HomeMy WebLinkAboutApril 09, 2013 AgendaAGENDA
CITY OF DENTON CITY COUNCIL
April 9, 2013
After determining in Open Session in that a quonim is present, the City Council of the City of
Denton, Texas will convene in a Closed Session on Tuesday, April 9, 2013 at 3:00 p.m. in the
City Council Worlc Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which
the following items will be considered:
1. Closed Meeting:
A. Competitive Matters Concerning Public Power Utilities — Under Texas
Government Code Section 551.086.
1. Receive competitive public power information from staff regarding plans
and proposals respecting the Denton Municipal Electric ("DME") system
and its resources; and discuss, deliberate and provide staff with direction
regarding such matters.
B. Consultation with Attorneys — Under Texas Government Code Section 551.071.
1. Consult with the City's attorneys regarding legal issues associated with
the delegation of authority to the City Manager to malce offers and accept
counter offers to purchase real property for public worlcs and electric
utility capital projects where the duty of the City's attorneys to the City of
Denton and the Denton City Council under the Texas Disciplinary Rules
of Professional Conduct of the State Bar of Texas clearly conflicts with
the provisions of the Open Meetings Act, Chapter 551 of the Texas
Government Code.
2. Consult with and provide direction to City's attorneys regarding legal
issues associated with the regulation of gas well drilling and production
with the City Linuts and the extraterritorial jurisdiction, including
Constitutional limitations, current and proposed statutory limitations upon
municipal regulatory authority, current and proposed statutory preemption
and/or impacts of current and proposed federal and state law, including
case law, regulations, and proposed legislation as it concerns municipal
regulatory authority and matters relating to enforcement of the ordinance.
Note: 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.
Following the completion of the Closed Session, the City Council will convene in a 2"a Tuesday
Session to consider the following:
NOTE: A Work Session is used to explore matters of interest to one or more City Council
Members or the City Manager for the purpose of giving staff direction into whether or not such
matters should be placed on a future regular or special meeting of the Council for citizen input,
City Council deliberation and formal City action. At a Worlc Session, the City Council generally
receives informal and prelinunary reports and information from City staff, officials, members of
City committees, and the individual or organization proposing council action, if invited by City
City of Denton City Council Agenda
April 9, 2013
Page 2
Council or City Manager to participate in the session. Participation by individuals and members
of organizations invited to speak ceases when the Mayor announces the session is being closed to
public input. Although Worlc Sessions are public nieetings, and citizens have a legal right to
attend, they are not public hea�ings, so citizens are not allowed to participate in the session
unless invited to do so by the Mayor. Any citizen may supply to the City Council, prior to the
beginning of the session, a written report regarding the citizen's opinion on the matter being
explored. Should the Council direct the matter be placed on a regular meeting agenda, the staff
will generally prepare a final report defining the proposed action, which will be made available
to all citizens prior to the regular meeting at which citizen input is sought. The purpose of this
procedure is to allow citizens attending the regular meeting the opportunity to hear the views of
their fellow citizens without having to attend two meetings.
1. Receive a report, hold a discussion, and provide staff with direction regarding delegation
of authority to the City Manager to malce offers and accept counter offers to purchase real
property for public works and electric utility capital proj ects.
Following the completion of the 2"a Tuesday Session, the Council will convene in a Special
Called Session to consider the following:
1. Consider adoption of an ordinance of the City of Denton, Texas, delegating certain
authority to the City Manager to malce offers and to accept counter offers to purchase
eligible real property interests necessary for City of Denton public worlcs and electric
utility capital improvement proj ects; authorizing the City Manager to execute contracts to
purchase said real property interests for and on behalf of the City of Denton; authorizing
the City Manager to expend funds in accordance with the terms of said contracts;
providing a severability clause; and providing an effective date.
2. 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 upconung 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 talcen, to include: expressions of
thanks, congranilations, or condolence; information regarding holiday schedules; an
honorary or salutary recognition of a public official, public employee, or other citizen; a
renunder about an upconung event organized or sponsored by the governing body;
information regarding a social, ceremonial, or community event organized or sponsored
by an entity other than the governing body that was attended or is scheduled to be
attended by a member of the governing body or an official or employee of the
municipality; or an announcement involving an imminent threat to the public health and
safety of people in the municipality that has arisen after the posting of the agenda.
City of Denton City Council Agenda
April 9, 2013
Page 3
CERTIFICATE
I certify that the above notice of ineeting was posted on the bulletin board at the City Hall of the
City of Denton, Texas, on the day of , 2013 at o'clocic
(a.m.) �P.m.)
CITY SECRETARY
NOTE: THE CITY OF DENTON CITY COUNCIL WORK SESSION ROOM IS
ACCESSIBLE 1N ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT.
THE CITY WILL PROVIDE SIGN LANGUAGE 1NTERPRETERS FOR THE HEARING
IMPAIRED IF REQUESTED AT LEAST 48 HOURS 1N ADVANCE OF THE SCHEDULED
MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 OR USE
TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-
RELAY-TX SO THAT A SIGN LANGUAGE 1NTERPRETER CAN BE SCHEDULED
THROUGH THE CITY SECRETARY' S OFFICE.
s:\legal\our documents\miscellaneous\13\agenda information sheet re-work.doc
Wc�rk Sessic�n 1
AGENDA INFORMATION SHEET
AGENDA DATE: Apri19, 2013
DEPARTMENT: Legal Department
CM/DCM/ACM: Anita Burgess, City Attorney
SUBJECT: Consider adoption of an ordinance of the City of Denton, Texas, delegating certain
authority to the City Manager to make offers and to accept counter offers to purchase eligible
real property interests necessary for City of Denton public worlcs and electric utility capital
improvement projects; authorizing the City Manager to execute contracts to purchase said real
property interests for and on behalf of the City of Denton; authorizing the City Manager to
expend funds in accordance with the terms of said contracts; providing a severability clause; and
providing an effective date.
BACKGROUND: The City is in the process of acquiring multiple tracts of interests in real
property necessary to construct various electric utility and public works projects. The number of
acquisitions has grown exponentially over the last several months, and may be expected to grow
even more in the upcoming five (5) years due to operational needs, as manifested by the City's
five-year Capital Improvement Projects (CIP) budget.
In the previous five-year capital program, the Utilities/Streets have been able to complete
approximately $135 million of projects. Currently, the projected five-year capital program
budget is approximately $600 million. The proposed capital program involves a substantial
increase in worlcload across the organization. Since many of the necessary acquisitions are linear
in nature, i.e., streets, pipelines or electric transmission lines, the volume of property acquisitions
is quickly becoming unmanageable. The volume and type of capital projects has resulted in a
substantial increase in workload, and has required staff to loolc at more efficient ways to
consummate the property acquisitions.
Furthermore, Senate Bill 18 has made property acquisitions by municipalities even more
cumbersome. Before Senate Bill 18, the City Council would authorize an offer and authorize the
exercise of eminent domain, all in one action. With the advent of Senate Bill 18, multiple offers
are now mandated by law. At present, the City Council authorizes an initial offer, At a separate
council meeting and in a separate action, Council authorizes a final officer. At a separate council
meeting and in a separate action, Council authorizes the exercise of eminent domain, (Please
note that all authorizations of eminent domain will continue to be made by the City Council, and
nothing in the delegation ordinance affects this.) Furthermore, the Council reviews and provides
direction on every counteroffer, even if the counter is fractionally more than the offer. Coupling
the volume of property acquisitions with the mandatory requirements of Senate Bill 18, and
slotting the various required actions into the council's calendar, has created an environment
where bottlenecicing of projects is inevitable.
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Some of the above addressed issues may be relieved by delegation of specified and limited
authority by the City Council to the City Manager,
At the City Council meeting on March Srt', Council posed some questions to the delegation
ordinance. A question was raised as to whether the ordinance delegated to the City Manager the
authority to determine that property should be talcen by the City and also whether the City
Manager would have the authority to determine the site specific locations of various projects, As
staff inentioned at the March Sth meeting, this ordinance is not one malcing those substantive
determinations. Rather, it is one delegating specified and limited authority with regard to the
processes of property acquisitions after the City Council has determined projects should proceed
and where such projects should be located. To assure this is the case, staff has added clarifying
language to the ordinance. Staff has also further modified the ordinance in the interest of
assuring council oversight by requiring quarterly reports and by limiting authority to the City
Manager rather than to the City Manager or his or her designee.
