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HomeMy WebLinkAboutJuly 16, 2013 Agenda AGENDA CITY OF DENTON CITY COUNCIL July 16, 2013 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, July 16, 2013 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 July 16, 2013. 3. Receive a report, hold a discussion, and give staff direction regarding Board and Commission nominations. 4. Receive a report and hold a discussion and give staff direction regarding the 2012 Return on Investment Report of Economic Development Incentives for the City of Denton. 5. Receive a report, hold a discussion and give staff direction related to Denton Municipal Electric’s proposed Southridge underground cable replacement project. 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.Deliberations regarding Real Property – Under Texas Government Code Section 551.072; Consultation with Attorneys – Under Texas Government Code Section 551.071. 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 Thomas Toby Survey, Abstract No. 1288, City of Denton, Denton County, Texas, and generally located at the south east corner of Loop 288 and Locust Street. Consultation with the City’s attorneys regarding legal issues associated with the potential acquisition and condemnation of the real property described 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 the Denton City Council under the City of Denton City Council Agenda July 16, 2013 Page 2 Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas, or would jeopardize the City’s legal position in any administrative proceeding or potential litigation. 2.Discuss, deliberate, and receive information from staff and provide staff with direction pertaining to the acquisition of real property interests located in the David Hough Survey, Abstract Number 646 and the John B. Brandon Survey, Abstract No. 1515, City of Denton, Denton County, Texas, and located generally within the 1400 through 2100 block range of South Mayhill Road. Consultation with the City’s attorneys regarding legal issues associated with the acquisition or condemnation of the real property interests 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 the 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 proceeding or potential litigation. (Mayhill Road Widening and Improvements project) 3.Discuss, deliberate, and receive information from staff and provide staff with direction pertaining to the acquisition of real property interests located (1) in the A.N.B. Tompkins Survey, Abstract Number 1246, Denton County, Texas (located generally in the 2400 block of South Bonnie Brae Street); and (2) in the James Edmonson Survey, Abstract Number 400, Denton County, Texas (located generally on Roselawn Drive, 600 feet east of South Bonnie Brae Street), all in the City of Denton, Denton County, Texas. Consultation with the City's attorneys regarding legal issues associated with the acquisition or condemnation of the real property interests 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. (Bonnie Brae Street Widening and Improvements project) 4.Discuss, deliberate, and receive information from staff and provide staff with direction pertaining to the potential lease of certain mineral interests located in the E. Puchalski Survey, Abstract No. 996, City of Denton, Denton County, Texas, and generally located along the 3100 block of West Prairie Street. Consultation with the City’s attorneys regarding legal issues associated with the potential lease of certain mineral interests, described 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 the Denton City Council under Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas, or would jeopardize the City‘s legal position in any administrative proceeding or potential litigation. City of Denton City Council Agenda July 16, 2013 Page 3 B.Deliberations regarding Public Power Utilities: Competitive Matters – Under Texas Government Code, Section 551.086. 1.Receive a presentation from staff regarding public power utility competitive, financial and commercial matters pertaining to the approval of the Amendment to Power Sales Contract between Texas Municipal Power Agency and the Cities of Bryan, Texas, Denton, Texas, Garland, Texas and Greenville, Texas, a purchase power contract; including without limitation, plans, proposals, as well as other contracting issues. Discuss, deliberate, provide staff with direction, consider and take final action regarding such matters. C. Deliberations regarding Personnel Matters – Under Texas Government Code Section 551.074. 1. Deliberate and discuss the appointment and duties of public officers to boards or commissions exercising discretionary or rule making power as opposed to purely advisory powers, which includes without limitation the Health and Building Standards Commission, the Historic Landmark Commission, the Planning and Zoning Commission, and the Zoning Board of Adjustment. D. Consultation with Attorneys – Under Texas Government Code Section 551.071. 1.Consult with, and provide direction to, the City’s attorneys regarding a proposed enforcement action related to sanitary sewer overflows, where a public discussion of such legal matters would conflict with the duty of the City’s attorneys to the City of Denton, Texas and the City Council of the City of Denton, Texas under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING WILL ONLY BE TAKEN IN AN OPEN MEETING THAT IS HELD IN COMPLIANCE WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH FINAL ACTION, DECISION, OR VOTE IS TAKEN IN THE CLOSED MEETING IN ACCORDANCE WITH THE PROVISIONS OF §551.086 OF THE TEXAS GOVERNMENT CODE (THE ‘PUBLIC POWER EXCEPTION’). THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A CLOSED MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOV’T. CODE, §551.001, ET SEQ. (THE TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA OR TO RECONVENE IN A CONTINUATION OF THE CLOSED MEETING ON THE CLOSED MEETING ITEMS NOTED ABOVE, IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS ACT, INCLUDING, WITHOUT LIMITATION §551.071-551.086 OF THE TEXAS OPEN MEETINGS ACT. Regular Meeting of the City of Denton City Council at 6:30 p.m. in the Council Chambers at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: City of Denton City Council Agenda July 16, 2013 Page 4 REGULAR MEETING 1. PLEDGE OF ALLEGIANCE A. U.S. Flag B. Texas Flag “Honor the Texas Flag – I pledge allegiance to thee, Texas, one state under God, one and indivisible.” 2. PROCLAMATIONS/PRESENTATIONS A.Proclamations/Awards 1.Cigarette Litter Prevention Month 3. CITIZEN REPORTS 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 – H). 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 – H 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 of the City of Denton, Texas authorizing the City Manager, or his designee, to enter into an Interlocal Agreement with Denton County for the County to provide Property Tax Billing and Collections Services for the City of Denton; providing a savings clause; and providing an effective date. B.Consider adoption of an ordinance accepting competitive proposals and awarding a public works contract for the construction of Landfill Cells 4AB and 5 for the City of Denton; providing for the expenditure of funds therefor; and providing an effective date (RFP 5256–awarded to FCS Construction, LLC in the amount of $2,917,242.90). The Public Utilities Board recommends approval (6-0). C.Consider adoption of an ordinance accepting competitive proposals and awarding a contract for the purchase of two public safety driving simulators for the City of Denton Joint Public Safety Training Facility; providing for the expenditure of funds therefor; and providing an effective date (RFP 5179-Purchase of Two Public Safety Driving Simulators awarded to FAAC, Inc. in the not-to-exceed amount of $276,156). (2009 Congressionally Selected Award funded through the US Department of Justice) City of Denton City Council Agenda July 16, 2013 Page 5 D.Consider approval of the minutes of: June 4, 2013 June 11, 2013 June 18, 2013 E.Consider adoption of an ordinance finding that a public use and necessity exists to acquire (I) fee simple to a 7.393 acre tract (the “Mayhill Tract”); (II) fee simple to a 4.508 acre tract (the “Landfill Tract”); and (III) a Slope Easement (herein so called), encumbering a 0.804 acre tract, each affected tract located in the John B. Brandon Survey, Abstract Number 1515, City of Denton, Denton County, Texas, as more particularly described on Exhibit “A”, attached to the ordinance and made a part thereof, located generally in the 1400 block of South Mayhill Road (the “Property Interests”), for (A) as concerns the Mayhill tract and the Slope Easement, the public use of expanding and improving Mayhill Road, a municipal street and roadway; and (B) as concerns the Landfill Tract, for the public use of expanding and improving the City of Denton Landfill, a permitted municipal Solid Waste disposal facility; authorizing the City Manager or his designee to make an offer to (1) Cynthia Bond Ables, John Henry Bond, III, Jean Doye Stokes and Wayne Stokes, a married couple, Joe P. Doye, Jr. A/K/A Joseph Pierre Doye, Jr. Patricia Ann Doye A/K/A Patricia Doye Kendall (collectively, the “Owner”); (2) successors in interest to the owner to the Property Interests; or (3) any other owners of the Property Interests, as may be applicable, to purchase the Property Interests for the purchase price of Seven Hundred Eighty Five Thousand 00 ), and other consideration, as Thirty Six Dollars and No Cents ($785,036. prescribed in the Purchase Agreement (the “Agreement”), as attached to the ordinance and made a part thereof as Exhibit “B”; authorizing the expenditure of funds therefor; authorizing relocation expenditures; and providing an effective date. (Mayhill Road Widening and Improvements project – Bond et al - Parcel M134) F.Consider adoption of an ordinance finding that a public use and necessity exists to acquire (I) fee simple to a 1.029 acre tract (the “Mayhill Tract”); (II) fee simple to a 0.624 acre tract (the “Landfill Tract”); and (III) a Slope Easement (herein so called), encumbering a 0.076 acre tract, each affected tract located in the David Hough Survey, Abstract Number 646, City of Denton, Denton County, Texas, as more particularly described on Exhibit “A”, attached to the ordinance and made a part thereof, located generally in the 1900 block of South Mayhill Road (the “Property Interests”), for (A) as concerns the Mayhill Tract and the Slope Easement, the public use of expanding and improving Mayhill Road, a municipal street and roadway; and (B) as concerns the Landfill Tract, for the public use of expanding and improving the City of Denton Landfill, a permitted municipal solid waste disposal facility; authorizing the City Manager or his designee to make an offer to (1) Wilma M. Haggard (The “Owner”); (2) Successors in interest to the owner to the Property Interests; or (3) any other owners of the Property Interests, as may be applicable, to purchase the Property Interests for the purchase price of One Hundred Thirty Three Thousand Eight Hundred Fifty Nine Dollars and No 00 Cents ($133,859.), and other consideration, as prescribed in the Purchase Agreement (the “Agreement”), as attached to the ordinance and made a part thereof as Exhibit “B”; authorizing the expenditure of funds therefor; and providing an effective date. (Mayhill Road Widening and Improvements project – Haggard - Parcel M136) City of Denton City Council Agenda July 16, 2013 Page 6 G.Consider adoption of an ordinance finding that a public use and necessity exists to acquire (I) fee simple to a 7.628 acre tract (the “Mayhill Tract”); (II) fee simple to 2.276 acres (the “Landfill Lands”); and (III) a Drainage Easement (herein so called), encumbering 0.196 acre, all lands located in the David Hough Survey, Abstract Number 646, City of Denton, Denton County, Texas, as more particularly described on Exhibit “A”, attached to the ordinance and made a part thereof, located generally in the 2100 block of South Mayhill Road (the “Property Interests”), for (A) as concerns the Mayhill Tract and the Drainage Easement, the public use of expanding and improving Mayhill Road, a municipal street and roadway; and (B) as concerns the Landfill Lands, for the public use of expanding and improving the City of Denton Landfill, a permitted municipal solid waste disposal facility; authorizing the City Manager or his designee to make an offer to (1) Kevin Nelms and Richard and wife, Nancy Greb (collectively, the “Owner”); (2) successors in interest to the owner of the to the Property Interests; or (3) any other owners of the Property Interests, as may be applicable, to purchase the Property Interests for the purchase price of Eight Hundred Sixty Seven Thousand 00 Three Hundred Forty Seven Dollars and No Cents ($867,347.), and other consideration, as prescribed in the Purchase Agreement (the “Agreement”), as attached to the ordinance and made a part thereof as Exhibit “B”; authorizing the expenditure of funds therefor; and providing an effective date. (Mayhill Road Widening and Improvements project – Nelms/Greb - Parcel M137 & M138) H.Consider approval of a resolution authorizing the City Manager, or his designee, to execute on behalf of the City of Denton all contracts and agreements with the State of Texas to accept a grant not to exceed $500,000 to construct an addition to the Denton Enterprise Airport Terminal. 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. Consider nominations/appointments to the City’s Boards & Commissions. 1. Airport Advisory Board 2. Animal Shelter Advisory Committee 3. Community Development Advisory Committee 4. Health & Building Standards Commission 5. Historic Landmark Commission 6. Human Services Advisory Committee 7. Library Board 8. Parks, Recreation and Beautification Board 9. Planning and Zoning Commission 10. Public Art Committee 11. Public Utilities Board 12. Traffic Safety Commission 13. Zoning Board of Adjustment B. Consider appointing a nominating committee to recommend appointees to serve on the Economic Development Partnership Board. City of Denton City Council Agenda July 16, 2013 Page 7 6.PUBLIC HEARINGS A. Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas approving a Detailed Plan to allow a 1,691 square-foot building for auto laundry (car wash) on 0.622-acre property located within the Wheeler Ridge Planned Development District (PD-176). The subject site is located at the southeast corner of Teasley Lane (FM 2181) and Robinson Road in the City of Denton, Denton County, Texas; providing for a saving clause; providing for a penalty in the maximum amount of $2,000.00 for violations, thereof, severability and an effective date. (Z13-0005, Clean and Green Car Wash) The Planning and Zoning Commission recommends approval (6-0). B.Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas amending Subchapter 35.5.8 of the Denton Development Code regarding Limitation L(17); providing for a penalty in the maximum amount of $2,000.00 for violations thereof; providing for severability, and establishing an effective date. (DCA13-001) The Planning and Zoning Commission recommends approval (6-0). 7. ITEMS FOR INDIVIDUAL CONSIDERATION – CONSIDERATION OF THE USE OF EMINENT DOMAIN TO CONDEMN REAL PROPERTY INTERESTS A. Consider adoption of an ordinance finding that a public use and necessity exists to acquire through the exercise of the right of eminent domain (I) fee simple to the surface estate, with waiver of surface use related to the mineral estate, of a 4.69 acre tract; (II) autility and slope easement encumbering 0.56 acre; and (III) a utility and drainage easement encumbering 0.02 acre, for the public use of expanding and improving Bonnie Brae Street, a municipal street and roadway, the affected lands and interests being generally located in the 2400 block of South Bonnie Brae, and being situated in the A. Tompkins Survey, Abstract Number 1246, City of Denton, Denton County, Texas, as more particularly described in Exhibit “A”, attached to the ordinance and made a part thereof (collectively, the Property Interests”); authorizing the filing and prosecution of eminent domain proceedings to acquire the Property Interests; authorizing the expenditure of funds therefor; making findings; providing a savings clause; and providing an effective date. (Parcel 25 – Harlan Properties - Bonnie Brae Widening and Improvements project) B. Consider adoption of an ordinance finding that a public use and necessity exists to acquire through the exercise of the right of eminent domain (I) fee simple to the surface estate, with waiver of surface use related to the mineral estate, of a 1.91 acre tract; (II) a utility and slope easement encumbering 0.57 acre; and (III) a drainage easement encumbering 0.02 acre, for the public use of expanding and improving Bonnie Brae Street, a municipal street and roadway, the affected lands and interests being generally located on Roselawn Drive, 600 feet east of South Bonnie Brae Street, and being situated in the James Edmonson Survey, Abstract Number 400, City of Denton, Denton County, Texas, as more particularly described in Exhibit “A”, attached to the ordinance and made a part thereof (collectively, the Property Interests”); authorizing the filing and prosecution of City of Denton City Council Agenda July 16, 2013 Page 8 eminent domain proceedings to acquire the Property Interests; authorizing the expenditure of funds therefor; making findings; providing a savings clause; and providing an effective date. (Parcel 34 – Chamberlain - Bonnie Brae Widening and Improvements project) 8. CITIZEN REPORTS 9. CONCLUDING ITEMS A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. B. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the ________day of ___________________, 2013 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. WorkSession3 WorkSession4 AGENDA INFORMATION SHEET AGENDA DATE: July 16, 2013 DEPARTMENT: Economic Development ACM: John Cabrales SUBJECT Receive a report and hold a discussion regarding the 2012 Return on Investment Report of Economic Development Incentives for the City of Denton. BACKGROUND The City of Denton developed its original Tax Abatement Policy in 1989 to attract new businesses to Denton and to encourage existing businesses to expand. The intent was to establish public/private partnerships that would, in the long term, result in a diversified and expanded tax base for the City. Chapter 380 of the Local Government Code gives cities the authority to provide grants or loans of city funds or services in order to promote economic development.The City has awarded these Chapter 380 grants based on performance in generating property tax or sales tax. The attached 2012 Return on Investment report provides an overall look at what the City of Denton received in the way of direct benefits (property and sales tax revenues) as well as the indirect benefits of new jobs created by those companies and developments that received incentives. The report provides information through 2012 and includes the following: The date the agreement was approved The term of the agreement (years incentives are applied) Property valuation of the project (cumulative since year agreement approved) Property tax generated (cumulative since year agreement approved) Sales tax generated if applicable (cumulative from initiation of sales tax monitoring) Net property and sales tax revenues (total revenues less incentives) Return on Investment Percentage New jobs created by project A few clarifications are in order. For United Copper, staff provided a ten-year look at the return on investment. The company received a six year tax abatement; however, ten years is an industry standard in comparing incentive economic impacts. Incentives for expansion projects such as Jostens, Peterbilt Motors and Flowers Foods, are based on the new valuation created by the project. The existing valuation that was relative to each of these projects was not included in the calculations. Agenda Information She July 16, 2013 Page 2 The report includes all of the incentive agreements that received benefits through 2012. Schlumberger and Rayzor Ranch have been added to the 2012 report. Incentives for Target, Peerless and Labinal will be provided in reports beginning the year they receive their first abatement or grant. FISCAL INFORMATION The City of Denton has awarded a total of eleven active incentives to foster development in the community. The City has invested $6,496,977 in tax related incentives, and in return, has benefited from a net increase in property and sales tax revenues in the amount of $23,587,131 since the inception of the incentive program in 1999. The return on investment for all of the incentives awarded is 363%, which represents an 11% increase from the return of 352% in the 2010 report and remains roughly four times the public investment. Denton Property and Sales Tax Agreements 2010 Total of all Types of Incentives 2012 $1,637,256,287 Cumulative Property Valuation $2,390,551,845 $10,515,843 Cumulative Property Tax Generated $15,669,540 $8,180,336 Cumulative Sales Tax Generated $14,414,568 $4,138,778 Less Incentives $6,496,977 $14,557,401 Net Property and Sales Tax Revenue $23,587,131 352% Return on Investment Percentage 363% 3095 New Jobs Created 3,680 EXHIBITS PowerPoint Presentation Return on Investment Report 2012 Prepared by: ______________________________________ Erica Sullivan, Economic Development Analyst Economic Development Department Respectfully submitted: _______________________________________ Aimee Bissett, Economic Development Director Economic Development Department Return on Investment 2012 Update Prepared by: Erica Sullivan, Economic Development Analyst Economic Development Department City of Denton 215 E. McKinney Denton, Texas 76201 940-349-7776 June 2013 2012 Introductionand Purpose The City of Denton is committed to the promotion of high quality development in all parts of the city and to an ongoing improvement in the quality of life for its citizens. The City has providedeconomic development incentives to stimulate private development and redevelopment, expand the tax base,generate jobs and enhance the local economy. Denton is home to several corporate, regional and international headquarters as well as central distribution and maintenance facilities. Many of these projects were made possible by the City granting an incentive to make the project feasible and to reimburse the costs of public infrastructure required for a numberof the projects. In 2009, the City of Denton Economic Development Department created the initial Return on Investment Report to provide a comprehensive look at the fiscal impact made by the businesses that have received property and sales tax incentives from the Cityand to evaluate the efficiency of the public investment.Thisis the secondupdate and expansion of the report and is prepared threeyears after the original reportwas created.This report provides a brief description of the types of tax incentives offered,the total incentive received by the company and the City tax revenues generated since the agreement was initiated. In addition, the report providesinformation regarding stateand local sales tax revenues created by these developments. General Methodology The property tax valuation is based on the certified values that are released by the Denton Central Appraisal District (DCAD) in July for the previous tax year.Sales tax is collected by calendar year and is based on the allocation month that the sales tax report from the Texas Comptroller of Public Accounts is received. Sales tax is generated two months prior to the receipt of the reports from the state comptroller. Sales tax generated in December2012is reported to the City in February of 2013, for example. Property tax is included from the base year of the economic development agreementsor the first tax year,that was available from DCAD, when the initial report was conducted. Sales tax revenue reflects the revenues received sincetheinitial tracking began or the grant payments were initiated.For example, the Unicorn Lake Agreement was approved in 2004; however, the first grant payment was made in December 2009after the thresholds were met. Property valuation for Unicorn Lake is cumulative since 2005 and sales tax is provided beginning in December 2009. Sales tax monitoring for Rayzor Ranch began in 2010 prior to the receipt of the first payment in July of 2012 to assist the City with preparing the 5 Year forecast during the budgeting process. 1 Property Tax Abatements City of Denton tax abatement agreements require the company to meet certain threshold requirementsof property valuation in order to receive a tax abatement. In some cases, the number of jobs created and the average wage for these positions are also thresholds of performance. Chapter 312 of the Local Government Code allows cities to provide up to 100% abatement on new valuation and limits the term of tax abatements toten years. The following tablerepresents the five businesses that have received tax abatements through 2012. Table 1: Denton Tax Abatements United Peterbilt Flowers CopperMotorsFoodsFastenalAldi FoodsTotals Year Abatement 19982001200420082008 Approved Incentive Term 1999-20042002-20112005-20112009-20132010-2016 Cumulative Property Valuation$422,085,765 $39,091,296 $256,405,201 $65,309,462 $125,043,022 $907,934,746 Cumulative Property $2,508,486 $248,933$1,709,254 $447,164$861,850$5,775,687 Tax Generated Less Property Tax $137,032$144,914$497,410$69,549$804,908$1,653,813 Abatement Net Property Tax $2,371,454 $104,019$1,211,844 $377,615$56,942$4,121,874 Revenue Return on Investment 1,731%72%244%543%7%249% Percentage New Jobs Created 26535435100105940 The return on investment for tax abatement incentives indicate that since 1999, the City of Denton has granted abatements of City ad valorem taxes from the new capital investment resulting in $1,653,813 in property related tax incentives, and in return, has benefited from a net increase in property tax revenues of $4,121,874. United Copper received the City of Denton’s first Tax Abatement. Three thresholds were set for the company to meet in order to receive a 25% abatement over a six-year term. As of 2003, the company has never reached the employment threshold in the Agreement and hastherefore not received the full 25% abatement. The percentage is reduced by the ratio the threshold is missed. The figures represent ten years of economic impact. Although the tax abatement had a six-year term, standard economic development practice for impact analysis is ten years (1999through 2008). Peterbilt Motors The agreement is an incentive for the expansion of the headquarters office andconsolidated regional sales and financing offices in the Metroplex, but doesnot include any plant valuation. The base year valuation of the building in the amount of $1,933,540 is also deducted from 2 the calculations. Flowers Foods purchased the former Andrew Corporation plant. The incentive is based on theincrease in valuation over the existing valuation of the base year. Therefore, the 2004 building valuation of $1,920,009 is deducted from the calculations. Fastenal completeda new 200,000 square foot regional headquarters/distribution center near the Denton EnterpriseAirport in the fall of 2008.The tax abatement agreement requires a minimum threshold of $5,000,000 in valuation. Aldi’s 500,000 square foot distribution center was completed in 2009. The project required that Aldi construct a $2.5 million roadthat also services the Denton EnterpriseAirport. Aldi may receive 100 percent tax abatement on all new valuation, except land, until they are reimbursed for the construction of the roador for a term ofseven years, whichever comes first.This is the only incentive that includes the abatement of inventory. Target Corporation’s 400,000 square foot refrigerated/frozen food distribution center wasconstructed in 2012.This $100 million project received a 65% tax abatement for five years fromthe City of Denton to help offset costs to improve Airport and Corbin Roads. This facility will service over 240 stores in ninestates with frozen and perishable food products. Target openedin March 2013 and employs115 to 150 area residents. The taxabatement incentive willbegin the year following completion of the facility. Although no improvements are listed on the tax rolls in 2010, the reclassification of the land from agriculture to industrial has increased the land valuation by over $2 million. Target’s incentive results should appear on the nextReturn on Investment Report. Peerless Manufacturing selected Denton to expand and consolidatetheir Texas operations. Thecompany designs, engineers andmanufactures highly specialized filtration, separation equipment, industrialsilencers, heat exchangers, and air pollution reduction systems to energy industry customers involved in gas and oil production, petrochemical processing, and power generating. They are constructingan 80,000 square foot manufacturing facility. The valuation of the proposed project is estimated at$16 million. The companyreceived a 40% tax abatement from the City of Denton for the new facility. Peerless plans to employ 126and is expected to open in late 2013. Peerless’ incentive results are estimated to appear on the 2014 Return on Investment Report. 