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HomeMy WebLinkAboutDecember 18, 2012 Agenda AGENDA CITY OF DENTON CITY COUNCIL December 18, 2012 After determining that a quorum is present, the City Council of the City of Denton, Texas will 3:00 p.m. convene in a Work Session on Tuesday, December 18, 2012 at 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 December 18, 2012. 3.Receive a report, hold a discussion and give staff direction regarding the 2013 State Legislative Program of the City of Denton for the 83rd Texas Legislature, including key legislative issues and strategies. 4.Receive a report, hold a discussion, and give staff direction regarding amendments to the City of Denton smoking ordinance (86-069 as amended by 93-193) and revisions to the draft ordinance as originally recommended by the Ad-hoc Citizens Advisory Committee on Smoking Regulations. 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 the City’s attorneys regarding the present status of pending litigation styled: The City of Denton, Texas v. The University of North th Texas, Cause No. 2008-20043-158, now pending before the 158 Judicial District Court of Denton County, Texas, having been remanded to the trial court by the Fort Worth Court of Appeals for further proceedings; and discuss, deliberate and provide the City’s attorneys with direction and any recommendations regarding such legal matter. A public discussion of this legal matter would conflict with the duty of the City’s Attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. City of Denton City Council Agenda December 18, 2012 Page 2 2.Consult with the City’s attorneys regarding Transmission Cost of Service (TCOS) filings of the City with the Public Utilities Commission of Texas; and the status of pending litigation styled: Linda Marie Casias Roth, et al, v City of Denton, Texas, Cause No. 2012-60839-393, currently pending in rd the 393 Judicial District Court of Denton County, Texas; where a public discussion of these legal matters would conflict with the duty of the City’s attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. 3.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, 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. B. Consultation with Attorneys –Under Texas Government Code Section 551.071; and Deliberations regarding Real Property – Under Texas Government Code, Section 551.072. 1.Discuss, deliberate, and receive information from staff and provide staff with direction pertaining to the potential purchase of certain real property interests located in the A.N.B. Tompkins Survey, Abstract Number 1246, Denton County, Texas (located generally in the 2100 block of South Bonnie Brae Street), within the City of Denton, Texas. Consultation with the City’s attorney’s regarding legal issues associated with the acquisition or condemnation of 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. 2. Discuss, deliberate, and receive information from staff and provide staff with direction pertaining to the potential purchase of certain real property interests located (1) in the M.E.P. & P.R.R. Co. Survey, Abstract Number 927, Denton County, Texas (located generally in the 1100 block of South Mayhill Road, and (2) in the M.E.P. & P.R.R. Co. Survey, Abstract Number 927, Denton County, Texas (located generally in the 1200 block of South Mayhill Road, all within the City of Denton, Texas. Consultation with the City’s attorney’s regarding legal issues associated with the acquisition or condemnation of 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. City of Denton City Council Agenda December 18, 2012 Page 3 C. Certain Public Power Utilities: Competitive Matters – Under Texas Government Code, Section 551.086; Consultation with Attorneys – Under Texas Government Code, Section 551.071. 1.Receive a report and a presentation from Denton Municipal Electric staff regarding certain public power competitive and financial matters regarding Request for Proposals No. 4859 issued by the City soliciting proposals for solar-generated energy facilities for the City of Denton, Texas; discuss, deliberate, provide staff with direction, and consider such matters. Consultation with the City’s attorneys regarding legal advice regarding the matters referenced above. A public discussion of this legal matter would conflict with the duty of the City’s Attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. 2.Receive a briefing from Staff and attorneys regarding certain public power and commercial matters involved pertaining to the continued use of Garland Power & Light (GP&L) to perform certain Transmission Operator functions for Denton Municipal Electric (DME), as required by North American Reliability Corporation (NERC) Regulations; and receive an attorney consultation, where a public discussion of this legal matter would conflict with the duty of the City’s attorneys to the Public Utilities Board under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. Discuss, deliberate, provide Staff with direction, and consider. 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 (THE TEXAS OPEN MEETINGS ACT) ON ANY AUTHORIZED BY TEX. GOV’T. CODE, §551.001, ET SEQ. 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.” City of Denton City Council Agenda December 18, 2012 Page 4 2. PROCLAMATIONS/PRESENTATIONS A.Proclamations/Awards 1. Presentation by Bill Ford and students of the Mayborn School of Journalism regarding their Denton promotional venture. 3. CITIZEN REPORTS A. Review of procedures for addressing the City Council. B. Receive citizen reports from the following: 1. Kayce Strader regarding predatory lending. 2. Michael Pirtle regarding predatory lending. 3. Joe Ader regarding predatory lending. 4. 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 - CC). 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. If no items are pulled, Consent Agenda Items A - CC 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 adoption of an ordinance adopting Rental Guidelines and a Schedule of Rental Fees for Williams Square, located between East Hickory and Mulberry Streets, and providing an effective date. B.Consider adoption of an ordinance of the City of Denton authorizing the City Manager, or his designee, to execute on behalf of the City of Denton an acceptance of an offer from the Texas Department of Transportation relating to a grant for the Routine Airport Maintenance Program (RAMP); authorizing the City Manager to expend funds provided for in the grant program; and declaring an effective date. (TxDOT Project No. AM 2013DNTON and CSJ No. M318DNTON). The Airport Advisory Board recommends approval (7-0). C.Consider adoption of an ordinance providing for the expenditure of funds for the Emergency Purchase of an Al-Jon Advantage 500M Landfill Compactor in accordance with provisions of Section 252.022 of the Local Government Code exempting such purchases from requirements of competitive bidding; and providing an effective date (File 5133–Emergency Purchase of Compactor for Landfill awarded to Tri County Equipment Sales L.L.C. in the amount of $370,000). The Public Utilities Board recommends approval (7-0). City of Denton City Council Agenda December 18, 2012 Page 5 D.Consider adoption of an ordinance authorizing the City Manager to execute an Interlocal Cooperative Purchasing Program Agreement with the City of Farmers Branch, Texas under Section 271.102 of the Local Government Code, to authorize participation in various City of Farmers Branch contracts for the purchase of various goods and services; authorizing the expenditure of funds therefor; and declaring an effective date (File 5124–Interlocal Agreement with City of Farmers Branch). E.Consider adoption of an ordinance authorizing the City Manager or his designee to execute a contract with the Buy Board Cooperative Purchasing Network for the acquisition of Two Haul Trailers for the Solid Waste Department and the Houston-Galveston Area Council of Governments (H-GAC) for the acquisition of a Street Sweeper for the City of Denton Drainage Department; and providing an effective date (File 5123–Purchase of a Street Sweeper awarded to TYMCO, Inc. in the amount of $188,095.50 and Two Haul Trailers awarded to Rush Truck Centers of Texas, Inc. in the amount of $161,309 for a total award of $349,404.50). The Public Utilities Board recommends approval (7-0). F.Consider adoption of an ordinance authorizing the City Manager or his designee to execute a contract through The Cooperative Purchasing Network (TCPN) for the acquisition of Maintenance, Repair and Operations Supplies for the City of Denton Distribution Center; and providing an effective date (File 5050–Purchase of Maintenance, Repair and Operations Supplies for the Distribution Center awarded to Fastenal Company in the annual estimated amount of $105,000). G.Consider adoption of an ordinance awarding a contract under the Texas Multiple Award Schedule (TXMAS) program for the purchase of a Vehicle Global Positioning System (GPS) for the City of Denton Solid Waste Department as awarded by the State of Texas (Contract TXMAS-4-6611Q010); providing for the expenditure of funds therefor; and providing an effective date (File 5135–Vehicle Global Positioning System for Solid Waste Department awarded to Trimble Navigation Limited in the amount of $167,529.20). The Public Utilities Board recommends approval (7-0). H.Consider adoption of an ordinance authorizing the City Manager or his designee to execute a Professional Services Agreement with Merje Design for consulting services related to the Wayfinding Signage Project for the City of Denton Planning Department; and providing an effective date (RFQ 4938–Wayfinding Signage Project for City of Denton awarded to Merje Design in the amount of $119,205). I.Consider adoption of an ordinance authorizing the City Manager or his designee to execute a Professional Services Agreement with Kimley Horn and Associates, Inc. for engineering services related to the design and construction of the Southwest Elevated Storage Tank project; and providing an effective date (File 5134–Engineering Services for Design and Construction of the Southwest Elevated Storage Tank Project awarded to Kimley Horn and Associates, Inc. in the amount of $325,000). The Public Utilities Board recommends approval (7-0). City of Denton City Council Agenda December 18, 2012 Page 6 J.Consider adoption of an ordinance accepting competitive proposals and awarding a Public Works Contract for the construction of a concrete and masonry fence at the City of Denton Bonnie Brae Substation; providing for the expenditure of funds therefor; and providing an effective date (RFP 5063-awarded to Zagros Construction Company in the amount of $388,849.10). The Public Utilities Board recommends approval (7-0). K.Consider adoption of an ordinance providing for, authorizing, and approving the expenditure of funds for the purchase of protective relay, control, monitoring, metering, software, integration, accessories and devices manufactured by Schweitzer Engineering Laboratories (SEL), which are available from only one source, KD Johnson, Inc., and in accordance with Chapter 252.022 of the Texas Local Government Code, are exempt from the requirements of competitive bidding; and providing an effective date (File 5024–Purchase of Protective Relay Equipment for Municipal Electric in an amount not to exceed $2,510,000). The Public Utilities Board recommends approval (7-0). L.Consider adoption of an ordinance accepting competitive proposals and awarding an initial one (1) year contract with the option to extend for four (4) additional one (1) year periods for individual and aggregate stop loss insurance for the City of Denton’s Self-Funded Health Benefits Program; providing for the expenditure of funds therefor; and providing an effective date (RFP 5084–Individual and Aggregate Stop Loss Insurance for City of Denton awarded to Sun Life Financial, Inc. in the annual estimated amount of $975,000 for a five year estimated expenditure of $4,875,001). M.Consider adoption of an ordinance accepting competitive proposals and awarding a contract for the purchase of 69kV and 138kV Aluminum Pipe Bus for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (RFP 5072–Electric Utility 69kV and 138kV Aluminum Pipe Bus awarded to Techline, Inc. in the not to exceed amount of $380,000). The Public Utilities Board recommends approval (7-0). N.Consider adoption of an ordinance accepting competitive proposals and awarding a contract for the purchase of Polymer Station Class Arresters for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (RFP 5073–Supply of Electric Utility Polymer Station Class Arresters awarded to Stuart C. Irby Company in the not to exceed amount of $160,000). The Public Utilities Board recommends approval (7-0). O.Consider adoption of an ordinance accepting competitive proposals and awarding a contract for the purchase of galvanized steel transmission poles for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (RFP 5079–Single Purchase of Electric Utility Galvanized Steel Transmission Poles awarded to Falcon Steel Company in the not to exceed amount of $751,033). The Public Utilities Board recommends approval (7-0). City of Denton City Council Agenda December 18, 2012 Page 7 P.Consider adoption of an ordinance of the City of Denton, Texas, amending the Fiscal Year 2011-12 Budget and Annual Program of Services of the City of Denton to allow for an adjustment to the Health Insurance Fund of nine hundred thousand dollars ($900,000) from the previously amended budget amount of nineteen million, nine hundred fifty three thousand, one hundred thirteen dollars ($19,953,113) to twenty million, eight hundred fifty three thousand, one hundred thirteen dollars ($20,853,113) to provide for additional expenditure authority related to health care claims and fees; providing for retroactive approval, confirmation and ratification thereof; declaring a municipal purpose; providing a severability clause; providing an open meetings clause; and providing an effective date. Q.Consider adoption of an ordinance of the City of Denton, Texas approving and authorizing the City Manager or his designee to execute an Interlocal Cooperation Agreement by and between the City of Denton, Texas and Denton County, Texas for DME to update the electric utility facilities for the Denton County Jail Expansion Project and the Denton County Juvenile Probation and Detention Expansion Project; providing for an effective date. R.Consider approval of a resolution of the City of Denton, Texas relating to the issuance of refunding bonds and commercial paper by the Texas Municipal Power Agency and providing the approval of the City for the issuance thereof subject to certain parameters and conditions; providing for an effective date. S.Consider adoption of an ordinance of the City of Denton, Texas approving a “Memorandum of Understanding – Reverse Litter Campaign” by and between the Tarrant Regional Water District and the City of Denton, Texas to develop a reverse litter campaign; authorizing the City Manager or his designee to execute said Memorandum of Understanding on behalf of the City of Denton; providing for the expenditure of funds therefor; providing an effective date. The Public Utilities Board recommends approval (7-0). T.Consider approval of a resolution of the City Council of the City of Denton, Texas authorizing the approval of an “agreement for construction, maintenance and operation of safety lighting systems within municipalities (University of North Texas pedestrian bridge agreement)” with the Texas Department of Transportation; providing for an effective date. U.Consider approval of a resolution regarding a Branding/Marketing Proposal presented by the Economic Development Partnership Board for a new Denton Airport Logo, Tag Line, Anthem and Name. The Economic Development Partnership Board recommends approval (9-0). V.Consider adoption of an ordinance granting to Oncor Electric Delivery Company LLC a non-exclusive franchise for the purpose of constructing, maintaining, and using an electric delivery utility system in the City of Denton; regulating the construction work done by the grantee in the City; requiring joint use of poles, trenches, and conduits in certain instances; prescribing the relationship and relative rights between grantee and others with respect to construction in the City City of Denton City Council Agenda December 18, 2012 Page 8 and location of facilities; prescribing the duties, responsibilities, and rule making authority of the City Manager and the City with respect to administration of this franchise; requiring certain records and reports and providing for inspections and location of principal offices; reserving to the governing body of the City the right to set charges and rates of grantee; providing the rights and responsibilities of the governing body in setting the rates; providing for enforcement of the franchise; prescribing the compensation to the City from the grantee for the franchise privilege; providing for assignment of the franchise; providing indemnity of the City and its employees; providing for good faith effort; providing for insurance; setting forth the term of the franchise and its renewal; repealing Ordinance No. 2001-405 as amended; providing for acceptance of the franchise by grantee; finding that the meeting at which this Ordinance is passed is open to the public; providing for severability; and providing an effective date. (Final Reading) W.Consider approval of a resolution by the City Council of the City of Denton, Texas supporting the energy efficiency goals established in Senate Bill 898 enacted by Texas Legislature during the 82nd Legislative Session of 2011; providing for an effective date. The Council Committee on the Environment recommends approval (3-0). X.Consider adoption of an ordinance of the City of Denton, Texas, authorizing the City Manager, or his designee, to execute a Contract of Sale (herein so called), as attached to the ordinance and made a part thereof as Exhibit “A”, by and between the City of Denton (the “City”), and Weldon Wilson and wife, Terri Wilson (collectively, the “Seller”), contemplating the sale by Seller and purchase by City of a 2.123 acre tract of land, more or less, being generally located at S. Mayhill Road north of Gayla Drive, in the Gideon Walker Survey, Abstract No. 1330 in the City of Denton, Denton County, Texas (the “Property Interests”); for the purchase price of One Hundred Thirteen Thousand Seven Hundred Fifty One and No/100 Dollars ($113,751.00) for landfill operations; authorizing the City Manager, or his designee, to execute and deliver any and all other documents necessary to accomplish closing of the transaction contemplated by the Contract of Sale; authorizing the expenditure of funds therefor; and providing an effective date. Y.Consider adoption of an ordinance providing for acceptance of eligible Non- Annexation Agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as DH-7, consisting of approximately 143 acres of land located on the east and north sides of Teasley Lane, south of Teasley Harbor Subdivision and west of Southlake Drive, and more specifically identified in Exhibit “A” attached thereto; providing for severability; and providing an effective date. Z.Consider adoption of an ordinance providing for acceptance of eligible Non- Annexation Agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as DH-9, consisting of approximately 298 acres of land located north of Pockrus Page Road, north, south and northeast of Edwards Road, and more specifically identified in Exhibit “A” attached thereto; providing for severability; and providing an effective date. City of Denton City Council Agenda December 18, 2012 Page 9 AA.Consider adoption of an ordinance providing for acceptance of eligible Non- Annexation Agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as DH-12, consisting of approximately 1,154 acres of land located south of E. University Drive, east of N. Mayhill Road, north and south of Blagg Road, north and south of Mills Road, and east and west of S. Trinity Road, and more specifically identified in Exhibit “A” attached thereto; providing for severability; and providing an effective date. BB.Consider adoption of an ordinance approving a Letter Amendment to the Transmission Operator Consulting Services Agreement dated January 1, 2012, wherein the City of Denton, Texas is continuing the services of the Garland Power & Light as its Transmission Operator; authorizing the expenditure of funds therefor; providing an effective date. CC.Consider adoption of an ordinance of the City of Denton, Texas, authorizing the City Manager, or his designee, to execute a Contract of Sale (herein so called), as attached thereto and made a part thereof as Exhibit “A” by and between the City of Denton (the “City”), and Haeussler Properties, LP, a Texas limited partnership (the “Seller”), contemplating the sale by Seller and purchase by City of a 1.968 acre tract of land, more or less, being generally located in the 1200 block of South Mayhill Road in the M.E.P. & P.R.R. CO. Survey, Abstract No. 927 in the City of Denton, Denton County, Texas (the “Property Interests”); for the Purchase Price of Two Hundred Sixty Three Thousand and No/100 Dollars ($263,000.00); authorizing the City Manager, or his designee, to execute and deliver any and all other documents necessary to accomplish the closing of the transaction contemplated by the Contract of Sale; authorizing the expenditure of funds therefor; and providing an effective date.(Parcel M120 – Mayhill Road Widening and Improvements project) 5.PUBLIC HEARINGS A. Hold a public hearing and consider adoption of an ordinance designating and describing the boundaries of Tax Increment Reinvestment Zone Two for an industrial district of Denton, Texas; establishing the duration of the Zone; establishing a Tax Increment Fund; establishing a Board of Directors for the Tax Increment Reinvestment Zone; making certain findings and other matters related thereto; and providing an effective date. B. Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas designating portions of certain retail establishments, public buildings, and food establishments as nonsmoking areas; providing notification requirements; prohibiting smoking in designated nonsmoking areas; providing exceptions; providing penalties; providing a severability clause, repealing Ordinance 86-69, Ordinance 93-193 and Chapter 14 Article IV (Smoking) of the Code of Ordinances, and any other ordinance in conflict herewith; and providing for an effective date. City of Denton City Council Agenda December 18, 2012 Page 10 C.Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, amending Subchapters 22 of the Denton Development Code, relating to Gas Well Drilling and Production, Definitions, and Procedures; providing a cumulative clause; providing a severability clause; providing for a penalty; and an effective date. (DCA12-0005) 6. ITEMS FOR INDIVIDUAL CONSIDERATION A.Consider approval of a resolution regarding the 2013 State Legislative Program of the City of Denton for the 83rd Texas Legislature and providing for an effective date. B.Consider approval of a resolution of the City of Denton, Texas, in support of the passage of legislation during the 83rd State Legislative Session that will create an additional exemption to the “Vested Rights” Law, Texas Local Government Code, Chapter 245, which will allow local governments to enact ordinances relating to health and safety regulations as applied to gas drilling and production activities; and providing for an effective date. C.Consider adoption of an ordinance amending Ordinance No. 2012-024, as amended by Ordinance Nos. 2012-126 and 2012-131, 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, providing for an extension of the moratorium, providing a cumulative clause, providing a severability clause, and providing an effective date. D.Consider appointments to the Denton County Housing Finance Corporation. 7. CITIZEN REPORTS A. Review of procedures for addressing the City Council. B. Receive citizen reports from the following: 1. Janet Shelton regarding predatory lending. 2. Melanie Vest regarding predatory lending. 3. Leah Jordan regarding predatory lending. 8. 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 City of Denton City Council Agenda December 18, 2012 Page 11 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: THECITYOFDENTONCITYCOUNCILCHAMBERSISACCESSIBLEIN ACCORDANCEWITHTHEAMERICANSWITHDISABILITIESACT.THECITYWILL PROVIDESIGNLANGUAGEINTERPRETERSFORTHEHEARINGIMPAIREDIF REQUESTEDATLEAST48HOURSINADVANCEOFTHESCHEDULEDMEETING. PLEASECALLTHECITYSECRETARY'SOFFICEAT349-8309ORUSE TELECOMMUNICATIONSDEVICESFORTHEDEAF(TDD)BYCALLING1-800-RELAY- TXSOTHATASIGNLANGUAGEINTERPRETERCANBESCHEDULEDTHROUGHTHE CITYSECRETARY’SOFFICE. AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 DEPARTMENT: ACM: John Cabrales, Jr. SUBJECT Receive a report, hold a discussion and give staff direction regarding the 2013 State Legislative rd Program of the City of Denton for the 83 Texas Legislature, including key legislative issues and strategies. BACKGROUND Council received a report and held a discussion regarding the draft 2013 State Legislative Program. Per the discussion, council requested staff bring back a revised draft program to address payday lending and specifically identified Chapter 245 of the Local Government Code, known as the vesting rights statute. Below are the positions that have been added for your consideration: Support legislation that would allow cities to enact ordinances regulating development, including but not limited to issues related to Chapter 245 Local Government Code (under Land Use Resources, page 12). Oppose state pre-emption of municipal authority in the regulation of payday lenders, unless proposed legislation provides adequate protections from aggressive and harmful lending practices (under General Government, page 14). Attached is the draft 2013 State Legislative Program, as revised. Staff has worked with the Texas Municipal League (TML), the TML Big City group, our legislative consultants, and other cities to identify these legislative issues of interest to Denton. The adoption of this program allows City representatives to work with state legislators on supporting and opposing legislation that that will accomplish our goals. It also gives city representatives the ability to react quickly to proposed legislation and authority to enter testimony on behalf of the City regarding these issues. RECOMMENDATION 1. Adopt the 2013 State Legislative Program at the December 18 Council meeting as amended. EXHIBITS 1. 2013 State Legislative Program 2. Resolution for consideration to approve the State Legislative Program Respectfully submitted: Lindsey N. Baker Assistant to the City Manager Intergovernmental and Media Relations Exhibit1 City of Denton 2013Legislative Agenda rd 83Texas Legislative Session City of Denton 2013 State Legislative Program Page0 TABLE OF CONTENTS I.City of Denton Mayor and Council Contact Information2 II.City Manager, City Attorney and City Staff Contact Information3 III.2013State Legislative Program Adopting Resolution4 IV.General Legislative Policy5 V.Priority Legislative Agenda7 VI.Discussion of Priority Legislative Issues8 VII.General Legislative Agenda12 City of Denton 2013 State Legislative Program Page1 City of Denton City Council Members Mailing Address for all of Council: 215 E. McKinney, Denton, TX 76201 The City Hall Phone number for Council –940-349-7717 Mayor Mark Burroughs Mark.Burroughs@cityofdenton.com Mayor Pro Tem–At Large Place 5 Pete Kamp Pete.Kamp@cityofdenton.com Council Member –District 1 Kevin Roden Kevin.Roden@cityofdenton.com Council Member –District 2 Dalton Gregory Dalton.Gregory@cityofdenton.com Council Member –District 3 Jim Engelbrecht Jim.Engelbrecht@cityofdenton.com Council Member –District 4 Chris Watts Chris.Watts@cityofdenton.com Council Member –At Large Place 6 James King James.King@cityofdenton.com City of Denton 2013 State Legislative Program Page2 City Manager, City Attorney and City Staff The Denton City Council and staff are glad to provide information, research issues and testify on the City of Denton legislative issues. Municipal Offices: 940-349-8200 City of Denton 215 E. McKinney Denton, Texas 76201 www.cityofdenton.com George Campbell Anita Burgess City ManagerCity Attorney 940-349-8306 940-349-8336 George.Campbell@cityofdenton.comAnita.Burgess@cityofdenton.com Howard Martin Jon Fortune Assistant City ManagerAssistant City Manager UtilitiesOperations 940-349-8232 940-349-8535 Howard.Martin@cityofdenton.comJon.Fortune@cityofdenton.com John Cabrales, Jr.Bryan Langley Assistant City ManagerAssistant City Manager Development ServicesAdministrative Services 940-349-8509940-349-8224 John.Cabrales@cityofdenton.comBryan.Langley@cityofdenton.com Lindsey Baker Assistant to the City Manager Intergovernmental & Media Relations 940-349-8234 Lindsey.Baker@cityofdenton.com City of Denton 2013 State Legislative Program Page3 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF DENTON, TEXAS, ADOPTING THE CITY OF rd DENTON’S 2013 STATE LEGISLATIVE PROGRAM FOR THE 83TEXAS LEGISLATURE; AND PROVIDING AN EFFECTIVE DATE. rd WHEREAS, the 83Texas Legislature will commence in January 2013; and WHEREAS, appraisal caps, revenue caps, budgeting authority and revenue sources, and many other legislative issues affecting local government will be considered; and WHEREAS, the City ofDenton desires to adopt its 2013State Legislative Program for rd the 83Texas Legislature; NOW, THERFORE, THE COUNCIL OF THE CITY OF DENTON HERBY RESOLVES: rd SECTION 1.That the City of Denton’s 2013State Legislative Program for the 83 Texas Legislature is adopted as set forth herein and made a part of this resolution for all purposes. SECTION 2.That the Mayor and City Council, City Manager and the City Attorney, or their designees shall communicate the items included in the 2013State Legislative Program to members of the Texas Legislature. SECTION 3.The City Manager, or his designee, is directed to draft appropriate legislation, seek a sponsor, and actively pursue passage of such legislation by providing testimony from the Mayor and City Council and City Staff and through other appropriate means. th PASSED AND APPROVED this the 11day of December 2012. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: _________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ City of Denton 2013 State Legislative Program Page4 GENERAL LEGISLATIVE POLICY PRESERVE THE CITY’S STRATEGIC GOALS & INTERESTS STATEMENT OFPRESERVATION As a general policy, the City of Dentonseeks to preserve its current authority to govern the city, its citizens, and its property. The City will oppose any legislation viewed as detrimental to the City’s strategic goals; or that is contrary to the health, safety, and welfare of its citizens; or that mandates increased costs or loss of revenues; or that would diminish thefundamental authority of the City. SUPPORTLEGISLATION THAT ADVANCES THE CITY’S STRATEGIC GOALS & INTERESTS STATEMENT OF SUPPORT Likewise, the City supports any legislation viewed as advancing the City’s strategic goals; or that improves the health, safety, and welfare of its citizens; or that responsibly increases revenues; or that advances the City’s authority to conduct the public's business.The City will oppose any initiatives that seek to erode municipal authority or that otherwise have a negative impact on municipal operations, including but not limited to legislation that would: Erode home rule authority; Detrimentally affect the City’s financial position by reducing revenue streams or increasing costs; Erode the authority of Texas cities to manage and control their rights-of-way or other public property and to be reasonably compensated for such use; Erode current municipal economic development authority; Erode the current authority of Texas cities to enact a system and setthe level of impact fees for new development; and Further restrict cities’ ability to adopt or amend zoning regulations, and annex property in a city’s extraterritorial jurisdiction. FORM COALITIONS WITH PARTIES THAT SHARE COMMON GOALS AND INTERESTS WITH THE CITY FORM COALITIONS The City will form strategic partnerships with cities, political subdivisions, and private sector entities that share commongoals with the City of Denton. Additionally, the City will work in coordination with organizations such as the Texas Municipal League when their adopted positions are inline with the legislative objectives and goals of the City. The formation of strategic partnerships and coordinated efforts is intended to provide the City with a stronger presence in the legislative process. City of Denton 2013 State Legislative Program Page5 GOALS OF THE CITY’S LEGISLTIVE ACTIVITIES STATEMENT OF GOALS The fundamental goal of all City of Denton’s legislative activities is to produce positive outcomes for the citizens of Denton as a whole. Numerous proposals in the Texas Legislature have the potential to seriously impact the ability of the City to carry out its overall mission. By taking a proactive role in monitoring and commenting on proposals in the Texas Legislature,we are working to ensure that the citizens of Denton can continue toenjoy the quality of life they have come to expect and deserve. City of Denton 2013 State Legislative Program Page6 PRIORITY LEGISLATIVE AGENDA PRIORITY LEGISLATIVE ISSUES 1.Preserve Local Budgeting Authority and Revenue Sources Opposelegislation that would unduly restrict the ability of the City to set its own budget or raise the necessary revenue to provide services to City residents and businesses. 2.Preserve Local Control of Land Use Planning and Zoning Supportlegislation that preserves local land use authority. Opposelegislation that would erode local land use authority by restricting the ability of cities to zone or rezone properties. 3.Preserve Local Control of Denton Municipal Electric Opposelegislation that would deregulate Municipally Owned Utilities or amend their governing structure. Supportlegislation that would preserve Municipally Owned Utilities’ authority and governing structure that maintain a diversified energy portfolio. City of Denton 2013 State Legislative Program Page7 DISCUSSION OF PRIORITY LEGISLATIVE ISSUES Preserve Local Budgeting Authority and Revenue Sources The City of Dentonwill opposelegislation that will unduly restrict the ability of the City to set its own budget or raise the necessary revenue to provide services expected by City residents and businesses. ISSUE During the last several Texas Legislative Sessions, proposals have been set forth that would severely limit the ability of cities to set their budgets or raise adequate revenues to carryout their fundamental functions. For example, numerous proposals to “cap” local revenuesand property appraisals have been filed in the Texas Legislature. Every elected official in the City of Denton is sensitive to the tax burden our citizens and businesses pay,and is accountable to the local electorate for the decisionsthey make. However, we are also mindful that it takes a great deal of flexibility with our local budget to meet the unique demands for services while at the same time preserving the high standards our community has come to expect. PROBLEM Appraisal and revenue caps undermine the ability of local governments to meet the individual needs and circumstances of their cities. Additionally, one size fits all “caps” violate the fundamental principle of local control. Citizens and businesses have numerous opportunities to provide input to the City of Denton’s budget and tax rate setting processes. Most importantly the citizens of our City get to voice their approval or disapproval of our budgeting performance and tax rates every time we hold a City election. Unfortunately, extremely low appraisal and revenue caps can produce numerous problems. For instance, appraisal caps shift the inequitable tax burden to businesses and new homeowners. This inequitable shift can produce serious long-term negative consequences for the local economy. Revenue caps,on the other hand,require the City to cut services or take on more debt to fund local projects and services. These typesof “caps” are particularly harmful to a city like Denton,because it prevents the City from adequately dealing with the infrastructure needs brought on by tremendous population growth. It is inappropriate for the State of Texas to expect local governments to provide numerous public services with no funding from the State, while at the same time unduly restricting the ability of local governments to raise the necessary levels of revenue to provide the required services. SOLUTION If revenue caps are going to be applied to local governments they should be applied uniformly to the state budget as well. In short,the same rules should apply to all levels of government. The State could also supplement local government funding as other states thatimpose revenue caps have done. City of Denton 2013 State Legislative Program Page8 Preserve Local Control of Land Use Planning and Zoning The City of Dentonwill supportlegislation that preserves local land use authority and oppose legislation that will erode local land use authority by restricting the ability of cities to zone or rezone properties. ISSUE Over the past few legislative sessions various proposals have been introduced to restrict the ability of cities to enforce their traditional land use controls. Specifically, legislation that requires cities to compensate landowners anytime a zoning classification change is effected (often referred to as a “downzoning”),has come dangerously close to becoming the law. Under these proposals,cities would have to compensate landowners, even if the proposed zoning changes did not interfere with the current or intended use of the property. In addition to compensating landowners for zoning changes, proposals have been considered that would require compensation for numerous types of city regulations. For example, previously proposed legislation would have required cities to compensate landowners if they restricted the ability of patrons to smoke on premises or limited the time of day that alcohol could be served. All of these types of local restrictions have been debated under the theory of “regulatory takings.” Additional legislative proposals would have prevented cities from ever changing the zoning classification of a property if any type of basic permit or site plan has been filed with any governmental entity. Since 1999 the Texas Legislature has continually expanded the “permit vesting” statute to include different aspects of city land use authority. The expansion of the “permit vesting” statute is beginning to interfere with the ability of cities to impose orderly, efficient, and comprehensive land use and development plans for their communities. PROBLEM Restricting the ability of cities to properly regulate land uses ultimately prevents them from being able to respond to the needs and demands of their citizens. For example, land use controls are used to keep undesirable businesses from locating in neighborhood-type settings. Additionally, one of the main reasons people live in cities is to have the protection of a regulated land use system. In short,when a home or business locates in a particular city they do so,in part, to ensure that an incompatible structure will not be placed next to their property. SOLUTION The ability of most cities to manage growth and development is based on the Texas constitution’s home rule provisions. Cities are allowed to amendcharters and pass ordinances as long as they donot conflict with the constitution or general laws enacted by the state legislature. Thismeans that each home rule city can make its own decisions about what planning tools and techniques are most appropriate to its situation unless those tools have beenproscribed by the Texas legislature. The State should be very cautious in proscribing solutions that are only applicable to individual situations because of the vast differences between cities in this large state. City of Denton 2013 State Legislative Program Page9 Preserve Local Control of Denton Municipal Electric The City of Denton will opposelegislation that deregulates Municipally Owned Utilities or amends their governance authority. ISSUE For the first time in over a decade, the 2011 State Legislative session saw bills introducedregarding partial deregulation for specific Municipally Owned Utilities (MOU). Ultimately, none of the bills passed into law.However, this type of legislative pressure toward specific MOUs can have a widespread, negative impact and unforeseen consequences on MOUs throughout the state.Municipalities owning an electric utility, such as in Denton's case, retain local regulatory authority through its main governing body, the City Council.It is the role and choice of these City Councils to determine each MOUs energyfuture by exercising its authority whether to opt-in to the deregulated market or to retain its local authority.In April, 2001, the Denton City Council took a wait-and-see approach and exercised its authority choosing not to opt-in to deregulation. To date, there has been no viable reason for Denton to enter into the deregulated market. Requiring MOUs to participate in the deregulated market essentially eliminates the authority of the governing bodies of MOUs and forces them to operate under the same guidelines as investor owned utilities.Historically, DME electric rates have remained stable and competitively priced. Mandating that an MOU participate in the deregulated market not only increases its financial burden, but also ensures that the increased costs are passed through to the DME ratepayers, thus placing DME at a competitive disadvantagein the electric market.In addition, should an MOU such asthat owned by the citizens of Denton berequired to opt-in, it mitigates the strategic measuresthat the local citizens have enacted such as requiring more renewable resources from their MOU. PROBLEM Austin Energy’s (AE) rate increase has raised the deregulation issue and it is anticipated that legislation will be proposed to deregulate all ora portion of AE.The opt-in discussions concerning AE may be expanded to include all MOUs.For Denton to enter the deregulated market, the additional operating expense would be substantial.The current and additional operating expenses could be spread across a smaller customer base should customers exercise their “power to choose”.A reduction in DME’s customer base would ensure that its remaining customers would have to absorb the increased costs in the form of higher electric rates. SOLUTION MOUs must preserve the local authority and governing structure to provide affordable electric service and energy portfolio diversity to its ratepayers. City of Denton 2013 State Legislative Program Page10 Preserve Local Control of Denton Municipal Electric The City of Denton will supportlegislation that preserves the authority and governance structure of Municipally Owned Utilities that maintain a diversified energy portfolio. ISSUE During recent sessions of the Texas State Legislature, proposals were sent forth regarding Texas’ Renewable Portfolio Standard (RPS) and its proposed soft target for non-wind renewable generation.Restricting the types of generation which would qualify for inclusion in the RPS essentially eliminates the authority of the governing bodies of Municipally Owned Utilities (MOU) to procure renewable energy sources that are financially feasible for the MOU to maintain a diversified energy portfolio. As such, the increased financial burden for the City of Denton would be passed through to Denton Municipal Electric (DME) ratepayers. The City of Denton is a nationally recognized environmental leader because of its continued diversification of DME’s energy portfolio.At no additional costto its ratepayers, DME provides more wind energy per capita than any other city in the United States and offers one of the largest rebates for the installation of renewable energy generation in Texas.The City of Denton and DME recognize the importance of reducing the overall dependence on fossil fuel generation, while, at the same time being fiscally responsible to its citizens and ratepayers. PROBLEM Any legislation that eliminates MOUs’ authority to determine and maintain a diversified energy portfolio is fiscally irresponsible to the ratepayers.While some areas are more suited for specific types of renewable generation, not all utility scale generation is appropriate in all locations.For example, the cost of constructing and operating solar energy generation can be prohibitive. While solar costs have declined over recent years, the capital costs, scarcity of land, lack of electric infrastructure, and diminished levels of generation output as compared to conventional generation can substantially drive the cost per megawatt-hour of solar energy production upward. It is unrealistic and cost prohibitive for the State of Texas to expect MOUs to provide economically priced electricity to its citizens while requiring a diversified energy portfolio that includes predetermined amounts of specific renewable sources without funding from the State. SOLUTION MOUs must preserve the local authority and governing structure to provide affordable electric service to its ratepayers.If energy portfolio diversity becomes a requirement, MOUs should have the option to determine which renewable generation source is most suited to each MOU’s service area.If a generation requirement is mandated, it should be applied uniformly to investor owned utilities, cooperatives, and MOUs.In addition, the State should supplement local government funding of the construction of utility scale renewable generation to offset the impact to the citizens of Denton. City of Denton 2013 State Legislative Program Page11 GENERAL LEGISLATIVE AGENDA Revenue and Taxation Support legislation that would require mandatory disclosure of real estate sales prices. Opposelegislation that would lengthen or broaden the scope of the current sales tax holiday. Opposeany legislation that would impose a sales tax holiday for textbooks. Oppose legislation that would restrict the ability of cities to impose and collect municipal impact fees from new developments. Land Use and Resources Supportlegislation that would provide municipalities the authority to regulate and enforce zoning, building codes, and property maintenance codes within extraterritorial jurisdictions (ETJ). Support legislation that would address the failure of utility companies to relocate their facilities in a timely manner as required by current law. Opposelegislation that would reduce a municipality’sauthority and discretion to approve the creation of a special district within a city’s incorporated area or ETJ, including the expansion of a district’s boundaries or powers. Opposelegislation that would erode city annexation authority. Opposelegislation that wouldreduce or eliminate development fees, exactions,or building permits. Opposelegislation that wouldrestrict cities’ ability to adopt or amend zoning regulations, or vest or otherwise create a property right in a zoning classification. Supportlegislation that would allow local governments to enact ordinances relating to health and safety regulations as applied to gas drilling and production activities. Support legislation that would allow cities to enact ordinances regulating development, including but not limited to issues related to Chapter 245 Local Government Code. Utilities Supportlegislation that preservesCongestion Revenue Rights (PCRRs) assigned to municipal utilities in exchange for supporting the nodal market construct. Supportlegislation that preserves the Self Regulation of Municipal Electric Utilities. City of Denton 2013 State Legislative Program Page12 Supportlegislation that protects the ability of governmental entities to maintain confidentiality of certain critical documents and activities. Supportlegislation that requires market participants and Retail Electric Providers (REPs) to be properly capitalized before they are allowed to participate in the ERCOT market. Supportlegislation that requires more stringent credit requirements for the startup of Retail Electric Providers (REPs). Opposelegislation that requires municipal electric utilities to pay uplifted charges for those ERCOT Retail Electric Providers (REP) that declare bankruptcy or for any other ERCOT short pay charges. Oppose legislation that would extend electric subsidies provided by municipal utilities to four-year state universities, upper level institutions, Texas state technical colleges or liberal arts colleges. Opposeany legislation that will increase ERCOT Fees. Opposelegislation that exempts any further exemptions to the drainage fee. Opposeany legislation that would limit or prohibit a city's ability to make and sell compost/mulch products, inside and outside of the city limits. Supportlegislation that would fund the state water plan in orderto reduce the stress on current local and regional sources of water, provided that such legislation does not negatively impact local revenue. Opposelegislation that would impose state “tap fees” or any other type of state charge on municipal water systems. Transportation Support legislation that would retain limited authority for TxDOT to enter into public-private partnerships on specific projects. Supportlegislation that would identify additional transportation revenue to enhance statewide and regional ability to maintain and improve transportation infrastructure,and that would provide metropolitan areas with flexible solutions to solve problems and ensure that areas contributing to transportation solutions will not be penalized with a loss of traditional transportation funding. Supportlegislation that would constitutionally protect all revenues in Fund 6 and discontinue the diversion of transportation revenues to non-transportation purposes, and appropriate all revenues from highway user fees and taxes to fund transportation. City of Denton 2013 State Legislative Program Page13 Support legislation that would index the motor fuels tax to reduce the decline in purchase power of transportation funding. Supportlegislation that would increase vehicle registration fees to address transportation funding needs. Supportlegislation that would enforce existing regulations and penalties of driving requirements (e.g. vehicle registrations, driver licenses, and vehicle insurance). Opposelegislation that would create a Regional Mobility Authority in the four county area of North Central Texas including Dallas, Denton, Collin and Tarrant Counties for the purpose of administering funds received through revenue sharing agreements. Supportlegislation that directly benefits Denton County Transportation Authority, if such proposals do not adversely affect the city’s interest. Public Safety Support legislation that would require 100 percent reimbursement of costs incurred by cities for services provided during emergency evacuation and shelter operations resulting from an emergency evacuation ordered by the governor or the governor’sDivision of Emergency Management. Opposelegislation that further restricts a city’s ability to implement a photographic red light enforcement system to use cameras at traffic lights and impose a civil penalty for running the light. General Government Opposestate pre-emption of municipal authority in the regulation of payday lenders, unless proposed legislation provides adequate protections from aggressive and harmful lending practices. Supportlegislation that heightens environmental standards, improves air and water quality and protects the health, safety, and welfare of Texans. Supportlegislation that would exempt cities from any federal collective bargaining legislation that may become law in the future. Supportlegislation amending Section 11.1825 of the Tax Code by adding that community housing development organizations (CHDOs) must receive an exemption from taxation from any affected municipality prior to receiving a tax exempt status from the local property appraisal district. Supportlegislation that directly benefits UNT and/or TWU, if such proposals do not adversely affect the city’s interest. Supportlegislation that directly benefits Denton ISD, if such proposals do not adversely affect the city’s interest. City of Denton 2013 State Legislative Program Page14 Opposelegislation that would further reduce funding to Denton ISD, if such proposals do not adversely affect the city’s interest. Supportlegislation that would provide funding for Early Childhood Programs, including full-day service pre-kindergarten programs. City of Denton 2013 State Legislative Program Page15 Exhibit2 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 DEPARTMENT: ACM: George C. Campbell SUBJECT Receive a report, hold a discussion, and give staff direction regarding amendments to the City of Denton smoking ordinance (86-069 as amended by 93-193) and revisions to the draft ordinance recommendations as presented by the Ad-hoc Citizens Advisory Committee. BACKGROUND City Council received a report at the January 10, 2012 work session, regarding amendments to the City of Denton smoking ordinance (86-069 as amended by ordinance 93-193). Council directed staff to draft a resolution creating an ad-hoc citizen advisory committee that would advise staff and Council regarding a comprehensive update to the current smoking ordinance, with an objective of adopting amendments for implementation effective by January 1, 2013. Staff provided council with an Informal Staff Report on September 7, 2012, which included a preliminary list of recommended committee members and background information on the committee composition in preparation for the September 18, 2012 Council Meeting. Staff then received direction from City Council at the September 18 Work Session, regarding the composition and appointments of the committee. Council adopted Resolution R2012-029, which created the committee and its charge, then appointed the members to the committee as an Item for Individual Consideration later that evening. Council received a report from the Ad-hoc Citizen Advisory Committee on Smoking Regulations on December 11, 2012 during a work Revisions to Draft Ordinance Per the discussion that took place at the December11 Work Session, staff has taken the feedback received from council and provided various options in a second revised draft ordinance. The revisions are included in Exhibit 2, which is a red-lined draft ordinance, and are outlined below: Adds a definition of Billiard Halls: a place of amusement whose chief purpose is providing the use of billiard/pool tables to the public. Amends the definition of Open-Aired Patio to clarify permissible enclosures and structures: a patio that has no fencing surrounding the seating area of the patio, except for open-aired construction (such as wrought iron, slats, or lattice work), or fencing which would allow for more than 50 percent light and air penetration, or fences which do not exceed four (4) feet in height. Walls contiguous to the primary business are not deemed fencing within this definition. Ceilings of solid or open-aired construction (such as slats Agenda Information Sheet December 18, 2012 Page 2 or lattice work) are permitted notwithstanding the requirement of 50 percent light and air penetration. Provides two options regarding the discussion on smoking in bars, including language that addresses the statutory prohibition of allowing entry to persons under the age of 18 into an establishment with a cigarette vending machine. o otherwise per no exception; or Option 2: Language has been added to Section 4, which treats exceptions to the o A bar that does not allow admittance or employ persons under the age of eighteen (18) years, or which is permitted to sell Removes removing this term, smoking would not be permitted at public transit bus stops and train platforms. Regarding enforcement of the ordinance, the draft, as originally constructed, makes the individual who is smoking or in possession of lit tobacco, weed, or other plant product subject to enforcement actions, as it relates to this ordinance. The original draft language makes it difficult for the city to enforce regulations of this ordinance if a business owner is in violation of the provisions. Citations could only be issued to the patron who is smoking, but not to the business owner who is allowing the violation to occur. Staff is including, for discussion purposes, the Arlington and City of ordinances to showcase how other cities/entities have broached the issue of business owner liability. City of Arlington Smoking Ordinance: The owner, manager, or operator of a [restaurant], barbilliard hall, bingo [hall], o or bowling center commits an offense if he or she designates or maintains a smoking area in violation of this [ordinance]. City of Frisco Smoking Ordinance: It shall be unlawful for any person who owns, manages, operates, or otherwise o controls the use of any premises subject to regulation under this ordinance to fail to comply with all of its provisions. nd Legislature: An employer or an owner, manager, operator, or employee of an establishment o regulated under this ordinance shall inform a person violating this ordinance of the appropriate provisions pertaining to the violationAn owner, manager, or Agenda Information Sheet December 18, 2012 Page 3 operator of a public place or an employer in a place of employment, as applicable, who violates this section, commits an offense. Following the discussion at the work session, staff will amend the draft ordinance and provide hard copies of the document for purposes of the public hearing and consideration of the ordinance the same evening. EXHIBITS 1.Municipal Smoking Ordinance Matrix (in alphabetical order) 2.Draft Ordinance on Smoking Regulations (Red-lined version), as revised by staff per Respectfully submitted: ______________________________ George C. Campbell City Manager Prepared by: _______________________ Lindsey Baker Assistant to the City Manager 9ãwz,z· ORDINANCE NO. _____________ AN ORDINANCE OF THE CITY OF DENTON, TEXAS REPEALING ORDINANCE 86-69, ORDINANCE 93-193 AND CHAPTER 14 ARTICLE IV (SMOKING) OF THE CODE OF ORDINANCES, AND ANY OTHER ORDINANCE IN CONFLICT HEREWITH; DESIGNATING PORTIONS OF CERTAIN RETAIL ESTABLISHMENTS, PUBLIC BUILDINGS, AND FOOD ESTABLISHMENTS AS NONSMOKING AREAS; PROVIDING NOTIFICATION REQUIREMENTS; PROHIBITING SMOKING IN DESIGNATED NONSMOKING AREAS; PROVIDING EXCEPTIONS; PROVIDING PENALTIES; PROVIDING A SEVERABILITY CLAUSE, PROVIDING FOR REPEAL OF ANY ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton recognizes that the smoking of tobacco, weeds or other plant products has been demonstrated to have a detrimental effect on not only the smoker but others in close proximity to the smoker; and WHEREAS, the City Council determined it to be in the public interest to consider the possibility of enhancing the Cnd WHEREAS, the City Council enlisted the assistance of an ad- committee to review smoking regulations in Denton; and WHEREAS, this committee met on October 11, October 25, November 15, and December 3, 2012; and WHEREAS, this committee has forwarded certain recommendations regarding smoking regulations to the City Council for consideration; and