A councilmember inquired as to why the delegation of authority relates to only "Eligible
Property" as defined in the ordinance, and not as to the "Capital Projects" as defined in the
ordinance. The ordinance, in this respect, operates as yet another limitation on the authority
delegated to the City Manager, Only "Eligible Property" acquisitions, which are only a poi-tion
of the required property acquisitions for a"Capital Project" are subject to the delegated authority
under the ordinance. Those matters not within the definition of "Eligible Property" must go to
the City Council for authority. Staff is of the opinion that projects relating to fee purchases (as
opposed to easements) should not be subject to the delegation ordinance except as defined by the
term "Eligible Property." This is due to the increased level of environmental rislc. However,
road fee matters and linear transmission facilities, which are defined as "Eligible Property", are
eligible for delegation. This is because the City generally purchases sm�ll fee tracts for the
actual "right-of-way" footprint as to roadways. In the case of electric utility transmission
acquisitions, staff was attempting to accommodate both the linear transmission project (typically
talcen by easement) and the expressed desire of some council members to consider talcing
recreational right-of-way for bicycle connectivity (which may require a fee).
Additionally, a speaker questioned the propriety of the declaration of public purpose stated in the
ordinance. Again, the ordinance is a delegation ordinance as to the process of property
acquisition. It is not a substantive decision relegating to the City Manager all authority to decide
which property should be acquired in the public interest. It simply declares that talcing property
for the basic and fundamental purpose of providing essential governmental services, including
electric transmission, street projects, water projects, sanitary sewer projects and storm water
projects, after the City Council has authorized such projects and determined appropriate
locations for the projects, is in the public interest and serves a public purpose. Further, the taking
of property for these purposes has a public purpose whether the City Manager acts under limited
delegated authority from the City Council or the City Council acts on each and every offer or
counteroffer made in the taking of the property, Further, the delegation to the Manager has a
public purpose, for the reasons stated in this AIS and in the ordinance.
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Finally, a question arose as to whether a citizen has ample access to the City Council with regard
to considerations talcen as to his or her property. First, all authorizations of eminent domain will
be made by the City Council, even under the delegation ordinance. Second, citizens will
continue to have full access to the council through citizen reports and/or through individual
contact with council members. Third, the ordinance ilow clarifies that the City Manager may
elect to place an offer before council rather than acting under his or her delegated authority.
Concern by a citizen as to transparency of offers may be such a factor which would cause the
City Manager to place the matter on a council agenda for consideration by the City Council.
In sum, the proposed ordinance delegates authority to make offers and to accept counteroffers,
to purchase certain types of real property interests, for the purposes and within the fiscal
parameters prescribed in the proposed ordinance.
Accordingly, please see the attached proposed ordinance for your consideration.
OPTIONS: Approve, deny, or postpone the action,
RECOMMENDATION: Staff recommends approval of this Ordinance.
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Anita Burgess
Attachment: Ordinance
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AUT����ORI"TY TfJ �I"HE CI'1,Y MAN�AGF?IZ -�=,�����-����������� ��-�������w�l'��;����'��; "I"O MAKE? C1�;����ER� AND
'I"O �CC"F�P"1" COU�N'I�"EI2 OC�F"FI2S 'T'(7 PU�I2.C;'�-�ASE £;LICrIBI,1� R:F?l�.I., E'R(JF�:ER�I'Y
[N7'};RCS"I'S i�IEC�'�;SS�-1RY �O�t C'ITY ()F I7E.;N"TON PLTE�I_,IC WORKS AND ��,I,��C"TRIC
�C1TI�I.,ITY C�AP�T"�I, IMI'RC)V�F;M�F���N"�C" P�I�OJF;C�'1"`�; Ai.T"T'I��i(�IZIZI���C,r T�11: CI'�CY M�NACSER,
�R�. �����.-����,,�����'�,..&d, .-7'O F;�ECtJ"TE C"C)N�1"�1C:TS TO �'UIZC�IASF SAID REAI�
�'R.()PCR'l,Y IN 1"�;I?,�:5"1 S FOR t1NI) ON BE;���i_,��" OF 'THF; CI�C'Y OF I�EN"]'(7N;
t�UTHORI7ING THE CI'I�Y MANAGI;R �.� ���. �,��,�.���I���,��..;;--T() k;XPI;ND ��tINTaS IN
AC�CORI�ANCE WI1'H THE T�:?RM� OI� SAII> C(7P�i'I'RAC�"TS; PR(aVIDING A
SEV1=;�Ft�AF�II:,I'�I"Y C`LALJ��iE; ANL7 PI�.OVIDINCi �I� �;1��"�;"�C�T1V�; i.)�'1"E.
WHEIZ���.;A�, th� C�ity C�'���u�ncil ��f thc; City r��1' I:7en�on (a) ha.4 apprc�v�d Capital.
Tmprc�vement I?lans c�f the City �af I7ent�7n (collectively, �the "Plan"), the Plan providin� for,
amc�ng� other matter�;, (i) th� cc�n:�truciir�n c�f xnultiple c�lectri�; transnxission line prc�jects (the
`°El�ctric �'r��ject"); (ii) th� cc��t�siructic�n ���f� ap}�roximat�ly 2.7 lniles c�f �xpansion and
irnpr��vements ic7 F3�nni� �3rae �t�reet (the "°F3c�nn�ic �3rae I?roject"); (iii) the const�r�.�ct�i��n <7���
a�prr�ximat�ly 3.$ mil�s o�f expansi�an and �iniprc�vements tc� Mayhill Rc�ad (the "Mayhill
3'raject"); and (iv) c�ther various pt�k�lic wark� pr��jects ("I'ublic Wc�rks Projects"); and (b)
c��7ntel�aplat�;s �the ad�7ption crf" �futuxe capi�ta�l impr�>v�ment p�ans for additi�r�al �ublic works a�nc�
electric ut�ility projects (the "Additianal Puk�lic Wc�rks I'rc�jects") (the 1�lectric Praject, f3onnie
£3rae Praject, Mayhill Prc�ject, Public Warks Prc�jects and Ac�c�itic�taal �'ublic Warks 1'rc7jects are
herein collectively r�;f�:r-r�;d tc� as the "�apital F'rojects"), �����,
W1-�EIZI��,AS, �t11�. C;a}7ital P�raj�cts sLr�ve ti7e �ublic ir�terest of th4 citirens o�f t�h� C."it�y c�f
T)entc�n in prov�i��in�, (i) electric utility inErastructur� expansic�n and imp�rov�ments; (ii) street and.
rc7aciway expansian and impravenaents; (iii) water utility iixfra�tructure expansic�n and.
im�arc�vemcnts; (iv) sanitary sew�r �,�ti�ity infrastructur�. e;xp�nsic�n and im�rovenlents; a�nc� (v)
starr�� water utility infrastructure cxp�nsion and iYnpr<�vezn�:n�ts (h�.r�in cc�llectively r�f�erred to as
the "Pul�lic Wc�rks f�acili�tie5"); �����
VJIiEF2EAS, nu�z��:rc�us r�al pr�a�aerty int�rests are in ne�;d c�f acc�uisi�ian to construet the
I C"ap'rtal Prc>jects; �:��:�.�:�
WF�ER����S, the ��ffcr:� crf t%e City af' i�entc>n t�7 pt�rchase th� r�a1 prc�pe�rt�y intcrests
. � . , °� � � � � � w��u� "�'�r��� q°`���������^�..._are based �tpc�n thirci
ne�,essar �ar cons�t�u�,txc��n �7#� t � ���,�� ����� -��
. .� � �,�� � �� ....
�aarty appraisa]s, prepareci by a certitied appraiser (the "Appraisals"), the ��praisals providin�;
fc�r ihe v��lue ��f thc real prapc,rty interes�ts tc� be acyuired, and the da�ma�;es, if any, tc� any af the
c�wners' remaining pro�a�rtY (the "'I"atal C'c�r�lpen:�atic>n Amaus�i"); ������
VJ�I-��ERF�S, du� tcr th� volumc <�f t�he pro���rly inte�re�t�s z�ecessary ��ar c��mpletian r�f the
�`,�������.-�������,� ��ua�v��� �'������ �.������a��, atid to avc>id unnecessary c�uplication anc� time
cc�nsumptivc activiti�s �kay the C"ity Cc�uncil, the�� C'ity Gauz7ci� �'inds that it is acivisabl� and i�n t,hc�
b�st interest c�f the citirens c�f the C�ity of Dentan, tc� dele�;ate certain auth�rity ta the City
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Max�a�;er ��� ���� �������������-tr� prc�v�ide c�ff�rs a�nd accepi c<>u�nt�r offers, �iased upr�n obj�ctive pri�:�e
crit�ria, re�;arc�in� such real prape,rty inter�st ac�uis�iti�n activities; ��,����
W��iE�CZE;AS, th� de��;�atic>n �7�` auth�7r�ity wi11 re�uc� t�he C���ity c�f Derr�t�c�n's ccasts f47r the
activities relat�ed to acc�uisition crf t1�� n�;c�ssary real pro���rty ini�;rests and enlianc� the tim�ly
� c�onst�ructi�7n and cornplc�ti�an af the Pu�ilic W�rks Facilitze,s, ��„u����
WF���E���E�S, ihc� �7uk�lic 3ntei��st is sc�rvr�ci by th�; authority c�e���;ated herein and the C'ity
C�r�uncil finds that ��ub�ic use and ben��t ac�rue� tc7 t17e City of �I7entan, Texas; �����,�;�
WI-�ERE;AS, ���:����u����..�������������� l���W:�..�a�� �k���u�.�..��:.���������� ���__���w�u��V���������� ������ ��� ���.����n.�.
