEDULE SGE SALE OF TREATED WASTEWATER EFFLUENT (Effective 10/01/12) APPLICATION Applicable for sales of treated wastewater effluent to any municipal utility or approved private business. Useable for non-potable purposes only. Not intended for human consumption. Not available for resale in any event. PRODUCT AVAILABILITY Wastewater effluent is available for resale only if volumes are available. Supplies may be limited or unavailable. MONTHLY RATES (1) Facility Charge Per Bill 3/4“Meter $ 21.95 1” Meter $ 26.25 1-1/2” Meter $ 31.10 2” Meter $ 41.35 3” Meter $ 89.05 4” Meter $164.45 6” Meter $220.50 8” Meter $290.00 10” Meter $387.40 (2) Volume Charge $1.35/1,000 gallons MINIMUM BILLING Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided subject to the Special Facilities Rider. 23 VOLUME CHARGE Billing for the wastewater volume shall be based on the effluent volume calculated during the billing period. Formula: Effluent volume Rate per 1,000 gallons 1,000 24 SCHEDULE SSC WHOLESALE WASTEWATER TREATMENT SERVICE FOR A GOVERNMENTAL AGENCY, DIVISION, OR SUBDIVISION (Effective 10/01/12) APPLICATION Applicable to any municipal corporation, or other governmental agency or subdivision which operates a wastewater collection system and contracts with the City of Denton for wastewater treatment service. MONTHLY RATES (1) Facility Charge $209.75/bill (2) Pretreatment/Program Charge (As Applicable) (A) Categorical $400.00/bill (B) Non-categorical $50.00/bill (3) Volume Charge $2.35/1,000 gallons Billing shall be based on one hundred (100%) percent of actual gallons measured. SAMPLING/ANALYSIS CHARGE (As Applicable) (1) Sampling Charge (each) $60.00 (2) Analysis Charge (per test) Actual cost per test MINIMUM BILLING Facility Charge. WHOLESALE SURCHARGE In addition to the above charges for wholesale wastewater services, there will be added to the monthly rate an industrial surcharge based on the following formula: Surcharge Unit Cost Factor $0.47 per pound of Biochemical Oxygen Demand (BOD) $0.42 per pound of Total Suspended Solids (TSS) Cu = Vux.00834 ([Bu-250] B + [Su-250] S]) 25 Where: Cu is the surcharge for customer X. Vu is the billing volume per 1000 gallons for customer X. .00834 is the conversion factor Bu is the tested BOD level for user X or 250 mg/l, whichever is greater. B is the unit cost factor for treating one pound of BOD. Su is the tested TSS level for user X or 250 mg/l, whichever is greater. S is the unit cost factor for treating one pound of TSS. PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOLUME CHARGE Billing for the wastewater volume shall be based on the wastewater volume calculated during the billing period. Formula: Wastewater volume Rate per 1,000 gallons 1,000 26 SCHEDULE CWM DYNO DIRT PRODUCTS (Effective 10/01/12) APPLICATION Applicable to any and all customers, whether residential, commercial, or wholesale, which elect to acquire the City of Denton’s Dyno Dirt products for their use. The City of Denton reserves the right to restrict or limit the sale of all Dyno Dirt products to any customer at any time. RATES Dyno Dirt products will be sold by volume on a cubic yardage basis, or in one cubic foot bags. Bulk quantities will not be sold in volumes less than one-half cubic yard. (A) Compost (1) Dyno Soil (Top Soil Blend) $30.00 /Cubic Yard (2) Dyno Dirt $25.00 /Cubic Yard (3) Dyno Lite $30.00/Cubic Yard (B) Wood Mulch (1) Dyno Landscape Mulch $27.50/Cubic Yard (2) Dyno Deco Colored Mulch $30.00/Cubic Yard (3) Dyno Double Grind $17.50/Cubic Yard Purchases for (A) and (B) above, greater than ten (10) cubic yards will receive a 20% discount, purchases greater than 100 cubic yards will receive a 40% discount. A contractor’s rate will be given to companies or persons who provide a current and valid resale certificate for inspection. The contractor’s rate includes a 30% discount on any purchase of from 1 to 99 cubic yards at any one time of any Dyno Product of the City of Denton. (C) City of Denton departments will receive a 40 % discount on all purchases of Dyno Dirt products. (D) Asphalt Millings $10.00/Cubic Yard PRODUCT AVAILABILITY The City of Denton produces Dyno Dirt products throughout the year in varying limited quantities. The City of Denton does not guarantee the availability of any product, and expressly reserves the right to restrict the sale of any product based upon available volumes. 27 LOCATION All Dyno Dirt products may be purchased from the City of Denton at the following location: Location Address Compost Sales Bldg Water Reclamation Plant 1100 Mayhill Road, Denton, Texas WHOLESALE PURCHASES All Dyno Dirt products 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 requested. 28 SCHEDULE GBL GRASS/BRUSH/LEAVES (Effective 10/01/12) APPLICATION Applicable to all City of Denton residents who submit for deposit at the landfill grass clippings, brush, and/or leaves, who shall pay the following rates: GRASS/BRUSH/LEAVES: Product Characteristics Charge 1. Uncontaminated bagged or un-bagged $20.00/ton grass, brush, or leaves in less than twelve foot (12’) lengths. 2. Uncontaminated bagged or un-bagged $30.00/ton grass, brush, or leaves in greater than twelve foot (12') lengths. 3. Contaminated grass, brush, or leaves of any length: $41.00/ton 4. Whole trees and stumps $50.00/ton MINIMUM CHARGE $17.50 per load Professional landscapers, tree trimmers, and yard maintenance personnel are required to bring their grass, brush, or leaves (all collectible yard waste) to the landfill, and are not permitted to leave any of the above-referenced collectible yard waste items stacked or piled on the curb at the Customer’s location. Grass, brush, and leaves shall not be assessed the City of Denton solid waste 3.5% surcharge to compensate for the State of Texas surcharge for all solid waste received at landfills if the materials are not land filled. 29 SCHEDULE ST WASTEWATER TAP AND MANHOLE FEES (Effective 10/01/12) APPLICATION This schedule applies to the installation, removal, or relocation of wastewater taps by the City of Denton Utility Department at the request of any person, firm, association, corporation, or other legal entity. TAP FEES Any person, firm, association, corporation, or other legal entity that requests that a wastewater main tap be removed, installed, or relocated by the Wastewater Utility Department shall pay in advance to the Wastewater Utility Department the following applicable fees: WASTEWATER TAPS WITH CLEANOUT Size of Tap Paved Street Unpaved Street 4 inch $2,200.00 $1,425.00 6 inch $2,600.00 $1,570.00 8 inch $2,700.00 $1,730.00 10 inch $2,800.00 $1,865.00 MANHOLE BREAKOUT FEE 6” – 12” Line $165.00 FEES FOR INSTALLATIONS NOT LISTED For installation of a tap or manhole for which a fee is not specified, the requestor shall pay in advance a deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation or similar work requested, the customer shall be billed at actual cost, as determined by the Wastewater Utility Department, plus a 20% administrative charge. Any excess deposit shall be refunded to the Customer. 30 SCHEDULE STE TREATED EFFLUENT WASTEWATER TAP FEES (Effective 10/01/12) APPLICATION This schedule applies to the installation, removal, or relocation of treated effluent wastewater taps by the City of Denton Utility Department at the request of any person, firm, association, corporation, or other legal entity. TAP FEES Any person, firm, association, corporation, or other legal entity that requests that a wastewater main tap be removed, installed, or relocated by the Wastewater Utility Department shall pay in advance to the Wastewater Utility Department the following applicable fees: REUSE WASTEWATER LINE TAPS Size of Tap Paved Street Unpaved Street 4 inch $2,705.00 $1,625.00 6 inch $2,920.00 $1,895.00 8 inch $3,895.00 $2,815.00 12 inch $4,865.00 $3,730.00 FEES FOR INSTALLATIONS NOT LISTED For installation of a tap for which a fee is not specified, the requestor shall pay in advance a deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation or similar work requested, the customer shall be billed at actual cost, as determined by the Wastewater Utility Department, plus a 20% administrative charge. Any excess deposit shall be refunded to the Customer. 31 SCHEDULE OSSF ON-SITE SEWAGE FACILTY PERMIT FEES (Effective 10/01/12) APPLICATION This schedule applies to the new construction of aerobic treatment systems, new construction of non-aerobic treatment systems, and repair and alteration of the above. OSSF PERMIT FEES Any person, firm, association, corporation, or other legal entity that requests a wastewater system work permit shall pay in advance to the Wastewater Utility Department the following applicable fees: New Construction of aerobic treatment systems $410 Reinspection Fee of aerobic treatment systems $200 New Construction of non-aerobic treatment systems $210 Reinspection Fee of non-aerobic treatment systems $100 Repair or Alteration fees (All types of OSSF’s) $50 32 SCHEDULE SWP COLLECTION AND TRANSPORTATION SERVICES PERMIT (Effective 10/01/12) Any person, entity, or business engaged in the collection and transport of waste, recyclables, or other materials as classified within this rate schedule, and operating within the City of Denton must possess a current permit issued from the City prior to providing collection and transportation services. Any private container located within the City of Denton for use in waste and recyclables collection services is required to be permitted. Permits for collection and transportation services are required for, but are not limited to, the following wastes and recyclables classifications: Municipal Solid Waste Special Waste Medical Waste Hazardous Waste Restaurant Oil and Grease Grease & Grit Trap Waste Commercial and Industrial Recyclable Materials – containerized and baled Residential Recyclable Materials Construction and Demolition (C&D) materials, recyclables, reuseables, and discarded C&D materials Waste and recyclable collection service providers operating in newly annexed areas, or contract service providers for the city Refuse or recyclables that the City does not collect and transport. The person shall apply for a permit from the city, and shall pay the required application fees at the time of permit application. All permits are non-transferable and are granted as non-exclusive service permits. Granting permits will be at the discretion of the City to meet the needs of the community. The permit applicant must pay the required fees, and meet all permit requirements prior to the issuance of a permit. Applicants with a Texas Commission of Environmental Quality (TCEQ) poor compliance history may not be permitted. All non-City of Denton container owners (roll-off containers, self contained compactors) are required to annually pay the per cubic yard container fee to the City of Denton for each container located within Denton’s city limits. Applicants will qualify to be permitted as ‘Small Operators’ if they have four or fewer service locations within the City of Denton, and operate with an organizational fleet of two vehicles or less, including trailers, of which each vehicle does not have a Gross Vehicle Weight Rating (GVWR) of more than 14,000 pounds. Granting of Permit As a condition of granting a permit, the person or entity receiving such permit (permittee) agrees to execute and comply with all requirements of the service agreement, carry specific types and amounts of insurance, submit reports, and timely pay the necessary fees. Following the granting 33 of a permit, permit stickers shall be issued by the City and shall be placed by the permittee on all vehicles operating within the city limits of Denton and upon all containers placed within the City limits of Denton. Collection and transportation vehicles operating in Denton, and containers set in Denton are required to display a current and valid calendar year permit decal at all times. If decals are lost by the permittee, and are not visible on their vehicles or containers, then the vehicles and/or containers must be re-permitted by the permittee, and all appropriate fees paid, prior to the vehicles or containers being placed in service within Denton’s city limits. The City of Denton is not responsible for lost decals. stst Permits are issued annually, beginning December 1, and are effective from January 1 or the st date of issuance, whichever is later, through December 31 of the same calendar year. The permit application process should be initiated and fees should be paid as early as possible during the last quarter of each calendar year for the upcoming calendar year so that adequate time is st available for review and processing of the application. Submittal of applications by December 1 st will eliminate the possibility of permits being issued after January 1 . City staff, after reviewing the permit application and agreement, and after conducting any necessary research, may issue the permit, issue the permit with conditions, or deny the issuance of the permit. The City will establish the number of permits to be issued in each materials category. Exclusions Individuals living within the City limits of Denton, and hauling personal materials, wastes, or recyclables from their primary living residence are exempt from this requirement. Any person, who transports applicable materials three or fewer times per year, shall register with the City on the forms provided for that purpose. No annual service fees are required, but registration and permitting through the City is required. Fees Collection and Transportation Services Permit Fees Non City of Denton Service Providers Special Waste / Medical Waste / Hazardous Waste Application Fee Paid Annually $1,000.00 Service Fees: Tier IV engines manufactured after January 2011. Per Vehicle $1,000.00 Tier III engines manufactured between Jan. 2007 and Dec. 2010. Per Vehicle $1,500.00 Engines manufactured between Jan. 2003 - Dec. 2006. Per Vehicle $2,250.00 Engines manufactured prior to Jan. 2003. Per Vehicle $3,000.00 34 Container Fee, per Cubic Yard, per container Paid Annually $4.00 (If applicable) Gross Revenue within City of Denton Paid Quarterly 5% Restaurant Oil & Grease / Grease & Grit Trap / Commercial and Industrial Recycling Application Fee Paid Annually $500.00 Service Fees: Tier IV engines manufactured after January 2011. Per Vehicle $1,000.00 Tier III engines manufactured between Jan. 2007 and Dec. 2010. Per Vehicle $1,500.00 Engines manufactured between Jan. 2003 - Dec. 2006. Per Vehicle $2,250.00 Engines manufactured prior to Jan. 2003. Per Vehicle $3,000.00 Container Fee, per Cubic Yard, per container (if Paid Annually $4.00 applicable) Paid Quarterly 5% Gross Revenue within City of Denton Right-of-Way Fee Per Cubic Yard, per Container, per Month (if applicable) Paid Monthly $4.00 35 Small Operators Collection and Transportation Services Permit Fees Non City of Denton Service Providers SMALL OPERATORS - Special Waste, Medical Waste, Hazardous Waste, Restaurant Oil and Grease, Grease & Grit Trap Waste, Commercial and Industrial Recyclables, and Construction and Demolition Materials Application Fee Paid Annually $200.00 Service Fee Per Vehicle $400.00 Container Fee Per Cubic Yard, per container (if applicable) Paid Annually $4.00 Revenue Fee Gross Revenue within City of Denton Paid Quarterly 5% Right-of-Way Fee Per Cubic Yard, per Container, per Month (if applicable) Paid Monthly $4.00 Service providers desiring to provide services in more than one service category are required to complete permit documentation and pay the applicable fees for each service category they desire to provide within Denton’s City limits. All fees paid are nonrefundable. Application, service, and container fees are payable at the time of application submittal. Right- of-way usage fees are due and payable prior to setting a container in the right-of-way. Service and container fees are non-transferable between vehicles and containers, and are unit specific. Service fees based on a percentage of gross revenues from the collection, disposal, treatment, processing and transportation services provided within Dentonare due quarterly and require payment to the City within twenty (20) calendar days following the end of each calendar quarter. Container fees apply to each container placed by the permitee within the City limits of Denton, and non-City owned containers serviced by the City, but do not apply to City of Denton owned containers. Containers are defined as any refuse containment equipment, which can be lifted and emptied using a special vehicle designed for that use, i.e. which are not emptied manually. Container fees are established for each cubic yard of container capacity, per container, as listed within the Fees section. All containers require a container permit fee regardless if the container is or is not placed on the ground. Permitting and fees are applicable and due for all businesses hauling baled recyclables generated from businesses located within Denton’s City limits. The quarterly calculation of a percentage of revenue, and of materials sales, and of services provided requires that the calculation be provided, with complete financial detail, to the City along with the service fee payment to the City. This written financial disclosure shall provide a 36 detailed explanation of how all calculated service fees were determined, and shall be provided to the City either quarterly or monthly, at each required service fee payment period. If the full payment is not received by the due date (20th day of the month following the end of the reporting quarter) a penalty of 10% of the amount due will be charged, with an additional 1% charge due, for late payments beyond thirty (30) days, for each thirty (30) day period the balance due is not received by the City of Denton. Permittees currently permitted, and choosing not to reapply for and make payment for a new st collection and transportation services permit by December 31 , for the upcoming calendar year st beginning January 1 will be assessed an additional $500 fee upon permitting or may not be st granted a permit by the City of Denton. If all permit fees are not paid prior to December 31, all unpermitted containers will be removed from their service provider locations beginning January st 1 by the City of Denton. Collection of these containers by the service provider requires that the time and materials charges incurred by City staff to relocate these containers must be reimbursed to the City by the service provider, prior to the City’s release of these containers. Quarter Payment Received by the City t h January - March April 20 t h April - June July 20 t h July - September October 20 t h October - December January 20 Miscellaneous Violations / ‘No Operations’ Declaration A business which has not been permitted by the City to operate within the City limits of Denton; or has been suspended by the City from operating within the City limits of Denton, Texas shall be charged a sum of up to $500.00 per day by the City, for each day of violation of this ordinance, if the provider violates the ‘No Operations’ requirement prior to receipt of a City of Denton permit, or during any suspension of a permit period. Each day of illegal operations during a ‘No Operations’ period is considered a separate violation and the service provider is subject to being charged a sum of up to $500.00 for each day of violation. Following the receipt of a ‘No Operations’ declaration and prior to a service provider being reinstated to legally operate within the City limits of Denton, the service provider must meet with the City staff to update their application and agreement and make payment of all monies owed to the City. If a service provider operates a vehicle within Denton’s City limits which has not been permitted, or uses a container which has not been permitted, or operates any piece of equipment with an expired permit, or performs some other permit violation, or does not make payment of the appropriate fees in a timely manner, the city will issue a ‘No Operations’ declaration to the service provider, and assess all applicable permit violation fees. Once a service provider has been issued a ’No Operations’ declaration from the City, all services to be provided within Denton’s City limits are required to cease. Non-permitted containers may be collected by the City and stored until collection, storage, and permitting fees associated with each container are paid to the City of Denton. Following a meeting with the City staff, and the payment of all monies owed the City, the status of the permit will be determined. 37 Revocation of Services & Non-Renewal of Permits If the City finds any requirement of the permit to have not been met, or violated, or observes service providers operating within Denton’s City limits without current permits, the City may institute a ‘No Operations’ declaration, and additionally revoke or not renew the service providers permit, thereby requiring the service provider to cease all operations within the City limits of Denton. Reclassification of Recyclables Recyclables containing ten (10%) percent or more contamination, as determined by the City, will be considered refuse, and its collection may not be provided by service providers permitted under this ordinance. This material shall be reclassified as refuse and will be collected by the City of Denton. The General Manager, Solid Waste Services or his designee, will make the final determination on whether stored recyclables contain excessive contamination, which at the City’s determination, may cause the reclassification of these materials to municipal solid waste (MSW), thereby negating the ability of a service provider to transport this material within Denton’s City limits under their operating permit pursuant to this ordinance. The City of Denton has the authority to inspect the contents of any container located within Denton’s City limits in order to determine the materials content of the container, so as to ensure compliance with the contamination requirements, which shall not exceed 10%. Terms and Renewal All collection and transportation permits shall be valid for one calendar year from the date of issuance, and for not more than one calendar year from the date of issuance. 38 SCHEDULE SD STORM DRAINAGE FEES (Effective 10/01/12) APPLICATION Applicable to all impervious real property and appurtenances owned and located within the incorporated limits of the City of Denton, Texas, except as exempted below. The Storm Drainage fee charged to each tract of real property is based upon the amount of impervious surface cover that results in water runoff into the City of Denton drainage system. (SDR) MONTHLY FEE – RESIDENTIAL The residential fee is applicable to all single-family through four-plex real properties located within the incorporated limits of the City of Denton, Texas, for which impervious surfaces can be individually identified. The residential fee is established by utilizing a block system. The fee charged in each fee block is set forth and established as follows: Fee Block Per Bill 0 – 600 Square Feet $ 0.50 601 – 1,000 Square Feet $ 1.00 1,001 – 2,000 Square Feet $ 3.35 2,001 – 3,000 Square Feet $ 5.45 3,001 – 4,000 Square Feet $ 7.60 4,001 – 5,000 Square Feet $ 9.75 5,001 – 6,000 Square Feet $12.00 Over 6,000 Square Feet $15.50 (SDN) MONTHLY FEE – NON-RESIDENTIAL The non-residential fee is applicable to all other real property owned and located within the incorporated limits of the City of Denton, Texas, except as exempted below. The non-residential fee is based upon the total square footage of impervious surface cover measured for each customer/owner. Formula: Measured Square Footage of Impervious Surface Cover x $0.00186 per bill EXEMPTIONS The following real property owned and located within the incorporated limits of the City of Denton, Texas shall be exempt from imposition of the residential fee or the non-residential fee: 1. Real property with proper construction and maintenance of a wholly sufficient and privately-owned drainage system, not draining into the City of Denton drainage system, upon the real property’s inspection and certification by the City; or 39 2. Real property held and maintained in its natural state, until such time that the real property is developed, and all of the public infrastructure constructed thereon has been accepted by the City; or 3. Real property, consisting of an unimproved subdivided lot, until such time as a structure has been built on the lot and a certificate of occupancy has been issued by the City. No other exemptions to the residential fees or the non-residential fees are applicable. 40 SPECIAL FACILITIES RIDER (Effective 10/01/12) (1) All service shall be offered from available facilities. If a customer service request for a special or unusual service not otherwise provided for by the Wastewater rate ordinance, and/or requires facilities and devices which are not normally and readily available at the location at which the Customer requests the service, then the City shall provide the service subject to the requirements of paragraph (2) of this rider. (2) The total cost of all facilities required to meet the Customer's special requirements which are incurred by the City in connection with rendering the service, shall be subject to a special contract entered into between the Wastewater Utility Department and the Customer. This contract shall be signed by both parties prior to the City providing the requested service to the Customer. SPECIAL CONDITIONS RIDER (Effective 10/01/12) If a special condition or circumstance exists not otherwise provided for by the wastewater rate ordinance, then the City shall have the authority to provide for the special condition subject to the requirements of paragraph 2 of this Rider. Any billing adjustments in connection with any special condition or circumstance shall be at the discretion of the Director of Water Utilities or his designee. 41 SECTION 2. All ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 3. 