WHEREAS, the City Council is appreciative of the work of this committee, and finds it in the public interest to enact enhanced smoking regulations in the City of Denton; NOW, THEREFORE; THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. Definitions. The following words, terms and phrases, when used in this ordinance, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Bar means an enclosed indoor establishment that is open to the public and is devoted primarily to the sale and service of alcoholic beverages for on-premises consumption. Billiard Hall means a place of amusement for which the chief purpose is providing the use of billiard/pool tables to the public. Page 1 of 7 9ãwz,z· Bingo parlor means an establishment owned, operated, or administered by a person or entity licensed or permitted by the State of Texas pursuant to V.C.T.A., Occupations Code, Chapter 2001. Cigar Bar means an establishment used primarily for the sale of cigar and cigar-related products and in which the serving of alcoholic beverages are incidental to such retail operations. Employee means an individual in the service of another under a contract of hire, whether express or implied, or oral or written, for direct or indirect monetary wages or profit, or an individual who Employer means a person or entity who uses the services of another under a contract of hire, whether express or implied, or oral or written, or uses the volunteer services of one or more individuals. Facility means improvements of a vertical nature, including, but not limited to, buildings, sheds, garages, and stadium structures and excluding horizontal improvements such as sidewalks, streets and parking lots. Fraternal Organization means a non-profit organization that: (1)is tax exempt under Section 501(c)(8), (10), or (19) of the Internal Revenue Code; (2)operates under a lodge system with a representative form of government; and (3)is organized for the exclusive benefit of the members of the organization and their dependents. Healthcare Facility means an office or institution in which care or treatment is provided for physical, mental, or emotional diseases or other medical, physiological, or psychological conditions. Operator means the owner or person in charge of a public place or place of employment, including an employer. Open-aired Outdoor Patio means a patio that has no solid fencing of any type or to any degree surrounding the seating area of the patio, the exemption being decorative except for open-aired fencing construction (such as wrought iron, slats, or lattice work), or fencing which would allow for more than 50 percent light and air penetration, or fences which do not exceed four (4) feet in height. ) surrounding the patio area. Walls contiguous to the primary business are not deemed fencing within this definition. Any outdoor patio area encased with one or more solid walls or partial walls extending vertically, excluding the solid wall of the bar or restaurant shall not be included in the exemption. Ceilings of solid or open-aired construction (such as slats or lattice work) are permitted notwithstanding the requirement of 50 percent light and air penetration. Place of Employment means an enclosed facility under the control of a public or private employer, including, but not limited to, work areas, private offices, employee lounges, restrooms, conference rooms, meeting rooms, classrooms, employee cafeterias, hallways, Page 2 of 7 9ãwz,z· construction areas, and temporary offices. This definition does not include such outdoor areas as construction sites, parking lots, or designated smoking areas, or any area where smoking is specifically allowed under this ordinance. Private Club means an organization that owns, leases, or occupies a building used exclusively for club purposes at all times and: (1)is operated solely for a recreational, fraternal, social, patriotic, political, benevolent, or athletic purpose, but not for pecuniary gain; (2)sells alcoholic beverages only incidentally to its operation; (3)the affairs and management of the organization are conducted by a board of directors, executive committee, or similar body chosen by the members at an annual meeting; (4)has established bylaws or a constitution (5)is exempt from federal income taxation under Section 501(a), Internal Revenue Code, as a club described by Section 501(c) (7) of that code. Public Place means an enclosed area the public is invited or allowed to enter. Restaurant means an enclosed indoor establishment that is open to the public and is devoted primarily to the sale and service of food for immediate consumption. The term includes a bar located within the establishment. Retail establishment means any establishment which primarily sells goods and/or services to the general public. Smoke/Smoking means to inhale, exhale, burn, or carry a lighted cigar, cigarette, pipe, or other smoking equipment, containing tobacco, weed, or other plant product. Tobacco Shop means a specialty retail establishment used primarily for the sale of tobacco products and accessories and in which the sale of other products is incidental. Tobacco Bar means a business that: (1)holds a permit under V.C.T.A., Tax Code, Chapter 155; and (2)holds an alcoholic beverage permit or license issued under V.C.T.A., Alcoholic Beverage Code, Chapters 25, 28, 32, or 69, or under V.C.T.A., Alcoholic Beverage Code, Section 11.10. SECTION 2. Smoking prohibited in certain public places. (a) It is unlawful for any person to smoke or possess a lit tobacco, weed or other plant product in any of the following public places: (1)An elevator used by the public; Page 3 of 7 9ãwz,z· (2)Healthcare facilities; (3)Any facility owned, operated or managed by the city; (4) Any vehicle owned by or under the control of the city; (5)Any retail establishment serving the general public except as otherwise permitted in this ordinance; (6)Lobbies, hallways, and other common areas in retirement facilities and nursing homes; (7)Any facility of a public primary or secondary school; (8)Child care and adult day care facilities; (9)A privately owned theater auditorium, movie house, or other enclosed facility which is open to the public for the primary purpose of exhibiting any motion picture, stage drama, musical recital, athletic event, or any other performance or event; (10)Public libraries, including exterior corridors, and any area within 30 feet of any public entrance; (11)Museums; (12)Restaurants; (13)Bars, except as otherwise permitted in this ordinance (Option 1); (14)Lobbies, hallways, and other indoor public areas in hotels and motels; (15)Bowling alleys (16)Pool/billiard halls; (17)Polling places; (18)Bingo Parlors, except as otherwise permitted in this ordinance; and (19)Public transportation vehicles, including buses and trains, and enclosed facilities in support of public transportation such as ticket, boarding, shelter, and waiting areas. SECTION 3. Smoking prohibited in places of employment. (a) It is unlawful for any person to smoke or possess a lit tobacco, weed or other plant product in places of employment, except as provided in Section 4 of this ordinance. (b) An employer shall communicate this prohibition to all prospective employees upon their application for employment. SECTION 4. Smoking not prohibited in certain places. Page 4 of 7 9ãwz,z· (a) Notwithstanding any other provision of this ordinance, the following areas shall not be subject to the smoking restrictions of this ordinance: (1)Private residences, except when used as a child care, adult day care, or health care facility; (2)Personal vehicles; (3)Private clubs and fraternal organizations; (4)Open-aired outdoor patio of a restaurant or bar; (5)A bar that does not allow admittance or employ persons under the age of eighteen (18) years, or which is permitted to sell tobacco products pursuant to V.T.C.A., Health and Safety Code Section 161.086 (Option 2); (6)Bingo Parlors which provide a solid physical barrier to separate the non-smoking section. Any existing bingo parlors shall have three (3) years from the effective date of this ordinance to construct such barrier; and (7)Tobacco shops, tobacco bars, and cigar bars. (b) Notwithstanding any other provision of this section, any owner, operator, manager or other person who controls any establishment or facility described in this section, may declare the entire establishment or facility as a nonsmoking establishment. SECTION 5. Signage. (a) The owner or person in control of an establishment in which smoking is prohibited by this ordinance shall: (1)Post a conspicuous sign at the main entrance to the establishment that shall contain the words "No Smoking, by City of Denton Ordinance" and which includes the universal symbol for no smoking, or other language that clearly prohibits smoking; and (2)Remove all ashtrays from any area in which smoking is prohibited. SECTION 6. If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstance is held invalid by any court of competent 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 7. Penalties. Option 1: It shall be unlawful for any person who owns, manages, operates, or otherwise controls the use of any premises subject to regulation under this ordinance to fail to comply with all of its provisions. Option 2: The owner, manager, or operator of an establishment regulated by this ordinance Page 5 of 7 9ãwz,z· commits an offense if he or she designates or maintains a smoking area in violation of this ordinance. Option 3: An employer or an owner, manager, operator, or employee of an establishment regulated under this ordinance shall inform a person violating this ordinance of the appropriate employer in a place of employment, as applicable, who violates this section, commits an offense. Any person violating this ordinance shall, upon conviction, be punished by a fine not to exceed Two Thousand Dollars ($2,000.00). SECTION 8. Ordinance 86-69, Ordinance 93-193, Chapter 14 Article IV (Smoking) of the Code of Ordinances, and any other ordinance in conflict herewith are hereby repealed. SECTION 9. This ordinance shall become effective fourteen (14) days from the date of its , and the City Secretary is hereby directed to cause the caption of this ordinance to be passage published twice in the Denton Record-Chronicle, the official newspaper of the City of Denton, Texas, within ten (10) days of the date of its passage. Page 6 of 7 9ãwz,z· 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: __________________________________ Page 7 of 7 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 DEPARTMENT: Economic Development Department ACM: John Cabrales SUBJECT Consider adoption of an ordinance adopting Rental Guidelines and a Schedule of Rental Fees for Williams Square, located between East Hickory and Mulberry Streets, and providing an effective date. BACKGROUND Many years ago, the Williams Square parking lot, located between E. Hickory and Mulberry Streets, behind Wells Fargo Bank, was deeded to th in the center of the lot. The parking located to the west, bordered by Austin, Hickory and Mulberry Streets, is private property owned by Wells Fargo Bank. The City leases 58 spaces in County for Courthouse-on-the Square employee parking. (See attached map; the area marked with stripes is City property.) In recent years, many groups have expressed an interest in using the area for events, such as 35 Ccity owned property, staff believes it is important to monitor and control the use of the space, taking into consideration the fact that the City leases 58 spaces to Wells Fargo Bank and 27 spaces to Denton County for use during business hours (8 am to 5 pm) Monday through Friday. anything comparable to this area. Staff also sought input from the Parks Department, Community Events Coordinator, and event coordinators who currently use this area, including 35 Denton and the Industrial Street Guild. Based on this research, the following is recommended: Rental Rates: Half day (six hours) $ 50 Full day (twelve hours) $100 24 hours $150 Multi-day maximum (4 days) $450 Agenda Information Sheet December 18, 2012 Page 2 1. Special Events Agreement, sound levels, recycling and street closures. No alcoholic beverages will be allowed on City property unless approved by City Council. If requesting a noise exception or to have alcohol in Williams Square, the application An application to hold a special event does not constitute approval for the event nor issuance of a permit. Final event approval and permit issuance is conducted by the Denton Fire Department; 2. entity; 3.The area may be used a maximum of four (4) consecutive days; 4.Individuals or groups are limited to using the area three (3) times per year; 5.Full payment is required 48 hours prior to the event. A $100 deposit is required, which will be refunded once the event is over and the area is clean. The event must increase economic development in Denton (i.e., hotel rooms booked by groups or participants, increased sales tax during event, etc.). A checklist for event coordinators is included in Exhibit A. ESTIMATED SCHEDULE OF PROJECT If approved by City Council, rates would go into effect in 30 days. PRIOR ACTION/REVI EW None FISCAL INFORMATION We expect to rent this area several times a year. Income will be deposited into the General Fund. Although the rental fees may not be significant, having this policy in place provides the City some control over the use of its property. EXHIBITS Map Ordinance Exhibit A: Rental Guidelines and Rental Schedule of Fees Agenda Information Sheet December 18, 2012 Page 3 Prepared by: __________________ Julie Glover Economic Development Program Administrator Respectfully submitted: _______________________________ Linda Ratliff, Director Economic Development Department NITSUA AGENDA INFORMATION SHEET AGENDA DATE : December 18, 2012 DEPARTMENT : Airport ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City of Denton authorizing the City Manager, or his designee, to execute on behalf of the City of Denton an acceptance of an offer from the Texas Department of Transportation relating to a grant for the Routine Airport Maintenance Program (RAMP); authorizing the City Manager to expend funds provided for in the grant program; and declaring an effective date. (TxDOT Project No. AM 2013DNTON and CSJ No. M318DNTON). Airport Advisory Board recommends approval (7-0) BACKGROUND Since 1996 the City of Denton has entered into annual grant agreements with the Texas Department of Transportation Aviation Division (TxDOT Aviation), known as the Routine Airport Maintenance Program (RAMP). The RAMP grant provides for a fifty percent (50%) state-funding match to the local government sponsor for general airport maintenance. The 2013 grant is capped at $50,000 of available state assistance. Airport Management has identified a number of projects that could be completed with this grant for 2013. The following is a summary of actual RAMP Grant expenditures, including the local match, for the prior three fiscal years: Projects 2009/2010 2010/2011 2011/2012 Drainage Improvements $19,512.90 (3) $ -0- $ -0- Asphalt Paving/Repair $37,934.48 (2) $61,449.00 (3) $18,746.00 (1) Concrete Paving/Repair $9,307.36 (1) $6,312.64 (1) $51,329.60 (4) Navigation Aids Improvements $10,768.00 (2) $16,261.25 (2) $2,610.84 (5) Gate Control Repair $2,425.00 (5) $2,503.58 (2) $6,150.00 (2) Security & Fence Repair $10,100.00 (1) $ -0- $8,104.00 (1) Other Maintenance/Supplies $5,058.43 (6) $405.93 (1) $10,147.00 (2) Chemicals $4,565.92 (3) $1,700.00 (1) $2,882.22 (1) ___________ ___________ ____________ TOTAL $99,672.09 (23) $88,632.40 (10) $99,969.66 (16) ESTIMATED SCHEDULE OF PROJECT TxDOT Aviation is requesting two signed copies of the agreement to be returned expeditiously. The State must approve its share of funding prior to the start of any project and TxDOT Aviation has requested that all projects be completed by August 31, 2013. Agenda Information Sheet December 18, 2012 Page 2 FISCAL INFORMATION , which is reflected in the 2013 Airport Budget. Respectfully submitted: Andrea Sumner Airport Operations Coordinator AGENDA INFORMATION SHEET AGENDA DATE: December 18, 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 providing for the expenditure of funds for the Emergency Purchase of an Al-Jon Advantage 500M Landfill Compactor in accordance with provisions of Section 252.022 of the Local Government Code exempting such purchases from requirements of competitive bidding; and providing an effective date (File 5133-Emergency Purchase of Compactor for Landfill awarded to Tri County Equipment Sales L.L.C. in the amount of $370,000). The Public Utilities Board recommends approval (7-0). FILE INFORMATION purchased a 2001 Caterpillar Model 826G Landfill Compactor from the City of Brownwood as a replacement for its - 2010, the - On November 20, 2012, this machine was compacting trash when a staff member saw flames arising from the rear area of the machine and called the driver. The fire spread so quickly that the -board fire extinguisher and he had to jump from the machine. He was not injured and the Fire Department promptly responded to contain the fire. Based on the condition of the chassis wiring and the explosion of two batteries, it appears that the fire may have originated as an electrical fire. The fire damage was so extensive that the machine was declared a total loss. The Landfill The Landfill facility currently owns three landfill compactors but two of them including the one that burned, are out of service. The newest of the three machines, a 2006 caterpillar Model 826H, has been out-of- service for approximately three months undergoing an engine replacement and other upgrades. Staff hopes to have this work completed and the machine returned and placed back in service in the next few weeks. - serves as the maintenance spare or back-up machine and is placed in daily operations about ont- Agenda Information Sheet December 18, 2012 Page 2 FILE INFORMATION (CONTINUED) Therefore, the only compactor currently operating is back-up machine, a 1995 Caterpillar Model 826C. Should this machine experience a failure, the City runs the risk of having to temporarily close the landfill and divert waste to another facility. The Landfill operation for the City of Denton is crucial to maintaining public health and safety in the community. Therefore, staff initiated emergency purchasing procedures following the Texas Government Code §252.022(2), a procurement necessary to preserve or protect the public health residents and §252.022(3), a procurement necessary because of unforeseen damage to public machinery, equipment, or other property. Fleet Services, Risk Management, Safety, and Purchasing were notified of the incident and upon determining that the machine was not repairable, staff began searching for a possible replacement machine. Landfill compactors are such a specialized piece of equipment that local and regional equipment rental companies do not maintain them in the available rental fleet and a new machine will take four to six months to build and deliver. A few used machines in various conditions are available in Canada and the United States. There is a certified-rebuilt machine Al-Jon Series 500 of comparable size currently coming off the remanufacturing line and available for purchase from Tri County Equipment Sales L.L.C. The staff reviewed all of the options provided above and determined that the emergency purchase of the certified-rebuilt Al-Jon Series 500 provided the fastest delivery, along with the best warranty and a longer productive machine life than a used machine. Therefore, staff has issued a purchase order for this equipment to expedite delivery by January 15, 2013. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On December 10, 2012, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. RECOMMENDATION Retroactively approve the emergency purchase of an Al-Jon Advantage 500M Landfill Compactor from Tri County Equipment Sales L.L.C. in the amount of $370,000. PRINCIPAL PLACE OF BUSINESS Tri County Equipment Sales L.L.C. Pierson, MI Agenda Information Sheet December 18, 2012 Page 3 ESTIMATED SCHEDULE OF PROJECT The compactor is scheduled to be delivered to the City of Denton Landfill on January 15, 2013. FISCAL INFORMATION This item is being purchased from Bond fund account 660078594.1355.30100. Purchase Order 160872 was issued on November 27, 2012. EXHIBITS Exhibit 1: Quote from Tri County Equipment Sales L.L.C. Exhibit 2: Public Utilities Board Draft Minutes Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 5133 Exhibit 1 Exhibit 2 DRAFT MINUTES 1 PUBLIC UTILITIES BOARD 2 3 December 10, 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, December 10, 2012 at 5:00 p.m. in the City Hall Conference Room, City of Denton 8 City Hall, 215 E. McKinney Street, Denton, Texas. 9 10 Present: Chairman Dick Smith, Vice Chair Billy Cheek, Randy Robinson, Barbara 11 Russell, Leonard Herring, Phil Gallivan and Lilia Bynum 12 13 Ex Officio Members: Howard Martin, ACM Utilities; George Campbell, CM 14 OPEN MEETING: 15 16 ITEMS FOR INDIVIDUAL CONSIDERATION: 17 18 19 13. Consider support of the City staff recommendation to award the emergency purchase of an 20 Al-Jon Advantage 500M Landfill Compactor in accordance with provisions of Section 21 252.022 of the Local Government Code exempting such purchases from requirements of 22 competitive bidding (File 5133-Emergency Purchase of Compactor for Landfill awarded to 23 Tri County Equipment Sales L.L.C.) in the amount of $370,000. 24 25 Item #13 was pulled by Cheek. 26 Cheek wanted more information then asked if a used Al-Jon compactor was recently 27 purchasedCheek 28 . Kemler answered that in 2005 staff purchased a 2001 Caterpillar compactor. remembered an Al-Jon 29 . Kemler answered it was in 2003 and was a great deviation in 30 technology for the first Al-Jon. The Al-Jon that is being purchased on this item is a rebuilt 31 certified 2005. It is the exact machine that was purchased in 2003. There are not many of these 32 pieces of equipment built, they are very specialized. It has a brand new warranty. 33 Cheek then stated it was an emergency purchase did anyone call Chair Smith regarding 34 this item 35 . Kemler answered the emergency purchase listed by the State are a little unusual. The 36 37 procurement law, if you meet certain criteria you can initiate an emergency purchase process. Cheek asked if there was protocol and at least give Chair Smith a call 38 . Jon Fortune, ACM, 39 stated it was an oversight on his part. Fortune did call Smith about a week after the process had 40 been initiated. Fortune apologized for the oversight. It is the intent to keep the Board involved 41 and included in these decisions. 42 Herring asked if this was a self insured loss 43 . Kemler answered that we do have insurance. He 44 is unsure of the status but will let the Board know when he find the information out from Risk 45 Management. 46 Draft Minutes of the Public Utilities Board Meeting December 10, 2012 Page 2 of 2 Smith asked if staff knows what happened 1 . Kemler responded that the fire department did an 2 investigation once the fire was put out and determined that it was an electrical fire. It flashed 3 and went so fast that it could not be stopped. 4 Gallivan stated that there was no operator error 5 . Kemler answered no. 6 A motion to approve item 13 was made by Board Member Cheek with a second by Board 7 Member Herring. The vote was 7-0. 8 9 10 Adjournment 6:12pm ORDINANCE NO. __________ AN ORDINANCE PROVIDING FOR THE EXPENDITURE OF FUNDS FOR THE EMERGENCY PURCHASE OF AN AL-JON ADVANTAGE 500M LANDFILL COMPACTOR IN ACCORDANCE WITH PROVISIONS OF SECTION 252.022 OF THE LOCAL GOVERNMENT CODE EXEMPTING SUCH PURCHASES FROM REQUIREMENTS OF COMPETITIVE BIDDING; AND PROVIDING AN EFFECTIVE DATE (FILE 5133-EMERGENCY PURCHASE OF COMPACTOR FOR LANDFILL AWARDED TO TRI COUNTY EQUIPMENT SALES L.L.C. IN THE AMOUNT OF $370,000). WHEREAS, state law and ordinance require that certain contracts requiring an expenditure or payment by the City in an amount exceeding $50,000 be by competitive bids, except in the case of public calamity where it becomes necessary to act at once to appropriate money to relieve the necessity of the citizens of the city, or in case of unforeseen damage to public property, machinery or equipment or where the procurement is necessary to preserve or Government Code; and, WHEREAS, the City Manager has recommended to the City Council that it is necessary to purchase goods or services due to the following emergency conditions outlined in the memorandum attached hereto, incorporated herein by reference; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council hereby determines that there is a public calamity that makes it necessary to act at once to appropriate money to relieve the necessity of the citizens of the city, or to provide for unforeseen damage to public property, machinery or equipment, or to following emergency purchases of materials, equipment, supplies or services, as described in File 5133 referenced herein and on file the office of the Purchasing Agent, are hereby approved: FILE NUMBER VENDOR AMOUNT 5133 Tri County Equipment Sales L.L.C. $370,000 SECTION 2. Because of such emergency, the City Manager or designated employee is hereby authorized to purchase the materials, equipment, supplies or services as described in the attached Purchase Orders and to make payment therefore in the amounts therein stated, such emergency purchases being in accordance with the provisions of state law exempting such purchases by the City from the requirements of competitive bids. 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: _________________________________ 4-ORD-File 5133 1527 S. Mayhill Rd. Denton, TX 76208 Phone (940) 349-8044 Fax (940) 349-8057 Web Site: www.cityofdenton.com MEMORANDUM Date: November 13, 2012 To: Elton Brock, Purchasing Agent From: A. Vance Kemler, General Manager Solid Waste & Recycling Services mergency Conditions Subject: Emergency Purchase of a Landfill Compactor Statement of E On November 13, 2012, an employee of the City of Denton observed the presence of a fire in the rear area of th The fire was spreading so quickly that the operator did not have time to use the on-board fire extinguisher, so he jumped from the machine. The Fire Department was called and promptly responded. An on-site water tanker was used to suppress the fire but the damage to the landfill compactor was so extensive that it was a total loss. The city owns and operates the landfill and the entire integrated municipal solid waste management system and is, by ordinance, the exclusive solid waste service provider for the city of Denton. The landfill compactor is such a specialized piece of equipment that the local and regional equipment rental fleets do not maintain them in the rental inventory. The landfill compactor is the only machine specifically designed to operate in the waste to spread, and compact waste to a density necessary to produce a stable mass for the application of cover materials that can control the presence and propagation of vermin and prevent the transmission of pathogens. residents, the emergency purchase of a replacement landfill compactor is required. A. Vance Kemler General Manager, Solid Waste and Recycling Services AGENDA INFORMATION SHEET AGENDA DATE: December 18, 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 authorizing the City Manager to execute an Interlocal Cooperative Purchasing Program Agreement with the City of Farmers Branch, Texas under Section 271.102 of the Local Government Code, to authorize participation in various City of Farmers Branch contracts for the purchase of various goods and services; authorizing the expenditure of funds therefor; and declaring an effective date (File 5124-Interlocal Agreement with City of Farmers Branch). FILE INFORMATION Section 271.102 of the Texas Local Government Code, authorizes respective participating governments to enter into agreements for the purchase of goods and services. Over the past several years, the City of Denton and other governmental entities have entered into cooperative purchasing agreements which have proven highly beneficial to the taxpayers through anticipated savings. The attached Agreement is an authorization to participate in contracts awarded by the City of Farmers Branch and will remain in effect until terminated by either party. This Agreement will allow the City of Denton to utilize contracts for goods and services competitively bid by the City of Farmers Branch. The bid process followed by the City of Farmers Branch meets all statutory bidding requirements. While a number of opportunities exist greement in the near future to procure goods related to their operation. All purchases exceeding $100,000 will still require individual City Council approval per City of Denton policy. RECOMMENDATION Approve an Interlocal Cooperative Purchasing Program Agreement with the City of Farmers Branch. PRINCIPAL PLACE OF BUSINESS City of Farmers Branch Farmers Branch, TX Agenda Information Sheet December 18, 2012 Page 2 ESTIMATED SCHEDULE OF PROJECT This Agreement is effective upon approval by the City of Denton and will remain in effect until terminated by either party. FISCAL INFORMATION At this time, specific purchases from this Agreement have not been identified. Each future acquisition, based on this Agreement, will follow the City of Denton fiscal verification policy and be charged to the appropriate budget account. Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 5124 ORDINANCE NO. ___________ AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCAL COOPERATIVE PURCHASING PROGRAM AGREEMENT WITH THE CITY OF FARMERS BRANCH, TEXAS UNDER SECTION 271.102 OF THE LOCAL GOVERNMENT CODE, TO AUTHORIZE PARTICIPATION IN VARIOUS CITY OF FARMERS BRANCH CONTRACTS FOR THE PURCHASE OF VARIOUS GOODS AND SERVICES; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND DECLARING AN EFFECTIVE DATE (FILE 5124-INTERLOCAL AGREEMENT WITH CITY OF FARMERS BRANCH). THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager, or his designee is hereby authorized to execute the Interlocal Cooperative Purchasing Program Agreement with the City of Farmers Branch under Section 271.102 of the Local Government Code, a copy of which is attached hereto and SECTION 2. The City Manager, or his designee is authorized to expend funds pursuant to the Agreement for the purchase of various goods and services. 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 5024 to the City Manager of the City of Denton, Texas, or his designee. SECTION 4. 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 5124 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Terry Kader at 349-8729 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance authorizing the City Manager or his designee to execute a contract with the Buy Board Cooperative Purchasing Network for the acquisition of Two Haul Trailers for the Solid Waste Department and the Houston-Galveston Area Council of Governments (H-GAC) for the acquisition of a Street Sweeper for the City of Denton Drainage Department; and providing an effective date (File 5123-Purchase of a Street Sweeper awarded to TYMCO, Inc. in the amount of $188,095.50 and Two Haul Trailers awarded to Rush Truck Centers of Texas, Inc. in the amount of $161,309 for a total award of $349,404.50). The Public Utilities Board recommends approval (7-0). FILE INFORMATION STREET SWEEPER The street sweeper to be purchased is a planned heavy equipment replacement for the Drainage Departmentthat has over 50,000 miles and nearly 8,000 hours of use. Maintenance costs have surpassed 50% of the original cost of standard; the 2006 model has reached the end of its useful life in the City fleet. The Buy Board pricing for the Tymco Model 600 Sweeper is the best value and includes the extended warranty option as shown on Exhibit 1. There are no local vendors within the city of Denton that offer this make and model of equipment. HAUL TRAILERS The two haul trailers are fleet additions for the Solid Waste Landfill as outlined in the Fiscal Year 2012-2013 Vehicle Replacement Plan and Fiscal Year 2012-2013 Operating Budget. Under Recycling (Pratt), in return for the revenues established, Solid Waste provides waste and disposal services to Pratt for any contaminated recyclables and Pratt pays the lowest current commercial rate for those services. Pratt installed a large transfer station style commercial trash compactor to load the contaminated recyclables into transfer trailers, as this is the most cost effective waste handling method. The City of Denton needs to purchase two transfer trailers that are compatible with this system. The purchase of two haul trailers will provide the least overall cost, and highest operational efficiencies required to provide these waste and disposal services. The equipment to be purchased is shown on Exhibit 2. There are no local vendors within the city of Denton that offer this make and model of equipment. Agenda Information Sheet December 18, 2012 Page 2 FILE INFORMATION (CONTINUED) The table below shows all equipment to be purchased and the cooperative agreement contract that will be used. EQUIP ITEM ID# TYPE CONTRACT AMOUNT REPLACEMENT DR 1378 1 Street Sweeper BB# 348-10 $ 188,095.50 X 2 SW1390 Haul Trailer HGAC # TR11-10 $ 79,462.56 3 SW1391 Haul Trailer HGAC # TR11-10 $ 79,462.56 CONTRACT FEES $ 2,383.88* ADJUSTED TOTAL $ 349,404.50 *Cooperative agreement handling fees and service manuals are estimated at $2,383.88 and may vary depending upon the number of purchase orders issued and service manuals required. All of the trucks are powered by diesel engines with low emission vehicle ratings that meet or exceed Environmental Protection Agency standards. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On December 10, 2012, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. RECOMMENDATION Award the purchase of a TYMCO Model 600 Street Sweeper to TYMCO, Inc. in the amount of $188,095.50 and two (2) push outHaul Trailers awarded to Rush Truck Centers of Texas, Inc. in the amount of $161,309 for a total award of $349,404.50. PRINCIPAL PLACE OF BUSINESS TYMCO, Inc. Rush Truck Centers of Texas, Inc. Waco, TX Houston, TX ESTIMATED SCHEDULE OF PROJECT The Street Sweeper is estimated to be delivered 60-90 days from issuance of a purchase order. The two Haul Trailers are estimated to be delivered within 175 days from issuance of a purchase order. Agenda Information Sheet December 18, 2012 Page 3 FISCAL INFORMATION The Street Sweeper in the amount of $188,095.50 will be funded from operating account 65501465.1355.30100. Requisition# 111103 has been entered in the Purchasing software system. The two Haul Trailers in the amount of $161,309.00 will be funded from Bond account 660566592.1355.30100. Requisition# 111104 has been entered in the Purchasing software system. EXHIBITS Exhibit 1: Price Comparison and Quotes for Street Sweeper Exhibit 2: Price Comparison and Quotes for Haul Trailers Exhibit 3: Public Utilities Board Draft Minutes Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 5123 DESCRIPTIONH-GAC-CONTRACTNON-CONTRACT Contract #TR11-10 STEEL PUSH OUT TRAILERSTEEL PUSH OUT TRAILER Base Price$ 70,200.00$ 96,632.13 Upgrade to 39' length$ 9,262.56incl Unpublished Options (Listed)incl Freight / Delivery$ - Equipment Cost$ 79,462.56$ 96,632.13 Qty ordered22 Total of purchase$ 158,925.12$ 193,264.26 HGAC Fee$ 2,383.88$ - Warranty & Contract Costs$ 161,309.00$ 193,264.26 PRICE DIFFERENCE $ 31,955.26 % DIFFERENCE 19.81% RUSH TRUCK CENTERSRUSH TRUCK CENTERS OF Vendor:OF TEXASTEXAS 10200 N LOOP EAST10200 N LOOP EAST HOUSTON TX 77029HOUSTON TX 77029 plousec@rushenterprises.complousec@rushenterprises.com Charlie PlouseCharlie Plouse 713-495-6304713-495-6304 Exhibit 3 DRAFT MINUTES 1 PUBLIC UTILITIES BOARD 2 3 December 10, 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, December 10, 2012 at 5:00 p.m. in the City Hall Conference Room, City of Denton 8 City Hall, 215 E. McKinney Street, Denton, Texas. 9 10 Present: Chairman Dick Smith, Vice Chair Billy Cheek, Randy Robinson, Barbara 11 Russell, Leonard Herring, Phil Gallivan and Lilia Bynum 12 13 Ex Officio Members: Howard Martin, ACM Utilities; George Campbell, CM 14 OPEN MEETING: 15 16 ITEMS FOR INDIVIDUAL CONSIDERATION: 17 18 19 12.Consider a recommendation of an ordinance for adoption of the City of Denton authorizing 20 the City Manager or his designee to execute contracts through the Buy Board Cooperative 21 Purchasing Network and Houston Galveston Area Council of Governments (HGAC) and for 22 the acquisition of one street sweeper for Drainage and two haul trailers for Solid Waste 23 Department; and providing an effective date (File 5123- Heavy Equipment for Utility 24 Departments awarded to TYMCO in the amount of $188,095.50 and Rush Truck Centers in 25 the amount of $161,309.00 for a total award amount of $349,404.50). 26 27 Item #12 was pulled by Chair Smith. 28 Smith asked about the two haul trailers for Solid Waste and the street sweeper 29 . 30 31 Kemler answered questions regarding the trailers. These trailers are for the recycling 32 department. These trailers will help with the efficiency of the department. Currently materials 33 are being hauled two to three times a day. The handling side is becoming uneconomical. We 34 need to buy the two trailers to get the maximum efficiency and that will take the haul down to Smith asked how much money is 35 maybe one a day but more likely one every other day. received for this operation 36 . Kemler answered that Solid Waste gets to charge the commercial 37 disposal weight and the haul portion is built into the $10-$15 per ton of the materials that is taken 38 in for commodity material. The trailers will be paid for in four years. The life of the trailers is 39 10+ years. 40 Smith asked why a street sweeper was being purchased and what is happening to the old 41 one 42 . 43 44 Terry Kader, Fleets Superintendent, answered this new sweeper is replacing the 2006 model. It 45 is a very similar model that is at the end of its useful life. It has approximately 7,000 hours on it. 46 The replacement cycle is about six years. We have reached the parameters where it will begin Draft Minutes of the Public Utilities Board Meeting December 10, 2012 Page 2 of 2 1 costing a lot of money to maintain. The old sweeper will go to auction and there will have 2 residual value. 3 Herring asked if Kader is still pleased with the Buy Board 4 . Kader answered yes typically 5 they get quite a reduced rate through a purchasing place such as Buy Board or HDC. 6 A motion to approve item 12 was made by Board Member Robinson with a second by 7 Board Member Russell. The vote was 7-0. 8 9 10 Adjournment 6:12pm ORDINANCE NO. ___________ AN ORDINANCE AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A CONTRACT WITH THE BUY BOARD COOPERATIVE PURCHASING NETWORK FOR THE ACQUISITION OF TWO HAUL TRAILERS FOR THE SOLID WASTE DEPARTMENT AND THE HOUSTON-GALVESTON AREA COUNCIL OF GOVERNMENTS (H-GAC) FOR THE ACQUISITION OF A STREET SWEEPER FOR THE CITY OF DENTON DRAINAGE DEPARTMENT; AND PROVIDING AN EFFECTIVE DATE (FILE 5123-PURCHASE OF A STREET SWEEPER AWARDED TO TYMCO, INC. IN THE AMOUNT OF $188,095.50 AND TWO HAUL TRAILERS AWARDED TO RUSH TRUCK CENTERS OF TEXAS, INC. IN THE AMOUNT OF $161,309 FOR A TOTAL AWARD OF $349,404.50). WHEREAS, pursuant to Ordinance 95-107, the Houston-Galveston Area Council of Government (H-GAC) 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, pursuant to Ordinance 2005-034, the Buy Board Cooperative Purchasing Network 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 Houston-Galveston Area Council of Government (H-GAC) and Buy Board Cooperative Purchasing Network 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 file for materials, equipment, supplies, or services, are hereby approved. ITEM NUMBER VENDOR AMOUNT 1 Buy Board/TYMCO Inc. . $188,095.50 2 H-GAC/Rush Truck Centers of Texas, Inc. $161,309.00 SECTION 2. By the acceptance and approval of the above numbered items set forth in the referenced file, the City accepts the offer of the persons submitting the bids to the H-GAC or Buy Board 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 above listed agencies, 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 -GAC or Buy Board, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to H-GAC or Buy Board, quantities and specified sums ted. 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 File 5123 to the City Manager of the City of Denton, Texas, or his designee. SECTION 5. By the acceptance and approval of the above enumerated items, 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: _________________________________ 5-ORD-File 5123 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Elton Brock 349-7133 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance authorizing the City Manager or his designee to execute a contract through The Cooperative Purchasing Network (TCPN) for the acquisition of maintenance, repair and operations supplies for the City of Denton Distribution Center; and providing an effective date (File 5050-Purchase of Maintenance, Repair and Operations Supplies for Distribution Center awarded to Fastenal Company in the annual estimated amount of $105,000). BID INFORMATION This contract is to supply maintenance, repair and operations supplies to various City departments. The items include hand tools, personal safety equipment, and supplies used by field personnel in the execution of their duties. These items will be sold to the using departments by using automated vending machines located in various City buildings Distribution Center (Warehouse). The vending machine inventory will be owned by Fastenal , and automatically replenished by Fastenal, through vendor managed inventory. The pricing for these items is specified in the TCPN contract which offers a range of discounts depending on the category of goods. RECOMMENDATION Award a contract to Fastenal Company through TCPN in the annual estimated amount of $105,000. PRINCIPAL PLACE OF BUSINESS Fastenal Company Denton, TX ESTIMATED SCHEDULE OF PROJECT This price agreement will be in effect through March 31, 2014 and may be extended for one additional year by TCPN. Agenda Information Sheet December 18, 2012 Page 2 FISCAL INFORMATION The items included in this contract will be funded out of the Distribution Center Working Capital account and charged back to the using department. EXHIBITS Exhibit 1: Contract with Pricing Sheet Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 5050 Exhibit B Special Terms and Conditions The City, having elected to participate in TCPN Contract # R4952 for Maintenance, Repair and Operation Supplies; and Fastenal Company (Supplier), has agreed to the following: Scope: Supplier agrees to work with the City in an ongoing effort to reduce the overall cost of procurement for Maintenance, Repair, and Operating supplies (MRO) by utilizing Fastenal Vending Solutions, a Fastenal Storefront located in Denton TX, and a Fastenal Distribution center located in Denton TX. Fastenal Vending Solutions, which include Locker Systems and Vending Machines that monitor and control the issue of maintenance and hardware suppliers will be provided and installed at any City department for up to 12 months at no cost (Exhibit C). Through the utilization of commercial industry best practices, technology, and cooperative government procurement methodologies the City will experience greater efficiencies and streamlined procurement. Fastenal Vending Solutions have been document in case studies, as a proven method for providing ready access to needed supplies as well as the controls and compliance that governmental entities require. Products sold by Fastenal and Fastenal Vending Solutions are available via a Cooperative Government Contract (Attachment A.), which was awarded by The Cooperative Purchasing Network, based in Houston, TX. Authority for such services is granted under Government Code, Title 7, Chapter 791 Interlocal Cooperation Contracts, Subchapter B and Subchapter C, and Local Government Code, Title 8, Chapter 271, Subchapter F, Section 271.101 and Section 271.102.As such, no further competition or bidding is required. Pricing: Cost to the City for products purchased from Supplier shall be administered using the following methods: 1.Vended product will be sold at the TCPN contracted sell price, unless a lower agreed upon sell price has been determined, plus an 8% vendor collected administrative fee. 2.Product purchased from Supplier via any other method will be sold at the TCPN contracted sell price, unless a lower agreed upon sell price has been determined, with no vendor collected administrative fee added. Methods of purchase include www.fastenal.comand walk-in/walk-out transactions at Fastenal store locations. A listing of high use items (Exhibit F) that the Materials Management Service Center staff has identified will receive net pricing. The net price file will be administered in addition to discounts provided by TCPN Contract #R4952. The City willallow for price adjustments of these net prices 6 months after the start of the agreement and twice annually thereafter. Request for price adjustment must be submitted in writing and agreed to by both parties before any adjustments take place. Service: Supplier will stock and replenish inventory help within the Fastenal Automated Supply vending machines. In the event that a machine needs service or repair work, this work will be performed by Supplier employees at no cost to the customer. The Cityis responsible for providing electricity and internet connection at the location where machines are to be installed. Supplier employees will monitor usage and inventory levels using agreed upon min/max levels and a web hosting software program that gives both Citystaff and Supplier staff real time visibility of machine status and inventory levels. Vendor Collected Administrative Fee (VCAF): Supplier will administer and collect and administrative fee on behalf of the City which shall be paid to the City in theform of a refund check on a quarterly basis. The City will allow a reasonable period of time after the end of each calendar quarter but not to exceed 30 days, for Supplier to provide a usage report which shows at a minimum the following attributes which will aid in the audit or reconciliation of the VCAF: Fastenal Part Number City of Denton Part Number (if available) Product Description Unit of Measure Quantity purchased Unit Price Extended Price Supplier will work in good faith with City staff to ensurethat needed and valuable information is provided on an as needed basis, and in the event that further or more detailed information is needed both parties will work in good faith to create reporting metrics that are mutually beneficial. VCAF will apply only to products that are vended or issued from Fastenal Automated Supply vending machine units. Supplier will work in good faith to identify products purchased by the City via methods other than Fastenal Vending Solutions that may be candidates to be stocked and issued using the Fastenal Vending Solution. The Quantities The quantities indicated on Exhibit F are estimates based upon the best available information. The City reserves the right to increase or decrease the quantities to meet its actual needs without any adjustments in the bid price. Individual purchase orders will be issued on an as needed basis. Product Changes duringContract Term The supplier shall not change specifications during the contract term without prior approval. Any deviation in the specifications or change in the product must be approved in advance by the City of Denton. Notice of a change shall be submitted in writing to dentonpurchasing@cityofdenton.com, with the above file number in the subject line, for review. Products found to have changed specifications without notification, and acceptance, will be returned at the supplier’s expense. Products that have been installed will be replaced at the supplier’s expense. Contract Termination The City of Denton may terminate the contract with 30 days notice. ORDINANCE NO. _______ AN ORDINANCE AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A CONTRACT THROUGH THE COOPERATIVE PURCHASING NETWORK (TCPN) FOR THE ACQUISITION OF MAINTENANCE, REPAIR AND OPERATIONS SUPPLIES FOR THE CITY OF DENTON DISTRIBUTION CENTER; AND PROVIDING AN EFFECTIVE DATE (FILE 5050-PURCHASE OF MAINTENANCE, REPAIR AND OPERATIONS SUPPLIES FOR DISTRIBUTION CENTER AWARDED TO FASTENAL COMPANY IN THE ANNUAL ESTIMATED AMOUNT OF $105,000). WHEREAS, pursuant to Resolution 92-019, the Texas Procurement and Support Services Division 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 Texas Procurement and Support Services 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 materials, equipment, supplies, or services, shown in File 5050 listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE ANNUAL EST NUMBER VENDOR AMOUNT 5050 Fastenal Company $105,000 SECTION 2. By the acceptance and approval of the above numbered items set forth in File 5050, the City accepts the offer of the persons submitting the bids to the Texas Procurement and Support Services Division 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 Texas Procurement and Support Services Division, 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 Texas Procurement and Support Services Division, 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 Texas Procurement and Support Services Division, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. 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 File 5050 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: _________________________________ 3-Ord--File 5050 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 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 awarding a contract under the Texas Multiple Award Schedule (TXMAS) Program for the purchase of a Vehicle Global Positioning System (GPS) for the City of Denton Solid Waste Department as awarded by the State of Texas (Contract TXMAS-4-6611Q010); providing for the expenditure of funds therefor; and providing an effective date (File 5135-Vehicle Global Positioning System for Solid Waste Department awarded to Trimble Navigation Limited in the amount of $167,529.20). The Public Utilities Board recommends approval (7-0). FILE INFORMATION In 2004 and 2005, Trimble Navigation Limited (Trimble) installed GPS on the residential collection fleet. The installation of the Trimble GPS System enabled the Residential Division to more efficiently perform their daily collection and routing operations. Since the installation of the system, Trimble has changed their database and it is not compatible with our current equipment. The Trimble hardware and software system was assigned an asset accounting life of five years, and residential fleet for eight and nine years. Therefore, it is necessary to update all of the currently installed equipment. Staff met with the major manufacturers of this type of GPS hardware and software, and after reviewing and evaluating the various system capabilities, recommends purchasing and installing the Trimble equipment in all collection vehicles. Trimble is a worldwide company with a service center located in Grapevine, TX. The TXMAS Program is a cooperative purchase program that mirrors the General Services purchasing agreement satisfy state laws to seek competitive bids for the purchase of goods (Local Government Code 271.102c). PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On December 10, 2012, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. Agenda Information Sheet December 18, 2012 Page 2 RECOMMENDATION Award the purchase of a Vehicle Global Positioning System (GPS) through TXMAS Contract-4- 6611Q010 to Trimble Navigation Limited in the amount of $167,529.20. This pricing includes the hardware and software as well as a five year service and maintenance contract. PRINCIPAL PLACE OF BUSINESS Trimble Navigation Limited Tempe, AZ ESTIMATED SCHEDULE OF PROJECT The equipment will be shipped within 30 days of receipt of a purchase order. FISCAL INFORMATION This item will be funded from Bond account 60096592.1355.30100 in the amount of $32,572.40. The service and maintenance expenditure will be funded from Solid Waste operating account number 660100.6506 in the amount of $26,991.36 for the first year service and maintenance costs. Requisition # 111205 has been entered in the purchasing software system. EXHIBITS Exhibit 1: Quote from Trimble/TXMAS Contract Exhibit 2: Detailed Cost Analysis Exhibit 3: Public Utilities Board Draft Minutes Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 5135 Exhibit 1 TXMAS-4-6611Q010 Exhibit 3 DRAFT MINUTES 1 PUBLIC UTILITIES BOARD 2 3 December 10, 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, December 10, 2012 at 5:00 p.m. in the City Hall Conference Room, City of Denton 8 City Hall, 215 E. McKinney Street, Denton, Texas. 9 10 Present: Chairman Dick Smith, Vice Chair Billy Cheek, Randy Robinson, Barbara 11 Russell, Leonard Herring, Phil Gallivan and Lilia Bynum 12 13 Ex Officio Members: Howard Martin, ACM Utilities; George Campbell, CM 14 OPEN MEETING: 15 16 CONSENT AGENDA: 17 18 19 14.Consider approval of a contract under the Texas Multiple Award Schedule (TXMAS) 20 program for the purchase of a Vehicle Global Positioning System (GPS) for the City of 21 Denton Solid Waste Department as awarded by the State of Texas (Contract TXMAS-4- 22 6611Q010); providing for the expenditure of funds therefor; and providing an effective date 23 (File 5135-Vehicle Global Positioning System for Solid Waste Department awarded to 24 Trimble Navigation Limited in the amount of $167,529.20). 25 A motion to approve item 14 was made by Board Member Russell with a second by Board 26 Member Cheek. The vote was 7-0. 27 28 29 Adjournment 6:12pm ORDINANCE NO. _______ AN ORDINANCE AWARDING A CONTRACT UNDER THE TEXAS MULTIPLE AWARD SCHEDULE (TXMAS) PROGRAM FOR THE PURCHASE OF A VEHICLE GLOBAL POSITIONING SYSTEM (GPS) FOR THE CITY OF DENTON SOLID WASTE DEPARTMENT AS AWARDED BY THE STATE OF TEXAS (CONTRACT TXMAS-4-6611Q010); PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 5135-VEHICLE GLOBAL POSITIONING SYSTEM FOR SOLID WASTE DEPARTMENT AWARDED TO TRIMBLE NAVIGATION LIMITED IN THE AMOUNT OF $167,529.20). WHEREAS, pursuant to Resolution 92-019, the Texas Procurement and Support Services Division 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 Texas Procurement and Support Services Division 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 materials, equipment, supplies, or services, shown in the File Number listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMBER VENDOR AMOUNT 5135 Trimble Navigation Limited $167,529.20 SECTION 2. By the acceptance and approval of the above numbered items set forth in File 5135, the City accepts the offer of the persons submitting the bids to the Texas Procurement and Support Services Division 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 Texas Procurement and Support Services Division, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in File 5135 wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the Texas Procurement and Support Services Division, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the Texas Procurement and Support Services Division, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. 