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HomeMy WebLinkAboutNovember 05, 2013 AgendaAGENDA CITY OF DENTON CITY COUNCIL November 5, 2013 After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, November 5, 2013 at 3:00 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: WORK SESSION 1. Citizen Comments on Consent Agenda Items This section of the agenda allows citizens to speak on Consent Agenda Items only. Each speaker will be given a total of three (3) minutes to address any items he /she wishes that are listed on the Consent Agenda. A Request to Speak Card should be completed and returned to the City Secretary before Council considers this item. 2. Requests for clarification of agenda items listed on the agenda for November 5, 2013. 3. Receive a report, hold a discussion, and give staff direction regarding the proposed 2014 Bond Program. 4. Receive a report, hold a discussion, and give staff direction regarding a transportation user fee. 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 Attorney — 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 T. Toby Survey, Abstract No. 1288, City of Denton, Denton County, Texas, and generally located along the west side of North Locust Street between Hercules Lane and Loop 288. 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 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 November 5, 2013 Page 2 2. 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 James Perry Survey, Abstract No. 1040, John Scott Survey, Abstract No. 1222, John Bacon Survey, Abstract No. 1541, and the John Davis Survey, Abstract No. 326, City of Denton, Denton County, Texas, and generally located along Western Boulevard between Airport Road and Jim Christal Road. 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 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. B. Consultation with Attorney — Under Texas Government Code Section 551.071. 1. Consultation with the City's attorneys regarding legal advice pertaining to street maintenance fees where a public discussion of this legal matter would conflict with the duty of the City's Attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. 2. Consult with City's attorneys regarding legal issues and legal challenges arising out of municipal ordinances regulating the operation and location of credit access businesses, including Denton ordinance 2013 -073 and possible amendments thereto, as well as the status and strategic considerations associated with litigation pending in the 16th District Court of Denton County, Texas styled ACE Cash Express v. City of Denton, cause no. 2013 - 10564 -16. 3. Consult with and provide direction to City's attorneys regarding legal issues and strategies associated with Gas Well Ordinance regulations and Fire Code regulations relating to gas well drilling and production and safety issues regarding gas well drilling and production within the City Limits and the extraterritorial jurisdiction, including Constitutional limitations, statutory limitations upon municipal regulatory authority, statutory preemption and /or impacts of federal and state law and regulations as it concerns municipal regulatory authority and matters relating to enforcement. 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. GOVT. 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. City of Denton City Council Agenda November 5, 2013 Page 3 Regular Meeting of the City of Denton City Council at 6:30 p.m. in the Council Chambers at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: REGULAR MEETING 1. PLEDGE OF ALLEGIANCE A. U.S. Flag B. Texas Flag "Honor the Texas Flag — I pledge allegiance to thee, Texas, one state under God, one and indivisible." 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations /Awards 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 — K). 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 — K 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 expenditure of funds for payments by the City of Denton for electrical energy transmission fees to those cities and utilities providing energy transmission services to the City of Denton; and providing an effective date (File 5388 — Electrical Energy Transmission Fees for Fiscal Year 2013 -14 in the total amount of $2,856,319.94). The Public Utilities Board recommends approval (7 -0). B. Consider adoption of an ordinance authorizing the City Manager to execute a Cooperative Purchasing Program Agreement with the North Central Texas Council of Governments ( NCTCOG) under Section 791.001 of the State of Texas Government Code, and to authorize the City of Denton to participate in the NCTCOG Cooperative Data Program; authorizing the expenditure of funds therefor; and declaring an effective date (File 5355— Cooperative Program Agreement with the North Central Texas Council of Governments for Cooperative Data Program (CDP) in the amount of $6,000). City of Denton City Council Agenda November 5, 2013 Page 4 C. Consider adoption of an ordinance of the City of Denton authorizing the City Manager or his designee to execute a contract with the Houston- Galveston Area Council of Governments (H -GAC) for the acquisition of one (1) flushing /vacuum trick for the City of Denton Wastewater Collections department; and providing an effective date (File 5393- Purchase of Vacuum /Flushing Trick awarded to Rush Trick Center, Houston in the amount of $98,572 for the cab /chassis and GapVax, Inc. in the amount of $197,475 for the trick body for a total award of $296,047). The Public Utilities Board recommends approval (7 -0). D. Consider adoption of an ordinance authorizing the City Manager to execute an Interlocal Cooperative Purchasing Program Agreement with the City of DeSoto, 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 5368 - Interlocal Agreement with the City of DeSoto). E. Consider adoption of an ordinance authorizing the City Manager to execute an Interlocal Cooperative Purchasing Program Agreement with the North Central Texas Council of Governments (NCTCOG) under Section 791.001 of the State of Texas 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 5387 — Interlocal Agreement with the North Central Texas Council of Governments for Electronic Warrant Payment Services). F. Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager to execute an agreement between the City and Fred Moore Day Nursery School to provide Community Development Block Grant funds for improvements to the facility at 821 Cross Timber Street, Denton, Texas; authorizing the expenditure of funds therefore, not to exceed $268,400; and providing for an effective date. G. Consider approval of the Public Art Committee's recommendation to select Christie Wood as the artist for the sculpture of Pops Carter as public art for the City of Denton; and declare an effective date. The sculpture will cost $29,200 and will be consistent with the City of Denton Public Art policy approved by Resolution R2013 -021, and be funded with Hotel Tax revenues previously authorized and encumbered for such purpose. The Public Art Committee recommends approval with a vote of 6 -0. H. Consider adoption of an ordinance of the City of Denton, Texas, authorizing the Mayor to execute a Second Amendment to Interlocal Cooperation Agreement Street Right -of -way Use License (the "Amendment "), between the Denton County Transportation Authority ( "DCTA ") and the City of Denton, Texas ( "CITY "), as attached hereto and made a part hereof as Exhibit "A ", the amendment amending that certain Interlocal Cooperation Agreement Street Right - of -way Use License ( "Interlocal Agreement "), by and between the City and DCTA, Amendment providing for additional street right -of -way of the CITY to DCTA to constrict, operate and maintain bus shelters and related bus passenger amenities in locations more particularly described in the Amendment; and providing for an effective date. City of Denton City Council Agenda November 5, 2013 Page 5 L Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager or his designee to execute a Contract of Sale (herein so called), as attached hereto and made a part hereof as Exhibit "A ", by and between North Locust Properties, LLC (the "Owner "), and the City of Denton (the "City "), regarding the sale by Owner and purchase by the City of a 2.493 acre tract of land, more or less, situated in the T. Toby Survey, Abstract No. 1288, in the City of Denton, Denton County, Texas, as more particularly described in Exhibit "A" to the Contract of sale (the "Property Interests "), for the purchase price of One Hundred Seventy Two Thousand Seven Hundred One and no /100 dollars ($172,701.00) (the "Purchase Price ") authorizing the City Manager, or his designee, to make an offer to purchase the property interests from the Owner for such purchase price, and execute and deliver any and all other documents necessary to accomplish closing of the transaction contemplated by the Contract of Sale; authorizing the expenditure of funds therefore, and providing an effective date. (The Public Utilities Board recommends approval (7 -0). J. Consider adoption of an ordinance of the City of Denton, Texas, nunc pro tunc, correcting an inadvertent mistake in Ordinance No. 2004 -233 relating to the authority of the Historic Landmark Commission, specifically its adoption of Section 35.7.6.10d of the Denton Development Code; providing for a penalty in the maximum amount of $2,000.00 for violation thereof, providing for severability, savings and supersedure; and providing for an effective date. K. Consider adoption of an ordinance authorizing the City Manager to execute an Interlocal Cooperative Purchasing Program Agreement with the University of North Texas Murphy Center for Entrepreneurship under Section 791.001 of the State of Texas 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 5382 — Interlocal Agreement with the University of North Texas Murphy Center for Entrepreneurship for Leadership Development Training in the amount of $26,400). 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. Consider appointments to the Citizens Bond Advisory Committee for the proposed 2014 Bond Election. B. Consider adoption of an ordinance authorizing execution of a franchise agreement with the City of Denton, acting through its electric utility, granting a franchise to maintain, and operate facilities within the City of Corinth for the delivery and sale of electricity; providing for the payment of a fee for the use of the public rights - of -way; providing that such fee shall be in lieu of other charges; setting forth the term of the franchise; providing for the ratification and retroactive approval of said agreement; and providing an effective date. (First Reading) 6. PUBLIC HEARINGS A. Hold a public hearing and consider adoption of an ordinance regarding a rezoning of approximately 75.3 acres from Neighborhood Residential 2 (NR -2) to a Neighborhood Residential 3 (NR -3) zoning district. The subject property is City of Denton City Council Agenda November 5, 2013 Page 6 generally located on the south of Ryan Road, north of the Kansas City Southern Railroad, approximately 950 feet east of FM1830 and approximately 800 feet west of Forrest Ridge Road. (Z13 -0006) The Planning and Zoning Commission recommends approval (6 -1). B. Hold a public hearing, hold a discussion, and give staff direction regarding the 2013 Water and Wastewater impact fee study. C. Hold a public hearing and consider approval of the proposed siting of an electric substation located east of Masch Branch Road and approximately 0.3 miles south of FM 1173 in the northwestern area of Denton Municipal Electric's certificated service territory, in Denton County, Texas. 7. CITIZEN REPORTS 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 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.) CITY SECRETARY NOTE: THE CITY OF DENTON CITY COUNCIL CHAMBERS IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349 -8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF JDD) BY CALLING 1- 800 - RELAY -TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. AGENDA INFORMATION SHEET AGENDA DATE: November 5, 2013 DEPARTMENT: Finance ACM: Bryan Langley � -A SUBJECT Receive a report, hold a discussion, and give staff direction regarding the proposed 2014 Bond Program. BACKGROUND The City Council and staff held discussions of a 2014 Bond Program during the October 7, 2013 City Council meeting. Based on direction from City Council at this meeting, staff has launched a webpage to accept applications for the Citizen Bond Advisory Committee and solicit additional projects for consideration by the committee. In addition, the City Council gave direction as to the charge for this committee. Based on this direction, a draft resolution creating and charging this committee is attached for review. In addition, a brief presentation is attached and will be presented to allow for any additional City Council discussion and direction prior to the formation of the Citizen Bond Advisory Committee. If you have any questions, or need additional information, please let me know. PRIOR ACTION/REVIEW On October 7, 2013, the City Council discussed the proposed 2014 Bond Program and received presentation from City staff regarding the initial project list. The City Council recommended a fifty (50) member Citizen Bond Advisory Committee with seven appointments by each council member and a committee chair. EXHIBITS 1. Draft Resolution 2. PowerPoint Presentation Respectfully Submitted: Chuck Springer, 349 -8260 Director of Finance EXHIBIT 1 RESOLUTION NO. A RESOLUTION CREATING A SPECIAL CITIZENS BOND ADVISORY COMMITTEE FOR THE PROPOSED 2014 BOND ELECTION; ESTABLISHING A CHARGE FOR THE COMMITTEE; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City Council wishes to ask the citizens of Denton to consider authorizing General Obligation bonds in November 2014 for the purpose of public improvements in the community over the next six years; and WHEREAS, the City Council has determined that it would be advisable to create a Special Citizens Bond Advisory Committee to provide recommendations on the specific projects that may be financed with the General Obligation bonds; and WHEREAS, the City Council requests that the Committee focus on basic facilities and infrastructure as a priority in the bond program, and requests the development of a six -year capital program that addresses regulatory concerns, enhances public safety, improves operational efficiency, promotes energy efficiency and rehabilitates existing strictures to meet current demand; and WHEREAS, while the City Council's intent is to focus on existing facilities and infrastructure, the committee will also need to evaluate new facilities and infrastructure that may have synergistic relationships to the facilities, infrastructure and areas being evaluated; and WHEREAS, the City Council has asked staff to develop a prioritized list of projects that addresses the City Council's goals and strategies as a point of departure for committee evaluation and consideration which is a similar process used by the Citizen Bond Advisory Committee in 2012 and was endorsed as a beneficial tool by the committee leaders in 2012; Now Therefore, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. A Special Citizens Bond Advisory Committee shall be composed of fifty (50) persons who shall reside within the City of Denton, seven of whom shall be appointed by each member of the City Council and the committee chair shall be appointed by The Committee shall perform its functions in accordance with this resolution. SECTION 2. A Special Citizens Bond Advisory Committee shall make recommendations to the City Council on the dollar amounts and capital projects to be considered by the public in the November 2014 election. SECTION 3. The City Council requests the Special Citizens Bond Advisory Committee to consider inclusion of the reconstruction of Fire Station 43 and Fire Station 44 in their recommended capital projects for the November 2014 election. SECTION 4. The City Council requests the Special Citizens Bond Advisory Committee to consider inclusion of the reconstruction of City Streets in the minimum amount of twelve (12) million dollars in their recommended capital projects for the November 2014 election. SECTION 5. The City Council requests the Special Citizens Bond Advisory Committee to consider inclusion of the Magnolia Street Drainage Project Phase two (Hinkle Drive Project) in their recommended capital projects for the November 2014 election. SECTION 6. The City Council requests the Special Citizens Bond Advisory Committee to consider funding for public art as part of the recommended capital projects for the November 2014 election based on the City Council approved public art policy. SECTION 7. The Citizen Bond Advisory Committee appointments will end and the Committee shall be formally dissolved on August 1, 2014. PASSED AND APPROVED this the 19th day of November, 2013. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY IC APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY n-M EXHIBIT 2 2014 Bond Program Communication Program City Website Link from main page Committee volunteer form Preliminary project listing Additional project submission form (through December 20th) • Press Release • Social Media - Twitter and Facebook • eNews Group • DTV • Employee Newsletter Committee Structure * 50 members - 7 appointments by each council member * Chair appointment process discussion * Council agenda item for appointments on November 5thand 19th u Formally appoint committee and approve charge on November 19th Committee Charge u Consider inclusion of following projects: ■ Fire Stations #3 and #4 reconstruction ■ $12 million for street reconstruction ■ Magnolia Street Drainage Phase 2 (Hinkle Project ) • Focus on existing facilities and infrastructure • Recommend overall size, tax rate implications, and projects for 2014 election • Consider public art based on City Council policy u Committee formally ends on August 1, 2014 Draft Schedule Council appoints bond election committee and approves charge - November 19, 2013 Bond Election Committee meetings (6 to 10) - December through May Recommendation to City Council - beginning of June, 2014 City Council discussion of bond election recommendations -June /July, 2014 City Council holds public hearing - August 5, 2014 Ordinance calling bond election - August 6 -18, 2014 (special meeting) Date of Election - November 4, 2014 City Council canvassing of election results - November 12 -17, 2014 (special meeting) 5 AGENDA INFORMATION SHEET AGENDA DATE: November 5, 2013 DEPARTMENT: Streets ACM: Howard Martin, Utilities 349 - 8232 *_ -- SUBJECT Receive a report, hold a discussion, and give staff direction regarding a transportation user fee. BACKGROUND Austin, Corpus Christi, and Bryan are the only cities in Texas known to charge a transportation user fee, also called a street maintenance fee. Two others cities, Arlington and College Station, attempted to charge transportation fees but were unsuccessful. We have included the user fee development brochure and frequently asked questions from the Corpus Christi program Exhibit 1 and 2. Calculation Methodv Austin and Corpus Christi both assess transportation fees on their utility bills and calculate fees in a similar manner, setting a base fee and adjusting it for traffic intensity and customer size. Every single - family residential customer is charged the same fee. Multi - family residential customers are charged per housing unit and assumed to generate a fixed fraction of the car trips of a residential customer. Commercial customer traffic intensity is reflected in car trip factors based on business type, with traffic- intensive businesses like gas stations, fast food restaurants, and drive - through coffee and donut shops having a higher trip factor than lower - traffic businesses like office parks, nursing homes, and warehouses. Both cities use standard trip factor estimations produced by the Institute of Transportation Engineers. In Austin, the trip factor is multiplied by developed land area of a customer; in Corpus Christi the trip factor is multiplied by building floor area. Trip factors describe the number of trips generated by a business per unit of floor area as a multiple of the number of trips generated by a typical single - family house. For example, an apparel store is assigned a trip factor of 3.79, meaning it is expected to generate 3.79 times more car trips than a single - family house of the same size. The median single - family house in Corpus Christi is 1,500 square feet in floor area, which Corpus Christi calls an Equivalent Residential Unit (ERU), so a 15,000 square foot apparel store is equivalent to 10 ERUs [15,000 square feet / 1,500 square feet per ERU]. Thus, that store would be expected to generate 37.9 times more car trips [3.79 trip factor x 10 ERUs] than a typical single - family house and be charged accordingly. Bryan follows a similar calculation method, but then groups commercial customers into small, medium, and large bins with only three corresponding fees. Corpus Christi's transportation fee was adopted in July 2013 and goes into effect in January 2014. Staff has included the Corpus Christi ordinance establishing a street maintenance fee to be implemented by policies, rates, and methodologies established by separate ordinance (Exhibit 3). The revenue from the fee will be dedicated to preventative maintenance like seal coating and overlaying streets that are in relatively good shape. Reconstruction of failed streets will be paid for using bonds. In Corpus Christi, customers in single - family housing will pay $538 a month. Customers in multi - family housing will pay $2.42 a month based on the assumption that a multi - family unit generates 45 percent of the car trips of a typical single - family house. During consideration of their transportation fee, Corpus Christi examined the impact of trip multipliers and building size on large commercial customers. It developed several possible fee scenarios that capped trip factors and maximum building size at various levels before settling on a maximum trip factor of 5.78 and a maximum building size of 118,000 square feet (Exhibit 4). This shields traffic- intensive and very large customers from high fees and shifts revenue generation onto other commercial users. A cap on trip factors will greatly reduces fees for many small traffic- intensive businesses like convenience stores and donut shops, while a cap on building area will affects relatively few but very large businesses. Maintenance Needy Corpus Christi expects to generate about $11.4 million from its transportation fee annually, with about 53 percent of that coming from residential (single- and multi - family) customers and 47 percent from commercial customers. Adjusting this amount for population and assuming similar commercial makeup in Denton, the current Corpus Christi fee stricture would generate about $4.3 million annually. Using the Corpus Christi fee model to generate $8 million annually in Denton, the base transportation fee would be $9.97 per single - family residential customer and $4.49 per multi- family residential customer per month (Exhibit 5). Single - family customers are estimated to provide $3.2 million in revenue (40 percent of total revenue), multi - family customers $1,052,102, (13 percent of total revenue), and commercial customers $3.7 million (47 percent of total revenue). The 2009 Pavement Management Study indicated that the City of Denton should be spending $10 million annually on OCI improvements to maintain the 63 OCI (Exhibit 6). In 2009 the City was spending $3.2 million OCI dollars annually. Since 2009, the expenditures of OCI dollars has increased to approximately $4.8 annually. In addition $20 million in bond funds will be spent on road reconstruction over the next five years. At this current level of funding, we are still losing ground on the OCI of our street system. Factoring in the continued decline in the OCI since 2009, it is estimated that we need to be spending $12.2 million annually to stop the decline in the OCI rating. Staff is recommending between $8 -$12 million per year of additional funding be considered as a target for the maintenance fee to effectively improve the condition of our roadway system. On page 31 of the Pavement Management Analysis, the following recommendation was presented to the City of Denton in 2009: "The City should adopt a policy statement selecting a fixed target for network level of service and acceptable amount of backlog. We suggest an OCI target of 65 to 70, with less than 20% backlog. The 65 to 70 range was selected as the target for two primary reasons: On average an OCI of 65 to 70 is generally accompanied by a backlog of 15% thus providing a high level of service with a manageable backlog. And secondly, on OCI of 65 to 70 provides the travel public with a relatively good roadway network and an economic balance between pavement expenditures and service life (at an OCI of 65, pavements are just entering the steepest part of their deterioration curve)." An annual budget dedicated to roadway rehabilitation of $12.0 to $16.OM is required to achieve this goal. A budget of $15M will achieve an OCI of 69. EXHIBITS 1. Corpus Christi transportation fee brochure 2. Frequently asked questions 3. Corpus Christi street maintenance fee ordinance 4. Trip Factor Index 5. Example fee calculations 6. Year Annual OCI Respectfully submitted: Jim Coulter Water Utilities Director HOW WILL STREET MAINTENANCE BE FUNDED? HOW IS THE FEE DETERMINED? The City pp Council approved a Street Preventative Maintenance Program (SPMP) and adopted a Mainte- nance Fee (SMF) on July 9, 2013. The SMF is a monthly fee that will be collected from residences and business- es within the city limits of Corpus Christi. The revenue generated will be designated for use in the preventative maintenance of the City's street system under the Sp MP. The fee is based on the number of trips a partic- ular land use generates and will be collected through your utility bill. You can expect to see the fee on your utility bill starting in January of 2014. WHY IS THIS FEE NECESSARY? DON'T MY TAXES PAY FOR THIS? Primary funding for certain regular maintenance of the City's street system is through taxes. Tax revenues are allocated to the General Fund which includes Police, Fire, Parks & Recreation and other general government services. Funding for preventative rnairnenance of the City's street system has never received approval or funding before now, whether through taxes or other- wise. The Street Preventative Maintenance Program (SPMP) is an entirely new program. The funds received from the street maintenance fee will be kept separate- ly in a special street fund, and will only be used for the preventative Street maintenance under the new SPMP. oat vwi Customers are assigned to one of two main categories: R g RESIDENTIAL and NON - RESIDENTIAL. • RESIDENTIAL: Single Family customers will be assigned a Trip Factor of 1. Multi- Family customers will be assigned a Trip Factor of 0.45. • NON - RESIDENTIAL customers will multiply the rate times their living area square footage as provided by the Nueces Country Appraisal District (NCAD) divided by the City's median residential square foot- age of 1,500 SF ( "ERU ") and then multiplied by an assigned Trip Factor based on their designated land use. RATE x ERU x TF = Monthly Bill RATE = $5.38 ERU = Equivalent Residential Unit For each dwelling unit of a Residential Property, ERU = 1 For each Non - Residential Property, ERU= SF /1500 SF on a per meter basis. TF = Trip Factor Her designated land use) HOW MUCH CAN I EXPECT TO PAY? RESIDENTIAL Single Family customers will be charged $5.38 per month. MONTHLY BILL= $5.38 RESIDENTIAL Multi- Family customers will be charged $2.42 per month. MONTHLY BILL= $2.42 NON - RESIDENTIAL customers will be billed monthly on a per meter basis. The rate of $5.38 will be multiplied by the living area square footage divided by the City's median residential square footage of 1500 (living area square footage will be capped at 118,000 SF per meter) and then multiplied by the Trip Factor for each location's land usage MONTHLY BILL _ $5.38 x (LIVING AREA SF /1500) x Trip Factor CAN I APPEAL MY FEE? The Utility Business Office UBO ) located on the first floor of the City Hall Building, 1201 Leopard Street, is the main point of contact for all customers regarding the Street Maintenance Fee. CUSTOMERS may contact the UBO to contest their residency, active meter status, or the number of active water meters. NON- RESIDENTIAL CUSTOMERS may also appeal squarefoot- age (SF), land use designation (LUD), and multi- meter/ single business square footage cap application. Call (361) 826 -2489 for more information. CAN I GET A DISCOUNT IF MY INCOME IS LOW? Residential Customers who qualify may request a Low Income Discount through the UBO. For more information contact the Corpus Christi Call Center at: (361) 826 -2489. UErlrr`�fd� �'8frr Phe g,gull of Ilpireveirutalliive rIIf alllllrlli'l "Gllrlli<EIIrIIlc !!is to I'1IIreseiry sire l'u Ilrlllot to upgrade 1111ruellrllllu. 111ireveirulatllve Ilrlllalllllrlllellrllairllc:e IIrIIrIVwwst he doirue uregulllairllly to world For add lion at no, una t on co trip cl: U Corpus Christi Call Center (361)826-2489 or v slt www. t streets AM Pv anion e.voL fort -11 e (361)826-2489 /�Paµ"`✓ik'R'Ta."ee ,ti" 6!ad Abay "r/ �I t of .. Street Pruveni ailV(! Maintenance lFech Pawn". ", /he Wl" r ; "air° K)II I C.)ctob 'Ir 2(J1.;3 EXHIBIT I MAINTENANCE EXTENDING THE LIFE OF OUR STREETS! iwNUi1,t( WHAT IS THE ISSUE? To properly rnaintain the City's street systern, both regular and preventative rnaintenance should occur. The City's Street Department has never received funding for a preventative rnaintenance program until now. Over the last 20 years or so, the Street Department's regular street maintenance has been deferred, and preventative street maintenance has been non existent, to the point that 50% of our City Streets are considered to be in "Fair to Good" condi- tion and 50% are considered to be in "Poor" condi- tion. Now your City Council has taken action to ap- prove a new Street Preventative Maintenance Pro- gram (SPMP) and adopt a new Street Maintenance Fee (SMF) to address the preventative rnaintenance of good City streets (not reconstruction). The fees collected under the SMF will raise $11.4 rnillion dol- lars of the $ 15 rnillion estimated arnount needed to perform yearly preventative rnaintenance. Fees col- lected under the SMF will be used solely for preven- tative street rnaintenance under the SPMP. YOUR STREET SYSTEM The City of Corpus Christi's Street Network consists of Arterial Streets such as Staples and Everhart, Collector Streets such as Aquarius and Acushnet, and Residential Streets which are our neighborhood streets. The total system is approximately 1,204 miles and consists of: Arterial Streets . ............................... 186 miles Collector Streets .............................. 242 miles Residential/ Alleys ............................ 776 miles WHAT ARE THE BENEFITS OF PREVENTATIVE MAINTENANCE? • Preserves streets in good condition • Provides smoother road conditions • Extends street service l ife • Minimizes street l ife cycle cost • Maintains or irnproves roadway safety and rnobility • Increases ability to withstand traffic stresses • SAVES MONEY'I WHAT IS STREET PREVENTATIVE MAINTENANCE? Preventative Maintenance is a planned strategy of cost - effective treatments to an existing roadway systern that preserves the systern, retards future deterioration, and rnaintains or irnproves the functional condition of the systern. Preventative street rnaintenance extends ser- vicelife of structurally sound pavernents, and Is typically applied to pavements in good condition having sign if Ica nt rernaining service life. Examples of preventa- tive treatrents include: SEALING COATING, ASPHALT OVERLAYS, and CRACK SEALING. It cros1V tray to �nrtzf?wtafin, a °cUUA ut ��a��l�:e.��fkithou" tFulit it s P 4o LDYL f?w ha R cr d afitj yt STREET PREVENTATIVE MAINTENANCE PROGRAM (SPMP) The process of selecting streets to work on in the Street Preventative Maintenance Program (SPMP) involves assessment of the overall street condition which in- cludes: pavernent condition, curb & gutter, drainage, ADA (Arnerican Disability Act) requirernents and under- ground uti'liti'es. The SPMP is prirnarily for streets in Fair to Good condi- tion and not for streets in Poor condition. Streets in Poor condition will be considered under a different prograrn because of the extensive reconstructive work needed to be done. Keeping up with the preventative rnaintenance extends the life of the street just as it would your car, and is less expensive in the end. If a street is already beyond the preventative rnaintenance stage, it will require a more extensive (and more costly) repair. Full street recon- struction can be costly and tirneconsurning, therefore preventative rnaintenance beforerecotmtrnctionianeed- ed Under the new SPMP, the City will be able to rnaintain more rniles of roadway in a better condition for longer with fewer funds. WHAT IS A SEAL COATING? Seal Coating is a process to provide a "protective coating' to preserve the pavernent from elements that lead to failures. The protective coating helps to restore the asphalt binder cernent which overti'rne becornes exhausted and allows the pavernent to unravel. The next step of deterioration is rninor cracking which can widen and deepen over ti'rne. If the cracks go untreated, water seeps into the base and darnages the pavernent's load bearing capacity. This is evidenced by the for - rnation of rutting, shifting, and alligator cracking. A chip seal is a thin layer of hot asphalt applied to the street surface and then embedded with small aggregate (rock). The seal coat is expected to rejuvenate and add a wear surface that lasts up to 7 years. WHAT IS AN ASPHALT OVERLAY? An asphalt overlay is applying a new layer of hot rnix asphalt cernent to the street surface, sealing it. Milling Is often needed to match pavernent grades or to remove distressed pavernent. The typical thin overlays are less than 2 inches. Overlays are expected to preserve the life of street pavernent for at least 10 years. SOME STREETS LOOK FINE. WHY DO YOU NEED TO DO ANYTHING TO THEM? Streets may look okay, but actually be at the onset of distress. As soon as streets are constructed, they irnrnediately begin to deteriorate. This is evidenced by the fading of the rich black color to brown and then gray. The next step of deterioration is rninor cracking which widens and deepens over ti'rne. In the beginning the deterioration process is slow and accelerates near the end of pavernent service life. And like your car, if you don't provide preventative rnaintenance or let the rnaintenance go too long, then you will be facing major costs for repairs or replacernent. Street Maintenance Fee FAQs Page I of 5 HOME GOVERNMENTSERMCE8 STREE 'T' OPERAT IONS STREET MAINTENANCE FEE FAQ S Street Operations Street Maintenance Manning Fee Corrections & Appeals Street Maintenance Fee, Estimator Street Maintenance Fee FAQs Street Maintenance Questions Form Extending the Life of Streets, Street Maintenance and Repairs c�' If we have not already answered a question you might have about the street maintenance fee, you can submit your question through the Online Street Maintenance Questions Form, Questions and Answers - View the questions that have been submitted and responses. Communication Plain. Thee latest electronic information on the Street Maintenance Fee is located on the City's website. Y It includes an Online Street Maintenance Fee Estimator so residents and! business owners can figure their estimated fees. The City is also sending out the latest information utilizing Facebook and Twitter, and news releases. Residents without access to social mediia will be able to find handouts at all City Frequently Asked Questions Street Maintenance Fee In an effort to provide you with the very latest street maintenance fee information. the City of Corpus Christi is providing the most frequently asked questions received by staff and Council members. We believe these details will assist residents and business owners in understanding the Street Maintenance Fee. FAQS FOR THE SAMPLE BILL INFORPAATION ON YOUR OCTOBER 2013 UTILITY BILL HOW CAN I DETERMINE HOWTHE ESTIMATED STREET IMAINTENAaNCE FEE ON MY OCTOBER 2013 UTILITY BILL' AS CAL.CuRxrED? - The Street Maintenance Fee charge is calculated as follows: ERU x Trip Factor x $ 5.38, If your land use code is Single Family Residential, your ERU is 1, your Trip Factor is 1 and your Street Maintenance Fee is a flat fee of $5.38 per month per house. Some properfi!es are large enough to have more than one house. These properties will pay $5.38 per house on the property. If your land use code is Multi-family Residential (apartments, condos, townhomes, mobile homes, manufactured homes, & RV parks), your ERU is 1, your Trip Factor is 0.45, and your Street Maintenance Fee is a flat fee of $2.42 per dwelling unit. Individually metered units will pay $2,42. Master-metered properties will pay $2.42 times the number of dwelling units of the complex or community. A Non-Residential customer's Street Maintenance Fee charge is calculated by dividing the Living Area Square Footage provided by the Nueces County Appraisal District by 1500 to get the ERU. Your land use designation has a specific Trip Factor . The Trip Factors have been capped at i A cap, of 118,000 square feet is applied on a per water meter basis. If a single business' square footage exceeds the 118,000 square foot cap and it has multiple meters, 4 is treated as a single metered location. • A Non - Residential customer may call the Utility Business Office to find out what their ERU is or they may visit the NCAD welosite to determine their Living Area Square Footage and can calculate their ERU by dividing the Living Area Square Footage by 1500. • The 3-digit number that appears just before your land use designation in the "IMPORTANT INFORMATION" section of your utility bill is your Rate Table Code. Each land use designation has been set up as an indirvidual entry in the City's Rate Table. The rate for each entry is the $5,38 Street Maintenance Fee Rate times the Trip Factor for that land use. You can divide your estimated bill by your ERU to calculate your Rate Table rate. You can divide that number by $5,38 to get your Trip Factor. WHAT IF I DON'T A ARE E'Vi MY STREET MAINTENANCE FEE CHARGE? - City Council has approved a process whereby citizens may appeal their Street Maintenance Fee, • Only certain, aspects of the fee calculation are appealable. For more information regarding the appeals process, you can go to the Street Maintenance Fee Corrections and Appeals web page, or you may complete the attached Appeal Form and either email it or print and bring it to the Utility Business Office on the first floor of City Hall, Some residential customers may qualify for a Low Income Discount. If you think you may qualify, you can complete the form and turn it in to the Utility Business Office at City Hall (1201 Leopard St.). Qualified residents will receive a 50% discount on their Street Maintenance Fee ONLY for a one -year period and must be approved annually. EXHIBIT 2 http://www,cetexas.comYgovernmentlstreet-o erationslstreet-maiiiten,an.ce-fee-faqslindex 10/31/2013 Street Maintenance Fee FA Qs Page 2 of 5 Libraries, Information will also be WHYIS MY LAND USE DESIGNATION TOTALLY DIFFERENT FROM WHATIWY BUSINESS REALLY included in utility bills as needed. IS? A speaker's bureau made tip of members of the City staff will be • The City is basing its land use designations on information in the Institute of Transportation Engineers Trip available to speak to civic groups, Generation Manual Edition 9 ("Manual"), City Council approved ) the use of 129 Non - residential land use categories Community organizations, from this Manual. businesses, and neighborhood associations. Speaking • Ali Non-Residential properties must be assigned to one of the 129 land uses. engagements can be scheduled • If a, property has a land use that is not one of the 129 approved categories, the City must determine which of the by contacting DeAnna McQueen 129 categories has a traffic pattern Most Closely matching the land use of the property. at deannarn@octexas,corn or (361) 826-2640. WHY AM I RECEIVING A STREET FEE BILL. WHEN I DON'T TAKE ANY CITY SERVICES? • Any property within City Limits which is not exempt and which has living area square footage as defined by the Nueces County Appraisal District is eligible to be charged the Street Maintenance Fee, • Some properties in the far northwest side of town or on the north end of Padre Island may not receive City services, but are subject to the Street Maintenance Fee. Additionally, some properties appear to be occupied, but may not have a utility account. • Where a benefitted property exists which does not otherwise take City services, the property owner will be billed for the Street Maintenance Fee. If there is an occupant other than the property owner using the property, the property owner may request that the Street Maintenance Fee account be placed in that occupant's name. WHEN CAN I FILE AN APPEAL? • The City is prepared to start accepting and processing appeals beginning October 1, 2013. • There is no guarantee an appeal will be approved. The City will process the appeal request and will notify you if the appeal is approved or denied. • The City's goal is that many appeals will be processed before citizens must start paying the Street Maintenance Fee. However, this may not be possible. If a citizen has filed an appeal and the appeal has not been processed by the time billing commences, the citizen is still responsible for paying the fee. If an appeal is approved, the citizen will receive a refund or credit to their utility bill reflective of the adjustment. WHEN WILL. I HAVE TO START PAYING THE STREET IMAINTENANiCE FEE? • As indlcatedl on your October utility bill, the City will begin charging the Street Maintenance Fee on January 1, 2014. WHAT IS A STREETMAIN"IfENANCE FEE? • It is a monthly fee which will be collected from Corpus Christi residents and business owners and which will appear on their monthly utility bills. • The revenue generated is designated to pay for increased City street maintenance. The fee is one part of a four part Street Improvement Plan which is designed to improve street conditions through reconstruction,, rehabilitation, street maintenance, and policy changes. WHY 1,05 A STREET MAINTENANCE FEE NEEDED? • An oil bust in the 1980's led to initial cuts in street department funding which over the years, continued to decline relative to the total Generai Fund budget. During that time, the percentage of funds allocated to the City street maintenance department dropped from 10 percent to 5, percent of the budget. • The street department funding has not increased enough to cover increasing costs to continue to property maintain the City's growing: street system. • Street maintenance has been deferred to the point that 50% of our City streets are considered to be in "Fair to Good" condition and 50% are considered to The in 'Poor" condition. IS THE FEE LEGAL? The City of Corpus Christi is a home rule city. • The Texas Constitution gives the governing body of a home rule city the power to adopt any ordinance that is not limited by or inconsistent with, the Constitution or State law, • The Texas Constitution and statutes are silent as to street maintenance fees. Thus a home rule city has the authority to enact such a fee. The street maintenance fee is a regulatory fee. Home rule cities have full authority, if not a duty, to enact reasonable regulations for the safety and welfare of their citizens. http:llwww.cctexas.comIgovernmentlstree:t-,operationslstTeet-maintenance-f'ee-f'aqslindex 10/31/2013 Street Maintenance Fee FA Qs WHAT ARE THE BENEFIT s OF STREET MAINTENANCE? Preserves streets in good condition Provides smoother road conditions - Extends street service life • Minimizes street life cycle costs • Maintains or improves roadway safety and mobility • Increases ability to withstand! traffic stresses SAVES MONEY! WHAT IS STREET PREVENTATIVE MAINTENANCE? • Preventative maintenance is a planned strategy of cost-effective treatments to an existing roadway system which preserves the system, slows down future deterioration, and maintains or improves the functional condition of the system. • Preventative maintenance extends service life of structurally sound pavements and is typically applied to pavements in good condition having significant remaining service life. • Preventative treatments include seat coating, asphalt overlays, and crack sealing. WHATIDETER LIRE S WHETHER A STREET ISA CANDIDATE FOR THE PREVENTATIVE All PROGRAM? • City streets are inspected and assessed using an industrial, nationally recognized standard - Micro-Paver Pavement Management system. • 20 pavement distresses (type, severity and quantity) are used to determine a Pavement Condition Index, or PCI, for each section of street. • Streets with PCI in the range of 56 to 100 are considered to be in fair to good condition and are candidates for preventative maintenance. DOES BEING A CANDIDATE FOR THE PREVENTATIVE MAINTENANCE PROGRAM MEAN THAT It STREET WILL HAVE MAINTENANCE? • All candidate streets will be evaluated, for overall street condition including: curb & gutter, AIWA improvements, drainage and utilities. The evaluation may cause a street to be considered for other improvements such as reconstruction or utility repair. IS THE FEE GOING TO REPAIR IMY STREET? The fee is for maintenance of good streets only, not repair of streets in poor condition. • Repairs through reconstruction or rehabilitation for arterials and collectors will be done through bonds. • Reconstruction and rehabilitation for residential and local streets is another part of the plan for which the financing mechanism has yet to be determined, WHAT AREAS OF'"rHE CITY WILL. BE DINNER(, MAINTENANCE WORK? - Work will be done on good streets throughout the City (residential and arterials) and will be scheduled on a systematic 7 year cycle work plan. WHAT HAPPENS TO STREETS WHICH HAVE A LOWER PCI? Streets with PCI in the range of 0 to 55 are considered to be in poor condition and are candidates for reconstruction and! rehabilitation. Poor streets will be considered under a future bond program since extensive reconstructive work is needed utilizing a different funding mechanism. The City is working to update lists for potential future bond proposals. HO'W IS THE FEE CALCULATED? Active water customers are assigned to one of two main categories; RESIDENTIAL and NON-RESIDENTIAL. Residential is comprised of both Single Family Residential and Multi - family Residential. Multi - family includes all attached housing (apartments), mobile homes, manufactured homes, and RV parks. Non,-Residential is the commercial and: industrial sectors. • RESIDENTIAL The fee for residents is a $5.38 monthly flat rate per dwelling unit for Single Family Residential and $2.42 per dwelling unit for Multi-family residences. NON-RESIDENTIAL: The calculation of the street maintenance, fee is (square footage/1,500) times the trip factor, times the $5,38 base rate per meter. There is a cap for buildings larger than 118,000 square feet per meter. There Page 3 of 5 http://vvww.cctexas.cotiilgovernment,lstreet-operatioii,slstreetr-maintenance-fee-faqslindex 10/31/2013 Street Maintenance Fee FAQs are 129 ITE (institute of Transportation Engineers) trip factor categories based on land use. The trip factor is capped at 5.78. Single businesses having multiple meters for which the total billable square footage exceeds the 118,000 cap will be billed as if they had a single meter. . Fee= (SF11500)xTFx$5,38 per meter 11191111171. • Residential Street Maintenance Fee Charges are being charged on a per dwelling unit basis, • The Multi-family Residential charge is less than the Single Family Residential charge because the trip factor for Mull is less than that of Single Family on a per dwelill unit basis. • Trip factors are based on information provided in the Institute of Traffic Engineers Trip Generation Manual (Edition 9'). • The ITE Trip Generation Manual (Manual!) is the industry standard source for trip count information by land use. • City Council has approved use of the Manual for the purpose of determining trip factors. The fee applies to properties with active water meters and benefitted properties within the City Limits that do not otherwise pay utilities. • Government -owned properties, public schools, the hospital district, chartered schools and the Regional Transportation Authority are exempt from the fee, (RTA contributes annuaily for street maintenance,) WHY DO NON-PROFITS HAVE TO PAY? • Non-profit agencies are still benefitted properties and are, therefore, subject to the fee. The state limits local governments from approving more than a three cent property tax increase each year which Heaves the City with several options: The presiding City Council could!, raise taxes every year for four years to reach the 12 cents needled, delaying the $15 million in funds to launch the street maintenance program resulting in more streets failing into disrepair. • The City Council could let voters decide through a referendum vote for a 12 cent tax increase. If approved, the additional 12 cents could be earmarked for street maintenance work. • The City Council has discussed putting a referendum to voters, but for now, has approved a Street Maintenance Fee. WHY CAWT THE CITY USE A GAS TAX OR VEHICLE REGISTRATI OIL TO GET i'lilis MONEY? • There is currently no mechanism for charging something similar to a street maintenance fee through gas taxes or vehicle registration. • These options are being addressed by the City, but require legislative action in Austin. WHY ARE THE STATE AND, CITY EXEMPT? - Taxing entities or schools which are financed through public funds are exempt Ibecause the fee would be passed on to taxpayers, which would result in taxpayers paying the street maintenance fee twice: once for their home or business and then again through their property taxes. WILL RESIDENTS WHO DOWT OWN VIEHIC'LES HAVE TO PAY? • Yes, even, if you do not own a vehicle or drive the streets, all residents receive goods and/or services that generate travel on our City street system. WHATIE I DO NIOT AGREE WITH HOW MY FEE IS ESTIMATED? The City Council has approved ordinances which established an appealls process and a Street Maintenance Fee Board of Appeals. Under the appeals process, you can contest your residency status (inside or outside City Limits), active water meter status, or other account related items. A Non-residential customer may Mso contest the number of meters for their property. Additional Non-residential customers may appeal the square footage living area used to calculate their fee, the land use designation used to assign a trip factor, or whether they are a single business with multiple water meters for which the living area square footage exceeds the cap of 118,000. Go to the Corrections and Appeals web page for more information regarding the Street Maintenance Fee corrections or appeals. WILL THE MONEY ONLY BE USED FOR s,rREET MAINTENANCE? - Yes, the City Council voted to create a dedicated Special Revenue Fund (Street Fund) in order to insure street funds are only used on street expenses. Page 4 of 5 http://www.cctexas,comlgovemnientlstreet-operati,onslstrect-inaintenance-f-'(,-e-faqslindex I 1`31/2013 Street Maintenance Fee FAQs HOW LONG WILL 11" BE IN EFFECT? • The ordinance Includes a sunset or expiration for the fee in 10 years HOW MUCH MONEY IS ESTIMATED TO BE RAISED Y` "I STREET MAIN'rENANCIE IFEE? - The street maintenance fee will raise an estimated $11.4 million annually and will be used only for the Street Preventative Maintenance Program. HAT' HAPPENS IF I DON'T PAY? • Failure to pay the street maintenance fee could result in discontinuance of customer utility services. • Delinquent customers may be subject to a lien placed on their properties. WHATOT HIE R TEXAS CITIES IHA,VE STREET MAINTENANCE FEES? - Both Austin and Bryan have had similar fees in place since the 1990's. Return to the Street Maintenance Planning Introduction page. HOME RESIDENTS VISITORS BUSINESS GOVERNMENT PRIVACY/ACCESSIBILITY POLICIES, CONTACT O'S Z� http:llwww,cctexas.co nlgovemmentlstreet-op ration slstreet-maintenane,e-fee--faqslindex 10/31/2013 DRAFT 1 Ordinance establishing rates, policies, and methodologies to implement the street maintenance fee created by separate ordinance. WHEREAS, City Council has established a street maintenance fee by separate ordinance; and WHEREAS, by this ordinance the City Council adopts the policies, rates, and methodologies to implement the street maintenance fee, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. DEFINITIONS. 1) Benefitted Property means a residence; a business; or lot, parcel or property within the city limits of the City that generates motor vehicle trips. 2) Director means the City Manager or designee. 3) Equivalent Residential Unit ( "ERU") means a unit of measurement for the median size of a residence equal to 1,500 square feet. For Residential, an ERU equals one. For Nonresidential, an ERU equals SF /1500 SF. 4) Land Use means one of the 131 land use categories recognized in the Trip Factor Index. 5) Motor Vehicle Trip means each departure from and each arrival to a property by a motor vehicle. 6) Nonresidential Benefitted Property means Benefitted Property not defined as GE)MMernial RP- Sidled -al Repefitted Dreperty nr Residential Benefitted Property under this article. 7) Residential Benefitted Property means a detached single - family residence, attached multi - family housing, or a detached dwelling unit of a mobile home park, recreational vehicle (RV) park, or manufactured home community. 8) Square Footage ( "SF ") means the square footage of improvements designated as "living area" as identified in the records of the Nueces County Appraisal District ( "NCAD "). 9) Street Maintenance Fee ( "Fee") means the fee established by this article imposed against, and collected from, owners or occupants of Benefitted ORD #2 SMF (after 1st reading with Option E -per City Council at 6 -19 -13 workshop) 1 of 8 EXHIBIT 3 Property for the purpose of maintaining the street system of the City. 10) Street Preventative Maintenance Program ( "SPMP") means the street maintenance program, as amended from time to time, funded by the Street Maintenance Fee. 11)Street System means the structures, streets, rights -of -way, bridges, alleys, and other facilities within the city limits of the City that are dedicated to the use of vehicular traffic; the maintenance and repair of those facilities; and the operation and administration of such maintenance and repair under the Street Preventative Maintenance Program. 12) Trip Factor means a principle basis of service measurement, principally derived from the trip generation rates published by the Institute of Transportation Engineers. 13) Trig Factor Index means the table of applied land uses recognized by the City of Corpus Christi for purposes of implementing the Street Maintenance Fee. 14) Utility Customer ( "Customer') means the holder of a city utility account or the person who is responsible for the payment of charges for a Benefitted Property. SECTION 2. FINDINGS. The City Council finds and determines the following: 1) It is appropriate that a Benefitted Property pay the prorated annual cost of the Street System that can reasonably be attributed to the Benefitted Property. 2) The number of Motor Vehicle Trips generated by a Benefitted Property may reasonably be used to estimate the prorated cost of the Street System attributable to a Benefitted Property. 3) The size and use of a property may reasonably be used to estimate the number of Motor Vehicle Trips generated by the property. 4) Based on the best available data, the method of imposing the Street Maintenance Fee reasonably prorates the cost of the Street System among Benefitted Properties. 5) It is reasonable and equitable to impose a set monthly fee per utility meter for each Residential and Nonresidential Benefitted Property in ORD #2 SMF (after 1st reading with Option E - per City Council at 6 -19 -13 workshop) 2 of 8 order to avoid a disproportionate burden on any Residential or Nonresidential Benefitted Property. 6) It is reasonable and equitable to cap the square footage for a Nonresidential Benefitted Property in order to avoid a disproportionate burden on a Nonresidential Benefitted Property. 7) It is reasonable and equitable to cap the Trip Factor for Nonresidential Benefitted Property in order to avoid a disproportionate burden on a Nonresidential Benefitted Property. 8) If available, appraisal district property tax records may be relied on to determine the size of Nonresidential Benefitted Property. 9) It is reasonable and equitable to derive trip generation rates for (`nmmornial RP- SiGleRtial Residential and Nonresidential Benefitted Property as determined and published by the Institute of Transportation Engineers. 10) It is reasonable and equitable to assume that each utility meter in the service area serves a Benefitted Property. SECTION 3. TRIP FACTORS. The Director shall assign to each Benefitted Property a Trip Factor according to the property's use. The Director shall assume for each Nonresidential Benefitted Property the number of trips per day as set by the Institute of Transportation Engineers. The Director conducted a survey of Nonresidential Benefitted Property to more specifically identify land use, in order to assign a more appropriate Trip Factor to the land use categories shown in the Trip Factor Index (Exhibit "A "). The Trip Factor Index will be maintained by the Director or his designee and may be revised from time to time in accordance with this article. For purposes of this article, a property's use does not depend on the property's zoning. If a property fits more than one category of use, the Director shall assign a land use Trip tht MGM -AGGa Fate l ! rofrlr p-p-4c r trhr - A. u -mr-hocr r or f IrNvArn � \ ./ohinl Trips gGRGFatG "I by tho Pr9Por4Yi ORD #2 SMF (after 1st reading with Option E - per City Council at 6 -19 -13 workshop) 3 of 8 SECTION 4. STREET FEE -ONLY ACCOUNT. The Director shall create an account in the City's utility account billing system for any Benefitted Property for which no utility account exists. SECTION 5. FEE CALCULATION. The Street Maintenance Fee shall be calculated based on the followina formula: Rate x ERU x TF = Monthly Bill ERU = Equivalent Residential Unit = 1500 SF. For each dwelling unit of a Residential Benefitted Property, ERU = 1. For each Nonresidential Benefitted Property, ERU = SF /1500 SF on a per meter basis. TF = Trip Factor SECTION 6. RESIDENTIAL BENEFITTED PROPERTY. The Fee for Residential Benefitted Property shall be on the basis of a set fee per '„+ ,,,,;+ tFaGt „r PaFGe4 dwelling unit. For a Residential Benefitted Property, each month a Customer shall pay an amount equal to the following: $5.99 x (1 ERU) x 1.00 (TF) = Monthly Bill (Single family) $5.99 x (1 ERU) x 0.45 (TF) = Monthly Bill (Multi - family) ORD #2 SMF (after 1st reading with Option E - per City Council at 6 -19 -13 workshop) 4 of 8 SECTION 7. NONRESIDENTIAL BENEFITTED PROPERTY. The Director shall determine the Fee for Nonresidential Benefitted Property on the basis of factors that include the trip generation rate published by the Institute of Transportation Engineers for the land uses allowed. For a Nonresidential Benefitted Property, per meter, each month, a Customer shall pay an amount equal to the following: $5.99 x (SF /1500 SF) x TF = Monthly Bill The Director shall determine the square footage for a Nonresidential Benefitted Property based upon building square footage of property as recorded by the Nueces County Appraisal District. If appraisal district records are unavailable, the Director may determine the size of a Nonresidential Benefitted Property from the best available information. Where the square footage for a Nonresidential Benefitted Property exceeds 48999 59,000 square feet on a per meter basis, the Director will consider and determine the square footage for that property to be 199,999 59,000 square feet per meter. Where the Trip Factor for a Nonresidential Benefitted Property exceeds 4-6 3.78, the Director will consider and determine the Trip Factor to be 4� 3.78. Where multiple water meters exist on the property, square footage will be distributed among the meters using the best available information. SECTION 8. BILLING AND COLLECTION OF FEE. The Street Maintenance Fee shall become effective January 1, 2014. Beginning January 1, 2014, fees will be billed and collected each month on the utility bill for each Benefitted Property. Payment is due upon receipt of the bill. The Utility Customer is responsible for apportionment of Fees to any person or persons leasing units of the Benefitted Property. SECTION 9. RECOVERY OF UNPAID FEE. The City may recover a Street Maintenance Fee that is not paid when due in an action at law. The City may discontinue utility services to a user who fails to pay the Fee when due. SECTION 10. STREET MAINTENANCE FUND. The City has created a special revenue fund known as the Street Fund. All fees collected by the City for the purpose of maintenance of the Street System shall be ORD #2 SMF (after 1st reading with Option E - per City Council at 6 -19 -13 workshop) 5 of 8 deposited in the Street Fund. It will not be necessary for the expenditures from the Fund to specifically relate to any particular property from which the fees were collected. The Director shall provide to the City Council an annual report of the Street Fund. Every year the Director shall provide City Council a report on the progress of the Street Preventative Maintenance Program (SPMP) and publish an updated three -year map of street candidates to be considered for the maintenance program. SECTION 11. RULES. The Director shall adopt rules necessary for the administration of this article and the Street Maintenance Fee. The Director shall be responsible for administration of this article; developing all rules and procedures necessary to administer all provisions of this article, developing maintenance programs; and establishing Street System criteria and standards for the operation and maintenance of the Street System. SECTION 12. APPEALS. OF TRIP FAGT-OR owl ■ A reduced fee under this section is prospective only. A Customer may not receive a refund resulting from a reduction under this section. SECTION 13. DISPOSITION OF FEES AND CHARGES. The fee paid and collected by virtue of this article shall not be used for the general or government proprietary purposes of the City, except to pay for the equitable share of the cost of accounting, management and government thereof. Other than as described above, the fees and charges shall be used solely to pay for the cost of operation, administration, planning, engineering, development of guidelines and controls, inspection, maintenance, repair, improvement, and renewal of the Street System and the costs incidental thereto. ORD #2 SMF (after 1st reading with Option E - per City Council at 6 -19 -13 workshop) 6 of 8 SECTION 14. LOW- INCOME DISCOUNT. A Customer who is eligible may apply for a discounted fee. A Customer shall provide proof of eligibility in accordance with the rules and procedures established by the Director. A Customer shall establish eligibility for a discounted fee on an annual basis. The Director shall adopt rules for the administration of this section, including acceptable methods for showing and determining eligibility for a low- income discount. A reduced fee under this section is prospective only. A Customer may not receive a refund resulting from a reduction or discount under this section. SECTION 15. EXEMPTIONS. This article does not apply to a city, county, state, federal agency or department, hospital district, publicly funded independent school district or charter school, public institution of higher education, or regional transit authority. SECTION 16. EFFECTIVE PERIOD. This Ordinance takes effect immediately upon its passage and continues for ten years. This Ordinance ceases to have effect ten years from date of its final passage, unless further Council action is taken to extend this Ordinance. SECTION 17. LIABILITY. This article does not create additional duties on the part of the City. This article does not waive the City's immunity under any law. ATTEST: Armando Chapa City Secretary CITY OF CORPUS CHRISTI Nelda Martinez Mayor ORD #2 SMF (after 1st reading with Option E - per City Council at 6 -19 -13 workshop) 7 of 8 That the foregoing ordinance was read for the first time and passed to its second reading on this the day of , 2013, by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb That the foregoing ordinance was read for the second time and passed finally on this the day of 2013, by the following vote: Nelda Martinez Chad Magill Kelley Allen Colleen McIntyre Rudy Garza Lillian Riojas Priscilla Leal Mark Scott David Loeb PASSED AND APPROVED, this the ATTEST: Armando Chapa City Secretary day of '2013. Nelda Martinez Mayor ORD #2 SMF (after 1st reading with Option E - per City Council at 6 -19 -13 workshop) 8 of 8 TRIP FACTOR INDEX 9/10/2013 1 of 3 EXHIBIT 4 ITE Code Based on ITE Trip Generation Manual Ed. 9 Land Use Trip Factor Capped Trip Factor (5.78) Residential 1 210 Single Family Residential 1.00 1.00 2 250 Multi- family Residential 0.45 0.45 Non - Residential 1 440 Adult Cabaret 40.07 5.78 2 311 All Suites Hotel 1.03 1.03 3 640 Animal Hospital /Veterinary Clinic 5.03 5.03 4 876 Apparel Store 3.79 3.79 5 879 Arts and Crafts Store 5.94 5.78 6 493 Athletic Club 4.39 4.39 7 948 Automated Car Wash 11.41 5.78 8 942 Automobile Care Center 1.92 1.92 9 943 Automobile Parts & Service Center 5.68 5.68 10 843 Automobile Parts Sales 6.50 5.78 11 453 Automobile Racetrack 1.04 1.04 12 841 Automobile Sales 3.10 3.1 13 865 Baby Superstore 2.88 2.88 14 433 Batting Cages 7.93 5.78 15 872 Bed and Linen Superstore 4.76 4.76 16 868 Book Superstore 15.08 5.78 17 437 Bowling Alley 3.50 3.5 18 940 Bread /Donut /Bagel Shop w/ Drive - through Window 32.17 5.78 19 939 Bread /Donut /Bagel Shop w/o Drive - through Window 50.89 5.78 20 812 Building Materials and Lumber Store 4.57 4.57 21 312 Business Hotel 1.53 1.53 22 770 Business Park 1.00 1 24 566 Cemetery 0.20 0.2 25 560 Church 1.40 1.4 26 630 Clinic 2.95 2.95 27 937 Coffee /Donut Shop with Drive - through Window 85.99 5.78 28 938 Coffee /Donut Shop with Drive - through Window and no indoor s 189.08 5.78 29 936 Coffee /Donut Shop without Drive - through Window 57.35 5.78 30 021 Commercial Airport 17.42 5.78 31 811 Construction Equipment Rental Store 0.99 0.99 32 852 Convenience Market (Open 15 -16 hours) 53.81 5.78 33 851 Convenience Market (Open 24 Hours) 80.32 5.78 34 853 Convenience Market w/ Gasoline Pumps 103.71 5.78 35 920 Copy, Print and Express Ship Store 11.38 5.78 36 714 Corporate Headquarters Building 0.84 0.84 37 160 Data Center 0.10 0.1 38 565 Day Care Center 5.78 5.78 39 875 Department Store 2.42 2.42 40 857 Discount Club 4.48 4.48 41 869 Discount Home Furnishing Superstore 2.31 2.31 42 854 Discount Supermarket 10.07 5.78 43 454 Dog Racetrack 1.02 1.02 1 of 3 EXHIBIT 4 TRIP FACTOR INDEX 9/10/2013 2of3 ITE Code Based on ITE Trip Generation Manual Ed. 9 Land Use Trip Factor Capped Trip Factor (5.78) 44 925 Drinking Place 13.28 5.78 45 912 Drive -in Bank 12.99 5.78 46 896 DVD /Video Rental Store 13.60 5.78 47 863 Electronics Superstore 4.73 4.73 48 520 Elementary School 1.62 1.62 49 823 Factory Outlet Center 3.03 3.03 50 934 Fast -Food Restaurant w/ Drive - through window 56.64 5.78 51 933 Fast -Food Restaurant w/o Drive - through window 72.22 5.78 52 935 Fast -food Restaurant with Drive - through Window and no Indoor Seating 44.99 5.78 53 815 Free - Standing Discount Store 6.25 5.78 54 813 Free - Standing Discount Superstore 5.65 5.65 55 890 Furniture Store 0.53 0.53 56 817 Garden Center 8.77 5.78 57 944 Gasoline /Service Station 53.81 5.78 58 945 Gasoline /Service Station w/ conv. Mkt. 103.71 5.78 59 946 Gasoline /Service Station w/ conv. Mkt. & car wash 103.71 5.78 60 022 General Aviation Airport 0.77 0.77 61 120 General Heavy Industrial 0.16 0.16 62 110 General Light Industrial 0.56 0.56 63 710 General Office Building 0.89 0.89 64 430 Golf Course 0.20 0.2 65 432 Golf Driving Range 5.62 5.62 66 918 Hair Salon 3.23 3.23 67 816 Hardware /Paint Store 6.16 5.78 68 492 Health /Fitness Club 3.21 3.21 69 530 High School 1.07 1.07 70 152 High -Cube Warehouse 0.15 0.15 71 932 High- Turnover (Sit -Down) Restaurant 14.00 5.78 72 862 Home Improvement Superstore 4.03 4.03 73 610 Hospital 1.29 1.29 74 310 Hotel 1.66 1.66 75 130 Industrial Park 0.57 0.57 76 030 Intermodal Truck Terminal 0.79 0.79 77 540 Junior /Community College 2.27 2.27 78 441 Live Theater 0.67 0.67 79 591 Lodge /Fraternal Organization 16.44 5.78 80 140 Manufacturing 0.32 0.32 81 420 Marina 0.57 0.57 82 897 Medical Equipment Store 0.63 0.63 83 720 Medical - Dental Office Building 2.89 2.89 84 522 Middle School /Junior High School 1.45 1.45 85 431 Miniature Golf Course 1.18 1.18 86 151 Mini - Warehouse 0.25 0.25 87 562 Mosque 11.40 5.78 88 320 Motel 1.18 1.18 2of3 TRIP FACTOR INDEX 9/10/2013 3of3 ITE Code Based on ITE Trip Generation Manual Ed. 9 Land Use Trip Factor Capped Trip Factor (5.78) 89 443 Movie Theater w/o Matinee 8.64 5.78 90 444 Movie Theater with Matinee 9.78 5.78 91 445 Multiplex Movie Theater 11.25 5.78 92 435 Multipurpose Recreational Facility 3.35 3.35 93 580 Museum 0.52 0.52 94 818 Nursery (Wholesale) 3.04 3.04 95 620 Nursing Nome 0.80 0.8 96 750 Office Park 0.90 0.9 97 867 Office Supply Superstore 3.40 3.4 98 866 Pet Supply Superstore 5.37 5.37 99 881 Pharmacy /Drugstore w/ Drive - through window 10.18 5.78 100 880 Pharmacy /Drugstore w/o Drive - through window 9.46 5.78 101 536 Private School (K -12) 4.60 4.6 102 534 Private School (K -8) 10.12 5.78 103 931 Quality Restaurant 9.32 5.78 104 941 Quick Lubrication Vehicle Shop 6.34 5.78 105 491 Racquet /Tennis Club* 3.77 3.77 106 495 Recreational Community Center 2.90 2.9 107 842 Recreational Vehicle Sales 2.54 2.54 108 760 Research & Development Center 0.66 0.66 109 330 Resort Motel 0.71 0.71 110 947 Self- Service Car Wash 18.36 5.78 111 820 Shopping Center 4.37 4.37 112 715 Single Tenant Office Building 1.22 1.22 113 488 Soccer Complex 11.53 5.78 114 826 Specialty Retail Center 4.30 4.3 115 861 Sporting Goods Superstore 3.69 3.69 116 850 Supermarket 12.93 5.78 117 561 Synagogue 1.23 1.23 118 490 Tennis Courts 0.08 0.08 119 848 Tire Store 2.61 2.61 120 849 Tire Superstore 2.09 2.09 121 864 Toy /Children's Superstore 5.45 5.45 122 810 Tractor Supply Store 2.37 2.37 123 950 Truck Stop 13.63 5.78 124 814 Variety Store 6.73 5.78 125 911 Walk -In Bank 12.13 5.78 126 150 Warehousing 0.41 0.41 127 414 Water Slide Park 141.06 5.78 128 010 Waterport /Marine Terminal 0.46 0.46 129 1 860 lWholesale Market 0.57 1 0.57 3of3 Example Transportation Fee Calculations Denton $8 million in annual revenue fee level, Corpus Christi trip factor and building area caps Trip Factor Building Area Monthly Fee Monthly Fee Example Type ITE Category Trip Factor (cappedat5.78) Building Area (capped at 118,000) Uncapped Capped Single-family house 1.00 1.00 $9.97 $9.97 Single Family Residential ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Multi-family unit 0.45 0.45 $4.49 $4.49 Multi-family Residential -------------------------------------- Walmart ----------------------------------------------------------------------------------------------------------------------------------------------------- 5.65 5.65 159,952 118,000 $6,007 $4,431 Rayzor Ranch North Free-Standing Discount Superstore ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Sally Beauty Headquarters 0.89 0.89 203,196 118,000 $1,202 $698 Colorado at Brinker General Office Building - - - - - - - - - - Walgreens Walgreens - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 10.18 - - - - - - - - - - - - - - - - - - - 5.78 - - - - - - - - - - - - - - - - - - - 13,833 - - - - - - - - - - - - - - - - - - - - - - 13,833 - - - - - - - - - - - - - - - - - - $936 - - - - - - - - - - - - - - $531 Carroll at University Pharmacy/Drugstore w/ Drive-through window --------------------------------------------------------------------------------------------------------------------------------------------------- Peterbilt Plant 0.56 0.56 631,673 118,000 $2,351 $439 Airport at Precision - - ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- General Light Industrial Value Place Extended Stay 1.03 1.03 43,097 43,097 $295 $295 1-35 at Worthington All Suites Hotel -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- QuikTrip 103.71 5.78 4,847 4,847 $3,341 $186 Carroll at Eagle Convenience Market w/ Gasoline Pumps ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Frame Street Self Storage 0.25 0.25 53,327 53,327 $89 $89 Frame at Mingo Mini-Warehouse North Texas Bone &Joint -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 2.89 2.89 4,493 4,493 $86 $86 Colorado, W side of DRIVIC - - - ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Medical-Dental Office Building Cornerstone Car Wash 18.36 5.78 2,200 2,200 $268 $85 Loop 288 at Hummingbird Self-Service Car Wash ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Denton Donuts 50.89 5.78 1,018 1,018 $344 $39 Carroll at University Bread/Donut/Bagel Shop w/o Drive-through window Based on Denton Central Appraisal District building area and ITE Trip Generation Manual Ed. 9 Land Use Exhibit 5 Figure 17 —5 Year Annual OCI By examining the differences between the various budgets and OCI results, the benefits of maintaining the system at its current level of service may be compared against letting the system deteriorate and then attempting to rebuild it (essentially the cost of the Do Nothing option in terms of returning the system back to its original OCI). The amount of cost savings for Denton may be estimated at: 1. The Unlimited budget raises the OCI from 63 to a peak of 92 and costs approximately $160M or $5.5M per point increase (63 = starting OCI, 92 = Final OCI, $160M / (92 -63) _ $5.5M per OCI point raised). 