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 4. The Schedule of Rates herein adopted shall be effective, charged and applied to all wastewater service rendered on and after October 1, 2012, and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary of the City of Denton, Texas. PASSED AND APPROVED this the ______ day of ________________________, 2012. _________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: _____________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: _____________________________ 42 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: UtilitiesAdministration ACM: Howard Martin, 349-8232 SUBJECT Consider adoption of an ordinance amending the schedule of water rates contained in Ordinance No. 2011-163 for water service rates and water rates; amending residential water service rate (Schedule WR); amending the commercial/industrial water service rate (Schedule WC); amending the metered water from fire hydrant rate (Schedule WFH); amending the wholesale treated water service rate to the Upper Trinity Regional Water District (Schedule WW); amending the wholesale raw water service rate to Upper Trinity Regional Water District (Schedule WRW); amending the wholesale raw water pass-through rate to Upper Trinity Regional Water District from Lake Chapman into Lake Lewisville (Schedule WCL): amending the water tap and meter fees; providing for a repealer; providing for a severability clause; and providing for an effective date. (The Public Utilities Board recommends approval 6-0.) BACKGROUND The proposed approximate 8% rate increase is designed to recover the cost of service for the water utility and provide a positive or break-even net income. During the budget presentations, the PUB reviewed the Water Utility budget and the proposed rate change that could be implemented to support the proposed FY 2012-2013 budget and FY 2013-2017 CIP. As part of the Water budget discussions, the Water department staff recommended and received PUB approval for an approximate 8% rate revenue increase. The increase includes funding to support the aging water infrastructure and reserve requirement financial plan. The rate increase was structured to takes steps to align the rates with the recommendations of the Cost of Service model and to encourage conservation. The average residential customer using 9,200 gallons would incur the following monthly charge. Current Proposed Increase $42.35 $45.60 $3.25 PRIOR ACTION Proposed FY 2012-2013 Utilities budgets and CIP’s were presented to and approved by the Public Utilities Board (“PUB”) during May and June, 2012. This rate ordinance was approved by the PUB on July 23, 2012 by a vote of 6-0. The budgets, including draft rate ordinances, were AIS September 11, 2012 Page 2 of 2 presented to the City Council for review on July 27, 2012. This ordinance is scheduled for adoption on September 11, 2012. SUMMARY Based on normal volumes, the proposed increase will generate the rate revenue needed to meet revenue requirements. The proposed rate increase was designed to support cost of service and to encourage conservation. FISCAL SUMMARY The proposed rate increase will provide the revenues necessary to cover the cost of service to customers. RECOMMENDATION Staff recommends approval of the ordinance, with an effective date of October 1, 2012. EXHIBITS 1.Proposed FY 2012-2013 Water Rate Ordinance Respectfully submitted: Howard Martin Assistant City Manager/Utilities EXHIBIT1 ORDINANCE NO.2012-__________ AN ORDINANCE AMENDING THE SCHEDULE OF WATER RATES CONTAINED IN ORDINANCE NO. 2011-163 FOR WATER SERVICE RATES AND WATER RATES; AMENDING THE RESIDENTIAL WATER SERVICE RATE (SCHEDULE WR); AMENDING THE COMMERCIAL/INDUSTRIAL WATER SERVICE RATE (SCHEDULE WC); AMENDING THE METERED WATER FROM FIRE HYDRANT RATE (SCHEDULE WFH); AMENDING THE WHOLESALE TREATED WATER SERVICE RATE TO THE UPPER TRINITY REGIONAL WATER DISTRICT (SCHEDULE WW); AMENDING THE WHOLESALE RAW WATER SERVICE RATE TO UPPER TRINITY REGIONAL WATER DISTRICT (SCHEDULE WRW); AMENDING THE WHOLESALE RAW WATER PASS- THROUGH RATE TO UPPER TRINITY REGIONAL WATER DISTRICT FROM LAKE CHAPMAN INTO LAKE LEWISVILLE (SCHEDULE WCL); AMENDING THE WATER TAP AND METER FEES; PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the Rate Schedules for water service as provided for in Chapter 26 of the Code of Ordinances, are amended to read as follows: WATER RATE SCHEDULES PAGE WR Residential Water Service 2 WC Commercial/Industrial Water Service Rate 6 WFH Metered Water From Fire Hydrant 9 WW Wholesale Treated Water Service to Upper Trinity Regional Water District 10 WRW Wholesale Raw Water Service to Upper Trinity Regional Water District 12 WCL Wholesale Raw Water Pass-Through to Upper Trinity Regional Water District 13 from Lake Chapman into Lake Lewisville Water Tap and Meter Fees 14 Fire Hydrant Installation 16 Water Laboratory Testing Fees 17 Special Facilities Rider 18 Special Conditions Rider 18 SCHEDULE WR RESIDENTIAL WATER SERVICE (Effective 10/01/12) APPLICATION Applicable for single-family residential service, and individually-metered apartments, mobile homes, or multi-family facilities with less than four units, with wastewater service within the corporate limits (WR) of the City of Denton, Texas. Applicable for single-family residential service, and individually-metered apartments, mobile homes, or multi-family facilities with less than four units outside the corporate limits of the City of Denton, (WRO) Texas with or without wastewater service. Applicable where the metered water is used for domestic purposes and is not returned to the (WRN) wastewater system for collection and treatment. Applicable where the metered water is used for landscape irrigation purposes and is not returned to (WRI) the wastewater system for collection and treatment. Applicable where metered water is outside the corporate limits of the City of Denton, Texas and is used for landscape irrigation purposes and is not returned to the wastewater system for collection and (WRIO) treatment. Not applicable to resale, temporary, standby, or supplementary service except in conjunction with applicable rider. (WR) MONTHLY RATE – RESIDENTIAL WATER SERVICE; (WRN) AND MONTHLY RATE – METERED WATER NOT RETURNED TO WASTEWATER SYSTEM FOR COLLECTION AND TREATMENT (1) Facility Charge Per Bill 3/4 inch Meter $ 12.95 1 inch Meter $ 16.90 1-1/2 inch Meter $ 21.85 2 inch Meter $ 27.70 (2) Volume Charge Rate Per 1,000 Gallons RATE BLOCK PER 30 DAYS WINTER SUMMER Billing months of Billing months of NOV. through APRIL MAY through OCT. 0-15,000 gals $ 3.55 $ 3.55 15,001-30,000 gals $ 3.55 $ 5.15 30,001-50,000 gals $ 3.55 $ 6.65 Over 50,000 gals $ 3.55 $ 8.40 2 (WRO) MONTHLY RATES – WATER SERVICE OUTSIDE CORPORATE LIMITS MONTHLY RATE (1) Facility Charge Per Bill 3/4 inch Meter $ 14.90 1 inch Meter $ 19.45 1-1/2 inch Meter $ 25.15 2 inch Meter $ 31.85 (2) Volume Charge Rate Per 1,000 Gallons RATE BLOCK PER 30 DAYS WINTER SUMMER Billing months Billing months NOV through APRIL MAY through OCT 0-15,000 gals $4.10 $4.10 15,001-30,000 gals $4.10 $5.95 30,001-50,000 gals $4.10 $7.65 Over 50,000 gals $4.10 $9.65 (WRI) MONTHLY RATES – METERED WATER SERVICE FOR IRRIGATION MONTHLY RATE (1) Facility Charge Per Bill 3/4 inch Meter $12.95 1 inch Meter $16.90 1-1/2 inch Meter $21.85 2 inch Meter $27.70 (2) Volume Charge Rate Per 1,000 Gallons RATE BLOCK PER 30 DAYS WINTER SUMMER Billing months Billing months NOV through APRIL MAY through OCT 0-15,000 gals $3.55 $5.15 15,001-30,000 gals $3.55 $6.65 30,000 – 50,000 gals $3.55 $8.40 Over 50,000 gals $3.55 $9.90 3 (WRIO) MONTHLY RATES – METERED WATER SERVICE FOR IRRIGATION MONTHLY RATE (1) Facility Charge Per Bill 3/4 inch Meter $14.90 1 inch Meter $19.45 1-1/2 inch Meter $25.15 2 inch Meter $31.85 (2) Volume Charge Rate Per 1,000 Gallons RATE BLOCK PER 30 DAYS WINTER SUMMER Billing months Billing months NOV through APRIL MAY through OCT 0-15,000 gals $4.10 $5.95 15,001-30,000 gals $4.10 $7.65 30,000 – 50,000 gals $4.10 $9.65 Over 50,000 gals $4.10 $11.40 MINIMUM BILLING Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOLUME CHARGE Billing for the water consumption shall be based on the gallon consumption during the billing period. Formula: Gallons in rate block rate per 1,000 gal. in rate block 1,000 gallons 4 RETAIL WATER RATES UNDER DROUGHT CONTINGENCY PLAN CONDITIONS – ORDINANCE NO. 2005-121. Under Stage 3 drought conditions, residential customers shall be charged a 20% surcharge penalty for water usage greater than 30,000 gallons per account per thirty (30) days. Under Stage 4 drought conditions, residential customers shall be charged a 20% surcharge penalty for water usage greater than 15,000 gallons per account per thirty (30) days. 5 SCHEDULE WC COMMERCIAL/INDUSTRIAL WATER SERVICE RATE (Effective 10/01/12) APPLICATION Applicable to all commercial and industrial users, or other water users not otherwise classified under (WC) this ordinance, for all water provided at one point of delivery and measured through one meter. Applicable for all commercial and industrial users or other users not otherwise classified under this ordinance outside of the corporate limits of the City of Denton for all water service provided at one (WCO) point of delivery and measured through one meter, with or without wastewater service. Applicable where the metered water is used for commercial purposes and is not returned to the (WCN) wastewater system for collection and treatment. Applicable where metered water is used for landscape irrigation purposes and is not returned to the (WCI) wastewater system for collection and treatment. Applicable where metered water is outside the corporate limits of the City of Denton, Texas and is used for landscape irrigation purposes and is not returned to the wastewater system for collection and (WCIO) treatment. Not applicable to resale service in any event, nor to temporary, standby, or supplementary service except in conjunction with applicable rider. (WC)(WCN) MONTHLY RATE and (1) Facility Charge Per Bill 3/4 inch Meter $21.95 l inch Meter $26.25 l - l/2 inch Meter $31.10 2 inch Meter $41.35 3 inch Meter $89.05 4 inch Meter $164.45 6 inch Meter $220.50 8 inch Meter $290.00 10 inch Meter $387.40 (2) Volume Charge $3.95 per 1,000 gallons 6 (WCO) MONTHLY RATE – OUTSIDE CORPORATE LIMITS (1) Facility Charge Per Bill 3/4 inch Meter $25.25 1 inch Meter $30.20 1-1/2 inch Meter $35.75 2 inch Meter $47.55 3 inch Meter $102.40 4 inch Meter $189.10 6 inch Meter $253.60 8 inch Meter $333.50 10 inch Meter $445.50 (2) Volume Charge $4.55 per 1,000 gallons (WCI) - MONTHLY RATE IRRIGATION (1) Facility Charge Per Bill 3/4 inch Meter $21.95 1 inch Meter $26.25 l -l/2 inch Meter $31.10 2 inch Meter $41.35 3 inch Meter $89.05 4 inch Meter $164.45 6 inch Meter $220.50 8 inch Meter $290.00 10 inch Meter $387.40 (2) Volume Charge Rate Per 1,000 Gallons WINTER SUMMER Billing months of Billing months of NOV. through APRIL MAY through OCT. $3.95 $4.90 (WCIO) - MONTHLY RATE IRRIGATION (1) Facility Charge Per Bill 3/4 inch Meter $25.25 1 inch Meter $30.20 1-1/2 inch Meter $35.75 2 inch Meter $47.55 3 inch Meter $102.40 4 inch Meter $189.10 6 inch Meter $253.60 8 inch Meter $333.50 10 inch Meter $445.50 7 (2) Volume Charge Rate Per 1,000 Gallons WINTER SUMMER Billing months of Billing months of NOV. through APRIL MAY through OCT. $4.55 $5.65 MINIMUM BILLING Facility Charge PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. SPECIAL FACILITIES All services which require special facilities in order to meet Customer's service requirements shall be provided, subject to the Special Facilities Rider. VOLUME CHARGE Billing for the water consumption shall be based on the consumption during the billing period. Formula: Gallons consumption Rate per 1,000 gallons 1,000 COMMERCIAL/INDUSTRIAL WATER RATES UNDER DROUGHT CONTINGENCY PLAN CONDITIONS – ORDINANCE NO. 2005-121. Under Stage 3 drought conditions, Commercial/Industrial customers shall be charged a 20% surcharge penalty for water usage above 80% of prior billing volumes per account per thirty (30) days. Under Stage 4 drought conditions, Commercial/Industrial customers shall be charged a 20% surcharge penalty for water usage above 70% of prior billing volumes per account per thirty (30) days. 8 SCHEDULE WFH METERED WATER FROM FIRE HYDRANT (Effective 10/01/12) APPLICATION Applicable for all water taken through a fire hydrant or other direct distribution line source at one location for private or commercial use not associated with fire fighting. Customers must complete, sign, and agree to all terms and conditions stated in the “Fire Hydrant Meter Use Agreement.” DEPOSIT $1,100 per meter User shall place a deposit each time a City's hydrant meter(s) is requested. The deposit will be returned when meter is returned and final bill is paid. NET RATE Volume Charge $ 4.75 per 1,000 gallons Monthly volume shall be computed by subtracting the beginning meter reading from the ending meter reading divided by 1,000, and multiplied times the volume charge, upon the monthly return of the meter to the Water Department for reading. Per the “Fire Hydrant Meter Use Agreement”, failure rd by the Customer to return the meter to water utilities by the 3 day of each month for reading, results in acceptance by the Customer to pay a monthly billing equal to 100,000 gallons of water usage for the month. Facility Charge $ 92.35 per bill PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. COMMERCIAL/INDUSTRIAL WATER RATES UNDER DROUGHT CONTINGENCY PLAN CONDITIONS – ORDINANCE NO. 2005-121. Under Stage 3 drought conditions, Commercial/Industrial customers may be charged a 20% surcharge penalty for water usage above 80% of prior billing volumes per account per thirty (30) days. Under Stage 4 drought conditions, Commercial/Industrial customers may be charged a 20% surcharge penalty for water usage above 70% of prior billing volumes per account per thirty (30) days. 9 SCHEDULE WW WHOLESALE TREATED WATER SERVICE TO UPPER TRINITY REGIONAL WATER DISTRICT (Effective 10/01/12) APPLICATION Applicable to all wholesale treated water sales from the City of Denton, Texas to the Upper Trinity Regional Water District (UTRWD) Not applicable for temporary, standby, or supplementary service. MONTHLY CHARGES The monthly charge for service shall be expressed as a facility charge, a volume price per 1,000 gallons and a demand price per million gallons per day (MGD) of demand. (WW2/WW3) (1) Facility Charge $214.00 per bill (2) Water Volume Rate $0.42 per 1,000 gallons (WD2/WD3) (3) Subscribed Demand Rate $494,61 per MGD (Annual) 12 (Paid Monthly) *Full Payment of Annual Water Demand Adjustments: As determined in the last month of each fiscal year (September), if any outstanding or unpaid annual water demand adjustment charges exist, they shall be included in their entirety on the monthly billing for the following month of October. Water demand adjustment charges shall be billed and payable in full, in accordance with the bill payment delinquency provisions provided for below. MINIMUM BILLING The minimum monthly billing shall be the sum of the monthly facility charge plus the monthly subscribed demand rate charge. WATER DEMAND The demand will be billed on a monthly basis at the Water Demand Rate for the subscribed MGD water demand level. Annual water demand charges will be retroactively adjusted up beginning in June for each water year, if anytime during the fiscal year the actual peak demand required, as established by the highest rate of flow controller setting for any one day during the fiscal year, is greater than the peak demand subscribed during the fiscal year. 10 BILL PAYMENT DELINQUENCY Bills shall be due and payable when rendered. Bills are considered delinquent if not paid within twenty (20) calendar days of the date a bill for service is rendered. There shall be a ten (10%) percent per annum interest charge on the amount due, from the date when due until paid, if not paid within twenty (20) calendar days of the date a bill for service is rendered. 11 SCHEDULE WRW WHOLESALE RAW WATER SERVICE TO UPPER TRINITY REGIONAL WATER DISTRICT (Effective 10/01/12) APPLICATION Applicable to all raw water sales from the City of Denton, Texas to the Upper Trinity Regional Water District (UTRWD), per the Interim Sale of Wholesale Raw Water Contract MONTHLY CHARGES The monthly charge for service shall be expressed as a volume price per 1,000 gallons. Volume Charge: $0.3899 per 1,000 gallons PAYMENT th Denton shall render bills by the tenth (10) day of each month. Bills shall be due and payable within twenty (20) calendar days of the date a bill is rendered. BILL PAYMENT DELINQUENCY Bills shall be due and payable when rendered. Bills are considered delinquent if not paid within 20 calendar days of the date a bill for service is rendered. There shall be a ten (10%) percent per annum interest charge on the amount due, from the date when due until paid, if not paid within twenty (20) calendar days of the date a bill for service is rendered. 12 SCHEDULE WCL WHOLESALE RAW WATER PASS-THROUGH TO UPPER TRINITY REGIONAL WATER DISTRICT FROM LAKE CHAPMAN INTO LAKE LEWISVILLE (Effective 10/01/12) APPLICATION Applicable to all pass-through raw water sent from Lake Chapman into Lake Lewisville by the Upper Trinity Regional Water District (UTRWD) per the Cooper Reservoir Project Contract, as well as, all Lake Chapman water reclaimed for reuse if discharged into and subsequently withdrawn from Lewisville Lake by UTRWD or Lewisville pursuant to a reuse permit or other appropriate regulatory authorization. MONTHLY CHARGES The monthly charge for service shall be expressed as a volume price per 1,000 gallons. Volume Charge: $0.0249 per 1,000 gallons PAYMENT Denton shall render bills monthly. Bills shall be due and payable within twenty (20) calendar days of the date a bill for service is rendered. BILL PAYMENT DELINQUENCY Bills shall be due and payable when rendered. Bills are considered delinquent if not paid within twenty (20) calendar days of the date a bill for service is rendered. There shall be a ten (10%) percent per annum interest charge on the amount due, from the date when due until paid, if not paid within twenty (20) calendar days of the date a bill for service is rendered. 13 WATER TAP AND METER FEES (Effective 10/01/12) APPLICATION This schedule applies to the installation, removal, or relocation of water taps and meters by the City of Denton Utility Department at the request of a person, firm, association or corporation. TAP AND METER FEES Any person, association of persons, or corporation that requests that a water main tap, water meter or water meter loop, be removed, installed, or relocated by the Utility Department shall pay in advance to the Utility Department the following applicable fees: WATER TAPS WITH METER Tap Meter Paved Street Unpaved Street 1 inch 5/8 inch x 3/4 inch $2,105.00 $1,105.00 1 inch 3/4 inch x 3/4 inch $2,145.00 $1,145.00 1 inch 1 inch $2,175.00 $1,175.00 2 inch 1-1/2 inch $2,870.00 $1,870.00 2 inch 2 inch $2,880.00 $1,880.00 WATER METER FEES Size of Meter 5/8 inch x 3/4 inch $305.00 3/4 inch x 3/4 inch $345.00 1 inch $375.00 1-1/2 inch $670.00 2 inch $680.00 WATER METER RELOCATIONS Size of Meter Relocation of 10 Feet or Less 3/4 inch $285.00 1 inch $285.00 1-1/2 inch $340.00 2 inch $390.00 14 WATER LINE TAPS Size of Tap Paved Street Unpaved Street 1 inch $1,800.00 $800.00 2 inch $2,200.00 $1,200.00 4 inch $3,500.00 $2,100.00 6 inch $3,600.00 $2,200.00 8 inch $4,600.00 $3,000.00 12 inch $5,500.00 $4,000.00 FEES FOR INSTALLATIONS NOT LISTED For the installation of a tap, loop or meter for which a fee is not specified, the requestor shall pay in advance a 50% deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation, the applicant shall be billed at actual cost, as determined by the Utility Department, plus a 20% administrative charge. The installation charges may be waived by the Utility Department for a request to install taps exclusively dedicated to fire sprinkler systems. 15 FIRE HYDRANT INSTALLATION (Effective 10/01/12) APPLICATION This schedule applies to the installation, removal, or relocation of fire hydrants by the City of Denton Utility Department at the request of a person, firm, association or corporation. FIRE HYDRANT INSTALLATION FEES Any person, association of persons, or corporation that requests that a fire hydrant be removed, installed, or relocated by the Utility Department shall pay in advance to the Utility Department the following applicable fees: Fire Hydrant Installation Paved Street Unpaved Street Installation Fee $5,350.00 $3,950.00 FEES FOR INSTALLATIONS NOT LISTED For the installation of a fire hydrant for which a fee is not specified, the requestor shall pay in advance a 50% deposit based upon the estimated cost of such installation, or similar work, plus an administrative charge of 20%. Upon completion of the installation, the applicant shall be billed at actual cost, as determined by the Utility Department, plus a 20% administrative fee. 16 WATER LABORATORY TESTING FEES (Effective 10/01/12) APPLICATION Applicable to all customers and entities requesting testing and analysis services from the City of Denton Water/Wastewater Laboratory RATE Fee Description Fee Per Test Colilert (P/A) $20.00 Colilert Quantitray (MPN) $25.00 Heterotrophic Plate Counts (HPC) $25.00 Fecal Coliform (MF) $30.00 Records Search $25.00/hour The testing and analysis fees are established to recover the cost of testing water and wastewater samples. MINIMUM BILLING $20.00 - Testing $25.00 - Records Search PAYMENT Bills are due when rendered, and become past due if not paid within fifteen (15) calendar days from date of issuance. 17 SPECIAL FACILITIES RIDER (Effective 10/01/12) All service shall be offered from available facilities. If a Customer service request for a special or unusual service not otherwise provided for by the water rate ordinance, and/or requires facilities or devices which are not normally and readily available at the location at which the Customer requests the service, then the City shall provide the service subject to the requirements of paragraph 2 of this Rider. The total cost of all facilities required to meet the Customer's special requirements, which are incurred by the City in connection with rendering the service shall be subject to a special contract entered into between the Water Utility Department and the Customer. This contract shall be signed by both parties prior to the City providing the requested service to the Customer. SPECIAL CONDITIONS RIDER (Effective 10/01/12) If a special condition or circumstance exists not otherwise provided for by the water rate ordinance, then the City shall have the authority to provide for the special condition subject to the requirements of paragraph 2 of this Rider. Any billing adjustments in connection with any special condition or circumstance shall be at the discretion of the Director of Water Utilities or his designee. 18 SECTION 2. All ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent or in conflict with the terms of provisions contained in the amended schedule of rates hereby enacted by this ordinance, are hereby repealed to the extent of any such conflict. SECTION 3. 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 4. The Schedule of Rates herein adopted shall be effective, charged and applied to all water consumption occurring on and after October 1, 2012; and a copy of said rates, fees, and charges shall be maintained on file in the Office of the City Secretary of Denton, Texas. PASSED AND APPROVED this the _____ day of __________________ 2012. ________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: __________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: ___________________________________ 19 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: Utility Administration UTILITIES ACM: Howard Martin, 349-8232 ______________________________________________________________________________ SUBJECT Consider approval of an ordinanceof the City of Denton, Texas authorizing the approval of an agreement for planning services related to infill, redevelopment and the development review process by and between the City of Denton, Texas and Clarion Associates, LLC, Denver, Colorado; providing for the expenditure of funds therefor; and providing an effective date (File 5053-not to exceed $150,000 for agreement for planning services). BACKGROUND On August 6, 2012, Denton City Council conducted a joint meeting with the Planning and Zoning C Development Code (DDC) and challenges regarding in-fill and redevelopment projects. Staff provided examples and highlighted areas of the DDC that proved to be impediments to actual in-fill and redevelopment projects that have come forward through the Development Review Process. Members of the Denton City Council and the Planning and Zoning Commission provided similar examples and concerns based on their administrative interaction with the DDC and the development review process. In an attempt to address the issues and concerns with the DDC and development review process, staff is proposing to contract with a professional planning firm, Clarion Associates. Clarion Associates is a national planning, land-use and real estate consulting firm with a team of professionals whose experience ranges from landscape architecture to law, from real estate appraisal to urban design, from environmental assessment to community planning. Matthew Goebel, AICP, principal and Elizabeth Garvin, AICP out of the Denver, Colorado office will be the project managers for Denton. Both Mr. Goebel and Ms. Garvin are familiar with the DFW area and have experience working with a number of cities in the DFW area. The project overview is included Exhibit A. The multiple phased project will begin with an interview process designed to allow Clarion to develop an understanding of the perceptions of the current regulations in the community. This step is followed by the following tasks: Evaluation of the Development Review Process, Review of Draft Regulations to Implement the Downtown Implementation Plan (DTIP), and Preparation of Additional Infill and Redevelopment Standards, Cleanup, Reorganization, and Reformatting of the Development Code, and Development of Code Training Agenda Information Sheet September 11, 2012 Page 2 For each task identified above, we have programmed into the scope of work a number of stakeholder meetings as well as periodic updates on the project status. The cost estimate for the project and the associated task is approximately $150,000. The breakdown of these costs may be found in Exhibit A. All estimates provided in this exhibit take into account the detailed level of staff understanding of the issues driving the revisions, as well as their availability to provide feedback and guidance regarding specific edits in a timely manner. It is contemplated that the work completed for the Denton Downtown Implementation Plan and Downtown Zoning District provides a stylistic and organizational framework that will be helpful in guiding the project layout. Additionally, there would be efficiencies of scale in preparing multiple code amendments together, versus independently. If additional meetings are needed, the proposed scope of service recognizes an hourly charge for Clarion personnel plus expenses. RECOMMENDATION Staff recommends approval of a Planning Services Agreement between the City of Denton and Clarion Associates in the amount of $150,000. PRINCIPAL PLACE OF BUSINESS Clarion Associates th 621 17 Street, Suite 2250 Denver, Colorado 80293 FISCAL INFORMATION The detailed outline of costs is included in Exhibit B. The proposed cost of $150,000 is for the basic services outlined in the scope of service. Additional meetings required by the City of Denton will be billed based on the labor rate identified under Additional Meetings plus direct expenses, EXHIBITS 1.Ordinance - Planning Services Agreement Ordinance Respectfully submitted: Howard Martin Assistant City Manager/Utilities ORDINANCE NO. 2012-________ AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE APPROVAL OF AN AGREEMENT FOR PLANNING SERVICES RELATED TO INFILL, REDEVELOPMENT AND THE DEVELOPMENT REVIEW PROCESS BY AND BETWEEN THE CITY OF DENTON, TEXAS AND CLARION ASSOCIATES, LLC, DENVER, COLORADO; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 5053 - NOT-TO-EXCEED $150,000 FOR AGREEMENT FOR PLANNING SERVICES). WHEREAS, the City Council deems that it is in the public interest to engage the planning firm of Clarion Associates, LLC (Cl, Denver, Colorado, as a Consultant to provide planning services for the evaluation of development review procedures and other development code revisions for the City of Denton, Texas that are related to the Denton Development Code; and WHEREAS, this procurement of planning services is exempt from the requirements of the competitive bidding laws in accordance with Section 252.022(a)(4) of the Texas Local Government Code; and WHEREAS, City staff has reported to the City Council that there is a substantial need for the above-referenced planning services, and that limited City staff cannot adequately perform the specialized services and tasks with its own personnel; and WHEREAS, Chapter 2254 of the Texas Government Code, generally provides that a City may not select a provider of consulting services on the basis of competitive bids, but must select the provider on the basis of demonstrated competence, knowledge, and qualifications, and for a fair and reasonable price; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1: The preamble to this ordinance is incorporated herewith by reference as a part of this ordinance. SECTION 2: The City Manager is hereby authorized by the City Council to execute Agreement for Planning AgreementClarion Associates, LLC, Denver, Colorado, as a consultant for planning services related to the Denton Development Code, for a fee of not-to-exceed $150,000; in sAgreement that is attached hereto and incorporated herewith by reference. SECTION 3: The award of this Agreement by the City is on the basis of the demonstrated competence, knowledge, and qualifications of Clarion and the demonstrated ability of Clarion to perform the services needed by the City for a fair and reasonable price. 1 SECTION 4: The expenditure of funds as provided in the attached Agreement is hereby authorized. SECTION 5: This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ______ day of __________________, 2012. ________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: __________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: ________________________________ 2 EXHIBITA EXHIBITB AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: Finance ACM: Bryan Langley _____________________________________________________________________________ SUBJECT Consider approval of a resolution reviewing and adopting revisions to the Investment Policy regarding funds for the City of Denton; and providing an effective date. The Audit/Finance Committee recommends approval (2-0). BACKGROUND Since at least 1996, the City of Denton has had a formal Investment Policy to guide decision and in compliance with, the provisions of the Public Funds Investment Act (PFIA) of Texas, Government Code Chapter 2256. In accordance with the Code, and in order of importance, are safety of principal, liquidity, and yield. It is mature, making any temporary gains and losses unlikely to be realized. The general investment strategy, while taking into account the current interest rate environment, is to ladder out securities to meet cash flow needs. The City Council is requested to review and approve the Investment Policy at least annually, as are minor in nature. The revisions include: 1.Updating the portfolio benchmark yield from an equally weighted, rolling six month moving average of a six month U.S. Treasury bill (T-bill) rate to an equally weighted, rolling 12 month moving average of a one year T-bill rate so as to more accurately meas regularly meet or exceed the average T-bill return at a maturity level comparable to the M has gradually increased to its current 403 days as of June 2012. The maximum portfolio 2.Adding the utility bond reserve fund (which had been inadvertently omitted) to the aggregation of funds, revenues and receipts listed in a paragraph concerning investment pool strategy. (Page 4) Agenda Information Sheet September 11, 2012 Page 2 3.Changing the investment record retention guidelines to meet the new and more rigorous post bond issuance compliance requirements set by federal tax rules. Bond Counsel recommended that the Investment Policy refer to the Debt Service Management Policy for record retention rules involving bond proceeds, as this topic will be more fully addressed there. (Page 7 & 8) First Southwest Asset Management, Inc. (tInvestment Advisor), the staffcomposed Investment Committee, and the Audit/Finance Committee have reviewed and recommended approval of the revised Investment Policy. RECOMMENDATION Staff recommends approval of Investment Policy 403.06 with the proposed changes. PRIOR ACTION/REVIEW (Council, Boards, Commissions) On August 7, 2012, the Audit/Finance Committee unanimously recommended approval of the revised Investment Policy. EXHIBITS Red-line version of Investment Policy Resolution Respectfully submitted: Bryan Langley Assistant City Manager CITY OF DENTON Page 1 of 16 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE FINANCE POLICIES REFERENCE NUMBER: SECTION: 403.06 INITIAL EFFECTIVE DATE: INVESTMENTS SUBJECT: 02/17/87 REVISION DATE: INVESTMENT POLICY TITLE: 11/15/119-11-12 I. PURPOSE It is the objective of the City of Denton to invest public funds in a manner which will provide maximum security and the best commensurate yield while meeting the daily cash flow demands of the City and conforming to all federal, state, and local statutes, rules, and regulations governing the investment of public funds. This Policy serves to satisfy the statutory requirements of defining and adopting a formal investment policy. The Policy and investment strategies shall be reviewed annually by the Audit/Finance Committee and City Council who will formally approve any modifications. This Investment Policy, as approved, is in compliance with the provisions of the Public Funds Investment Act of Tex. Chapter 2256. II. SCOPE A. This Investment Policy applies to the investment activities of the City of Denton, Texas. The specific funds cited hereafter in Section IID, shall be excluded from this Investment Policy. All financial assets of all funds, including the General Fund and any other accounts of the City not specifically excluded in these policy guidelines are included. These funds are accounte as well as others that may be created from time-to-time, shall be administered in accordance with the provisions of this Policy. All funds will be pooled for investment purposes except for those listed under IIC. In addition to this Policy, the investment of bond proceeds and other bond funds (including debt service and reserve funds) shall be governed and controlled by their governing ordinance and by the provisions of the Tax Reform Act of 1986, including all regulations and rulings promulgated there under applicable to the issuance of tax-exempt obligations. B. Funds covered by this Policy and managed as a pooled fund group: 1. General Fund - used to account for resources traditionally associated with government, which are not required to be accounted for in another fund. 2. Special Revenue Funds used to account for the proceeds from specific revenue sources which are restricted or committed to expenditures for specific purposes other than debt service or capital projects. 