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 File 5135 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-File 5135 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Ron Menguita at 349-8328 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance authorizing the City Manager or his designee to execute a Professional Services Agreement with Merje Design for consulting services related to the Wayfinding Signage Project for the City of Denton Planning Department; and providing an effective date (RFQ 4938Wayfinding Signage Project for City of Denton awarded to Merje Design in the amount of $119,205). BACKGROUND On March 26, 2012, the City issued a Request for Qualifications (RFQ #4938) seeking qualified professionals with considerable experience in the area of preparing a Master Plan for Wayfinding Signage. On May 1, 2012, the RFQ closed, and the City received seven (7) submittals from multi- disciplined firms that partnered with other consulting firms in the Dallas-Fort Worth area. Based , and the evaluation criteria outlined in the RFQ, three (3) of the consultants were interviewed by a panel of City staff from the City Parks and Recreation Department, and Planning Department. Each team of consultants made a presentation about their project team, their approach to this project, the scope of work to be performed, and how their previous experience would benefit the City in the process of developing a Master Plan for Wayfinding Signage. Each consultant team made a thorough presentation that highlighted their expertise and some intangible, value added features that made the selection more challenging. However, at the conclusion of the interviews, panel members were consistent in their rankings and selection of Merje Design as the consultant to prepare a Master Plan for Wayfinding Signage for the City of Denton (Exhibit 1). Merje Design has partnered with Lee Engineering, a Dallas based engineering firm. Merje Design focuses exclusively on wayfinding programs, with a specific expertise in city wayfinding. Lee Engineering is a firm experienced in traffic engineering and transportation planning. Along with Merje Design, Lee Engineering has completed a variety of projects with the Texas Department of Transportation and understands the procedures and processes necessary for gaining approval of wayfinding signage projects in the public right-of-way. Agenda Information Sheet December 18, 2012 Page 2 BACKGROUND (CONTINUED) To date, Merje Design has developed wayfinding strategies and processes for more than 40 municipalities. Their experience in Texas includes the cities of Dallas, McKinney and Fredericksburg. In addition, Merje Design is currently developing a Wayfinding Master Plan for the City of Austin. Merje Design will utilize a step approach for the strategy, planning, design and implementation of the Wayfinding Signage Project. This process provides the basic structure for advancing the project and provides opportunities to address individual project issues that are unique to Denton. on their performance and experience with the respective consultant. All of the references noted that their expectations were met, the plans the consultant were tasked to completed were prepared on time and on changes, met challenges head on, and were responsive to issues raised by the respective cities. Once the project has commenced, development of the update will progress through five (5) tasks. Included in the table below are the project tasks with title and cost and Structural and Electrical Engineering and Reimbursable cost: Task Title Cost 1 Scoping $10,400 2 Design $14,670 3 Engineering Evaluation $19,430 4 Design Technical Documents $19,780 5 Construction Oversight $16,500 Structural and Electrical Engineering $26,925 Reimbursables $11,500 Total Contract Value $119,205 The Design and Planning costs are based on further development of an approved themed design developed by the City of Denton and a quantity of approximately 35 sign locations as identified in the preliminary design prepared by City staff. On August 17, 2010, the City Council accepted the recommendations of the Downtown Improvement Plan (DTIP). The DTIP defines specific action items to be undertaken in phases to implement the recommendations. One of the action items is the development of a Wayfinding Signage Project in the DTIP area. Agenda Information Sheet December 18, 2012 Page 3 BACKGROUND (CONTINUED) In October 2010, staff began working on the development of a comprehensive Wayfinding Signage Project to guide visitors to locations offering public parking and local points of interest. The comprehensive Wayfinding Signage Project grew to include entry signage (both primary and secondary) into the City. Staff defined the type of signs, identified potential locations, drafted contents, and designed three themes. The three themes are based on recommendations from the DTIP, information from previous studies, staff input, and from public input. After receiving input on the three themes, staff prepared a modified theme. The modified theme was then presented to City Council to hold a discussion and to seek direction regarding the implementation of a Wayfinding Signage Project. RECOMMENDATION Staff recommends the approval of a Professional Services Agreement between the City of Denton and Merje Design in the amount of $119,205. PRINCIPAL PLACE OF BUSINESS Merje Design West Chester, PA ESTIMATED SCHEDULE OF PROJECT It is anticipated that the Master Plan for Wayfinding Signage will be performed in multiple tasks over a six (6) month time schedule. This schedule is contingent on completion of defined deliverables described at each project task. Once the Design Technical Documents (Task 4) are complete, bids for fabrication and installation of the signs will be sent out by the City. With the arrival of the DCTA A-Train and the increased interest in Downtown, staff is recommending that the Wayfinding Signage Project be implemented in multiple phases. Phase 1 will consist of the manufacturing/fabrication and installation of the directional, blade and street signs throughout the DTIP area. The objective is to implement the Wayfinding Signage Project within the Downtown area first and work outward. Phase 2 of the Wayfinding Signage Project will consist of the manufacturing/fabrication and construction of the primary entry signs, secondary entry signs, and kiosks. Phase 3 will consist of the manufacturing/fabrication and construction of the city building signs, public park signs and other signs identified as needed. The anticipated schedule for Phase 1 is immediate. The reason that the kiosks are not part of Phase 1 is because staff is waiting to redevelop the three existing surface public parking lots. When each existing public parking lot is redeveloped or new public parking lots are developed, a kiosk will be constructed as part of that project. Agenda Information Sheet December 18, 2012 Page 4 FISCAL INFORMATION This project will be funded from Capital Improvement Project account 400127465.1365.10100. Requisition # 111210 has been entered in the Purchasing software system. EXHIBIT Exhibit 1: Evaluation Ranking Exhibit 2: Contract Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-RFQ 4938 CITY OF DENTON WAYFINDING PROGRAM ¥DESIGN / PLANNING FEES MERJELEE BosioSwantakReedShahParmaPierceTOTALS $165$165$125$225$155$130HRLY RATES PHASE 1: SCOPING Project Preperation2 Kick-Off Meeting with Steering Committee (T1)444 Prepare Maps/Information for Stakeholder Interviews28 Tour and Photograph Site (T1)446 Working meetings - Stakeholders (T1)884 Develop Wayfinding Brief (outline of issues) Review Wayfinding Information prepared to date by City28 Present Wayfinding Analysis to Steering Committee (T2)4 TOTAL HOURS - STEPS 122026016872 TOTAL COST - STEP 1$3,630$0$3,250$0$2,480$1,040$10,400 DESIGN: INCLUDES ALL PHASES Develop Selected overall Design Direction1624 Prepare Model and Mock-Ups for Evaluation4 Prepare Design Development Package (Gateway/Signs/Maps)816 Meet with Fabricator / Revise Budgets2 Prepare Presentation 288 Design Presentation to Steering Committee (T2)4 Administration/Project Management8 Design Review City Committees and Community (T3)2 TOTAL HOURS - STEP 2163254000102 TOTAL COST - STEP 2$2,640$5,280$6,750$0$0$0$14,670 ENGINEERING EVALUATION : INCLUDES ALL PHASES Preliminary Sign Location Plan/Message Schedule2820 Field Survey Locations #1 (T3)1616 Prepare Preliminary Review228 Review with Client 6 Secondary Sign Location Plan/Message Schedule248 Prepare Secondary Review24 Field Survey Locations #2 (T4)12 Final Sign Location Plan/Message Schedule26 Prepare Final Review44 Administration/Project Management4 TOTAL HOURS - STEP 30016105650132 TOTAL COST - STEP 3$0$0$2,000$2,250$8,680$6,500$19,430 DESIGN TECHNICAL DOCUMENTS: INCLUDES ALL PHASES Final Field Survey Locations w/ City1616 Prepare Final Messages and Plans4228 PrepareSignage Documentation Drawings864 Prepare Technical Specifications/TXDOT Drawings12412 Administration/Project Management TOTAL HOURS - STEP 4089622220148 TOTAL COST - STEP 4$0$1,320$12,000$450$3,410$2,600$19,780 CONSTRUCTION OVERSIGHT: PER INSTALL PHASE Develop Evaluation Criteria /Assist Owner Reviewing Bids Confer with fabricator4 Review shop drawings & samples4 Review site with installer -(30 locations / 2 days max )16 Walk through completed project -(30 locations / 2 days max )16 Prepare Punchlist and receive Sign Off from City4 Administration/Project Management Construction Meetings ( NIC - to be determined) TOTAL HOURS - PER INSTALLATION PHASE (Phase 2)004400044 TOTAL COST - PER INSTALLATION PHASE (Phase 2)$0$0$5,500$0$0$0$5,500 $0$0$5,500$0$0$0$5,500 $0$0$5,500$0$0$0$5,500 DESIGN/PLANNING$80,780 STRUCTURAL$26,925 Reimbursables$11,500 BASE FEE TOTAL$119,205 III. PAYMENT TO PERFORMANCE PROGRESS: submit invoices based on the completion of the The awarded contractor shall prepare and major phases/tasks of the project which have been negotiated, agreed and accepted by both parties. The invoice shall include a status report that will identify the major accomplishments associated with each phase/task, a written statement of completion of the invoiced task, and comments regarding the status of any remaining task(s), if applicable. The invoice and status report shall be submitted to the City of Denton and the Project Staff shall review such for completion and accuracy , prior to payment authorization. Milestone Performance and Payment Schedule: Invoicing shall be in accordance with the below listed schedule, and shall not exceed the not-to-exceed amounts with mutual agreement and prior, written approval of a change order. - $10,400 Phase I Scoping completion by March 1, 2013 - $14,670 Task 1 Design completion by April 30, 2013 - $19,430 Task 2 Engineering Analysis completion by June 28, 2013 - $19,780 Task 3 Design/Technical Documents completion by June 28, 2013 $16,500 Task 4 Construction Oversight - completion by Depends on bid award date and completion of project (by Phase) - $26,925 Structural/Electrical Engineering Review completion by July 26, 2013 $11,500 Reimbursable Expenses - invoiced as expended and approved $119,205 Total Contract not to Exceed: ORDINANCE NO. _________________ AN ORDINANCE AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH MERJE DESIGN FOR CONSULTING SERVICES RELATED TO THE WAYFINDING SIGNAGE PROJECT FOR THE CITY OF DENTON PLANNING DEPARTMENT; AND PROVIDING AN EFFECTIVE DATE (RFQ 4938 WAYFINDING SIGNAGE PROJECT FOR CITY OF DENTON AWARDED TO MERJE DESIGN IN THE AMOUNT OF $119,205). WHEREAS, the City has solicited, received and evaluated competitive sealed proposals for the Wayfinding Signage Project for the City of Denton Planning Department in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and reviewed and recommended that the herein described proposals are the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals; 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 items in the following numbered request for proposal for materials, for Purchasing Agent, are hereby accepted and approved as being the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals. RFQ NUMBER CONTRACTOR AMOUNT 4938 Merje Design $119,205 SECTION 2. By the acceptance and approval of the above numbered items of the submitted proposals, the City accepts the offer of the persons submitting the proposals for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Proposal Invitations, Proposals, and related documents. SECTION 3. Should the City and person submitting approved and accepted items and of the submitted proposals wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the proposals, the City Manager or his designated representative is hereby authorized to execute the attached written contract; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Proposal and related documents herein approved and accepted. 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 RFQ 4938 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 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-RFQ 4938 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Tim Fisher at 349-7190 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance authorizing the City Manager or his designee to execute a Professional Services Agreement with Kimley Horn and Associates, Inc. for engineering services related to the design and construction of the Southwest Elevated Storage Tank project; and providing an effective date (File 5134Engineering Services for Design and Construction of the Southwest Elevated Storage Tank Project awarded to Kimley Horn and Associates, Inc. in the amount of $325,000). The Public Utilities Board recommends approval (7-0). BACKGROUND INFORMATION The Southwest Elevated Storage Tank project will provide for improved water system pressure maintenance, system reliability and fire protection for the southwest upper pressure plane located 1) is located north of the Robson Ranch master planned community development on a 3.364 acre site near the northwest corner of future Ed Robson Blvd. and existing Lively Rd. A detailed description of the project is included in the attached Public Utilities Board Agenda Information Sheet (Exhibit 2). Staff selected Kimley Horn and Associates, Inc. (KHA) for this project for a number of reasons, with elevated storage tank (EST) projects in the Dallas/Fort Worth area, and their master planning, preliminary, and final design experience with the City for the Southwest Ground Storage and Booster Pump Station project. KHA also recently completed a 2.5 million gallon EST project for the Town of Flower Mound on the west side of their community. The proposed engineering fee of $325,000.00 is appropriate for a project of this size and complexity and includes preliminary and final design, site platting, zoning (Specific Use Permit), bidding, construction administration, material testing, and quality control inspections during construction. It represents a fee of approximately 6.4 % of the estimated construction cost of the project and is below the amount budgeted for final design engineering services for the project. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On December 10, 2012, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. Agenda Information Sheet December 18, 2012 Page 2 RECOMMENDATION Staff recommends approval of a Professional Services Agreement with Kimley Horn and Associates, Inc. in the amount of $325,000. PRINCIPAL PLACE OF BUSINESS Kimley Horn and Associates, Inc. Fort Worth, TX ESTIMATED SCHEDULE OF PROJECT The elevated storage tank is estimated to be completed and operational by early summer of 2015. FISCAL INFORMATION The engineering services will be funded from multiple Capital Improvement Project accounts. Requisition# 111178 has been entered in the Purchasing software system. EXHIBITS Exhibit 1: Site Plan Exhibit 2: Public Utilities Board Agenda Information Sheet Exhibit 3: Public Utilities Board Draft Minutes Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 5134 Southwest Elevated Storage Tank Location Map Exhibit 1 Proposed Southwest Elevated Storage Tank INSET w Text SITE § ¨¦ ! 35 ROBSON 1 inch = 200 feet CITY OF DENTON I ! EXHIBIT 1 WATER UTILITY Exhibit 2 PUBLIC UTILITIES BOARD AGENDA ITEM #10 AGENDA INFORMATION SHEET AGENDA DATE : December 10, 2012 DEPARTMENT : Utility Administration ACM: Howard Martin, 349-8232 SUBJECT Consider approval of a Professional Services Agreement between the City of Denton and Kimley Horn and Associates Inc., in the amount of $ 325,000 for engineering services associated with the design and construction of the Southwest Elevated Storage Tank project. BACKGROUND The Southwest Elevated Storage Tank project will provide for improved water system pressure maintenance, system reliability and fire protection for the southwest upper pressure plane located ect site (see attached Exhibit 1) is located north of the Robson Ranch master planned community development on a 3.364 acre site near the northwest corner of future Ed Robson Blvd. and existing Lively Rd. The Southwest Elevated Storage Tank (EST) site will be provided by the developers of the Robson Ranch project on property they own that lays outside the boundaries of the Robson Ranch master planned community. This site will be conveyed to the City of Denton as a negotiated component of the Memorandum of Understanding for Water and Wastewater Utility Service between the City of Denton and Robson Ranch Development (Robson) as a part of the water system infrastructure necessary to provide water service to Robson Ranch and the surrounding properties located within the southwest upper pressu distribution system master plan. Per the agreement, the City will fund and construct a suitably sized EST on a site provided by Robson and Robson will also provide a supply transmission pipeline through their property to connect this EST to the existing water supply transmission pipeline that runs through Robson Ranch and is supplied by the Southwest Ground Storage Tank and Booster Pumping Station the City constructed near the Country Lakes Development back in 2007. Both the Southwest Booster Pump Station and the EST projects are impact fee eligible funded through impact fees. The Southwest EST is included in the approved five year Water Capital Improvements Program (CIP) for FY 2013-2017 (see attached CIP project detail sheet Exhibit 2). This will be a bond funded project and the debt service payments will be paid for by a combination of water impact fees collected over time and utility water rate revenues. AIS PUB Agenda Item #10 December 10, 2012 Page 2 of 3 The current project is budgeted for an EST of 2.5 Million Gallons (MG) in size. Staff plans on including a bid alternate for a 3.0 MG EST as well. This will be similar in design, size and paint system to the recently completed 3.off of Roselawn, near the south- Southwest EST will be the first and possibly only EST for the southwest upper pressure plan and will p Ranch developments and master planned communities. Based upon the original planning work performed by KHA for the preliminary and final design of the Southwest Ground Storage and Booster Pump Station project, the projected build out population of this pressure zone was approximately 55,000 people. Due to its centralized location, this EST will need to be sized for equalization storage for a large service population and with sufficient fire protection reserve storage for commercial and industrial fire demands and durations. Staff selected KHA for this project for a number of reasons, including their familiarity with the d with EST projects in the DFW area, and their master planning, preliminary and final design experience with the City for the Southwest Ground Storage and Booster Pump Station project. KHA also recently completed a 2.5 MG EST project for the Town of Flower Mound on the west side of their community. The proposed engineering fee of $325,000.00 is appropriate for a project of this size and complexity and includes preliminary and final design, site platting and zoning (Specific Use Permit), bidding, construction administration and material testing and QC inspections during construction. It represents a fee of approximately 6.4 % of the estimated construction cost of the project and is below the amount budgeted for final design engineering services for the project. OPTIONS 1.Approve the PSA with KHA as submitted by staff. 2.Reject the proposal and renegotiate the terms and/or price. RECOMMENDATIONS Staff recommends approval of the PSA with KHA as negotiated and submitted by staff. The fee and scope of services offer the City good value in getting this important project designed and constructed by the summer of 2015. The southwest service area has been supplied by a pump station with pressure tanks since 2007. Although pressure maintenance facilities currently meet TCEQ requirements, the current number of water customers connected to this system is over 1,560 and continues to grow. Pressure maintenance for this area needs to be expanded from pressure tanks and emergency standby power generation initially installed with the Southwest Ground Storage and Booster Pump Station project to include elevated storage. ESTIMATED SCHEDULE OF PROJECT The elevated storage tank should be operational prior to the early summer of 2015. AIS PUB Agenda Item #10 December 10, 2012 Page 3 of 3 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMM.) None FISCAL INFORMATION The proposed PSA is $325,000.00 and is below the budgeted level for engineering services for the project. DATE SCHEDULED FOR COUNCIL APPROVAL December 18, 2012 EXHIBITS 1.Location Map 2.CIP Detail Sheet 3.Professional Services Agreement with Kimley Horn and Associates, Inc. Respectfully submitted: Jim Coulter General Manager, Water Utilities Prepared by: Tim Fisher, P.E. Manager, Water Utilities Division Exhibit 3 DRAFT MINUTES 1 PUBLIC UTILITIES BOARD 2 3 December 10, 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, December 10, 2012 at 5:00 p.m. in the City Hall Conference Room, City of Denton 8 City Hall, 215 E. McKinney Street, Denton, Texas. 9 10 Present: Chairman Dick Smith, Vice Chair Billy Cheek, Randy Robinson, Barbara 11 Russell, Leonard Herring, Phil Gallivan and Lilia Bynum 12 13 Ex Officio Members: Howard Martin, ACM Utilities; George Campbell, CM 14 OPEN MEETING: 15 16 CONSENT AGENDA: 17 18 19 10.Consider approval of a Professional Services Agreement between the City of Denton and 20 Kimley Horn and Associates Inc., in the amount of $325,000 for engineering services 21 associated with the design and construction of the Southwest Elevated Storage Tank project. 22 A motion to approve item 10 was made by Board Member Russell with a second by Board 23 Member Cheek. The vote was 7-0. 24 25 26 Adjournment 6:12pm ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH KIMLEY HORN AND ASSOCIATES, INC. FOR ENGINEERING SERVICES RELATED TO THE DESIGN AND CONSTRUCTION OF THE SOUTHWEST ELEVATED STORAGE TANK PROJECT; AND PROVIDING AN EFFECTIVE DATE (FILE 5134ENGINEERING SERVICES FOR DESIGN AND CONSTRUCTION OF THE SOUTHWEST ELEVATED STORAGE TANK PROJECT AWARDED TO KIMLEY HORN AND ASSOCIATES, INC. IN THE AMOUNT OF $325,000). 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 the maximum provided by law; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager is hereby authorized to enter into a professional service contract with Kimley Horn and Associates, Inc., to provide professional engineering and related services for the design and the construction of the Southwest Elevated Storage Tank Project, a copy of which is attached hereto and incorporated by reference herein. SECTION 2. The City Manager 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 5134 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: _________________________________ 5-ORD-5134 STATE OF TEXAS§ COUNTY OF DENTON§ PROFESSIONAL SERVICES AGREEMENT FOR THE PRELIMINARY AND FINAL DESIGN AND CONSTRUCTION ADMINISTRATION REGARDING THE PROPOSED DENTON SOUTHWEST ELEVATED STORAGE TANK ____________________, THIS AGREEMENT is made and entered into as of theday of 2012,by and between the City of Denton, Texas, a Texas Municipal Corporation, with its principal offices at 215 East McKinney Street, Denton, Texas 76201 (hereafter "OWNER") and , Kimley-Horn & Associates, Inc. a North Carolina Corporation, with its offices at 801 Cherry Street, Suite 950 Unit 11, Fort Worth, Texas 76102 (hereafter "CONSULTANT"); the parties acting herein, by and through their duly-authorized representatives and officers. WITNESSETH, that in consideration of the mutual promises, covenants, agreements herein, and in consideration of the premises, the parties hereto do mutually AGREE as follows: ARTICLE I EMPLOYMENT OF CONSULTANT The OWNER hereby contracts with CONSULTANT, as an independent contractor, and the CONSULTANT hereby agrees to perform the services herein in connection with the Project as stated in the Articles to follow, with diligence and in accordance with the professional standards customarily obtained for such services in the State of Texas. The professional services set forth herein are in connection with the following described project (the "Project"): Professional engineering services pertaining to the preliminary design, final design, site platting and zoning, bidding, construction administration, material testing and QC inspections during the construction of the Southwest Elevated Storage Tank Project. ARTICLE II SCOPE OF SERVICES The CONSULTANT shall perform the following Basic Services in a professional manner: A.To perform those professional services as set forth in the Scope of Work and Fee Proposal – Southwest Elevated Storage Tank Project for the City of Denton, dated December 6, 2012, prepared by CONSULTANT for OWNER; which document is attached hereto as Exhibits "A” and “B”; and which documents are incorporated herein by reference; which document is comprised of, and subdivided into the following sections: Page 1 of 11 1.Project Initiation 2.Preliminary Design 3.Final Design 4.Site Development Requirements for Planning Approval 5.Bid Specifications and Construction Contract Documents 6.Bidding Phase 7.Construction Phase Services 8.Construction Materials Testing and Observation B. If there is any conflict, or if any conflict arises between the terms of this Agreement and Exhibits "A” and “B” attached to this Agreement, the terms and conditions of this Agreement shall control over the terms and conditions of the Exhibits. ARTICLE III ADDITIONAL SERVICES Any additional services to be performed by the CONSULTANT, if authorized by the OWNER, which are not included as Basic Services in the above-described Scope of Services, set forth as provided by Article II. above, shall be later agreed-upon by OWNER and CONSULTANT, who shall determine, in writing, the scope of such additional services, the amount of compensation for such additional services, and other essential terms pertaining to the provision of such additional services by the CONSULTANT. ARTICLE IV PERIOD OF SERVICE This Agreement shall become effective upon its execution by the OWNER and the CONSULTANT, and upon the issuance of a notice to proceed by the OWNER, and shall remain in force and effect for the period that may reasonably be required for the completion of the Project, including Additional Services, if any, and any required extensions approved by the OWNER. This Agreement may be sooner terminated in accordance with the provisions hereof. CONSULTANT shall make all reasonable efforts to complete the services set forth herein as expeditiously as possible and to meet the schedule reasonably established by the OWNER, acting through its City Manager or his designee. ARTICLE V COMPENSATION A.COMPENSATION TERMS: 9."Subcontract Expense" is defined as those expenses, if any, incurred by CONSULTANT in the employment of others in outside firms, for services in the area of professional engineering, or related services. Any subcontractor or sub-consultant billing reasonably incurred by the CONSULTANT in connection with the Project shall be invoiced to OWNER at the actual cost plus ten percent. Page 2 of 11 10."Direct Non-Labor Expense" is defined as that expense, based upon actual cost, for any out-of-pocket expense reasonably incurred by the CONSULTANT in the performance of this Agreement for long distance telephone charges, telecopy charges, messenger services, printing and reproduction expenses, out-of-pocket expenses for purchased computer time, prudently incurred travel expenses related to the work on the Project, and similar incidental expenses incurred in connection with the Project. B.BILLING AND PAYMENT: For and in consideration of the professional services to be performed by the CONSULTANT herein, the OWNER agrees to pay CONSULTANT, based upon the satisfactory completion of the Basic Services tasks set forth in the Scope of Services as shown in Article II above; as follows: 1. CONSULTANT shall perform its work on this Project in accordance with the provisions of those tasks which are described and as set forth in the "Scope of Services”of Exhibit , "A"attached hereto and incorporated herewith by reference. CONSULTANT shall bill from time sheets, on a once-monthly basis, in minimum 1/2 hour or smaller time increments, at the hourly Billing Rates or as otherwise provided. For and in consideration of the professional services to be performed by the CONSULTANT herein, the OWNER agrees to pay, at an hourly rate shown in Exhibit “B”“Compensation” which is incorporated herewith by reference, a total fee, including reimbursement for direct non-labor expenses and for its subcontractor expense, a not-to-exceed amount of $325,000. 2.Partial payments to the CONSULTANT will be made monthly in accordance with the statements reflecting the actual completion of the Basic Services, rendered to and approved by the OWNER through its City Manager [or its Assistant City Manager for Utilities]. However, under no circumstances shall any monthly statement for services exceed the value of the services performed at the time a statement is rendered. 3.Nothing contained in this Article shall require the OWNER to pay for any work which is unsatisfactory as reasonably determined by the City Manager, or his designee, or which is not submitted by CONSULTANT to the OWNER in compliance with the terms of this Agreement. The OWNER shall not be required to make any payments to the CONSULTANT at any time when the CONSULTANT is in default under this Agreement. 4.It is specifically understood and agreed that the CONSULTANT shall not be authorized to undertake any work pursuant to this Agreement which would require additional payments by the OWNER for any charge, expense or reimbursement above the not-to- exceed amount as stated hereinabove, without first having obtained the prior written authorization from the OWNER. CONSULTANT shall not proceed to perform any Page 3 of 11 services to be later provided for under Article III. "Additional Services" without first obtaining prior written authorization from the OWNER. C.ADDITIONAL SERVICES: For additional services authorized in writing by the OWNER in Article III. hereinabove, CONSULTANT shall be paid based on a to-be-agreed-upon Schedule of Charges. Payments for additional services shall be due and payable upon submission by the CONSULTANT, and shall be in accordance with Article V.B. hereinabove. Statements for Basic Services and any Additional Services shall be submitted to OWNER no more frequently than once monthly. D.PAYMENT: If the OWNER fails to make payments due the CONSULTANT for services and expenses within thirty (30) days after receipt of the CONSULTANT'S undisputed statement thereof, the amounts due the CONSULTANT will be increased by the rate of one th percent (1%) per month from and after the said thirtieth (30) day, and in addition, thereafter, the CONSULTANT may, after giving ten (10) days written notice to the OWNER, suspend services under this Agreement until the CONSULTANT has been paid in full for all amounts then due and owing, and not disputed by OWNER, for services, expenses and charges. Provided, however, nothing herein shall require the OWNER to pay the late charge of one percent (1 %) per month as set forth herein, if the OWNER reasonably determines that the CONSULTANT'S work is unsatisfactory, in accordance with Article V.B. of this Agreement, and OWNER has notified CONSULTANT of that fact in writing. ARTICLE VI OBSERVATION AND REVIEW OF THE WORK The CONSULTANT will exercise reasonable care and due diligence in discovering and promptly reporting to the OWNER any defects or deficiencies in the services of the CONSULTANT or any of its subcontractors or sub-consultants. ARTICLE VII OWNERSHIP OF DOCUMENTS All documents prepared or furnished by the CONSULTANT (and CONSULTANT'S subcontractors or sub-consultants) pursuant to this Agreement are instruments of service and shall become the property of the OWNER upon the termination of this Agreement. The CONSULTANT is entitled to retain copies of all such documents. The documents prepared and furnished by the CONSULTANT are intended only to be applicable to this Project and OWNER'S use of these documents in other projects shall be at OWNER'S sole risk and expense. In the event the OWNER uses of the documents in another project or for other purposes than specified herein any of the information or materials developed pursuant to this Agreement, CONSULTANT is released from any and all liability relating to their use in that project. ARTICLE VIII INDEPENDENT CONTRACTOR Page 4 of 11 CONSULTANT shall provide services to OWNER as an independent contractor, not as an employee of the OWNER. CONSULTANT shall not have or claim any right arising from employee status. ARTICLE IX INDEMNITY AGREEMENT The CONSULTANT shall indemnify and save and hold harmless the OWNER and its officials, officers, agents, attorneys and employees from and against any and all liability, claims, demands, damages, losses and expenses, including but not limited to court costs and reasonable attorney fees incurred by the OWNER, and including without limitation damages for bodily and personal injury, death, or property damage, resulting from the negligent acts or omissions of the CONSULTANT or its officers, shareholders, agents, subcontractors, sub-consultants, attorneys, and/or employees in the execution, operation, or performance of this Agreement. Nothing in this Agreement shall be construed to create a liability to any person who is not a party to this Agreement and nothing herein shall waive any of the party's defenses, both at law or equity, to any claim, cause of action or litigation filed by anyone not a party to this Agreement, including the defense of governmental immunity, which defenses are hereby expressly reserved. ARTICLE X INSURANCE During the performance of the Services under this Agreement, CONSULTANT shall maintain the following insurance with an insurance company licensed to do business in the State of Texas by the State Insurance Board or any successor agency, that has a rating with A. M. Best Rate Carriers of at least an "A-" or above: A.Comprehensive General Liability Insurance with bodily injury limits of not less than $1,000,000 for each occurrence and not less than $1,000,000 in the aggregate; and with property damage limits of not less than $100,000 for each occurrence, and not less than $100,000 in the aggregate. B.Automobile Liability Insurance with bodily injury limits of not less than $500,000 for each person and not less than $500,000 for each accident; and with property damage limits for not less than $100,000 for each accident. C.Worker's Compensation Insurance in accordance with statutory requirements and Employer's Liability Insurance with limits of not less than $100,000 for each accident. D.Professional Liability Insurance with limits of not less than $1,000,000 annual aggregate. E.CONSULTANT shall furnish insurance certificates or insurance policies to the OWNER to evidence such insurance coverage. Except for Professional Liability Insurance and Worker’s Compensation Insurance, the insurance policies shall name the OWNER as an additional Page 5 of 11 insured on all such policies, and shall contain a provision that such insurance shall not be cancelled or materially modified without at least thirty (30) days prior written notice to OWNER and CONSULTANT. In such event, the CONSULTANT shall, prior to the effective date of the change or cancellation of coverage, deliver copies of certificates for any such substitute policies, furnishing at least the same policy limits and coverage, to OWNER. ARTICLE XI ARBITRATION AND ALTERNATE DISPUTE RESOLUTION The parties may agree to settle any disputes under this Agreement by submitting the dispute to arbitration or other means of alternate dispute resolution such as mediation. No arbitration or alternate dispute resolution arising out of or relating to, this Agreement involving one party's disagreement, may include the other party to the disagreement without the other's approval. ARTICLE XII TERMINATION OF AGREEMENT A.Notwithstanding any other provision of this Agreement, either party may terminate this Agreement by providing thirty (30) days advance written notice to the other party. B.This Agreement may alternatively be terminated in whole or in part in the event of either party substantially failing to fulfill its obligations under this Agreement. No such termination will be effected unless the other party is given (1) written notice (delivered by certified mail, return receipt requested) of intent to terminate and setting forth the reasons specifying the nonperformance or other reason(s), and not less than thirty (30) calendar days to cure the failure; and (2) an opportunity for consultation with the terminating party prior to termination. C.If this Agreement is terminated prior to completion of the services to be provided hereunder, CONSULTANT shall immediately cease all services upon receipt of the written notice of termination from OWNER, and shall render a final bill for services to the OWNER within twenty (20) days after the date of termination. The OWNER shall pay CONSULTANT for all services properly rendered and satisfactorily performed, and for reimbursable expenses prior to notice of termination being received by CONSULTANT, in accordance with Article V. of this Agreement. Should the OWNER subsequently contract with a new consultant for the continuation of services on the Project, CONSULTANT shall cooperate in providing information to the OWNER and to the new consultant. If applicable, OWNER shall allow CONSULTANT a reasonable time to transition and to turn over the Project to a new consultant. CONSULTANT shall turn over all documents prepared or furnished by CONSULTANT pursuant to this Agreement to the OWNER on or before the date of termination, but may maintain copies of such documents for its files. ARTICLE XIII RESPONSIBILITY FOR CLAIMS AND LIABILITIES Page 6 of 11 Approval of the services by the OWNER shall not constitute, nor be deemed a release of the responsibility and liability of the CONSULTANT, its officers, employees, agents, subcontractors, and sub-consultants for the accuracy and competency of their designs or other services performed pursuant to this Agreement; nor shall such approval by the OWNER be deemed as an assumption of such responsibility by the OWNER for any defect in the design or other services performed by the CONSULTANT, its principals, officers, employees, agents, subcontractors, and sub-consultants. ARTICLE XIV NOTICES All notices, communications, and reports required or permitted under this Agreement shall be personally delivered to; or telecopied to; or mailed to the respective parties by depositing same in the United States mail at the addresses shown below, postage prepaid, certified mail, return receipt requested, unless otherwise specified herein: To CONSULTANT:To OWNER: Kimley-Horn and Associates, Inc.City of Denton, Texas 801 Cherry Street, Unit 11City Manager Suite 950215 East McKinney Street Fort Worth, Texas 76102Denton, Texas 76201 Fax: (817) 335-5070Fax: (940) 349-8596 All notices given under this Agreement shall be effective upon their actual receipt by the party to whom such notice is given. ARTICLE XV ENTIRE AGREEMENT This Agreement consisting of eleven(11) pages and two (2) Exhibits 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 XVI SEVERABILTY 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, Page 7 of 11 the parties shall reform this Agreement, to the extent reasonably possible, to replace such stricken provision with a valid and enforceable provision which comes as close as possible to expressing the original intentions of the parties respecting any such stricken provision. ARTICLE XVII COMPLIANCE WITH LAWS The CONSULTANT shall comply with federal, state, local laws, rules, regulations, and ordinances applicable to the services performed by CONSULTANT hereunder, as they may now read or as they may hereafter be amended. ARTICLE XVIII DISCRIMINATION PROHIBITED In performing the services required hereunder, the CONSULTANT shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. ARTICLE XIX PERSONNEL A.CONSULTANT represents that it has or will secure at its own expense all personnel required to perform all the services required under this Agreement. Such personnel shall not be employees or officers of, nor have any contractual relations with the OWNER. CONSULTANT shall immediately inform the OWNER in writing of any conflict of interest or potential conflict of interest that CONSULTANT may discover, or which may arise during the term of this Agreement. B.All services required hereunder will be performed by CONSULTANT or under its direct supervision. All personnel engaged in performing the work provided for in this Agreement, shall be qualified, and shall be authorized and permitted under state and local laws to perform such services. ARTICLE XX ASSIGNABILITY The CONSULTANT shall not assign any interest in this Agreement and shall not transfer any interest in this Agreement (whether by assignment, novation or otherwise) without the prior written consent of the OWNER. CONSULTANT shall further promptly notify OWNER in writing of any change of its name as well as of any significant change in its corporate structure, its business address, its operations, or regarding its solvency. ARTICLE XXI MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, limitation herein contained shall be valid unless in writing and duly executed by the party to be charged Page 8 of 11 therewith. No evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto arising out of, or affecting this Agreement, or the rights or obligations of the parties hereunder, unless such waiver or modification is in writing, duly executed. The parties further agree that the provisions of this Article will not be waived unless as herein set forth. ARTICLE XXII MISCELLANEOUS A.The following Exhibits are attached to, incorporated herewith by reference, and are made a part of this Agreement for all purposes pertinent: Exhibit “A" --- Scope of Services --- Dated: December 6, 2012 Exhibit “B” --- Compensation --- Dated: December 6, 2012 B.CONSULTANT agrees that OWNER shall, until the expiration of four (4) years after the final payment made by OWNER under this Agreement, have access to and the right to examine any directly pertinent books, documents, papers and records of the CONSULTANT involving transactions relating to this Agreement. CONSULTANT agrees that OWNER shall have access during normal working hours to all necessary CONSULTANT facilities and shall be provided adequate and appropriate working space in order to conduct examinations or audits in compliance with this Article. OWNER shall give CONSULTANT reasonable advance notice of all intended examinations or audits. C.Venue of any suit or cause of action under this Agreement shall lie exclusively in Denton County, Texas. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. D.For purposes of this Agreement, the parties agree that the Project Principal shall be Glenn A. Gary, Principal, P.E., and the key persons who will perform most of the work as the Project Team, include the Project Manager, John R. Atkins, P.E., under, and in accordance with this Agreement, shall be as specifically identified and set forth in the "Scope of Services” document attached hereto as Exhibit "A." This Agreement has been entered into with the understanding, expectation, and the OWNER'S reliance, that the above-stated employees of CONSULTANT shall perform or direct all or a significant portion of the services on the Project. Any proposed changes regarding the change of the Project Manager or other key personnel, requested by CONSULTANT, respecting one or more of the above-stated employees, shall be subject to the approval of the OWNER, which approval the OWNER shall not unreasonably withhold. Nothing herein shall limit CONSULTANT from using other qualified and competent members of its firm to perform the other incidental services required herein, under its supervision or control. Page 9 of 11 E.CONSULTANT shall commence, carry on, and complete its work on the Project with all applicable dispatch, and in a sound, economical, efficient manner, and in accordance with the provisions hereof in accomplishing the Project, CONSULTANT shall take such steps as are reasonably appropriate so that the services involved are properly coordinated with related work being carried on by the OWNER. F.The OWNER shall assist the CONSULTANT by placing at the CONSULTANT'S disposal all available information pertinent to the Project, including previous reports, any other data relative to the Project and arranging for the access to, and make all provisions for the CONSULTANT to enter in or upon, public and private property as required for the CONSULTANT to perform professional services under this Agreement. OWNER and CONSULTANT agree that CONSULTANT is entitled to rely upon information furnished to it by OWNER without the need for further inquiry or investigation into such information. G.The captions of this Agreement are for informational purposes only and shall not in any way affect the substantive terms or conditions of this Agreement. IN WITNESS WHEREOF, the OWNER, the City of Denton, Texas has executed this Agreement in four (4) original counterparts, by and through its duly authorized City Manager; and CONSULTANT has executed this Agreement by and through its duly authorized undersigned officer on this the ______ day of _________________, 2012. "OWNER" CITY OF DENTON, TEXAS A Texas Municipal Corporation By: GEORGE C. CAMPBELL CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY By:__ Page 10 of 11 EXHIBIT “A” SCOPE OF SERVICES DECEMBER 6, 2012 PROJECT UNDERSTANDING Provide engineering design services to construct the Southwest 2.5 million gallon Elevated Storage Tank in 900 serve area. The project is anticipated to be located on approximately 2.23 acres and is located approximately 440 feet northwest of the Lively Road/Ed Robson Boulevard intersection. Based on information provided by the OWNER the CONSULTANT (Kimley-Horn) assumes the following: All services related to property acquisition are not part of this scope of services. The water line serving the site will be designed by others and will terminate at the tank site property line. The CONSULTANT’s scope of services is as follows: 1. PROJECT INITIATION 1.1. Kick-off Meeting 1.1.1. The CONSULTANT will conduct one (1) kick-off meeting with representatives of the OWNER. This meeting will review the project issues, establish communication protocol, and begin the design process. Conducting this meeting will involve preparing exhibits, agenda handouts and documenting comments. 1.2. Data Collection - The CONSULTANT will attempt to collect information as listed below. If the CONSULTANT is unable to collect information in a reasonable time, the OWNER will assist the CONSULTANT in obtaining the information. 1.2.1. Obtain size, horizontal and vertical location of the existing utilities and appurtenances that are located within the area of the site that may conflict with utilities associated with the site. Request information such as schedule and construction plans for infrastructure that is proposed to be installed or relocated within the area of the site. Utilities include: 1.2.1.1. Gas Utilities 1.2.1.2. Electric Utilities 1.2.1.3. Telecommunication 1.2.2. OWNER Owned Utility Data – Request information regarding the latest water master plan, design reports or plans for the North West Elevated Storage Tank and the Roselawn Elevated Storage Tank. 1.2.3. Coordination with OWNER, Robson Ranch Development, and Engineer regarding the connection of the Robson Water Transmission Line to the Tank site water line. Establish milestones for completion of the elevated tank and water supply line. 1.3. Topographic Survey and Control 1.3.1. Topographic Survey 1.3.1.1. Perform survey and prepare topographic map of the 2.23 acre site, indicating spot elevations, one foot contours, utilities and easements shown on the Title policy. 1.3.1.2. Survey Control Installation and Confirmation 1.3.1.2.1. Set on site control (vertical and horizontal) based on the City of Denton Monuments and the Texas State Plane NAD 83 coordinate system. To link the vertical elevation between the existing Southwest Pump Station and proposed elevated tank, the CONSULTANT will coordinate elevation verifications between the two sites. 2. PRELIMINARY DESIGN 2.1. Geotechnical Analysis and Report 2.1.1. Perform a geotechnical analysis of the site utilizing a qualified geotechnical laboratory to determine subsurface conditions and make recommendations regarding foundation design parameters for the elevated storage tank and the access drive from Lively Road. The geotechnical analysis will include: 2.1.1.1. Subsurface exploration including up to three (3) sample bores at varied depths from 35 to 50 feet for elevated storage tank and two (2) sample bores at depths of approximately 15 feet for the access drive. 2.1.1.2. Laboratory tests for classification purposes and strength characteristics. The following test will be provided: 2.1.1.2.1. Moisture content and soil identification 2.1.1.2.2. Liquid and plastic limit determinations 2.1.1.2.3. Unconfined compression tests on soil 2.1.1.2.4. Unit weight determinations 2.1.1.2.5. Absorptions pressure and/or one-point pressure swell tests 2.1.1.3. Engineering services that address soil and groundwater conditions as well as recommendations for foundations, floor slab, driveway and earthwork. The report will include: 2.1.1.3.1. General soil and ground-water conditions 2.1.1.3.2. Recommendations for foundation type, depth and allowable loading and settlement estimates 2.1.1.3.3. Foundation construction requirements 2.1.1.3.4. Recommendations for floor slab support, including an evaluation of the swell characteristics of the subgrade soils 2.1.1.3.5. Earthwork recommendations 2.1.1.4. The geotechnical report will present the results of the field and laboratory data as well as analyses and recommendations. The data contained in the geotechnical report will be made available to contractors during the bidding process for information purposes. 2.2. Preliminary Design Considerations 2.2.1. The CONSULTANT will prepare for and facilitate a design secession with the OWNER to discuss and make recommendations and prepare meeting notes on the following items concerning the overall design. 2.2.1.1. Site Plan Considerations: Following requirements of the City Site Design Criteria Manual (SDCM). The following items will be specifically reviewed with the OWNER at the design secession. 2.2.1.1.1. Fence and entry gate: For security per TCEQ, and/or requirements per Robson Ranch Development and Section 6 of the SDCM. 2.2.1.1.2. Entrance drive location and type. Access easement or right of way to the site from Lively Road. 2.2.1.1.3. Onsite parking and driveway: Per Specific Use Permit, Fire Code and Section 7 of the SDCM. 2.2.1.1.4. Site drainage and detention: Per City Development Code Subchapter 19 – Drainage Standards and off-site considerations. 2.2.1.1.5. Tank overflow: Determine if structure can be combined with site drainage facilities. 2.2.1.1.6. Site lighting: Per City Development Code Subchapter 13 – Site Design Standards (Lighting and Glare Performance Requirements) 2.2.1.1.7. Landscaping: Per Specific Use Permit and Sections 3 and 4 of the SDCM. 2.2.1.1.8. Irrigation system: Identify and operational considerations for landscaping. 2.2.1.1.9. Telecommunication facilities: If accommodated on site, discuss options of location of structures; such as a separate fenced location on the site, and accessibility to the tank. 2.2.1.2. Operational Considerations – Review and confirm that the following items meet the OWNER’s intent for the proper operation of the elevated tank within the Southwest service area. 2.2.1.2.1. Tank overflow elevation: Overflow elevation verification to elevation of the Southwest Booster Pump Station. Confirm overflow elevation with regards to hydraulic studies performed for Robson Ranch and the Southwest Booster Pump Station. 2.2.1.2.2. Tank head range: Obtain information from three (3) tank manufacturers regarding typical head ranges in relation to tank size and its relationship to cost. This information will be provided to the OWNER for discussion as it relates to the desired operational head range. 2.2.1.2.3. Operational control valve: Review valve preferences with the OWNER such as, typical diaphragm style altitude valve, solenoid operated diaphragm valve, motor operated butterfly valve, or combination motor operated valve with check valve. 2.2.1.2.4. SCADA equipment: Review equipment preferences along with control and monitoring preference with the OWNER. This could include valve operation, lighting and security controls, along with monitoring items such as water level and flow, valve status, hatch and door opening status and/or video. SCADA requirements and equipment will follow the 2012 SCADA Master Plan Standards. 2.2.1.2.5. Control adjustments: Review operational changes with regards to the installation of the elevated tank. Provide operational and control narrative for controlling the pumps at Southwest Booster Pump Station in conjunction with the elevated tank. 2.2.1.3. Tank Considerations – The CONSULTANT will review and confirm that the following items meet the OWNER’s intent for the tank structure and it appurtenances. 2.2.1.3.1. Steel Tank, Plate Thickness: Review thickness preference for corrosion allowance with the OWNER as compared to the criteria specified in AWWA D100 and AWWA D107. 2.2.1.3.2. Steel Tank, Welding and Inspection: Review the addition of welding and inspection standards that detail requirements exceeding the standards outlined in AWWA D100 and AWWA D107 with the OWNER. 2.2.1.3.3. Steel Tank, Coating Options (Interior and Exterior) and Logo Design: Provide the OWNER two (2) coating options to consider for both interior and exterior. The coating will range from a shorter life, less expensive coating such as a two coat epoxy system to a longer life, more expensive polyurethane or fluoropolymer coating system. Logo design and orientation will also be included. 2.2.1.3.4. Cathodic Protection System: Review installation of a suspended anode system for corrosion protection in conjunction with the coating system option presented in 2.2.1.3.3. 2.2.1.3.5. Water Circulation Systems: Review circulation system experience and preferences with the OWNER such as Tideflex (vertical valve layout) or SolarBee (surface mixer) or tank manufacturer systems. 2.2.1.3.6. Telecommunication Conduits Penetrations: Discuss whether to provide additional penetration for future telecommunication or only accommodations for City needs with the OWNER. 2.2.1.3.7. Tank Pedestal Access: Review items on the location, type and method for securing the personnel and vehicle access doors with the OWNER. 2.2.1.3.8. Tank Ladders or Spiraling Staircase, Platforms and Safety Climb Devices: Review items on the OWNER’s preferences for location, and types used by the City. 2.2.1.3.9. Additional Floors: Review whether to provide additional floors with pedestal for storage with the OWNER. 2.2.1.3.10. Inlet/Outlet and Overflow piping: Review the OWNER’s pipe material (coated steel or stainless steel) preferences for piping within the pedestal. 2.2.1.3.11. Federal Aviation Administration (FAA) Height Restriction Information: Will contact and obtain the FAA’s Aeronautical Study. The studied will be reviewed with the OWNER, outlining if any restriction will be placed on the tank due to its proximity to Denton Municipal Airport. 2.2.1.3.12. City Permit Requirements: Assemble a list of permits that may be required for the site development and construction of the tank. The list will be reviewed with the OWNER to determine if these or and other permits will be required before the project is bid for construction. 2.2.1.4. Qualification of Potential Bidders: Develop a qualification process to review and discuss with the OWNER. The discussion items will include, defining the qualifications, and determining when to qualify (before or after bidding). 2.3. Preliminary Plans 2.3.1. Upon completion of the Preliminary Design Considerations design secession and comments received from the OWNER the CONSULTANT will prepare and submit a PDF copy of Preliminary Plans illustrating the conclusion from the design secession. The Preliminary Plans will include the following sheets: 2.3.1.1. Cover and Project Location Map 2.3.1.2. General Notes 2.3.1.3. Dimension Control Plan 2.3.1.4. Site Plan 2.3.1.5. Access Drive Plan 2.3.1.6. Landscape Plan 2.3.1.7. Tank Details (2 sheets) 2.3.1.8. Sheets not included in preliminary plan submittal (grading plan, water and storm plan and profile, access drive profile and cross sections, erosion control, electrical, irrigation, and detail sheets for water, paving, drainage, landscape, irrigation, electrical) 2.3.2. Opinion of Probable Construction Cost 2.3.2.1. The CONSULTANT will prepare preliminary opinion of probable construction cost (OPCC) for the proposed design. 2.4. Deliverables 2.4.1. PDF copy of the Preliminary Plans 2.4.2. PDF copy of the OPCC 2.4.3. PDF copy of the Geotechnical Report 2.5. Meetings 2.5.1. Prepare for and attend one (1) preliminary design considerations design secession with the OWNER. 2.5.2. Attend one (1) meeting to review preliminary plans, OPCC and Geotechnical Report. 3. FINAL DESIGN 3.1. Once the OWNER has reviewed the preliminary plans, the CONSULTANT will prepare final plans and technical specifications in accordance with the preliminary plans and requirements for platting, specific use permit for rezoning, and the City Land Development Code. Final plans will consist of approximately thirty (30) – 22”x34” plan sheets. Final design includes: 3.1.1. Civil Plans – Based on information provided by the OWNER and Denton Development Code (DDC) subchapter 5 and assuming the site is zoned as Institutional Land Use (Basic Utility) the design will include the following: 3.1.1.1. Site grading and drainage plan, profile and details as required by DDC subchapter 19 and in accordance with the City of Denton Drainage Criteria Manual sections 6 through 10. 3.1.1.2. Erosion control plans and details as required by DDC subchapter 19 and in accordance with Drainage Criteria Manual section 11 and EPA requirements. 3.1.1.3. Landscape and Irrigation plans and details as required by Land Development Code Chapter 31 and in accordance with SDCM Sections 4 and 5. 3.1.1.4. Fencing plans and details as required by DDC subchapter 13 and in accordance with SDCM Section 6. 3.1.1.5. Access Drive and details as required by Land Development Code Chapter 29, DDC subchapter 20 and in accordance with Denton Transportation Criteria Manual. 3.1.1.6. Parking layout as required by DDC subchapter 14 and in accordance with SDCM Section 7. 3.1.1.7. Water line plan, profile and details as required by DDC subchapter 21 and in accordance with the City of Denton Water and Wastewater Criteria Manual. 3.1.1.8. Tank sections and details in accordance with TCEQ 30 TAC Subchapter D Section 290.43 Water Storage, AWWA Standards D100, D102 and OWNER preferences. 3.1.1.9. Traffic control plans and details in accordance with the Manual of Uniform Traffic Control Devices (MUTCD). 3.1.2. Electrical Plans - Based on information provided by the OWNER, and in accordance with the 2011 National Electrical Code and City amendments the design will include the following: 3.1.2.1. Electrical service plan and details in accordance with Code of Ordinance Chapter 26, Article III, Division 2 3.1.2.2. Site lighting plan in accordance with Code of Ordinance Chapter 26, Article III, Division 1. 3.1.2.3. Internal and external tank lighting plan, elevation, and details in accordance to Land Development Code Chapter 28, Article III and FAA Advisory Circular AC 70/7460-1K (Obstruction Marking and Lighting). 3.1.2.4. Control schematics and details for the following: 3.1.2.4.1. Valve monitoring and control 3.1.2.4.2. Pressure and level transmitter monitoring 3.1.2.4.3. Tank obstruction and emergency lighting monitoring and control 3.1.2.4.4. Electrical and control modification at the Southwest Pump Station in conjunction with the elevated tank. 3.1.2.5. RTU and SCADA schematic and details in conjunction with the City’s current SCADA system. 3.1.3. Technical Specifications – The technical specifications will be in Construction Standards Institute (CSI) divisional format. It’s estimated that the following specification will be provided. Based on information obtained during the Preliminary Design design secession some specifications may be removed and others added. 3.1.3.1. Division 1 – General Requirements 01035 Control of Work 01040 Construction Sequence 01200 Project Meetings 01300 Submittals 01315 Progress Schedule and Reports 01500 Construction Facilities and Controls 01700 Contract Closeout 01720 Project Record Documents 01730 Operating and Maintenance Data 3.1.3.2. Division 2 – Site Work 02100 Site Preparation 02200 Earth Excavation, Backfill, Fill and Grading 02221 Trenching, Backfilling, and Compaction 02270 Sedimentation and Erosion Control 02612 Concrete Pressure Pipe Bar-Wrapped Steel Cylinder Type 02615 Ductile Iron Pipe and Fittings 02617 Steel Pipe 02641 Resilient Seated Gate Valve 02642 AWWA Butterfly Valve 02644 Expansion Joints and Couplings 02831 Fencing 02936 Seeding of Disturbed Areas 3.1.3.3. Division 8 – Doors and Windows 08110 Steel Doors and Frames 08330 Overhead Coiling Doors 08710 Finish Hardware 3.1.3.4. Division 9 – Finishes 09900 Painting 09910 Steel Water Storage Tank Painting 3.1.3.5. Division 11 – Equipment 11260 Chlorine Analyzer 11296 Flow Control Valve and Actuator 3.1.3.6. Division 13 – Tanks 13201 Composite Elevated Water Storage Tank 3.1.3.7. Division 15 – Mechanical 15400 Plumbing 15440 Plumbing Fixtures 3.1.3.8. Division 16 – Electrical 16010 Electrical General Provisions 16110 Raceways 16120 Wire and Cable 16191 Dry Type Transformers 16199 Miscellaneous 16210 Electric Utility Service 16410 Underground 16450 Grounding Systems 16455 Lightning Protection 16642 Cathodic Protection System 16910 Instrumentation 3.2. Deliverables 3.2.1. Final design deliverables will consist of the following: 3.2.1.1. Three (3) copies of 22”x34” 95% plans 3.2.1.2. Three (3) sets of 95% Technical specifications 3.3. Meetings 3.3.1. Attend one (1) meeting to present 95% design and deliverables. 