2. The $10.OM annual budget maintains the OCI at 63 and invests approximately $50M over 5 years. 3. The do nothing drops the OCI from 63 to 52 for an 11 point OCI drop. At $5.5M per point (as developed in item 1. above) this equates to $60M being required to return the system to an OCI of 63. (63 -52) x $5.5 /pt = $60M 4. The cost to maintain the system on an annual basis therefore $10M dollars less than letting it deteriorate and then attempting to rebuild the network ($60M - $50M = $10M). IDIS Iiifr(t�vtructure Dlariageinerit Services Denton Report Revldoc page 27 AGENDA DATE DEPARTMENT: ACM: SUBJECT AGENDA INFORMATION SHEET November 5, 2013 Materials Management Bryan Langley , -A Questions concerning this acquisition may be directed to Phil Williams at 349 -8487 Consider adoption of an ordinance of the City of Denton, Texas authorizing the expenditure of funds for payments by the City of Denton for electrical energy transmission fees to those cities and utilities providing energy transmission services to the City of Denton; and providing an effective date (File 5388- Electrical Energy Transmission Fees for Fiscal Year 2013 -14 in the total amount of $2,856,319.94). The Public Utilities Board recommends approval (7 -0). FILE INFORMATION The Public Utility Regulatory Act of 1995 (PURA 95) required the development of a new statewide mechanism for electric transmission service in Texas. PURA 95 also placed municipal utilities under the jurisdiction of the Public Utility Commission of Texas (PUCT) for matters related to transmission. As a result, the Denton Municipal Electric Utility has been ordered by the PUCT to pay various other electric utilities in the state specific fee amounts. Purchase orders issued by the City provide the authority required by the City Charter to make those payments. These purchase orders will encumber funds estimated as costs for services through September 2014. No funds will actually be expended until invoices are received, reviewed, and approved. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On October 14, 2013, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. RECOMMENDATION Approve the payment of electrical energy transmission fees to the following cities and utilities in the amounts shown below for a total award of $2,856,319.94. Entity Amount Cross Texas Transmission $ 266,151.24 Electric Transmission Texas $ 499,378.62 Lone Star Transmission $ 406,253.77 Lower Colorado River Authority $1,268,545.00 Sharyland Utilities $ 160,091.75 Texas Municipal Power Agency $ 87,324.53 Wind Energy Transmission Texas $ 168,575.03 Agenda Information Sheet November 5, 2013 Page 2 PRINCIPAL PLACE OF BUSINESS Cross Texas Transmission Austin, TX Electric Transmission Texas Canton, Ohio Texas Municipal Power Agency Bryan, Texas Wind Energy Transmission Texas Austin, TX Lone Star Transmission Austin, TX Lower Colorado River Authority Houston, Texas Sharyland Utilities Midland, TX ESTIMATED SCHEDULE OF PROJECT These fees are estimated for electric transmission services through September 2014 FISCAL INFORMATION Funds to meet these regulatory fee obligations were budgeted in 2013 -2014 budget account 600100.6072.5650A. Requisitions have been entered in the Purchasing software system. EXHIBITS Exhibit 1: Public Utilities Board Draft Minutes Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance 1 AIS -File 5388 Exhibit 1 1 DRAFT MINUTES 2 PUBLIC UTILITIES BOARD 3 October 14, 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, October 14 at 9:00 a.m. in the Service Center Training Room, City of Denton Service 8 Center, 901A Texas Street, Denton, Texas. 9 10 Present: Chairman Dick Smith, Vice Chair Billy Cheek, Secretary Randy 11 Robinson, Leonard Herring, Phil Gallivan Barbara Russell and Lilia 12 Bynum 13 14 Ex Officio Members: Howard Martin, ACM Utilities 15 16 Absent: George Campbell City Manager 17 18 OPEN MEETING: 19 20 CONSENT AGENDA: 21 22 7) Consider recommending adoption of an Ordinance of the City of Denton, Texas authorizing 23 the expenditure of funds for payments by the City of Denton for electrical energy 24 transmission fees to Cross Texas Transmission (CTT), Electric Transmission Texas (ETT), 25 Lone Star Transmission (LST), Lower Colorado River Authority (LCRA), Sharyland 26 Utilities (SHRY), Texas Municipal Power Agency (TMPA), and Wind Energy Transmission 27 Texas (WETT) for providing energy transmission services to the City of Denton; and 28 providing an effective date (File 5388 -2013 CTT- $266,151.24 / ETT- $499,378.62 / LST- 29 $406,253.77 / LCRA- $1,268,545.00 / SHRY- $160,091.75 / TMPA- $87,324.53 / WETT- 30 $168,575.03 — Total Amount of $2,856,319.94). 31 32 Board Member Herring knows the $2.8 million is through ERGOT. We also get money 33 when substations are built because a fee is charged. Do we know the net effect, are we 34 paying more out than we are getting in. David Wilson, DME Business Manager, stated about 35 $3 million a year is coming in. 36 37 Gallivan asked where all these lines are. Williams answered that the majority of these were 38 approved by the Public Utility Commission for CRES projects from the West Texas to the load 39 centers. 40 41 There was some further discussion. 42 43 Martin added that this was looked at and legislatively these payments are required. There is 44 really no option to not pay these. Just like others are required to pay their share of our lines we 45 are required to pay too. Some time ago the items that are legislatively or regulatory required that 46 we pay, they were taken off of the Public Utilities Board and City Council for approval since Draft Minutes of the Public Utilities Board Meeting October 14, 2013 Page 2 of 2 1 there is no option. There has been talk to do the same with these payments but have not at this 2 point. 4 Motion was made by Board Member Cheek with the second by Board Member Robinson. 5 The vote was 7 -0 approved. 6 7 Adjournment 10:26 a.m. ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE EXPENDITURE OF FUNDS FOR PAYMENTS BY THE CITY OF DENTON FOR ELECTRICAL ENERGY TRANSMISSION FEES TO THOSE CITIES AND UTILITIES PROVIDING ENERGY TRANSMISSION SERVICES TO THE CITY OF DENTON; AND PROVIDING AN EFFECTIVE DATE (FILE 5388- ELECTRICAL ENERGY TRANSMISSION FEES FORFISCAL YEAR 2013- 14 IN THE TOTAL AMOUNT OF $2,856,319.94). WHEREAS, in order to comply with the legislative requirements contained in the Utility Regulatory Act of 1995, for the payment for energy transmission services fees, the City of Denton is required to pay such fees imposed by the Public Utilities Commission of Texas to the seven listed utilities set forth in Exhibit "A "; and WHEREAS, the City Manager has reviewed and recommended that the City Council approve and authorize the payment of such fees; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The expenditure of funds in the amount of $2,856,319.94 to be paid to the listed utilities in the specified amount shown on Exhibit "A ", which is attached hereto and made a part of this ordinance for all purposes, is hereby authorized. SECTION 2. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 5388 to the City Manager of the City of Denton, Texas, or his designee. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2013. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY I APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY M. 3 -ORD -FILE 5388 EXHIBIT "A" Entity Amount Cross Texas Transmission $ 266,151.24 Electric Transmission Texas $ 499,378.62 Lone Star Transmission $ 406,253.77 Lower Colorado River Authority $1,268,545.00 Sharyland Utilities $ 160,091.75 Texas Municipal Power Agency $ 87,324.53 Wind Energy Transmission Texas $ 168,575.03 Total $2,856,319.94 AGENDA DATE DEPARTMENT: ACM: SUBJECT AGENDA INFORMATION SHEET November 5, 2013 Materials Management Bryan Langley �_A Corr se i'0 geu..A Questions concerning this acquisition may be directed to Kevin Gunn at 349 -8595 Consider adoption of an ordinance authorizing the City Manager to execute a Cooperative Purchasing Program Agreement with the North Central Texas Council of Governments ( NCTCOG) under Section 791.001 of the State of Texas Government Code, and to authorize the City of Denton to participate in the NCTCOG Cooperative Data Program; authorizing the expenditure of funds therefor; and declaring an effective date (File 5355- Cooperative Program Agreement with the North Central Texas Council of Governments for Cooperative Data Program (CDP) in the amount of $6,000). FILE INFORMATION This Agreement will allow the City of Denton to access the North Central Texas Council of Governments ( NCTCOG) Cooperative Data Program (CDP) content and services which include: Geographic Information Services (GIS) data, Land Use Inventory, Census Data, Development Monitoring, Population Estimates, Housing Estimates, Small Area Estimates (by industry sector), and Technical Assistance. The data allows staff to understand, interpret, analyze, and visualize relationships, patterns, and trends in urban areas of Dallas, Fort Worth, and Denton. This information is used to assist staff in making informed decisions regarding demographics, census, real estate site selections, route corridor selections, evacuation planning, conservation, and environmental issues. Section 791.001 of the Government Code requires that all interlocal contracts must be authorized by the governing body, regardless of the dollar amount. The only exception to this is municipally owned electric utilities -these entities have a $100,000 threshold before authorization by the governing body is required. RECOMMENDATION Approve a Cooperative Data Program Agreement with the North Central Texas Council of Governments in the amount of $6,000. PRINCIPAL PLACE OF BUSINESS North Central Texas Council of Governments Arlington, TX Agenda Information Sheet November 5, 2013 Page 2 ESTIMATED SCHEDULE OF PROJECT This agreement will be effective when signed and will remain in effect until September 30, 2014. The agreement will automatically renew for successive one (1) year terms unless sooner terminated in accordance with Article 6 of the Agreement. FISCAL INFORMATION The services provided under this agreement will be funded from operating account 800300.6504. EXHIBIT Exhibit 1: Ordinance and Cooperative Participation Agreement Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance 1 -AIS -File 5355 ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A COOPERATIVE PURCHASING PROGRAM AGREEMENT WITH THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS ( NCTCOG) UNDER SECTION 791.001 OF THE STATE OF TEXAS GOVERNMENT CODE, AND TO AUTHORIZE THE CITY OF DENTON TO PARTICIPATE IN THE NCTCOG COOPERATIVE DATA PROGRAM; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND DECLARING AN EFFECTIVE DATE (FILE 5355- COOPERATIVE PROGRAM AGREEMENT WITH THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS FOR COOPERATIVE DATA PROGRAM (CDP) IN THE AMOUNT OF $6,000). THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager or his designee is hereby authorized to execute the Cooperative Data Program Public Entity Participation Agreement with the North Central Texas Council of Governments ( NCTCOG) under Section 791.001 of the Texas Government Code, a copy of which is attached hereto and incorporated by reference herein (the "Agreement'). SECTION 2. The City Manager or his designee is authorized to expend funds pursuant to the Agreement for the purchase of various goods and services. SECTION 3. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 5355 to the City Manager of the City of Denton, Texas, or his designee. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2013. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY nim APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 2 -ORD -File 5355 EXHIBIT 1 NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS COOPERATIVE DATA PROGRAM PUBLIC ENTITY PARTICIPATION AGREEMENT This Agreement ( "Agreement ") is made and entered into on the day of w_, 2013, between the North Central Texas Council of Governments ( "NCTCOG "), and City of Denton, Texas, ( "Participant "). The purpose of this Agreement is to outline the terms and conditions of Participant's access to and participation in NCTCOG's Cooperative Data Program (CDP). Whereas, NCTCOG collects, stores, maintains, updates, enhances, and conducts quality control activities on data used individually by member governments and other entities across the region for local and regional projects; Whereas, NCTCOG's data collection, enhancement and dissemination efforts provides added value to its member governments and the NCTCOG region in support of local and regional projects by making available high quality, enhanced data through integrated tools; Whereas, in the past, these data collection, enhancement, and dissemination efforts were supported through a variety of state and federal grants; however, the funding from those sources has either diminished or been eliminated; Whereas, in order for NCTCOG to continue to provide the data collection, enhancement, and dissemination available to member governments, additional funding sources are necessary; Whereas, the Cooperative Data Program was developed as a mechanism to provide sufficient funds for NCTCOG to continue to provide data collection, enhancement and dissemination to member governments and other entities in support of local and regional projects; Whereas, without funding through the Cooperative Data Program, NCTCOG's historical data collection, enhancement, and dissemination efforts that the member governments and other entities have come to rely on would cease to exist in its present form; Whereas, Participant is desirous of participating in NCTCOG's Cooperative Data Program in order to ensure NCTCOG has sufficient funding to continue to provide these value -added services to the region and obtain access as a participant to high - quality, enhanced data through integrated tools developed by NCTCOG. Whereas, NCTCOG and Participant are local governmental entities pursuant to the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, and as such may contract with one another for the provision of governmental functions and services of mutual interest. Now, therefore, NCTCOG and Participant agree as follows: Article I. Definitions 1. "Cooperative Data Program" or "CDP" means a user - supported system developed by NCTCOG to facilitate efficient data collection, enhancement, and dissemination. 2. " NCTCOG Content" means data, GIS layers, reports, maps, and other informational items developed or enhanced by NCTCOG. 3. " NCTCOG Software" means computer applications, interactive websites, online tools, and any other electronic mechanism developed by NCTCOG to facilitate access to data. North Central Texas Council of f Governments Page 1 Cooperative Data Program Participation Agreement EXHIBIT 1 4. "Participant" means an organization that voluntarily joins the Cooperative Data Program, 5. "Participant's Authorized User" or "User" means an employee of or student at a participant organization. 6. "Third -Party Content" means data, GIS layers, reports, maps, and other informational items developed by an organization other than NCTCOG. Article II. Term 1. The term of this Agreement is from October 1, 2013 to September 30, 2014, unless terminated as provided herein. 2. The term of this Agreement shall be automatically renewed for as many successive one year periods upon payment of the applicable Participant Fee by Participant prior to the expiration of the term of this Agreement, unless otherwise terminated under the provisions herein. Article III. Participant Fee 1. NCTCOG shall periodically publish a Schedule of Fees in advance of the upcoming Fiscal Year for the CDP. The applicable Schedule of Fees is included as Attachment 1, which is incorporated herein by reference. 2. The Schedule of Fees may be updated from time to time at NCTCOG's discretion. Any increase or decrease in the applicable Participant Fee shall not become effective until the next renewal period. 3. Participant is a City with 116,950 population and agrees to pay a Participant Fee of $6,000.00 to NCTCOG for participation in the CDP Program. Population is determined by NCTCOG through NCTCOG's Annual Population Estimates Program. 4. Any fees paid hereunder are non - refundable. 5. The performance of governmental functions or services under this Agreement are being paid with current revenues available to the paying party. Article IV. Cooperative Data Program Elements 1. Upon payment of the applicable Participant Fee, Participant shall be granted access to CDP Content and services as described herein through a web -based interface allowing Participant and its Users to access the content remotely, including but not limited to the following data elements: North Central Texas Council of Governments Page 2 Cooperative Data Program Participation Agreement EXHIBIT 1 a. GIS Data Clearinghouse — website providing download of GIS files including census geographies, city boundaries, major developments and features, ISD boundaries, and land use. b. Land Use — inventory of land based on use such as residential, commercial and industrial. c. Census Data — processed decennial census and American Community Survey data including characteristics such as race, age, income, household type, and educational attainment. d. Development Monitoring — identification and tracking of developments with at least 80,000 square feet. e. Population Estimates — annual, current -year population estimates for cities and counties. f. Housing Estimates — annual, current -year estimates by unit type (single family, multi- family, other) for cities. g. Small area Estimates — estimates of population and employment by industry sector (goods producing, services providing, and retail) for census tracts, cities and counties, h. Daytime Population — estimated number of people in a city during normal business hours. i. Technical Assistance — staff shall provide responses to inquiries related to NCTCOG data by phone and email, subject to staffing and resource availability during regular business hours. 2. NCTCOG shall periodically publish the Content, Services and Data available through the CDP, which is subject to change at NCTCOG's discretion. Web -based access to the CDP is subject to and may be limited or not available during periods of routine network maintenance or Internet service disruptions not under the control of NCTCOG. Article V. Use of Data /Restricted Uses Participant shall be granted a non - exclusive, non - transferable right to use the NCTCOG Content and Software, and any Third -Party Content made available to NCTCOG for inclusion in the CDP, for its own internal business purposes. Participant shall only use the NCTCOG Software, NCTCOG Content, and Third -Party Content as incorporated into the CDP and may not implement or use any NCTCOG Software, NCTCOG Content, or Third -Party Content after expiration or termination of this Agreement. Participant agrees it shall not reproduce any element of NCTCOG Software, Content or Third -Party Content except as may be expressly provided in this Agreement. 2. Access to NCTCOG Software and Content is subject to the terms of this Agreement. Access to Third -Party Content is subject to the terms and conditions of Third -Party providers, if applicable. 3. Participant agrees to use Content, Services, and Data from the CDP only as authorized in this Agreement, unless otherwise consented to in writing by NCTCOG or required by law. 4. Participant agrees that the following are unauthorized uses of the CDP and if used in such manner shall constitute of breach of this Agreement: a. Providing access to the CDP, directly or indirectly, to third parties in any manner including but not limited to sublicensing, timesharing, and rental; North Central Texas Council of Governments Page 3 Cooperative Data Program Participation Agreement EXHIBIT 1 b. Downloading CDP Content, Services and Data and distributing to third parties not under contract with Participant; c. Providing CDP Content, Services, and Data to consultants and /or contractors of Participant without limiting such consultant and /or contractor's use of the CDP Content, Services and Data solely for Participant's business purposes and return or destruction of such Content, Services, and Data to Participant upon completion of such purposes as stated in the Data Sharing Agreement provided in Attachment 2 and providing such executed Agreement to NCTCOG; d. Using the CDP in connection with any redistribution of the Content, Services, Data and /or Software; e. Downloading CDP Content, Services, and Data for distribution to non -CDP participants through Participant's own website; f. Enabling access to unauthorized users, including sharing of CDP login and password information. 5. Participant shall include a credit reference to NCTCOG in any publications that make use of the Content, Data and Services of the CDP in substantial conformity with the following: "Content, Services, and Data from the North Central Texas Council of Governments' Cooperative Data Program were used in the preparation of these materials." 6. Upon payment of the Participant Fee, Participant shall be granted web -based access to the Content, Services, and Data of the CDP. Such access shall be protected through a username /password, with User bearing responsibility of protecting access to the CDP through selection of a complex password and safeguarding of the password. 7. Authorized Users of Participant (e.g., employees, students) shall be provided access upon request to NCTCOG. User name authentication is at the Participant level, thus User must use an email address assigned by Participant and not a personal email address, unless agreed to otherwise by NCTCOG. NCTCOG shall not unreasonably withhold its approval of requests to permit User access. NCTCOG shall require Participant's Users to acknowledge the limitations of the CDP through the login process for web -based access. Article VI. Termination NCTCOG reserves the right to terminate this Agreement and Participant's access to the CDP only upon 30 days written notice of Participant's failure to comply with the terms herein. Participant shall have the opportunity to cure such failure to comply as specified in NCTCOG's written notice. Termination will be effective only in the event Participant fails to cure such failure to comply. In the event of termination, Participant shall not be entitled to a refund of Participant Fees unless agreed otherwise in writing by NCTCOG. 2. NCTCOG reserves the right to immediately suspend access to the CDP of any of Participant's Authorized Users, if NCTCOG reasonably believes that the Authorized User is violating the terms of this Agreement or the Limitations of User outlined herein. NCTCOG shall provide written notice to Participant of such suspension. Such User's access may be restored upon mutual agreement between NCTCOG and Participant. 3. NCTCOG reserves the right to terminate this Agreement with no further obligation to Participant in the event the CDP program is discontinued. Page 4 North Central Texas Council of Governments Pa g Cooperative Data Program Participation Agreement EXHIBIT 1 Article VII. Warranties and Representations The Content, Services, and Data provided through the CDP are derived from a variety of public and private sector sources considered dependable, but the accuracy, completeness, and currency thereof are not guaranteed. NCTCOG provides CDP Content, Services, and Data "AS IS" without warranty of any kind, whether express or implied, including but not limited to warranties of merchantability, non - infringement, and /or fitness for a particular purpose. NCTCOG makes no warranty as to the accuracy, completeness, currency, reliability, or suitability for any particular purpose of information or data contained in the NCTCOG Software, Content, Services or Data. 2. NCTCOG, nor its officers, directors, employees, and /or agents, shall not assume any liability associated with the use of the Content, Services or Data of the CDP by Participant, and assume no responsibility to maintain such Content, Services or Data of the CDP in any manner or form. Participant shall assume any and all liability associated with use of the Content, Services or Data in the CDP. 3. Participant, by accessing the CDP, agrees to release NCTCOG, its officer, directors, employees, and /or agents for any and all liability related to Participant's use of the CDP Content, Services, and Data. In no event, shall NCTOCG, its officers, directors, employees and /or agents be liable for any damages related to Participant's use of the CDP. 4. The CDP contains links to other websites. NCTCOG does not generate or check information, data, or program material accessed through links in the CDP. Article VII. Miscellaneous This Agreement shall be governed by and construed in accordance with the laws of the state of Texas. The Parties agree that exclusive venue shall lie in Tarrant County, Texas. 2. Participant shall not assign any rights under this Agreement. 3. In the event that any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions of this Agreement will remain in full force and effect. 4. Each party acknowledges that it has read and understands this Agreement, and agrees to be bound by its terms. This Agreement constitutes the complete agreement between the parties and supersedes all previous agreements or representations, written or oral, with respect to the CDP specified herein. This Agreement may not be modified or amended except in writing signed by a duly- authorized representative of each party. 5. In the event either party is delayed or hindered in or prevented from the performance of any act required hereunder by reason of a Force Majeure event, then performance of such act will be excused for the period of such delay, provided however, that such party shall exert its North Central Texas Council ... � Governments of Governments Page 5 Cooperative Data Program Participation Agreement EXHIBIT 1 reasonable efforts to overcome such Force Majeure Event and to resume performance of its obligations in a timely manner 6. Participant agrees and hereby authorizes NCTCOG reasonable access to records used to validate usage of the software used in conjunction with this Agreement for purposes of verifying Participant's compliance with this Agreement during the Term. g The Parties have executed this Agreement on the day of 2013. NORTH CENTRAL TEXAS COUNCIL PARTICIPANT OF GOVERNMENTS Mike Eastland Executive Director - .. --- - -- 6"u, ....m.._.__ Page 6 North Central Texas C ntil of Governments Cooperative Data Program Participation Agreement EXHIBIT I irm,1=111 Cooperative Data Program Annual Fee Schedule Effective October 1, 2012 . . ........... .......... . .. - . ..... . .............. .. ................ . ............. - --- -- rganiz anon , Type Annual F by Population 1500,000 & greater $7,000 - — ------ ------- ---------- -- 100, - 499,999 -------- - - - -._ ..... . ..... .. . .. .......... ... $6,000 . . ................ . 50,000 - 99,999 -- - -------- $5,000 .. . . . ..... .... ...... ...... . "'" $4, 000 .... ............. . . ------------- . ..... .. .............. . .... . ......... . . ......... ............. . . 10,000 - 24,999 000 $3,000 --- . .. .... . ... - - 0 00 9,999 $2,000 1. 1 000 - 4,99 9 $ 1 000 . ....... . Less than 1,000 . - - - --- -------------- $5001 ............ . . . . . . . .. . .................... 1---, . ..... o .... . .... . . - Cunties by Population . ................. .. ........... . . 750,000 & greater $5,000 I'll - ....... - - - - ----- - -------------- ----------- 100,000 - 749,9 99 $4,000 - — -- ------------- Less than 100,000 ......... . . . . . ..... $3,000 . ............... -11- --------------------- ------- Private Sector Organizations — - - - - - ----------------------- 100 employees & greater $7,500 ..... . ............... ...... . �20 - 99 employees ........ . . $4,000 .. ... .. . . .... .... .... ... �Le'ss'th'a'n 2-0- ....... . . . . . . . ..... .. ............ . . ............ ... . $1'd.0..0 -- ----- -- . . . . . . ....... -------- . ............. . . . . . ................. ... ppC Other Organizations Colleges "and -Universities "", $7,500 .. . ........ 1,bFW-Airport . ........ . ............ . . . . ...... ................. ...... ........ . ........ . .. . ...... $'7",' 0 00 . .. ..... . ... .... .... -- ----- .... .... . �I'ndepen"de`nt School'"Dis, Districts........ $4 0 0 [S'pe'ci a'l Districts ...... ..... ...... ..... . .......................... 11 11 "00 1 $4' ®.:_.....::. MOTOTS =-tM- Mot 9 1 1 4AIIIA114 EXHIBIT 1 Attachment 2 Cooperative Data Program Contractor Data Sharing Agreement This Data Sharing Agreement is made and entered into on the day of . 2013, between and .. (Contractor), to set out the terms and conditions with respect to access to certain Content, Data, and Services in the North Central Texas Council of Governments' ( NCTCOG) Cooperative Data Program (CDP Program). Whereas, NCTCOG and (CDP Participant) have entered into an Agreement related to Participant's access to Content, Data, and Services in NCTCOG's CDP Program. Whereas, the CDP Program Agreement prohibits Participants from providing CDP Content, Services, and Data to consultants and /or contractors of Participant without limiting such consultant and /or contractor's use of the CDP Content, Services and Data solely for Participant's business purposes and requiring the return or destruction of such Content, Services, and Data to Participant upon completion of such purposes through a Data Sharing Agreement. Section 1. Contractor agrees that it is authorized to use NCTCOG's CDP Program Content, Data and Services solely for the purpose of carrying out a specific project or objective of the CDP Participant for which Contractor has been engaged by Participant to conduct. The CDP Content, Data and Services data shall be used for purposes no greater than reasonably needed to achieve the objectives of the CDP Participant. Section 2. Contractor agrees to comply with the Article V. Uses of Data /Restricted Uses in the CDP Agreement between Participant and NCTCOG. Section 3. Contractor agrees to return all CDP Data back to Participant, or to destroy said Data, after completion of the project. This Data may not be used for other projects unless written permission is obtained from NCTCOG. Section 4. Execution of this Agreement signifies that the Contractor agrees to and acknowledges the restrictions of use for the CDP Program Content, Data and Services. Violation of these terms and conditions herein may result in termination of the CDP Program Agreement between NCTCOG and Participant. CDP PARTICIPANT Authorized Representative Signature Phone Number Email Address North Central Texas Council of Governments Cooperative Data Program Participation Agreement CONTRACTOR Authorized Representative Signature Phone Number Email Address Page 8 AGENDA DATE: DEPARTMENT: ACM: SUBJECT AGENDA INFORMATION SHEET November 5, 2013 Materials Management Bryan Langley �_A Questions concerning this acquisition may be directed to Terry Kader at 349 -8729 Consider adoption of an ordinance of the City of Denton authorizing the City Manager or his designee to execute a contract with the Houston- Galveston Area Council of Governments (H- GAC) for the acquisition of one (1) flushing /vacuum trick for the City of Denton Wastewater Collections department; and providing an effective date (File 5393- Purchase of Vacuum /Flushing Trick awarded to Rush Trick Center, Houston in the amount of $98,572 for the cab /chassis and GapVax, Inc. in the amount of $197,475 for the trick body for a total award of $296,047). The Public Utilities Board recommends approval (7 -0). FILE INFORMATION This item is for the purchase of one (1) flushing/vacuum body and one (1) chassis to be used for the Closed Circuit Television expansion of the Wastewater Collection Department operation. This is used to assist the Wastewater Collection Department with maintaining compliance with Texas Commission on Environmental Quality (TCEQ) regulations. This is a fleet addition that was approved in the Fiscal Year 2012 -13 budget. Comparison pricing was obtained from three (3) cooperative contract vendors for the flushing/vacuum body (Exhibit 1). Staff is recommending the GapVax, Inc, Model MC1007 flushing/vacuum body in the amount of $197,475 (H -GAC Contract 4 SCO1 -12). The Peterbilt Model 348 Chassis will be purchased through H -GAC Contract Number HT11 -12 in the amount of $98,572 (Exhibit 2). Peterbilt is considered a single source due to the standardization of fleet to this brand of chassis (Exhibit 3).This equipment is not available from local vendors. PRIOR ACTION/VIEW (COUNCIL, BOARDS, COMMISSIONS) On October 28, 2013, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. RECOMMENDATION Award the purchase of a GapVax Model MC 1007 flushing /vacuum body to GapVax, Inc. in the amount of $197,475.00 and a Peterbilt Model 348 chassis to Rush Trick Center in the amount of $ 98,572. Agenda Information Sheet November 5, 2013 Page 2 PRINCIPAL PLACE OF BUSINESS GapVax, Inc. Rush Trick Center Johnstown, PA Houston, TX ESTIMATED SCHEDULE OF PROJECT The purchase and delivery of the chassis with flushing /vacuum body will occur within 180 days of purchase order issuance. FISCAL INFORMATION This item will be funded from existing resources including Certificate of Obligation Bonds and Motor Pool Recovery Funds. The following account numbers will be used: 6409965431. 1315530100 $26,863 640996544. 1315530100 $35,670 645996645.1355.30100 $233,514 $296,047 EXHIBITS Exhibit 1: Comparisons and Quotes for Flushing /Vacuum Body Exhibit 2: Quote for Chassis Exhibit 3: Single Source Justification Memo Exhibit 4: Public Utilities Board Draft Minutes Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance 1 -AIS -File 5393 QUOTE COMPARISON FOR FLUSHING/VACUUM BODY ExhExhibit 1 DENTON Oct 23, 2013 I'' Print Form ORDER ORDER ORDER 1000 gallon water tank, 7 yard debris 1000 gallon water tank, 9 yard debris 1000 gallon water tank, 10 yard body, single engine, 50 gpm water body, single engine, 50 gpm water debris body, single engine, 80 gpm pump, transmission driven PITO pump, rear engine pto water pump BASE PRICE $185,705.00 $202,378.00 $289,745.00 PUBLISHED OPTIONS $13,645.00 $0.00 $0.00 UNPUBLISHED OPTIC $14,005.00 MOO $0.00 DELIVERY FEE $4,050.00 $2,500.00 $3,500.00 SUBTOTAL $197,475.00 $204,878.00 $239,321.50 Notes: $197,475.00 $204,878.00 $239,321.50 Variance GapVaxInc VAC-CON HI-VAC S75 Central Ave 969 Hall Park Rd 117 Industry Rd Johnstown =15902 GreenCove Springs FL---132043 Marietta 45750 (814) 535-6766 (904) 493-4969 1(740) 374-2306 I'' Print Form f X1 IP MEN I m 1 BUYBOARD PURCHASE ORDER MADE TO: VAC -CO N, I N C. 969 Hall Park Road GreenCove Springs, FL TEXAS VAC -CON AUTHORIZED DEALERSHIP Date 10/21/2013 CLS Sewer Equipment Co.lnc. Number 8338 726 So. Sherman St. Type of Quote Single Richardson, TX 75081 PO Buyboard Contract No. 270 -07 (VAC -CON ,INC.) City of Denton, Texas Retail Purchaser Charles Rosendahl Ship To Denton, Texas Comments Price excludes any applicable F.E.T., sales taxes, tag, title or registration fees. Option content is subject to engineering approval. Model Number - V PD4290HN /1000 (827 at 18 ") L H A -O Main Information Model PD4290HN /1000 (827 Roots Blower at 18 "hg@ 4200CFM) Blower Hydrostatic Drive 160cc Hydrostatic Pump Boom 10' Aluminum Telescoping Boom with Pendant Control (26Ft Reach 270degree Reach) Hose Reel Front Mounted, Articulating to Driver Side 1000ft 3/" Hose CAPACITY(Std Pivot) Jet Rodder Hose 800'x 3/4" 3000 working pressure psi /7500 psi — Sewer Hose Water System 50 gpm /3000 psi Pump - Single Engine - FMC, Hydrostatic Drive Water Pump FMC 50GPM @3000PS1) Auxiliary Engine NONE (CHASSIS OPERATES IN NEUTRAL) SINGLE ENGINE /SINGLE REAR AXLE TO BE MOUNTED ON 43,000GVWR PETERBILT 365 Standard Equipment Includes: Vacuum System (as specified by Model Number) Vacuum Drive: Hydrostatic - Required 3/16" Corten Steel Debris Tank - (size as specified by model number) Full opening rear door Hydraulic rear door locks, with door grabber with safety latch 5" Butterfly valve with 10' layflat hose Debris tank Dumping: minimum 50 deg., hydraulic scissors lift - power up /power down Polyethylene water tank Automatic Vacuum Breaker and overfill protection 8" vacuum intake hose Boom travel tie down 4 Way hydraulic boom with 270 deg. Rotation and joystick controls Front mounted 600' capacity (1" hose) /hydraulic hose reel 60 gpm /2000 psi water pump system Water pump drive: Hydrostatic 400' high pressure jet rodder hose (1" or 3/4 ") Manual hose rewind guide Hose guide (Tiger Tail) 30" leader hose 20 gpm at 600 psi wash down hand gun with 25' of hose and nozzle Sealed and locking tool box(es) (as indicated by model number} 1) each sanitary and penetrator nozzles 20.5' aluminum intake pipe(1 -3', 1 -5', 1 -6', and 1 -6.5' nozzle) ICC lighting DuPont Elite Polyurethane Paint 12 month standard warranty - see certificate for details Note: Includes Hydrostatic Drive Option 5# Fire Extinguisher Set of Triangles Main Information Model PD4290HN /1000 (827 at 18 ") Blower Hydrostatic Drive Boom 10' Aluminum Telescoping Boom with Pendant Control Station Hose Reel Front Mounted, Articulating to Driver Side (Std Pivot) Jet Rodder Hose 800' x 3/4" 3000 psi /7500 psi - 400' extra Water System 50 gpm /3000 psi Pump - Single Engine - FMC, Hydrostatic Drive Water Pump FMC Auxiliary Engine 0 Other Items Qty Description 1 Debris Body "Power Flush" System, 8 jets 1 6" Knife Valve with lever action, in Lieu of 5" Butterfly Valve 1 Rear splash guard (4 - 8 O'clock) - tank mounted 1 Winter Recirculating for Hose Reel & Low Pressure Hand Gun 1 Air Purge System 1 1/4 turn ball valve water drain ( cannot choose both 2 -1/2" gate valve and 1/4 turn ball valve, only choose one) I Variable Flow Valve (Valve Only ) - nozzles required 1 Lazy Susan Pipe Rack (Holds 5 Pipes, will not fit when unit has a 6 cyl aux engine) 1 Storage Box Behind Cab 16" x 42" x 96" 1 Long Handle Storage / PVC 1 LED strobe, rear mounted 1 LED 4 Strobes - (2) front bumper / (2) rear bumper 1 LED Arrow stick 1 Boom Mounted Flood Lights 1 ICC - LED Lighting Package 1 Back Up Alarm Hydroexcavation package includes: 50' retractable handgun hose reel wtih 50' of 1/2" high pressure hose, 1 HP /Quick disconnect, heavy duty HP unloader valve, main control ball valve, 48" x 1/2" stainless steel lance with adjustable grip and horizontal spray 1 Cone Storage Rack 1 Rear Mounted Tow Hooks 1 Dual Roller Level Wind Guide, plastic (in lieu of single) 1 Omnibus -2 Electronic Controller System -Color Monitor 1 Omnibus Footage Counter 1 LED Rear Mounted Flood Lights 1 LED Flood Light - Water Pump Work Area Truck Chassis Information Pool Truck Chassis Model Select a Model Pool Trucks are subject to availability. Qty Description TRUCK REQUIREMENTS Make Model Engine Make and Model Engine HP and RPM Transmission Make and Model CA /CT Measurement Est Date of Arrival at Vac -Con Dealership Providing Chassis /Phone /Contact Offered by: I P Snnnier- President CEO CLS EQUIPMENT CO.INC. Accepted by: Customer Supplied Chassis Peterbilt 365 Paccar 400 Allison Auto 1/1/2013 Rush Truck Center Hal Holloway Machine Total $202,378.00 Delivery $2,500.00 Vac -Con Buyboard Proposal Total$204,878.00 117 Industry Road O Marietta, OH 45750 USA Phone: 740 - 374 -2306 ED 0 800- 752 -2400 1 Fax- 740- 374 -5447 Attn: Charlie Rosendahl QUOTATION - AQUATECH QUOTE NO: i DATE:10 /21 /13 SOLD TO Equipment Southwest, Inc. 425 S. Loop 12 Irvina. Texas 75060 Auth: Texas Buvboard Dealer Contract#421 -13 Dale Patterson 214 - 356 -9062 PER: PHONE: QUOTE # SUBMITTED EST. SHIP DATE SERIAL NO. MODEL RSM TERRITORY 102113 F -10 Texas SHIPPED SHIPPED SHIPMENT SHIPPING CHARGE PAYMENT TERMS FROM VIA 90 - 120 Days After Chassis Arrival d). Hi -Vac Factory Standard City Terms ITEM QUANTITY PART # DESCRIPTION: -LIST EACH TOTAL ......_ ...... 1 F10 _ . ................. IAquatech model F10 (see brochure for standard equipment) .� .. $ 188,622.00 1 215523 80 GPM 0 2500 PSI water system $ 4,859.00 1 .................._ 340405 .. Roots Model 824 (3600cfm) over standard model 624 roots $ 12,303.00 1 270760 ......... ......._� 24 "Wx20.5 "DX10'H Aluminum tool box (side mounted) $ 718.00 1 000364 -2 __._._. ....�. Side mounted tube racks, both sides holds a total of 6 -tubes .- .............. $ 1,477.00 1 243924 -1 Access steps - tank top $ 539.00 1 221370 - .- ..__ ............. Fill Line Strainer $ 295.00 1 130635 (F101 Internal tank flusher, high flow $ 2,190.00 1 000368 Pum_o -off system_ (180 GPM) w/20' lay flat hose $ 4,719.00 1 110452 -1 6 way boom control of iov stick - _.. $ 2,215.00 1 382413 Splash shield. 112 rear door (3 o'clock to 9 o'clock) $ 1,283.00 1 NPN 800' of 3,000 PSI hose installed on unit $ 3,829.00 1 OBJIaC IntelACount diaital hose footage counter $ 3,328.00 1 215555 -13 -FR Unloader valve - Front reel units $ 5,725.00 1 __ ............... NPN 12V Cold Weather Recirulation package .................. $ 1,629.00 1 [2::3:9:9:0:2 = Air purge system, runs off air brakes to purge $ 353.00 1 130561 1/2" hose reel -100' cap. (washdown system -No- Hose - Supplied $ 1,152.00 1 1130572 112" Retractable hose ree 100' cao.(Hvdro- excavation) $ 2,409.00 1 Power Reel 239946 -PATS Lateral Cleaning Kit with Hydraulic o - $ 6,964.00 1 NPN Hvdro- Excavation Kit w /50' x 1/2" hose. Order reel separately $ 4,621.00 1 338837 -1 Dual Floor Flusher - $ 2,359.00 1 ....... ........ 176110 20' leader hose 1" $ 244.00 1 131629 1/2" x 50' hose assembiv with fiftinas ( washdown) $ 395.00 1 .... NPN 1/2" x 100' hose assembly with fiftings (hvdro -kit) $ 787.00 1 120063 Low water warning light $ 542.00 1 120096 Low water warning horn $ 681.00 1 120705 12Volt electrical outlet (front reel mounted) $ 233.00 1 120058 PTO Hour meter $ 543.00 1 121704 Tank -up warning light $ 819.00 —1120111 20' Retractable cord with Halogen spotlight $ 396.00 1 120378 Dual Retractable Halogen work lights on boom $ 711.00 3 �..... _ .............. �:.. 120401 Flood Lights.)- Front,) -Side Work,1 -Rear Stations .... $ 453.00 .. $ 1,359.00 ...... .�. ....... _ ....... . �....... 1 LED000 _......��__.� All DOT Liahts to be LED $ 899.00 1 120395 -5 LED liaht board, installed on unit - rear $ 1,867.00 1 383168 Strobe liahts in front grill $ 1,031.00 1 381525 Strobe lights in rear bumper $ 1,097.00 1 383098 ......... Strobe light bar on chassis cab .�. -..... ........................ $ 1,408.00 1 120101 Control panel lights $ 344.00 1 383966 8" x 8' aluminum extension tube $ 427.00 1 ......................... 383964 8" x 6' aluminum extension tube $ 403.00 1 383963 ................... 8" x 5' aluminum extension tube $ 393.00 1 238083 Manhole vacuum tube support, for 8" tube's $ 445.00 _.. .........._.� 1 384071 ................ 8" x 3' fluidizer nozzle tube $ 448.00 2 191080 .._ _ .............................................................................. ......... ...._........... 8" couple 0 -rings lextra seals) $ 22.00 ....... ...._................... ............- $ 44.00 1 176150 25' Hvdrant Fill Hose Assv. $ 205.00 2 220260 Traffic cone holders ( spate...._ .. ............................... ... ace permitting) $ 500.00 .�- $ 1,000.00 1 220271 Left rear tow hook $ 217.00 1 220281 . ......w._. ....... ........... Riaht rear tow hook ....... ......_. $ 217.00 w_.... ......... ..._ 1 220330 ._�. ........_ ..... Hvdrant wrench ..... ... $ 85.00 2 1 1 1 7 2 1 220327 5 Lb. ABC fire extinguisher S 256.00 $ 512.00 NPN Provision TV210 Back -up Camera Svstem $ 2,191.00 380903 Petcock valve on Y- strainer cap. $ 146.00 NPN Telescopic Hose Reel (F -10 model only) $ 13,800.00 ...........__ 120002 . ___ ........... Back -up alarm. 12 volt electric _. .........�.... _. �. ._ $ 255.00 NPN Trianale Kits $ 156.00 $ 312.00 —NPN Remote lubrication manifold $ 3,700.00 TOTAL LIST I S 289.745.00 Chassis TOT NOTE: THIS IS THE COMPLETE QUOTATION PAGE 2 f� t Reference: QUOTE # HI -VAC CORPORATION IS NOT RESPONSIBLE FOR ANY MISSING, UNWANTED OR DEALER SUPPLIED ITEMS. SIGNATURE & DATE: Name: Title: Comments /Clarification: Exhibit 2 HUCBuy CONTRACT PRICING WORKSHEET For MOTOR VEHICLES Only Contract Date No.: HTll -12 prepared: 10.23 %2013 w� mwwwww , %j % % / % tlj j/ Buying DENTON, CITY OF Agency: Contractor: :RUSH TRUCK CENTER, HOUSTON Contact ;CHARLIE ROSENDAHL Person: Prepared :CHARLIE PLOUSE By: Phone: ;(940)349 -8422 Phone: :713- 495 -6304 Fax: ;(940)349 -8596 Fax: :713- 695 -9620 Email: € charlrs .rosendahl(&cityofdenton.com I Email: ousec(d)rush ter rises.com Product Code: 1114 Description: EPETERBILT 348 CHASSIS [FOR GAP -N AI A: wood. •UnitPrii^e Pei••Coniract(ir's H -GAC Coniraet:' 85,386.00 ........................................... ............................... $: I'ulllis. . . Qp. . . = .Iterx►i . 'helot' .. -• Ailta . . aclditi . . . she�t(s. . ue�es . . . urle.O.ption. dot. . . tleseriptiou iI . . . . a. . .. • . • . • . ........................................... ............................... Note: P�b[iskred Optipxls ,irg options ���hiph.��:er�•sul�i�itted, ajrd, pti�ed itt -Qojrgagnyl` , bid j . . ........................................... ............................... Description Cost Description Cost Subtotal From Additional Sheet(s): F 36,244.32 Subtotal B: E S 36,244.32 ........................................... ............................... C:.U�ipt�blis . . O�fio.. r Itetni e.. . .. /.. . . ..�tdditibx[al sheet(.) .. neces' s�iri .:.:.:.:.:.:.:.:.:.:.:.:.:.:. :.:.:.:.:.:.:.:.:.:.:.:.:.:.:.: . (Note:.UnpubTished. options aie' items. ��- .hich. ��zere n6t'subtnifte8. and.price8. in C:6ntractor'•s.b id.)' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' . ' ........................................... ............................... Description Cost Description Cost UPGRADE TO NATIONAL NTB16 € S 1,100.00 Subtotal From Additional Sheet(,): ir Subtotal C: E S 1,100.00 Check: Total cost of Unpublished Options (C) cannot exceed 250o of the total of the Base Unit E For this transaction the percentage is: 0.9000 Price plus Published Options (A +B). b: Total ('ost• f3efoie Anv .Applicable.T' ti64 I Otliei _ALlfo�iainces /'Discounts:(.' +13 +C'). •. • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' Quanfih Ordered: l Subtotal of A + B + C: S 122,730.32 = Subtotal D: E S 122,730.32 T4: H -GAC Orden• Proeessirig'Charge'(Aniohrit• Pei •Current Policy) • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • ' • =­.-'.-.1 • • ' ' Subtotal E: E S 600.00 R'Tr4f&,I•nsl Other: allow 'arices %.SpeciatDiscourits�Efeig .lit /lhsitalliti6ri ...................... ...............'. ........................................... ............................... Description Cost Description Cost RUSH TRUCK CENTER DISCOUNT E S (24,758.32) Subtotal F: E S (24,758.32) ......................; ....................... Delivery -Date. to' GAVNAX.:.: 95 Days ARO ............................. ............................. . ' . ' . ' . ' . ' G:'To�kal'Puc�ehasi' Price' (I) �E +F)i ' S 98,572.00 RUSH TRUCK CENTER, HOUSTON PAGE 1 of 25 Exhibit 3 MEMORANDUM DATE: October 24, 2013 TO: Elton Brock FROM: Terry Kader Fleet Services Superintendent CC: Antonio Puente SUBJECT: Peterbilt Truck Chassis Fleet Services is recommending the purchase of the Vacuum/Flushing truck package mounted on a Peterbilt chassis based on fleet standardization. Fleet standardization minimizes costs and improves efficiencies relating to technician training, diagnostic software, required specialty tools and stocking of replacement parts. Also, we are currently already set up as a warranty provider for the Peterbilt trucks through the Rush Truck Center network. As an approved warranty provider, we perform repairs that are covered under warranty, reducing downtime and costs associated with transportation of these trucks to the Rush shop. I believe the purchase of the Peterbilt Truck Chassis for the Vacuum Flushing truck is the best value and I am requesting authorization to make this purchase based on fleet standardization. Regards, Terl °y Kader Fleet Services Superintendent Exhibit 4 1 DRAFT MINUTES 2 PUBLIC UTILITIES BOARD 3 October 28, 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, October 28 at 9:00 a.m. in the Service Center Training Room, City of Denton Service 8 Center, 901A Texas Street, Denton, Texas. 9 10 Present: Chairman Dick Smith, Vice Chair Billy Cheek, Secretary Randy 11 Robinson, Leonard Herring, Phil Gallivan Barbara Russell and Lilia 12 Bynum 13 14 Ex Officio Members: George Campbell City Manager and Howard Martin, ACM Utilities 15 16 OPEN MEETING: 17 18 CONSENT AGENDA: 19 20 4) Consider the recommendation of an ordinance of the City of Denton authorizing the City 21 Manager or his designee to execute a contract through the Houston- Galveston Area Council 22 of Governments (H -GAC) Cooperative Purchasing Program for the acquisition one (1) 23 flushing /vacuum body and one (1) chassis for City of Denton Wastewater Collections 24 Department; and providing and effective date (File 5393- Purchase of one (1) 25 flushing /vacuum body from GapVax, Inc for $197,475.00 and one (1) chassis from Rush 26 Truck Center for $98,572.) 27 28 Board Member Herring pulled this item for questions. Herring asked if this truck was 29 talked about before. Martin answered yes; it is the one that PS Arora talked about regarding 30 cleaning the wastewater system. Herring stated it is not in the budget for this year, Martin 31 agreed. Herring went on to say that the City would save $7.5 million. Martin further agreed. 32 Herring asked what the plan for the rest of the money is. Martin answered this will come 33 forward in terms of savings over a period of the capital program. As staff goes through and 34 cleans the lines it will translate into overall less replacement of the system over time. Smith 35 stated it will decrease future expenditures. Herring asked if it will reduce current or future 36 rates. Martin stated it will be used against future increases. The City may not have to increase 37 the rates as much. Herring said that we will take money that is not there to purchase the 38 equipment. Martin answered we do have the money it will be out of reserves as an example. 39 40 Motion was made to approve item 4 by Board Member Cheek with the second by Board 41 Member Robinson. The vote was 7 -0 approved. 42 43 Adjournment 9:59 a.m. ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A CONTRACT WITH THE HOUSTON - GALVESTON AREA COUNCIL OF GOVERNMENTS (H -GAC) FOR THE ACQUISITION OF ONE (1) FLUSHING/VACUUM TRUCK FOR THE CITY OF DENTON WASTEWATER COLLECTIONS DEPARTMENT; AND PROVIDING AN EFFECTIVE DATE (FILE 5393 - PURCHASE OF VACUUM/FLUSHING TRUCK AWARDED TO RUSH TRUCK CENTER, HOUSTON IN THE AMOUNT OF $98,572 FOR THE CAB /CHASSIS AND GAPVAX, INC. IN THE AMOUNT OF $197,475 FOR THE TRUCK BODY FOR A TOTAL AWARD OF $296,047). WHEREAS, pursuant to Ordinance 95 -107, the Houston- Galveston Area Council of Government (H -GAC) has solicited, received, and tabulated competitive bids for the purchase of necessary materials, equipment, supplies, or services in accordance with the procedures of state law on behalf of the City of Denton; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described materials, equipment, supplies, or services can be purchased by the City through the Houston- Galveston Area Council of Government (H -GAC) programs at less cost than the City would expend if bidding these items individually; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies, or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered file for materials, equipment, supplies, or services, are hereby approved. FILE NUMBER VENDOR AMOUNT 5393 Rush Trick Center, Houston $98,572 5393 GapVax, Inc. $197,475 SECTION 2. By the acceptance and approval of the above numbered items set forth in the referenced file, the City accepts the offer of the persons submitting the bids to the H -GAC for such items and agrees to purchase the materials, equipment, supplies, or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the H -GAC, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by H -GAC, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to H -GAC, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 5393 to the City Manager of the City of Denton, Texas, or his designee. SECTION 5. By the acceptance and approval of the above enumerated items, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this day of , 2013. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY IC APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 6 -ORD -File 5393 AGENDA DATE DEPARTMENT: ACM: SUBJECT AGENDA INFORMATION SHEET November 5, 2013 Materials Management Bryan Langley � -A Questions concerning this acquisition may be directed to Elton Brock at 349 -7133 Consider adoption of an ordinance authorizing the City Manager to execute an Interlocal Cooperative Purchasing Program Agreement with the City of DeSoto, 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 5368 - Interlocal Agreement with the City of DeSoto). FILE INFORMATION Section 271.102 of the Texas Local Government Code, authorizes respective participating governments to enter into agreements for the purchase of goods and services. The attached Agreement is an authorization for the City of DeSoto to participate in contracts awarded by the City of Denton. The contract will remain in effect until terminated by either party. This Agreement will allow the City of DeSoto to utilize contracts for goods and services competitively solicited by the City of Denton. The procurement process followed by the City of Denton meets all statutory procurement requirements. Upon approval of the Agreement, the City of DeSoto intends to utilize the City of Denton's contract for Police Motorcycles available through Victory Motorcycles. RECOMMENDATION Approve an Interlocal Cooperative Purchasing Program Agreement with the City of DeSoto. PRINCIPAL PLACE OF BUSINESS City of DeSoto DeSoto, TX ESTIMATED SCHEDULE OF PROJECT This Agreement is effective upon approval by the City of Denton and will remain in effect until terminated by either party. Agenda Information Sheet November 5, 2013 Page 2 FISCAL INFORMATION The approval of the interlocal agreement has no fiscal impact. If the City of Desoto utilizes the City of Denton's contract for Police Motorcycles, the agreement allows the City of Denton to recoup procurement costs associated with the contract acquisition and contract management equal to 2% from participating government entities. EXHIBIT Exhibit 1: Ordinance and Interlocal Agreement Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance 1 AIS -File 5W ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCAL COOPERATIVE PURCHASING PROGRAM AGREEMENT WITH THE CITY OF DESOTO, 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 5368- INTERLOCAL AGREEMENT WITH THE CITY OF DESOTO). THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager or his designee is hereby authorized to execute the Interlocal Cooperative Purchasing Program Agreement with the City of DeSoto under Section 271.102 of the Local Government Code, a copy of which is attached hereto and incorporated by reference herein (the "Agreement'). SECTION 2. The City Manager or his designee is authorized to expend funds pursuant to the Agreement for the purchase of various goods and services. SECTION 3. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 5368 to the City Manager of the City of Denton, Texas, or his designee. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2013. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY IC • APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 2- ORD- Interlocal Agreement with DeSoto STATE OF TEXAS N QINTERLOC/kL COOPERATION AGREEMENT COUNTY OpDALLAS § This Inter-local Cooperation Agreement (Agreemcnt)ixhy and between the City o[ D*S^m, Texas C^Dm8m^`l, and the City nfU,ntmn. [nxov (`'Dmo(oo'')` uodug by and through their authorized officer,,- WHEREAS, this Agreement is authorized by Chapter 79!o[the Texas Government Code and Subchapter F. Chapter l7l, Texas Local Government Code: and WHEREAS, Section 271.102 of the [cx |.oc. 0uv`r Cooe xuUbvriow a /oxu| government toparticipate in Cooperative Purchasing Program with another local gvvnuzmou\ o,u local cooperative organization; and WHEREAS, u local government that purchases goods and vovixcu pursuant to u Cooperative Purchasing Program, with another local government, satisfies the requirement of the local government to seek competitive bids for the purchase of the goods and materials; and WHEREAS, the parties desire to enter into a cooperative purchasing program which wi I I u/|"`v each party to purchase goods and services under each vthc,`x competitively bid contracts pursuant to Subchapter F, Chapter 27| o[thc'[ex. Loc. Go*`rCooa; NOW THEREFORE, io consideration of the mutual covenants and promises contained heooio, the parties agree uufollows: ARTICLE PURPOSE The purpose o[UdnA&r�une�bwumohishxcvmp�uirc purchasing program hxwecn the parties, which will allow cacb party to purchase goods and wc,vicno under each whcr`x competitively bid contracts pursuant to Subchapter [ Chapter 271 of the TEN. Loc. Oov'r rooc ARTICLE If TERM The term of this Agreement shall be I'm ^ period ^(noe(/) year commencing ou the last date ofuxocutioohereof October 16. 2013. Thereafter. this Agreement obv1xo,nmohudlyxmew Kv successive periods o[one (|) year cacti Linder the terms and conditions stated herein, unless sooner terminated uw provided herein. ARTKCL[D0 TERMINATION Either party may terminate this Agreement hy providing thirty (3O) days prior written notice to the other party. ARTICLE IV The City Manager o, other designee k« each party io authorized m act ou behalf o[the respective party in all matters relating m this nnnpcouive pv,ohmsiog program- Each puny shall make payments m the other party ur directly mthe vendor under the contract made pursuant to 3nbuhopur F. Chapter 27|v[ the TEX. Luc.Guv`rCODE, E'ucb party shall be responsible for the respective ,ondo,`o compliance with provisions 'n|mbng to the gvx\it? "fitcmo and terms of ARTICLE MISCELLANEOUS 5.1 TNa&greoovmtixmuinteudodmumo�om- shovNithc construed om creating, x partnership, association, joimventure or trust, 52 Notice: Any notice required or permitted to be J6ivo,u] bcm,vuder vhd| be deemed m:coircd *beu sent in the United Siuuo h4uU. Pvmugc Prepaid, Certified Mail, Return Receipt Requested, or by hand-delivery or facsimile transmission addressed to the respective party at the uddnssaet1orthbdo*/be signature of the party, 5.3 Amendment: 'This Agreement may ho amended hI the mutual written agreement ofboth parties hereto. 5.4 Severabilli!j.: /u the event any one ", more o[/hx provisions contained in this Agreement uboJ| for any reason bc held m be iovu|id, i||c&uL or unenforceable in any respect, such invalidity, illegality, urnnvo/b^zn6Udy ,hu|| not uAic' the other provisions, and the &grrcm,m obuO he construed as it'such invalid, illegal, or unenforceable provision had never been contained in this Agreement. 5.5 : This A�ncmcm represents �bc entire u�omcn� uong the parties with respect to the subject matter covered by this Agreement. There is no other collateral. oral or written ou7c*mcw bcuvuun the nmnicy that in any m^uuu, nc|u'ey to the subject matter of this Agreement. 5.6 Recitals: The recitals m this Agreement are incorporated herein lnicf Local Agreement 161 Coopciative Purchasing 5. 7 Counterparts: This Agreement may be executed in any number of counterparts. each of whom shall be deemed an original and constitute one and the same instrument. EXECUTED this &rday of -06b!qX0. CITY OF DESOTO, TEXAS BY: - .'arl C rm Ma or E. Pleas i R oad, Suite A DeSoto , Texa, 15 ATTEST: By- i isha R. Morris, , City City Sccetwy APPROVE AS TO FORM Jose J. Gorfida, Jr., City Artorn y EXECUTED this 10 day of L*hr— ?(11 3. CITY OF DESOTO, TEXAS Sea] Inwr Locul Agreement foj Cooporative Purchasing 72,971 AGENDA DATE DEPARTMENT: ACM: SUBJECT AGENDA INFORMATION SHEET November 5, 2013 Materials Management Bryan Langley � -A Questions concerning this acquisition may be directed to Toby May at 349 -8515 Consider adoption of an ordinance authorizing the City Manager to execute an Interlocal Cooperative Purchasing Program Agreement with the North Central Texas Council of Governments ( NCTCOG) under Section 791.001 of the State of Texas 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 5387 - Interlocal Agreement with the North Central Texas Council of Governments for Electronic Warrant Payment Services). FILE INFORMATION In May 2012, Court Administrators from several North Texas metroplex cities approached NCTCOG to gauge the interest for a Shared Services program to electronically accept warrant payments between entities through a selected vendor. It was determined that there was significant interest in such a program. A selection committee consisting of subject matter experts in court administration and NCTCOG staff drafted a Request for Proposals (RFP). Three proposals were received and after careful consideration and scoring, the selection committee recommended Government Payment Services, Inc. (GPN) to be the service provider for the Electronic Warrant Payment Services Program. A Pilot Program was started with the cities of Arlington, Plano, Euless, Grand Prairie, and Carrollton. For the next year, the program was developed, tested, and perfected. The program went live in June 2013. As of the beginning of September 2013, $100,000.00 has been transferred electronically between city jails in the pilot group. At this time, approximately seven (7) additional North Texas cities have expressed interest in joining the program. This Agreement will allow the City of Denton to become a participant in this cooperative program with other listed North Texas cities to obtain the services from GPN for the payment of cash bonds and fine payments from individuals who are arrested. As an example, an individual arrested in Carrollton on a City of Denton warrant would be able to pay or post a bond on his warrant in Carrollton by credit card and be released. The money would be directly deposited to the City of Denton's bank account. Agenda Information Sheet November 5, 2013 Page 2 FILE INFORMATION Benefits of the Program include • The program is provided at no cost to the jurisdiction. • Minimized jail time, cost, and risk associated with prisoner transfers and /or detention. • Minimized administrative costs utilizing GovPayNet to accept and administer the process. • Reduction of city overhead concerning check requisitions, envelopes, time and mailing, among other expenses. • Payments are made directly from the vendor to the jurisdiction. • GPN provides 24/7 customer service. • The more cities that join the program, the more efficient and beneficial it becomes. GPN will also provide for the automated transfer of funds for these payments. Participating cities can collect and transfer bond and fine monies via Automated Clearing House (ACH) deposits. This will eliminate the need for manual check payments between cities which currently delays case processing and deposits up to a month. All impacted City staff from the the Warrant Office, City Jail, Technology Services, and Finance, have had the opportunity to see a demonstration of the process and are in support of participating in the program. Section 791.001 of the Government Code requires that all interlocal contracts must be authorized by the governing body, regardless of the dollar amount. The only exception to this is municipally owned electric utilities -these entities have a $100,000 threshold before authorization by the governing body is required. RECOMMENDATION Approve an Interlocal agreement with North Texas Council of Governments to become a participant in the program. PRINCIPAL PLACE OF BUSINESS North Central Texas Council of Governments Government Payment Services, Inc. 616 Six Flags Drive 7102 Lakeview Pkwy West Drive Arlington, TX. 76011 Indianapolis, IN 46268 Agenda Information Sheet November 5, 2013 Page 3 ESTIMATED SCHEDULE OF PROJECT This agreement will be effective when signed and will remain in full force and effect for one (1) year. The agreement will automatically renew for successive one (1) year terms unless sooner terminated in accordance with Article 6 of the Interlocal Agreement. The Master Contract between Government Payment Services, Inc and NCTCOG is a five (5) year contract that was executed on January 14th, 2013. It has an automatic renewal clause for additional one (1) year periods. FISCAL INFORMATION There is no cost to the City of Denton under this agreement; however GPN charges a service fee of between 3.5% and 5.0% based on payment type to the payer of the bond or fine. GovPayNet will pay administrative fees as shown below to NCTCOG. For the first 2,000 Transaction: $0.15 Per Transaction For Transactions 2,001 through 5,000 $0.20 Per Transaction For Transactions 5,001 and above: $0.25 Per Transaction All charge backs, disputes, and fraudulent transactions are handled and resolved by GPN and any losses are the responsibility of GPN. EXHIBIT Exhibit 1: Ordinance and Interlocal Agreement Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance 1 -AIS -File 5387 ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCAL COOPERATIVE PURCHASING PROGRAM AGREEMENT WITH THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS (NCTCOG) UNDER SECTION 791.001 OF THE STATE OF TEXAS 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 5187- INTERLOCAL AGREEMENT WITH THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS FOR ELECTRONIC WARRANT PAYMENT SERVICES). THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager or his designee is hereby authorized to execute the Interlocal Cooperative Purchasing Program Agreement for Electronic Warrant Payments with the North Central Texas Council of Governments (NCTCOG) under Section 791.001 of the Texas Government Code, a copy of which is attached hereto and incorporated by reference herein (the "Agreement'). SECTION 2. The City Manager or his designee is authorized to expend funds pursuant to the Agreement for the purchase of various goods and services. SECTION 3. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 5387 to the City Manager of the City of Denton, Texas, or his designee. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2013. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY IC APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 2 -ORD -File 5387 INTERLOCAL AGREEMENT FOR ELECTRONIC WARRANT PAYMENT SERVICES THIS INTERLOCAL AGREEMENT ( "ILA "), made and entered into pursuant to the Texas Interlocal Cooperation Act, Chapter 791, Texas Government Code (the "Act "), is by and between the North Central Texas Council of Governments, hereinafter referred to as " NCTCOG," having its principal place of business at 616 Six Flags Drive, Arlington, TX 76011, and the City of Denton, Texas, a local government created and operated to provide one or more governmental functions and services, hereinafter referred to as "Participant," having its principal place of business at 215 E. McKinney St., Denton, TX 76201. WHEREAS, NCTCOG is a regional planning commission and political subdivision of the State of Texas operating under Chapter 391, Texas Local Government Code; and WHEREAS, in reliance on such authority, NCTCOG has instituted a cooperative purchasing program, hereinafter referred to as "Shared Services" under which it contracts with eligible entities under the Act; and WHEREAS, NCTCOG has performed a procurement process for electronic warrant payment services for municipalities; in which each participating local government will contract directly for electronic warrant payment services with Government Payment Service, Inc. (GPS); and WHEREAS, NCTCOG's Executive Board approved a resolution authorizing the interlocal agreements for procurement of GPS electronic warrant payment services at its December 20, 2012 meeting; and WHEREAS, Participant has represented that it is an eligible entity under the Act, that its governing body has authorized this Agreement on (Date), and that it desires to contract with NCTCOG on the terms set forth below; NOW, THEREFORE, NCTCOG and the Participant do hereby agree as follows ARTICLE 1: OBLIGATIONS OF THE PARTIES The Participant agrees to execute an engagement letter with GPS with respect to its election to receive various electronic warrant payment services under NCTCOG's Shared Services Program. A copy of the standard engagement letter is attached hereto as Attachment 1. Participant acknowledges that it shall look solely to GPS for the delivery of the services described in the engagement letter as well as the provisions for payment of fees assessed by GPS. NCTCOG has developed the electronic warrant payment services program as part of its Shared Services to its member organizations. NCTCOG's sole responsibility is to coordinate with GPS and its member organizations the procurement of the services and to promote the services to its members. NCTCOG has no responsibility for (i) the delivery of the services to its members, (ii) the day to day operation of the electronic warrant payment service system or (iii) the resolution of dispute /warranty claims between GPS and the Participants. ARTICLE 2: LEGAL AUTHORITY The Participant represents and warrants to NCTCOG that it is eligible to contract with NCTCOG under the Act for the purposes recited herein because it is one of the following: a local government, as defined in the Act as a county, a municipality, a special district, or other political subdivision of the State of Texas or any other state, or a combination of two or more of those entities, a state agency (an agency of the State of Texas as defined in Section 771.002 of the Texas Government Code, or a similar agency of another state), or a non - profit corporation created and operated to provide one or more governmental functions and services, and it possesses adequate legal authority to enter into this Agreement. ARTICLE 3: PERFORMANCE PERIOD This Agreement shall be effective when signed by the last party whose signing makes the Agreement fully executed and will remain in full force and effect for one (1) year. This Agreement shall automatically renew for successive one -year terms unless sooner terminated in accordance with Article 6 below. Any modification of this Agreement must comply with the requirements of Article 4 below. ARTICLE 4: CHANGES AND AMENDMENTS This Agreement may be amended only by a written amendment executed by both parties, except that any alternations, additions, or deletions to the terms of this Agreement which are required by changes in Federal and State law or regulations are automatically incorporated into this Agreement without written amendment hereto and shall become effective on the date designated by such law or regulation. NCTCOG reserves the right from time to time to make changes in the scope of products and services offered through the Shared Services cooperative purchasing program. ARTICLE 5: TERMINATION PROCEDURES NCTCOG or the Participant may cancel this Agreement for any reason and at any time upon thirty (30) days written notice by certified mail to the other party to this Agreement. The obligation of the Participant to pay for any Service and /or Products purchased under this Agreement, shall survive such cancellation, as well as any other Participant costs incurred prior to the effective date of the cancellation. ARTICLE 6: APPLICABLE LAWS NCTCOG and the Participant agree to conduct all activities under this Contract in accordance with all applicable riles, regulations, and ordinances and laws in effect or promulgated during the term of this Agreement. ARTICLE 7: SEVERABILITY All parties agree that should any provision of this Agreement be determined to be invalid or unenforceable, such determination shall not affect any other term of this Agreement, which shall continue in full force and effect. ARTICLE 8: FORCE MAJEURE To the extent that either party to this Agreement shall be wholly or partially prevented from the performance within the term specified of any obligation or duty placed on such party by reason of or through strikes, stoppage of labor, riot, fire, flood, acts of war, insurrection, accident, order of any court, act of God, or specific cause reasonably beyond the party's control and not attributable to its neglect or nonfeasance, in such event, the time for the performance of such obligation or duty shall be suspended until such disability to perform is removed; provided, however, force maj eure shall not excuse an obligation solely to pay funds. ARTICLE 9: WHOLE AGREEMENT This Agreement and any attachments /addendums, as provided herein, constitute the complete agreement between the parties hereto, and supersede any and all oral and written agreements between the parties relating to matters herein. ARTICLE 10: DISPUTE RESOLUTION The parties to this Agreement agree to the extent possible and not in contravention of any applicable state or federal law or procedure established for dispute resolution, to attempt to resolve any dispute between them regarding this Agreement informally through voluntary mediation, arbitration or any other local dispute mediation process before resorting to litigation. ARTICLE 11: MISCELLANEOUS a. This Agreement has been made under and shall be governed by the laws of the State of Texas. Venue and jurisdiction of any suit or cause of action arising under, or in connection with, this Agreement shall lie exclusively in Tarrant County, Texas. b. The persons executing this Agreement hereby represent that they have authorization to sign on behalf of their respective entities. C. This Agreement and the rights and obligations contained herein may not be assigned by either party without the prior written approval of the other party to this Agreement. THIS INSTRUMENT HAS BEEN EXECUTED IN TWO ORIGINALS BY THE PARTIES HERETO AS FOLLOWS: North Central Texas Council of Governments Shared Services Program 616 Six Flags Drive Arlington, Texas 76011 NCTCOG Executive Director or Designee Signature of Executive Director or Designee Date: Name of Entity Mailing Address City, State, ZIP Code Name & Title of Authorized Official or Designee By: Signature of Authorized Official or Designee Date: AGENDA INFORMATION SHEET AGENDA DATE: November 5, 2013 DEPARTMENT: Planning and Development/Community Development ACM: John Cabrales, Jr. Y SUBJECT Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager to execute an agreement between the City and Fred Moore Day Nursery School to provide Community Development Block Grant funds for improvements to the facility at 821 Cross Timber Street, Denton, Texas; authorizing the expenditure of funds therefore, not to exceed $268,400; and providing for an effective date. BACKGROUND Fred Moore Day Nursery School ( FMDNS) is a nonprofit childcare facility providing low -cost daycare for low to moderate- income families. FMDNS will serve a minimum of 62 children ranging in age from six (6) weeks through five (5) years of age. Parents must be working, going to school full time or doing a combination of both to be eligible. FMDNS is open from 6:30 am to 6:00 pm, Monday through Friday. Fred Moore is licensed by the Texas Department of Protective and Regulatory Services. City of Denton Community Development Block Grant (CDBG) funds will be used to complete the following facility improvements /additions: • Indoor Gym /Play Area • Storage Area • Offices • Restroom The facility and surrounding property is currently owned by FMDNS. If, for any reason, FMDNS were to stop providing daycare services to low and moderate - income families, the property would revert back to the Denton Independent School District (ISD). A letter dated May 2, 2013, from the Mia Price, President of the Denton ISD Board of Trustees, states that if this were to occur, Denton ISD would work with City staff to continue providing services from the facility that would benefit low and moderate- income families. ESTIMATED PROJECT SCHEDULE • Work specifications have been developed; • Bidding process completed in October 2013; • Work to begin in November /December 2013; • All improvements completed by February 2014. Agenda Information Sheet November 5, 2013 Page 2 PRIOR ACTION/REVIEW (Councils, Boards, Commissions) The Community Development Advisory Committee recommended approval of funding for improvements to the Fred Moore Day Nursery School facility. Funding for the project was included in the City's 2013 Action Plan for Housing and Community Development. City Council passed Resolution No. R1013 -013 to approve the Action Plan on May 7, 2013. FISCAL INFORMATION Community Development Block Grant funds are budgeted for the project. Community Development staff costs to monitor constriction and labor standards compliance is paid through CDBG and general fund dollars. EXHIBITS 1. Denton ISD Correspondence 2. Ordinance Respectfully submitted: Brian Locldey Interim Director of Planning & Development Prepared by: Barbara Ross Community Development Administrator Exhibit I Oro .1 Denton ISD Correspondence A 4T4&" eW1110 93� N. Iou�z St, 1?c:.xo�., Tin )620 (940) 369 -0002 • few (140) 3614182 May 2, 2013 13fia Pike (Presrderrt Dear Mayor and Members of the Denton City Council: GfemiaYfarns, M.0, The Board of Trustees is a strong advocate of providing pre - school services to our youngest Nrce- (President children. We are aware of the important assistance that the Fred Moore Day Nursery School (FMDNS) bestows upon our community and to the children who will one day be tidy QZgdriduez entering our public schools. Secretory The Denton Independent School District (Denton ISD) Board of Trustees supports the City of Denton's (City) proposed use of $286,759 In Federal Community Development Block Grant 9imA�expiler (CDBG) funding to allow FMDNS to add an additional classroom and complete the nierrrGcr playground, fencing, sidewalks, off - street parking, and other facility improvements. This Is in addition to the $120,400 in Community Development Black Grant funding that the City allocated in 2011 to replace the roof, flooring, doors and to complete electrical and JieutLe �afeni�rrnrs plumbing upgrades. JV r As we have been Informed by the City staff, the CDBG funds to be used for the Jea►retta Srrritl FMDNS renovation have specific federal requirements that must be met. If the City is not llzerrrGer in compliance with these requirements, the Department of Housing and Urban Development has the authority to request repayment of the funding expended for facility improvements. It is noted that, according to Federal regulations, the facility must CFrartesStafford continue to be used for activities benefitting low and moderate - income families and /or nleinber individuals for a five -year period following the completion of the projects, Based on the Information received from the City's Community Development Division, Denton ISD supports the services provided by Fred Moore Day Nursery School. If, for any reason, the organization Is unable to continue providing day care services to lower income families in our community, Denton ISD will work with the City to determine an appropriate alternative Service, provided this service does not require allocation of financial or human resources at the expense of Denton ISD. This service would utilize the recently renovated facility and would be designed to meet the CDBG requirements for the remainder of the five -year period by benefitting low and moderate - income households within the City. Sincerely, Mla\Price, President Denton ISD Board of Trustees Exhibit 2 Ordinance sAlegal \our documents\ordinancesUMcdbg Fred moore day nusery.domdoc ORDINANCE NO AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A FUNDING AGREEMENT BETWEEN THE CITY AND FRED MOORE DAY NURSERY SCHOOL TO PROVIDE COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR IMPROVEMENTS "TO THE FACILITY AT 821 CROSS TIMBER STREET, DENTON, TEXAS; AUTHORIZING THE EXPENDITURE OF FUNDS NOT TO EXCEED $268,400; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City has received funds from the U.S. Department of Housing and Urban Development under the Housing and Community Development Act of 1974, as amended; and WHEREAS, the City Council has approved the 2013 Action Plan for Housing and Community Development which includes an authorized budget for expenditure of funds for improvements to the Fred Moore Day Nursery School facility; and WHEREAS, the Fred Moore Day Nursery School has developed a program to assist low and moderate- income families with affordable child care services; and WHEREAS, the City Council deems it in the public interest to enter into an agreement for improvements to the child care facility to provide much needed services for Denton families; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager is hereby authorized to execute the attached Agreement between the City of Denton and the Fred Moore Day Nursery School to provide for improvements to the day care facility noted therein. SECTION 2. The City Council hereby authorizes the City Manager to expend funds in the manner and amount specified in the Agreement, not to exceed $268,400 and to take any other actions necessary to complete the City's obligations under the Agreement. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of _ .. ..................�......_.� 2013. MARK A. BURROUGHS, MAYOR s; \legal \our documents \ordinances \13 \cdbg fred moore day nusery,docx.doc ATTEST: JENNIFER WALTERS, CITY SECRETARY ROW APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY` 2013 -2014 AGREEMENT BETWEEN THE CITY OF DENTON AND THE FRED MOORE DAY NURSERY SCHOOL This Agreement is made and entered into by and between the City of Denton, a Texas munici- pal corporation, acting by and through its City Manager, pursuant to ordinance, hereinafter referred to as CITY, and the Fred Moore Day Nursery School, 821 Cross Timber Street, Denton, Texas, 76205, a Texas non - profit corporation, hereinafter referred to as SUBRECIPIENT. WHEREAS, CITY has received certain funds from the U.S. Department of Housing and Urban Development under Title I of the Housing and Community Development Act of 1974, as amended, CDBG Program, CFDA Number 14 -218; and WHEREAS, CITY has adopted a budget for such funds and included therein an authorized budget for expenditure of funds for improvements to their existing day care facility for the SUBRECIPIENT; and WHEREAS, CITY has designated the Community Development Division as the division re- sponsible for the administration of this Agreement and all matters pertaining thereto; and WHEREAS, CITY wishes to engage SUBRECIPIENT to carry out such project; NOW, THEREFORE, the parties hereto agree, and by the execution hereof are bound to the mutual obligations and to the performance and accomplishment of the conditions hereinafter described. 1. TERM This Agreement shall commence on or as of September 1, 2013,. and shall terminate on August 31, 2019, unless sooner terminated in accordance with Section 26 "Termination ". 2. RESPONSIBILITIES SUBRECIPIENT hereby accepts the responsibility for the performance of all services and ac- tivities described in the Scope of Services attached hereto as Attachment A, and incorporated herein by reference, in a satisfactory and efficient manner as determined by CITY, in accordance with the terms herein. CITY will consider SUBRECIPIENT's executive officer to be SUBRECIPIENT's representa- tive responsible for the management of all contractual matters pertaining hereto, unless written notifi- cation to the contrary is received from SUBRECIPIENT, and approved by CITY. The CITY's Community Development Administrator will be CITY's representative responsible for the administration of this Agreement. SUBRECIPIENT certifies that the activities carried out with Community Development Block Grant funds shall meet the program's National Objective of benefit to low and moderate - income per- sons. SUBRECIPIENT shall provide services to persons whose income is equal to or lower than 80% of the median income of the Dallas standard metropolitan statistical area. To accomplish this, the Page 1 of 26 SUBRECIPIENT shall use the current applicable income limits published by the Department of Hous- ing and Urban Development for the CDBG program. Income eligibility shall be determined by the sum of the gross income of all individuals residing in the household. Services must be provided direct- ly to or on behalf of specific identified eligible clients. Eligibility documentation must be included in each client's file and updated annually or services must be provided to a clientele that is within a "pre- sumed benefit" category. 3. CITY'S OBLIGATION A. Limit of Liability. CITY will reimburse SUBRECIPIENT for expenses incurred pursuant and in accordance with the project budget attached hereto as Attachment B and the Scope of Ser- vices herein attached as Attachment A and incorporated herein by reference. Notwithstanding any other provision of the Agreement, the total of all payments and other obligations made or incurred by CITY hereunder shall not exceed the sum of $268,400. B. Measure of Liability. In consideration of full and satisfactory services and activities hereun- der by SUBRECIPIENT and receipt of a requisition for payment with appropriate documenta- tion of expenditures, CITY shall make payments to SUBRECIPIENT based on the Budget at- tached hereto and incorporated herein for all purposes as Attachment B, subject to the limita- tions and provisions set forth in this Section and Section 7 of this Agreement. Payments may be contingent upon certification of the SUBRECIPIENT's financial management system in ac- cordance with the standards specified in OMB Circular A -110. (1) The parties expressly understand and agree that CITY's obligations under this Section are contingent upon the actual receipt of adequate Community Development Block Grant (CDBG) funds to meet CITY's liabilities under this Agreement. If adequate funds are not available to make payments under this Agreement, CITY shall notify SUBRECIPIENT in writing within a reasonable time after such fact has been deter- mined. CITY may, at its option, either reduce the amount of its liability, as specified in Subsection A of this Section or terminate the Agreement. If CDBG funds eligible for use for purposes of this Agreement are reduced, CITY shall not be liable for further payments due to SUBRECIPIENT under this Agreement. (2) It is expressly understood that this Agreement in no way obligates the General Fund or any other monies or credits of the City of Denton. (3) CITY shall not be liable for any cost or portion thereof which: (a) has been paid, reimbursed or is subject to payment or reimbursement, from any other source; (b) was incurred prior to the beginning date, or after the ending date specified in Section 1; (c) is not in strict accordance with the terms of this Agreement, including all at- tachments attached hereto; (d) has not been billed to CITY within 90 calendar days following billing to SUBRECIPIENT, or termination of the Agreement, whichever date is earlier; or Page 2 of 26 (e) is not an allowable cost as defined by Section 10 of this Agreement or the pro- ject budget. (4) CITY shall not be liable for any cost or portion thereof which is incurred with respect to any activity of SUBRECIPIENT requiring prior written authorization from CITY, or af- ter CITY has requested that SUBRECIPIENT furnish data concerning such action prior to proceeding further, unless and until CITY advises SUBRECIPIENT to proceed. (5) CITY shall not be obligated or liable under this Agreement to any party other than SUBRECIPIENT for payment of any monies or provision of any goods or services. (6) Funding not expended within two years of initial contract approval will revert to the City of Denton CDBG budget for use on alternative projects. 4. COMPLIANCE WITH FEDERAL, STATE AND LOCAL LAWS A. SUBRECIPIENT understands that funds provided to it pursuant to this Agreement are funds which have been made available to CITY by the Federal Government (U.S. Department of Housing and Urban Development) under the Housing and Community Development Act of 1974, as amended, in accordance with an approved Grant Application and specific assurances. Accordingly, SUBRECIPIENT assures and certifies that it will comply with the requirements of the Housing and Community Development Act of 1974 (P.L. 93 -383) as amended and with regulations promulgated thereunder, and codified at 24 CFR 570. The foregoing is in no way meant to constitute a complete compilation of all duties imposed upon SUBRECIPIENT by law or administrative ruling, or to narrow the standards which SUBRECIPIENT must follow. SUBRECIPIENT further accrues and certifies that if the regulations and issuances promulgated pursuant to the Act are amended or revised, it shall comply with them, or notify CITY, as pro- vided in Section 23 of this Agreement. SUBRECIPIENT agrees to abide by the conditions of and comply with the requirements of the Office of Management and Budget Circulars Nos. A -122, A -87, A -133 and the regulations at 24 CFR Part 84 as applicable. B. SUBRECIPIENT shall comply with all applicable federal laws, laws of the State of Texas and ordinances of the City of Denton. C. SUBRECIPIENT is required to comply with the applicable uniform administrative require- ments as described in 24 CFR 570.502, 570.505 and 24 CFR 570 subpart K with the exceptions noted below: (1) SUBRECIPIENT does not assume CITY'S environmental responsibilities described at CFR 570.604; and (2) SUBRECIPIENT does not assume the CITY's responsibility for initiating the review process under the provisions of 24 CFR Part 52. Page 3 of 26 D. SUBRECIPIENT agrees to comply with the requirements of the Secretary of Labor in accord- ance with the Davis -Bacon Act as amended, the provisions of the Contract Work Hours Safety Standards Act, the Copeland "Anti- Kickback Act (40 U.S.C. 276a- 276a -5; 40 USC 327 and 40 USC 276c) and all other applicable Federal, state and local laws and regulations pertaining to labor standards and insofar as those acts apply to the performance of this contract. SUBRECIPIENT will work with CITY to obtain and maintain documentation of compliance. Upon written request by the CITY, SUBRECIPIENT will obtain the services of consultant to monitor the contractor's compliance with these requirements. E. SUBRECIPIENT agrees to comply with the provisions of Section 3, the regulations set forth in 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution of this agreement, and shall also be binding on any of the SUBRECIPIENT' S subcontractors. The SUBRECIPIENT certifies that no contractual or other disability exists which would prevent compliance with these requirements. SUBRECIPIENT further agrees to include a statement in all subcontracts requiring compliance with Section 3 and requiring subcontractors, to the great- est extent feasible, to provide opportunities for training and employment to low and moderate - income individuals that are residents of the project area. Upon written request of the CITY, SUBRECIPIENT will obtain the services of a consultant to monitor the general contractor's compliance with the Section 3 requirements. F„ SUBRECIPIENT certifies that it is not currently listed on the General Services Administration's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in accordance with Executive Orders 12549 and 12689 and will not enter into agreements to expend Federal funds with contractors that are currently listed. 5. REPRESENTATIONS A. SUBRECIPIENT assures and guarantees that it possesses the legal authority, pursuant to any proper, appropriate and official motion, resolution or action passed or taken, to enter into this Agreement. B. The person or persons signing and executing this Agreement on behalf of SUBRECIPIENT do hereby warrant and guarantee that he, she, or they have been fully authorized by SUBRECIPIENT to execute this Agreement on behalf of SUBRECIPIENT and to validly and legally bind SUBRECIPIENT to all terms, performances and provisions herein set forth. C. CITY shall have the right, at its option, to either temporarily suspend or permanently terminate this Agreement if there is a dispute as to the legal authority of either SUBRECIPIENT or the person signing the Agreement to enter into this Agreement. SUBRECIPIENT is liable to CITY for any money it has received from CITY for performance of the provisions of this Agreement if CITY has suspended or terminated this Agreement for the reasons enumerated in this Sec- tion. D, SUBRECIPIENT agrees that the funds and resources provided to SUBRECIPIENT under the terms of this Agreement will in no way be substituted for funds and resources from other sources, nor in any way serve to reduce the resources, services, or other benefits which would Page 4 of 26 have been available to, or provided through, SUBRECIPIENT had this Agreement not been ex- ecuted. 6. PERFORMANCE BY SUBRECIPIENT SUBRECIPIENT will provide, oversee, administer, and carry out all of the activities and ser- vices set out in the Work Statement, attached hereto and incorporated herein for all purposes as At- tachment A, utilizing the funds described in Attachment B, attached hereto and incorporated herein for all purposes and deemed by both parties to be necessary and sufficient payment for full and satisfacto- ry performance of the program, as determined solely by CITY and in accordance with all other terms, provisions and requirements of this Agreement. No modifications or alterations may be made in the Scope of Services without the prior written approval of the City's Community Development Administrator. 7. PAYMENTS TO SUBRECIPIENT A. The CITY shall pay to the SUBRECIPIENT a maximum amount of money totaling $286,759 for activities carried out under this Agreement. CITY will pay these funds on a reimbursement basis to the SUBRECIPIENT within twenty days after CITY has received supporting documen- tation of eligible expenditures. SUBRECIPIENT's failure to request reimbursement on a timely basis may jeopardize present or future funding. Funds are to be used for the sole purpose of completing facility improvements based on the budget herein attached as Attachment B. These improvements will support the SUBRECIPIENT'S efforts to carry out the activities described in the Scope of Services herein attached as Attachment A. B. Excess Payment. SUBRECIPIENT shall refund to CITY within ten working days of CITY's request, any sum of money which has been paid by CITY and which CITY at any time thereaf- ter determines: (1) has resulted in overpayment to SUBRECIPIENT; or (2) has not been spent strictly in accordance with the terms of this Agreement; or (3) is not supported by adequate documentation to fully justify the expenditure. C. Disallowed Costs. Upon termination of this Agreement, should any expense or change for which payment has been made be subsequently disallowed or disapproved as a result of any auditing or monitoring by CITY, the Department of Housing and Urban Development, or any other Federal agency, SUBRECIPIENT will refund such amount to CITY' within ten working days of a written notice to SUBRECIPIENT, which specifies the amount disallowed. Refunds of disallowed costs may not be made from these or any funds received from or through CITY Page 5 of 26 D. Reversion of Assets. SUBRECIPIENT, upon expiration of this Agreement shall transfer to the CITY any CDBG funds on hand at the time of expiration and any accounts receivable attribut- able to the use of CDBG funds. If CITY finds that SUBRECIPIENT is unwilling and /or unable to comply with any of the terms of this Contract, CITY may require a refund of any and all money expended pursuant to this Contract by SUBRECIPIENT, as well as any remaining un- expended funds which shall be refunded to CITY within ten working days of a written notice to SUBRECIPIENT to revert these financial assets. The revision of these financial assets shall be in addition to any other remedy available to CITY either at law or in equity for breach of this Contract. E. Obligation of Funds. In the event that actual expenditure rates deviate from SUBRECIPIENT's provision of a corresponding level of performance, as specified in Attachment A, CITY hereby reserves the right to reappropriate or recapture any such underexpended funds. F. Contract Close Out. If requested, SUBRECIPIENT shall submit the Agreement close out pack- age to CITY, together with a final expenditure report, for the time period covered by the last invoice requesting reimbursement of funds under this Agreement, within 15 working days fol- lowing the close of the Agreement period. SUBRECIPIENT shall utilize the form agreed upon by CITY and SUBRECIPIENT. 8. WARRANTIES SUBRECIPIENT represents and warrants that: A. All information, reports and data heretofore or hereafter requested by CITY and furnished to CITY, are complete and accurate as of the date shown on the information, data, or report, and, since that date, have not undergone any significant change without written notice to CITY. B. Any supporting financial statements heretofore requested by CITY and furnished to CITY, are complete, accurate and fairly reflect the financial condition of SUBRECIPIENT on the date shown on said report, and the results of the operation for the period covered by the report, and that since said date, there has been no material change, adverse or otherwise, in the financial condition of SUBRECIPIENT. C. No litigation or legal proceedings are presently pending or threatened against SUBRECIPIENT. D, None of the provisions herein contravene or are in conflict with the authority under which SUBRECIPIENT is doing business or with the provisions of any existing indenture or agree- ment of SUBRECIPIENT. E. SUBRECIPIENT has the power to enter into this Agreement and accept payments hereunder, and has taken all necessary action to authorize such acceptance under the terms and conditions of this Agreement. Page 6 of 26 F, None of the assets of SUBRECIPIENT are subject to any lien or encumbrance of any character, except for current taxes not delinquent, except as shown in the financial statements and /or other documents furnished by SUBRECIPIENT to CITY. G. Each of these representations and warranties shall be continuing and shall be deemed to have been repeated by the submission of each request for payment. 9. COVENANTS A. During the period of time that payment may be made hereunder and so long as any payments remain unliquidated, SUBRECIPIENT shall not, without the prior written consent of the Com- munity Development Administrator or her authorized representative: (1) Mortgage, pledge, or otherwise encumber or suffer to be encumbered, any of the assets of SUBRECIPIENT now owned or hereafter acquired by it, or permit any pre- existing mortgages, liens, or other encumbrances to remain on, or attached to, any assets of SUBRECIPIENT which are allocated to the performance of this Agreement and with respect to which CITY has ownership hereunder. (2) Sell, assign, pledge, transfer or otherwise dispose of accounts receivables, notes or claims for money due or to become due. (3) Sell, convey, or lease all or substantial part of its assets. (4) Make any advance or loan to, or incur any liability for any other firm, person, entity or corporation as guarantor, surety, or accommodation endorser. (5) Sell, donate, loan or transfer any equipment or item of personal property purchased with funds paid to SUBRECIPIENT by CITY, unless CITY authorizes such transfer. (6) Enter into any subcontracts with any agency or individual in the performance of this contract without the written consent of the Grantee prior to the execution of such an agreement. B, SUBRECIPIENT agrees, upon written request by CITY, to require its employees to attend training sessions sponsored by the Community Development Division. Page 7 of 26 10. ALLOWABLE COSTS A. Costs shall be considered allowable only if incurred directly and specifically in the perfor- mance of and in compliance with this Agreement and in conformance with the standards and provisions of Attachments A and B. B. Approval of SUBRECIPIENT's budget, Attachment B, does not constitute prior written ap- proval, even though certain items may appear herein. CITY's prior written authorization is re- quired in order for the following to be considered allowable costs: (1) CITY shall not be obligated to any third parties, including any contractors of SUBRECIPIENT, and CITY funds shall not be used to pay for any contract service ex- tending beyond the expiration of this Agreement. Written requests for prior approval are SUBRECIPIENT's responsibility and shall be made within sufficient time to permit a thorough review by CITY. SUBRECIPIENT must obtain written approval by CITY prior to the commencement of procedures to solicit or purchase ser- vices, equipment, or real or personal property. Any procurement or purchase which may be ap- proved under the terms of this Agreement must be conducted in its entirety in accordance with the provisions of this Agreement. 11. PROGRAM INCOME A. For purposes of this Agreement, program income means earnings of SUBRECIPIENT realized from activities resulting from this Agreement or from SUBRECIPIENT's management of fund- ing provided or received hereunder. Such earnings include, but are not limited to, income from interest, usage or rental or lease fees, income produced from contract - supported services of in- dividuals or employees or from the use or sale of equipment or facilities of SUBRECIPIENT provided as a result of this Agreement, and payments from clients or third parties for services rendered by SUBRECIPIENT under this Agreement. B. SUBRECIPIENT shall maintain records of the receipt and disposition of program income in the same manner as required for other contract funds, and reported to CITY in the format pre- scribed by CITY. CITY and SUBRECIPIENT agree that any fees collected for services per- formed by SUBRECIPIENT shall be used for payment of costs associated with service provi- sion. Revenue remaining after payment of all program expenses for service provision shall be considered Program Income and shall be subject to all the requirements of this Agreement and the regulations found at CFR, Section 570.504. C. SUBRECIPIENT shall include this Section in its entirety in all of its contracts which involve other income - producing services or activities. D. It is SUBRECIPIENT's responsibility to obtain from CITY a prior determination as to whether or not income arising directly or indirectly from this Agreement, or the performance thereof, constitutes program income. SUBRECIPIENT is responsible to CITY for the repayment of any Page 8 of 26 and all amounts determined by CITY to be program income, unless otherwise approved in writ- ing by CITY. 12. MAINTENANCE OF RECORDS A. SUBRECIPIENT agrees to maintain records that will provide accurate, current, separate, and complete disclosure of the status of the funds received under this Agreement, in compliance with the provisions of Attachment B, attached hereto, and with any other applicable Federal and State regulations establishing standards for financial management including OMB Circu- lars A -87, A -122, A -133 and the regulations at 24 CFR Part 84 as applicable; Title 24 CFR Section 570.502 (b); Title 24 CFR Sections 570.504 and 570.506 as they pertain to costs in- curred, audits, program income, administration and other activities and functions. SUBRECIPIENT's record system shall contain sufficient documentation to provide in detail full support and justification for each expenditure. Nothing in this Section shall be construed to relieve SUBRECIPIENT of fiscal accountability and liability under any other provision of this Agreement or any applicable law. SUBRECIPIENT shall include the substance of this provi- sion in all subcontracts. B. SUBRECIPIENT agrees to retain all books, records, documents, reports, and written account- ing procedures pertaining to the operation of programs and expenditures of funds under this Agreement for five years. C. Nothing in the above subsections shall be construed to relieve SUBRECIPIENT of responsibil- ity for retaining accurate and current records, which clearly reflect the level and benefit of ser- vices provided under this Agreement. D. At any reasonable time and as often as CITY may deem necessary, the SUBRECIPIENT shall make available to CITY, HUD, or any of their authorized representatives, all of its records and shall permit CITY, HUD, or any of their authorized representatives to audit, examine, make ex- cerpts and copies of such records, and to conduct audits of all contracts, invoices, materials, payrolls, records of personnel, conditions or employment and all other data requested by said representatives. 13. REPORTS AND INFORMATION At such times and in such form as CITY may require, SUBRECIPIENT shall furnish such statements, records, data and information as CITY may request and deem pertinent to matters covered by this Agreement. SUBRECIPIENT shall submit quarterly beneficiary and financial reports to CITY no less than once each three months. The beneficiary report shall detail client information, including race, income, female head of household and other statistics required by CITY. The financial report shall include in- formation and data relative to all programmatic and financial reporting as of the beginning date speci- fied in Section I of this Agreement. Beneficiary and financial reports shall be due to City within 15 working days after the completion of each quarter. Page 9 of 26 Unless the CITY has granted a written exemption, SUBRECIPIENT shall submit an audit con- ducted by independent examiners in accordance with Generally Accepted Accounting Principles. If the SUBRECIPIENT receives and /or expends more than $500,000 in federal funding, the audit must be conducted in accordance with OMB Circular A -133 as applicable within thirty days after receipt of such audit. 14. MONITORING AND EVALUATION A. CITY shall perform on -site monitoring of SUBRECIPIENT's performances under this Agree- ment. B. SUBRECIPIENT agrees that CITY may carry out monitoring and evaluation activities to en- sure adherence by SUBRECIPIENT to the Scope of Services, and Program Goals and Objec- tives, which are attached hereto as Attachment A, as well as other provisions of this Agree- ment. C. SUBRECIPIENT agrees to cooperate fully with CITY in the development, implementation and maintenance of record - keeping systems and to provide data determined by CITY to be neces- sary for CITY to effectively fulfill its monitoring and evaluation responsibilities. D. SUBRECIPIENT agrees to cooperate in such a way so as not to obstruct or delay CITY in such monitoring and to designate one of its staff members to coordinate the monitoring process as requested by CITY staff. E. After each official monitoring visit, CITY shall provide SUBRECIPIENT with a written report of monitoring findings documenting findings and concerns that will require a written response to the City. An acceptable response must be received by the City within 60 days from the SUBRECIPIENT's receipt of the monitoring report or audit review letter. Future contract payments can be withheld for SUBRECIPIENT's failure to submit a response within 60 days. F. SUBRECIPIENT shall submit copies of any fiscal, management, or audit reports by any of SUBRECIPIENT's funding or regulatory bodies to CITY within five working days of receipt by SUBRECIPIENT. G. SUBRECIPIENT will monitor all subcontracted services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and support- ed with documented evidence of follow -up actions taken to correct areas of noncompliance. 15. DIRECTORS' MEETINGS During the terms of this Agreement, SUBRECIPIENT shall cause to be delivered to CITY cop- ies of all notices of meetings of its Board of Directors, setting forth the time and place thereof. Such notice shall be delivered to CITY in a timely manner to give adequate notice, and shall include an agenda and a brief description of the matters to be discussed. SUBRECIPIENT understands and agrees that CITY representatives shall be afforded access to all of the Board of Directors' meetings. Page 10 of 26 Minutes of all meetings of SUBRECIPIENT's governing body shall be available to CITY with- in ten days after Board approval. 16. INSURANCE A. SUBRECIPIENT shall observe sound business practices with respect to providing such bond- ing and insurance as would provide adequate coverage for services offered under this Agree- ment. B, The premises on and in which the activities described in Attachment A are conducted, and the employees conducting these activities, shall be covered by premise liability insurance, com- monly referred to as "Owner /Tenant" coverage with CITY named as an additional insured. Up- on request of SUBRECIPIENT, CITY may, at its sole discretion, approve alternate insurance coverage arrangements. C. SUBRECIPIENT will comply with applicable workers' compensation statues and will obtain employers' liability coverage where available and other appropriate liability coverage for pro- gram participants, if applicable. D. SUBRECIPIENT will maintain adequate and continuous liability insurance on all vehicles owned, leased or operated by SUBRECIPIENT. All employees of SUBRECIPIENT who are required to drive a vehicle in the normal scope and course of their employment must possess a valid Texas driver's license and automobile liability insurance. Evidence of the employee's current possession of a valid license and insurance must be maintained on a current basis in SUBRECIPIENT's files. E. Actual losses not covered by insurance as required by this Section are not allowable costs under this Agreement, and remain the sole responsibility of SUBRECIPIENT. F. The policy or policies of insurance shall contain a clause which requires that CITY and SUBRECIPIENT be notified in writing of any cancellation of change in the policy at least 30 days prior to such change or cancellation. 17. CIVIL RIGHTS / EQUAL OPPORTUNITY A. SUBRECIPIENT shall comply with all applicable equal employment opportunity and affirma- tive action laws or regulations. The SUBRECIPIENT shall not discriminate against any em- ployee or applicant for employment because of race, color, creed, religion, national origin, gen- der, age or disability. The SUBRECIPIENT will take affirmative action to insure that all em- ployment practices are free from such discrimination. Such employment practices include but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruit- ment advertising, layoff, termination, rates of pay or other forms of compensation and selection for training, including apprenticeship... B. The SUBRECIPIENT agrees to comply with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 104(b) and Section Page 11 of 26 109 of Title 1 of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063 and Executive Order 11246 as amended by Executive Orders 11375 and 12086. C. SUBRECIPIENT will furnish all information and reports requested by the CITY, and will per- mit access to its books, records, and accounts for purposes of investigation to ascertain compli- ance with local, state and Federal rules and regulations. D. In the event of SUBRECIPIENT's non - compliance with the non - discrimination requirements, CITY may cancel or terminate the Agreement in whole or in part, and SUBRECIPIENT may be barred from further contracts with CITY. 18. PERSONNEL POLICIES Personnel policies shall be established by SUBRECIPIENT and shall be available for examination. Such personnel policies shall: A. Be no more liberal than CITY's personnel policies, procedures, and practices, including poli- cies with respect to employment, salary and wage rates, working hours and holidays, fringe benefits, vacation and sick leave privileges, and travel; and B. Be in writing and shall be approved by the governing body of SUBRECIPIENT and by CITY. 19. CONFLICT OF INTEREST A. SUBRECIPIENT covenants that neither it nor any member of its governing body presently has any interest, direct or indirect, which would conflict in any manner or degree with the perfor- mance of services required to be performed under this Agreement. SUBRECIPIENT further covenants that in the performance of this Agreement, no person having such interest shall be employed or appointed as a member of its governing body. B. SUBRECIPIENT further covenants that no member of its governing body or its staff, contrac- tors or employees shall possess any interest in or use his position for a purpose that is or gives the appearance of being motivated by desire for private gain for himself /herself, or others, par- ticularly those with which he /she has family, business, or other ties. C. No officer, member, or employee of CITY and no member of its governing body who exercises any function or responsibilities in the review or approval of the undertaking or carrying out of this Agreement shall participate in any decision relating to the Agreement which affects his or her personal interest or the interest in any corporation, partnership, or association in which he or she has a direct or indirect interest. Page 12 of 26 20. NEPOTISM SUBRECIPIENT shall not employ in any paid capacity any person who is a member of the immediate family of any person who is currently employed by SUBRECIPIENT, or is a member of SUBRECIPIENT's governing board. The term "member of immediate family" includes: wife, husband, son, daughter, mother, father, brother, sister, in -laws, aunt, uncle, nephew, niece, step - parent, step - child, half - brother and half - sister. 21. POLITICAL OR SECTARIAN ACTIVITY A, Neither the funds advanced pursuant to this Agreement, nor any personnel who may be em- ployed by the SUBRECIPIENT with funds advanced pursuant to this Agreement shall be in any way or to any extent engaged in any conduct or political activity in contravention of Chap- ter 15 of Title 5 of the United States Code. B, The SUBRECIPIENT is prohibited from using funds provided herein or personnel employed in the administration of the program for: political activities; sectarian or religious activities, lob- bying, political patronage or nepotism activities. C, The SUBRECIPIENT agrees that none of the funds or services provided directly or indirectly under this Agreement shall be used for any partisan political activity or to further the election of defeat of any candidate for public office, or for publicity, lobbying and /or propaganda pur- poses designed to support or defeat pending legislation. Employees of the SUBRECIPIENT connected with any activity that is funded in whole or in part by funds provided to SUBRECIPIENT under this Agreement may not under the term of this Agreement: 1. use their official position or influence to affect the outcome of an election or nomination. 2. solicit contributions for political purposes; or 3. take an active part in political management or in political campaigns. SUBRECIPIENT hereby agrees to sign a Certification Regarding Lobbying included herein as Attachment "I"' and if necessary, the Disclosure of Lobbying Activities provided by the CITY. 22. PUBLICITY A. Where such action is appropriate, SUBRECIPIENT shall publicize the activities conducted by SUBRECIPIENT under this Agreement. In any news release, sign, brochure, or other advertis- ing medium, disseminating information prepared or distributed by or for SUBRECIPIENT, the advertising medium shall state that the U.S. Department of Housing and Urban Development's Community Development Block Grant Program funding through the City of Denton has made the project possible. B. All published material and written reports submitted under this project must be originally de- veloped material unless otherwise specifically provided in this Agreement. When material not originally developed is included in a report, the report shall identify the source in the body of Page 13 of 26 the report or by footnote. This provision is applicable when the material is in a verbatim or ex- tensive paraphrase format. All published material submitted under this project shall include the following reference on the front cover or title page: This document is prepared in accordance with the City of Denton's Community Development Block Grant Program, with funding received from the United States Department of Housing and Urban Development. C. All reports, documents, studies, charts, schedules, or other appended documentation to any proposal, content of basic proposal, or contracts and any responses, inquiries, correspondence and related material submitted by SUBRECIPIENT shall become the property of CITY upon receipt. 23. CHANGES AND AMENDMENTS A. Any alterations, additions, or deletions to the terms of this Agreement shall be by written amendment executed by both parties, except when the terms of this Agreement expressly pro- vide that another method shall be used. B. SUBRECIPIENT may not make transfers between or among approved line items within budget categories set forth in Attachment B without prior written approval of CITY. SUBRECIPIENT shall request, in writing, the budget revision in a form prescribed by CITY, and such request for revision shall not increase the total monetary obligation of CITY under this Agreement. In ad- dition, budget revisions cannot significantly change the nature, intent, or scope of the program funded under this Agreement. C, SUBRECIPIENT will submit revised budget and program information, whenever the level of funding for SUBRECIPIENT or the program(s) described herein is altered according to the to- tal levels contained in any portion of Attachment B. D. It is understood and agreed by the parties hereto that changes in the State, Federal or local laws or regulations pursuant hereto may occur during the term of this Agreement. Any such modifi- cations are to be automatically incorporated into this Agreement without written amendment hereto, and shall become a part of the Agreement on the effective date specified by the law or regulation. E. CITY may, from time to time during the term of the Agreement, request changes in Attachment A, which may include an increase or decreased in the amount of SUBRECIPIENT's compensa- tion. Such changes shall be incorporated in a written amendment hereto, as provided in Subsec- tion A of this Section. F, Any alterations, deletion, or additions to the Contract Budget Detail incorporated in Attachment B shall require the prior written approval of CITY. Page 14 of 26 G. SUBRECIPIENT agrees to notify CITY of any proposed change in physical location for work performed under this Agreement at least 30 calendar days in advance of the change. H. SUBRECIPIENT shall notify CITY of any changes in personnel or governing board composi- tion. It is expressly understood that neither the performance of Attachment A for any program con- tracted hereunder nor the transfer of funds between or among said programs will be permitted. 24. SUSPENSION OF FUNDING Upon determination by CITY of SUBRECIPIENT's failure to timely and properly perform each of the requirements, time conditions and duties provided herein, CITY, without limiting any rights it may otherwise have, may, at its discretion, and upon ten working days written no- tice to SUBRECIPIENT, withhold further payments to SUBRECIPIENT. Such notice may be given by mail to the Executive Officer and the Board of Directors of SUBRECIPIENT. The no- tice shall set forth the default or failure alleged, and the action required for cure. The period of such suspension shall be of such duration as is appropriate to accomplish correc- tive action, but in no event shall it exceed 30 calendar days. At the end of the suspension peri- od, if CITY determines the default or deficiency has been satisfied, SUBRECIPIENT may be restored to full compliance status and paid all eligible funds withheld or impounded during the suspension period. If however, CITY determines that SUBRECIPIENT has not come into com- pliance, the provisions of Section 26 may be effectuated. 25. TERMINATION A. CITY may terminate this Agreement for cause under any of the following reasons or for other reasons not specifically enumerated in this paragraph: (1) SUBRECIPIENT's failure to attain compliance during any prescribed period of suspension as provided in Section 24. (2) SUBRECIPIENT's failure to materially comply with any of the terms of this Agreement. (3) SUBRECIPIENT's violation of covenants, agreements or guarantees of this Agreement. (4) Termination or reduction of funding by the United States Department of Housing and Ur- ban Development. (5) Finding by CITY that SUBRECIPIENT: (a) is in such unsatisfactory financial condition as to endanger performance under this Agreement; Page 15 of 26 (b) has allocated inventory to this Agreement substantially exceeding reasonable re- quirements; (c) is delinquent in payment of taxes, or of costs of performance of this Agreement in the ordinary course of business. (6) Appointment of a trustee, receiver or liquidator for all or substantial part of SUBRECIPIENT's property, or institution of bankruptcy, reorganization, rearrangement of or liquidation proceedings by or against SUBRECIPIENT. (7) SUBRECIPIENT's inability to conform to changes required by Federal, State and local laws or regulations as provided in Section 4, and Section 2 of this Agreement. (8) The commission of an act of bankruptcy. (9) SUBRECIPIENT's violation of any law or regulation to which SUBRECIPIENT is bound or shall be bound under the terms of the Agreement. CITY shall promptly notify SUBRECIPIENT in writing of the decision to terminate and the ef- fective date of termination. Simultaneous notice of pending termination maybe made to other funding source specified in Attachment B. B, CITY may terminate this Agreement for convenience at any time. If CITY terminates this Agreement for convenience, SUBRECIPIENT will be paid an amount not to exceed the total of accrued expenditures as of the effective date of termination. In no event will this compensation exceed an amount which bears the same ratio to the total compensation as the services actually performed bears to the total services of SUBRECIPIENT covered by the Agreement, less pay- ments previously made. C, SUBRECIPIENT may terminate this Agreement in whole or in part by written notice to CITY, if a termination of outside funding occurs upon which SUBRECIPIENT depends for perfor- mance hereunder. SUBRECIPIENT may opt, within the limitations of this Agreement, to seek an alternative funding source, with the approval of CITY, provided the termination by the out- side funding source was not occasioned by a breach of contract as defined herein or as defined in a contract between SUBRECIPIENT and the funding source in question. SUBRECIPIENT may terminate this Agreement upon the dissolution of SUBRECIPIENT's organization not occasioned by a breach of this Agreement. D, Upon receipt of notice to terminate, SUBRECIPIENT shall cancel, withdraw or otherwise ter- minate any outstanding orders or subcontracts, which relate to the performance of this Agree- ment. CITY shall not be liable to SUBRECIPIENT or SUBRECIPIENT's creditors for any ex- penses, encumbrances or obligations whatsoever incurred after the termination date listed on the notice to terminate referred to in this paragraph. E. Notwithstanding any exercise by CITY of its right of suspension or termination, SUBRECIPIENT shall not be relieved of liability to CITY for damages sustained by CITY by virtue of any breach of the Agreement by SUBRECIPIENT, and CITY may withhold any re- Page 16 of 26 imbursement to SUBRECIPIENT until such time as the exact amount of damages due to CITY from SUBRECIPIENT is agreed upon or otherwise determined. 26. NOTIFICATION OF ACTION BROUGHT In the event that any claim, demand, suit or other action is made or brought by any person(s), firm, corporation or other entity against SUBRECIPIENT, SUBRECIPIENT shall give written notice thereof to CITY within two working days after being notified of such claim, demand, suit or other action. Such notice shall state the date and hour of notification of any such claim, demand, suit or other action; the names and addresses of the person(s), firm, corporation or other entity making such claim, or that instituted or threatened to institute any type of action or proceeding; the basis of such claim, action or proceeding; and the name of any person(s) against whom such claim is being made or threatened. Such written notice shall be delivered ei- ther personally or by mail. 7. INDEMNIFICATION A. It is expressly understood and agreed by both parties hereto that CITY is contracting with SUBRECIPIENT as an independent SUBRECIPIENT and that as such, SUBRECIPIENT shall save and hold CITY, its officers, agents and employees harmless from all liability of any nature or kind, including costs and expenses for, or on account of, any claims, audit exceptions, demands, suits or damages of any character whatsoever re- sulting in whole or in part from the performance or omission of any employee, agent or representative of SUBRECIPIENT. B. SUBRECIPIENT agrees to provide the defense for, and to indemnify and hold harmless CITY its agents, employees, or SUBRECIPIENTs from any and all claims, suits, causes of action, demands, damages, losses, attorney fees, expenses, and liability arising out of the use of these contracted funds and program administration and implementation except to the extent caused by the willful act or omission of CITY, its agents, employees, or SUBRECIPIENTs. 28. RELIGIOUS ACTIVITIES AND FAITH -BASED ORGANIZATIONS A. The SUBRECIPIENT will provide all services under this Agreement in a manner that is exclu- sively non - religious in nature and scope. There shall be no religious services, proselytizing, in- struction or any other religious preference, influence or discrimination in connection with providing the services hereunder. B. As stated in 24 CFR Part 5.109, no organization will be prohibited from participating in activi- ties funded through the CITY's Community Development Block Grant program including pro- grams that make funds available through contracts, grants or cooperative agreements. SUBRECIPIENT shall not discriminate against any organization on the basis of the organiza- tion's religious character or affiliation. Page 17 of 26 29. MISCELLANEOUS A. SUBRECIPIENT shall not transfer, pledge or otherwise assign this Agreement or any interest therein, or any claim arising thereunder, to any party or parties, bank, trust company or other financial institution without the prior written approval of CITY. B, If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the remaining provisions shall remain in full force and effect and continue to conform to the original intent of both parties hereto. C, In no event shall any payment to SUBRECIPIENT hereunder, or any other act or failure of CITY to insist in any one or more instances upon the terms and conditions of this Agreement constitute or be construed in any way to be a waiver by CITY of any breach of covenant or de- fault which may then or subsequently be committed by SUBRECIPIENT. Neither shall such payment, act, or omission in any manner impair or prejudice any right, power, privilege, or remedy available to CITY to enforce its rights hereunder, which rights, powers, privileges, or remedies are always specifically preserved. No representative or agent of CITY may waive the effect of this provision. D. This Agreement, together with referenced attachments, constitutes the entire agreement be- tween the parties hereto, and any prior agreement, assertion, statement, understanding or other commitment antecedent to this Agreement, whether written or oral, shall have no force or effect whatsoever; nor shall an agreement, assertion, statement, understanding, or other commitment occurring during the term of this Agreement, or subsequent thereto, have any legal force or ef- fect whatsoever, unless properly executed in writing, and if appropriate, recorded as an amendment of this Agreement. E. In the event any disagreement or dispute should arise between the parties hereto pertaining to the interpretation or meaning of any part of this Agreement or its governing rules, codes, laws, ordinances or regulations, CITY as the party ultimately responsible to HUD for matters of compliance, will have the final authority to render or to secure an interpretation. E For purposes of this Agreement, all official communications and notices among the parties shall be deemed made if sent postage paid to the parties and address set forth below: TO CITY: TO SUBRECIPIENT: City Manager Executive Director City of Denton Fred Moore Day Nursery School 215 E. McKinney 821 Cross Timber St. Denton, Texas 76201 Denton Texas 76205 G. This Agreement shall be interpreted in accordance with the laws of the State of Texas and ven- ue of any litigation concerning this Agreement shall be in a court competent jurisdiction sitting in Denton County, Texas. Page 18 of 26 IN WITNESS OF WHICH this Agreement has been executed on this the day of .2013. ATTEST: JENNIFER WALTERS, CITY SECRETARY IM APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY m.w ATTEST: BY: w NDY M ��� ��E I�XICUI "IV ; � IRECTOR Page 19 of 26 CITY OF DENTON GEORGE C. CAMPBELL CITY MANAGER FRED MOORE DAY NURSERY SCHOOL BY: ;; �' MAIC�.AI�I B.._._.._..�..___ - _.. BAYS PRESIDENT, BOARD OF DIRECTORS ATTACHMENT "A" SCOPE OF SERVICES Description of Rehabilitation Improvements Renovation project will consist of various improvements to the day care facility. As funding is sufficient, improvements will include but not be limited to construction of an indoor play area, restroom, storage area and purchase and installation of new playground equipment. Work Statement Fred Moore Day Nursery School In order to complete the agreed upon activity SUBRECIPIENT shall provide the following services from the improved facility: Fred Moore Day Nursery School is a nonprofit childcare facility for low to moderate - income fami- lies. FMDNS will serve a minimum of 62 children ranging in age from six (6) weeks through five (5) years of age. Parents must be working, going to school full time or doing a combination of both to be eligible. In addition, parents will be required to volunteer at the childcare center. FMDNS will be open Monday through Friday from 6:30 am to 6:00 p.m. FMDNS will provide the services listed below and meet all stated requirements: • Provision of a safe, healthy environment that will meet the development needs of each child. Activities will be designed for each age group to meet the individual and group needs. The curriculum will include education, emphasizing learning skills, creative arts, motor skills, physical development, speech development, personal hygiene and manners. • Provision of breakfast, lunch and an afternoon snack for each child. All meals will meet the USDA and Texas Department of Human Services Special Nutrition food requirements for children in childcare. • Remain open for service from 6:30 am to 6:00 pm. • Be licensed by the TX Department of Protective and Regulatory Services. • Meet or exceed the TX Department of Human Services minimum standards for Day Care Centers. • Must be a North Central Texas Childcare Services designated vendor. Page 20 ATTACHMENT `B" BUDGET Prior to the start of construction, Fred Moore Day Nursery School, shall provide the Community Development Division with a project budget, documentation of any additional funding sources and commitments (if other funding sources are included in the project), and a project plan- ning/construction schedule. *The "approximate cost" amounts listed above are estimates. Funding may reallocated as needed to complete improvements listed above. Page 21 ATTACHMENT "C" 24 CFR § 570.505 The standards described in this section apply to real property within the recipient's control which was acquired or improved in whole or in part using CDBG funds in excess of $25,000. These standards shall apply from the date CDBG funds are first spent for the property until five years after closeout of an entitlement recipient's participation in the entitlement CDBG program or, with respect to other recipients, until five years after the closeout of the grant from which the assistance to the property was provided. (a) A recipient may not change the use or planned use of any such property (including the beneficiaries of such use) from that for which the acquisition or improvement was made unless the recipient provides affected citizens with reasonable notice of, and opportunity to comment on, any proposed change, and either: (1) The new use of such property qualifies as meeting one of the national objectives in Section 570.208 and is not a building for the general conduct of government; or (2) The requirements in paragraph (b) of this section are met. (b) If the recipient determines, after consultation with affected citizens, that it is appropriate to change the use of the property to a use which does not qualify under paragraph (a)(1) of this section, it may retain or dispose of the property for the changed use if the recipient's CDBG program is reimbursed in the amount of the current fair market value of the property, less any portion of the value attributable to expenditures of non- CDBG funds for acquisition of, and improvements to, the property. (c) If the change of use occurs after closeout, the provisions governing income from the disposition of the real property in Section 570.504(b) (4) or (5), as applicable, shall apply to the use of funds reimbursed. (d) Following the reimbursement of the CDBG program in accordance with paragraph (b) of this section, the property no longer will be subject to any CDBG requirements. Page 22 ATTACHMENT "D" 24 CFR § 570.503 (a) Before disbursing any CDBG funds to a subrecipient, the recipient shall sign a written agreement with the subrecipient. The agreement shall remain in effect during any period that the subrecipient has control over CDBG funds, including program income. (b) At a minimum, the written agreement with the subrecipient shall include provisions concerning the following items: (1) Statement of Work. The agreement shall include a description of the work to be performed, a schedule for completing the work, and a budget. These items shall be in sufficient detail to provide a sound basis for the recipient effectively to monitor performance under the agreement. (2) Records and Reports. The recipient shall specify in the agreement the particular records the subrecipient must maintain and the particular reports the subrecipient must submit in order to assist the recipient in meeting its recordkeeping and reporting requirements. (3) Program Income. The agreement shall include the program income requirements set forth in Section 570.504(c). (4) Uniform Administrative Requirements. The agreement shall require the subrecipient to comply with applicable uniform administrative requirements, as described in Section 570.502. (5) Other Program Requirements. The agreement shall require the subrecipient to carry out each activity in compliance with all Federal laws and regulations described in subpart K of these regulations, except that: (i) The subrecipient does not assume the recipient's environmental responsibilities described at Section 570. 