3 Chapter 380 Agreements Chapter 380 of the Local Government Code givescities theauthority to provide grants or loans of city funds or services in order to promote economicdevelopment. The City of Denton has entered into several Chapter 380 grant agreements in which it has authorized a grant equal to either a portion of the property tax or sales tax generated by the project. Chapter 380 Grants Based on Property Tax Performance Table 2below details economic impact information through 2012on economicdevelopment agreements that provided grants based on a percentage of the property tax generated by the project. Table 2: Denton Chapter 380 Property Tax Agreements Sally Beauty Granite/Jostens, BusinessCompanySchlumberger Inc.Totals 20042006/20122008 Base Year of Agreement 2005-20142007-20092009-2013 Incentive Term $238,757,768 $58,524,609 $4,310,296 $301,592,673 Cumulative Property Valuation $1,574,088 $396,645$30,364$2,001,097 Cumulative Property Tax Generated $509,331$116,995$13,750$640,076 Less Property Tax Incentive $1,064,757 $279,650$16,614$1,361,021 Net New Property Tax Revenue 209%239%121%213% Return on Investment Percentage 3501056001,055 Jobs Created/Retained Sally Beauty Company received a grant equal to 40% of the propertytax paid on new valuation created by the construction and equipping of a new international headquarters facility for a ten-year period.Valuation at the existing facility located at 3900 Morse is not eligible for consideration. Granite Properties received a ten year incentive. However, after three years of incentive payments, Granite Properties requested permission to sell a portion of their land and one building to Schlumberger. Granite assignedtheincentive to Schlumbergerin 2012. Schlumberger, a Fortune 500, French-owned oilfield service company,held a grand opening in September 2011 for their 150,000 square foot regional maintenance facility at the Granite Point Industrial Park. Renovation of the building increased the value by roughly$10 million. A Chapter 380 grant previously awarded to Granite Point was transferred to the company as an incentive for the Denton location. Schlumberger employed 105 in 2012. 4 The Jostens incentive is based on the increased property tax on the building and equipment resulting from the expansion of an existing facility. Dollar amounts shown in this report reflect the deduction ofJostens’ base year valuation of $11,569,410. Work on the Jostens project was completed in 2008, establishing 2009 as the first year of the incentive. Although the company met the contractual threshold of constructing the expansion and purchasing and/or moving more than $2 million in equipment to the facility, a significant amount of old equipment was removed, creating an overall reduction in the valuation for 2009. The 2010 valuation rose, showing an increase over the base year, but less than the 2009 decrease. The 2011 and 2012 valuations resulted in a positive cumulative return on investment reflected inthis report. Labinal/Safranrelocated and expanded their operations to Denton and plans to invest nearly $5.8 million in building, site and other improvementsto the property located on Russell Newman Boulevard.In addition, they will move equipment and other business personal property to Denton that is estimated to be valued at $5.2 million.The grant agreement provides a grant equal to 50% on the increment from the increase from the base valuation for a period of three years. Mayday Manufacturing/Tailwind Technologies manufactures precision bushings, sleeves, pins, and other machine parts used in the aerospace industry. Mayday Manufacturing was acquired by Tailwind Technologies, out of Ohio, in June of 2009. Mayday provides just-in-time delivery of aerospace parts and operates the plant 24 hours a day 7 days a week to accomplish this goal. High Tech Metal Refinishing is a subcontractor that performs the anodizing, cadmium platings, chemical film, black oxide, hard foam, liquid penetrant inspection, magnetic particle inspection, priming, painting, passivation and thermal processing of PH seals. The company is co-locatedwith Mayday providing for more efficient production and delivery capability. The agreement requires a minimum investment of $3 million in building, site and other improvements excluding the purchase price. In addition, they will acquire new equipment and other business personal property with an estimated value of $5.5 million over the next five years. The agreement stipulates that no valuation on the existing business personal property of Mayday Manufacturing and Hi-Tech Metal Refinishing will be included in this incentive.The contract provides a grant equal to 75% on the increment from the increase from the base valuation for a period of ten years. 5 Chapter 380 Grants Based on Sales Tax Performance Table 3,details economicimpact information through 2012on economic development agreements that provided grants based on a percentage of the sales tax generated by the project. Table 3: Denton Chapter 380 Sales Tax Agreements Denton Rayzor Unicorn DevelopmentCrossingRanchLakeTotals Base Year of Agreement200320072004 Incentive Term2005-20192012-20322009-2023 Cumulative Property Valuation$663,823,856 $188,213,557 $328,987,013 $1,181,024,426 Cumulative Property Tax Generated$4,377,287 $1,290,088 $2,225,381 $7,892,756 Cumulative Sales Tax Generated$11,184,715 $2,787,554 $442,299 $14,414,568 Less Sales Tax Incentive$3,728,238 $327,417 $147,433 $4,203,088 Net Sales & Property Tax Revenue$11,833,764 $3,750,225 $2,520,247 $18,104,236 Return on Investment Percentage317%1145%1709%431% New Jobs Created9604752501,685 Graph 1: Sales TaxGenerated and Rebated Denton Crossing is a 52-acre retail developmentthat is comprised of 500,000 square feet of retail and commercialtenants.The incentive Denton Crossing reimburses infrastructure costs for Spencer Road improvements. The development is home to:Best Buy,Cost Plus/WorldMarket, Kroger, Bed 6 Bath andBeyond, Old Navy, Famous Footwearand Ulta to name a few. The City of Denton granted the first sales tax incentive rebate of one-third of the sales tax generated by the project fora period of 15 years. Unicorn Lake is amaster-planned 134-acre mixed-use center that incorporates the urban style development of residential over retail along the lake. The City granted arebateof one third of thesales tax generated by the project for 15 years. The incentivereimburses infrastructure costs in return for the creation of an urban-style development, a roadway to provide needed access, and associated hardscapeto create the desired pedestrian connectivity.The Villas of Tuscan Hills, a 106 lot residential community that overlooks the lake, provides luxury homes. Dogwood Estates, an independent living community, the Brick House Gym, Cinemark, Pour House Grill, Hilton Homewood Suites,Washington Federal Savings and Loan,Towne Center Bankand several medicalofficesrepresent some of the businesses that have located in the development. Rayzor Ranch The mixed-use development has received a great deal of attention and interest from the community.Theagreement provides for a 50% share in the City’s sales tax revenue generated by the project for a period of 20 years.Rayzor Ranch Marketplacecompleted over 400,000 square feet of retail and commercial space.Sam’s and Wal-Mart anchor the Market Place with 137,381 and 189,929square feet, respectively. Sam’s is valued at $12.2 million and Wal-Martat $15.4 million. Staff began tracking property tax revenues in 2009 andsales tax revenues in 2010 when these large retail boxes opened. The 30,000 squarefoot strip center is home to 21 retail and restaurant tenants. Some of the new stores in the development include: Kohl’s, Villa Grande Mexican Restaurant, AT & T Store, HCA Urgent Care, Sports Clips, Top That Pizza, Mooyah’s Burgers, Starbucks and Sugar Queen Cupcakes. Additional retailers under construction, which will open in 2013, include: Ross Dress for Less, Famous Footwear and Jo-Ann’s Fabric. Panera Breadis underway on the north east corner of the development. Futureplans for the 600,000 square foot Rayzor Ranch Town Center, on the south side of Highway 380, include aDillard’s department store. Golden Triangle Mall was purchased by the M.G. Herring Groupand the Weitzman Group.The partnership is making major renovations to the mall to include: the addition of restaurants andstores; improving the building façade; creating a food court; and improving the parking lot and landscaping.The first phase of the renovations is now complete and includes: the installation of energy efficient lighting, interior landscaping and updated finishes. Construction is underway on the second phase and 7 grand reopeningis expected in late 2013. The joint venture will invest a minimum of $45 million in the development by October 2014 in order to qualify for the incentive. The incentive is basedon the increasein sales tax above the 2010 base sales tax generated for the development. The return on investment calculations will be reported in the year the incentive payments begin. The revenues reported in Table 4are for informational use and are not included in the overall return on investment calculations. Table 4: Golden Triangle Mall Total Golden Triangle Mall2010-2012 Property Value$110,708,203 Property Tax Generated$763,610 Sales Tax Generated$2,389,122 Total Property and Sales Tax$3,152,732 Property and Sales TaxSummary Property Tax Summary The return on investment for all incentives based on property tax performance is provided in Table 5 below. Results indicate that since 1999, the City of Denton has awarded $2,293,889 in property related tax incentives, and in return, has benefited from a net increase in property tax revenues of $5,482,895. Close to two-thousand jobs have been added as a result of these property based incentives. Table 5: Denton Tax Abatements and Chapter 380 Property Tax Agreements Total of all Property IncentivesProperty Totals Cumulative Property Valuation$1,209,527,419 Cumulative Property Tax Generated$7,776,784 Less Incentives$2,293,889 Net Property Tax Revenue$5,482,895 Return on Investment Percentage239% New Jobs Created1,995 Graph 2: Property Tax Generated and Abated/Rebated 8 Property and Sales Tax Summary The City of Denton has awarded a total of eleven active incentives to foster development in the community. The City has invested $6,496,977 in tax related incentives, and in return, has benefited from a net increase in property and sales tax revenues inthe amount of $23,587,131 sincethe inceptionof the incentive program in 1999.The return on investment for all of the incentives awarded is 363%,which represents an11%increase from the return of 352% in the 2010 report.Sales tax incentives represented the highest rate of return on investment at 431% followed by tax abatements and Chapter 380 property tax incentives at 249% and 213%, respectively. Denton Property and Sales Tax Agreements Total of all Types of IncentivesTotal Cumulative PropertyValuation$2,390,551,845 Cumulative Property Tax Generated$15,669,540 Cumulative Sales Tax Generated$14,414,568 Less Incentives$6,496,977 Net Property and Sales Tax Revenue$23,587,131 Return on Investment Percentage363% New Jobs Created3,680 Graph 3: New Value Created in Denton 9 Graph 4: New Jobs Created in Denton Stateand Local Revenues The chart below provides thebreakdown of the total revenue to City, State and the Denton County Transportation Authority(DCTA) fromsalestaxes generated at the major retail developments that have received incentives from the City of Denton. The State of Texas collects sales and use taxes from all retail sales and taxable services. The State has directly benefited from the incentives awarded for these mixed-use developments. Since 2005, the State of Texas has received a total of $60,060,700 in additional sales tax revenues as a result of the incentives awarded from the City. The state revenues comprise 81% of the total sales taxes generated by these mixed-use centers. 10 City, State and Local Sales Tax Generated Denton Rayzor Unicorn DevelopmentCrossingRanchLakeRatesTotals 200320072004 Base Year of Agreement 2005-20192012-20322009-2023 Incentive Term $745,647,667 $185,836,933 $29,486,600 $960,971,200 Total Sales $11,184,715 $2,787,554 $442,299$0.0150$14,414,568 Total City Sales Tax Generated $46,602,979 $11,614,808 $1,842,913 $0.0625$60,060,700 Total State Sales Tax Generated Total DCTA Sales Tax $55,924$13,938$2,211$0.0050$72,073 Generated $57,843,618 $14,416,300 $2,287,423 $0.0825$74,547,341 Total Sales Tax Generated Chart 1: SalesTax Generated Total Return on Investment Denton Rayzor Unicorn DevelopmentCrossingRanchLakeTotals 200320072004 Base Year of Agreement 2005-20192012-20322009-2023 Incentive Term $663,823,856 $188,213,557 $328,987,013 $1,181,024,426 Cumulative Property Valuation $4,377,287 $1,290,088 $2,225,381 $7,892,756 Cumulative Property Tax Generated Cumulative Total Sales Tax Generated $57,843,618 $14,416,300 $2,287,423 $74,547,341 (.0825) 11 $3,728,238 $327,417 $147,433 $4,203,088 Less Sales Tax Incentive $58,492,667 $15,378,971 $4,365,371 $78,237,009 Net Sales & Property Tax Revenue 1,569%4,697%2,961%1,861% Return on Investment Percentage 9604752501,685 New Jobs Created The Stateof Texas, the Denton Transportation Authority (DCTA) and Denton County have benefited from the sales and property tax generated as a direct result of the City’s investment. Since 2005, the state and DCTAhave received a total of $60,132,773in additional revenues as a result of the incentives awarded from the City. 12 WorkSession5 AGENDA INFORMATION SHEET AGENDA DATE: July 16, 2013 DEPARTMENT : Electrical Engineering UTILITIES ACM: Howard Martin, Utilities, 349-8232 ______________________________________________________________________________ SUBJECT Receive a report, hold a discussion and give staff direction related to Denton Municipal Electric’s proposed Southridge underground cable replacement project. BACKGROUND Southridge is one of Denton’s oldest underground fed subdivisions with cable and transformers dating back to 1966. The cable that was used in 1966 was directly buried in the ground which, at that time, was normal practice. When a direct buried cable fails, the failed spot on the cable must be located, dug up and exposed before it is spliced and repaired. This repair method can take hours and sometimes days to locate and repair. Today cable is installed in cable-in-conduit systems of PVC conduit. The purpose of conduit is to provide a clear and protected pathway for the cable. Advances in cable technologies, as well as the expense of repairing cable have driven preferences for protective conduit over that of direct buried cable. Furthermore, the permanent pathway provided by conduit facilitates replacement when needed. The old transformers in Southridge are 1966 vintage. Pad-mounted transformers have advanced from bare connections on the high voltage point of contact (also known as “live front”) to a closed insulated connection. The life expectancy of the transformers and wire in Southridge varies from 20 to 30 years depending on the manufacture. DME has replaced a number of transformers and cabling throughout Southridge, at various locations, on an as needed basis. When cable has failed, DME would install conduit and new cable. When transformers have failed, DME would replace the live front transformer with a dead front. DME has replaced roughly 30 to 35 percent of the existing Southridge infrastructure. However to improve system reliability and service to our customers, DME needs to replace the remaining vintage cable and transformers in the Southridge subdivision. A field survey was performed by DME’s Field Maintenance Personnel on the 210 transformers in Southridge. This survey was completed to provide a knowledge base to DME personnel of the extent of rehabilitation needed within the development. Multiple data inputs were a part of the survey and included: 19 Page of Survey Point Group 1.Insufficient working space High 2.Insufficient clearance to a third-party structure High 3.Vegetation obstruction High 4.Missing lock or pentabolt High 5.Broken or damaged pad High 6.Oil leaks High 7.Missing ground rod High 8.Signs of tracking or arcing High 9.Grade, leaning or erosion under the transformer pad Moderate 10.Needs a retaining wall Moderate 11.Needs a barrier post Moderate 12.Missing safety decals Moderate 13.Needs visibility striping Minor 14.Missing equipment number Minor 15.No fault indicator Minor The survey provided a couple of important facts regarding the operational and safety statuses of the existing underground distribution system in Southridge. The top three points of the survey include #1 Oil Leaks, #2 Tracking/Arcing, and #3 Vegetation Obstructions. 29 Page of A review of the Rankings clearly indicates a majority of the identified issues were ranked high. 39 Page of For cable replacement, DME will use a construction method called directional boring versus an open cut trench or ditch. There is no plan to use open cut installation practices; but if open cut is needed, it will be kept to a minimum. DME prefers directional boring when possible in the installation of cable-in-conduit systems, especially in confined or congested areas. Directional boring technologies has helped in creating better efficiencies in construction, it is more customer friendly, the environment is not disturbed as much, and it allows flexibility in missing potential issues such as rivers, culverts, roads, sidewalks, fencing, some landscaped beds, and other utilities. A congested area, such as exists in Southridge, is a perfect use for directional boring. Utilities prefer directional boring because it has less surface restoration and property disruption. With directional boring, the only deliberate disruption of a customer’s property is small excavation pits at the location of each transformer and sporadic strategic locations to intercept conduits. Using these pits, crews will directional bore in new conduit using GPS and radar tracking to direct the conduit’s path and depth. New pad-mounted, low profile dead front transformers will be installed at each end of a bore. Once the conduit is in place, new primary conductor will be pulled into the conduit and tied-in to the new transformers. The customer’s existing secondary will also be tied-in at this time. It may be discovered during the installation, a few existing secondary or service cables may be too short to easily make connections. If this occurs, DME crews will install a secondary cabinet or pedestal to allow for proper tie-in of existing electric service cables. During the time the primary, secondary, and/or service cables are being tied-in to the new transformer or secondary cabinet, the customer will experience a short outage. It is DME’s intention to work with each customer to schedule the tie-in and outage times. This will be facilitated by phone calls and a face-to-face meeting with the customer prior to tie-in. Replacement of the underground distribution system for Southridge will be done in three Exhibit A different phases as identified in . A requirement for DME is that the construction will be customer centric. DME’s plan to perform the rehabilitation of the underground facilities in Southridge has taken into consideration the impact on the customers. DME will have proactive involvement with the customers and plans to present the same information provided within this AIS and PowerPoint Presentation to both the Public Utilities Board and the City Council and then proceed with scheduling an informational meeting for the Southridge neighborhood and customers. This meeting will allow the impacted customers to learn of DME’s plan and have all of their questions answered. At this time the current, proposed start date for Phase 1 is September 2, 2013. It is anticipated that each phase may take up to six (6) months to complete. Phase 2 is tentatively scheduled to begin March 3, 2014 and Phase 3 is tentatively scheduled to begin on September 1, 2014. The start dates for Phases 2 and 3 may need to be adjusted. If rehabilitation in a previous phase is taking longer than six months to complete, the start date for Phases 2 and/or 3 may be delayed. However, if work in a previous phase is completed quicker, than the start for Phase 2 and/or Phase could begin sooner. In all cases, DME will communicate with homeowners in all phases prior to any construction. A landscaping contractor has been retained to work with DME and the Southridge residents to make sure each transformer location is restored back to the normal state prior to construction. Any excavation or tracks made by the boring rigs will be repaired and DME will work with each customer to assure they are aware of the repairs to their property and are satisfied with the 49 Page of repairs. Any repairs necessary at the homeowner’s site because of the project work will be handled and paid for by DME. After the replacement of the primary cable and transformers in Southridge, DME customers will gain a number of benefits: 1.The reliability of the underground distribution system will increase. There will be less points of potential failure. 2.Installation of dead-front transformers provides both Southridge and DME personnel a greater degree of safety. New transformer installations will be to current and regulated clearance standards to allow safe egress in case it is needed while working on or near a transformer. Additionally, the housing for the transformers will be utilized cabinets fully intact eliminating the possibility of accidental access to energized parts by the public. 3.Cable-in-conduit will greatly extend the life of the cable to 75 years or greater. Cable-in- conduit also will provide Southridge members with quicker power restoration than direct buried cable presently does in the event a future contractor damages a primary cable. OPTIONS Replace direct buried cable to prevent excessive unplanned customer outages in the Southridge subdivision due to the increasing failure rate of the direct buried primary cable. RECOMMENDATION This presentation is provided for informational purposes and to receive direction or insight into how best to inform the residents of the Southridge neighborhood of the proposed work. ESTIMATED SCHEDULE OF PROJECT DME will present the information to the Public Utility Board on June 24, 2013; presentation during the Working Session of the City Council is tentatively scheduled for August 5, 2013; and DME plans to hold an open meeting with the residents of Southridge on, or sometime after, August 12, 2013 (based on facility availability) - weeks prior to construction beginning. Barring any unexpected information or events derived from these meetings which could potentially delay the start, the project is scheduled to begin the week of September 2, 2013 after Labor Day. EXHIBIT A provides information regarding how the development has been phased for rehabilitation. Each phase of rehabilitation has been planned to take six (6) months to complete. However, for phases 2 and 3 the start date is tentative. The actual date may be delayed if work on the previous phase is taking longer than 6 months; however, the start may be sooner if the work on the previous phase is taking less than 6 months to complete. 59 Page of PRIOR ACTION/REVIEW (Council, Boards, Commissions) This item was presented to the Public Utilities Board at their June 24, 2013 meeting. FISCAL INFORMATION The Southridge project will be funded from DME account number 6203272500. BID INFORMATION Not applicable EXHIBITS EXHIBIT A – Southridge Subdivision Underground Cable Rehabilitation Project Phasing Respectfully submitted: Phil Williams General Manager of Electric Utilities Denton Municipal Electric Prepared by: Jerry Fielder, P.E. Division Engineering Manager – Distribution Denton Municipal Electric 69 Page of ConsentAgendaA AGENDA INFORMATION SHEET July 16, 2013Questions concerning this DATE: acquisition may be directed Finance to Chuck Springer DEPARTMENT: Bryan Langley ACM: SUBJECT Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager, or his designee, to enter into an Interlocal Agreement with Denton County for the County to provide Property Tax Billing and Collections Services for the City of Denton; providing a savings clause; and providing an effective date. BACKGROUND This Interlocal Agreement for tax collection services to be performed by Denton County was initially established in March 2007. At that time, the agreement was exclusive to the processing of statements and supplemental payments for the 2007 tax year and subsequent tax years. In August 2008, the City Council renewed the Interlocal Agreement, all tax years to be included in processing supplemental tax payments. The County currently processes tax statements (approximately 44,000) and tax supplemental because one entity is responsible payments on the Citys behalf. This arrangement is efficient for billing and collecting payments for all three taxing entities (the City, the County and the School District). This Interlocal Agreement continues to authorize Denton County to process tax statements and payments on behalf of the City of Denton. The price for this service will be $0.70 per parcel. The County will process the initial tax statements in October, with two delinquent mailings in the following February and May. RECOMMENDATION Staff recommends approval of continuing the Interlocal Agreement with Denton County t provide tax processing services for the 2013 tax year. ESTIMATE SCHEDULE OF PROJECT This is a one (1) year contract with an automatic one (1) year r Agenda Information Sheet July 16, 2013 Page 2 FISCAL INFORMATION Payment for these services will be funded from the General Fund operating account 162200.7879 in the estimated annual amount of $31,500 for FY 2013-14. Respectfully submitted: Chuck Springer Director of Finance Interlocal Agreement Tax Contract … THE STATE OFTEXAS§ COUNTYOFDENTON§ INTERLOCALCOOPERATIONAGREEMENTFORTAXCOLLECTION BETWEENDENTONCOUNTY, TEXAS, AND CITY/TOWNOF ismadeandenteredintothis THISAGREEMENT dayof2013,byandbetween,apolitical DENTONCOUNTY subdivisionoftheStateofTexas,hereinafterreferredtoas","andthe COUNTY, DentonCounty,Texas,alsoapolitical City/Townof, subdivision oftheStateofTexas, hereinafterreferred to as" MUNICIPALITY." andmutuallydesiretobesubjectto WHEREAS,COUNTYMUNICIPALITY theprovisionsofV.T.C.A.GovernmentCode,Chapter791,theInterlocalCooperation Act, andV.T.C.A.,TaxCode, Section 6.24 and 25.17 and; hastheauthoritytocontractwiththe WHEREAS,MUNICIPALITYCOUNTY forthetoactastaxassessorandcollectorforand COUNTYMUNICIPALITY has theauthorityto so act; COUNTY andforandin NOWTHEREFORE,COUNTYMUNICIPALITY, considerationofthemutualpromises,covenants,andagreementshereincontained,do agreeasfollows: Page1of14 I. st TheeffectivedateofthisAgreement shall bethe1dayofOctober, 2013. The term ofthis Agreement shall beforaperiod ofoneyear,from October1 through September30,2014.This Agreement shall beautomaticallyren additional one(1)yeartermat thediscretion oftheand, COUNTYMUNICIPALITY unlesswritten noticeoftermination is provided bytheterminatingpa priorto onehundred-fifty(150)days oftheexpiration dateofthecurre Agreement.agrees to deliverthis agreement no laterthan September MUNICIPALITY 30, 2013 in mannerrequiredbyto fullyexecutesaidcollectionservicesby COUNTY . COUNTY II. Forthepurposesandconsiderationhereinstatedandcontemplated, COUNTY shallprovidethefollowingnecessaryandappropriateservicesforto MUNICIPALITY themaximumextentauthorizedbythisAgreement,withoutregardtorace,se color,age, disability, ornational origin: ,byandthroughitsdulyqualifiedtaxassessor-collector,shall 1.COUNTY serveastaxassessor-collectorforparcels in Denton Countyof the foradvaloremtaxcollectionfor taxyear2013,andeachtaxyear MUNICIPALITY forthedurationofthisAgreement.agreesto performallnecessaryad COUNTY valoremassessingandcollectingdutiesforand MUNICIPALITY MUNICIPALITY doesherebyexpresslyauthorizetodoandperformallactsnecessaryand COUNTY propertoassessandcollecttaxesforagrees tocollect MUNICIPALITY.COUNTY basetaxes,penalties, interest,andattorney's fees. agreestoprepareandmailallcurrentanddelinquenttax 2.COUNTY Page2of14 statements requiredbystatute,supplementalchangesforapplicablepro aswellas prepareandmailanyothermailingasdeemednecessaryandappropriateby ; providedailyandmonthlycollectionreportsto COUNTYMUNICIPALITY; preparetax certificates;developandmaintainbothcurrentanddelinquenttaxrolls, disbursetax