3.3.2. Attend one (1) meeting to discuss OWNER’s comments regarding the design and deliverables. 4. SITE DEVELOPMENT REQUIREMENTS FOR PLANNING APPROVAL 4.1. PRIVATE ACCESS AND FIRE LANE EASEMENT 4.1.1. The proposed site does not have frontage along Lively Road. The OWNER will pursue obtaining a private access easement. Therefore, the CONSULTANT will prepare the legal description and exhibit for execution by the OWNER. 4.2. PRE-APPLICATION CONFERENCE SUBMITTAL 4.2.1. The conference will provide City staff from several different Development Review Departments to provide feedback regarding the requirements for this project. The application will include the following and will be produced by the CONSULTANT: 4.2.1.1. Transmittal 4.2.1.2. Pre-Application Conference Application 4.2.1.3. Project Narrative 4.2.1.4. Questions 4.2.1.5. Conveyance Plat (provide by OWNER) 4.2.1.6. Planning Site Plan 4.2.1.7. Pre-Application Conference Checklist 4.2.2. Deliverables – The following deliverables are requirements of Denton Development Code: 4.2.2.1. One (1) copy of the Pre-Application Conference Packet for Review. 4.2.2.2. One (1) CD-ROMs containing all submission material as a PDF document. 4.2.3. Meetings 4.2.3.1.1. Attend one (1) meeting with City staff. 4.3. PRELIMINARY AND FINAL PLATTING 4.3.1. The preliminary and final platting process ensures the development is in compliance with the Denton Development Code. The requirements for Preliminary and Final Plat submittals are as follows and will be produced by the CONSULTANT: 4.3.1.1. Transmittal (Preliminary and Final Platting) 4.3.1.2. Universal Application (Preliminary and Final Platting) 4.3.1.3. Preliminary Plat (Preliminary Platting only) 4.3.1.4. Final Plat (Final Platting only) 4.3.1.5. 22”x34” Engineering Documents (Preliminary Platting only) 4.3.1.6. 24”x36” Engineering Documents (Final Platting only) 4.3.1.7. Tree Inventory (Preliminary Platting only) 4.3.1.8. Preliminary Plat Checklist (Preliminary Platting only) 4.3.1.9. Final Plat Checklist (Final Platting only) 4.3.1.10. Preliminary and Final Plat Checklists (Preliminary and Final Platting) 4.3.2. Deliverables – The following deliverables are requirements of Denton Development Code 4.3.2.1. One (1) copy of the Preliminary Plat Packet for Review. 4.3.2.2. One (1) CD-ROMs containing Preliminary Plat submission material as a PDF document. 4.3.2.3. One (1) copy of the Final Plat Packet for Review. 4.3.2.4. One (1) CD-ROMs containing Final Plat submission material as a PDF document. 4.3.3. Meetings 4.3.3.1. Attend two (2) DRC meetings with City staff (Preliminary Plat review meeting, Final Plat review meeting). 4.4. SPECIFIC USE PERMIT REQUIREMENTS FOR REZONING 4.4.1. According to the Denton Development Code (DDC) rezoning of the property requires a public hearing with the Planning and Zoning Commission. The specific use permit require submitting fourteen (14) packets of the following items: 4.4.1.1. Universal Application 4.4.1.2. 24”x36” Site Plan 4.4.1.3. 24”x36” Landscape Plan 4.4.1.4. Project Narrative 4.4.1.5. Completed Submittal Checklist 4.4.1.6. Completed Site Plan Standards Checklist 4.4.1.7. Legal Description 4.4.1.8. Copy of Deed (provide by OWNER) The CONSULTANT will produce items 4.4.1.1 through 4.4.1.7 with the OWNER providing item 4.4.1.8. The CONSULTANT will submit the packets on behalf of the OWNER. 4.4.2. Deliverables – The following deliverables are requirements of Denton Development Code for Rezoning. 4.4.2.1. Fourteen (14) copies of the Specific Use Permit Packet for the Planning and Zoning Commission. 4.4.2.2. Fourteen (14) copies of the Specific Use Permit Packet for the City Council. 4.4.2.3. Two (2) CD-ROMs containing all submission material as a PDF document. 4.4.3. Meetings 4.4.3.1. Attend one (1) Planning and Zoning Commission Meeting. 4.4.3.2. Attend one (1) City Council Meeting. 5. BID SPECIFICATIONS AND CONSTRUCTION CONTRACT DOCUMENTS 5.1. Based on comments from the OWNER regarding the 95% plans and technical specification, the CONSULTANT will prepare construction contract documents, bid plans, and opinion of probable construction cost. 5.1.1. The construction contract documents will consist of the following: 5.1.1.1. Notice to Bidders – Standard form provided by the OWNER. Specific project information will be added by the CONSULTANT. 5.1.1.2. Proposal - Standard form provided by the OWNER. Specific project information will be added by the CONSULTANT. 5.1.1.3. Contract Agreement – Standard form provided by the OWNER. 5.1.1.4. Performance Bond - Standard form provided by the OWNER. 5.1.1.5. Payment Bond - Standard form provided by the OWNER. 5.1.1.6. Certificate of Insurance - Standard form provided by the OWNER. 5.1.1.7. Invoice Attachment and Instructions - Standard form provided by the OWNER. 5.1.1.8. General Conditions – Standard form provided from Engineers Joint Contract Documents Committee (EJCDC). 5.1.1.9. Supplementary Conditions – Project specific supplementary information for modification or addition to the general conditions produced by the CONSULTANT in accordance with the OWNER’s approval. 5.1.1.10. Technical Specifications – Produced by the CONSULTANT as outlined in the Final Design. 5.1.2. The bid plans will consist of the final plans, sign and sealed by an licensed professional engineer in the State of Texas and in accordance with comments provided by the OWNER during final design. 5.1.3. A final opinion of probable construction cost will be prepared by the CONSULTANT and provided to the OWNER for information purposes. 6. BIDDING PHASE 6.1. The CONSULTANT will prepare and deliver fifteen (15) sets of bid documents to the City Purchasing Department for bidding. If additional sets are required it will be considered additional services. 6.2. The CONSULTANT will provide the Notice to Bidders to the OWNER for publication. The OWNER will be responsible for publication of the notice. The OWNER will be responsible for distribution of bidding documents to prospective contractors, suppliers and plan rooms. 6.3. The CONSULTANT will provide assistance to the OWNER during the bidding phase by providing the following services: 6.3.1. Preparation of addenda and delivery to the OWNER for distribution to the plans holders. 6.3.2. Responses to questions submitted by plan holders. 6.3.3. Attend a scheduled pre-bid conference facilitated by the OWNER. 6.3.4. Attend bid opening facilitated by the OWNER. 6.3.5. Review Contractor’s proposal for completeness and accuracy after OWNER deems the Contractor has submitted a proposal in accordance the bidding criteria. 6.3.6. Develop bid tabulation spreadsheet and provide the OWNER four (4) hard copies and in electronic format along with award recommendation letter. 6.4. Conformance plans and specifications 6.4.1. Based on potential questions and addenda from the bidding phase, prepare conformance set of plans and specifications to be used during construction. 6.4.1.1. Provide six (6) sets to the OWNER for execution. 7. CONSTRUCTION PHASE SERVICES 7.1. Pre-Construction Conference – CONSULTANT will prepare for and conduct a Pre-Construction Conference prior to commencement of Work at the Site. 7.2. Visits to Construction Site (maximum of 15 site visits) 7.2.1. CONSULTANT will provide on-site construction observation services during the construction phase. CONSULTANT will make visits at intervals as directed by OWNER in order to observe the progress of the Work. Such visits and observations by CONSULTANT are not intended to be exhaustive or to extend to every aspect of Contractor's work in progress. Observations are to be limited to spot checking, selective measurement, and similar methods of general observation of the Work based on CONSULTANT’s exercise of professional judgment. Based on information obtained during such visits and such observations, CONSULTANT will evaluate whether Contractor's work is generally proceeding in accordance with the Contract Documents, and CONSULTANT will keep OWNER informed of the general progress of the Work. 7.2.2. The purpose of CONSULTANT’s site visits will be to enable CONSULTANT to better carry out the duties and responsibilities specifically assigned in this Agreement to CONSULTANT, and to provide OWNER a greater degree of confidence that the completed Work will conform in general to the Contract Documents. CONSULTANT shall not, during such visits or as a result of such observations of Contractor's work in progress, supervise, direct, or have control over Contractor's work, nor shall Kimley- Horn have authority over or responsibility for the means, methods, techniques, equipment choice and usage, sequences, schedules, or procedures of construction selected by Contractor, for safety precautions and programs incident to Contractor's work, nor for any failure of Contractor to comply with laws and regulations applicable to Contractor's furnishing and performing the Work. Accordingly, CONSULTANT neither guarantees the performance of any Contractor nor assumes responsibility for any Contractor's failure to furnish and perform its work in accordance with the Contract Documents. 7.3. Recommendations with Respect to Defective Work 7.3.1. CONSULTANT will recommend to OWNER that Contractor's work be disapproved and rejected while it is in progress if, on the basis of such observations, CONSULTANT believes that such work will not produce a completed Project that conforms generally to Contract Documents. 7.4. Clarifications and Interpretations 7.4.1. CONSULTANT will respond to reasonable and appropriate Contractor requests for information and issue necessary clarifications and interpretations of the Contract Documents to OWNER as appropriate to the orderly completion of Contractor's work. Any orders authorizing variations from the Contract Documents will be made by OWNER. 7.5. Shop Drawings and Samples 7.5.1. CONSULTANT will review and approve or take other appropriate action in respect to Shop Drawings, Samples and other data which Contractor is required to submit, but only for conformance with the information given in the Contract Documents. Such review and approvals or other action will not extend to means, methods, techniques, equipment choice and usage, sequences, schedules, or procedures of construction or to related safety precautions and programs. 7.6. Substitutes and "or-equal." 7.6.1. Evaluate and determine the acceptability of substitute or "or-equal" materials and equipment proposed by Contractor in accordance with the Contract Documents, but subject to the provisions of applicable standards of state or local government entities. 7.7. Inspections and Tests 7.7.1. CONSULTANT may require special inspections or tests of Contractor's work as CONSULTANT deems appropriate, and may receive and review certificates of inspections within CONSULTANT’s area of responsibility or of tests and approvals required by laws and regulations or the Contract Documents. CONSULTANT’s review of such certificates will be for the purpose of determining that the results certified indicate compliance with the Contract Documents and will not constitute an independent evaluation that the content or procedures of such inspections, tests, or approvals comply with the requirements of the Contract Documents. CONSULTANT shall be entitled to rely on the results of such tests and the facts being certified. 7.8. Substantial Completion 7.8.1. CONSULTANT will, promptly after notice from Contractor that it considers the entire Work ready for its intended use, in company with OWNER and Contractor, conduct a site visit to determine if the Work is substantially complete. Work will be considered substantially complete following satisfactory completion of all items with the exception of those identified on a final punch list. If after considering any objections of OWNER, CONSULTANT considers the Work substantially complete; CONSULTANT will notify OWNER and Contractor. 8. CONSTRUCTION MATERIAL TESTING AND OBSERVATION 8.1. Earthwork 8.1.1. Obtain and perform laboratory moisture/density relations (standard proctor-ASTM D689) and soil classification tests (liquid limit, plastic limit and percent finer than no. 200 sieve analysis) for each soil type. 8.1.2. Perform in-place moisture/density tests at the rate of 1/2500 square feet for paving areas, and 1/150 linear feet for foundation backfill and utility backfill areas. 8.2. Footing Foundation Observation 8.2.1. Excavation observation of the spread footing, which will include: 8.2.1.1. Observe bearing stratum materials and document conformance with Geotechnical Engineer’s recommendations. 8.2.1.2. Observe and document condition of footing excavation before placement of reinforcing steel and concrete. 8.3. Reinforcing Steel 8.3.1. Perform reinforcing steel observation which will include: 8.3.1.1. Record number and size of bars. 8.3.1.2. Record clearance between bars and spacing. 8.3.1.3. Record securing, tying and chairing of bars. 8.4. Cast-In-Place Concrete 8.4.1. Perform testing during concrete placements, which will include: 8.4.1.1. Ambient and concrete temperature determinations 8.4.1.2. Entrained air content determination 8.4.1.3. Slump determination 8.4.1.4. Cast four inch by eight inch concrete test cylinders at the rate of 5/100 cubic yards of concrete or faction thereof placed per day. 8.4.1.5. Compressive strength determination of concrete test cylinders with one tested at 7 days and three tested at 28 days. The remaining cylinder will serve as a “hold” specimen in the event that additional testing is required or if the 28-day design strength is not met. 8.5. Structural Steel and Coatings 8.5.1. Perform structural steel and coatings observations which will include: 8.5.1.1. Verification of welders certification papers (steel services). 8.5.1.2. Daily visual observation of welding (steel services). 8.5.1.3. Arrange and coordinate radiographic inspection of the welding as per AWWA D100. 8.5.1.4. Daily observations of abrasive blast and prime coat for thickness and quality (paint services). 8.5.1.5. Daily observations of final paint coat (paint services) 8.5.1.6. Holiday (discontinuity) testing of the immersion surfaces of the tank interior (paint services). ADDITIONAL SERVICES OWNER and CONSULTANT agree that the following services are beyond the Scope of Services described in the tasks above. However, CONSULTANT can provide these services, if needed, upon the OWNER’s written request. Any additional amounts paid to the CONSULTANT as a result of any material change to the Scope of the Project shall be agreed upon in writing by both parties before the services are performed. These Additional Services include, but are not limited to, the following: Hydraulic analysis using modeling software Design of additional floors within the tank pedestal Architectural features beyond typical tank aesthetics Offsite pipeline design associated with the proposed elevated tank EXHIBIT “B” COMPENSATION DECEMBER 6, 2012 Budget by Task The following detail outlines the budget for each task in the above Scope of Services. TASKSBUDGET 1) Project Initiation$17,700 2) Preliminary Design$59,000 3) Final Design$64,800 4) Site Development Requirements for Planning Approval$30,600 5) Bid Specifications and Construction Contract Documents$10,400 6) Bidding Phase$12,500 7) Construction Phase Services$87,000 8) Construction Materials Testing and Observation$43,000 Total$325,000 CONSULTANT is not obligated to incur costs beyond the indicated budgets, as may be adjusted, nor is the OWNER obligated to pay CONSULTANT beyond these limits. If CONSULTANT projects, in the course of providing the necessary services, that the Project cost presented in budget detail will be exceeded, whether by change in scope of the project, increased costs or other conditions, the CONSULTANT shall immediately report such fact to the OWNER and, if so instructed by the OWNER, shall suspend all work hereunder. When any budget has been increased, CONSULTANT’s excess costs expended prior to such increase will be allowable to the same extent as if such costs had been incurred after the approved increase. Kimley-Horn and Associates, Inc. Standard Rate Schedule (Hourly Billing Rate) Senior Professional I$185 - $225 Senior Professional II$145 - $190 Professional$80 - $130 Designer$125 - $140 Technical Support $65 - $115 Clerical/Administrative Support$60 - $90 Effective August 2012 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Dean Hartley at 349-8243 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance accepting competitive proposals and awarding a Public Works Contract for the construction of a concrete and masonry fence at the City of Denton Bonnie Brae Substation; providing for the expenditure of funds therefor; and providing an effective date (RFP 5063-awarded to Zagros Construction Company in the amount of $388,849.10). The Public Utilities Board recommends approval (7-0). RFP INFORMATION The Bonnie Brae Substation is an approved Capital Improvements Project that will supply electric power to the west and north central areas of the Denton Municipal Electric service territory (Exhibit 1-Project Location Map). The substation is currently 100% operational with a temporary rented fence in place. Construction of the concrete and masonry fence specified in this Request For Proposal (RFP) is necessary to provide the required perimeter security for the substation. The fence will be constructed with a concrete foundation, concrete masonry unit structural wall, and a Lueders Limestone veneer on the exterior to comply with the development agreement for the Rayzor Ranch area and the fence permit issued by the City of Denton. RFP #5063 was prepared to solicit proposals for the construction of the fence. The total length of fence construction required for the project is 1,022 feet. The rock portion of the Bonnie Brae Substation perimeter fence will be 10 feet in height and will have an appearance similar to the fences shown in the pictures on page two. The Bonnie Brae Substation fence will have the stone cap installed on the top as shown in the first picture. The actual pattern and appearance of the stone will be more similar to the second photo on page two. Agenda Information Sheet December 18, 2012 Page 2 Typical Lueders Limestone Fence The RFP was advertised in accordance with Materials Management procedures. Six responsive proposals were received. The members of the evaluation team consisted of staff from Facilities Management, Electric Engineering, Electric Distribution, and Materials Management. Agenda Information Sheet December 18, 2012 Page 3 RFP INFORMATION (CONTINUED) The proposals were evaluated in accordance with the factors included in the RFP which were: a)Price (FACTOR: 60%). b)Delivery Timeframe (FACTOR: 20%). c)Compliance with specifications, quality, reliability, characteristics to meet stated or implied needs (FACTOR: 20%) The four highest ranked respondents The numbers shown reflect the final offer for the four contractors that were ranked highest. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On December 10, 2012, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. RECOMMENDATION Approve a contract with Zagros Construction Company in the amount of $388,849.10. PRINCIPAL PLACE OF BUSINESS Zagros Construction Company. Addison, TX ESTIMATED SCHEDULE OF PROJECT This project is estimated to be completed within 120 days of issuance of the notice to proceed. FISCAL INFORMATION The project will be funded from Bond fund account# 602099498.1360.3620 in the amount of $155,540 and Bond fund account# 60209948.1360.3530 in the amount of $233,309.10. Requisition#111149 has been entered in the Purchasing software system. Agenda Information Sheet December 18, 2012 Page 4 EXHIBITS Exhibit 1: Project Location Map Exhibit 2: Evaluation/Ranking sheet Exhibit 3: Public Utilities Board Draft Minutes Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-RFP 5063 Exhibit 3 DRAFT MINUTES 1 PUBLIC UTILITIES BOARD 2 3 December 10, 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, December 10, 2012 at 5:00 p.m. in the City Hall Conference Room, City of Denton 8 City Hall, 215 E. McKinney Street, Denton, Texas. 9 10 Present: Chairman Dick Smith, Vice Chair Billy Cheek, Randy Robinson, Barbara 11 Russell, Leonard Herring, Phil Gallivan and Lilia Bynum 12 13 Ex Officio Members: Howard Martin, ACM Utilities; George Campbell, CM 14 OPEN MEETING: 15 16 CONSENT AGENDA: 17 18 19 7.Consider recommending approval to award a contract for construction of the Bonnie Brae 20 Substation concrete and masonry fence in accordance with the specification for RFP #5063 21 to Zagros Construction Company, whose business address is 15058 Beltway Dr. suite 119, 22 Addison TX 75001, in the total estimated expenditure amount of $388,849.10. 23 A motion to approve item 7 was made by Board Member Russell with a second by Board 24 Member Cheek. The vote was 7-0. 25 26 27 Adjournment 6:12pm ORDINANCE NO. _________ AN ORDINANCE ACCEPTING COMPETITIVE PROPOSALS AND AWARDING A PUBLIC WORKS CONTRACT FOR THE CONSTRUCTION OF A CONCRETE AND MASONRY FENCE AT THE CITY OF DENTON BONNIE BRAE SUBSTATION; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (RFP 5063-AWARDED TO ZAGROS CONSTRUCTION COMPANY IN THE AMOUNT OF $388,849.10). WHEREAS, the City has solicited, received and tabulated competitive bids for the construction of public works or improvements in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and recommended that the herein described bids are the lowest responsible bids for the construction of the public works or improvements described in the bid invitation, bid proposals and plans and specifications therein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following competitive proposals for the construction of public works or improvements, as described in the "Request for Proposals" or plans and specifications on file in the Office of the City's Purchasing Agent filed according to the bid number assigned hereto, are hereby accepted and approved as being the lowest responsible bids: RFP NUMBER CONTRACTOR AMOUNT 5063 Zagros Construction Company $388,849.10 SECTION 2. The acceptance and approval of the above competitive proposals shall not constitute a contract between the City and the person submitting the proposal for construction of such public works or improvements herein accepted and approved, until such person shall comply with all requirements specified in the Notice to Bidders including the timely execution of a written contract and furnishing of performance and payment bonds, and insurance certificate after notification of the award of the bid. SECTION 3. The City Manager is hereby authorized to execute all necessary written contracts for the performance of the construction of the public works or improvements in accordance with the bids accepted and approved herein, provided that such contracts are made in accordance with the Notice to Bidders and Request for Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein. 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 RFP 5063 to the City Manager of the City of Denton, Texas, or his designee. SECTION 5. Upon acceptance and approval of the above competitive bids and the execution of contracts for the public works and improvements as authorized herein, the City Council hereby authorizes the expenditure of funds in the manner and in the amount as specified in such approved bids and authorized contracts executed pursuant thereto. 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-RFP 5063 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 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 providing for, authorizing, and approving the expenditure of funds for the purchase of protective relay, control, monitoring, metering, software, integration, accessories and devices manufactured by Schweitzer Engineering Laboratories (SEL), which are available from only one source, KD Johnson, Inc., and in accordance with Chapter 252.022 of the Texas Local Government Code, are exempt from the requirements of competitive bidding; and providing an effective date (File 5024-Purchase of Protective Relay Equipment for Municipal Electric in an amount not to exceed $2,510,000). The Public Utilities Board recommends approval (7-0). FILE INFORMATION Denton Municipal Electric (DME) has substation projects approved in its five year Capital Improvement Plan that will require the purchase of protective relay, control, monitoring, metering and integration hardware and accessories. These types of devices are all necessary to make substations functional. The majority of these devices are microprocessor based and highly technical in their design and application. They are used to operate and protect substation components, such as circuit breakers, busses, and transformers; to protect transmission lines in the event of faults, overloads, overvoltage, and other abnormal conditions; to provide metering; and to interconnect devices for communication, access, interaction and retrieval of information. Before designs can be prepared for substation relay and control systems, specific protective, metering, control, monitoring and integration equipment must be selected. DME has chosen Schweitzer Engineering Laboratories, Inc. (SEL) as its standard for these types of hardware. There are several reasons for this. SEL has a larger line of devices than any other manufacturer. The SEL devices offer the greatest selection of features and the best capability for integration. Integration is the term used to refer to the ability for devices to communicate with each other and with other systems such as the Supervisory Control and Data Acquisition (SCADA) system. The warranty period for SEL devices is ten years. Customer support is superior. No other manufacturer offers the on-call application assistance and technical support that SEL offers. DME currently has over 400 SEL devices in service in existing substations and the majority are protective relays. Agenda Information Sheet December 18, 2012 Page 2 FILE INFORMATION(CONTINUED) Schweitzer Engineering Laboratories sells products direct through authorized sales representatives. KD Johnson is the sole representative authorized to sell products to the City of Denton per Exhibit 2. 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. Staff is in the process of finalizing the contract with Schweitzer Engineering Laboratories, Inc. for the line item pricing. We anticipate contract completion after Council approval. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On December 10, 2012, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. RECOMMENDATION Award a three (3) year contract for of the purchase of protective relay equipment to Schweitzer Engineering Laboratories, Inc. to Schweitzer Engineering Laboratories, Inc. c/o KD Johnson, Inc. in an amount not to exceed $2,510,000. PRINCIPAL PLACE OF BUSINESS Schweitzer Engineering Laboratories, Inc. c/o KD Johnson, Inc. Leonard, TX ESTIMATED SCHEDULE OF PROJECT Delivery time for all SEL devices is approximately 20 days. Orders will be placed based upon project schedule requirements. FISCAL INFORMATION The costs for material purchased under the proposed agreement will be funded out of amounts budgeted for specific projects. The work proposed will be in the transmission category. These costs for transmission projects will ultimately be recovered through the Public Utility Commission Transmission Cost of Service Program (TCOS). Agenda Information Sheet December 18, 2012 Page 3 EXHIBITS Exhibit 1: Price List from Schweitzer Engineering Laboratories, Inc. 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 5024 Exhibit 2 December 12, 2012 Chuck Sears City of Denton 1659 Spencer Rd Denton, TX 76205 Dear Mr. Sears: This letter is to confirm that KD Johnson Inc., based in Leonard, Texas, is the sole authorized sales representative for Schweitzer Engineering Labor products and services to be purchased in the State of Texas. A inquiries or purchase orders for SEL products and services shoul Denton to KD Johnson, Inc. at the address listed below: Schweitzer Engineering Laboratories, Inc. C/O KD Johnson, Inc. PO Box 1208 Leonard, TX 75452 Ph: (903) 587-3373 Fax: (903) 587-2509 info@kdjinc.com If you have any questions regarding this, please do not hesitate reached at Chris_Matthews@selinc.com or (509) 334-5744. Regards, Chris Matthews Regional Business Manager Schweitzer Engineering Laboratories, Inc. 29250 Old Fredericksburg Rd, Suite 104 Fair Oaks Ranch, TX 78015 cc: Laura Cheek, City of Denton, Karen Smith, City of Denton, Tom B Johnson Inc., and Jeff Steib, KD Johnson Inc. Exhibit 3 DRAFT MINUTES 1 PUBLIC UTILITIES BOARD 2 3 December 10, 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, December 10, 2012 at 5:00 p.m. in the City Hall Conference Room, City of Denton 8 City Hall, 215 E. McKinney Street, Denton, Texas. 9 10 Present: Chairman Dick Smith, Vice Chair Billy Cheek, Randy Robinson, Barbara 11 Russell, Leonard Herring, Phil Gallivan and Lilia Bynum 12 13 Ex Officio Members: Howard Martin, ACM Utilities; George Campbell, CM 14 OPEN MEETING: 15 16 ITEMS FOR INDIVIDUAL CONSIDERATION: 17 18 19 5. Consider recommending approval of a contract with Schweitzer Engineering Laboratories 20 (SEL) for the purchase of SEL protective relay, control, monitoring, metering, software, 21 integration, accessories, and devices which are available from only one source. Chapter 22 252.022 of the Texas Local Government Code exempts such purchases front the 23 requirements of competitive procurement (awarded to Schweitzer Engineering Laboratories 24 in an amount not to exceed $2,510,000). 25 26 Item #5 was pulled by Board Member Cheek. Cheek stated that DME has made a commitment to go with this technology and are locked 27 into it 28 . Chuck Sears, DME Division Manager, agreed and have been for about 12 years. This 29 particular vendor is the only one on the market that has any support. Relays are the brains of the 30 substations; they provide the control and protection. When they first came out in the mid to late 31 32 our power provider at the time bought some and also bought some competitors at the same time. 33 no support, if you had a problem you 34 had to read the book and experiment until you worked it out. An example of their warranty, 35 there was a major fault in the Spencer switch yard several years ago. There was high voltage 36 into the building there was arcs all over the panels and burned holes in the sides. Sears sent back 37 the piece that was burned and asked if they could pull the boards and retrieve the information 38 r it . Cheek asked what the alternates are going forward, 39 so they replaced it, which is their policy we have been with them 12 years.What are the price protection and quality alternatives 40 . 41 Sears answered that GE is the only one that comes fairly close, they are not in the same price 42 range. The price with SEL has been consistent 43 than one to two percent in that entire period. We actually received a decrease last time a price Cheek stated SEL is trying to make sure DME stays with them. 44 was asked. Sears agreed. 45 They are out best alternative. 46 Draft Minutes of the Public Utilities Board Meeting December 10, 2012 Page 2 of 2 A motion to approve item 5 was made by Board Member Cheek with a second by Board 1 Member Bynum. The vote was 7-0. 2 3 4 Adjournment 6:12pm ORDINANCE NO. ____________ AN ORDINANCE PROVIDING FOR, AUTHORIZING, AND APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF PROTECTIVE RELAY, CONTROL, MONITORING, METERING, SOFTWARE, INTEGRATION, ACCESSORIES AND DEVICES MANUFACTURED BY SCHWEITZER ENGINEERING LABORATORIES (SEL), WHICH ARE AVAILABLE FROM ONLY ONE SOURCE, KD JOHNSON, INC., AND IN ACCORDANCE WITH CHAPTER 252.022 OF THE TEXAS LOCAL GOVERNMENT CODE, ARE EXEMPT FROM THE REQUIREMENTS OF COMPETITIVE BIDDING; AND PROVIDING AN EFFECTIVE DATE (FILE 5024-PURCHASE OF PROTECTIVE RELAY EQUIPMENT FOR MUNICIPAL ELECTRIC IN AN AMOUNT NOT TO EXCEED $2,510,000). 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 chasing Agent, and the license terms attached are hereby approved: FILE NUMBER VENDOR AMOUNT 5024 Schweitzer Engineering Laboratories $2,510,000 c/o KD Johnson, Inc. 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 5024 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 5024 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 Questions concerning this acquisition may be directed DEPARTMENT: Human Resources to Scott Payne at 349-7836 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance accepting competitive proposals and awarding an initial one (1) year contract with the option to extend for four (4) additional one (1) year periods for Individual and Aggregate Stop Loss Insurance for the elf-Funded Health Benefits Program; providing for the expenditure of funds therefor; and providing an effective date (RFP 5084Individual and Aggregate Stop Loss Insurance for the City of Denton awarded to Sun Life Financial, Inc. in the annual estimated amount of $975,000 for a five year estimated expenditure of $4,875,001). RFP INFORMATION The City of Denton requested competitive proposals for Individual and Aggregate Stop Loss Insurance for the Cityself-funded health plan. Stop loss insurance helps to protect the City from catastrophic health claims by providing a cap on medical care expenses paid out by the City on behalf of the employees, retirees, and dependents that are covered under the health plan. Individual stop loss (ISL) insurance provides the cap on an individual member basis (employee, retiree, dependent) at a pre-determined amount. When the City first procured ISL coverage in 2008, the threshold was set at $150,000 per member. However, over the last 5 years, as medical inflation has continued to hover around 10%, and as our overall claims experience has dictated, the City has had to increase the individual threshold to $185,000. Therefore, after an individual begins reimbursing the City for those expenses. member per month (PMPM). Aggregate stop loss (ASL) provides a cap for the health plan in totality. If the total health care costs for all members exceed the expected plan costs (as calculated by the stop loss insurance company) by 25%, then the stop loss insurance company reimburses the City for those costs, up to a maximum of $1,000,000 in a calendar year. MPM. The City has had stop loss insurance coverage through ING since the health plan became self- funded in January of 2008. However, the 2012 calendar year was the last of the renewals available to us under the contract. Because of this, the City sent Request for Proposal (RFP) #5084 out to the market. In response, the City received four (4) proposals from the following companies: Agenda Information Sheet December 18, 2012 Page 2 RFP INFORMATION, CONTINUED ING (incumbent) proposed a rate of $78.03 PMPM for the ISL and $2.00 PMPM for the ASL. This represented a 29.04 % increase over our current rates. SA Benefit Services, LLC. proposed a rate of $73.80 PMPM for the ISL and $1.95 PMPM for the ASL. This represents a 22.14% increase over our current rates. Sun Life Financial, Inc. proposed a rate of $66.02 PMPM for the ISL and $2.20 PMPM for the ASL. This represents a 10% increase over our current rates. United Healthcare (UHC) proposed a rate of $81.48 PMPM for the ISL and $4.77 PMPM for the ASL. This represents a 39.07% increase over our current rates. A detailed analysis of the four proposals can be found in Exhibit 1. Please note that the above rates are quoted based on an $185,000 ISL level, which is consistent with our current ISL level. All four companies provided rates at a $200,000 ISL as detailed in Exhibit 1. The four proposals were evaluated using the following criteria: 60% - Cost of services, lasers, and multi-year rate guarantee 15% - Ability to comply with the Scope of Services 15% - Customer service, professional competence, and references 10% - I Based on our evaluation of the proposals, both staff, and our benefits consultant, McGriff, Seibels, & Williams, are recommending purchasing stop loss insurance from Sun Life Financial, Inc. (Sun Life). The proposed rates by Sun Life represent the lowest overall total cost. Additionally, individual plan member who, because of their health history and/or diagnosis, the stop loss carrier believes has a higher risk factor. Therefore, the lasered members have a higher ISL than the rest of the health plan group. Both ING and Sun Life proposed lasers on the same three members (two at $350,000 ISL and one at $280,000 ISL). Table 1 below details our premium and reimbursement history with ING. The loss ratio represents the relationship between the premiums paid and the reimbursements received. For example, a loss ratio of 1 means that for every dollar we paid ING, they returned a dollar of reimbursement to the City. Agenda Information Sheet December 18, 2012 Page 3 RFP INFORMATION, CONTINUED Year Claims Premium Reimbursement Loss Ratio 2008 6 $560,206 $601,200 1.07 2009 4 $613,965 $459,768 0.75 2010 8 $673,725 $1,217,485 1.81 2011 5 $698,732 $864,445 1.24 2012* 6 $885,832 $680,785* 0.77* TOTAL 5.8 avg $3,432,460 $3,823,683 1.11 *Year to Date RECOMMENDATION Staff recommends awarding a one-year initial contract to Sun Life Financial, Inc., for Individual and Aggregate Stop Loss insurance, with options for four additional one-year renewals. Sun Life has approximately $777 million in stop loss business with 4.4 million covered lives in the United States. The recommendation is to stay at the $185,000 ISL level. The savings between the rates for the $185,000 ISL and $200,000 ISL is $73,889. However, in order to realize that premium savings, the City must absorb an additional $15,000 per member in potential health claim costs. Since the City has been averaging 5.8 stop loss claims each year, we could potentially spend an additional $87,000 in health care costs by making that change. PRINCIPAL PLACE OF BUSINESS Sun Life Financial, Inc. is headquartered in Wellesley Hills, Massachusetts account will be managed out of the Dallas, Texas office. ESTIMATED SCHEDULE OF PROJECT Stop loss insurance coverage will be effective January 1, 2013. FISCAL INFORMATION Stop loss insurance is funded out of operating account #850500.6712. EXHIBITS Exhibit 1: Evaluation Ranking Sheet Exhibit 2: Stop Loss Proposal Comparison Agenda Information Sheet December 18, 2012 Page 4 Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-RFP 5084 Exhibit 1 Proposal TheCitywillevaluatethesubmissioninaccordancewiththeselectioncriteriaand willranktheFirmsonthebasisofthesubmittals.TheCityreservestherighttoconsider informationobtainedinadditiontothedatasubmittedintheProposal.Theselectioncriterion is listed below: a)Indicators of ability to comply with the Scope of Services (FACTOR: 15%). Indicatorsofprobableperformanceunderthecontracttoinclude:pastcontractor performance, financial resources, relative experience, & reporting capabilities. Anyexceptionsmustbenotedindetailandfailuretodosomaydeemproposalas unresponsive. b)Customer Service, Professional Competence & References (FACTOR: 15%). Indicatorsofprobableabilityofthecontractortomeettheservicelevelneedsatboththe client, and employee level. References shall include current & former clients. c) (FACTOR: 10%) Therespondent'swrittenresponsetotheSolicitation,whichisbothclearandconcise.The responseshalldemonstrateanunderstandingoftheobjectivesandscopefortheservices.The proposedqualitycontrolprogram.Thecreativityandthoroughness asindicatedwithinthewrittenapproach,andmethodology,toprovidingtheservices.Ability tomeettheinsurancerequirementsshallalsobeconsideredinthisevaluationcategory. Availability and dedication to the City requested services shall also be considered. d)Cost of Services, Lasers, and Multi-Year Rate Guarantees, (FACTOR: 60%). Thepriceoftheservicesandinplaceshallbeconsidered.mustpresent theirmostcompetitivecoverageandpricingresponses.Insuranceresponseswillbeevaluated carefullyintermsofcosteffectiveness,coverage,financialsolvency,andcompliancewiththe insurance, risk financing and servicing criteria contained in the specifications. ORDINANCE NO. __________________ AN ORDINANCE ACCEPTING COMPETITIVE PROPOSALS AND AWARDING AN INITIAL ONE (1) YEAR CONTRACT WITH THE OPTION TO EXTEND FOR FOUR (4) ADDITIONAL ONE (1) YEAR PERIODS FOR INDIVIDUAL AND AGGREGATE STOP LOSS INSURANCE FOR THE -FUNDED HEALTH BENEFITS PROGRAM; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (RFP 5084-INDIVIDUAL AND AGGREGATE STOP LOSS INSURANCE FOR CITY OF DENTON AWARDED TO SUN LIFE FINANCIAL, INC. IN THE ANNUAL ESTIMATED AMOUNT OF $975,000 FOR A FIVE YEAR ESTIMATED EXPENDITURE OF $4,875,001). WHEREAS, the City has solicited, received and evaluated competitive sealed proposals for Individual and Aggregate Stop Loss Insurance for the City of Denton accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and reviewed and recommended that the herein described proposals are the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals; 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 items in the following numbered request for proposal for materials, Purchasing Agent, are hereby accepted and approved as being the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals. RFP NUMBER VENDOR AMOUNT 5084 Sun Life Financial, Inc. $4,875,001 SECTION 2. By the acceptance and approval of the above numbered items of the submitted proposals, the City accepts the offer of the persons submitting the proposals for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Proposal Invitations, Proposals, and related documents. SECTION 3. Should the City and person submitting approved and accepted items and of the submitted proposals wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the proposals, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Proposal and related documents herein approved and accepted. 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 RFP 5084 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 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-RFP 5084 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 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 accepting competitive proposals and awarding a contract for the purchase of 69kV and 138kV Aluminum Pipe Bus for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (RFP 5072-Electric Utility 69kV and 138kV Aluminum Pipe Bus awarded to Techline, Inc. in the not to exceed amount of $380,000). The Public Utilities Board recommends approval (7-0). RFP INFORMATION Denton Municipal Electric (DME) has substation projects approved in its Five Year Capital Improvement Plan that will require installation of aluminum pipe bus. Aluminum pipe bus acts as a transmission conductor and connects equipment throughout the substation. DME uses 6061- an initial purchas installed after City Council approval. Additional pipe bus will be purchased as required for project schedules. The minimum order amounts proposed are to avoid additional charges for shipping. Due to the quantity of pipe bus that will be required, minimum order amounts will not be a problem provided that the award is to a single supplier. Request for Proposals were sent to 103 prospective suppliers, including two Denton firms. In addition, specifications were placed on the Purchasing website for prospective suppliers to download. Three Proposals were received. Proposals were evaluated based upon published criteria, including price, delivery and probable performance by the supplier. Information from the proposal evaluations is summarized in Exhibit 1. Proposal provided the highest evaluated score, resulting in the best value for the City. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On December 10, 2012, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. Agenda Information Sheet December 18, 2012 Page 2 RECOMMENDATION Approve a one year contract, with four renewals, with Techline, Inc. in the not to exceed amount $380,000 over the potential contract term. PRINCIPAL PLACE OF BUSINESS Techline, Inc. Fort Worth, TX ESTIMATED SCHEDULE OF PROJECT The initial term of this contract is for one year ending December 18, 2013. The City and Techline, Inc. shall have the option to renew this contract for four (4) additional one year periods. FISCAL INFORMATION The costs for material purchased under the proposed agreement will be funded from project accounts on an as needed basis. The work proposed will be in the transmission category. These costs for transmission projects will ultimately be recovered through the Public Utility Commission Transmission Cost of Service Program (TCOS). EXHIBITS Exhibit 1: Evaluation/Ranking Sheet Exhibit 2: Draft Public Utilities Board Minutes Exhibit 3: Contract Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-RFP 5702 Exhibit 2 DRAFT MINUTES 1 PUBLIC UTILITIES BOARD 2 3 December 10, 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, December 10, 2012 at 5:00 p.m. in the City Hall Conference Room, City of Denton 8 City Hall, 215 E. McKinney Street, Denton, Texas. 9 10 Present: Chairman Dick Smith, Vice Chair Billy Cheek, Randy Robinson, Barbara 11 Russell, Leonard Herring, Phil Gallivan and Lilia Bynum 12 13 Ex Officio Members: Howard Martin, ACM Utilities; George Campbell, CM 14 OPEN MEETING: 15 16 CONSENT AGENDA: 17 18 19 3.Consider recommending approval of a contract with Techline, Inc., for the purchase of 20 aluminum pipe bus (RFP #5072 awarded to Techline, Inc., in an amount not to exceed 21 $380,000). 22 A motion to approve item 3 was made by Board Member Russell with a second by Board 23 Member Cheek. The vote was 7-0. 24 25 26 Adjournment 6:12pm Exhibit 3 ORDINANCE NO. _________ AN ORDINANCE ACCEPTING COMPETITIVE PROPOSALS AND AWARDING A CONTRACT FOR THE PURCHASE OF 69KV AND 138KV ALUMINUM PIPE BUS FOR DENTON MUNICIPAL ELECTRIC; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (RFP 5072-ELECTRIC UTILITY 69KV AND 138KV ALUMINUM PIPE BUS AWARDED TO TECHLINE, INC. IN THE NOT TO EXCEED AMOUNT OF $380,000). WHEREAS, the City has solicited, received and evaluated competitive sealed proposals for purchase of 69kV and 138kV Aluminum Pipe Bus for Denton Municipal Electric in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and reviewed and recommended that the herein described proposals are the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals; 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 items in the following numbered request for proposal for materials, for Purchasing Agent, are hereby accepted and approved as being the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals. RFP NUMBER CONTRACTOR AMOUNT 5072 Techline, Inc. $380,000 SECTION 2. By the acceptance and approval of the above numbered items of the submitted proposals, the City accepts the offer of the persons submitting the proposals for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Proposal Invitations, Proposals, and related documents. SECTION 3. Should the City and person submitting approved and accepted items and of the submitted proposals wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the proposals, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Proposal and related documents herein approved and accepted. 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 the RFP 5072 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 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-RFP 5072 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 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 accepting competitive proposals and awarding a contract for the purchase of Polymer Station Class Arresters for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (RFP 5073-Supply of Electric Utility Polymer Station Class Arresters awarded to Stuart C. Irby Company in the not to exceed amount of $160,000). The Public Utilities Board recommends approval (7-0). RFP INFORMATION Denton Municipal Electric (DME) has substation projects approved in its Five Year Capital Improvement Plan that will require installation of 69kv and 138kV polymer station class lightning arresters. Arresters are designed to limit the line-to-ground voltage on lines and station equipment in the event of lightning or other transient voltage conditions. Arresters begin conducting as voltages increase in an attempt to keep voltages below levels that could cause damage to equipment or insulators. They are, in essence, the sacrificial items on the system that help avoid damage to much more expensive and harder to replace items. Arresters must be purchased with ratings matched to the voltage of the systems they protect. The minimum order amounts shown are to avoid additional charges for shipping. Due to the number of arresters that will be required, minimum order amounts will not be met in all instances. The 8% additional charge has been added to the total estimated cost. Orders will be placed based upon project schedules. Request for Proposals were sent to 257 prospective suppliers, including two Denton firms. In addition, specifications were placed on the Purchasing website for prospective suppliers to download. Two Proposals were received. Proposals were evaluated based upon published criteria, including price, delivery and probable performance by the supplier. Information from the Proposal evaluations is summarized in Exhibit 1. Confidential negotiations were completed and a Best and Final Offer (BAFO) was requested from both respondents. The BAFO resulted in no additional savings. The Stuart C. Irby Company proposal provided the highest evaluated score, resulting in the best value for the City. Staff is in the process of finalizing the contract with Stuart C. Irby Company. We anticipate contract completion after Council approval. Agenda Information Sheet December 18, 2012 Page 2 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On December 10, 2012, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. RECOMMENDATION Approve a one year contract, with four renewals, with Stuart C. Irby Company in the not to exceed amount $160,000 over the potential contract term. PRINCIPAL PLACE OF BUSINESS Stuart C. Irby Company Fort Worth, TX ESTIMATED SCHEDULE OF PROJECT The initial term of this contract is for one year ending December 18, 2013. The City and Stuart C. Irby Company shall have the option to renew this contract for four (4) additional one year periods. FISCAL INFORMATION The costs for material purchased under the proposed agreement will be funded from project accounts on an as needed basis. The work proposed will be in the transmission category. These costs for transmission projects will ultimately be recovered through the Public Utility Commission Transmission Cost of Service Program (TCOS). EXHIBITS Exhibit 1: Evaluation/Ranking sheet Exhibit 2: Draft Public Utilities Board Minutes Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-RFP 5073 Exhibit 2 DRAFT MINUTES 1 PUBLIC UTILITIES BOARD 2 3 December 10, 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, December 10, 2012 at 5:00 p.m. in the City Hall Conference Room, City of Denton 8 City Hall, 215 E. McKinney Street, Denton, Texas. 9 10 Present: Chairman Dick Smith, Vice Chair Billy Cheek, Randy Robinson, Barbara 11 Russell, Leonard Herring, Phil Gallivan and Lilia Bynum 12 13 Ex Officio Members: Howard Martin, ACM Utilities; George Campbell, CM 14 OPEN MEETING: 15 16 CONSENT AGENDA: 17 18 19 4.Consider recommending approval of a contract with Stuart C. Irby Company for the purchase 20 of polymer station class arresters (RFP #5073 awarded to Stuart C. Irby Company in an 21 amount not to exceed $160,000). 22 A motion to approve item 4 was made by Board Member Russell with a second by Board 23 Member Cheek. The vote was 7-0. 24 25 26 Adjournment 6:12pm ORDINANCE NO. _________ AN ORDINANCE ACCEPTING COMPETITIVE PROPOSALS AND AWARDING A CONTRACT FOR THE PURCHASE OF POLYMER STATION CLASS ARRESTERS FOR DENTON MUNICIPAL ELECTRIC; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (RFP 5073-SUPPLY OF ELECTRIC UTILITY POLYMER STATION CLASS ARRESTERS AWARDED TO STUART C. IRBY COMPANY IN THE NOT TO EXCEED AMOUNT OF $160,000). WHEREAS, the City has solicited, received and evaluated competitive sealed proposals for the supply of Polymer Station Class Arresters for Denton Municipal Electric in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and reviewed and recommended that the herein described proposals are the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals; 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 items in the following numbered request for proposal for materials, for Purchasing Agent, are hereby accepted and approved as being the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals. RFP NUMBER CONTRACTOR AMOUNT 5073 Stuart C. Irby Company $160,000 SECTION 2. By the acceptance and approval of the above numbered items of the submitted proposals, the City accepts the offer of the persons submitting the proposals for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Proposal Invitations, Proposals, and related documents. SECTION 3. Should the City and person submitting approved and accepted items and of the submitted proposals wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the proposals, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Proposal and related documents herein approved and accepted. 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 the RFP 5073 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 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-RFP 5073 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 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 accepting competitive proposals and awarding a contract for the purchase of galvanized steel transmission poles for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (RFP 5079-Single Purchase of Electric Utility Galvanized Steel Transmission Poles awarded to Falcon Steel Company in the not to exceed amount of $751,033). The Public Utilities Board recommends approval (7-0). RFP INFORMATION Denton Municipal Electric (DME) has transmission line and substation projects approved in its Five Year Capital Improvement Plan. For substations, specific transmission pole placements will be required to route transmission lines into the substations. The site south of McKinney and the site southwest of the intersection of Loop 288 and Audra are the first locations planned for construction. Fourteen poles are required for terminating the transmission lines for these two stations. Exhibit 1 contains site plans for the two stations that show the locations for the transmission poles required for initial construction. Additional poles will be required for the Audra site when the Woodrow to Kings Row transmission line is constructed. Those poles will be purchased and installed with that project. Request for Proposals were sent to 79 prospective suppliers, including one Denton firm. In addition, specifications were placed on the Purchasing website for prospective suppliers to download. Seven Proposals were received. Proposals were evaluated based upon published criteria, including price, delivery and probable performance by the supplier. Information from the Proposal evaluations is summarized in Exhibit 2. The Falcon Steel Company Proposal provided the highest evaluated score, resulting in the best value for the City. Staff is in the process of finalizing the contract with Falcon Steel Company. We anticipate contract completion after Council approval. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On December 10, 2012, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. Agenda Information Sheet December 18, 2012 Page 2 RECOMMENDATION Approve a single purchase of galvanized steel transmission poles from Falcon Steel Company in the not to exceed amount of $751,033. PRINCIPAL PLACE OF BUSINESS Falcon Steel Company Fort Worth, TX ESTIMATED SCHEDULE OF PROJECT Orders will be placed immediately after award for delivery in mid May 2013. FISCAL INFORMATION This purchase will be funded from Capital Improvement Project (CIP) account 603103499.1350.3530 in the amount of $228,650 and CIP account 603112499.1350.3530 in the amount of $522,383. Requisition# 111220 has been entered in the Purchasing software system. These costs for transmission projects will ultimately be recovered through the Public Utility Commission Transmission Cost of Service Program (TCOS). EXHIBITS Exhibit 1: Site Plans Exhibit 2: Evaluation/Ranking sheet Exhibit 3: Draft Public Utilities Board Minutes Respectfully submitted: Antonio Puente, Jr., 349-7283 Assistant Director of Finance 1-AIS-File 5079 Exhibit 2 Evaluation of RFP #5079 - Purchase of 14 Galvanized Steel Poles Summary of Proposal Data Anchor BoltStructureDelivery Supplier Structure CostTotal Cost CostWeight (lbs.)(Weeks ARO) Techline - CHM $226,014386,336$540,367$766,38118 Techline - Meyer $158,613419,781$782,223$940,83626 Falcon $135,842342,289$615,191$751,03318 Irby - Pelco $228,051329,905$616,160$844,21120 Sabre $229,580336,764$628,604$858,18434 Fort Worth Tower $151,700385,354$678,089$829,78924 Distran $137,348373,537$784,439$921,78725 Proposal Evaluation Performance Total Evaluation Delivery RatingCost Rating Supplier RatingTotal Points Cost(20 Points)(60 Points) (20 Points) Techline - CHM $766,38114.0020.0058.8092.80 Techline - Meyer $940,83618.0013.8547.9079.74 Falcon $751,03320.0020.0060.00100.00 Irby - Pelco $844,21114.0018.0053.3885.38 Sabre $858,18418.0010.5952.5181.10 Fort Worth Tower $829,78919.0015.0054.3188.31 Distran $921,78718.0014.4048.8981.29 Exhibit 3 DRAFT MINUTES 1 PUBLIC UTILITIES BOARD 2 3 December 10, 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, December 10, 2012 at 5:00 p.m. in the City Hall Conference Room, City of Denton 8 City Hall, 215 E. McKinney Street, Denton, Texas. 9 10 Present: Chairman Dick Smith, Vice Chair Billy Cheek, Randy Robinson, Barbara 11 Russell, Leonard Herring, Phil Gallivan and Lilia Bynum 12 13 Ex Officio Members: Howard Martin, ACM Utilities; George Campbell, CM 14 OPEN MEETING: 15 16 CONSENT AGENDA: 17 18 19 6.Consider recommending approval of an order to Falcon Steel Company for a one-time 20 purchase of galvanized steel poles for construction of 138kV transmission lines (RFP #5079 21 awarded to Falcon Steel Company in an amount not to exceed $751,033). 22 A motion to approve item 6 was made by Board Member Russell with a second by Board 23 Member Cheek. The vote was 7-0. 24 25 26 Adjournment 6:12pm ORDINANCE NO. _________ AN ORDINANCE ACCEPTING COMPETITIVE PROPOSALS AND AWARDING A CONTRACT FOR THE PURCHASE OF GALVANIZED STEEL TRANSMISSION POLES FOR DENTON MUNICIPAL ELECTRIC; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (RFP 5079-SINGLE PURCHASE OF ELECTRIC UTILITY GALVANIZED STEEL TRANSMISSION POLES AWARDED TO FALCON STEEL COMPANY IN THE NOT TO EXCEED AMOUNT OF $751,033). WHEREAS, the City has solicited, received and evaluated competitive sealed proposals for the supply of galvanized steel transmission poles for Denton Municipal Electric in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and reviewed and recommended that the herein described proposals are the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals; 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 items in the following numbered request for proposal for materials, for Purchasing Agent, are hereby accepted and approved as being the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals. RFP NUMBER CONTRACTOR AMOUNT 5079 Falcon Steel Company $751,033 SECTION 2. By the acceptance and approval of the above numbered items of the submitted proposals, the City accepts the offer of the persons submitting the proposals for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Proposal Invitations, Proposals, and related documents. SECTION 3. Should the City and person submitting approved and accepted items and of the submitted proposals wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the proposals, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Proposal and related documents herein approved and accepted. 