604; and (ii) The subrecipient does not assume the recipient's responsibility for initiating the review process under the provisions of 24 CFR Part 52. (6) Conditions for Religious ganizations. Where applicable, the conditions prescribed by HUB for the use of CDBG funds by religious organizations shall be included in the agreement. (7) Suspension and Termination. The agreement shall specify that, in accordance with 24 CFR 85.43, suspension or termination may occur if the subrecipient materially fails to comply with any term of the award, and that the award may be terminated for convenience in accordance with 24 CFR 85.44. Page 23 (8) Reversion of Assets. The agreement shall specify that upon its expiration the subrecipient shall transfer to the recipient any CDBG funds on hand at the time of expiration and any accounts receivable attributable to the use of CDBG funds. It shall also include provisions to the use of CDBG funds. It shall also include provisions designed to ensure that any real property under the subrecipient's control that was acquired or improved in whole or in part with CDBG funds in excess of $25,000 is either: (i) Used to meet one of the national objectives in Section 570.208 until five years after expiration of the agreement, or for such longer period of time as determined to be appropriate by the recipient; or (ii) Disposed of in a manner that results in the recipient's being reimbursed in the amount of the current fair market value of the property less any portion of the value attributable to expenditures of non -CDBG funds for acquisition of, or improvement to, the property. (Reimbursement is not required after the period of time specified in paragraph (b) (8) (1) of this section.) Page 24 ATTACHMENT "E" 24 CFR § 570.504 (a) Recording Program Income. The receipt and expenditure of program income as defined in Section 570.500(a) shall be recorded as part of the financial transactions of the grant program. (b) !)isp�� Ltjcj�i of 1? p z r Iw�icog eWReceiyq 0 (1) Program income received before grant closeout may be retained by the recipient if the income is treated as additional CDBG funds subject to all applicable requirements governing the use of CDBG funds. (2) If the recipient chooses to retain program income, that income shall affect withdrawals of grant funds from the U.S. Treasury as follows: (i) Program income in the form of repayments to, or interest earned on, a revolving fund as defined in Section 570.500(b) shall be substantially disbursed from the fund before additional cash withdrawals are made from the U.S. Treasury for the same activity. (This rule does not prevent a lump sum disbursement to finance the rehabilitation of privately owned properties as provided for in Section 570.513.) (ii) Substantially all other program income shall be disbursed for eligible activities before additional cash withdrawals are made from the U.S. Treasury. (3) Program income on hand at the time of closeout shall continue to be subject to the eligibility requirements in Subpart C and all other applicable provisions of this part until it is expended. (4) Unless otherwise provided in any grant closeout agreement, and subject to the requirements of paragraph (b) (5) of this section, income received after closeout shall not be governed by the provisions of this part, except that, if at the time of closeout the recipient has another ongoing CDBG grant received directly from HUD, funds received after closeout shall be treated as program income of the ongoing grant program. (5) If the recipient does not have another ongoing grant received directly from HUD at the time of closeout, income received after closeout from the disposition of real property or from loans outstanding at the time of closeout shall not be governed by the provisions of this part, except that such income shall be used for activities that meet one of the national objectives in Section 570.208 and the eligibility requirements described in Section 105 of the Act. Page 25 ATTACHMENT "F" Certification Regarding Lobbying The undersigned certifies, to the best of his or her knowledge and belief, that: (1) No Federal appropriated funds have been paid or will be paid by or on behalf of the un- dersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an em- ployee of a Member of Congress in connection with the awarding of any Federal con- tract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with a Federal contract, grant, loan or cooperative agreement, the undersigned shall complete and submit Standard Form -ILL, "Disclosure Form to Re- port Lobbying," in accordance with its instructions. (3) The undersigned shall require that the language of this Certification be included in the award documents for all subawards at all tiers (including subcontractors, subgrants and contracts under grants, loans and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of the certification is a prerequisite for making or entering into this transaction imposed by Section 1352, title 31, US Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Wendy McGee, Fred Moore Day Nursery School Grantee S Date: Executive Director Title Page 26 AGENDA INFORMATION SHEET AGENDA DATE: November 5, 2013 DEPARTMENT: Parks and Recreation ACM: John Cabrales, Jr. SUBJECT Consider approval of the Public Art Committee's recommendation to select Christie Wood as the artist for the sculpture of Pops Carter as public art for the City of Denton; and declare an effective date. The sculpture will cost $29,200 and will be consistent with the City of Denton Public Art policy approved by Resolution R2013 -021, and be funded with Hotel Tax revenues previously authorized and encumbered for such purpose. The Public Art Committee recommends approval with a vote of 6 -0. BACKGROUND On August 20, 2013, City Council adopted Resolution No. 2013 -021 to the Public Art Policy that establishes the Public Art Committee to serve as an advisory board to the City Council. This Public Art Committee, established by separate ordinance, will make recommendations on: • Commissioning, placing, and installing of public art • Implementation of funding mechanism(s) for public art • Effective and efficient management of public art • Ongoing maintenance of public art, • Accessioning, deaccessioning and resiting of public art Christie Wood's piece is a mosaic, laminated, glass sculpture, depicting the flamboyance and charisma personified by the late musician Pops Carter and by the many artists, bands, and musical groups who call Denton home. The three - dimensional (313) transparent glass takes colors and tones and pushes them into a more hyper reality while staying true to the man's likeness. The sculpture shows Pops Carter seated, microphone in one hand and the towel he used to wipe the sweat from his brow held in the other hand, ready to sing. Music staffs in various colors float around Pops Carter and connect his music to whatever music happens to be coming from the park at the moment. The artwork will be constructed on top of a main plate of laminated 3/8" thick clear safety glass and will be sandwiched between two sheets of 3/8" thick clear safety glass. This will protect the artwork from any vandalism, effectively sealing the stained glass from all elements. Graffiti is anticipated to be the most likely form of vandalism on the piece, and it can be easily removed from glass using paint remover and causing no harm to the glass itself. The artwork will be constricted to withstand impacts of flying debris; heat and cold are not anticipated to be an issue. The sculpture will be sited near the outdoor amphitheater in Quakertown Park. Agenda Information Sheet November 5, 2013 Page 2 Christie Wood has two stained glass pieces of art already owned by the City of Denton. Her works are included in the City's public art book Passion, Art, Community. RECOMMENDATION Staff recommends City Council approve the Public Art Committee's recommendation for local artist Christie Wood to create the next public art sculpture for the City of Denton. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The Public Art Committee made recommendation of artist selection on August 1, 2013. FISCAL INFORMATION The design, materials, constriction and installation of the Pops Carter sculpture will cost $29,200 and be funded from 2013 -14 HOT Funds. EXHIBITS 1. Public Art Committee Meeting Minutes of August 1, 2013 2. Illustration of the sculpture Respectfully submitted, Emerson Vorel, Director Parks and Recreation Department Submitted by: Janie McLeod Community Events Coordinator EXHIBIT 1 DRAFT PUBLIC ART COMMITTEE Minutes August 1, 2013 Members present: Carol Phillips, Victoria DeCuir, Jim Clement, Kathey Hannah, Billie Mohair and Mike Barrow Members absent: Janet Mulroy and Nancy Walkup Ex Officio present: Margaret Chalfant Staff present: Emerson Vorel and Janie McLeod The meeting was called to order by Chair Phillips at 4:07 p.m. INTRODUCE NEW BOARD MEMBER AND TAKE OATH OF OFFICE. Tristan Bynum was unable to attend the meeting. CONSIDER APPROVAL OF THE PUBLIC ART COMMITTEE MINUTES FOR: May 2, 2013. Barrow made a motion to approve the May 2 minutes and it Nvas seconded by Mohair. The minutes Nvere approved Nvith a vote of 6 -0. ACTION ITEMS: Select Artist for 2013 -14 Public Art Project. DeCuir reported that the selection subcommittee met on July 29 to review the proposals of a bust of Pops Carter to be located in Quakertown Park. The subcommittee recommends Christie Wood for the 2013 -14 public art project. DeCuir said that Ms. Wood's proposal fulfilled the specifications for the project. She added that Wood is one of the artists featured in the book of illustrated poetry; is a local artist; addressed the weather, safety and damage concerns; and her work best represented the personification of Pops Carter and captures the movement of music. Mohair and Hannah both requested that the coloring in the hand of the art be changed to a different coloring. McLeod said she would consult with Ms. Wood to see if that can be changed. Clement asked about insurance for the artwork. McLeod explained that all of the City's art works are covered under the City's insurance policy. Clement asked if there is a maintenance warranty. McLeod explained that each artist is asked to provide maintenance information for the art works but the City is responsible for the maintenance of the City's art works. Clement suggested that Ms. Wood be invited to be included and supervise the maintenance of the Pops Carter art work. Action: DeCuir made a motion to accept Christie Wood's proposal for the 2013 -14 public art project and invite the artist to remain involved with the maintenance and to modify the hand by changing the colors of the fingers. Clement seconded the motion and it was approved with a vote of 6 -0. DISCUSSION ITEMS: Proposed Nov Project at the City Landf ll. McLeod said she had met with representatives from the City Landfill and they are requesting that a fiiture art project be located at the Landfill entrance. Staff is requesting that the materials used for the art are all from recyclable materials. The costs of the art project(s) at the landfill would not come from the HOT fiind budget. McLeod said a detailed report will be presented to the Public Art Committee at a fiiture meeting. Status of Public Art Master Plan. Vorel reported that the public art master plan will be fiinded by the City in the amount of $80,000 and the selection process can begin soon. Handbook for Boards and Commissions Review. McLeod said that committee members are briefed at the Boards and Commission reception in September and new handbooks will be distributed at that time. Committee members were asked to submit their recommendations for future committee members to their council members for consideration. There being no further business, the meeting was adjourned at 4:55 p.m. MAM111 is Corr se i3O Agei,Aa V.+ AGENDA INFORMATION SHEET AGENDA DATE: November 5, 2013 DEPARTMENT: Transportation Operations Ael ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, authorizing the Mayor to execute a Second Amendment to Interlocal Cooperation Agreement Street Right -of -way Use License (the "Amendment "), between the Denton County Transportation Authority ( "DCTA ") and the City of Denton, Texas ( "CITY "), as attached hereto and made a part hereof as Exhibit "A ", the amendment amending that certain Interlocal Cooperation Agreement Street Right -of- way Use License ( "Interlocal Agreement "), by and between the City and DCTA, Amendment providing for additional street right -of -way of the CITY to DCTA to constrict, operate and maintain bus shelters and related bus passenger amenities in locations more particularly described in the Amendment; and providing for an effective date. BACKGROUND On February 5, 2013 DCTA and the City of Denton entered into an Interlocal Agreement (Ordinance 2013 -44) to place certain bus shelter improvements on the DCTA Denton Connect system. The "Agreement" provided DCTA the authority to occupy defined shelter locations in the City of Denton street rights -of -way (ROW) to allow DCTA to better serve the transportation needs of Denton residents and overall DCTA ridership. The Agreement contains language requiring DCTA to maintain the facilities in the ROW, and should the City of Denton need access to existing utilities occupying the ROW, it will be DCTA's financial responsibility to remove and /or replace DCTA's passenger amenities. On April 16, 2013, the City Council approved Ordinance 2013 -112, Amendment I to DCTA Street ROW License removing the requirement for DCTA to provide excess limited liability insurance coverage. Upon completion of the first phase of shelters outlined in the Agreement, DCTA staff identified and requested three final shelter locations be included as part of their passenger amenities program. The shelters are proposed at the following locations; westbound Morse Street at Loop 288, southbound Brinker Road at Loop 288 and westbound Oakland Street at Locust Street. The addition of the three shelters in the proposed amendment will provide a total of 21 shelter locations on the DCTA Connect System in Denton. RECOMMENDATION On October 15, 2013, the Mobility Committee voted 2 -0 for Council consideration of the proposed amendment. Agenda Information Sheet November 5, 2013 Page 2 ESTIMATED SCHEDULE OF PROJECT DCTA has indicated the final three shelters could be installed within 60 days of approval by the City of Denton. PRIOR ACTION/REVIEW City of Denton Council approved Ordinance 2013 -44 (the Agreement) on February 5, 2013. On April 16, 2013 the City Council approved Ordinance 2013 -112 approving Amendment 1 to the Agreement regarding insurance requirements. FISCAL INFORMATION No financial impact to the City of Denton. EXHIBITS 1. Ordinance 2013 -44 - DCTA Street ROW License 2. Ordinance 2013 -112 -Amendment Ito DCTA Street ROW License 3. Ordinance - Second Amendment Respectfully Submitted: Marls Nelson Transportation Director EXHIBIT 1 sAlegahour documentAordinanceAlActa interlocal agreement -bus shelters.doc ORDINANCE NO. 2013 -044 AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE MAYOR TO EXECUTE AN INTERLOCAL COOPERATION AGREEMENT (THE "INTERLOCAL AGREEMENT ") BETWEEN THE DENTON COUNTY TRANSPORTATION AUTHORITY AND THE CITY OF DENTON, TEXAS, AS ATTACHED HERETO AND MADE A PART HEREOF AS EXHIBIT "A ", PROVIDING A LICENSE TO DENTON COUNTY TRANSPORTATION AUTHORITY TO CONSTRUCT, OPERATE AND MAINTAIN BUS SHELTERS AND RELATED BUS PASSENGER AMENITIES IN CITY RIGHTS OF WAY IN LOCATIONS MORE PARTICULARLY DESCRIBED IN THE INTERLOCAL AGREEMENT; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton (the "City ") and Denton County Transportation Authority ( "DCTA ") desire to enter into the Interlocal Cooperation Agreement, as attached hereto and made a part hereof as Exhibit "A ", wherein DCTA is provided a license to construct, operate and maintain bus shelters and related bus passenger amenities in City rights of way, as described therein; and WHEREAS, the City Council finds that the Interlocal Agreement is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION L The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. The Mayor of the City of Denton is hereby authorized to execute the Interlocal Agreement on behalf of the City with DCTA. SECTION 3. The City Manager is hereby authorized to carry out the rights and duties of the City under the Interlocal Agreement. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the 5t-h day of ._' ) 2013. ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ._ M R ►. ftR-R(7oQf-1S, MAYOR s: \Iegal \our documents\ordinances \131dcta interlocal agreement -bus shelters.doc APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Page 2 EXHIBIT 1 EXHIBIT 1 THE STATE OF TEXAS § COUNTY OF DENTON § INTERLOCAL COOPERATION AGREEMENT STREET RIGHT -OF -WAY USE LICENSE THIS INTERLOCAL COOPERATION AGREEMENT ( "Agreement") is made and entered into by and between the CITY OF DENTON, TEXAS, a Texas Home Rule Municipal Corporation (hereinafter "CITY ") and the DENTON COUNTY TRANSPORTATION AUTHORITY, a coordinated county transportation authority under Chapter 460 of the Texas Transportation Code (hereinafter "DCTA "), acting by and through, and under the authority of their respective governing bodies; and WHEREAS, CITY and DCTA have the authority to perform the services set forth in this Agreement individually and mutually desire to enter into an interlocal cooperation agreement, as provided for in Chapter 791 of the Texas Government Code, in order to maximize the benefits to the citizens of Texas derived from public funds; and WHEREAS, CITY is a member of DCTA; and WHEREAS, DCTA desires to construct, maintain, and operate bus shelters and other bus passenger amenities for use by passengers of DCTA's bus transportation system at locations within the City of Denton; and WHEREAS, that vast majority of passengers utilizing such bus facilities will be people who live, work, shop, and/or attend school or entertainment and other community events within the CITY; and WHEREAS, the use CITY right -of -way by DCTA to provide such transportation related services constitutes a valid governmental purpose beneficial to CITY's citizens; and WHEREAS, the Interlocal Cooperation Act, as provided in Chapter 791 of the Texas Government Code, authorizes CITY and DCTA to enter into this Agreement for the purpose of achieving the governmental functions and providing the services represented by this collective, cooperative undertaking; NOW THEREFORE, CITY and DCTA, for and in consideration of the license of the street right -of -way and the mutual covenants set forth in this Interlocal Cooperation Agreement do hereby AGREE as follows: (kbl:1/18/13:58730) EXHIBIT 1 ARTICLE I INCORPORATION OF RECITALS The recitals in this Agreement are incorporated into this Agreement and are found and determined to be true and correct. ARTICLE H SCOPE OF AGREEMENT A. CITY, subject to the provisions of this Agreement, hereby grants a license to DCTA to use CITY's public street right -of -way at various locations described and illustrated in ATTACHMENT "1," attached hereto and made a part hereof for all purposes ( "STREET LICENSE AREAS ") to construct, operate, maintain, repair, replace, and/or remove bus shelters and related bus passenger amenities ( "PROJECT IMPROVEMENTS ") to be used by passengers of DCTA's bus transportation system within the City of Denton ( "PROJECT "). No other rights to use the STREET LICENSE AREAS, or any other property or interest of CITY is authorized by this Agreement. B. DCTA shall furnish at its own cost and expense, all labor, services, and materials necessary for the installation, operation, maintenance, repair, and replacement of the PROJECT IMPROVEMENTS. DCTA stipulates that the granting of any license hereunder shall not be construed to (i) convey to DCTA any right or interest in real property, or (ii) provide the right to use or occupy property in which a third party may have an interest. DCTA agrees that it shall be DCTA's responsibility to obtain any necessary permission to occupy property owned or controlled by third parties. C. DCTA shall provide the plans and specifications of the PROJECT IMPROVEMENTS, including the specific location thereof, to CITY's Development Review Coordinator. CITY shall have the right to evaluate and approve the specific locations of the PROJECT IMPROVEMENTS within the STREET LICENSE AREAS, such evaluation to be conducted in a reasonable manner and approval to not be unreasonably withheld, delayed, or conditioned. Within a reasonable time following completion of the PROJECT IMPROVEMENTS, DCTA shall provide CITY an "as- built" set of plans of the PROJECT IMPROVEMENTS. D. DCTA shall promptly provide CITY with any drawings or other written document, as CITY may request, to proceed with the work as provided for in this Agreement. All such drawings and written documents shall be consistent with this Agreement. E. DCTA understands, acknowledges and agrees that the presence of the PROJECT IMPROVEMENTS is subordinate to CITY's interests in the street right -of -way and any easements, if applicable, constituting the STREET LICENSE AREAS. CITY reserves the right to use the STREET LICENSE AREAS for any public purpose allowed by law and to do and permit to be done, any work in connection therewith which may be deemed necessary or proper by CITY, in, on, across, along, under or over the STREET LICENSE AREAS; and whenever by reason of said work in connection with said other purposes it shall be necessary by CITY for the PROJECT IMPROVEMENTS or any other DCTA Page 2 EXHIBIT 1 property to be altered, changed, adapted, conformed or relocated in or from any part of the STREET LICENSE AREAS, such alterations, changes, or relocations shall be made by DCTA within a reasonable time after receipt of a written request from CITY pursuant to directions from the City Manager without any claim for reimbursement for the costs of the relocation or for damages against CITY. Notwithstanding anything to the contrary herein, DCTA shall at all times be entitled to receive from the appropriate governmental bodies, but specifically excluding CITY, payment for alteration or relocation of its property to which DCTA may be lawfully entitled under applicable federal, state or local laws with respect to relocation payments. F. Prior to contractor mobilization for the PROJECT, or any construction activities or any subsequent maintenance activities within the STREET LICENSE AREAS, DCTA shall obtain a Right -of -Way inspection permit from CITY's Utilities Engineering Department for each instance. The role of CITY's Utilities Engineering Department shall be to ensure that DCTA and/or its contractor(s) maintain proper traffic control devices and are conforming to best practices in their general construction operations within the public domain. A City Right -of -Way Inspection Permit has a fee component. DCTA shall deposit the estimated inspection fee fund amount with the CITY at the time of Right -of- Way Inspection Permit application. The CITY Right -of -Way Inspection Fees shall be drawn out of these posted funds on a periodic basis, throughout the duration of the PROJECT. Upon substantial completion of the PROJECT and departure of the PROJECT contractor(s) from the STREET LICENSE AREAS, the balance of the remaining posted Inspection Fee funds shall be refunded to DCTA. Any shortfalls in the Inspection Fee fund account shall be promptly tendered by DCTA to CITY, upon written notification of that event. It is expressly stipulated by DCTA that (i) DCTA shall provide their own construction inspection as it relates to construction conformance to their plans and specifications for the PROJECT; and (ii) that DCTA is solely responsible for all activities related to the PROJECT, subject to the terms hereof. G. DCTA shall maintain the PROJECT IMPROVEMENTS in a good condition during this Agreement, as determined by CITY, in its reasonable discretion. H. DCTA's specific branding elements and posted operational materials, which may include materials promoting or advising the public of modified or special bus and /or train schedules in association with events conducted by third parties, may be placed upon the PROJECT IMPROVEMENTS without the express written consent of CITY. ARTICLE III TERM OF AGREEMENT This Agreement, unless terminated sooner pursuant to the terms hereof, shall expire fifty (50) years after the EFFECTIVE DATE. ARTICLE IV TERMINATION OF AGREEMENT A. Either party may voluntarily terminate this Agreement at any time upon giving to the Page 3 EXHIBIT 1 other party one (1) year written notice of such intention to terminate. B. Either party may terminate this Agreement in the event of the other party's material breach or default in the performance of this Agreement and such party's failure to cure said default, as provided herein. The party seeking to terminate this Agreement under this provision shall provide the defaulting party written notice, specifically identifying the breach or default complained of, which notice shall provide the defaulting party a period of not less than thirty (30) days in which to cure such breach or default. In the event such breach or default is not fully cured within the time period specified, then the party seeking to terminate this Agreement shall provide the defaulting party with further written notice expressly specifying that this Agreement will be terminated if the breach or default is not wholly cured within ten (10) days after the receipt of the written notice by the alleged defaulting party. In the event that the defaulting party fails to cure the breach or default complained of, within the time specified, then this Agreement shall be terminated, and the party terminating this Agreement may seek appropriate legal relief. C. At the time of any termination event of this Agreement, DCTA shall remove all of its facilities and the PROJECT IMPROVEMENTS from the STREET LICENSE AREAS, unless otherwise mutually agreed to in writing. If CITY, by DCTA default, removes the PROJECT IMPROVEMENTS from the STREET LICENSE AREAS, DCTA shall pay CITY all costs for such removal and or any related restoration, including, without limitation, all costs related to time expended by CITY employees, if applicable. ARTICLE V PARTY RESPONSIBILITY A. Without waiving any governmental immunity available to the parties under Texas and other applicable laws, and without waiving any available defenses under Texas and other applicable laws, the parties hereto acknowledge that no party is an agent, servant, or employee of the other party, and each party agrees it is responsible for its own individual negligent acts or omissions or other tortious conduct as well as such acts and deeds of its contractors, agents, representatives, and employees during performance of this Agreement to the extent such liability can be imputed to said party under applicable law. Nothing in this Agreement shall be construed as creating or granting any rights, contractual or otherwise, in or to any third persons or entities. B. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN ARTICLE V.A., ABOVE, PRIOR TO DCTA'S CONTRACTOR(S) ENTERING INTO ALL OR ANY PART OF THE STREET LICENSE AREAS TO PERFORM WORK ON BEHALF OF DCTA, DCTA SHALL REQUIRE ITS CONTRACTOR OR OTHER THIRD PARTY WHO ENTERS AND /OR PERFORMS WORK IN THE STREET LICENSE AREAS TO AGREE AT ALL TIMES TO INDEMNIFY, DEFEND, AND HOLD HARMLESS CITY AGAINST AND FROM: (1) ANY AND ALL LOSS, COST, DAMAGE, OR EXPENSE, INCLUDING REASONABLE ATTORNEY'S FEES, ARISING OUT OF OR FROM ANY ACCIDENT OR OTHER OCCURRENCE CAUSING PERSONAL Page 4 EXHIBIT 1 INJURY, DEATH OR PROPERTY DAMAGE RESULTING FROM OR RELATED TO USE OF THE STREET LICENSE AREAS BY THE CONTRACTOR, ITS AGENTS, EMPLOYEES, PARTNERS, SHAREHOLDERS, AGENTS, SUBCONTRACTORS, INVITEES, OR GUESTS, WHETHER OCCASIONED BY THE INTENTIONAL OR NEGLIGENT ACTS OR OMISSIONS OF THE CONTRACTOR, ITS EMPLOYEES, OFFICERS, PARTNERS, SHAREHOLDERS, AGENTS, SUBCONTRACTORS, INVITEES, OR GUESTS, EXCEPT WHEN CAUSED BY THE WILLFUL MISCONDUCT OR GROSS NEGLIGENCE OF CITY, ITS OFFICERS, EMPLOYEES AND /OR AGENTS, AND ONLY THEN TO THE EXTENT OF THE PROPORTION OF ANY FAULT DETERMINED AGAINST CITY FOR ITS WILLFUL MISCONDUCT OR GROSS NEGLIGENCE; AND (2) ANY PENALTY, OR ANY DAMAGE, OR CHARGE, IMPOSED FOR ANY VIOLATION OF ANY LAW, ORDINANCE, RULE OR REGULATION ARISING OUT OF THE USE OF ALL OR ANY PART OF THE STREET LICENSE AREAS BY THE CONTRACTOR, ITS AGENTS, EMPLOYEES, PARTNERS, SHAREHOLDERS, AGENTS, SUBCONTRACTORS, INVITEES, OR GUESTS, WHETHER OR NOT OCCASIONED BY THE INTENTIONAL OR NEGLIGENT ACTS OR OMISSIONS OF CITY OR ITS EMPLOYEES, OFFICERS, PARTNERS, SHAREHOLDERS, AGENTS, CONTRACTORS, INVITEES, OR GUESTS. C. CITY and DCTA are each a "governmental unit' as that term is defined in Tex. Civ. Prac. & Rem. Code §101.001 and do not by agreement to and acceptance of this Agreement waive their respective rights to claim immunity to liability or suit or to invoke the limits of liability set forth in Chapter 101 of the Texas Civil Practices & Remedies Code, as amended, to the extent sovereign immunity has been waived by said statutes. DCTA and CITY further acknowledge and agree that nothing in this Agreement is intended to be for the benefit of any third parties except to the extent expressly provided in this Agreement. D. The provisions of this Article V shall survive the termination of this Agreement regardless of the means of termination. ARTICLE VI INSURANCE DCTA shall provide or cause to be provided the insurance described below upon execution of this Agreement. A. Commercial General Liability Insurance. This coverage shall include premises /operations, products /completed operations, blanket contractual liability, broad form property damage, independent contractors and personal injury and where the exposure exists, explosion, collapse and underground property damage. This coverage should be a minimum Combined Single Limit of $1,000,000 per occurrence for Bodily Injury and Property Damage. Page 5 EXHIBIT 1 B. Automobile Liability Insurance. (1) Minimum Combined Single Limit of $500,000 per occurrence for Bodily Injury and Property Damage; and (2) The Business Auto Policy must show Symbol 1 in the Covered Autos Portion of the liability section in Item 2 of the declarations page which includes coverage for hired, leased and non -owned vehicles. C. Workers' Compensation Insurance. In addition to the minimum statutory requirements: (1) Employer's Liability limits of at least $100,000 for each accident, $100,000 for each employee, and a $500,000 policy limit for occupational disease; (2) The insurer agrees to waive rights of subrogation against CITY, its officials, agents, employees, and volunteers for any work performed for CITY by DCTA; and (3) DCTA shall comply with the provisions of Section 406.096 of the Texas Labor Code and 28 TAC § 110.110 of the Texas Worker's Compensation Commission to the extent such statute and regulation apply to DCTA. D. Excess Liability Insurance. Excess Liability Insurance shall be provided with limits of not less than Five Million ($5,000,000.00) annual aggregate. E. General Provisions. (1) All policies shall be endorsed to read substantially as follows: "THIS POLICY WILL NOT BE CANCELLED OR NON - RENEWED WITHOUT 30 DAYS ADVANCED WRITTEN NOTICE TO THE CITY EXCEPT WHEN THIS POLICY IS BEING CANCELLED FOR NONPAYMENT OF PREMIUM, IN WHICH CASE 10 DAYS ADVANCE WRITTEN NOTICE IS REQUIRED ". (2) Commercial General Liability and Automobile Liability insurance shall be written by companies with "A-" or better rating in accordance with the current AM Best Key Rating Guide. (3) Commercial General Liability, Automobile Liability, and Excess Liability insurance policies shall name as "Additional Insured" the CITY and its officials, agents, employees, and volunteers. (4) Certificates of insurance must reflect all coverages and endorsements required by this section. Page 6 EXHIBIT 1 (5) Coverage shall be placed with insurance carriers licensed to do business in the State of Texas or with non - admitted carriers that have a financial rating comparable to carriers licensed to do business in Texas approved by CITY. ARTICLE VII BONDS DCTA, to the extent required by law, including without limitation, Section 2253.021 of the Texas Government Code ( "APPLICABLE BOND LAW "), shall require all contractors to execute to DCTA performance bonds and /or payment bonds, in the form and in the amount as required by the APPLICABLE BOND LAW. DCTA shall provide a copy of all bonds with CITY's Utilities Engineering Department. ARTICLE VIII ASSIGNABILITY DCTA shall not assign any interest in this Agreement and shall not transfer any interest in this Agreement (whether by assignment, novation or otherwise) without the prior written consent of CITY, which consent shall not be unreasonably withheld. CITY shall not assign any interest in this Agreement and shall not transfer any interest in this Agreement (whether by assignment, novation or otherwise) without the prior written consent of DCTA, which consent shall not be unreasonably withheld. ARTICLE IX NOTICE Any notice given by one party to the other in connection with this Agreement shall be in writing and shall provided by personal delivery, sent by registered mail or certified mail, return receipt requested, postage prepaid, or by facsimile transmission actually received, to: CITY: City Manager City of Denton 215 E. McKinney Denton, TX 76201 Fax: (940) 349 -8596 With copies to: Paul Williamson 901 -A Texas St., 2nd Floor Denton, TX 76209 DCTA: President Denton County Transportation Authority 1660 South Stemmons, Suite 250 Lewisville, Texas 75067 Fax: (972) 221 -4601 Nichols, Jackson, Dillard, Hager & Smith Attn: Peter G. Smith 500 N. Akard, Suite 1800 Dallas, TX 75201 Notices shall be deemed to have been provided and received on the earlier to occur of (i) the date placed in the United States Mail, as prescribed above; (ii) the date provided by facsimile transmission; or (iii) the date personally delivered. Page 7 EXHIBIT 1 ARTICLE X MODIFICATION No waiver, modification, cancellation or alteration of this Agreement or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly authorized and executed by the party to be charged therewith. No evidence of any waiver, modification, cancellation or alteration shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, unless such waiver, modification, cancellation or alteration is in writing, duly authorized and executed. ARTICLE XI SAVINGS In the event that any one or more of the provisions hereof concerning the subject matter of this Agreement should be held by a court or administrative agency of competent jurisdiction to be illegal, invalid or unenforceable in any respect, the parties agree to make a good faith effort to renegotiate another agreed provision to fulfill the purpose and intent of the present Agreement. ARTICLE XII GOVERNING LAW AND VENUE This Agreement shall be construed under and governed by, and in accordance with the laws of the State of Texas, and all obligations of the parties hereto created by this Agreement are performable in Denton County, Texas. VENUE OF ANY SUIT OR CAUSE OF ACTION UNDER OR RELATED TO THIS AGREEMENT SHALL LIE EXCLUSIVELY IN STATE COURTS OF COMPETENT JURISDICTION LOCATED IN DENTON COUNTY, TEXAS. ARTICLE XIII ENTIRE AGREEMENT This Agreement, including the exhibits attached hereto, constitutes the entire agreement among the parties hereto with respect to the subject matter hereof, and supersedes any prior understandings or written or oral agreements between the parties with respect to the subject matter of this Agreement. ARTICLE XIV WAIVER OF TERMS AND CONDITIONS The failure of either party to enforce or insist upon compliance with any of the terms or conditions of this Agreement shall not constitute a general waiver or relinquishment of any such terms or conditions, but the same shall be and remain at all times in full force and effect. Page 8 EXHIBIT 1 ARTICLE XV BINDING AUTHORITY This Agreement is entered into by the duly authorized officials of each respective governmental entity. ARTICLE XVI CURRENT REVENUES Each party paying for the performance of governmental functions or services hereunder must make those payments from current revenues available to the paying party. Any compensation provided for herein fairly compensates the performing party for the services or functions performed hereunder. ARTICLE XVII CAPTIONS The captions contained in this Agreement are for informational purposes only and shall not in any way affect the substantive terms or conditions of this Agreement. (Signatures on Following Page) Page 9 EXHIBIT 1 IN WITNESS WHEREOF, the governing body of the City of Denton, Texas has caused this Interlocal Cooperation Agreement to be executed on this the 6 Lll day of 2013; and the governing body of the Denton County Transportation Authority gas caused this Interlocal Cooperation Agreement to be executed on this the 417Wday Of , 2013, but this Agreement shall be effective for all purposes from and as of the latest date o the execution hereof the parties hereto (the "EFFECTIVE DATE "). "CITY" CITY OF DENTON, TEXAS A Texas Home Rule Municipal ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPR ED A TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: "DCTA" FA DENTON COUNTY TRANSPORTATION AUTHORITY ffix NAN TITL Page 10 EXHIBIT 1 Attachment "1" DCTA BUS SHELTER LOCATIONS No Street Location G PS Location Latitude & 1 EB Hercules @ Stuart 33,25401957 - 97.1224379 2 Removed 3 SB Colorado @ San Jacinto 33,193979 - 97.106397 4 SB Colorado @ Golden Triangle Mall 33.192623 - 97.10541 5 WB McKinney @ Campbell 33.21591821 - 97.11280391 6 WB Oak @ 1 -35 33,215564 - 97,166134 7 WB University @ Elm 33.23100647 - 97,13286113 8 WB Windsor @ Olympia 33,24437628 - 97.12511625 9 Brinker Road @ 288 33.19281173 - 97.09586131 10 NB Cardinal Drive @ Oriole Lane 33,21773708 - 97,09200338 11 EB Charlotte @ Ave G 33.21274029 - 97.15832384 12 SB Elm St @ College 33,22778405 - 97.13357233 13 Meadow @north of 1 -35 33.196951 - 97,133144 14 WB Mingo Road @ Village East 33.197848 - 97,133369 15 EB Scripture @ Bonnie Brae 33.21895136 - 97.16209788 16 SB Teasley @ 1 -35 1 33,19626289 - 97.12407757 171 WB Wilson @ Ruddell 1 33,208109 - 97.117597 11- Dec -12 m A 5 G O a a PRODUCED BY AN AUTODESK EDUCATIONAL PRODUCT ��rJ rye,' � ;Y,�� �..�� �•�o� � � a ZD U 2 a J�;}`"`'F'`t- @lam` -, a ;�r, 13110Oad IVN011b]Of1031f530O1f1V NV A9 03Of10ONd EXHIBIT 1 CL m W w J Z 0 fA W 0 a=; a°yU H a °° U to O V a I F z z I M, 9J I'l i b h S I .oi • y'O]'rIr•>,t pmt 2 K 0 U Z N �p Ali y`' m II w JI3p = 5�autm„ii• � I $I I� [� 1 or4�- I .. 1 dw � w u d 11t ��rJ rye,' � ;Y,�� �..�� �•�o� � � a ZD U 2 a J�;}`"`'F'`t- @lam` -, a ;�r, 13110Oad IVN011b]Of1031f530O1f1V NV A9 03Of10ONd EXHIBIT 1 CL m W w J Z 0 fA W 0 a=; a°yU H a °° U to O V a I F z z I M, 9J I'l i b h S 2 K 0 U Z N �p a [� .. 1 dw R d 11t • •' _ A 6 m �Fo�y� a U � ti •�� '��• � S � C C�'r6 � C �$ o b •1h• Qi E �+ ` Lu a a a y 4 ��rJ rye,' � ;Y,�� �..�� �•�o� � � a ZD U 2 a J�;}`"`'F'`t- @lam` -, a ;�r, 13110Oad IVN011b]Of1031f530O1f1V NV A9 03Of10ONd EXHIBIT 1 CL m W w J Z 0 fA W 0 a=; a°yU H a °° U to O V a I F z z I M, 9J I'l i a [� .. 1 R d 11t Lu a a a y 4 al - L.d � �� gz m c• •£ � - - a a > T - s UR $3 �gg s13 �$ 4A y� gg n d ✓! 11 ��rJ rye,' � ;Y,�� �..�� �•�o� � � a ZD U 2 a J�;}`"`'F'`t- @lam` -, a ;�r, 13110Oad IVN011b]Of1031f530O1f1V NV A9 03Of10ONd EXHIBIT 1 CL m W w J Z 0 fA W 0 a=; a°yU H a °° U to O V a I F z z I M, 9J I'l i II II PRODUCED BY AN AUTODESK EDUCATIONAL PRODUCT A, g fi t, f g .G�.0 ` I 13 r ............. -WN K' i3 z 8 Q z > . 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MAllI$3 ®d OMlb7A3,Y 1. - ptp ✓) , • �Y � {[�1tA(�� MUM w �����ya. ������- _ -I ..iii' a�E •��a�t�8 - FD =:6 1.UIIUQ ld -1VNOIlvona3 msacioinV NV Ag O3onCIOUd O A 7 sAlegal \our documents \ordinances \13 \dcta interlocal agreement- amendment -bus shelters.doc EXHIBIT 2 ORDINANCE NO. 2013 -112 AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE MAYOR TO EXECUTE A FIRST AMENDMENT TO INTERLOCAL COOPERATION AGREEMENT (THE "AMENDMENT "), BETWEEN THE DENTON COUNTY TRANSPORTATION AUTHORITY ( "DCTA ") AND THE CITY OF DENTON, TEXAS ( "CITY "), AS ATTACHED HERETO AND MADE A PART HEREOF AS EXHIBIT "A ", THE AMENDMENT AMENDING THAT CERTAIN INTERLOCAL COOPERATION AGREEMENT ( "INTERLOCAL AGREEMENT "), BY AND BETWEEN THE CITY AND DCTA, REGARDING THE INSURANCE REQUIREMENTS PROVIDED BY THE INTERLOCAL AGREEMENT, SAID INTERLOCAL AGREEMENT PROVIDING A LICENSE TO DCTA TO CONSTRUCT, OPERATE AND MAINTAIN BUS SHELTERS AND RELATED BUS PASSENGER AMENITIES IN CITY RIGHTS OF WAY IN LOCATIONS MORE PARTICULARLY DESCRIBED IN THE INTERLOCAL AGREEMENT; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, City staff and DCTA have jointly reviewed the Interlocal Agreement and determined that excess liability insurance coverage is not necessary to protect the City and /or DCTA; WHEREAS, the City and DCTA desire to enter into the First Amendment to Interlocal Cooperation Agreement, as attached hereto and made a part hereof as Exhibit "A ", deleting excess liability insurance coverage requirements therein; and WHEREAS, the City Council finds that the First Amendment to Interlocal Agreement is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION ml . The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. The Mayor of the City of Denton is hereby authorized to execute the First Amendment to Interlocal Agreement on behalf of the City with DCTA. SECTION 3. The City Manager is hereby authorized to carry out the rights and duties of the City under the Interlocal Agreement. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ......... ::...w_ day of q ________, 2013. ._�. . . MARK A 131�1I k HS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Page 2 EXHIBIT 2 s: \legal \our documents \contracts \13 \dcta interlocal cooperation agreement- amendment I. doe EXHIBIT 2 THE STATE OF TEXAS § COUNTY OF DENTON § FIRST AMENDMENT TO INTERLOCAL COOPERATION AGREEMENT STREET RIGHT -OF -WAY USE LICENSE THIS FIRST AMENDMENT OF INTERLOCAL COOPERATION AGREEMENT (the "Amendment "), is made and entered into effective as of the date set forth below, by and between the CITY OF DENTON, TEXAS, a Texas Home Rule Municipal Corporation (hereinafter "CITY ") and the DENTON COUNTY TRANSPORTATION AUTHORITY, a coordinated county transportation authority under Chapter 460 of the Texas Transportation Code (hereinafter "DCTA "), acting by and through, and under the authority of their respective governing bodies; and WHEREAS, the CITY and DCTA, on or about February 5, 2013, City Ordinance No. 2013 -044, entered into that certain Interlocal Cooperation Agreement Street Right -of -Way Use License (the "Original Agreement "), to occupy certain property of the City in respect to construction, maintenance and operation of bus shelters and other bus passenger amenities for use by passengers of DCTA's bus transportation system; WHEREAS, the City and DCTA have examined the insurance requirements of the Original Agreement, and have jointly determined that certain coverage is no longer necessary to protect the City and/or DCTA; WHEREAS, due to the lack of necessity of such insurance coverage, the City and DCTA desire to amend the Original Agreement to delete the requirement therefor; NOW THEREFORE, for and in consideration of the license of the street right -of -way and the mutual covenants set forth in the Original Agreement and herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the City and DCTA hereby amend the Original Agreement as follows: 1. "ARTICLE VI, INSURANCE ", Paragraph D., entitled "Excess Liability Insurance ", is hereby deleted from the Original Agreement for all purposes. 2. Except as expressly amended herein, the terms of the Original Agreement shall remain valid and subsisting as originally provided. EXHIBIT 2 IN WITNESS WHEREOF, the governing body of the City of Denton, Texas has c used this First Amendment to Interlocal Cooperation Agreement to be executed on this the day of p1) 2013; and the governing body of the Denton County Transportation Authority has caused this First Amendment to Interlocal Cooperation Agreement to be executed on this the day of p..�...mmm, 2013, but this Amendment shall be effective for all purposes from and as of the latest date of the execution hereof by the parties hereto (the "Effective Date "). "CITY" CITY OF DENTON, TEXAS A Texas Home Rule Municipal Corporation ATTEST: JENNIFER WALTERS, CITY SECRETARY IN 4 A111P RO 4'.p. AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: "DCTA" MARK A� BURRO G1 O11% MAYOR DENTON COUNTY TRANSPORTATION AUTHORITY BY: 1 I EE CL E, :IR., P l PRESIDENT Page 2 of 2 sAlegal\Mir d0CL1ments\ordinances\1 3\d eta interlocal agreement- amendment 2-bus slielters.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING TILE MAYOR TO EXECUTE A SECOND AMENDMENT TO INTERLOCAL COOPERATION AGREEMENT STREET RIGHT-OF-WAY USE LICENSE (THE "AMENDMENT"), BETWEEN THE DENTON COUNTY TRANSPORTATION AUTHORITY ("DCTA") AND THE CITY OF DENTON, TEXAS ("CITY"), AS ATTACHED HERETO AND MADE A PART HEREOF AS EXHIBIT "A", THE AMENDMENT AMENDING THAT CERTAIN INTERLOCAL COOPERATION AGREEMENT STREET' RIGHT -OF -WAY USE LICENSE ("INTERLOCAL AGREEMENT"), BY AND BETWEEN 'THE CITY AND DCTA, AMENDMENT PROVIDING FOR ADDITIONAL STREET RIGHT -OF -WAY OF THE CITY TO DCTA TO CONSTRUCT, OPERATE AND MAINTAIN BUS SHELTERS AND RELATED BUS PASSENGER AMENITIES, IN LOCATIONS MORE PARTICULARLY DESCRIBED IN THE AMENDMENT; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, City and DCTA entered into the Interlocal Agreement, on or about February 5, 2013, City Ordinance No. 2013-044, related to the occupation of certain property of the City in respect to the construction, maintenance and operation of bus shelters and other bus passenger amenities for use by passengers of DCTA's bus transportation system; WHEREAS, the City and DCTA amended the Interlocal Agreement pursuant to that certain First Amendment to Interlocal Cooperation Agreement Street Right-Of-Way Use License, dated on or about April 25, 2013, City Ordinance No. 2013-112, amending certain liability insurance coverages prescribed by the Interlocal Agreement; WHEREAS, it has come to the attention of City and DCTA that additional locations for the construction, maintenance and operation of bus shelters and other bus passenger amenities by DCTA are advisable to the City; WHEREAS, the City and DCTA desire to enter into the Second Amendment to Interlocal Cooperation Agreement Street Right-of-Way Use License, as attached hereto and made a part hereof as Exhibit "A", providing such additional bus shelters and other bus passenger amenities locations within City rights-of-way; and WHEREAS, the City Council finds that the Second Amendment to Interlocal Cooperation Agreement Street Right-Of-Way Use License is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. The Mayor of the City of Denton is hereby authorized to execute the Second Amendment to Interlocal Cooperation Agreement Street Right-Of-Way Use License on behalf of the City with DCTA. SECTION 3. The City Manager is hereby authorized to carry out the rights and duties of the City under the Interlocal Agreement, as amended by the Amendment and Second Amendment to Interlocal Cooperation Agreement Street Right-Of-Way Use License. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2013. ATTEST: JENNIFER WAL'FERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: MARK A. BURROUGHS, MAYOR Page 2 EXHIBIT "A" THE STATE OF TEXAS § COUNTY OF DENTON § SECOND AMENDMENT TO INTERLOCAL COOPERATION AGREEMENT STREET RIGHT-OF-WAY USE LICENSE THIS SECOND AMENDMENT OF INTERLOCAL COOPERATION AGREEMENT (the "Amendment"), is made and entered into effective as of the date set forth below, by and between the CITY OF DENTON, TEXAS, a Texas Home Rule Municipal Corporation ("CITY") and the DENTON COUNTY 'TRANSPORTATION AtjTIIORITY, a coordinated county transportation authority under Chapter 460 of the Texas Transportation Code ("DCTA"), acting by and through, and under the authority of their respective governing bodies; WHEREAS, the CITY and DCTA, on or about February 5, 2013, City Ordinance No. 2013-044, entered into that certain Interlocal Cooperation Agreement Street Right-of-Way Use License (the "Original Agreement"), to occupy certain property of the City in respect to the construction, maintenance and operation of bus shelters and other bus passenger amenities for use by passengers of DCTA's bus transportation system; WHEREAS, the CITY and DCTA, on or about April 25, 2013, City Ordinance No. 2013- 112, entered into that certain First Amendment to Interlocal Cooperation Agreement Street Right-Of-Way Use License ("First Amendment"), amending the Original Agreement regarding certain insurance requirements prescribed therein; WHEREAS, the CITY and DCTA have determined that providing additional areas within CITY street right-of-way in respect to construction, maintenance and operation of bus shelters and other bus passenger amenities by DCTA is advisable; WHEREAS, the CITY and DCTA desire to amend the Original Agreement, as amended by the First Amendment, to add such additional street use right-of-way locations; NOW 'THEREFORE, for and in consideration of the license of the street right-of-way and the mutual covenants set forth in the Original Agreement, First Amendment and herein, and other good and valuable consideration, the receipt and Sufficiency of which is hereby acknowledged, the CITY and DCTA hereby amend the Original Agreement, as amended by the First Amendment, as follows: 1. The locations described and illustrated in Exhibit "A", attached hereto and made a part hereof for all purposes, are hereby included in ATTACHMENT 1, as attached to the Original Agreement, for all intents and purposes (the "ADDITIONAL AREAS"). 2. The ADDITIONAL AREAS are hereby included, for all purposes, within the defined term "STREET LICENSE AREAS ", as set forth in the Original Agreement, as amended by the First Amendment. 3. Except as expressly amended herein, the terms of the Original Agreement, as amended by the First Amendment, shall remain valid and subsisting as originally provided. IN WITNESS WHEREOF, the governing body of the City of Denton, Texas has caused this Second Amendment to Interlocal Cooperation Agreement to be executed on this the _ day of November, 2013; and the governing body of the Denton County Transportation Authority has caused this Second Amendment to Interlocal Cooperation Agreement to be executed on this the -- day of November, 2013, but this Amendment shall be effective for all purposes from and as of the latest date of the execution hereof by the parties hereto (the "Effective Date"). "CITY" CITY OF DENTON, TEXAS A Texas Home Rule Municipal Corporation 0 ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: ccDCTA" MARK A. BURROUGHS, MAYOR DENTON COUNTY TRANSPORTATION AUTHORITY BY: JAMES C. CLINE, JR., P.E., PRESIDENT Page 2 of 2 W 00 LLJ LU V) ui V) cj� 0 2: A J, 15 z R O ma W ED Z) 0 id 0 0 Oj D -- - ----- -- 1 77� 4 A 5 yq e -4c 3�A al lonGOHd lVNouvona3)4s3uolnV NV AS o3onCOUd 41 w. • Orb V) 1 ern '(78 I A H Ziff ii ry cn IL w In 0 IL 810. 4 0 0 .LonaONd IVNouvona3 )ISao.,oInV NV Ae aaonUOUd • •• •• as S! r� AN AUTODESK EDUCATIONAL PRODUCT a J-165, 9Y 0 ma 2,? A, Yt Yt Yt Yt Yt� Yt� Yt� Yt�� ............. 9t OHM WHIN'lls I N lona011d IVNouvonaa msiaolm NV A13 aaonaOUd w W.j 6 a J-165, 9Y 0 ma 2,? A, Yt Yt Yt Yt Yt� Yt� Yt� Yt�� ............. 9t OHM WHIN'lls I N lona011d IVNouvonaa msiaolm NV A13 aaonaOUd Cour ,e i3O Agei,Aa V AGENDA INFORMATION SHEET AGENDA DATE: November 5, 2013 DEPARTMENT: Engineering Services ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager or his designee to execute a Contract of Sale (herein so called), as attached hereto and made a part hereof as Exhibit "A ", by and between North Locust Properties, LLC (the "Owner "), and the City of Denton (the "City "), regarding the sale by Owner and purchase by the City of a 2.493 acre tract of land, more or less, situated in the T. Toby Survey, Abstract No. 1288, in the City of Denton, Denton County, Texas, as more particularly described in Exhibit "A" to the Contract of sale (the "Property Interests "), for the purchase price of One Hundred Seventy Two Thousand Seven Hundred One and no /100 dollars ($172,701.00) (the "Purchase Price ") authorizing the City Manager, or his designee, to make an offer to purchase the property interests from the Owner for such purchase price, and execute and deliver any and all other documents necessary to accomplish closing of the transaction contemplated by the Contract of Sale; authorizing the expenditure of funds therefore, and providing an effective date. The Public Utilities Board recommends approval 7 -0. BACKGROUND In accord with the current 69kV Transmission Line Re -build project initiative, staff is undertaking the identification of the additional land rights necessary to accommodate the constriction and operation of improvements to the electric transmission and distribution systems. In respect to the tract owned by North Locust Properties, LLC, the project requires the fee simple acquisition of a 2.493 acre tract of land, to accommodate the electric utilities and electric substation infrastructure, as an assemblage tract, north of and adjacent to DME's existing Denton North substation property. AR/WS Texas L.P. provided a real estate appraisal report in regard to the subject property tract with a finding of $172,701.00 as compensation for the fee simple interest. Approval of the ordinance under consideration authorizes staff to make an offer to purchase the 2.493 acre tract, and to proceed to closing the purchase transaction upon successful negotiations with the affected landowner. Agenda Information Sheet November 5, 2013 Page 2 OPTIONS 1. Approve the proposed Ordinance. 2. Decline to approve the proposed Ordinance. 3. Table for future consideration. RECOMMENDATION Staff recommends approval of the ordinance. PRIOR ACTION/REVIEW (Council, Boards, Commissions) This tract is within the "Yellow Route ", an alignment previously recommended by the Public Utility Board and approved by the City Council. (Resolution 2011 -043 November 15, 2011) PUB October 28, 2013 Approved 7 -0. FISCAL INFORMATION The project at hand is being funded by issuing General Obligation Bonds which will be paid by Transmission Revenue received from all other electric utilities who are members of the Electric Reliability Council of Texas (ERCOT). BID INFORMATION Not applicable EXHIBITS 1. Location Map 2. Excerpt from October 28, 2013 PUB Minutes 3 . Ordinance Prepared by: Pamela England Real Estate Specialist Respectfully submitted: Paul Williamson Real Estate Manager FA a 9] Parcels Floodplain - 100yr 0 Sales Aerials 2013 �ERed: Band 1 Streets ElGreen: Band —2 MBlue: Band Lakes —3 I DRAFT MINUTES 2 PUBLIC UTILITIES BOARD 3 October 28, 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, October 28 at 9:00 a.m. in the Service Center Training Room, City of Denton Service 8 Center, 901A Texas Street, Denton, Texas. 9 10 Present: Chairman Dick Smith, Vice Chair Billy Cheek, Secretary Randy I I Robinson, Leonard Herring, Phil Gallivan Barbara Russell and Lilia 12 Bynum 13 14 Ex Officio Members: George Campbell City Manager and Howard Martin, ACM Utilities 15 16 OPEN MEETING: 17 18 CONSENT AGENDA: 19 20 10) Recommend approval of an ordinance of the City of Denton, Texas authorizing the City 21 Manager or his designee to execute a Contract of Sale (herein so called), as attached hereto 22 and made a part hereof as Exhibit "A ", by and between North Locust Properties, LLC (the 23 "Owner"), and the City of Denton (the "City "), regarding the sale by Owner and purchase by 24 the City of a 2.493 acre tract of land, more or less, situated in the T. Toby Survey, Abstract 25 No. 1288, in the City of Denton, Denton County, Texas, as more particularly described in 26 Exhibit "A" to the Contract of sale (the "Property Interests "), for the purchase price of One 27 Hundred Seventy Two Thousand Seven Hundred One and no /100 dollars ($172,701.00) (the 28 "Purchase Price ") authorizing the City Manager, or his designee, to make an offer to 29 purchase the property interests from the Owner for such purchase price, and execute and 30 deliver any and all other documents necessary to accomplish closing of the transaction 31 contemplated by the Contract of Sale; authorizing the expenditure of funds therefore, and 32 providing an effective date. 33 34 Motion was made to approve items 5 -10 by Board Member Russell with the second by 35 Board Member Cheek. The vote was 7 -0 approved. 36 37 Adjournment 9:59 a.m. ORDINANCE NO. AN ORDINANCE OF THE CITY OF O2NTON, TEXAS AUTHORIZING THE CITY MANAGER URHIS DBS{GNBF,IO EXECUTE /\ CONTRACT 0P SALE (HEREIN SO C&L[ED),&S ATTACHED U�KBTD AND MADE /\ PART HEREOF /\SDXU0O[`^8.`,0�/ AND B{!I\�EBN|�OKJDLDCUSIyROPE8T|E8,L[C (THE ^^OWNER`)` AND THE CITY OFD8NT0N (THE "CTTY"), REGARDING THE SALE DY OWNER AND PURCHASE BY THE CITY OF/\2.493/\C}lBT8ACT0F LAND, MORE DIl LESS, SITUATED INTBET. IO8\/ SURVEY, }\88TRACINO.|288,ON THE CITY OFD8NT0N,DBNTONCOUNTY, TEXAS, AB MORE P/\RTlCOL&KLI DESCRIBED QN EX0I8TT'^/\"TO THE CONTRACT OF 8/\LB (I0B "PROPERTY [NTBKB8TS"), FOR THE PURCHASE PRICE OF ONE HUNDRED SEVENTY-TWO THOUSAND SEVEN 14LJNDKE0 ONE AND NO/100 00[L&F(S ($172,701.00) ("[HE ''PU0C0&SB PRICE") /\0TODKlZONO THE CITY MANAGER, 0D HIS DESIGNEE, IOMAKE AN OFFER I0 PURCHASE TDE.PROPERTY [NTEK�ST0 FROM OYVNBK FOR SUCH PDKC0A8D PRICE AND ElXO[DTC AND DELIVER ANY AND ALL 0I8BR DOCUMENTS NECESSARY TO ACCOMPLISH CLOSING DFTR[TOANS/\CT[KN CONTEMPLATED 8YT8E CONTRACT 0[SALE; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFORE, AND PROVIDING AN EFFECTIVE DATE. VVI]BR2/\8, after due consideration o[ the public interest and necessity and the public use and benefit to accrue na the City m[ Denton, Texas: IBE C0ONCILDPTQE CITY 0PDENT0N HEREBY ORDAINS: SECTION L The City Council Dudm that opubUo use and necessity exists, and that the public welfare and convenience require the acquisition o[the Property Interests hythe City of 1)coioo, Texas (the "City"). The City Council hereby finds and determines that the acquisition n[ the Property Interests io necessary for public use in expand and improve the Denton Municipal Electric Distribution and Transmission System io serve the public and the citizens of the City of Denton, Texas. The City Manager, o/ his designee, io hereby authorized to(n) execute for and on behalf of City (i) �c Contract of Solo, by �d between Nc City �d Owner, io the fbon attached hereto and 000du o part hereof as Exhibit ^^/\" with u purchase price of ONE HONUDBN SEVENTY-TWO Tf[OO8&N0 SEVEN BDN0KBD ONE AND N0/100 DOLLARS ($172`701.00) (the ^'Pnrobaae Price" herein), plum ucduin costs, as prescribed in the Contract of u|c; and (ii) any other documents necessary for closing the transaction contemplated by the Contract of ; (b) make an offer 0V purchase the Property Interests from Owner for the Purchase Price; and (c) make cxpcuditurcainuccocdonucvjthtbetcrmmnf1hoCoubuoto[Su|e. --------- If section, article, puzo�zopb, sccd000e, phrase, c\ouac or word in this ordinance, or application tbezom[ to any persons or circumstances, is held invalid or unconstitutional by u court of competent jurisdiction, such holdings ubo|l not affect the validity of the remaining portions of this ordinance; the City Council declares that it would have ordained such remaining portion despite such invalidity, and such remaining portion shall remain in full force and effect. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 2013 MARK A. BURROUGHS, MAYOR ATTEST: IF,,NNIFEfZ WALTERS, CITY SECRETARY By: 2 EXHIBIT "A" to Ordinance STATE OF TEXAS COUNTY OF DENTON § CONTRACT OF SALE NOTICE YOU, AS OWNER OF THE PROPERTY (AS DEFINED BELOW), HAVE THE RIGHT TO: (1) DISCUSS ANY OFFER OR AGREEMENT REGARDING THE CITY OF DENTON'S ACQUISITION OF THE PROPERTY WITH OTHERS; OR (2) KEEP THE OFFER OR AGREEMENT CONFIDENTIAL, UNLESS THE OFFER OR AGREEMENT IS SUBJECT TO CHAPTER 552, GOVERNMENT CODE. This Contract of Sale (the "Contract") is made this . . ..... - ------ day of 2013, effective as of the date of execution hereof by Seller, as defined herein (the "Effective Date"), by and between North Locust Properties, L.L.C., a Texas limited liability company (referred to herein as "Seller") and the City of Denton, Texas, a Home Rule Municipal Corporation of Denton County, Texas (referred to herein as "Buyer"). RECITALS WHEREAS, Seller owns that certain tract of land being more particularly described and depicted on Exhibit "A", attached hereto and made a part hereof for all purposes, being located in Denton County, Texas (the "Land"); and WHEREAS, Seller desires to sell to Buyer, and Buyer desires to buy from Seller, the Land, together with any and all rights or interests of Seller in and to adjacent streets, alleys and rights of way and together with all and singular the improvements and fixtures thereon and all other rights and appurtenances to the Land (collectively, the "Property"). ARTICLE I SALE OF PROPERTY For the consideration hereinafter set forth, and upon the terms, conditions and provisions herein contained, and subject to the reservations herein, Seller agrees to sell and convey to Buyer, and Buyer agrees to purchase from Seller, the Property. Seller, subject to the limitation of such reservation made herein, shall reserve, for itself, its successors and assigns all oil, gas and other minerals in, on and under and that may be produced from the Property. Seller, its successors and assigns shall not have the right to use or access the surface of the Property, in any way, manner or form, in connection with or related to the reserved oil, gas, and other minerals and/or related to exploration and/or production o[ the oil, gas and other minerals reserved herein, including without limitation, use or access of the surface of the Property for the location of any well or dcU| sites, well bun:o, wbm|hcz vertical or any deviation from votiou|, vvoLor vveUo, pit areas, aciaodc auhvibco' tanks or tank bmUcdem' pipe|hztu` roads, electricity or other utility infrastructure, and/or for aohiocco1 or \u1eroJ support for any surface taci|dGca or well bores, or any other infrastructure or iozpnovczoco1 o[uoy kind or type in connection with or cc|o1cd 10 the reserved oil, gas and other cniuczula` and/or related to the exploration or production o[same. As used herein, the 1orn) "mdocru|a" abu1 include oil, gas and all ouuooio1od hydrocarbons, and shall exclude (i) all uobatamcca oil, gas and all associated hydrocarbons) that any rcueouuh)c cxLcusdon, mining or other exploration and/or production method, operation, process or procedure would consume, deplete or destroy the aoclaco of the Property; and (ii) all uubu<uncca (except oil and gas) v/biob are at or near the surface ofUbu Property. The iotccd of the parties hereto in that the cocuoiog of the tenn `^coioeru|a" as utilized herein, oboU be in accordance with that oc1 forth in Reed v. Wylie, 5978.V/.2d743(Tnx. 1980). As used herein, the term "surface o[the Property" shall include the area0orn the oor±aoc of the earth to mdcn1h of five buodzcJ l*ec( (500`) below the murOaou of the earth and all areas above the surface of the earth. ARTICLE 11 PURCHASE PRICE AND EARNEST MONEY 2.01 Purchase Price. The Purchase Price tobo paid to Seller for the Property is the sum o[ ONE HUNDRED SEVENTY-IYVOTH0USAN0 SEVEN HUNDRED ONE and No/ 100 Dollars ($172,70 1.00) (the "Purchase Price"). 2,02 Earnest Money. Buyer shall deposit the sum nf One Thousand and No/100 Dollars /�i 00O�m\ uoCurncsJ so ouUod)vvdhlide Resources, IJ,<�, 525 `_ , ', -__'' (herein ' South Loop 288, Sodc 125, Denton, Texas, 76205, (the "Title Cn 1, as escrow agent, within fourteen (14) calendar days of the Effective Date hereof. All interest earned thereon shall become part of the Earnest Money and shall be applied or disposed of in the aunie manner axthe original Earnest Money deposit, au provided iuthis CouLruoL |fthc purchase contemplated hereunder is conyoounoo1cJ in accordance with the tuuny and the provisions bccco[ the llacncsi Money, together with all interest co,nud thereon, ehmJ\ be applied to the Purchase Price a1Closing. In all other events, the Earnest Mnucy' and the interest accrued thereon, obu|| be disposed of by the Iidc Company as provided in this Contract. 2.03 Independent Contract Consideration. Within fourteen (14) calendar days after the Effective Date, Buyer shall deliver to the Title Company, payable to and for the o boncOh of Seller, u check in the amount of One Hundred and Y�o/|00 Dollars ($|O0. o ) (the '1udopeodeu1 Contract Consideration"), which amount the parties bcn:by acknowledge and agree has been bargainedfor and agreed to as consideration for Seller's Contract ofSale execution and delivery of the Contract. The Independent Contract Consideration is in addition 1o, and independent of any other consideration or puyzood provided in this Contract, is uou-rc[boduh|c, and abui be retained by Scl|cc notwithstanding any other provision ofddaContract. ARTICLE III 'TITLE AND SURVEY 3.0 1 Title Commitment. bd Within twenty (2O) calendar days at-ter the Effective Date, Seller shall cause tobo burnished to Buyer o current Commitment for Title Insurance (te "Title Commitment") for the Property, issued by Title Company. The Title [oozmdmcn| mbaL mc1 fbdb the state of title 10 the Property, including u list of liens, mortgages, security in1onca\s, encumbrances, pledges, assignments, claims, charges, |umaca (surface, space, mineral, or otherwise), conditions, zcobictinoo' options, severed mineral or royalty interests, conditional sales contracts, dgtdu of first refusal, restrictive covenants, exceptions, coeerocnix (temporary or permanent), rights-of-way, encroachments, or any ndbcr outstanding claims, interests, cm&Aus or equities of any nukzrc (each of which are referred to herein as an "Exception"). 8d Along with the Title Commitment, Seller shall also cause tobcdelivered to Buyer, at l}oycz`a sn|o cog and expense, true and correct copies of all inotnuo`oui that ozco1c or evidence Ilxccninux (the ^^2zucptiooL)ooumcoi "), including \boao described in the Title Cominitment as exceptions to which the conveyance will be subject and/or which are required to be zc|coued or cured a1oz prior to Closing. 3.02 Survey. Within thirty (30) uukxndoz Juva after the B|Ieuivo [)oie, Seller abuD cause to be prepared at Buyer's expense, o unnou( on the ground survey of the Property (the "Survey"). The contents of the Survey shall hc prepared bru surveyor selected hy Buyer and ahoU include the ruaVcrn prescribed by Buyer, which may include but not ho |icniicd to, u depiction of(bc location of all roads, streets, cuaenncn(a and rights of way, hutb on and adjoining the Property, vva1or cooraco` lOO your flood plain, tenocu and improvements and structures of any kind. The Survey ehoU describe the size of the Property, in acres, and contain o onc{cm and bounds description 1borco[ Seller mhnU furnish ur cause to be furnished any affidavits, ccdiOnu1oo, uaoora000u` and/or resolutions as required by the Title Company in order k` amend the survey exception as required by Suudou 3.05 below. The description of the Property as set forth in the Survey, at the Buyer's election, shall bc used io describe the Property iuthe deed io convey the Property to Buyer and ybn)| be the description set forth io the Title Policy. 3.03 Review o['Title Commitment, Survey and Exception Documents. Buyer shall have u period o[ fifteen (]5) calendar days (the "Title Review Poinc[`> commencing with the day Buyer receives the last of the Title Commitment, the Survey, and the Exception Documents, in vvbioh to give written notice to Seller, specifying Buyer's objections to Contract nfSale Page 3 of 23 one or more of the items ("Objections"), if any. All items set forth in the Schedule C of the Title Commitment, and all other items set forth in the 'Title Commitment which are required to be released or otherwise satisfied at or prior to Closing, shall be deemed to be Objections without any action by Buyer. 3.04 Seller's Obligation to Cure; Buyer's Right to Terminate. The Seller shall, within twenty (20) calendar days after Seller is provided notice of Objections, either satisfy the Objections at Seller's sole cost and expense or promptly notify Buyer in writing of the Objections that Seller cannot or will not satisfy at Seller's expense, Notwithstanding the foregoing sentence, Seller shall, in any event, be obligated to cure those Objections or I'Aceptions that have been voluntarily placed on or against the Property by Seller after the Effective Date. If Seller fails or refuses to satisfy any Objections that Seller is not obligated to cure within the allowed twenty (20) calendar day period, and if Buyer does not agree in writing to an extension of that period, said extension to not exceed an additional thirty (30) calendar clays, then Buyer has the option of either: (a) waiving the unsatisfied Objections by, and only by, notice in writing to Seller prior to Closing, in which event those Objections shall become Permitted Exceptions (herein so called), or (b) terminating this Contract by notice in writing prior to Closing and receiving back the Earnest Money, in which latter event Seller and Buyer shall have no further obligations, one to the other, with respect to the subject matter of this Contract. 3.04.A. Additional Title Commitment. Due to the fact that the effective period of the 'Title Commitment shall expire prior to Closing, Seller shall cause to be furnished to Buyer, no earlier than ninety one (91) calendar days after the Effective Date and no later than one hundred ten (110) calendar days after the Effective Date, a Title Commitment ("Updated Commitment"), in the form of the Title Commitment prescribed by Section 3.01, above. Buyer shall have fifteen (15) calendar days to review and provide Objections, if any, to the items in the Updated Commitment in the same manner as prescribed by Section 3.03 related to the Title Commitment. All time periods related to review and Cure of the Objections, waiver of uncured Objections and termination of this Contract, as set forth in Article 111, above, shall be applicable to the Objections by Buyer to the Updated Commitment, if any, and Closing shall be so extended to accommodate such review and cure period. 