3. Debt Service Fund used to account for resources to be used for the payment of principal, interest and related costs on general obligation debt. 4. Capital Project Funds used to account for resources to enable the acquisition or construction of major capital facilities which are not financed by enterprise funds, internal service funds, or trust funds. Page 2 of 16 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE REFERENCE NUMBER: TITLE: INVESTMENT POLICY 403.06 5. Enterprise Funds used to account for operations that are financed and operated in a manner similar to private business enterprises. 6. Internal Service Funds used to account for the cost of providing goods or services between City departments. 7. Trust and Agency Funds 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. 8. Bond Reserve Funds funds set at prescribed levels by certain bond ordinances to pay principal and/or interest if required to prevent default. 9. New funds available for investment by the City, such as (but not limited to) resources associated with Public Improvement Districts or Tax Increment Financing zones, unless specifically excluded herein. C. Funds covered by this Policy and managed as separately invested assets: 1. Bond Funds funds established with the proceeds from specific bond issues when it is maximum interest earning retention under the provisions of the Tax Reform Act of 1986. 2. Endowment Funds funds given to the City with the instructions that the principal is to remain intact, unless otherwise agreed to, and the income generated by the investments will be used for specified purposes. 3. Trust or Escrowed Funds funds held outside the City by a trust or escrow agent but belonging to the City. D. This Policy shall not govern funds, which are managed under separate investment programs in accordance with the Code Sec. 2256.004. Such programs currently include all funds related to employee retirement programs, other funds established by the City for deferred employee compensation, and certain private donations. The City shall and will maintain responsibility for these funds to the extent required by federal and state law, the City Charter, and donor stipulations. This Policy also does not apply to monies held in escrow to retire bonds which are subject to defeasance requirements stated under their respective bond ordinances. III. INVESTMENT OBJECTIVES & STRATEGIES It is the policy of the City that, giving due regard to the safety and risk of investments, all available funds shall be invested in conformance with state and federal regulations, applicable bond ordinance requirements, adopted Investment Policy and investment strategies. In accordance with the Public Funds Investment Act, the following prioritized objectives (in order of importance) in accordance with the Tex. Goy for each of the Page 3 of 16 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE REFERENCE NUMBER: TITLE: INVESTMENT POLICY 403.06 A. Suitability Understanding the suitability of the investment to the financial requirements of the City is important. Any investment eligible in the Investment Policy is suitable for all City funds. B. Safety Preservation and safety of principal are the primary objectives of the Investment Policy. All investments will be in high quality securities with no perceived default risk. C. Liquidity requirements that might be reasonably anticipated. Liquidity shall be achieved by matching investment maturities with forecasted cash flow requirements and by investing in securities with active secondary markets. Short-term investment pools and money market mutual funds provide daily liquidity and may be utilized as a competitive investment alternative to fixed income instruments. D. Marketability Securities with active and efficient secondary markets are necessary in the event of an unanticipated cash requirement. Historica and offer prices of a particular security type of less than a quarter of a percentage point shall define an efficient secondary market. E. Diversification Investment maturities shall be staggered to provide cash flow based on the anticipated needs of the City. Diversifying the appropriate maturity structure will reduce market cycle risk. F. Yield Attaining a competitive market yield, constraints and the cash flow characteristics of the portfolio, is the desired objective. The goal of the portfolio is to regularly meet or exceed the average rate of return on U.S. Treasury bBills weighted average maturity in days. The yield of an equally weighted, rolling twelve month moving six-month average of a one year U.S. Treasury Bbill portfolio shall be the minimum yield Six-month One year U.S. Treasury bBill information is derived from the Federal Reserve Statistical Release H.15 for constant maturities. A secondary objective will be to obtain a yield equal to or in excess of a local government investment pool or money market mutual fund. The first measure of success in this area will be the attainment of enough income to offset inflationary increases. Alstaff will the standard of care that must be exercised Code Sec. 2256.006(a-b). The Investment Officers shall avoid any transactions that might impair public confidence in the recognizes that in adequately diversifying the maturity structure within the portfolio , occasional measured unrealized losses due to market volatility and rising interest rates are inevitable, and must be considered wit return. The prudence of the investment decisions shall be measured in accordance with the tests set forth in the Tex. Sec. 2256.006(b). IV. INVESTMENT STRATEGY FOR SPECIFIC FUND GROUPS In order to better diversify, maximize interest earnings and otherwise meet stated objectives, fund groups may be combined into one or more internal investment pools. Although fund monies may be combined into a single asset portfolio, proportional fund ownership will be accounted for Page 4 of 16 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE REFERENCE NUMBER: TITLE: INVESTMENT POLICY 403.06 separately. The City maintains separate portfolios for some individual funds or groups of funds (as listed under Section II) that are managed in accordance with the terms of this Policy and by the corresponding investment strategies listed below. A. Investment Pool Strategy City funds which includes tax receipts, enterprise fund revenues, fine and fee revenues, reserve funds for outstanding utility system revenue bonds, as well as some, but not necessarily all, bond proceeds, grants, gifts and endowments. This portfolio is maintained to In order to ensure the ability of the City to meet obligations and to minimize potential liquidation losses, the dollar-weighted average stated maturity of the investment pool shall not exceed 1.5 years or 550 days. The objectives of this portfolio are to: 1. Ensure safety of principal by investing in only high quality securities for which a strong secondary market exists. 2. Ensure that anticipated cash flow needs are matched with adequate investment liquidity. 3. Limit market and credit risk through diversification. 4. Attain the best feasible yield commensurate with the objectives and restrictions set forth in this Policy by actively managing the portfolio to meet or exceed the six twelve month moving average yield on a six month one year U.S. Treasury Bbill as derived from the Federal Reserve Statistical Release H.15 for constant maturities. B. Bond Funds Strategy - Occasionally, separate non-pooled portfolios are established with the proceeds from bond sales in order to maximize earnings within the constraints of arbitrage regulations. The objectives of the portfolios are to: 1. Ensure safety of principal by investing in only high quality securities for which a strong secondary market exists. 2. Ensure that anticipated cash flow needs are matched with adequate investment liquidity. 3. Limit market and credit risk through diversification. 4. Attain the best feasible yield commensurate with the objectives and restrictions set forth in this Policy and the bond ordinance by actively managing the portfolio to meet or exceed the bond yield. C. Endowment Fund Strategy - Funds received as gifts to the City with instructions that the income generated by the investment of said funds be used for specified purposes are invested as separate non-pooled portfolios in order to maximize return. The objectives of the portfolios are to: 1. Ensure safety of principal by investing in only high quality securities for which a strong secondary market exists. Page 5 of 16 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE REFERENCE NUMBER: TITLE: INVESTMENT POLICY 403.06 2. Ensure that anticipated cash flow needs are matched with adequate investment liquidity. 3. Limit market and credit risk through diversification. 4. Attain the best feasible yield commensurate with the objectives and restrictions set forth in this Policy. D. Trust or Escrowed Funds Strategy - Funds that are held outside the City by a trust or escrow agent but belonging to the City are governed by their respective trust or escrow agreement and are subject to the provisions of this Policy. The objectives of the portfolios are to: 1. Ensure safety of principal by investing in only high quality securities for which a strong secondary market exists. 2. Ensure that anticipated cash flow needs are matched with adequate investment liquidity. 3. Limit market and credit risk through diversification. 4. Attain the best feasible yield commensurate with the objectives and restrictions set forth in this Policy and the trust/escrow agreement. V. INVESTMENT COMMITTEE Members The Investment Committee will consist of the City Manager, Assistant City Manager for Finance, Assistant City Manager for Utilities, Chief Financial Officer, City Controller, Assistant Director of Finance, Treasury Administrator advisor is a non-voting member. When needed, the City Attorney will act as a legal advisor to the Investment Committee. Scope The Investment Committee shall meet at least quarterly to determine general strategies, investment guidelines and to monitor results. Included in its deliberations will be such topics as: authorized broker/dealers (if applicable) and depository institutions, as well as the target rate of return on the investment portfolio. Procedures - The Investment Committee shall provide meeting summations to all members. Any two members of the Investment Committee may request a special meeting, and four members shall constitute a quorum. The Investment Committee shall establish its own rules of procedures. VI. RESPONSIBILITY AND STANDARD OF CARE A. Delegation & Training The management responsibility for the investment program is delegated to the Chief Financial Officer. The primary individual who shall be involved in investment activities will be his designee. The designee may delegate the day to day activities to a responsible individual(s) who has received the appropriate training required by state statute. The Chief Financial Officer and department designees will use this Policy as the primary guideline for investment program, procedures, and internal control issues. The Assistant City Manager who oversees financial operations and the Chief Page 6 of 16 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE REFERENCE NUMBER: TITLE: INVESTMENT POLICY 403.06 Financial Officer are designated as the Investment Officers, pursuant to Sec. 2256.005(f). Accordingly, the Investment Officers and persons authorized to execute investment transactions shall attend at least one training session relating to their responsibilities under the Public Funds Investment Act within 12 months after assuming duties and receive no less than 10 hours of instruction relating to investment functions every two year period that begins on the first day of the fiscal year and consists of the two consecutive fiscal years after that date. The training must include education in investment controls, security risks, strategy risks, market risks, and compliance with the Public Funds Investment Act. The investment training session shall be provided by an independent source approved by the Investment C organization, an institute of higher learning or any other sponsor other than a business organization with whom the City may engage in an investment transaction. Thus, these independent sources will be training sessions sponsored, accredited or endorsed by the Government Treasurers Organization of Texas (GTOT), Center For Public Management at the University of North Texas (UNT), Government Finance Officers Association of Texas (GFOAT), Texas Municipal League (TML), North Central Texas Council of Governments (NCTCOG), Association of Public Treasurers United States & Canada (APT US & C), and Government Finance . No persons may engage in investment transactions except as provided under the terms of this Policy. The Assistant City Manager shall require an annual compliance review by an external auditor that will consist of an audit of management controls on investments, The reviews will provide internal control by assuring compliance with policies and procedures. The Assistant City Manager, Chief Financial Officer, Mayor, City Council, City Manager and other Finance Department employees shall be personally indemnified in the event of investment loss provided the Investment Policy has been followed. B. Conflicts of Interest All participants in the investment process shall seek to act responsibly as custodians of public assets. Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. C. Disclosure Anyone involved in investing City funds shall file with the Investment Committee a statement disclosing any personal business relationship with a business organization offering to engage in investment transactions with the City or is related within the second degree by affinity or consanguinity as determined under the Tex. GovCh. 573, to an individual seeking to transact investment business with the City. A disclosure statement must also be filed with the Texas Ethics Commission and the City Council. An Investment Officer or other employee has a personal business relationship with a business organization if any one of the following three conditions are met: 1. The Investment Officer or employee owns 10% or more of the voting stock or shares of the business organization or owns $5,000 or more of the fair market value of the business organization. 2. Funds received by the Investment Officer or employee from the business organization exceed 10% of the investment officers gross income for the prior year. Page 7 of 16 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE REFERENCE NUMBER: TITLE: INVESTMENT POLICY 403.06 3. The Investment Officer or employee has acquired from the business organization during the prior year investments with a book value of $2,500 or more for their personal account. D. Prudence The standard of prudence to be used by the investment officials shall be the , and will be applied and care under prevailing circumstances, that a person of prudence, discretion and intelligence would exercise in the management of the own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the Investment officials acting in accordance with the Investment Policy and exercising due or market price change, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. In determining whether an investment official has exercised prudence with respect to an investment decision, the determination shall be made taking into consideration the investment of all funds over which the official had responsibility rather than consideration as to the prudence Investment Policy. E. Reporting Quarterly Not less than quarterly, the Chief Financial Officer shall submit to the City Manager, Mayor and City Council a written report of within one hundred twenty (120) days of the preceding reporting period. The report shall: 1) describe in detail the investment position of the City as of the end of the reporting period, 2) be prepared jointly by all Investment Officers, 3) be signed by each Investment Officer, 4) contain a summary statement, prepared in compliance with generally accepted accounting principles, of each pooled fund group including a) beginning market value for the reporting period; b) additions and changes to the market value during the period; c) ending market value for the period; and d) fully accrued interest for the reporting period, 5) state the book value and market value of each separately invested asset at the beginning and end of the reporting period by type of asset and fund type invested, 6) state the maturity date of each separately invested asset that has a maturity date, 7) state the account or fund or pooled fund group for which each individual investment was acquired, and 8) state the compliance of the investment portfolio as it relates to the investment strategy expressed in the Investment Policy and with relevant provisions of the Tex. Ch. 2256. Annually - The City Council shall review and approve the Investment Policy and investment strategies at least annually and be documented by rule, order, ordinance or resolution which shall include any changes made. Compliance Audit of the quarterly reports in conjunction with the annual financial audit. The results of the audit will be reported to City Council. The audit will also review compliance with management controls on investments and adherence to this Policy. F. The guidelines of retaining records for seven years as recommended in the Texas State Library Municipal Records Manual should be followed .with respect to the investment of Page 8 of 16 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE REFERENCE NUMBER: TITLE: INVESTMENT POLICY 403.06 funds other than bond proceeds. Since the City manages the majority of its investments, including bond funds, using an internal pool consisting of combined fund groups, records shall be retained in accordance with the Administrative Policy No. 403.07 "Debt Service Management". The Chief Financial Officer shall oversee the filing and/or storing of investment records. G. Market prices for all public fund investments will be obtained and monitored through the use of Interactive Data Inc., an on-line data service or a similar qualified successor agency. VII. SUITABLE AND AUTHORIZED INVESTMENT SECURITIES A. Active Portfolio Management The City intends to pursue an active versus a passive investment management philosophy. That is, securities may be sold before they mature if market conditions present an opportunity for the City to benefit from the trade. (Refer to Section VIII of this Policy.) In addition, the Investment Officers may at times restrict or prohibit the purchase of specific types of investments or issuers due to current market conditions. The City shall take all prudent measures consistent with this Investment Policy to liquidate an investment that no longer meets the required minimum rating standards, as per the Tex. G. Code Sec. 2256.021. However, if it is determined by the Investment Committee that the City would benefit from holding the securities to maturity to recapture its initial investment then the Investment Officers may act accordingly. The City is not required to liquidate investments that were authorized investments at the time of purchase. (Tex. . Code Sec. 2256.017) B. Authorized Investments City funds governed by this Policy may be invested in the instruments described below, all of which are authorized by the Public Funds Investment Act. 1. Direct obligations of the United States of America, its agencies and instrumentalities (maturing in less than five years). 2. Other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, the United States of America, or any obligation fully guaranteed or insured by the Federal Deposit Insurance Corporation (maturing in less than five years). 3. Direct obligations of the State of Texas or its agencies thereof, Counties, Cities and other political subdivisions rated as to investment quality by a nationally recognized investment rating firm not less than AA or its equivalent (maturing in less than two years). 4. Other obligations , the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, the State of Texas, rated as to investment quality by a nationally recognized investment rating firm not less than AA or its equivalent (maturing in less than two years). 5. Fully insured or collateralized certificates of deposit/share certificates issued by state and national banks or savings bank or a state or federal credit union (having its main or branch office in Texas) guaranteed or insured by the Federal Deposit Insurance Page 9 of 16 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE REFERENCE NUMBER: TITLE: INVESTMENT POLICY 403.06 Corporation or its successor or the National Credit Union Share Insurance Fund or its successor; and secured by obligations in accordance with Section XII herein (maturing in less than two years). In and share certificates stated above, an investment in certificates of deposit made in accordance with the following conditions is an authorized investment under Tex. Govt. Code Sec. 2256.010 (b): (1) the funds are invested by the City through a clearing broker registered with the Securities and Exchange Commission (SEC) and operating pursuant to SEC rule 15c3-3 (17 C.F.R. Section 240.15c3-3) with its main office or branch office in Texas and selected from a list adopted by the Investment Committee as required by Section 2256.025; or a depository institution that has its main office or a branch office in this state and that is selected by the Investment Committee; (2) the selected broker or depository institution arranges for the deposit of the funds in certificates of deposit in one or more federally insured depository institutions, wherever located for the account of the City; (3) the full amount of the principal and accrued interest of each of the certificates of deposit is insured by the United States or an instrumentality of the United States; (4) the selected broker or depository institution acts as custodian for the City with respect to the certificates of deposit issued for the account of the City. 6. Fully collateralized repurchase agreements provided the City has on file a signed Master Repurchase Agreement, approved by the City Attorney, which details eligible collateral, collateralizations ratios, standards for collateral custody and control, collateral valuation, and conditions for agreement termination. The repurchase agreement must have a defined termination date and be secured by obligations in accordance with Section XII of this Policy. It is required that the securities purchased the investment is made with the City or with a third party selected and approved by the City. Repurchase agreements must be purchased through a primary government securities dealer, as defined by the Federal Reserve or a financial institution doing business in this State (termination date must be 30 days or less). An exception to the 30 days or less termination date may be made with respect to bond proceeds. The City may specifically authorize in the bond ordinance investments in repurchase agreements, such as a flexible repurchase agreement, with maturities in excess of 30 days subject to any required approvals from bond insurers. 7. Commercial paper that has a stated maturity of 270 days or less from the date of issuance and is rated A-1 or P-1 or an equivalent rating by at least two nationally recognized rating agencies. 8. Public (local) fund investment pools with a dollar weighted average maturity of 60 days or less. The pool must be approved through resolution by the City Council to provide services to the City and be continuously rated no lower than Aaa or AAAm or at an equivalent rating by at least one nationally recognized rating service. A public funds investment pool created to function as a money market mutual fund must mark to market daily and stabilize at a $1 net asset value. The City may not invest an amount that exceeds 10 percent of the total assets of any one local government investment pool. Page 10 of 16 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE REFERENCE NUMBER: TITLE: INVESTMENT POLICY 403.06 To be eligible to receive funds from and invest funds on behalf of the City, an investment pool must furnish to the Investment Officer or other authorized representative an offering circular or other similar disclosure instrument that contains information required by the Tex. Govt. Code Sec. 2256.016. Investments will be made in a local government investment pool only after a thorough investigation of the pool and approval by the Investment Committee which shall at least annually review, revise and adopt the local government investment pool(s). 9. A Securities and Exchange Commission (SEC) registered, no load money market mutual fund which has a dollar weighted average stated maturity of 60 days or less and whose investment objectives includes the maintenance of a stable net asset value of $1 for each share. Furthermore, it must be rated not less than Aaa, AAAm or an equivalent rating by at least one nationally recognized rating service and the City must be provided with a prospectus and other information required by the SEC Act of 1934 or the Investment Company Act of 1940. The City may not invest an amount that exceeds 10 percent of the total assets of any one fund. Investments will be made in a money market mutual fund only after a thorough investigation of the fund and approval by the Investment Committee which shall, at least annually, review, revise and adopt the money market mutual fund(s). C. Prohibited Investments those allowed by state law. Furthermore, this Policy specifically prohibits investment in the securities listed below: 1. Obligations, whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage-backed security collateral and pays no principal. 2. Obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest. 3. All collateralized mortgage obligations. 4. Reverse repurchase agreements. D. Diversification It is the policy of the City to diversify its investment portfolios. The diversification will protect interest income from the volatility of interest rates and the avoidance of undue concentration of assets in a specific maturity sector; therefore, portfolio maturities shall be staggered. In establishing specific diversification strategies, the following general policies and constraints shall apply: 1. Risk of market price volatility shall be controlled through maturity diversification and by controlling unacceptable maturity extensions and a mismatch of liabilities and assets. The maturity extension will be controlled by limiting the weighted average maturity of the internal investment pool portfolio to 550 days. All long-term maturities will be intended to cover long-term liabilities. In addition, at least 5 percent of the funds in the investment pool portfolio will be liquid at all times. Investment pool liquidity, which consists of immediately available funds, is defined as shares in a local government investment pool and money market mutual fund, as well as bank demand deposit balances. Although there is no maximum defined portfolio liquidity position, it is the intent of this Policy to seek out higher yielding alternative Page 11of 16 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE REFERENCE NUMBER: TITLE: INVESTMENT POLICY 403.06 investments in accordance with the prioritized objectives of preservation and safety of principal, meeting liquidity needs and yield enhancement as stated throughout the Public Funds Investment Act. 2. The Investment Committee shall establish strategies and guidelines for the percentage of the total portfolio that may be invested in U.S. Treasury Ssecurities, federal agencies/instrumentalities, repurchase agreements, and insured/collateralized certificates of deposit and other securities or obligations. The Investment Committee shall conduct a quarterly review of these guidelines, and shall evaluate the probability of market and default risk in various investment sectors as part of its considerations. 