���r��b ����'.......wV�� � r.�������� �����������._�°����u�� .:����, �".��� �'������.a p..�.. ���tl_��.➢ ������°:... ����;��.._.._��� ���������vua�������� �
:.. ..... ° x .�......�`_ .....���u�������� �����!��..�.� �� ������r ��,��'.�a��1�����_�� 4����°���� ��� ���"
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�� ���� ��� �r� ���� � �.��°���������� ���u� ��� � �� .. w.w.....� _ ......_.. �
.�, ' �u��� � _ _.. ....�����u�_���u���i�� ������ ��� ��✓�d➢��u� ����� l�u��i���.���.._���u���uu����....�����Il��
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]'�fOW, 1"HE�REF()RE,
"I'F-3F.., C'OCJNC�II., C)�{ T�-�:E CI'1"Y OF D�I`�"1"()N I��:R�;E3Y (JI2.I�AINS:
SfaC�.T[Ol�i 1. The C'it�y C��7uncii �h�;rr�by ��ir�ds that a�ublic use and necessity exists, a�nc�
that the public welfare and convenience rec�uirc the acc�uisitian by the City af Dentc�n, Texas, of
irateres�ts in re�l prope�rt�y necc�ssary, ir� whole or in part, for tl7e �����'�������� :�'��������-����Il���� �"�;��°��»
� �����_u�A�: �w�the "Prc�perty Interests")w, ..II��..�- ���...� ���;u����������.� ��-���-���-�����������b�....��
�.��..��;��,��.��������...�����-���������.����:��������;�..,������•� ����° �������-�^���-��...:�.��;������^�����-������,..����°�.,�
���������.���������� cach t.o s��rve tl�e �ubl�ic and t�.l�e citi�ens of ih� C'ity of Dentc�n, Texas. '.i'l�e recitals and
preambles c�f this <rrc�inance are hereby acic7pted as fi�rther lindin�s c�f the City Council.
( Si=�,C"TIC.71'�f 2. "T'l�e City Manager % ���° �;����w�-=°��-��a�:��;�.m� °'� �a������amw% is hercby �utl�arizec�
to make, execute and delivet�, for and c�n �i�;ha11� af the City of I7entcin, oflers tc> purchasc. (the
"Offer" or "C7f�fe.rs"), a��d to acce�t cc�unter�ffers tc> s�ll (th� `°S�.ttleinezzt Aznc�rXrits"), k;li�iblt;
F'roperty Interests, as de�ned �aelow, within the p�ram�ters set forth herein:
A. The Offcr(s), as dele�atccl herein, shall be ix� the amount �f the "I'c�tal
Ca�npensatic�n �^,.maunt, as prescribed in the Apprais�l fc�r the subject f'rap�rty
Interest�s, s�� lon� as the 'I"atal C«mp�;n�atir�n An�ou�nt dcaes ncrt �;xc�;�d T"}aree
Hundr�;d Fifty Thous�nd and Nc7/10() Doll��rs (�35�,0()O.00j.
B. The Setl�ement A��a�ou��ts, as c��1���ated herein, sha�11 n��t �;xceed (i) 'Thr�e
��undred Fifty 'I"housar�d and No/100 I)allars ($350,0(�0.00); c�r (ii) nne hundred
tif'teen perce�nt (1�5%) of the 7,�tal Cc�mpez�s�tic�n Am��u�nt, as prescribed in the
Appraisal f�r the subject Prc�perty Interests.
C. Of�"�r(s) ar Settlem�nt �mc7unts (i) �;��ater t.han Threc Hu�zxdre�d F�i1'ty
Thausand a�nd �Nc�/10U I7c711axs ($35(�,(�OC).00); or (ii) that �xceed c�ne hundr�d
fifteen �rerceYit (1 ] S�'/a) of the "i"otal Com�en;�atic>n Amc�unt, as prescrib�d in th�
1'a�e 2
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ApPraisal f�ar the subject I'rc�pe�-ty Interests, are t� c>i�ly be approved by actic�n crf'
the City Council r�fthe City ot I�enton, "I'exas. Fc7r th�; purposes of"this ordi�aance,
c�lc�sin� c�sts to �ie barne by the G�ity r��� �7ez�tatx (the "C'lc>sin�; Cc�sts"), in cl�7sing
tra�nsactic�ns to acquire Eli�;ilale �'rc�perty Interests, are not ta be inclizded in the
autharized expexlditure liinitatic>ns pr�,scribec� in this ardinance.
S�;C I"ION �. �s used in this ordin�n�e, Eli�ible Yrop���rt�y Interests are; d�finLd as
Pr�7p�riy Interest�s c��rnpris�;c� c>f (a) easem�nis, of" any �ind or nature; ar�d (b) f�e simple� int�rests
in c�r t�> real praperty tc� be ut�i�iz��, in wl�olc or in part�, (i) for roaciway purpc7ses and uses, and
purpases an� uses associate� th�rewith; and (�ii) f�ar 1irr�ar transmissi�an of �lectricity, a�nd
purp�>ses an�i uses assaciat�d th�;r�,with, but shall s�aeci���ically e:xclude real �x���p�rty to l�e uti�ired
fc�r til�e lacali�n c�f el�ctric substatiar� in�Eras�tructurc.
S�;C'7"1ON 4. The City Mana�er -��� ��� �-�����,��is hereby autharired ta execute far
and on behalf ���t� the C:�ity (a) cc>ntract�s t'�r th� purchas�; crf' t�he E]igible �'r4>pert�y Tnt�rests
("Agr�e�n7ents'°), l�y and b�t�w4en the City and the c�wner(s) ra�f the� Eli�iblc Prc�perty Int�rests, (i)
in c�n�tormanc� witll th� terms ��t �he d�;le�atic�n, provic��d in S�ctiori 2, a��yve; �and (ii) upern
atl�er terms and �rovisic�ns ac;ceptabl� tc� the C.'.ity Mana�,�r q�.� ���-������������� and in fc�rrn
acc�ptable tc� the Cit�y �t�t��r��ey� ���.������%���m������-�; and (b) any oth�r dc�cu�ments nece��ary for
cic�sin� th� trar�sactions cant�ez��plat�d by the A�r�c�m�r�ts.
SF�C"I"ION S. 7'he City Ma�zagcr% ���-.����..-�����,�•��; is her�by authc�rized tc� make
expenditures in accoz•dance with the A�;i�eements, including withaut limitaticrn, the Clasing C�'�sts,
SFC�I'ION Ei. The Of`i�;rs shall be m�de irt accorcianc� with a11 applica�le law.
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��y ��u� e �'u�� ��'c��u��� �w��
���:� �I��T�I � .�...��� w�"���r' S��aa��;�.��.u.�Vrv������ ���; �c,���»� ��������:�:�,..�.��°�:���r��¢�° ���,� �..�.��'�.t����u���.�R �� ��.:��s���°t
�����,���"��u��;� ����...���..�..°������:u� ������:� �a����°�� ��� _a�u... pq�� ����� ��s����,���a�. ����� ����������°�n��..q���u°���� ��� �.�:..��w��°���....��u�w.