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 the RFP 5079 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 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-RFP 5079 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 For questions, please contact Scott Payne DEPARTMENT: Finance at 349-7836 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, amending the Fiscal Year 2011-12 Budget and Annual Program of Services of the City of Denton to allow for an adjustment to the Health Insurance Fund of nine hundred thousand dollars ($900,000) from the previously amended budget amount of nineteen million, nine hundred fifty three thousand, one hundred thirteen dollars ($19,953,113) to twenty million, eight hundred fifty three thousand, one hundred thirteen dollars ($20,853,113) to provide for additional expenditure authority related to health care claims and fees; providing for retroactive approval, confirmation and ratification thereof; declaring a municipal purpose; providing a severability clause; providing an open meetings clause; and providing an effective date. BACKGROUND On August 21, 2012, a budget amendment was approved by Council to allow an adjustment to the Health Insurance Fund of $1,428,251 in order to cover the anticipated deficit between the projected expenses and the budgeted expenses. Unfortunately, health claims continued to increase during August and September so the preliminary final expense numbers in the Health Insurance Fund still exceed the budgeted amount, including the initial budget amendment. While preliminary final expense numbers as of December 13, 2012 reflect expenditures that exceed the budgeted amount by $794,000, staff is recommending a second budget amendment of $900,000 to allow flexibility in the event additional unforeseen expenses are necessary. Furthermore, the purpose of this agenda item is to provide retroactive expenditure authority to cover the additional expenses for this fund. As was discussed in the Council backup for the August 21, 2012, agenda item, the most significant expenditures in the Health Insurance Fund are related to providing health employees, retirees, and dependents. For FY 2011-12, the City paid $3.9 million more in health claims expenses than were paid in FY 10/11 (see Exhibit 1). Claims paid during the month of August 2012 alone were $989,000 more than the claims paid in August of 2011. Health benefit costs are higher than projected due to a variety of reasons. As Council is aware, the City opened the Employee Health Center (clinic) in December of 2011. The clinic provides primary medical care at no cost to those employees, retirees, and dependents that are covered September 29, 2012, approximately 4,220 patient appointments have been provided at the clinic and 813 employees have completed a Health Risk Assessment (HRA). The HRA includes a comprehensive blood draw and 40 minute follow-up appointment with the clinic. Agenda Information Sheet December 18, 2012 Page 2 As a result of the clinic making health care more accessible, Program (HIP) incentivizing employees to get the HRA done, many employees are discovering health conditions (high blood pressure, high cholesterol, heart disease, diabetes, cancer, thyroid issues, etc.) that had been previously undiagnosed. While this translates into more health plan members seeking medical and pharmaceutical treatment, this short-term increase in cost will be much less than if these conditions continued to go undiagnosed and untreated and resulted in a catastrophic medical event and/or led to chronic health problems. for this plan year, January 1, 2012 through September 30, 2012. During this time the City has had essentially the same number of catastrophic claims (claim costs over $175,000) with 6, as compared to 7 during the same period in 2011. However, the City has seen an increase in the number of claims between $25,000 and $174,999. From January 1 through September 30, 2011, the City had 51 plan members with claims cost in this range, totaling $2,447,243. For this same period in 2012, the City has 72 plan members with claims in this range (totaling $5,290,806) resulting in an increase of $2,843,563. The City also experienced a 10% increase in 2012 in claims under $25,000 as compared to 2011. Additionally the City added a benefit for bariatric surgery beginning January 2012. To date, 29 patients have applied for the program with 24 qualifying for some form of surgical intervention. To date, 15 patients have had a bariatric procedure and approximately $165,000 has been paid by UHC under this benefit. This budget amendment will allow the Health Insurance Fund additional expenditure authority to provide for these costs. While budget authority needs to be increased, the Health Insurance Fund is projected to end the fiscal year with approximately $3.3 million in fund balance in light of the increased expenditures discussed above. PRIOR ACTION/VIEW (COUNCIL, BOARDS, COMMISIONS) On August 7, 2012, the Council Audit/Finance Committee recommended that staff forward to Council a budget amendment of $1,428,251 for consideration. On August 21, 2012, the City Council adopted Ordinance No. 2012-184 amending the Health Insurance Fund by $1,428,251 from $18,524,862 to $19,953,113. FISCAL INFORMATION Staff requests that the Health Insurance Fund expenditure budget be increased by $900,000, from $19,953,113 to $20,853,113. Additionally, staff is currently evaluating employee/retiree rate and plan design changes for the coming year. These changes and their associated financial impact will be provided to the Audit/Finance Committee and the City Council in the near future. Agenda Information Sheet December 18, 2012 Page 3 EXHIBITS 1.Total Health Claims Cost Comparison FY 10/11 Versus FY 11/12 2.Proposed Ordinance for City Council Consideration Respectfully submitted: Bryan Langley Assistant City Manager 9ãwz,z·  š·Œ I;Œ·w /Œz’ /š­· /š’¦©z­š“ aš“·wš·Œ I;Œ·w /Œz’ /š­·­ FY 10/11FY 11/12Difference October$1,038,370$1,306,506$268,136 November$974,202$1,045,182$70,980 December$1,008,939$1,748,302$739,363 January$1,060,428$1,329,095$268,667 February$1,064,995$1,216,732$151,737 March$1,335,763$1,614,786$279,023 April$1,287,784$1,230,161-$57,623 May$990,902$1,516,010$525,108 June$1,277,963$1,488,055$210,092 July$1,031,646$1,289,708$258,062 August$1,051,033$2,040,519$989,486 September$1,209,957$1,384,325$174,368 TOTAL Å r Å r r  Å rr  AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 DEPARTMENT: Utilities ACM: Howard Martin, 349-8232 ______________________________________________________________________________ SUBJECT Consider approval of an ordinance of the City of Denton, Texas approving and authorizing the City Manager, or his Designee, to execute an “Interlocal Cooperation Agreement” by and between the City of Denton, Texas and Denton County, Texas; providing for an effective date. BACKGROUND Denton County met with the City of Denton (City) in early 2011 to coordinate construction activities that would be necessary for Denton County to update the electric facilities for the Denton County Jail Expansion Project, and the Denton County Juvenile Probation and Detention Expansion Project. Upon evaluation of the proposed Denton County construction plans, Denton Municipal Electric (DME) determined that applying the Electric Service Standards adopted in October 2005 by the Denton City Council, that the Denton County work was a betterment to the facilities making up the electric system serving Denton County. The Electric Service Standards process applied to the proposed and requested Denton County work was the same process that is consistently applied to other electric customers in accordance with the Denton City Council adopted Electric Service Standards. DME informed Denton County of the associated betterment costs combined together with all associated DME costs with clearing conflicts with existing DME electric facilities from the jail site and the surrounding areas for the new Denton County construction and expansion activities. Denton County through its duly authorized Commissioners Court has given specific written advance approval for entering into an Interlocal Cooperation Agreement with the City of Denton for and in consideration of the premises and mutual covenants set forth within the Interlocal Cooperation Agreement. Article 5 of the Interlocal Cooperation Agreement stipulates that Denton County agrees to fully pay the City of Denton the sum of $250,000 for its services in accordance with the DME Electric Service Standards currently adopted by the City Council for all services, inclusive of all material and labor required for DME’s construction and furnishing materials in clearing DME facilities from the Denton County project site and providing electric utility facilities beyond the requirement of the DME Electric Service Standards at the Denton County site. Upon approval of the Interlocal Cooperation Agreement, the City of Denton will fully cooperate with Denton County and will take all reasonable steps to facilitate the clearing of conflicting DME electric utilty facilities from the Denton County project site and provide updated and improved electric facilities in accordance with the Interlocal Cooperation Agreement. OPTIONS 1.Approve the Interlocal Cooperation Agreement between the City of Denton and Denton County to update the electric utility facilities for the Denton County Jail Expansion Project, and the Denton County Juvenile Probation and Detention Expansion Project, in Denton, Texas. 2.Reject the Interlocal Cooperation Agreement between the City of Denton and Denton County to update the electric utility facilities for the Denton County Jail Expansion Project, and the Denton County Juvenile Probation and Detention Expansion Project, in Denton, Texas and offer alternate solutions. RECOMMENDATION Staff recommends approval of the Interlocal Cooperation Agreement between the City of Denton and Denton County to update the electric utility facilities for the Denton County Jail Expansion Project, 127 N. Woodrow Lane, Denton Texas and the Denton County Juvenile Probation and Detention Expansion Project, 210 S. Woodrow Lane, Denton, Texas. PRIOR ACTION/REVIEW (Council, Boards, Commissions) Not applicable. FISCAL INFORMATION All of the funding for the Denton County Expansion projects will be by Denton County. Denton County has agreed to pay the City of Denton $250,000 for requested DME work necessary to serve the Denton County Jail Expansion project and the Denton County Juvenile Probation and Detention Expansion Project in Denton. BID INFORMATION Not applicable. EXHIBITS 1.Ordinance. Interlocal Cooperation Agreement between the City of Denton and Denton County to update 2. the electric utility facilities for the Denton County Jail Expansion Project, 127 N. Woodrow Lane, Denton Texas and the Denton County Juvenile Probation and Detention Expansion Project, 210 S. Woodrow Lane, Denton, Texas. Respectfully submitted: Phil Williams General Manager of Electric Utilities Denton Municipal Electric Prepared by: Brent A. Heath, P.E. Engineering Division Manager - Distribution Denton Municipal Electric EXHIBIT1 ORDINANCE NO. 2012- _______ AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE AN “INTERLOCAL COOPERATION AGREEMENT” BY AND BETWEEN THE CITY OF DENTON, TEXAS AND DENTON COUNTY, TEXAS; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, this Interlocal Cooperation Agreement provides for Denton Municipal Electric, a department of the City, to perform services and furnish materials that are necessary in order to update the electric utility facilities for the Denton County Jail Expansion Project and the Denton County Juvenile Probation and Detention Expansion Project, which Projects call for labor and materials that are above and beyond the existing required DME Electric Service Standard; NOW THEREFOR THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council of the City of Denton hereby approves an Interlocal Cooperation Agreement (hereafter the “Agreement”), by and between the City of Denton, Texas and Denton County, Texas for the provision of electric services and materials. The City Manager, or his designee, is hereby authorized to execute this Interlocal Cooperation Agreement on behalf of the City; a copy of which Agreement is attached hereto and incorporated by reference herewith. SECTION 2. 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: _________________________________ 1 EXHIBIT2 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 DEPARTMENT: Electric ACM: Howard Martin, 349-8232 SUBJECT Consider approval of a resolution of the City Council of the City of Denton, Texas relating to the issuance of refunding bonds and commercial paper by the Texas Municipal Power Agency and providing the approval of the City for the issuance thereof subject to certain parameters and conditions; providing for an effective date. BACKGROUND Texas Municipal Power Agency (TMPA) has determined to provide additional commercial paper capacity for new capital investment by refunding a portion of their outstanding Series 2005 Commercial Paper (up to $180 million) with fixed rate debt through the issuance of junior subordinate lien revenue refunding bonds that will mature not later than September 1, 2018, thereby converting a portion of the outstanding TMPA commercial paper from variable rate debt to fixed rate debt. TMPA is also considering amending or replacing the 2005 commercial paper program with a new commercial paper program with a principal capacity of $100 million that will have a final maturity date of no later than September 1, 2018. RECOMMENDATION Staff recommends approval of agreement allowing TMPA to refund a portion of their 2005 Commercial Paper program through fixed rate debt and to amend or replace the remaining 2005 Commercial Paper program. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) Reviewed and recommended for approval by the Public Utilities Board on December 10, 2012. EXHIBITS 1. TMPA Bond and Commercial Paper resolution. Respectfully submitted: ______________________________ Phil Williams General Manager Electric Administration EXHIBIT1 RESOLUTION NO. R2012- ________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS RELATING TO THE ISSUANCE OF REFUNDING BONDS AND COMMERCIAL PAPER BY THE TEXAS MUNICIPAL POWER AGENCY AND PROVIDING THE APPROVAL OF THE CITY FOR THE ISSUANCE THEREOF SUBJECT TO CERTAIN PARAMETERS AND CONDITIONS; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Texas Municipal Power Agency (the “Agency”) has heretofore been created and established as a municipal power agency by the cities of Bryan, Denton, Garland, and Greenville, Texas (the “Member Cities”); and WHEREAS, the Agency has represented to the Member Cities as follows: A) the Agency has issued and has outstanding commercial paper notes styled as the “Texas Municipal Power Agency Commercial Paper Notes, Series 2005” (the “Series 2005 Commercial Paper Notes”) under a commercial paper program (the “2005 CP Program”) for which liquidity is provided through a bank credit facility providing a current principal capacity of $255,000,000 (the “2005 Bank Facility”); B) as of November 1, 2012, the Agency had $213,000,000 of outstanding commercial paper notes under the 2005 CP Program, the proceeds of which were used to fund capital costs of generation and transmission facilities for the Agency (including through the repayment of previously issued commercial paper notes); C) the Board of the Agency (the “Board”) has approved new investment in transmission facilities by the Agency in the amount not to exceed $60,000,000 (the “New Transmission Investment”); D) the Agency will require sufficient capacity in its 2005 CP Program or in a replacement commercial paper program (collectively, the “CP Program”) to fund the New Transmission Investment and to fund other lawful purposes of the Agency; E) the Agency has determined to refund a portion of the outstanding Series 2005 Commercial Paper, the proceeds of which are allocable to expenditures for generation facilities of the Agency, with fixed rate debt through the issuance of junior subordinate lien revenue refunding bonds that will mature not later than September 1, 2018 (the “Fixed Rate Refunding Bonds”), thereby converting a portion of the outstanding Agency commercial paper to fixed rate debt; F) the Agency intends to reduce the capacity of the CP Program to $100,000,000 following the issuance of the Fixed Rate Refunding Bonds to reflect the conversion of a portion of its commercial paper to fixed rate debt and to have capacity sufficient to cover approximately $30,000,000 of existing commercial paper and an additional $70,000,000 for its purposes described in (D) above; G) in accordance with its terms, the 2005 Bank Facility will terminate not later than April 26, 2013 (the “Scheduled Termination Date”); H) the Agency has determined to amend the 2005 CP Program or to replace the 2005 CP Program with a new commercial paper program on or prior to the Scheduled Termination Date, and following such action the principal capacity of the CP Program will be $100,000,000 and the CP Program will have a final maturity date of September 1, 2018; I) in the event that a new commercial paper program is established to replace the 2005 CP Program, the establishment of such new program will be accomplished through the refunding of all then outstanding Series 2005 Commercial Paper Notes with commercial paper notes (“Series 2013 Commercial Paper Notes”) issued under the new program (the “2013 Commercial Paper Program”); and J) the issuance of the Fixed Rate Refunding Bonds and the Series 2013 Commercial Paper Notes (if issued), will replace the 2005 CP Program with fixed rate debt or with other variable rate debt, respectively, and the Agency therefore cannot demonstrate interest rate savings within the meaning of that certain Global Compromise and Settlement Agreement among the Agency and the Member Cities, which has an effective date of December 17, 2009 (the “Global Settlement Agreement”), due to the future uncertainty of the rates at which the refunded commercial paper would have borne interest had it not been refunded, and/or the uncertainty of the future interest rates of the Series 2013 Commercial Paper Notes; and WHEREAS, in accordance with Section 2(B) of Global Settlement Agreement, the Agency and the Member Cities have agreed that (i) the Agency may issue new debt to refinance existing debt, provided such refinancing does not extend the term of the debt beyond September, 1, 2018, (ii) the issuance of any debt other than debt that is part of a Transmission Financing Program (as defined in the Global Settlement Agreement) may be issued by the Agency only if such debt is approved by the governing bodies of each Member City, and (iii) any Agency debt issued to refinance generation-related debt shall be for the purpose of interest rate savings only and is pursued without the use of early or short calls. WHEREAS, the City Council (the “Governing Body”) of the City of Denton, Texas deems it appropriate to approve the issuance by the Agency of the Fixed Rate Refunding Bonds and the establishment of the 2013 Commercial Paper Program (including the issuance of the Series 2013 Commercial Paper Notes) or the modification of the Series 2005 CP Program, in each case to restructure the CP Program to provide $100,000,000 of commercial paper capacity for Agency purposes and in order to accommodate a new bank liquidity agreement for the CP Program; and WHEREAS, the Governing Body deems it appropriate to set forth certain parameters relating to the approval of the matters described above. THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: Section 1. For all purposes of the Global Settlement Agreement, the Governing Body hereby approves the issuance of the Fixed Rate Refunding Bonds, provided that the Fixed Rate Refunding Bonds (i) shall not exceed $180,000,000 in principal amount, (ii) shall mature on one or more dates, but not later than September 1, 2018, (iii) may be made subject to optional or mandatory redemption prior to maturity, (iv) shall bear interest at a true interest cost not to exceed 4%, (v) shall be secured by a pledge of the Agency’s net revenues, which pledge shall be subordinate to the pledge securing the Agency’s first lien revenue bonds, second lien commercial paper notes and junior lien (third lien) revenue bonds, and (vi) the resolution of the Agency authorizing the issuance of the Fixed Rate Refunding Bonds shall contain a covenant of the Agency to use its best efforts to implement the provisions of either Section 2 or 3 hereof. Section 2. If the Board determines it is in the best interest of the Agency to create the 2013 Commercial Paper Program, for all purposes of the Global Settlement Agreement, the Governing Body hereby approves the creation of the 2013 Commercial Paper Program by the Agency to refund and replace commercial paper notes issued and outstanding under the 2005 CP Program, provided that, (i) the 2013 Commercial Paper Program shall be established not later than 90 days after the date of issuance of the Fixed Rate Refunding Bonds, (ii) the principal capacity of the 2013 Commercial Paper Program shall not exceed $100,000,000 (such capacity to be evidenced by the resolution authorizing the issuance of the Series 2013 Commercial Paper Notes and the bank liquidity facility that supports the 2013 Commercial Paper Program), (iii) no commercial paper note issued under the 2013 Commercial Paper Program shall mature after September 1, 2018, and (iv) commercial paper notes issued under the 2013 Commercial Paper Program shall be secured by a pledge of the Agency’s net revenues, may be subject to redemption prior to maturity and may be entitled to the benefit of a Credit Agreement (within the meaning of Section 1371.001(1), Texas Government Code). Section 3. If the Board does not create the 2013 Commercial Paper Program in accordance with Section 2 of this resolution, the Governing Body hereby approves for all purposes of the Global Settlement Agreement the modification of the 2005 CP Program, which shall occur not later than 90 days after the date of issuance of the Fixed Rate Refunding Bonds, to provide that the principal capacity of the 2005 CP Program shall not exceed $100,000,000 (such capacity to be evidenced by the resolution, as amended, authorizing the issuance of the Series 2005 Commercial Paper Notes and the bank liquidity facility that supports the 2005 CP Program). Following such modification the resolution authorizing the issuance of the Series 2005 Commercial Paper Notes shall provide that no commercial paper note issued under the 2005 Commercial Paper Program may mature after September 1, 2018. Section 4. In connection with the approvals provided in Sections 1 through 3, the Governing Body waives compliance with Section 2(B)(5) of the Global Settlement Agreement. Section 5. The definitions and recitals set forth in the preamble to this resolution are hereby incorporated in and made a part of this resolution for all purposes. Section 6. This resolution shall take effect from the date that the last Member City approves a resolution in substantially the same form and content hereof, and the authorizations herein shall be effective for a period of six months following the date of adoption hereof. PASSED AND APPROVED this the ____ day of December, 2012. CITY OF DENTON, TEXAS A Texas Municipal Corporation BY: ________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: __________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: __________________________________ AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 DEPARTMENT: Environmental Services and Sustainability Department ACM: Howard Martin, 349-8232 ______________________________________________________________________________ SUBJECT Consider recommending adoption of an ordinance of the City of Denton, Texas approving a “Memorandum of Understanding – Reverse Litter Campaign” by and between the Tarrant Regional Water District and the City of Denton, Texas to develop a reverse litter campaign; authorizing the City manager or his designee to execute said memorandum of understanding on behalf of the City of Denton; providing for the expenditure of funds therefore; providing an effective date. The Public Utilities board recommends approval (7-0). BACKGROUND The City of Denton currently maintains a Municipal Separate Storm Sewer System (MS4) permit as a function of State Regulations and the Federal Clean Water Act. Historically, the City has done many management practices that have put it well above the minimum compliance level for this permit. Several activities within the City promote the education and involvement of community members about floatable solid waste in local waterways include the annual Stream clean during the fall and the Great American Cleanup (with Keep Denton Beautiful) in the spring. However, Denton has not conducted any large-scale outreach campaigns related to floatable solid waste and there has never been aregional effort to educate the public about these pollutants and their impact to our vital water resources. The City of Denton was approached by the Tarrant Regional Water District to participate in a new Regional “Reverse Litter” Campaign. Currently the Cities of Dallas, Fort Worth, Grand Prairie, and Mansfield are participating in the program, and Arlington is in the process of approving their participation in this program. Despite the difference in population size, the City of Denton is considered a regional leader in water resource and stormwater management and an important upstream neighbor in the campaign. By participating in this program, Denton will be included in several forms of media outreach such as billboards, print, radio and TV commercials as wells Smartphone applications and directed outreach to local schools and organizations. The City of Denton will also receive annual status reports and statistics that can be utilized as part of our regulatory compliance requirements for the City‘s stormwater permit and for future public information campaign planning purposes. OPTIONS City Council may recommend approval of the MOU and related expenditures for the program with TRWD or they may recommend that Denton does not participate at this time. RECOMMENDATION Staff recommends approval of the MOU and related funds to support this campaign during fiscal year 2012 through fiscal year 2014. PRIOR ACTION/REVIEW (Council, Boards, Commissions) December 10, 2012 - The Public Utilities board recommends approval (7-0). FISCAL INFORMATION The overall program cost (all municipalities combined) is approximately $1.2 Million dollars per year for the three year duration of the program. The Cities of Dallas and Fort Worth are providing the largest portion of the support, with the remainder of support divided among participating municipalities. If the proposal is approved, the City of Denton’s participation expenditures will not exceed $25,000 per year. Payment of these services will be funded from the drainage division operating revenue. EXHIBITS 1.Memorandum of Understanding 2.Ordinance 3.Reverse Litter Campaign presentation 4.PUB Minutes Respectfully submitted, Kenneth Banks Director, Environmental Services and Sustainability Prepared by, David Hunter Manager, Watershed Protection and Industrial Pretreatment EXHIBIT1 MEMORANDUM OF UNDERSTANDING REVERSE LITTER CAMPAIGN This Memorandum of Understanding (“MOU”) is entered into this ____ day of _______________, 2012, (the “Effective Date”) by and between the TARRANT REGIONAL WATER DISTRICT, a Water Control and Improvement District, a conservation and reclamation district and political subdivision of the State of Texas, created and functioning under Article 16, Section 59, of the Texas Constitution, pursuant to the general laws of the State of Texas, including particularly Chapters 49, 50 and 51, Texas Water Code, and Chapter 268, Acts of the th 55 Texas Legislature, Regular Session, 1957, as amended (hereafter referred to as “TRWD”) and the City of Denton, Texas, a municipal corporation and home-rule city located in Denton County, Texas(hereafter “Denton”). TRWD and Denton may hereafter be referred to individually as a “Party” and jointly as the “Parties.” WHEREAS, as water suppliers for nearly 1.8 million people in the City of Denton, Fort Worth Metroplex and surrounding communities, the City of Denton, Texas and the Tarrant Regional Water District (TRWD) have a keen interest in protecting and preserving the quality of our waterways; and WHEREAS, during each year hundreds of tons of trash and debris wind up in creeks and rivers that flow into our reservoirs. The same trash that we see accumulated along the Trinity River after a big rainstorm is the same sort of litter that washes into our reservoirs, which reservoirs serve as major sources of drinking water for millions of North Texans; and WHEREAS, TRWD and Denton are each seeking to develop a regional anti-litter campaign to highlight the problem and to inspire action. The goal is to prevent tons of plastic bottles, paper, styrofoam and other trash and debris from flowing into our creeks and reservoirs annually. This campaign is called “Reverse Litter,” and it aims to reverse the litter trail, so that it winds up in trash cans and recycle bins before it pollutes our waterways; and WHEREAS, since everyone in the watershed contributes to the problem, then everyone in the watershed must be a part of the solution. TRWD and Denton are taking the lead and are encouraging other cities across the Metroplex to join the fight against litter and other sources of non-point source pollution; and NOW THEREFORE, for and in consideration of the mutual benefits and obligations set forth herein, the receipt and sufficiency of which are hereby expressly acknowledged, the Parties agree as follows: 1.Public Awareness Campaign. The Parties shall support the “Reverse Litter Campaign” to: a.inform and educate the public regarding issues related to the protection of drinking water sources and/or water conservation; Page 1 of 5 TRWD/CITY MOU PUBLIC AWARENESS CAMPAIGN b.foster community ownership of the protection of drinking water sources and/or water conservation; and c.raise the public’s awareness of the public’s role and impact in protection of drinking water sources and/or water conservation. 2.Contracting. TRWD shall enter into such contracts as are necessary with creative and/or advertising agencies to develop, design and implement the above-described “Reverse Litter Campaign.” 3.Funding. a.Future funding (those funds that are in addition to the initial contribution outlined above) for the Reverse Litter campaign will proceed as outlined below: i.Denton shall pay to TRWD on October 1, 2012, October 1, 2013, and October 1, 2014, payments of $25,000 each, regarding the costs and expenses related to the “Reverse Litter Campaign” undertaken pursuant to this MOU, for a total of $75,000. It is understood that all payments of Denton are subject to the annual appropriation of sufficient funds. ii.TRWD shall pay $300,000 to the “Reverse Litter Campaign” within thirty (30) days after receipt of funds annually by Denton, for a total of $900,000. iii.Denton’s first payment of $25,000 to TRWD referenced in “i.” above shall be made within thirty (30) days following the date of execution of this Memorandum of Understanding. b.An annual accounting of funds shall be provided for each “Reverse Litter Campaign” and shall include, but not be limited to a media buy-reconciliation. c.All payments or expenditures made pursuant to this MOU as described in Paragraph 3.a. above, are made from current funds as required by Chapter 791, Texas Government Code. 4.Term and Termination. a.The Term of this MOU shall be three (3) years from the effective date of this MOU, which effective date shall be the date of the last Party to execute this MOU, and this agreement shall be automatically renewed and extended for successive one-year terms, unless otherwise terminated as provided in Paragraph 4(b). b.This MOU may be terminated by convenience by either Party, in its sole discretion, upon thirty (30) days written notice and payment of any outstanding amounts then due from the terminating Party. Termination of the MOU terminates the “Reverse Litter Campaign” which is incorporated in this MOU. Page 2 of 5 TRWD/CITY MOU PUBLIC AWARENESS CAMPAIGN 5.Performance Measures a.“Reverse Litter Campaign” performance measures shall include, but not be limited to, the following: i.Gross Impressions generated by the media buy. ii.Reach generated by the media buy. iii.Frequency generated by the media buy. iv.Post campaign survey results. b.TRWD shall report performance measures to Denton annually in a written report, st on or before the 1 day of May for each year that this MOU is in existence, with the first such report being due on or before May 1, 2013. 6.Binding Nature of MOU. It is the intent of the Parties that this MOU be a binding engagement between them in principle, with regard to the provisions set forth herein. 7.Notices. All written notices required under this MOU must be hand-delivered or sent by certified mail, return receipt requested, addressed to the proper party at the following address: To TRWD: Tarrant Regional Water District Attn: Jim Oliver, General Manager 800 E. Northside Drive Fort Worth, TX 76102 To City of Denton: City of Denton, Texas Jim Coulter, General Manager, Water Utilities, 215 East McKinney Street Denton, Texas 76201 8.Governing Law. The Parties agree that this MOU shall in all respects be governed by, and construed in accordance with, the laws of the State of Texas, without regard to principles of conflict of laws that would require the application of a law of another jurisdiction; and exclusive venue shall lie in the courts of competent jurisdiction in Tarrant County, Texas. 9.Captions and Headings. Captions and headings used in this MOU are for reference only and shall not be deemed to be a part of this MOU. 10.Counterparts. This MOU may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which taken together shall be deemed to Page 3 of 5 TRWD/CITY MOU PUBLIC AWARENESS CAMPAIGN constitute one and the same instrument, and it shall not be necessary in making proof of this MOU to produce or account for more than one such counterpart. 11.Entire Agreement. This MOU represents the entire understanding of the Parties in relation to the subject matter hereof, and supersedes any and all previous agreements, arrangements or discussions between them (whether written or oral) in respect of the subject matter hereof. 12.Governmental Powers. By execution of this MOU, neither TRWD nor Denton waives their sovereign or governmental powers or immunities, all of which are expressly reserved. 13.Severability. If any provision of this MOU shall be determined to be unenforceable, void or otherwise contrary to law, such condition shall in no manner operate to render any other provision of this MOU unenforceable, void or contrary to law, and this MOU shall continue in force in accordance with the remaining terms and provisions hereof, unless however, such condition invalidates the purpose or the intent of this MOU. 14.Amendment. No amendment, modification, or alteration of the terms of this MOU shall be binding unless it is in writing, dated subsequent to this MOU, and duly executed by the Parties hereto. 15.Third Party Rights. The provisions and conditions of this MOU are solely for the benefit of TRWD and Denton and are not intended to create any rights, contractual or otherwise, for any other person or entity. 16.Conflicts. In the event of any dispute over the meaning or application of any provision of this MOU, this MOU shall be interpreted fairly and reasonably, and neither more strongly for, or against any Party, regardless of which party was the actual drafter of this MOU. 17.No Partnership. Nothing in this MOU shall be deemed to create a partnership, agency, joint venture, or joint enterprise between the Parties. [Signature Page Follows] Page 4 of 5 TRWD/CITY MOU PUBLIC AWARENESS CAMPAIGN EXECUTED as of this ___________ day of ______________________, 2012. TARRANT REGIONAL WATER DISTRICT, A Water Control and Improvement District By: _______________________________ President, Board of Directors ATTEST: _________________________ Secretary, Board of Directors CITY OF DENTON, TEXAS A Texas Municipal Corporation By: _________________________________ George C. Campbell, City Manager ATTEST: JENNIFER WALTERS, CITY SECRETARY By: ________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: ________________________________ Page 5 of 5 TRWD/CITY MOU PUBLIC AWARENESS CAMPAIGN EXHIBIT2 ORDINANCE NO. 2012-_______ AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING A “MEMORANDUM OF UNDERSTANDING – REVERSE LITTER CAMPAIGN” BY AND BETWEEN THE TARRANT REGIONAL WATER DISTRICT AND THE CITY OF DENTON, TEXAS TO DEVELOP A REVERSE LITTER CAMPAIGN; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE SAID MEMORANDUM OF UNDERSTANDING ON BEHALF OF THE CITY OF DENTON; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; PROVIDING AN EFFECTIVE DATE. WHEREAS, the “Memorandum of Understanding – Reverse Litter Campaign” (“MOU”) by and between the City of Denton, Texas and Tarrant Regional Water District (“TRWD”), a Water Control and Improvement District, a conservation and reclamation district, and political subdivision of the State of Texas, referenced herein; said MOU was presented to, reviewed by and considered by the Public Utilities Board (“PUB”) at its regularly called meeting of December 10, 2012; and the PUB recommended approval by the City Council of the MOU by a vote of ____ to _____; and WHEREAS, the City and TRWD have a great interest in protecting and preserving our waterways, and are collectively seeking to develop a regional anti-litter campaign to highlight the litter problem and inspire action; the goal of which program is to reverse the litter trail so that litter will end up in trash cans and recycle bins, rather than in our waterways; and WHEREAS, the City and TRWD will address in this campaign, public education and outreach, as well as public involvement and participation; and WHEREAS, the City Council finds that the MOU will benefit the City of Denton, Texas and is in the public interest. WHEREFORE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The recitations set forth in the Preamble of this ordinance are included within the provisions of this ordinance. SECTION 2. The City Council hereby approves the “Memorandum of Understanding – Reverse Litter Campaign” entered into by and between the City of Denton, Texas and Tarrant Regional Water District that provides for a reverse litter campaign, substantially in accordance with the Memorandum of Understanding – Reverse Litter Campaign” which is attached hereto and incorporated herein by reference (the “MOU”). SECTION 3. The City Manager, or his designee, is authorized to execute the MOU on behalf of the City. The City Manager, or his designee, is authorized to carry out the City’s rights and duties under the MOU. SECTION 4. The City Manager is hereby authorized to expend funds as required by the MOU. 1 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 EXHIBIT4 DRAFT MINUTES 1 PUBLIC UTILITIES BOARD 2 3December 10, 2012 4 5After determining that a quorum of the Public Utilities Board of the City of Denton, Texas is 6present, the Chair of the Public Utilities Board will thereafter convene into an open meeting on 7Monday, December 10, 2012 at 5:00 p.m. in the City Hall Conference Room, City of Denton 8City Hall, 215 E. McKinney Street, Denton, Texas. 9 10Present:Chairman Dick Smith, Vice Chair Billy Cheek, Randy Robinson, Barbara 11Russell, Leonard Herring, Phil Gallivan and Lilia Bynum 12 13Ex Officio Members: Howard Martin, ACM Utilities; George Campbell, CM 14 OPEN MEETING: 15 16 1715.Consider recommending adoption of an ordinance of the City of Denton, Texas approving a 18“Memorandum of Understanding – Reverse Litter Campaign” by and between the Tarrant 19Regional Water District and the City of Denton, Texas to develop a reverse litter campaign; 20authorizing the City manager or his designee to execute said memorandum of understanding 21on behalf of the City of Denton; providing for the expenditure of funds therefore; providing 22an effective date. 23 A motion to approve item 15 was made by Board Member Russell with a second by Board 24 Member Cheek. The vote was 7-0. 25 26 27Adjournment 6:12pm AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 DEPARTMENT: Utilities ACM: Howard Martin, 349-8232 ______________________________________________________________________________ SUBJECT Consider approval of a resolution of the City Council of the City of Denton, Texas authorizing the approval of an “agreement for construction, maintenance and operation of safety lighting systems within municipalities (University of North Texas pedestrian bridge agreement)” with the Texas Department of Transportation; providing for an effective date. BACKGROUND The IH35E pedestrian bridge at the University of North Texas (UNT) between North Texas Boulevard and Bonnie Brae Street was constructed by the Texas Department of Transportation (TxDOT) through a partnership between Denton County and UNT. Denton County provided engineering services and approximately $1.7 million dollars for construction. UNT provided right-of-way (ROW) and approximately $1.0 million dollars for construction. TxDOT bid the project on December 1, 2011 with a low bid in the amount of $2,571,349.00 by Massana Construction, Inc. Construction began in February 2012, and the project was completed on October 16, 2012. TxDOT intends to “provide a more adequate facility to the traveling public” through “the construction, maintenance, and operation of a certain IH35E University of North Texas pedestrian bridge safety lighting systems” within the corporate limits of the City of Denton. TxDOT will prepare or provide for the preparation of the plans and specifications, handle the bidding phase, and provide for the construction and inspection of the work. TxDOT will submit plans and specifications to the City for approval. All costs of the lighting system are the responsibility of the State. The agreement attached to this item (Exhibit 2) serves as the State’s permission from the City to construct, operate and maintain the lighting system. OPTIONS 1.Approve the Agreement for Construction, Maintenance and Operation of Safety Lighting Systems within Municipalities (State Maintains and Contracts for Power) (University of north Texas Pedestrian Bridge Agreement). 2.Reject the Agreement for Construction, Maintenance and Operation of Safety Lighting Systems within Municipalities (State Maintains and Contracts for Power) (University of north Texas Pedestrian Bridge Agreement). RECOMMENDATION Staff recommends approval of the Agreement for Construction, Maintenance and Operation of Safety Lighting Systems within Municipalities (State Maintains and Contracts for Power) (University of north Texas Pedestrian Bridge Agreement) between the City of Denton and the Texas Department of Transportation. PRIOR ACTION/REVIEW (Council, Boards, Commissions) Not applicable. FISCAL INFORMATION All of the funding for the project will be by the Texas Department of Transportation. BID INFORMATION Not applicable. EXHIBITS 1.Resolution. 2.Agreement for Construction, Maintenance and Operation of Safety Lighting Systems within Municipalities (State Maintains and Contracts for Power) (University of north Texas Pedestrian Bridge Agreement). Respectfully submitted, Frank G. Payne, P.E. City Engineer EXHIBIT1 RESOLUTION NO. R2012- ______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS AUTHORIZING THE APPROVAL OF AN “AGREEMENT FOR CONSTRUCTION, MAINTENANCE AND OPERATION OF SAFETY LIGHTING SYSTEMS WITHIN MUNICIPALITIES (UNIVERSITY OF NORTH TEXAS PEDESTRIAN BRIDGE AGREEMENT)” WITH THE TEXAS DEPARTMENT OF TRANSPORTATION; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, in order to provide a more adequate facility to the traveling public, the construction, maintenance and operation of certain Interstate Highway 35E University of North Texas pedestrian bridge safety lighting systems (hereafter the “Systems”) is required within the City of Denton, Texas; said safety lighting system is to be built in sections as financed and designated by the Texas Transportation System; and WHEREAS, the Executive Director of the Texas Department of Transportation, acting for and on behalf of the Texas Transportation Commission, has made it known to the City that the State of Texas will construct, maintain and operate said lighting Systems, as provided for in the “Agreement for Construction, Maintenance and Operation of Safety Lighting Systems within Municipalities (the University of North Texas Pedestrian Bridge Agreement” (hereafter the “Agreement”); and as provided for in Section 25.11 of the Texas Administrative Code and Section 220 of the Texas Transportation Code; and th WHEREAS, at its public meeting on the 18 day of December, 2012 the City Council authorized that the above referenced Agreement be approved, and that George C. Campbell, City Manager, or his designee; is hereby authorized to execute said Agreement; as the City Council of the City of Denton, Texas has expressed its support and interest regarding the above-referenced project; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council of the City of Denton, Texas hereby authorizes George C. Campbell, City Manager, or his designee, to execute said Agreement. SECTION 2. This resolution shall become effective immediately upon its passage and approval. th PASSED AND APPROVED this the 18 day of December, 2012. ________________________________ MARK A. BURROUGHS, MAYOR 1 ATTEST: JENNIFER WALTERS, CITY SECRETARY By: __________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: __________________________________ 2 EXHIBIT2 Agreement No.________________ STATE OF TEXAS § COUNTY OF TRAVIS § AGREEMENT FOR CONSTRUCTION, MAINTENANCE AND OPERATION OF SAFETY LIGHTING SYSTEMS WITHIN MUNICIPALITIES (State Maintains and Contracts for Power) (University of North Texas Pedestrian Bridge Agreement) THIS AGREEMENT , by and between the State of Texas, hereinafter referred to as the “State,” party of the first part, acting by and through the Texas Department of Transportation, and the City of Denton, Denton County, Texas, acting by and through its duly authorized officers under a resolution or ordinance passed the day of , 2012, hereinafter called the “City,” party of the second part. W I T N E S S E T H WHEREAS , in order to provide a more adequate facility to the traveling public, the construction, maintenance, and operation of a certain IH35E University of North Texas pedestrian bridge safety lighting systems is required within the corporate limits of the City. Within the City, said safety lighting system, hereinafter referred to as the “lighting system,” is to consist of safety lighting to be built in sections as financed and designated by the Texas Transportation Commission; and WHEREAS , the Executive Director, acting for and in behalf of the Texas Transportation Commission, has made it known to the City that the State will construct, maintain, and operate said lighting systems, subject to the conditions and provisions stated herein, as provided for in Section 25.11, Texas Administrative Code and Section 220, Texas Transportation Code. NOW THEREFORE , in consideration of the premises and of the mutual covenants and agreements of the parties hereto to be by them respectively kept and performed as hereinafter set forth, it is agreed as follows: A G R E E M E N T Article 1. CONSTRUCTION AND MAINTENANCE RESPONSIBILITIES a. The State will prepare or provide for the plans and specifications, advertise for bids, let the construction contract, or otherwise provide for the construction, and will supervise construction, reconstruction, or betterment work as required by said plans and specifications. As a project is developed to construction stage, either as a unit or in increments, the State will submit plans and specifications of the proposed work to the City and will secure the City’s consent to construct the lighting system prior to awarding the contract, said City consent to be signified by the signatures of duly authorized City officers in the spaces provided on the title sheet of plans containing the following notation: “Attachment No. to special UNT Pedestrian Bridge AGREEMENT FOR CONSTRUCTION, MAINTENANCE, AND OPERATION OF SAFETY LIGHTING SYSTEMS WITHIN MUNICIPALITIES, (STATE MAINTAINS, CONTRACTS FOR POWER), dated. The City-State construction, maintenance, and Traffic-Traffic_TEA19 Page 1 of 3 Revised 09/18/2006 SAFETY LIGHTING BLANKET (SM,CP) Agreement No.________________ operation responsibilities shall be as heretofore agreed to, accepted, and specified in the Agreement to which these plans are made a part.” b. All costs of construction, maintenance, and operation of the lighting system will be borne by the State, and the lighting system will remain the property of the state. Article 2. GENERAL a. The State’s obligation for operation and maintenance of the lighting system shall cease should the route on which it is located be dropped from the State Highway System. b. This Agreement will cease to apply to sections of the lighting system in the event that those sections are removed or become a part of a continuous illumination system. c. This agreement shall remain in force for a period of two years from the date that it is signed by the State, and it is understood by both parties that at the end of the initial two- year period, the Agreement will be automatically renewed for two-year periods thereafter unless modified by mutual agreement of both parties. In the event that the lighting system installed in accordance with this Agreement becomes unnecessary or is removed for any reason, this agreement will terminate. d. Changes in time frame, character, cost, or obligations authorized herein shall be enacted by written amendment.Any amendment to this Agreement must be executed by both parties within the contract period. e. This Agreement constitutes the sole and only agreement for lighting at the location described herein of the parties hereto and supersedes any prior understandings or written or oral agreement between the parties respecting the within subject matter. Article 3. SIGNATORY WARRANTY Each signatory warrants that the signatory has necessary authority to execute this agreement on behalf of the entity represented. Traffic-Traffic_TEA19 Page 2 of 3 Revised 09/18/2006 SAFETY LIGHTING BLANKET (SM,CP) Agreement No.________________ THIS AGREEMENT IS EXECUTED by the State and the City in duplicate. THE CITY OF DENTON Executed on behalf of the City by: THE CITY By: _____________________________ Date: _______________ George C. Campbell City Manager Approved as to Form: ATTEST: By: __________________________ By: __________________ Anita Burgess Jennifer Walters City Attorney City Secretary Date: ____________________ Date: ________________ THE STATE OF TEXAS Executed for the Executive Director and approved for the Texas Transportation Commission for the purpose and effect of activating and/or carrying out the orders, established policies or work programs heretofore approved and authorized by the Texas Transportation Commission. By_________________________________ Date__________________________ William L. Hale, P.E. Dallas District Engineer Traffic-Traffic_TEA19 Page 3 of 3 Revised 09/18/2006 SAFETY LIGHTING BLANKET (SM,CP) AGENDA INFORMATION SHEET AGENDA DATE : December 18, 2012 DEPARTMENT : Airport ACM: Jon Fortune SUBJECT Consider approval of a resolution of the City Council of the City of Denton, Texas to adopt a Branding/Marketing Proposal presented by the Economic Development Partnership Board for a new Denton Airport Logo, Tag Line, Anthem and Name and declaring an effective date. (Economic Development Partnership Board recommends approval 9-0) BACKGROUND In March 2011, the Denton City Council passed Ordinance No. 2011-042 which expanded the duties of the Economic Development Partnership Board (EDPB) to include branding and marketing for the Denton Airport in support of the Denton Airport 2010 Business Plan, as well as duties related to Airport economic development. EDPB membership was expanded to include a member knowledgeable of aviation. Cleve Breedlove was subsequently appointed as the aviation representative of the EDPB. In December of 2011, an Airport Branding Task Force (ABTF) was formed by staff under the direction of the EDPB and Cleve Breedlove was appointed as Chairman (Exhibit 1). The ABTF assumed two primary responsibilities: 1: Name, Branding/Identity Project This assignment was to consider lengths to capture the Airport story in a way it could be used for developing marketing materials, and, (4) logo. Additionally, the ABTF considered (5) graphical representation of the logo and theme line as one or separate graphic elements. The marketing consultant Sullivan Perkins was engaged to create multiple options for each of these five branding elements for consideration by the ABTF. 2: Basic Stationery Items Once approved, the new identity would be applied to business cards, letterhead, envelopes, mailing labels and other basic stationery items as needed. The services of Sullivan Perkins included creating multiple options and prepping final files for use by a printer of choice to produce marketing materials using the new Denton Airport brand. Agenda Information Sheet December 18, 2012 Page 2 The ABTF presented their preliminary considerations to the EDPB at the July 10, 2012 meeting regarding a new Denton Airport name, logo and tag line to be used in marketing Airport development to prospective aviation business and industry. Attached is a copy of the Task Force recommended documents. The recommendation includes four (4) changes as follows: 1.Airport Logo 2.Logo Tag Line 3.Airport Anthem 4.Airport name The Economic Development Partnership Board discussed the Task Force recommendation at their meeting on October 2, 2012 and voted 9-0 to recommend the new logo, tag line, anthem and name to the City Council for consideration. The Airport Advisory Board (AAB) discussed the ABTF recommendations at their September 12, 2012 meeting regarding each of the four proposed changes. There was unanimous support for each of the changes except the Airport name, which was supported with one dissenting opinion. RECOMMENDATION The Economic Development Partnership Board recommends approval of the Airport Branding Task Force proposed Airport Logo, Tag Line, Anthem and name. EXHIBITS 1.Airport Branding Task Force Membership 2.Resolution 3.Airport Logo, Tag Line and Name 4.Airport Anthem Respectfully submitted: Quentin Hix Director of Aviation Exhibit 1 Airport Branding Task Force Chair: Cleve Breedlove AAB Chair: Bob Eames UNT Aviation Program: Steve Schwartz Airport Business (2): Jeff Soules, US Aviation Group Mike Sutphin, Owner, Avionics International Supply (AIS) Airport Non-Business (2): Landon Sproell, Peterbilt Engineer, leases a hangar Rick Woolfolk, Raymond James Financial Services, (former Airport Board Member Staff Representatives (2): Karen Dickson, CEcD, Vice President, Denton Economic Development Quentin Hix, Director of Aviation, City of Denton EXHIBIT2 Attachment 2 Denton Enterprise Airport DFW access, extraordinary business . Welcome to Denton Enterprise Airport, where serving business is the first order of business. We are in the right place to serve enterprise on the rise. We are advantageously positioned at the top of the enterprise triangle formed by Denton, Dallas and Fort Worth. So we are the natural c companies doing business in DFW north, offering executives an ea getahead. Denton Enterprise Airport is also a convenient stopover for transcontinental flights. Since I-35 East and West meet at our front door, we are a vital link in the corporat Our airport includes a 7,000 x 150-foot runway, 500,000-square-feet of hangar space, on-site avionics, superior Fixed Base Operators, full-service aeronautical maintenance and repairs, and a flight schoo land available for lease development. Of course, it takes more than just first-rate facilities to land prime business aviation clients. It take commitment to service that is above and beyond. Speed matters, a counts, too. So Denton Enterprise Airport is an easy experience, getting travelers in and out as quickly and conveniently as possible. We provide not just business aviat that high-flying executives and their spouses appreciate. At Denton Enterprise Airport, business travelers will find less congestion, more convenience and easier access to businesses in our region. The citizens of Denton will increaseour prosperity and prestige and attract new aviation services an years to come. With top-flight amenities to serve business and a prime location to provide DFW access, Denton Enterprise Airport is just plane easier. AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 DEPARTMENT: Finance ACM: Bryan Langley SUBJECT Consider adoption of an Ordinance granting to Oncor Electric Delivery Company LLC a non- exclusive franchise for the purpose of constructing, maintaining, and using an electric delivery utility system in the City of Denton; regulating the construction work done by the grantee in the City; requiring joint use of poles, trenches, and conduits in certain instances; prescribing the relationship and relative rights between grantee and others with respect to construction in the City and location of facilities; prescribing the duties, responsibilities, and rule making authority of the City Manager and the City with respect to administration of this franchise; requiring certain records and reports and providing for inspections and location of principal offices; reserving to the governing body of the City the right to set charges and rates of grantee; providing the rights and responsibilities of the governing body in setting the rates; providing for enforcement of the franchise; prescribing the compensation to the City from the grantee for the franchise privilege; providing for assignment of the franchise; providing indemnity of the City and its employees; providing for good faith effort; providing for insurance; setting forth the term of the franchise and its renewal; repealing Ordinance No. 2001-405 as amended; providing for acceptance of the franchise by grantee; finding that the meeting at which this Ordinance is passed is open to the public; providing for severability; and providing an effective date. (Third Reading) FILE INFORMATION The City previous franchise agreement with Oncor expired on November 15, 2011. While considerable time has passed since the expiration of the previous franchise agreement, Oncor has continued to pay its franchise fees to the City and abide by all applicable ordinances. To date, no disputes have arisen between the City and Oncor which would have been covered under a franchise agreement. Over the last year, staff and Oncor representatives have been actively negotiating a number of provisions that would be acceptable to both parties. Staff is glad to inform the City Council that all issues surrounding the franchise agreement have been resolved and both the company and staff are jointly recommending approval of the franchise agreement. Furthermore, the City retained external legal counsel, Herrera & Boyle PLLC, to assist with the negotiation of this franchise agreement and they also recommend approval. Agenda Information Sheet December 18, 2012 Page 2 Unlike other franchise agreements, investor-owned electric utilities (excludes municipally- owned and cooperatives) are required to pay franchise fees to municipalities on a kilowatt factor basis. The change from a gross revenue based franchise fee to a kilowatt factor franchise fee became effective on January 1, 2002, and was intended to be revenue neutral to cities. At that time, the factor for the City was calculated to be .002859 and was equal to 4% of gross revenues. However, the amount was based on gross revenues collected and kilowatts sold in 1998. State law does not provide for any growth or inflationary adjustments nor does it provide for any true- ups to the kilowatt factor. Consequently and over time, the revenue produced by the kilowatt factor may produce less revenue to the City than a gross-revenue based franchise fee. In a settlement approved by the Council in June of 2006, Oncor and a coalition of cities entered into an agreement to increase the kilowatt factor for a total of 5% by January 1, 2009. between the two parties and a final ruling is pending. The current kilowatt factor for the City increased to .003002 per the settlement agreement. The proposed franchise agreement maintains the .003002 kilowatt factor but stipulates that Oncor may revert to the original kilowatt factor of .002859, if it is not allowed to recover those fees through its rates. This action would only impact future payments. In addition to the kilowatt based franchise fees paid to the City, Oncor also pays an annual franchise fee of 4% arose from the TXU litigation settled in 2001. The miscellaneous charges include: holiday move-in charges, out-of-cycle meter reading charges, priority move-in charges, meter investigation charges, and others. As part of the negotiation process and an attempt to streamline the percentage to other franchise agreements, staff proposed to increase the percentage to 5% but Oncor did not agree. Therefore, the proposed franchise agreement maintains the percentage at 4% as contained in the previous franchise agreement. Lastly, minor changes have been made to the proposed franchise agreement which consolidates at least two settlement agreements made since the original passage of the previous franchise agreement. Other changes include: clarification of the non-exclusive nature of the agreement, eliminates duplicative language already contained in the City incorporates language from the City and provides Oncor the option to be self-insured in covering any obligations contained in the franchise agreement. The City of Denton Charter requires the franchise agreement to be approved three (3) times before it becomes effective. The City Council approved the proposed ordinance and franchise agreement in a first reading on November 6, 2012, and in a second reading on December 4, 2012. If approved on this third and final reading, the new franchise agreement will be effective after 30 days of final passage, pending publication in the local newspaper, and acceptance by Oncor. Agenda Information Sheet December 18, 2012 Page 3 RECOMMENDATION Staff recommends adoption of this ordinance. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On November 6, 2012, the City Council considered and approved the proposed ordinance and On December 4, 2012, the City Council considered and approved the proposed ordinance and Respectfully Submitted By: Antonio Puente, Jr. Assistant Director of Finance AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 DEPARTMENT: Utilities ACM: Howard Martin, 349-8232 ______________________________________________________________________________ SUBJECT Consider approval of a resolution by the City Council of the City of Denton, Texas supporting the energy efficiency goals established in Senate Bill 898 enacted by Texas Legislature during nd the 82 Legislative Session of 2011; providing for an effective date. The Council Committee on the Environment recommends approval (3-0). BACKGROUND The passage of Senate Bill 898 (SB 898) by the 82nd Texas Legislature signified the continuance of Senate Bill 12 (SB 12) of the 80th Texas Legislature and of Senate Bill 5 (SB5) of the 77th Texas Legislature, which was enacted in 2001 to help to improve air quality by reducing ambient air emissions and to encourage energy efficiency in Texas public entities. Senate Bill 898 was enacted on September 1, 2011 to assist the state and its political jurisdictions to conform to the Ambient Air Quality standards set forth in the Federal Clean Air Act. Mandated Entities: SB 898 applies to each political subdivision, institute of higher education and state agency facility that is located in the 41 non-attainment or near non-attainment counties in Texas. Each of these entities is mandated to do the following: Establish a goal to reduce entity electrical consumption by at least 5 (five) percent each year for 10 (ten) years, beginning September 1, 2011. Submit a report to SECO annually regarding the entity’s progress and efforts to meet the 5% goal to reduce electrical consumption. A political subdivision, institute of higher education or state agency that does not attain the goals established must provide justification in the SB898 report that the entity has already implemented all cost-effective measures. (Cost effectiveness of an Energy Conservation Measure is defined as having a 20 year (or less) return on investment.) Exemptions: An exemption to the reporting of SB 898 may be allowed if: 1) The entity has reviewed available cost-effective measures to reduce electrical consumption and determines that no additional measures are cost effective; 2) The entity has implemented all cost-effective energy efficiency measures to reduce electrical consumption; and 3) The Entity has included a report to this effect. If seeking an exemption, please submit adequate documentation to support your request. Reporting Timelines: The recommended timeline for entities reporting under SB898 should be consistent and conform to the State Fiscal Year. Staff Actions: Sustainability staff is continuing to work with Facilities to identify potential energy efficiency upgrades and track completed projects. As required by SB 898 staff is targeting the goal of a 5% reduction in kWh usage each year for the next ten years. As in previous bills, SB898 does not account for weather patterns significantly impact usage. However SB898 does break out usage into infrastructure or facility type. We will be required to track buildings, water (pumps), wastewater (lift stations and treatment plant), traffic lighting and street lighting. We also have the option of adding other category(s). This is a better representation than in years past when we reported only square footage and total kWh usage. Water and waste water make up a large portion of our electric usage, so the previous reporting was not a good measure. RECOMMENDATION Staff recommends adoption of Resolution in Support of SB898 PRIOR ACTION/REVIEW (Council, Boards, Commissions) Senate Bill 898 Resolution was recommended for approval by the City Council Committee on the Environment 3-0. EXHIBITS 1.Resolution. Respectfully submitted, Katherine Barnett-White Sustainability & Spec Proj Adm EXHIBIT1 RESOLUTION NO. R2012-______ A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS SUPPORTING THE ENERGY EFFICIENCY GOALS ESTABLISHED IN SENATE BILL 898 nd ENACTED BY TEXAS LEGISLATURE DURING THE 82 LEGISLATIVE SESSION OF 2011; PROVIDING FOR AN EFFECTIVE DATE. nd WHEREAS, Senate Bill 898 of the 82 Texas Legislative Session (2011), signified the th continuation of Senate Bill 12 (SB 12) of the 80 Texas Legislature, which extended the mandates for Texas’ political jurisdictions to reduce their electrical consumption through the use of energy efficiency strategies and practices in Texas public facilities; and WHEREAS, Senate Bill 898 is an Act Relating to Energy Efficiency Programs in Certain Political Subdivisions, which pertains to energy efficiency programs in institutes of higher education and certain governmental entities; and WHEREAS, Senate Bill 898 was enacted on September 1, 2011 and expires on August 31, 2021; and said bill amended the provisions of Sections 388.005 (c), (d) and (e) and Section 388.006 of the Texas Health and Safety Code; and WHEREAS, Senate Bill 898 superseded the previous SB 12 legislation, but it is broader in scope and also provides for mandated entities to submit documentation that would allow for an exemption for mandated reporting entities; and WHEREAS, like Senate Bill 5 and SB 12 that were enacted in previous Texas Legislative Sessions, Senate Bill 898 is a continuation with some modifications, and its purpose was to continue to assist Texas’ political jurisdictions in the non-attainment and near non-attainment counties of Texas to conform to the standards that are set forth in the Federal Clean Air Act; and WHEREAS, SB 898 applies to each political subdivision, institute of higher education and state agency facility, which is located in the forty-one (41) non-attainment or near non- attainment counties of Texas; and WHEREAS, each of the designated political jurisdictions within the forty-one (41) non- attainment and near non-attainment counties of Texas has been mandated to do the following: Establish a goal to reduce electric electrical consumption by the entity by at least five (5%) percent each year for ten (10) years, beginning on September 1, 2011. Submit a report annually to State Energy Conservation Office (SECO) regarding the entity’s progress and efforts to meet the five percent (5%) goal to reduce electrical consumption. A political subdivision, an institute of higher education and/or a state agency that does not attain the goals established must provide justification in their SB 898 report to SECO that the entity has already implemented all cost-effective measures. Cost effectiveness of an Energy Conservation Measure is defined as having a twenty (20)-year or less return on investment. 1 WHEREAS, the City of Denton, Texas, is located in a designated air quality non- attainment area; and WHEREAS, the City of Denton currently uses 40% wind power for all Denton Municipal Electric Customers; and WHEREAS, Denton Municipal Electric is continually looking at other renewable energy options to reduce our percentage of fossil fuel electric generation and greenhouse gas emissions; and WHEREAS, the City’s reduction in electric consumption will reduce total electric generation requirements and thus, will provide additional beneficial effects and impacts on air quality. THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES: SECTION 1. The City Council of the City of Denton, Texas hereby establishes a goal for the City to reduce electric consumption by five (5%) percent per year for ten (10) years beginning retroactively effective on September 1, 2011. SECTION 2. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED on this the ______ day of _______________, 2012. _________________________________ MARK A. BURROUGHS, MAYOR ATTESTED BY: JENNIFER WALTERS, CITY SECRETARY By: _________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: __________________________________ 2 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 DEPARTMENT: Solid Waste ACM: Jon Fortune ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, authorizing the City Manager, or his designee, to execute a Contract of Sale (herein so called), as attached to the ordinance and Wilson and Wife, Ter purchase by City of a 2.123 acre tract of land, more or less, being generally located at S. Mayhill Road north of Gayla Drive, in the Gideon Walker Survey, Abstract No. 1330 in the City of Thirteen Thousand Seven Hundred Fifty One and No/100 Dollars ($113,751.00); authorizing the City Manager, or his designee, to execute and deliver any and all other documents necessary to accomplish closing of the transaction contemplated by the Contract of Sale; authorizing the expenditure of funds therefor; and providing an effective date. BACKGROUND This tract is necessary to provide additional land for future solid waste operations. A portion of the subject purchase tract will provide for the construction of an emergency services access road to the waste area, which will also enhance access to environmental monitoring and testing locations. The acquisition is included as part of the Solid Waste Doverall strategic plan. Integra Realty Resources has provided a real estate appraisal report in regard to the Wilson property tract and the land rights necessary for the Project. The City made an initial offer to purchase the Property Interests (Ordinance No. 2012-263), which was passed and approved by the City Council on October 2, 2012, based on the findings in that appraisal. An offer to purchase and the appraisal were submitted to the Seller on October 10, 2012, the Seller has 00 recently submitted a counter offer in the amount of $113,751.. OPTIONS 1.Approve the proposed Ordinance. 2.Decline to approve the proposed Ordinance. 3.Table for future consideration. RECOMMENDATION Recommend approval of the Ordinance. Agenda Information Sheet December 18, 2012 Page 2 PRIOR ACTION/REVIEW (Council, Boards, Commissions) PUB Executive Session January 23, 2012 City Council Meeting - February 7, 2012 PUB Executive Session September 24, 2012 PUB Consent Agenda September 24, 2012 - Approved 5-0 City Council Meeting - October 2, 2012 (Ordinance 2012-263) City Council Meeting - December 4, 2012 Executive Session FISCAL INFORMATION The acquisition will be funded from Solid Waste Long Term Bonds in the amount of the purchase price $113,751plus transaction closing costs. 00 . BID INFORMATION Not applicable EXHIBITS 1.Location Map 2. Ordinance Respectfully submitted, Vance Kemler, General Manager Solid Waste Prepared by, Pamela England, Real Estate Specialist Denton Municipal Landfill Proposed Acquistion Wilson - 2.124 Acres Denton Municipal Landfill Proposed Acquisition Legend µ Wilson 2.124 Acres SITE Parcels 3001500300Feet Streets AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 DEPARTMENT: Planning and Development ACM: John Cabrales ______________________________________________________________________________ SUBJECT- A10-0001 DH-7 Consider the adoption of an ordinance providing for acceptance of eligible non-annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as DH-7, consisting of approximately 143 acres of land located on the east and north sides of Teasley Lane, south of Teasley Harbor subdivision and west of Southlake Drive, and more specifically identified severability; and providing an effective date. BACKGROUND In 2009, via several City Council work sessions, staff recommended the annexation of eighteen (18) areas totaling approximately 9,035 - Territorial Jurisdiction (ETJ). Of the 18 areas identified, all but three areas were exempted from the 3-year annexation plan requirement under Section 43.052 of the Texas Local Government Code (Tx. LGC). The three areas that were not exempted from the requirement of the 3-year annexation plan are identified as DH-7, DH-9 and DH-12. Per Tx.LGC §43.052, a home-rule municipality such as the City of Denton (the City) must adopt an Annexation Plan. The Annexation Plan must identify all areas proposed for annexation and rd annexation of the area may not occur prior to the 3 anniversary of the date the plan is adopted or amended. Id. at §43.052(c). The "three-year waiting period" is a misnomer, because the City must begin notice, public hearings and negotiation procedures almost immediately after placing an area in the Annexation Plan. st The annexation of the areas identified in the Annexation Plan must be completed before the 31 rd day after the third (3) anniversary of the date the area was included in the annexation plan. If the annexation is not completed within the prescribed period, the City may not annex the areas th proposed for annexation before the fifth (5) anniversary of the last day for completing the annexation. On April 6, 2010, the Denton City Council adopted an Annexation Ordinance (See Exhibit 4) to initiate the annexation of the aforementioned three areas; DH-7, DH-9 and DH-12, that are not exempted from the 3-year annexation plan requirement under Section 43.052 of the Tx. LGC, due to the number of residential structures. Agenda Information Sheet December 18, 2012 Page 2 Per Tx.LGC §43.035, a municipality is prohibited from annexing land that is appraised for ad valorem tax purposes as land for agricultural use under Chapter 23 of the Texas Tax Code unless the municipality offers to make a development agreement (Non-Annexation Agreement) with the landowner under Tx.LGC §212.172 of the Texas Local Government Code and the landowner refuses. The proffered development agreement may not exceed forty-five (45) years, and must guarantee the continuation of the ETJ status of the qualifying area and authorize the enforcement of all regulations and planning authority of the municipality that do not interfere with the use of the area for agriculture. Id. at §43.035(b). The Development Agreements offered to eligible property owners within DH-7 is for a period of seven years and shall terminate on August 1, 2020. The effective date of the agreement shall be the date the agreement is executed by the City. The development agreement restricting the municipality's right to annex all or part of the property is void if the landowner files any type of subdivision plat or related development document for the area regardless of how the area is appraised for ad valorem tax purposes, and that such a development agreement is not a permit under the Vested Rights Act. Id. at §43.035(d) and (3). PRIOR ACTIONS The following is a summary of the actions taken by the City in association with the annexation of DH-7: 1.On April 6, 2010, the Annexation Plan was adopted by City Council and posted on the 2.On June 30, 2010, Notice of Intent was sent to all property owners, public/private ning website; 3.On November 24, 2010, the Inventory of Services and Facilities was completed and 4. website; 5.On February 1, 2011, the first public hearing before the City Council was held; 6.On February 15, 2011, the second public hearing before the City Council was held; 7.A third public hearing was held on February 17, 2011, due to inclement weather on February 15, 2011; 8.Negotiations for the Provision of Services for DH-7 began on July 12, 2012 and ended on July 26, with an agreed upon Service Plan. 9.Non-Annexation Agreements were mailed to eligible property owners on January 11, 2012. Agenda Information Sheet December 18, 2012 Page 3 OPTIONS 1.Adopt the Non-Annexation Agreements as proposed. 2.Amend the Non-Annexation Agreements. RECOMMENDATION Staff recommends approval of the adoption of the Non-Annexation Agreements as presented for DH-7. EXHIBITS 1.DH-7 Area Location Map 2.DH-7 Area Survey Map 3.DH-7 Metes and Bounds Description 4.DH-7 Annexation Plan Ordinance 5.Annexation Schedule 6.DH-7 Ordinance (Non Annexation Agreements) Prepared by: Johnna Matthews Senior Planner Respectfully submitted Brian Lockley, AICP, CPM Interim Director, Planning & Development Exhibit 1 DH-7 Area Location Map Exhibit 2 DH-7 Area Survey Map Exhibit 3 DH-7 Area Metes and Bounds Description ALL those certain lots, tracts or parcels of land lying and being situated in the County of Denton, State of Texas and presently being wholly surrounded and fully embraced by the Denton city limit boundaries of record and established by the annexation and disannexation ordinances as follows: Ordinance 1965-43 (Tract III), Ordinance 1978-028, Ordinance 1985-30, Ordinance 1987-119, Ordinance 2000-440, Ordinance 2003-231, and Ordinance 2007-293; and being more specifically described as follows: BEGINNING at a point described in Ordinance 87-119, said point being 55 feet east of the centerline of FM 2182; THENCE North 89° 14’ East, 195.9 feet to a point for a corner, as described in Ordinance 87- 119, said point being 250 feet east of the and perpendicular to the centerline of FM 2181; THENCE Southerly to a point of intersection with north boundary line of the property described in Ordinance 2003-231; said point being the northwest corner of the said property; THENCE South 89° 36’ East, 1449 feet (more or less) to a point for a corner, said point being the northeast corner of the said property; THENCE South 00° 39’ West, 2124 feet (more or less) to a point for a corner, said point being the southeast corner of said property; THENCE South 89° 40’ West, 980.52feet (more or less) to the northeast corner of the current City Limits as described in Ordinance 2007-293 ; Thence South 06 degrees 14 minutes 36 seconds West, a distance of 90.03 feet to a point for a corner being the Southeast corner of existing said City limits line and being on a northern line of existing City limits line established by Ordinance 87-119; THENCE Southeasterly and Easterly along a line 250 feet east and north of and parallel to the centerline of FM 2181 to a point intersecting with the City limits as described in Ordinance 87- 119 and Disannexation Ordinance 78-28; THENCE Northerly along the City Limit Line as described in Ordinance 78-28, said line being the west line of the property described in said Ordinance, to a point of intersection with the southern line of the property described in Ordinance 85-30; THENCE West to the point of intersection with the property described in Ordinance 2000-440, said point being the southwest corner of the property described in Ordinance 85-30 and the southeast corner of the property described in Ordinance 2000-440; THENCE South 89° 34’ 07” West, 2483.03 feet to a point for a corner, said point being 55 feet east of and perpendicular to the centerline of FM 2181; THENCE Southerly along a line 55 feet east of and parallel to the centerline of FM 2181 to the Point of Beginning, containing approximately 143 acres. Exhibit 4 DH-7 Annexation Plan Ordinance Exhibit 5 Three- Year Annexation Schedule DH-7, DH-9 & DH-12 ActionDate Adoptionof3yearAnnexationPlan4/6/10 NoticeofIntenttoallpropertyowners,public/privateentities,railroad6/30/10 companiesandpostonwebsite CompleteInventoryofServicesandFacilitiesandmakeavailablefor11/24/10 publicinspection MakeServicePlanavailableforpublicinspection1/25/11 st 1PublicHearing2/1/11 nd 2PublicHearing2/15/11 rd 3PublicHearing2/17/11 NegotiationsforProvisionofServices7/6/11 10/13/11 FinalServicePlan8/26/11 (DH7andDH9) RequestArbitrationregardingnegotiations10/13/11 (DH12) Arbitration(DH12)10/17/12 10/18/12 ArbitratorAward10/30/12 FinalServicePlan(DH12)11/1/12 (DH12) CityCouncilAdoptionoftheNonAnnexationAgreementsOrdinances12/18/12 st 1ReadingoftheAnnexationOrdinance3/5/13 PublicationofAnnexationOrdinances3/10/13 nd 2ReadingoftheAnnexationOrdinance4/9/13 Exhibit 6 DH-7 Non Annexation Agreements Ordinance AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 DEPARTMENT: Planning and Development ACM: John Cabrales ______________________________________________________________________________ SUBJECT- A10-0001 DH-9 Consider the adoption of an ordinance providing for acceptance of eligible non-annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as DH-9, consisting of approximately 298 acres of land located north of Pockrus Page Road, north, south and northeast of Edwards Road, and more specifically identified in Exhibit ed hereto; providing for severability; and providing an effective date. BACKGROUND In 2009, via several City Council work sessions, staff recommended the annexation of eighteen (18) areas totaling approximately 9,035 acres of land within the City of - Territorial Jurisdiction (ETJ). Of the 18 areas identified, all but three (3) areas were exempted from the 3-year annexation plan requirement under Section 43.052 of the Texas Local Government Code (Tx. LGC). The 3 areas that were not exempted from the requirement of the 3-year annexation plan are identified as DH-7, DH-9 and DH-12. Per Tx.LGC §43.052, a home-rule municipality such as the City of Denton (the City) must adopt an Annexation Plan. The Annexation Plan must identify all areas proposed for annexation and rd annexation of the area may not occur prior to the 3 anniversary of the date the plan is adopted or amended. Id. at §43.052(c). The "three-year waiting period" is a misnomer, because the City must begin notice, public hearings and negotiation procedures almost immediately after placing an area in the Annexation Plan. st The annexation of the areas identified in the Annexation Plan must be completed before the 31 rd day after the third (3) anniversary of the date the area was included in the annexation plan. If the annexation is not completed within the prescribed period, the City may not annex the areas th proposed for annexation before the fifth (5) anniversary of the last day for completing the annexation. On April 6, 2010, the Denton City Council adopted an Annexation Ordinance (See Exhibit 4) to initiate the annexation of the aforementioned 3 areas; DH-7, DH-9 and DH-12, that are not exempted from the 3-year annexation plan requirement under Section 43.052 of the Tx. LGC, due to the number of residential structures. Agenda Information Sheet December 18, 2012 Page 2 Per Tx.LGC §43.035, a municipality is prohibited from annexing land that is appraised for ad valorem tax purposes as land for agricultural use under Chapter 23 of the Texas Tax Code unless the municipality offers to make a development agreement ( Non-Annexation Agreement) with the landowner under Tx.LGC §212.172 of the Texas Local Government Code and the landowner refuses. The proffered development agreement may not exceed forty-five (45) years, and must guarantee the continuation of the ETJ status of the qualifying area and authorize the enforcement of all regulations and planning authority of the municipality that do not interfere with the use of the area for agriculture. Id. at §43.035(b). The Development Agreements offered to eligible property owners within DH-9 is for a period of seven (7) years and shall terminate on August 1, 2020. The effective date of the agreement shall be the date the agreement is executed by the City. The development agreement restricting the municipality's right to annex all or part of the property is void if the landowner files any type of subdivision plat or related development document for the area regardless of how the area is appraised for ad valorem tax purposes, and that such a development agreement is not a permit under the Vested Rights Act. Id. at §43.035(d) and (3). PRIOR ACTIONS The following is a summary of the actions taken by the City in association with the annexation of DH-9: 1.On April 6, 2010, the Annexation Plan was adopted by City Council and posted on the 2.On June 30, 2010, Notice of Intent was sent to all property owners, public/private 3.On November 24, 2010, the Inventory of Services and Facilities was completed and 4. website; 5.On February 1, 2011, the first public hearing before the City Council was held; 6.On February 15, 2011, the second public hearing before the City Council was held; 7.A third public hearing was held on February 17, 2011, due to inclement weather on February 15, 2011; 8.Negotiations for the Provision of Services for DH-9 began on July 6, 2012 and ended on August 15, 2012, with an agreed upon Service Plan. 9.Non-Annexation Agreements were mailed to eligible property owners on January 11, 2012. Agenda Information Sheet December 18, 2012 Page 3 OPTIONS 1.Adopt the Non-Annexation Agreements as proposed. 2.Amend the Non-Annexation Agreements. RECOMMENDATION Staff recommends approval of the adoption of the Non-Annexation Agreements as presented for DH-9. EXHIBITS 1.DH-9 Area Location Map 2.DH-9 Area Survey 3.DH-9 Metes and Bounds Description 4.DH-9 Annexation Plan Ordinance 5.Annexation Schedule 6.DH-9 Ordinance (Non Annexation Agreements) Prepared by: Johnna Matthews Senior Planner Respectfully submitted Brian Lockley, AICP, CPM Interim Director, Planning & Development Exhibit 1 DH-9 Area Location Map Exhibit 2 DH-9 Area Survey Map Exhibit 3 DH-9 Area Metes and Bounds Description ALL those certain lots, tracts or parcels of land lying and being situated in the County of Denton, State of Texas and presently being wholly surrounded and fully embraced by the Denton city limit boundaries of record and established by the annexation ordinances as follows: Ordinance 1983-18, Ordinance 1984-17 (Tracts II & III), Ordinance 1984-97, Ordinance 1986-129, Ordinance 1986-130, Ordinance 1986-214, Ordinance 1986-218, Ordinance 1998-256, Ordinance 1999-262, Ordinance 2004-134 (Tract II), and Ordinance 2004-192; and being more specifically described as follows: BEGINNING at a point described in Ordinance 86-130, said point being on the north boundary line of the property described in Ordinance 84-97 and a point in the center of Swisher Road, said point also being the Point of Beginning of the property described in Ordinance 86-130; THENCE North 00° 41’ 04” East, 1520.87 feet with the center of Swisher Road to a point for a corner; THENCE North 89° 50’ 58” East, 1655.56 feet to a point for a corner; THENCE northerly along the west line of the property described in Ordinance 86-130 to a point described in Ordinance 98-256, said point being the southeast corner of the property described in Ordinance 98-256; THENCE North 86° 23’ 49” West, 1632.5 to a point for a corner, said point being the point of beginning for the property described in Ordinance 98-256; THENCE North 04° 44’ 29” East, 283.1 feet to a pin for a corner; THENCE North 72° 08’ 23” East, 271.89 feet to a point for a corner; THENCE North 88° 59’ 12” East, 526.69 feet to a point for a corner; THENCE South 86° 21’ 22” East, 150.03 feet to a point for a corner; THENCE South 86° 20’ 48” East, 704.84 feet to a point on a corner, said point being the northeast corner of the property described in Ordinance 98-256 and on the west line of the property described in Ordinance 86-130; THENCE northerly along the west line of the property described in Ordinance 86-130, said point being the northeast corner of the property; THENCE North 89° 29’ 03” East, 1261.48 feet to a point for a corner; THENCE North 00° 40’ 16” West, 83.55 feet to a point, said point being the beginning of a curve described in Ordinance 86-130; THENCE 552.92 feet along the above referenced curve to a point at the end of the curve; THENCE North 21° 19’44” East, 698.69 feet to a point for a corner, said point on a line as described in Ordinance 82-214; THENCE Westerly along a line described in Ordinance 82-214 to a point for a corner, said point being US Army Corps of Engineers (USACE) Monument P-238-W; THENCE along a series of courses and distances as described in Ordinance 82-214 as follows; South 82° 18’ West, 236.4 feet to USACE Monument P-239-W; South 69° 35’ West, 556.8 feet to USACE Monument P-240-W; North 38° 59’ West, 1140.8 feet to USACE Monument P-241-W; South 58° 12’ West, 672.9 feet to USACE Monument P-242-W; North 88° 58’ West, 547.2 feet to USACE Monument P-243-W; North 17° 12’ West, 341.7 feet to USACE Monument P-244-W; North 27° 41’ East, 164.7 feet to USACE Monument P-245-W; THENCE South 88° 58’ East to a point of intersection with the property described in Ordinance 86-129; THENCE Northwesterly along the middle of Pecan Creek, approximately 1040 feet in a series of courses and distances as described in Ordinance 86-129 to a point of intersection with the east boundary of the property described in Ordinance 83-18; THENCE South 4° 11’ 22” West, 744.55 feet to a point for a corner, said point being the southeast corner of the property described in Ordinance 83-18; THENCE Westerly approximately 310 feet to a point of intersection with the property described in Ordinance 2004-192, said point being the northeast corner of said property; THENCE South 02° 30’ 20: West, 598.74 feet to a point for a corner; THENCE South 86° 34’ 09” East, 289.44 feet to a point for a corner; THENCE South 02° 13’ 37” West, 296.76 feet to a point for a corner; THENCE North 87° 35’ 54” West, 288.25 feet to a point for a corner; THENCE South 02° 28’ 11” West, 303.97 feet to a point for a corner; THENCE South 87° 35’ 54” East, 288.25 feet to a point in Swisher Road; THENCE South along the center of Swisher Road, approximately 678.27 feet to a point at a corner; THENCE South 89° 38’ 54” West, 2051 feet to a point for a corner; THENCE North to a point of intersection with the property described in Ordinance 86-218; THENCE North 89° 47’ 12” West, 40.21 feet to a point for a corner; THENCE South 04° 19’ 30” West, 1507.29 feet to a point for a corner, said point being the southeast corner of said tract and lying in the center line of Edwards Road and having an intersection of a northerly line of the property described in Ordinance 99-262; THENCE Easterly along the centerline of Edwards Road to a point for a corner; THENCE South 00° 21’ 39” East, 1328.19 feet to a point for a corner, said point being on the north line of the property described in Ordinance 84-17, Tract II; THENCE Easterly to a point intersecting the east line of the property described in Ordinance 2004-134, Tract II; THENCE South 02° 02’ 31” West, 724.32 feet to a point for a corner; THENCE North 87° 02’ 50” West, 73.11 feet to a point for a corner; THENCE South 02° 00’ 40” West, 596.16 feet to a point on Pokrus Page Road; THENCE Easterly to the Point of Beginning, containing approximately 298 acres. Exhibit 4 DH-9 Annexation Plan Ordinance Exhibit 5 Three- Year Annexation Schedule DH-7, DH-9 & DH-12 ActionDate Adoptionof3yearAnnexationPlan4/6/10 NoticeofIntenttoallpropertyowners,public/privateentities,railroad6/30/10 companiesandpostonwebsite CompleteInventoryofServicesandFacilitiesandmakeavailablefor11/24/10 publicinspection MakeServicePlanavailableforpublicinspection1/25/11 st 1PublicHearing2/1/11 nd 2PublicHearing2/15/11 rd 3PublicHearing2/17/11 NegotiationsforProvisionofServices7/6/11 10/13/11 FinalServicePlan8/26/11 (DH7andDH9) RequestArbitrationregardingnegotiations10/13/11 (DH12) Arbitration(DH12)10/17/12 10/18/12 ArbitratorAward10/30/12 FinalServicePlan(DH12)11/1/12 (DH12) CityCouncilAdoptionoftheNonAnnexationAgreementsOrdinances12/18/12 st 1ReadingoftheAnnexationOrdinance3/5/13 PublicationofAnnexationOrdinances3/10/13 nd 2ReadingoftheAnnexationOrdinance4/9/13 Exhibit 6 DH-9 Non Annexation Agreements Ordinance AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 DEPARTMENT: Planning and Development ACM: John Cabrales ______________________________________________________________________________ SUBJECT- A10-0001 DH-12 Consider the adoption of an ordinance providing for acceptance of eligible non-annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as DH-12, consisting of approximately 1,154 acres of land located south of E. University Drive, east of N. Mayhill Road, north and south of Blagg Road, north and south of Mills Road, and east and west of S. Trinity Road, and more spe of the ordinance attached hereto; providing for severability; and providing an effective date. BACKGROUND In 2009, via several City Council work sessions, staff recommended the annexation of eighteen - Territorial Jurisdiction (ETJ). Of the 18 areas identified, all but three (3) areas were exempted from the 3-year annexation plan requirement under Section 43.052 of the Texas Local Government Code (Tx. LGC). The 3 areas that were not exempted from the requirement of the 3-year annexation plan are identified as DH-7, DH-9 and DH-12. Per Tx.LGC §43.052, a home-rule municipality such as the City of Denton (the City) must adopt an Annexation Plan. The Annexation Plan must identify all areas proposed for annexation and rd annexation of the area may not occur prior to the 3 anniversary of the date the plan is adopted or amended. Id. at §43.052(c). The "three-year waiting period" is a misnomer, because the City must begin notice, public hearings and negotiation procedures almost immediately after placing an area in the Annexation Plan. st The annexation of the areas identified in the Annexation Plan must be completed before the 31 rd day after the third (3) anniversary of the date the area was included in the annexation plan. If the annexation is not completed within the prescribed period, the City may not annex the areas th proposed for annexation before the fifth (5) anniversary of the last day for completing the annexation. On April 6, 2010, the Denton City Council adopted an Annexation Ordinance (See Exhibit 4) to initiate the annexation of the aforementioned 3 areas; DH-7, DH-9 and DH-12, that are not exempted from the 3-year annexation plan requirement under Section 43.052 of the Tx. LGC, due to the number of residential structures. Agenda Information Sheet December 18, 2012 Page 2 Per Tx.LGC §43.035, a municipality is prohibited from annexing land that is appraised for ad valorem tax purposes as land for agricultural use under Chapter 23 of the Texas Tax Code unless the municipality offers to make a development agreement ( Non-Annexation Agreement) with the landowner under Tx.LGC §212.172 of the Texas Local Government Code and the landowner refuses. The proffered development agreement may not exceed forty-five (45) years, and must guarantee the continuation of the ETJ status of the qualifying area and authorize the enforcement of all regulations and planning authority of the municipality that do not interfere with the use of the area for agriculture. Id. at §43.035(b). The Development Agreements offered to eligible property owners within DH-12 is for a period of seven (7) years and shall terminate on August 1, 2020. The effective date of the agreement shall be the date the agreement is executed by the City. The development agreement restricting the municipality's right to annex all or part of the property is void if the landowner files any type of subdivision plat or related development document for the area regardless of how the area is appraised for ad valorem tax purposes, and that such a development agreement is not a permit under the Vested Rights Act. Id. at §43.035(d) and (3). PRIOR ACTIONS The following is a summary of the actions taken by the City in association with the annexation of DH-12: 1.On April 6, 2010, the Annexation Plan was adopted by City Council and posted on the 2.On June 30, 2010, Notice of Intent was sent to all property owners, public/private 3.On November 24, 2010, the Inventory of Services and Facilities was completed and 4.On January 25, 2011, the proposed Service Plan was posted on website; 5.On February 1, 2011, the first public hearing before the City Council was held; 6.On February 15, 2011, the second public hearing before the City Council was held; 7.A third public hearing was held on February 17, 2011, due to inclement weather on February 15, 2011; 8.Negotiations for the Provision of Services for DH-12 began on July 7, 2011 and ended on October 13, 2011. A Service Plan was not agreed upon at that time by the City and the Citizen Committee; 9.Arbitration for the Provision of Services began on October 17-October 18, 2012; 10.October 30, 2012; Agenda Information Sheet December 18, 2012 Page 3 11.Non-Annexation Agreements were mailed to eligible property owners on November 14, 2012. OPTIONS 1.Adopt the Non-Annexation Agreements as proposed. 2.Amend the Non-Annexation Agreements. RECOMMENDATION Staff recommends approval of the adoption of the Non-Annexation Agreements as presented for DH-12. EXHIBITS 1.DH-12 Area Location Map 2.DH-12 Area Survey 3.DH-12 Metes and Bounds Description 4.DH-12 Annexation Plan Ordinance 5.Annexation Schedule 6.DH-12 Ordinance (Non Annexation Agreements) Prepared by: Johnna Matthews Senior Planner Respectfully submitted: Brian Lockley, AICP, CPM Interim Director, Planning & Development Exhibit 1 DH-12 Area Location Map Exhibit 2 DH-12 Area Survey Map Exhibit 3 DH-12 Area Metes and Bounds Description ALL those certain lots, tracts or parcels of land lying and being situated in the County of Denton, State of Texas and presently being wholly surrounded and fully embraced by the Denton city limit boundaries of record and established by the annexation ordinances as follows: Ordinance 1965-43 (Tract 1), Ordinance 1983-134, Ordinance 1984-98, Ordinance 1985-210 (Tracts 1, 3 and 4-A), Ordinance 1986-22 (Tracts II & III), Ordinance 1986-129, Ordinance 1989-1, Ordinance 1996-68, Ordinance 1996-232, and Ordinance 2001-244; and being more specifically described as follows: BEGINNING at a point at the southwest corner of the property described in Ordinance 96-068, said point being in the center of Mayhill Road and the north right-of-way line of Blagg Road; THENCE East along the north right-of-way line of Blagg Road, 407.5 feet to a point for a corner; THENCE North 1244 feet to a point for a corner, said corner being the northeast corner of the property described in Ordinance 96-068 and being on the south line of the property described in Ordinance 65-43, Tract I; THENCE Northeasterly along a line to a point of intersection with the west line of the property described in Ordinance 86-22, Tract II; THENCE South to a point for a corner, said point being the southeast corner of the property described in Ordinance 86-22, Tract II, also being on the east right-of-way line of Geesling Road; THENCE South 00° 30’ 22” East, 59.37 feet along the east line of Geesling Road to a point for a corner; THENCE South 89° 27’ 34” East, 337 feet to a point for a corner; THENCE South 00° 55’ 15” West, 538.17 feet to a point for a corner; THENCE North 89° 54’ 18” West, 337 feet to a point for a corner; THENCE South 00° 00’ 11” East, 459.04 feet along the east line of Geesling Road to a point for a corner; THENCE South 40° 27’ 41” East, 255.8 feet to a point for a corner; THENCE North 89° 59’ 49” East, 549.5 feet to a point for a corner; THENCE South 46° 13’ 49” West, 45.10 feet to a point for a corner; THENCE South 89° 54’ 30” East, 36.28 feet to a point for a corner; THENCE South 00° 05’ 30” West, 365 feet to a point for a corner, said point being on the north line of Blagg Road; THENCE South 89° 54’ 30” East, 719.56 feet, along the north line of Blagg Road to a point for a corner; THENCE North 00° 07’ 52” West, 985.11 feet to a point for a corner; THENCE South 89° 24’ 39” East to the point of intersection of the property described in Ordinance 96-232; THENCE South 03° 04’ 00” West, 980.18 feet to a point on the north line of Blagg Road; THENCE Easterly along the north line of Blagg Road to a point of intersection with the west right-of-way line of Lakeview Boulevard; THENCE southerly along the west right-of-way line of Lakeview Boulevard to the south right- of-way of Blagg Road; THENCE westerly along the south right-of-way line of Blagg Road to a point described in Ordinance 2001-244, said point also being the northeast corner of the property in the said Ordinance; THENCE South 89° 28’ 01” West, 745.32 feet along the south right-of-way of Blagg Road to a point for a corner; THENCE South 00° 05’ 17” East, 416.59 feet to a point for a corner; THENCE South 89° 59’ 36” West, 676.35 feet to a point for a corner; THENCE South, 247.72 feet to a point for a corner; THENCE East, 165 feet to a point for a corner; THENCE South, 261.78 feet to a point for a corner; THENCE West, 165 feet to a point for a corner; THENCE South 710.41 feet to a point for a corner; THENCE East, 1421 feet to the intersection with the property described in Ordinance 84-98; THENCE Southerly along the west line of the property described in Ordinance 84-98 to a point for a corner; THENCE South 83° 12’ 10” East, 693.59 feet to a point for a corner; THENCE South 3° 57’ 40” West, 646.13 feet to a point for a corner; THENCE Easterly to point on the west line of the property described in Ordinance 85-210, Tract 3, said point being the northwest corner of the said tract; THENCE South 2° 45’ 06” West, 822.11 feet to a point for a corner; THENCE South 75° 04’ 19” East, 144.36 feet to a point for a corner; THENCE South 39° 15’ 29” East, 87.11 feet to a point for a corner; THENCE South 9° 13’ 56” East, 72.59 feet to a point for a corner; THENCE South 48° 27’ 58” West, 28.64 feet to a point for a corner; THENCE North 86° 10’ 37” West, 194.01 feet to a point for a corner; THENCE South 2° 45’ 06” West, 561.45 feet to a point for a corner; THENCE South 82° 33’ 40” East, 707.37 feet to a point for a corner; THENCE South 16° 50’ 50” West, 146.41 feet to the intersection with a line on the property described in Ordinance 84-98; THENCE North 86° 04’ 29” West, 681.98 feet to a point for a corner; THENCE South 2° 28’ 38” West, 525.40 feet to a point for a corner; THENCE South 86° 26’ 40” East, 1423.30 feet to a point for a corner; THENCE South 2° 48’ 25” West, 2127.77 feet to a point for a corner; THENCE South 2° 13’ 47” West, 706.64 feet to a point for a corner; THENCE South 64° 50’ 47” East, 407.19 feet to an intersection with a line on the property described in Ordinance 85-210, Tract 1; THENCE South 00° 45’ 09” West to a point of intersection with a line on the property described in Ordinance 86-129, said point being the northeast corner of said tract; THENCE Northwesterly along a line 250 feet northeasterly of the center line of FM 426 on a series of courses and distance described in Ordinance 86-129 to a point of intersection with the east line of the property described in Ordinance 83-134; THENCE North 00° 05’ East, 1274.77 feet to a point for a corner; THENCE East, 15 feet to a point for a corner; THENCE North 00° 05’ East, 2255.94 to a point for a corner; THENCE South 89° 17’ West, 1444.17 feet along the south right-of-way line of Mills Road to a point for a corner, said point being the northwest corner of the property described in Ordinance 83-134 and the northeast corner of the property described in Ordinance 89-001; THENCE Westerly, 2944.96 feet along the south right-of-way line 0f Mills Road to a point in the centerline of Mayhill Road on the east line of the property described in Ordinance 65-43, Tract I; THENCE Northerly along the centerline of Mayhill Road to the Point of Beginning, containing approximately 1,162 acres. Exhibit 4 DH-12 Annexation Plan Ordinance Exhibit 5 Three- Year Annexation Schedule DH-7, DH-9 & DH-12 ActionDate Adoptionof3yearAnnexationPlan4/6/10 NoticeofIntenttoallpropertyowners,public/privateentities,railroad6/30/10 companiesandpostonwebsite CompleteInventoryofServicesandFacilitiesandmakeavailablefor11/24/10 publicinspection MakeServicePlanavailableforpublicinspection1/25/11 st 1PublicHearing2/1/11 nd 2PublicHearing2/15/11 rd 3PublicHearing2/17/11 NegotiationsforProvisionofServices7/6/11 10/13/11 FinalServicePlan8/26/11 (DH7andDH9) RequestArbitrationregardingnegotiations10/13/11 (DH12) Arbitration(DH12)10/17/12 10/18/12 ArbitratorAward10/30/12 FinalServicePlan(DH12)11/1/12 (DH12) CityCouncilAdoptionoftheNonAnnexationAgreementsOrdinances12/18/12 st 1ReadingoftheAnnexationOrdinance3/5/13 PublicationofAnnexationOrdinances3/10/13 nd 2ReadingoftheAnnexationOrdinance4/9/13 Exhibit 6 DH-12 Non Annexation Agreements Ordinance ORDINANCE NO. __________ AN ORDINANCE PROVIDING FOR ACCEPTANCE OF ELIGIBLE NON-ANNEXATION AGREEMENTS FOR AGRICULTURAL, WILDLIFE MANAGEMENT OR TIMBERLAND USE PROPERTIES WITHIN AN AREA OF LAND ADJACENT TO AND ABUTTING THE EXISTING CITY LIMITS OF THE CITY OF DENTON, TEXAS, GENERALLY IDENTIFIED AS DH-12, CONSISTING OF APPROXIMATELY 1,154 ACRES OF LAND LOCATED SOUTH OF E. UNIVERSITY DRIVE, EAST OF N. MAYHILL ROAD, NORTH AND SOUTH OF BLAGG ROAD, NORTH AND SOUTH OF MILLS ROAD, AND EAST AND WEST OF S. TRINITY ROAD, AND MORE SPECIFICALLY IDENTIFIED IN EXHIBIT “A” ATTACHED HERETO; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, pursuant to Section 43.052, Subchapter C, Local Government Code, a home rule city is authorized to annex an area identified in an annexation plan, beginning on the third anniversary of the date the annexation plan was adopted; and WHEREAS, the City desires to pursue annexation of DH-12, as hereinafter described which area was placed in a “Three Year Plan” on April 6, 2010; and WHEREAS, Section 43.035, Subchapter B, Local Government Code requires the City to make offers of non-annexation development agreements to the owners of all properties which have been appraised for ad valorem tax purposes as land for agricultural, wildlife management or timberland within the area to be annexed; and WHEREAS, under a non-annexation agreement between an eligible property owner and the City, the land subject to the agreement retains its extraterritorial status and the owners of such land must abide by the City’s development regulations as if such land were within the City limits, as provided further in such agreement; and WHEREAS, the city has offered said non-annexation agreements for a seven year term, in light of the rapid growth of the Denton area, the need to assure orderly growth, and the inadequate land area currently within the Denton city limits; and WHEREAS, the owners of some eligible properties have executed such non-annexation agreements, and yet other owners to whom notices were sent did not execute the agreements within the allotted period of time, thereby declining the City’s offer; and WHEREAS, the Denton City Council deems it to be in the best interests of the citizens of the City of Denton to enter into such non-annexation agreements with eligible property owners who timely submitted non-annexation agreements; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. The area of land which abuts and is adjacent to the existing corporate limits of the City of Denton, Texas, known as DH-12, is described in Exhibit “A”, attached hereto and incorporated herein, and depicted in Exhibit “B,” attached hereto and incorporated herein (except that if there is conflict between the Exhibits, “A” shall control). SECTION 3. Certain non-annexation agreements relating to eligible properties within that parcel identified as DH-12, as described and depicted in Exhibits “A” and “B”, which have been properly executed by the owners of those properties and which have legally sufficient property descriptions, are hereby approved by the City of Denton and are attached hereto and incorporated herein by reference as Exhibits “C-1” through “C-27”. SECTION 4. The City Manager is authorized and directed to sign the non-annexation agreements contained within Exhibits “C-1” through “C-27” for and on behalf of the City of Denton as a ministerial act, but with an effective date of this Council’s action on same. The City Manager shall further arrange forthwith for the recordation of non-annexation agreements in the real property records of Denton County, Texas. SECTION 5. In the event the City Council does not annex that parcel identified as DH- 12, the City Manager is authorized to rescind the City’s action accepting said non-annexation agreements within six months of the effective date of this Ordinance should any property owners subject to the agreements so desire. SECTION 6. Should any paragraph, section, sentence, phrase, clause or word of this Ordinance be declared unconstitutional or invalid for any reason, the remainder of this Ordinance shall not be affected thereby. SECTION 7. This Ordinance shall take effect immediately on its passage. AND IT IS SO ORDERED. Passed by the City Council reading this 18th day of December, 2012. __________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: __________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 DEPARTMENT: Denton Municipal Electric (DME) ACM: Howard Martin, 349-8232 ________________________________________________________________________ SUBJECT: Consider adoption of an ordinance approving a Letter Amendment to the Transmission Operator Consulting Services Agreement dated January 1, 2012, wherein the City of Denton, Texas is continuing the services of Garland Power & Light as its Transmission Operator; authorizing the expenditure of funds therefor; providing an effective date. The Public Utilities Board recommended approval (7-0). BACKGROUND: North American Electric Reliability Corporation (NERC) standards require that entities that operate Bulk Electric System transmission systems and/or components be registered as Transmission Operators. Performance to those standards is monitored and enforced by Texas Reliability Entity (TRE). Due to the assets DME owns and operates, DME must be registered as three different NERC Transmission entities: Transmission Planner (TP) – registered on August 20, 2010 Transmission Owner (TO) – registered on August 20, 2010 Transmission Operator (TOP) – registered on January 1, 2012; presently working on certification with the TRE Registration as a TOP is a two-part process: (1) Certification by TRE based on results of an on-site assessment; and (2) Registration with NERC for the TOP function. DME is scheduled for a TRE Compliance Audit on April 1, 2013. Another year of combined TOP operations with GP&L will allow DME to grow and mature its new TOP registration to provide a stronger, more secure TOP function. DME has made very good progress with developing a new TOP function in a complex regulatory environment with newly NERC-certified System Operators and NERC- certified supervisory and management staff. DME contracted with GP&L beginning on January 1, 2012 for GP&L to perform certain TOP functions. It would be operationally cumbersome and impractical to utilize any other Transmission Operator in ERCOT, especially since DME is already dealing closely with GP&L where DME interconnects with TMPA. 1 GP&L is the present Transmission Operator for TMPA, which interconnects with the DME system. GP&L already has Supervisory Control and Data Acquisition (SCADA) equipment in place to monitor those assets. For this reason it makes sense to retain and extend the services of GP&L, temporarily to operate DME’s transmission system. OPTIONS: 1. Approve the Letter Amendment to the Agreement with GP&L at the lower amended rate of $15,000 per month 2. Allow the existing Agreement to continue at a rate of $39,000/month RECOMMENDATION: DME recommends approval of the Letter Agreement with GP&L at the amended rate of $15,000/month for a one-year period. ESTIMATED SCHEDULE OF PROJECT: Extended Agreement to become effective on January 1, 2013. PRIOR ACTION/REVIEW (Council, Boards, Commissions): Original Agreement presented to the Public Utilities Board on September 26, 2011 and recommended for approval. Original Agreement approved by City Council on October 4, 2011. Letter Amendment presented to the PUB on December 10, 2012 and recommended for approval (7-0). FISCAL INFORMATION: $15,000 per month for 12 months, NTE $180,000. Funds are budgeted for this function. EXHIBITS: 1. Ordinance 2. Letter Amendment thereto Respectfully submitted, ________________________________ Phil Williams General Manager Denton Municipal Electric Prepared by: Galen L. Gillum Compliance Manager Denton Municipal Electric 2 EXHIBIT1 ORDINANCE NO. 2012-_______ AN ORDINANCE APPROVING A LETTER AMENDMENT TO THE TRANSMISSION OPERATOR CONSULTING SERVICES AGREEMENT DATED JANUARY 1, 2012 WHEREIN THE CITY OF DENTON, TEXAS IS CONTINUING THE SERVICES OF GARLAND POWER & LIGHT AS ITS TRANSMISSION OPERATOR; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, North American Electric Reliability Corporation (“NERC”) standards require that entities, such as Denton Municipal Electric, that operate Bulk Electric System transmission systems and/or components be registered as Transmission Operators; performance of these standards is monitored and enforced by the Texas Reliability Entity (“TRE”); and WHEREAS, due to the assets that DME owns and operates, DME must be registered as three different NERC Transmission entities, one of which is that of ‘Transmission Operator (“TOP)”; registration as a TOP is a two-part process which involves both certification by TRE that is based upon the results of an on-site assessment, and registration with the NERC for the TOP function; and th WHEREAS, on the 18 day of October, 2011, the City Council approved the execution of a Transmission Operator Consulting Services Agreement (the “Agreement”), wherein the City of Denton, Texas contracted with the City of Garland, Texas (Garland Power & Light) for personal services related to the transmission operator functions of Denton Municipal Electric, by Ordinance No. 2011-202; and WHEREAS, said Agreement by its terms expires on December 31, 2012, and the City of Denton, Texas (DME) and the City of Garland (GP&L) have reached an agreement and proposed an extension of the terms of said Agreement for a period of one year; the Staff having recommended, and the Public Utilities Board having approved the “Letter Amendment to the Transmission Operator Consulting Services Agreement” (the “Letter Amendment”) unanimously at its meeting of December 10, 2012, and recommending to the Council that it should be approved; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The Council hereby authorizes the City Manager or his designee, to execute the “Letter Amendment to the Transmission Operator Consulting Services Agreement” by and between the City of Denton, Texas and the City of Garland, Texas (Garland Power & Light) providing for transmission operator consulting services to be rendered by Garland Power & Light for Denton Municipal Electric; said Letter Amendment is attached hereto and incorporated herewith by reference. SECTION 2. The Council hereby delegates the authority to expend funds regarding said Letter Amendment to the City Manager, or his designee. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of December, 2012. ________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: _________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: ________________________________ EXHIBIT2 PROPRIETARY AND CONFIDENTIAL November 19, 2012 Phil Williams, General Manager Denton Municipal Electric 1569 Spencer Rd. Denton, Texas 76205 Re: Letter Amendment to the Transmission Operator Consulting Services Agreement dated January 1, 2012 Dear Phil, Effective January 1, 2013, the City of Denton, Texas, a municipal corporation, operating its municipally-owned electric utility under the name of “Denton Municipal Electric” (hereafter “Denton”); and the City of Garland, Texas, a municipal corporation, operating its municipally- owned electric utility under the name of “Garland Power and Light” (hereafter “Garland”) each agree to amend the “Transmission Operator Consulting Services Agreement” dated January 1, 2012, as follows: -Section 3(A) “Cost Reimbursement” shall be amended to read as follows: (A)Denton agrees to pay Garland as follows: A monthly fee of $15,000 payable on or before the last day of the month for each month, beginning with January 2013, for a term of one year as amended in Section 5. Term and Termination (A) herein. -Section 3(A)(1)(2)(3)(4) “Cost Reimbursement” shall be deleted entirely and replaced with Section 3(A), as amended above. -Section 5. “Term and Termination” shall be amended to read as follows: (A)This Agreement shall have a term of one year commencing with the Effective Date of this Amendment, January 1, 2013. (B)This Agreement may, at the option of Denton, be renewed for an additional one year term by providing not less than fifteen days written notice of renewal to Garland prior to the end of the Amended term stated in Section 5(A). EXECUTED on the dates indicated below, but deemed to be effective as of the Effective Date provided above. 