3. Risk of principal loss in the portfolio as a whole shall be minimized by diversifying investment types according to the following limitations based on book values: Investment Type % of Portfolio U.S. Government Treasury Notes/Bills & Obligations 100% U.S. Government Agencies & Instrumentalities 100% State of Texas Obligations, Agencies & Local Govt. 15% Local Government Investment Pools 50% Repurchase Agreements 20% Certificates of Deposit (fully insured or collateralized) 35% U.S. Money Market Mutual Fund 35% Callable U.S. Agencies/Instrumentalities 20% Commercial Paper 5% By Institution: Repurchase Agreements No more than 15% Collateralized Certificates of Deposit No more than 15% All Other (except U.S. Treasuries) No more than 35% 4. Purchases of securities with stated maturities greater than the maximum authorized under Section VIIB require prior City Council approval. VIII. SALE OF SECURITIES all securities to maturity. However, securities may be sold to minimize the potential loss of principal on a security whose credit quality has declined, to swap into another security which would improve the quality, yield or target duration of the portfolio or to meet unanticipated liquidity needs. A horizon analysis is required for each swap proving benefit to the City before the trade decision is made, and will be held in the file for record keeping. IX. COMPETITIVE BIDDING It is the policy of the City to require competitive bidding for all individual security purchases and sales, as well as for certificates of deposit. Exceptions include: A. Transactions with money market mutual funds and local government investment pools which are deemed to be made at prevailing market rates. Page 12 of 16 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE REFERENCE NUMBER: TITLE: INVESTMENT POLICY 403.06 B. Treasury and agency securities purchased as new issues through an approved broker/dealer, financial institution or investment advisor. C. At least three bids or offers must be solicited for all other transactions involving individual sec broker/dealers, offers on the closest comparable investment may be used to establish a fair market price for the security. In the case of a certificate of deposit purchase, at least two other offers should be solicited to provide a comparison. When few, if any, banks wish to participate then staff may use another authorized investment of similar maturity for evaluation purposes. The quotes may be accepted orally, in writing, electronically, or any combination of these methods. The Investment Committee may approve exceptions on a case by case basis or on a general basis in the form of guidelines. These guidelines shall take into consideration the investment type, maturity date, X. ARBITRAGE The Tax Reform Act of 1986 provided ment of tax-exempt bond proceeds. Revised arbitrage rebate provisions require that the City compute earnings on investment from each issue of bonds on an annual basis to determine if a rebate is required. To determ the actual yield earned on the investment of the funds and the yield that could have been earned if the funds had been invested at a rate equal to the yield on the bonds sold by the City. The rebate provision states that periodically (not less than once every five years, and not later than sixty days after maturity of the bonds), the City is required to pay the U.S. Treasury a rebate of excess earnings based on the City positive arbitrage position. The Tax Reform restrictions require precision in the monitoring and recording facets of investments as a whole, and particularly as they relate to yields and computations so as to insure compliance. Failure to comply may dictate that the bonds become taxable, retroactively from the date of issuance of maximizing yield on applicable investments while ensuring the safety of capital and liquidity. It is fiscally prudent to continue the maximization of yield and rebate excess earnings, if necessary. XI. SELECTION OF BANKS, BROKER/DEALERS AND INVESTMENT ADVISORS A. Depository requirement of Tex. Loc. Ch. 105. At least every five years a depository shall formal request for proposal (RFP). The selection of a depository will be determined by a competitive process and evaluated on the following criteria: 1. Qualified as a depository for public funds in accordance with state and local laws. 2. Provided requested information or financial statements for the periods specified. 3. Complied with all requirements in the banking RFP. Page 13 of 16 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE REFERENCE NUMBER: TITLE: INVESTMENT POLICY 403.06 4. Completed responses to all required items on the proposal form. 5. Offered lowest net banking service cost, consistent with the ability to provide an appropriate level of service. 6. Met credit worthiness and financial standards. B. Investment Broker/Dealers If the City has not retained an investment advisor, then the Investment Committee shall be responsible for adopting the list of qualified brokers/dealers and financial institutions authorized to engage in investment transactions with the City. Authorized firms may include primary dealers or regional broker/dealers that qualify under SEC Rule 15C3-1 (uniform net capital rule) and qualified depositories as established by the Tex. Loc. h. 105. The Investment Committee shall base its evaluation of security broker/dealers and financial institutions upon: 1. Financial condition, strength and capability to fulfill commitments. 2. Overall reputation with other broker/dealers or investors. 3. Regulatory status of the broker/dealer. 4. Background and expertise of the individual representatives. 5. Ability to provide additional advisory services. The Investment Committee must annually review the list of qualified broker/dealers authorized to engage in investment transactions with the City. Investment Officers, or their authorized representatives, shall not conduct business with any firm with whom public entities have sustained realized losses on investments or whose name the Investment Committee has removed from an approved list. C. Investment Advisor The City may retain the services of an investment advisory firm registered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seq.) or with the State Securities Board to assist in the review of cash flow requirements, the formulation of investment strategies, and the execution of security purchases, sales and deliveries. The investment advisory contract with the City may not be for a term longer than two years and its renewal or extension must be approved by the City Council by ordinance or resolution as required by the Tex. . D. Compliance A qualified representative from any firm offering to engage in investment transactions with the City is required to sign a written instrument upon receiving and . Investments shall only be made with those business organizations (including money market mutual funds and local government investment pools) which have provided the City with this written instrument executed by a qualified representative of the firm, acknowledging that the business organization has: 1. 2. Implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the City and the organization that are not authorized Page 14 of 16 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE REFERENCE NUMBER: TITLE: INVESTMENT POLICY 403.06 depen interpretation of subjective investment standards. 3. If the City has contracted with an investment advisor, the advisor shall be responsible for performing financial du advisor will provide the City with a list of its authorized broker/dealers, as well as the required written instrument described above. XII. COLLATERALIZATION, SAFEKEEPING AND CUSTODY A. Collateralization - The City requires that all uninsured collected balances plus accrued interest, if any, in depository accounts be secured in accordance with the requirements of state law. Financial institutions serving as City depositories will be required to sign a depository agreement with the City which details eligible collateral, collateralization ratios, standards for collateral custody and control, collateral valuation, rights of substitution and conditions for agreement termination. The City requires that all securities purchased under the terms of a repurchase agreement be assigned to the City in accordance with state law. Dealers and financial institutions wishing to transact repurchase agreements with the City will be required to sign a Master Repurchase Agreement which details eligible collateral, collateralization ratios, standards for collateral custody and control, collateral valuation, rights of substitution, and conditions for agreement termination. The City requires that all uninsured certificates of deposit plus accrued interest held with a depository be secured in accordance with the requirements of state law. Financial institutions will be required to sign a written depository and security agreement which stipulates eligible collateral, collateralization ratios, standards for collateral custody and control, collateral valuation, rights of substitution, and conditions for agreement termination. Collateral will always be held by an independent third party with which the City has a current custodial agreement and shall be reviewed at least monthly to ensure that the market value of the pledged securities is adequate. All deposits and investments of City funds, other than direct security purchases, money market mutual funds and local government investment pools shall be secured by pledged collateral set at no less than 102 percent of the market value of the principal and accrued interest on the deposits or investments less an amount insured by FDIC. 1. Direct obligations of the United States government. 2. Other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, the United States government. 3. Direct obligations of agencies or instrumentalities of the United States government, including letters of credit. 4. Cash The City will reject adjustable rate mortgages (ARMs), collateralized mortgage obligations (CMOs), step-ups, variable rate instruments (except U.S. Treasury inflation protected securities), or securities that are not found on common pricing systems. Page 15 of 16 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE REFERENCE NUMBER: TITLE: INVESTMENT POLICY 403.06 B. Safekeeping and Custody be in accordance with state law. All security transactions, except local government investment pool and money market mutual fund transactions, shall be conducted on a delivery versus payment (DVP) basis. Investment securities will be held by a third party custodian designated by the City, and be required to issue safekeeping confirmation notices clearly detailing that the securities are owned by the City. Safekeeping and custody of collateral pledged to the City shall be in accordance with state law. Collateral will be held by a third party custodian designated by the City. The custodian is required to issue safekeeping confirmation notices clearly showing that the securities are pledged to the City. C. Subject to Audit All collateral shall be subject to inspection and audit by the Chief Financial Officer XIII. MANAGEMENT AND INTERNAL CONTROLS Controls shall be designed to prevent losses of public funds arising from fraud, employee error, and misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees or Investment Officers of the City. Controls and managerial emphasis deemed most important that shall be employed include the following: Imperative Controls - Custodian safekeeping confirmation notices records management - Avoidance of bearer-form securities - Documentation of investment bidding events - Written confirmation of telephone transactions - Reconcilements and comparisons of security confirmation notices with the investment records - Compliance with Investment Policy - Verification of all interest income and security purchase and sell computations Controls Where Practical - Control of Collusion - Separation of duties - Separation of transaction authority between Accounting and record-keeping - Clear delegation of authority Page 16 of 16 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE REFERENCE NUMBER: TITLE: INVESTMENT POLICY 403.06 - Accurate and timely reports - Validation of investment maturity decisions with supporting cash flow data - Adequate training and development of Investment Officers and staff authorized to execute investment transactions - Review of financial conditions of all brokers/dealers and depository institutions - Access to information about market conditions, changes and trends that require adjustments to investment strategies. XIV. INVESTMENT POLICY ADOPTION The Investment Policy shall be formally approved and adopted by resolution of the City Council and reviewed annually in accordance with the provisions of the Public Funds Investment Act of the Texas Government Code Chapter 2256. AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: Economic Development ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, approving an Amendment to an Economic Development Program Grant Agreement dated August 17, 2010 between the City of Denton and Grand Mesa LLC. assigning the Agreement to Schlumberger Technology Corporation and providing an effective date. BACKGROUND The City of Denton originally entered into a Chapter 380 Economic Development Program Grant Agreement with Grand Mesa Limited Liability Company (LLC) in 2010. Grand Mesa LLC received a grant for the renovation of a 152,000 square foot building and 36.03 acres of land generally located on the west side of Interstate 35 West at the Granite Point Business Park in Denton. The renovation and equipping of the building was performed for Schlumberger Technology Corporation. Grand Mesa advised the City at the time the Chapter 380 agreement was established that Schlumberger Technology Corporation would take ownership of the property upon completion of the renovation. It was agreed at that time that Grand Mesa would assign the incentive agreement to Schlumberger. The Grand Mesa Agreement provides a grant equal to 50% of the property tax paid on the existing building, new improvements and equipment valuation. The term of the Agreement is for seven years. The Agreement thresholds require maintaining five million in real property improvements and business personal property valuation, the creation of 80 jobs and an average wage of $45,000. No grant payments have been made but will commence for the 2012 tax year. Schlumberger will be eligible for their first grant payment in 2013 (based on 2012 valuation) and this amendment to the original agreement will designate Schlumberger as the recipient of the grant as planned. FISCAL INFORMATION There will be no fiscal impact as a result of this Amendment. The Amendment documents the agreement between Grand Mesa LLC and Schlumberger Technology Corporation and recognizes the designation and right Schlumberger Technology Corporation. EXHIBITS Ordinance Chapter 380 Economic Development Grant Agreement Amendment Grand Mesa LLC Assignment and Assumption Document Agenda Information Sheet Economic Development Agreement Assignment September 11, 2012 Page 2 Prepared by: ______________________________________ Erica Sullivan, Economic Development Analyst Economic Development Department Respectfully submitted, _______________________________ Linda Ratliff, Director Economic Development Department AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: City Manager’s Office CM/DCM/ACM: George Campbell, City Manager SUBJECT: Consider approval of a resolution amending Resolution No. R2009-015 by establishing a standing committee of the City Council of the City of Denton, Texas to be known as the Committee on Citizen Engagement. BACKGROUND: At the council meeting of August 7, 2012, Council Member Roden requested that a standing council committee be established regarding citizen engagement. The purpose of the committee shall be to provide advice to both the City Council and/or staff regarding timely distribution of accurate and complete information to Denton citizens and to devise methods of engaging Denton citizens in the various processes of city government. The committee shall be composed of three members of the City Council and allow for the City Manager, or his designee, to provide guidance and assistance and ensure that proper records are maintained. RECOMMENDATIONS: Staff recommends approval of the resolution. PRIOR ACTION/REVIEW (Council, Boards, Commission): Staff provided the proposed resolution to the Council for discussion and direction at their work session on August 21, 2012. Consensus was to bring forth the resolution for consideration at City Council’s meeting of September 11, 2012. FISCAL INFORMATION: Not applicable. ATTACHMENT(S): Draft Resolution Resolution No. R2009-015 Respectfully submitted: George C. Campbell City Manager Prepared by: Betty Williams Director of Administrative Services AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: Economic Development ACM: Jon Fortune ________________________________________________________________________ SUBJECT Consider approval of a resolution of the City Council of the City of Denton, Texas accepting the recommendations made by the Citizens Advisory Oversight Committee appointed by the City Council on April 19, 2005, regarding the five-year capital improvements program, respecting the reallocation of funding of street improvements from Austin Street to the Hickory Street Grand Project; and providing an effective date. BACKGROUND At the August 27, 2010 meeting, the Citizens Advisory Oversight Committee (CAOC) made a recommendation to the City Council to reallocate a total of $1,777,970 from Walnut Street and Pecan Street to the Hickory Street Grand Project. At that time, the Hickory Street Grand Project was estimated at $1.7 million. The City Council approved the reallocation at their October 5, 2010 meeting. Since that time, the Downtown Implementation Plan (DTIP) was completed and a list of projects developed. Before design and construction could begin on Hickory Street, a traffic study of the DTIP area was performed. In addition, staff reviewed the proposed complete street design and the actual specifications for Hickory Street. Modifications were made. A recently completed, detailed estimate for the Hickory Street section from Bell Avenue to Locust Street indicates an estimated $3.1 million cost. This amount includes the rebuilding of the street, new sidewalks, and amenities - planters, benches, etc. Not included in the estimate are the costs for water, sewer, drainage and electric upgrades. City Council received an update on the project at their August 14, 2012 meeting. At their August 15, 2012 meeting the CAOC received a report from staff regarding the increased costs associated with the Hickory Street Grand Project. The Committee recommended City Council approve the reallocation of $950,625 originally intended for Austin Street to the Hickory Street Grand Project. The balance of approximately $400,000 in funds needed for Hickory Street will be provided through other sources. The CAOC asked, pending approval of the reallocation of City Council, that staff visit with Austin Street property owners to advise them of the reallocation. In addition, the CAOC requested that the three muse streets, Walnut, Pecan and Austin, be considered as project streets in the next bond election, following the proposed November 2012 election. Agenda Information Sheet September 11, 2012 Page 2 ESTIMATED SCHEDULE OF PROJECT If approved, design will begin immediately. Utility improvements will be completed prior to construction commencing, which is estimated to occur in fall 2013. PRIOR ACTION/REVIEW The CAOC discussed the Hickory Street Grand Project at their August 15, 2012 meeting and recommended approval of the reallocation of Austin Street funds to Hickory Street (4-0). EXHIBITS Resolution Respectfully submitted: Linda Ratliff, Director Economic Development AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Kevin Gunn at 349-8595 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas authorizing the City Manager to execute a contract with Alexander Open Systems (AOS), Inc. to provide EMC Avamar Data Backup Solution and Professional Services as awarded by the State of Texas Department of Information Resources (DIR) through the Go DIRect Program, Contract Number DIR-SDD-1418; providing for the expenditure of funds therefor and providing an effective date. (File 5028-EMC Avamar Data Backup Solution awarded to Alexander Open Systems (AOS), Inc. as a three year lease purchase agreement through De Lage Landen Public Finance LLC totaling $267,197.52). FILE INFORMATION The City of Denton operates a robust disaster recovery system which protects critical software protections against accidental or intentional modification, accidental or intentional deletion, and data corruption due to malfunctions. The City uses data backup systems to implement such protection. To be effective data backup systems need to create backups of data in a short period of time (typically overnight) and retain a history of data backups (ideally 30 days). Over the past three years, the amount of data requiring backup protection has increased from 35 terabytes (TB) to 45 TB (one terabyte is equal to 1,000,000 megabytes). With this rapid growth of data, the current method of data backup is becoming inadequate in completing the backup process overnight and does not have enough capacity to maintain a 30 day history of data backups. The City of Denton must acquire a new data backup system to continue to ensure data is adequately protected. Technology Services staff reviewed a number of options for data backups from software and hardware vendors. Staff considered the volume of existing data, anticipated growth of data over the next three years, the goal of completing all backups overnight, and the goal of retaining a 30 day history of data backups in the analysis. Staff chose EMC Avamar Data Backup Solution as the lowest cost alternative. Three quotes for Avamar Data Backup Solutions were received. Alexander Open Systems (AOS), Inc. was the lowest cost vendor. In addition, EMC Global Financial Service through De Lage Landen Public Finance LLC offered a Three Year Lease Purchase Agreement with an effective interest rate of zero percent for the purchase of the Avamar Data Backup Solution. Agenda Information Sheet September 11, 2012 Page 2 RECOMMENDATION Award a contract with Alexander Open Systems (AOS), Inc. to provide EMC Avamar Data Backup Solution and professional services as awarded by the State of Texas Department of Information Resources (DIR) through the Go DIRect Program, Contract Number DIR-SDD- 1418 with a Three Year Lease Purchase Agreement by De Lage Landen Public Finance LLC totaling $267,197.52. PRINCIPAL PLACE OF BUSINESS Alexander Open Systems, Inc. Addison, TX ESTIMATED SCHEDULE OF PROJECT Service will commence immediately upon award of contract. FISCAL INFORMATION Funding for the first annual payment in the amount of $89,065.84 is budgeted in Technology Services Operating Account 840037744.1355.30100. Requisition #109478 has been entered in the Purchasing Software system. EXHIBITS Exhibit 1: Quote from Alexander Opens Systems Inc. Exhibit 2: Lease Purchase Agreement Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 5028 Exhibit 1 !"# $%&' "%()*+ ,*-%."/012&3 3.&4 %##$&'( %)*+,- *./ ##5*6" 0)1+*2,3-4 / !"##$ $&(&$- *3+I- 57751-;53JC5K- L$### 5+,//(?@A?@#$@ :MM<1*>N- O-A&##$ 657,1-8,9/ 8 6:; ;I*>,/-'A@"APQ"('## ,1<=>,3/F G4 0H R5S/-----'A@"APQ"('$# -$ ;7,51,-B<1<+-CCC.5*1&.D*2-E*3-5-D*297,+,-7<1+<>=-*E-577-1,3B<D,-53,51 %12&37%3&8%(9.:%3&8 04 T-!R- ! 04 T-!R- ! P#$- -U40F!8TP#$- -U40F!8T 6V4 -:6V4 -: ! N- O--AP@#&"WQ#W ! N- O--AP@#&"WQ#W X'W#Y-QW'"(&'& ;I*>,/ R5S/ %V! : 4! 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The Opinion of Counsel is deleted in its entirety from the Equip 2. Section 2.01(n the beginning of the first sentence. 3. Section 3.04 of the Agreement NONAPPROPRIATION: is amended 4. Sections 7.02 INSURANCE and 7.05 RELEASE AND INDEMNIFICATION of whether or not covered by insurance, for loss or damage to the Equipment. To the extent permitted by law, Lessee assumes all r s property or the property of others, which is proximately cause of Lessee, its officers, employees and agents. 5. Section 12.02pment is located and Except as specifically set forth in this Amendment, all terms an hereby ratified and confirmed. LESSOR: De Lage Landen Public Finance LLC LESSEE: City of Denton X BY: BY: AUTHORIZEDSIGNATUREAUTHORIZEDSIGNATURE BY: BY: PRINTEDNAMEANDTITLEPRINTEDNAMEANDTITLE ADDRESS: 1111 Old Eagle School Road ADDRESS: 601 E Hickory St Wayne, PA 19087 Denton, TX 76205 DATE: DATE: Exhibit 2 ORDINANCE NO. _______ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH ALEXANDER OPEN SYSTEMS (AOS), INC. TO PROVIDE EMC AVAMAR DATA BACKUP SOLUTION AND PROFESSIONAL SERVICES AS AWARDED BY THE STATE OF TEXAS DEPARTMENT OF INFORMATION RESOURCES (DIR) THROUGH THE GO DIRECT PROGRAM, CONTRACT NUMBER DIR-SDD-1418; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR AND PROVIDING AN EFFECTIVE DATE. (FILE 5028-EMC AVAMAR DATA BACKUP SOLUTION AWARDED TO ALEXANDER OPEN SYSTEMS (AOS), INC. AS A THREE YEAR LEASE PURCHASE AGREEMENT THROUGH DE LAGE LANDEN PUBLIC FINANCE LLC TOTALING $267,197.52). WHEREAS, pursuant to Resolution 92-019, the State Purchasing Building and Procurement Commission has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of state law on behalf of the City of Denton; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described materials, equipment, supplies or services can be purchased by the City through the Building and Procurement Commission programs at less cost than the City would expend if bidding these items individually; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered purchase order for materials, equipment, supplies, or services, shown in the "Purchase Orders" listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMER VENDOR AMOUNT 5028 Alexander Open Systems, Inc. $267,197.52 SECTION 2. By the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the Building and Procurement Commission, the City Manager or his designated representative is hereby authorized to execute the written contract which shall be attached hereto; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the Building and Procurement Commission, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _______ day of _______________________, 2012. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 4-ORD-File 5028 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions concerning this acquisition may be directed DEPARTMENT: Technology Services to Kevin Gunn at 349-8595. ACM: Bryan Langley SUBJECT Consider adoption of an ordinance approving the expenditure of funds for an upgrade to the Supervisory Control and Data Acquisition (SCADA) hardware and software system for Denton Municipal Electric (DME) available from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4724- SCADA System upgrade for Denton Municipal Electric awarded to Open Systems International, Inc. (OSI) in the amount of $343,590). The Public Utilities Board recommends approval (5-0). FILE INFORMATION The Supervisory Control and Data Acquisition (SCADA) system is used to monitor and control substations with distribution and transmission equipment. Denton Municipal Electric (DME) SCADA monitors and controls 15 substations and provides real-time load readings to the Texas Municipal Power Association Transmission Operator, NRG Energy, Inc., and the Electric Reliability Council of Texas. DME uses the SCADA system to meet State and Federal regulatory requirements for electric system operation and reliability. The SCADA system was originally purchased from Open Systems International (OSI) and installed in November, 2008. The hardware components for the SCADA system should be replaced every four to five years to ensure the highest levels of reliable operation and continued availability of replacement parts in the event of hardware failure. Upgrading the SCADA system will require four to six months of planning and effort. By the time the work is complete the existing hardware will be four years old and should be removed from service. In addition to upgrading existing software and hardware, this project will enhance the existing SCADA system in two ways. First, a Quality Assurance and Test system will be added to improve SCADA reliability. North American Electric Reliability Corporation (NERC) Critical Infrastructure Protection (CIP) regulations require documenting and testing software updates applied to production SCADA systems. Current practice is to apply updates to the production backup SCADA system for documentation and testing. The potential exists to lose redundancy in the production SCADA system if a software update has an unforeseen adverse affect on the backup SCADA system. The Quality Assurance and Test system will provide the ability to fully document and test software updates before applying the updates to any production systems removing the risk to redundancy in the production system. Agenda Information Sheet September 11, 2012 Page 2 FILE INFORMATION (CONTINUED) The project also proposes to create a Dispatcher Training System. The Dispatcher Training personnel can be exposed to simulated real-time system indications and responses to events that let the operators practice their actions without risking the operational integrity of the actual power system. This type of preplanning and training will prepare Systems Operator personnel to respond to actual events improving their skill level and system response time. OSI is the sole-source vendor for all Monarch products and related services for the software upgrade as shown on Exhibit 1. Section 252.022 of the Texas Local Government Code provides that procurement of items that are only available from one source, do not have to be competitively bid. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On August 27, 2012, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. RECOMMENDATION Staff recommends awarding a contract to upgrade Supervisory Control and Data Acquisition (SCADA) hardware and software system to Open Systems International, Inc. in the amount of $343,590. PRINCIPAL PLACE OF BUSINESS Open Systems International, Inc. Medina, MN ESTIMATED SCHEDULE OF PROJECT OSI has stated that system upgrades can be operational in four (4) to six (6) months depending on vendor and staff availability. FISCAL INFORMATION The cost of the equipment, professional services and testing will be $343,590 with funds budgeted in bond account 603130499.1355.3620. Agenda Information Sheet September 11, 2012 Page 3 EXHIBITS Exhibit 1: Quote Exhibit 2: Sole Source Letter Exhibit 3: Draft Public Utilities Board Minutes Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File -4724 Exhibit 1 Exhibit 2 Exhibit 3 DRAFT MINUTES 1 PUBLIC UTILITIES BOARD 2 3 August 27, 2012 4 5 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas is 6 present, the Chair of the Public Utilities Board will thereafter convene into an open meeting on 7 Monday, August 27, 2012 at 9:00 a.m. in the Service Center Training Room, City of Denton 8 Service Center, 901-A Texas Street, Denton, Texas. 