� . . w._.......u. � _ _. ..�.... �.� . � .,....�����, ���a� �.��' w�mq���:� ���ut`������������� ���u��� m�u°�� ��.� w�u ��������;uc����
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...- -� S�,GTIf.)1`� -�. If any section, artic�e, paragraph, s�;ntenc�, �ahrase, clause car w�rd in this
... , �.
c�rdinance, c�r application t�hereof t<� any �persc�ns or circu�nsta�nces, is held invalit� c�r
unconstitutianal by a co�.�.rt of c<7mpc�te�t jurisdicti�7n, suc;h hc�ldin� shall no% a�fect the validiiy c�f
t��he rema.inin� pc�rtioxxs c�f this c���dinance; tl�e C�'ity Cc7�:incil dLClares t�h�t it wc�ulci ha�ve c�rdaine;d
such remainin�; pc7rtic�n des�ite such invaiidit�y, and such r�maix�in� pr�rti�7n sha11 re�z�ain in �full
force and e{=fect.
Pa�e 3
s:Ale��tl\c��ar ���cuments\c�rdir�a�nc�es\13\cicl�gatiGxn authc�r�ity �>rdinance re-wtark r�dlin�-� with rc chan�es.cfc'2c
S�:?C�I"ION �� ��. "['his c7rdinance sha�ll l�c�cc�n�e �ft�ective immediat�ly upc�n its
passa�e and approval �: .
�'ASSEL7 �ND AF'PItC)VED this the day crl`�.� , 2Q13,
MAI�I� A. f3LJRR()UCi�-IS, MAYOR
A'T°TES'I':
JI;NI'�I1FER WAI��I'�:;RS, C1'I'Y SE;CR:E;"I'ARY
�
A�'�'I2OVLD AS "I'U LF;G�AL ��OI2M:
AN�ITA B�JRCi�;SS, CI'T"Y AT"1'CI��N�E:;Y
:
I'�Yge 4
s:\legal\our documents\ordinances\l3\delegation authority ordinance re-work redline-2 with rc changes.doc
ORDINANCE NO. 2013-
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, DELEGATING CERTAIN
AUTHORITY TO THE CITY MANAGER TO MAKE OFFERS AND TO ACCEPT
COUNTER OFFERS TO PURCHASE ELIGIBLE REAL PROPERTY 1NTERESTS
NECES�S�A�I�Ir� FOR CITY OF DENTON PUBLIC WORKS AND EI;ECTRIC UTILITY
CAPITAL IMPROVEMENT PROJECTS; AUTHORIZING THE CITY MANAGER, TO
EXECUTE CONTRACTS TO PURCHASE SAID REAL PROPERTY INT�RESTS FOR AND
ON BEHALF OF THE CITY OF DENTON; AUTHORIZING THE CITY MANAGER TO
E�PEND FUNDS IN ACCORDANCE WITH THE TERMS OF SAID CONTRACTS;
PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTNE DATE.
WI�EREAS, the City Council of the City of Denton (a) has approved Capital
Improvement Plans of the City of Denton (collectively, the "Plan"), the Plan providing for, ,
among other matters, (i) the construction of multiple electric transmission line projects (the
`Blectric Project99); (ii) the construction of approximately 2.7 miles of expansion and
improvements to Bonnie Brae Street (the "Bonnie Brae Project"); (iii) the construction of
approximately 3.8 miles of expansion and improvements to Mayhill Road (the "Mayhill
Project"); and (iv) other various public works projects ("Public Works Projects"); and (b)
contemplates the adoption of future capiial improvement plans for' additional pub�lic works and -
eleciric utility projects (the "Additional Public Works Projects") (the Electric Project, Bonnie
Br•ae Project, Mayhill Projeci, Public Works Projects and Additional Public Works Projects are
herein collectively referred to as the "Capital Prnjects"); and.
WHEREA.S.,,.the. Capiial Projects�serve the.publie interest o� tlhe citizans� of the City of
Denton in providing (i) electric utility infrastructure expansion and improvements; (ii) street and
roadway expansion and improvements; (iii) water utility infrastructure expansion and
?mproverraents,.,.(��)" �anitary sewer utili.�y �nfras�ru�ture� �xpansio�� and improvaments; and (v)
storm water utility infrastructure expansion and improvements (herein collectively referred to as
the "Public Works Facilities"); and
WHEREAS, numerous real property interests are in need of acquisition to construct the
Capital Projects; and
WHEREAS, the offers of the City of Denton to purchase the real property interests
necessary for construction of the Public Works Faciliti.es,.ar.e,based.,upon, third,party appraisals,.
prepared by a certified appraiser (the "Appraisals"), the Appraisals providing for the value of the
real property interests to be acquired, and the damages, if any, to any of the owners' remaining
property (the "Total Compensation Amount"); and
WHEREAS, due to the volume of the property interests necessary for completion of the
Public Works, Facaliiies,,.and to avoid unne¢essar3z duplica�ion-and� tiin���onsumptiwe act'rvities by
the City Council, the City Council finds that it is advisable and in the best interest of the citizens
of the City of Denton, to delegate certain authority to the City Manager to provide offers and
accept counter offers, based upon �bjective price criteria, regarding such real property interest
acquisition activities; and
s:\legal\our documents\ordinances\13\delegation authority ordinance re-work redline-2 with rc changes.doc
WHEREAS, the delegation of authority will reduce the City of Denton's costs for the
activities related to acquisition of the necessary real property interests and enhance the timely
construction and completion of the Public Works Facilities; and
� WHEREAS, the public interest is served by the authority delegated herein and" til�e City
Council finds that public use and benefit accrue to the City of Denton, Texas; and
6 ,
WHEREAS, nothing contained herein shall be deemed to be authority to take or acquire
property by eininent domain, rather the City Council shall make such determinations
independent of this Ordinance, and this Ordinance serves as a mere delegation of the process of
inaking offers required by law and accepting counteroffers within the limited amounts herein
specified; NOW, THEREFORE,
TIIE COUNCIL OF THE CITY OF DENTON H�REBY ORDAINS:
SECTION 1. The City Council hereby finds that a public use and necessity exists, and
that the public welfare and convenience require the acquisition by the City of Denton, Texas, of
interests in real property necessary, in whole or in part, for the Public Works Facilities (the
"Pr��erty Interests'.'), each to serve the public and the citizens of the City of Denton, Texas. The
recitals and preambles of this ordinance are hereby adopted as further findings of the City
Council.
SECTION 2. The City Manager is hereby authorized to make, execute and deliver, for
and on behalf of the City of Denton, offers to purchase (the "Offer" or "Offers'-'}� and to-�accept
counteroffers to sell (the "Settlement Amounts"), Eligible Property Interests, as defined below,
vvithin the parameters set forth herein:
A. The Offer(s), as delegated herein, shall be in the amount of the Total
Compensation Amount, as prescribed in the Appraisal for the subject Property
Interests, so long as the Total Compensation Amount does not exceed Three
Hundred Fifty Thousand and No/100 Dollars ($350,000.00).
B. The Settlemeni Arnounts, as delegated herein, shall not exceed (i) Three
Hundred Fifty Thousand and No/100 Dollars ($350,000.00); or (ii) one hundred
fifteen percent (115%) of the Total Compens.ation.Amount, as„ px�escxil�ed �n. the: „
Appraisal for the subject Property Interests.
C. Offer(s) or Settlement Amounts (i) greater than Three Hundred Fifty
Thousand and No/100 Aollars ($350,000.00); or (ii) that exceed one hundred
iifteen percent (115%) of the Total Compensation Amount, as prescribed in the
Appraisal for the subject Property Interes�ts,,.are to only be appro��ed by a�tion of
the City Council of the City of Denton, Texas. For the purposes of this ordinance,
closing costs to be borne by the City of Denton (the "Closing Costs"),,in closing
transactions to acquire Eligible Property Interests, are not to be included in the
authorized expenditure limitations prescribed in this ordinance.
Page 2
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SECTION 3. As used in this ordinance, Eligible Property Interests are defined as
Property Interests comprised of (a) easernents, of any kind or nature; and (b) fee simple interests
in or to real property to be utilized, in whole or in part, (i) for roadway purposes and uses, and
purposes and uses associated therewith; and (ii) for linear transmission of electricity, and
purposes anei-use� associated� iher��vith, but shall spec'rfi�ally� exclud��i�eal property to be utilized
for the location of electric substation infrastructure.
P 4
SECTION 4. The City Manager is hereby authorized to execute for and on behalf of the
City (a) contracts for the purchase of the Eligible Property Interests ("Agreements"), by and
between the City and the owner(s) of the Eligible Property Interests, (i) in conformance with the
terms of th�-del�gatYOn; prr�vid�d° in Section 2, abo�e;' and""(ii)' upon otlier terms ancl provisions
acceptable io the City Manager and in fonn acceptable to the City Attorney; and (b) any other
documents necessary for closing the transactions contemplated by the Agreements.