moniestodaily(businessday)basedonpriordaytax MUNICIPALITY postings. agreestoapproveandrefundoverpaymentorerroneouspaymentof COUNTY taxesfor pursuanttoTexasPropertyTaxcodeSections31.11and MUNICIPALITY 31.12from availablecurrenttaxcollectionsof;meetthe MUNICIPALITY requirementsofSection26.04oftheTexasTaxCode;andtodevelopandmaintainsuch otherrecordsandforms asarenecessaryorrequiredbyStatelaw,rules, orregulations. furtheragreesthatitwillcalculatetheeffectivetaxratesand 3.COUNTY rollbacktaxratesforandthatsuchcalculationswillbeprovidedat MUNICIPALITY noadditionalcostto.Theinformationconcerningtheeffectiveand MUNICIPALITY rollbacktaxrateswillbepublishedintheformprescribedbytheComptroll AccountsoftheStateofTexas,andasrequiredbySection26.04ofV.T.C.A.T shallnotifytaxassessor-collectornolaterthanJuly25thofeachyear MUNICIPALITY thatwishespublicationofformsornoticesspecifiedinthissection. MUNICIPALITY furtheragreesthatifcalculateseffectiveandrollbacktax MUNICIPALITYCOUNTY rates, shall publish therequired noticeson behalfof COUNTYMUNICIPALITY. Itisunderstoodandagreedbythepartiesthattheexpenseofpublicationshallbe borne byandthatshallprovides billing MUNICIPALITYCOUNTYMUNICIPALITY’ address to thenewspaperpublishingtheeffectiveandrollbacktaxrates Page3of14 .agrees, upon request, to offerguidanceand thenecessaryforms 4COUNTY forpostingnoticesofrequiredhearingandquarter-pagenoticesasrequiredbySections 26.05and26.06ofV.T.C.A.TaxCode,ifrequestssuch7daysin MUNICIPALITY advanceoftheintendedpublicationdate,agreestomanageallnoticesand COUNTY publicationsonbehalfofifrequestisreceivednolaterthanJuly25th. MUNICIPALITY mustapproveallcalculationsandnotices,intheformatrequiredby MUNICIPALITY ,beforepublicationmayproceed.Theaccuracyandtimelinessofallrequired COUNTY noticesaretheresponsibilityof MUNICIPALITY. Shouldvotetoincreaseitstaxrateabovetherollback 5.MUNICIPALITY taxratetherequiredpublicationofnoticesshallbetheresponsibilityof MUNICIPALITY. agreestodevelopandmaintainwrittenpoliciesandprocedures 6.COUNTY ofitsoperation.furtheragreestomakeavailablefullinformationaboutthe COUNTY operationoftheCountyTaxOfficeto,andtopromptlyfurnish MUNICIPALITY writtenreportstokeepinformedofallfinancialinformationaffecting MUNICIPALITY it. Page4of14 agreestopromptlydelivertoallrecords 7.MUNICIPALITYCOUNTY thatithasaccumulatedanddevelopedintheassessmentandcollectionofta cooperateinfurnishingorlocatinganyotherinformationandrecordsneededby to perform itsduties undertheterms andconditions ofthis Agreemen COUNTY agreestoallowanauditofthetaxrecordsof 8.COUNTY inpossessionduringnormalworkinghourswithatleast MUNICIPALITYCOUNTY’S 48hoursadvance,writtennoticeto.Theexpenseofanyandallsuchaudits COUNTY shallbepaidby.Acopyofanyandallsuchauditsshallbefurnished MUNICIPALITY to COUNTY. Ifrequiredbyagreestoobtainasurety 9.MUNICIPALITY,COUNTY bondfortheCountyTaxAssessor/Collector.Suchbondwillbeconditionedu faithfulperformanceoftheTaxAssessor/Collector’slawfulduties,willbemadepayable toandinanamountdeterminedbythegoverningbodyof MUNICIPALITY .Thepremiumforanysuchbondshallbebornesolelyby MUNICIPALITY MUNICIPALITY. agreesthatitwillpostanoticeonitswebsite,asa 10.COUNTY reminderthat delinquenttaxpenaltieswillapplytoallassessedtaxeswhicharenotpaid byJanuary 31, 2014.Cagreestomailaremindernoticetodelinquentproperty OUNTY accountsinthe monthofFebruarynotifyingthatdelinquenttaxpenaltieswillapplyto allassessedtaxes whicharenotpaidbyJanuary31,2014.Ther`emindernoticeswill bemailedbetween thth. February5andFebruary28 agreesthatitwillposttoasecurewebsitecollectionreportsfor 11.COUNTY listing current taxes, delinquent taxes, penaltiesand interest onadaily MUNICIPALITY Page5of14 basisthroughSeptember30,2014.COwillprovidemonthlyMaintenanceand UNTY Operation(hereinafterreferredtoas“MO”),andInterestandSinking(her referredtoas“IS”)collectionreports;providemonthlyrecapreports;an monthlyattorneyfeecollection reports. retainsitsrighttoselectitsowndelinquenttax 12.MUNICIPALITY collectionattorneyandagreestoreasonablycooperatewiththeattorney COUNTY selectedbyin thecollection ofdelinquent taxesandrelatedactivities. MUNICIPALITY will providewith acopyoftheircurrent tax 13.MUNICIPALITYCOUNTY collectionattorneycontractonorbeforeeachFebruary15th.will MUNICIPALITY providewithnoticeofanychangeincollectionattorneyonorbeforethe COUNTY effectivedateofthenewcollection attorneycontract. III. herebydesignatestheDentonCountyTaxAssessor/Collectortoact COUNTY onbehalfoftheCountyTaxOfficeandtoserveasLiaisonforwith COUNTY TheCountyTaxAssessor/Collector,and/orhis/herdesignee,shall MUNICIPALITY. ensuretheperformanceofalldutiesandobligationsof;shalldevotesufficient COUNTY timeandattentiontotheexecutionofsaiddutiesonbehalfofinfull COUNTY compliancewiththetermsandconditionsofthisAgreement;andshallprovi immediateanddirectsupervisionoftheCountyTaxOfficeemployees,agents, contractors,subcontractors,and/orlaborers,ifany,inthefurtheranceofthepurposes, termsandconditionsofthisAgreementforthemutualbenefitofand COUNTY MUNICIPALITY. Page6of14 IV. acceptsresponsibilityfortheacts,negligence,and/oromissions COUNTY relatedtopropertytaxserviceofallemployeesandagents,sub-contractors COUNTY and/orcontractlaborers,andforthoseactionsofotherpersonsdoingworkundera contract oragreement with totheextent allowedbylaw. COUNTY V. acceptsresponsibilityfortheacts,negligence,and/or MUNICIPALITY omissionsofallemployeesandagents,sub-contractorsand/or MUNICIPALITY contractlaborers,andforthoseofallotherpersonsdoingworkunderacontractor agreement with to theextent allowedbylaw MUNICIPALITY. VI. understandsandagreesthatits MUNICIPALITYMUNICIPALITY, employees,servants,agents,andrepresentativesshallatnotimereprese beemployees,servants,agents,and/orrepresentativesof COUNTY.COUNTY understandsandagreesthat,itsemployees,servants,agents,and COUNTY representativesshallatnotimerepresentthemselvestobeemployees,ser and/orrepresentativesof MUNICIPALITY. Page7of14 VII. Fortheservicesrenderedduringthe2013taxyear,agreesto MUNICIPALITY payforthereceipting,bookkeeping,issuing,andmailingoftaxstatementsas COUNTY follows: th Thecurrent taxstatements will bemailedbyOctober10oras soon 1. thereafteraspractical.Inordertoexpeditemailingoftaxstatementsthe mustadopttheir2013taxratebySeptember25,2013.Failureofthe MUNICIPALITY toadoptataxratebySeptember25,2013willcausedelayintimely MUNICIPALITY mailingoftaxstatements.PursuanttoTexasPropertyTaxCode§26.05the th mustadoptataxratebythelaterofSeptember30or60days MUNICIPALITY afterthe certifiedappraisalrollisreceived.Failuretoadoptanddeliv th thelaterof September30or60daysafterthecertifiedappraisalrollisreceivedmay resultindelay ofprocessingandmailingtaxstatements. MUNICIPALITY agreestoassumethecostsforadditionaldelayedtaxstatements, MUNICIPALITY processingandmailingasdeterminedby.Notwithstandingtheprovisions COUNTY oftheTaxCode,iffails todelivertheadopted taxrates(M&Oand MUNICIPALITY I&S)to theTaxAssessorCollectorby September25, 2013, it maycausea publication andreleaseoftaxstatements. will mailanadditional noticeduringthemonth ofMarch 2.COUNTY following theinitialmailing providedthathasrequestedsuchanotice MUNICIPALITY onorbeforeFebruary28th. Thefeeforthisservicewillbearatenottoexce statement. Atleast 30days, but nomorethan60days, prior to April 1st, and 3. following theinitialmailing,shallmailadelinquenttaxstatementmeeting the COUNTY Page8of14 requirementsofSection33.11oftheTexasPropertyTaxCodetotheownerofe parcel to theownerofeachparcel havingdelinquent taxes. At least 30 days, but nomorethan 60days,priorto July1st,andfollo 4. theinitialmailing,willmailadelinquenttaxstatementmeetingthe COUNTY requirementsofSection33.07oftheTexasPropertyTaxCodewillbemailedtothe ownerofeachparcel havingdelinquent taxes. st ForaccountswhichbecomedelinquentonorafterJune 1 5.,COUNTY shallmailadelinquenttaxstatementmeetingtherequirementsofSection33.08ofthe Texas PropertyTaxCodeto theownerofeach parcel havingdelinquent taxes. Ineventofasuccessfulrollbackelectionwhichtakesplaceaftertaxbills 6. forhavebeenmailed,agreestopaya MUNICIPALITYMUNICIPALITYCOUNTY programmingchargeof$5,000.00.willmailcorrectedstatementstothe COUNTY ownerofeachparcel. willchargeafeeforthisserviceataratenottoexceed COUNTY $0.70perstatementPropertyTaxCodeSection26.07(f).Whenarefundisrequiredper PropertyTaxCodeSection26.07(g),willchargea$.25processingfeeper COUNTY check,inadditiontothecorrectedstatementmailingcosts.Issuanceofre event ofasuccessful rollbackelection, will betheresponsibilityof COUNTY. will bebilledfortherefunds, postageand processingfees. MUNICIPALITY understandsandagreesthatwill,nolater 7.MUNICIPALITYCOUNTY st thanJanuary31,deductfromcurrentcollectionsof the the“Total MUNICIPALITY Cost” ofprovidingallservicesdescribedinparagraphs1-5above.This“TotalCost” includesanysuchservicesthathavenotyetbeenperformedatthetimeofded The“Total Cost”ofprovidingall services described in paragraphs 1-5aboveshall bethe total of: Page9of14 xthetotalnumberofparcelsonTaxRollfortaxyear $0.70MUNICIPALITY 2013. Intheeventthatarollbackelectionasdescribedinparagraph6takesplace COUNTY shall bill fortheapplicableprogrammingcharge,checkprocessing MUNICIPALITY fees,refundspaid,andrefundpostagecosts.shallpayall MUNICIPALITYCOUNTY billedamountswithin30daysofitsreceiptofsaidbill.Intheeventcostsforadditional delayedtaxstatements,processingandmailingareincurredasdescribedi shallbillforsuchamounts.shallpay COUNTYMUNICIPALITYMUNICIPALITY all such billedamounts within 30 daysofits receipt ofsaid bill. COUNTY furtherunderstandsandagreesthat(atits 8.MUNICIPALITYCOUNTY solediscretion)mayincreaseordecreasetheamountschargedtofor MUNICIPALITY anyrenewalyearofthisAgreement,providedthatgiveswrittennoticeto COUNTY sixty(60)dayspriortotheexpirationdateoftheinitialtermofthe MUNICIPALITY Agreement.TheCountyBudgetOfficeestablishescollectionratesannuallybasedona surveyofactualannualcostsincurredbytheinperformingtaxcollection COUNTY services.ThecollectionrateforeachyearisapprovedbyCountyCommissioners’Court. Allentitiesareassessed thesameperparcelcollection rate. VIII. agreestoremitalltaxes,penalties,andinterestcollectedon COUNTY behalfandtodepositsuchfundsintothe MUNICIPALITY'sMUNICIPALITY’s depositoriesas designated: Page10of14 Fordeposits oftax, penalties, and interest, payment shall bebywi 1. transferorACHtodepositoryaccountsonly,andsegregatedintothe MUNICIPALITY appropriateMOandISaccounts.Onlyintheeventoffailureofelectronictransfer protocolwillacheckfordepositsoftax,penaltyandinterestbesentbymailto . MUNICIPALITY Ifusesthesamedepositoryasthedeposits 2.MUNICIPALITYCOUNTY, oftax, penaltyand interest shall bebydeposit transfer. InanticipationofrenewalofthisAgreement,furtheragrees 3.COUNTY thatdepositswillbemadedailythroughSeptember30,2014.Itisexpressly however,thatthisobligationofshallnotsurviveterminationofthis COUNTY Agreement,whetherbyterminationbyeitherpartyorbyfailureoftheparti this Agreement. Ineventthatexperiencesshortageincollectionsasaresult 4.COUNTY ofanoutstandingtaxdebtof,theagreesa MUNICIPALITYMUNICIPALITY paymentintheamountofshortageshallbemadebycheckorACHto COUNTY within 15 daysafternotification ofsuch shortage. IX. Intheeventoftermination,thewithdrawingpartyshallbeobligatedtomak paymentsasarerequiredbythisAgreementthroughthebalanceofthetaxyea noticeisgiven.shallbeobligatedtoprovideservicespursuanttothis COUNTY Agreement, duringsuchperiod. Page11of14 X. ThisAgreementrepresentstheentireagreementbetweenand MUNICIPALITY andsupersedesallpriornegotiations,representations,and/oragreements, COUNTY eitherwrittenororal.ThisAgreementmaybeamendedonlybywritteninstru signedbythegoverningbodies ofboth andorthose MUNICIPALITYCOUNTY authorized to sign on behalfofthosegoverningbodies. XI. Anyandallwritten noticesrequired to begivenunderthis Agreement s ormailed to thelistedaddresses: COUNTY: CountyJudgeofDentonCounty 110West Hickory Denton, Texas 76201 Telephone940-349-2820 MUNICIPALITY: TheCity/Town of Address: City, State,Zip:_ Telephone:Email: Page12of14 XII. herebydesignatestoactonbehalf MUNICIPALITY of,andtoserveasLiaisonfortoensurethe MUNICIPALITYMUNICIPALITY performanceofalldutiesandobligationsofasstatedinthis MUNICIPALITY Agreement.’sdesigneeshalldevotesufficienttimeandattentionto MUNICIPALITY theexecutionofsaiddutiesonbehalfofinfullcompliancewiththe MUNICIPALITY termsandconditionsofthisAgreement;shallprovideimmediateanddirect oftheemployees,agents,contractors,subcontractors,and/orlaborers, MUNICIPALITY ifany,inthefurtheranceofthepurposes,termsandconditionsofthisAgre mutual benefit ofand MUNICIPALITYCOUNTY. XIII. IntheeventthatanyportionofthisAgreementshallbefoundtobecontraryt law,itistheintentofthepartiesthattheremainingportionsshallremain forceandeffect to theextentpossible. XIV. Theundersignedofficersand/oragentsofthepartiesaretheproperlyauth officialsandhavethenecessaryauthoritytoexecutethisagreementonbeh parties.Eachpartyherebycertifiestotheotherthatanyresolutionsnecessaryforthis Agreement havebeen dulypassedandarenowinfull forceandeffect. Executed in duplicateoriginals this,dayof2013. Page13of14 COUNTYMUNICIPALITY Denton CountyTown/City: 110West HickoryAddress: Denton, Texas 76201City, State,Zip: BY:BY: HonorableMaryHornName: Denton CountyJudgeTitle: ATTEST:ATTEST: BY:BY: CynthiaMitchellName Denton CountyClerkTitle APPROVEDFORM ANDCONTENT:APPROVEDASTOFORM: MichelleFrenchJohnFeldt Denton CountyDenton County TaxAssessor/CollectorAssistant DistrictAttorney Page14of14 ConsentAgendaB AGENDA INFORMATION SHEET AGENDA DATE: July 16, 2013Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Vance Kemler at 349-8044 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance accepting competitive proposals and awarding a public works contract for the construction of Landfill Cells 4AB and 5 for the City of Denton; providing for the expenditure of funds therefor; and providing an effective date (RFP 5256-awarded to FCS Construction, LLC in the amount of $2,917,242.90). The Public Utilities Board recommends approval (6-0). RFP INFORMATION City of Denton Solid Waste Landfill Cells 4AB and 5 comprise approximately 17 total acres which are must be excavated to an approximate depth of 23 feet, in compliance with the Texas Commission Environmental Quality (TCEQ) Municipal Solid Waste Facility Permit Number 1590A. The construction project includes the additional infrastructure necessary to support the expansion of the Municipal Solid Waste Facility. The current disposal area in Cell 3AB will provide the disposal capacity to meet needs through the last quarter of 2013. excavation and construction of the project. The engineering firm of CP&Y, Inc. (CP&Y) prepared the engineering design and construction specifications. In June 2013, the Public Utilities Board (PUB) recommended CP&Y to be the onsite project engineer during the construction process. RFP 5256 for the landfill cell construction services was advertised to the marketplace through approximately 1100 contractors. Proposals were received from four (4) firms as indicated within Exhibit 1, with initial pricing ranging from $2,381,789.80 to $3,285,015.90. The evaluation of the individual submissions was based on the following scoring criteria: a)Project Schedule (FACTOR: 20%). Ability to timely start and complete the project. This includes the schedule to complete the project and may include ability to meet required milestones of completion. Agenda Information Sheet July 16, 2013 Page 2 RFP INFORMATION (CONTINUED) b)Indicators of Probable Performance under contract (FACTOR: 20%). Indicators of probable performance under the contract to include: past vendor performance, financial resources and ability to perform, experience or demonstrated capability and agreements and support. c)Price, Total Cost of Ownership (FACTOR: 60%). The price of the items, to include total cost of ownership, such as installation costs, life cycle costs, and warranty provisions. A selection committee was established to evaluate the submitted proposals using the stated criteria. The committee consisted of three (3) voting members from the Solid Waste Department and two (2) non-voting members-one each from CP&Y, Inc. and the Materials Management Department. The evaluation scores, ranking, and price tabulation are shown in Exhibit 1. The proposals were ranked, as indicated below, and the top ranked respondent was selected for additional negotiation in accordance with the provisions of Texas Government Code 2267. 1.FCS Construction, LLC Frisco, TX 2.DE Rice Construction Co., Inc. Borger, TX 3.Beavers Contracting, LLC Aubrey, TX 4.AMS Company, Inc. Cleburne, TX respondent, the City requested a Best and Final Offer (BAFO) for the cell landfill construction project. FCS Construction, LLC offered a final construction price of $2,917,242.90 for the project (Exhibit 2). While FCS Construction, LLC did not offer the lowest overall price, the selection committee felt that the price difference was sufficiently offset by their construction delivery timeline of 110 days, and their overall experience with projects of this magnitude. The project schedule proposed by FCS Construction, LLC was significantly shorter than the other respondents, offering a faster construction completion cycle. FCS Construction, LLC provided excellent examples of their specific construction experience and ability to manage this type of complex construction project- detailing successful completion of similar projects in Dallas, Waco, Corpus Christi, and many other locations across Texas. The evaluation committee felt that the submission from FCS Construction, LLC offered the best overall value for the construction of the City of Denton Landfill Cell project. Agenda Information Sheet July 16, 2013 Page 3 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On July 8, 2013, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. RECOMMENDATION Award a contract for the construction of Landfill Cells 4AB and 5, to FCS Construction, LLC in the amount of $2,917,242.90. PRINCIPAL PLACE OF BUSINESS FCS Construction, LLC Frisco, TX ESTIMATED SCHEDULE OF PROJECT Construction of the Landfill cells is estimated to be completed by November 16, 2013. FISCAL INFORMATION This expenditure will be funded from the following bond fund accounts: 660072595.1360.30100 $2,295,655.90 660072594.1360.30100 $ 396,076.53 660072592.1360.30100 $ 124,172.68 660072593.1360.30100 $ 66,322.76 660072585.1360.30100 $ 35,015.03 Requisition #113868 has been entered in the Purchasing software system. EXHIBITS Exhibit 1: Price Tabulation, Ranking and Evaluation Sheets Exhibit 2: Best and Final Offer Pricing Sheet Exhibit 3: Public Utilities Board Minutes Respectfully submitted: Chuck Springer Director of Finance 1-AIS-RFP 5256 RFP # 5256 EXHIBIT1 DATE: 7/2/13 Description: Construction of Landfill Cells 4AB and 5 DESCRIPTION VENDORVENDORVENDORVENDOR DE Rice Construction Beavers Contracting, LLCAMS Company, IncFCS Construction, LLC Co., Inc. Principle Place of Business: Aubrey, TXCleburne, TXFrisco, TXBorger, TX Addendums 1 & 2 YesYesYesYes Acknowledged Total Working Days for 180125110110 completion Completion Date January 31, 2014December 1, 2013November 16, 2013November 27, 2013 Total Working Days for 14101010 project start Base Price w/bonding: $2,381,789.80$2,699,405.00$2,917,242.90$3,285,015.90 Item #6$34,000.00$175,000.00$104,000.00$80,000.00 Item #7$280,000.00$288,000.00$368,000.00$480,000.00 Item #8 $9,250.00$12,025.00$11,100.00$18,500.00 Item #9$11,904.00$7,200.00$6,720.00$24,000.00 Item #10 $21,000.00$15,750.00$14,700.00$52,500.00 Item #11$2,975.00$2,550.00$3,910.00$8,500.00 Item #12 $1,500.00$4,260.00$480.00$1,260.00 Item #13$145,000.00$174,000.00$182,700.00$377,000.00 Item #14 $370,660.00$402,480.00$387,000.00$369,800.00 Item #15$430,860.00$442,040.00$438,600.00$412,800.00 Item #16 $109,040.00$137,460.00$150,800.00$261,000.00 Item #17$18,000.00$34,000.00$76,000.00$29,450.00 Item #18 $50,000.00$60,000.00$84,000.00$49,000.00 Item #19$87,120.00$69,960.00$75,240.00$79,992.00 Item #20 $30,515.00$30,600.00$44,200.00$55,760.00 Item #21$91,234.00$70,785.00$102,245.00$81,324.10 Item #22 $3,932.50$3,146.00$3,146.00$15,100.80 Item #23$9,438.00$20,449.00$16,201.90$35,392.50 Item #24 $15,000.00$15,000.00$20,400.00$21,894.00 Item #25$26,000.00$20,000.00$9,200.00$20,610.00 Item #26 $4,000.00$14,000.00$44,000.00$7,000.00 Item #27$25,000.00$28,000.00$32,000.00$28,710.00 Item #28 $4,500.00$12,000.00$52,000.00$2,000.00 Item #29$1,500.00$4,500.00$6,000.00$3,450.00 Item #30 $118,650.00$115,500.00$128,100.00$126,000.00 Item #31$5,000.05$3,300.00$7,425.00$8,910.00 Item #32 $95,000.00$88,000.00$104,000.00$87,700.00 Item #33$6,000.00$5,000.00$500.00$2,500.00 Item #34 $1,600.00$15,000.00$35,000.00$15,000.00 Item #35$40,500.00$22,500.00$33,750.00$28,732.50 Item #36 $850.00$3,000.00$1,600.00$10,950.00 Item #37$41,000.00$25,000.00$42,000.00$7,000.00 Item #38 $22,000.00$2,000.00$14,000.00$10,000.00 Item #39$6,435.00$13,200.00$11,000.00$17,380.00 Item #40 $4,750.00$5,700.00$6,650.00$4,750.00 Item #41$73,000.00$120,000.00$58,000.00$115,800.00 Item #42 $10,000.00$5,500.00$11,500.00$12,900.00 Item #43$1,750.00$2,275.00$2,975.00$2,135.00 Item #44 $16,000.00$20,000.00$19,000.00$14,500.00 Item #45$2,000.00$4,200.00$35,000.00$5,000.00 Item #46 $8,100.00$13,500.00$13,500.00$6,750.00 Item #47$1,375.00$1,650.00$2,750.00$6,875.00 Item #48 $1,901.25$30,875.00$22,100.00$36,400.00 Item #49$7,500.00$5,000.00$9,800.00$5,000.00 Item #50 $7,200.00$14,000.00$7,200.00$31,690.00 Item #51$50,000.00$75,000.00$77,000.00$166,000.00 Item #52 $36,000.00$30,000.00$19,000.00$19,000.00 Item #53$36,000.00$30,000.00$19,000.00$19,000.00 Item #54 $6,750.00$6,000.00$3,750.00$10,000.00 RFP # 5256 EXHIBIT 2 DATE: 7/3/13 Description: Construction of Landfill Cells 4AB and 5 Initial Pricing 6.20.13BAFO Pricing 7.3.13 DESCRIPTION VENDORVENDOR FCS Construction, LLCFCS Construction, LLC Principle Place of Business: Frisco, TXFrisco, TX Addendums 1 & 2 YesYes Acknowledged Total Working Days for 110110 completion Completion Date November 16, 2013November 16, 2013 Total Working Days for 1010 project start Base Price w/bonding: $2,917,242.90$2,917,242.90 Item #6$104,000.00$104,000.00 Item #7 $368,000.00$368,000.00 Item #8$11,100.00$11,100.00 Item #9 $6,720.00$6,720.00 Item #10$14,700.00$14,700.00 Item #11 $3,910.00$3,910.00 Item #12$480.00$480.00 Item #13 $182,700.00$182,700.00 Item #14$387,000.00$387,000.00 Item #15 $438,600.00$438,600.00 Item #16$150,800.00$150,800.00 Item #17 $76,000.00$76,000.00 Item #18$84,000.00$84,000.00 Item #19 $75,240.00$75,240.00 Item #20$44,200.00$44,200.00 Item #21 $102,245.00$102,245.00 Item #22$3,146.00$3,146.00 Item #23 $16,201.90$16,201.90 Item #24$20,400.00$20,400.00 Item #25 $9,200.00$9,200.00 Item #26$44,000.00$44,000.00 Item #27 $32,000.00$32,000.00 Item #28$52,000.00$52,000.00 Item #29 $6,000.00$6,000.00 Item #30$128,100.00$128,100.00 Item #31 $7,425.00$7,425.00 Item #32$104,000.00$104,000.00 Item #33 $500.00$500.00 Item #34$35,000.00$35,000.00 Item #35 $33,750.00$33,750.00 Item #36$1,600.00$1,600.00 Item #37 $42,000.00$42,000.00 Item #38$14,000.00$14,000.00 Item #39 $11,000.00$11,000.00 Item #40$6,650.00$6,650.00 Item #41 $58,000.00$58,000.00 Item #42$11,500.00$11,500.00 Item #43 $2,975.00$2,975.00 Item #44$19,000.00$19,000.00 Item #45 $35,000.00$35,000.00 Item #46$13,500.00$13,500.00 Item #47 $2,750.00$2,750.00 Item #48$22,100.00$22,100.00 Item #49 $9,800.00$9,800.00 Item #50$7,200.00$7,200.00 Item #51 $77,000.00$77,000.00 Item #52$19,000.00$19,000.00 Item #53 $19,000.00$19,000.00 Item #54$3,750.00$3,750.00 Exhibit 3 DRAFT MINUTES 1 PUBLIC UTILITIES BOARD 2 3 July 8, 2013 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, July 8, 2013 at 9:02 a.m. in the Service Center Training Room, City of Denton Service 8 Center, 901A Texas Street, Denton, Texas. 9 10 Present: Vice Chair Billy Cheek, Secretary Randy Robinson, Leonard Herring, Phil 11 Gallivan, Barbara Russell and Lilia Bynum 12 13 Absent: Chairman Dick Smith 14 15 Ex Officio Members: Howard Martin, ACM Utilities 16 17 Absent: George Campbell, CM 18 OPEN MEETING: 19 20 21 1)Consider recommendation to adopt an ordinance accepting competitive proposals and 22 awarding a public works contract for the construction of the Landfill Cell 4Aand B/5 for the 23 City of Denton; providing for the expenditure of funds therefor; and an effective date (RFP 24 5256 awarded to FCS Construction, LLC Frisco, Texas, in the amount of ($2,917,242.90). 25 Board Member Herring pulled this item for questions. Herring stated that the low bid is 26 $217,000 less than what was acceptedWhen do we decide that the amount of money is to 27 . much a difference.Cheek stated that the difference is about $600,000 28 , Kemler agreed. 29 Kemler stated that the two apparent lowest proposals neither of those contractors have built a 30 landfill cell. The two contractors have never worked in a landfill adding liners, they have only 31 excavated. They did not meet the qualification criteria under section four of the RFP. The other 32 two proposers had landfill experience. FCS Construction LLC has worked on small and medium Herring asked of the two contractors that are qualified 33 projects comparable to this project. did staff take the low bidHerring asked why we submitted the 34 , Kemler answered they did. RFP to companies that were not qualified 35 36 submitting a proposal. That is where the qualifications become very important. There was some 37 further discussion regarding the contractors. 38 Cheek asked about the scores on the evaluation sheet for the contractors and asked about 39 the backup information and the method 40 . Kemler discussed how the scores came about and 41 from whom. The method is based on a criterion that was established in the multipage 42 specification. Every component of the evaluation has categories that have to be evaluated. Gallivan stated it is not all that subjective 43 . Kemler agreed. The pricing is 60% of the 44 equation, which is the easiest. The other areas are more technical. 45 Herring asked if the ACM has over sight to this activity 46 . Fortune stated that he and Kemler 47 did discuss this item. Fortune was not on the selection committee. They did discuss there were Draft Minutes of the Public Utilities Board Meeting July 8, 2013 Page 2 of 2 1 two vendors that did not meet criteria. Kemler wanted to go through the selection process. This Herring asked if there was ever a 2 did proceed as normal where there is a selection committee. contract with this widely divergent from the low bid and the chosen one 3 . Fortune stated they Herring verified that it would be the recommendation of Kemler 4 have seen it in the past. and Fortune 5 , Fortune agreed. 6 Russell asked if anyone can submit on a request for proposal 7 . Kemler answered they can but Russell asked about their references 8 . Kemler stated that 9 none of their references had to do with projects like this. There was some discussion regarding 10 bonds. 11 Russell added that the low bidder may not know things that they would need for this 12 project. Robinson agreed and stated that may be why their bid is so low 13 . 14 Board Member Gallivan motioned to approve item 1 with a second from Board Member 15 Bynum. The vote was 6-0 approved 16 17 18 Adjournment 11:37 a.m. ORDINANCE NO. _________ AN ORDINANCE ACCEPTING COMPETITIVE PROPOSALS AND AWARDING A PUBLIC WORKS CONTRACT FOR THE CONSTRUCTION OF THE LANDFILL CELL 4AB AND 5 FOR THE CITY OF DENTON; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (RFP 5256-AWARDED TO FCS CONSTRUCTION, LLC IN THE AMOUNT OF $2,917,242.90). WHEREAS, the City has solicited, received and tabulated competitive proposals 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 proposal is the highest scored proposal for the construction of the public works or improvements described in the Request for Proposal (RFP) document and plans and specifications therein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following competitive proposal 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 RFP number assigned hereto, are hereby accepted and approved: RFP NUMBER CONTRACTOR AMOUNT 5256 FCS Construction, LLC $2,917,242.90 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 Proposers including the timely execution of a written contract and furnishing of performance and payment bonds, and insurance certificate after notification of the award. 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 proposals accepted and approved herein, provided that such contracts are made in accordance with the Notice to Proposers 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 5256 to the City Manager of the City of Denton, Texas, or his designee. SECTION 5. Upon acceptance and approval of the above competitive proposals 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 proposals 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 , 2013. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 5-ORD-RFP 5256 ConsentAgendaC AGENDAINFORMATION SHEET AGENDA DATE: July 16, 2013 Questions concerning this acquisition may be directed to DEPARTMENT: Materials Management Mike Beutner 349-7900 ACM: Bryan Langley SUBJECT Consider adoption of an ordinance accepting competitive proposals and awarding a contract for the purchase of two public safety driving simulators for the City of Denton Joint Public Safety Training Facility; providing for the expenditure of funds therefor; and providing an effective date (RFP 5179-Purchase of Two Public Safety Driving Simulators awarded to FAAC, Inc. in the notto-exceed amount of $276,156). RFP INFORMATION The Denton Area Public Safety Training Facility is a public safety training center for the Denton Police and Fire Departments. The facility will also serve as the training center for the Denton five (5) year lease. Tasked with providing public safety training courses to law enforcement and fire personnel throughout the area, the facility will feature four classrooms, six offices, a meeting area, a break room, a library, a defensive tactics room, a cardio/fitness/weight room, a locker room with restrooms and shower facilities, storage space, and two driving simulators. The facility will be located in the east end of City Hall East and construction is currently underway. In 2009, the Police Department applied for and was awarded $500,000 from a Congressionally Selected Award funded through the United States Department of Justice for equipment to use in the new training facility. The grant funds are not permitted to fund direct construction but included in the grant application was a request for a driving simulator to provide training in a classroom setting, which affords academy and in-service students the opportunity to experience realistic training scenarios. Therefore, the entire amount of this purchase will be funded from the Congressionally Selected Award. Additional equipment for the Joint Training facility will be funded from the remainder of the Award funds. On April 18, 2013, the City issued a Request for Proposal (RFP 5179) soliciting proposals for the purchase and installation for two public safety driving simulators. Submissions under this RFP were due Tuesday, May 14, 2013. Standard purchasing procedures were followed to solicit the proposals. Request for Proposals (RFP) were sent to 295 prospective suppliers. In addition, the notice was advertised in the local newspaper, and the specifications were placed on the City of Denton Materials Management website for prospective suppliers to download. Two responses were received meeting the minimum qualifications (Exhibit 1). Agenda Information Sheet July 16, 2013 Page 2 RFP INFORMATION (CONTINUED) Evaluation of individual submissions was based on the following scoring criteria: a)Indicators of Probable Performance under contract (FACTOR: 5%). Indicators of probable performance under the contract to include: past vendor performance, financial resources and ability to perform, experience or demonstrated maintenance agreements and support. b)Delivery Timeframe (FACTOR: 5%). The delivery time frame for goods after receipt of order (A.R.O) c)Compliance with Specifications, Quality, Reliability, Characteristics to meet stated or implied needs (FACTOR 40%) Compliance with the stated specification(s), coupled with the quality and reliability of the goods and services, such as fitness for use that meets or exceeds customers expectations, and the characteristics of the product or service that bear on its ability to meet the stated/implied needs. d)Price, Total Cost of Ownership (FACTOR: 50%). The price of the items, to include total cost of ownership, such as installation costs, life cycle costs, and warranty provisions. A selection committee consisting of Police Department, Fire Department, and Materials Management (advisory only) staff was established to evaluate the submitted proposals using the stated criteria. A Best and Final Offer (BAFO) procedure is allowed under the best value criteria used to evaluate this RFP. The committee received BAFOs from both responding vendors, FAAC, Inc. (FAAC) and Doron Precision Systems, Inc. The proposal submitted by FAAC ranked the highest (Exhibit 2). The committee noted that the FAAC price was the lowest, and the FAAC simulator unit has a partially working mobile d cockpit. Most modern-day police and fire vehicles are equipped with MDCs that send officers and fire fighters information regarding calls for service. Although a boon to the overall police and fire efficiency, departmen accidents resulting from drivers inappropriately paying attention to MDCs rather than attentively operating their vehicles. Therefore, training drivers to avoid being distracted by MDCs is a key component to the overall program success. (5) year warranty was $285,940. Their BAFO proposal was $276,156 resulting in a savings of $9,784. Therefore, the proposal submitted by FAAC has been determined to provide the best value for the City. Agenda Information Sheet July 16, 2013 Page 3 RECOMMENDATION Staff recommends the award of the purchase of two public safety driving simulators from FAAC, Inc. in the notto-exceed amount of $276,156. PRINCIPAL PLACE OF BUSINESS FAAC, Inc. Ann Arbor, MI ESTIMATED SCHEDULE OF PROJECT The installation of the simulators is estimated be completed by November 30, 2013 FISCAL INFORMATION Funding for the purchase of the two simulators will be provided by the Department of Justice Congressionally Selected Awards Program 2009-G9258-TX-DD. EXHIBITS Exhibit 1: Pricing Tabulation Exhibit 2: Evaluation and Ranking Sheet Respectfully submitted: Chuck Springer, 349-8260 Director of Finance 1-AIS-RFP 5179 RFP # 5179 EXHIBIT 1 DATE: 07/01/13 Description: Purchase and Installation of Two Public Safety Driving Simulators DESCRIPTION VENDORVENDOR Doron Precision FAAC, Inc. Systems, Inc. Principle Place of Business: Ann Arbor, MIBinghamton, NY Initial Base Price (Before BAFO) $266,680.00$245,350.00 Technical Support, 5 Year Warranty and $19,260.00$47,500.00 Annual Maintenance/Repair Plan Total Evaluated Price $285,940.00$292,850.00 Payment Term Discounts Payment terms for the City of Denton are typically 30 days. Please indicate the additional discount extended to each monthly invoice that is paid within the time period indicated below. Invoice Paid in 20 days 0.00%0.00% Invoice Paid in 15 days 0.50%0.00% Invoice Paid in 10 days 0.50%0.00% *Prices shall be bid FOB Destination *In case of calculation error, unit pricing shall prevail Exhibit 2 RFP 5179 - Evaluation Two Public Safety Driving Simulators Monday, July 01, 2013 Initial Ranking/Score 100.001st FAAC, Inc. 90.402nd Doron Precision Systems, Inc. The top two (2) finalists received a BAFO letter to determine the overall best value to the city. ORDINANCE NO. _________ AN ORDINANCE ACCEPTING COMPETITIVE PROPOSALS AND AWARDING A CONTRACT FOR THE PURCHASE OF TWO PUBLIC SAFETY DRIVING SIMULATORS FOR THE CITY OF DENTON JOINT PUBLIC SAFETY TRAINING FACILITY; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (RFP 5179-PURCHASE OF TWO PUBLIC SAFETY DRIVING SIMULATORS AWARDED TO FAAC, INC. IN THE NOTTO-EXCEED AMOUNT OF $276,156). WHEREAS, the City has solicited, received and evaluated competitive sealed proposals for the supply of two public safety driving simulators for the City of Denton Joint Public Safety Training Facility 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 5179 FAAC, Inc. $276,156 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 5179 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 , 2013. ______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY:____________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: _________________________________ 4-ORD-RFP 5179 ConsentAgendaD CITY OF DENTON CITY COUNCIL MINUTES June 4, 2013 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, June 4, 2013 at 3:00 p.m. in the Council Work Session Room. PRESENT: Council Member Engelbrecht, Mayor Pro Tem Kamp, Council Member Hawkins, Council Member Gregory, Council Member Roden, Mayor Burroughs ABSENT: Council Member King 1. Citizen Comments on Consent Agenda Items There were no citizen comments on Consent Agenda Items. 2. Requests for clarification of agenda items listed on the agenda for June 4, 2013. Council Member Roden asked what responsibility the City had in terms of the rates associated with Consent Agenda Item J. John Knight, Deputy City Attorney, stated that the benefit of system was that it was better than the GRIP system and would provide some meaningful participation. The procedures would be the same with rate cases and allow the City to have input on the rate. The rate of return could not be negotiated below 10% but would still provide a $3 million deduction. Council Member Roden stated that Council was not approving a rate but rather approving a mechanism to use in the future. Knight replied correct. Mayor Burroughs asked about Consent Agenda Item I regarding the renewal and expansion of the red light camera program and any associated policy implications with the expansion. Council Member King arrived at meeting Scott Fletcher, Captain-Denton Police Department, stated that the expansion of the program was done in 2007. At that time, staff was directed to use the Traffic Safety Commission to vet any further expansions. There was no requirement for any additional voting under State law but merely provide information for expansion and for renewal. As the program was seem as controversial, staff felt Council needed to be aware of the expansion. It was at the direction of Council to have the Traffic Safety Commission review the expansion of the program. 3. Receive a report, hold a discussion, and give staff direction regarding adoption fees and subsidy funding for animal adoptions at the City of Denton Animal Shelter. Scott Fletcher, Captain-Denton Police Department, presented information regarding the proposed fees. The current fees were $110 for cats and $120 for dogs. The fees were established in 2005 to assist with a one-stop adoption process where adopted animals were spayed/neutered, vaccinated, examined, and microchipped by a veterinarian under contract with the City. The goal was to have all animals seen by a veterinarian before leaving the shelter. There were pros City of Denton City Council Minutes June 4, 2013 Page2 and cons in setting adoption prices for shelter animals. The City did not offer free animals as it was felt that if an individual could not afford the fee, he/she could not afford to maintain the animal. Staff surveyed 24 area cities and found that Denton had the second highest rates. Adoption subsidies had been in effect for several years which helped offset the cost of the adoption. The Denton Animal Shelter Foundation paid for a portion of the adoption rates. From January through March of this year, 735 animals were adopted from the shelter. Just over 71% of those adoptions were subsidized by private donations through individual citizens or the Animal Shelter Foundation. The subsidizing of the adoption fees was a mixed blessing. While the subsidizing was effective, it caused confusion on which day it was effective and what was the price. Recommended changes – staff was recommending to reduce the rate to $60 for dogs and cats. That would put Denton’s rate the second lowest compared to area cities. Barn cats would remain free as this was a valuable service for those cats which were not socialized or not a good fit as an in-house companion. Staff was suggesting formalizing the adoption subsidy program with a set adoption subsidy of $30 per animal. Staff was also proposing to allow the Animal Services Supervisor, with the approval of the City Manager, the flexibility to further reduce the adoption fees for specific animals due to special circumstances when it was determined to be in the best interest of the animal and the shelter. The reduction of the fees would result in a net reduction of projected revenue of approximately $151,884. However, the current adoption fee did not cover the cost of housing the animals or the cost for putting down the animals. The opening of the new shelter would have on-site vet clinic which would provide services at a cheaper rate to alter the animals when adopted. Mayor Pro Tem Kamp felt this was a good solution. There were many rescue groups and individuals who donated to the shelter. The funding needed to be in the hands of a professional to know what to do with the funding. She questioned the feeling of the Animal Shelter Advisory Committee. Fletcher stated that the Committee felt it was a great step forward. Council Member Roden asked about a possibly higher rate for pure breeds, puppies or kittens. Fletcher stated that was considered but it was sometimes hard to figure out pure breeds. Their main focus was to trying to get the animals out of the shelter. 4.Receive a report, hold a discussion, and give staff direction on averaging density within Residential Land Use parcels in Planned Development Districts. Brian Lockley, Director of Planning and Development, presented the information on the topic. The focus of his discussion was on what was a planned development, the planned development history in Denton, a brief history of PD-120, density, planned development density transfer, the Denton Development Code, and planned development compliance with the current Denton Development Code requirements and multi-family projects with density. He discussed the definition of a planned development plus the purpose and intent of a planned development. The history of planned developments in Denton was reviewed. City of Denton City Council Minutes June 4, 2013 Page3 Reasons for discontinuing the planned development included below par guidelines, disparity in guidelines, it did not have timelines for development, were no longer compatible with surround areas, infrastructure below par but vested, a higher standard was not necessarily achieved, seen as a means to circumvent conventional code requirements, were not consistent with the Denton Plan, and provided great administrative difficulty. Lockley reviewed the listing of the 15 approved planned developments that currently existed. In 2007 the master planned community district was adopted which took the place of the planned development. There were four master planned communities currently approved. History of PD-120 – Lockley reviewed the history of when it was approved, where it was located and the requirement of a concept plan and detail plan. PD-120 was approved with a gross density of 18 units per acre and a maximum number of multi-family units at 800. Density was not a requirement but could not go over that. Phase 1 had 8 residential multi-family structures with 192 total units constructed. Density in Phase 1 was a net 16.5 and gross 11.98. Phase 2 proposed 3 residential multi-family structures with 192 units. It had a net density of 32.6 gross of 30.97. Density was calculated as the number of dwelling units per acre and presented gross or net calculation. Lockley reviewed the definition of gross and net density. Net was the site less the right-of-way calculation divided by the number of dwelling units. Council Member Roden stated that the master planned community with density averaging came well after PD-120. Lockley stated that was correct. He reviewed the interpretation of the inclusion of the density sharing provision. The PD zoning became a zoning district. It was a major development with specific regulatory requirements Council Member Gregory questioned if PD-120stated that density averaging was allowed as part of the program. Lockley stated that it was silent on the issue. Council Member Gregory questioned that if it was silent, how did it mesh with the Development Code. Lockley stated that they were two different documents. The PD stated there was an average density that could not exceed a figure that was interpreted that the density of the total multi- family area would not exceed that density. Council Member Gregory stated that the only areas that were averaged were the ones in the multi-family area. Lockley stated that it was designated to that specific use. City of Denton City Council Minutes June 4, 2013 Page4 Council Member Roden stated that at one point it was noted that the PD was silent on density averaging; now it appeared that the PD indicated that averaging was allowed. Lockley stated that it did not specifically say averaging but what was approved had the ability to be averaged. Council Member Engelbrecht saw that ability with smaller movements. When PDs were considered there was not an establish threshold of how much could move. Council discussed the quality of a development if density averaging was used; concerns that there were not limits on the averaging; the concept of the density; amendments to the PD; the concept of averaging and what could be averaged. Other areas of discussion included provisions of the old PD-120 in terms of averaging; density transfer in older PDs; phasing of the projects in terms of density and the amount of green space in the PD. Following the completion of the Work Session, the Council convened in a Closed Meeting to discuss the following: 1. Closed Meeting: A. Consultation with Attorneys - Under Texas Government Code Section 551.071. 1. Consult with City's attorneys with regard to Item # 5A of the June 4, 2013 Regular Meeting Agenda, as it concerns legal issues associated with that item where a public discussion of this legal matter would conflict with the duty of the City's attorneys under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. (Masch Branch rezoning) 2. Consult with City's attorneys with regard to Item # 5B of the June 4, 2013 Regular Meeting Agenda, as it concerns legal issues associated with that item where a public discussion of this legal matter would conflict with the duty of the City's attorneys under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. (Gardens of Denton Phase 2) 3.Consult with and provide direction to City's attorneys regarding legal issues and strategies associated with the implementation of a freshwater well sampling program and air monitoring program in connection with the Gas Well Ordinance and Fee Ordinance relating to gas well drilling and production within the City Limits, including constitutional limitations, statutory limitations upon municipal regulatory authority and claims associated therewith, statutory preemption and/or impacts of federal and state law and regulations, and whether testing results are confidential, as it concerns a freshwater well sampling program and an air quality monitoring program. City of Denton City Council Minutes June 4, 2013 Page5 B. Deliberations regarding Real Property - Under Texas Government Code Section 551.072; Consultation with Attorneys - Under Texas Government Code Section 551.071. 1.Discuss, deliberate, and receive information from staff and provide staff with direction pertaining to the acquisition of real property interests located in the William Roark Survey, Abstract Number 1087, James L. Harris Survey, Abstract No. 555 and James Edmonson Survey, Abstract Number 400, Denton County, Texas (located generally in the 4500 block of South Bonnie Brae Street), in the City of Denton, Denton County, Texas. Consultation with the City's attorneys regarding legal issues associated with the acquisition or condemnation of the real property interests 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. (Bonnie Brae Widening and Improvements project) C. Deliberations regarding Personnel Matters - Under Texas Government Code Section 551.074. 1. Review and discuss the duties and goals for the City Manager, City Attorney, and Municipal Judge. This item was not considered. Regular Meeting of the City of Denton City Council at 6:30 p.m. in the Council Chambers at City Hall. 1. PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. Following the Pledge of Allegiance, Council Member Gregory took his oath of office as administered by the City Secretary. Council considered the election of a Mayor Pro Tem. Council Member Gregory nominated Pete Kamp as Mayor Pro Tem. Council Member Gregory motioned, Council Member Roden seconded to approve the nomination of Pete Kamp as Mayor Pro Tem. On roll call vote: Council Member Engelbrecht, Mayor Pro Tem Kamp, Council Member King, Council Member Hawkins, Council Member Gregory, Council Member Roden, Mayor Burroughs – “aye”. Motion carried unanimously. City of Denton City Council Minutes June 4, 2013 Page6 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards 1. Steven Davidson Day Mayor Burroughs presented the proclamation for Steven Davidson Day. 3. CITIZEN REPORTS There were no citizen reports. 4. CONSENT AGENDA Council Member King motioned, Mayor Pro Tem Kamp seconded to approve the Consent Agenda and accompanying ordinances and resolution with the substitute wording for Item M. On roll call vote: Council Member Engelbrecht, Mayor Pro Tem Kamp, Council Member King, Council Member Hawkins, Council Member Gregory, Council Member Roden, Mayor Burroughs – “aye”. Motion carried unanimously. Ordinance No. 2013-134 A. Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving a three (3) year contract for a comprehensive service plan for an Elan 9000 Inductively Coupled Plasma Mass Spectrometer (ICPMS) located at the City of Denton Municipal Laboratory, which is available from only one source and in accordance with Chapter 252.022 of the Texas Local Government Code such purchases are exempt from the requirements of competitive bidding; and providing an effective date (File 3062 awarded to PerkinElmer Health Sciences, Inc. in the annual estimated amount of $23,396 for a three (3) year not-to-exceed amount of $70,188). The Public Utilities Board recommends approval (5-0). Ordinance No. 2013-135 B. Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the purchase of traffic signal hardware including pedestrian push button systems, illuminated street name signs, and emergency vehicle preemption devices, for the City of Denton Traffic Department, which is available from only one source and in accordance with Chapter 252.022 of the Texas Local Government Code such purchases are exempt from the requirements of competitive bidding; and providing an effective date (File 5263 awarded to Consolidated Traffic Controls, Inc. in the annual estimated amount of $200,000 for a three (3) year not to exceed amount of $600,000). City of Denton City Council Minutes June 4, 2013 Page7 Ordinance No. 2013-136 C. Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the purchase of traffic signal hardware including traffic signal controllers, video detection systems, battery backup systems, and network switches, for the City of Denton Traffic Department, which is available from only one source and in accordance with Chapter 252.022 of the Texas Local Government Code such purchases are exempt from the requirements of competitive bidding; and providing an effective date (File 5264 awarded to Paradigm Traffic Systems in the annual estimated amount of $260,000 for a three (3) year not to exceed amount of $780,000). Ordinance No. 2013-137 D. Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the purchase of traffic signal radar vehicle/pedestrian detection systems, for the City of Denton Traffic Department, which is available from only one source and in accordance with Chapter 252.022 of the Texas Local Government Code such purchases are exempt from the requirements of competitive bidding; and providing an effective date (File 5265 awarded to Twincrest Technologies in the annual estimated amount of $400,000 for a three (3) year not to exceed amount of $1,200,000). Ordinance No. 2013-138 E. Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the purchase of traffic signal head, light-emitting-diodode (LED) indications and pedestrian LED indications, for the City of Denton Traffic Department, which is available from only one source and in accordance with Chapter 252.022 of the Texas Local Government Code such purchases are exempt from the requirements of competitive bidding; and providing an effective date (File 5266 awarded to Dynamic Vision in the annual estimated amount of $125,000 for a three (3) year not to exceed amount of $375,000). Ordinance No. 2013-139 F. Consider adoption of an ordinance awarding a contract for the purchase of security products and related services for the City of Denton Networked Video Surveillance Camera System as awarded by the State of Texas Department of Information Resources (DIR) through the Go DIRect Program, Contract Number DIR-SDD-1722; providing for the expenditure of funds therefor and providing an effective date (File 5233 awarded to STS 360, LLC in a not to exceed amount of $332,756). Ordinance No. 2013-140 G. Consider adoption of an ordinance accepting competitive proposals and awarding a contract for the purchase of thirteen (13) vehicles for the City of Denton Parks, Building Inspections and Police Departments; providing for the expenditure of funds therefor; and providing an effective date (RFP 5183-awarded to James Wood Auto Park in the amount of $361,478.17). City of Denton City Council Minutes June 4, 2013 Page8 Ordinance No. 2013-141 H. Consider adoption of an ordinance of the City of Denton, Texas authorizing the expenditure of funds for payments by the City of Denton for Electrical Energy Transmission Fees to Lone Star Transmission; and providing an effective date (File 5260-Electrical Energy Transmission Fees for Fiscal Year 2012-2013 to Lone Star Transmission in the amount of $158,605.44). The Public Utilities Board recommends approval (6-0). Ordinance No. 2013-142 I. Consider adoption of an ordinance authorizing the City Manager to execute an amendment to the contract between the City of Denton and Redflex Traffic Systems USA for operation of an Automated Traffic Signal Enforcement Program; providing for the expenditure of funds therefor; and providing an effective date. Resolution No. R2013-014 J. Consider approval of a resolution of the City of Denton, Texas, approving and adopting Rate Schedule "RRM - Rate Review Mechanism" for Atmos Energy Corporation, Mid-Tex Division, to be in force in the City for a period of time as specified in the Rate Schedule; adopting a savings clause; determining that this resolution was passed in accordance with the requirements of the Texas Open Meetings Act; making other findings and provisions related to the subject; requiring delivery of this resolution to the company; and providing an effective date. Ordinance No. 2013-143 K. Consider adoption of an ordinance approving a Lease Agreement to be executed by the City Manager, by and between the City of Denton, Texas and Master Recycling of Texas, Inc., a Corporation, for a certain 3.5 acre tract of land situated in the Gideon Walker Survey, Abstract Number 1330, in the City of Denton, Denton County, Texas, commonly known as 1301 South Mayhill Road; and providing an effective date. Ordinance No. 2013-144 L. Consider adoption of an ordinance authorizing the City Manager to execute an Interlocal Cooperative Purchasing Program Agreement with the County of Dallas, Texas under Section 271.102 of the Local Government Code, to authorize City of Denton contracts for the purchase of various goods and services; authorizing the expenditure of funds therefor; and declaring an effective date (File 5279- Interlocal Agreement with the County of Dallas). Ordinance No. 2013-1454 M. Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager, or his designee, to execute a Purchase Agreement (herein so called), as attached hereto and made a part hereof as Exhibit "A", by and between Richard A. Gray, Jr., as Owner (herein so called), and the City of Denton, Texas, as Buyer, regarding the sale and purchase of fee simple to a 26.41 acre tract, more or less, situated in the William Roark Survey, Abstract No. 1087, James L. Harris City of Denton City Council Minutes June 4, 2013 Page9 Survey, Abstract No. 555 and the James Edmonson Survey, Abstract No. 400, located in the City of Denton, Denton County, Texas, as more particularly described in the Purchase Agreement, located generally in the 4500 block of South Bonnie Brae Street (the "Property Interests"), for the purchase price of Six Hundred and Fifty Thousand Dollars and No Cents ($650,000.00), and other consideration, as prescribed in the Purchase Agreement; 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 Purchase Agreement; authorizing the expenditure of funds therefor; and providing an effective date. (Bonnie Brae Widening and Improvements project - Parcel 39) 5. ITEMS FOR INDIVIDUAL CONSIDERATION Ordinance No. 2013-146 A. Consider adoption of an ordinance of the City of Denton, Texas, providing for a zoning change from a Rural Residential (RD-5) zoning district classification and use designation to an Employment Center Industrial (EC-I) zoning district classification and use designation for approximately 27.76 acres of land, generally located north of University Drive and west of Masch Branch Road, legally described as Lot 2, Block 1 of the Marriott Gardens Addition, in the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof; and providing a severability clause and an effective date. The Planning and Zoning Commission recommends approval (7-0). (Z12-0014, Masch Branch rezoning) The City Council postponed this item to the June 4, 2013 Council meeting (4-2). Brian Lockley, Director of Planning and Development, presented the details of the proposal. The request was for a zoning change from Rural Residential – 5 to Employment Center Industrial. The purpose was to bring the existing uses into conformance with the Denton Development Code. The location map, future land use designation, current zoning, proposed zoning and the development chronology was presented. Lockley displayed the pre-2001 development versus the existing development. He reviewed the permit/review and inspection procedures and the infrastructure improvements. The Planning and Zoning Commission and the Development Review Committee recommended approval. Mayor Burroughs noted that a speaker card had been submitted. Don Fraizer spoke in favor. He stated that they would continue with inspections with the non- conforming language in the Development Code. Twenty six certificates of occupancy had been granted since the development of the property. The property was in compliance with safety issues with continued inspections. Nowhere in the agreement did it indicate that zoning was not allowed. It just stated the property would be annexed. He noted that there was similar property on Corbin Road. That property was annexed in 2010 as part of an annexation process. In 2011 the property was zoned with no issues. It was the same type of property, the same type of businesses, and the same type of tenants. They were asking for similar consideration. City of Denton City Council Minutes June 4, 2013 Page10 Council Member Roden motioned, Council Member King seconded to adopt the ordinance. On roll call vote: Council Member Engelbrecht, Mayor Pro Tem Kamp, Council Member King, Council Member Hawkins, Council Member Roden, Mayor Burroughs – “aye”. Motion carried. Ordinance No. 2013-147 B. Consider adoption of an ordinance of the City of Denton, Texas, providing for approval of a detailed plan for 6.199 acres located within Planned Development 120 (PD-120) zoning district; generally located on the south side of Loop 288, west of the intersection of F.M. 2164/Locust Street and Loop 288, in the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof; providing a severability clause and an effective date. The Planning and Zoning Commission recommends approval (5- 1). (PDA12-0006, Gardens of Denton Phase 2) The City Council postponed this item to the June 4, 2013 Council meeting (7-0). Brian Lockley, Director of Planning and Development, presented the details of the proposal. The applicant was proposing to construct Phase II of the Gardens of Denton apartment development that would consist of 192 multi-family residential units. The proposed development was located within PD- 120. Concerns regarding proposed density, averaging of density across the entire area design of the site and tree preservation had been expressed. Lockley displayed the location map, zoning map, and proposed detailed plan. He stated that the combined density of 17.13 dwelling units per acre was less than what was approved by the PD of 18 units per acre. Ordinance 98-324 allowed for a maximum of 800 units for both areas. The concept plan for the adjacent property to the east was displayed. Since the last meeting, the applicant had added carports to the proposal. Lockley reviewed proposed building elevations and noted that the adjoining property owner was in favor of the proposal. The Planning and Zoning Commission recommended approval as did the Development Review Committee. One Planning and Zoning Commission member had voted against the proposal. The reasons for his denial were the proposed density, the quality of the development, and a feeling that the courtyard plan would be conducive to criminal activity. The applicant had indicated that he was increasing the quality of the proposal to be comparable to Phase 1 with similar masonry exterior and covered parking stalls similar to Phase 1. The criminal element was something that staff considered in the review of development proposals based on the principles of Crime Prevention through Environmental Design. Natural surveillance was the overall goal for this type of crime prevention. The layout of the plan contained interior access to the units with defined entryways. Mayor Burroughs stated that the detailed plan showed a maximum of three stories and noticed that the site photos showed the multi-family to the south as three stories. Lockley replied that was correct. Mayor Burroughs stated that in photos of similar concepts in Frisco the building was four stories but that would not be the case for this proposal. Lockley stated that was correct. City of Denton City Council Minutes June 4, 2013 Page11 Council Member Roden asked if the retail portion was the same ownership as the applicant and if there had been any applications for retail development. Lockley replied that the property was under the same ownership and that there had not been any applications for retail development. Council Member Roden asked if there was any ordering required for which phase was developed first. Lockley stated that was up to the developer. Council Member Gregory asked if there was anything in PD-120 that would prohibit density averaging. Lockley stated there was no mention in the PD. Council Member Gregory asked if the Development Review Committee would have approved Phase 2 if it had been developed first as proposed. Lockley replied that the amount of density would have exceeded the allowed maximum. Council Member Gregory asked if staff was now more comfortable with the proposal. Lockley stated that because Phase 1 had a lower density, the developer was trying to make up density due to the physical characteristics of Phase 1. Mayor Pro Tem Kamp asked what had been added to the proposal since the Planning and Zoning Commission meeting. Lockley stated that the covered parking was added after the meeting. The landscaping plan staff received showed better landscaping and the entrances were also in. Mayor Burroughs indicated that Speaker Cards had been submitted for this item. Wayne Lewis, developer, spoke in support. He indicated that in terms of the security aspect, there were three security officers residing in Phase 1 and Phase 2 would have the same. The demographics of the proposal was for the young family. Commercial would be included in the overall development with two grocery stores indicating they might want to relocate to the proposal. Residents would be able to walk to shopping. Kori Haug spoke in favor. He was the project landscape architect and would answer any of Council’s questions. Council Member Engelbrecht questioned if there was landscaping between the building and the parking spaces as it appeared that the parking spaced abutted the buildings. Haug indicated that the entire building was densely planted. City of Denton City Council Minutes June 4, 2013 Page12 Grace Jones, architect for the project, spoke in favor. Josh Jezek, project engineer, spoke in favor. Council Member Roden asked at what point were they confident that the concept of density averaging was getting the green light to do this. Jezek stated that they had coordinated early on with the City before they began any design which was about a year ago. Brian Bentley spoke in opposition. Mayor Burroughs asked how long a detailed plan was good for once it was approved. Lockley stated that once it was approved it was in effect unless amended. It would become part of the zoning. Council Member Gregory asked if the density averaging on this proposal was between Phase 1 and Phase 2 or another set of land. Lockley stated that it was between Phase 1 and Phase 2 but this not the only property that was part of the multi-family section. There was additional property to the west. Council Member Gregory asked about that density limitation. Lockley stated that it was up to 16 units per acre. Council Member King stated that the neighboring property was not opposed to the proposal and was not opposed to using part of this density. Some people felt that large residential before the retail might be confusing. However, Unicorn Lake needed the residential before the commercial to keep the commercial going. Council Member Hawkins asked about the density of the Fry Street project and the number of stories. Lockley stated that it was 44 units per acre and the residential was three stories. Council Member Engelbrecht stated that the professional planner indicated that one of the goals of the planned development was to offer better quality. He questioned how this proposal went above and beyond with the location and landscaping. Lockley stated that the property was limited in size of what could be developed. Multi-family was better development for the site. The exterior materials, landscaping and amount of landscaping added to the quality of the development. Another factor was how the property was accessed with the adjacent property. It also provided another housing type attractive to another segment of the community. As retail came in, it would need the residential to keep retail in business. Some of the issues from the Planning and Zoning Commission could be mitigated City of Denton City Council Minutes June 4, 2013 Page13 through design. Considering all of the factors, it was felt that the proposal met the needs of the developer and the community. Council Member Engelbrecht asked if there was only one entrance into the facility and if so, were there plans to have another. Lockley stated that currently there was only one access off Bill Street. There was only one entrance into the second phase. Jezek stated that up to 200 units only needed one access point. If there was more than 200 units, two point of access were needed. Council Member Roden agreed that place was an issue. This was a planned development that approved multi-family in that area back in 1986. Multi-family was not part of the discussion. The question was the density and who would be harmed by that increase in density. He questioned the high crime in these types of developments and the factual basis. Lockley stated that the research very old and dated. The concentration and layout of older buildings contributed to the crime ratio. Today crime prevention was looked at in terms of the actual layout and how to mitigate any potential problems. Mayor Burroughs stated that in the past planned developments were the primary method the City had prior to the current codes and the Denton Plan to accomplish objectives starting to form for sustainable growth and creativity to growth. Other zoning classifications did not provide flexibility of uses, transitions of property uses or buffering. Planned development quality was not having to get in a car to have services. The desire was to have a transition from single-family lesser density to multi-family higher density next to major thoroughfares. That helped with noise abatement having commercial nearby and keeping cars off the road. Council Member Roden motioned, Mayor Pro Tem Kamp seconded to approve the proposal. Council Member Engelbrecht stated that he was against the motion as he did not believe in that location it was quality development. On roll call vote: Mayor Pro Tem Kamp, Council Member King, Council Member Hawkins, Council Member Gregory, Council Member Roden, and Mayor Burroughs – “aye”; Council Member Engelbrecht “nay”. Motion carried with a 6-1 vote. 6. PUBLIC HEARINGS Ordinance No. 2013-148 A. Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for a zoning change from Regional Center Residential 1 (RCR-1) zoning district and use classification to a Regional Center Commercial Downtown (RRC-D) zoning district and use classification on approximately 10.56 acres. The subject property is generally located east of I-35 and north of Shady Shores within the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations City of Denton City Council Minutes June 4, 2013 Page14 thereof, severability and an effective date. (Z13-0002, Classic Used Cars) The Planning and Zoning Commission recommends approval (7-0). Brian Lockley, Director of Planning and Development, presented the details of the proposal in terms of location, zoning map, proposed zoning, and existing future land use map. The proposal was to provide convenience and comparative shopping for goods and services to an individual neighborhood. The Planning and Zoning Commission and the Development Review Committee recommended approval. The Mayor opened the public hearing. Ron Ham, representing the owner, spoke in favor. The Mayor closed the public hearing. Mayor Pro Tem Kamp motioned, Council Member King seconded to adopt the ordinance. On roll call vote: Council Member Engelbrecht, Mayor Pro Tem Kamp, Council Member King, Council Member Hawkins, Council Member Gregory, Council Member Roden, Mayor Burroughs – “aye”. Motion carried unanimously. 7. CITIZEN REPORTS A. Review of procedures for addressing the City Council. B. Receive citizen reports from the following: 1) Robert Donnelly regarding Mayhill Road. Mr. Donnelly was not present at the meeting. 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 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 City of Denton City Council Minutes June 4, 2013 Page15 people in the municipality that has arisen after the posting of the agenda. Council Member Roden referenced the Subway sign on the Texas Building on the Square and requested an update on sign provisions in the Downtown area. th Council Member Engelbrecht mentioned the pedestrian bridge dedication on June 14. Council Member Engelbrecht asked for a periodic report on the impact of placement of the red light cameras and the reduction of accidents associated with the cameras. B.Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no continuation of the Closed Session. With no further business, the meeting was adjourned at 8:10 p.m. _____________________________ MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS _____________________________ JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES June 11, 2013 nd After determining that a quorum was present, the City Council convened in a 2 Tuesday Session on Tuesday, June 11, 2013 at 4:00 p.m. in the City Council Work Session Room at City Hall. PRESENT: Mayor Burroughs, Mayor Pro Tem Kamp, Council Member Engelbrecht, Council Member Gregory, Council Member Hawkins, Council Member King, and Council Member Roden. ABSENT: None. 1. Receive an update, hold a discussion and provide direction on the development of a Public-Private partnership for a public access natural gas fuel station and the addition of natural gas as an alternative transportation fuel for a portion of the Solid Waste and Recycling Services collection fleet. Vance Kemler, Director of Solid Waste and Recycling Services, stated that the City Council established a policy in 2005 to promote clean fleet initiatives. Kemler stated that policy also corresponded to the City’s Strategic Plan regarding sustainable economic development and environmental stewardship for improved local and regional air quality and the management of natural resources. Kemler stated that the Solid Waste and Recycling Services Department wanted to promote environmental sustainability by improving local and regional air quality through the addition of CNG as a vehicle fuel, which produced 30% less pollutants. The department also wanted to improve its operations sustainability by using local natural gas as a vehicle fuel thereby reducing the purchase of diesel fuel of which 45% was produced from foreign crude oil. They also wanted to reduce operating expenses by using the lower cost CNG fuel. He stated that the department’s proposed transition to utilize CNG as an alternative vehicle fuel would consist of modifications to the Fleet Services building to meet the code requirements for servicing CNG vehicles and would also include the installation of a small skid-mounted CNG fuel station at the Solid Waste Services facility. It would also include extending the existing 6” natural gas line south to the Solid Waste Services buildings and truck parking lot. Staff would solicit proposals to seek a service provider to construct a public access CNG and/or LNG fueling station in the vicinity of the Spencer Road and Mayhill Road intersection. Kemler stated that the estimated project costs for the Fleet Services Building modifications was $150,000 and the estimated cost for the small skid-mounted CNG fuel station was $582,000. The anticipated payback period for these was six years. The estimated project cost for the public access CNG and/or LNG station was up to $4.2 million with an anticipated payback period of 5- 7 years. Kemler stated that the annual Solid Waste diesel usage was estimated at 425,000 gallons per year with a projected cost based on $3.80 per gallon which was about $1,615,000. He stated that the annual fuel cost savings utilizing CNG for 24 trucks in FY 2015 was estimated at $379,176 and for 28 trucks in FY 2018 was estimated at $758,352. He stated that CNG fuel cost savings was based on a CNG price of $1.21 per gallon. Kemler stated that a fuel price comparison would be City of Denton City Council Minutes June 11, 2013 Page 2 $3.80 per gallon for diesel versus $1.21 per diesel gallon equivalent for CNG which resulted in a difference of $2.59 per diesel gallon equivalent. Kemler stated in anticipation of transitioning to CNG, the Solid Waste and Recycling Department had applied for two State of Texas grants associated with natural gas fueling. The City had received notification that it had been awarded the $400,000 Clean Transportation Triangle grant from TCEQ for the construction of a CNG and LNG fueling station. The proposed fueling station site was adjacent to the City’s alternative fuels station at the intersection of Mayhill Road and Spencer Road. One of the requirements of the grant was that it be a public access station. Solid Waste staff had received verbal interest from several private companies that were interested in constructing and operating a CNG/LNG fueling facility at the proposed site. The time period for completion of this project was May 2015. The second grant the City had been awarded was the Alternative Fuel and Advanced Technology reimbursement grant from NCTCOG in the amount of $200,000. This grant funding was for the purchase and installation of the first skid mounted CNG fueling station. The grant timeline for completion of this project was December 31, 2013. Kemler stated that the Solid Waste Fund would have an increased vehicle cost for CNG at $40,000 per truck. He stated that the CNG truck investment payback period was 2.9 to 3.2 years and the collection truck replacement cycle was 7 years. Grants would reduce the increased budget impact. He stated that staff would submit applications for truck reimbursements as funds became available from TCEQ, NCTCOG and the EPA. Kemler stated that staff recommended Option 1 and 2. He stated that under Option 1, staff would purchase the first group of Solid Waste Fund CNG vehicles and work with the Purchasing Department to solicit proposals for the initial mobile, skid-based slow fill CNG fueling equipment. He stated that under Option 2, if the City Council supported the development of natural gas fueling for the community and local fleets in the area, staff would work with the Purchasing Department to solicit proposals for the CNG/LNG public access fueling facility through the RFP process. He stated that staff would not necessarily implement Option 2 until they got the proposals back because there seemed to be a wide variety of options. He stated before they moved forward with the public access facility, staff would give the Council an analysis on the proposals and get direction from the Council. Mayor Pro Tem Kamp asked about the emissions and if this would have a positive impact on the air quality. Kemler stated yes, there would be substantially lower emissions. He stated that he could get the Council more information on the comparison between diesel and natural gas in an informal staff report. Mayor Burroughs suggested that as we acquired CNG trucks, we should show on the sides of the truck that Denton was saving so many tons per year of ozone articulate matter and other pollutants by using CNG trucks. There would be multiple impacts by doing this and it would keep it consciously in the minds of the general public. It would also show where the City’s investment was. General Consensus of the Council was to move forward with Options 1 and 2. City of Denton City Council Minutes June 11, 2013 Page 3 2. Receive a report, hold a discussion, and provide staff with direction regarding the pursuit of a prepaid utilities strategy. Ethan Cox, Customer Service Manager, stated that as DME continued to deploy an advanced metering system in the City, staff had begun investigating a prepaid utility strategy. He stated that a prepaid utility strategy was a “Pay as You Go” system. For a utilities customer this meant they would pay to establish service. As they used utilities, their usage was deducted each day. The customer was responsible for monitoring their usage and their balance. As they see that balance getting a little low, they could then remit another payment to recharge the account. Cox stated that he would outline the differences between postpaid, which was typically doing business on credit which was how we did business today as a utility system, and the prepaid experience for both us and our customers. Cox reviewed the experience for a customer entering our utility system. Currently a customer that was going to do business with the City for the first time, or that might be transferring service from one address to another, or that might be returning to our utility system after an absence of a few years had to apply for service. They could call, come into the lobby, or submit an application online. Essentially what the application process entailed was that we would screen for identity theft because we were issuing credit and we wanted to identify that we were issuing credit to the appropriate party. We would also look at past payment behavior. If they had been in the utility system before, had an unpaid debt, we would address that. We would also look at credit worthiness. On the last two items, depending on what we found that would determine what needed to be paid to activate service. Cox gave an example of a returning customer that had left an unpaid balance. They were required to pay a deposit when they requested service and selected a deferred payment plan that worked for them to pay the old balance. The customer had service turned on and received a bill in 30 days. The customer forgot to pay the bill, late fees piled up and service was disconnected. Cox reviewed the same experience but with the prepaid solution. The customer would still have to apply for service. The difference was that the customer had an option now – they could do business on credit or a cash basis business, which was what prepaid was. With postpaid the customer did not have a lot of options. With prepaid the customer was only required to pay an initial prepayment. Customer Service would not require a deposit for this customer. A portion of each payment would be allocated to the debt and the rest would go towards future utility service. With the advanced metering system that was being deployed, the electric department was able to get meter reads on a daily basis. We were no longer waiting 30 days to see what happened. Customers could see what they were doing near real time and so that allowed them to adjust their behavior. The daily meter read was really critical to providing a prepaid solution. Customers could monitor their own usage. They were in control of their account. They did not have a bill. They did not have due dates. They did not have a utility telling them how much they should pay. The customer decided how much they were going to use and put down that amount of money and adjusted accordingly based on their usage. They could pay on their own schedule. City of Denton City Council Minutes June 11, 2013 Page 4 Cox stated that the prepaid system talked to two different systems to get the data that was needed to present to the customer. The first system was the billing system which contained the consumer information as well as the meter information. The other system was the advanced metering system. The challenge for the City was that we did not have one utility. For a lot of customers, we were billing for five services – electric, water, wastewater, drainage and solid waste. The only one that used the AMI system was electric. The City had non-metered and non-AMI services. For solid waste, wastewater and drainage usage, most of the cost for the consumer was fairly predictable and could be prorated over a 30- day period and charged daily. Water meters were manually read so monthly meter reads would still be completed. Staff could look at estimating usage based on prior readings and prorate and charge on a daily basis. If the amount was less than the estimate, that amount could be trued up on the next month with a new estimate. Benefits of the prepaid utility system included reduced electric consumption by 10-12%. Customers were more aware of how much electric they were using so they tended to use less. It improved cash flow for the City as well as debt recovery. There were reduced mailing and collection costs and fewer adversarial interactions. Benefits for the customer included no monthly bills, flexible payment schedule, no deposits, no late fees, and more control of their usage and account. For Customer Service, their customer base had a 2% annual growth rate over the last five years. Every month, Customer Service talked to 47% of the customer base. Requests for payments, balance inquiries, fees/deposits, payment arrangements and reconnecting service were responsible for 53% of time. Cox stated that in terms of cost and cost recovery, staff wanted a vendor that would host the information so that the City only had to purchase software that would integrate with the City’s current system. Many of the models that were being looked at charged by the customer that used the system. On average it cost about $84 annually per prepaid customer. Only 7-10% of the customer base on the residential side would be charged. This was not something all rate payers should pay for. Staff suggested that the City recover some of those costs through a facility fee of $7 per month. Cox stated that if the Council supported the prepaid strategy, staff would issue a Request for Proposal and provide the Council with a vendor recommendation for consideration and then a pilot program would be launched. Council Member Hawkins asked if the payment kiosks would be bilingual. Cox stated yes. Mayor Pro Tem Kamp asked about the main concerns of the Public Utilities Board. Cox stated that they wanted to make sure that the payment options were the same for postpaid customers and prepaid customers. City of Denton City Council Minutes June 11, 2013 Page 5 Council Member Roden asked how many customers had the smart meters. Phil Williams, General Manager, stated that out of approximately 48,000 customers about 28,000 of them had smart meters. General consensus of Council was for staff to proceed with the prepaid utilities strategy. 3. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. Council did not have items for future agendas. Following the completion of the Work Session, the Council convened into Closed Session to discuss the following: 1. Closed Session A. Certain Public Power Utilities: Competitive Matters – Under Texas Government Code Section 551.086. 1.Receive a presentation from Denton Municipal Electric (“DME”) staff regarding public power competitive matters concerning power supply alternatives, purchase power agreement opportunities, future energy sources, renewable energy resources, and alternatives for generation resources, in order to supply the future energy needs of Denton Municipal Electric. Discuss, deliberate and provide staff with direction. B.Deliberations regarding Personnel Matters – Under Texas Government Code Section 551.074. 1.Review and discuss the duties and goals for the City Manager, City Attorney, and Municipal Judge. City of Denton City Council Minutes June 11, 2013 Page 6 Following the completion of the Closed Meeting, the Council convened in open session at 7:30 p.m. and adjourned. ____________________________________ MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS ____________________________________ JANE RICHARDSON ASST. CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES June 18, 2013 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, June 18, 2013 at 3:00 p.m. in the Council Work Session Room at City Hall. PRESENT: Council Member Engelbrecht, Mayor Pro Tem Kamp, Council Member King, Council Member Gregory, Council Member Hawkins, Council Member Roden, Mayor Burroughs ABSENT: None 1. Citizen Comments on Consent Agenda Items There were no citizen comments on Consent Agenda items. 