9 10 Present: Vice Chair Billy Cheek, Barbara Russell, Randy Robinson, Phil Gallivan 11 and Leonard Herring 12 13 Absent Excused: Chairman Dick Smith and John Baines 14 15 Ex Officio Members: Howard Martin, ACM Utilities 16 17 Absent: George Campbell, City Manager 18 ITEMS FOR INDIVIDUAL CONSIDERATION: 19 20 21 2)Consider a recommendation for adoption of an ordinance awarding a contract to upgrade the 22 Supervisory Control and Data Acquisition (SCADA) hardware and software system for 23 Denton Municipal Electric (DME); providing for the expenditure of funds therefor (File 24 4074-SCADA System upgrade for Denton Municipal Electric awarded to Open Systems 25 International (OSI) in the amount of $343,590). 26 Member Gallivan asked of the $343,590, how much of that amount is for hardware. 27 Gallivan stated he is sure we have a maintenance agreement that entitles us to software 28 upgrades 29 . Kevin Gunn, Director of Technology Services, stated that the quote is enclosed in the 30 backup. A portion in the amount of $59,870 is for hardware. Our maintenance agreement does 31 include software upgrades to the Production Monarch System and there is no charge for that. Gallivan then asked about the $97,000 32 . Gunn answered it is for professional services for 33 configuration and installation of the hardware and software; also for integrating into the current 34 production system. 35 A motion to approve item 2 was made by Board Member Robinson with a second by Board 36 Member Gallivan. The vote was 5-0. 37 38 39 Adjournment 10:27am ORDINANCE NO. ____________ AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR AN UPGRADE TO THE SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA) HARDWARE AND SOFTWARE SYSTEM FOR DENTON MUNICIPAL ELECTRIC (DME) AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH TEXAS LOCAL GOVERNMENT CODE 252.022, EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4724-SCADA SYSTEM UPGRADE FOR DENTON MUNICIPAL ELECTRIC AWARDED TO OPEN SYSTEMS INTERNATIONAL, INC. (OSI) IN THE AMOUNT OF $343,590). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as hereby approved: FILE NUMBER VENDOR AMOUNT 4724 Open Systems International, Inc. $343,590 SECTION 2. The City Council hereby finds that this bid, and the award thereof, constitutes a procurement of items that are available from only one source, including, items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids. SECTION 3. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 4. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 4724 to the City Manager of the City of Denton, Texas, or his designee. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _________ day of ____________, 2012. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ______________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 5-ORD-File 4724 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Phil Williams at 349-8487 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance of the City of Denton, Texas authorizing the expenditure of funds for payments by the City of Denton for Electrical Energy Transmission Fees to those cities and utilities providing energy transmission services to the City of Denton; and providing an effective date (File 4847-Electrical Energy Transmission Fees for Electric Transmission Texas, LLC in the additional amount of $69,576.90 for a total award of $289,830.60 and Electrical Energy Transmission Fees for Lower Colorado River Authority in the additional amount of $111,809.61 for a total award of $1,057,018.70; for a total expenditure of $1,346,849.30). The Public Utilities Board recommends approval (5-0). FILE INFORMATION The Public Utility Regulatory Act of 1995 (PURA 95) required the development of a new, statewide mechanism for electric transmission service in Texas. PURA 95 also placed municipal utilities under the jurisdiction of the Public Utilities Commission of Texas (PUCT) for matters related to transmission. As a result, the Denton Municipal Electric Utility has been ordered by the PUCT to pay various other electric utilities in the State specific amounts. This item is for the additional amount of transmission fees previously approved by the City Council on November 1, 2011. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On November 1, 2011, Council approved the initial payment of transmission fees to Electric Transmission Texas, LLC in the amount of $220,253.70 and Lower Colorado River Authority in the amount of $945,209.09. On August 27, 2012, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. RECOMMENDATION Approve the payment of the additional transmission fees to Electric Transmission Texas, LLC in the amount of $69,576.90 plus previously approved fees in the amount of $220,253.70 for a total award of $289,830.60 and additional transmission fees to the Lower Colorado River Authority in the amount of $111,809.61 plus previously approved fees of $945,209.09 for a total award of $1,057,018.70. The combined total award for both entities will be $1,346,849.30. Agenda Information Sheet September 11, 2012 Page 2 PRINCIPAL PLACE OF BUSINESS Electric Transmission Texas, LLC Lower Colorado River Authority Canton, OH Austin, Texas ESTIMATED SCHEDULE OF PROJECT Payment of the fees will be processed upon Council approval. FISCAL INFORMATION Funds to meet this regulatory fee obligation were budgeted in 2011-2012 fiscal year budget account 600100.6072.5650A. A line will be added to the existing purchase orders for these fees. EXHIBITS Exhibit 1: Draft Public Utilities Board Minutes Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 4847 Exhibit 1 DRAFT MINUTES 1 PUBLIC UTILITIES BOARD 2 3 August 27, 2012 4 5 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas is 6 present, the Chair of the Public Utilities Board will thereafter convene into an open meeting on 7 Monday, August 27, 2012 at 9:00 a.m. in the Service Center Training Room, City of Denton 8 Service Center, 901-A Texas Street, Denton, Texas. 9 10 Present: Vice Chair Billy Cheek, Barbara Russell, Randy Robinson, Phil Gallivan 11 and Leonard Herring 12 13 Absent Excused: Chairman Dick Smith and John Baines 14 15 Ex Officio Members: Howard Martin, ACM Utilities 16 17 Absent: George Campbell, City Manager 18 19 ITEMS FOR INDIVIDUAL CONSIDERATION: 20 21 22 3)Consider a recommendation for approval for the expenditure of additional funds for 23 payments by the City of Denton, Texas for electrical energy transmission fees per the Public 24 Utility Commission of Texas (PUCT) rate tariffs, to Electric Transmission Texas (ETT) of 25 $69,576.90 (P.O. #155919) for a total payment of $289,830.60; and to the Lower Colorado 26 River Authority (LCRA) of $111,809.61 (P.O. #155921) for a total payment of 27 $1,057,018.70 for providing energy transmission services to the City of Denton. 28 Member Gallivan asked what time period do these charges coverIs this a settle up for the 29 . fiscal year. 30 Phil Williams, General Manager DME, stated it is normally an annual charge. We 31 try to estimate how much the 32 had transmission rate increases granted by the Public Utility Commission of Texas during the Gallivan stated for projection 33 year so they turned out to be higher than staff anticipated. purposes everything is going up in terms of those that offer us services. Herring asked if 34 we get money coming in for our transmission facilities 35 . Williams stated that we do. 36 A motion to approve item 3 was made by Board Member Herring with a second by Board 37 Member Robinson. The vote was 5-0. 38 39 40 Adjournment 10:27am ORDINANCE NO. __________ AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE EXPENDITURE OF FUNDS FOR PAYMENTS BY THE CITY OF DENTON FOR ELECTRICAL ENERGY TRANSMISSION FEES TO THOSE CITIES AND UTILITIES PROVIDING ENERGY TRANSMISSION SERVICES TO THE CITY OF DENTON; AND PROVIDING AN EFFECTIVE DATE (FILE 4847-ELECTRICAL ENERGY TRANSMISSION FEES FOR ELECTRIC TRANSMISSION TEXAS, LLC IN THE ADDITIONAL AMOUNT OF $69,576.90 FOR A TOTAL AWARD OF $289,830.60 AND ELECTRICAL ENERGY TRANSMISSION FEES FOR LOWER COLORADO RIVER AUTHORITY IN THE ADDITIONAL AMOUNT OF $111,809.61 FOR A TOTAL AWARD OF $1,057,018.70; FOR A TOTAL EXPENDITURE OF $1,346,849.30). WHEREAS, in order to comply with the legislative requirements contained in the Utility Regulatory Act of 1995, for the payment for energy transmission services fees, the City of Denton is required to pay such fees imposed by the Public Utilities Commission of Texas to two listed utilities WHEREAS, the City Manager has reviewed and recommended that the City Council approve and authorize the payment of such fees; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The expenditure of funds in the total amount of $1,346,849.30 to be paid to the Listed Uti a part of this ordinance for all purposes, is hereby authorized. SECTION 2. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 4847 to the City Manager of the City of Denton, Texas, or his designee. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ________ day of ____________________, 2012. _______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY:__________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 3-ORD-FILE 4847 Total Fees for 2012 Fiscal Year Lower Colorado River Authority $1,057,018.70 Electric Transmission of Texas, LLC $ 289,830.60 Total$1,346,849.30 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Mark Nelson at 349-7302 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance authorizing the City Manager to execute a Professional Services Agreement (PSA) with Innovative Transportation Solutions, Inc. for Transportation Services as set forth in the contract; and providing an effective date (File 4848-Professional Service Agreement for Transportation Consultant Services to Innovative Transportation Solutions, Inc. for a one year contract in the amount of $126,000, with four (4) one-year options to renew, for a not to exceed total award of $630,000). (The Mobility Committee recommends approval 3-0). FILE INFORMATION Innovative Transportation Solutions, Inc. (ITS) has provided the City of Denton with quality transportation consultant services since 2002. ITS has been able to identify and produce many opportunities to leverage municipal funds with county, regional, state and federal funds to advance transportation infrastructure projects throughout the City of Denton and Denton County improving mobility for Denton residents. In fact, as part of the Regional Toll Revenue Financing Initiative through the State Highway 121 Comprehensive Development Agreement (CDA) in 2007/2008 and through the Denton County 2008 Transportation Bond Program, ITS has assisted in securing approximately $100 million for transportation infrastructure projects in the City of Denton. ITS provides a unique service to the City of Denton and the continued use of ITS services is integral to the development of future transportation infrastructure for the City of Denton. It is expected this contract will result in an overall savings of tax dollars above and beyond the expenditure for these services. As President of ITS, John Polsterextensive knowledge regarding CDAs has been extremely important over the past 12 months as the Texas Department of Transportation (TxDOT) develops a procurement method for implementing the Interstate 35E Managed Lane Project. DOT, North Central Texas Council of Governments, Denton County, Dallas County, and the Dallas Regional Mobility Committee will continue to enhance regional mobility efforts in the City of Denton, more specifically with the pending I-35E Managed Lane Project. Agenda Information Sheet September 11, 2012 Page 2 FILE INFORMATION (CONTINUED) Based on the respect and influence Mr. Polster has within the North Texas transportation community, including TxDOTAustin, and that no other consultant firms have been identified that can deliver the quality of service and results ITS has delivered in the past, staff is confident that ITS can provide the best value to our organization with respect to advancing transportation projects in the City of Denton. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On August 14, 2012, the Mobility Committee recommended approval to forward this item to the City Council for consideration. RECOMMENDATION Approve a one year contract with Innovative Transportation Solutions, Inc. in the amount of $126,000 with four (4) one-year options to renew for a total award of $630,000. PRINCIPAL PLACE OF BUSINESS Innovative Transportation Solutions, Inc. Farmers Branch, TX ESTIMATED SCHEDULE OF PROJECT The initial term of this contract authorizes services to be performed through September 30, 2013. At the expiration of the initial contract period, this contract may be renewed for an additional four (4) one-year periods through September 30, 2016. FISCAL INFORMATION The proposed contract establishes a one-year term in the amount of $126,000 to be paid in 12 monthly payments of $10,500. Funds have been budgeted for this contract in the FY 2012-2013 Transportation Operations account 350000.7854. EXHIBITS Exhibit 1: Draft Mobility Committee Minutes Agenda Information Sheet September 11, 2012 Page 3 Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 4848 Exhibit 1 1 DRAFT MINUTES 2 3City Council Mobility Committee 4Tuesday, August 14, 2012 5 6After determining that a quorum of the Mobility Committee of the Denton City Council was 7present, the Committee convened into a meeting on Tuesday, August 14, 2012, at 1:30 p.m. in 8the City Council Conference Room, 215 E. McKinney Street, Denton, Texas. 9 Present: 10Mayor Pro Tem, Pete Kamp; Committee Chair, Mayor Mark Burroughs; and 11Council Member Dalton Gregory. 12 Also Present: 13Howard Martin, Assistant City Manager Utilities; Jon Fortune, Assistant City 14Manager; Bryan Langley, CFO and Director of Strategic Services; Mark Nelson, 15Director of Transportation; Jim Coulter, Director Water Utilities; John Polster, 16Innovative Transportation Solutions (ITS); and Kim Mankin, Administrative 17Supervisor. 18 OPEN MEETING 19 20 212) Receive a report, hold a discussion and provide a recommendation regarding a proposed 22ordinance authorizing the City Manager to execute a Professional Services Agreement (PSA) 23with Innovative Transportation Solutions, Inc. for transportation services as set forth in the 24contract; and providing an effective date (File 4848-Professional Service Agreement for 25Transportation Consultant Services to Innovative Transportation Solutions, Inc. for a five year . 26total amount $630,000) 27 28Mark Nelson, Director of Transportation, stated that this is a different approach than in the 29previous years. This gives the authority for a five year contract, renewable annually by the City 30Manager. There are no changes in the contract or dollar amount. 31 32Mayor Burroughs asked if in a couple of years, the City was no longer happy with ITS, what 33would the procedure be to get out of the contract. Nelson answered that with a 30-60 day written 34notice the City can opt out of the contract. There was a small amount of discussion. 35 36Mayor Pro Tem, Pete Kamp stated that she supports this contract. 37 Member Gregory moved to approve the Contract with a second from Mayor Burroughs. 38 Vote to approve 3-0. 39 40 41With no further business to address, the Committee adjourned at 2:01 p.m. ORDINANCE NO. _______________ AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT (PSA) WITH INNOVATIVE TRANSPORTATION SOLUTIONS, INC. FOR TRANSPORTATION SERVICES AS SET FORTH IN THE CONTRACT; AND PROVIDING AN EFFECTIVE DATE (FILE 4848-PROFESSIONAL SERVICE AGREEMENT FOR TRANSPORTATION CONSULTANT SERVICES TO INNOVATIVE TRANSPORTATION SOLUTIONS, INC. FOR A ONE YEAR CONTRACT IN THE AMOUNT OF $126,000, WITH FOUR (4) ONE-YEAR OPTIONS TO RENEW, FOR A NOT TO EXCEED TOTAL AWARD OF $630,000). WHEREAS, t being selected as the most highly qualified on the basis of its demonstrated competence and qualifications to perform the proposed professional services; and WHEREAS, the fees under the proposed contract are fair and reasonable and are consistent with and not higher than the recommended practices and fees published by the professional nd such fees do not exceed the maximum provided by law; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager, or his designee, is hereby authorized to enter into a professional service contract with Innovative Transportation Solutions, Inc. to provide transportation consultation services for the City of Denton, a copy of which is attached hereto and incorporated by reference herein. SECTION 2. The City Manager, or his designee, is authorized to expend funds as required by the attached contract. SECTION 3. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 4848 to the City Manager of the City of Denton, Texas, or his designee. SECTION 4. The findings in the preamble of this ordinance are incorporated herein by reference. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2012. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY:_________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 3-ORD-File 4848 appropriate working space in order to conduct audits in compliance with this section. CITY shall give CONSULTANT reasonable advance notice of intended audits. ARTICLE XV RESPONSIBILITY FOR CLAIMS AND LIABILITIES Approval by the CITY shall not constitute, nor be deemed a release of the responsibility and liability of the CONSULTANT, its employees, associates, agents, subcontractors, and subconsultants for the accuracy and competency of their work; nor shall such approval be deemed to be an assumption of such responsibility by the CITY for any defect in the work prepared by the CONSULTANT, its employees, associates, agents, subcontractors and subconsultants. ARTICLE XVI NOTICES All legal notices and communications required or permitted under this Agreement shall be personally delivered or mailed to the respective parties by depositing same in the United States mail to the addresses shown below, certified mail, return receipt requested, unless otherwise specified herein: To CONSULTANT: To CITY: City of Denton John Polster, President George Campbell Innovative Transportation Solutions, Inc. City Manager 2701 Valley View Lane 215 E. McKinney Farmers Branch, TX 75234 Denton, TX 76201 FAX (972) 484-4545 All notices shall be deemed effective upon receipt by the party to whom such notice is given, or within three (3) days after the date of mailing. ARTICLE XVII ENTIRE AGREEMENT This Agreement, consisting of eighteen pages (18) pages including Exhibit A, constitutes the complete and final expression of the Agreement of the parties, and is intended as a complete and exclusive statement of the terms of their agreements, and supersedes all prior contemporaneous offers, promises, representations, negotiations, discussions, communications, understandings, and agreements which may have been made in connection with the subject matter of this Agreement. ARTICLE XVIII SEVERABILITY If any provision of this Agreement is found or deemed by a court of competent jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement and shall not cause the remainder to be invalid or unenforceable. In such event, 8 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions concerning this acquisition may be directed DEPARTMENT: Engineering to Frank Payne at 349-8946. ACM: Bryan Langley SUBJECT Consider adoption of an ordinance authorizing the City Manager to execute a Professional Services Agreement for indefinite Delivery Survey Services on a work order basis for various City of Denton departments; providing for the expenditure of funds therefor; and providing an effective date (File 4948awarded to Teague Nall and Perkins, Inc. in an amount not-to-exceed $400,000.00). FILE INFORMATION The City of Denton has contracted out survey services through a series of indefinite delivery type contracts since Fiscal Year 2003. Each of the contracts or extensions has been with Arthur Surveying Co., Inc. The annual expenditures for survey services over that period of time have been roughly $200,000 per year. Utility and Capital Improvements Program (CIP) Engineering and the Purchasing Department published a Request for Qualifications (RFQ#4898) in order to receive statements of qualifications from firms to provide this service going forward. A total of 27firms responded to the published request with statements of qualifications which were received on May 17, 2012. A selection team made up of five staff members reviewed the responses. The selection team screened and ranked the responses based on criteria listed in the RFQ, and as a result of that ranking five firms were shortlisted and invited to interview. Presentations were made by the various firms on June 29, 2012. Based on the presentations made, Teague Nall and Perkins, Inc. was chosen by the selection team as the firm with which to initiate contract negotiations. The proposed fee of $400,000.00 for the professional services on this project was set by staff and is thought to be sufficient to carry the contract through at least two fiscal years. The Professional Services Agreement attached to the ordinance includes a schedule of rates for the services associated with the contract that staff believes are representative. RECOMMENDATION Staff recommends approval of the Professional Services Agreement between the City of Denton and Teague Nall and Perkins, Inc. in the not-to-exceed amount of $400,000.00 for Indefinite Delivery Survey Services. Agenda Information Sheet September 11, 2012 Page 2 PRINCIPAL PLACE OF BUSINESS Teague Nall and Perkins, Inc. Denton, TX ESTIMATED SCHEDULE OF PROJECT This contract will become effective upon Council approval with services to be performed through September 30, 2013, or until the not to exceed amount of $400,000 has been expended. FISCAL INFORMATION -- or in the CIP projects on which Teague Nall and Perkins, Inc. is to be utilized. Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 4948 ORDINANCE NO. 2012-________ AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT FOR INDEFINITE DELIVERY SURVEY SERVICES ON A WORK ORDER BASIS FOR VARIOUS CITY OF DENTON DEPARTMENTS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4948AWARDED TO TEAGUE NALL AND PERKINS, INC. IN AN AMOUNT NOT-TO-EXCEED $400,000.00). WHEREAS, the City Council deems that it is in the public interest to engage the engineering firm of Teague Nall and Perkins, Inc. (TN&P), Denton, Texas to provide professional surveying and engineering services in support of the City of Denton, Texas; and WHEREAS, City staff has reported to the City Council that there is a substantial need for the above-referenced professional surveying services, and that limited City staff cannot adequately perform the specialized services and tasks with its own personnel; and WHEREAS, Chapter 2254 of the Texas Government Code, known as the nerally provides that a City may not select a provider of professional services on the basis of competitive bids, but must select the provider on the basis of demonstrated competence, knowledge, and qualifications, and for a fair and reasonable price; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1: The preamble to this ordinance is incorporated herewith by reference as a part of this ordinance. SECTION 2: The City Manager is hereby authorized by the City Council to execute Professional Services Agreement for Architect or EngineerAgreement Teague Nall & Perkins, Inc. (TN&P), Denton, Texas, for professional surveying and engineering services, for a fee of not-to-exceed $400,000; in substantially the form of the Agreement that is attached hereto and incorporated herewith by reference. SECTION 3: The award of this Agreement by the City is on the basis of the demonstrated competence, knowledge, and qualifications of TN&P and the demonstrated ability of TN&P to perform the services needed by the City for a fair and reasonable price. SECTION 4: The expenditure of funds as provided in the attached Agreement is hereby authorized. SECTION 5: This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ______ day of __________________, 2012. 1 ________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: __________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: ________________________________ 2-ORD-File 4948 2 Exhibit A AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Vance Kemler at 349-8044. ACM: Bryan Langley SUBJECT Consider adoption of an ordinance authorizing the City Manager to execute a Professional Services Agreement with CP&Y, Inc. and the City of Denton Solid Waste Division for Professional Engineering and Consulting Services; and providing an effective date (File 5045- awarded to CP&Y, Inc. in the amount of $135,000). The Public Utilities Board recommends approval (5-0). FILE INFORMATION Under this Professional Services Agreement, CP&Y, Inc. will assist the Solid Waste Department with general engineering services including design, development and evaluation of various solid waste projects. This will include the preparation of site plans, structural, architectural, mechanical, electrical and plumbing design and details as required to solicit bids or proposals for construction projects. CP&Y, Inc. will also provide assistance and support with registration, permitting and any other interaction with the Texas Commission on Environmental Quality (TCEQ). The Solid Waste Department has used CP&Y, Inc. on numerous solid waste projects; therefore they are familiar with the departmental issues concerning the TCEQ landfill permit registration, ies. The Solid Waste staff is not aware of any firms in Denton with the necessary expertise for this type of service. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On August 27, 2012, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. RECOMMENDATION Approve a Professional Services Agreement with CP&Y, Inc. in the amount of $135,000 for Engineering and Design Services for the City of Denton Solid Waste department. Agenda Information Sheet September 11, 2012 Page 2 PRINCIPAL PLACE OF BUSINESS CP&Y, Inc. Dallas, TX ESTIMATED SCHEDULE OF PROJECT This Agreement is for Professional Services to be performed during the 2012-2013 fiscal year. FISCAL INFORMATION These Professional Services will be funded from bond accounts 660067593.1360.21100 in the amount of $35,000 and 603130499.1355.3620 in the amount of $100,000. Requisition #109426 has been entered in the Purchasing software system. EXHIBITS Exhibit 1: Draft Public Utilities Board Minutes Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 5045 Exhibit 1 DRAFT MINUTES 1 PUBLIC UTILITIES BOARD 2 3 August 27, 2012 4 5 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas is 6 present, the Chair of the Public Utilities Board will thereafter convene into an open meeting on 7 Monday, August 27, 2012 at 9:00 a.m. in the Service Center Training Room, City of Denton 8 Service Center, 901-A Texas Street, Denton, Texas. 9 10 Present: Vice Chair Billy Cheek, Barbara Russell, Randy Robinson, Phil Gallivan 11 and Leonard Herring 12 13 Absent Excused: Chairman Dick Smith and John Baines 14 15 Ex Officio Members: Howard Martin, ACM Utilities 16 17 Absent: George Campbell, City Manager 18 CONSENT AGENDA: 19 20 21 1)Consider a recommendation for approval of a Professional Services Agreement between 22 Chiang, Patel, and Yerby, Inc. (CP&Y) and the City of Denton Solid Waste Department for 23 professional engineering consulting services in an amount not-to-exceed $135,000. 24 A motion to approve item 1 was made by Board Member Gallivan with a second by Board 25 Member Russell. The vote was 5-0. 26 27 28 Adjournment 10:27am ORDINANCE NO. 2012-________ AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT (PSA) WITH CP&Y, INC. AND THE CITY OF DENTON SOLID WASTE DIVISION FOR PROFESSIONAL ENGINEERING AND CONSULTING SERVICES; AND PROVIDING AN EFFECTIVE DATE (FILE 5045- AWARDED TO CP&Y, INC. IN THE AMOUNT OF $135,000). WHEREAS, the City Council deems that it is in the public interest to engage the engineering firm of CP&Y, Inc., Dallas, Texas to provide professional engineering consulting services for the City of Denton, Texas that are related to the Denton Solid Waste Division; and WHEREAS, the Public Utility Board of Denton considered this item at its August 27, 2012 meeting and recommended approval by a vote of 5-0; and WHEREAS, City staff has reported to the City Council that there is a substantial need for the above-referenced professional engineering services, and that limited City staff cannot adequately perform the specialized services and tasks with its own personnel; and WHEREAS, Chapter 2254 of the Texas Government Code, known as the provider of professional services on the basis of competitive bids, but must select the provider on the basis of demonstrated competence, knowledge, and qualifications, and for a fair and reasonable price; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1 The preamble to this ordinance is incorporated herewith by reference as a part of this ordinance. SECTION 2 The City Manager is hereby authorized by the City Council to execute AgreementCP&Y, Inc., Dallas, Texas, for professional engineering and design services related to professional services necessary for the Solid Waste Division, for a fee of not-to-exceed $135,000; in Agreement that is attached hereto which is incorporated herewith by reference. SECTION 3 The award of this Agreement by the City is on the basis of the demonstrated competence, knowledge, and qualifications of CP&Y, Inc. and the demonstrated ability of CP&Y, Inc. to perform the services needed by the City for a fair and reasonable price. 