3.05 Title Policy. At Closing, Seller, at Buyer's sole cost and expense, shall cause a standard Texas Owner's Policy of 'Title Insurance ("Title Policy") to be furnished to Buyer. The Title Policy shall be issued by the Title Company, in the amount of the Purchase Price and insuring that Buyer has indefeasible fee simple title to the Property, subject only to the Permitted Exceptions. The Title Policy may contain only the Permitted Exceptions and shall contain no other exceptions to title, with tile standard printed or common exceptions amended or deleted as follows: Contract of Sale Page 4 of 23 bu survey exception must be ozncudm] if required by Buyer to read "shortages in area" only Schedule C of the ]]Uc Cmnocoibnco1 may condition amendment oo the presentation ofao acceptable survey and payment, k`beborne solely by Buyer, o[ooy required additional preruiom); (b) no exception will be permitted for "visible and apparent cuuconootm" or vvondo to that effect (although rcD:roouc may be made to any specific caoczuuu< or use shown ou the Survey, ifu Permitted Exoepiioo); (u) on exception will be permitted for "rights of parties iupoamcssion"; (d) on liens will b* shown on Schedule A. Notwithstanding the enumeration of the following exceptions, amendments and/or deletions, Buyer may object to any Exception it deems material, in its sole discretion. ARTICLE IV FEASIBILITY REVIEW PERIOD 4.01 Review Period. Any 1czoz or provision of this Contract notwith standing, the obligations of Buyer specified in this Contract are wholly conditioned on Buyer's having Je1cuniuod, in Buyer's yo\u and absolute discretion, during the period commencing with the Effective [}u10 of this (,oubuoi and ending sixty (60) calendar days (hcruuUcr (Ubc "Absolute Review Period"), based on such tests, examinations, studies, investigations and ioayocduny of the Property the Buyer docoua oeocaaury or desirable, including but not limited to studies nr inspections tu determine the existence ormny environmental hazards or conditions, performed at Buyer's sole cost, that Buyer finds the Property suitable for Buyer's purposes. Buyer is granted the right to uuudoo1 engineering o1odico of the Property, and to 000doui apbyaicul inspection uf the Property, including inspections that invade the uno[aoc and subsurface of the Property. If Buyer dcieznoiocs, in its uo|c judgment, that the Property is not uubahic, for any reason, for Buyer's intended use or purpose, the Buyer may terminate this Contract by written notice {nthe Seller, as soon as reasonably practicable, but in any ovuu1 pdnc 10 the expiration of the Absolute Kcvic"/ Period, io which case the Earnest Money will bc returned 10 Buyer, and neither Buyer nor Seller shall have any further duties oz obligations hereunder. lu the event Buyer elects to terminate this Contract pursuant to the terms of" this Article IV, Section 4.01, Buyer will providcioSoUcroopiceo[(i)unyuoduU000-000Odcobu|ondnoo-pzivdogcdrcpodeood studies obtained by Buyer during the Absolute Review Period; and (ii) the Survey. ARTICLE REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS 5.01 Representations and Warranties of Seller. To induce Buyer to enter into this Contract and consummate the sale and purchase of the Property in accordance with the terms and provisions borcvvdb` Seller represents and warrants to Buyer as of the Effective CootracofSale Page 5of29 Date and as of the Closing Date, except where specific reference is made to another date, that: (a) The descriptive information concerning the Property set forth in this Contract is complete, accurate, true and correct. (b) There are no adverse or other parties in possession of the Property or any part thereof, and no party has been granted any license, lease or other right related to the use or possession of the Property, or any part thereof, except those described in the Leases, as defined in Article V, Section 5.02(a). (c) The Seller has good and marketable fee simple title to the Property, subject only to the Permitted Exceptions. (d) The Seller has the full right, power, and authority to sell and convey the Property as provided in this Contract and to carry out Seller's obligations hereunder. (c) The Seller has not received notice of, and has no other knowledge or information of, any pending or threatened judicial or administrative action, or any action pending or threatened by adjacent landowners or other persons against or affecting the Property, (f) The Seller has disclosed to Buyer in writing of any and all facts and circumstances relating to the physical condition of the Property that may materially and adversely affect the Property and operation or intended operation thereof, or any portion thereof-, of which Seller has knowledge. (g) The Seller has paid all real estate and personal property taxes, assessments, excises, and levies that are presently due, if any, which are against or are related to the Property, or will be due as of the Closing, and the Property will be subject to no such liens. (h) The Seller shall convey the Property free and clear of all debts, liens and encumbrances. (i) Seller has not contracted or entered into any agreement with any real estate broker, agent, finder, or any other party in connection with this transaction or taken any action which would result in any real estate broker commissions or finder's fee or other fees payable to any other party with respect to the transactions contemplated by this Contract. (j) To the best of Seller's knowledge, there has not occurred the disposal or release of any Hazardous Substance to, on or froth the Property. As used in this Contract, "Hazardous Substance" means and includes all hazardous and toxic substances, waste or materials, chemicals, and any pollutant Contract of Sale Page 6 of 23 or contaminant, including without limitation, PCB's, asbestos, asbestos- containing material, petroleum products and raw materials, that are included under or regulated by any Environmental Law or that would or [nay pose a health, safety or environmental hazard. As used in this Contract, "Environmental Law" means and includes all federal, state, and local statutes, ordinances, regulations and rules presently in force or hereafter enacted relating to environmental quality, contamination, and clean-up of Hazardous Substances, including without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. 9601, et seq.), as amended by the Superfund Amendments and Reauthorization Act of 1986, the Resource Conservation and Recovery Act (42 U.S.C. 6901, et seq.), as amended, Toxic Substance Control Act, 15 U.S.C. 2601, et seq., and state sLiperlien and environmental clean-up statutes and all rules and regulations presently or hereafter promulgated under or related to said statutes, as amended. (k) All Leases, as defined in Article V, Section 5.02(a), shall have expired or otherwise terminated and any and all tenants or parties occupying the Property pursuant to the Leases shall have permanently abandoned and vacated the Property on or before the date of Closing. (1) The Seller is not a "foreign person" as defined in Section 1.445 of the Internal Revenue Code of 1986, as amended. 5.02 Covenants and Agreements of Seller. Seller covenants and agrees with Buyer as follows: (a) Unless stated otherwise, within ten (10) calendar days after the Effective Date, Seller, at Seller's sole cost and expense, shall deliver to Buyer, with respect to the Property, true, correct, and complete copies of the following: (i) All lease agreements and/or occupancy agreements and/or licenses of any kind or nature (if oral, Seller shall provide to Buyer in writing all material terms thereof) relating to the possession of the Property, or any part thereof, including any and all modifications, supplements, and amendments thereto (the "Leases"). (ii) All environmental audits, soil tests and engineering and feasibility reports, including any and all modifications, supplements and amendments thereto, with respect to the Property that Seller possesses or has the right to receive. (b) From the Effective Date until the date of Closing or earlier termination of this Contract, Seller shall: (i) Not enter into any written or oral contract, lease, easement or right of way Contract of Sale Page 7 of 23 agreement, conveyance or any other agreement of any kind with respect to, or affecting, the Property that will not be fully performed on or before the Closing or would be binding on Buyer or the Property after the date of Closing. (ii) Advise the Buyer promptly of any litigation, arbitration, or administrative hearing concerning or affecting the Property. (iii) Not take, or omit to take, any action that would result in a violation of the representations, warranties, covenants, and agreements of Seller. (iv) Not sell, assign, lease or convey any right, title or interest whatsoever in or to the Property, or create, grant or permit to be attached or perfected, any lien, encumbrance, or charge thereon. (e) Seller shall indemnify and hold Buyer harmless, to the extent permitted by law, from all loss, liability, and expense, including, without limitation, reasonable attorneys' fees, arising or incurred as a result of any liens or claims resulting from labor or materials furnished to the Property under any written or oral contracts arising or entered into prior to Closing. 5.03 Survival Beyond Closing. Notwithstanding anything to the contrary contained in this Contract, the representations, warranties, covenants and agreements of Seller contained in this Contract shall survive the Closing, and shall not, in any circumstance, be merged with the Special Warranty Deed, as described in Article VII, Section 7.02(a). ARTICLE VI CONDITIONS PRECEDENT TO PERFORMANCE 6.01 Performance of Seller's Obligations. Buyer is not obligated to perform under this Contract unless, within the designated time periods, all of the following shall have occurred: (a) Seller has performed, furnished, or caused to be furnished to Buyer all items required to be so performed or furnished under other sections of this Contract; and (b) Seller cures or Buyer waives in writing, within the time periods specified in Article 111, all of Buyer's objections made in accordance with Article 111. 6.02 Breach of Seller's Representations, Warranties, Covenants and Agreements. Buyer is not obligated to perform under this Contract unless all representations, warranties, covenants and agreements of Seller contained in this Contract are true and correct or have been performed, as applicable, as of the Closing Date, except where specific reference is made to another date. 6.03 Adverse Change. Buyer is not obligated to perform under this Contract, if on the Conti-act of Sale Page 8 of 23 date of Closing, any portion o[ the Property has been condemned byuo entity other than Buyer, or is the subject of condemnation, erniocn| domain, or other material proceeding initiated by an entity other than Buyer, or the Property, or any part thereof, has been materially or adversely impaired io any manner. 6.04 Review Period. Buyer is not obligated to perform under this Contract if Boyer delivers notice to Seller pursuant Lo Article IV, Section 4.81 that Buyer has dotczuducd that the Property is unsuitable to or for Buyer's purposes. 6.05 Buyer's Right to Waive Conditions Precedent. Notwithstanding anything contained in this Contract 10 the contrary, Buyer nzuy` at Buyer's option, elect to p/nvc any of' the onndbh000 precedent to the performance of Buyer's obligations under this Contract by giving (othe Seller, u1 any time prior to Closing, u written waiver specifying the waived condition precedent. 6.86 Buyer's Termination if Conditions Precedent Not Satisfied orWaived. If any ofthe conditions precedent to the performance of Buyer's obligations under this Contract have not been satisfied by Seller or waived bythe Buyer, the Buyer may, by giving written notice to Seller, terminate this Contract. On Buyer's termination, the Earnest Money shall be immediately returned to Buyer by the Title Company. 'The Seller oho|L nu written request from Buyer, promptly issue the instructions necessary \o instruct the Title Company to return to Buyer the Earnest Money and, thereafter, except as otherwise provided in this Contract, I\uycz and Seller shall have no further obligations uodor this Contract, one to the other. ARTICLE V11 CLOSING 7.01 Date and Place ofClosing, The Closing ao called) shall take place iuthe offices of the Title Company and shall be accomplished through an escrow to be established with the 'Title Company, as emcrowee. The Closing Date (herein sometimes ou||cd), shall be one hundred and eighty (100) calendar days after the Effective Date, unless otherwise mutually ugzcod upon by Buyer and Seller. 7.02 Items ioho Delivered mt the bd �� ��(�0oi Seller shall `, -_�, ' the Title Company, at the expense nf the party designated herein, the following (i) The Title Policy, in the lorm specified in Article 111, Section 3.05; (ii) 'The Special Warranty 0eedaobatantiailybnUe form uo attached hereto as Exhibit '^0", subject only to the Permitted Exceptions, if ooy` 6ok/ executed by Seller and acknowledged; Contract of Sale Page 9 of 23 (iii) Other items reasonably requested by the Title Company as administrative requirements for consummating the Closing. (b) Buyer. At the Closing, Buyer shall deliver to Seller or the Title Company, the following items: (i) The SUrn required by Article 11, Section 2.01, less the Earnest Money and interest carried. thereon, in the form of a check or cashier's check or other immediately available funds; (ii) Other items reasonably requested by the Title Company as administrative requirements for consurnmating the Closing. 7.03 Adjustments at Closing. Notwithstanding anything to the contrary contained in this Contract and without limiting the general application of the provisions of Section 5.03, above, the provisions of this Article V11, Section 7.03 shall survive the Closing. The following item shall be adjusted or prorated between Seller and Buyer with respect to the Property: (a) Ad valorem taxes relating to the Property for the calendar year in which the Closing shall occur shall be prorated between Seller and Buyer as of the Closing Date. If the actual amount of taxes for the calendar year in which the Closing shall occur is not known as of the Closing Date, the proration at Closing shall be based on the amount of taxes due and payable with respect to the Property for the preceding calendar year. As soon as the amount of taxes levied against the Property for the calendar year in which Closing shall occur is known, Seller and Buyer shall readjust in cash the amount of taxes to be paid by each party with the result that Seller shall pay for those taxes attributable to the period of time prior to the Closing Date (including, but not limited to, subsequent assessments for prior years due to change of land usage or ownership occurring prior to the date of Closing) and Buyer shall pay for those taxes attributable to the period of time commencing with the Closing Date. 7.04 Possession at Closing. Possession of the Property shall be delivered to Buyer at Closing. 7.05 Costs of Closing. Each party is responsible for paying the legal fees of its counsel, in negotiating, preparing, and closing the transaction contemplated by this Contract. Seller is responsible for paying fees, costs and expenses identified herein as being the responsibility of Seller. Buyer is responsible for paying fees, costs and expenses identified herein as being the responsibility of Buyer. If the responsibility for such costs or expenses associated with closing the transaction contemplated by this Contract are not identified herein, such costs or expenses shall be allocated between the parties in the customary manner for closings of real property similar to the Property in Denton County, Texas. Contract of Sale Page 10 of 23 ARTICLE Vill DEFAULTS AND REMEDIES 8.01 Seller's Defaults and Buyer's Remedies. (a) Seller's Defaults. Seller is in default under this Contract on the occurrence of any one or more of the following events: Any of Seller's warranties or representations contained in this Contract are untrue on the Closing Date; or (ii) Seller fails to meet, comply with or perform any covenant, agreement, condition precedent or obligation on Seller's part required within the time limits and in the manner required in this Contract; or (ill) Seller fails to deliver at Closing, the items specified in Article VII, Section 7.02(a) of this Contract for any reason other than a default by Buyer or termination of this Contract by Buyer pursuant to the terms hereof prior to Closing. (b) Buyer's Remedies. If Seller is in default under this Contract, Buyer as Buyer's sole and exclusive remedies for the default, may, at Buyer's sole option, do any of the following: (i) Terminate this Contract by written notice delivered to Seller in which event the Buyer shall be entitled to a return of the Earnest Money, and Seller shall, promptly on written request from Buyer, execute and deliver any documents necessary to cause the Title Company to return to Buyer the Earnest Money; (ii) Enforce specific performance of this Contract against Seller, requiring Seller to convey the Property to Buyer subject to no liens, encumbrances, exceptions, and conditions other than those shown on the 'title Commitment, whereupon Buyer shall waive title objections, if any, and accept such title without reduction in Purchase Price on account of title defects and shall be entitled to assert any rights for damages based on Seller's representations, warranties and obligations that are not waived by Buyer by its acceptance of Seller's title; and (iii) Seek other recourse or relief as may be available to Buyer at or by law, equity, contract or otherwise. 8.02 Buyer's Default and Seller's Remedies. (a) Buyer's Default. Buyer is in default under this Contract if Buyer fails to deliver at Closing, the items specified in Article V11, Section 7.02(b) of this Contract for Contract of Sale Page 11 of 23 any reason other than a default by Seller under this Contract or termination of this Contract by Buyer pursuant to the terms hereof prior to Closing. (b) Seller's Remedy. If Buyer is in default under this Contract, Seller, as Seller's sole and exclusive remedies for the default, may, at Seller's sole option, do either one of the following: (i) Terminate this Contract by written notice delivered to Buyer in which event the Seller shall be entitled to a return of the Earnest Money, and Buyer shall, promptly on written request from Seller, execute and deliver any documents necessary to cause the Title Company to return to Seller the Earnest Money; or (ii) Enforce specific performance of this Contract against Buyer. ARTICLE IX MISCELLANEOUS 9.01 Notice. All notices, demands, requests, and other communications required hereunder shall be in writing, delivered, unless expressly provided otherwise in this Contract, by telephonic facsimile, by hand delivery or by United States Mail, and shall be deemed to be delivered, upon the earlier to occur of (a) the date provided if provided by telephonic facsimile or hand delivery, and (b) the date of the deposit of, in a regularly maintained receptacle for the United States Mail, registered or certified, return receipt requested, postage prepaid, addressed as follows: SELLER: North Locust Properties, L.L.C., a "Texas limited liability Telecopy Copies to: For Seller: 'Telecopy: BUYER: City of'Denton. Paul Williamson Real Estate and Capital Support 901-A Texas Street Denton, Texas 76209 Telecopy: (940) 349-8951 Ivor BuyLer. Scott W. Hickey, Attorney at Law Kelsey, Kelsey & Hickey, PLLC P.O. Box 918 Denton, Texas 76202 Telecopy: (940) 387-9553 Contract of Sale Page 12 of 23 9.0 Governing Law and Venue. This Contract iubeing executed and delivered and im intended iobc performed bode State of Texas, the laws of Texas the validity, onoabno1mu, enforcement and interpretation of this Contract. THIS CONTRACT IS9EK[ORM/\B[E IN, AND THE BXCUUSl\/B VENUE FOR ANY /\CIi0N BROUGHT VV|TU llE8yBCI HERETO, 8OAL[ [[B IN I)BNTON COUNTY, TEXAS. 9,03 Entirety and /kcmendnomutm. This Contract conhodica the entire ngrcerneu1 bcLvvuco the pudica and oopersodco all prior agrouoncn\o and understandings, if any, related 1othe Property, and may bcamended or supplemented only in writing executed by the party against whom enforcement iosought. 9.04 Parties Bound. This Contract imbinding upon and inures to the benefit nFSeller and Buyer, and their respective successors and ooniguy. If requested by Buyer, Soi|cr agrees to execute, uukoov/|cdgc and record u ouenumrandnru o[dhia Contract in the RcuJ Property Records of Denton County, Icxue, imparting notice of this Contract 1n the public. 9.05 B5mk of Loss. 11' any durnauc or doa1nzu|ou to the Property shall occur prior to Closing, or if any condemnation or any cnuiocnt domain proceedings are 16zcm1coed or initiated by an entity or party other than Boyer that might result in the taking of any portion of the Property, Buyer may, at Buyer's option, do any of the following: (o) Iorooiuo1c this Contract arid withdraw from this irauxuo1iuu vvidbuu1 cost, obligation or liability, in which case the Barocui Money shall be icooucdio1e|y returned to Buyer; or (b) Cooaunnrna(o this Contract, in which uone 0oYcr, with respect 10 the Property, sbuU be entitled to receive any {i) in the ouoc of damage or dcotnuoduo, all insurance proceeds; and (ii) in the case ofcouiucn1 domain, proceeds paid for the Property related to the eminent domain proceedings. l}oycz shall have u period of up to ten (1O) calendar Jonm after receipt of written notification from Seller on the final settlement of all condemnation proceedings or insurance c|alnou related to dmnuoo or destruction of any iulpcnvcrnoo1 located on the Property, in which tu rnukc Buyer's election. In the event Buyer elects to close prior \* such final aoniccocnt, then the Closing nbaJ) take place as provided in Article VIL above, and there shall be assigned by Seller to Buyer at Closing all interests of Seller in and to any and all ioouzouoc proceeds or condemnation awards which may be payable to So||cr on account of such cvuuL In the cvuo\ Buyer u|oc\s 10 o|oac upon this Contract after 6nuJ aed|ccncru, as described above, Closing shall bcheld five (5) business days after such final settlement. 9.06 Further Assurances. In oJJibuo 10 the acts and deeds recited in this Contract CnnuamofSale Page 13 *f2J and contemplated to be performed, executed and/or delivered hv Seller and Buyer, 8cUcr and Buyer agree 1operform, cxccn1c and/or deliver, o, cause to be performed, excou&zj and/or do|b/crod at the Closing or uUcr the Closing, any further deeds, acts, and uamocuocco as are n:u000ab|y occuxmozy to conmuo)ouu|c the bonuoodnno contemplated hereby. Notwithstanding anything to the contrary contained in this Contract and without limiting the general application of the provisions of Section 5.03, above, the provisions o[ this Article IX, Section 9.06 abuU survive Closing. 0.07 Time imof the Essence. his expressly agreed between Buyer and Seller that time is of(bu essence with respect 10 this Contract. 9,08 Exhibits. The Exhibits which are referenced in, and attached tu this Contract, are incorporated in and made opod of, this Contract for all purposes. 9.09 Delegation ofAuthority. Authority io take any actions that are to be, or may be, taken by Buyer under this Contract, including without limitation, adjjustment ofthe Closing Date, are hereby delegated by Buyer, pursuant to action by the City Council of Denton, Texas, to Frank Payne, P.E., City Engineer of Buyer, or his designee. 9.10 Contract VIsecmduu. This Contract of Su|o may be executed in any number of counterparts, all of which taken together shall constitute one and the same agreement, and any ofthe pat-ties hereto may execute this Agreement by signing any such counterpart. 9.11 Bowiuxmm Days. If the Closing [)ale or the Joy of performance required or permitted under this Contract falls on a Saturday, Sunday or Denton County holiday, then the Closing 0n1e or the du1c of such perfhnuaooc, as the cuao may be, abuJl be the next following regular business day. 9,12 Relocation. }Lc|ouu1inn advisory services and relocation Douociu| assistance, if applicable pursuant 10 Ordinance No. 2012-073 (the '"l<c|oun1ion 0rdioonoc"), uhu|| be administered as provided by the Relocation Ordinance, aside and upod from the transaction contemplated bythis [ootruuL SELLER: North Locust Properties, [.[.C., aToxua limited liability company By: Capacity: Executed by Seller on the _ ...... ____day of 2013. Contract of Sale Page 14 of'23 BUYER: By: GEORGE C. CAMPBELL, CITY MANAGER E'xecuted by Buyer on the day of 2013. ATTEST: JENNIF'ER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: scoTT W. HICKEY, Kl-,.'I..,SEY,.Kl-,.'I.,SEY & HICKEY, PLLC m Contract of Sale Page 1 5 of 23 RECEIPT OF AG0E0MENT0YTITLE COMPANY By its execution below, Title Company acknowledges receipt of an executed copy of this Contract. Title Company agrees to comply with and be bound by, the terms and provisions o[this Contract and b` perform its duties pursuant (o the provisions of this Contract and comply with Section 6045(c) of the 1nicroul Revenue Code of 1906, as amended from time to booc, and as farther aol forth in any rogo|u1ioua or fbona promulgated thereunder. TITLE' COMPANY: Title Resources, LLC 525 South Loop 288, Suite l25 Denton, Texas 762O5 Telephone: (940)SDl-lOO8 Te|Coopy:(94O)848-Ol2l By: Printed Name: Title: Contract receipt date: 20 13 ContmctofSale Page 16 of 23 Exhibit "A" Page I LEGAL DESCRIPTION BEING a2.493 acre tract of land aihuebad in the T. Toby Survey, Abstract No. 1288, Denton Cnunty, Texas, and being part of a called 11.46 acre tract of land described in a Deed to North Locust Properties, LLC., as recorded in Document No. 2010-52041 of the Real Property Records of Denton County. Texas, and being more particularly described aafollows: BEGINNING at a 1/2 inch iron rod found for corner at an interior ell corner of the above cited 11.46 acre tmo(, said point being the Northwest corner ofa called 3.375 acre tract ofland described in o Deed to the City of Denhon. Texao, as recorded in Volume 732, Page 972 of the Deed Records of Denton County. Texos, said point also being at on angle point in the East line of Block C. per the Final Plat of Lo Hacienda Heights, Phase |, as recorded in Cabinet W, Page GGG of the Plat Records of Denton County, Texas, THENCE North 00~10'49" East (North 00°25'25^ East per said P|sd recorded in Cabinet W, Page 660), along the East line of said Block C of La Hacienda Heights, Phase i for distance of 359.78 feet (359.82 feet per said Plat recorded in Cabinet W, Page GOM) to o 50 inch iron rod with cop stamped ^TNP^ set for corner in o non-tangent curve to the right in the South line ofBeall Street, (variable width right-of-way per said Plat recorded in Cabinet W, Page SGG); THENCE in on Eombar|y direution, along the South line of said Beall Streat, and along said non-tangent curve to the right having o central angle of 02"31'51'', a radius of 387.50 feet, a chord bearing of North 88°47'53^ Eoat, a chord distance of 17.12 feet and an arc length of 17.12 feet to a 5/8 inch iron rod with cap stamped ''TNP'' set for corner; THENCE South 89°49'40^ East (South 80"34'35^ East per said Plat recorded in Cabinet W, Page 666). continuing along the South line of said Beall Stnaet, for distance of 245.83 feet (245.82 feet per said Plat recorded in Cabinet W, Page SGG) to u 5/8 inch iron rod with cap stamped ^TNP^ set for uorner� THENCE South 44"17'24" East (South 44°03'41^ East per said Plat recorded in Cabinet W, Page 666). continuing along the South line of said Beall Stnaet, fora distance of 28.07 feet (28.02 feet per said Plat recorded in Cabinet W, Page SGG) to an ''X^ out in a concrete drainage structure set for corner; THENCE South 88~42'1G" East (South O8°32'46" East per said Plat recorded in Cabinet W, Page SGG) continuing along the South line of said Beall Stnaet, for a distance of 23.34 feet (23.37 feet per said Plat recorded in Cabinet W, Page 668) to an ^X^ out in a concrete drainage structure set for corner in the West line of North Locust Street (F.M. 2164 - 90' right-of-way per Volume 400, Page 13 of the Deed Records of Denton County. Texas), from which the calculated Northeast corner of said 11.46 acre tract bears North 01011'10^ East adistance of 72.32', THENCE South 0101110^ VVea (South 01°14'40^ East per said Deed recorded in Document No. 2O1O'52O41). along the West line of said North Locust Street (F.N1. 21S4). for o distance of34O2Q feet to a 50 inch iron rod with cap stamped ^TNP^ set for corner atthe most Easterly Southeast corner nfsaid 11.46 acre tract, said point also being the Northeast corner of the above cited 3.375 acre tract; THENCE North 89"43'25^ West (North 89°41'09^ West per said Deed recorded in Document No. 2010-52041) departing the West line of said North Locust Street (F.W1 2184) and along the South line of said 11.46 acre tract and the North line of said 3.375 acre tract, for a distance of 299.97 feet (299.97 feet per said Deed recorded in Document No. 2010-52041) to the POINT OF BEG|NN|NG, and containing 2,493 oonea of land, more orless. Contract of Sale Page 17 of 23 pms"" . ..... . .... -------------- @g R y 12 1H It qhj q W ri ti, M H @ T a I nc FRESCA FALLS o P. 21 4 . j,:,: N. LOCUST STREET (FM 2Y64) 'n? Ax21 Is m 0 0 6j r 0 r r R Con- -ract- Page 18 of 23 EXHIBIT "B" to Contract of Sale NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. SPECIAL WARRANTY DEED STATE OF TEXAS § COUNTY OF DENTON § KNOW ALL MEN BY THESE PRESENTS That North Locust Properties, L.L.C., a Texas limited liability company (herein called "Grantor"), for and in consideration of the suin of TEN AND NO/] 00 DOLLARS ($10.00), and other good and valuable consideration to Grantor in hand paid by the City of Denton, Texas, a Texas Home Rule Municipal Corporation (herein called "Grantee"), 215 F'. McKinney, Denton, Texas 76201, the receipt and sufficiency ot'which are hereby acknowledged and confessed, subject to the reservations set forth below, has GRANTED, SOLD and CONVEYED, and by these presents does GRANT, SELL and CONVEY, unto Grantee all the real property in Denton County, Texas being particularly described and depleted on Exhibit "A", attached hereto and made a part hereof for all purposes, and being located in Denton County, Texas, together with any and all rights or interests of Grantor in and to adjacent streets, alleys and rights of way and together with all and singular the improvements and fixtures thereon and all other rights and appurtenances thereto (collectively, the "Property") Grantor, subject to the limitation of such reservation made herein, reserves, for itself', its successors and assigns all oil, gas and other minerals in, on and under and that may be produced from the Property. Grantor, its successors and assigns shall not have Contract of Sale Page 19 of 23 the right to use or moocua the surface of" the Property, in any way, manner or tbzuz in connection with or related to the reserved oil, guu` and other minerals and/or related to exploration and/or production of the oil, gas and other minerals reserved herein, including without limitation, use or access of the surface of the Property for the location of any well or drill sites, well bores, whether vertical or any deviation from vodioo|, water w/cUy' ph urcus` sciaouio activities, 1uoka or tank hnUczicn, pipu|iooa` roads, electricity or other utility infrastructure, and/or for subjacent or \ctcca| support for any surface Cnci|idca or well bores, or any other infrastructure or improvement n[any kind ortype in connection with or related to the reserved oil, gum and other roiucru|a, and/or /c|a1od 10 the exploration or production of same. As used herein, the term ^^ndocru\u" shall bnohzdu nil, gas and all associated hydrocarbons, and shall exclude (i) all xobabancco (except oil, gas and all associated hydrocarbons) that any ccoaonah|c extraction, mining or other exploration and/or production method, oyuzcAiou, process or procedure vvoo|d consume, deplete or destroy the surface n[ the Property; and (ii) all oube1uucom (except oil and gas) vvbicb arc at or near the enzbauc of the Property. The intent of the Pudiva hereto is that the meaning of the term "minerals" as utilized herein, shall be in accordance with that set forth in Reed v. Wylie, 5978.YJ.2d743 ([ex. 1980). As used herein, the term "surface of the ` sbuU include the area from the surface of the earth to a depth of five hundred feet (500') below the surface of the earth and all areas above the surface ofthe earth. This conveyance is subject to thefollowing: (All of those Exceptions from Coverage found on Schedule 0 of the Owners TidcPolicy to which referenced is hereby made for all purposes and incorporated by reference oaie fully set forth herein] TO HAVE AND lV HOLD the Property, together with all and singular the rights and appurtenances thereto io anywise belonging unto Grantee and {|ruotee`a successors and assigns forever; and Grantor does hereby bind Grantor and Grantor's aucocmuoro and Contract of Sale Page 2Oof23 assigns to WARRANT AND FOREVER DEFEND all and singular the Property unto Grantee and Grantee's successors and assigns, against every person whomsoever lawfully claiming or to clairn the same or any part thereof when the claim is by, through, or under Grantor but not otherwise. EXECUTED the - day of GRANTOR: North Locust Properties, L.L.C., aTexas limited liability company By: __ _ Capacity: State ol"Texas § County Of § 2013 This instrument was acknowledged before me on this day of 2013, by as of North Locust Properties, L.L.C., a Texas limited liability company on behalf of the said company and in the capacity therein stated. Upon Filing Return To: The City of Denton-Engineering Attn: Paul Williamson 901 -A Texas Street Denton, TX 76209 Notary Public, State of My Commission Expires: Contract of Sale Page 21 of 23 Send Tax Billing Statements To: The City of Denton Attn: Finance Department 215 East McKinney Street Denton, Texas 76201 Exhibit "/\" Page l LEGAL DESCRIPTION BEING o2.4Q3 acre tract of land situated in the T. Toby Survey, Abstract No. 1288, Denton County, Texas, and being part of a called 11.46 acre tract of land described in a Deed to North Locust Properties, LLC., as recorded in Document No. 2010'52041 of the Real Property Records of Denton County. Texas, and being more particularly described eofollows: BEGINNING at a 1/2 inch iron rod found for corner at an interior ell corner of the above cited 11.46 acre tract, said point being the Northwest corner ofa called 3.375 acre tract ofland described in a Dead to the City of Denton. Texos, as recorded in Volume 732, Page 972 of the Deed Records of Denton Counh/. Texam, said point also being at an angle point in the East line of Block C. per the Final Plat of La Hacienda Heights, Phase |, as recorded in Cabinet W, Page GSG of the Plat Records of Denton County, Texan; THENCE North 00~10'49" East (North 00^25'25" East per said Plat recorded in Cabinet W, Page 668). along the East line of said Block C of La Hacienda Heights, Phase |, fora distance of 359.78 feat (369.82 feet per said Plat recorded in Cabinet W, Page 666) to o 5/8 inch iron rod with map stamped ''TNP" set for corner in a non-tangent curve to the right in the South line of Beall Street, (variable width right-of-way per said Plat recorded in Cabinet W, Page GGS); THENCE in an Easterly dineodon, along the South line of said Beall Sbned, and along said non-tangent curve to the right having o central angle of 02'31'51", a radius of387.5O feat, e chord bearing of North 88047'63^ Eost, o chord distance of 17.12 feet and on arc length of 17.12 feet to a BO inch iron nod with cap stamped ^TNP^ set for corner; THENCE South 89"49'40' East (South 89"34'35' East per said Plat recorded in Cabinet W, Page 666). continuing along the South line ofsaid Beall Streed, fora distance of 245.83 feet (245 82 feet per said P|sd recorded in Cabinet W, Page GGG) to a 5/8 inch iron rod with cop stamped ''TNP" set for corner; THENCE South 44"17'24^ East (South 44"O3'41" East per said Plat recorded in Cabinet W, Page SGG), continuing along the South line of said Beall Stmat, for distance of 28.07 feet (28.02 feet per said Plat recorded in Cabinet W, Page 666) to an "X" cut in a concrete drainage structure set for corner; THENCE South 88°42'1G" East (South 88"32'46" East per said Plat recorded in Cabinet W, Page SGS), continuing along the South line of said Beall Street, for a distance of 23.34 feet (33.37 feet per said Plat recorded in Cabinet VV' Page GSG)toan''X^ cut ine concrete drainage structure set for corner in the VVeat line uf North Locust Street (F . 2164 - QO' right-of-way per Volume 400, Page 13of the Deed Records of Denton County. T*xas), from which the calculated Northeast corner ofsaid 1146 acre tract bears North O1"111O'' East o distance of72.32; THENCE South 01,11'10" West (South 01"14'40" East per said Deed recorded in Document No. 2010-52041) along the VVestline of said North Locust Street (F.W1. 2164). fora distance of 340.29 feet to a 5/8 inch iron rod with map stomped ^TNP^ set for com*r at the most Easterly Southeast corner ofsaid 11.46 acre '.saidpoint also being the Northeast corner of the above cited 3.375 acre tract; THENCE North 88°43'25" West (North 89~41'09^ West per said Deed recorded in Document No. 2010-52041) departing the West line of said North Locust S�aet(F.[N. 2164). and along the South line of said 1148 acre tract and the North line of said 3.375 acre tract, for e distance of2QQ.Q7 feet (2AQ.A7feet per said Deed recorded in Document No. 2010-52041) to the POINT OF BEG|NN|NG, and containing 2.4B3 acres of land, more orless. Contract of Sale Page 22 of 23 0 Exhibit "A"_Page 2 I jilt 11 w R pi N It J N 1� 211 Cl a It z 0 0 m m 0 me r c r FRESCA FALLS 1�,, o� C) z 0 0 m m 0 me r c r flY t4" I Iq -, I ME ■ 1�,, o� C) flY t4" I Iq -, I ME ■ sAlegal \our documents\ miscellaneous \13 \aishlmuncprotunc. doe AGENDA DATE: DEPARTMENT: ACM: AGENDA INFORMATION SHEET November 5, 2013 Legal Department Anita Burgess Couna,e i'0 Ageinda J SUBJECT: Consider adoption of an ordinance of the City of Denton, Texas, nunc pro tunc, correcting an inadvertent mistake in Ordinance No. 2004 -233 relating to the authority of the Historic Landmark Commission, specifically its adoption of Section 35.7.6.10d of the Denton Development Code; providing for a penalty in the maximum amount of $2,000.00 for violation thereof, providing for severability, savings and supersedure; and providing for an effective date. BACKGROUND: In 1980, the City Council passed and approved Ordinance No. 80 -30 which, inter alia, adopted Section 35 -221d of the Denton Code setting forth procedures relating to procedures for obtaining permits for properties pending designation as historic landmarks. In 2004, the City Council passed and approved Ordinance No. 2004 -233 adopting Section 35.7.6.10d of the Denton Development Code which purported to codify Section 35 -221 of the Denton Code. No substantive change in the wording of Section 35 -221 was intended. Unfortunately, there was an inadvertent mistake in the drafting of Ordinance No.2004 -233, specifically that portion thereof adopting Section 35.7.6.10d, such that substantive changes in the wording thereof did in fact occur resulting in the ordinance failing to conform to the information provided to the City Council. The proposed ordinance will correct, nunc pro tunc, this inadvertent error. Accordingly, please see the attached proposed Ordinance for your consideration. OPTIONS: Approve, deny or take no action concerning the proposed ordinance. RECOMMENDATION: Staff recommends approval of this ordinance. o%n M. Knight Attachment: Ordinance sAlegal \our documents \ordinances \13\nunc pro tunc.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, NUNC PRO TUNC, CORRECTING AN INADVERTENT MISTAKE IN ORDINANCE NO. 2004-233 RELATING TO THE AUTHORITY OF THE HISTORIC LANDMARK COMMISSION, SPECIFICALLY ITS ADOPTION OF SECTION 35.7.6.1OD OF THE DENTON DEVELOPMENT CODE; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATION THEREOF; PROVIDING FOR SEVERABILITY, SAVINGS AND SUPERSEDURE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on August 17, 2004, by Ordinance No. 2004 -233, the City Council approved the adoption of Section 35.7.6.10d of the Denton Development Code; and WHEREAS, there was an inadvertent mistake in the drafting of Ordinance No. 2004 -233 specifically Section 35.7.6.1 OD, as the ordinance failed to conform to the information provided to City Council at the meeting when the ordinance was approved; and WHEREAS, the City Council has the inherent power to retroactively correct such mistakes to reflect the truth of what was actually approved by the City Council when approving the ordinance; and WHEREAS, the City Council finds that the action taken herein is in the public interest; NOW, THEREFORE THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. Ordinance No. 2004 -233 is hereby amended to the limited extent necessary to correct an inadvertent mistake in the establishment of Section 35.7.6.101) of the Denton Development Code, and as corrected, said Section 35.7.6.1 OD shall instead read as follows: 35.7.6.1 OD. Procedures for obtaining permits pending designation as historic landmark. Notwithstanding any other provision of this article, no building permit, removal permit or demolition permit shall be issued by the building official for any structure located in a national register district except as authorized by this subsection. The building official shall notify the landmark commission immediately of any application requesting a building permit, removal permit or demolition permit for a structure located in a national register district. No such permit shall be issued by the building official before the landmark commission has made a recommendation or scheduled the structure on its agenda or before the expiration of forty (40) calendar days, whichever is sooner. If a structure is made an agenda item it shall be scheduled for a public hearing as soon as adjacent property owners are notified. For purposes of this subsection, "national register district" is defined as a designated area possessing a significant concentration, linkage or continuity of sites, building structures or sAlegal \our documents \ordinances \13 \nunc pro tunc.doc objects which are separated geographically but are linked by association or history, provided that no area may be considered a national register district for purposes of this subsection unless it has been designated in the Federal Register pursuant to the National Preservation Act of 1966, as amended, prior to the effective date of the ordinance from which this section is derived and until maps depicting such area are made available for inspection by the public in the office of the building inspection department. Notwithstanding any provision hereof, this section shall not apply to geographical areas designated as historic districts under the provision of this article. SECTION 3. All provisions of Ordinance No. 2004 -233 and the Denton Development Code not specifically amended herein shall continue in force and effect; however, the provisions of this ordinance shall govern and control over any conflicting provisions of Ordinance No. 2004 -233, to the extent of any such conflict. SECTION 4. Any person violating any provision of this ordinance shall, upon conviction, be fined a sum not exceeding $2,000.00. Each day that a provision of this ordinance is violated shall constitute a separate and distinct offense. SECTION 5. This ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record - Chronicle, a daily newspaper published in the City of Denton, Texas, within ten (10) days of the date of its passage and approval. PASSED AND APPROVED this the day of , 2013. ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY all, �_� ,= MARK A. BURROUGHS, MAYOR PAGE 2 AGENDA DATE DEPARTMENT: ACM: SUBJECT AGENDA INFORMATION SHEET November 5, 2013 Materials Management Bryan Langley � -A Questions concerning this acquisition may be directed to Elton Brock at 349 -7133 Consider adoption of an ordinance authorizing the City Manager to execute an Interlocal Cooperative Purchasing Program Agreement with the University of North Texas Murphy Center for Entrepreneurship under Section 791.001 of the State of Texas 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 5382 - Interlocal Agreement with the University of North Texas Murphy Center for Entrepreneurship for Leadership Development Training in the amount of $26,400). FILE INFORMATION This Agreement will allow the City of Denton to contract with the University of North Texas Murphy Center for Entrepreneurship (UNT) to conduct a new training initiative known as the Leadership Excellence and Enhancement Program (LEEP). The goal of the LEEP program is to develop leadership competencies in employees, improve cross functional communication, and implement organizational improvements. LEEP consists of twenty -two (22) modules of training which will be offered in 2014 to a small number of City employees. The professor(s) will also help guide the participants as they work on a project designed to address a real City challenge. The kickoff will be January 22, 2014, and classroom training will extend through December 2014. If needed, this Agreement will allow for extension of training and /or project guidance through March 1, 2015. Section 791.001 of the Texas Government Code requires that all interlocal contracts must be authorized by the governing body, regardless of the dollar amount. The only exception to this is municipally owned electric utilities -these entities have a $100,000 threshold before authorization by the governing body is required. RECOMMENDATION Approve an Interlocal Cooperative Purchasing Program Agreement with the University of North Texas Murphy Center for Entrepreneurship in the amount of $26,400. PRINCIPAL PLACE OF BUSINESS University of North Texas Murphy Center for Entrepreneurship Denton, TX Agenda Information Sheet November 5, 2013 Page 2 ESTIMATED SCHEDULE OF PROJECT The University of North Texas Murphy Center for Entrepreneurship will perform the tasks detailed in the Interlocal Cooperative Purchasing Program Agreement during the time period of January 22, 2014 through March 1, 2015. The Agreement may be renewed upon written agreement by both parties. FISCAL INFORMATION The Leadership Excellence and Enhancement Program will be funded from the Human Resources Training account (150001.7820). EXHIBITS Exhibit 1: Ordinance and Interlocal Agreement Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance 1 -.CIS -File 7382 ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERLOCAL COOPERATIVE PURCHASING PROGRAM AGREEMENT WITH THE UNIVERSITY OF NORTH TEXAS MURPHY CENTER FOR ENTREPRENEURSHIP UNDER SECTION 791.001 OF THE STATE OF TEXAS 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 5182- INTERLOCAL AGREEMENT WITH THE UNIVERSITY OF NORTH TEXAS MURPHY CENTER FOR ENTREPRENEURSHIP FOR LEADERSHIP DEVELOPMENT TRAINING IN THE AMOUNT OF $26,400). THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager, or his designee, is hereby authorized to execute the Interlocal Cooperative Purchasing Program Agreement with the University of North Texas Murphy Center for Entrepreneurship under Section 791.001 of the Texas Government Code, a copy of which is attached hereto and incorporated by reference herein (the "Agreement'). SECTION 2. The City Manager, or his designee, is authorized to expend funds pursuant to the Agreement for the purchase of various goods and services. SECTION 3. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 5382 to the City Manager of the City of Denton, Texas, or his designee. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2013. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY n-M APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 2- ORD- Interlocal Agreement With I TNT Murphy Center for Entrepreneurship INTERLOCAL AGREEMENT This Interlocal Agreement (the "Agreement ") is made and entered into this 15th day of October, 2013, between The City of Denton, Texas, a political subdivision of the State of Texas (hereinafter "CITY") and the University of North Texas, Murphy Center for Entrepreneurship, , and an agency of the State of Texas ( "UNT "). WHEREAS, both the City and the State of Texas have the authority to enter into this Agreement pursuant to Chapter 791, Texas Government Code; and WHEREAS, the service agreement for Leadership Excellence and Enhancement Workshops ( "Service Agreement ") contemplated under this Agreement is of mutual interest and benefit to UNT and to the CITY and will further the instructional and technical objectives of UNT in a manner consistent Nvith its status as an agency of the State of Texas; and WHEREAS, it is mutuallv beneficial to both parties to execute this Agreement whereby each entity can achieve common objectives relating to the professional development of the employees of the City of Denton, and in the interest of saving the City of Denton and State of Texas taxpayer funding; and NOW THEREFORE, in consideration of the mutual representations, terms and covenants hereafter set forth, the parties hereby agree as follows: 1. STATEMENT OF WORK. UNT agrees to use its reasonable efforts to perform the Leadership Excellence and Enhancement Workshop(s) described in the Service Agreement appended hereto and incorporated as Attachment 1. 2. PROGRAM COORDINATOR. The Program will be super-,ised by Dr. Don Powell, Professor (a The University of North Texas. 3. PERIOD OF PERFORMANCE. UNT will perform the program and tasks detailed in the "Service Agreement" during the period of January 22, 2014 through March Ist, 2015. This Agreement may be renewed only by written agreement executed by both parties. 4. TOTAL AMOUNT OF THE CONTRACT. The City agrees to pay UNT the fixed price of $26,400 (twenty six thousand and four hundred dollars), as agreed to in the payment schedule, listed below. 5. PAYMENT SCHEDULE. The City shall make payments upon receipt of invoices, in accordance Nvith the statutory- provisions of Texas Government Code; Chapter 2251.The payment schedule indentified below, strictly follows a milestone performance schedule, in meeting of the stated DELIVERABLES (_attachment 1), and in the approval of invoices submitted to the City. 30% ($7,920) due upon execution of the Agreement, and receipt of invoice 17.5% ($4,620) due upon receipt of quarterly invoice starting May 1, 2014 17.5% ($4,620) due upon receipt of quarterly invoice starting August 1, 2014 17.5% ($4,620) due upon receipt of quarterly invoice starting November 1, 2014 17.5% ($4,620) due upon receipt of quarterly invoice starting March 1, 2015 Invoices shall be sent to the following address: Name: City of Denton, Accounts Payable Department Address: 215 East :NIchinnev Street City State Zip: Denton, TZ 76201 Company Rep Name: Accounts Payable Phone: 940- 349 -8223 Email: accountspayabhe ( a cityofdenton.com 6. TERMINATION. This agreement may be terminated by either party, upon sixty (60) days prior written notice 7. BREACH / OPPORTUNITY TO CURE. The parties hereto expressly covenant and agree that in the event either party is in default of its obligations herein, the party not in default shall provide to the party in default at least thirty (30) days written notice to cure said default before exercising any of its rights as provided for in this Agreement. 8. LIABILITY. The parties to this Agreement and their respective officers and employees shall not be deemed to assume any liability for the acts, omissions and negligence of the other party. 9. DISCLAIMER OF LIABILITY. TEES MAKES NO REPRESENTATIONS AND EZTENDS NO WARRANTIES OF ANY hIND, EITHER EZ -PRESS OR IMPLIED IN CONNECTION WITH THE TECHNICAL REPORTS, INVENTION DISCLOSURES OR RESEARCH DATA FURNISHED UNDER THIS AGREEMENT. THERE ARE NO EZ -PRESS OR Page 1 of 5 OGC app. 6/2006 IMPLIED W ARRANTIES OF :NIERCH ANT ABILITY OR FITNESS FOR A P ARTICtT AR PURPOSE, OR THAT USE OF SUCH MATERIALS OR :NIODIFIC ATION OF SUCH :NIATERLALS WILL NOT INFRINGE ON ANY PATENT, COPYRIGHT, TR =,1ARh, OR OTHER PROPRIETARY RIGHT. 10. FORCE MAJUERE. Except for the obligation for the payment of money, if either party fails to fulfill its obligations hereunder when such failure is due to an act of God, or other circumstance beyond its reasonable control, then said failure shall be excused for the duration of such event and for such a time thereafter as is reasonable to enable the parties to resume performance under this Agreement. 11. DISPUTE RESOLUTION. The City must use the dispute resolution process provided in Chapter 2260 of the Texas Government Code to attempt to resolve a dispute arising under this contract and such process is a required prerequisite to suit in accordance Nvifli Chapter 107, Texas Civil Practice and Remedies Code. The City must submit written notice of a claim of breach of contract under this chapter to UNT. UNT is an agency of the State of Texas, and the CITY is a local - government entity and nothing in this Agreement waives or relinquishes the right of either party to claim any exemptions, privileges and immunities as may be provided by law. 12. REMEDIES. This Agreement shall be construed by and governed by the laws of the State of Texas. Venue for any legal action necessary to enforce the Agreement will be in Denton County, Texas. No remedy herein conferred upon any party is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute or otherwise. No single or partial exercise by A ny party of any right, power or remedy hereunder shall preclude any other or further exercise thereof. 13. ENTIRE REPRESENTATION. This Agreement contains the entire agreement between the parties and supersedes any prior oral or written agreements, commitments, understandings, or communications with respect to the subject matter of the Agreement. No amendments or modification of this Agreement shall be effective unless set forth in writing executed by duly authorized representatives of each party. This Agreement shall be construed in accordance with the laws of the State of Texas. 14. WAIVER. No waiver of any provision hereof or of any right or remedy hereunder shall be effective unless in writing and signed by the party against whom such waiver is sought to be enforced. No delay in exercising, no course of dealing with respect to, or no partial exercise of any right or remedy hereunder shall constitute a waiver of any right or remedy, or future exercise thereof. 15. ASSIGNMENT. This Agreement may not be assigned in whole or in part by any of the Parties without prior written consent of the other Party. 16. SEVERABILITY. In the event that any section, paragraph, sentence, clause or provision hereof is held by a court of competent jurisdiction to be invalid, such shall not affect the remaining portions of this Agreement and the same shall remain in full force and effect. 17. AMENDMENTS. This Agreement may be amended from time to time by written amendment by both parties. 18. NOTICE. Any notice required to be given in cormec6c)n Nvifli this Agreement shall be in writing and shall be deemed effective if hand delivered, or if sent by United States certified mail, return receipt requested, postage prepaid, or if sent by private receipted courier guaranteeing same -day or next -day delivery, addressed to the respective party at its address provided below. If sent by U.S. certified mail in accordance wifli this Section, such notices shall be deemed given and received on the earlier of (a) actual receipt at the address of the named addressee, or (b) on the third (3rd) business day after deposit wide the United States Postal Service. Notice given by any other means shall be deemed given and received only upon actual receipt at the address of the named addressee. University of North Texas Murphy Center for Entrepreneurship Denton, TZ 76205 Attn: Dr. Finley Graves, Dean Telephone: Email: City of Denton Purchasing Department 90113 Texas Street Denton, Texas 76201 Attn: Purchasing Manager Telephone: 940 -349 -7133 Email: purchasin.g(a cityofdenton.com 19. NO THIRD PARTY BENEFICIARIES. For purposes of this Agreement, including its intended operation and effect, the parties specifically agree and contract fliat (1) the Agreement only affects matters disputes between the parties to this Agreement, and is in no way intended by the parties to benefit or oflierwise affect any third person or entity notyviflistanding the fact that such third person or entity may be in contractual relationship yvifli the State or City, or both; and (2) the terms of this Agreement are not intended to release, either by contract or by operation of law, any third person or entity from obligations owed by them to either the State or City. Page 2 of 5 OGC app. 6/2006 30. ENTIRETY OF AGREEMENT. This Agreement represents the entire understanding between the County and City and supersedes all other negotiations, representations or agreement, written or oral, relating to this Agreement. The parties have caused this Agreement to be executed by their duly authorized representative. University of North Texas Dr. Finlev Graves, Dean College of Business Dr. Anthonv Mendes, Director Murphy Center Dr. Don Powell, Program Coordinator City of Denton, Texas Elton D. Brock, RIBA, C.P.M. Manager, Materials Management ACKNOWLEDGEMENT STATE OF TELLS j COLiNTY OF DENTON j Date Date Date Date This instrument was acknowledged before me on the day of behalf of the City of Denton, Texas. 2013 by Notary Public in and for the State of Texas Page 3 of 5 OGC app. 6/2006 on Attachment 1 University of North Texas — Service Agreement URF&WEB" UN TER f"O UNT Date: September 28, 2013 Customer: Cite of Denton Human Resources Department 601 E. Hickon -, Suite A Denton, TX 76205 Program Title: Leadership Excellence and Enhancement Workshop WORK TO BE COMPLETED The Murphy Center for Entrepreneurship (henceforth called the " Murphy Center") at the University of North Texas will deliver through its associates, a professional development program for the employees of the Cite of Denton on their premises located at 601 E. Hickon Denton TX 76205. The program consists of twenty -two modules. "Leadership Excellence" will be the central themes of these modules. IRa@ Rmaamr _74 1maCV_1aI DIM a101a:Mr_1a1011am The agreement begins with City of Denton's acceptance of this proposal and ends with the deliven- of all the modules by the Enterprise Center. The Murphy- Center and Cite of Denton agree to begin the program on Januan_- 22, 2014 with completion by March 1, 2015. These dates may be altered by mutual agreement of the parties. The Cite of Denton is responsible for providing appropriate facilities, adequate audio - visual, computer equipment, cite employee computer access, projection s -\-stems, etc., for successful deliven- of the program. Participant binders and PowerPoint Masters will be provided by The Murphy Center. The City of Denton is responsible for copying the Masters for inclusion in participant binders. Participants are responsible for their own computers and any other learning support materials they choose to bring to the sessions. Dr. Don Powell, Professor, UNT, will be the Program Coordinator. He will be responsible for managing, and coordinating the professional development. Modules will be delivered by members of the faculty of the Universit-\- of North Texas. Should the Murphy Center supplement the professional development resources, such alterations will be made at no additional charge to the Citv of Denton. This is a fixed price agreement to provide professional development services to a maximum of 12 City of Denton participants. The price includes all services and professional development materials described herein. The price for each training module provided by The Murphy Center is $1,000 USI), administrative overhead for the program (15 %) is $3,300, and contingency (5 %) is $1,100. Hence, total cost of the program to the City of Denton is $26,400.00 (twenty six thousand and four hundred dollars). Payment is due as per inyoice(s), with 30% upfront (Januan- 22, 2014), and four equal quarterly payments for the remaining 70 %, starting in Mai- 1, 2014. Page 4 of 5 OGC app. 6/2006 Page 5 of 5 OGC app. 6 /2006 AGENDA INFORMATION SHEET AGENDA DATE: November 5, 2013 DEPARTMENT: Finance ACM: SUBJECT Bryan Langley aL hi,dM6 aa� l Vu:druffl Consider appointments to the Citizens Bond Advisory Committee for the proposed 2014 Bond Election. BACKGROUND During prior discussions, the City Council has indicated a preference for a fifty (50) member Citizen Bond Advisory Committee (7 appointments for each City Council member and a committee chair). As such, the purpose of this item is to request City Council appointments to the Citizen Bond Advisory Committee. To solicit public interest, staff posted a notice and application on the City of Denton's website concerning the appointment process. Citizens interested in serving on the bond advisory committee were encouraged to notify the City Council or City Secretary's Office. In addition, the notice has been distributed on social media channels as well. The names of all citizens that have responded to this request are provided in the attached Exhibit 1. The City Council will have an additional opportunity to make appointments to the Citizen Advisory Committee on November 19, 2013. The charge of the Bond Advisory Committee and committee appointments are expected to be formally approved by the City Council on November 19, 2013. PRIOR ACTION/REVIEW On October 7, 2013, the City Council discussed the proposed 2014 Bond Program and received presentations from City staff regarding the initial project list. The City Council recommended a fifty (50) member Citizen Bond Advisory Committee with seven appointments by each council member and a committee chair. EXHIBIT 1. Committee Applicant Listing Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance Exhibit 1 APPLICATIONS FOR 2014 CITIZENS BOND COMMITTEE Name: Address: Phone: Email address: District: Sharon Barnhill 3329 Hummingbird Ln 940 - 390 -6303 momster9 @verizon.net 2 Rosanne Ciccia 3620 Big Horn Trail 214 - 766 -1662 rciccia @live.com 4 Tim Crouch 3800 Lariat Rd 940 - 565 -9370 tim @thecrouchgroup.com 3 Karen DeVinney 1820 West Oak St 940 - 380 -0348 drkjdev @aol.com 3 Jean Greenlaw 2600 Sheraton Rd 940 - 383 -4786 j.greenlawl @verizon.net 2 Jamie Harrington 2408 Kariba Ln 817 - 797 -0008 jamie @totallythebomb.com 4 Alex Lieban 2208 Parkside Dr 940 - 597 -8720 alieban @verizon.net 3 Anyah Martinez 708 Smokerise Circle 940 - 595 -4001 anyahmartinez @yahoo.com 4 Batavia Russel 2302 Jacqueline Dr 214 - 289 -5369 bataviarussell @gmail.com 4 Gustav Seligmann 6 Oak Forrest Circle 940 - 395 -0294 gus @unt.edu 4 Janet Shelton 4 Timbergreen Circle 940 - 300 -4119 jwshelton @verizon.net 4 Keith Shelton 621 Grove St 940 - 387 -4715 shelton @unt.edu 1 Dale Tampke 2400 Southridge Dr 740 - 591 -9021 dale.tampke @unt.edu 4 Allison Wing 1529 Angelina Bend Dr 817 - 229 -5491 allisonmortonwing @gmail.com 1 hi,dM6 aa� l Vu:druffl AGENDA INFORMATION SHEET AGENDA DATE: November 5, 2013 DEPARTMENT: Denton Municipal Electric ACM: Howard Martin, 349 -8232 SUBJECT Consider adoption of an ordinance authorizing execution of a franchise agreement with the City of Denton, acting through its electric utility, granting a franchise to maintain, and operate facilities within the City of Corinth for the delivery and sale of electricity; providing for the payment of a fee for the use of the public rights -of -way; providing that such fee shall be in lieu of other charges; setting forth the term of the franchise; and providing an effective date. BACKGROUND The prior City of Corinth Agreement expired May 31, 2012. The City of Corinth's City Council approved a new Agreement on September 19, 2013. The proposed fifteen year Agreement provides that Denton Municipal Electric Utility (DME) will pay the City of Corinth four percent (4 %) of its gross revenue from the sale of electric power and energy at retail within the corporate limits of the City of Corinth as full payment for the right and privilege of using and occupying the public right—of-way. The first payment was due on August 1, 2013 and subsequent payments will be made on or before August 1 of each year thereafter. The attached Agreement will expire May 21, 2028. RECOMMENDATION Staff recommends approval of the Agreement at December 3, 2013 City Council Meeting. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The Public Utility Board reviewed and approved this agreement on November 25, 2013. DATE SCHEDULED FOR COUNCIL APPROVAL The City Charter requires three readings of a franchise ordinance. Therefore the Agreement will be read at the November 5th, November 19th and December -1 City Council meetings. The Council will vote on approval of the Agreement at the December 3, 2013 meeting. FISCAL INFORMATION The annual City of Corinth franchise fee payment will be approximately $8,500. As electric sales within the City of Corinth and /or electric rates change the fee will correspondingly change. EXHIBIT City of Corinth Ordinance No. 13- 09 -19 -21 and Franchise Agreement Between the City of Corinth, Texas and The City of Denton, Texas, Municipal Electric Utility Respectfully submitted: Phil Williams General Manager, Denton Municipal Electric Prepared by: Mary Dickinson Budget Manager EXHIBIT 1 ORDINANCE NO. 2013- AN ORDINANCE AUTHORIZING EXECUTION OF A FRANCHISE AGREEMENT WITH THE CITY OF DENTON, ACTING THROUGH ITS ELECTRIC UTILITY, GRANTING A FRANCHISE TO MAINTAIN, AND OPERATE FACILITIES WITHIN THE CITY OF CORINTH FOR THE DELIVERY AND SALE OF ELECTRICITY; PROVIDING FOR THE PAYMENT OF A FEE FOR THE USE OF THE PUBLIC RIGHTS -OF -WAY; PROVIDING THAT SUCH FEE SHALL BE IN LIEU OF OTHER CHARGES; SETTING FORTH THE TERM OF THE FRANCISE; PROVIDING FOR THE RATIFICATION AND RETROACTIVE APPROVAL OF SAID AGREEMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on the 15th day of July, 1997 the City Council approved a Franchise Agreement by and between the City of Corinth, Texas and the City of Denton, Texas Municipal Electric Utility (the "Prior Agreement'), by Ordinance No. 97 -206; and WHEREAS, the fifteen -year term provided for in the Prior Agreement has now expired; the City of Denton, Texas has since that time also renamed its municipal electric utility, as Denton Municipal Electric; and both the City of Corinth, Texas and the City of Denton, Texas desire to adopt a new Franchise Agreement, and have its approval to be retroactively effective as of July 15, 2012; and WHEREAS, the City of Denton, Texas continues to supply electric services using the public rights -of -way of the City of Corinth, Texas; and the Corinth City Council by its Ordinance No. 13- 09 -19 -21 has approved the new Franchise Agreement on the 21st day of September, 2013, a copy of which ordinance is attached hereto as well; and the Denton City Council accordingly finds that the new Franchise Agreement, should be in all things approved; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1: The recitations contained in the preamble hereto are true and correct and are incorporated herewith as a part of this Ordinance. SECTION 2: The City Manager is hereby authorized to execute the "Franchise Agreement between the City of Corinth, Texas and the City of Denton, Texas Municipal Electric Utility" (the "Agreement'), in substantially the form of the Agreement which is attached hereto as Exhibit "A" and which is incorporated herewith by reference. SECTION 3: This Agreement is retroactively effective and approved as of July 15, 2012, the date of expiration of the previous Franchise Agreement. SECTION 4: The expenditure of funds as provided for in the attached Agreement is hereby authorized. SECTION 5: The remainder of this ordinance shall become effective upon its passage and approval. 1 PASSED AND APPROVED this the day of , 2013. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY IM APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY IM The City of Denton, Texas, acting herein by its duly- constituted City Council, hereby declares the foregoing Ordinance passed on first reading on the 5th day of November, 2013; and passed on second reading on the 19th day of November, 2013; and passed on third reading on the -1 day of December, 2013; and being finally effective as of the -1 day of January, 2014. /s/ /s/ Mark Burroughs, Mayor /s/ /s/ Dalton Gregory, Council Member, Place 2 /s/ /s/ James King, Council Member, Place 6 /s/ Joey Hawkins, Council Member, Place 4 Pete Kamp, Mayor- Pro -Tem Jim Engelbrecht, Council Member, Place 3 Kevin Roden, Council Member, Place 1 2 The above and foregoing ordinance was read, adopted on first reading and passed to second reading by the following votes, this the 5th day of November, 2013, at a regular session of the City Council. Mark Burroughs, Mayor, voting Pete Kamp, Mayor- Pro -Tem, voting Dalton Gregory, Council Member, voting Jim Engelbrecht, Council Member, voting James King, Council Member, voting Kevin Roden, Council Member, voting Joey Hawkins, Council Member, voting The above and foregoing ordinance as read, adopted on second reading and passed to third reading by the following votes, this the 19th day of November, 2013, at a regular session of the City Council. Mark Burroughs, Mayor, voting Pete Kamp, Mayor- Pro -Tem, voting Dalton Gregory, Council Member, voting Jim Engelbrecht, Council Member, voting James King, Council Member, voting Kevin Roden, Council Member, voting Joey Hawkins, Council Member, voting The above and foregoing ordinance was read, adopted on third reading and passed by the following votes, this the -1 day of December, 2013, at a regular session of the City Council. Mark Burroughs, Mayor, voting. Pete Kamp, Mayor- Pro -Tem, voting Dalton Gregory, Council Member, voting Jim Engelbrecht, Council Member, voting James King, Council Member, voting Kevin Roden, Council Member, voting Joey Hawkins, Council Member, voting STATE OF TEXAS § COUNTY OF DENTON § I, Jennifer Walters, City Secretary of the City of Denton, Texas, do hereby certify that the above and foregoing is a true and correct copy of the Franchise Agreement Ordinance between the City of Denton, Texas and the City of Corinth, Texas. The same is now recorded as Ordinance Number 2013- in the Ordinance Records of the City of Denton, Texas. WITNESS MY HAND this the day of , 2013. (SEAL) ACCEPTANCE Jennifer Walters, City Secretary WHEREAS, the City Council of the City of Denton, Texas, did on the -1 day of December, 2013, enact an Ordinance entitled: AN ORDINANCE AUTHORIZING EXECUTION OF A FRANCHISE AGREEMENT WITH THE CITY OF DENTON, ACTING THROUGH ITS ELECTRIC UTILITY, GRANTING A FRANCHISE TO MAINTAIN, AND OPERATE FACILITIES WITHIN THE CITY OF CORINTH FOR THE DELIVERY AND SALE OF ELECTRICITY; PROVIDING FOR THE PAYMENT OF A FEE FOR THE USE OF THE PUBLIC RIGHTS -OF -WAY; PROVIDING THAT SUCH FEE SHALL BE IN LIEU OF OTHER CHARGES; SETTING FORTH THE M TERM OF THE FRANCISE; PROVIDING FOR THE RATIFICATION AND RETROACTIVE APPROVAL OF SAID AGREEMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, said Ordinance was on the -1 day of December, 2013, duly approved and subscribed by the Mayor of said City, and the seal of said City was thereto affixed and attested to by the City Secretary; NOW, THEREFORE, the City of Corinth, Texas, hereby in all respects ACCEPTS, APPROVES AND AGREES TO said Ordinance, and the same shall constitute and be a binding contractual obligation of the City of Corinth, Texas, and of the City of Denton, Texas, without waiver of any other remedy by the City of Corinth, Texas, or the City of Denton, Texas, and the City of Corinth, Texas does hereby file this, its written acceptance, with the City Secretary of the City of Denton, Texas, in her office. DATED this the day of 1201 ATTEST: 0 THE CITY OF CORINTH, TEXAS ACCEPTANCE FILED in the Office of the City Secretary of the City of Denton, Texas, this the day of , 201 Jennifer Walters, City Secretary k, ORDINANCE NO. 13- 09 -19 -21 AN ORDINANCE AUTHORIZING EXECUTION OF A FRANCHISE AGREEMENT WITH THE CITY OF DENTON, ACTING THROUGH ITS ELECTRIC UTILITY, GRANTING A FRANCHISE TO MAINTAIN, AND OPERATE FACILITIES WITHIN THE CITY OF CORINTH FOR THE DELIVERY AND SALE OF ELECTRICITY; PROVIDING FOR THE PAYMENT OF A FEE FOR THE USE OF THE PUBLIC RIGHTS -OF- WAY; PROVIDING THAT SUCH FEE SHALL BE IN LIEU OF OTHER CHARGES; SETTING FORTH THE TERM OF THE FRANCHISE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas, through its Electric Utility, supplies electric services through the public rights -of -way of the City of Corinth to residents of Corinth; and WHEREAS, the franchise Agreement between the City of Denton and the City of Corinth having expired and both parties desiring to adopt a new franchise; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the Mayor is hereby authorized to execute, on behalf of the City, a Franchise Agreement with the City of Denton, Texas Municipal Electric Utility (the "Agreement ") granting a franchise and providing for the payment of a franchise fee in connection with the furnishing of electric service by the City of Denton Municipal Electric Utility to customers in the City of Corinth, Texas. A copy of the Agreement is attached hereto and incorporated by reference herein. SECTION II. That this ordinance and the Agreement shall become effective as provided by Article XI of the City Charter of the City of Corinth, and Denton's acceptance shall be evidenced by its approval and execution of the Agreement PASSED AND APPROVED this the day of 013. ,\y of- c oR/ V : -MVL RUGGIERE, MA ATTEST: TEXAS KIM PENCE, CITY SECRETARY APPROVED AS TO LEGAL FORM: le�m _7511FAINMIUM.Al Page 2 of 2 FRANCHISE AGREEMENT BETWEEN THE CITY OF CORINTH, TEXAS AND THE CITY OF DENTON, TEXAS MUNICIPAL ELECTRIC UTILITY THIS AGREEMENT, made and entered into by and between the City of Corinth, Texas, hereinafter called "CITY ", 3300 Corinth Parkway, Corinth, Texas 76208, and the City of Denton, Texas, as owner of Denton Municipal Electric Utility, hereinafter called "DMEU ", 215 East McKinney Street, Denton, Texas 76201. WITNESSETH WHEREAS, DMEU is operating an electric distribution system, including poles, wires, transformers, meters, and other appurtenances within the City of Corinth, Texas; and WHEREAS, the Franchise Agreement between the CITY and the DMEU has expired, and it is the desire of the CITY and DMEU to enter into Franchise Agreement to provide for the use and occupancy of the present and future streets, alleys, highways, public utility easements, parks and other public property within the CITY (hereinafter the "Public Right -of- Way "); NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, and the mutual benefits to be derived therefrom, the parties hereto agree as follows: 1. That DMEU, its successors or assigns, shall pay annually four percent (4 %) of its gross revenues from the sale of electric power and energy at retail within the corporate limits of the CITY as full payment for the right and privilege of using and occupying the Public Right -of -Way of the CITY of Corinth, Texas.. The first payment shall be due on August 1, 2013 and subsequent payments shall be made on or before August 1 of each year thereafter. Each payment shall be based on the gross receipts from the retail sale of electricity within the corporate limits of CITY during the twelve (12) month period ending May 30 next preceding the payment, and shall be payment for the aforesaid right and privilege during the twelve (12) month period beginning with August 1 of the year in which the payment is made. The first payment is based on the revenue collected by DMEU during the twelve month period beginning June 1, 2012 and ending May 31, 2013. This payment, and this Agreement, covers the street rental agreement period of August 1, 2012 through July 31, 2013, and provides for subsequent payments to be rendered by DMEU as previously stated. DMEU shall provide a complete report in support of its calculations with respect to each such payment and, upon the CITY's written request, shall, within a reasonable time, provide and allow inspection of all necessary books and records of DMEU. The CITY and DMEU each agree that this Agreement shall operate in such a manner as to provide for the continuous payment of franchise payments to the CITY, despite the fact that the previous Franchise Agreement, had inadvertently expired. 