2. Requests for clarification of agenda items listed on the agenda for June 18, 2013. Council Member Gregory requested that Item L on the Consent Agenda be pulled for separate consideration. Mayor Burroughs requested that Item F on the Consent Agenda be pulled for separate consideration. 3.Receive a report, hold a discussion, and give staff direction regarding the acceptance of competitive proposals and awarding a public works contract for the construction of the Linda McNatt Animal Care and Adoption Center. Scott Fetcher, Captain Denton Police Department, stated that there were 11 total respondents which were ranked by the selection committee. The committee reviewed the submitted proposals and scored each using determined selection criteria. The top two firms moved to the interview phase. Prior to the interviews, each respondent was provided a list of questions from the committee to prepare in advance. Ranking factors included price score, project schedule, LEED experience, and indicators of performance. Following the selection committee’s ranking of Schmoldt Construction as the best value respondent, the City requested a Best and Final Offer for the project. The best and final offer reduced the price to $4.2 million. Schmoldt has also offered an additional one percent discount for payment of invoices paid within 20 days. Fiscal impact – the original estimate for the project was $5 million with the actual bid price coming in at $4.28 million. With prompt payment the cost will be reduced to $4.23 million resulting in savings of approximately $768,908 - $811,709. Funding – The Denton Animal Shelter Foundation gave a check to the City for $1,271,200 resulting from their capital campaign. The Foundation also had $218,830 in future draws on pledges plus additional funding for furniture/fixtures/equipment and the vet clinic. City funds for the construction were at $2,790,042 including future pledge draws. The overall project cost including land, design, master plan and construction was at $6,958,573 plus $185,000 for furniture/fixtures and equipment. City of Denton City Council Minutes June 18, 2013 Page 2 Project Schedule – Schmoldt was anticipating a start date of July 1, 2013 and a completion date of April 15, 2014 with approximately 285 construction days. 4.Receive a report, hold a discussion and give staff direction regarding City Council committee nominations. City Secretary Walters reviewed the current council committee assignments and asked if Council would like to make any changes. The following changes were suggested: Airport Committee – Council Member Hawkins to replace former Council Member Watts Audit/Finance – Council Member Hawkins to replace former Council Member Watts Mobility Committee – Council Member Roden to replace Mayor Burroughs Committee on the Environment – Council Member Engelbrecht to replace Council Member Roden Hotel Occupancy Tax – Council Member Hawkins to replace former Council Member Watts Property Maintenance Code Committee – Council Member Roden to replace former Council Member Watts City Secretary Walters indicated that these changes would be made and would be ready for Council consideration during the regular meeting. 5.Receive a report, hold a discussion, and give staff direction regarding the preliminary FY 2013-14 Proposed Budget, Capital Improvement Program, and Five Year Financial Forecast. Chuck Springer, Director of Finance, presented the details of the item. He stated that the budgetary themes included street maintenance expansion, utility infrastructure, maintain competitive compensation, manage TMPA debt requirements in Electric Utility, and very limited funding to address General Fund growth needs. Assumptions for General Fund Projections included (1) assessed value increases for 2013-14 would be 3% and 4% in 2014-15, (2) property tax rate would have a one cent tax rate increase in 2014-15 with the debt service tax rate remaining the same, (3) sales tax in 2013-14 was 4.2% above the 2012-13 budget and in 2014-15 and beyond were projected at 3-5%, (4) franchise fees had all growth in revenues transferred to the Street Improvement fund. Compensation and benefits assumptions – 2013-14 had a 3% merit increase, equity adjustments and STEP increases for Civil Service. Future fiscal years also had a 3% package. Health insurance assumed a 6% increase in city contributions while the employee contribution rates had yet to be determined. TMRS had a fully funded rate that would decrease by 0.45% in calendar year 2014. City of Denton City Council Minutes June 18, 2013 Page 3 Springer reviewed the preliminary General Fund projection. The five year projection included revenues, a one cent tax increase, expenditures, and new expenses. Changes in the fund balance were also reviewed. Supplemental packages - General Fund - General Fund departments had requested supplemental packages totaling approximately $7.0 million. Staff was still in the process of refining estimates for supplemental packages; however, there was a limited capacity for supplemental packages. The General Fund sales tax per capita for various surrounding cities and the assessed values per capita were reviewed. Council Member Roden stated that to catch up to the budgeted amount for next fiscal year $2.9 million per month in revenue would be needed in the next five months. He questioned Springer how confident he was that the City would meet those projections. Springer stated that currently the City was up about one percent from last year but needed to be up 2% to keep on track. Council priorities and requests included Downtown shuttle service, supplemental bicycle lane funding, Downtown reinvestment grant program, community market enhancements, restore council contingency funds, funding of Human Services Advisory Committee requests, update to the 2003 TIP Strategies Economic Development Plan, creative Economy Impact study, dedicated administrative position for Mayor and Council, Master Plan for Public Art, Firefighter Museum additional funding, collaborative co-working space partnership, Economic Development events and programming, development of a Downtown Innovation District, city-owned high speed internet utility Downtown, Code for America City Program, 311 system, street repair update web application and neighborhood district initiative. Street Improvement Fund – included an estimated $11.4 million OCI related spending in 2017- 18 including bond funding. At this level of funding in 2017-18, the OCI rating would stabilize. An additional $20 million in bond funding after 2016-17 to maintain stabilization would be required. Increased street maintenance funding – an increased level of funding was required to get back to the 2009 OCI rating and maintain it going forward. To return the OCI rating to the 2009 level by the end of ten years approximately $740,000 per year in additional operational funding was needed which would basically double the current operating funding increase that was projected. It also required an additional $20 million in bond funding after 2016-17. The operating funding increase equated to a five-cent rate increase by FY 2017-18 and an eight-cent tax rate increase for the complete program. Increased Street Maintenance Funding Options – included additional funding transferred from the General Fund, reduce current programs and shift resources, defer non-street maintenance capital program and use debt service savings, dedicated property tax rate increase, dedicated street maintenance fee, adoption of street impact fees to reduce debt service tax rate and rate for street maintenance purposed and additional bond sale beginning in 2014-15. Electric Utility Fund issues included (1) TMPA debt payoff, (2) replacement of aging infrastructure, (3) construction of transmission system with increased revenue to DME, (4) five- City of Denton City Council Minutes June 18, 2013 Page 4 year CIP of $353.8 million, (5) base rate increase of 2.5% for FY 2013-2014 and each year thereafter for 4 years until the TMPA debt was fully absorbed. Water Utility Fund issues included (1) a focus on infrastructure replacement and needed expansion of the system, (2) continue to increase revenue funded infrastructure replacement to cover transmission and distribution replacement at 100% and plant at 25%, (3) five year CIP of $98.6 million with $44.5 revenue funded, and (4) rate increase of 4% for 2013-14. Wastewater Utility Fund issues included (1) focus on infrastructure in terms of replacement, expansion and sanitary sewer overflow program,(2) continuing program to build to planned level of revenue funded replacement, (3) five year CIP of $82.6 million excluding general capital program drainage projects, and (4) a rate increase of 9% for 2013-2014. Solid Waste and Recycling fund issues included (1) major projects included property permit/expansion, compressed natural gas fueling facility, grease and grit trap processing and building finish out and (2) a rate increase of 3% for standard cart with recycling and 5.3% for large cart with recycling. Tourist and Convention Fund issues include (1) revenues above budget in current year, (2) HOT Committee to provide budget recommendations for 2013-14, and (3) emphasis on maintaining available balances for future Convention Center and CVB project costs. Debt Service Fund and General Capital program issues included (1) debt service tax rate estimated to remain stable, (2) debt service expenditures already set by debt sales in current fiscal year, and (3) recommended capital program for 2013-14 would be presented with proposed budget. The total General Government debt per capita in 2012 was reviewed along with the next steps in the budget process. Council Member Gregory suggested adding information concerning whether there was sufficient green space in the Downtown area due to the increased development in the area. He also asked about where Quakertown Park was in the Parks Master Plan. Council Member Roden requested a work session on economic development strategies. Following the completion of the Work Session, the Council convened in a Closed Session to consider the following: 1. Closed Meeting: A. Deliberations regarding Real Property - Under Texas Government Code Section 551.072; Consultation with Attorneys - Under Texas Government Code Section 551.071. 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 M. Yoachum Survey, Abstract No. 1442, City of City of Denton City Council Minutes June 18, 2013 Page 5 Denton, Denton County, Texas (located generally along the 200 block of Mockingbird Lane). Consultation with the City's attorneys regarding legal issues associated with the potential acquisition of the real property described 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 the 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 proceeding or potential litigation. Regular Meeting of the City of Denton City Council at 6:30 p.m. in the Council Chambers at City Hall, 215 E. McKinney. 1. PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards There were no proclamations/awards for this meeting. 3. CITIZEN REPORTS There were no citizen reports. 4. CONSENT AGENDA Mayor Burroughs noted that Items F and L would be pulled for separate consideration. Mayor Pro Tem Kamp motioned, Council Member Engelbrecht seconded to approve the Consent Agenda and accompanying ordinances and resolutions with the exception of Item F and L. On roll call vote: Council Member Engelbrecht, Mayor Pro Tem Kamp, Council Member King, Council Member Gregory, Council Member Roden, Mayor Burroughs, Council Member Hawkins - “aye”. Motion carried unanimously. Approved the minutes listed below. A. Consider approval of the minutes of: May 6, 2013 May 7, 2013 May 14, 2013 May 21, 2013 Ordinance No. 2013-149 B. Consider adoption of an ordinance authorizing the City Manager, or his designee, to execute on behalf of the City of Denton a First Amendment to an Airport Lease Agreement as approved by Ordinance 2012-236 on September 18, 2012 between City of Denton City Council Minutes June 18, 2013 Page 6 the City of Denton, Texas and HTA Aviation for the property located at 4910 Lockheed, Denton Enterprise Airport; and, providing an effective date. Ordinance No, 2013-150 C. Consider adoption of an ordinance authorizing the City Manager, or his designee, to execute on behalf of the City of Denton a Three-Way Agreement between the City of Denton, Atmos Energy Corporation and DCG Construction, LLC for the installation of a natural gas distribution line at Denton Enterprise Airport, said gas line to be owned, operated and maintained by Atmos Energy Corporation; and providing an effective date. Ordinance No. 2013-151 D. Consider adoption of an ordinance of the City of Denton authorizing the City Manager or his designee to execute a contract through the Buy Board Cooperative Purchasing Network (Contract #416-12) for Uniform Purchase or Rental for City employees; and providing an effective date (File 4584-Employee Uniform Purchase or Rental awarded to G&K Services in the annual estimated amount of $400,000 for a three (3) year not-to-exceed amount of $1,200,000). Ordinance No. 2013-152 E. Consider adoption of an ordinance to the City of Denton, Texas authorizing the City Manager to execute a Professional Services Agreement between the City of Denton and Weaver and Tidwell, L.L.P. for Independent Audits; authorizing the expenditure of funds; and providing an effective date (File 5259-Audit Services awarded to Weaver and Tidwell, L.L.P. in the not-to-exceed amount of $140,000 for 2013, $142,500 for 2014 and $145,000 for 2015 for a total award not-to- exceed $427,500). Ordinance No. 2013-154 G. Consider adoption of an ordinance by the City of Denton, Texas, authorizing the City Manager to execute a First Amendment to the Utility Bill Printing and Mailing Services contract with Ancor Information Management LLC, dba Utilitec, providing for a one (1) year contract extension with two (2) one-year optional extensions in the not-to-exceed amount of $350,000/year; providing for the expenditure of funds therefor and providing an effective date (Bid 4246-First Amendment to Contract for Utility Bill Printing and Mailing Services in the annual amount not-to-exceed $350,000 for a three (3) year not-to-exceed total of $1,050,000). The Public Utilities Board recommends approval (6-0). Ordinance No. 2013-155 H. Consider adoption of an ordinance accepting competitive proposals and awarding a contract for the Purchase of Twelve (12) Vehicles for the City of Denton Water, Wastewater and Electric Departments; providing for the expenditure of funds therefor; and providing an effective date (RFP 5183-awarded to James Wood Auto Park in the amount of $324,701.55). The Public Utilities Board recommends approval (6-0). Ordinance No. 2013-156 City of Denton City Council Minutes June 18, 2013 Page 7 I. Consider adoption of an ordinance accepting competitive proposals and awarding a contract for the Design and Installation of Structured Communications Cabling for various City of Denton Departments; providing for the expenditure of funds therefor; and providing an effective date (RFP 5217-awarded to T-Datacom, Inc. in the annual estimated amount of $84,000 for a three (3) year total not-to-exceed $252,000). Ordinance No. 2013-157 J. Consider adoption of an ordinance amending Ordinance No. 2006-331 to decrease the adoption fees for dogs and cats and to allow for adoption subsidy donations to reduce the adoption fees in special circumstances for specific animals at the discretion of the Animal Services Supervisor pursuant to Chapter 6 of the Code of Ordinances of the City of Denton, Texas; providing that a schedule of fees shall be maintained on file in the office of the City Secretary; a severability clause; providing a savings clause; and providing an effective date. Ordinance No. 2013-158 K. Consider adoption of an ordinance authorizing the City Manager to execute an Interlocal Cooperative Purchasing Program Agreement with the City of Arlington, Texas under Section 271.102 of the Local Government Code, to authorize City of Denton contracts for the purchase of various goods and services; authorizing the expenditure of funds therefor; and declaring an effective date (File 5282-Interlocal Agreement with the City of Arlington). Item F was considered. Ordinance No. 2013-153 F. Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager to execute a Professional Services Agreement with Sawko & Burroughs, LLP, for professional services related to collection of delinquent taxes on behalf of the City of Denton; and establishing an effective date. Mayor Burroughs left the meeting with a conflict of interest. Council Member Roden motioned, Council Member Engelbrecht seconded to adopt the ordinance. On roll call vote: Council Member Engelbrecht, Mayor Pro Tem Kamp, Council Member King, Council Member Gregory, Council Member Roden, Council Member Hawkins – “aye”. Motion carried unanimously. Mayor Burroughs returned to the meeting. Item L was considered. Ordinance No. 2013-159 L. Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving a one (1) year contract with two (2) one-year options to renew, for the Legislative Management Suite Agenda Workflow Solution for the City of Denton in addition to the Government Transparency Solution and the City of Denton City Council Minutes June 18, 2013 Page 8 Meeting Efficiency Suite, which are available from only one source and in accordance with Chapter 252.022 of the Texas Local Government Code such purchases are exempt from the requirements of competitive bidding; and providing an effective date (File 5277 awarded to Granicus, Inc. in the not to exceed amount of $171,081). Betty Williams, Director of Administrative Services, presented information on the proposal which was a contract for the Granicus Legislative Management System for the Agenda. This would be an automated process for producing the agenda for distribution. It would provide benefits to the public with enhanced search features and searches for individual council votes. It would also create historical reports and could be used for board and commission agendas. Council Member Roden stated that this program would provide a lot more information for the citizens of Denton. On roll call vote: Council Member Engelbrecht, Mayor Pro Tem Kamp, Council Member King, Council Member Gregory, Council Member Roden, Mayor Burroughs, Council Member Hawkins – “aye”. Motion carried unanimously. 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. Consider appointments to Council committees. City Secretary Walters reviewed the revised list of council committees as presented in the Work Session. Council Member King motioned, Council Member Hawkins seconded to approve the amended list of appointments. On roll call vote: Council Member Engelbrecht, Mayor Pro Tem Kamp, Council Member King, Council Member Gregory, Council Member Roden, Mayor Burroughs, Council Member Hawkins – “aye”. Motion carried unanimously. Ordinance No. 2013-160 B. Consider adoption of an ordinance accepting competitive proposals and awarding a public works contract for the construction of the Linda McNatt Animal Care and Adoption Center; providing for the expenditure of funds therefor; and providing an effective date (RFP 5253-awarded to Schmoldt Construction, Inc. in the amount of $4,280,072). Capt. Scott Fletcher presented information on the ordinance. He stated that this was a public private partnership for the building of the facility. One third of the construction would be from private donations. Many hours from volunteers were put into the project to solicit the donations for the facility. The project was designed to be about 1 1/2 times bigger than the current facility and would feature habitats for different types of animals. The facility would be attached to North Lakes Park with green space and walking tracks. Fletcher reviewed the provisions for the cats and dogs with special features for each type of animal. A spay/neuter clinic would be on site plus a community room for training at the shelter. City of Denton City Council Minutes June 18, 2013 Page 9 The contract was the result of a request for proposal process. The selection committee ranked 11 respondents with the top 2 coming in for interviews. The recommendation from committee was to award the contract to the Schmoldt Construction Company. The time line was July 1, 2013 to April 15, 2014. The end result would be an enhancement to the community. Mayor Pro Tem Kamp motioned, Council Member King seconded to adopt the ordinance. On roll call vote: Council Member Engelbrecht, Mayor Pro Tem Kamp, Council Member King, Council Member Gregory, Council Member Roden, Mayor Burroughs, Council Member Hawkins – “aye”. Motion carried unanimously. 6. PUBLIC HEARINGS Ordinance No, 2013-161 A. Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for a Comprehensive Plan Amendment from Existing Land Use Future Land Use Designation to Community Mixed Use Centers Future Land Use Designation on approximately 42.611 acres of land. The subject property is generally located west of Nottingham Drive, north of Mingo Road, and south of University Drive (US 380) within the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. (CA13-0001; Denton Bible Church) The Planning and Zoning Commission recommends approval (5-0). Brian Lockley, Director of Planning and Development, presented the details of the proposal. The request was for a plan amendment from the Existing Land Use Future Land Use designation to Community Mixed Use Centers. He reviewed the current land use, the existing land use objectives and the current zoning map. The proposed future land use map was shown which show community mixed use center designation as well as the objectives of a community mixed use center. The Planning and Zoning Commission and the Development Review Committee recommended approval. The Mayor opened the public hearing. Pat Smith spoke in favor. Lee Allison spoke in favor. The Mayor closed the public hearing. Council Member Gregory motioned, Mayor Pro Tem Kamp seconded to approve adopt the ordinance. On roll call vote: Council Member Engelbrecht, Mayor Pro Tem Kamp, Council Member King, Council Member Gregory, Council Member Roden, Mayor Burroughs, Council Member Hawkins – “aye”. Motion carried unanimously. Ordinance No. 2013-162 B. Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for a zoning change from Neighborhood Residential City of Denton City Council Minutes June 18, 2013 Page 10 Mixed Use (NRMU) and Neighborhood Residential 3 (NR-3) zoning district classification and use designation to Community Mixed Use General (CM-G) and Neighborhood Residential Mixed Use (NRMU) zoning district classification and use designation on approximately 58.289 acres. The subject property is generally located east and west of Nottingham Drive, north of Mingo Road, and south of University Drive (US 380); and providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. (Z13-0001, Denton Bible Church) The Planning and Zoning Commission recommends approval (5-0). Brian Lockley, Director of Planning and Development, stated that this was the second half of the comprehensive plan amendment. This was a zoning change request to Community Mixed Use General. He reviewed the current future land use, proposed future land use map, zoning map, proposed zoning map. The Planning and Zoning Commission and the Development Review Committee recommended approval. Council Member Engelbrecht asked if there were plans to enhance the traffic signal at Nottingham for a left turn signal and if there would be sidewalks on both sides of Nottingham. Lockley stated that there were no plans as part of the rezoning request for signal improvements. He would follow up with a response for the sidewalks. The Mayor opened the public hearing. Lee Allison spoke in favor. Pat Smith spoke in favor. Council Member Roden asked what the goal was for the site and what would be built there. Smith stated that the vision was to build a four facility complex. Phase I would host 10-12 non- profit agencies. There would be a community accessible event center. He reviewed the agencies which would be served by the facility on the property. The Mayor closed the public hearing. Council Member Hawkins motioned, Council Member King seconded to adopt the ordinance. On roll call vote: Council Member Engelbrecht, Mayor Pro Tem Kamp, Council Member King, Council Member Gregory, Council Member Roden, Mayor Burroughs, Council Member Hawkins – “aye”. Motion carried unanimously. 7. CITIZEN REPORTS There were no citizen reports. 8. CONCLUDING ITEMS City of Denton City Council Minutes June 18, 2013 Page 11 A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. Mayor Burroughs presented a report on his recent trip to Mexico with UNT. Mayor Burroughs noted that he would be attending the US Conference of Mayors and would be one of the presenters at the Water Counsel for development of water resource development. B. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no continuation of the Closed Session. With no further business, the meeting was adjourned at 7:24 p.m. _____________________________ _______________________________ MARK A. BURROUGHS JENNIFER WALTERS MAYOR CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON, TEXAS ConsentAgendaE AGENDA INFORMATION SHEET AGENDA DATE: July 16, 2012 DEPARTMENT: Utilities ACM: Howard Martin, 349-8232 ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance finding that a public use and necessity exists to acquire (I) fee simple to a 7.393 acre tract (the “Mayhill Tract”); (II) fee simple to a 4.508 acre tract (the “Landfill Tract”); and (III) a Slope Easement (herein so called), encumbering a 0.804 acre tract, each affected tract located in the John B. Brandon Survey, Abstract Number 1515, City of Denton, Denton County, Texas, as more particularly described on Exhibit “A”, attached hereto and made a part hereof, located generally in the 1400 block of South Mayhill Road (the “Property Interests”), for (A) as concerns the Mayhill tract and the Slope Easement, the public use of expanding and improving Mayhill Road, a municipal street and roadway; and (B) as concerns the Landfill Tract, for the public use of expanding and improving the City of Denton Landfill, a permitted municipal Solid Waste disposal facility; authorizing the City Manager or his designee to make an offer to (1) Cynthia Bond Ables, John Henry Bond, III, Jean Doye Stokes and Wayne Stokes, a married couple, Joe P. Doye, Jr. A/K/A Joseph Pierre Doye, Jr. Patricia Ann Doye A/K/A Patricia Doye Kendall (collectively, the “Owner”); (2) successors in interest to the owner to the Property Interests; or (3) any other owners of the Property Interests, as may be applicable, to purchase the Property Interests for the purchase price of Seven Hundred 00 Eighty Five Thousand Thirty Six Dollars and No Cents ($785,036.) , and other consideration, as prescribed in the Purchase Agreement (the “Agreement”), as attached hereto and made a part hereof as Exhibit “B”; authorizing the expenditure of funds therefor; authorizing relocation expenditures; and providing an effective date. (Mayhill Road Widening and Improvements project – Bond et al - Parcel M134) BACKGROUND In accord with the current Mayhill Road Widening and Improvements project initiative (the Project), staff is undertaking the identification of the additional land rights necessary to accommodate the construction and operation of the improved roadway. Pyles-Whatley Corporation has been engaged to provide real estate appraisal services in regard to those identified tracts that will be directly impacted by the project. In respect to the affected property tract owned by the captioned property owners, the road Project requires the partial acquisition of a 7.393 acre Fee Tract for street and drainage purposes and a Slope Easement for lateral support slope for the makeup of the road itself. There is a single- family residential structure within the confines of the 7.393 acre fee tract, which is slated for removal as part of the road widening project. It is understood to be occupied by one of the affected property owners and as such is eligible for relocation assistance benefits. In addition, it is also necessary to acquire the resultant 4.508 acre severance tract, situated east of and adjacent to the 7.393 acre Fee Tract, for public use in respect to City of Denton municipal landfill operations. Pyles-Whatley Corporation has provided a real estate appraisal report in regard to captioned owners’ property tract and the land rights necessary for the road Project and municipal landfill public use. Their findings constitute the present offer to purchase. A gas pipeline exists longitudinally within the 4.508 acre Municipal Use tract, owned by NGG Gathering Company LLC. The 4.508 acre tract would be acquired subject to the existence of this encumbrance. 