1 SECTION 4 The expenditure of funds as provided in the attached Agreement is hereby authorized. SECTION 5 This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ______ day of __________________, 2012. ________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: __________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: ________________________________ 3-ORD-File 5045 2 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Vance Kemler at 349-8044 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance approving the expenditure of funds for the purchase of LON GON Odor Control for the City of Denton Landfill from only one source in accordance with Texas Local Government Code 252.022, exempting such purchases from requirements of competitive bids; providing for the expenditure of funds therefor; and providing an effective date (File 4887-Purchase of Odor Control Chemicals for the City of Denton Landfill awarded to Enviro Chemical Research in the annual estimated amount of $50,000 for an estimated three year amount of $150,000). FILE INFORMATION The City of Denton owns and operates a 252 acre Type I Municipal Solid Waste (MSW) landfill which disposes of an average of 600 tons per day of MSW. The waste stream consists of approximately 80% commercial/industrial waste and 20% residential single family waste. The landfill was originally sited on city owned land just outside of the city limits. The site and surrounding area was annexed prior to opening the Landfill in 1985. Initially the surrounding of land. Today a large mobile home community is located immediately along south boundary, a multi-family living facility and golf course is adjacent to its southeastern border, and Mayhill Road runs along its western boundary. The Landfill site is co-located on a larger City owned tract of land that hou that co-composts dewatered wastewater treatment plant sludge (bio-solids) and wood waste. All of these facilities are potential sources of odors. Under the Texas Municipal Solid Waste regulations, 30 Texas Administrative Code 330.149, and the issued MSW permit, the facility is required to have an odor management plan. Senior management has worked to take a pro-active role in addressing odor complaints and reducing or eliminating the source of odor generation. Implementation of best management practices at the facilities has reduced the frequency of odor complaints but during certain periods of the year, the prevailing winds often change to a direction that blows odors to the more populated areas. During these periods of time, the Landfill operators are on the lookout for waste that characteristically may produce an odor (such as sludges, animal carcasses and wet restaurant waste) so they can immediately bury the potentially odiferous or noxious waste. Staff routinely utilizes odor control chemicals to prevent odors from migrating beyond the permit boundary. Agenda Information Sheet September 11, 2012 Page 2 FILE INFORMATION (CONTINUED) Currently staff is using an odor controlling product, LON GON from Enviro Chemical Research. LON GON is a concentrate diluted at a rate of 1:500 for application. The Landfill staff has tried many odor control products over the years and LON GON is the most effective. Other products have been used on a trial basis; however, they were ineffective because they did not neutralize the odor. The few products that did neutralize the odors were rejected because of complaints . Staff best manage odors on site. LON GON is a proprietary blend distributed exclusively by Enviro Chemical Research; therefore, Enviro chemical Research is the sole-source vendor for this product. Section 252.022 of the Texas Local Government Code provides that procurement of commodities and services that are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body. RECOMMENDATION Award to Enviro Chemical Research in the annual estimated amount of $50,000 for a three year estimated amount of $150,000. PRINCIPAL PLACE OF BUSINESS Enviro Chemical Research Cooper City, FL ESTIMATED SCHEDULE OF PROJECT The contract for this purchase of the Odor Control Chemicals will become effective upon Council approval with pricing to remain in effective through December 31, 2016. FISCAL INFORMATION This item will be purchased on an as needed basis from operating accounts 660300.6372 and 660993585.1365.30100. EXHIBITS Exhibit 1: Contract Exhibit 2: Sole Source Letter Exhibit 3: Draft Public Utilities Board Minutes Agenda Information Sheet September 11, 2012 Page 3 Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 4887 Exhibit 1 Exhibit 2 Exhibit 3 DRAFT MINUTES 1 PUBLIC UTILITIES BOARD 2 3 August 13, 2012 4 5 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas is 6 present, the Chair of the Public Utilities Board will thereafter convene into an open meeting on 7 Monday, August 13, 2012 at 9:03 a.m. in the Service Center Training Room, City of Denton 8 Service Center, 901-A Texas Street, Denton, Texas. 9 10 Present: Chairman Dick Smith, Billy Cheek, Barbara Russell, and Randy Robinson 11 12 Absent Excused: John Baines, Phil Gallivan, and Leonard Herring 13 14 Ex Officio Members: Howard Martin, ACM Utilities, George Campbell, City Manager 15 CONSENT AGENDA: 16 17 18 1)Consider a recommendation of an approval of a multi-year materials purchase agreement, not 19 to exceed $50,000 per year, of LON GON odor control by the City of Denton Landfill, which 20 is blended under a proprietary formula by Enviro Chemical Research in accordance with the 21 pertinent provisions of Chapter 252 of the Texas Local Government Code, exempting such 22 purchases from the requirements of competitive bidding. 23 A motion to approve item 1 was made by Board Member Robinson with a second by Board 24 Member Cheek. The vote was 4-0. 25 26 27 Adjournment 12:07pm ORDINANCE NO. ____________ AN ORDINANCE APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF LON GON ODOR CONTROL FOR THE CITY OF DENTON LANDFILL FROM ONLY ONE SOURCE IN ACCORDANCE WITH TEXAS LOCAL GOVERNMENT CODE 252.022, EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4887-PURCHASE OF ODOR CONTROL CHEMICALS FOR THE CITY OF DENTON LANDFILL AWARDED TO ENVIRO CHEMICAL RESEARCH IN THE ANNUAL ESTIMATED AMOUNT OF $50,000 FOR AN ESTIMATED THREE YEAR AMOUNT OF $150,000). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as hereby approved: FILE NUMBER VENDOR AMOUNT 4887 Enviro Chemical Research $2,747.25 per 55 gallon drum SECTION 2. The City Council hereby finds that this bid, and the award thereof, constitutes a procurement of items that are available from only one source, including, items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids. SECTION 3. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 4. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 4887 to the City Manager of the City of Denton, Texas, or his designee. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _________ day of ____________, 2012. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ______________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 5-ORD-File 4887 AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Elton Brock at 349-7133. ACM: Bryan Langley SUBJECT Consider adoption of an ordinance accepting competitive bids and awarding a three year contract for the purchase of Water and Sewer Supplies for the City of Denton Water/Wastewater Department and Project 380; providing for the expenditure of funds therefor; and providing an effective date (Bid 4973-Three Year Contract for Water and Sewer Warehouse Inventory and Project 380-Part A awarded by line item to the lowest responsible bidder meeting specification in the unit price amounts shown on Exhibit A for an annual estimated expenditure of $1,000,000 and a three year estimated total of $3,000,000, and Part B awarded to Fortiline Waterworks in the estimated amount of $530,563.12). BID INFORMATION Part A of this bid is for miscellaneous items that are stocked in the Warehouse for ease of accessibility to be used by the Water and Wastewater departments in their daily operations, and for repair and maintenance of their distribution and collection systems. Materials will be ordered on an as needed basis to maintain appropriate stocking levels. This contract will be in effect for three years upon award and may be renewed for two additional years if agreed by both parties. Part B of this bid is for the one time purchase of materials to be used for a specific project located at US Highway 380 and Western Boulevard. These items will be delivered directly to the jobsite. Staff is recommending award to one supplier to create efficiencies in ordering and shipments to the jobsite. Standard City of Denton purchasing procedures were used. Bid packets were posted on the internet and emailed to 79 prospective bidders. No local vendors responded. The bid tabulation for Part A is included as Exhibit 1. The bid tabulation for Part B is included as Exhibit 2. RECOMMENDATION Award a three year contract for Water and Sewer Warehouse Inventory to the lowest responsible bidder meeting specification in the unit price amounts shown on Exhibit A for an annual estimated expenditure of $1,000,000 and a three year estimated total of $3,000,000. No bids were received for Items 414-417 and 420, so they will not be awarded. Award a contract for Project 380 Part B to the lowest overall bidder meeting specification, Fortiline Waterworks in the estimated amount of $530,563.12. No bid was received from Fortiline Waterworks for Items 26 and 56 of Part B, so they will not be awarded. Agenda Information Sheet September 11, 2012 Page 2 PRINCIPAL PLACE OF BUSINESS Morrison Supply Company Texas Water Products Inc. Ferguson Waterworks Waxahachie, TX Fort Worth, TX McKinney, TX HD Supply Fortiline Waterworks Metron-Farnier LLC Dallas, TX Haltom City, TX Boulder, CO Badger Meter, Inc. PowerSeal Pipeline Products Milwaukee, WI Wichita Falls, TX ESTIMATED SCHEDULE OF PROJECT The initial term in Part A of this contract is for three (3) years ending September 11, 2015. The contract may be renewed for two additional, one year periods, if agreed upon in writing by both parties with all terms and conditions remaining the same. Part B (Highway 380 Project) is expected to begin October 2, 2012, with an estimated completion date of March 1, 2013. FISCAL INFORMATION The items in this bid will be funded out of the Warehouse Working Capital account and charged back to the using department. EXHIBITS Exhibit 1: Bid Tabulation Part A Exhibit 2: Bid Tabulation Part B Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-Bid 4973 ORDINANCE NO. __________ AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A THREE YEAR CONTRACT FOR THE PURCHASE OF WATER AND SEWER SUPPLIES FOR THE CITY OF DENTON WATER/WASTEWATER DEPARTMENT AND PROJECT 380; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (BID 4973-THREE YEAR CONTRACT FOR WATER AND SEWER WAREHOUSE INVENTORY AND PROJECT 380-PART A AWARDED BY LINE ITEM TO THE LOWEST RESPONSIBLE BIDDER MEETING SPECIFICATION IN THE UNIT PRICE AMOUNTS SHOWN ON EXHIBIT A FOR AN ANNUAL ESTIMATED EXPENDITURE OF $1,000,000 AND A THREE YEAR ESTIMATED TOTAL OF $3,000,000, AND PART B AWARDED TO FORTILINE WATERWORKS IN THE ESTIMATED AMOUNT OF $530,563.12). WHEREAS, the City has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described bids are the lowest responsible bids for the materials, equipment, supplies or 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. The numbered items in the following numbered bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" on file in the office of the City Purchasing Agent, are hereby accepted and approved as being the lowest responsible bids for such items: BID ITEM NUMBER NUMBER VENDOR AMOUNT 4973 1, 3-15, 21-24, 26-37, 40, 44-47, 61, Morrison Supply Company Exhibit A - 80-91, 95-96, 99, 103-105, 107-115, Part A 125-129, 134-135, 138, 140, 142, 147, 152-155, 161, 163, 166-167, 173-184, 186-219, 222-223, 227-228, 257, 275, 278-280, 282, 284, 292, 295, 306-308, 315-316, 323, 326- 327, 329, 330, 332-350, 364-376, 378, 380-387, 403, 407-408, 410- 412, 419, 421-423 4973 2, 116, 277, 304-305, 363, 377, 388-Texas Water Products, Inc. Exhibit A - 390, 404-405 Part A BID ITEM NUMBER NUMBER VENDOR AMOUNT 4973 25, 38-39, 69, 73, 75, 106, 117-118, Ferguson Waterworks Exhibit A - 132-133, 141, 146, 148, 150, 157-Part A 160, 220-221, 224-226, 229-230, 232-251, 258-267, 269, 271-273, 276, 281, 283, 285-287, 294, 302- 303, 310, 312 4973 136-137, 139, 143-145, 149, 151, HD Supply Exhibit A - 293, 394-396 Part A 4973 16-19, 41-43, 58-60, 62-68, 70-72, Fortiline Waterworks Exhibit A - 74, 76-79, 94, 97, 119-124, 130-131, Part A 162, 164-165, 168-172, 185, 231, 252-256, 268, 270, 274, 288-291, 313-314, 319-322, 324-325, 328, 331, 351-362, 406, 409, 413, 418 4973 Fortiline Waterworks Exhibit A - Part B: 1-25, 27-55 Part B 4973 398-401 Metron-Farnier LLC Exhibit A - Part A 4973 391-393, 397, 402 Badger Meter, Inc. Exhibit A - Part A 4973 48-57, 92, 98, 100-102, 296-301, PowerSeal Pipeline Exhibit A - 309, 311, 317-318 Products Part A SECTION 2. 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 pur- chase 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 3. Should the City and the winning bidder(s) 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 a written contract in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Bid Proposal and related documents and to extend that contract as determined to be advantageous to the City of Denton. SECTION 4. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under Bid 4973 to the City Manager of the City of Denton, Texas, or his designee. SECTION 5. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this day of , 2012. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: _________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 4-ORD-BID 4973 IFB # 4973 Exhibit A- Part B DATE: 7/17/2012 Description: 3 Year contract for Water & Sewer Inventory & Project 380- Exhibit A Part B Item Est. UoMDescriptionVENDOR No.Qty. Fortiline Waterworks Principle Place of Business: Haltom City, TX 130EA$22.50 BOX, VALVE LID 230EABOX, VALVE BASE$44.90 330EA$38.70 BOX, VALVE TOP SECTION 10" 46EASLEEVE, TAPPING 12" X 12" SST MJ$1,139.10 53EA$370.40 SLEEVE, SOLID DI MJ 16" LONG 63EASLEEVE, SOLID DI MJ 20" LONG$520.70 715EA$75.10 EBAA MEG-A-LUG GLAND KIT 12" C-900 818EAEBAA MEG-A-LUG GLAND KIT 6" C-900$30.40 910EA$43.20 EBAA MEG-A-LUG GLAND KIT 8" C-900 109EAEBAA MEG-A-LUG GLAND KIT 16" DI CL52$120.00 1181EA$194.70 EBAA MEG-A-LUG GLAND KIT 20" DI CL52 122EABOLT/GASKET SET-12" FLANGE PACK$18.40 138EA$8.10 BOLT/GASKET SET-6" FLANGE PACK 141EABOLT/GASKET SET-8" FLANGE PACK$8.75 151EA$36.85 BOLT/GASKET SET-16" FLANGE PACK 162EAVALVE, GATE FL x MJ 12"$1,172.00 1712EA$390.85 VALVE, GATE FL x MJ 6" 182EAVALVE, GATE FL x MJ 8"$622.50 191EA$4,117.30 VALVE,GATE FL X MJ 16" 208EAVALVE, GATE MJ 12"$1,228.30 212EA$970.70 VALVE, GATE MJ 8" 222EAVALVE, GATE MJ 16"$4,117.25 233EA$8,093.70 VALVE, GATE MJ 20" 241EAPLUG, VALVE MJ 6" $37.70 251EA$131.00 PLUG, VAVLE MJ 12" 27150RLPOLY TAPE 2" X 100' 10 MIL$3.95 2827RL$100.55 ENCASEMENT, LDPE 52" X 200' ROLL 2927RLENCASEMENT, HDPE 52" X 200' ROLL$374.00 30975EA$9.75 RACI SPACER F41 3130EA16" STAINLESS CASING SPACER 30"$99.00 3230EA$148.50 20" STAINLESS CASING SPACER 40" 331EAREDUCER 16" X 12" MJ$554.90 341EA$683.00 REDUCER 20" X 12" MJ 351EAREDUCER, 20" X 16" SEB$733.60 O 366EA$274.55 BEND, 45 DI 12" MJ O 372EA$326.55 BEND, 90 DI 12" MJ O 3810EA$92.50 BEND, 45 DI 6" MJ O 396EA$135.80 BEND, 45 DI 8" MJ 406EA$950.80 BEND, 11 1/4 DI 20" MJ O 416EA$947.45 BEND, 22 1/2 DI 20" MJ O 4210EA$774.50 BEND, 45 DI 20" MJ 4316EAGLAND KIT MJ 12"$40.50 4430EA$20.26 GLAND KIT MJ 6" 4512EAGLAND KIT MJ 8"$26.55 461EATEE, 16x6x16 (MJxFLxMJ) DI$1,020.15 471EA$1,097.70 TEE, 16x12x16 (MJxFLxMJ) DI 4811EATEE, 20x6x20 (MJxFLxMJ) DI$1,780.10 492EA$1,407.90 TEE, 20x8x20 (MJxFLxMJ) DI 502EATEE, 20x12x20 (MJxFLxMJ) DI$1,621.80 IFB # 4973 Exhibit A- Part B DATE: 7/17/2012 Description: 3 Year contract for Water & Sewer Inventory & Project 380- Exhibit A Part B Item Est. UoMDescriptionVENDOR No.Qty. Fortiline Waterworks Principle Place of Business: Haltom City, TX 511EA$1,712.15 TEE, 20X16X20 (MJxFLxMJ) DI 5220JTPIPE, PVC, WATER, 12", 20' JT, DR-18$270.00 5325JT$74.00 PIPE, PVC, WATER, 6", 20' JT, DR-18 5484JTPIPE,DI,WATER, 16", 18' JT, CL52$865.98 55250JT$1,101.60 PIPE,DI,WATER, 20", 18' JT, CL52 PROJECT 380 TOTAL $530,563.12 2 Weeks-*Large Delivery can be made within ______________ weeks after receipt of order. valves & fittings can take 21 weeks. N/A Bidder is an authorized bidder, by the manufacturer, and is authorized to sell to the City of Denton? Yes No N/A Addendum # 1 YES Addendum # 2 NO Payment Term Discounts Payment terms for the City of Denton are typically 30 days. Invoice Paid in 20 days 0.00% Invoice Paid in 15 days 0.00% Invoice Paid in 10 days 0.00% *Prices shall be bid FOB Destination AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: Planning and Development, Building Inspections Division ACM: John Cabrales SUBJECT Consider adoption of an ordinance of the City of Denton, Texas amending Chapter 28 of the Code of Ordinances by revising the 2009 International Energy Conservation Code, as published by the International Code Council, by establishing local amendments thereto; establishing a penalty of a fine not to exceed $2,000.00 for violations hereto; providing for severability; repealing all ordinances in conflict herewith; and providing an effective date. BACKGROUND The 2009 International Energy Conservation Code (IECC) was published by the International Code Council in early 2009. Subsequent to its publication, the Energy Board of the North Central Texas Council of Governments conducted a review of the Code. As a result of their review, the Energy Board recommended several amendments which were then presented the municipalities within the 16-county north central Texas region for consideration of adoption. The City of Denton adopted the 2009 Energy Code, as amended, on May 4, 2010 before the C.O.G. amendments were published. The proposed amendments to the current Energy Code will improve the ability of this code, for example: by deleting the complicated requirements for residential alterations; requiring that builders and designers submit energy compliance reports that are created by certified professional; and requiring commercial projects to be certified by energy professionals before receiving final City approval. This proposed revision of the Energy Code will also include a requirement for all one and two family dwellings to demonstrate surpassing the current Code requirement by a minimum of ten percent (10%). This 10% over Code The City of Denton Building Inspections staff began reviewing the C.O.G. amendments in early 2011 with the goal of adopting the amended ordinance by early 2012. On January 31, 2012, staff presented the draft amendments of the 2009 Energy to a group of approximately 50 stakeholders including builders, contractors, plumbers, mechanical contractors, architects, and engineers. The presentation highlighted the most significant changes from the current version of the 2009 IECC to the proposed amended version of the 2009 IECC which were received well by the attendants. Agenda Information Sheet September 11, 2012 Page 2 A copy of the proposed amended 2009 Energy Code is posted on the Building Inspections webpage. On February 16, 2012 the amended Code was presented to the Health and Building Standards Commission (HaBSCO). The HaBSCo commissioners voted unanimously to recommend adoption of the amended Energy Code to the City Council. On March 6, 2012 the draft ordinance of the proposed changes to the 2009 Energy Code was presented to the City Council at a work session. The City Council requested that a presentation of the proposed ordinance be made to the Chamber of Commerce. On March 28, 2012 the draft ordinance of the proposed changes to the 2009 Energy Code was presented to the Chamber of Commerce. As a result of the meeting with the Chamber of Commerce, the members present during the presentation had some concerns with the proposed code adoptions and these concerns are reflected in the following five questions: 1.What other cities in North Texas have adopted the 2009 Building Code amendments? 2.What other cities North Texas are on a newer code; 2012, 2015? 3.What other cities in North Texas adopted a 10% or more increase in the energy code? 4.What is the increased effective cost of adopting the changes to the builder? 5.What is the effective cost of implementing the independent energy inspections over adding staff to complete the final energy inspections? have been delivered to the Chamber of Commerce. We have not received any additional responses from the Chamber. On August 14, 2012, in a Work Session, staff presented the responses given to the Chamber of Commerce, for the five questions listed above. All other questions from the Council were answered by City staff. FISCAL IMPACT Staff does not anticipate any fiscal impact to the City as a result of adopting this Code. OPTIONS 1.Postpone consideration and provide staff with further direction. 2.Adopt the 2009 IECC as recommended. RECOMMENDATION Staff recommends that the City Council adopt the Amended 2009 International Energy Conservation Code. Agenda Information Sheet September 11, 2012 Page 3 EXHIBITS February 16, 2012 HaBSCo Commission Minutes Chamber of Commerce Questions and Staff Responses Proposed Amended 2009 International Energy Conservation Code Ordinance Prepared by, Kurt Hansen Building Official Respectfully submitted: Mark Cunningham, AICP, CPM Minutes Health and Building Standards Commission February 16, 2012 Members present: Janay Tieken, Jim Strange, Jeff Wawro, Rod Reeves, Rosanne Ciccia and Gary Robinson Members absent: David Hoenig Staff members present: Kurt Hansen, Glenda Gailliard, Zackery Loiselle, Dean Bray and Chad Weldon Welcome and Call to Order Kurt Hansen, Building Official, called the meeting to order at 4:05p.m. Consider approval of the minutes of May 19, 2011 Jim Strange made a motion to approve the minutes of May 19, 2011. Seconded by Rosanne Ciccia. Motion carried 6-0. Elect a chair for the Health and Building Standards Commission Kurt requested that all members introduce themselves. Janay Tieken moved that Jim strange be the new Chairman and Jeff Wawro be the Vice Chairman. Seconded by Rosanne Ciccia. Review the requirements for C Meetings Training, and City of Denton Handbook for Boards, Commissions, and Council Committees Jennifer Walters came forward and gavea brief description and overview of each. There was a brief question and answer session. Hold a discussion concerning the adoption of the 2009 International Fire Code as amended by the City and make recommendation to the City Council. Dean Bray (Fire Protection Engineer Associate) and Chad Weldon (Assistant Fire Marshall) came forward. Chad gave a slide presentation and briefed the Commissioners on the adoption of the 2009 International Fire Code. There was a brief question and answer session. Janay Tieken made a motion to recommend to the City Council the adoption of the 2009 International Fire code as amended by the City. Seconded by Rod Reeves. Motion carrie 6-0. Hold a discussion concerning the adoption of the 2009 International Building Code as amended by the City, 2009 International Residential Code as amended by the City, 2009 International Plumbing Code as amended by the City, 2009 International Mechanical Code as amended by the City, and the 2009 International Fuel Gas Code as amended by the City and make recommendation to the City Council. Kurt Hansen, came forward and presented a slide presentation and briefed the Commissioners on the adoption of the 2009 International Building Code as amended by the City, 2009 International Residential Code as amended by the City, 2009 International Plumbing Code as amended by the City, 2009 International Mechanical Code as amended by the City, and the 2009 International Fuel Gas Code as amended by the City. There was a brief question and answer session. Rosanne Ciccia made a motion to recommend to the City Council the adoption of the 2009 IBC, the 2009 IRC, the 2009 IPC, the 2009 IMC, and the 2009 IFGC, as amended by the City. Seconded by Janay Tieken. Motion carrie 6-0. Hold a discussion concerning the adoption of the 2011 National Electrical Code as amended by the City and make recommendation to the City Council. Kurt Hansen, came forward and presented a slide presentation and briefed the Commissioners on the adoption of the 2011 National Electrical Code as amended by the City. There was a brief question and answer session. Jeff Wawro made a motion to recommend to the City Council the adoption of the delete the requirement 2011 National Electrical Code with the consideration to to install Arc-Fault Circuit-Interrupter protection for all 15 and 20 ampere branch circuits in the rooms not protected with a Ground-Fault Circuit- Interrupter protection device of all dwelling units and maintain the current code requirement. Seconded by Rod Reeves. Motion carried 6-0. Hold a discussion concerning the adoption of the amendments to the 2009 International Energy Conservation Code by the City and make recommendation to the City Council. There was a brief question and answer session. Janay Tieken made a motion to recommend to the City Council the adoption the new amendments to the 2009 International Energy Conservation Code. Seconded by Rosanne Ciccia. Motion carried 6-0 Hold a discussion about the HaBSCo meeting schedule for March 15, 2012. The next meeting will be held March 15, 2012. Under Section 551.042 of the Texas Open Meeting Act. Hold a discussion and set the date for future CAAB meetings. Under Section 551.042 of the Texas Open Meetings Act, Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. Adjourn There being no further business the meeting adjourned at 5:24 p.m. ________________________________ Jim Strange, HaBSCo Chairman ________________________________ Jeff Wawro, Co-Chairman ________________________________ Glenda Gailliard, Permit Technician Supervisor, City of Denton Chamber of Commerce Questions with Staff Responses KURT HANSEN: 2009 Building Codes July 13, 2012 1. What other cities in North Texas have adopted the 2009 Buildi Answer: See chart below. Note: Out of the 23 cities which responded to my survey, 15 Cities have already adopted the 2 Building Codes. 