2. CITY agrees to accept such payment as full compensation to be paid by DMEU for the privilege of using and occupying the streets, alleys, highways, easements, parks, and other public places within the present and future territorial limits of CITY, while this Agreement is in effect, in lieu of and shall be accepted as payment for all of DMEU's obligations to pay occupation taxes, assessments, municipal charges, fees, rentals, pole rentals, wire taxes, license and inspection fees or charges, administrative and processing fees, utility easement taxes, franchise taxes, street taxes, street or alley rentals and all other charges, levies, fees, rentals and taxes of every kind, except ad valorem taxes, sales taxes, and special taxes and assessments for public improvements. 3. That DMEU shall, to the extent permitted by law, indemnify and save whole and harmless the CITY and all of its officers, agents, and employees from any and all claims for injury or damage to persons or property occasioned by, or arising out of the construction, maintenance, operation, or repair of the generation, transmission, or distribution system, or by the conduct of business in the CITY. Provided, however, nothing herein shall be construed to indemnify the CITY against the CITY's own negligence or fault. It is understood that it is not the intention of the parties hereto to create liability for the benefit of third parties, but that this Agreement shall be solely for the benefit of the parties hereto. 4. That all poles to be placed shall be of sound material and reasonably straight, and shall be so set that they will interfere as little as practicable with the ordinary travel on alleys, streets or sidewalks or with the flow of water to any gutter or drain. The location and route of all poles, stubs, guys, anchors, conduits and cables to be placed and constructed by the DMEU in the construction and maintenance of its electric utility distribution system in the CITY, shall comply with all pertinent requirements of the National Electrical Safety Code and all rules and guidelines that have been properly promulgated by the CITY which are not inconsistent with this Agreement, and as may be authorized by State or Federal law. 5. That in any future construction, in new developments, lateral and service distribution lines and wires shall be placed or constructed underground in all areas designated in advance of construction by the CITY for all electric utilities in the plat approval process or by zoning ordinances. In such designated areas, distribution feeder lines may be overhead and transformers and similar equipment may be pad - mounted. The City Council of Corinth or the City Manager thereof, acting on their behalf, may upon petition by DMEU, waive the requirement of underground installation if good cause is shown for such exemption. As used in this section: "Feeder lines" shall mean those electric lines that emanate from substations to distribute power throughout an area. "Lateral lines" shall mean those electric lines that emanate from a feeder line and are used to distribute power to smaller areas of electric consumers. These electric lines are normally connected to a feeder line through a sectionalizing device such as a fuse or disconnect switch. "Service lines" shall mean those electric lines which, through a transformer, connect a lateral line to a customer's service entrance. 6. DMEU shall provide reasonable notice to the City of planned work within the Public Right -of- Way and shall, except in cases of emergency conditions or work incidental in nature, obtain a permit if required by the City's ordinances before commencing work. DMEU shall notify the City as soon as practicable regarding work performed under emergency conditions. 7. The City reserves the right to lay and permit to be laid, power, sewer, gas, water, and other pipe lines or cables and conduits, and to do and permit to be done, any underground and overhead work that may be deemed necessary or proper by the City in, across, along, over and under any Public Right -of- Way occupied by DMEU, and to change any curb or sidewalk or the grade of any street. In permitting this work to be done, the City shall not be liable to the DMEU for any resulting damage to DMEU's facilities. City shall notify DMEU in a reasonable time of any projects that will affect DMEU's facilities located in the Public Right -of -Way. When required to by City to remove or relocate its facilities located within Public Right -of -Way that are in conflict with the City project, DMEU shall do so, at its expense, as soon as practically possible with respect to the scope of the project, unless such work is for the primary purpose of beautification or to accommodate a private developer. Facilities are deemed to be in conflict to the extent that the proposed City facilities are determined by DMEU to be inconsistent with electric distribution industry standard safe operating practices for existing facilities. Franchise Agreement Page 2 of 4 8. DMEU shall submit engineering plans of those projects involving significant construction in a Public Right -of -Way to the City for review prior to construction and promptly after completion of construction shall provide to the City accurate and complete "as- built" plans showing the nature and specific location of all work done. 9. The location of all facilities of DMEU shall be subject to approval by the City Manager or the Manager's designated representative prior to construction; provided however, said approval shall not be unreasonably withheld. In the event of a conflict between the location of the facilities of DMEU and the location of the facilities of City or other utility franchisees within the Public Right -of -Way that cannot be resolved, the City Manager shall resolve the conflict and determine the location of the respective facilities. DMEU shall not interfere with power, telephone, cable or water facilities, sanitary or storm sewer facilities or other municipal or public use of the Public Right -of -Way. DMEU has the right to request City Council review of any actions concerning DMEU's use of the Public Rights -of -Way. 10. DMEU shall be responsible for promptly repairing and restoring, to as good condition as before the commencement of the DMEU's work, all Public Right -of -Way within a reasonable time after the completion of the work Such repairs shall be maintained because of defective workmanship by DMEU for two) years from the date of repairs and restoration. No such street, alley, highway, or public place shall be encumbered for a longer period than shall be reasonably necessary to execute work. It is understood that it is not the intention of the parties hereto to create any liability for the benefit of third parties, but that this Agreement shall be solely for the benefit of the parties hereto. 11. Nothing herein shall enlarge, diminish, amend, affect or otherwise prejudice any certificate of convenience and necessity granted to either CITY or DMEU. 12. DMEU's property and operations within the corporate limits of CITY shall be subject to such reasonable rules and regulations of CITY as may be authorized by applicable law for the protection of the general public. DMEU shall comply with all rules and regulations of CITY generally in effect to the extent that same are valid and authorized by applicable state or federal law. Charges for installation or maintenance of street lighting, including extension costs charged to developers, shall be in accordance with DMEU's tariffs. 13. This Agreement supersedes and cancels any and all prior agreements between CITY and DMEU relating to the matters herein set forth, and is the entire agreement of the parties. 14. This Agreement shall terminate on May 31, 2028. 15. This Agreement is executed in duplicate originals. Any notices required or desired to be given from one party to the other party to this ordinance shall be in writing and shall be sent to the addresses set forth in the preamble of this Agreement. IN WITNESS WHEREOF, the City of Corinth, Texas has caused this Agreement to be executed by its duly authorized Mayor; and the City of Denton, Texas has caused this Agreement to be executed by its duly authorized City Manager on this the day of 92013. Franchise Agreement Page 3 of 4 "DMEU" CITY OF DENTON, TEXAS A Texas Municipal Corporation By: GEORGE C. CAMPBELL, CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY "CITY" pF CO'Y' "QTY OF CORINTH, TEXAS fA0LRUG(jIERE,TSdYOR 7EST' IMP NC , CITV SECRETARY Franchise Agreement Page 4 of 4 rl CITY OF CORINTH COUNCIL AGENDA ITEM AGENDA TYPE ❑ Regular ❑ Special ® Consent Reviewed by Finance Yes Not Applicable ❑ Workshop ❑ Executive ❑ Public Hearing Reviewed by Legal Yes Not Applicable Council Meeting Date: September 19, 2013 Department: Finance Dept Head: Lee Ann Bunselmeyer Dept Head Signature: Agenda Item Coordinator/Phone/Ext. #: 940 - 498 -3221 City Manager Reviewed/Approval ,-Initials Date ACTION REQUESTED: ❑ORDINANCE # ❑ RESOLUTION # ❑ APPROVAL ❑ CHANGE ORDER ® AGREEMENT ❑ APPROVAL OF BID ® AWARD OF CONTRACT ❑ CONSENSUS ❑ OTHER AGENDA CAPTION Consider approval of ordinance authorizing execution of a franchise agreement with the City of Denton, acting through its electric utility, granting a franchise to maintain and operate facilities within the City of Corinth for the delivery and sale of electricity; providing for the payment of a fee for the use of the public rights -of -way; providing that such fee shall be in lieu of other charges; setting forth the term of the franchise; and providing an effective date. FINANCIAL SUMMARY ❑N /A ❑GRANT FUNDS ❑OPERATING EXPENSE ❑REVENUE ❑CI P ®BUDGETED ❑NON- BUDGETED FISCAL YEAR: PRIOR YEAR CURRENT YEAR FUTURE YEARS TOTALS Proposed Revenue Amount $8,638 $8,500 $8,500 FUND(S) TO BE USED: General ®$ $8,500 Utility ❑ $ Special ❑ $ BACKGROUND /SUMMARY OF ITEM The proposed fifteen year agreement provides that Denton Municipal Electric Utility (DMEU) will pay the City of Corinth four percent (4 %) of its gross revenues from the sale of electric power and energy at retail within the corporate limits of the City as full payment for the right and privilege of using and occupying the Public Right -of Way. The first payment was due on August 1, 2013 and subsequent payments will be made on or before August 1 of each year thereafter. The franchise agreement will expire May 31, 2028. The following Notice of Franchise was published in the Denton Record Chronicle on August 19, 2013. The City of Corinth intends to adopt an ordinance granting a franchise to the City of Denton, Texas to use the City streets and rights -of -way for the purpose of maintaining and operating equipment and power poles to deliver and supply electricity to customers within the City. STAFF OPTIONS & RECOMMENDATION Staff recommends approval of the Franchise Agreement with the City of Denton. List of Supporting Documents/Exhibits Attached: Prior Action/Review by Council, Boards, Commissions or Other Agencies: 1- Franchise agreement between the City of Corinth and the City of Denton. Pudblhc V ieai -hr AGENDA INFORMATION SHEET AGENDA DATE: November 5, 2013 DEPARTMENT: Planning and Development ACM: John Cabrales, Jr. Y� SUBJECT Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for a zoning change from a Neighborhood Residential 2 (NR -2) zoning district and land use designation to a Neighborhood Residential 3 (NR -3) zoning district and use classification on approximately 75.3 acres of land located on the south of Ryan Road, north of the Kansas City Southern Railroad, approximately 950 feet east of FM1830 and approximately 800 feet west of Forrestridge Road, in the City of Denton, Denton County, Texas; and providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability clause and an effective date (Z13- 0006). The Planning and Zoning Commission recommends approval (6 -1). BACKGROUND The applicant is requesting the rezoning of the subject site from a Neighborhood Residential 2 (NR -2) to a Neighborhood Residential 3 (NR -3) zoning district (Exhibits 2, 3 and 4). Per the Denton Plan and future land use map, the area is designated Neighborhood Centers; therefore, no Comprehensive Plan amendment is required. If the rezoning request is approved, the applicant has indicated a desire to develop the area into a single - family home subdivision (Exhibits 8 and 9). The proposed NR -3 zoning would permit up to 263 single family home lots. The uses permitted in NR -2 and NR -3 are similar, with NR -3 being more restrictive of commercial uses. There are no concerns about this zoning change allowing incompatible commercial uses if the current applicant does not develop the property as planned. The property is predominantly undeveloped rangeland; however, it is not being used for agricultural purposes. Prior to the city -wide rezoning in 2002, the property was zoned Agricultural District (A). The property is not currently platted. Prior to development and issuance of any building permits, preliminary and final platting will be required. There are several site constraints that reduce the developable area. The western portion of the property contains a gas well and frac -water pond permitted in 2011 (Exhibit 2). Any development on the site will need to meet the setback requirements from the existing gas wells of 250 feet per Denton Development Code. In addition, the site contains two separate areas of floodplain, one at the far west edge of the site and one extending from the southern border up to the middle of the site. There is also an environmentally sensitive stream buffer within both floodplain areas (Exhibit 6). The developable acreage is reduced substantially by these environmental constraints. Staff sent 17 certified notices of the public hearing to property owners within two hundred (200) feet of the subject property and 12 courtesy notices to residents /property owners within 500 feet of the property. As of this writing, staff has received three responses in favor and two responses in opposition to the request from property owners within 200 feet of the site (Exhibit 7). Agenda Information Sheet November 5, 2013 Page 2 PRIOR ACTION September 25, 2013, Planning and Zoning Commission OPTIONS 1. Approve 2. Approve subject to conditions. 3. Deny. 4. Postpone consideration. 5. Table item. RECOMMENDATION The Planning and Zoning Commission recommended APPROVAL of Z13 -0006 (6 -1). The Development Review Committee (DRC) recommends APPROVAL of Z13 -0006. EXHIBITS 1. Staff Report 2. Site Location /Aerial Map 3. Existing Zoning Map 4. Proposed Zoning Map 5. Future Land Use Map 6. ESA Map 7. Notification Map and Responses 8. Applicant's Project Narrative 9. Applicant's Zoning Exhibit 10. Site Photos 11. September 25, 2013, Planning and Zoning Commission Meeting Minutes 12. Ordinance Respectfully submitted: r,r Brian Locldey, AICP, CPM Planning and Development, Director Prepared by: AZZ4�z- Michele Berry Assistant Planner Exhibit 1 CITY OF DENTON DEVELOPMENT REVIEW COMMITTEE STAFF REPORT P &Z Date: September 25, 2013 TYPE: Rezoning CC Date: November 5, 2013 PROJECT #: Z13 -0006 Project Number: Z13 -0006, Kelsoe Tract Request: Rezoning of approximately 75.3 acres from a Neighborhood Residential 2 (NR -2) zoning district to a Neighborhood Residential 3 (NR -3) zoning district. Applicant: Bob Shelton Enterprises 2308 Ranch House Dr. Denton, TX 76210 Owner: J.M. and Patricia P. Kelsoe 4371 Country Club road Denton, TX 76210 Location: The property is generally located on the south of Ryan Road, north of the Kansas City Southern Railroad, approximately 950 feet east of Country Club Road (FM1830) and approximately 800 feet west of Forrestridge Road. Size: Existing Zoning Designation: Proposed Zoning Designation: 75.3 acres +/- Neighborhood Residential 2 (NR -2) Neighborhood Residential 3 (NR -3) Existing Future Land Use: Neighborhood Centers Proposed Future Land Use: Neighborhood Centers Case Planner: Michele Berry DRC Recommendation: The Planning and Zoning Commission recommends APPROVAL of Z13 -0006 (6 -1). The Development Review Committee (DRC) recommends APPROVAL of Z13 -0006. Development Code/ Zoning Analysis The applicant is proposing to rezone approximately 75.3 acres from NR -2 to NR -3, which does not require a Comprehensive Plan amendment. The applicant has indicated a desire to develop the area into a 260 lot single - family subdivision. In terms of use, both the NR -2 and NR -3 zoning districts are primarily residential in nature. The NR -2 district allows additional uses considered compatible with more rural development such as kennels and veterinary clinics with a Specific Use Permit (SUP). There are some differences in housing types allowed; NR -2 allows for manufactured housing with an SUP while NR -3 allows for attached single - family homes with an SUP. Notably, gas wells require an SUP in the NR -3 district but are allowed in the existing NR -2 district with Limitation 27. Limitation 27 states any gas well "Must comply with the provisions of Subchapter 22, Gas Well Drilling and Production." Per the regulations on gas well development a new home may not locate closer than 250 feet to an existing gas well. If this zoning change takes place, then the existing gas well on the property will be considered legally non - conforming as it never received an SUP and any subsequent well development on the site will be required to obtain an SUP. The tables below list the permitted uses and general regulations of the existing zoning district of NR -2 and the proposed zoning district of NR -3. The highlighted portions show differences between the two zoning districts: P= Permitted, N =not permitted, SUP= Specific Use Permit Required, L(X) = Limited as defined in Section 35.5.8 and the limitations are listed below: Residential Land Use Categories Agriculture � (Existing) P ... P Livestock L(7) L(7) Single Family Dwellings P P Accessory Dwelling Units SUP L(1) SUP L(1) Attached Single Family Dwellings N SUP Dwellings Above Businesses N N Live/Work Units N N Duplexes N N Community Homes For the Disabled P P Group Homes N N Multi - Family Dwellings N N Fraternity or Sorority House N N Dormitory N N Manufactured Housing Developments SUP N Commercial Land Use Categories Home Occupation P ... P Sale of Products Grown on Site N N Hotels N N Motels N N Bed and Breakfast N N Retail Sales and Service N N Movie Theaters N N Restaurant or Private Club N N Drive - through Facility N N Professional Services and Offices N N Quick Vehicle Servicing N N Vehicle Repair N N Auto and RV Sales N N Laundry Facilities N N Equestrian Facilities SUP N Outdoor Recreation P P Indoor Recreation N N Major Event Entertainment N N Commercial Parking Lots N N Administrative or Research Facilities N N Broadcasting of Production Studio N N Sexually Oriented Business N N Temporary Uses L(38) L(38) Industrial Land Use Categories Printing / Publishing N ... N Bakeries N N Manufacture of Non - odoriferous Foods N N Feed Lots N N Food Processing N N Light Manufacturing N N Heavy Manufacturing N N Wholesale Sales N N Wholesale Nurseries N N Distribution Center/Warehouse, General N N Warehouse, Retail N N Self- service Storage N N Construction Materials Sales N N Junk Yards and Auto Wrecking N N Wrecker Services and Impound Lots N N Kennels L(37) N Veterinary Clinics L(14) N Sanitary Landfills, Commercial Incinerators, Transfer Stations N N Gas Wells L(27) SUP L(27) Limitations L(1) = Accessory dwelling units are permitted, subject to the following additional criteria: 1. The proposal must conform with the overall maximum lot coverage and setback requirements of the underlying zone. 2. The maximum number of accessory dwelling units shall not exceed 1 per lot. 3. The maximum gross habitable floor area (GHFA) of the accessory residential stricture shall not exceed 50% of the GHFA of the primary residence on the lot, and shall not exceed 1000 sq. ft. GHFA unless the lot meets the requirements of L(1).5. 4. One additional parking space shall be provided that conforms to the off - street parking provisions of this Chapter. 5. The maximum gross habitable floor area (GHFA) of the accessory residential stricture shall not exceed 50% of the GHFA of the primary residence on the lot, where the lot size Institutional Land Use Categories Basic Utilities L(25) ... L(25) Community Service N N Parks and Open Space P P Churches P P Semi - public, Halls, Clubs, and Lodges SUP SUP Business / Trade School N N Adult or Child Day Care SUP SUP Kindergarten, Elementary School SUP SUP Middle School N N High School N N Colleges N N Conference /Convention Center N N Hospital N N Elderly Housing N N Medical Centers N N Cemeteries N N Mortuaries N N WECS (Free- standing Monopole Support Structure) SUP SUP WECS (Building- mounted) SUP SUP Limitations L(1) = Accessory dwelling units are permitted, subject to the following additional criteria: 1. The proposal must conform with the overall maximum lot coverage and setback requirements of the underlying zone. 2. The maximum number of accessory dwelling units shall not exceed 1 per lot. 3. The maximum gross habitable floor area (GHFA) of the accessory residential stricture shall not exceed 50% of the GHFA of the primary residence on the lot, and shall not exceed 1000 sq. ft. GHFA unless the lot meets the requirements of L(1).5. 4. One additional parking space shall be provided that conforms to the off - street parking provisions of this Chapter. 5. The maximum gross habitable floor area (GHFA) of the accessory residential stricture shall not exceed 50% of the GHFA of the primary residence on the lot, where the lot size is equal to or greater than ten acres in size. An SUP is not required for such an accessory residential stricture where the lot size is equal to or greater than ten acres. L(7) = Limited to two (2) animals on parcels one (1) to three (3) acres in size. Additional animals may be added at a rate of one per each acre over three. L(14) = Uses are limited to no more than ten thousand (10,000) square feet of gross floor area. L(25) = If proposed use is within 200 feet of a residential zone, approval is subject to a Specific Use Permit. L(27) = Must comply with the provisions of Subchapter 19, Gas Well Drilling and Production. L(37) = Five (5) -acre minimum land area required and no more than twenty -five (25) kennels per acre allowed, including indoor and outdoor runs. A natural buffer strip is required adjacent to any residential use. L(38) = Must meet the requirements of Section 3 5.12.9. In terms of development standards, the two districts are different. The NR -3 district allows for increased density, smaller setbacks, and increased lot coverage as shown in the chart below. Per the current NR -2 zoning up to 150 homes may be built on the proposed. If approved, the zoning amendment would allow for 113 additional single family homes to be constricted, totaling 263 homes. These homes would have smaller lot sizes than if developed under the current zoning. General Regulations � (Existing) ... For subdivision greater than 2 acres Maximum density, dwelling units per acre 2 3.5 Minimum side yard for non - attached buildings 10 feet 6 feet For all buildings Maximum lot coverage 30% 50% Minimum landscaped area 70% 50% Maximum building height 40 feet 40 feet Maximum WECS height 55 feet 55 feet The Denton Development Code lists the criteria for approval of a zoning amendment in Subchapter 35.3.4.13. The applicable criteria and analysis are provided below. Staff reviews applications and makes a recommendation based on these criteria. 1. The proposed rezoning conforms to the Future Land Use element of The Denton Plan. The Future Land Use element of the Denton Plan is Neighborhood Centers. The purpose of the Neighborhood Centers Land Use is to preserve and protect existing neighborhoods and to ensure that any new development is compatible with existing land uses, patterns, and design standards. All Neighborhood Residential and Neighborhood Mixed Use zoning districts can be compatible within this future land use category. There are several goals identified in the Future Land Use Plan for Neighborhood Centers. Goals relevant to this project are listed below: Land Use Element Goals Does this project Explanation address the goal? Balance and variety among Yes The proposed rezoning would various styles, types, and provide smaller lot residential prices of housing. tracks to balance larger lot residential tracks. Average city -wide single No The proposed rezoning would family density of 3 units per increase density on this track to gross acre. greater than 3 units per acre; however, it is a small portion of the City. Encourage new development Yes Though existing residential to be adjacent to existing development is not directly development adjacent, it is in close proximity. Higher densities where Yes Infi°astructure is available as infrastructure can support and discussed below and the site is near jobs, schools, shopping, adjacent to a school. and cultural centers. Increase the percent of owner Yes New single family homes are occupied dwellings to 60 generally owner occupied percent. Per the Denton Plan Future Land Use Element, there are four criteria to determine appropriate site - specific residential densities; • Design quality - The rationale for this requirement is with higher density additional attention to design is a necessity to preserve quality of life and property values. If the property is rezoned requirements in the Denton Development Code will influence the design of the subdivision. • Adequacy of public provisions - The addition of up to 113 single family homes will put added pressure on utilities. However, as addressed below there are adequate sewer, water, drainage, and street facilities. • Amenities provision — Similar to design quality, additional attention is a necessity to preserve quality of life and property values with increased density. Amenities required by the Denton Development would be provided. For example, park fees would be collected at time of platting, as explained below, to augment park services. • Compatibility with existing neighborhoods — South of the railroad and to the East of the subject site are neighborhoods and tracts zoned Neighborhood Residential — 4 (NR -4), however, north along Ryan Road residential lots are generally one to three acres in size. The overall density proposed is between the existing NR -2 development to the north and NR -4 zoning and developments to the south and east and may provide a transition in gross density between these districts. Based on meeting a majority of applicable goals in the Denton Plan and addressing the four criteria to determine appropriate site specific density, the proposed rezoning conforms to the Land Use Element of the Denton Plan. 2. The proposed rezoning facilitates the adequate provisions of transportation, water, sewers, schools, parks, other public requirements and public convenience. It is anticipated that the existing public utilities, other public requirements and public convenience are adequate to serve the proposed residential development, with required improvements. Staff from building inspection, wastewater and water engineering, development review engineering, fire, planning, parks, and real estate departments /divisions have reviewed the application and concluded adequate services are available, details are presented in the findings -of -fact. Required improvements and fees will be further evaluated at the time of platting. There are adequate school resources to serve the potential future population should the rezoning be approved. Using standard industry multipliers, this development can expect to add 98 elementary school students, 42 middle school students and 27 high school students to the Denton Independent School District (DISD) system. While many DISD schools are near capacity, the adjacent Wayne Stuart Ryan Elementary School currently has 579 students and was built to handle 700 students. In addition, the district is constricting a new elementary school near Lantana, and the district is having bond election next year for additional school development. In speaking with DISD representatives, there are no concerns about school capacity related to the proposed rezoning. Findings of Fact 1. The request is for a zoning change on approximately 73.3 acres of land from Neighborhood Residential 2 to Neighborhood Residential 3. This would increase the potential number of single family lots from 130 to 263. This potentially increases the total number of homes by 113. 2. There are currently 7,42 7.828 acres in the City zoned NR-2 and 3,810.764 acres zoned NR -3. This change would reduce NR -2 zoning to 7,352.528 acres and increase NR -3 zoning to 3,886 06 l acres. This represents a one percent reduction in NR -2 zoned land and a 2 percent increase in NR -3 zoned land 3. The current future IaYld use catego� y oYl the p�'operty is Neighborhood C'enter's. No change is required to the Future Land Use Plan. 4. Prior to the 2002 city -wide rezoning, the Site was zoned Agricultural District (A). 3. Per the Denton Plan Future Land Use Element, balance among various styles, types, and prices of housing is a goal and variety of housing styles, types and prices are encouraged 6 Per the Denton Plan Future Land Use Element, the average city -wide single family density should be 3 units per gross acre. 7. A Residential Land Use Location Strategy in the Denton Plan is to "encourage all new development to be contiguous to existing development. " 8. The purpose cf the Neighborhood Residential land use is to preserve and protect existing neighborhoods and to ensure that any new development is compatible with existing land uses, patterns, and design standards. 9. Per the Denton Plan Future Land Use element, the four criteria to deteruzrYle appropriate Site - Specific residential densities are; • Design quality, - The rational is with additional density more attention to design is required to preserve quality cf life and property vahies. If the property is rezoned requirements in the Denton Development Code will influence the design of the subdivision. • Adequacy of public provisions, - The addition of 113 single family homes will put added pressure on utilities. However, there are adequate sewer, water, and street facility. • Amenities provision, and Similar to design quality, if then amenities required by the Denton Development would be provided For example, park fees would be collected at time of platting as explained below. • Compatibility ij)ith existing-neighborhoods South of the railroad and to the East are neighborhoods of similar density, however, north along Ryan Road residential lots are larger. The density proposed is between the existing NR -2 to the north and Neighborhood Residential 4 to the south and east. 10. The site is not platted Preliminary and final platting is required prior to ally additions improvements to the property and prior to the issuance q/ 'building permits. 11. According to the Mobility RoatAmy Plan, Creekdale Road is planned to be a Collector Street that runs through this site and will be built with this development. 12. Land uses within '4 Mule radius of the Site include an elementary school at the north east corner of the site, large lot residential to the north of the site across Ryan Road, NR -2 zoned and developed residential uses to the northeast, a gas well to the west, agricultural to the east, and a storage or industrial type site to the south. 13. Adjacent zoning districts include NR -2 to the north, Extraterritorial Jiurisdiction (ETJ) to the east and south, NR -2 to the direct west, and Community Mixed Use General and Neighborhood Residential 4 (NR-4) to the southwest - on the opposite side of the railroad 14. The site has two Environmentally Sensitive Area (ESA) designations. An ESA Stream Buffer runs generally north to south through the middle of the site on the southern portion. Generally covering the same area as the stream buffer and extending northward is an ESA floodplain. 15. Development of the ESA designated areas is subject to Sections 35.17.8 and 35.17.9 of DD C. 16 With the permitted gross density under the proposed zoning district and area reserved for jloodplain and ESA individual lot size will be reduced to approximately 0. 18 acres or less. 17. Per the fire code remote access requirements, the existing frontage on Ryan Road will not provide sufficient distance between access points. The required access point will be required at the time of'platting and is required regardless if the property develops as NR- 2 or NR -3. 18. Using standard industiy multipliers, this development can expect to add 98 elementary school students, 42 middle school students and 27 high school students to the DISD System. The adjacent Wayne Stuart Ryan Elementary School currently has 579 students and was built to handle 700 students. DISD does not have concerns about this development burdening school capacity. 19. The Kansas City Southern Rail Line runs adjacent to the site's eastern property line. 20. Adequate roadway capacity exists on Ryan Road for the increased number of homes and trips per day generated by this zoning change. A Traf frc Impact Analysis 11)ill be required at the trine of platting to ensure no additional improvements are required 21. Adequate seller Capacity is available via extending an offsite gravity main to the existing ?7 -inch gravity main along Hickoty (7reek. 2. Water is available ft'om the existing 12-inch main along Ryan Road Hoirever, it is doubtf d that a single feed could adequately provide domestic and fire crater protection to the proposed development. An offsite water main extension, to at least one of the f)lloiring lines is required finless the applicant Can prove siifficient crater Capacity using City approved models: a. 8 -inch main along Blackberry Way; b. 8 -inch main along Creekdale Drive; C. 12-inch main along ,Sanders Road Surrounding Zoning Designations and Current Land Use Activity: Northwest: Neighborhood Residential 2 (Agricultural and Single - Family Uses) North: Neighborhood Residential 2 (Agricultural & Single - Family Uses) Northeast: Neighborhood Residential 2 (Single - Family Uses & Institutional) West: i East: Neighborhood Residential 2. Communit -v Mixed use General - - Neighborhood Residential 4 & Extra (Agricultural and Single - Family Territorial Jurisdiction (ETJ) Uses) (Acreage with or without Agricultural Use & Single Family Uses) Southwest: South: Southeast: Neighborhood Residential 4 Neighborhood Residential 2 & Extra (Farm & Ranch Improvements & Territorial Jurisdiction Extra Territorial Jurisdiction (ETJ) Single Family Uses) (Acreage with or without (Farm & Ranch Improvements) Agricultural Use &Industrial) Source: City off)entor Geographical brformation System acrd site visit by Ow staff' Existing Conditions: A. The site is currently not platted and is developed with a gas well and frac -water pond. B. Adjacent zoning districts include NR -2 to the north and west, Extraterritorial Jurisdiction (ETJ) to the east, and NR -2 to the south. C. Land uses within 1/4 mile radius of the site include an elementary school at the north east corner of the site, large lot residential uses to the north of the site across Ryan Road and west, 1/3 acre residential lots to the northeast and east, smaller -lot single family lots to the east, a gas well to the west, agricultural to the east, south, and west, and a storage or industrial type site to the south. D. The Kansas City Southern Rail Line runs adjacent to the site's southwest property line. Comprehensive Plan: The site is currently located within a Neighborhood Centers Future Land Use designation. Per the Denton Plan Land Use Element ideals for new neighborhood centers are described below: Neighborhood Centers are within the undeveloped urban and urbanized areas of the city, new neighborhoods may develop in traditional patterns. Mixed -use and mixed housing types will be allowed to develop in a pattern of "neighborhood centers ". These are oriented inwardly, focusing on the center of the neighborhood. These neighborhoods exemplify the interrelationship between quality of development, density, services and provision for adequate facilities. These developments should locate the center of the neighborhood within a five to ten minute walking distance from the edge of the neighborhood. The center contains uses necessary to support the surrounding neighborhood. These support services could include service oriented retail such as a small grocery, hair salon, dry cleaner or small professional offices. Residential uses may occur at higher densities with townhomes or residential flats above service- oriented uses. Open space occurs in neighborhood centers with park uses including central neighborhood greens and floodplain preservation. Civic uses such as fire stations, schools, libraries, and mass transportation nodes are encouraged to be essential elements of neighborhood centers as landmarks that are a focus to the neighborhood. Limited multistory development in the neighborhood may be developed to incorporate shops on the ground floor and offices or residences on the upper floors. Zoning Allocation: This rezoning request moderately affects the zoning allocation of the NR -2 and NR -3 zoning districts throughout the City as shown in the table below. The change in acreage roughly represents a one percent reduction in NR -2 zoned land and a two percent increase in NR -3 zoned land. Zoning Allocation Zoning District Current Allocation (acres) Proposed Allocation (acres) NR -2 7,427.828 7,352,528 NR -3 3,810.764 3,886.064 Nearest Fire and EMS Station Name of Station Approximate Distance From Subject Property Fire/EMS Fire Station 46 2.7 miles Source: 00) ofDerztoz GIS Anticipated Water, Wastewater, and Stormwater Demand: A. Estimated Demand: Subject Property Estimated Impact Analysis 75.3 ± acres Proposed Demand Adequate to Serve es or No Permitted Density 3.5 units /acre Yes Potable Water Consumption (GPM) 394 (peak domestic) Yes Wastewater Generation (GPM) 293 (peak) Yes Storm water Demand (CFS) 1 353 cfs Yes B. Available Capacity: Water is available from the existing 12 -inch main along Ryan Road. However, it is doubtful that a single feed could adequately provide domestic water and fire water protection to the proposed development. Unless the applicant can prove existing capacity at time of platting using City approved models, an offsite water main extension is required, to at least one of the following lines: a. 8 -inch main along Blackberry Way; b. 8 -inch main along Creekdale Drive; C. 12 -inch main along Sanders Road. Sewer is available via extending an offsite gravity main to the existing 27 -inch gravity main along Hickory Creek. C. CIP Planned Improvements: None. Roadways /Transportation Network: A. Estimated Demand: Subject Property Estimated Impact Analysis 75.3 ± acres Proposed Demand Adequate to Serve es or No Permitted Density 3.5 units /acre Yes Average Annual Daily Trips (AADT) 2,522 Yes PM Peak Hour Trips 269 Yes AM Peak Hour Trips 203 Yes B. Available Capacity: Ryan Road is currently a 2 -lane rural undivided highway. As such, Ryan Road can serve up to 9,400 vehicles per day. Traffic counts from a four -day period in 2012 show an average of 1,398 westbound trips per day and 1,798 eastbound trips per day. There is currently capacity for an additional 6,204 trips per day. This is more than enough capacity to serve the proposed development with the existing road. C. Roadway Conditions: Ryan Road is classified as an unimproved perimeter street along property frontage. This development is responsible for constriction of 28 -feet wide concrete pavement, 5 -foot wide sidewalk, curb and gutter, and required drainage improvements along Ryan Road frontage. Signal cost participation is required for the intersection of Ryan Road and Country Club Road. A traffic impact analysis (TIA) is required upon platting to determine need for right/left turn lanes into the development along Ryan Road. D. CIP Planned Improvements: There are no planned CIP Improvements within vicinity of this development. Environmental Conditions: There are two types of Environmentally Sensitive Areas (ESAs) on the subject property; undeveloped floodplain and riparian buffers. Any proposed development would be subject to Sections 35.17.7 and 35.17.8 of the Denton Development Code. Limited development is allowed in undeveloped floodplain areas and riparian buffers on the subject property. The increase in density associated with the proposed zoning change would allow increased lot coverage, additional lots and associated pavement, resulting in increased rainwater runoff. Preservation of ESAs and adequate conveyance of runoff will be evaluated at time of platting and any needed mitigation measures will be enforced at that time. Electric: Electric service will be provided by Denton Municipal Electric (DME). DME representatives have reviewed the proposed zoning change and provided comments to the applicant. There are no issues with provision of services. Parks: There are several parks near the subject property that will be adequate to provide services to residents. The property is 3,100 feet from Cross Timbers Park, Bent Creek Park and Lake Forest Park. It is also 7,600 feet from South Lakes Park. • Cross Timbers Park is a 70 acre multiple node neighborhood park that offers 1 basketball court, 10 benches, 1 bridge, 2 drinking fountains, 6 grills, 1 pavilion / outdoor learning classroom, 8 picnic tables, 2 playgrounds, interpretative signage, 1.17 miles of hard surface trail, 0.75 miles of soft surface trail, and one sand volleyball court and 0.5 acres of fishing opportunities along with convenient access to US Army Corp of Engineer property. • Bent Creek Park is a 21.47 acre natural area and is currently undeveloped but offers opportunities to observe wildlife in the riparian a setting. • Lake Forest Park — is a 6932 acre community park that offers 12 benches, 2 drinking fountains, 2 pet drinking fountains, 3.8 acres of dog park with three separate areas, 6 dog waste stations, 1 community message board, 56 concrete parking spaces, 3 picnic tables, 1 playground, interpretative signage, 0.47 miles of hard surface trail, 1.42 miles of soft surface trail, and 11 acres of fishing opportunities. • South Lakes Park is a 187.29 acre community park a half court basketball court, 29 benches, 4 bridges, 2 drinking fountains, 12 grills, 2 pavilions, 78 picnic tables, 1 practice football, soccer, and rugby field, 1 restroom, 1 large destination playground, 147 concrete parking spaces, 2 tennis courts, 3 dog waste stations, interpretative signage, 237 miles of hard surface trail, 0.85 miles of soft surface trail, and one sand volleyball court and 8 acres of fishing opportunities in 2 lakes (The lake closest to Hobson Road is stocked by TPWD every 2 weeks with Trout from Nov to February and Channel Catfish March through October) and one fishing pier, 2 community message boards The Parks Department will collect 915 and 916 fees to improve existing park infrastructure. New parks are not planned for this area in the area unless there is a significantly inexpensive, undevelopable lot or foreclosure in the area that makes the best economic sense for the City to acquire. The 915 fees will be due at the time of platting and are in -lieu of parkland dedication. Based on 245 units x 2.5 acres per 1000 people x 2.8 people per unit, they project will owe the equivalent of 1.715 acres to the Parks Dept for the 915 fees. The fee in lieu of land will be decided based on property values and discussions with the parks department. The 916 fees would include $291 per unit estimated to total $71,295 which would be due incrementally when each building permit is issued. Recommendation The Development Review Committee finds that the request IS CONSISTENT with the general character of the area and IS CONSISTENT with the Denton Plan. Based on the criteria in the DDC and the findings -of -fact, the Development Review Committee (DRC) recommends APPROVAL of Z13 -0006. On September 25, 2013 the Planning and Zoning Commission voted 6 -1 to recommend APPROVAL of Z13 -0006 to City Council. GENERAL NOTES VOTE: Approval of this request shall not constitute a waiver or variance firom any applicable development requirement unless specifically noted in the conditions of approval and consistent with the Denton Development Code. VOTE: All written comments made in the application and subsequent subrnzissions of information made during the application review process, which are on file with the City ofDenton, shall be considered to be binding upon the applicant, provided such comments are not at variance with the Denton Plan, Denton Development Code or other development regulations in effect at the time of development. Exhibit 2 Site Location /Aerial Map 51010 1,i FeeL Exhibit 3 Existing Zoning Map 51010 1,inoo FeeL Exhibit 4 Proposed Zoning Map 51010 t FeeL Exhibit 5 Future Land Use Map 1 500 1 000 =Per Exhibit 6 ESA Map ]ESA Stream Buffe r 0 "3CIII) 165010 pp 100 Flooldpllain Feet Exhibit 7 Notification Map & Responses 31 V E ON IV, PIP Q W EL 1-�5 LA KEN" C RD 10 Ll- ft 25 COUNTR'w CLB Rr ) 11 "' N, '� E R 11 '�ID / 317 5AINDER, I w )AK C V09 IREN� SANDERS RD SANDERS M 13 1 "S lR9 IR 1841 C MJ N TR'v CLANK R D , P AQ E RD Rbp A, 5 S G R Y'A CV ,R JBIRD 01 LAUI�NS)LACE 111 17 R0 AI LO K' �'O U N Tir. (' C LU 19 R 1) 19 R OY 1. OAKS I YAL ALO KS ml 1JRII PLC R D� LO KS R IRI�N$ 11 LA RYAN 9, RO(ALOAkSCIm GY L ,'849 COUN TRV CLUB RD ROYALOAllIKS C Illik W R'YA N D D 0 W R'�AN P.D W RE NS Pl. A C E D W RYAN 2 W R eAN b" R Q�, �$lT J R I N,$, P I I RD Rl N RID .,9517 COVNTRy(,'l.IJ9 RI AL Q k's RIIL:u S C III 3D A, 141py CUJI! 4 "R M66 Cf _jE..Nl Pl- It CLUB RD -21 LLAA --lq ROM 7M R (AN RID 17 I W R\AN R VW RYAN RD �5 COUNTR y C LU RD 4J LLJ WI9 I" �I R T"Y 4U B'l� D T SUBJECT PROPERTY R 50 1 vw RYAN \X, CLUB RD — - - - - - — — - - - - — -- -- lo 500 Foot . . .............................................. ......... Buffer ........................ . .... IN 200 Foot ...... FAVOR Buffer NEUTRAL CKO'k,"( C �EEK RI MIL k OPPOSED NOTICE OF PUBLIC HEARING Z1 3-000,6 1 The Plannung and Zoning Commission of the City of Menton will hold a puibluc hearing on Wednesday, September 25, 2013 and consider making a recommendation on to the City Council regarding a rezoning frorn a Neighborhood Residential 2 (NR -2) zoning district to, a Neighborhood Ressidlientual 3 (NR-3) zomnag district on approximately 75:3 acres. The subvert property is generally located) on the soutth of Ryan Read, north of the Kansas Ciity Southern Railroad, approximately 9510 feet east of IF(V111830 and approximately 600 feet wrest of Forrest IRid'ge (Road'. The public hearing Will start at 6.30 p.m. in the City Council Chambers of City H'alll located at 215 I . McKinney Street, Benton, Texas. Because you own ,property within two hundred (200) feet of the subject properly, the Planning and Zoning Commission wouid tike to hear how you feet abeam this request and invites your to attend the pubfic hearing. (Please, in order for your cplinion to be taken into account, return this form rrwith your comments prior to the date of the public hearing. (This in no way prohibits your from attending and patticipattrog in taro ;pubtic heoerir)g.) You may fax it to the number located at the bottormi or mail it to the address below or drop it off ln- person: (Planning and Development Department Attn: Michelle Burry, Project Manager 2211 N. Elm ST (Denton, Texas 76201 These Forms are used to calculate the percentage of landowners that support and oppose the request. The Cormrmissiom its informed of the percent of responses in support and in opposition, please circle one: In favor of requu!V Neuttrall to request Opposed to retlu�iest (Reasons for Opposition: Sugna� ur����..�� Printed Name: Mading Address:! City, State zip: Telephone Numbeir: „ (Physical Address of Property within 200 feet: IL/ "-'r i � r•��� -f ��;f � CITY OF NDE N"Ir O , TEXAS CITY HALL VV 'Y" - D N"rON. TEXAS 76201 • 940.349S541 (F) 94,0 349,77017 . . . . . . . ... . . .......... .......... .... . ............. . ..... . 111.1 ........... . .. . ..... . .. J.. NTICE OF PUBLIC HEAR O ING Z 13-0006 The Planning and Zoning Commission of the City of Denton vAll hold a pub[ic hearing on Wednesday, September 25, 20,13 and consider making a recommendation to the City Council iregarding a rezoning from a Neighborhwd Residential 2 (fJR-2) zoning district to a Neighborhood Residential 3 (NR-3) zoning district on approximately 75,3 acres. The subject property is generally located Oil the south, of Ryan Road, north of the Kansas City Southern Railroadl, approximately 9,50 feet east of FMI830 and approximately 800 feel west of Forrest Ridge Road. The public hea0ng will start at 6:30, P.m. in the City Counal Chambers of City Hall located at 215 E McKinney Street, Denton,, Texas. Because you own pa4wrty within two hundred (2 00) feet of the subject propeily, the Plannfng and Zoning Commission wouldlike to hear how you feel about this request and invites you to attend the public heafing. Please, in order for your opinion to be taken into accounit, return this form, vAll-lyour comments prior to the date of the putillic hearing. (This in no way prohibits you from attending and paiticipaling in the public hearing.) You may tax it to the number Alocated at the bottom or mail it to the address below or drop 4 offin-person; Planning and Development Department Attn: Michele Berry, Profile Manager 2211 N. Elm ST Denton, Texas 76201 These forms are used to calculate the percentage of landowners that support and oppose the request. The Commission, is informed of the percent of responses in support and in opposition. --ol— Please circle one: In faw of req Opposed to request Neutral to request Rea oWWr'0ppvwifion: Signature: Printed Name: Mailing Address, City, State Zip: Telephone Number Physical Address of within 200 feet CITY OF 004T43N, TEX4S CITY HALL WEST,- DENTON, TEXAS 76201 - 940-349,8541 • (F) 940,340,7707 Poo P&Z Nobee, NOTICE OF PUBLIC HEARING Z1 3.000• The Planning and Zoning Commission of the Ciity of Denton will hold a public hearing on Wednesday, September 25,, 2013 and consider making a recon'irriendation to the City Council regarding a rezoning from, a Neighborhood Residential 2 (NR-2) zoning dIstirict to a Neighlborhood Residential 3 (NR-3) zoning district on approximately 75.3 acres. The subject property is generally located on the south of Ryan Road, north of the Kansas City SOUthern railroad, approximately 950 feet east of FMI830 aind approximately 800 feet west of (Forrest Ridge Road, The public hearing will start at 6:30 pmi, in the City Council Chambers of City Hall located at 215 E. McKinney Street, Denton, Texas, Because you own property within two tI(jndred (2010), facet c)f the subject property, the Plannif7q and Zoning Commission would like to hear how you feet about this request and invites you to attend the, pubfichearing, Please, in order for your opinion to be taken, into account, return this form with your comments prior to the date of the public hearing. (This in no way prohibits you from attending and participating in the public hearing) You may fax it to the inumbeir located at the bottom or mail iit to the address below or drop it off in-person: Planning and Development Department Attn: Michele lBerry, Project IManager 221 N. Elm ST Denton, Texas 762011 These forms are liked to callculate the percentage of landowners, that support and oppose the request. The Commission is informed of the percent of responses in support andi in opposition. In favor of req uest,,,1 Please circle one: Neutral to request Opposed to request Reasons for Opposition. . . . . ............... Signature'. Printed Nairne� Mailing Adldress:: City, State Zip: Telephone Niumbeir, Physical Address of CITY OF DENTON, TEXAS CITY HALL WEST IDENTON, TEXAS 7620 1 - 940.349.8541 • i(F) 940,349,7707 N�O�TI�CIE OF PUBLI�C HEARING ZI 3-0006 The Planning and Zoning Commission of the City of If enton wolll hold a pubfic hearing on Wednesday, September 25, 21013 and consider making a recommendation to the City Counicilll regairding a rezoning from a Neighborhood Residential 2 (NR-2) zoning district to, a Neighborhood ResJdeintiall 3 (NR-3) zoning district on approximateiy 75.3 acres. The subject property is generally located on the south of Ryan Road, north of the Kansas City Southern Raillroadi, approximately 950 feet east ofFM183,0 and approximately 800 feet west of Forrest Ridge Road. The public heariing will :start at 6:30 p.m. in the City Council Charribers of City Hall Ilocatedl at 215 E. McKinney Street, Denton, Texas., Because you own property within two hundred (2010) feet of the subject property, the Planning and Zoning Clornmission would fiko to hear how YOU feel about this request and invites you to attend the public hearing. Please, in order for your opinion to be taken into account, retuirn this form with your comments, prior to the date of the public hearing. (This in no way prohibits, you from attending and participating in the public hearing.) You miay fax it to the number located at the bottom or mail it to the address below or drop it off in-pursom Planning and Development Department Attn: Michele Berry, Project Manager 221 N. Elm ST Denton, Texas 76201 These forms are used to, calculate the percentage of landowners that support and oppose the request The Commission is informed of the percent of responses in suppoirt and in opposition. Please circle one: In favor of request Neutral to request posed , t re"-q '16—e, CO P Reasons for O, osition . . . I . .... ... 0�0 6 CLI"Cl-L-1 A,J e(' k4kd'j.4".' Signature; . ........................... . ...... . Printed Nlarne: ............ Maii1ing Addiress. City, State, Zip: Telephone Number: Physical Address of Property within, 200 feet: CITY OF DENTON, TEXAS CITY HALL WEST - DENTONI, TEXAS 76201 • 940,349,8541 • (F) 940.349.7707 NOTICE F t PU LI - CIE RING Z1 3-0006 The Planning and Zoning Commission of the City of Denton wili hold a public hearing on Wednesdlay, September 25, 2013 and consider imaking a recommendation to the City Council regarding a rezoning from a Neighborhood Residential 2 (NR -2) zonincf district to a Neighborhood Residential 3 (NR-3) zoning district on approximately 75.3 ache's. The subject property is generally located uain the south of Ryan Roadl, north of the Kansas 'City Southern Railroad', alpproxirbately 950 feet east of FM 1830 and approximately 800 feet west of Forrest Ridge, React, The public hearing will start, at 6:30 p.m. iin the City Council Chambers of City Hall located at 215 F, twticKinney Street,, Denton, Texas. SecauAse you own property within two, hundred (00) feat of the su. bje,c;t properly, the Planning and Zoning Commission wvou i d hddce to hear how you feat about this request and invites you to attend the public hearing Please, in orc w for your opinion to be taken into account, return this farml with your comments prior to the date of the public hearing. (This in no way prohibits you from attending and participating in the public hearing.) You may fax it to the number located at the bottom or main it to the address below or drop it off in- person: Planning and Development Department ttn; Michele Berry, (Project, Manager 221 N. Elm ST Denton, Texas 76201 "these forms are used to calculate the percentage of landowners that support, andi oppose the request. The Commission is informed of the percent of responses in support and in opposition. Pllease circle ono: In favor of request Neutral to request Opposed to request .. _ .... Reasons for Opposition u A-) o lk ;u ... ( WJ �j ILI Signature", mm. v. w.mm , Printed Mdlarne Mailing Address:' City, State Zip Telephone Number: �1' °-w_ fug of f ... Physical Address of Property within 299 feed. ... CITY DENTON, TEXAS 01'Y HALL '6 r - DENTON, TEXAS 76201 • 940.34 ,8541 • dF) 9, 4 7.349.'7707 Exhibit 8 Applicant's Project Narrative Zonina Chanae Praiect Narrative Location: 601 W. Rvan Road: south side of Rvan Road. west of and adiacent to WWavne Stewart Rvan Elementary School To change the zoning and develop the grooerty in a manner that is sustainable. comoatible. and marketable with surrounding existing uses and current market forces. Existina and Pr000sed Land Use: Existing Zoning: NR -2 Proposed Zoning: NR -3 Existing Plat(s): No Plats exist for the orooerty; Acreage: 76.3 acres +I- Land Characteristics: Property is bounded on the West by agricultural use and railroad right of way. on the South by a commercial use. to the East by the elementary school and vacant or agricultural land. and on the North bv' Rvah Road and an elementary school. A half- section of Creekdale Drive (a future Collector) is constructed adiacent to the orooerty along the west side of the elementary school and connecting with Rvan Road (a future Secondary Maier Arterial). A gas well site exists in, the northwest portion of the orogerty. Per Citv mans. ESA is located cry the orooerty. mainly in the form of undevelooed floodolain and rioarian buffer, Existing Uses . Vacant f Agriculture / Gas Well Proposed Uses: Aonroximately 260 single family residential lots are being or000sed. Pr000sed gross density is less than 3.6 units / acre. Setbacks from the existing gas well Der Citv standards are or000sed. ESAs in the form of Floodolain exist on the subiect tract. These areas are to be integrated into the desian and. for the most mart. Dreserved as open space and used for gassive recreational use. Other area adioinino the ESA. and floodolain will also be dedicated as oxen soace to suDDort community amenities that cannot be located within ESA and floodolain. At this time it is assumed the City will not desire oublic Dark land dedication. and therefore all openi soace and amenities that are Drovided to serve the community will be Drivatelv owned and maintained by a mandatory homeowner's association (HOA). Phasing and Proposed Access: Two (2) or more Dhiases of development are anticipated with access from existing Rvan Road (a future Seconidary Maier Arterial) via the widened and extended Creekdale Drive. and at least one additional residential street connecting to Rvan Road as recuired to satisfy "remote access"' rules. Other roads. including the extension of Creekdale Drive to the south i boundary of the nrooertv in accordance with the Denton, Mobility Plan. will be extended to the oerimeter of the orooertv in order to orovide for circulation and connectivity with the future develoomenit of adiacenit land. Existing Utilities: Utilities in the form of City water. san,itary sewer and electric exist to the north, of the oroDertv. along Rvan i Road. Proposed Utilities: Water will be orovided by connections with the existing 12 -inch i lime located in Rvan i Road. If modeling (to be nerformed at time of finial alattinia and design) indicates that additional "l000inia" of the system in the vicinity of the orooertv is reauired. then offsite water lime extensions will be Dr000sed and reauired easements acauired accordingly. Notwithstanding the possible need for local looping. the existing water system in the area is adequate to serve the Droiect as oroDosed. If indeed looDina is reouired. such art i imorovemenit is likely needed reaardless of the or000sed zoned chance and a condition, that will eventually need to be resolved as the surrounding area develoos. Sewer will be orovided by connecting offsite to,a,large trunk lime located in the Hickory Creek floodolain to the south,. The nr000sed oroiect and zone change will have a n,ealioible imnact on the capacity of the trunk lime. which is adequate at this time. Existing T000araohiv and Draineae: A very slight ridoe exists in the middle of the DroDertv stretchinio north to south. The site drains from this high i Doinit. east and west to floodelainis that then flow southerly. The existing elementary school drains its detention oond to this tract thiat then, drains into the eastern floodelain. The existing slopes are comearativelv aenitle and well- suited for the Drooesed'oroiect. Proposed ToDoaraohiv (Grading) and drainage: Onisite cut-fill is oroDosed in order to arade the site for single - family uses. The or000sed arades will conform aeneraliv to existing slopes and Datternis. and extensive cuts and fills are not anticioated. The Dr000sed hivdroloav will be Daved or covered consistent with uses and intensity of develooment within the NR-3 district. drainage systems will be enclosed conduits out - falling into the or000sed floodolain i open i soace. Pr000sed Mitiaation Measures for Nuisance Abatement: Control of noise. odor. fumes. dust. and lighting. and sufficient landscaping and screening created by the develooment will be accomolishied with reouired. and if necessarv. enhanced technioues and methods to be determined at the time of platting and desioni. Nuisances. if aniv. are not anticioated to be exacerbated or sianiificanitiv different from the existing zoning as a result of the or000sed zoning chanoe. It is anticipated that the or000sed uses and development on the tract will be consistent with and in accordance with all reauirements of the DDC. Imoact of the Pr000sed Chanae On: a. The Goals and Obiectives of The Denton Plan: The or000sed zone change will adhere to the aoals and obiectives of The Denton Plan by matchiin'a,the Future Land Use Element. and by oreservinia worthiv natural resources and foature's. No nieaative imoacts to the acals and obiectives of the Deniton, Plan, will be realized due to: the relatively minor change in the or000sed zoning cornoared to the existine zoninia.- the relatively limited area of chanoe: and the abundance of surrounidina unidevelooed land and ETJ area that will be annexed and developed in the future orovidina or)oortuniitv for the area to evolve and adiust over time in response to market forces. Furthermore. The Denton Plan encouraues a mix of housing and the area of the proposed oroiect is dominated by NR-2 zoniinia districts. The area south, of Ryan, Road and in close proximity to the Dr000sed nroiect includes existing NR-3 and NR -4 zoning. This fact. along with the oresenice of the school campus. railroad. collector and arterial roadways adiacenit to and through i the orooertv and a large amount bUolanned ooen, soave. all support the oroDosal to develop the nronertv with sliahitiv areater denisitv. 