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) Public Utilities Board on June 24, 2013 recommended approval of the acquisition of the 4.508 acre Municipal Use Tract (6-0). FISCAL INFORMATION The 7.393 acre fee tract and the 0.804 acre slope easement tract, both associated with the Mayhill Road Widening and Improvements project, are being funded with a combination of Regional Toll Revenue (RTR) funds, Denton County Transportation Road Improvement Program (TRIP 00 ‘08) funds and City of Denton local match funds ($625,270.). The 4.508 acre Municipal Use tract iso be funded by Solid Waste capital project bonds t 00 allocated for real property purchases: 660563594.1365.30100 ($159,766.). 00 The total purchase offer price being $785,036. plus closing costs, as set out in the Agreement. BID INFORMATION Not applicable EXHIBITS 1.Location Map Respectfully submitted, 2.Ordinance 3.PUB Minutes June 24, 2013 Frank G. Payne, P.E. Prepared by, City Engineer Paul Williamson, Real Estate Manager EXHIBIT 1 attachment to AIS Draft Minutes of the Public Utilities Board Meeting June 24, 2013 Page 3 of 8 1Department;and providing an effective date (File 5114-Trucks for Solid Waste Departments 2awarded to Rush Truck Center in the amount of $1,315,173 McNeilus Truck Manufacturing 3in the amount of $513,536 and DaDee Manufacturing, LLC in the amount of $447,353.46 for 4a total award amount of $2,276,062.46). 5 Board Member Robinson motioned to approve item 3 with a second from Board Member 6 Gallivan. The vote was 6-0 approved. 7 8 94)Consider recommending approval of the purchase of one dry pit submersible pump for the 10Raw Sewage Pump Station Number 2 at the Pecan Creek Water Reclamation Plant from 11DXP Enterprises for the amount of $67,925. 12 Board Member Herring asked why there were no bids on this item 13. Martin answered this is 14a single source item. It has to do with the rebuilding of a lift station. With the existing piping 15and pump bases, a certain area has to be fitted with the pump. P.S. Arora, Division Manager, 16stated they looked at several vendors but this vendor is the only one that could fit the dimensions 17they needed. 18 Board Member Herring motioned to approve item 4 with a second from Board Member 19 Russell. The vote was 6-0 approved 20 21 225)Consider recommending approval of the acquisition of real property tracts of (1) 4.508 acres; 23(2) 0.624 acre; (3) 2.151 acre; and (4) 0.125 acre for municipal landfill use, as a concurrent 24matter with the acquisition of the necessary land rights required for the Mayhill Widening 25and Improvements project. 26 Board Member Robinson motioned to approve item 5 with a second from Board Member 27 Gallivan. The vote was 6-0 approved. 28 29 ITEMS FOR INDIVIDUAL CONSIDERATION: 30 31 326)Consider recommending approval of the Public Utilities Board Meeting minutes of: 33a)June 10, 2012 34 Date should be June 10, 2013 not June 10, 2012. 35 36 377)Consider a recommendation of approval of the FY 2014-2018 Electric Capital Improvement 38Plan (CIP). 39 40Phil Williams, General Manager DME, stated there are no changes staff is asking for approval 41from this Board. 42 Board Member Robinson motioned to approve item 7 with a second from Board Member 43 Russell. The vote was 6-0 approved. 44 45 ConsentAgendaF AGENDA INFORMATION SHEET AGENDA DATE: July 16, 2012 DEPARTMENT: Utilities ACM: Howard Martin, 349-8232 ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance finding that a public use and necessity exists to acquire (I) fee simple to a 1.029 acre tract (the “Mayhill Tract”); (II) fee simple to a 0.624 acre tract (the “Landfill Tract”); and (III) a Slope Easement (herein so called), encumbering a 0.076 acre tract, each affected tract located in the David Hough Survey, Abstract Number 646, City of Denton, Denton County, Texas, as more particularly described on Exhibit “A”, attached hereto and made a part hereof, located generally in the 1900 block of South Mayhill Road (the “Property Interests”), for (A) as concerns the Mayhill Tract and the Slope Easement, the public use of expanding and improving Mayhill Road, a municipal street and roadway; and (B) as concerns the Landfill Tract, for the public use of expanding and improving the City of Denton Landfill, a permitted municipal solid waste disposal facility; authorizing the City Manager or his designee to make an offer to (1) Wilma M. Haggard (The “Owner”); (2) Successors in interest to the owner to the Property Interests; or (3) any other owners of the Property Interests, as may be applicable, to purchase the Property Interests for the purchase price of One Hundred Thirty 00 Three Thousand Eight Hundred Fifty Nine Dollars and No Cents ($133,859.), and other consideration, as prescribed in the Purchase Agreement (the “Agreement”), as attached hereto and made a part hereof as Exhibit “B”; authorizing the expenditure of funds therefor; and providing an effective date. (Mayhill Road Widening and Improvements project – Haggard - Parcel M136) BACKGROUND In accord with the current Mayhill Road Widening and Improvements project initiative (the Project), staff is undertaking the identification of the additional land rights necessary to accommodate the construction and operation of the improved roadway. Pyles-Whatley Corporation has been engaged to provide real estate appraisal services in regard to those identified tracts that will be directly impacted by the project. In respect to the affected property tract owned by Mrs. Haggard, the road Project requires the partial acquisition of a 1.029 acre Fee Tract for street and drainage purposes and a Slope Easement for lateral support slope for the makeup of the road itself. In addition, it is also necessary to acquire the resultant 0.624 acre severance tract, situated east of and adjacent to the 1.029 acre Fee Tract, for public use in respect to City of Denton municipal landfill operations. Pyles-Whatley Corporation has provided a real estate appraisal report in regard to Mrs. Haggard’s property tract and the land rights necessary for the road Project and municipal landfill public use. Their findings constitute the present offer to purchase. A gas pipeline exists longitudinally within the 0.624 acre Municipal Use tract, owned by NGG Gathering Company LLC. The 0.624 acre tract would be acquired subject to the existence of this encumbrance. 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) Public Utilities Board on June 24, 2013 recommended approval of the acquisition of the 0.624 acre Municipal Use Tract (6-0). FISCAL INFORMATION The 1.029 acre fee tract and the 0.076 acre slope easement tract, both associated with the Mayhill Road Widening and Improvements project, are being funded with a combination of Regional Toll Revenue (RTR) funds, Denton County Transportation Road Improvement Program (TRIP 00 ‘08) funds and City of Denton local match funds ($104,546.). The 0.624 acre Municipal Use tract iso be funded by Solid Waste capital project bonds t 00 allocated for real property purchases: 660563594.1365.30100 ($29,313.). 00 The total purchase offer price being $133,859. plus closing costs, as prescribed in the Agreement. BID INFORMATION Not applicable EXHIBITS 1.Location Map Respectfully submitted, 2.Ordinance 3.PUB Minutes June 24, 2013 Frank G. Payne, P.E. Prepared by, City Engineer Paul Williamson, Real Estate Manager Draft Minutes of the Public Utilities Board Meeting June 24, 2013 Page 3 of 8 1Department;and providing an effective date (File 5114-Trucks for Solid Waste Departments 2awarded to Rush Truck Center in the amount of $1,315,173 McNeilus Truck Manufacturing 3in the amount of $513,536 and DaDee Manufacturing, LLC in the amount of $447,353.46 for 4a total award amount of $2,276,062.46). 5 Board Member Robinson motioned to approve item 3 with a second from Board Member 6 Gallivan. The vote was 6-0 approved. 7 8 94)Consider recommending approval of the purchase of one dry pit submersible pump for the 10Raw Sewage Pump Station Number 2 at the Pecan Creek Water Reclamation Plant from 11DXP Enterprises for the amount of $67,925. 12 Board Member Herring asked why there were no bids on this item 13. Martin answered this is 14a single source item. It has to do with the rebuilding of a lift station. With the existing piping 15and pump bases, a certain area has to be fitted with the pump. P.S. Arora, Division Manager, 16stated they looked at several vendors but this vendor is the only one that could fit the dimensions 17they needed. 18 Board Member Herring motioned to approve item 4 with a second from Board Member 19 Russell. The vote was 6-0 approved 20 21 225)Consider recommending approval of the acquisition of real property tracts of (1) 4.508 acres; 23(2) 0.624 acre; (3) 2.151 acre; and (4) 0.125 acre for municipal landfill use, as a concurrent 24matter with the acquisition of the necessary land rights required for the Mayhill Widening 25and Improvements project. 26 Board Member Robinson motioned to approve item 5 with a second from Board Member 27 Gallivan. The vote was 6-0 approved. 28 29 ITEMS FOR INDIVIDUAL CONSIDERATION: 30 31 326)Consider recommending approval of the Public Utilities Board Meeting minutes of: 33a)June 10, 2012 34 Date should be June 10, 2013 not June 10, 2012. 35 36 377)Consider a recommendation of approval of the FY 2014-2018 Electric Capital Improvement 38Plan (CIP). 39 40Phil Williams, General Manager DME, stated there are no changes staff is asking for approval 41from this Board. 42 Board Member Robinson motioned to approve item 7 with a second from Board Member 43 Russell. The vote was 6-0 approved. 44 45 ConsentAgendaG AGENDA INFORMATION SHEET AGENDA DATE: July 16, 2012 DEPARTMENT: Utilities ACM: Howard Martin, 349-8232 ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance finding that a public use and necessity exists to acquire (I) fee simple to a 7.628 acre tract (the “Mayhill Tract”); (II) fee simple to 2.276 acres (the “Landfill Lands”); and (III) a Drainage Easement (herein so called), encumbering 0.196 acre, all lands located in the David Hough Survey, Abstract Number 646, City of Denton, Denton County, Texas, as more particularly described on Exhibit “A”, attached hereto and made a part hereof, located generally in the 2100 block of South Mayhill Road (the “Property Interests”), for (A) as concerns the Mayhill Tract and the Drainage Easement, the public use of expanding and improving Mayhill Road, a municipal street and roadway; and (B) as concerns the Landfill Lands, for the public use of expanding and improving the City of Denton Landfill, a permitted municipal solid waste disposal facility; authorizing the City Manager or his designee to make an offer to (1) Kevin Nelms and Richard and wife, Nancy Greb (collectively, the “Owner”); (2) successors in interest to the owner of the to the Property Interests; or (3) any other owners of the Property Interests, as may be applicable, to purchase the Property Interests for the purchase price of Eight Hundred Sixty Seven Thousand Three Hundred Forty Seven Dollars and No Cents 00 ($867,347.), and other consideration, as prescribed in the Purchase Agreement (the “Agreement”), as attached hereto and made a part hereof as Exhibit “B”; authorizing the expenditure of funds therefor; and providing an effective date. (Mayhill Road Widening and Improvements project – Nelms/Greb - Parcel M137 & M138) BACKGROUND In accord with the current Mayhill Road Widening and Improvements project initiative (the Project), staff is undertaking the identification of the additional land rights necessary to accommodate the construction and operation of the improved roadway. Pyles-Whatley Corporation has been engaged to provide real estate appraisal services in regard to those identified tracts that will be directly impacted by the project. In respect to the affected property tract owned by the captioned property owners, the road Project requires the partial acquisition of a 7.628 acre Fee Tract for street and drainage purposes and Drainage Easement for storm water conveyance. In addition, it is also necessary to acquire tracts 2.151 acre and 0.125 acre, respectively (Municipal Use Tracts). The 2.151 acre tract being situated east of and adjacent to a portion of the 7.628 acre Fee Tract and the 0.125 acre tract being situated west of and adjacent to a portion of the 7.628 acre Fee Tract. Both of these tracts would be for public use in respect to City of Denton municipal landfill operations. Pyles-Whatley Corporation has provided a real estate appraisal report in regard to Mrs. Haggard’s property tract and the land rights necessary for the road Project and municipal landfill public use. Their findings constitute the present offer to purchase. A gas pipeline exists longitudinally within both the 2.151 acre Municipal Use Tract and the 0.125 acre Municipal Use Tract, and owned by NGG Gathering Company LLC. The Municipal Use Tracts would be acquired subject to the existence of this encumbrance. 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) Public Utilities Board on June 24, 2013 recommended approval of the acquisition of both the 2.151 acre Municipal Use Tract and the 0.125 acre Municipal Use Tract (6-0). FISCAL INFORMATION The 7.628 acre fee tract and the 0.196 acre drainage easement, both associated with the Mayhill Road Widening and Improvements project, are being funded with a combination of Regional Toll Revenue (RTR) funds, Denton County Transportation Road Improvement Program (TRIP 00 ‘08) funds and City of Denton local match funds ($766,804.). The 2.151 acre Municipal Use Tract and the .0125 acre Municipal Use Tract (collectively 2.276 acres) are to be funded by Solid Waste capital project bonds allocated for real property 00 purchases: 660563594.1365.30100 ($100,543.). 00 The total purchase offer price being $867,347. plus closing costs, as prescribed in the Agreement. BID INFORMATION Not applicable EXHIBITS 1.Location Map Respectfully submitted, 2.Ordinance 3.PUB Minutes June 24, 2013 Frank G. Payne, P.E. Prepared by, City Engineer Paul Williamson, Real Estate Manager Draft Minutes of the Public Utilities Board Meeting June 24, 2013 Page 3 of 8 1Department;and providing an effective date (File 5114-Trucks for Solid Waste Departments 2awarded to Rush Truck Center in the amount of $1,315,173 McNeilus Truck Manufacturing 3in the amount of $513,536 and DaDee Manufacturing, LLC in the amount of $447,353.46 for 4a total award amount of $2,276,062.46). 5 Board Member Robinson motioned to approve item 3 with a second from Board Member 6 Gallivan. The vote was 6-0 approved. 7 8 94)Consider recommending approval of the purchase of one dry pit submersible pump for the 10Raw Sewage Pump Station Number 2 at the Pecan Creek Water Reclamation Plant from 11DXP Enterprises for the amount of $67,925. 12 Board Member Herring asked why there were no bids on this item 13. Martin answered this is 14a single source item. It has to do with the rebuilding of a lift station. With the existing piping 15and pump bases, a certain area has to be fitted with the pump. P.S. Arora, Division Manager, 16stated they looked at several vendors but this vendor is the only one that could fit the dimensions 17they needed. 18 Board Member Herring motioned to approve item 4 with a second from Board Member 19 Russell. The vote was 6-0 approved 20 21 225)Consider recommending approval of the acquisition of real property tracts of (1) 4.508 acres; 23(2) 0.624 acre; (3) 2.151 acre; and (4) 0.125 acre for municipal landfill use, as a concurrent 24matter with the acquisition of the necessary land rights required for the Mayhill Widening 25and Improvements project. 26 Board Member Robinson motioned to approve item 5 with a second from Board Member 27 Gallivan. The vote was 6-0 approved. 28 29 ITEMS FOR INDIVIDUAL CONSIDERATION: 30 31 326)Consider recommending approval of the Public Utilities Board Meeting minutes of: 33a)June 10, 2012 34 Date should be June 10, 2013 not June 10, 2012. 35 36 377)Consider a recommendation of approval of the FY 2014-2018 Electric Capital Improvement 38Plan (CIP). 39 40Phil Williams, General Manager DME, stated there are no changes staff is asking for approval 41from this Board. 42 Board Member Robinson motioned to approve item 7 with a second from Board Member 43 Russell. The vote was 6-0 approved. 44 45 ConsentAgendaH AGENDA INFORMATION SHEET AGENDA DATE : July 16, 2013 DEPARTMENT : Airport ACM: Jon Fortune SUBJECT Consider a resolution authorizing the City Manager, or his designee, to execute on behalf of the City of Denton all contracts and agreements with the State of Texas to accept a grant not to exceed $500,000 to construct an addition to the Denton Enterprise Airport Terminal. BACKGROUND In response to an inquiry by Airport Staff, the Texas Department of Transportation Aviation Division (TxDOT Aviation) has initiated a grant offer to construct an Airport/Community Meeting Room as an expansion of the Denton Enterprise Airport Terminal. This addition would add a module measuring approximately 1,500 square feet to the west end of the current Terminal building. As a stand-alone addition to the terminal, the room would serve as a meeting location for groups of 125 to 200 people. This facility could be designed to serve as additional seating space for a future Airport restaurant. If it is used for this purpose, the additional facility to accommodate a restaurant will be presented for consideration as a separate proposal. Exhibit 2 is an architectural concept of the meeting room and an additional structure for operation of a restaurant. This grant and development proposal is for the meeting room only. The meeting room will benefit Airport operations as a stand-alone facility and will provide a location for community groups and Airport stakeholders to conduct meetings in an active aviation environment. FISCAL IMPACT The TxDOT Aviation grant offer is for an amount not-to-exceed $500,000, with a proposed 50/50 cost sharing. Phase I of the development is proposed to be funded in 2014 at $50,000 for architectural design and civil engineering. The actual cost of design and construction is estimated to be $400,000. A detailed cost estimate will be developed as a function of Phase I. Construction funding of $350,000 is proposed for 2015 as Phase II. The local share of funding can be capitalized from the approved 2012/13 Airport Budget. RECOMMENDATION The Airport Advisory Board (AAB) was scheduled to consider this grant offer at their meeting on July 10, 2013; however, a meeting could not be convened due to lack of a quorum. The proposed grant has been discussed with the AAB Chairman and staff has his concurrence to present this resolution to the Council and then discuss the project in detail at a future AAB meeting. Staff recommends approval of the resolution as a first step toward development of this project. Airport Improvement Agreements for the architectural engineering phase and construction phase of this project will be presented to the Airport Advisory Board and City Council for consideration and action as the next steps of the grant supported project. Agenda Information Sheet July 16, 2013 Page 2 EXHIBITS 1.Phase I and II Cost Estimate 2.Architectural Concept 3.Resolution Respectfully Submitted: Quentin Hix Director of Aviation IndividualItemA IndividualItemB AGENDA INFORMATION SHEET AGENDA DATE: July16, 2013 DEPARTMENT: Economic Development ACM: John Cabrales SUBJECT Consider appointing a nominating committee to recommendappointees to serve onthe Economic Development Partnership Board. BACKGROUND Economic Development Partnership Board (EDPB) members serve two-year terms and may serve as many as three terms. The ordinanceestablishing the EDPB requires that the City Council appoint three personsto serve as a nominating committee,to include twoCity Council members and one person who is a member of theChamber of Commerce. The nominating committee members who appointed EDPB members in July 2012were Mayor Pro-Tem Pete Kamp, Council Member James King, and Chamber of Commerce member Hank Dickenson. The committee is asked to confirm with each potential nominee his/herwillingness to serve.The nominating committee will then make its recommendation to the City Council for appointment to the EDP Boardat a future meeting. Theordinance requiresthat EDPB members must fall into specific categories when they are originally appointed to the Board(see chart below). City Council members and Chamber of Commerce Board members may be reappointed to two additional consecutive terms,even if they no longer serve on the City Council or Chamber Board.The City Manager, George Campbell, and President of the Chamber of Commerce, Chuck Carpenter, serve as ex-officio members and have no defined terms of service. Current EDPB members are: EDP Board MemberCategoryTerm Expires Virgil Strange, ChairChamber of Commerce2013 (Eligible) Greg JohnsonChamber of Commerce2014 Mark BurroughsCity Council2014 Dalton GregoryCity Council2013(Eligible) Denny AldridgeTop 20 Taxpayer2013(Not Eligible) Caleb O’RearTop 20 Taxpayer2014 Lane RawlinsUniversity of North Texas2014 Cleve BreedloveAviation2013(Eligible) Carrell Ann SimmonsAt Large2014 Agenda Information Sheet July 16, 2013 Page 2 Denny Aldridgehas nowserved three two-year terms and isnot eligible for reappointment this year. Virgil Strange, Dalton Gregory, and Cleve Breedlove’s terms will expirebut are all eligible for reappointment. ESTIMATED SCHEDULE OF PROJECT The Nominating Committee is respectfully asked to report on their recommendations at the August 6, 2013,meetingso that newly appointed or reappointed EDP Board members may begin their terms in August. EXHIBIT Ordinance 2011-042 Respectfully submitted: __________________________ Aimee Bissett, Director Economic Development Department PublicHearingA AGENDA INFORMATION SHEET AGENDA DATE:July 16, 2013 DEPARTMENT:Planning and Development ACM:John Cabrales SUBJECTZ13-0005(Clean and Green Car Wash) – Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas approvinga Detailed Plan to allow a 1,691 square-foot building for auto laundry (car wash) on 0.622-acre property located within the Wheeler Ridge Planned Development District (PD-176). The subject site is located at the southeast corner of Teasley Lane (FM 2181) and Robinson Road in the City of Denton, Denton County, Texas; providing for a saving clause; providing for a penalty in the maximum amount of $2,000.00 for violations, thereof, severability and an effective date. (Z13-0005) ThePlanning and Zoning Commission recommended approval of this request (6-0). PROPOSAL The applicant (Allison Engineering Group) isrequestingapproval of a DetailedPlan for development of an auto laundry(car wash) onthis subjectproperty. BACKGROUND On October 5, 1999, the City Council approved a Planned Development (PD) Concept Plan for a total of 168.57 acres known as Wheeler Ridge Planned Development District (PD 176, Wheeler Ridge). The 168.57acres includeseveral residential parcels and two(2)parcels designated for commercial development, identified as Tracts 1 and 3.Tract 1iscomprised of approximately 9.08 acres.The subject propertyis located in Tract 1. On December 1, 2009, the City Council approved both an amendment to the PD Concept Plan forTract 1,and a DetailedPlan to allow aself-storage facility on 4.05 acres of the9.08 acres contained in Tract 1. On October 5, 2010, the City Council approved an amendment to the December 1, 2009 Concept Plan, for aDetailed Plan thatalloweda gasoline station (7-11gas station) on approximately 0.83 acres within Tract 1. On March 19, 2013, the City Council approved a Detailed Plan to allow the constructionof a 6,816 square-foot buildingfor new auto part sales(O’Reilly new auto part sales)on 0.835-acre propertywithin Tract 1. This property is directly located north of the proposed subject site. Agenda Information Sheet July 16, 2013 Page 2 In accordance with the requirements set forth in Section 35-154 of the 1991City of Denton Zoning Ordinance, a DetailedPlan is required after the approval of a Concept Plan for all property located within a Planned Development District. Therefore, this review is for a Detailed Plan to allow1,691 square footauto laundry (car wash) building onapproximately 0.622acres of a section of the remaining undeveloped portion of Tract 1. On June 13, 2013, staff sent seven (7) public notices to property owners within 200 feet of the area and seventy-one (71) to residents within500 feet of the area (Exhibit 9).As of this writing, staff has received one (1) response in favor and one (1) neutral to theNotice of Public Hearing from property owners within 200 feet boundary area (See Exhibit 10). PRIOR ACTION/REVIEW The following is a chronology of Planned Development 176, commonly known as Wheeler Ridge. PD-176 Ordinance No.99-367 Providing for Planned Development District 176 for 168.57 acres. Located between Nowlin Road, FM 2181 (Teasley Lane) and Robinson Road Ordinance No.2000-216 Providing a Detailed Plan for 253 acres. Generally located east of Teasley Lane between Robinson Road and Hickory CreekRoad Ordinance No.2003-062 Providing a Detailed Plan for 253 acres Generally located east of Teasley Lane between RobinsonRoadand Hickory CreekRoad Altered the number of lots and increasedthe amount of open space Ordinance No. 2009-302 Amendingthe existing concept plan associated with the approximately 9.08 acre commercial development (Tract 1) Providing a Detailed Plan for 4.05 acres for the development of a storage unit facility Generally located at the southeast corner of Teasley Lane (FM 2181) and Robinson Road Ordinance No.2010-254 Amending the existing concept plan (Ordinance 2009-302) associated with the approximately 9.08 acre commercial development (Tract 1) Providing a Detailed Plan for approximately 0.83 acres for the development of gasoline station(7-11 gas station) Generally located at the southeast corner of Teasley Lane (FM 2181) and Robinson Road Agenda Information Sheet July 16, 2013 Page 3 Ordinance No. 2013-076 Providing a Detailed Plan for 0.835-acre of land for development of new auto parts sales (O’Reilly new auto parts sale). Generally located at the southeast corner of Teasley Lane (FM 2181) and Robinson Road. OPTIONS 1.Approveas submitted. 2.Approvesubject to conditions. 3.Denial. 4.Postpone consideration. 