,
SECTION 5. The City Manager is hereby authorized to make expenditures in
accordance with the Agreements, including without limitation, the Closing Costs.
SECTION 6. The Offers shall be made in accordance with all applicable law.
SECTION 7. Nothing herein shall be deeined to prohibit the City Manager from
determining to place any offer nr counteroffer otherwise delegated to him or her by the City
Council under the terms of this ordinance on an agenda for consideration bv the City Council in
the event special circumstances exist which the City Manager opines necessitates consideration
by the City Council.
SECTION 8. The City Manager shall, at least quarterly, provide the City Council a report
specifying ihe occas�ions. u�o.�...v�hicn he. .or..she has exercised,�he: a�thoxity her�in, d�legated, the
amounts offered or settlements made and any other information material io transactions
authorized herein.
SECTION 9. If any section, article, paragraph, sentence, phrase, clause or word in this
ordinance, oi• 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 remainin,g,.�,ortion shall r.eraain in full
force arld effect.
SECTION 10. This ordinance shall become effective immediately upon its passage and
approval.
Page 3
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PASSED AND A.PPROVED this the day of _ , 2013.
MARI� �c. BURROUGHS, MAYOR "
ATTESTe
JENNIFER V6TALTERS9 CITY SECRETARY
I�
APPROVED AS TO LEGAL FORM:
ANITA BI1`RGESS, CITY ATTORNEY
B � �1
�� �� , � � ���z �
Page 4
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AGENDA INFORMATION SHEET
AGENDA DATE: Apri19, 2013
DEPARTMENT: Legal Department
CM/DCM/ACM: Anita Burgess, City Attorney
SUBJECT: Consider adoption of an ordinance of the City of Denton, Texas, delegating certain
authority to the City Manager to make offers and to accept counter offers to purchase eligible
real property interests necessary for City of Denton public worlcs and electric utility capital
improvement projects; authorizing the City Manager to execute contracts to purchase said real
property interests for and on behalf of the City of Denton; authorizing the City Manager to
expend funds in accordance with the terms of said contracts; providing a severability clause; and
providing an effective date.
BACKGROUND: The City is in the process of acquiring multiple tracts of interests in real
property necessary to construct various electric utility and public works projects. The number of
acquisitions has grown exponentially over the last several months, and may be expected to grow
even more in the upcoming five (5) years due to operational needs, as manifested by the City's
five-year Capital Improvement Projects (CIP) budget.
In the previous five-year capital program, the Utilities/Streets have been able to complete
approximately $135 million of projects. Currently, the projected five-year capital program
budget is approximately $600 million. The proposed capital program involves a substantial
increase in worlcload across the organization. Since many of the necessary acquisitions are linear
in nature, i.e., streets, pipelines or electric transmission lines, the volume of property acquisitions
is quickly becoming unmanageable. The volume and type of capital projects has resulted in a
substantial increase in workload, and has required staff to loolc at more efficient ways to
consummate the property acquisitions.
Furthermore, Senate Bill 18 has made property acquisitions by municipalities even more
cumbersome. Before Senate Bill 18, the City Council would authorize an offer and authorize the
exercise of eminent domain, all in one action. With the advent of Senate Bill 18, multiple offers
are now mandated by law. At present, the City Council authorizes an initial offer, At a separate
council meeting and in a separate action, Council authorizes a final officer. At a separate council
meeting and in a separate action, Council authorizes the exercise of eminent domain, (Please
note that all authorizations of eminent domain will continue to be made by the City Council, and
nothing in the delegation ordinance affects this.) Furthermore, the Council reviews and provides
direction on every counteroffer, even if the counter is fractionally more than the offer. Coupling
the volume of property acquisitions with the mandatory requirements of Senate Bill 18, and
slotting the various required actions into the council's calendar, has created an environment
where bottlenecicing of projects is inevitable.
s:\(egal\our documents�niscetlaneous\13\agenda information sheet re-work.doc
Some of the above addressed issues may be relieved by delegation of specified and limited
authority by the City Council to the City Manager,
At the City Council meeting on March Srt', Council posed some questions to the delegation
ordinance. A question was raised as to whether the ordinance delegated to the City Manager the
authority to determine that property should be talcen by the City and also whether the City
Manager would have the authority to determine the site specific locations of various projects, As
staff inentioned at the March Sth meeting, this ordinance is not one malcing those substantive
determinations. Rather, it is one delegating specified and limited authority with regard to the
processes of property acquisitions after the City Council has determined projects should proceed
and where such projects should be located. To assure this is the case, staff has added clarifying
language to the ordinance. Staff has also further modified the ordinance in the interest of
assuring council oversight by requiring quarterly reports and by limiting authority to the City
Manager rather than to the City Manager or his or her designee.
A councilmember inquired as to why the delegation of authority relates to only "Eligible
Property" as defined in the ordinance, and not as to the "Capital Projects" as defined in the
ordinance. The ordinance, in this respect, operates as yet another limitation on the authority
delegated to the City Manager, Only "Eligible Property" acquisitions, which are only a poi-tion
of the required property acquisitions for a"Capital Project" are subject to the delegated authority
under the ordinance. Those matters not within the definition of "Eligible Property" must go to
the City Council for authority. Staff is of the opinion that projects relating to fee purchases (as
opposed to easements) should not be subject to the delegation ordinance except as defined by the
term "Eligible Property." This is due to the increased level of environmental rislc. However,
road fee matters and linear transmission facilities, which are defined as "Eligible Property", are
eligible for delegation. This is because the City generally purchases sm�ll fee tracts for the
actual "right-of-way" footprint as to roadways. In the case of electric utility transmission
acquisitions, staff was attempting to accommodate both the linear transmission project (typically
talcen by easement) and the expressed desire of some council members to consider talcing
recreational right-of-way for bicycle connectivity (which may require a fee).
Additionally, a speaker questioned the propriety of the declaration of public purpose stated in the
ordinance. Again, the ordinance is a delegation ordinance as to the process of property
acquisition. It is not a substantive decision relegating to the City Manager all authority to decide
which property should be acquired in the public interest. It simply declares that talcing property
for the basic and fundamental purpose of providing essential governmental services, including
electric transmission, street projects, water projects, sanitary sewer projects and storm water
projects, after the City Council has authorized such projects and determined appropriate
locations for the projects, is in the public interest and serves a public purpose. Further, the taking
of property for these purposes has a public purpose whether the City Manager acts under limited
delegated authority from the City Council or the City Council acts on each and every offer or
counteroffer made in the taking of the property, Further, the delegation to the Manager has a
public purpose, for the reasons stated in this AIS and in the ordinance.
s:\legal\our documents�niscellaneous\13\agenda information sheet re-work.doc
Finally, a question arose as to whether a citizen has ample access to the City Council with regard
to considerations talcen as to his or her property. First, all authorizations of eminent domain will
be made by the City Council, even under the delegation ordinance. Second, citizens will
continue to have full access to the council through citizen reports and/or through individual
contact with council members. Third, the ordinance ilow clarifies that the City Manager may
elect to place an offer before council rather than acting under his or her delegated authority.
Concern by a citizen as to transparency of offers may be such a factor which would cause the
City Manager to place the matter on a council agenda for consideration by the City Council.
In sum, the proposed ordinance delegates authority to make offers and to accept counteroffers,
to purchase certain types of real property interests, for the purposes and within the fiscal
parameters prescribed in the proposed ordinance.
Accordingly, please see the attached proposed ordinance for your consideration.
OPTIONS: Approve, deny, or postpone the action,
RECOMMENDATION: Staff recommends approval of this Ordinance.