0 the Future Land Use Element of The Deniton, Plan,. The or000sed zone chanoe matches c. The Balance of Land Uses in the City: The balance of Land Uses in the Citv will not be altered as a result of the or000sed zone change. The number of single- family residential units that can Dotentiallv be develooed will increase slightly. However. because of the relatively limited area of chanoe. and minor change in allowed density comoared to the existing zonind. the increase is neoliaible and not measurable in the context of The Deniton, Plan,. d. Adeouate Public Facilitv Elements of The Deniton, Plan, and How the Change Will Effect the Provision of Services Anticipated in The Denton Plan: Because of the relatively limited area of chance. and minor change in allowed density compared to the existino zoning. the or000sed zoning chance will have a neolioible imnact on the services provided by the Citv. DME. the D.I.S.D.. and other services anticipated in The Denton Plan. a. The existina land use pattern surroundina theoroi)ertv and the possible impact on existino or future development or uses are in accordance with existino raoulations: The surroundino mix of future uses are compatible or the same as the uses or000sed on the tract. Namelv. other residential uses and an elemenitary school which is,best located within or adiacenit to residential communities. Adeauate adiacenev rules and reaulationis exist related to oas wells and residential uses. and will be complied with,. Furthermore. the change of zoning does not materialiv alter. comDound. diminish. or exacerbate aniv oerceived adiacenicv issues that miahit alreadv be oresent, with the existino zoning. b. The oossibie creation rut an isolated district unrelated to adiacent and nearby districts: This will not occur as the oroDertv is bounded by a railroad. a future arterial roadwav and future uses and districts similar to that oronosedfor the oronertv. c. The 000ulation density in order to water. sewer. schools. narks. oubi area of oronosed chance is not lat increase the Dormlation enouahIf( the orovision, of services related to will add to the arterial roadwav net properties and population arowth, i gte,,Ihe attenuate otovision of transoottation. wenionce. and other oublic recuitements: The ouah. and the chance in allowed density will not rthan 400 persons). to create neaafive imoacts on )ulationi. Furthermore. the oronosed development -k and will extend new utilities that will serve other e area. d. The cost to the city and other oovernmental entities in otovidina. imorovina. increasina. or maintaining out lic utilities. schools. streets and other oublic satetv measures: The area of proposed change, is not laroe enough. and will not increase the 000ulation enoughi (fewer than 400'oersong). to create neoative impacts on the Drovision, of services related to DoDulationi. Furthermore. the DroDosed development will add to the arterial roadwav network and will extend new utilities that will serve other orooerties and population arowthi in the area. e. The oossible imoact on the environment. including but not limited to. drainage. soil erosion and sedimentation. floodina. air aualitv and water Quantity: Nothing about the development proposed will imoact in the environment in a nieciative way. The proposed T Lf,reserfe e Code. f. Whether there are substantial reasons why the orooertv cannot be used in accordance with existino zoning or that or000sed by the Future Land Use Mao: The DroDosed zone change and oroiect matches the Future Lend Use Mao. The density allowed with the existing zoning for the oroDertv is lower than DroDosed and cannot su000rt the combined cost of lend. infrastructure. and open soace imr)rovemenits reauired to deliver a successful. sustainable community which i addresses current market forces. The reauested zone change is comDatible with surroundina and adiacenit'Llses. Exhibit 9 Applicant's Zoning Exhibit vra NIITY MAP . _._. Kelsee Traet. (RYAN ROAD, DENTON, TEXAS JULY, 2013 Exhibit 10 Site Photos Exhibit 11 September 25, 2013, Planning and Zoning Commission Meeting Minutes REGULAR MEETING The Planning and Zoning Commission convened a Regular Meeting of the Planning and Zoning Commission of the City of Denton, Texas was held on Wednesday, September 25, 2013 and began at 6:30 p.m. in the City Council Chambers at City Hall, 215 E. McKinney at which time the following items were considered: Schaake called the Regular Meeting to order at 6:51 p.m. 4. PUBLIC HEARINGS: Locldey introduced Michele Berry. Berry stated the purpose of this request is to rezone the approximately 75.3 acres of land from a Neighborhood Residential -2 (NR -2) to a Neighborhood Residential -3 (NR -3). Berry stated Country Club Road is planned to become a four -lane Secondary Arterial, Creekdale Drive is planned to be a collector that will connect to Teasley Road. Also, Ryan Road is planned to be a Secondary Major Arterial. Berry stated the proposed zoning would allow for 3.5 units for maximum density. The minimum side yard would be 6 feet, and the maximum lot coverage would be 50 %. Berry stated there were a few neighborhood concerns, which are as follows: increased traffic, school overcrowding and increased density. The applicant has met with the Principal of the neighboring elementary school and they stated they have room for growth. Staff sent 17 Public Hearing notices to property owners within 200 feet of the subject site, and 12 courtesy notices to property owners within 500 feet of the subject site. At this time staff has received (two) 2 in opposition and there (3) in favor of this request. Berry stated there are two (2) criteria for approval based on the DDC; staff recommends approval of this request. Berry stated the density would be higher than existing on the north side of Ryan Road; however, it would be compatible to the other existing areas. Bentley questioned the access points for the proposed subject site. Berry stated they would have to use Ryan Road, and the other access point is being determined, based on the separation of access points. Berry stated the applicant is working with the neighboring school to use their access point as well. Conner questioned when the expansion of Ryan Road and Country Club Road would take place; Escobar stated those are Texas Department of Transportation roads; they are proposed for the next 2 -3 years. Briggle questioned gas wells being permitted in an NR -2; Briggle also questioned Limitation 27 of the DDC; Leal stated those questions would need to be discussed in a Closed Session. Schaake questioned the additional amount of houses that would be allowed with the NR -3 zoning districts allowed density. Berry stated approximately 113 additional houses would be allowed. Berry stated the applicant is present. Bentley questioned the language used in the Development Review recommendation; Berry stated she felt it was in compliance with the Denton Comprehensive Plan and the Future Land Use designation. Thomas Fletcher, Kimley -Horn and Associates, 5750 Genesis Court, Ste 200, Frisco, Texas Fletcher thanked staff on their work. Fletcher stated there are no plans or intentions to add additional gas wells onsite. Fletcher added the lots and distances meet the requirements of the DDC. Fletcher stated he spoke with the Principal of the neighboring elementary school and they are willing to work together. The school did have concerns in regards to the fence. Fletcher stated the applicant has agreed to constrict a six (6) foot masonry fence between the perimeter of the elementary school and the subject site. There would also be a four (4) foot chain link fence installed along the eastern property line with the roadway connection. There would also be sidewalks installed for access from the neighborhood to the elementary school; along with bicycle racks. Fletcher stated there would be three (3) access points for the neighborhood to get to Ryan Road. This proposed development would include several open green spaces and amenities to preserve the area. Schaake questioned the zoning of the Thistle Hills subdivision; Berry stated it is Neighborhood Residential -4. The northern sites are zoned NR -2. Schaake opened the Public Hearing. Kimberly Caples, 5500 Risks Road, Denton, Texas Caples stated she would like more information on the home values of Thistle Hills subdivision and the minimum square foot of the proposed houses. There was no one else to speak on this item; Schaake closed the Public Hearing. Berry stated the home values would be determined at a later date, and the square footage is not something this Commission regulates. Bentley questioned a rough estimate of the lot sizes. Locldey stated the average lot size would allow for a variety of home sizes. Taylor stated in Subchapter 5 of the DDC, the minimum lot size is 10,000 square feet. Taylor added there could be roughly 218 lots at 10,000 square feet each. Locldey clarified the regulation in Subchapter 5 of the DDC applies to subdivisions that are less than two (2) acres, so it is based on density. Taylor thanked Locldey for clarifying. Schaake stated the approximately 100 additional homes would add additional traffic and services to the area and school. Berry stated after speaking with Denton Independent School District, their representative did not foresee an issue with the proposed growth. Commissioner Devin Taylor motioned, Commissioner Thom Reece seconded to approve this zoning request. Motion approved (6 -1). sAlegal \our documents \ordinances \13\713- 0006.doc Exhibit 12 Ordinance ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE FROM A NEIGHBORHOOD RESIDENTIAL 2 (NR -2) ZONING DISTRICT AND USE CLASSIFICATION TO A NEIGHBORHOOD RESIDENTIAL 3 (NR -3) ZONING DISTRICT AND USE CLASSIFICATION ON APPROXIMATELY 75.3 ACRES OF LAND LOCATED ON THE SOUTH SIDE OF RYAN ROAD, APPROXIMATELY 950 FEET EAST OF COUNTRY CLUB ROAD (FM 1830) AND 800 FEET WEST OF FORRESTRIDGE ROAD, IN THE CITY OF DENTON, DENTON COUNTY, TEXAS; AND PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, SEVERABILITY AND AN EFFECTIVE DATE (Z13- 0006). WHEREAS, Bob Shelton (Bob Shelton Enterprises) has applied for a change in zoning on approximately 75.3 acres of land legally described in Exhibit "A" and depicted in Exhibit "B ", attached hereto and incorporated herein by reference (hereinafter, the "Property "), from a Neighborhood Residential 2 (NR -2) zoning district and use classification to a Neighborhood Residential 3 (NR -3) zoning district and use classification; and WHEREAS, on September 25, 2013, the Planning and Zoning Commission held a public hearing as required by law, and upon conclusion of the public hearing, the Planning and Zoning Commission adopted a motion that recommended approval (6 -1) of the change in zoning; and WHEREAS, on November 5, 2013 the City Council held a public hearing as required by law and finds that the requested change is consistent with the Denton Plan and the Development Code; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference as true. SECTION 2. The zoning district and use classification for the Property is hereby changed from a Neighborhood Residential 2 (NR -2) to a Neighborhood Residential 3 (NR -3). Notwithstanding the attached real property description, the property being rezoned includes all property to the centerline of all adjacent street rights-of-way SECTION 3. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by any court, such invalidity shall not affect the validity of other provisions or applications, and to this end the provisions of this ordinance are severable. SECTION 4. Any person violating any provision of this ordinance shall, upon conviction, be fined a sum not exceeding $2,000.00. Each day that a provision of this ordinance is violated shall constitute a separate and distinct offense. sAlegal \our documents \ordinances\1 3\z13- 0006.doc SECTION 5. This ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record - Chronicle, a daily newspaper published in the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this the day of , 2013. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY sAlegahour docujnents\ordinances\1 3\713-0006.doc EXHIBIT A LEGAL DESCRIPTION TRACT PARCEL A Being all that certain tract of land situated in Denton County, Te.3as, about hvo and one-half'n-dles'North 45 degrees West of Altoii, patented to the heirs of James lWithers, Pat.IN-io. 440. Vol. 12, Abst. No. 1343, and described as follows: Beginning at a point in the East line of said Withers Survey 681 feet South of the Northeast corner of said sun-ey; Thence South along its East hn--- 987 feet to the. Southeast comer of the oriziml tract conveyed by Frahn and wde to M_N_ Anderson by deed recorded in Vol. 13 1, Page 9=t. of the Deed Re-, orris of Denton County, Texas; Thence North 89 degrees and 45 minutes West with the South boundary line of said tract 2640 feet to the Soudrarest Thence North along the IV, est bound ary hue of ,aid tract. 9 74 fee to comer &-zein, being the S€ uthwest corner of the tract set apart to the defendant Ram Anderson et al by the District Court of Denton Ccauv, in Cause No. 9180, styledN­Irs. Lula.Anderson -'-s Hans- Anderson, et al, Thence East alms, the South boimdan- line 2640 feet to the Southeast corner, the Place of Bunning and being the same land cone eyed.by &C. Stuart et al. to said Manin F. lViUs by deed recorded in Vol. 296, Paze 60 of the Deed Records of Denton Counh,, Texas, and contahung 58.71 acres of land more or less. and being the sane propexty de-scribed in a Warranty Deed dated March 3,1950 from A.C. Rasco and urife, Annie Lee Rasco to H.M Pitner and wife, Marjorie Pitner, recorded in 'Volurne 356, Page 497. Deed Record,, of Denton County, Texas. SA-t, _ and OCCE PT those parcels o f land com, e. vd by Deeds recorded in Vo I tune '148., Pa gge X119, Volume =133, 58, Xlohmw 884, Page -'! 8-4 and V olurne 4855, Page 312, Deed Record.-, of Denton I Pace County- Texas. AND SAVE and EXCEPT the following tract of land: Being a 7-09 acre tract of laud situatedd in the James, W_ Withers Siwm-y, Abstract No. 1343, City of Denton, Denton County, Texas, being a portino, of that certain tract of Land described in deed to H.M. Pitner and -"rife. Marjorie Pitner., as recorded in Voliune 156 Page 497, Deed Records of Denton County and being more particularly described as follo-ars: Coirmencin-_at the nmthwest comer of said Pitner tract. on the east line of Farm to h ,Lvket Road No. 1830: Thence North 89' 4602" East, a distance of24486 feet along the north line of said Pitner tract to a point for the sAlegaRotir documejits\ordinances\13\z13-0006.doc northeast cc= of that certain tract of land described in Cause No- 4627 to Gulf, Colorado & Santa Fe Railway Corn ny, from said point a found 1 -inch iron rod at the northeast co= of said, Piwer tract bean Nordi W, 46 02" East, a distance of-') 161,84 feet-, Thence South 338 5709" East. de-parting said north line, a distance of 72.14 feet along the northeast line, of said Gulf, Colorado and Santa Fe. Railway Company tract to the Point of Beginriing mid Northwest comer of die herein described tract-, Thence North 89'46'02" East, a distance of 642-12 feet to the northeast corner of this tract, Thence SoudiO2'27'23" East, a distance of 610.74 feet to a set t2-fiwh iron rod at an angle point in the east line of this tract, Thence Souffi 05' 23' 09" West,, a distance of 299.75 feet to a found 1;°? -inch iron rod at the southeast corner of aforesaid Gulf. Colorado & Santa Fe Railway Conipany tract and the northwest comer of that certain tract of land described in deed to Kelsoe & Riley. LLC_ as recorded in In--trument'INTO. 94- R0073341, aforesaid Deed Record-,, being on the sau6lmee of aforesaid Pi trier tract and the south comer of this tract. from which another found 1.12-inch iron rod at the southeast comer of said Pitner tract bear. South 89' 45'00" East ( be-au-nig base from Deed 356-497), a distance of 1670.77 feet, Thence North 330 5709" West, departing said south line, a distance of 269.40 feet along the aforesaid northeast line of Gulf Colorado & Santa Fe Railway Cornpany tract to an angle point in the southwest line of this tract; Thence North 41815' 17" West, a distance of 196.69 feet, continuing along said northeast Railway line; Thence North 33' 5709" West, a distance of 6-44.5-6 feet continuirq along, said northeast line to the Point of Beginning and containing 308,889 square feet or 7,09 acres of land- TF_A'CT I PARCELB .A11 that certain lot, tract or parcel of hand lying and being situated in Denton County, Texas, and being put of the James W_ Withers SunTy, Abstract'No. 1343 and being a part of a certain 42 acre tract conveyed by C.L Oliver, Receiver. to Earl H. Ryin, by deed dated July, 6, 19-11 of record in Volume 236, Page 634, of the DeedReccids of Denton County, Texas, also being a part of a certain 25 acre tract of land conveyed by .r8-M. Cogdell et ux to C-L McKelvey et ux by deed dated February 3, 1947. of record in'Vollune 331. p -age ( 53 9, of the Deed Records of Denton Coimty. Texas. and bem_g more particul arh- described as follows: Begummg at the Northeast comer of said 25 acre tract conveyed by Cogdell to McKelvey. Thence along g the North line of said 25 acre tract 1067.5 feet more or less to a cross fence which rutu North and South across said 25 acre tract, Thence South along said cross fence, 661.1 feet to a point m the South boundary line of said 25 acre tract Thence East along the South botmdan- line of said 25 acre tract-, 1067-5 feet mire or less, to the Southeast corner of said 255 acre tract: Thence North to the north boundan- line of said 25 acre tract. 661.1 feet, iwre or less to the Place of Beg nnin& containing 15 acres of land. more or less, and being the same property described in a Warranty Deed dated May 17, 1960. from C,L McKelv�,- and wife, Cecile Nell McKelvey - to H. M. Pitner, recorded in V olunie 456, Page 384, Deed Pecords of Denton County- Texas. SA%T_ and EXCEPT those tracts of land conveyed by Deeds recorded in Volume 484. Page 243, Deed Records, of DentanCounty Teets, and Voliune4811, P Real Page Property Records ofBenton County, Texas. s:\Iegal\our docunients\ordinances\1 3\z I 3-0006,doc VMS W" I Being a 26.438 a c re tract of Land situated in the J. Withers S iuv, ey, Ab st rac, t No. 1343 in 1 De nt on Cou nh%, Texas and being a part of that certain tract of land conveyed to Gordon Fry, as described by deed recorded in Voluru 555_ p kee 343 of the Deed RL,,- ords o f Denton C o Laity, texas (D. R D. T ), and being more particularly described as follows: Begginning at a U2 inch iron rod found for the Northeast comer of the herein described tract, same point bein-a at the Southeast comer of a tract of land conveyed to 'A4- It Pitner and w6e- Marjorie Pitner, as descibed by deed recorded in Volume 356, Page 497, D.R-D.C-T., saw point being in the West line of a tract of land conveyed to ItIan- Y-ithenne Eft bottom Beal, as described by deed recorded in Doc-un.-tent ,No. 2003-206782. of the Real fProperqr Records of Denton County Texas ( R.P.P.D.C.T), same point being the V.est hue of the N.. Britton Stnvey- Abstract No. 51; Thence South 01 degrees 00 minutes 00 seconds East along the Aest line of said Beal tract and said Britton Sureey, a distaiice, of 607.20 feet to a 112 indi iron rod -with yellow cap marked ":Arthur Siuveying, Conipaw" set for comer, same point being at the Northeast comer of a tract of land corneyed to Calvert Pa -,ring Corp-, as described in deed recorded in Volume 1719, Page 924, R-P-R-D.C.T.; Thence South 88 degrees 52 niinutes 51 seeconds- VVe:t, along the North line, of said Calvert Paving Corp. tract a distance of 660.00 feet to a 1 f2 inch iron rod xvith yehow cap marked "Arthur Survey , Con:4)any" set for comer Thence South 01 degrees 00 minutes 00 seconds- East along the West line of said Calvert Pai* Corp. tract. a distance of 660.00 feet to a I inch iron rod finuid for comer, saute point being in the North hue of a tract of land conveyed to Calvert Paxmig Corp-, as described by deed recorded in Volinne, 2115. Page 425, RPR-D.C.T--, 'hence South 88 degrees 52 ininutes 51 seconds'%Ve---�t- along the North hue of said Calvert Pwvmg Corp.. tract, (Volume 2115, Pkc,,e 425 j, a distance of 146.63 feet to a V2 inch iron rod with yellow cap marked "Arthur Sun;eying Company" set for comer, same point being in the Northeast line of a G-C. & SIR-R. Co. 154 foot right-of-way, Thence North 35 degrees 20 minutes 10 seconds, West along the Northeast line of a said G.C. & ST`.) `R Co. 150 foot a distance of 1-532-43 feet to a li inch iron rod vith yellmv cap marked "Artbz Staveyi Con4mly" set for comer, same point being in the South line df said Pitner tract; Thence --North 88 degrees 52 ininutez 51 seconds East ' alon-a the South line of said Pitner tract. a distance of 1671.00 feet to the Point of Beginning and contain- ins in aH a total of 26-038 acres of land, more or less. SAVE and C'EPT that certain 5.362 acre parcel of land conveyed by Deed recorded under CCO 2006 - 102657 RPRDCT- sAlegal\ our documents \ordinances \13\zl3- 0006.doc EXHIBIT B LOCATION MAP 500 1,000 o Feet Pudblhc V ieai -hr AGENDA INFORMATION SHEET AGENDA DATE: November 5, 2013 DEPARTMENT: Water & Wastewater Utilities CM/ACM: Howard Martin, Assistant City Manager - Utilities�� SUBJECT: Hold a public hearing, hold a discussion, and give staff direction regarding the 2013 Water and Wastewater impact fee study. BACKGROUND: Impact fees provide the means for recovering a portion of the cost of adding capacity to the water and wastewater system to provide service to any new growth that creates new demand. The City of Denton first adopted impact fees for the Water and Wastewater Utilities in 1998. Texas Local Government Code Chapter 395 governs the imposition of impact fees and requires the City to update its impact fees at least every five years. Denton's impact fees were updated in 2003 and 2008 and another update is required in 2013. Three documents have been produced for the impact fee update: land use assumptions, 10 -year Water and Wastewater capital improvements plans, and an impact fee study. Land use assumptions, prepared by Planning Department staff, include a description of the Water and Wastewater service areas and projections of changes in land uses, densities, intensities, and population in those service areas over the next ten years. Land use assumptions forecast the timing and mix of single family, multi - family and other development in the service area. The land use assumptions incorporated into the 2013 impact fee update are attached as Exhibit 1. The 10 -year Water and Wastewater capital improvements plans (CIP) identify the capital projects and associated costs required to support growth in the service area over the 10 -year study period based on the land use assumptions document, Water and Wastewater demand forecasts, hydraulic modeling, and the Water and Wastewater master plans. A memo prepared by engineering consultant Freese and Nichols describes the calculations used in the 10 -year Water Capital Improvements Plan and is attached as Exhibit 2. The 10 -year Wastewater Capital Improvements Plan prepared by staff is attached as Exhibit 3. Impact fee consultant Duncan and Associates used these documents to prepare the 2013 Water and Wastewater impact fee study. This study calculates the costs to provide a new customer with water or wastewater service, which become the maximum impact fee amounts allowed under Chapter 395. The Council may choose to collect Water and Wastewater fees at any amount up to the maximums set by the impact fee study. The 2013 impact fee study is attached as Exhibit 4. Both the Water and Wastewater service areas are currently divided into two zones that have different impact fees reflecting the differing cost of service for those areas. The impact fee study also considered adding an infill zone in response to the Council's desire to encourage infill development. Maps showing the existing Water impact fee zones, the existing Wastewater impact fee zones, and a possible infill zone are attached as Exhibit 5. WATER SUMMARY: The maximum calculated impact fees along with recommendations from staff, the PUB, and the CIAC are summarized below. The staff recommendation incorporates several factors. First, inflation has increased constriction costs about 14 percent since 2008 while impact fees have been static since then. Second, because impact fees and rates are major sources of revenue, adjusting one affects the other. Staff considered this link as well as how Denton's rates and impact fees compare to comparable cities. Third, Water impact fees were not adopted at the maximum level in 2008. The staff recommendation seeks to balance these factors to provide reasonable impact fees along with reasonable rates. On August 26 the Public Utilities Board passed a Water impact fee recommendation to add an infill zone and set fees at the revised staff - recommended levels of $3,100 for Zone IA (the new infill zone), $3,900 for Zone 1B (the rest of the existing Zone 1), and $4,500 for Zone 2. On September 11, 2013, the Capital Improvements Advisory Committee passed a Water impact fee recommendation to add an infill zone but to set fees at the original staff - recommended levels of $2,700 for Zone IA (the new infill zone), $4,100 for Zone 1B (the rest of the existing Zone 1), and $4,900 for Zone 2. CIAC members stated that they wish for new customers to pay for the cost of their impact rather than that cost being borne by ratepayers, and that a lower impact fee for Zone IA would encourage infill development. Water Impact Fee Recommendations without Infill Zone Zone 1 Zone 2 Max Impact Fee S4,593 S5,753 Revised Staff Recommendation $3,800 $4,500 Staff also produced recommended fee levels for an infill zone in addition to the current Water impact fee zones. This staff recommendation was also revised to incorporate the PUB and CIAC comments discussed above. Both the PUB and CIAC recommend adoption of an infill zone for the Water impact fees only. Water Impact Fee Recommend Zone IA (infill) Max Impact Fee 53,167 Revised Staff Recommendation $3,100 PUB Recommendation $3,100 CIAC Recommendation $2,700 tions with Infill Zone Zone 1B (rest) Zone 2 S5,250 S5,753 $3,900 $4,500 $3,900 $4,500 $4,100 $4,900 WASTEWATER SUMMARY: The maximum impact fee calculated in the study for each zone, as well as the staff, PUB, and CIAC recommendations are summarized below. Wastewater Zone 2, covering north Denton, has not experienced customer growth and is not expected to be developed within the next five to seven years. Combining the current Zone 1 and Zone 2 will simplify administration of fees while recognizing that little to no impact fee revenue and no impact fee - eligible capital expenditure is likely to occur in Zone 2 in the near future. Wastewater Impact Fee Recommendations without Infill Zone Combined Zone 1 and Zone 2 Max Impact Fee S2,851 Staff Recommendation $2,200 PUB Recommendation $2,200 CIAC Recommendation $2,200 The staff recommendation if Council wishes to adopt an infill zone for Wastewater also includes consolidation of the rest of the existing Zone 1 with Zone 2. Wastewater Impact Fee Recommendations with Infill Zone Zone IA (infill) Zone 1B (rest of Zone 1+ Zone 2) Max Impact Fee S1,285 S3,374 Staff Recommendation $1,285 $2,400 On August 26, 2013, the Public Utilities Board passed a Wastewater impact fee recommendation to combine the existing Zone 1 and Zone 2, not create an infill zone, and set the fee at the staff - recommended level of $2,200 for the combined Zone 1 and Zone 2. On September 11, 2013, the Capital Improvements Advisory Committee also passed a Wastewater impact fee recommendation to combine the existing Zone 1 and Zone 2, not create an infill zone, and set the fee at the staff - recommended level of $2,200 for the combined Zone 1 and Zone 2. OPTIONS: For Water 1. Adopt impact fees at the maximum amount calculated in the impact fee study 2. Adopt impact fees at the level recommended by the Public Utilities Board 3. Adopt impact fees at the level recommended by the Capital Improvements Advisory Committee A. Continue with the current 2 -zone fee system B. Adopt a 3 -zone fee system including an infill zone in the center of the city For Wastewater 1. Adopt impact fees at the maximum amount calculated in the impact fee study 2. Adopt impact fees at a level recommended by the Public Utilities Board and the Capital Improvements Advisory Committee A. Continue with the current 2 -zone fee system B. Adopt a 3 -zone fee system including an infill zone in the center of the city C. Adopt a combined Zone 1 and Zone 2 with no infill zone as recommended by staff, the Public Utilities Board, and the Capital Improvements Advisory Committee RECOMMENDATIONS: For Water There is no staff recommendation on whether to adopt an infill zone for Water. Staff recommends adoption of Water impact fees at the levels of $3,800 for Zone 1 and $4,500 for Zone 2. If an infill zone is adopted, staff recommends fees at the levels of $3,100 for Zone IA (the new infill zone), $3,900 for Zone 1B (the rest of the existing Zone 1), and $4,500 for Zone 2. The Public Utilities Board passed a Water impact fee recommendation to add an infill zone and to set fees at the revised staff - recommended levels of $3,100 for Zone IA (the new infill zone), $3,900 for Zone 1B (the rest of the existing Zone 1), and $4,500 for Zone 2. The Capital Improvements Advisory Committee passed a Water impact fee recommendation to add an infill zone but to set fees at the original staff - recommended levels of $2,700 for Zone IA (the new infill zone), $4,100 for Zone 1B (the rest of the existing Zone 1), and $4,900 for Zone 2. For Wastewater Staff recomends combining the existing Zone 1 and Zone 2 and not creating an infill zone for Wastewater. Staff recommends setting the Wastewater fee at $2,200 for the combined Zone 1 and Zone 2. The Public Utilities Board passed a Wastewater impact fee recommendation to combine the existing Zone 1 and Zone 2, not create an infill zone, and set the fee at the staff - recommended level of $2,200 for the combined Zone 1 and Zone 2. The Capital Improvements Advisory Committee also passed a Wastewater impact fee recommendation to combine the existing Zone 1 and Zone 2, not create an infill zone, and set the fee at the staff - recommended level of $2,200 for the combined Zone 1 and Zone 2. EXHIBITS: 1. Land Use Assumptions 2. Water 10 -year CIP memo 3. Wastewater 10 -year CIP 4. 2013 Water and Wastewater impact fee study 5. Maps of Current Water and Wastewater impact fee zones and a possible infill zone 6. Approved PUB minutes August 12, 2013 7. Draft PUB minutes August 26, 2013 8. Draft CIAC minutes September 11, 2013 Respectfully submitted: Howard Martin ACM, Utilities Prepared by: Joel Nickerson Exhibit I LAND USE ASSUMPTIONS Introduction These Land Use Assumptions have been developed as the basis for the preparation of an impact fee ordinance for system -wide water and wastewater capital improvements according to the requirements of State Law. Impact fees must be developed in accordance with Chapter 395 of the Texas Local Government Code. In the State Code, at 395.001(5), "Land Use Assumptions" must include a description of the service areas and projections of changes in land uses, densities, intensities, and population in the service area over at least a ten -year period. The state law requirements for land use assumptions are summarized as follows: 1. Land use assumptions as defined by Section 395.001(5); 2. Time period of projections 3. Description of general nature potential capital improvement facilities; and 4. An easily understandable map of the service areas. These over -all growth forecasts for the City are reflected in the Land Use Assumptions for the City's Water and Wastewater Certificate of Convenience and Necessity (CCN) service areas. A CCN must be approved by the Texas Natural Resources Conservation Commission (TNRCC) before services may be provided to properties within the designated area. The water and wastewater service areas include all of the area within the City plus different areas of the City's Extra - territorial Jurisdiction (ETJ). The wastewater service area includes an area larger than the water service area. Map showing these service areas are attached as Exhibit A (Wastewater) and Exhibit B (Water). The ten -year planning horizon used in developing the Land Use Assumptions is 2013 -2023. Growth projections presented in this report are based on assumptions used in the Growth Management Strategies of the North Central Texas Council of Governments (NCTCOG) and the current trends. The forecast projects an average of 1.5 to 2.0 percent annual increase in population from 2013 through 2023 within the City of Denton, see Exhibit C. The product of these land use assumptions will be applied to a projected ten -year Capital Improvement Program (CIP) for the City's water and wastewater treatment facilities to develop an impact fee that can be assessed to future development. The impact fee will reflect the "fair share" of the cost of eligible water and wastewater capital improvements that will directly benefit new development within each service area. Methodology Land Use Assumptions will be developed to project new Residential and Non - Residential development anticipated to occur from 2013 -2023. ■ Estimated residential development is stated in terms of the number of new housing units. The number of projected housing units is directly related to the type of housing. According to NCTCOG, the estimated persons per housing unit, by type, are 2.63 persons per single family housing unit and 1.80 persons per multi - family unit. 1 ■ Estimated non - residential development is stated in terms of square feet of development and is primarily related to change in population, but also reflects local and national standards for ratios of land use within communities. Projected non - residential development is forecast for commercial, industrial, and civic land uses. Civic land uses include institutions such as schools, universities, government facilities, churches, parks, streets, and other infrastructure. ■ Residential housing units and non - residential development in square feet will be converted to demand for water and wastewater service and applied to the CIP. 2 Exhibit A. Map showing Wastewater CCN City of Denton Certificate of Convenience and Necessity WASTEWATER pT y - K E R A Y LAKE R fl RT r I 9� ti ............_- L4-L - I el -jr �- k f -- r — �—.CL f 7 FT ~ I r 380 j 4 r Tr fF L k ✓ 4 �� —�— r J � IJ Tr -- 4 = 3 �r <<��J�l��r, _ _ ROBSON RANCH ` t �d I � - v� A � t r I II,.ti • i 1 - Exhibit B: Map showing Water CCN City of Denton Certificate of Convenience and Necessity WATER RAY 5 LAKE RflBERTg r JJ 1 r rF � ... - � - 4 _ ivicr`io _ N. I V k _ fir., k:� f l - `� fir' � f z .41 L�- - . r' ; AAA fl � LV OPP ........ --------------- [T - r r 377 x Tr f- ter. _ ROB SON RANCH !_ 4 Exhibit C. Table 1: Population projections for 2010- 2023 Year Estimated Percent COD Water Water Waste Waste COD Change Population Service Service Water Water Population COD Fiscal Population Connected Service Service Population Year Population Population Connected Fiscal Population Year Fiscal Year 2010 113,383 2011 114,517 1.0 113,372 117,380 116,206 116,807 115,639 2012 115,662 1.0 114,505 118,554 117,368 117,975 116,795 2013 117,397 1.5 116,223 120,332 119,129 119,745 118,547 2014 119,158 1.5 117,966 122,137 120,915 121,541 120,326 2015 1 120,945 1.5 119,736 123,969 122,729 123,364 122,131 2016 122,759 1.5 121,532 125,215 123,962 124,601 123,355 2017 124,601 1.5 123,355 127,093 125,822 126,470 125,205 2018 127,093 2.0 125,822 129,635 128,338 128,999 127,709 2019 129,635 2.0 128,338 132,227 130,905 131,579 130,263 2020 1 132,227 2.0 130,905 13 4,8 72 133,523 134,211 132,869 2021 134,872 2.0 1 133,523 1 37,569 136,194 1 136,895 1 135,526 2022 137,569 2.0 136,194 140,321 138,918 139,633 138,237 2023 140321 2.0 138,918 143,127 141,696 142,426 141,001 Note 1: 2010 U.S'. Census Bizreacz data utilized for base year. Note 2: The area marked in the attached map, made by the Utilities Department, goes beyond the city limits bizt does not cover the whole .5-mile ETJ,- the boundaries in the map were drawn using TV zones. The Comprehensive Plan of the City ofDenton includes the ETJ area in their study area; hence the Planning Departmentfinds it essential to refer to their land use assumptions using the ETJ area. Note 3: Water Service Popidation is calcidated as 2.5% higher than COD from 2013 to 201 S, decreasing to 2.0% higher than COD from 2016 to 2023. This was derived by the Utilities Department. Note 4: Waste Water Service Popidation is calcidated as 2.0% higher than COD from 2013 to 201 S, decreasing to 1.j% higher than COD from 2016 to 2023. This was derived by the Utilities Department. Note J: The water and wastewater service populations are adfusted to accountfor the difference in calendar year versus fiscal year estimates and further adfusted to reflect that not all poprdation in the service areas will actually be served. A. RESIDENTIAL LAND USE ASSUMPTIONS To estimate the number of new housing units expected as a result of forecast changes in population it is necessary to state assumptions about the following: ■ Estimated population expected within the water and wastewater service areas; ■ Estimated mix of housing units — single family as compared to multi - family; ■ Estimated percentage of population that will live in single family housing units compared to the percentage that will live in multi - family housing units; ■ Estimated persons per housing unit for single - family and multi - family housing units; and ■ Changing trends in these demographic factors over time. A (i) CURRENT CONDITIONS It is important to understand the current conditions with respect to each of these residential land use assumptions: ■ The estimated 2013 population for the City is 117,397. The estimated 2013 connected population (fiscal year) for the water service area will be 119,129 and 118,547 for the wastewater service area. ■ According to Building Permit data, as of October 2012 the City of Denton had 26,025 single - family housing units and 18,882 multi - family and other units. That amounts to 58% single family units and 42% multi - family units. ■ According to NCTCOG, the estimated persons per housing unit, by type, are 2.63 persons per single family housing unit and 1.80 persons per multi - family unit. ■ Single - family includes one -unit detached and attached and 2 units (duplexes). ■ Multi - family includes three or more units and mobile homes. h A (ii) PROJECTED CONDITIONS Following are the factors used to derive an estimate of the number of new housing units for the period 2013 through 2023. 1. When the Denton Comprehensive Plan 1999 -2020 was adopted in December of 1999, 49% of the housing was single family and 51% was multi - family and others. It is one of the growth strategy assumptions outlined in the Comprehensive Plan to change that ratio to 60% single - family housing and 40% multi - family housing by the year 2020. From 1999 to 2006, the numbers of single family dwelling units increased at a rapid rate, such that by the year 2006 the ratio of single family to multi - family had reach the 60:40% ratio. During the following years since 2008, the number of single - family units receiving permits dropped significantly while the number of multi - family units receiving permits steadily increased. As such, as of December 2012, the number of single family units was 26,066 and the number of multi - family units was 18,882 (58% single family units and 42% multi - family units). 2. Based on the NCTCOG Household Forecast, the 60:40% ratio Comprehensive Plan goal between single family and multi - family units, it is estimated that single - family housing units will increase to 36,638 units and that multi - family housing units will increase to 24,425 units in 2023. 7 Table 2: Estimated number of housing units by type Year Number of SF Units % of SF units % Change of SF Number of MF units & other % of MF units % Change of MF 2012 26,066 58% 18,882 42% 2013 26,987 58% 3.52 19,542 42% 3.52 2014 28,417 59% 3.52 19,748 41% 3.52 2015 1 29,417 59% 3.52 20,442 41% 3.52 2016 30,968 60% 3.52 20,645 40% 3.52 2017 32,057 60% 3.52 21,371 40% 3.52 2018 33,184 60% 3.52 22,123 40% 3.52 2019 33,848 60% 2 22,565 40% 2 2020 34,525 60% 2 23,017 40% 2 2021 35,215 60% 2 23,477 40% 2 2022 35,920 60% 2 23,946 40% 2 2023 1 36,638 1 60% 1 2 1 24,425 1 40% 1 2 Note 1: 2012 housing data is derived using Housing Activity permit data. Note 2: Single - Family Dwelling: A detached residential unit other than a manufactured home, hotel or motel, designed for and occupied by one family only. Note 3: Multi - Famity Dwelling: A strzrcture or portion designed for three or more dwelling units or for occupancy by members of a fraternity or sorority, or by three or more boarders or roomers. 2. Based on the NCTCOG Household Forecast, the 60:40% ratio Comprehensive Plan goal between single family and multi - family units, it is estimated that single - family housing units will increase to 36,638 units and that multi - family housing units will increase to 24,425 units in 2023. 7 Table 3: Estimated population by household type YEAR SINGLE FAMILY POPULATION MULTI - FAMILY POPULATION TOTAL 2018 87,272 39,821 127,093 2023 96,355 43,966 140,321 Based on the estimated number of housing units by type listed in Table 2 and the NCTCOG's estimated persons per housing unit, by type, of 2.63 persons per single family housing unit and 1.80 persons per multi - family unit, it is estimated that the population living in single - family housing will increase to 96,355 and 43,966 for multi - family in 2023. Table 4: Estimated persons per unit and units per acre (density) YEAR SINGLE FAMILY MULTI - FAMILY 2011 2.63 per unit & 1.80 per unit & 3 units /acre 19 units /acre 2023 2.63 per unit & 1.80 per unit & 3 units /acre 19 units /acre Note 1: According to NCTCOG, the estimated persons per housing unit, by type, are 2.63 persons per single family housing unit and 1.80 persons per multi family unit. Note 2: One of the Denton Plan's Growth Management assumption is that citywide the average density for single family development will be three (3) units per gross acre and that citywide the average density for multi family development will be fourteen (14) units per gross acre. Note 3: After conducting an existing land use analysis and researching current multi- development trends, it is more likely that the citywide average density for multi family development will be nineteen (19) units per gross acre. 4. The intensity of residential land use is indicated by the number of persons per housing unit. The local and national trend toward smaller households is expected to continue. Applying each of these factors to the forecast population for water and wastewater service areas yields the estimated number of housing units for the period 2013 through 2023, see Table 5 below. Table 5: RESIDENTIAL LAND UVEASSUMPTIONS CHARACTERISTIC WATER CCN WASTE WATER CCN SERVICE AREA SERVICE AREA 2013 2023 Change 2013 2023 Change Connected Population 119,129 141,696 22,567 118,547 141,001 22,454 Fiscal Year Single-Family Units 25,878 31,842 5,964 25,752 31,686 5,937 Multi- Family Units 18,739 21,228 2,488 18,648 21,124 2,476 Total number of 44,618 53,070 8,452 44,400 52,809 8,410 Housing units Note]: The total number ofhoizsing units was derived utilizing the population projections in Table I and the N(-'T(-'O(; estimate persons per residential unit of 2.67. The number ofsingle- family units is 60 percent of the total number of housing units. The number of multi family units is 40 percent of the total number of housing units. B. NON - RESIDENTIAL LAND USE ASSUMPTIONS To estimate the amount of commercial, industrial and civic development expected as a result of forecast changes in population it is necessary to state assumptions about the following: • estimated population expected within the water and wastewater service areas; • ratio of developed land by type of land use, in the city and from national studies • estimated land use of non - residential land uses to residential land use • estimated ratio of non - residential land uses to residential land use • estimated floor area per acre of non - residential land uses; and • changing trends in these land use factors over time. 9 B (i) CURRENT CONDITIONS It is important to understand the current conditions with respect to each of these non - residential land use assumptions: • In 2000 NCTCOG published the following land uses data for the City of Denton. No new land use data after 2000 has been published by NCTCOG. Using existing land use GIS data available in February 2008 and in February 2013, the Planning Department calculated the land developed in acres and the percent of land developed for each land use. Table 6: Existing Land Use within the City of Denton 2000 2008 2013 Land developed in (acres) % of developed land Land developed in (acres) % of developed land Land developed in (acres) % of developed land Residential 5,906 36.93 8,524 31.67 11,724 20.76 Single Family 4,988 31.19 7,512 27.91 8,429 14.93 Multi- Family 918 5.74 1,012 3.76 978 1.73 Other - - - - 2,318 4.10 Farm /Ranch - - - - 2,722 4.82 Agriculture - - - - 26,182 4637 Commercial 1,217 7.61 2,538 9.52 5,130 9.09 Industrial 1,025 6.41 811 2.93 930 1.65 Institutional 878 5.49 2,797 10.39 1,408 2.49 Religious - - - - 310 0.55 Infrastructure 6,051 37.84 - - 763.8 135 Parks & Flood Plain 720 4.50 844 3.14 988 1.75 Under Construction 116 0.73 - - - - Water 78 0.49 - - Government - - - - 785 1.39 Transportation - - - - 246 0.44 Other (Misc.) - - 11,439 4235 5,277 934 Total Developed 15,991 100.00 26,956 100.00 56,467 100.00 Vacant 24,354 28,826 3,076 Total 40,345 55,782 59,541 The following is a definition of each land use type listed above: Single Family One family detached units and duplexes. Multi - Family Strictures with three or more separate units such as apartment complexes, townhouses and condominiums. Other Residential Mobile homes (inside mobile home parks and free - standing units), group quarters or nursing homes, orphanages, college dormitories, jails, military base personnel quarters. Industrial Manufacturing plants, warehouses, office showrooms, etc. 10 Commercial All office strictures and retail buildings, shopping centers, department stores, repair shops, supermarkets, restaurants, hotels and motels, amusement parks, and large stadiums. Institutional Churches, governmental facilities, museums, schools, hospitals, medical clinics, libraries, military bases, county jails. Infrastructure All roads, airports (including terminals and runways), railroads, radio and television communication stations, trick terminals, sewage treatment and power plants, sanitary landfills, power line easements, pump stations, water treatment plants, waste management facilities, and water systems. Government Land owned by government. Includes government owned land that is kept vacant/undeveloped and used for drainage. Parks & Flood Plain All public and private parks, golf courses, cemeteries, tennis courts, swimming pools, and zoos, plus major flood control strictures, levies and flood channels. Under Construction Land that has undergone site preparation and constriction has begun. Water All water bodies. Transportation Areas taken up by a private or public road or railroad Vacant Undeveloped land plus parking lots and garages. Total acres All land and water acreage within the city. Within the City of Denton and assuming that there were no housing units located on land specified as non - residential use, the following is estimated: Table 7: 2000, 2008 and 2013 Summary of'Existing Land Use HOUSING TYPE 2000 2008 2013 Units Acres Units/ Acre Units Acres Units/ Acre Units Acres Units/ Acre SINGLE FAMILY 17,276 4,988 3.46 25,189 7,512 335 26,987 8,429 3.20 MULTI - FAMILY 15,477 918 16.86 16,793 1,012 16.59 19,542 978 19.98 OVERALL 32,753 5,906 5.54 41,982 8,524 4.93 46,529 9,407 4.95 11 The following table describes the area in acres and percentage of zoned area of each zoning district: Table 8: 2013 Summary of Zoning Classification Zoning Classification Area in Acres % of All Zoned Area A 46.58 - 0.08 CM -E 230.82 0.39 CM -G 1,127.93 1.9 DC-G 1,476.74 2.48 DC-N 37.70 0.06 DR -1 127.09 0.21 DR -2 578.85 0.97 EC -C 883.04 1.48 EC-I 1,198.11 2.01 IC-E 1,391.78 234 IC-G 3,720.67 6.25 MF -1 0.41 0.0007 MPC 9,041.83 15.2 NR -1 671.16 1.13 NR -2 7,425.66 12.48 NR -3 3,802.18 639 NR -4 4,83 1. 83 8.12 NR -6 1,322.27 2.22 NRMU 1,154.28 1.94 NRMU -12 1,198.86 2.02 PD 5,386.68 9.05 RCC -D 1,923.13 3.23 RCC -N 1,040.97 1.75 RCR - I 57433 0.97 RCR -2 47.05 0.08 RD -5 10,249.65 17.23 Note 1: Acreage is based on (W, data available as ofdanuaiy 2013. The following is a description of each zoning district: Rural Residential (RD -5) These are areas of very low density residential development and agricultural lands. Rural Commercial (RC) These areas are the locations of small rural commercial operations such as general stores, established "Fruit Stands" and places where some hand made goods can be purchased. 12 Neighborhood Residential 1 (NR -1) These areas are a prominent feature of Denton's newest neighborhoods while protecting existing neighborhoods. Residential densities in these areas average one home per acre. Neighborhood Residential 2 (NR -2) Primarily residential development. Residential densities in these areas will average two homes per acre. Neighborhood Residential 3 (NR -3) The predominant zoning category of residential development in Denton. Residential densities in these areas will average three homes per acre. Neighborhood Residential 4 (NR -4) Primarily residential with some allowances for duplex - style development. Residential densities in these areas will average four homes per acre. Neighborhood Center Residential 6 (NR -6) These areas will be a prominent feature of Denton's newest neighborhoods while protecting existing neighborhoods. They focus on the heart of the neighborhood and encourage an appropriate mix of housing types with some supportive commercial uses. Typically expect to see about six houses per acre of land. Neighborhood Residential Mixed Use 12 (NRMU -12) Mixed use development intended to preserve and protect existing neighborhoods and to ensure that any new infill development is compatible with existing land uses, patterns, and design standards. This category allows low to moderate intensity multi - family housing. Residential densities in these areas average twelve units per acre. Neighborhood Residential Mixed Use (NRMU) The heart of the Neighborhood Center. Appropriately designed neighborhood- oriented retail, office and service development with allowances for townhomes, civic uses and limited multi -story apartments. and This category will be home to moderate and higher intensity multi - family housing. Community Mixed Use General (CM -G) These areas provide the necessary shopping, services, recreation, employment and institutional facilities that are required and supported by the surrounding community. This use category contain buildings ranging from one to three stories with at least 20% of each property being landscaped. Community Mixed Use Employment (CM -E) These areas will provide the necessary, services, employment and institutional facilities that are required and supported by the surrounding community. This use category will contain buildings ranging from one to three stories with at least 20% of each property being landscaped. These areas may contain locations for new office blocks and campus —style office development. Downtown Residential (DR -1) These areas represent the traditionally residential portions of downtown. In the future expect to see more new residential projects. Downtown Residential (DR -2) These areas also represent the traditionally residential portions of downtown. In the future expect to see more new residential projects with slightly higher density standards. In these areas buildings may reach up to three or four stories in height. Downtown Commercial General (DC -G) This is the central core of downtown Denton. The setting is urban with much activity. With broad sidewalks and buildings oriented to the street, all 13 the downtown land use categories will help to create and enhance an inviting urban environment. In these areas buildings may reach up to eight stories in height. Downtown Commercial Neighborhood (DC -N) These areas, slightly less intense than the Downtown Commercial General, are also an urban setting containing a mix of jobs and housing. In these areas buildings may reach up to five stories in height. Regional Center Residential 1 (RCR -1) These regional centers are designed to create focal point of community activity including shopping, services, recreation, employment and institutional facilities. These more intense residential areas will contain a wealth of supportive shops and services. They are an important component for the local neighborhood as well as an entire region. Regional Center Residential 2 (RCR -2) These regional centers are designed to create focal point of community activity including shopping, services, recreation, employment and institutional facilities. The setting in this area is urban, containing a mix of jobs and housing both within the same buildings and nearby with a focus on multi - family housing. In these areas buildings may reach up to four stories in height. Regional Center Commercial Neighborhood (RCC -N) This type of regional center stresses the importance of neighborhood scale retail and commercial uses. As in the other Regional Center areas here you will find activities including shopping, services, recreation, employment and institutional facilities. In these areas buildings may reach up to five stories. Regional Center Commercial Downtown (RCC -D) These centers will serve as major commercial hubs for Denton. These areas of much commercial activity will serve the entire region. In these areas buildings may reach up to eight stories in height. As in the other Regional Center areas here you will find activities including shopping, services, recreation, employment and institutional facilities. Employment Center Commercial (EC -C) These are areas that provide locations for a broad variety of workplaces and complimentary uses. In general there is a focus on office and professional businesses in this land use category. Employment Center Industrial (EC -1) The purpose of these areas is to provide locations for a variety of workplaces and complimentary uses. In general there will be slightly more light manufacturing and low impact industrial uses in this land use category than EC -C. Industrial Center Employment (IC -E) This area has many of the same work processes and employment types as Industrial Center General such as manufacturing, warehousing and distributing, indoor and outdoor storage, and a wide range of commercial and industrial operations with the inclusion of more amenities added which include hotels, motels, and recreation facilities. Industrial Center General (IC -G) These areas can be characterized as containing a variety of work processes and employment such as manufacturing, warehousing and distributing, indoor and outdoor storage, and a wide range of commercial and industrial operations. 14 Planned Development (PD) These are master planned developments that have to meet higher standards of scrutiny through the development process. Details of developments within PD districts will go before the P &Z Commission and the City Council. Multi - Family -1 (MF -1) Multi - family district designated as a holdover by Council action February 5, 2002. Agricultural (A) Recently annexed property into the city limits of Denton. Current zoning is designated as Agricultural pending future zoning case. • Applying the area of each type of non - residential land use to residential land use and multiplying by the number of housing units per acre of land, a ratio expressed in the number of housing units needed to support an acre of commercial, industrial and civic land use can be developed, see Table 9 below. Table 9: 2000 Land Development Rate Year Commercial Industrial Civic Housing units needed to Institutional t I 27.91 support an acre of land 23.7 24.9 6.78 • For calculating intensity, practical development intensity has been a floor area ratio of 0.25 for commercial and 0.40 for industrial land uses. For comparison purposes, in the Denton Development Code, two zoning districts that serves to provide the necessary shopping, services, recreation, employment and institutional facilities are Community Mixed Use General (CM -G) and Community Mixed Use Employment (CM -E). The maximum floor area ratio for CM -G is 1.5 and for CM -E is 0.75. Similarly, two zoning districts that serve to provide locations for a variety of work processes and employment such as manufacturing, warehousing and distribution and a wide range of industrial operations are Industrial Center Employment (IC -E) and Industrial Center General (IC- G). The maximum floor area ratio for IC -E is 0.75 and for IC -G is 0.40. B (ii) PROJECTED CONDITIONS 1. It is assumed in the Comprehensive Plan that the mix of residential, commercial and institutional land uses will be approximately the same as currently exists while industrial land uses will be higher. It is estimated that between 2008 and 2023 the percent of develop land by land use will increase 2% annually. Table 10: Estimated Percent of Developed Land Year Single family Multi - family Commercial Industrial Institutional 2008 27.91 3.76 9.52 2.93 10.39 2013 30.81 4.15 10.51 3.23 11.47 2018 34.02 4.58 11.6 3.57 12.66 2023 37.56 5.06 12.81 3.94 13.98 15 2. Single family residential housing will continue to develop at a rate of 3 units per acre and multi - family residential housing will develop at a rate of 19 units per acre. 3. The density of non - residential land use is indicated by the relationship between residential and non - residential land used. As residential and non - residential development in the water and wastewater service areas increase in density, the number of housing units required to support an acre of non - residential land use can be expected to increase between 2008 and 2023 by half a point (0.5) every 5 years. Table 11: Estimated Non - Residential Land Deielopment Rate (Housing units per acre ofnon- residential land) Year Commercial Industrial Civic 2000 23.7 24.9 6.78 2008 24 25 7 2013 24.5 25.5 7.5 2018 25 26 8 2023 25.5 26.5 8.5 4. The intensity of non - residential land use is indicated by the amount of floor area developed per acre of land, a practical development intensity has been a floor area ratio of 0.25 for commercial and 0.40 for industrial land uses. It can be reasonable to expect that commercial, industrial, and civic intensity of land use will increase by approximately two percent (2 %) annually. 16 Table 12: Estimated Non - Residential Land Deielopment Rate (Percent offloor area per acre of non - residential land) Year Commercial Industrial Civic 2008 25 40 4.5 2013 27.60 44.16 4.96 2018 30.47 48.75 5.48 2023 33.64 53.83 6.05 16 Applying each of these factors above to the forecast population and housing units for water and waste water service areas, yields the estimated amount of non - residential development for the period 2013 through 2023. Table 13: NON - RESIDENTIAL LAND UVEA&V UMPTIONS CHARACTERISTIC WATER CCN SERVICE AREA WASTE WATER CCN SERVICE AREA 2013 2023 Change 2013 2023 Change Connected Population Fiscal Year 119,129 141,696 22,567 118,547 141,001 22,454 Housing units 44,618 53,070 8,452 44,400 52,809 8,410 Land Use (Acres) Commercial 1821.14 2081.18 260.03 1812.24 2070.94 258.70 Industrial 1749.73 2002.64 252.92 1741.18 1992.79 251.62 Civic 5949.07 6243.53 294.46 5920.00 6212.82 292.82 Floor Area (million s are feet) Commercial 21.89 30.50 8.60 21.79 30.35 8.56 Industrial 33.66 46.97 13.31 33.49 46.74 13.24 Civic 12.85 16.45 3.60 12.79 16.37 3.58 17 2013 Clear Creek Basin Land Use Assumptions Land Use Assumptions Phase I Development Area The Phase I service area incorporates land already designated in the Denton Plan as an urbanized area, and land that was originally designated as "Rural Areas." Of the 11,500 acres that makes up the Phase I service area, roughly half (5,751 acres) lies within the designation of "Rural Areas." Phase I Area Future Land Use Plan Adopted -1999 The constriction of the wastewater treatment facility and transmission lines will enable land within Phase I to be serviced regardless of the property's location within or outside the Comprehensive Plan's urbanizing area. Therefore it is conceivable that within the 2023 year timeframe, some development may occur within the currently designated Rural Areas. By assigning Neighborhood Centers to the Rural Areas of Phase I, Denton increases the ability to proactively plan for development patterns which will achieve the policies as stated in the Denton Plan. Development within Neighborhood Centers has the potential to include agricultural uses, one -acre residential development, and specifically sited higher density housing and neighborhood- oriented retail /office uses which complement and provide services to the neighborhood. It is assumed that in the Neighborhood Centers 70% of its land will be developed for residential uses, 20% will be developed for commercial uses, 10% will be developed for civic and recreational uses. (Civic uses include schools, libraries, police and fire stations, and parks and greenways) Phase I Proposed Future Land Use Areas Influences to Land Use Patterns of Phase I There are many possible build -out scenarios for the land within Phase I depending on the timing of major transportation and development projects. Currently, market pressure for development is occurring within areas with easy transportation access. Arterials such as FM2165 (North Locust), FM 426 (Sherman Drive), and the future extension of Bonnie Brae north will most likely need to be increased in capacity to handle future traffic demand. In addition to current transportation linkages within this area, the North Texas Tollway Authority, responsible for the constriction and maintenance of the Dallas North Tollway has begun studies for a future extension of the tollway to reach north Denton County. The possible inclusion of an alignment of the Tollway will affect how future projections for this area may be developed. In 2007, the Planning and Development Department processed the first Master Plan Community (MPC) called the Hills of Denton and was approved in July 2007. The future development of the Hill of Denton MPC will increase the housing and economic growth to the area. The Hills of Denton MPC is approximately 2,100 acres located north of Loop 288, west of Locust, south of Milam and east of I- 35. The development consists of single- and multi - family housing, commercial retail and office, a town center and various public amenities. The Hills of Denton MPC phasing plan show a commencement date of 2009 with a completion date during the next 20 to 25 years. As of February 2013, no activity has commenced. Development of the University of North Texas' North Campus site at US 77 and Loop 288, may induce associated interest in retail and services within the surrounding Regional Mixed Use centers to accommodate the employment population the site will generate. There are chances that UNT may acquire some property for multi - family apartments or dormitories. The Growth Management Strategy assumptions in the Denton Plan state that residential land area mix at 60% single family housing units and 40% multi - family, by the year 2020 for the whole city. Achievement of that policy may be obtained by having in these areas the total number of projected housing units split as 70% single family units and 30% multi - family units. It is anticipated that Phase I -B would not develop much until it is provided with water services. Even though presently Phase I -C also does not have water services, it might be easier to extend water lines 2 for that area from new water lines extending from the Lake Ray Roberts Water facility along Sherman Drive and so there are more chances of development occurring in Phase I -C. Phase I -A is included in both water and wastewater service area, hence it is prime for development. It is assumed that Phase 1- A and Phase 1 -C would experience significant growth when areas in the southern section of Denton reach development capacity. Population Projections For Phase I Study Area Clear Creek Basin Study Subareas Land Use Assumptions for Phase I -A • The development of the Hills of Denton MPC will commence in 2020. • The Hills of Denton MPC property was recently purchased and is under a common ownership. The owner's need or desire to develop is unknown. Therefore development may not occur within the next five years. • It is estimated that 150 total housing units will be constricted in the Phase I -A area in 2020, increasing to 450 housing units by 2023. 4 Table 1: Population Projections for Phase I -A Year Projected Housing Units Total Housing Units Projected Population Population due to the projected units Total Population % Increase in Population SF MF SF MF 2012 1187 2013 0 0 0 0 0 0 1187 0.00 2014 0 0 0 0 0 0 1187 0.00 2015 0 0 0 0 0 0 1187 0.00 2016 0 0 0 0 0 0 1187 0.00 2017 0 0 0 0 0 0 1187 0.00 2018 0 0 0 0 0 0 1187 0.00 2019 0 0 0 0 0 0 1187 0.00 2020 150 0 150 395 0 395 1582 24.94 2021 250 0 250 658 0 658 2239 2937 2022 450 0 450 1184 0 1184 3423 34.58 2023 450 0 450 1184 0 1184 4606 25.69 Note: • In the above table, popidation has been calcidated using one of the growth strategy assumptions that according to N(-'T(-'O(; the number of persons per Single Family Unit woidd be 2.63 and number ofpersons per Midti-Family Unit be 1.80. • Estimated popidation in 2012 was calcidated using 2005 estimated N(-'T(-'O(; popidation data and City ofDenton percent annual grotivth rate. 4 Land Use Assumptions for Phase I -B • Until there is water service provided in this area, it will experience negligible growth. ■ It is estimated that the subject area would experience some growth. Development pressure will demand water and wastewater services. • It is estimated that an average of 25 total housing units will be constricted in the Phase I -B in 2020, increasing to 100 housing units by 2023. Table 2: Po ulation Projection for Phase I -B (Designated Nei hborhood Centers) Year Projected Housing Units Total Housing Units Projected Population Population due to the projected units Total Population ° �O Increase in population A/W F SF MF 2012 221 2013 0 0 0 0 0 0 221 0.00 2014 0 0 0 0 0 0 221 0.00 2015 0 0 0 0 0 0 221 0.00 2016 0 0 0 0 0 0 221 0.00 2017 0 0 0 0 0 0 221 0.00 2018 0 0 0 0 0 0 221 0.00 2019 0 0 0 0 0 0 221 0.00 2020 25 0 25 66 0 66 287 22.93 2021 25 0 25 66 0 66 353 18.65 2022 25 0 25 66 0 66 418 15.72 2023 100 0 100 263 0 263 681 38.61 Note: • In the above table, population has been calculated using one of the growth strategy assumptions that according to N(-'T(-'O(; the number of persons per Single Family Unit would be 2.63 and number of persons per Multi- Family Unit be 1.80. • Estimated population in 2012 was calculated using 2005 estimated N(-'T(-'O(; population data and City ofDenton percent annual grotivth rate. Land Use Assumptions for Phase I -C This area will also experience negligible growth, until water services are provided. Ease of access to waterlines along FM 426 may make future development of this area attractive. Majority of the land in this part is under a common ownership. The owner has not expressed a reason, need or desire to develop his land. Therefore, development may not occur within the next five years. It is estimated that an average of 25 total housing units will be constricted in the subjected area each year starting in 2020. Table 3: Po ulation Projection for Phase I -C (Designated Nei hborhood Centers) Year Projected Housing Units Total Housing Units Projected Po ulation Population due to the projected units Total Population Increase in population SF MF SF MF 2012 451 Total 1,596 5,738 188 2013 0 0 0 0 0 0 188 0.00 2014 0 0 0 0 0 0 188 0.00 2015 0 0 0 0 0 0 188 0.00 2016 0 0 0 0 0 0 188 0.00 2017 0 0 0 0 0 0 188 0.00 2018 0 0 0 0 0 0 188 0.00 2019 0 0 0 0 0 0 188 0.00 2020 25 0 25 66 0 66 254 25.91 2021 25 0 25 66 0 66 320 20.58 2022 25 0 25 66 0 66 385 17.07 2023 25 0 25 66 0 66 451 14.58 Note: • In the above table, popidation has been calcidated using one of the growth strategy assumptions that according to N(-'T(-'O(; the number of persons per Single Family Unit woidd be 2.63 and number ofpersons per Midti-Family Unit be 1.80. • Estimated popidation in 2012 was calcidated using 2005 estimated N(-'T(-'O(; popidation data and City ofDenton percent annual growth rate. Table 4: Summary of Population Projections Phase I Basin (Subareas I -B and I -C developed at Neighborhood Centers) Phase I Pop ulation Year 2012 Year 2023 Part A 1,187 4,606 Part B 221 681 Part C 188 451 Total 1,596 5,738 Since Phase I -B and I -C subareas were not originally included in the urbanized area of the comprehensive plan and its projections, these numbers should be added in addition to the projected total population of the city. Policy Ramifications of Phase I With the inclusion of the entirety of the Phase I basin into the Urbanizing Area of the Denton Plan, residents, elected and appointed officials must consider the utilization of annexation and comprehensive plan amendment policies. Annexation Policy The Denton Plan states: The city will proactively annex land within its southern ETJ and other urbanizing areas that become attractive for urban development due to the availability of municipal utilities, and due to location within close proximity to areas being subdivided and developed. Proper management of development in the urbanizing areas depends on annexation and application of zoning regulations that support the recommended land use plan. (The Denton Plan 1999-2020p. 29) In 2009 annexations occurred within the western and northern areas of Denton. As development pressure continues to expand towards the west and north, annexations must be considered to maintain proactive growth management controls (zoning, site design and transportation standards) within these areas. Comprehensive Platt Amendment With the inclusion of subareas I -B and I -C into consideration for development, the city will propose a comprehensive plan amendment to include these areas as "Urbanizing Areas" rather than the previously designated "Rural Areas" as part of the Denton Plan update. Phase II Land Use Assumptions and Population Projections Growth within the remainder of the Clear Creek Basin within the city's CCN Boundary (Phase II) will remain at rural rates as the distances involved with providing connections to urban level infrastructure services remains cost prohibitive within the timeframe of this report. With recent annexations within this area, the City's water and wastewater service obligations will be necessitated by future development. 7 Conclusions City growth will continue to expand as emigration to Denton remains strong. The city will maintain an average of 1.5 to 2.0 percent annual growth rate. Development pressure in the Phase I Basin has prompted the city to constrict wastewater treatment facilities that will eventually have the capacity to efficiently maintain the City's service obligations for the Clear Creek Basin. Population for the Phase I area will reach 5,738 by 2023, based on the land use assumptions. The city will need to proactively consider a comprehensive plan amendment for subareas I -B and I -C. In addition, the city will need to maintain its current policy of annexation of property where available infrastructure and development pressures are applied. Population growth for the Phase II area will remain at current rural area rates for the time being. 2013 Water Service Area Zoned 2 Land use Assumptions Influences to Land Use Patterns of Zoned 2 There are many possible build -out scenarios for the land within Zone 2 depending on the timing of major transportation and development projects. Currently, market pressure for development is occurring within areas with easy transportation access. Arterials such as FM 2449 and Robson Ranch Road will most likely need to be increased in capacity to handle future traffic demand. In addition, the constriction of Loop 288 north from I -35W through the Cole Ranch Master Plan Community (MPC) will increase development activity occurring within this area. Cole Ranch Master Plan Community In February 2008, the City Council approved the Cole Ranch MPC. The approximately 3,256.92 acres of property is located west of Interstate 35 West, south of Tom Cole Road. The Cole Ranch MPC consists will contain a variety of land uses that will provide opportunities for vertical and horizontal mixed -use developments. The development will consist of approximately 1,955 acres of Single Family development, and approximately 342 acres of Neighborhood Residential Mixed Use development with multi - family, attached single family, retail and office uses. The development will also contain 180 acres of Community Mixed Use (CM -G) zoned property, 301 acres of Employment Center, and 85 acres of Industrial Center. The estimated residential development will consist of 6,182 single family homes with an overall gross density of 2.9 dwellings per acre, 2,621 attached single family homes with a maximum of gross density of 12 units per acre and 2,800 multi - family units with a maximum gross density of 30 units per acre. The community is being designed with higher density and more intense uses (office and retail) along the proposed alignment of Loop 288 and a more traditional suburban residential development towards the south and west. Two Neighborhood Residential Mixed Use Districts are proposed to provide higher density residential and neighborhood service oriented businesses to the surrounding single family detached residential areas. In an effort to facilitate the overall development of the MPC and provide the necessary institutional, educational, and community uses, the Denton Independent School District (DISD) has purchased a 90 acre high school site which will be part of Phase III. A middle school site has also been finalized as part of Phase II and two elementary school sites are proposed, as shown on the development plan exhibit. The exact locations have not been determined but the two elementary schools sites will be donated by the property owner to DISD. All four school sites make up approximately 165 acres of land within the Cole Ranch development. There are approximately 680 acres of open space included in the MPC. Much of the open space is made up of floodplain and Environmentally Sensitive Areas (ESAs). The applicant will identify the ESA mitigation measures at the final plat process. The applicant will dedicate approximately 72 acres of park land for both passive and active recreational purposes as required by the City of Denton Park Land Dedication requirements. Inspiration Master Plan Community The Planning and Development is currently processing another MPC called Inspiration. The approximately 3,331 acres subject property is generally located generally located on both sides of I- 35W between Robson Ranch Road and Vintage Boulevard. The applicant is proposing to develop the property with a mix of residential, retail, commercial and open space /recreational uses. The proposed zoning plan depicts approximately 2,849.5 acres of residential development and 481.6 acres of mixed use development. The MPC will include schools, trails, parks, ponds and community centers. A maximum of 12,089 single family dwelling units and 3,253 multi - family dwelling units are being proposed. The average single family density will be 4.47 units per acre and the ratio of single family to multi - family units will be 79% to 21% (the ratio is based on maximum densities allowed within each zoning district). A higher density mixed use regional center is proposed near the intersection of I -35W and Allred Road in addition to other community and neighborhood mixed use centers. 