5.Table item. RECOMMENDATION The Planning and Zoning Commission recommends APPROVAL of this Detailed Plan, subject to the following conditions: CONDITIONS OF APPROVAL: 1.All original conditions of approval and subsequent modifications associated with PD 176 shall remain valid, unless specified herein. [P&Z] 2.The site plan as submitted and shown in Exhibit 5 & 6shall guide thedevelopment of the site. [P&Z] 3.The elevation drawing submitted and shown in Exhibit 7shall guide the development of the 1,691square foot building. [P&Z] APPROVAL The Development Review Committee recommends , subject to the conditions listed above. Agenda Information Sheet July 16, 2013 Page 4 EXHIBITS 1.Staff Analysis 2.Site Location/Aerial Map 3.Zoning Map 4.Future Land Use Map 5.Site Plan 6.Landscape Plan 7.Building Elevations 8.Letter from Applicant 9.Notification Information Map 10.Notice of Public Hearing Responses 11.Site Photos 12.Planning and Zoning Commission, June 26, 2013 Meeting Minutes 13.Ordinance Respectfully submitted: Brian Lockley, AICP, CPM Planning and Development, Director Prepared by: Nana Appiah, AICP Senior Planner Exhibit 1 CITY OF DENTON DEVELOPMENT REVIEW COMMITTEE STAFF REPORT P&Z Date: June 26, 2013 TYPE: Detailed Plan CC Date: July 16, 2013 PROJECT #:Z13-0005 Project Number: Z13-0005 Request: To allow 1,691 square-foot auto laundry (car wash) on 0.622 acres. Applicant: Allison Engineering Group Property Owner: Joshua Boschee 12821, Saratoga Downs Court Fort Worth, TX 76244 Location: The property is generally located at the southeast corner of Teasley Lane (FM 2181) and Robinson Road. Size: 0.622 acres ± Zoning Designation: Planned Development 176 (PD 176) Future Land Use: Neighborhood Centers Case Planner: Nana Appiah DRC Recommendation: The Development Review Committee (DRC) recommends Approval of Z13-0005 subject to conditions. Summary of Analysis: Section 35-154 of the City of Denton Zoning Ordinance provides standards by which a Detailed Plan is to be evaluated. Such standards include showing permitted land uses and the acreage for each use, adjacent or surrounding land uses, zoning, streets, drainage facilities, existing or proposed off-site improvements, the location and size of all alleys, parking lots and parking spaces, loading areas to be used for vehicular traffic, access and connection to existing or proposed streets, traffic generated by the proposed uses, the maximum height of all buildings, the maximum total floor area, the location of water retention areas and major drainage facilities, and the location of all major utilities. The applicant has submitted a Detailed Plan to demonstrate how these requirements will be met. The Detailed Plan submitted shows an auto laundry (car wash) building with a gross floor area of 1,691 square feet. The building is one (1) story and fifteen (15’6) feet high. The proposed development requires nine (9) parking spaces, which are shown on the Detailed Plan. The locations of the retention areas and major utilities have been reviewed by the DRC. The DRC has determined that the utilities are adequate for the proposed development. The Detailed Plan shows one (1) proposed access point onto the site. This access point is in compliance with Ordinance 2009-302, the approved Concept Plan for the 9.08 acre site, which, allows one access point from the site onto Teasley Lane. Currently, there is a 7-11 gas station located at the corner of Teasley Lane and Robinson Road, and construction of O’Reilly new auto parts sales development located immediate north of the subject site. This proposed auto laundry development will be sharing access onto Teasley Lane with the existing 7-11 gas station and the O’Reilly new auto parts sales development. The subject property is within a Neighborhood Center future land use designation per the Future “Neighborhood Center” Land Use Map of the Denton Plan. Per the Denton Plan, a might contain a convenience store, small restaurant, personal service shops, church or synagogue, daycare, individual office space, a small park and perhaps an elementary school vital to the day- to-day activity of the neighborhood. The proposed Detailed Plan is consistent with the Denton Plan. Per ordinance number 1999-367 which established the PD, there were two areas designated for commercial development (Tract 1 and 3). The intent of the commercial tracts is to develop uses essential to the day-to-day activities of residents such as retail, office, and other commercial center(s). Findings of Fact 1.This proposed Detailed Plan is to allow 1,691 square foot auto laundry building. 2.The proposed development encompasses approximately 0.622 acres. The site is located within the Neighborhood Centers Future Land Use District. 3.On May 5, 1987, the City Council approved a Planned Development (PD 176, Wheeler Ridge) Concept Plan by Ordinance number 99-367 on 168.57 acres. 4.On December 1, 2009, Ordinance number 99-367 was amended by Ordinance number 2009-302. The purpose of the request was to amend the existing Concept Plan associated with the approximately 9.08 acre commercial site (Tract 1), and to approve a Detailed Plan on approximately 4.05 acres within the amended Concept Plan for a storage unit facility. 5.Per Ordinance number 99-367, uses permitted within the Commercial (C) zoning district are permitted on the subject property. 6.Per Section 35-77 of the City of Denton Zoning Ordinance, auto laundry is permitted by- right within the Commercial (C) zoning district. 7.Per Element 3 of the Denton Plan, Neighborhood Centers are oriented inwardly, focusing on the center of the neighborhood and containing facilities vital to the day-to- day activity of the neighborhood. A neighborhood center might contain a convenience store, small restaurant, personal service shops, church or synagogue, daycare, individual office space, a small park and perhaps an elementary school. 8.Per Ordinance 99-367, PD-176 comprises of residential units and two tracts for commercial development. The intent of the commercial tract(s) is to provide convenient goods and services vital to day-to-day activities of the neighborhood. 9.The subject site is not located within a Historic or Conservation district. 10.The property has frontage on Teasley Lane through adjoining property located north of the site. According to the City of Denton’s Road classification system, Teasley Lane is classified as a Primary Major Arterial. 11.The Detailed Plan submitted shows one access points, which is an existing driveway off Teasley Lane. This drive currently serves as an access point for existing 7-11 gas station and proposed O’Reilly’s auto parts store located north of the subject property. 12.The property will be served by the City of Denton water and sewer systems. 13.The anticipated water demand is approximately 7 gallons per minute (GPM) for the proposed building associated with the use. 14.The anticipated sewer demand is approximately 6 gallons per minute (GPM) for the proposed building associated with the use. 15.Anticipated transportation demand is approximately 30 trips per day. There is adequate capacity on Teasley Lane to serve this development. 16.According to the City of Denton Fire Department, this property is serviced by the City’s Fire Station #6, located at 3232 Teasley lane. Development Review Committee Based on the information provided by the applicant and a recent site visit, the Development IS CONSISTENT Review Committee finds that with the recommended conditions, the request IS CONSISTENT with the surrounding land uses and general character of the area, with the IS CONSISTENT Denton Plan, and with the Denton Development Code. Based on the findings-of-fact, the Development Review Committee (DRC) recommends APPROVAL of Z13-0005 with conditions as stated below. CONDITIONS OF APPROVAL: 1.All original conditions of approval and subsequent modifications associated with PD 176 shall remain valid, unless specified herein. [Planning] 2.The site plan as submitted and shown in Exhibit 5 & 6 shall guide the development of the site. [Planning] 3.The elevation drawing submitted and shown in Exhibit 7 shall guide the development of the 1,691 square foot building. [Planning] GENERAL NOTES NOTE: Approval of this request shall not constitute a waiver or variance from any applicable development requirement unless specifically noted in the conditions of approval and consistent with the Denton Development Code. NOTE: All written comments made in the application and subsequent submissions of information made during the application review process, which are on file with the City of Denton, shall be considered to be binding upon the applicant, provided such comments are not at variance with the Denton Plan, Denton Development Code or other development regulations in effect at the time of development. Surrounding Zoning Designations and Current Land Use Activity: North: Northwest: PD-176:Northeast: NR-4/CMG Commercial Developments (7-11 PD-176 (vacant) Gas Station) Single family homes, Hickory Creek NR-2-Single family homes, HeightsLakewood Estates West:East: NR-4 PD-176 (vacant) Subject Property: Single family homes, Forest PD-176 MeadowNR-2-Single family homes, Wheeler Vacant Ridge Southwest: South: Southeast: NR-4 PD 176: PD-176 Single-family homes, Lexington Storage facility and Single-family Single-family homes, Wheeler Parkhomes, Wheeler RidgeRidge Source: City of Denton Geographical Information System and site visit by City staff Summary of Surrounding Current Land Use Activity: The subject property is surrounded by commercial development (storage facility) to the immediate south and east, and residential homes to the further south and east. The City Council approved the storage facility on December 1, 2009. Located to the immediate north of the site is O’Reilly new auto parts sales development currently under construction. This development was approved by City Council on March 13, 2013. Located further north of the site is the 7-11 gas station. The City Council approved this 7-11 gas station on October 5, 2010. Development to the west comprises of residential homes. Located further north to the site (the entire 9.8-acre tract) are commercial retail uses. Tenants in this retail development include a Subway restaurant, a pizza restaurant, and a laundromat. Comprehensive Plan: A.Consistency with Goals, Objectives and Strategies: The property is within the Neighborhood Centers future land use category per the Future Land Neighborhood Use Map of the Denton Plan. Per Land Use Element of the Denton Plan, Centers should develop in conventional patterns or may be developed in a pattern of ‘Neighborhood Centers’. The Plan recommends Neighborhood Centers to be oriented inwardly, focusing on the center of the neighborhood and containing facilities vital to the day-to-day activity of the neighborhood. A neighborhood center might contain a convenience store, small restaurant, personal service shops, church or synagogue, daycare, individual office space, a small park and perhaps an elementary school Staff finds that the Detailed Plan as proposed is consistent with the Denton Plan. The subject property is surrounded by residential homes to the east, west and south. This proposed auto laundry facility will serve the surrounding residential homes and community. The homes to the south and east were approved as part of PD-176. Per ordinance number 99-367, the intent of the subject site is to encourage and accommodate the development of office, retail, and commercial uses to provide daily nonresidential needs to the surrounding residential homes and community. B.Land Use Analysis: Per section 35-136 of the City of Denton Zoning Ordinance, planned development districts are intended to provide for the development of land as an integral unit for single or mixed use in accordance with a plan that may vary from the established regulations of other zoning districts. They are also meant to encourage flexible and creative planning to ensure the compatibility of land uses, to allow for the adjustment of changing demands to meet the current needs of the community. Staff finds the Detailed Plan as proposed is consistent with the intent of the planned development district. The auto laundry will serve auto service needs of the surrounding community. The proximity of the development will also help reduce the number of vehicle trips made by nearby residents to service vehicular cleaning needs on city roads due to the proximity of the use to residents. C.Current Planned Development District Allocation Current Allocation in PD-176 Proposed Allocation 9,08 acres of commercial development 0.622 acres of auto laundry Nearest Elementary, Middle, and High School The proposed non-residential development will not produce any elementary, middle or high school students, and therefore will not impact the associated Independent School District. Nearest Fire and EMS Station Name of Station Approximate Distance From Subject Property Fire Station #6, 3232 Teasley lane ±1.3 miles Water and Wastewater Demand and Capacity: A. Estimated Demand and Service Provider: This development will be serviced by the City of Denton water and sewer service system. Subject PropertyEstimated Impact Analysis Adequate to Serve Proposed Demand 0.622 ± acres (Yes or No) Potable Water Consumption 7 (peak) yes (GPD) Wastewater Generation 6 (peak) yes (GPD) B. Available Capacity: Water is available from the existing 8-inch main along the west side of the property. Wastewater is available via the existing 8-inch gravity main along the north side of the property. Anticipated peak hour water demand is approximately 7 gallon per minute (GPM) and anticipated peak wastewater demand is approximately 6 GPM. D.CIP Planned Improvements : N/A Roadways/Transportation Network: Estimated Demand A.: Subject PropertyEstimated Impact Analysis Adequate to Serve 0.622 ± acres Proposed Demand (Yes or No) Average Annual Daily Trips 30 Yes Subject PropertyEstimated Impact Analysis Adequate to Serve 0.622 ± acres Proposed Demand (Yes or No) (AADT) B. Available Capacity: The subject site has frontage on Teasley Lane (F.M. 2181) through adjoining property to the immediate north. According to the City of Denton’s Road classification system, Teasley Lane is classified as a Primary Major Arterial which requires 135 feet of right-of-way. Anticipated transportation demand is less than 30 vehicle trips per day. Capacity is available on this roadway. C. Roadway Conditions: Teasley Lane condition is in fair condition. D. CIP Planned Improvements: The City of Denton has no planned improvement for the transportation facilities serving the subject site. Teasley Lane is a TxDOT owned and maintained road. TxDOT has plans to widen Teasley Lane to a six-lane divided roadway. Environmental Conditions: There are no Environmentally Sensitive Areas on site. Wells (Public/Private): There are no known public or private potable water wells on site. Airports: The site is located outside of the Denton Municipal Airport’s ACCLUD zones. Electric: Per Denton Municipal Electric (DME), the electric service main is 600 amps with a service voltage of 208 Y/ 120 volts. The DME transformer will be in an easement. Transformer will be shared with a future customer to the south. Park Facilities: This proposed non-residential development should have no impact on the City’s park facilities. Comments from other Departments: N/A Exhibit 2 Site Location/Aerial Map Robinson Road Tract 1-9.08 Site 0.622 Acres N Exhibit 3 Zoning Map Site 0.622 Acres N Exhibit 4 Future Land Use Map Site 0.622 Acres N Exhibit 5 Site Plan Exhibit 6 Landscape Plan Exhibit 7 Building Elevations Exhibit 8 Letter from Applicant Exhibit 9 Notification Information Map Public Notification Date: 6/13/13 200’ Legal Notices sent: 7 500’ Courtesy Notices sent: 71 Number of responses to 200’ Legal Notice: In Opposition: 0 In Favor: 1 Neutral: 1 Exhibit 10 Notice of Public Hearing Responses Exhibit 11 Site Photos Look north from subject site Look south from subject site Look toward subject site Look west from subject site Exhibit12 PlanningandZoningCommission,June26,2013MeetingMinutes 1discussion. Schaake opened the Public Hearing. There was no one to speak on this item; Schaake 2closed the Public Hearing. 3 4Commissioner Thom Reece motioned, Commissioner Brian Bentley seconded to approve this 5request. Motion approved (6-0). 6 C.Hold a public hearing and consider making a recommendation to City Council regarding a Detailed Plan to allow a 1,691 square-foot building for auto laundry on 0.622-acre property located within the Wheeler Ridge Planned Development District (PD-176). The subject site is located at the southeast corner of Teasley Lane (FM 2181) and Robinson Road. (Z13- 0005, Clean and Green Car Wash, Nana Appiah) 7 8Appiah stated this request is to allow 1,691 square-foot building for auto laundry (car wash) on 90.622-acre property located within the Wheeler Ridge Planned Development District (PD-176). 10There were 7 public notices sent to property owners within 200 feet of the subject site and 71 11courtesy notices sent to property owners within 500 feet of the subject site. Of those returned 12there was 1 in favor and one neutral to the request. Staff recommends approval of this request 13subject to staff conditions listed in the backup. 14 15Taylor questioned if there is a roadway around the proposed carwash that isn’t allocated. Appiah 16stated the aerial photo provided is not up to date. 17 18Lee Allison, Allison Engineering Group, 401 S Locust St, Denton, Texas 19Allison stated the subject site goes to the storage site that boarders the property. There is a 20common access easement in the rear of the property that is used for solid waste trucks. 21 22Schaake opened the Public Hearing; there was no one to speak on this item. Schaake closed the 23Public Hearing. 24 25Commissioner Frank Conner motioned, Commissioner Devin Taylor seconded to approve this 26request subject to staffs conditions. Motion approved (6-0). 27 6.FUTURE AGENDA ITEMS: Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the Planning and Zoning Commission 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. 28 th 29Lockley stated the July 10 packet will include the City Council Matrix. There was no further 30discussion. Schaake adjourned the meeting at 7:25 p.m. 31 4 Exhibit13 Ordinance PublicHearingB AGENDA INFORMATION SHEET AGENDA DATE: July 16, 2013 DEPARTMENT: Planning & Development ACM: John Cabrales SUBJECT: DCA13-0001 Limitation 17 Text Amendment Hold a public hearing and consider adopting an ordinance of the City of Denton, Texas, regarding amending Subchapter 35.5.8 of the Denton Development Code regarding Limitation L(17); providing for a penalty in the maximum amount of $2,000.00 for violations, thereof; providing for severability; and establishing an effective date. The Planning and Zoning Commission recommends approval 6-0. BACKGROUND Subchapter 5 of the Denton Development Code (DDC) notes the Zoning Districts and Limitations for the City of Denton. The zoning is the division of land into districts with its own set of legislative regulations which permit land uses, specific uses, and/or limitations, and establishes the general regulations governing minimum lot size, minimum lot width, minimum lot depth, setbacks, and similar lot requirements. The limitations to zoning uses identify a use that is permitted but limited in scope to mitigate any impacts that would be generated from the use or the limitations provide for development standards to integrate the use into the existing built environment. For example, limitation (14) limits uses to no more than 10,000 square feet of gross floor area. This purports that a use of this scale can be accommodated in the underlying zoning district and the amount of parking needed for the use, traffic generation to and from the site, and use of the existing infrastructure, will not be detrimental to the surrounding land uses. Conversely, limitation (2) notes for infill lots the front setback is the average of the adjacent lots and denotes that a proposed development will be integrated in the existing development pattern. The limitations are essential to the Zoning Districts to maintain the balance and sustainability of the neighborhood and limits recognize that certain uses are appropriate and should not exceed the established threshold, but it is the character of certain limitations that have the opposite effect and become a barrier to development. PROPOSAL The purpose of this amendment is to maintain the intent of the limitation, the protection of the neighborhood, while removing the barrier that would preclude development in those instances where development can be successfully integrated into the neighborhood. Agenda Information Sheet July 16, 2013 Page 2 Limitation (17) as noted below is one requirement that permits a use up to a defined threshold and beyond this ceiling an SUP is required. L(17) = Uses are limited to no more than 25,000 square feet of gross floor area per use, except grocery stores may be larger with approval of an SUP. For example, in the Commercial Land Use Categories in Subchapter 5, Retail Sales and Professional Services within the NRMU zone district are subject to this limitation. /š’’;©-zŒ [“7 …­; NRMU- NR-1 NR-2 NR-3 NR-4 NR-6 NRMU 12 /·;mš©z;­ Retail Sales and Service N N N N N L(15) L(17) Professional Services and Offices N N N N N L(14) L(17) The City was recently approached by a potential property owner to develop a 50,000 square foot office building on 10.12 acres. However, due to this limitation the property can only be developed with a 25,000 square foot building. Given the size of the property, a building of this size can be developed without diminishing the use and character of adjacent properties. However, staff acknowledges that this example may not represent other properties in the City that are also subject to this limitation and may have a negative impact, if this limitation is removed. amendment is to make it consistent with the other limitations found in Section 35.5.8 that lot, use. In response to this, staff proposes that Limitation (17) be amended as follows: L(17) = Uses are limited to no more than twenty-five thousand (25,000) square feet of lototherpermitteduses gross floor area per use , except grocery stores may be larger with the approval of an SUP. This amendment would allow for the same maximum amount of square footage as the existing limitation but require a Specific Use Permit (SUP) for uses proposed above 25,000 square feet. This allows staff to apply conditions to mitigate any impacts generated by the increase in gross floor area and require a review by the Planning and Zoning Commission and approval by City Council. Although this adds another level of review this is necessary to ensure the proper integration of the proposed use. Agenda Information Sheet July 16, 2013 Page 3 Generally, uses which require an SUP are activities that are not necessarily appropriate for a district. However, under certain circumstances such as location, limited scale, site development standards or relationship to surrounding uses they may be permitted. It is the burden of the applicant to demonstrate how a development can be successfully integrated within an existing neighborhood. PRIOR ACTION/REVIEW May 22, 2013 Planning and Zoning Commission Work Session June 26, 2013 Planning and Zoning Commission Public Hearing OPTIONS 1.Approve as submitted 2.Approve with conditions 3.Deny 4.Postpone consideration 5.Table item RECOMMENDATION approval The Planning and Zoning Commission recommends 6-0 of the proposed Code amendment. approval Staff recommends of the proposed Code amendments. EXHIBITS 1.June 26, 2013 Planning and Zoning Commission Meeting Minutes 2.Draft Ordinance Respectfully prepared and submitted by, Brian Lockley, AICP, CPM Director of Planning and Development Exhibit 1 June 26, 2013 Planning and Zoning Commission Meeting Minutes B.Hold a public hearing and consider making a recommendation to City Council regarding a text amendment to Subchapter 35.5.8 of the Denton Development Code regarding Limitation (17). (DCA13-0001, Text Amendment, Brian Lockley) Menguita stated staff is proposing that L(17) be amended as follows: L(17) = Uses are limited to no more than twenty-five thousand (25,000) square feet of gross floor area per lot, other permitted uses may be larger with the approval of an Specific Use Permit. Menguita stated an issue is in some instances, a building greater than 25,000 square feet can develop without diminishing the use and character of adjacent properties. There was no further discussion. Schaake opened the Public Hearing. There was no one to speak on this item; Schaake closed the Public Hearing. Commissioner Thom Reece motioned, Commissioner Brian Bentley seconded to approve this request. Motion approved (6-0). Exhibit2 DraftOrdinance IndividualItemA AGENDA INFORMATION SHEET AGENDA DATE: July 16, 2012 DEPARTMENT: Utilities ACM: Howard Martin, 349-8232 ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance finding that a public use and necessity exists to acquire through the exercise of the right of eminent domain (I) fee simple to the surface estate, with waiver of surface use related to the mineral estate, of a 4.69 acre tract; (II) a utility and slope easement encumbering 0.56 acre; and (III) a utility and drainage easement encumbering 0.02 acre, for the public use of expanding and improving Bonnie Brae Street, a municipal street and roadway, the affected lands and interests being generally located in the 2400 block of South Bonnie Brae, and being situated in the A. Tompkins Survey, Abstract Number 1246, City of Denton, Denton County, Texas, as more particularly described in Exhibit “A”, attached hereto and made a part hereof (collectively, the Property Interests”); authorizing the filing and prosecution of eminent domain proceedings to acquire the Property Interests; authorizing the expenditure of funds therefor; making findings; providing a savings clause; and providing an effective date. (Parcel 25 – Harlan Properties - Bonnie Brae Widening and Improvements project) BACKGROUND Ongoing negotiations with the affected property owner for the subject land rights necessary for the Bonnie Brae Widening and Improvements project have reached an impasse. Approval of the subject ordinance authorizes staff to acquire the land rights necessary by way of exercising the City’s eminent domain authority. 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) City Council – October 16, 2012 (offer to purchase Ordinance 2012-292) City Council - February 5, 2013 (final offer to purchase Ordinance 2013-039) FISCAL INFORMATION The overall Bonnie Brae 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 overall costs for the Property Interests sought, as to be determined via eminent domain proceedings, are to be funded through a combination of these funding sources. 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 IndividualItemB AGENDA INFORMATION SHEET AGENDA DATE: July 16, 2012 DEPARTMENT: Utilities ACM: Howard Martin, 349-8232 ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance finding that a public use and necessity exists to acquire through the exercise of the right of eminent domain (I) fee simple to the surface estate, with waiver of surface use related to the mineral estate, of a 1.91 acre tract; (II) a utility and slope easement encumbering 0.57 acre; and (III) a drainage easement encumbering 0.02 acre, for the public use of expanding and improving Bonnie Brae Street, a municipal street and roadway, the affected lands and interests being generally located on Roselawn Drive, 600 feet east of South Bonnie Brae Street, and being situated in the James Edmonson Survey, Abstract Number 400, City of Denton, Denton County, Texas, as more particularly described in Exhibit “A”, attached hereto and made a part hereof (collectively, the Property Interests”); authorizing the filing and prosecution of eminent domain proceedings to acquire the Property Interests; authorizing the expenditure of funds therefor; making findings; providing a savings clause; and providing an effective date. (Parcel 34 – Chamberlain - Bonnie Brae Widening and Improvements project) BACKGROUND Ongoing negotiations with the affected property owner for the subject land rights necessary for the Bonnie Brae Widening and Improvements project have reached an impasse. Approval of the subject ordinance authorizes staff to acquire the land rights necessary by way of exercising the City’s eminent domain authority. 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) City Council - June 5, 2012 (offer to purchase Ordinance 2012-131) City Council - February 5, 2013 (final offer to purchase Ordinance 2013-040) FISCAL INFORMATION The overall Bonnie Brae 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 overall costs for the Property Interests sought, as to be determined via eminent domain proceedings, are to be funded through a combination of these funding sources. 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 Page 3 of 3 EXHIBIT "A" - to Ordinance (Property Interests) PARCEL 34-DE-2 LEGAL DESCRIPTION DRA.iNAGE EASEMENT Being a 0.01 acre tract of land situated in the James Edmonson Survey, Abstract No. 400, Denton County, Texas, being a portion of The Chamberlain Trust, as recorded in Volume 4522, Page 1336, Deed Records, Denton County, Texas. Said 0.01 acre tract of land being more particularly described by metes and bounds as follovvs: COMMENCING at a found 1/2 inch iron rod with 4561 cap, being the southeast corner of a tract of land conveyed to Jack Parkes and wi£e Betty Parkes, as recorded in Volume 5022, Page 3438, Deed Records, Denton County, Texas, and being in the north line of a Save & Except Txact 1, conveyed to Jack Arlyn Parkes, as recorded in Volume 4073, Page 1207, Deed Records, Denton County, Texas, also being in the existing west right- of-way line of Bonnie Brae Street (having a variable width R.O.W.); THENCE North 77°59'07" East, leaving said existing west right-of-way line, for a distance of 189.79. feet to a point for corner, said point being in the existing north right- of-way line of Roselawn Drive (a vari.able width R.O.W.); THENCE South 89°31'33" East, along said existing north right-of-way line, a distance of 512.38 feet to a point for corner; THENCE North 00°28'27" East, leaving said existirig north right-of way line, a distance of 19.23 feet to a point for corner; being the POINT OF BEGINNING, said point being in the proposed north right-of-way line of Roselawn Drive (a variable width R.O.W.); THENCE North 00°00'00" East, leaving said proposed north right-of vcray line, a distance of 20.00 feet to a point for corner; THENCE North 90°00'00" East, a distance of 25.00 feet to a point for corner; THENCE South 00°00'00" West, a distance of 20,00 feet to a point for coz-�er, said point being in the proposed north rigl�t-of-way line of said Roselawn Drive; THENCE North 90°00'00" West, along said proposed north right-of way line, a distance of 25.00 feet to the POINT OF BEGINNING and CONTATNING 500 square feet, 0,01 acres of land, more or less.