1 “DENTON” “GARLAND” CITY OF DENTON, TEXAS CITY OF GARLAND, TEXAS By: ______________________ By: ________________________ Name: ___________________ Name: ______________________ Title: ____________________ Title: _______________________ Date: ____________________ Date: _______________________ ATTEST: JENNIFER WALTERS, CITY SECRETARY By: ________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: __________________________ 2 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 DEPARTMENT: Utilities ACM: Howard Martin, 349-8232 ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, authorizing the City Manager, or his designee, to execute a Contract of Sale (herein so called), as attached hereto and made a part hereof as Exhibit “A” by and between the City of Denton (the “City”), and Haeussler Properties, LP, a Texas limited partnership (the “Seller”), contemplating the sale by Seller and purchase by City of a 1.968 acre tract of land, more or less, being generally located in the 1200 block of South Mayhill Road in the M.E.P. & P.R.R. CO. Survey, Abstract No. 927 in the City of Denton, Denton County, Texas (the “Property Interests”); for the Purchase Price of Two Hundred Sixty Three Thousand and No/100 Dollars ($263,000.00); authorizing the City Manager, or his designee, to execute and deliver any and all other documents necessary to accomplish the closing of the transaction contemplated by the Contract of Sale; authorizing the expenditure of funds therefor; and providing an effective date.(Parcel M120 – Mayhill Road Widening and Improvements project) BACKGROUND The City Council considered and approved an offer (May 15, 2012) and final offer (August 21, 2012) to purchase the captioned land rights, both offers being for the purchase price of 00 $211,500.. The Owner has recently engaged in formal negotiation dialogue and counters with the captioned purchase amount, as settlement of the matter. Approval of the ordinance under consideration authorizes staff to proceed to closing the purchase transaction with the property owner. 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) May 15, 2012 (initial offer to purchase Ordinance 2012-107) August 21, 2012 (final offer to purchase Ordinance 2012-181) 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 $263,000. 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 \2012 city council items\december 18, 2012\mayhill - m120 - s:\water engineering\engr\real estate\projects\row shared\city council haeussler purchase\cao docs\haeussler counter offer ord.doc ORDINANCE NO. _________________ AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE A CONTRACT OF SALE (HEREIN SO CALLED), AS ATTACHED HERETO AND MADE A PART HEREOF AS EXHIBIT “A”, BY AND BETWEEN THE CITY OF DENTON (THE “CITY”), AND HAEUSSLER PROPERTIES, LP, A TEXAS LIMITED PARTNERSHIP (THE “SELLER”), CONTEMPLATING THE SALE BY SELLER AND PURCHASE BY CITY OF A 1.968 ACRE TRACT OF LAND, MORE OR LESS, BEING GENERALLY LOCATED IN THE 1200 BLOCK OF SOUTH MAYHILL ROAD IN THE M.E.P. & P.R.R. CO. SURVEY, ABSTRACT NO. 927 IN THE CITY OF DENTON, DENTON COUNTY, TEXAS (THE “PROPERTY INTERESTS”); FOR THE PURCHASE PRICE OF TWO HUNDRED SIXTY THREE THOUSAND AND NO/100 DOLLARS ($263,000.00); AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE AND DELIVER ANY AND ALL OTHER DOCUMENTS NECESSARY TO ACCOMPLISH CLOSING OF THE TRANSACTION CONTEMPLATED BY THE CONTRACT OF SALE; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City made an Initial Offer (herein so called) to purchase the Property Interests, pursuant to Ordinance No. 2012-107, passed and approved by the City Council of the City of Denton on May 15, 2012; WHEREAS, the City made a Final Offer (herein so called) to purchase the Property Interests, pursuant to Ordinance No. 2012-181, passed and approved by the City Council of the City of Denton on August 21, 2012; WHEREAS, Seller has made a counteroffer to the Final Offer of City; WHEREAS, City is amenable to the counteroffer, and finds that it is in its best interest to agree to same; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager, or his designee, is hereby authorized to execute (i) the Contract of Sale, by and between the City of Denton, as buyer and Haeussler Properties, LP, a Texas limited partnership, as seller, in the form attached hereto and made a part hereof as Exhibit “A”, with a purchase price of $263,000.00, plus certain costs as prescribed in the Contract of Sale; and (ii) any and all other documents necessary for closing the transaction contemplated by the Contract of Sale. SECTION 2. The City Manager is hereby authorized to make expenditures in a ccordance with the terms set forth in the Contract of Sale. SECTION 3. If any section, article, paragraph, sentence, phrase, clause or word in this ordinance, or application thereof to any persons or circumstances, is held invalid or unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance; the City Council declares that it would have ordained such remaining portion despite such invalidity, and such remaining portion shall remain in full force and effect. SECTION 4. 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 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 DEPARTMENT: Economic Development ACM: John Cabrales SUBJECT Hold a public hearing and consider adoption of an ordinance designating and describing the boundaries of a Tax Increment Reinvestment Zone Two for an industrial district of Denton, Texas; establishing the duration of the Zone; establishing a Tax Increment Fund; establishing a Board of Directors for the Tax Increment Reinvestment Zone; making certain findings and other matters related thereto; and providing an effective date. BACKGROUND A Tax Increment Reinvestment Zone (TIRZ) is a tool that local governments can use to publicly finance needed structural improvements and enhance infrastructure within a defined area in order to stimulate private development and redevelopment. An ad valorem valuation base is established in the first year, and the revenue from the increased valuation from subsequent years is allocated to TIRZ development. The City enlisted the services of Schrader and Cline, a Dallas economic development consulting firm, to assist in establishing the TIRZ. The proposed second TIRZ consists of approximately 800 acres and is located north of Airport Road. This industrial area (Westpark) currently lacks the public infrastructure necessary to encourage development in thelargest industrially zoned area within the City. TIRZ District Valuation: The 2012 certified base value of TIRZ Two, according to the Denton Central Appraisal District (DCAD), is $119,458. The estimated revenue to be generated by the TIRZ is $14,275,430. These dollars reflect City of Denton and Denton County participation at 40% for a period of 25 years. TIRZ Board Structure: Staff recommends that the Council consider an eleven member TIRZ Board consisting of the nine Economic Development Partnership (EDP) board members plus one representative from Denton County and one member from the Developer, Rayzor Investments, LLP. This proposed board structure is recommended to streamline the process, as the same group of individuals would also be working on other incentive agreements for these projects. Board members will serve staggering terms not to exceed three consecutive terms. Project Plan: The following table describes the proposed projects outlined in the Project Plan PROJECT ESTIMATED COST Street Improvements $8,000,000 Utility / Drainage Improvements $5,000,000 Support for Industrial Projects $1,275,430 TOTAL $14,275,430 Agenda Information Sheet TIRZ Two December 18, 2012 Page 2 ESTIMATED SCHEDULE OF PROJECT The following represents the next steps of the project: Denton County considers Participation Agreement December 21, 2012 or January 8, 2013 If approved, the Council will appoint 9 of the 11 TIRZ Board January/ February members and designate the board Chair within 60 days or a 2013 reasonable time thereafter the passage of the Ordinance. The Board will meet to review and approve the final Project and February 2013 Financing Plans to present to the City Council for approval. The Board will also review and make a recommendation on the The City will notify the State Comptroller of the TIRZ establishment. February 2013 The TIRZ Board will provide an Annual Report to City Council and February 2014 Comptroller on the TIRZ fund and project activity, which is due 150 days following the end of the fiscal year. PRIOR ACTION/REVIEW The Economic Development Partnership Board discussed this proposal at eight meetings in 2012 and recommend approval of the TIRZ 9-0. City Council received a report on the TIRZ proposal at the July17, 2012, September 11, 2012 and December 7, 2012 (Closed Session) meetings. FISCAL INFORMATION It is estimated that the TIRZ would generate approximately $14,275,430 over a 25 year period for infrastructure improvements. The City and County would contribute $10,033,470 and $4,241,960 into the TIRZ fund, respectively. The City would retain $43,926,530 and the County would retain $18,862,910 over the life of the TIRZ. EXHIBITS Ordinance Preliminary Project Plan Preliminary Finance Plan and Feasibility Analysis Respectfully submitted: ______________________________________ Erica Sullivan, Economic Development Analyst Economic Development Department PROJECT PLAN DENTON TIRZ NO. 2 PRELIMINARY PRELIMINARY PRELIMINARY PROJECT PLAN October 2012 Tax Increment Reinvestment Zone No. 2 City of Denton, Texas George R. Schrader Larry D. Cline 4800 Broadway, Ste A Addison, TX 75001 972-661-1973 schcli@swbell.net PROJECT PLAN DENTON TIRZ NO. 2 PRELIMINARY October 2012 The City of Denton, Texas proposes to establish a Tax Increment Reinvestment Zone TIRZTIRZ to provide funds for public infrastructure to encourage accelerated development in thelargest industrially zoned area within the City. The TIRZ consists of approximately 800 acres and is more fully described in Project Plan Exhibit A. The City is creating this TIRZ to encourage accelerated development in this area of the City in an effort to stimulate new higher value, industrial development which would benefit and be incentivized from the proposed public infrastructure improvements. It is expected that the TIRZ will exist for twenty (25) years or the date when all project costs are paid, whichever comes first. As set forth in Section 311.011 of the Tax Increment Financing Act of the Texas Tax Code Ann., the Project Plan for Tax Increment Reinvestment Zone No. 2, Denton, Texas must and does include the following elements: 1.A map showing existing uses and conditions of real property in the TIRZ and a map showing proposed improvements to and proposed use of the property. The boundaries of the TIRZ are shown on the map labeled Project Plan Exhibit: B; Project Plan Exhibit: C shows existing land use within the TIRZ. Currently, the area is an industrial park that is generally undeveloped. Residential and multi- family development are not included in the list of eligible projects and TIRZ funds will not be used to reimburse the costs associated with any residential or multi-family development. Project Plan Exhibit: D1 lists and defines the public improvements being proposed for the TIRZ; Project Plan Exhibit: D2 illustrates the major public improvements being proposed in the TIRZ. Project Plan Exhibit: E shows anticipated Future Land Use within the TIRZ. 1 PROJECT PLAN DENTON TIRZ NO. 2 PRELIMINARY 2.Proposed changes of zoning ordinances, the master plan of the municipality, building codes, and other municipal ordinances. Any changes to codes, ordinances, or master plan as a result of the creation of the TIRZ will be made through the standard process and procedures of the City. 3.A list of estimated non-project costs. Non-project costs within the TIRZ are those infrastructure costs not paid for by the TIRZ. These costs will include, but are not limited to streets, utilities and drainage associated with residential and multi-family development. 4.A statement of a method of relocating persons to be displaced as a result of implementing the plan. Although not anticipated, in the process of developing the TIRZ, any relocation will be made through the standard process and procedures of the City. 2 PROJECT PLAN DENTON TIRZ NO. 2 PRELIMINARY EXHIBIT A Boundary Description TRACT No.1 BEGINNING at the southwest corner of the 9.27 acre T. Toby, Tract 4 and the north right-of- way line of Airport Road, the POINT OF BEGINNING; THENCE, north along the west boundary of the 9.27 acre T. Toby, Tract 4 to its northwest corner and the southwest boundary of the 41.629 acre T. Toby, Tract 3 (Denton Municipal Airport); THENCE, northwest along the southwest boundary of the 41.629 acre T. Toby, Tract 3 (Denton Municipal Airport) to its southwest corner and the east right-of-way of Sabre Road; THENCE, northwesterly along the east right-of-way of Sabre Road and the westerly boundary of the 41.629 acre T. Toby, Tract 3 (Denton Municipal Airport) and the 66.946 acre T. Toby, Tract 2 to the northwest corner of the 66.946 acre T. Toby, Tract 2; THENCE, east along the north boundary of the 66.946 acre T. Toby, Tract 2 to the southwest corner of the 148.5803 acre J. Scott, Tract 1; THENCE, north along the west boundary of the 148.5803 acre J. Scott, Tract 1 to its northwest corner and the south right-of-way of Jim Christal Road; THENCE, east along the north boundary of the 148.5803 acre J. Scott, Tract 1 to its northeast corner and the west right-of-way of Western Blvd.; THENCE, due east across Western Blvd. to its east right-of-way and the northwest corner of the 20.7207 acre J. Bacon, Tract 1; THENCE, east along the south right-of-way of Jim Christal Road and the north boundaries of the 20.7207 acre J. Bacon, Tract 1 and the 173.055 acre West Park Addition, Phase 2, Block A, Lot 2a to the southwest corner of the 24.9953 acre B.b.b, Tract 15-17; THENCE, north along the west boundaries of the 24.9953 acre B.b.b., Tract 15-17, the 39.999 acre B.b.b., Tract 18 and the 10 acre B.b.b, Tract 21a to the northwest corner of the 10 acre B.b.b, Tract 21a; THENCE, east and south along the north and east boundary of the 10 acre B.b.b, Tract 21a to its southeast corner and the north boundary of the 39.999 acre B.b.b, Tract 18; THENCE, east along the north boundary of the 39.999 acre B.b.b., Tract 18 to its northeast corner and the west boundary of the 43.3069 acre B.b.b, Tract 12-14; THENCE, north along the west boundaries of the 43.3069 acre B.b.b, Tract 12-14 and the 19.5738 acre B.b.b, Tract 11 to the northwest corner of the 19.5738 acre B.b.b, Tract 11 and the south right-of-way of US Highway 380; 3 PROJECT PLAN DENTON TIRZ NO. 2 PRELIMINARY THENCE, east along the north boundary of the 19.5738 acre B.b.b., Tract 11 and the south right- of-way of US Highway 380 to the northeast corner of the 19.5738 acre B.b.b, Tract 11; THENCE, southeasterly along the east boundaries of the 19.5738 acre B.b.b, Tract 11 and the 43.3069 acre B.b.b, Tract 12-14, continuing westerly along the south boundary of the 43.3069 acre B.b.b, Tract 12-14 to its southwest corner and the southeast corner of the 39.999 acre B.b.b, Tract 18; THENCE; west along the south boundary of the 39.999 acre B.b.b, Tract 18 to the northeast corner of the 24.9953 acre B.b.b., Tract 15-17; THENCE, south along the east boundary of the 24.9953 acre B.b.b., Tract 15-17 to its southeast corner and the north right-of-way of Jim Christal Road; THENCE, easterly along the north right-of-way of Jim Christal Road to the northwest corner of the 16.3051 acre J. Perry, Tract 1a; THENCE, northeasterly, south, east, north and east along the north boundary of the 16.3051 acre J. Perry, Tract 1a to its northeast corner; Thence, south along the east boundary of the 16.3051 acre J. Perry, Tract 1a to the northwest corner of the 18.3427 acre E. Puchalshi, Tract 295; THENCE, east along the north boundary of the 18.3427 acre E. Puchalski, Tract 295 to its northeast corner; THENCE, southeasterly along the east boundaries of the 18.3427 acre E. Puchalski, Tract 295 and the 10.347 acre E. Puchalski, Tract 295a to its southeast corner and the northeast corner of the 31.0 acre E. Puchalski, Tract 296; THENCE, southeasterly, west and south along the east boundary of the 31.0 acre E. Puchalski, Tract 296 to its southeast corner and the north boundary of the north part of the 31.305 acre E. Puchalski, Tracts 527, 528, and 529; THENCE, east along the north boundary of the north part of the 31.305 acre E. Puchalski, Tracts 527, 528, and 529 to its northeast corner; Thence, southwesterly along the east boundary and west along the south boundary of the north part of the 31.305 acre E. Puchalski, Tracts 527, 528, and 529 to the east right-of-way of Precision Road; THENCE, west across Precision Road to its west right-of-way and the southeast corner of the 173.055 acre West Park Addition, Phase 2, Block A, Lot 2a; THENCE, west along the south boundary of the 173.055 acre West Park Addition, Phase 2, Block A, Lot 2a to the northeast corner of the 5.922 acre West Park Addition, Phase 2, Block A, Lot 3; 4 PROJECT PLAN DENTON TIRZ NO. 2 PRELIMINARY THENCE, south and west along the east and south boundary of the 5.922 acre West Park Addition, Phase 2, Block A, Lot 3, continuing west along the south boundary of the 6.889 acre R. D. Wells Interchange, Block 1, Lot 1 (City of Denton) to the east boundary of the 173.055 acre West Park Addition, Phase 2, Block A, Lot 2a; THENCE, south along the east boundary of the 173.055 acre West Park Addition, Phase 2, Block A, Lot 2a to its southeast corner and the north right-of-way of Airport Road; THENCE, west along the north right-of-way of Airport Road and the south boundary of the 173.055 acre West Park Addition, Phase 2, Block A, Lot 2a to its southwest corner and the east right-of-way of Western Blvd.; THENCE, west across Western Blvd. to its west right-of-way and the southeast corner of the 66.946 acre T. Toby, Tract 2; THENCE, west along the north right-of-way of Airport Road and the south boundaries of the 66.946 acre T. Toby, Tract 2, the 41.629 acre T. Toby, Tract 3 (Denton Municipal Airport) and the 9.27 acre T. Toby, Tract 4 and the POINT OF BEGINNING. TRACT No. 2 The entire south part of the 31.305 acre E. Puchalski; Tract 527, 528, and 529. TRACT No.1 and TRACT No. 2 contain a total of approximately 848.8 acres of which approximately 48.5 acres are municipally owned. 5 PROJECT PLAN DENTON TIRZ NO. 2 PRELIMINARY EXHIBIT B TIRZ Boundary 6 PROJECT PLAN DENTON TIRZ NO. 2 PRELIMINARY EXHIBIT C Existing Land Use 7 PROJECT PLAN DENTON TIRZ NO. 2 PRELIMINARY EXHIBIT D1 Project Plan PROJECT ESTIMATED COST Street Improvements $8,000,000 Utility / Drainage Improvements $5,000,000 Support for Industrial Projects $1,275,430 TOTAL $14,275,430 Project Definitions Street Improvements: include the construction and reconstruction of paving improvements capable of handling heavy truck traffic and that provide common turning radius for semi trailers and may consist of, but are not limited to, primary and secondary major arterial thoroughfares and collector streets that will provide improved access within the industrial park, to State highways, and Interstate 35. Utilities and Drainage Improvements: includes the extension of water and wastewater lines along the right-of-ways of the streets within the District. Water and wastewater lines will be built to adequately accommodate the District at build-out and its anticipated industrial users. A number of properties in the district are situated in the floodplain. Adequate stormwater drainage will be built to accommodate the maximum use of the land and comply with the drainage standards in the Denton Development Code. Industrial Projects: may include grants, loans and services for public and private development. Eligible TIRZ project costs are not limited to public uses and may also include projects that stimulate economic development. Chapter 380 of the Local Government Code grants municipalities in Texas the authority to offer grants and loans of public funds to stimulate economic development. EXHIBIT D2 8 PROJECT PLAN DENTON TIRZ NO. 2 PRELIMINARY Project Plan Projects EXHIBIT E 9 PROJECT PLAN DENTON TIRZ NO. 2 PRELIMINARY Future Land Use 10 PRELIMINARY PRELIMINARY FINANCE PLAN October 2012 Tax Increment Reinvestment Zone No. 2 City of Denton, Texas George R. Schrader Larry D. Cline 4800 Broadway, Ste A Addison, TX 75001 972-661-1973 schcli@swbell.net October 2012 The Financing Plan provides information on the projected monetary impact that the formation of the Tax Increment Reinvestment Zone (TIRZ) could have on the property described in Finance Plan Exhibit: A and shown in Finance Plan Exhibit: B. It will also describe how that impact can be utilized to enhance the area and region through leveraging the resources of each entity that participates in the project. Below is a summary of the Financing Plan items required by law. 1. The proposed public improvements in the TIRZ may include: Capital costs, including the actual costs of the construction of public works, public improvements, new buildings, structures, and fixtures; and the actual costs of the acquisition of land and the clearing and grading of land; Financing costs, including all interest paid to holders of evidences of indebtedness or other obligations issued to pay for project costs and any premium paid over the principal amount of the obligations because of the redemption of the obligations before maturity; Any real property assembly costs; Professional service costs, including those incurred for architectural, planning, engineering, and legal advise and services; Any relocation costs; Organizational costs, including costs of conducting environmental impact studies or other studies, the cost of publicizing the creation of the TIRZ, and the cost of implementing the project plan for the TIRZ; Interest before and during construction and for one year after completion of construction, whether or not capitalized; The amount of any contributions made by the municipality from general revenue for the implementation of the project plan; Imputed administrative costs, including reasonable charges for the time spent by employees of the municipality in connection with the implementation of a project plan; The cost of operating the TIRZ and project facilities; and Payments made at the discretion of the governing body of the municipality that the municipality finds necessary or convenient to the creation of the TIRZ or to the implementation of the project plans for the TIRZ. The specific capital improvement projects anticipated to be undertaken in the Denton TIRZ No. 2, are included in Finance Plan Exhibit: C. FINANCE PLAN DENTON TIRZ NO. 2 PRELIMINARY 2. Estimated Project Cost of TIRZ, including administrative expenses . Project costs are estimated at approximately $14.75million dollars. Specific cost estimates are included in Finance Plan Exhibit: C. 3. Economic Feasibility Study. An economic feasibility analysis has been completed and is included as Finance Plan Exhibit: D. 4. The estimated amount of bonded indebtedness to be incurred. Initial project costs are to be advanced by a Developer. The City of Denton may consider issuing bonds when tax increment funds exceed the amount necessary to support debt service to reimburse the Developer. 5.The time when related costs or monetary obligations are to be incurred. Please refer to Finance Plan Exhibit: C for details regarding the type of improvement costs anticipated. The Developer intends to begin construction of the projects in 2013, with a completion date of 2013 or 2014. Annual TIRZ reimbursement payments will be provided to the Developer once the minimum improvements are completed. 6.A description of the methods of financing all estimated project costs and the expected sources of revenue to finance or pay project costs including the percentage of tax increment to be derived from the property taxes of each taxing unit on real property in the TIRZ. Project costs will be financed through loans advanced by developers or by the use of tax increment funds received on a pay-as-you-go basis. No new debt is envisioned at the beginning of the TIRZ term, but bonds may be issued at a later date when adequate tax increment has been created to the support debt service. The revenue sources will be the real property taxes captured by the TIRZ, which will account for 100% of revenues used to fund project costs or bond debt service. For the Financial Plan, the City and Denton County will participate at a rate of 40% for twenty-five (25) years. 7.The current total assessed value of taxable real property in the TIRZ. The current assessed base value of the taxable real property in the TIRZ using the 2012 certified values provided by the Denton Central Appraisal District is $ 119,458. 8.The estimated assessed value of the improvements in the TIRZ during each year of its existence. The estimated assessed value of the improvements in the TIRZ per year is listed in the following FINANCE PLAN TABLE 1. TABLE 1 Assessed Real Property Value Including Anticipated New Development Years 2012-2037 3 FINANCE PLAN DENTON TIRZ NO. 2 PRELIMINARY TOTAL TOTAL TOTAL ROLLBACCUMULATIVE DEVELOP-ANNUAL CUMULATIVE YEAR LAND K AND MENT VALUATION VALUATION$ $M ROLLBACK $M $M $M 2012 2013 $0.72 $0.72 $0.72 $1.44 $2.16 2014 $11.59 $0.72 $12.31 $13.03 $2.16 $14.47 $12.31 2015 $11.59 $0.72 $25.34 $2.88 $27.50 $12.31 2016 $11.59 $0.72 $37.65 $3.60 $40.53 $12.31$3.60 2017 $11.59 $0.72 $49.96 $53.56 $12.31$3.60 2018 $11.59 $0.72 $62.27 $65.87 $12.31$3.60 2019 $11.59 $0.72 $74.58 $78.18 $12.31$3.60 2020 $11.59 $0.72 $86.89 $90.49 $12.31$3.60 2021 $11.59 $0.72 $99.20 $102.80 $12.31$3.60 2022 $11.59 $0.72 $111.51 $115.11 $12.31$3.60 2023 $11.59 $0.72 $123.82 $127.42 $12.31$3.60 2024 $11.59 $0.72 $136.13 $139.73 $12.31$3.60 2025 $11.59 $0.72 $148.44 $152.04 $12.31$3.60 2026 $11.59 $0.72 $160.75 $164.35 $12.31$3.60 2027 $11.59 $0.72 $173.06 $176.66 $12.31$3.60 2028 $11.59 $0.72 $185.37 $188.97 $12.31$3.60 2029 $11.59 $0.72 $197.68 $201.28 $12.31$3.60 2030 $11.59 $0.72 $209.99 $213.59 $12.31$3.60 2031 $11.59 $0.72 $222.30 $225.90 $12.31$3.60 2032 $11.59 $0.72 $234.61 $238.21 $12.31$3.60 2033 $11.59 $0.72 $246.92 $250.52 $12.31$3.60 2034 $11.59 $0.72 $259.23 $262.83 $12.31$3.60 2035 $11.59 $0.72 $271.54 $275.14 $12.31$3.60 2036 $11.59 $0.72 $283.85 $287.45 TOTAL $266,570,000 $17,280,000 $283,850,000 $82,080,000 4 FINANCE PLAN DENTON TIRZ NO. 2 PRELIMINARY The estimated annual incremental funds available from future development in the TIRZ are listed in the following table. TABLE 2 Annual Incremental Funds Provided for TIRZ No. 2 Years 2012-2037 CUMULATIVE CITY COUNTY TOTAL TIRZ TIRZ YEAR CONTRIBUTION CONTRIBUTION CONTRIBUTIONS CONTRIBUTIONS $K $K $K $K 2012 2013 2014 $5.97 $0.82 $6.79 $6.79 2015 $41.92 $14.75 $56.67 63.46 2016 $77.87 $28.68 $106.55 $170.01 2017 $113.81 $42.60 $156.41 $326.42 2018 $147.78 $56.53 $204.31 $530.73 2019 $181.74 $70.46 $252.20 $782.93 2020 $215.70 $84.39 $300.09 $1,083.02 2021 $260.52 $108.74 $369.26 $1,452.28 2022 $295.96 $124.15 $420.11 $1,872.39 2023 $331.40 $139.55 $470.95 $2,343.34 2024 $366.84 $154.96 $521.80 $2,865.14 2025 $402.28 $170.36 $572.64 $3,437.78 2026 $437.72 $185.77 $623.49 $4,061.27 2027 $473.16 $201.17 $674.33 $4,735.60 2028 $508.60 $216.58 $725.18 $5,460.78 2029 $544.04 $231.98 $776.02 $6,236.80 2030 $579.48 $247.39 $826.87 $7,063.67 2031 $614.92 $262.79 $877.71 $7,941.38 2032 $650.36 $278.20 $928.56 $8,869.94 2033 $685.80 $293.61 $979.41 $9,849.35 2034 $721.24 $309.01 $1,030.25 $10,879.60 2035 $756.68 $324.42 $1,081.10 $11,960.70 2036 $792.12 $339.82 $1,131.94 $13,092.64 2037 $827.56 $355.23 $1,182.79 $14,275.43 TOTAL $10,033,470 $4,241,960 $14,275,430 2012 TIRZ CONTRIBUTION TAX RATE / $100 VALUATION Tax Rate / Years 1 10 Years 11-25 $100 Valuation City of Denton $0.6897500 $0.2759000 $0.2879000 Denton County $0.2828670 $0.1131468 $0.1251468 5 FINANCE PLAN DENTON TIRZ NO. 2 PRELIMINARY 9.The duration of the TIRZ: The TIRZ was created in 2012. It is proposed that the TIRZ exist for twenty-five (25) years with termination of the TIRZ set as 2038 or the date when all project costs are paid and any debt is retired, whichever comes first. 6 FINANCE PLAN DENTON TIRZ NO. 2 PRELIMINARY EXHIBIT A Boundary Description TRACT No.1 BEGINNING at the southwest corner of the 9.27 acre T. Toby, Tract 4 and the north right-of-way line of Airport Road, the POINT OF BEGINNING; THENCE, north along the west boundary of the 9.27 acre T. Toby, Tract 4 to its northwest corner and the southwest boundary of the 41.629 acre T. Toby, Tract 3 (Denton Municipal Airport); THENCE, northwest along the southwest boundary of the 41.629 acre T. Toby, Tract 3 (Denton Municipal Airport) to its southwest corner and the east right-of-way of Sabre Road; THENCE, northwesterly along the east right-of-way of Sabre Road and the westerly boundary of the 41.629 acre T. Toby, Tract 3 (Denton Municipal Airport) and the 66.946 acre T. Toby, Tract 2 to the northwest corner of the 66.946 acre T. Toby, Tract 2; THENCE, east along the north boundary of the 66.946 acre T. Toby, Tract 2 to the southwest corner of the 148.5803 acre J. Scott, Tract 1; THENCE, north along the west boundary of the 148.5803 acre J. Scott, Tract 1 to its northwest corner and the south right-of-way of Jim Christal Road; THENCE, east along the north boundary of the 148.5803 acre J. Scott, Tract 1 to its northeast corner and the west right-of-way of Western Blvd.; THENCE, due east across Western Blvd. to its east right-of-way and the northwest corner of the 20.7207 acre J. Bacon, Tract 1; THENCE, east along the south right-of-way of Jim Christal Road and the north boundaries of the 20.7207 acre J. Bacon, Tract 1 and the 173.055 acre West Park Addition, Phase 2, Block A, Lot 2a to the southwest corner of the 24.9953 acre B.b.b, Tract 15-17; THENCE, north along the west boundaries of the 24.9953 acre B.b.b., Tract 15-17, the 39.999 acre B.b.b., Tract 18 and the 10 acre B.b.b, Tract 21a to the northwest corner of the 10 acre B.b.b, Tract 21a; THENCE, east and south along the north and east boundary of the 10 acre B.b.b, Tract 21a to its southeast corner and the north boundary of the 39.999 acre B.b.b, Tract 18; THENCE, east along the north boundary of the 39.999 acre B.b.b., Tract 18 to its northeast corner and the west boundary of the 43.3069 acre B.b.b, Tract 12-14; THENCE, north along the west boundaries of the 43.3069 acre B.b.b, Tract 12-14 and the 19.5738 acre B.b.b, Tract 11 to the northwest corner of the 19.5738 acre B.b.b, Tract 11 and the south right-of-way of US Highway 380; THENCE, east along the north boundary of the 19.5738 acre B.b.b., Tract 11 and the south right-of-way of US Highway 380 to the northeast corner of the 19.5738 acre B.b.b, Tract 11; 7 FINANCE PLAN DENTON TIRZ NO. 2 PRELIMINARY THENCE, southeasterly along the east boundaries of the 19.5738 acre B.b.b, Tract 11 and the 43.3069 acre B.b.b, Tract 12-14, continuing westerly along the south boundary of the 43.3069 acre B.b.b, Tract 12-14 to its southwest corner and the southeast corner of the 39.999 acre B.b.b, Tract 18; THENCE; west along the south boundary of the 39.999 acre B.b.b, Tract 18 to the northeast corner of the 24.9953 acre B.b.b., Tract 15-17; THENCE, south along the east boundary of the 24.9953 acre B.b.b., Tract 15-17 to its southeast corner and the north right-of-way of Jim Christal Road; THENCE, easterly along the north right-of-way of Jim Christal Road to the northwest corner of the 16.3051 acre J. Perry, Tract 1a; THENCE, northeasterly, south, east, north and east along the north boundary of the 16.3051 acre J. Perry, Tract 1a to its northeast corner; Thence, south along the east boundary of the 16.3051 acre J. Perry, Tract 1a to the northwest corner of the 18.3427 acre E. Puchalshi, Tract 295; THENCE, east along the north boundary of the 18.3427 acre E. Puchalski, Tract 295 to its northeast corner; THENCE, southeasterly along the east boundaries of the 18.3427 acre E. Puchalski, Tract 295 and the 10.347 acre E. Puchalski, Tract 295a to its southeast corner and the northeast corner of the 31.0 acre E. Puchalski, Tract 296; THENCE, southeasterly, west and south along the east boundary of the 31.0 acre E. Puchalski, Tract 296 to its southeast corner and the north boundary of the north part of the 31.305 acre E. Puchalski, Tracts 527, 528, and 529; THENCE, east along the north boundary of the north part of the 31.305 acre E. Puchalski, Tracts 527, 528, and 529 to its northeast corner; Thence, southwesterly along the east boundary and west along the south boundary of the north part of the 31.305 acre E. Puchalski, Tracts 527, 528, and 529 to the east right-of-way of Precision Road; THENCE, west across Precision Road to its west right-of-way and the southeast corner of the 173.055 acre West Park Addition, Phase 2, Block A, Lot 2a; THENCE, west along the south boundary of the 173.055 acre West Park Addition, Phase 2, Block A, Lot 2a to the northeast corner of the 5.922 acre West Park Addition, Phase 2, Block A, Lot 3; THENCE, south and west along the east and south boundary of the 5.922 acre West Park Addition, Phase 2, Block A, Lot 3, continuing west along the south boundary of the 6.889 acre R. D. Wells Interchange, Block 1, Lot 1 (City of Denton) to the east boundary of the 173.055 acre West Park Addition, Phase 2, Block A, Lot 2a; 8 FINANCE PLAN DENTON TIRZ NO. 2 PRELIMINARY THENCE, south along the east boundary of the 173.055 acre West Park Addition, Phase 2, Block A, Lot 2a to its southeast corner and the north right-of-way of Airport Road; THENCE, west along the north right-of-way of Airport Road and the south boundary of the 173.055 acre West Park Addition, Phase 2, Block A, Lot 2a to its southwest corner and the east right-of-way of Western Blvd.; THENCE, west across Western Blvd. to its west right-of-way and the southeast corner of the 66.946 acre T. Toby, Tract 2; THENCE, west along the north right-of-way of Airport Road and the south boundaries of the 66.946 acre T. Toby, Tract 2, the 41.629 acre T. Toby, Tract 3 (Denton Municipal Airport) and the 9.27 acre T. Toby, Tract 4 and the POINT OF BEGINNING. TRACT No. 2 The entire south part of the 31.305 acre E. Puchalski; Tract 527, 528, and 529. TRACT No.1 and TRACT No. 2 contain a total of approximately 848.8 acres of which approximately 48.5 acres are municipally owned. 9 FINANCE PLAN DENTON TIRZ NO. 2 PRELIMINARY EXHIBIT B Property Boundary Map 10 FINANCE PLAN DENTON TIRZ NO. 2 PRELIMINARY EXHIBIT C Project Plan PROJECT ESTIMATED COST, $M Street Improvements $8,000,000 Utilities and Drainage $5,000,000 Industrial Projects $1,275,430 TOTAL $14,275,430 Project Definitions Street Improvements: includes the construction and reconstruction of paving improvements capable of handling heavy truck traffic and that provide common turning radius for semi trailers and may consist of, but are not limited to, primary and secondary major arterial thoroughfares and collector streets that will provide improved access within the industrial park, to State highways, and Interstate 35. Utilities and Drainage: includes the extension of water and wastewater lines along the right-of-ways of the streets within the District. Water and wastewater lines will be built to adequately accommodate the District at build-out and its anticipated industrial users. A number of properties in the district are situated in the floodplain. Adequate stormwater drainage will be built to accommodate the maximum use of the land and comply with the drainage standards in the Denton Development Code. Industrial Projects: may include grants, loans and services for public and private development. Eligible TIRZ project costs are not limited to public uses and may also include projects that stimulate economic development. Chapter 380 of the Local Government Code grants municipalities in Texas the authority to offer grants and loans of public funds to stimulate economic development. 11 PRELIMINARY FEASIBILITY ANALYSIS (EXHIBIT D OF THE FINANCE PLAN) October 2012 Tax Increment Reinvestment Zone No. 2 City of Denton, Texas George R. Schrader Larry D. Cline 4800 Broadway, Ste A Addison, TX 75001 972-661-1973 schcli@swbell.net INDEX Page Index 1 Forward 2 Section I: HISTORY 3 Section II: CURRENT CONDITION / SITUATION 4 Section III: TAX INCREMENT ANALYSIS 6 Section IV: TABLES 11 TABLE 1 Development Valuation Increase 12 TABLE 2 Land Valuation Increase 13 TABLE 3 Business Personal Property Valuation Increase 14 TABLE 4 Rollback Valuation Increase 15 TABLE 5 Total Increase TIRZ Valuation 16 TABLE 6 City of Denton Revenues/Contributions 17 TABLE 7 Denton County Revenues/Contributions 18 TABLE 8 TIRZ Funding from City and County 19 1 FORWARD The City of Denton and Schrader & Cline, LLC have prepared a Feasibility Analysis using tax increment Tax Increment Reinvestment financing to encourage accelerated development and redevelopment for Zone (TIRZ) No. 2 in the City of Denton, Texas . The areas of the City within the boundary of the TIRZ need public infrastructure projects that will provide a stimulus for new development. Section I summarizes the history of Denton. Section II is a brief discussion of the current condition/situation. Section III details the tax increment analysis. Section IV contains Tables. The following projections of development and tax revenues are subject to change. As underlying conditions in the national and regional economy change, the pace and value of new development projected for the TIRZ area may shift. Future property tax rates are particularly difficult to predict given their and budgetary policies. Thus, the projected tax increments are subject to change. The analysis of future tax increment funds is dependent on a series of projections, assumptions, and other inputs. As a result, the report should be reviewed in totality. Neither this report nor its conclusions may be referred to or included in any prospectus or part of any offering made in connection with private syndication of equity, sale of bonds, sale of securities or sale of participation interests to the public without express written approval. 2 SECTION I: HISTORY Denton, the county seat of Denton County, is located on IH 35, less than forty miles north of Dallas and Fort Worth. Because of its proximity, Denton has become closely associated with the Dallas - Fort Worth metropolitan area. The City was founded in 1857 in order to become the county seat, because it was located near the center of the County. Although established in 1857, and with a courthouse built on the north side of the square, it was not until 1866 that Denton was incorporated. In its early years, Denton grew slowly, but that changed with completion of the Texas and Pacific Railway and the Missouri, Kansas and Texas Railway through Denton in 1881. With only north and south rail connections, however, the town did not develop as a manufacturing and wholesale center. The next spur to University). With these developments as catalysts, the City grew from a population of 1,194 in 1880 to 2,558 in 1890 and subsequently, over time, to a population of 26,844 in 1960 and to 48,063 in 1980. Proximity to Dallas and Fort Worth, with good interstate highway connections, played a major role in this growth. Steady and at times rapid growth of enrollment at the two universities was important also. Additionally, after 1974 the City added many new residents as a result of the opening of Dallas - Fort Worth International Airport, which is closer to Denton than to many parts of Dallas and Fort Worth. Many airline employees and executives who traveled for major companies took up residence in Denton. The City of Denton has also benefitted from the continued rapid growth of the metropolitan area and as this growth has moved northward, the City has grown in population from 80,537 in 2000 to 113,383 in 2010 to a 2011estimated 117,187, according to the U.S. Census Bureau. Denton ranked seventh among the fastest growing cities in the nation for populations over 100,000 persons in 2011. 3 SECTION II: CURRENT CONDITION / SITUATION While Dentonhas grown along with its population, the area has reached a point where future industrial growth is limited. One of the primary reasons for the limitation is the lack of infrastructure. Although there are several hundred acres available for development, the lack of adequate roads, water, sewer and drainage improvements creates a situation where development costs are too high for most projects. The City of Denton has the potential, the need and the desire to undergo a successful development of its industrial area. To begin the effort, the City constructed a section of a road connecting two major highways and bisecting the industrially zoned property in 2010. However, funds were not sufficient to build the road at full capacity or to provide water, sewer and drainage improvements. The major property owner of over 8City suggesting a public/private partnership to spur development. The property owner indicated a willingness to construct the necessary infrastructure improvements which would provide assistance and stimulus for new development in this area. In return, the property owner requested the City of Denton and Denton County consider the creation of a Tax Increment Reinvestment Zone (TIRZ) to provide an opportunity for the property owner to recoup some or all of the investment. The proposal was submitted to the Economic Development Partnership Board (EDPB), who reviewed it in detail. On August 7, 2012, the EDPB made a formal recommendation to the City Council that the City and Denton County consider paits corporate and industrial base. The EDPB recommended a twenty year term for the TIRZ with participation by the City and County at 40%. Based on the EDPB recommendation, the City of Denton is proposing creation of a TIRZ for the industrially zoned area. 800 acres is all under the ownership of one entity. New private development and redevelopment expected to occur as a result of public improvements funded by the TIRZ will increase property values and tax income as well as bolster Business Personal 4 Property (BPP) value and its related tax income for all taxing jurisdictions. TIRZ has been used in many other cities and is a proven method to stimulate private development and redevelopment growth sooner, rather than later, and in many cases will stimulate growth in value which might never occur without public improvements funded by the TIRZ. 5 SECTION III: TAX INCREMENT ANALYSIS This section documents the detailed analysis and inputs used to generate the tax increment revenue estimates. Tax Increment Financing involves: Designating an eligible redevelopment area as a Tax Increment Reinvestment Zone; Soliciting participation of other taxing jurisdictions; Setting the assessment base at the level of the most recent assessment; and Placing tax revenues generated by the increase in assessed value in a tax increment fund for funding public improvements. Thus, future tax increment revenues depend on four elements: The timing and added value of new development; Appreciation of existing land and improvements; The loss of value from any existing improvements demolished to make way for new development; and Future tax rates and the percentage of participation of each taxing jurisdiction. Assessment policies typically set building assessments at 100 percent of fair market value, which are generally comparable to construction costs for new construction. Assessed values are established as of January 1 of the tax year. Thus, development in 2012 goes on the tax rolls for the Tax Year 2013. In this analysis, to be conservative, no increase in value on redevelopment or new development after completion has been included. In addition, only a portion of the taxes from increases in real property values for the City of Denton and Denton County are directed to the TIRZ Fund. Taxes from the remaining portion on real and all business personal property values will flow to the City and County. All taxes from increases in real property values will flow to the other taxing jurisdiction (Denton Independent School District). Sales tax income generated from the area will flow to the City of Denton. The land valuation within the TIRZ boundary has continued to decrease in valuation over the past five years. The total assessed land valuation in 2007 was $69,790 and in 2012 is $65,370, a decrease of $4,420. 6 The property contains one single family dwelling currently valued at $54,366, which brings the total 2012 taxable value of the property within the TIRZ boundary to $119,458. For the purposes of this tax increment analysis, the initial tax base for the Tax Increment Fund is assumed to be $119,458. Taxes on the amount of base tax value will continue to flow to all taxing jurisdictions during the 25-year life of the TIRZ. The increase in value as a result of development within the TIRZ boundary is expected to be created in four different categories: 1.Development/real improvements expected to occur within the TIRZ boundary; 2.Business personal property associated with new development; 3.Land value increases expected as properties are sold and removed from the current Ag Exemption; 4.Rollback taxes - one-time revenue paid as property is removed from the current Ag Exemption. Each of these will be discussed in more detail in the following sections. Development/Real Improvements With the stimulus provided by the planned infrastructure improvements and recent development created surrounding this TIRZ, this analysis assumed that a level of development within the TIRZ at build-out would equal $289,629,330 and would take approximately 25 years to complete. ESTIMATED VALUE PER SITE USE ACRES VALUATION BLDG SQ FT SQUARE FEET Industrial 236.18 4,116,200 $30.00 $123,456,000 Rail Served 180.72 3,148,865 $30.00 $94,465,950 Mixed Use* 219.49 2,390,246 $100.00 $71,707,380* TOTALS 636.39 9,654,312 $289,629,330 *Mixed Use Sites valuation reflects 30% of total valuation created, assuming 70% of mixed use development is dedicated to multi-family construction, which is not an eligible use for proposed TIRZ participation. 7 To arrive at an annual increase in valuation due to new development, this feasibility plan assumes that th 1/25 of this valuation, or $11,585,173, will be added each year. The value created over the life of the TIRZ by new development is shown in attached Table 1. Land Valuation Increase Currently, all of the land within the TIRZ boundary has an Ag Exemption. At the time it is sold for development, the exemption will be removed and the valuation will reflect the market value of the land. In order to determine the estimated land valuation to be created in the TIRZ, City staff compiled an average acre value from the surrounding businesses to arrive at a value of $37,519 per acre. With an estimated 19.31 acres being developed each year, Table 2 shows the impact of adding $724,492 in new value each year. Business Personal Property In order to determine the estimated business personal property value to be captured within this industrial TIRZ, City staff compiled an average of five existing companies (two manufacturers and three warehouse/distribution centers) and determined that business personal property for these companies is 191% more than the real property values (land and improvements). A more conservative percentage of 150% has been applied to the value created by the industrial and rail served sites, and only 50% to the commercial value created within the mixed use area. Revenues from business personal property valuation will not be included in the TIRZ funding. However, it is included in this feasibility plan as this revenue will flow to the taxing entities at 100 percent. The value created over the life of the TIRZ by business personal property is shown in attached Table 3. Rollback Tax Revenue As stated in the previous section, the entire TIRZ area receives an Ag Exemption on the undeveloped land. s market valuation under industrial zoning, and the new owner will be required to pay the difference between the property tax paid under the Ag Exemption and the higher market valuation for the previous five years. The TIRZ will receive property tax revenue for the rollback taxes for the years that the property has been included in the TIRZ. Rollback tax revenue for years prior to the creation of the TIRZ will belong to the taxing entities at 100%. Rollback tax revenue is based on the annual land valuation (Table 2) less an 8 average value per acre under the Ag Exemption of $4,778 for a total estimated annual rollback of $719,714. Rollback taxes are a one-time payment, therefore cumulative valuation is not calculated. The value created over the life of the TIRZ by rollback tax revenue is shown in attached Table 4. Forecast The forecast of increased value created within the TIRZ boundary during the next 25 years from these four categories is shown in Table 5. the life of the TIRZ are detailed in attached Table 6. Revenue t contribution to the TIRZ over the life of the TIRZ are detailed in attached Table 7. Revenues to the TIRZ Fund over the life of the TIRZ and based on the values shown in attached Table 5 are provided in Table 8. Below is a summary of all revenues: Revenue to Real and BPP Revenue to Real and BPP Revenue to Total Revenue TIRZ Fund City of Denton after TIRZ Denton County after TIRZ Generated Contribution Contribution $14,275,430 $43,926,530 $18,862,910 $77,648,870 The increase in the property tax rate for the City of Denton over the past five years totals $0.023 per $100 valuation. The tax rate for Denton County has increased by $0.047 over the past five years. This study conservatively increases the 2012 tax rates for both the City and County by $0.03 in the eleventh year of the TIRZ. 2012 Tax Rate % of Tax Jurisdiction Years $/$100 Value Rate City of Denton 1-10 0.6897500 40 11-25 0.7197500 40 Denton County 1-10 0.2828670 40 11-25 0.3128670 40 The public infrastructure projects planned to stimulate the higher values created by the TIRZ are shown in Project Plan Exhibit D. 9 SECTION IV: TABLES 10 TABLE 1 CITY OF DENTON TAX INCREMENT REINVESTMENT ZONE NO. 2 DEVELOPMENT VALUATION INCREASE, $M INCREASE FROM CUMULATIVE YEAR DEVELOPMENT $M INCREASE $M 2012 2013 2014 $11.59 $11.59 2015 $11.59 $23.18 2016 $11.59 $34.77 2017 $11.59 $46.36 2018 $11.59 $57.95 2019 $11.59 $69.54 2020 $11.59 $81.13 2021 $11.59 $92.72 2022 $11.59 $104.31 2023 $11.59 $115.90 2024 $11.59 $127.49 2025 $11.59 $139.08 2026 $11.59 $150.67 2027 $11.59 $162.26 2028 $11.59 $173.85 2029 $11.59 $185.44 2030 $11.59 $197.03 2031 $11.59 $208.62 2032 $11.59 $220.21 2033 $11.59 $231.80 2034 $11.59 $243.39 2035 $11.59 $254.98 2036 $11.59 $266.57 TOTAL $266,570,000 Assumptions Development Based on build-out of 100% of Industrial and Rail-Served sites plus 30% of Mixed- use site build-out projections equaling $289,629,330. Assumes 25 year build-out th with 1/25 ($11.59M) allocated each of the 25 years of the TIRZ. 11 TABLE 2 CITY OF DENTON TAX INCREMENT REINVESTMENT ZONE NO. 2 LAND VALUATION INCREASE, $M INCREASE FROM CUMULATIVE YEAR DEVELOPMENT $M INCREASE $M 2012 2013 $.72 $.72 2014 $.72 $1.44 2015 $.72 $2.16 2016 $.72 $2.88 2017 $.72 $3.60 2018 $.72 $4.32 2019 $.72 $5.04 2020 $.72 $5.76 2021 $.72 $6.48 2022 $.72 $7.20 2023 $.72 $7.92 2024 $.72 $8.64 2025 $.72 $9.36 2026 $.72 $10.08 2027 $.72 $10.80 2028 $.72 $11.52 2029 $.72 $12.24 2030 $.72 $12.96 2031 $.72 $13.68 2032 $.72 $14.40 2033 $.72 $15.12 2034 $.72 $15.84 2035 $.72 $16.56 2036 $.72 $17.28 TOTAL $17,280,000 Assumptions Land Valuation Increase in Land value is based on the average land value of $37,519 per acre of five existing industries immediately adjacent to TIRZ. Table 2 assumes land to be developed 19.31 acres per year. Only includes 482.75 of the 636 developable acres. Land value not applied to land not developable due to flood plain or other issues. 12 TABLE 3 CITY OF DENTON TAX INCREMENT REINVESTMENT ZONE NO. 2 BUSINESS PERSONAL PROPERTY VALUATION INCREASE, $M INCREASE FROM CUMULATIVE YEAR DEVELOPMENT $M INCREASE $M 2012 2013 2014 $14.56 $14.56 2015 $14.56 $29.12 2016 $14.56 $43.68 2017 $14.56 $58.24 2018 $14.56 $72.80 2019 $14.56 $87.36 2020 $14.56 $101.92 2021 $14.56 $116.48 2022 $14.56 $131.04 2023 $14.56 $145.60 2024 $14.56 $160.16 2025 $14.56 $174.72 2026 $14.56 $189.28 2027 $14.56 $203.84 2028 $14.56 $218.40 2029 $14.56 $232.96 2030 $14.56 $247.52 2031 $14.56 $262.08 2032 $14.56 $276.64 2033 $14.56 $291.20 2034 $14.56 $305.76 2035 $14.56 $320.32 2036 $14.56 $334.88 TOTAL $334,880,000 Assumptions BPP Valuation Business Personal Property (BPP) projections based on average of taxable BPP (BPP less Freeport Exemptions) of five existing industries in immediate area of TIRZ. Actual existing BPP equals 191% of real value. Conservative BPP projections of 150% on Industrial and Rail- served sites and 50% on Mixed-use commercial sites used in Feasibility Plan. 13 TABLE 4 CITY OF DENTON TAX INCREMENT REINVESTMENT ZONE NO. 2 TIRZ ROLL BACK VALUATION, $M ROLLBACK YEAR VALUE 2012 2013 $1.44 2014 $2.16 2015 $2.88 2016 $3.60 2017 $3.60 2018 $3.60 2019 $3.60 2020 $3.60 2021 $3.60 2022 $3.60 2023 $3.60 2024 $3.60 2025 $3.60 2026 $3.60 2027 $3.60 2028 $3.60 2029 $3.60 2030 $3.60 2031 $3.60 2032 $3.60 2033 $3.60 2034 $3.60 2035 $3.60 2036 $3.60 TOTAL $82,080,000 Assumptions Rollback Value Rollback value is based on one-time assessment of land removed from Ag Exemption of $719,714. Rollback assessment equals Land Value in Table 2 of $724,492 ($37,519/acre x 19.31 acres) less Ag Value currently assessed $4,778. Example - Rollback paid on 2009, 2010, 2011, 2012 and 2013. Revenues from 2012 and Land sold in 2013: 2013 allocated to TIRZ; 2009, 2010, & 2011 revenues only to taxing entities. TIRZ fund benefits from Rollback for those years the TIRZ has been established. 