;
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4 ��
, _ , �
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F
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Anita Burgess
Attachment: Ordinance
s:Uegal\�ur dcrcumcnt�s\ordint�aice�\13\delc��aCi�ara s�rathority urdiriaance rc-�ucark rctllin�-2 with rc cha�n�cs.�1<,rc
�.��������� ��.�. ����.�1-
/1N C7RI�7IN�NCE C)}' TF�E CCTY ()F" DE;N'I'ON, "1'EXA�i, D1;I:.,F,CiATINC"i C",FR."("AI:frI
AUT����ORI"TY TfJ �I"HE CI'1,Y MAN�AGF?IZ -�=,�����-����������� ��-�������w�l'��;����'��; "I"O MAKE? C1�;����ER� AND
'I"O �CC"F�P"1" COU�N'I�"EI2 OC�F"FI2S 'T'(7 PU�I2.C;'�-�ASE £;LICrIBI,1� R:F?l�.I., E'R(JF�:ER�I'Y
[N7'};RCS"I'S i�IEC�'�;SS�-1RY �O�t C'ITY ()F I7E.;N"TON PLTE�I_,IC WORKS AND ��,I,��C"TRIC
�C1TI�I.,ITY C�AP�T"�I, IMI'RC)V�F;M�F���N"�C" P�I�OJF;C�'1"`�; Ai.T"T'I��i(�IZIZI���C,r T�11: CI'�CY M�NACSER,
�R�. �����.-����,,�����'�,..&d, .-7'O F;�ECtJ"TE C"C)N�1"�1C:TS TO �'UIZC�IASF SAID REAI�
�'R.()PCR'l,Y IN 1"�;I?,�:5"1 S FOR t1NI) ON BE;���i_,��" OF 'THF; CI�C'Y OF I�EN"]'(7N;
t�UTHORI7ING THE CI'I�Y MANAGI;R �.� ���. �,��,�.���I���,��..;;--T() k;XPI;ND ��tINTaS IN
AC�CORI�ANCE WI1'H THE T�:?RM� OI� SAII> C(7P�i'I'RAC�"TS; PR(aVIDING A
SEV1=;�Ft�AF�II:,I'�I"Y C`LALJ��iE; ANL7 PI�.OVIDINCi �I� �;1��"�;"�C�T1V�; i.)�'1"E.
WHEIZ���.;A�, th� C�ity C�'���u�ncil ��f thc; City r��1' I:7en�on (a) ha.4 apprc�v�d Capital.
Tmprc�vement I?lans c�f the City �af I7ent�7n (collectively, �the "Plan"), the Plan providin� for,
amc�ng� other matter�;, (i) th� cc�n:�truciir�n c�f xnultiple c�lectri�; transnxission line prc�jects (the
`°El�ctric �'r��ject"); (ii) th� cc��t�siructic�n ���f� ap}�roximat�ly 2.7 lniles c�f �xpansion and
irnpr��vements ic7 F3�nni� �3rae �t�reet (the "°F3c�nn�ic �3rae I?roject"); (iii) the const�r�.�ct�i��n <7���
a�prr�ximat�ly 3.$ mil�s o�f expansi�an and �iniprc�vements tc� Mayhill Rc�ad (the "Mayhill
3'raject"); and (iv) c�ther various pt�k�lic wark� pr��jects ("I'ublic Wc�rks Projects"); and (b)
c��7ntel�aplat�;s �the ad�7ption crf" �futuxe capi�ta�l impr�>v�ment p�ans for additi�r�al �ublic works a�nc�
electric ut�ility projects (the "Additianal Puk�lic Wc�rks I'rc�jects") (the 1�lectric Praject, f3onnie
£3rae Praject, Mayhill Prc�ject, Public Warks Prc�jects and Ac�c�itic�taal �'ublic Warks 1'rc7jects are
herein collectively r�;f�:r-r�;d tc� as the "�apital F'rojects"), �����,
W1-�EIZI��,AS, �t11�. C;a}7ital P�raj�cts sLr�ve ti7e �ublic ir�terest of th4 citirens o�f t�h� C."it�y c�f
T)entc�n in prov�i��in�, (i) electric utility inErastructur� expansic�n and imp�rov�ments; (ii) street and.
rc7aciway expansian and impravenaents; (iii) water utility iixfra�tructure expansic�n and.
im�arc�vemcnts; (iv) sanitary sew�r �,�ti�ity infrastructur�. e;xp�nsic�n and im�rovenlents; a�nc� (v)
starr�� water utility infrastructure cxp�nsion and iYnpr<�vezn�:n�ts (h�.r�in cc�llectively r�f�erred to as
the "Pul�lic Wc�rks f�acili�tie5"); �����
VJIiEF2EAS, nu�z��:rc�us r�al pr�a�aerty int�rests are in ne�;d c�f acc�uisi�ian to construet the
I C"ap'rtal Prc>jects; �:��:�.�:�
WF�ER����S, the ��ffcr:� crf t%e City af' i�entc>n t�7 pt�rchase th� r�a1 prc�pe�rt�y intcrests
. � . , °� � � � � � w��u� "�'�r��� q°`���������^�..._are based �tpc�n thirci
ne�,essar �ar cons�t�u�,txc��n �7#� t � ���,�� ����� -��
. .� � �,�� � �� ....
�aarty appraisa]s, prepareci by a certitied appraiser (the "Appraisals"), the ��praisals providin�;
fc�r ihe v��lue ��f thc real prapc,rty interes�ts tc� be acyuired, and the da�ma�;es, if any, tc� any af the
c�wners' remaining pro�a�rtY (the "'I"atal C'c�r�lpen:�atic>n Amaus�i"); ������
VJ�I-��ERF�S, du� tcr th� volumc <�f t�he pro���rly inte�re�t�s z�ecessary ��ar c��mpletian r�f the
�`,�������.-�������,� ��ua�v��� �'������ �.������a��, atid to avc>id unnecessary c�uplication anc� time
cc�nsumptivc activiti�s �kay the C"ity Cc�uncil, the�� C'ity Gauz7ci� �'inds that it is acivisabl� and i�n t,hc�
b�st interest c�f the citirens c�f the C�ity of Dentan, tc� dele�;ate certain auth�rity ta the City
s:1(e�;�til\c�ur d�7�;tAiraents\c7rdit��nces113\��I��at�ic,r�� authc�rity ordirt�rnce� rc-wark r�cilint-2 wrtla ��e chtar�g�e�».dac
Max�a�;er ��� ���� �������������-tr� prc�v�ide c�ff�rs a�nd accepi c<>u�nt�r offers, �iased upr�n obj�ctive pri�:�e
crit�ria, re�;arc�in� such real prape,rty inter�st ac�uis�iti�n activities; ��,����
W��iE�CZE;AS, th� de��;�atic>n �7�` auth�7r�ity wi11 re�uc� t�he C���ity c�f Derr�t�c�n's ccasts f47r the
activities relat�ed to acc�uisition crf t1�� n�;c�ssary real pro���rty ini�;rests and enlianc� the tim�ly
� c�onst�ructi�7n and cornplc�ti�an af the Pu�ilic W�rks Facilitze,s, ��„u����
WF���E���E�S, ihc� �7uk�lic 3ntei��st is sc�rvr�ci by th�; authority c�e���;ated herein and the C'ity
C�r�uncil finds that ��ub�ic use and ben��t ac�rue� tc7 t17e City of �I7entan, Texas; �����,�;�
WI-�ERE;AS, ���:����u����..�������������� l���W:�..�a�� �k���u�.�..��:.���������� ���__���w�u��V���������� ������ ��� ���.����n.�.
���r��b ����'.......wV�� � r.�������� �����������._�°����u�� .:����, �".��� �'������.a p..�.. ���tl_��.➢ ������°:... ����;��.._.._��� ���������vua�������� �
:.. ..... ° x .�......�`_ .....���u�������� �����!��..�.� �� ������r ��,��'.�a��1�����_�� 4����°���� ��� ���"
� � N T
�������� � ����� �� �_�� °.°�� �� �n���� ����� ��� ��..
�� ���� ��� �r� ���� � �.��°���������� ���u� ��� � �� .. w.w.....� _ ......_.. �
.�, ' �u��� � _ _.. ....�����u�_���u���i�� ������ ��� ��✓�d➢��u� ����� l�u��i���.���.._���u���uu����....�����Il��
������� �° .
]'�fOW, 1"HE�REF()RE,
"I'F-3F.., C'OCJNC�II., C)�{ T�-�:E CI'1"Y OF D�I`�"1"()N I��:R�;E3Y (JI2.I�AINS:
SfaC�.T[Ol�i 1. The C'it�y C��7uncii �h�;rr�by ��ir�ds that a�ublic use and necessity exists, a�nc�
that the public welfare and convenience rec�uirc the acc�uisitian by the City af Dentc�n, Texas, of
irateres�ts in re�l prope�rt�y necc�ssary, ir� whole or in part, for tl7e �����'�������� :�'��������-����Il���� �"�;��°��»
� �����_u�A�: �w�the "Prc�perty Interests")w, ..II��..�- ���...� ���;u����������.� ��-���-���-�����������b�....��
�.��..��;��,��.��������...�����-���������.����:��������;�..,������•� ����° �������-�^���-��...:�.��;������^�����-������,..����°�.,�
���������.���������� cach t.o s��rve tl�e �ubl�ic and t�.l�e citi�ens of ih� C'ity of Dentc�n, Texas. '.i'l�e recitals and
preambles c�f this <rrc�inance are hereby acic7pted as fi�rther lindin�s c�f the City Council.