2. What other cities in North Texas are on a newer code; 2012, 2015? Answer: See chart below. Note: There are currently no cities on the 2012 Building Codes, however, 11 of these cities are scheduled to adopt the 2012 Building Codes within the first 6 mo to the fact that the NCTCOG amendments will not be published unt 3. What other cities in North Texas adopted a 10% or more increase in the energy code? Answer: See chart below. Note: Along with the City of Denton, only 2 other cities (Frisco and P stringent than the 2009 Energy Code. City Adopted the 2009 Planned Adoption Surpass the IECC Require 3 rd Party Code of 2012 Requirements Energy Inspectors for Res & Comm Rockwall 2-6-2012 3 years No Yes, both Allen 5-24-2011 ? No Yes, both Garland 1-2-2012 ? No In-house Benbrook 12-2012 1-1-2013 No Res, no Comm, yes Bedford 3-22-2011 ? No Yes, both Frisco IECC only, 5-2012 9-2012 Energy Star only Res, yes Comm, for all others considering IECC no 2009 +15% Lancaster No ? No Yes, both Carrollton 2-11-11 1-1-2013 No In-house Grand Prairie 2-2011 No, 2015 No Yes, both Celina No ? No Yes, both Irving No, May or June No, 2015 No No, just Energy 2012 Star Waco 1-1-2010 1-1-2013 No No, but accept their reports McKinney No Fall, 2012 No Yes, both Arlington 5-24-2012 ? No In-house Plano1-20111-2013Yes, 15% aboveYes, both Wylie No 4-2013 No Yes, both University Park 2010 ? No In-house Prosper No 3-2013 No Yes, both Hurst 04-2011 No, 2015 No In-house Coppell 1-11-12 1-2013 No Dallas No 3-2013 No Yes, both Colleyville 10-2012 ? No Yes, both Southlake 4-2011 7-2013 No No, but accept their reports 4. What is the increased effective cost of adopting the changes Answer: For a typical new home, an added cost of approximately $425.00 Note: As indicated on the chart below, by adopting the 2009 Building Codes along with the 2011 Electrical Code, the major additional requirements for a new hom detector, adding more arc fault circuit interrupters, and also a 2005 NEC or 2006 I-2011 NEC or 2009 Approximate Cost Code Requirement Extended Cost Codes I-Codes Increases Carbon monoxide No requirement Required $50 each $100.00 Detector Arc Fault Circuit In sleeping rooms In all rooms $45 each $315.00 Interrupters only (approximately without GFCI (approximately 7 3 AFCIs) protection more AFCIs) Tamperproof No Requirement In all 15 & 20 amp $1.25 each $12.50 Receptacles (approximately 25 wall receptacles (approximately 25 receptacles @ $0.75 receptacles at and increase of $.50 each) each) Total Increase $427.50 5. What is the effective cost of implementing the independent in adding staff to complete the inspections? Answer: Before I address the cost of adding staff to perform final energy inspections, I will share rd my findings in regards to hiring a 3 party energy inspection company to perform energy inspections. The effective cost of a final energy inspection will vary from p depending on the size and the energy needs of each project. However, from my resea rd three local 3 party energy inspection companies, costs average approximately $0.10 per square foot for a 5,000 Sq Ft project, or about $500.00. This cost includes the preliminary ComCheck report and a full final inspection. Also, the cost per square foot does decreases as the project increases in size. Now, what would be the cost of hiring additional staff to perfor inspections? The annual cost for a Commercial Building Inspector, plus benefits, plus a vehicle is approximately $95,000. In the past year, the city inspectors per270 commercial and commercial alteration energy inspections. By divi270 inspections, the average cost per energy inspection would be approximately $350.00. I could add an additional permit fee of $350.00 on each commercial project or I could look at a price per sq ft. The price per sq ft would be somewhere around 7 cents, and so for example, at 7 cents per sq ft, an energy inspection on a 5,000 sq ft project would c50.00. In conclusion, with the addition of a Commercial Building Inspec would be able to do a thorough energy inspection for each commeralteration project. Note: Remember, this proposal is only for Commercial and Commercial Alteration p projects are required to have a duct and a house tightness test providing this information to the inspectors. With the current staff of inspectors and the current workload, t thoroughly as possible, the final state of the compliance of these projects with the requirements of the Energy Code. Since verifying a projects compliance with the Energy Code is not typically a life issue, my current staff does their best, with the resources available; to see that energy requirements are met. With each new addition of the Energy Code, the requirements are g more stringent and more complicated. As you can see from the first chart above, thirteen (more than half) of the twenty three rd cities surveyed require verification from 3 party energy inspections for both residential and commercial properties; only nine of the twenty three cities surveyed perform their own energy ins or they rd accept the reports from 3 party energy inspectors. I think that in the near future, more and more rd Cities will be requiring 3 party verification, or they will be hiring highly trained and skilled energy inspectors to perform all their energy inspections. AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: Planning and Development, Building Inspections Division ACM: John Cabrales SUBJECT Consider adoption of an ordinance of the City of Denton, Texas amending sections 28-27, 28-28, 28-33, 28-34, 28-123, 28-124, 28-144, 28-145, 28-251, and 28-252 of the Code of Ordinances of the City of Denton, Texas. To provide for the adoption of the 2009 International Building Code, 2009 International Residential Code for one and two family dwellings, 2009 International Fuel Gas Code, 2009 International Plumbing Code, and the 2009 International Mechanical Code all published by the International Code Council, regulating and governing the conditions and maintenance of all property, buildings and structures; by providing the standards for supplied utilities and facilities and other physical things and conditions essential to ensure that structures are safe, sanitary and fit for occupancy and use; providing for the condemnation of buildings and structures unfit for human occupancy and use and the demolition of such structures, providing for the regulation and governing of the construction, altering, movement, enlargement, replacement, repair, equipment location, removal and demolition of detached one and two family dwellings and multiple single family dwellings (townhouses) not more than three stories in height with separate means of egress; providing the regulation and governing of the design construction, quality of materials, erection, installation, alteration, repairs, location, relocation, replacement, addition to, use or maintenance of plumbing and mechanical systems in the City of Denton, Texas; providing for the regulation and governing of fuel gas systems and gas fired appliances; providing for the issuance of permits and collection of fees thereof; providing for amendments thereto; providing for a penalty for violation of a fine not to exceed $2,000.00; providing for a severability clause; repealing all ordinances in conflict therewith; and providing for an effective date. BACKGROUND The current 2006 Building Codes, as amended, were adopted on February 3, 2009. The 2009 International Building Codes were published by the International Code Council (ICC) early in 2009. After its publication, the various building code boards of the North Central Texas Council of Governments (COG) began their review of the Codes. Subsequent to their review, the Boards recommended several amendments to the Codes. The recommended COG amendments were then published to the municipalities within this 16-county North Central Texas region for consideration of adoption. The City of Denton Building Inspections staff began reviewing the COG amendments early in 2011 with the goal of adoption in early 2012. On January 31, 2012, the amended 2009 International Building Codes were presented to approximately 50 area professionals including builders, contractors, plumbers, mechanical contractors, architects, and engineers. The Agenda Information Sheet September 11, 2012 Page 2 presentation highlighted the most significant changes from the 2006 Codes to the 2009 version of the Building Codes, which were received well by the attendants. Copies of the proposed 2009 Building Code are posted on the Building Inspections webpage. On February 16, 2012 the draft ordinance of the 2009 Building Codes was presented to the Health and Building Standards Commission (HaBSCo). The HaBSCo commissioner voted unanimously to recommend adoption. On March 6, 2012 the draft ordinance of the 2009 Building Codes was presented to the City Council at a work session. The City Council requested that a presentation of the proposed ordinance be made to the Chamber of Commerce. On March 28, 2012 the draft ordinance of the 2009 Building Codes was presented to the Chamber of Commerce. As a result of the meeting with the Chamber of Commerce, the members present during the presentation had some concerns with the proposed code adoptions and these concerns are reflected in the following five questions: 1.What other cities in North Texas have adopted the 2009 Building Code amendments? 2.What other cities North Texas are on a newer code; 2012, 2015? 3.What other cities in North Texas adopted a 10% or more increase in the energy code? 4.What is the increased effective cost of adopting the changes to the builder? 5.What is the effective cost of implementing the independent energy inspections over adding staff to complete the final energy inspections? The answers to these questions have been delivered to the Chamber of Commerce and made Chamber. On August 14, 2012, in a Work Session, staff presented the responses, given to the Chamber of Commerce, for the five questions listed above. All other questions from the Council were answered by City staff. FISCAL IMPACT Staff does not anticipate any fiscal impact to the City as a result of adopting this Code. OPTIONS 1.Postpone consideration and provide staff with further direction. 2.Adopt the 2009 International Building Codes as recommended. RECOMMENDATION Staff recommends that the City Council adopt the 2009 International Building Code, Residential Code, Plumbing Code, Mechanical Code, and the Fuel Gas Code along with staff recommended amendments. Agenda Information Sheet September 11, 2012 Page 3 EXHIBITS February 16, 2012 HaBSCo Commission Minutes Chamber of Commerce Questions and Staff Responses The Proposed 2009 Building Code Ordinance Prepared by, Kurt Hansen. Building Official Respectfully submitted: Mark Cunningham, AICP, CPM Minutes Health and Building Standards Commission February 16, 2012 Members present: Janay Tieken, Jim Strange, Jeff Wawro, Rod Reeves, Rosanne Ciccia and Gary Robinson Members absent: David Hoenig Staff members present: Kurt Hansen, Glenda Gailliard, Zackery Loiselle, Dean Bray and Chad Weldon Welcome and Call to Order Kurt Hansen, Building Official, called the meeting to order at 4:05p.m. Consider approval of the minutes of May 19, 2011 Jim Strange made a motion to approve the minutes of May 19, 2011. Seconded by Rosanne Ciccia. Motion carried 6-0. Elect a chair for the Health and Building Standards Commission Kurt requested that all members introduce themselves. Janay Tieken moved that Jim strange be the new Chairman and Jeff Wawro be the Vice Chairman. Seconded by Rosanne Ciccia. Review the requirements for C Meetings Training, and City of Denton Handbook for Boards, Commissions, and Council Committees Jennifer Walters came forward and gavea brief description and overview of each. There was a brief question and answer session. Hold a discussion concerning the adoption of the 2009 International Fire Code as amended by the City and make recommendation to the City Council. Dean Bray (Fire Protection Engineer Associate) and Chad Weldon (Assistant Fire Marshall) came forward. Chad gave a slide presentation and briefed the Commissioners on the adoption of the 2009 International Fire Code. There was a brief question and answer session. Janay Tieken made a motion to recommend to the City Council the adoption of the 2009 International Fire code as amended by the City. Seconded by Rod Reeves. Motion carrie 6-0. Hold a discussion concerning the adoption of the 2009 International Building Code as amended by the City, 2009 International Residential Code as amended by the City, 2009 International Plumbing Code as amended by the City, 2009 International Mechanical Code as amended by the City, and the 2009 International Fuel Gas Code as amended by the City and make recommendation to the City Council. Kurt Hansen, came forward and presented a slide presentation and briefed the Commissioners on the adoption of the 2009 International Building Code as amended by the City, 2009 International Residential Code as amended by the City, 2009 International Plumbing Code as amended by the City, 2009 International Mechanical Code as amended by the City, and the 2009 International Fuel Gas Code as amended by the City. There was a brief question and answer session. Rosanne Ciccia made a motion to recommend to the City Council the adoption of the 2009 IBC, the 2009 IRC, the 2009 IPC, the 2009 IMC, and the 2009 IFGC, as amended by the City. Seconded by Janay Tieken. Motion carrie 6-0. Hold a discussion concerning the adoption of the 2011 National Electrical Code as amended by the City and make recommendation to the City Council. Kurt Hansen, came forward and presented a slide presentation and briefed the Commissioners on the adoption of the 2011 National Electrical Code as amended by the City. There was a brief question and answer session. Jeff Wawro made a motion to recommend to the City Council the adoption of the delete the requirement 2011 National Electrical Code with the consideration to to install Arc-Fault Circuit-Interrupter protection for all 15 and 20 ampere branch circuits in the rooms not protected with a Ground-Fault Circuit- Interrupter protection device of all dwelling units and maintain the current code requirement. Seconded by Rod Reeves. Motion carried 6-0. Hold a discussion concerning the adoption of the amendments to the 2009 International Energy Conservation Code by the City and make recommendation to the City Council. There was a brief question and answer session. Janay Tieken made a motion to recommend to the City Council the adoption the new amendments to the 2009 International Energy Conservation Code. Seconded by Rosanne Ciccia. Motion carried 6-0 Hold a discussion about the HaBSCo meeting schedule for March 15, 2012. The next meeting will be held March 15, 2012. Under Section 551.042 of the Texas Open Meeting Act. Hold a discussion and set the date for future CAAB meetings. Under Section 551.042 of the Texas Open Meetings Act, Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. Adjourn There being no further business the meeting adjourned at 5:24 p.m. ________________________________ Jim Strange, HaBSCo Chairman ________________________________ Jeff Wawro, Co-Chairman ________________________________ Glenda Gailliard, Permit Technician Supervisor, City of Denton Chamber of Commerce Questions with Staff Responses KURT HANSEN: 2009 Building Codes July 13, 2012 1. What other cities in North Texas have adopted the 2009 Buildi Answer: See chart below. Note: Out of the 23 cities which responded to my survey, 15 Cities have already adopted the 2 Building Codes. 2. What other cities in North Texas are on a newer code; 2012, 2015? Answer: See chart below. Note: There are currently no cities on the 2012 Building Codes, however, 11 of these cities are scheduled to adopt the 2012 Building Codes within the first 6 mo to the fact that the NCTCOG amendments will not be published unt 3. What other cities in North Texas adopted a 10% or more increase in the energy code? Answer: See chart below. Note: Along with the City of Denton, only 2 other cities (Frisco and P stringent than the 2009 Energy Code. City Adopted the 2009 Planned Adoption Surpass the IECC Require 3 rd Party Code of 2012 Requirements Energy Inspectors for Res & Comm Rockwall 2-6-2012 3 years No Yes, both Allen 5-24-2011 ? No Yes, both Garland 1-2-2012 ? No In-house Benbrook 12-2012 1-1-2013 No Res, no Comm, yes Bedford 3-22-2011 ? No Yes, both Frisco IECC only, 5-2012 9-2012 Energy Star only Res, yes Comm, for all others considering IECC no 2009 +15% Lancaster No ? No Yes, both Carrollton 2-11-11 1-1-2013 No In-house Grand Prairie 2-2011 No, 2015 No Yes, both Celina No ? No Yes, both Irving No, May or June No, 2015 No No, just Energy 2012 Star Waco 1-1-2010 1-1-2013 No No, but accept their reports McKinney No Fall, 2012 No Yes, both Arlington 5-24-2012 ? No In-house Plano1-20111-2013Yes, 15% aboveYes, both Wylie No 4-2013 No Yes, both University Park 2010 ? No In-house Prosper No 3-2013 No Yes, both Hurst 04-2011 No, 2015 No In-house Coppell 1-11-12 1-2013 No Dallas No 3-2013 No Yes, both Colleyville 10-2012 ? No Yes, both Southlake 4-2011 7-2013 No No, but accept their reports 4. What is the increased effective cost of adopting the changes Answer: For a typical new home, an added cost of approximately $425.00 Note: As indicated on the chart below, by adopting the 2009 Building Codes along with the 2011 Electrical Code, the major additional requirements for a new hom detector, adding more arc fault circuit interrupters, and also a 2005 NEC or 2006 I-2011 NEC or 2009 Approximate Cost Code Requirement Extended Cost Codes I-Codes Increases Carbon monoxide No requirement Required $50 each $100.00 Detector Arc Fault Circuit In sleeping rooms In all rooms $45 each $315.00 Interrupters only (approximately without GFCI (approximately 7 3 AFCIs) protection more AFCIs) Tamperproof No Requirement In all 15 & 20 amp $1.25 each $12.50 Receptacles (approximately 25 wall receptacles (approximately 25 receptacles @ $0.75 receptacles at and increase of $.50 each) each) Total Increase $427.50 5. What is the effective cost of implementing the independent in adding staff to complete the inspections? Answer: Before I address the cost of adding staff to perform final energy inspections, I will share rd my findings in regards to hiring a 3 party energy inspection company to perform energy inspections. The effective cost of a final energy inspection will vary from p depending on the size and the energy needs of each project. However, from my resea rd three local 3 party energy inspection companies, costs average approximately $0.10 per square foot for a 5,000 Sq Ft project, or about $500.00. This cost includes the preliminary ComCheck report and a full final inspection. Also, the cost per square foot does decreases as the project increases in size. Now, what would be the cost of hiring additional staff to perfor inspections? The annual cost for a Commercial Building Inspector, plus benefits, plus a vehicle is approximately $95,000. In the past year, the city inspectors per270 commercial and commercial alteration energy inspections. By divi270 inspections, the average cost per energy inspection would be approximately $350.00. I could add an additional permit fee of $350.00 on each commercial project or I could look at a price per sq ft. The price per sq ft would be somewhere around 7 cents, and so for example, at 7 cents per sq ft, an energy inspection on a 5,000 sq ft project would c50.00. In conclusion, with the addition of a Commercial Building Inspec would be able to do a thorough energy inspection for each commeralteration project. Note: Remember, this proposal is only for Commercial and Commercial Alteration p projects are required to have a duct and a house tightness test providing this information to the inspectors. With the current staff of inspectors and the current workload, t thoroughly as possible, the final state of the compliance of these projects with the requirements of the Energy Code. Since verifying a projects compliance with the Energy Code is not typically a life issue, my current staff does their best, with the resources available; to see that energy requirements are met. With each new addition of the Energy Code, the requirements are g more stringent and more complicated. As you can see from the first chart above, thirteen (more than half) of the twenty three rd cities surveyed require verification from 3 party energy inspections for both residential and commercial properties; only nine of the twenty three cities surveyed perform their own energy ins or they rd accept the reports from 3 party energy inspectors. I think that in the near future, more and more rd Cities will be requiring 3 party verification, or they will be hiring highly trained and skilled energy inspectors to perform all their energy inspections. AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: Planning and Development, Building Inspections Division ACM: John Cabrales SUBJECT Consider adoption of an ordinance amending article III of Chapter 28 of the Code of Ordinances of the City of Denton, TElectrical CNational Electrical Code with certain amendments and providing for the adoption of the 2011 National Electrical Code with certain deletions and amendments; providing for a penalty in the amount of $2000.00 for violations thereof; and providing for an effective date. BACKGROUND The current 2005 National Electrical Code as amended was adopted on February 7, 2006. The 2011 National Electrical Code was published by the National Fire Protection Association early 2010. Subsequent to its publication, the Electrical Board of the North Central Texas Council of Governments conducted a review of the Code. As a result of their review, the Electrical Board recommended several amendments to the codes. The recommended C.O.G. amendments were then presented to the municipalities within the 16-county north central Texas region for consideration for adoption. The City of Denton Building Inspections staff began reviewing the C.O.G. amendments early in 2011 with the goal of adoption in early 2012. On January 31, 2012, the amended 2011 electrical code was presented to approximately 50 area professionals including builders, contractors, plumbers, mechanical contractors, architects, and engineers. During the presentation, staff highlighted the most significant changes from the 2005 electrical code to the 2011 version of the electrical code. The presentation information was received well by those in attendance. A copy of the proposed 2011 Electrical Code adoption ordinance is posted on the Building Inspections webpage. On February 16, 2012, the amended 2011 National Electrical Code was presented to the Health and Building Standards Commission (HaBSCo). The HaBSCo commissioners voted unanimously to recommend adoption of the 2011 Code as amended to the City Council; however, the commissioners suggested to delete the requirement to install Arc-Fault Circuit- Interrupter protection for all 15 and 20 ampere branch circuits in the rooms not protected with a Ground-Fault Circuit-Interrupter protection device of all dwelling units. However, the State of as the "minimum standard" for all -ride this recommendation from the Health and Building Standards Commission. Agenda Information Sheet September 11, 2012 Page 2 On March 6, 2012 the draft ordinance of the 2011 National Electrical Code was presented to the City Council at a work session. The City Council requested that a presentation of the proposed ordinance be made to the Chamber of Commerce. On March 28, 2012 the draft ordinance of the 2011 National Electrical Code was presented to the Chamber of Commerce. As a result of the meeting with the Chamber of Commerce, the members present during the presentation had some concerns with the proposed code adoptions and these concerns are reflected in the following five questions: 1.What other cities in North Texas have adopted the 2009 Building Code amendments? 2.What other cities North Texas are on a newer code; 2012, 2015? 3.What other cities in North Texas adopted a 10% or more increase in the energy code? 4.What is the increased effective cost of adopting the changes to the builder? 5.What is the effective cost of implementing the independent energy inspections over adding staff to complete the final energy inspections? The answers to these questions have been delivered to the Chamber of Commerce and made fice. We have not received any additional responses from the Chamber. On August 14, 2012, in a Work Session, staff presented the responses, given to the Chamber of Commerce, for the five questions listed above. All other questions from the Council were answered by City staff. FISCAL IMPACT Staff does not anticipate any fiscal impact to the City as a result of adopting this Code. OPTIONS 1.Postpone consideration and provide staff with further direction. 2.Adopt the 2011 National Electrical Code as recommended. RECOMMENDATION Staff recommends that the City Council adopt the 2011 National Electrical Code along with staff recommended amendments. EXHIBITS February 16, 2012 HaBSCo Commission Minutes Chamber of Commerce Questions and Staff Responses Proposed 2011 Electrical Code Ordinance Agenda Information Sheet September 11, 2012 Page 3 Prepared by, Kurt Hansen Building Official Respectfully submitted: Mark Cunningham, AICP, CPM Minutes Health and Building Standards Commission February 16, 2012 Members present: Janay Tieken, Jim Strange, Jeff Wawro, Rod Reeves, Rosanne Ciccia and Gary Robinson Members absent: David Hoenig Staff members present: Kurt Hansen, Glenda Gailliard, Zackery Loiselle, Dean Bray and Chad Weldon Welcome and Call to Order Kurt Hansen, Building Official, called the meeting to order at 4:05p.m. Consider approval of the minutes of May 19, 2011 Jim Strange made a motion to approve the minutes of May 19, 2011. Seconded by Rosanne Ciccia. Motion carried 6-0. Elect a chair for the Health and Building Standards Commission Kurt requested that all members introduce themselves. Janay Tieken moved that Jim strange be the new Chairman and Jeff Wawro be the Vice Chairman. Seconded by Rosanne Ciccia. Review the requirements for C Meetings Training, and City of Denton Handbook for Boards, Commissions, and Council Committees Jennifer Walters came forward and gavea brief description and overview of each. There was a brief question and answer session. Hold a discussion concerning the adoption of the 2009 International Fire Code as amended by the City and make recommendation to the City Council. Dean Bray (Fire Protection Engineer Associate) and Chad Weldon (Assistant Fire Marshall) came forward. Chad gave a slide presentation and briefed the Commissioners on the adoption of the 2009 International Fire Code. There was a brief question and answer session. Janay Tieken made a motion to recommend to the City Council the adoption of the 2009 International Fire code as amended by the City. Seconded by Rod Reeves. Motion carrie 6-0. Hold a discussion concerning the adoption of the 2009 International Building Code as amended by the City, 2009 International Residential Code as amended by the City, 2009 International Plumbing Code as amended by the City, 2009 International Mechanical Code as amended by the City, and the 2009 International Fuel Gas Code as amended by the City and make recommendation to the City Council. Kurt Hansen, came forward and presented a slide presentation and briefed the Commissioners on the adoption of the 2009 International Building Code as amended by the City, 2009 International Residential Code as amended by the City, 2009 International Plumbing Code as amended by the City, 2009 International Mechanical Code as amended by the City, and the 2009 International Fuel Gas Code as amended by the City. There was a brief question and answer session. Rosanne Ciccia made a motion to recommend to the City Council the adoption of the 2009 IBC, the 2009 IRC, the 2009 IPC, the 2009 IMC, and the 2009 IFGC, as amended by the City. Seconded by Janay Tieken. Motion carrie 6-0. Hold a discussion concerning the adoption of the 2011 National Electrical Code as amended by the City and make recommendation to the City Council. Kurt Hansen, came forward and presented a slide presentation and briefed the Commissioners on the adoption of the 2011 National Electrical Code as amended by the City. There was a brief question and answer session. Jeff Wawro made a motion to recommend to the City Council the adoption of the delete the requirement 2011 National Electrical Code with the consideration to to install Arc-Fault Circuit-Interrupter protection for all 15 and 20 ampere branch circuits in the rooms not protected with a Ground-Fault Circuit- Interrupter protection device of all dwelling units and maintain the current code requirement. Seconded by Rod Reeves. Motion carried 6-0. Hold a discussion concerning the adoption of the amendments to the 2009 International Energy Conservation Code by the City and make recommendation to the City Council. There was a brief question and answer session. Janay Tieken made a motion to recommend to the City Council the adoption the new amendments to the 2009 International Energy Conservation Code. Seconded by Rosanne Ciccia. Motion carried 6-0 Hold a discussion about the HaBSCo meeting schedule for March 15, 2012. The next meeting will be held March 15, 2012. Under Section 551.042 of the Texas Open Meeting Act. Hold a discussion and set the date for future CAAB meetings. Under Section 551.042 of the Texas Open Meetings Act, Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. Adjourn There being no further business the meeting adjourned at 5:24 p.m. ________________________________ Jim Strange, HaBSCo Chairman ________________________________ Jeff Wawro, Co-Chairman ________________________________ Glenda Gailliard, Permit Technician Supervisor, City of Denton Chamber of Commerce Questions with Staff Responses KURT HANSEN: 2009 Building Codes July 13, 2012 1. What other cities in North Texas have adopted the 2009 Buildi Answer: See chart below. Note: Out of the 23 cities which responded to my survey, 15 Cities have already adopted the 2 Building Codes. 