14 TABLE 5 CITY OF DENTON TAX INCREMENT REINVESTMENT ZONE NO. 2 TOTAL INCREASE VALUATION, $M TOTAL TOTAL TOTAL DEVELOP-CUMULATIVE YEAR LAND ANNUAL CUMULATIVE ROLLBACK MENT AND VALUATION VALUATION ROLLBACK 2012 2013 $0.72 $0.72 $0.72 $1.44 $2.16 2014 $11.59 $0.72 $12.31 $13.03 $2.16 $14.47 $11.59$12.31 2015 $0.72 $25.34 $2.88 $27.50 $11.59$12.31 2016 $0.72 $37.65 $3.60 $40.53 $11.59$12.31$3.60 2017 $0.72 $49.96 $53.56 $11.59$12.31$3.60 2018 $0.72 $62.27 $65.87 $11.59$12.31$3.60 2019 $0.72 $74.58 $78.18 $11.59$12.31$3.60 2020 $0.72 $86.89 $90.49 $11.59$12.31$3.60 2021 $0.72 $99.20 $102.80 $11.59$12.31$3.60 2022 $0.72 $111.51 $115.11 $11.59$12.31$3.60 2023 $0.72 $123.82 $127.42 $11.59$12.31$3.60 2024 $0.72 $136.13 $139.73 $11.59$12.31$3.60 2025 $0.72 $148.44 $152.04 $11.59$12.31$3.60 2026 $0.72 $160.75 $164.35 $11.59$12.31$3.60 2027 $0.72 $173.06 $176.66 $11.59$12.31$3.60 2028 $0.72 $185.37 $188.97 $11.59$12.31$3.60 2029 $0.72 $197.68 $201.28 $11.59$12.31$3.60 2030 $0.72 $209.99 $213.59 $11.59$12.31$3.60 2031 $0.72 $222.30 $225.90 $11.59$12.31$3.60 2032 $0.72 $234.61 $238.21 $11.59$12.31$3.60 2033 $0.72 $246.92 $250.52 $11.59$12.31$3.60 2034 $0.72 $259.23 $262.83 $11.59$12.31$3.60 2035 $0.72 $271.54 $275.14 $11.59$12.31$3.60 2036 $0.72 $283.85 $287.45 TOTAL 266,570,000 $17,280,000 $283,850,000 $82,080,000 15 TABLE 6 CITY OF DENTON TAX INCREMENT REINVESTMENT ZONE NO. 2 CITY OF DENTON REVENUES/CONTRIBUTIONS $K CITY REVENUE CITY TIRZ CONTRIBUTION CUMULATIVE CUMULATIVE CONTRIBUTION YEAR REVENUE $K CONTRIBUTION REVENUE $K $K $K 2012 2013 2014 $23.85 $23.85 $5.97 $5.97 2015 $173.29 $197.14 $41.92 $47.89 2016 $322.72 $519.86 $77.87 $125.76 2017 $472.16 $992.02 $113.81 $239.57 2018 $623.58 $1,615.60 $147.78 $387.35 2019 $775.00 $2,390.60 $181.74 $569.09 2020 $926.43 $3,317.03 $215.70 $784.79 2021 $1,124.73 $4,441.76 $260.52 $1,045.31 2022 $1,282.74 $5,724.50 $295.96 $1,341.27 2023 $1,440.74 $7,165.24 $331.40 $1,672.67 2024 $1,598.75 $8,763.99 $366.84 $2,039.51 2025 $1,756.76 $10,520.75 $402.28 $2,441.79 2026 $1,914.77 $12,435.52 $437.72 $2,879.51 2027 $2,072.78 $14,508.30 $473.16 $3,352.67 2028 $2,230.79 $16,739.09 $508.60 $3,861.27 2029 $2,388.79 $19,127.88 $544.04 $4,405.31 2030 $2,546.80 $21,674.68 $579.48 $4,984.79 2031 $2,704.81 $24,379.49 $614.92 $5,599.71 2032 $2,862.82 $27,242.31 $650.36 $6,250.07 2033 $3,020.83 $30,263.14 $685.80 $6,935.87 2034 $3,178.84 $33,441.98 $721.24 $7,657.11 2035 $3,336.84 $36,778.82 $756.68 $8,413.79 2036 $3,494.85 $40,273.67 $792.12 $9,205.91 2037 $3,652.86 $43,926.53 $827.56 $10,033.47 TOTAL $43,926,530 $10,033,470 16 TABLE 7 CITY OF DENTON TAX INCREMENT REINVESTMENT ZONE NO. 2 DENTON COUNTY REVENUES/CONTRIBUTIONS, $K COUNTY REVENUE COUNTY TIRZ CONTRIBUTION CUMULATIVE CUMULATIVE CONTRIBUTION YEAR REVENUE $K CONTRIBUTION REVENUE $K $K $K 2012 2013 2014 $7.34 $7.34 $0.82 $0.82 2015 $67.40 $74.74 $14.75 $15.57 2016 $127.46 $202.20 $28.68 $44.25 2017 $187.53 $389.73 $42.60 $86.85 2018 $249.62 $639.35 $56.53 $143.38 2019 $311.72 $951.07 $70.46 $213.84 2020 $373.82 $1,324.89 $84.39 $298.23 2021 $482.51 $1,807.40 $108.74 $406.97 2022 $550.84 $2,358.24 $124.15 $531.12 2023 $619.52 $2,977.76 $139.55 $670.67 2024 $688.20 $3,665.96 $154.96 $825.63 2025 $756.89 $4,422.85 $170.36 $995.99 2026 $825.57 $5,248.42 $185.77 $1181.76 2027 $894.26 $6,142.68 $201.17 $1382.93 2028 $962.94 $7,105.62 $216.58 $1599.51 2029 $1031.63 $8,137.25 $231.98 $1831.49 2030 $1100.31 $9,237.56 $247.39 $2078.88 2031 $1169.00 $10,406.56 $262.79 $2341.67 2032 $1237.68 $11,644.24 $278.20 $2619.87 2033 $1306.37 $12,950.61 $293.61 $2913.48 2034 $1375.05 $14,325.66 $309.01 $3222.49 2035 $1443.73 $15,769.39 $324.42 $3546.91 2036 $1512.42 $17,281.81 $339.82 $3886.73 2037 $1581.10 $18,862.91 $355.23 $4241.96 TOTAL $18,862,910 $4,241,960 17 TABLE 8 CITY OF DENTON TAX INCREMENT REINVESTMENT ZONE NO. 2 TIRZ FUNDING FROM CITY AND COUNTY CUMULATIVE CITY COUNTY TOTAL TIRZ TIRZ YEAR CONTRIBUTION CONTRIBUTION CONTRIBUTIONS CONTRIBUTIONS $K $K $K $K 2012 2013 2014 $5.97 $0.82 $6.79 $6.79 2015 $41.92 $14.75 $56.67 $63.46 2016 $77.87 $28.68 $106.55 $170.01 2017 $113.81 $42.60 $156.41 $326.42 2018 $147.78 $56.53 $204.31 $530.73 2019 $181.74 $70.46 $252.20 $782.93 2020 $215.70 $84.39 $300.09 $1,083.02 2021 $260.52 $108.74 $369.26 $1,452.28 2022 $295.96 $124.15 $420.11 $1,872.39 2023 $331.40 $139.55 $470.95 $2,343.34 2024 $366.84 $154.96 $521.80 $2,865.14 2025 $402.28 $170.36 $572.64 $3,437.78 2026 $437.72 $185.77 $623.49 $4,061.27 2027 $473.16 $201.17 $674.33 $4,735.60 2028 $508.60 $216.58 $725.18 $5,460.78 2029 $544.04 $231.98 $776.02 $6,236.80 2030 $579.48 $247.39 $826.87 $7,063.67 2031 $614.92 $262.79 $877.71 $7,941.38 2032 $650.36 $278.20 $928.56 $8,869.94 2033 $685.80 $293.61 $979.41 $9,849.35 2034 $721.24 $309.01 $1,030.25 $10,879.60 2035 $756.68 $324.42 $1,081.10 $11,960.70 2036 $792.12 $339.82 $1,131.94 $13,092.64 2037 $827.56 $355.23 $1,182.79 $14,275.43 TOTAL $10,033,470 $4,241,960 $14,275,430 18 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 DEPARTMENT: ACM: George C. Campbell SUBJECT Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas designating portions of certain retail establishments, public buildings, and food establishments as nonsmoking areas; providing notification requirements; prohibiting smoking in designated nonsmoking areas; providing exceptions; providing penalties; providing a severability clause, repealing Ordinance 86-69, Ordinance 93-193 and Chapter 14 Article IV (smoking) of the Code of Ordinances, and any other ordinance in conflict herewith; and providing for an effective date. BACKGROUND City Council received a report at the January 10, 2012 work session, regarding amendments to the City of Denton smoking ordinance (86-069 as amended by ordinance 93-193). Council directed staff to draft a resolution creating an ad-hoc citizen advisory committee that would advise staff and Council regarding a comprehensive update to the current smoking ordinance, with an objective of adopting amendments for implementation effective by January 1, 2013. Staff provided council with an Informal Staff Report on September 7, 2012, which included a preliminary list of recommended committee members and background information on the committee composition in preparation for the September 18, 2012 Council Meeting. Staff then received direction from City Council at the September 18 Work Session, regarding the composition and appointments of the committee. Council adopted Resolution R2012-029, which created the committee and its charge, then appointed the members to the committee as an Item for Individual Consideration later that evening. Council received a report from the Ad-hoc Citizen Advisory Committee on Smoking Regulations on December 11, 2012 during a work Revisions to Draft Ordinance Per the discussion that took place at the December11 Work Session, staff has taken the feedback received from council and provided various options in a second revised draft ordinance. The revisions are included in Exhibit 2, which is a red-lined draft ordinance, and are outlined below: Adds a definition of Billiard Halls: a place of amusement whose chief purpose is providing the use of billiard/pool tables to the public. Amends the definition of Open-Aired Patio to clarify permissible enclosures and structures: a patio that has no fencing surrounding the seating area of the patio, except for open-aired construction (such as wrought iron, slats, or lattice work), or fencing which would allow for more than 50 percent light and air penetration, or fences which do not Agenda Information Sheet December 18, 2012 Page 2 exceed four (4) feet in height. Walls contiguous to the primary business are not deemed fencing within this definition. Ceilings of solid or open-aired construction (such as slats or lattice work) are permitted notwithstanding the requirement of 50 percent light and air penetration. Provides two options regarding the discussion on smoking in bars, including language that addresses the statutory prohibition of allowing entry to persons under the age of 18 into an establishment with a cigarette vending machine. Option 1: Section 2, (13) Bars has been amen o no exception; or Option 2: Language has been added to Section 4, which treats exceptions to the o A bar that does not allow admittance or employ persons under the age of eighteen (18) years, or which is permitted to sell Removes ansportation Facilities. By removing this term, smoking would not be permitted at public transit bus stops and train platforms. Regarding enforcement of the ordinance, the draft, as originally constructed, makes the individual who is smoking or in possession of lit tobacco, weed, or other plant product subject to enforcement actions, as it relates to this ordinance. The original draft language makes it difficult for the city to enforce regulations of this ordinance if a business owner is in violation of the provisions. Citations could only be issued to the patron who is smoking, but not to the business owner who is allowing the violation to occur. Staff is including, for discussion purposes, the of Arlington and City of ordinances to showcase how other cities/entities have broached the issue of business owner liability. City of Arlington Smoking Ordinance: The owner, manager, or operator of a [restaurant], barbilliard hall, bingo [hall], o or bowling center commits an offense if he or she designates or maintains a smoking area in violation of this [ordinance]. City of Frisco Smoking Ordinance: It shall be unlawful for any person who owns, manages, operates, or otherwise o controls the use of any premises subject to regulation under this ordinance to fail to comply with all of its provisions. nd Legislature: An employer or an owner, manager, operator, or employee of an establishment o regulated under this ordinance shall inform a person violating this ordinance of the appropriate provisions pertaining to the violationAn owner, manager, or Agenda Information Sheet December 18, 2012 Page 2 operator of a public place or an employer in a place of employment, as applicable, who violates this section, commits an offense. Following the discussion at the work session, staff will amend the draft ordinance and provide hard copies of the document for purposes of the public hearing and consideration of the ordinance the same evening. EXHIBITS 1.Municipal Smoking Ordinance Matrix (in alphabetical order) 2.Draft Ordinance on Smoking Regulations (Red-lined version), as revised by staff per Respectfully submitted: ______________________________ George C. Campbell City Manager Prepared by: _______________________ Lindsey Baker Assistant to the City Manager 9ãwz,z· ORDINANCE NO. _____________ AN ORDINANCE OF THE CITY OF DENTON, TEXAS REPEALING ORDINANCE 86-69, ORDINANCE 93-193 AND CHAPTER 14 ARTICLE IV (SMOKING) OF THE CODE OF ORDINANCES, AND ANY OTHER ORDINANCE IN CONFLICT HEREWITH; DESIGNATING PORTIONS OF CERTAIN RETAIL ESTABLISHMENTS, PUBLIC BUILDINGS, AND FOOD ESTABLISHMENTS AS NONSMOKING AREAS; PROVIDING NOTIFICATION REQUIREMENTS; PROHIBITING SMOKING IN DESIGNATED NONSMOKING AREAS; PROVIDING EXCEPTIONS; PROVIDING PENALTIES; PROVIDING A SEVERABILITY CLAUSE, PROVIDING FOR REPEAL OF ANY ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton recognizes that the smoking of tobacco, weeds or other plant products has been demonstrated to have a detrimental effect on not only the smoker but others in close proximity to the smoker; and WHEREAS, the City Council determined it to be in the public interest to consider the possibility of enhancing the Cnd WHEREAS, the City Council enlisted the assistance of an ad- committee to review smoking regulations in Denton; and WHEREAS, this committee met on October 11, October 25, November 15, and December 3, 2012; and WHEREAS, this committee has forwarded certain recommendations regarding smoking regulations to the City Council for consideration; and WHEREAS, the City Council is appreciative of the work of this committee, and finds it in the public interest to enact enhanced smoking regulations in the City of Denton; NOW, THEREFORE; THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. Definitions. The following words, terms and phrases, when used in this ordinance, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Bar means an enclosed indoor establishment that is open to the public and is devoted primarily to the sale and service of alcoholic beverages for on-premises consumption. Billiard Hall means a place of amusement for which the chief purpose is providing the use of billiard/pool tables to the public. Page 1 of 7 9ãwz,z· Bingo parlor means an establishment owned, operated, or administered by a person or entity licensed or permitted by the State of Texas pursuant to V.C.T.A., Occupations Code, Chapter 2001. Cigar Bar means an establishment used primarily for the sale of cigar and cigar-related products and in which the serving of alcoholic beverages are incidental to such retail operations. Employee means an individual in the service of another under a contract of hire, whether express or implied, or oral or written, for direct or indirect monetary wages or profit, or an individual who Employer means a person or entity who uses the services of another under a contract of hire, whether express or implied, or oral or written, or uses the volunteer services of one or more individuals. Facility means improvements of a vertical nature, including, but not limited to, buildings, sheds, garages, and stadium structures and excluding horizontal improvements such as sidewalks, streets and parking lots. Fraternal Organization means a non-profit organization that: (1)is tax exempt under Section 501(c)(8), (10), or (19) of the Internal Revenue Code; (2)operates under a lodge system with a representative form of government; and (3)is organized for the exclusive benefit of the members of the organization and their dependents. Healthcare Facility means an office or institution in which care or treatment is provided for physical, mental, or emotional diseases or other medical, physiological, or psychological conditions. Operator means the owner or person in charge of a public place or place of employment, including an employer. Open-aired Outdoor Patio means a patio that has no solid fencing of any type or to any degree surrounding the seating area of the patio, the exemption being decorative except for open-aired fencing construction (such as wrought iron, slats, or lattice work), or fencing which would allow for more than 50 percent light and air penetration, or fences which do not exceed four (4) feet in height. ) surrounding the patio area. Walls contiguous to the primary business are not deemed fencing within this definition. Any outdoor patio area encased with one or more solid walls or partial walls extending vertically, excluding the solid wall of the bar or restaurant shall not be included in the exemption. Ceilings of solid or open-aired construction (such as slats or lattice work) are permitted notwithstanding the requirement of 50 percent light and air penetration. Place of Employment means an enclosed facility under the control of a public or private employer, including, but not limited to, work areas, private offices, employee lounges, restrooms, conference rooms, meeting rooms, classrooms, employee cafeterias, hallways, Page 2 of 7 9ãwz,z· construction areas, and temporary offices. This definition does not include such outdoor areas as construction sites, parking lots, or designated smoking areas, or any area where smoking is specifically allowed under this ordinance. Private Club means an organization that owns, leases, or occupies a building used exclusively for club purposes at all times and: (1)is operated solely for a recreational, fraternal, social, patriotic, political, benevolent, or athletic purpose, but not for pecuniary gain; (2)sells alcoholic beverages only incidentally to its operation; (3)the affairs and management of the organization are conducted by a board of directors, executive committee, or similar body chosen by the members at an annual meeting; (4)has established bylaws or a constitution (5)is exempt from federal income taxation under Section 501(a), Internal Revenue Code, as a club described by Section 501(c) (7) of that code. Public Place means an enclosed area the public is invited or allowed to enter. Restaurant means an enclosed indoor establishment that is open to the public and is devoted primarily to the sale and service of food for immediate consumption. The term includes a bar located within the establishment. Retail establishment means any establishment which primarily sells goods and/or services to the general public. Smoke/Smoking means to inhale, exhale, burn, or carry a lighted cigar, cigarette, pipe, or other smoking equipment, containing tobacco, weed, or other plant product. Tobacco Shop means a specialty retail establishment used primarily for the sale of tobacco products and accessories and in which the sale of other products is incidental. Tobacco Bar means a business that: (1)holds a permit under V.C.T.A., Tax Code, Chapter 155; and (2)holds an alcoholic beverage permit or license issued under V.C.T.A., Alcoholic Beverage Code, Chapters 25, 28, 32, or 69, or under V.C.T.A., Alcoholic Beverage Code, Section 11.10. SECTION 2. Smoking prohibited in certain public places. (a) It is unlawful for any person to smoke or possess a lit tobacco, weed or other plant product in any of the following public places: (1)An elevator used by the public; Page 3 of 7 9ãwz,z· (2)Healthcare facilities; (3)Any facility owned, operated or managed by the city; (4) Any vehicle owned by or under the control of the city; (5)Any retail establishment serving the general public except as otherwise permitted in this ordinance; (6)Lobbies, hallways, and other common areas in retirement facilities and nursing homes; (7)Any facility of a public primary or secondary school; (8)Child care and adult day care facilities; (9)A privately owned theater auditorium, movie house, or other enclosed facility which is open to the public for the primary purpose of exhibiting any motion picture, stage drama, musical recital, athletic event, or any other performance or event; (10)Public libraries, including exterior corridors, and any area within 30 feet of any public entrance; (11)Museums; (12)Restaurants; (13)Bars, except as otherwise permitted in this ordinance (Option 1); (14)Lobbies, hallways, and other indoor public areas in hotels and motels; (15)Bowling alleys (16)Pool/billiard halls; (17)Polling places; (18)Bingo Parlors, except as otherwise permitted in this ordinance; and (19)Public transportation vehicles, including buses and trains, and enclosed facilities in support of public transportation such as ticket, boarding, shelter, and waiting areas. SECTION 3. Smoking prohibited in places of employment. (a) It is unlawful for any person to smoke or possess a lit tobacco, weed or other plant product in places of employment, except as provided in Section 4 of this ordinance. (b) An employer shall communicate this prohibition to all prospective employees upon their application for employment. SECTION 4. Smoking not prohibited in certain places. Page 4 of 7 9ãwz,z· (a) Notwithstanding any other provision of this ordinance, the following areas shall not be subject to the smoking restrictions of this ordinance: (1)Private residences, except when used as a child care, adult day care, or health care facility; (2)Personal vehicles; (3)Private clubs and fraternal organizations; (4)Open-aired outdoor patio of a restaurant or bar; (5)A bar that does not allow admittance or employ persons under the age of eighteen (18) years, or which is permitted to sell tobacco products pursuant to V.T.C.A., Health and Safety Code Section 161.086 (Option 2); (6)Bingo Parlors which provide a solid physical barrier to separate the non-smoking section. Any existing bingo parlors shall have three (3) years from the effective date of this ordinance to construct such barrier; and (7)Tobacco shops, tobacco bars, and cigar bars. (b) Notwithstanding any other provision of this section, any owner, operator, manager or other person who controls any establishment or facility described in this section, may declare the entire establishment or facility as a nonsmoking establishment. SECTION 5. Signage. (a) The owner or person in control of an establishment in which smoking is prohibited by this ordinance shall: (1)Post a conspicuous sign at the main entrance to the establishment that shall contain the words "No Smoking, by City of Denton Ordinance" and which includes the universal symbol for no smoking, or other language that clearly prohibits smoking; and (2)Remove all ashtrays from any area in which smoking is prohibited. SECTION 6. If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstance is held invalid by any court of competent 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 7. Penalties. Option 1: It shall be unlawful for any person who owns, manages, operates, or otherwise controls the use of any premises subject to regulation under this ordinance to fail to comply with all of its provisions. Option 2: The owner, manager, or operator of an establishment regulated by this ordinance Page 5 of 7 9ãwz,z· commits an offense if he or she designates or maintains a smoking area in violation of this ordinance. Option 3: An employer or an owner, manager, operator, or employee of an establishment regulated under this ordinance shall inform a person violating this ordinance of the appropriate employer in a place of employment, as applicable, who violates this section, commits an offense. Any person violating this ordinance shall, upon conviction, be punished by a fine not to exceed Two Thousand Dollars ($2,000.00). SECTION 8. Ordinance 86-69, Ordinance 93-193, Chapter 14 Article IV (Smoking) of the Code of Ordinances, and any other ordinance in conflict herewith are hereby repealed. SECTION 9. This ordinance shall become effective fourteen (14) days from the date of its , and the City Secretary is hereby directed to cause the caption of this ordinance to be passage published twice in the Denton Record-Chronicle, the official newspaper of the City of Denton, Texas, within ten (10) days of the date of its passage. Page 6 of 7 9ãwz,z· 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: __________________________________ Page 7 of 7 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 DEPARTMENT: Planning & Development ACM: John Cabrales SUBJECT DCA12-0005 Phase II Gas Well Drilling and Production Ordinance Revisions Consider approval of the Planning and Zoning Commission (P&Z) recommendation to Approve DCA12-0005, with the Condition that City Council will continue to revise the ordinance language based on their goals. The P&Z recommended approval by a 6-1 vote. PRIOR ACTION/REVIEW On October 1, 2012, the advisory Gas Well Task Force held a public meeting. On October 2, 2012, the draft was ordinance posted for public review and comment until October 12, 2012. On October 22, 2012, the advisory Gas Well Task Force held a public meeting. On October 24, 2012, P&Z continued the public hearing for DCA12-0005 to their November 14, 2012 meeting by a 7-0 vote. On November 6, 2012, the City Council received a report, held a discussion, and gave staff On November 13, 2012, the City Council received a report, held a discussion, and gave staff direction regarding On November 14, 2012, P&Z continued the public hearing for DCA12-0005 to their November 28, 2012 meeting by a 6-0 vote. Approval, On November 28, 2012, P&Z voted 6-1 to recommend with the Condition that City Council will continue to revise the ordinance language based on their goals, of DCA12-0005. On December 4, 2012, the City Council received public input regarding the Phase II amendments . BACKGROUND As the Prior Action/Review section illustrates, DCA12-0005 has been the subject of several public meetings in recent months. Details presented during those meetings and the staff reports written for each meeting are included with this Agenda Information Sheet as Exhibits. The information presented in the respective Exhibits include the details regarding the Phase II timeline, information received from all interested parties, actions taken by the respective City boards, and how each of the previous three draft ordinance versions were written. In summary, the initial draft was based on Task Force recommendations and then presented to the Task Force and posted online. The first draft was also forwarded to outside legal, scientific, and technical advisors for guidance. The public input received during the Task Force meetings and from the online posting were combined with the comments from the outside consultants and used to prepare the second draft. The third draft was written after receiving input from the public, industry representatives, P&Z, and the City Council. The third draft was presented to P&Z on November 28, 2012 and they voted 6-1 to recommend approval, with the condition that City Council will continue to revise the ordinance language based on their goals. The fourth draft in the back-up materials contains ordinance revisions made after receipt of City Council meetings. This fourth draft is considered to be the final draft. As such, this draft does not contain sidebar comments or marked changes within the document. Concepts and ideas presented in this fourth draft derived from public input, Task Force recommendations, industry comments, and City version is intended as a comprehensive draft that includes ideas carried over from Phase I, issues discussed during the thirteen (13) advisory Task Force meetings, comments received from the public and industry, legal and technical advisors, staff research, and both P&Z and City Council guidance. Comments and suggestions provided during Phase II were considered in context of the whole ordinance to ensure consistency throughout the entire document. Stakeholder input was fully reviewed and ordinance recommendations were written after careful consideration of all the issues and the information presented to the City. The review comments from the community, Task Force input, industry reviews, idea proposals submitted from the Denton Stakeholders Drilling Advisory Group (DAG), independent research papers, public testimony provided during the multiple public meetings, and City Council recommendations were all vitally important during this process to help craft an ordinance that proffers a consistent message throughout and implements reasonable regulations to protect the health, safety, and general welfare of the public, while accomplishing the orderly and practical development of mineral resources. The effect of the collective Phase II revisions will likely require time after approval to evaluate are met. The evaluation period could last several months of survey time analyze and review the ordinance in the field and additional time to formulate possible solutions if any issues are identified. This process is and to make any necessary changes that may result from unintended consequences of specific ordinance provisions. Multiple draft versioons of the ggas well orddinance weree presented during the PPhase II revvision process. The table inn Exhibit 7 hhighlights laanguage channges and conncepts propoosed in the ffourth draft orddinance preseented hereinn that differ from the Ciity’s currentt Denton Deevelopment Code (DDC)SSubchapter222 regulationn. This tablle does not cite the entiire DDC Secction and mmerely summarizzes the propposed revisioon. Exhibit 8, the Final Ordinance, contains a marked-updraft version thhat identifies all proposeed ordinancee amendmennts in this fouurth draft. RECOMMMENDATIION Staff reqquests City CCouncil’s appproval of thhe P&Z recoommendatioon to Approvve DCA12-00005, with the condition thhat City Counncil will conntinue to reviise the ordinnance languaage based onn their goals. EXHIBIITS 1.AISS with back--up from Octtober 24, 2012 P&Z meeeting (locateed in Dropboox) 2.AISS with back--up from Novvember 6, 20012 City Coouncil meetinng (located in Dropbox) 3.AISS with back--up from Novvember 13, 22012 City CCouncil meetting (located in Dropboxx) 4.AISS from Noveember 14, 20012 P&Z meeeting (locateed in Dropboox) 5.AISS with back--up from Novvember 28, 22012 P&Z mmeeting (locaated in Droppbox) 6.AISS from Deceember 4, 2012 City Counncil meeting(located in DDropbox) 7.Summmary of Nooteworthy OOrdinance Ammendments 8.Finnal Ordinance with marked and cleann drafts Resppectfully subbmitted: _______________________________ Johnn Cabrales Assiistant City MManager for Developmennt Preparedd by: _________________________ Brian Loockley, AICPP, CPM Interim DDirector, Planningg and Develoopment Depaartment Exhibit 7 Summary of Noteworthy Ordinance Amendments SummaryofNoteworthyOrdinanceAmendments December18,2012 Thefollowingtableoutlineshighlightsnotablelanguagechangesandconceptsproposedinthe fourthdraftordinancepresentedhereinthatdifferfromthe/z·äx­currentDenton DevelopmentCode(DDC)Subchapter22regulation.ThistabledoesnotcitetheentireDDC Sectionandmerelysummarizestheproposedrevision. DDCSectionSummaryofExplanationof Revision u vCurrentSectionChange Revisedtoconsolidateall provisionsrelatedto authorityand Purpose,Authority,andThisentiresectionwasapplicabilityandto 1.AC Applicabilitydeletedandreplaced.reinforcetheconcept thattheprovisionsgrow outofthe/z·äx­zoning authority. Severaldefinitionswere addedorrevisedto ensureunfamiliarterms Neworupdated 2Multipledefinitionsusedintheordinance definitions. textareconsistently appliedordefinedfor context. Therevisionclarifiesthe processforannexed WrittenasSectionRevisedasSection wells,identifieswhich 35.22.4.Gtoaddress35.22.4.FtoaddressLegal 4.Fordinanceprovisions LegalNonConformityNonConformity applytonewwells,and Provision.Exceptions. addressesvestedrights determinations. TaskForceconcern Landscaping,buffering,regardingtheimportance OnsitefencingandscreeningofaestheticstotheCity 5.A.2.b requirements.requirementsforDrillingandtheproperties andProductionSites.surroundingeachDrilling andProductionSite. DDCSection CurrentSectionRevisionExplanationofChange u v Rust,blisters,stains,or Paintingrequirementsforotherdefectspresenton Onsitepaintingand onsiteequipment allequipmentona 5.A.2.fmaintenance respectiveDrillingandimpactsvisualcohesion requirements. ProductionSite.andneighborhood aesthetics. Closedloopsystemwas proposedbyTaskForce, DAG,andcitizensdueto PitlinersandlinerPitliningrequirements 5.A.2.lthepotentialproperty standards.andclosedloopsystems. devaluationsof surroundingparcelsand landusecompatibility. Conceptsuggestedby DAG,TaskForce,and 5.A.2.nNocurrentprovision.VaporRecoveryUnits. multiplepublic comments. Landusecompatibility issueregardingadevice Onsitelocatingoflift 5.A.2.oNocurrentprovision.thattypicallygenerates compressors. noiseandvibrationsand operates24/7. Conceptsuggestedby DAG,MinorityReport, andmultiplepublic 5.A.2.pNocurrentprovision.Wellcompletions. commentsanddrafted consistentlywithfederal EPAprovisions. Conceptsuggestedby DAG,MinorityReport, andmultiplepublic 5.A.2.qNocurrentprovision.Soilsampling. comments,butlimitedto inspectionandreporting purposes. InternalcombustionOnlyuseelectricmotorsConceptsuggestedby 5.A.3.denginesandelectricattheDrillingandDAG,TaskForce,and motors.ProductionSites.publictomitigatenoise. DDCSection CurrentSectionRevisionExplanationofChange u v Conceptsuggestedby DAG,TaskForce,and DrillingandProductionmultiplepubliccomments 5.A.6.k& Wellabandonment.Siteclosuretoensuremorepublic 5.A.6.l requirements.transparencyofwell trackingandstatus updates. At/šÒ“-zŒx­direction,pits shallbebackfilledina 5.A.6.wNocurrentprovision.Pitclosurerequirements. timelymannertoaddress propertyvalueconcerns. Conceptsuggestedby DAG,MinorityReport, publiccomments,staff, 5.A.6.xNocurrentprovision.Waterconservationplan. andCityCouncilto monitorwaterusagein theCity. Conceptsuggestedby DAG,MinorityReport, andmultiplepublic NoiseManagementNoiseManagementcomments.Noisecannot 5.C Standards.Standards.exceed65dBandisnot dependentonthe ambientlevelunlessit exceeds65dB. Conceptsuggestedby DAG,MinorityReport, publiccomments,staff, 6.B.3.rNocurrentprovision.SiteReclamationPlan. andCityCouncilto addresspropertyvalue concerns. Conceptsuggestedby DAG,TaskForce,and public.Wellowners 6.B.3.tNocurrentprovision.Privatewaterwells.shouldbenotifiedby operatorregarding potentialDrillingand ProductionSite. DDCSection CurrentSectionRevisionExplanationofChange u v At/šÒ“-zŒx­direction, Operatorsmustsubmita Recordableinstrument recordableinstrument 6.B.3.uNocurrentprovision.delineatingtheDrilling withtheirapplicationto andProductionSite. helpaddressproperty values. Conceptsuggestedby DAG,MinorityReport, andmultiplepublic commentsandat Compliancewith /šÒ“-zŒx­direction, applicablefederaland 10.E.17Nocurrentprovision.Operatormustcomply statelawsand withallfederalandstate regulations. lawsandregulations. Violationswillbe reportedtothe applicableagency. Staffrecommendationto clarifyreported Additionsaddedtoinformationandto 11.AGPeriodicReports. PeriodicReportssection.ensuretransparencyof welltrackingandstatus updates. NoticesofactivitiesforStaffrecommendationto Wellreworkandfracturedrilling,reworking,ensuremorepublic 12.Aandseismicexplorationfracturing,flowback,transparencyofwell notices.plugging,andsitetrackingandstatus maintenance.updates. Operatorshallalsohosta TaskForce publicmeetingifa recommendationsto proposedDrillingand 12.FGNocurrentprovision.garneradditionalpublic ProductionSiteislocated awarenessofDrillingand within1,000feetofa ProductionSiteactivities. protecteduse. Sectionaddedtogrant 16.ACNocurrentprovision.Appealsandvariances.specialexception authorityforZBA. Exhibit8 FinalOrdinancewithMarkedandCleanDrafts AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 DEPARTMENT: ACM: John Cabrales, Jr. SUBJECT Consider approval of a resolution regarding the 2013 State Legislative Program of the City of Denton for the 83rd Texas Legislature and providing for an effective date. BACKGROUND Council received a report and held a discussion regarding the draft 2013 State Legislative Program. Per the discussion, council requested staff bring back a revised draft program to address payday lending and specifically identified Chapter 245 of the Local Government Code, known as the vesting rights statute. Below are the positions that have been added for your consideration: Support legislation that would allow cities to enact ordinances regulating development, including but not limited to issues related to Chapter 245 Local Government Code (under Land Use Resources, page 12). Oppose state pre-emption of municipal authority in the regulation of payday lenders, unless proposed legislation provides adequate protections from aggressive and harmful lending practices (under General Government, page 14). Attached is the draft 2013 State Legislative Program, as revised. Staff has worked with the Texas Municipal League (TML), the TML Big City group, our legislative consultants, and other cities to identify these legislative issues of interest to Denton. The adoption of this program allows City representatives to work with state legislators on supporting and opposing legislation that that will accomplish our goals. It also gives city representatives the ability to react quickly to proposed legislation and authority to enter testimony on behalf of the City regarding these issues. RECOMMENDATION 1. Adopt the 2013 State Legislative Program at the December 18 Council meeting as amended. EXHIBITS 1. 2013 State Legislative Program 2. Resolution for consideration to approve the State Legislative Program Respectfully submitted: Lindsey N. Baker Assistant to the City Manager Intergovernmental and Media Relations Exhibit1 City of Denton 2013Legislative Agenda rd 83Texas Legislative Session City of Denton 2013 State Legislative Program Page0 TABLE OF CONTENTS I.City of Denton Mayor and Council Contact Information2 II.City Manager, City Attorney and City Staff Contact Information3 III.2013State Legislative Program Adopting Resolution4 IV.General Legislative Policy5 V.Priority Legislative Agenda7 VI.Discussion of Priority Legislative Issues8 VII.General Legislative Agenda12 City of Denton 2013 State Legislative Program Page1 City of Denton City Council Members Mailing Address for all of Council: 215 E. McKinney, Denton, TX 76201 The City Hall Phone number for Council –940-349-7717 Mayor Mark Burroughs Mark.Burroughs@cityofdenton.com Mayor Pro Tem–At Large Place 5 Pete Kamp Pete.Kamp@cityofdenton.com Council Member –District 1 Kevin Roden Kevin.Roden@cityofdenton.com Council Member –District 2 Dalton Gregory Dalton.Gregory@cityofdenton.com Council Member –District 3 Jim Engelbrecht Jim.Engelbrecht@cityofdenton.com Council Member –District 4 Chris Watts Chris.Watts@cityofdenton.com Council Member –At Large Place 6 James King James.King@cityofdenton.com City of Denton 2013 State Legislative Program Page2 City Manager, City Attorney and City Staff The Denton City Council and staff are glad to provide information, research issues and testify on the City of Denton legislative issues. Municipal Offices: 940-349-8200 City of Denton 215 E. McKinney Denton, Texas 76201 www.cityofdenton.com George Campbell Anita Burgess City ManagerCity Attorney 940-349-8306 940-349-8336 George.Campbell@cityofdenton.comAnita.Burgess@cityofdenton.com Howard Martin Jon Fortune Assistant City ManagerAssistant City Manager UtilitiesOperations 940-349-8232 940-349-8535 Howard.Martin@cityofdenton.comJon.Fortune@cityofdenton.com John Cabrales, Jr.Bryan Langley Assistant City ManagerAssistant City Manager Development ServicesAdministrative Services 940-349-8509940-349-8224 John.Cabrales@cityofdenton.comBryan.Langley@cityofdenton.com Lindsey Baker Assistant to the City Manager Intergovernmental & Media Relations 940-349-8234 Lindsey.Baker@cityofdenton.com City of Denton 2013 State Legislative Program Page3 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF DENTON, TEXAS, ADOPTING THE CITY OF rd DENTON’S 2013 STATE LEGISLATIVE PROGRAM FOR THE 83TEXAS LEGISLATURE; AND PROVIDING AN EFFECTIVE DATE. rd WHEREAS, the 83Texas Legislature will commence in January 2013; and WHEREAS, appraisal caps, revenue caps, budgeting authority and revenue sources, and many other legislative issues affecting local government will be considered; and WHEREAS, the City ofDenton desires to adopt its 2013State Legislative Program for rd the 83Texas Legislature; NOW, THERFORE, THE COUNCIL OF THE CITY OF DENTON HERBY RESOLVES: rd SECTION 1.That the City of Denton’s 2013State Legislative Program for the 83 Texas Legislature is adopted as set forth herein and made a part of this resolution for all purposes. SECTION 2.That the Mayor and City Council, City Manager and the City Attorney, or their designees shall communicate the items included in the 2013State Legislative Program to members of the Texas Legislature. SECTION 3.The City Manager, or his designee, is directed to draft appropriate legislation, seek a sponsor, and actively pursue passage of such legislation by providing testimony from the Mayor and City Council and City Staff and through other appropriate means. th PASSED AND APPROVED this the 11day of December 2012. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: _________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ City of Denton 2013 State Legislative Program Page4 GENERAL LEGISLATIVE POLICY PRESERVE THE CITY’S STRATEGIC GOALS & INTERESTS STATEMENT OFPRESERVATION As a general policy, the City of Dentonseeks to preserve its current authority to govern the city, its citizens, and its property. The City will oppose any legislation viewed as detrimental to the City’s strategic goals; or that is contrary to the health, safety, and welfare of its citizens; or that mandates increased costs or loss of revenues; or that would diminish thefundamental authority of the City. SUPPORTLEGISLATION THAT ADVANCES THE CITY’S STRATEGIC GOALS & INTERESTS STATEMENT OF SUPPORT Likewise, the City supports any legislation viewed as advancing the City’s strategic goals; or that improves the health, safety, and welfare of its citizens; or that responsibly increases revenues; or that advances the City’s authority to conduct the public's business.The City will oppose any initiatives that seek to erode municipal authority or that otherwise have a negative impact on municipal operations, including but not limited to legislation that would: Erode home rule authority; Detrimentally affect the City’s financial position by reducing revenue streams or increasing costs; Erode the authority of Texas cities to manage and control their rights-of-way or other public property and to be reasonably compensated for such use; Erode current municipal economic development authority; Erode the current authority of Texas cities to enact a system and setthe level of impact fees for new development; and Further restrict cities’ ability to adopt or amend zoning regulations, and annex property in a city’s extraterritorial jurisdiction. FORM COALITIONS WITH PARTIES THAT SHARE COMMON GOALS AND INTERESTS WITH THE CITY FORM COALITIONS The City will form strategic partnerships with cities, political subdivisions, and private sector entities that share commongoals with the City of Denton. Additionally, the City will work in coordination with organizations such as the Texas Municipal League when their adopted positions are inline with the legislative objectives and goals of the City. The formation of strategic partnerships and coordinated efforts is intended to provide the City with a stronger presence in the legislative process. City of Denton 2013 State Legislative Program Page5 GOALS OF THE CITY’S LEGISLTIVE ACTIVITIES STATEMENT OF GOALS The fundamental goal of all City of Denton’s legislative activities is to produce positive outcomes for the citizens of Denton as a whole. Numerous proposals in the Texas Legislature have the potential to seriously impact the ability of the City to carry out its overall mission. By taking a proactive role in monitoring and commenting on proposals in the Texas Legislature,we are working to ensure that the citizens of Denton can continue toenjoy the quality of life they have come to expect and deserve. City of Denton 2013 State Legislative Program Page6 PRIORITY LEGISLATIVE AGENDA PRIORITY LEGISLATIVE ISSUES 1.Preserve Local Budgeting Authority and Revenue Sources Opposelegislation that would unduly restrict the ability of the City to set its own budget or raise the necessary revenue to provide services to City residents and businesses. 2.Preserve Local Control of Land Use Planning and Zoning Supportlegislation that preserves local land use authority. Opposelegislation that would erode local land use authority by restricting the ability of cities to zone or rezone properties. 3.Preserve Local Control of Denton Municipal Electric Opposelegislation that would deregulate Municipally Owned Utilities or amend their governing structure. Supportlegislation that would preserve Municipally Owned Utilities’ authority and governing structure that maintain a diversified energy portfolio. City of Denton 2013 State Legislative Program Page7 DISCUSSION OF PRIORITY LEGISLATIVE ISSUES Preserve Local Budgeting Authority and Revenue Sources The City of Dentonwill opposelegislation that will unduly restrict the ability of the City to set its own budget or raise the necessary revenue to provide services expected by City residents and businesses. ISSUE During the last several Texas Legislative Sessions, proposals have been set forth that would severely limit the ability of cities to set their budgets or raise adequate revenues to carryout their fundamental functions. For example, numerous proposals to “cap” local revenuesand property appraisals have been filed in the Texas Legislature. Every elected official in the City of Denton is sensitive to the tax burden our citizens and businesses pay,and is accountable to the local electorate for the decisionsthey make. However, we are also mindful that it takes a great deal of flexibility with our local budget to meet the unique demands for services while at the same time preserving the high standards our community has come to expect. PROBLEM Appraisal and revenue caps undermine the ability of local governments to meet the individual needs and circumstances of their cities. Additionally, one size fits all “caps” violate the fundamental principle of local control. Citizens and businesses have numerous opportunities to provide input to the City of Denton’s budget and tax rate setting processes. Most importantly the citizens of our City get to voice their approval or disapproval of our budgeting performance and tax rates every time we hold a City election. Unfortunately, extremely low appraisal and revenue caps can produce numerous problems. For instance, appraisal caps shift the inequitable tax burden to businesses and new homeowners. This inequitable shift can produce serious long-term negative consequences for the local economy. Revenue caps,on the other hand,require the City to cut services or take on more debt to fund local projects and services. These typesof “caps” are particularly harmful to a city like Denton,because it prevents the City from adequately dealing with the infrastructure needs brought on by tremendous population growth. It is inappropriate for the State of Texas to expect local governments to provide numerous public services with no funding from the State, while at the same time unduly restricting the ability of local governments to raise the necessary levels of revenue to provide the required services. SOLUTION If revenue caps are going to be applied to local governments they should be applied uniformly to the state budget as well. In short,the same rules should apply to all levels of government. The State could also supplement local government funding as other states thatimpose revenue caps have done. City of Denton 2013 State Legislative Program Page8 Preserve Local Control of Land Use Planning and Zoning The City of Dentonwill supportlegislation that preserves local land use authority and oppose legislation that will erode local land use authority by restricting the ability of cities to zone or rezone properties. ISSUE Over the past few legislative sessions various proposals have been introduced to restrict the ability of cities to enforce their traditional land use controls. Specifically, legislation that requires cities to compensate landowners anytime a zoning classification change is effected (often referred to as a “downzoning”),has come dangerously close to becoming the law. Under these proposals,cities would have to compensate landowners, even if the proposed zoning changes did not interfere with the current or intended use of the property. In addition to compensating landowners for zoning changes, proposals have been considered that would require compensation for numerous types of city regulations. For example, previously proposed legislation would have required cities to compensate landowners if they restricted the ability of patrons to smoke on premises or limited the time of day that alcohol could be served. All of these types of local restrictions have been debated under the theory of “regulatory takings.” Additional legislative proposals would have prevented cities from ever changing the zoning classification of a property if any type of basic permit or site plan has been filed with any governmental entity. Since 1999 the Texas Legislature has continually expanded the “permit vesting” statute to include different aspects of city land use authority. The expansion of the “permit vesting” statute is beginning to interfere with the ability of cities to impose orderly, efficient, and comprehensive land use and development plans for their communities. PROBLEM Restricting the ability of cities to properly regulate land uses ultimately prevents them from being able to respond to the needs and demands of their citizens. For example, land use controls are used to keep undesirable businesses from locating in neighborhood-type settings. Additionally, one of the main reasons people live in cities is to have the protection of a regulated land use system. In short,when a home or business locates in a particular city they do so,in part, to ensure that an incompatible structure will not be placed next to their property. SOLUTION The ability of most cities to manage growth and development is based on the Texas constitution’s home rule provisions. Cities are allowed to amendcharters and pass ordinances as long as they donot conflict with the constitution or general laws enacted by the state legislature. Thismeans that each home rule city can make its own decisions about what planning tools and techniques are most appropriate to its situation unless those tools have beenproscribed by the Texas legislature. The State should be very cautious in proscribing solutions that are only applicable to individual situations because of the vast differences between cities in this large state. City of Denton 2013 State Legislative Program Page9 Preserve Local Control of Denton Municipal Electric The City of Denton will opposelegislation that deregulates Municipally Owned Utilities or amends their governance authority. ISSUE For the first time in over a decade, the 2011 State Legislative session saw bills introducedregarding partial deregulation for specific Municipally Owned Utilities (MOU). Ultimately, none of the bills passed into law.However, this type of legislative pressure toward specific MOUs can have a widespread, negative impact and unforeseen consequences on MOUs throughout the state.Municipalities owning an electric utility, such as in Denton's case, retain local regulatory authority through its main governing body, the City Council.It is the role and choice of these City Councils to determine each MOUs energyfuture by exercising its authority whether to opt-in to the deregulated market or to retain its local authority.In April, 2001, the Denton City Council took a wait-and-see approach and exercised its authority choosing not to opt-in to deregulation. To date, there has been no viable reason for Denton to enter into the deregulated market. Requiring MOUs to participate in the deregulated market essentially eliminates the authority of the governing bodies of MOUs and forces them to operate under the same guidelines as investor owned utilities.Historically, DME electric rates have remained stable and competitively priced. Mandating that an MOU participate in the deregulated market not only increases its financial burden, but also ensures that the increased costs are passed through to the DME ratepayers, thus placing DME at a competitive disadvantagein the electric market.In addition, should an MOU such asthat owned by the citizens of Denton berequired to opt-in, it mitigates the strategic measuresthat the local citizens have enacted such as requiring more renewable resources from their MOU. PROBLEM Austin Energy’s (AE) rate increase has raised the deregulation issue and it is anticipated that legislation will be proposed to deregulate all ora portion of AE.The opt-in discussions concerning AE may be expanded to include all MOUs.For Denton to enter the deregulated market, the additional operating expense would be substantial.The current and additional operating expenses could be spread across a smaller customer base should customers exercise their “power to choose”.A reduction in DME’s customer base would ensure that its remaining customers would have to absorb the increased costs in the form of higher electric rates. SOLUTION MOUs must preserve the local authority and governing structure to provide affordable electric service and energy portfolio diversity to its ratepayers. City of Denton 2013 State Legislative Program Page10 Preserve Local Control of Denton Municipal Electric The City of Denton will supportlegislation that preserves the authority and governance structure of Municipally Owned Utilities that maintain a diversified energy portfolio. ISSUE During recent sessions of the Texas State Legislature, proposals were sent forth regarding Texas’ Renewable Portfolio Standard (RPS) and its proposed soft target for non-wind renewable generation.Restricting the types of generation which would qualify for inclusion in the RPS essentially eliminates the authority of the governing bodies of Municipally Owned Utilities (MOU) to procure renewable energy sources that are financially feasible for the MOU to maintain a diversified energy portfolio. As such, the increased financial burden for the City of Denton would be passed through to Denton Municipal Electric (DME) ratepayers. The City of Denton is a nationally recognized environmental leader because of its continued diversification of DME’s energy portfolio.At no additional costto its ratepayers, DME provides more wind energy per capita than any other city in the United States and offers one of the largest rebates for the installation of renewable energy generation in Texas.The City of Denton and DME recognize the importance of reducing the overall dependence on fossil fuel generation, while, at the same time being fiscally responsible to its citizens and ratepayers. PROBLEM Any legislation that eliminates MOUs’ authority to determine and maintain a diversified energy portfolio is fiscally irresponsible to the ratepayers.While some areas are more suited for specific types of renewable generation, not all utility scale generation is appropriate in all locations.For example, the cost of constructing and operating solar energy generation can be prohibitive. While solar costs have declined over recent years, the capital costs, scarcity of land, lack of electric infrastructure, and diminished levels of generation output as compared to conventional generation can substantially drive the cost per megawatt-hour of solar energy production upward. It is unrealistic and cost prohibitive for the State of Texas to expect MOUs to provide economically priced electricity to its citizens while requiring a diversified energy portfolio that includes predetermined amounts of specific renewable sources without funding from the State. SOLUTION MOUs must preserve the local authority and governing structure to provide affordable electric service to its ratepayers.If energy portfolio diversity becomes a requirement, MOUs should have the option to determine which renewable generation source is most suited to each MOU’s service area.If a generation requirement is mandated, it should be applied uniformly to investor owned utilities, cooperatives, and MOUs.In addition, the State should supplement local government funding of the construction of utility scale renewable generation to offset the impact to the citizens of Denton. City of Denton 2013 State Legislative Program Page11 GENERAL LEGISLATIVE AGENDA Revenue and Taxation Support legislation that would require mandatory disclosure of real estate sales prices. Opposelegislation that would lengthen or broaden the scope of the current sales tax holiday. Opposeany legislation that would impose a sales tax holiday for textbooks. Oppose legislation that would restrict the ability of cities to impose and collect municipal impact fees from new developments. Land Use and Resources Supportlegislation that would provide municipalities the authority to regulate and enforce zoning, building codes, and property maintenance codes within extraterritorial jurisdictions (ETJ). Support legislation that would address the failure of utility companies to relocate their facilities in a timely manner as required by current law. Opposelegislation that would reduce a municipality’sauthority and discretion to approve the creation of a special district within a city’s incorporated area or ETJ, including the expansion of a district’s boundaries or powers. Opposelegislation that would erode city annexation authority. Opposelegislation that wouldreduce or eliminate development fees, exactions,or building permits. Opposelegislation that wouldrestrict cities’ ability to adopt or amend zoning regulations, or vest or otherwise create a property right in a zoning classification. Supportlegislation that would allow local governments to enact ordinances relating to health and safety regulations as applied to gas drilling and production activities. Support legislation that would allow cities to enact ordinances regulating development, including but not limited to issues related to Chapter 245 Local Government Code. Utilities Supportlegislation that preservesCongestion Revenue Rights (PCRRs) assigned to municipal utilities in exchange for supporting the nodal market construct. Supportlegislation that preserves the Self Regulation of Municipal Electric Utilities. City of Denton 2013 State Legislative Program Page12 Supportlegislation that protects the ability of governmental entities to maintain confidentiality of certain critical documents and activities. Supportlegislation that requires market participants and Retail Electric Providers (REPs) to be properly capitalized before they are allowed to participate in the ERCOT market. Supportlegislation that requires more stringent credit requirements for the startup of Retail Electric Providers (REPs). Opposelegislation that requires municipal electric utilities to pay uplifted charges for those ERCOT Retail Electric Providers (REP) that declare bankruptcy or for any other ERCOT short pay charges. Oppose legislation that would extend electric subsidies provided by municipal utilities to four-year state universities, upper level institutions, Texas state technical colleges or liberal arts colleges. Opposeany legislation that will increase ERCOT Fees. Opposelegislation that exempts any further exemptions to the drainage fee. Opposeany legislation that would limit or prohibit a city's ability to make and sell compost/mulch products, inside and outside of the city limits. Supportlegislation that would fund the state water plan in orderto reduce the stress on current local and regional sources of water, provided that such legislation does not negatively impact local revenue. Opposelegislation that would impose state “tap fees” or any other type of state charge on municipal water systems. Transportation Support legislation that would retain limited authority for TxDOT to enter into public-private partnerships on specific projects. Supportlegislation that would identify additional transportation revenue to enhance statewide and regional ability to maintain and improve transportation infrastructure,and that would provide metropolitan areas with flexible solutions to solve problems and ensure that areas contributing to transportation solutions will not be penalized with a loss of traditional transportation funding. Supportlegislation that would constitutionally protect all revenues in Fund 6 and discontinue the diversion of transportation revenues to non-transportation purposes, and appropriate all revenues from highway user fees and taxes to fund transportation. City of Denton 2013 State Legislative Program Page13 Support legislation that would index the motor fuels tax to reduce the decline in purchase power of transportation funding. Supportlegislation that would increase vehicle registration fees to address transportation funding needs. Supportlegislation that would enforce existing regulations and penalties of driving requirements (e.g. vehicle registrations, driver licenses, and vehicle insurance). Opposelegislation that would create a Regional Mobility Authority in the four county area of North Central Texas including Dallas, Denton, Collin and Tarrant Counties for the purpose of administering funds received through revenue sharing agreements. Supportlegislation that directly benefits Denton County Transportation Authority, if such proposals do not adversely affect the city’s interest. Public Safety Support legislation that would require 100 percent reimbursement of costs incurred by cities for services provided during emergency evacuation and shelter operations resulting from an emergency evacuation ordered by the governor or the governor’sDivision of Emergency Management. Opposelegislation that further restricts a city’s ability to implement a photographic red light enforcement system to use cameras at traffic lights and impose a civil penalty for running the light. General Government Opposestate pre-emption of municipal authority in the regulation of payday lenders, unless proposed legislation provides adequate protections from aggressive and harmful lending practices. Supportlegislation that heightens environmental standards, improves air and water quality and protects the health, safety, and welfare of Texans. Supportlegislation that would exempt cities from any federal collective bargaining legislation that may become law in the future. Supportlegislation amending Section 11.1825 of the Tax Code by adding that community housing development organizations (CHDOs) must receive an exemption from taxation from any affected municipality prior to receiving a tax exempt status from the local property appraisal district. Supportlegislation that directly benefits UNT and/or TWU, if such proposals do not adversely affect the city’s interest. Supportlegislation that directly benefits Denton ISD, if such proposals do not adversely affect the city’s interest. City of Denton 2013 State Legislative Program Page14 Opposelegislation that would further reduce funding to Denton ISD, if such proposals do not adversely affect the city’s interest. Supportlegislation that would provide funding for Early Childhood Programs, including full-day service pre-kindergarten programs. City of Denton 2013 State Legislative Program Page15 Exhibit2 AGENDA INFORMATION SHEET AGENDA DATE: December 18, 2012 DEPARTMENT: City Manager’s Office CM: George Campbell,City Manager SUBJECT Consider appointments to the Denton County Housing Finance Corporation (DCHFC) BACKGROUND th On November 30, Council was provided an Informal Staff Report regarding upcoming vacancies on the DCHFC. The terms of all five members appointed by the city of Denton will expire on December 31, 2012. Council may re-nominate the current members or submit new names for consideration. The Denton County Housing Finance Corporation is a statutory body established for the purpose of providing financing for the cost of residential ownership and development that will provide decent, safe and sanitary housing for residents of Denton County at prices they can afford. The city of Denton has five appointments to this Board. Board appointments are for six years, board members serve until they are replaced, there are no term limitations in the current bylaws and members must reside within Denton’s city limits. The Commissioners Court must formally approve City Council nominations to the DCHFC Board. Denton currently has four people serving on the board and one vacancy. Mark Chew, Linnie McAdams, and George Highfill were appointed in July 2007 for a six year tern which will end on 12/31/2012. Paul Chandler was appointed in February 2012 to complete the unexpired term of Phil Diebel which will also expire on 12/31/2012. Phil Gallivan, appointed in July 2007, recently resigned. Nominations submitted to Commissioners Court will serve until 12/31/2018. If you require any further information, please let me know. Respectfully submitted: Jennifer Walters City Secretary Attachment: DCHFC Committee List City of Denton Denton County Chandler, Paul R. 4/17/2012 12/31/2012 6 yrs. Mr. Paul R. Chandler paul.chartdler(ct�rneridartbartktexas.carn Housing Finance Corporation President Denton Market 940-320-5206 Meridan Bank Texas 915 Florence St. Fort Worth, TX 76102 City of Denton Denton County Chew, Mark 7/10/2007 12/31/2012 6 yrs Mark Chew Housing Finance Corporation Vice Chairman P.O. Box 2725 Denton, TX 76202 FAX:940-387-2487 PHONE: 940/383-1083 (0) rnchewirai?aal.carn 940/566-6511 O City of Vacant-Phil Gallivan Denton Denton County resignation 7/3/2007 12/31/2012 6 yrs. Housing Finance Corporation City of Denton Denton County McAdams, Linnie 7/3/2007 12/31/2012 6 yrs Ms Linnie McAdams Housing Finance Corporation 1120 Kendolph Drive Denton, TX 76201 I.rn.rncadarn�a(�att.net P H O N E: 940/382-6930 C E L L: 940-206-4412 City of Denton Denton County Highfill, George 7/10/2007 12/31/2012 6 yrs Mr. George Highfill Housing Finance Corporation 3204 Windy Hill 940-220-6634 Denton, TX 76209 940-382-6193 qehiqhfill(r�ai�tcb.carn C E L L: 940-391-9545