( Si=�,C"TIC.71'�f 2. "T'l�e City Manager % ���° �;����w�-=°��-��a�:��;�.m� °'� �a������amw% is hercby �utl�arizec�
to make, execute and delivet�, for and c�n �i�;ha11� af the City of I7entcin, oflers tc> purchasc. (the
"Offer" or "C7f�fe.rs"), a��d to acce�t cc�unter�ffers tc> s�ll (th� `°S�.ttleinezzt Aznc�rXrits"), k;li�iblt;
F'roperty Interests, as de�ned �aelow, within the p�ram�ters set forth herein:
A. The Offcr(s), as dele�atccl herein, shall be ix� the amount �f the "I'c�tal
Ca�npensatic�n �^,.maunt, as prescribed in the Apprais�l fc�r the subject f'rap�rty
Interest�s, s�� lon� as the 'I"atal C«mp�;n�atir�n An�ou�nt dcaes ncrt �;xc�;�d T"}aree
Hundr�;d Fifty Thous�nd and Nc7/10() Doll��rs (�35�,0()O.00j.
B. The Setl�ement A��a�ou��ts, as c��1���ated herein, sha�11 n��t �;xceed (i) 'Thr�e
��undred Fifty 'I"housar�d and No/100 I)allars ($350,0(�0.00); c�r (ii) nne hundred
tif'teen perce�nt (1�5%) of the 7,�tal Cc�mpez�s�tic�n Am��u�nt, as prescribed in the
Appraisal f�r the subject Prc�perty Interests.
C. Of�"�r(s) ar Settlem�nt �mc7unts (i) �;��ater t.han Threc Hu�zxdre�d F�i1'ty
Thausand a�nd �Nc�/10U I7c711axs ($35(�,(�OC).00); or (ii) that �xceed c�ne hundr�d
fifteen �rerceYit (1 ] S�'/a) of the "i"otal Com�en;�atic>n Amc�unt, as prescrib�d in th�
1'a�e 2
s:AIwgall�>ur docurn�r�YS\c5rclin��7ces\13\delegati�n authc�rity or�uiaracc re-wt,7rk rcdlirr�-2 with rc cl��ng�s.cloc
ApPraisal f�ar the subject I'rc�pe�-ty Interests, are t� c>i�ly be approved by actic�n crf'
the City Council r�fthe City ot I�enton, "I'exas. Fc7r th�; purposes of"this ordi�aance,
c�lc�sin� c�sts to �ie barne by the G�ity r��� �7ez�tatx (the "C'lc>sin�; Cc�sts"), in cl�7sing
tra�nsactic�ns to acquire Eli�;ilale �'rc�perty Interests, are not ta be inclizded in the
autharized expexlditure liinitatic>ns pr�,scribec� in this ardinance.
S�;C I"ION �. �s used in this ordin�n�e, Eli�ible Yrop���rt�y Interests are; d�finLd as
Pr�7p�riy Interest�s c��rnpris�;c� c>f (a) easem�nis, of" any �ind or nature; ar�d (b) f�e simple� int�rests
in c�r t�> real praperty tc� be ut�i�iz��, in wl�olc or in part�, (i) for roaciway purpc7ses and uses, and
purpases an� uses associate� th�rewith; and (�ii) f�ar 1irr�ar transmissi�an of �lectricity, a�nd
purp�>ses an�i uses assaciat�d th�;r�,with, but shall s�aeci���ically e:xclude real �x���p�rty to l�e uti�ired
fc�r til�e lacali�n c�f el�ctric substatiar� in�Eras�tructurc.
S�;C'7"1ON 4. The City Mana�er -��� ��� �-�����,��is hereby autharired ta execute far
and on behalf ���t� the C:�ity (a) cc>ntract�s t'�r th� purchas�; crf' t�he E]igible �'r4>pert�y Tnt�rests
("Agr�e�n7ents'°), l�y and b�t�w4en the City and the c�wner(s) ra�f the� Eli�iblc Prc�perty Int�rests, (i)
in c�n�tormanc� witll th� terms ��t �he d�;le�atic�n, provic��d in S�ctiori 2, a��yve; �and (ii) upern
atl�er terms and �rovisic�ns ac;ceptabl� tc� the C.'.ity Mana�,�r q�.� ���-������������� and in fc�rrn
acc�ptable tc� the Cit�y �t�t��r��ey� ���.������%���m������-�; and (b) any oth�r dc�cu�ments nece��ary for
cic�sin� th� trar�sactions cant�ez��plat�d by the A�r�c�m�r�ts.
SF�C"I"ION S. 7'he City Ma�zagcr% ���-.����..-�����,�•��; is her�by authc�rized tc� make
expenditures in accoz•dance with the A�;i�eements, including withaut limitaticrn, the Clasing C�'�sts,
SFC�I'ION Ei. The Of`i�;rs shall be m�de irt accorcianc� with a11 applica�le law.
. .... ...w. � .�.�..... � .� .� 4.� ��� ������r������ _���.... p,�u���ll�,����� ���� �`p..��' I��a�u������ �° �`���ll�
� � , �"�� ��1 �, ��5�������� �....��e.a � �¢� »�u... �.�.. . . ..
����ii������m��� ��.�....�������... ���uy ��r&���.....��re ��q�m�u����°.�..�.�.�.��....�������,,°�a�w�� a��.������µ�� �a� ������...��.�._..����� ��� ���, �;��.�.�:
� � ..�. �~���u ���.,��°�7iMmww���°��" ° �. . W ������������d���°�..w `�._.. � �� ..w�
� � � ... ......
�������� u���� �� �_�� �� ��.� ��������� ���� ��....���a������� ����~ �, _.....�..�. .n� , ��➢�a� � �� �..�.�.������� u�,
�.���� .� �� ��� � �� n��;;� � ��°�°:���������������.°.�,� � ;��.,� . � .: .�� .... �........ � � � �� ... � .. .._.w. �._......... � ��
� .. �
�� �!µ��� u Q ��° � �� ���������.�u �.� ��,�;�,� � ����°,�, b�,������,�u �°a�w����c���n��ua���
��y ��u� e �'u�� ��'c��u��� �w��
���:� �I��T�I � .�...��� w�"���r' S��aa��;�.��.u.�Vrv������ ���; �c,���»� ��������:�:�,..�.��°�:���r��¢�° ���,� �..�.��'�.t����u���.�R �� ��.:��s���°t
�����,���"��u��;� ����...���..�..°������:u� ������:� �a����°�� ��� _a�u... pq�� ����� ��s����,���a�. ����� ����������°�n��..q���u°���� ��� �.�:..��w��°���....��u�w.
� . . w._.......u. � _ _. ..�.... �.� . � .,....�����, ���a� �.��' w�mq���:� ���ut`������������� ���u��� m�u°�� ��.� w�u ��������;uc����
c�m�rc������� ���"��.�-�<:� �a� ���������� ���� �',,.... � .. , ..
����k����°��.�°� 1���r���� .
...- -� S�,GTIf.)1`� -�. If any section, artic�e, paragraph, s�;ntenc�, �ahrase, clause car w�rd in this
... , �.
c�rdinance, c�r application t�hereof t<� any �persc�ns or circu�nsta�nces, is held invalit� c�r
unconstitutianal by a co�.�.rt of c<7mpc�te�t jurisdicti�7n, suc;h hc�ldin� shall no% a�fect the validiiy c�f
t��he rema.inin� pc�rtioxxs c�f this c���dinance; tl�e C�'ity Cc7�:incil dLClares t�h�t it wc�ulci ha�ve c�rdaine;d
such remainin�; pc7rtic�n des�ite such invaiidit�y, and such r�maix�in� pr�rti�7n sha11 re�z�ain in �full
force and e{=fect.
Pa�e 3
s:Ale��tl\c��ar ���cuments\c�rdir�a�nc�es\13\cicl�gatiGxn authc�r�ity �>rdinance re-wtark r�dlin�-� with rc chan�es.cfc'2c
S�:?C�I"ION �� ��. "['his c7rdinance sha�ll l�c�cc�n�e �ft�ective immediat�ly upc�n its
passa�e and approval �: .