2. What other cities in North Texas are on a newer code; 2012, 2015? Answer: See chart below. Note: There are currently no cities on the 2012 Building Codes, however, 11 of these cities are scheduled to adopt the 2012 Building Codes within the first 6 mo to the fact that the NCTCOG amendments will not be published unt 3. What other cities in North Texas adopted a 10% or more increase in the energy code? Answer: See chart below. Note: Along with the City of Denton, only 2 other cities (Frisco and P stringent than the 2009 Energy Code. City Adopted the 2009 Planned Adoption Surpass the IECC Require 3 rd Party Code of 2012 Requirements Energy Inspectors for Res & Comm Rockwall 2-6-2012 3 years No Yes, both Allen 5-24-2011 ? No Yes, both Garland 1-2-2012 ? No In-house Benbrook 12-2012 1-1-2013 No Res, no Comm, yes Bedford 3-22-2011 ? No Yes, both Frisco IECC only, 5-2012 9-2012 Energy Star only Res, yes Comm, for all others considering IECC no 2009 +15% Lancaster No ? No Yes, both Carrollton 2-11-11 1-1-2013 No In-house Grand Prairie 2-2011 No, 2015 No Yes, both Celina No ? No Yes, both Irving No, May or June No, 2015 No No, just Energy 2012 Star Waco 1-1-2010 1-1-2013 No No, but accept their reports McKinney No Fall, 2012 No Yes, both Arlington 5-24-2012 ? No In-house Plano1-20111-2013Yes, 15% aboveYes, both Wylie No 4-2013 No Yes, both University Park 2010 ? No In-house Prosper No 3-2013 No Yes, both Hurst 04-2011 No, 2015 No In-house Coppell 1-11-12 1-2013 No Dallas No 3-2013 No Yes, both Colleyville 10-2012 ? No Yes, both Southlake 4-2011 7-2013 No No, but accept their reports 4. What is the increased effective cost of adopting the changes Answer: For a typical new home, an added cost of approximately $425.00 Note: As indicated on the chart below, by adopting the 2009 Building Codes along with the 2011 Electrical Code, the major additional requirements for a new hom detector, adding more arc fault circuit interrupters, and also a 2005 NEC or 2006 I-2011 NEC or 2009 Approximate Cost Code Requirement Extended Cost Codes I-Codes Increases Carbon monoxide No requirement Required $50 each $100.00 Detector Arc Fault Circuit In sleeping rooms In all rooms $45 each $315.00 Interrupters only (approximately without GFCI (approximately 7 3 AFCIs) protection more AFCIs) Tamperproof No Requirement In all 15 & 20 amp $1.25 each $12.50 Receptacles (approximately 25 wall receptacles (approximately 25 receptacles @ $0.75 receptacles at and increase of $.50 each) each) Total Increase $427.50 5. What is the effective cost of implementing the independent in adding staff to complete the inspections? Answer: Before I address the cost of adding staff to perform final energy inspections, I will share rd my findings in regards to hiring a 3 party energy inspection company to perform energy inspections. The effective cost of a final energy inspection will vary from p depending on the size and the energy needs of each project. However, from my resea rd three local 3 party energy inspection companies, costs average approximately $0.10 per square foot for a 5,000 Sq Ft project, or about $500.00. This cost includes the preliminary ComCheck report and a full final inspection. Also, the cost per square foot does decreases as the project increases in size. Now, what would be the cost of hiring additional staff to perfor inspections? The annual cost for a Commercial Building Inspector, plus benefits, plus a vehicle is approximately $95,000. In the past year, the city inspectors per270 commercial and commercial alteration energy inspections. By divi270 inspections, the average cost per energy inspection would be approximately $350.00. I could add an additional permit fee of $350.00 on each commercial project or I could look at a price per sq ft. The price per sq ft would be somewhere around 7 cents, and so for example, at 7 cents per sq ft, an energy inspection on a 5,000 sq ft project would c50.00. In conclusion, with the addition of a Commercial Building Inspec would be able to do a thorough energy inspection for each commeralteration project. Note: Remember, this proposal is only for Commercial and Commercial Alteration p projects are required to have a duct and a house tightness test providing this information to the inspectors. With the current staff of inspectors and the current workload, t thoroughly as possible, the final state of the compliance of these projects with the requirements of the Energy Code. Since verifying a projects compliance with the Energy Code is not typically a life issue, my current staff does their best, with the resources available; to see that energy requirements are met. With each new addition of the Energy Code, the requirements are g more stringent and more complicated. As you can see from the first chart above, thirteen (more than half) of the twenty three rd cities surveyed require verification from 3 party energy inspections for both residential and commercial properties; only nine of the twenty three cities surveyed perform their own energy ins or they rd accept the reports from 3 party energy inspectors. I think that in the near future, more and more rd Cities will be requiring 3 party verification, or they will be hiring highly trained and skilled energy inspectors to perform all their energy inspections. AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 Questions concerning this item may be directed to DEPARTMENT: Fire Rick Jones 349-8860 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance amending Chapter 29 of the Code of the City of Denton, Texas, to provide for the adoption of the International Fire Code, 2009 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 severability; repealing all ordinances in conflict therewith; and providing for an effective date. FILE INFORMATION The "International Codes" were introduced to provide a model code with national consistency. The International model codes consist of: International Residential Code; International Building Code; International Mechanical Code; International Fuel Gas Code; International Plumbing Code; and International Fire Code. The International Codes are intended to provide regulations that safeguard public health and safety in all communities. Because the Codes are designed to be national, local amendments are required to meet the needs of local jurisdictions. The North Texas Regional Council of Governments has participated in the development of local regional amendments. Several of these amendments are found in the Code that is proposed for adoption. In an effort to provide consistency, the 2000 International Codes were first adopted by the City of Denton in February of 2002. Prior to the adoption of the 2000 International Codes, the City of Denton, like most other cities in the Metroplex, had adopted the Uniform Codes. The "2009 International Fire Code" has since been introduced after a lengthy review process through the International Code Council, (ICC}. Changes to the International Codes are brought about by new technology and events that have occurred throughout the nation. The majority of the changes are related to health and safety. The purpose of the International Codes is to establish the minimum requirements to safeguard the public health, safety and general welfare through structural strength, means of egress facilities, stability, sanitation, adequate light and ventilation, energy conservation, and safety to life and property from fire and other hazards attributed to the built environment. The Fire Department has performed a comprehensive local review of these changes. In addition, the 2009 International Fire Code and local amendments were presented, in a public meeting, to local building contractors, sub-contractors, and other interested parties. PRIOR ACTION/REVIEW (Council, Boards, Commissions) On February 16, 2012 the Health and Building Standards Commission unanimously voted to support and recommend the adoption of the 2009 International Fire Code along with staff recommended amendments. Agenda Information Sheet September 11, 2012 Page 2 The 2009 International Fire Code was presented to City Council at the March 6, 2012 Work Session. The City Council requested that a presentation of the proposed ordinance be made to the Chamber of Commerce. On March 28, 2012 the draft ordinance of the proposed changes to the 2009 International Fire Code was presented to the Chamber of Commerce. As a result of the meeting with the Chamber of Commerce, the members present during the presentation had some concerns with the proposed code adoptions and these concerns are reflected in the following five questions: 1.What other cities in North Texas have adopted the 2009 Building Code amendments? 2.What other cities in North Texas are on a newer code; 2012, 2015? 3.What other cities in North Texas adopted a 10% or more increase in the energy code? 4.What is the increased effective cost of adopting the changes to the builder? 5.What is the effective cost of implementing the independent energy inspections over adding staff to complete the final energy inspections? The answers to these questions have been delivered to the Chamber of Commerce and made available to the City Ma Chamber. On August 14, 2012 the draft ordinance for the adoption of the 2009 International Fire Code along with staff recommended amendments was presented at the City Council Work Session. FISCAL INFORMATION There is no fiscal impact to the City with the adoption of the proposed Codes. OPTIONS 1.Postpone consideration and provide staff with further direction. 2.Adopt the Ordinance amending Code of Ordinances Chapter 29 and adopting the 2009 International Fire Code and local amendments RECOMMENDATION Staff recommends that the City Council adopt the 2009 International Fire Code and local amendments. EXHIBITS February 16, 2012 HaBSCo Commission Minutes Chamber of Commerce Questions and Staff Responses Proposed Ordinance amending Code of Ordinances Chapter 29 and adopting the 2009 International Fire Code and local amendments. Respectfully submitted: ___________________________ Rick Jones, Fire Marshal Minutes Health and Building Standards Commission February 16, 2012 Members present: Janay Tieken, Jim Strange, Jeff Wawro, Rod Reeves, Rosanne Ciccia and Gary Robinson Members absent: David Hoenig Staff members present: Kurt Hansen, Glenda Gailliard, Zackery Loiselle, Dean Bray and Chad Weldon Welcome and Call to Order Kurt Hansen, Building Official, called the meeting to order at 4:05p.m. Consider approval of the minutes of May 19, 2011 Jim Strange made a motion to approve the minutes of May 19, 2011. Seconded by Rosanne Ciccia. Motion carried 6-0. Elect a chair for the Health and Building Standards Commission Kurt requested that all members introduce themselves. Janay Tieken moved that Jim strange be the new Chairman and Jeff Wawro be the Vice Chairman. Seconded by Rosanne Ciccia. Review the requirements for C Meetings Training, and City of Denton Handbook for Boards, Commissions, and Council Committees Jennifer Walters came forward and gavea brief description and overview of each. There was a brief question and answer session. Hold a discussion concerning the adoption of the 2009 International Fire Code as amended by the City and make recommendation to the City Council. Dean Bray (Fire Protection Engineer Associate) and Chad Weldon (Assistant Fire Marshall) came forward. Chad gave a slide presentation and briefed the Commissioners on the adoption of the 2009 International Fire Code. There was a brief question and answer session. Janay Tieken made a motion to recommend to the City Council the adoption of the 2009 International Fire code as amended by the City. Seconded by Rod Reeves. Motion carrie 6-0. Hold a discussion concerning the adoption of the 2009 International Building Code as amended by the City, 2009 International Residential Code as amended by the City, 2009 International Plumbing Code as amended by the City, 2009 International Mechanical Code as amended by the City, and the 2009 International Fuel Gas Code as amended by the City and make recommendation to the City Council. Kurt Hansen, came forward and presented a slide presentation and briefed the Commissioners on the adoption of the 2009 International Building Code as amended by the City, 2009 International Residential Code as amended by the City, 2009 International Plumbing Code as amended by the City, 2009 International Mechanical Code as amended by the City, and the 2009 International Fuel Gas Code as amended by the City. There was a brief question and answer session. Rosanne Ciccia made a motion to recommend to the City Council the adoption of the 2009 IBC, the 2009 IRC, the 2009 IPC, the 2009 IMC, and the 2009 IFGC, as amended by the City. Seconded by Janay Tieken. Motion carrie 6-0. Hold a discussion concerning the adoption of the 2011 National Electrical Code as amended by the City and make recommendation to the City Council. Kurt Hansen, came forward and presented a slide presentation and briefed the Commissioners on the adoption of the 2011 National Electrical Code as amended by the City. There was a brief question and answer session. Jeff Wawro made a motion to recommend to the City Council the adoption of the delete the requirement 2011 National Electrical Code with the consideration to to install Arc-Fault Circuit-Interrupter protection for all 15 and 20 ampere branch circuits in the rooms not protected with a Ground-Fault Circuit- Interrupter protection device of all dwelling units and maintain the current code requirement. Seconded by Rod Reeves. Motion carried 6-0. Hold a discussion concerning the adoption of the amendments to the 2009 International Energy Conservation Code by the City and make recommendation to the City Council. There was a brief question and answer session. Janay Tieken made a motion to recommend to the City Council the adoption the new amendments to the 2009 International Energy Conservation Code. Seconded by Rosanne Ciccia. Motion carried 6-0 Hold a discussion about the HaBSCo meeting schedule for March 15, 2012. The next meeting will be held March 15, 2012. Under Section 551.042 of the Texas Open Meeting Act. Hold a discussion and set the date for future CAAB meetings. Under Section 551.042 of the Texas Open Meetings Act, Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. Adjourn There being no further business the meeting adjourned at 5:24 p.m. ________________________________ Jim Strange, HaBSCo Chairman ________________________________ Jeff Wawro, Co-Chairman ________________________________ Glenda Gailliard, Permit Technician Supervisor, City of Denton Chamber of Commerce Questions with Staff Responses KURT HANSEN: 2009 Building Codes July 13, 2012 1. What other cities in North Texas have adopted the 2009 Buildi Answer: See chart below. Note: Out of the 23 cities which responded to my survey, 15 Cities have already adopted the 2 Building Codes. 2. What other cities in North Texas are on a newer code; 2012, 2015? Answer: See chart below. Note: There are currently no cities on the 2012 Building Codes, however, 11 of these cities are scheduled to adopt the 2012 Building Codes within the first 6 mo to the fact that the NCTCOG amendments will not be published unt 3. What other cities in North Texas adopted a 10% or more increase in the energy code? Answer: See chart below. Note: Along with the City of Denton, only 2 other cities (Frisco and P stringent than the 2009 Energy Code. City Adopted the 2009 Planned Adoption Surpass the IECC Require 3 rd Party Code of 2012 Requirements Energy Inspectors for Res & Comm Rockwall 2-6-2012 3 years No Yes, both Allen 5-24-2011 ? No Yes, both Garland 1-2-2012 ? No In-house Benbrook 12-2012 1-1-2013 No Res, no Comm, yes Bedford 3-22-2011 ? No Yes, both Frisco IECC only, 5-2012 9-2012 Energy Star only Res, yes Comm, for all others considering IECC no 2009 +15% Lancaster No ? No Yes, both Carrollton 2-11-11 1-1-2013 No In-house Grand Prairie 2-2011 No, 2015 No Yes, both Celina No ? No Yes, both Irving No, May or June No, 2015 No No, just Energy 2012 Star Waco 1-1-2010 1-1-2013 No No, but accept their reports McKinney No Fall, 2012 No Yes, both Arlington 5-24-2012 ? No In-house Plano1-20111-2013Yes, 15% aboveYes, both Wylie No 4-2013 No Yes, both University Park 2010 ? No In-house Prosper No 3-2013 No Yes, both Hurst 04-2011 No, 2015 No In-house Coppell 1-11-12 1-2013 No Dallas No 3-2013 No Yes, both Colleyville 10-2012 ? No Yes, both Southlake 4-2011 7-2013 No No, but accept their reports 4. What is the increased effective cost of adopting the changes Answer: For a typical new home, an added cost of approximately $425.00 Note: As indicated on the chart below, by adopting the 2009 Building Codes along with the 2011 Electrical Code, the major additional requirements for a new hom detector, adding more arc fault circuit interrupters, and also a 2005 NEC or 2006 I-2011 NEC or 2009 Approximate Cost Code Requirement Extended Cost Codes I-Codes Increases Carbon monoxide No requirement Required $50 each $100.00 Detector Arc Fault Circuit In sleeping rooms In all rooms $45 each $315.00 Interrupters only (approximately without GFCI (approximately 7 3 AFCIs) protection more AFCIs) Tamperproof No Requirement In all 15 & 20 amp $1.25 each $12.50 Receptacles (approximately 25 wall receptacles (approximately 25 receptacles @ $0.75 receptacles at and increase of $.50 each) each) Total Increase $427.50 5. What is the effective cost of implementing the independent in adding staff to complete the inspections? Answer: Before I address the cost of adding staff to perform final energy inspections, I will share rd my findings in regards to hiring a 3 party energy inspection company to perform energy inspections. The effective cost of a final energy inspection will vary from p depending on the size and the energy needs of each project. However, from my resea rd three local 3 party energy inspection companies, costs average approximately $0.10 per square foot for a 5,000 Sq Ft project, or about $500.00. This cost includes the preliminary ComCheck report and a full final inspection. Also, the cost per square foot does decreases as the project increases in size. Now, what would be the cost of hiring additional staff to perfor inspections? The annual cost for a Commercial Building Inspector, plus benefits, plus a vehicle is approximately $95,000. In the past year, the city inspectors per270 commercial and commercial alteration energy inspections. By divi270 inspections, the average cost per energy inspection would be approximately $350.00. I could add an additional permit fee of $350.00 on each commercial project or I could look at a price per sq ft. The price per sq ft would be somewhere around 7 cents, and so for example, at 7 cents per sq ft, an energy inspection on a 5,000 sq ft project would c50.00. In conclusion, with the addition of a Commercial Building Inspec would be able to do a thorough energy inspection for each commeralteration project. Note: Remember, this proposal is only for Commercial and Commercial Alteration p projects are required to have a duct and a house tightness test providing this information to the inspectors. With the current staff of inspectors and the current workload, t thoroughly as possible, the final state of the compliance of these projects with the requirements of the Energy Code. Since verifying a projects compliance with the Energy Code is not typically a life issue, my current staff does their best, with the resources available; to see that energy requirements are met. With each new addition of the Energy Code, the requirements are g more stringent and more complicated. As you can see from the first chart above, thirteen (more than half) of the twenty three rd cities surveyed require verification from 3 party energy inspections for both residential and commercial properties; only nine of the twenty three cities surveyed perform their own energy ins or they rd accept the reports from 3 party energy inspectors. I think that in the near future, more and more rd Cities will be requiring 3 party verification, or they will be hiring highly trained and skilled energy inspectors to perform all their energy inspections. AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: Utilities ACM: Howard Martin, 349-8232 ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance finding that a public use and necessity exists to acquire fee simple to a 0.289 acre tract situated in the M.E.P. & P.R.R. Company Survey, Abstract No. 1469, located in the City of Denton, Denton County, Texas, as more particularly described on “Exhibit “A”, attached hereto and made a part hereof, located generally in the 1500 block of North Mayhill Road (the “Property Interests”), for the public use of expanding and improving Mayhill Road, a municipal street and roadway; authorizing the City Manager or his designee to make an offer to (1) Robert Earl Edwards, Donald Eugene Edwards, Myrtle Elizabeth Edwards and William Warren Edwards (collectively, the “Owner”); (2) successors in interest to the Owner to the Property Interests; or (3) any other owners of the Property Interests, as may be applicable, to purchase the Property Interests for the purchase price of Twenty Four Thousand Four Hundred Twenty Two Dollars and No Cents ($24,422.00), and other consideration, as prescribed in the Purchase Agreement (the “Agreement”), as attached hereto and made a part hereof as Exhibit “B”; authorizing the expenditure of funds therefor; and providing an effective date. (Mayhill Road Widening and Improvements project – Parcel M025) BACKGROUND In accord with the current Mayhill Road Widening and Improvements project initiative (the Project), staff is undertaking the identification of the additional land rights necessary to accommodate the construction and operation of the improved roadway. Pyles-Whatley Corporation has been engaged to provide real estate appraisal services in regard to those identified tracts that will be directly impacted by the project. In respect to the affected property tract owned by the Edwards family, the Project requires the partial acquisition of a Fee Tract for street and drainage purposes. Pyles-Whatley Corporation has provided a real estate appraisal report in regard to the Edwards property tract and the land rights necessary for the Project. Their findings constitute the present offer to purchase. OPTIONS 1.Approve the proposed Ordinance. 2.Decline to approve the proposed Ordinance. 3.Table for future consideration. RECOMMENDATION Recommend approval of the Ordinance. PRIOR ACTION/REVIEW (Council, Boards, Commissions) No prior action or review regarding the identified fee tract affecting property owned by the Edwards family. FISCAL INFORMATION The overall Mayhill Road Widening and Improvements project is being funded with a combination of Regional Toll Revenue (RTR) funds, Denton County Transportation Road Improvement Program (TRIP ‘08) funds and City of Denton local match funds. The purchase 00 offer price of $24,422. plus closing costs, as prescribed in the Agreement. BID INFORMATION Not applicable EXHIBITS 1.Location Map Respectfully submitted, 2.Ordinance Frank G. Payne, P.E. Prepared by, City Engineer Paul Williamson, Real Estate Manager AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: Utilities ACM: Howard Martin, 349-8232 ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance finding that a public use and necessity exists to acquire (I) fee simple to a 2.115 acre tract; and (II) a slope easement, encumbering a 0.202 acre tract, each located in the M.E.P. & P.R.R. Company Survey, Abstract No. 927, City of Denton, Denton County, Texas, as more particularly described on “Exhibit “A”, attached hereto and made a part hereof, located generally in the 500 block of North Mayhill Road (the “Property Interests”), for the public use of expanding and improving Mayhill Road, a municipal street and roadway; authorizing the City Manager or his designee to make an offer to (1) 551 Mayhill Joint Venture (the “Owner”); (2) successors in interest to the Owner to the Property Interests; or (3) any other owners of the Property Interests, as may be applicable, to purchase the Property Interests for the purchase price of One Hundred Sixteen Thousand Eight Hundred Fifty Four Dollars and No Cents ($116,854.00), and other consideration, as prescribed in the Purchase Agreement (the “Agreement”), as attached hereto and made a part hereof as Exhibit “B”; authorizing the expenditure of funds therefor; and providing an effective date. (Mayhill Road Widening and Improvements project – Parcel M070) BACKGROUND In accord with the current Mayhill Road Widening and Improvements project initiative (the Project), staff is undertaking the identification of the additional land rights necessary to accommodate the construction and operation of the improved roadway. Pyles-Whatley Corporation has been engaged to provide real estate appraisal services in regard to those identified tracts that will be directly impacted by the project. In respect to the affected property tract owned by 551 Mayhill JV, the Project requires the partial acquisition of a Fee Tract for street and drainage purposes and a Slope Easement for lateral support slope for the makeup of the road itself. Pyles-Whatley Corporation has provided a real estate appraisal report in regard to 551 Mayhill JV’s property tract and the land rights necessary for the Project. Their findings constitute the present offer to purchase. There are no improvements situated within the acquisition areas. OPTIONS 1.Approve the proposed Ordinance. 2.Decline to approve the proposed Ordinance. 3.Table for future consideration. RECOMMENDATION Recommend approval of the Ordinance. PRIOR ACTION/REVIEW (Council, Boards, Commissions) No prior action or review regarding the identified acquisition tracts affecting the property owned by 551 Mayhill JV. FISCAL INFORMATION The overall Mayhill Road Widening and Improvements project is being funded with a combination of Regional Toll Revenue (RTR) funds, Denton County Transportation Road Improvement Program (TRIP ‘08) funds and City of Denton local match funds. The purchase 00 offer price of $116,854. plus closing costs, as prescribed in the Agreement. BID INFORMATION Not applicable EXHIBITS 1.Location Map Respectfully submitted, 2.Ordinance Frank G. Payne, P.E. Prepared by, City Engineer Paul Williamson, Real Estate Manager AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: City Manager’s Office CM/DCM/ACM: George Campbell, City Manager SUBJECT: Consider appointments to the Council Committee on Citizen Engagement. BACKGROUND: In accordance with the resolution passed on the consent agenda, the Committee shall be composed of three (3) members of the City Council to be appointed by the Mayor and approved by the City Council. Respectfully submitted: George C. Campbell City Manager Prepared by: Betty Williams Director of Administrative Services AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: City Manager’s Office CM: George Campbell,City Manager SUBJECT Consider nominations/appointments to the City’s Boards and Commissions. BACKGROUND Attached is a list of outstanding nominations for board and commission positions. Nominations made at this meeting could be voted on with the provision that the individuals meet all required qualifications. If you require any further information, please let me know. Respectfully submitted: Jennifer Walters City Secretary 09/11/2012 BOARD AND COMMISSION NOMINATIONS BoardCouncil MemberNomination Airport Advisory Board Kamp Marc Moffitt Community Development Advisory Cmte. Margaret Fiedler has moved Watts Health & Building Standards Commission All All Jim Strange changed to Planning and Zoning Kamp Human Services Adv. Committee Maria Minerva Villanueva-Simental resigned Engelbrecht Parks, Recreation & Beautification Board Derrick Murray has resigned Engelbrecht Planning and Zoning Commission Kamp Jim Strange Public Art Committee Watts Victoria DeCuir Public Utilities Board John Baines has resigned Roden R Ï Reappointment N Ï New Nomination AGENDA INFORMATION SHEET AGENDA DATE: September 11, 2012 DEPARTMENT: Finance ACM: Bryan Langley _____________________________________________________________________________ SUBJECT Consider approval of a resolution of the City of Denton declaring the completion of the work of the Special Citizens Bond Advisory Committee for the 2012 street bond election; and declaring an effective date. BACKGROUND In April 2012, the City Council created a Special Citizens Bond Advisory Committee to make recommendations regarding street reconstruction projects for the upcoming bond program. In addition, the Committee was asked to determine whether the public art policy should be applied to the bond program to be considered by the voters in the November 2012 election. The Committee met a number of times and brought forward recommendations to the City Council on June 19, 2012. The City Council held a public hearing on the bond program on August 7, 2012 and adopted an ordinance calling an election on August 14, 2012. The bond election will be held on November 6, 2012. City staff is grateful for the hours spent by each member of the Committee and appreciates all of their hard work. In recognition of their efforts, staff is proposing that the attached resolution be approved to formally thank the Committee for their work over the past several months. In addition, since the Committee has accomplished their task, the resolution also officially concludes the work of the Special Citizens Bond Advisory Committee. If the voters approve the bond program on November 6, 2012, staff will request that the City Council appoint a Citizen Bond Oversight Committee in the future to oversee the implementation of the bond program. RECOMMENDATION Staff recommends approval of the resolution. PRIOR ACTION/REVIEW (Council, Boards, Commissions) On April 3, 2012, the City Council approved Resolution No. R2012-008 creating a Special Citizens Bond Advisory Committee for the purposed 2012 Street Bond Election. Agenda Information Sheet September 11, 2012 Page 2 EXHIBITS Resolution No. R2012-008 Resolution Respectfully submitted: Bryan Langley Assistant City Manager AGENDA INFORMATION SHEET AGENDA DATE: September11, 2012 DEPARTMENT: Parks and Recreation ACM: John Cabrales _____________________________________________________________________________ SUBJECT Consider a request for an exception to the Noise Ordinance for the purpose of performing live music for the Mexican Independence Day Fair at the corner of McKinney Street and Railroad Avenue, in the vicinity of La Estrella Mini Market, on Saturday, September 15, 2012, beginning at 4 p.m. and concluding at 1 a.m. This request is for an extension of hours for amplified sound from 10 p.m. to 1 a.m. The amplified sound will remain at the allowable 70 decibels. Staff recommends the exception be granted until midnight due to previous noise complaints at this location. BACKGROUND This first-time event will be held at the La Estrella Mini Market located on the corner of 602 E. McKinney and the car wash at 202 Railroad Avenue. The event celebrates Mexican Independence Day and will have live music provided by four bands. The event organizers anticipate approximately a dozen vendors selling food and various items. The vendors and bands will be located in the car wash parking lot. The event is being compared to a mini Cinco de Mayo celebration. RECOMMENDATION Staff recommends the exception be granted until midnight due to previous noise complaints at this location. EXHIBITS 1.Letter of Request Respectfully submitted: Emerson Vorel, Director Parks and Recreation Department Prepared by: Janie McLeod Community Events Coordinator August28,2012 ToWhomItMayConcern: Thisisarequestforpermissionforanoisevarianceforaneventthatwilltakeplaceon SaturdaySeptember15,2012.ThenameoftheeventiswxMexicanIndependenceDayC z©xx At202RailroadStreet,andinthevicinityofLaEstrellaMiniMarket.ThisisaCommunity eventandmostoftheneighborbusinesswillbeparticipatinginthisevent.Thiseventwill beginat4pmanditwillendat1:00am.Themusicdecibelwillbe70. Thankyouverymuchforallyourhelpandcooperationtothismatter, Sincerely, GriceldaSamano MiniMarketLaEstrella 9405946942 9405663405 s:\legal\our documents\ordinances\12�3d amendment to gas wel( moratorim ordinance final version.doc b, The term "oil and gas well permit," as set foi�th in the Moratorium Ordinance, shall be replaced in its entirety by the term "gas well permit," which shall have the meaning ascribed to the term in Ord. No, 2010-181, amending DDC, Chapters 35.16 and 35.22, and the Moratorium Ordinance hereby is amended to effect the same, SECTION 6. This Ordinance shall be cumulative of all provisions of the ordinances of the City of Denton, Texas, as amended, except where the provisions of this Ordinance are in direct conflict with the provisions of such ordinances, in which event the terms of this Ordinance, during its effectiveness, shali prevail over any other conflicting ordinances or provisions thereof. SECTION 7. It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this Ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this Ordinance shall be declared void, ineffective or unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such voidness, ineffectiveness ot• unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs or sections of this Ordinance, since the same would have been enacted by the City Council without the incorporation herein of any such void, ineffective or unconstitutional phrase, clause, sentence, paragraph or section. SECTION 8. This Ordinance shall take effect upon its passage. PASSED AND APPROVED this the 1 lth day of September, 2012. ATTEST: JENNIFER WALTERS, CITY SECRETARY C• APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY 1 , � BY: � .� � e s � Page 5 MARK A, BURROUGHS, MAYOR