�'ASSEL7 �ND AF'PItC)VED this the day crl`�.� , 2Q13,
MAI�I� A. f3LJRR()UCi�-IS, MAYOR
A'T°TES'I':
JI;NI'�I1FER WAI��I'�:;RS, C1'I'Y SE;CR:E;"I'ARY
�
A�'�'I2OVLD AS "I'U LF;G�AL ��OI2M:
AN�ITA B�JRCi�;SS, CI'T"Y AT"1'CI��N�E:;Y
:
I'�Yge 4
s:\legal\our documents\ordinances\l3\delegation authority ordinance re-work redline-2 with rc changes.doc
ORDINANCE NO. 2013-
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, DELEGATING CERTAIN
AUTHORITY TO THE CITY MANAGER TO MAKE OFFERS AND TO ACCEPT
COUNTER OFFERS TO PURCHASE ELIGIBLE REAL PROPERTY 1NTERESTS
NECES�S�A�I�Ir� FOR CITY OF DENTON PUBLIC WORKS AND EI;ECTRIC UTILITY
CAPITAL IMPROVEMENT PROJECTS; AUTHORIZING THE CITY MANAGER, TO
EXECUTE CONTRACTS TO PURCHASE SAID REAL PROPERTY INT�RESTS FOR AND
ON BEHALF OF THE CITY OF DENTON; AUTHORIZING THE CITY MANAGER TO
E�PEND FUNDS IN ACCORDANCE WITH THE TERMS OF SAID CONTRACTS;
PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTNE DATE.
WI�EREAS, the City Council of the City of Denton (a) has approved Capital
Improvement Plans of the City of Denton (collectively, the "Plan"), the Plan providing for, ,
among other matters, (i) the construction of multiple electric transmission line projects (the
`Blectric Project99); (ii) the construction of approximately 2.7 miles of expansion and
improvements to Bonnie Brae Street (the "Bonnie Brae Project"); (iii) the construction of
approximately 3.8 miles of expansion and improvements to Mayhill Road (the "Mayhill
Project"); and (iv) other various public works projects ("Public Works Projects"); and (b)
contemplates the adoption of future capiial improvement plans for' additional pub�lic works and -
eleciric utility projects (the "Additional Public Works Projects") (the Electric Project, Bonnie
Br•ae Project, Mayhill Projeci, Public Works Projects and Additional Public Works Projects are
herein collectively referred to as the "Capital Prnjects"); and.
WHEREA.S.,,.the. Capiial Projects�serve the.publie interest o� tlhe citizans� of the City of
Denton in providing (i) electric utility infrastructure expansion and improvements; (ii) street and
roadway expansion and improvements; (iii) water utility infrastructure expansion and
?mproverraents,.,.(��)" �anitary sewer utili.�y �nfras�ru�ture� �xpansio�� and improvaments; and (v)
storm water utility infrastructure expansion and improvements (herein collectively referred to as
the "Public Works Facilities"); and
WHEREAS, numerous real property interests are in need of acquisition to construct the
Capital Projects; and
WHEREAS, the offers of the City of Denton to purchase the real property interests
necessary for construction of the Public Works Faciliti.es,.ar.e,based.,upon, third,party appraisals,.
prepared by a certified appraiser (the "Appraisals"), the Appraisals providing for the value of the
real property interests to be acquired, and the damages, if any, to any of the owners' remaining
property (the "Total Compensation Amount"); and
WHEREAS, due to the volume of the property interests necessary for completion of the
Public Works, Facaliiies,,.and to avoid unne¢essar3z duplica�ion-and� tiin���onsumptiwe act'rvities by
the City Council, the City Council finds that it is advisable and in the best interest of the citizens
of the City of Denton, to delegate certain authority to the City Manager to provide offers and
accept counter offers, based upon �bjective price criteria, regarding such real property interest
acquisition activities; and
s:\legal\our documents\ordinances\13\delegation authority ordinance re-work redline-2 with rc changes.doc
WHEREAS, the delegation of authority will reduce the City of Denton's costs for the
activities related to acquisition of the necessary real property interests and enhance the timely
construction and completion of the Public Works Facilities; and
� WHEREAS, the public interest is served by the authority delegated herein and" til�e City
Council finds that public use and benefit accrue to the City of Denton, Texas; and
6 ,
WHEREAS, nothing contained herein shall be deemed to be authority to take or acquire
property by eininent domain, rather the City Council shall make such determinations
independent of this Ordinance, and this Ordinance serves as a mere delegation of the process of
inaking offers required by law and accepting counteroffers within the limited amounts herein
specified; NOW, THEREFORE,
TIIE COUNCIL OF THE CITY OF DENTON H�REBY ORDAINS:
SECTION 1. The City Council hereby finds that a public use and necessity exists, and
that the public welfare and convenience require the acquisition by the City of Denton, Texas, of
interests in real property necessary, in whole or in part, for the Public Works Facilities (the
"Pr��erty Interests'.'), each to serve the public and the citizens of the City of Denton, Texas. The
recitals and preambles of this ordinance are hereby adopted as further findings of the City
Council.
SECTION 2. The City Manager is hereby authorized to make, execute and deliver, for
and on behalf of the City of Denton, offers to purchase (the "Offer" or "Offers'-'}� and to-�accept
counteroffers to sell (the "Settlement Amounts"), Eligible Property Interests, as defined below,
vvithin the parameters set forth herein:
A. The Offer(s), as delegated herein, shall be in the amount of the Total
Compensation Amount, as prescribed in the Appraisal for the subject Property
Interests, so long as the Total Compensation Amount does not exceed Three
Hundred Fifty Thousand and No/100 Dollars ($350,000.00).
B. The Settlemeni Arnounts, as delegated herein, shall not exceed (i) Three
Hundred Fifty Thousand and No/100 Dollars ($350,000.00); or (ii) one hundred
fifteen percent (115%) of the Total Compens.ation.Amount, as„ px�escxil�ed �n. the: „
Appraisal for the subject Property Interests.
C. Offer(s) or Settlement Amounts (i) greater than Three Hundred Fifty
Thousand and No/100 Aollars ($350,000.00); or (ii) that exceed one hundred
iifteen percent (115%) of the Total Compensation Amount, as prescribed in the
Appraisal for the subject Property Interes�ts,,.are to only be appro��ed by a�tion of
the City Council of the City of Denton, Texas. For the purposes of this ordinance,
closing costs to be borne by the City of Denton (the "Closing Costs"),,in closing
transactions to acquire Eligible Property Interests, are not to be included in the
authorized expenditure limitations prescribed in this ordinance.
Page 2
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SECTION 3. As used in this ordinance, Eligible Property Interests are defined as
Property Interests comprised of (a) easernents, of any kind or nature; and (b) fee simple interests
in or to real property to be utilized, in whole or in part, (i) for roadway purposes and uses, and
purposes and uses associated therewith; and (ii) for linear transmission of electricity, and
purposes anei-use� associated� iher��vith, but shall spec'rfi�ally� exclud��i�eal property to be utilized
for the location of electric substation infrastructure.
P 4
SECTION 4. The City Manager is hereby authorized to execute for and on behalf of the
City (a) contracts for the purchase of the Eligible Property Interests ("Agreements"), by and
between the City and the owner(s) of the Eligible Property Interests, (i) in conformance with the
terms of th�-del�gatYOn; prr�vid�d° in Section 2, abo�e;' and""(ii)' upon otlier terms ancl provisions
acceptable io the City Manager and in fonn acceptable to the City Attorney; and (b) any other
documents necessary for closing the transactions contemplated by the Agreements.
,
SECTION 5. The City Manager is hereby authorized to make expenditures in
accordance with the Agreements, including without limitation, the Closing Costs.
SECTION 6. The Offers shall be made in accordance with all applicable law.
SECTION 7. Nothing herein shall be deeined to prohibit the City Manager from
determining to place any offer nr counteroffer otherwise delegated to him or her by the City
Council under the terms of this ordinance on an agenda for consideration bv the City Council in
the event special circumstances exist which the City Manager opines necessitates consideration
by the City Council.
SECTION 8. The City Manager shall, at least quarterly, provide the City Council a report
specifying ihe occas�ions. u�o.�...v�hicn he. .or..she has exercised,�he: a�thoxity her�in, d�legated, the
amounts offered or settlements made and any other information material io transactions
authorized herein.
SECTION 9. If any section, article, paragraph, sentence, phrase, clause or word in this
ordinance, oi• 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 remainin,g,.�,ortion shall r.eraain in full
force arld effect.
SECTION 10. This ordinance shall become effective immediately upon its passage and
approval.
Page 3
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PASSED AND A.PPROVED this the day of _ , 2013.
MARI� �c. BURROUGHS, MAYOR "
ATTESTe
JENNIFER V6TALTERS9 CITY SECRETARY
I�
APPROVED AS TO LEGAL FORM:
ANITA BI1`RGESS, CITY ATTORNEY
B � �1
�� �� , � � ���z �
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