2 Population Projections for the Zone 2 Study Area Water Service Area Land Use Assumptions for the Water Service Area Zone 2 • The development of the Cole Ranch MPC will commence in 2018. • The development of the Inspiration MPC will commence in 2018. • It is estimated that 50 total housing units will be constricted in the Zone 2 area in 2018, increasing to 1,150 housing units by 2023. Conclusions City growth will continue to expand as emigration to Denton remains strong. The city will maintain an average of 1.5 to 2.0 percent annual growth rate. Population for the Water Service Area Zone 2 will reach 7,079 by 2023, based on the land use assumptions. The city will need to maintain its current policy of annexation of property where available infrastructure and development pressures are applied. 4 Table 1: Population Projections for the Water Service Area Zone 2 Year Projected Housing Units Total Housing Units Projected Population Population due to the projected units Total Population % Increase in Population SF MF SF MF 2012 2282 2013 0 0 0 0 0 0 2282 0.00 2014 0 0 0 0 0 0 2282 0.00 2015 0 0 0 0 0 0 2282 0.00 2016 0 0 0 0 0 0 2282 0.00 2017 0 0 0 0 0 0 2282 0.00 2018 50 0 50 132 0 132 2414 5.45 2019 100 0 100 263 0 263 2677 9.83 2020 150 0 150 395 0 395 3071 12.85 2021 300 50 350 789 90 879 3950 22.25 2022 450 150 600 1184 270 1454 5404 26.90 2023 500 200 700 1315 360 1675 7079 23.66 Note: • In the above table, population has been calculated using one of the growth strategy assumptions that according to N(-'T(-'O(; the number of persons per Single Family Unit would be 2.63 and number ofpersons per Multi- Family Unit be 1.80. • Estimated population in 2012 was calculated using 2005 estimated N(-'T(-'O(; population data and City ofDeutou pei-ceut annual gi-otivth rate. Conclusions City growth will continue to expand as emigration to Denton remains strong. The city will maintain an average of 1.5 to 2.0 percent annual growth rate. Population for the Water Service Area Zone 2 will reach 7,079 by 2023, based on the land use assumptions. The city will need to maintain its current policy of annexation of property where available infrastructure and development pressures are applied. 4 2013 Infill District Land Use Assumptions Land Use Assumptions Development Area The purpose of the Infill District is to provide standards for the development of infill lots in existing neighborhoods on parcels of land that have remained undeveloped. The adopted Infill District regulations allow flexibility Nvith regards to location and density supported by the Denton Plan. The regulations also: • Promote compatibility between new and existing development; • Promote certainty in the marketplace and encourage development of housing in close proximity to employment and services; • Promote neighborhood preservation and encourage mixed -use development opportunities; and • Encourage development that meets the City's goal of encouraging new development as well as preserving a diversity of housing types The Infill District regulations apply only to buildings, structures, and lots Nvithin the Neighborhood Residential and DoN -,ntoN -,n University Core Zoning Districts that are no greater than tNvo acres, provided that the proposed area has not been replatted into less than two acre lots after the effective date of the adoption of this ordinance, provided that they lie fully Nvithin the boundaries of the Infill Special Purpose District, and provided that they do not fall Nvithin any other Special Purpose or Overlay district. The Infill District is bounded to the west by Bonnie Brae, to the north by Windsor, to the east by Old North, Mockingbird, and Woodrow, and to the south by Interstate -35 and Willowwood, see Infill Special Purpose District map. 0 MMMI�� Feet 0 1,100 2,200 4,400 Influences to Land Use Patterns of the Infill Special Purpose District There are many possible build -out scenarios for the land within Infill Special Purpose District. Currently, market pressure for development is occurring within the Downtown area and areas surrounding UNT and TWU. Downtown Area In 2002, The City adopted the Denton Downtown Master Plan. Its primary focus is to provide a balance between encouraging development, including exploring partnership opportunities with private investors, and simultaneously ensuring that proper design practices are employed. The master plan includes the following eight goals for the future of downtown. Downtown Denton should: • be a vital part of Denton's economy; • be a source of civic pride; • be a place to live, work and play; • contain compact and concentrated activities; • contain a variety of things to do; • be pedestrian friendly and an enjoyable place to walk; • have linked parks and open spaces; • be attractive and well designed. On August 17, 2010, the City Council accepted the recommendations of the Downtown Implementation Plan (DTIP). The purpose of the DTIP is to achieve the goals that define the vision for the Downtown Master Plan. The DTIP serves as a catalyst for additional growth and development in the Downtown area. The DTIP identifies an investment strategy for short term and long term to increase economic development in Downtown. The implementation strategies will guide and coordinate public and private investments, and will steer the location and types of future improvements. UNT UNT is currently engaged in a comprehensive master plan update effort, the aim of which is to refine the vision for the future of their campus. Some of the topics addressed in the comprehensive master plan update effort include Facilities needs, Housing needs and Transportation. UNT's student enrollment target is 45,000 students. However, it is anticipated that this will happen no sooner than 2020. As UNT student enrollment grows, so will the need for Housing and Transportation in and around the university. TWU As of Fall 2012, TWU had a strident enrollment of approximately 15,000 students. Their residence housing number of spaces was 1942 of which the occupancy rate is at 100 percent. Similar to UNT, as TWU strident enrollment grows so will the need for Housing and Transportation in and around the university. Land Use Assumptions for the Infill Special Purpose District • It is estimated that the Infill Special Purpose District will experience growth. • Residential and non - residential development within the Downtown area will continue to grow. Encouraged by catalyst projects and with incentives and development programs, the Downtown area is estimated to grow at a rapid rate. • With the future increases in student enrollment for both UNT and TWU, Housing and Transportation needs will increase. • It is estimated that 225 total housing units will be constricted in the Infill Special Purpose District in 2013, decreasing to 200 housing units by 2023. Conclusions City growth will continue to expand as new constriction and redevelopment occurs in the Infill Special Purpose District. The city will maintain an average of 1.5 to 2.0 percent annual growth rate. Population for the Infill Special Purpose District will reach 55,304 by 2023, based on the land use assumptions. 4 Table 1: Population Projections for Infill Special Purpose District Year Projected Housing Units Total Housing Units Projected Population Population due to the projected units Total Population % Increase in Population SF MF SF MF 2012 49,198 2013 25 200 225 66 360 426 49,624 0.86 2014 25 250 275 66 450 516 50,140 1.03 2015 25 250 275 66 450 516 50,655 1.02 2016 25 250 275 66 450 516 51,171 1.01 2017 50 250 300 132 450 582 51,753 1.12 2018 50 500 550 132 900 1032 52,784 1.95 2019 0 500 500 0 900 900 53,684 1.68 2020 0 250 250 0 450 450 54,134 0.83 2021 0 250 250 0 450 450 54,584 0.82 2022 0 200 200 0 360 360 54,944 0.66 2023 0 200 200 0 360 360 55,304 0.65 Note: • In the above table, population has been calculated using one of the growth strategy assumptions that according to N(-'T(-'O(; the number of persons per Single Family Unit would be 2.63 and number of persons per Multi- Family Unit be 1.80. • Estimated population in 2012 was calculated using 2005 estimated N(-'T(-'O(; population data and City ofDenton percent annual grotivth rate. Conclusions City growth will continue to expand as new constriction and redevelopment occurs in the Infill Special Purpose District. The city will maintain an average of 1.5 to 2.0 percent annual growth rate. Population for the Infill Special Purpose District will reach 55,304 by 2023, based on the land use assumptions. 4 l al ill' C 40,,55 international Plaza, Suite 200 w Fort Worth, Texas 761.09 * 817- 735 -7300 o fax 817-735-7491 i,. FO: Tim Fisher, P.E., City of Denton Joel Nickerson, City of Denton FRO Scott Cole, P.E., Freese and Nichols, Inc. Stephanie Neises, P.E., Freese and Nichols, Inc SUBIEC I <, Water Impact Fee Utilization Calculations 1D1 ' ; May 31, 2013 1PROIECI ", Water Impact Fee Assistance INTRODUCTION DRAFT THIS DOCUMENT IS RELEASED FOR THE PURPOSE OF INTERIM REVIEW UNDER THE AUTHORITY OF Scott Cole, P.E., TEXAS NO. 98813 ON May 31, 2013. IT IS NOT TO BE USED FOR CONSTRUCTION, BIDDING OR PERMIT PURPOSES. FREESE AND NICHOLS, INC. TEXAS REGISTERED ENGINEERING FIRM F- 2144 The City of Denton contracted with Freese and Nichols, Inc. to update the Water Impact Fee Capital Improvements Plan (CIP). The City provided updated land use assumptions and the current hydraulic model to be used for the impact fee analysis. Projects included in the Impact Fee CIP consist of improvements identified in the 10 -year CIP as well as existing infrastructure with excess capacity. The Impact Fee Capital Improvements Plan is shown on Figure 1. The portion of each project associated with growth that will be utilized within the 10 -year timeframe is impact fee eligible. Utilization percentages were calculated by evaluating the existing capacity and future capacity of each project. 17�1�/ �I1[ it�u1�1�Y1[ i] 011llY111Vi /e11Y[i]����IZII�1�YIle[115fy The hydraulic model was used as a tool to determine the utilization of the pipeline improvements. For the recently constructed projects, the 2013 percent utilized was calculated by dividing the flow observed in the existing system model runs by the ultimate capacity of the pipe. The ultimate capacity of a pipe was assumed to be the capacity calculated in the 2032 system analysis as part of the 2008 Water Distribution System Master Plan. The 2013 utilization for proposed projects indicates the portion of the project that will be used to address deficiencies in the existing system or improvements that serve existing customers. The 2023 utilization percentages were calculated by taking the flow observed in the 10 -year model runs and dividing it by the ultimate capacity of the pipe. 1 III F Is �m�n�aa�amo,��a, > m­, lee CIP �,.,) d Ray Roberts �y v ••• N � I $153,306,163 � � 'r I �, Lake Ray Roberts w '� Water Treatment Plam t L• �,�w� "� f p✓�" , ^^ $56,445,235 i I � i ""• 12" _ -iii 54" Finished Water Transmission Line 1 s w{{ I $9,590,299 � y - k wi A� Loop 288Water Main Southwest Eleva te orage an I -35W Water Line �'� - $4466,650 df _ Y �0 N 15 f _ m12'G — f� a• �,.1 l c Allretl /John Paine Water Line [ +x $4.298.515 24" 24" f .�.... ..,- a, .t a ,r South Central Transmission Lines _ $10.583731 Oversmed Discharge Line (30" to 36 ") $284,477 ry° �;:• m VIII ���� `�11� ,� i 0.. 24.. 24.. a Southwest Pump Station - $5,912,002 (• .. iJ FUI�hiJ .....««...•n,.,. L — YK( -!Thll d l,la®-:d1 Is�7�cl�k��n FIGURE I" CITY OF DENTON 2013 WATER IMPACT FEE CAPITAL IMPROVEMENTS PLAN X1ill 11 t LEUEND 111•• MProposed Pump Station MRS!I7I 7 ". ji° Proposed Elevated Tank ® Existing Pump Station r'r,:.- i'i�r1)�,�IIL'll "ells° 6 IGround Storage Tank Existing Water Line u •` Existing Eligible Project :Y�A�== rlgiDi Elevated Storage Tank Water CCN Boundary �iiGafi �! R�lo l �w` IW Water Treatment Plant pp ETJ _ �.; 0 7,500 SCALE IN FEET �� •,.4:. � ILA, , .� I ,�xt Southwest Eleva te orage an I -35W Water Line �'� - $4466,650 df _ Y �0 N 15 f _ m12'G — f� a• �,.1 l c Allretl /John Paine Water Line [ +x $4.298.515 24" 24" f .�.... ..,- a, .t a ,r South Central Transmission Lines _ $10.583731 Oversmed Discharge Line (30" to 36 ") $284,477 ry° '° v v9 ✓" �� e � i 0.. 24.. 24.. a Southwest Pump Station - $5,912,002 (• .. iJ FUI�hiJ .....««...•n,.,. L — YK( FIGURE I" CITY OF DENTON 2013 WATER IMPACT FEE CAPITAL IMPROVEMENTS PLAN t LEUEND MProposed Pump Station ji° Proposed Elevated Tank ® Existing Pump Station 6 IGround Storage Tank Existing Water Line e..., •` Existing Eligible Project Elevated Storage Tank Water CCN Boundary City Limit Water Treatment Plant pp ETJ �.; 0 7,500 SCALE IN FEET Utilization percentages for water system facilities (i.e. water treatment plants, pump stations, storage tanks) were calculated based on the recommended capacities developed as part of the 2008 Water Distribution System Master Plan for the existing and projected demands. The 2013 percentages account for existing system deficiencies or projects designed to serve existing customers while the 2023 percentages indicate the portion of the capacity that will be utilized within the 10 -year timeframe. The following provides example calculations for each type of project: ■ Pipe (42 -inch Loop 288 Sherman to UNT) Existing Flow = 10.7 mgd 10 -year Flow = 16.5 mgd Ulimate Flow = 42.0 mgd 2013 % Utilization = 10.7 mgd = 0.255 :� 25% 42.0 mgd 2023 % Utilization = 16.5 mgd = 0.393 :� 40% 42.0 mgd Eligible % = 40% - 25% = 15% ■ Water Treatment Plant (Rav Roberts Water Treatment Plant Existing WTP Capacity (LLWTP) = 30.0 mgd Recently Constructed WTP Capacity (RRWTP) = 20.0 mgd Existing Maximum Day Demand = 42.2 mgd 10 -year Maximum Day Demand = 51.2 mgd 2013 % Utilization = 42.2 mgd - 30.0 mgd = 0.610 :� 60% 20.0 mgd 2023 % Utilization = 51.2 mgd = 1.024 -> 100% 30.0 mgd + 20.0 mgd Eligible % = 100% - 60% = 40% 3 ■ Pump Station (Southwest Booster Pump Station) Existing Firm Capacity = 6.05 mgd Existing Peak Hour Demand (criteria with no elevated storage) = 1.33 mgd 125% of 10 -year Maximum Day (criteria with elevated storage) = 2.03 mgd * 1.25 = 2.54 mgd 2013 % Utilization = 1.33 mgd = 0.220 :� 20% 6.05 mgd 2023% Utilization =-2.54 mgd = 0.420 :� 40% 6.05 mgd Eligible % = 40% - 20% = 20% ■ Storage Tank (Roselawn EST) Existing Storage Capacity (Central Pressure Plane) = 3.0 MG New Storage Capacity = 3.0 MG Existing Storage Requirement (from Master Plan) = 5.2 MG 10 -year Storage Requirement = 5.5 MG 2013 % Utilization = 5.2 MG — 3.0 MG = 0.733 = 75% C911 2023 % Utilization = 5.5 MG — 3.0 MG = 0.833 = 85% C911 Eligible % = 85% - 75% = 10% ZONE PERCENTAGES The City divided the water service area into three zones: • Zone 1 — the area north of Hickory Creek and the Robson Ranch, Country Lakes, Meadows at Hickory Creek, and The Vintage developments • Zone 2 — the area south of Hickory Creek, with the exception of the exacted developments that are included in Zone 1 • Infill Zone — the area bounded to the west by Bonnie Brae Street, to the north by Windsor Drive, to the east by Old North Road, Mockingbird Lane, and Woodrow Lane, and to the south by I -35E and Willowwood Street After the utilization percentages were calculated, each project was evaluated to determine the zone percentages. Percentages for projects that improve the entire system equally (such as water treatment 4 plants) were calculated based on growth in population over the next 10 years. Approximately 54% of the 10 -year growth occurs in Zone 1 while 21% occurs in Zone 2 and 25% in the Infill Zone. Table 1 shows the population for each zone. The model was utilized as a tool to assign various percentages to the remaining improvements based on the hydraulic relevance to each zone. For example, the new Nigh School Booster Pump Station provides no benefit to the customers in Zone 2 and therefore is 100% attributable to Zone 1. Similarly, projects that offer more hydraulic benefit to Zone 2 customers were given percentages higher than 21% for Zone 2. Table 2 presents the utilization percentages, as well as the zone percentages for each project. Table 1: Water Service Population by Zone Zone 2013 Population 2023 Population % of Total Growth Zone 1 68,426 80,744 545/6 Zone 2 2,282 7,079 21% Infill'Zone 49,624 55,304' 25/0 Total 120,332 143,127 100% Note: The populations were provided in the Land Use Assumptions report provided by the City. The Infill Zone population is from the Table 1 of Exhibit 4. The Zone 2 population is from Table 1 of Exhibit 3.The Zone 1 population was calculated based on the water service population presented in Table 1 of Exhibit C and then subtracting the population from Zone 2 and the Infill Zone. 5 Table 2: Cost Allocation for Impact Fees No. Description of Project 2013* Utilization 2023 Utilization 2013 -2023 Utilization Capital Cost 10 -Year Cost Zone 1 Utilization Zone 1 Cost Zone 2 Utilization Zone 2 Cost Infill Utilization Infill Cost EXISTING ELIGIBLE A Lake Ray Robeltv 751 50% 151 5153,aK163 $22,290,716 , SO $12,0X987 ? 4 681050 5 $72 679 "I B Lake Ray Roberts Water Treatment Plant 60% 100% 40% $56,445,235 $22,578,094 54% $12,192,171 21% $4,741,400 25% $5,644,523 C' , 54 ' Finished Water Transmission Une 30% 451 15"/. $9,590,299 $1,4$ 8,545, 54%4 $776,814 21"ti $302,094 25% $3$9,637 D Loop 288 Water Main - Sherman to UNT 25% 40% 15% $4,361,849 $654,277 54% $353,310 21% $137,398 25% $163,569 E Loop 288 Water Main - Sherman to Hwy 380 '.... 25% '.... 4O% ''.... IS% $3,518,35'2 $5P,753 ! 54"/4 $284,987 i 211/ $114,828 25 "/a;, $131,938 F NorthwestElevated Ste rage Tan k 30% 60% 30% $2,339,988 $701,996 100% $701,996 0% $0 0% $0 0 SontlwestPGmpStation 20% 40% 20% $5,914002 $1182,400" 601. $709,440" 401 $472,960" 0% $0 H Southwest PS Oversize Discharge Line (30" to 36 ") 5% 10% 5% $284,477 $14,224 60% $8,534 40% $5,690 0% $0 I Vintage Oversize Une (12" to 20 ") ! 2591. '.... 601 '...... 35% $754,269 $8 8,494 ! 45°/ i $40,047 5S% $48,947'- 0% 1 $0 J North -South Water Line Phase 1 25% 35% 10% $6,038,601 $603,860 54% $326,084 21% $126,811 25% $150,965 K Roselawn Elevated Storage Tank 75t. '.... 85lo '..... 101 $6,295,440 $629,944 ! 545/ '$340,170 ; 21"ti $132,288 25 "/a;, $157,486 L Roselawn Water Line 30% 55% 25% $1,797,363 $449,341 54% $242,644 21% $94,362 25% $112,335 M" Ma'sch Branch Road Water Ume Extension : ! 15"/. 30% 15"/. $645,781, $96,867 1001 ! $96,867 0% $0 0% ; $0 N U.S 380 Urban Utility Relocation 25% 30% 5% $1,362,086 $68,104 100% $68,104 0% 1 $0 0% $0 O' Razor Ranch Oversize Lino (1'6" to 24 ") ' "" ! 14% 25lu 15"/� $133,226 $19,984 1001 ! $15,984 0% $4 '. 0%i $0 PROPOSED ELIGIBLE 1 North-South W r Line Phase II Ofr 35f 35% E $380772 3883270 60%, .::1129 62 753308 "" 0 2 1 -35 Parallel Line Grossing 15% 30% 15% $1,959,552 $293,933 100% $293,933 0% $0 0% $0 3 High School Boaster Pump Station' Ole '.... 301 '..... 30% $4,704,006 $1,41.1,200 `To-wF $1,421,200 : 0% $0 0%� $0 4 Elm /Loop 288 Water Lines 0% 30% 30% $3,832,013 $1,149,604 100% $1,149,604 0% $0 0% $0 5 Allred/John Paine Water Une'; '..,. Ole '.... 20%u" ''... 20%u" 54298515 $ %59743 !35%u" 5300896 i % $5$8807 0�= $0 6 Southwest Elevated Storage Tank 10% 20% 10% $5,376,000 $537,600 60% $322,560 40% $215,040 0% $0 7 McKinney Water Une andPRU '..... 10% 25/ 1S% t $987,840 $148,176 100% $148,176 0% $0 0% $0 8 University Water Line and PRV 0% 30% 30% $1,724,083 $517,225 100% $517,225 0% $0 0% $0 9 lNew " New McKenna B' r Purby Station 0 %,r 65! ' 65! 58 064 000 $$ 241600 B0f " $3144 960 L $1,016,640 Oi 0 SO -35W Water Line 0% 20% 20% $4,466,650 $893,330 35% $312,666 65% $580,664 0% $0 11 I- 35Wfrhl4WaterUne, Ole 20lu 20% I $1,781,472 $3$6,294 !451 i$160,332 5$!u $199,961 L. $,fI 12 South Central Transmission Lines 0% 15% 15% $SQ,583,731 $1,587,560 60% $952,536 40% $635,024 0% $0 Total Capital Im rovements "Cost, I 1 1 $305,447,759, $66,724,594 1 1 $'38,041,183', 1 $15,889,273 $12,293,132' . Utilization in 2013 on Proposed Projects indicates a portion of the project that will be used to address deficiencies within the existing system, and therefore are not eligible for impact fee cost recovery for future growth. Wastewater Zone 1 C..PerCr..k Int.—pt.r IV Cooper Creek Interceptor III Impact Fee Projects Exhibit 3A W—dih—n lnt.rc.pt.r Westgate Heights Interceptor Cooper Creek Interceptor 11 US 380 Utility Relocations cr C..P.r Creek Interceptor 11 Cooper Creek Lift Station Detention Facility t Cooper Creek Lift Station nd Force Main Cooper EXISTING Hickory Creek InterceptorlV Pecan Creek Interceptor III EXISTING Pecan Creek lnt.rc.pt.r IV 00 ER OMB Pecan Creek Interceptor 11 L Ca—ll A- Interceptor Elm Street Sewer Pecan Creek Interceptor Replacements No Pecan Creek WRP ..................................... Hickory Creek Interceptor III Dry Fork Hickory Creek pecan Creek Interceptor Ph... 1 & 2 EXISTING Tributary 1 Interceptor EXISTING IL West Peak Fl— Detention Lift Station antl Pond PECAN BASIN State School Interceptor Ph... 1 EXISTING State School I lnt.rc.pt.r 11 HI C KOR BASIN Hickory Creek O.ff.11 ... ....vim......... — Hickory Creek Interceptor 11 L N.......... Hickory Creek lnt.rc.pt.r I .... A Hickory Creek Lift Station - d Detention F ac I Ii y 0.5 1 nmmmmmmK===== Miles Exhibit 3C Wastewater Capital Improvements Plan Cost Allocation for Impact Fees 2013 2023 2013 -2023 Applicable Project Name Cost Utilization Utilization Utilization Cost ($) Zone 1 Existing A Pecan Creek WRP (15 MG $39,528,174 14.34 15.00 4% $1,739,240 B Pecan Creek WRP 6MGD expansion $30,005,125 0.00 1.52 25% $7,601,298 • - - - - - - - - - - - C - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - South Wet Weather Lift Station & Detention Pond - - - - - - - - - - - - - - - - - - - - - - - - - $1,552,898 - - - - - - - - - - - - - - - - - - 1.93 - - - - - - - - - - - - - - - - - - - - 2.60 - - - - - - - - - - - - - 10% - - - - - - - - - - - - - - - - - - $154,828 - - - - - - - - - - - - D - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Cooper Creek Lift Station and Force Main - - - - - - - - - - - - - - - - - - - - - - - - - $2,150,236 - - - - - - - - - - - - - - - - - - 15.64 - - - - - - - ------ - --------------------- 17.17 12% - - - - - - - - - - - - - - - - - $263,189 •--- - - - - -- -------------------------------------------------------------------------------------------------------------------------------------------------------------------- E Pecan Creek Interceptor (Ph 1 & 2) $3,363,189 33.34 35.57 8% $258,084 • - - - - - - - - - - - F - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Cooper Creek Outfall (Loop 288) - - - - - - - - - - - - - - - - - - - - - - - - - $3,898,807 - - - - - - - - - - - - - - - - - - 13.38 - - - - - - - - - - - - - - - - - - - - 13.61 - - - - - - - - - - - - - 1% - - - - - - - - - - - - - - - - - - $48,472 •--- - - - - -- -------------------------------------------------------------------------------------------------------------------------------------------------------------------- G Krum Sewer Line $398,450 1.04 3.84 28% $111,343 • - - - - - - - - - - - H - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Graveyard Branch Interceptor - - - - - - - - - - - - - - - - - - - - - - - - - $5,004,952 - - - - - - - - - - - - - - - - - - 1.05 - - - - - - - - - - - - - - - - - - - - 1.47 - - - - - - - - - - - - - 2% - - - - - - - - - - - - - - - - - - $99,389 •--- - - - - -- -------------------------------------------------------------------------------------------------------------------------------------------------------------------- I Roark Branch Interceptor $854,774 0.00 3.84 53% $453,361 • - - - - - - - - - - - i - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - State School Interceptor 1 - - - - - - - - - - - - - - - - - - - - - - - - - $1,660,869 - - - - - - - - - - - - - - - - - - 24.07 - - - - - - - - - - - - - - - - - - - - 25.04 - - - - - - - - - - - - ....... 3% - - - - - - - - - - - - $46,455 -------------------------- K - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Pecan Creek Interceptor 1 - - - - - - - - - - - - - - - - - - - - - - - - - $1,975,672 - - - - ------------------------------------------ 34.61 37.51 - - - - - 9% - - - - - - - - - - - - - - - - - - $177,933 Zone 1 Proposed 1 Carroll Ave Interceptor $472,799 3.84 4.33 8% $39,467 • - - - - - - - - - - - 2 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Cooper Creek Interceptor 1 - - - - - - - - - - - - - - - - - - - - - - - - - $608,498 - - - - ------------------------------------------ 15.64 17.17 - - - - - 8% - - - - - - - - - - - - - - - - - - $50,543 •--- - - - - -- -------------------------------------------------------------------------------------------------------------------------------------------------------------------- 3 Cooper Creek Interceptor 11 $1,293,395 11.89 13.01 8% $99,492 •--- - - - - -- -------------------------------------------------------------------------------------------------------------------------------------------------------------------- 4 Cooper Creek Interceptor 111 $1,239,878 9.72 10.37 4% $55,619 •--- - - - - -- -------------------------------------------------------------------------------------------------------------------------------------------------------------------- 5 Cooper Creek Interceptor IV $249,528 0.00 1.90 56% $139,854 •--- - - - - -- -------------------------------------------------------------------------------------------------------------------------------------------------------------------- 6 Cooper Creek Lift Station Detention Facility $1,543,050 0.00 0.29 39% $596,646 •--- - - - - -- -------------------------------------------------------------------------------------------------------------------------------------------------------------------- 7 Dry Fork Hickory Creek Tributary 1 Interceptor $2,294,968 5.93 6.48 8% $192,413 •--- - - - - -- -------------------------------------------------------------------------------------------------------------------------------------------------------------------- 8 Elm Street Sewer Replacements $204,515 1.67 1.86 4% $9,186 • - - - - - - - - - - - 9 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Hickory Creek Interceptor 1 - - - - - - - - - - - - - - - - - - - - - - - - - $4,494,098 - - - - - - - - - - - - - - - - - - 19.74 - - - - - - ----------------------------- 30.68 25% - - - - - - - - - - - - - - - - $1,137,562 •--- - - - - -- --------------------------------------------------------------------------------------------------------------------------------------------------------------- 10 Hickory Creek Interceptor 11 $6,497,359 15.99 27.01 33% - - - - -- $2,138,617 •--- - - - - -- --------------------------------------------------------------------------------------------------------------------------------------------------------------- 11 Hickory Creek Interceptor 111 $7,247,205 11.61 19.52 39% - - - - -- $2,808,691 •--- - - - - -- --------------------------------------------------------------------------------------------------------------------------------------------------------------- 12 Hickory Creek Interceptor IV $2,361,574 2.25 3.30 24% - - - - -- $576,663 •--- - - - - -- --------------------------------------------------------------------------------------------------------------------------------------------------------------- 13 Hickory Creek Lift Station Detention Facility $8,293,840 0.00 2.83 70% - - - - -- $5,809,794 •--- - - - - -- --------------------------------------------------------------------------------------------------------------------------------------------------------------- 14 Hickory Creek Outfall $466,857 11.93 12.21 1% - - - - -- $3,782 •--- - - - - -- -------------------------------------------------------------------------------------------------------------------------------------------------------------------- 15 Pecan Creek Interceptor 11 $3,114,198 23.43 26.76 9% $276,762 • - - - - - - - - - - - 16 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Pecan Creek Interceptor 111 - - - - - - - - - - - - - - - - - - - - - - - - - $1,899,937 - - - - - - - - - - - - - - - - - - 23.24 - - - - - - - - - - - - - - - - - - - - 24.83 - - - - - - - - - - - - - 6% - - - - - - - - - - - - - - - - - - $122,254 • - - - - - - - - - - - 17 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Pecan Creek Interceptor IV - - - - - - - - - - - - - - - - - - - - - - - - - $1,436,302 - - - - ------------------------------------------ 14.24 17.03 - - - - - 11% - - - - - - - - - - - - - - - - - - $157,148 • - - - - - - - - - - - 18 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -------------------- Pecan Creek Interceptor V - - - - - - - - - - - - - - - - - - - - $3,124,089 - - - - - - - - - - - - - - - - - - 21.13 - - - - - - - - - - - - - - - - - - - - 22.40 - - - - - - - - - - - - - 6% - - - - - - - - - - - - - - - - - - - $183,600 • - - - - - - - - - - - 19 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - State School Interceptor 11 - - - - - - - - - - - - - - - - - - - - - - - - - $4,551,156 - - - - - - - - - - - - - - - - - - 23.42 - - - - - - - - - - - - - - - - - - - - 24.35 - - - - - - - - - - - - - 2% - - - - - - - - - - - - - - - - - - $68,400 -------------------------- 20 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - US 380 Utility Relocations - - - - - - - - - - - - - - - - - - - - - - - - - $1,378,425 - - - - - - - - - - - - - - - - - - 3.66 - - - - - - - - - - - - - - - - - - - - 4.48 - - - - - - - - - - - - - 19% - - - - - - - - - - - - - - - - - - $256,306 -------------------------- 21 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - West Peak Flow Detention Lift Station and Pond - - - - - - - - - - - - - - - - - - - - - - - - - $3,846,360 - - - - ------------------------------------------ 0.00 3.66 - - - - - 59% - - - - - - - - - - - - - - - - - - $2,256,038 • - - - - - - - - - - - 22 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Westgate Heights Interceptor - - - - - - - - - - - - - - - - - - - - - - - - - $405,713 - - --------------------------------------------------- 2.89 3.61 34% - - - - - - - - - - - - - - - - $138,443 •--- - - - - -- -------------------------------------------------------------------------------------------------------------------------------------------------------------------- 23 Woodhaven Interceptor $256,016 0.80 0.88 5% $14,028 Zone 1 Total $147,672,908 $28,084,901 Zone 2 Proposed L Clear Creek Interceptor $8,496,199 341,900 11% $904,648 -------------------------- M - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Clear Creek WRP - - - - - - - - - - - - - - - - - - - - - - - - - $20,482,310 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 341,900 - - - - - - - - - - - - - 11% - - - - - - - - - - - - - - - - - - $2,334,301 Zone 2 Total $28,978,509 $3,238,948 Exhibit 3D Wastewater Capital Improvements Plan Cost Allocation Zone I with Infill Zone Impact Fee Name Cost Zone 1 Infill Cost Utilization Zone 1 Cost Utilization Infill Cost Carroll Ave Interceptor $472,799 8% $39,467 0% $0 100% $39,467 ---------- -------------------------- Cooper Creek Interceptor 1 $608,498 8% $50,543 100% -------------------------- $50,543 0% $0 Cooper Creek Interceptor 11 $1,293,395 8%- $99,492 17% $99,492 0% $0 Cooper Creek Interceptor M $1,239,878 4%- $55,619 100% $55,619 0% $83,289 Cooper Creek Interceptor IV $249,521 56-% $139,854 100% $139,154 0% SO-- -------------------------- Cooper Cree_l<_ Lift Facility ---------------- $1,543,050 ---------------- 39% -------------- $596,646 100% ................ $596,646 ------------------- 0% So-- _Station _Detention Dry Fork Hickory Creek Tributary I Interceptor $2,294,968 8% $192,413 100% ---------- $192,413 ------------------- 0% $O Elm Street Sewer Replacements $204,515 4% -------------------------- $9,186 0% $0 100% $9,186 ---------- Hickory Creek Interceptor 1 $4,494,098 25% $1,137,562 100% $1,137,562 0% $0 Hickory Creek Interceptor 11 -------------------------- $6,497,359 33% $2,138,617 ------------- 10-0% ------ $2,138,617 0% ----------------------- O -- Hickory Creek Interceptor M $7,247,205 39% $2,808,691 100% --------------- $2,808,691 0% So-- -------------------------- Hickory Creek Interceptor IV ----------------- $2,361,574 24-% ------------- $576,663 ---- 100% ---------- $576,663 ------------------- 0% SO-- - ------------------------ Hickory Creek Lift Station Detention Facility ---------------- $8,293,840 ---------------- 70% -------------- $5,809,794 100% ................ $5,809,794 ------------------- 0% $0 Hickory Creek 0 utfall $466,857 1%---. $3,782 100% $3,782 0% So-- - - - ------------------------------------ Pecan Creek Interceptor 11 ------------------ $3,114,198 9% ------------- $276,762 ------ 20% $55,352 ------------------- 80% $221,410 -------- ----------------- Pecan Creek Interceptor III $1,899,937 6% -------------------------- $122,254 23% $28,118 77% $94,136 --------- -------------------------- Pecan Creek Interceptor IV $1,436,302 11% $157,148 47% $73,860 53% $83,289 - - - - - - - Pecan Creek Interceptor V $3,124,089 6% $183,600 45% $82,620 - - - - 55% 100,980 --------- -------------------------- State School Interceptor 11 $4,551,156 2% $68,400 100% $68,400 0% $0 US 380 Utility Relocations $1,378,425 19% $256,306 74% $189,666 26% 6,639 ---------- -------------------------- West Peak Flow Detention Lift Station and Pond -------------------------- $3,846,360 59% - - - - - - $2,256,038 - - - - - - - - - - - - - - - 45% - - - - $1,015,217 55% $1,240,821 ------------------------------------------------------------ Westgate Heights Interceptor - - - - - - - - $405,713 - - - - - - - - - - - - - - - - - 34% ---------------- $138,443 100% ---------------- $138,443 0% $0 -------------------------- Woodhaven Interceptor -------------------------- $256,016 5%- - - - - - - $14,021 - - - - - - - - - - - - - - - 0% - - - - $0 ---------------------------------- 100% $14,028 ----------------------- South Wet Weather Lift Station' & Detention Pond ------------------ $1,552,898 10-% ----------------- $154,828 -------------------- 1 00% ------------- $154,828 ------- 0% $ o-- Cooper Creek Lift Station and Force Main ----------------- $2,150,236 --. 12% ............. $263,119 100% ---------------- $263,189 ------------------- 0% $0 Pecan Creek Interceptor (Ph I & 2) $3,363,189 8% $258,084 45% $116,138 55% $141,946 Cooper Creek Cutfall (Loop 288) $3,898,807 1% $48,472 100% $48,472 0% $0 Krum-Sewer-L-ine $398,450 28-% $111,343 100% ------------------------------------ $111,343 0% $0 ---------------------------------------- Graveyard Branch Interceptor ---------------- $5,004,952 ---- 2% ........... $99,389 100% $99,389 0% $0 Roark Branch Interceptor $854,774 53% $453,361 100% ------------------------------------ $453,361 0% $0 --------- -------------------------- State School Interceptor 1 $1,660,869 3% $46,455 100% $46,455 0% $0 --------- -------------------------- Pecan Creek Interceptor 1 $1,975,672 9% -------------------------- $177,933 9% $16,014 ----------------------------------- 91% $161,919 Totals $78,139,610 $18,704,896 $16,570,541 $2,173,821 EXHIBIT 4 20134023 I Capital improvements Plan for Water andi Wastewater Impact Fees Denton,, Texas MEMM=000137ne August2013 FURUC REVIEW DRAFf Prepared for the City of Denton by Duncan Associates Clancy Mullen, Project Manager 360 Nueces St., Suite 2701, Austin, TX 78701 512 -258 -7347 clancy;cx duncanassociates.com Table of Contents EXECUTIVESUMILARY .................................................................................. ..............................1 LEGALFRAMEWORK .................................................................................... ............................... 3 SERVICEAREAS ................................................................................................ ............................... 5 LAND USE ASSUMPTIONS ........................................................................... .............................12 Table 9. SERVICEUNITS ................................................................................................. ............................1-1 WATER.................................................................................................................. .............................15 Peak Day Water Demand, 2007 -2012 ............................................. .............................17 ServiceUnits ...................................................................................................... .............................15 Table 11. DemandProjections ........................................................................................ .............................16 N\,ater Treatment ............................................................................................... .............................18 Water Treatment Plant Utilization, 2013 -2023 .............................. .............................19 WaterSupply ..................................................................................................... .............................19 Table 13. Costper Service Unit ....................................................................................... .............................20 NetCost per Service Unit ............................................................................... .............................23 System -Hide Water Growth Costs, 2013 -2023 ............................. .............................21 NetCost Schedule ............................................................................................ .............................25 Table 15. WASTEWATER................................................................................................. ............................... 27 ServiceUnits ...................................................................................................... .............................27 Water Cost per Service Unit by Service Area ................................. .............................23 DemandProjections ........................................................................................ .............................28 Table 17. WastewaterTreatment ..................................................................................... .............................29 WastewaterConveyance .................................................................................. .............................30 Outstanding Water Debt Related to Excess Capacity ................... .............................24 Costper Service Unit ....................................................................................... .............................32 Table 19. NetCost per Service Unit ............................................................................... .............................33 NetCost Schedule ............................................................................................ .............................35 _APPENDIX: INTEREST CO STS ................................................................... .............................37 List of Tables Table 1. Current Adopted Impact Fees ............................................................. ..............................1 Table 2. Updated Impact Fees per Service Unit ............................................. ............................... 2 Table 3. Water Total and Served Population by Service Area, 2013- 2023 .. .............................12 Table 4. Wastewater Total and Served Population by Service Area, 2013 -2023 .....................13 Table 5. Meter Capacity Ratios .......................................................................... .............................14 Table 6. Water Service Units, 2013 ................................................................... .............................15 Table 7. Water Service Units, 2013 -2023 ......................................................... .............................16 Table 8. Summary of Water Service Unit Growth, 2013 -2023 ..................... .............................16 Table 9. Average Daily Water Production, 2007 - 2012 ................................... .............................17 Table 10. Peak Day Water Demand, 2007 -2012 ............................................. .............................17 Table 11. Average and Peak Day Retail Water Demand, 2013- 2023 ........... .............................18 Table 12. Water Treatment Plant Utilization, 2013 -2023 .............................. .............................19 Table 13. Water Supply Utilization, 2013- 2023 ............................................... .............................20 Table 14. System -Hide Water Growth Costs, 2013 -2023 ............................. .............................21 Table 15. Water Growth Costs by Service Area, 2013- 2023 ......................... .............................22 Table 16. Water Cost per Service Unit by Service Area ................................. .............................23 Table 17. Percent of Water Debt Related to Excess Capacity ...................... .............................23 Table 18. Outstanding Water Debt Related to Excess Capacity ................... .............................24 Table 19. Water Revenue Credit per Service Unit .......................................... .............................24 Table 20. Water Net Cost per Service Unit by Service Area ......................... .............................24 Table 21. Water Net Cost Schedule .................................................................. .............................25 Table 22. Comparative Water Impact Fee Revenues, 2013- 2023 ................. .............................25 Table 23. Water Growth Costs and Revenues, 2013- 2023 ............................ .............................26 Table 24. Wastewater Service Units, 2013 ....................................................... .............................27 Table 23. Wastewater Service Units, 2013- 2023 .............................................. .............................28 Table 26. Per Capita Wastewater Demand ....................................................... .............................28 Table 27. Projected Wastewater Demand, 2013- 2023 .................................... .............................29 Table 28. Wastewater Treatment Plant Utilization, 2013- 2023 ..................... .............................30 Table 29. Wastewater Conveyance Capacities and Flows, 2013- 2023 ......... .............................31 Table 30. Wastewater Growth Costs by Service Area, 2013- 2023 ............... .............................32 Table 31. Wastewater Cost per Service Unit by Service Area ....................... .............................33 Table 32. Percent of Wastewater Debt Related to Excess Capacity ............ .............................34 Table 33. Outstanding Wastewater Debt Related to Excess Capacity ......... .............................34 Table 34. Wastewater Revenue Credit per Service Unit ................................. .............................34 Table 35. Wastewater Net Cost per Service Unit by Service Area ............... .............................35 Table 36. Wastewater Net Cost Schedule ........................................................ .............................35 Table 37. Comparative Wastewater Impact Fee Revenues, 2013- 2023 ....... .............................36 Table 38. Wastewater Growth Costs and Revenues, 2013- 2023 .................. .............................36 Table 39. Outstanding Utility Debt Service ..................................................... .............................37 List of Figures Figure 1. Water CCN and Wholesale Customers ............................................. ..............................6 Figure 2. Wastewater CCN and Wholesale Customers ................................... ..............................7 Figure 3. Current Water Service Areas ............................................................. ............................... 8 Figure 4. Current Wastewater Service Areas ..................................................... ..............................9 Figure 5. Potential Water and Wastewater Zone IA Service Area ............... .............................10 Figure 6. Potential Zone IA Service Area and Water CCN .......................... .............................11 EXECUTIVE SUMMARY Duncan Associates has been retained by the City of Denton to update the City's water and wastewater impact fees. Land use assumptions that provide the planning basis for the impact fee analysis were prepared by the City- of Denton Planning Department and are provided in a separate document. This report provides all of the analysis for the impact fee Capital Improvements Plan required by Chapter 395, the Texas impact fee enabling act. It is based on cost and demand /capacity- analysis prepared by Freese & Nichols engineers and City- staff engineers. The City's current water and wastewater impact fees are summarized in Table 1. In the last update of the City's utility impact fees, which became effective on August 1, 2008, the City moved from a single service area for both water and wastewater to tvo service areas. The tvo service areas are somewhat different for water and wastewater. The maximum fees calculated in the 2008 study were adopted at somewhat different percentages for the tvo service areas. For water, the fees were adopted at 9-1.6° o of the maximum amount in Zone 1 and 94.40,o in Zone 2. For wastewater, the fees were adopted at 91.1° o in Zone 1 and 99.90,o in Zone 2. Table 1. Current Adopted Impact Fees Water Impact Fees 5/8" 0/4" $3,594 $4,237 $3,400 $4,000 94.6% 94.4% 3/4" $5,391 $6,356 $5,100 $6,000 94.6% 94.4% 1" $8,985 $10,593 $8,500 $10,000 94.6% 94.4% 11/2" $17,970 $21,185 $17,000 $20,000 94.6% 94.4% 2" $28,752 $33,896 $27,200 $32,000 94.6% 94.4% Wastewater Impact Fees 5/8" 0/4" $1,867 $1,762 $1,700 $1,760 91.1% 99.9% 3/4" $2,801 $2,643 $2,550 $2,640 91.1% 99.9% 1" $4,668 $4,405 $4,250 $4,400 91.0% 99.9% 1 1/2" $9,335 $8,810 $8,500 $8,800 91.1% 99.9% 2" $14,936 $14,096 $13,600 $14,080 91.1% 99.9% Source: Fees calculated in 2008 study from Duncan Associates, 2008 -2018 Capita/ Improvements Plan for Water and Wastewater Impact Fees, April 2008; adopted fees from City of Denton Code of Ordinances, Sec. 26.22. The City Council has the option of retaining the current tvo -zone structure or moving to a three - zone structure that includes an "infill" zone by splitting Zone 1 into Zone IA ( infill) and Zone 1B (remainder). Table 2 below compares the current adopted fees to the updated maximum fees calculated in this study for both of these options. City of IIDenton, iX III PURUC REVIEW 1)RAIT ��st �.��rr assc�ciates 2013 -2023 Capital Improvements Plan 1 August 15, 2013 Executive Summary Table 2. UDdated Imaact Fees Der Service Unit Zone 1 Water Service Area $3,400 $4,593 35% Zone 1A (Infill) Water Service Area n/a $3,167 -7% Zone 1 B (Remainder) Water Service Area n/a $5,250 54% Zone 2 Water Service Area $4,000 $5,753 44% Potential Water Fee Revenue ($ millions), 2013 -2023 $40.1 $55.0 37% Zone 1 Wastewater Service Area $1,700 $3,175 87% Zone 1A (Infill) Wastewater Service Area n/a $1,285 -24% Zone 1 B (Remainder) Wastewater Service Area n/a $4,010 136% Zone 2 Wastewater Service Area $1,760 $1,400 -20% Potential Wastewater Fee Revenue ($ millions), 2013 -2023 $16.5 $27.5 67% Source: Current fees per service unit are adopted fees for 5/8" x 3/4" meter from Table 1; updated maximum fees per service unit from Table 20 (water) and Table 35 (wastewater); revenues from Table 22 (water) and Table 37 (wastewater). In the adoption of updated water and wastewater impact fees, the Council has three main sets of options: ❑ The Council may retain the current two Zone 1 and Zone 2 service areas, or split Zone 1 into infill (Zone IA) and remainder (Zone 113) service areas. ❑ The Council may, by policy, adopt the updated maximum fees at a percentage less than 100 percent. In addition, the adoption percentage could vary by service area, as in the 2008 update. ❑ The Council may adopt different Schedule 1 (maximum) and Schedule 2 (collection) fees. Schedule 1 fees are those that are assessed at time of final subdivision plat recording; and determine the maximum fees that may ever be collected from lots within the plat. Currently, the Schedule 1 and Schedule 2 rates shown in the impact fee ordinance are identical. In this update, the schedules could be different, with Schedule 1 fees being the maximum fees calculated in this report and Schedule 2 fees being fees adopted at some percentage less than 100 percent. _adoption percentages may vary by service area, as was done in the 2008 update. However, the fees should be adopted at a uniform percentage for all meter sizes within a service area. The last option was less important in the 2008 update, since the lowest adoption percentage was 91"o of the maximum fee. However, if updated fees for any service area are adopted at a significantly lower percentage, it is recommended that the Schedule 1 fees represent the maximum fees. This would give future Councils the option of increasing the collection rate for lots that were platted at a time when the collection rate was significantly- lower than the full net cost to serve a new customer. City of IIDenton, " "III PUBLIC REVIEWDRAh°I' ��st �.��rr assc�ciates 2013 -2023 Capital Improvements Plan 2 August 15, 2013 LEGAL FRAMEWORK Impact fees are a way for local governments to require new developments to pay a proportionate share of the infrastructure costs they impose on the community. In contrast to traditional "negotiated" developer exactions, impact fees are charges that are assessed on new development using a standard formula based on objective characteristics , such as the number and type of dwelling units constructed. The fees are one -time, up -front charges, with the payment usually made at the time of building permit issuance. Impact fees require each new development project to pay its pro - rata share of the cost of new capital facilities required to serve that development. Impact fees in Texas must be developed in accordance with Chapter 395 of the Texas Local Government Code. The State law lays out very specific requirements for the technical development of these fees as well as the procedures necessary for enactment of such fee programs. Since the 2001 amendments to Chapter 395, credits against the impact fees for other taxes or fees that would be paid by new development and used for capital improvements of the same facility type as the impact fee are now required. As an alternative to performing a revenue credit calculation, cities can simply reduce the impact fees by fifth- percent. A literal reading of subsection A above could be misleading, because it would mare little sense to calculate a credit for the eligible improvements in the capital improvements plan. Since new development will be paying for such costs through impact fees, no rate revenues should be needed to fund such improvements if impact fees are adopted at the full calculated amounts. However, one can read the phrase "capital improvements plan" more broadly to include all existing facilities (Chapter 395 does require that the plan include an inventory of existing facilities). New customers will be paying for the remaining debt service on past improvements, and if no credits were provided they would in effect be paying for their costs through impact fees and some of existing customers' costs through the portion of their rates that go to debt retirement. To avoid this kind of potential double - payment, credit will be provided for the share of outstanding debt that is attributable to capacity that is serving existing customers. In addition, some of the planned improvements will also remedy some capacity- deficiencies, and an impact fee credit is provided for rate revenue that new customers will generate that will be retire debt associated with remedying existing deficiencies. Revised impact fees based on this study will not apply to lots platted when a previous fee schedule was in place. Chapter 395 states that the impact fee schedule that is in effect at the time a lot is platted is the one that applies to the property, regardless of when development occurs. This occurs through a process called "assessment." Assessment must occur at the time of plat recording, or, for property already platted or not required to be platted, at the time of development approval or building permit, whichever occurs first. The statute makes clear that no action by the local government is required for assessment to occur. Essentially, impact fee assessment locks in the fee schedule in place at the time assessment occurs. Any subsequent revision to the impact fee schedules does not affect the impact fees owed for the development. The City's water and wastewater impact fees ordinance (Chapter 26, Article IN� provides two water and wastewater impact fee schedules. Schedule 1 contains the maximum impact fees per service unit, while Schedule 2 contains the impact fee per service unit that is currently being collected. N\'hen a property is subdivided, it is assessed at the maximum Schedule 1 rate, and the impact fees Uty of IIDenton, "III PUBLIC REVIEWDRAh°I' ��st �.��rrassc�ciates 2013 -2023 Capital linproveinents Plan 3 August 15, 2013 Legal Framework that are assessed at platting represent the maximum fee per service unit that can be collected from the subdivided property. The ordinance also contains the historical Schedule 1 fees that apply- to property that was subdivided when the previous Schedule 1 fees «%ere in place. Currently, the Schedule 1 and Schedule 2 rates are identical. In this update, the schedules could be different, with Schedule 1 fees being the maximum fees calculated in this report and Schedule 2 fees being fees adopted at some percentage less than 100 percent. _adoption percentages may vary by service area, as was done in the 2008 update. However, the fees should be adopted at a uniform percentage for all meter sizes within a service area. Oty of IIDenton, "III PUBLIC REVIEWDRAh°I' ��st �.��rrassc�ciates 2013 -2023 Capital linproveinents Plan 4 August 15, 2013 SERVICE AREAS Chapter 395 lays down a number of requirements rep arding service areas. The Land Use Assumptions must be prepared for each service area. The Capital Improvements Plan, in turn, must include a description of the capital improvements and costs for each service area, based on the Land Use Assumptions. Finally, impact fees collected from development within a service area must be spent with the same service area. The Texas impact fee enabling act, in Sec. 395.001(9), defines "service area" as: the area within the corporate boundaries or extraterritorial jurisdiction... of the political subdibision to be served by the capital improvements or facilities expansions specified in the capital improvements plan.... The seniee area, for the puaposes of this chapter; may, include all or past of the lald viMill the political subdirisio i oritr eNha/oe iNialjmisdictio a. The City has considerable discretion in the designation of service areas within its jurisdiction. As a general rule, the fewer the number of service areas, the better. Since funds collected from a service area must be spent within the same service area, the creation of a large number of small service areas will restrict the flexibility of spending impact fee revenues and may mare it difficult accumulate sufficient funds in some service areas within the fire years allowed by law to spend them. The State statute specifically authorizes "systemwide" Land Use Assumptions for water and wastewater facilities. A Certificate of Convenience and Necessit< (CCN) must be appro�-ed by the Texas Commission on Environmental Quality formerly the Texas Natural Resources Conservation Commission) before services may be provided to properties within the designated area. The City's water and wastewater CCNs include all of the area within the City of Denton, plus different areas of the City's Extra - Territorial Jurisdiction (ETJ). The wastewater service area encompasses an area larger than the water service area. The water and wastewater CCNs are illustrated in Finire 1 and Figure 2. The CCN maps also show the location of the City's wholesale customers. No costs associated with providing service to wholesale customers have been included in the impact fee calculations. Oty of IIDenton, "III PUBLIC REVIEWDRAh°I' ��st �.��rrassc�ciates 2013 -2023 Capital Improvements Plan 5 August 15, 2013 Service Areas rigure i. vvaier ut-im ana vvnoiesaie %- usiomers Oty of Denton, "III PUBLIC REVIEWDRAh°I' ��st �.��rrassc�ciates 2013 -2023 Capital Improvements Plan 6 August 15, 2013 re Z. wastewater (;(;N and wholesale Customers Argyle Corinth Krum City of Denton Wastewater CCN Service Areas 0� - ------ LAKE RAY ROBERTS City o IlDen ton, "III'" X PUBLIC REVIEW DRMIT 111cl, ates 2013-2023 Capital Improvements Plan 7 August 15, 2013 Service Areas The City's water and wastewater CCNs are currently each divided into two service areas. The Zone 1 and Zone 2 water service areas are shown in Figure 3. For wastewater, the CCN is currently- divided into two service areas, although there are as yet no City- wastewater customers in Zone 2. Zone 2 is the Clear Creep drainage basin, while the rest of the City falls into Zone 1 (Pecan Creek, Hickory Creek and Cooper Creek basins). The current wastewater Zone 1 and Zone 2 service areas are shown in Figire 4. City of IIDenton, "III PUBLIC REVIEWDRAh°I' ��st �.��rrassc�ciates 2013 -2023 Capital Improvements Plan 8 August 15, 2013 Service Areas Figure 4. Current Wastewater Service Areas _. f 11 1 t 1 J- Fiu�fbrll7w $ '� iii �� i [ viii /i ✓ 1 ii LI_ l E f iiai iiiiiiiii E` 1 ��<+ �, r � , _.�i Sc I s _ 4 q s, V 7 L� { LI f G r it�i 1 f t� nn , r I 4 6 y, A, 1H301J IUM� 1 , A "'Y T f i This update provides the City- with the option of dividing the current water and wastewater Zone 1 service areas into Zone 1A, which is the City's adopted Infill District, a special purpose zoning district, and Zone 1B, which is the remainder of the current Zone 1 service areas. The potential Zone 1A service area is shown in Figure 5. City of IIDenton, IX 111cl, ���.��rrassc�ciates 2013 -2023 Capital Improvements Plan 9 August 15, 2013 Service Areas Figure 5. Potential Water and Wastewater Zone 1A Service Area d,k IIIIIIIIIII VIII IIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Oty of Denton, "III PUBLIC REVIEWDRAh°I' ��lst ,;,.��rrlass�c�ciates 2013 -2023 Capital Improvements Plan 10 August 15, 2013 Service Areas The location of the potential Zone 1A service area is illustrated in the context of the City's water CCN in Figure 6. rigure o. rozenvai cone 1A aervice Area ana waxer uum s, f w, t�+r ear ROSE(? F ' I i a I 1 ° r I - - a I, l %� 1 — _ I 1e C r P f J "% 4 „F # r �� w 1I J ` . RR y9ry� FJ If >> y 1 i<_t i { uuuum um uuuuuuuu uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuum uuuuuuuuuuuuuuuuuuuuuuuuuuu uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuum Uty of IIDenton, "III PUBLIC REVIEW DRMIT 111cl, ates 2013 -2023 Capital Improvements Plan 11 August 15, 2013 LAND USE ASSUMPTIONS "Land Use Assumptions" is the term used in Chapter 395 to refer to growth projections. It is defined as a "description of the service area and projections of changes in land uses, densities, intensities and population in the service area over at least a 10 -year period." The purpose of the Land Use Assumptions is to project the demand for capital improvements that will be needed to serve anticipated growth. The Land Use Assumptions must cover at least a 10 -year period. The Capital Improvements Plan on which the impact fees are calculated must contain the projected demand for capital facilities required over a period not to exceed ten years. Since the two must be compatible, both the Land Use Assumptions and the Capital Improvements Plan should cover a 10 -year period. A document meeting the Chapter 395 requirements for Land Use Assumptions was prepared by City- planning staff in July 2013. The report contains 2013 -2023 projections for population dwelling units nonresidential square footage developed and undeveloped acres residential densities and nonresidential intensities for the City's current and potential water and wastewater service areas. For the purpose of the Capital Improvements Plan, the key inputs from the Land Use Assumptions are the projections total population and served population (retail customer population connected to the City's water or wastewater systems). These are summarized in Table 3 for the water service areas. Table 3. Water Total and Served Population by Service Area, 2013 -2023 2013 49,624 49,128 68,426 67,742 2,282 2,259 120,332 119,129 99.0% 2014 50,140 49,639 69,715 69,017 2,282 2,259 122,137 120,915 99.0% 2015 50,655 50,148 71,032 70,322 2,282 2,259 123,969 122,729 99.0% 2016 51,171 50,659 71,762 71,044 2,282 2,259 125,215 123,962 99.0% 2017 51,753 51,235 73,058 72,328 2,282 2,259 127,093 125,822 99.0% 2018 52,784 52,256 74,437 73,692 2,414 2,390 129,635 128,338 99.0% 2019 53,684 53,147 75,866 75,108 2,677 2,650 132,227 130,905 99.0% 2020 54,134 53,593 77,667 76,890 3,071 3,040 134,872 133,523 99.0% 2021 54,584 54,038 79,035 78,245 3,950 3,911 137,569 136,194 99.0% 2022 54,944 54,395 79,973 79,173 5,404 5,350 140,321 138,918 99.0% 2023 55,304 54,751 80,744 79,937 7,079 7,008 143,127 141,696 99.0% Source: City of Denton Planning and Development Department, "Land Use Assumptions for Impact Fee Assessments," July 2013; system -wide total and served population from Exhibit 1.C, Table 1; percent served is ratio of system -wide served to total population; total Zone 1A population from Exhibit 4, Table 1; total Zone 2 population from Exhibit 3, Table 1; Zone 1A and Zone 2 served populations are the product of total population and % served; Zone 1B total and served populations are the residuals. Total and served population projections for the wastewater service areas are summarized in Table 4 below. City of IIDenton, IX REVIEWI1BAh°I' ��st F�.��rr assc�ciates 2013 -2023 Capital Irnprovernents Plan 12 August 15, 2013 Land Use Assumptions Table 4. Wastewater Total and Served Population by Service Area, 2013 -2023 2013 49,624 49,128 68,525 67,839 1,596 1,580 119,745 118,547 99.0% 2014 50,140 49,639 69,805 69,107 1,596 1,580 121,541 120,326 99.0% 2015 50,655 50,148 71,113 70,403 1,596 1,580 123,364 122,131 99.0% 2016 51,171 50,659 71,834 71,116 1,596 1,580 124,601 123,355 99.0% 2017 51,753 51,235 73,121 72,390 1,596 1,580 126,470 125,205 99.0% 2018 52,784 52,256 74,619 73,873 1,596 1,580 128,999 127,709 99.0% 2019 53,684 53,147 76,299 75,536 1,596 1,580 131,579 130,263 99.0% 2020 54,134 53,593 77,954 77,174 2,123 2,102 134,211 132,869 99.0% 2021 54,584 54,038 79,399 78,605 2,912 2,883 136,895 135,526 99.0% 2022 54,944 54,395 80,463 79,658 4,226 4,184 139,633 138,237 99.0% 2023 55,304 54,751 81,384 80,569 5,738 5,681 142,426 141,001 99.0% Source: City of Denton Planning and Development Department, "Land Use Assumptions for Impact Fee Assessments," July 2013; system -wide total and served population from Exhibit 1.C, Table 1; percent served is ratio of system -wide served to total population; total Zone 1A population from Exhibit 4, Table 1; total Zone 2 population from Exhibit 2, Tables 1 -3; Zone 1A and Zone 2 served populations are the product of total population and % served; Zone 1B total and served populations are the residuals. Oty of IIDenton, IX REVIEWDRAh°I' ��st F�.��rr assc�ciates 2013 -2023 Capital Irnprovernents Plan 13 August 15, 2013 SERVICE UNITS To calculate impact fees in accordance with Chapter 395, the growth in demand for capital facilities over the planning horizon must be expressed in "service units," which are defined in Sec. 395.001(10) as: ... a standardi .Zed measure of consumption, use, generation, or discharge attributable to an indizndual unit of der elopnlelit calculated ila acconlance ll'itlrgelmally accepted eligineoily orplannin; sl�mdanls for a paltieular cate;oly' f eaftalimpmr'eyllel ?ti of fda7lity L'.fal?.lZOns. Service units for water and wastewater impact fees are tv ically based upon the capacity attributable to water meters in the utility- system. The reason for this is that water meters are physical elements that are under the control of the utility and that limit the maximum demand of various users. The service unit for Denton's water and wastewater impact fees is the "single- family equivalent" (SFE), which is based on the size of the water meter. An SFE is the water or wastewater demand associated with the smallest water meter used in the system (5/8" x 3/4 "), which is the meter typically used by a single - family residence. The ratio of each larger meter's capacity to the capacity of the base meter determines the SFE multiplier applied to each larger meter size. The City's original water and wastewater impact fees were based on meter capacities from the American Water Works Association. In the opinion of the City's water division staff, the capacities as rated by the manufacturer that supplies the City's meters are more accurate for larger meters, and have been used since the 2003 update. The current SFE equivalency factors are shown in Table 5. Table 5. Meter Capacity Ratios 5/8" x 3/4" 1.0 3/4" 1.5 1" 2.5 1 -1/2" 5.0 2" 8.0 3" 22.5 4" 50.0 6" 100.0 8" 200.0 10" 325.0 Source: City of Denton Code of Ordinances, Chapter 26, Article IV, Exhibit F. When impact fees are collected, the amount due is calculated by multiplying the number of service units associated with each meter size by the impact fee per service unit. However, some additional rules apply. The developer may submit or the water utilities director may require the preparation of a study to determine the appropriate number of service units. Multi- family projects with more than eight apartments are assessed at the rate of 0.26 service units per bedroom. Infill development, defined as single- family residences of less than 1,300 square feet and located on a lot of less than 6,000 square feet in the water Zone 1 or wastewater Zone 1 service areas, is assessed at the rate of 0.50 service units per dwelling unit. City of Denton, IX REVIEW 1)RAIT �� °t a �sy.n�rr assc�ciates 2013 -2023 Capital Improvements Plan 14 August 15, 2013 WATER Denton's water system provides retail water service to all customers located within the CCN area, as well as some wholesale customers. The water impact fees calculated here only cover capital costs associated with providing water service to retail customers. Service Units As discussed in the introduction, the current service unit for Denton's water impact fees is the "single- family equivalent" (SFE), which is based on the size of the water meter. The number of service units associated with meters of different sizes was calculated earlier. Multiplying the number of existing connections for each meter size by the service units per meter yields total service units for that meter size. Summing for all meter sizes yields the total number of water service units connected to the City's water system, as shown in Table 6. Wholesale customers have been excluded from the existing service unit calculations. Table 6. Water Service Units, 2013 5/8" x 3/4" 28,943 1.0 28,943 1" 1,393 2.5 3,483 1 -1/2" 816 5.0 4,080 2" 1,309 8.0 10,472 3" 254 22.5 5,715 4" 64 50.0 3,200 6" 13 100.0 1,300 8" 11 200.0 2,200 10" 2 325.0 650 Total SFEs 60,043 Total Served Population, 2013 119,129 SFEs per Served Population 0.5040 Source: Number of average active non - wholesale water connections by meter size from City of Denton Municipal Utilities, February 13, 2013; SFEs per meter from Table 5; total 2013 served water population from Land Use Assumptions (see Table 3 above). The growth in water service units (SFEs) over the 2013 -2023 planning period is derived from the Land Use Assumptions. Total population served by the Denton Utilities water system for each service area from the Land Use Assumptions is multiplied by the existing service unit -to- served population ratio calculated in the previous table to determine the projected number of service units for each year through 2023 in Table 7. Service units are estimated by service area (including for the potential "infill" service area) as well as the entire system. City of IIDenton, iX III PURUC REVIEW 1)RAh°I' ��st y.��rr assc�ciates 2013 -2023 Capital Irnprovernents Plan 15 August 15, 2013 Water Table 7. Water Service Units, 2013 -2023 2013 49,128 24,761 67,743 34,143 2,259 1,139 119,129 60,043 2014 49,639 25,018 69,017 34,785 2,259 1,139 120,915 60,942 2015 50,148 25,275 70,322 35,442 2,259 1,139 122,729 61,856 2016 50,659 25,532 71,044 35,806 2,259 1,139 123,962 62,477 2017 51,235 25,822 72,328 36,453 2,259 1,139 125,822 63,414 2018 52,256 26,337 73,692 37,141 2,390 1,205 128,338 64,683 2019 53,147 26,786 75,108 37,854 2,650 1,336 130,905 65,976 2020 53,593 27,011 76,890 38,753 3,040 1,532 133,523 67,296 2021 54,038 27,235 78,245 39,435 3,911 1,971 136,194 68,641 2022 54,395 27,415 79,173 39,903 5,350 2,696 138,918 70,014 2023 54,751 27,595 79,937 40,288 7,008 3,532 141,696 71,415 Source: Served population from City of Denton, Land Use Assumptions (see Table 3); service units (Single - Family Equivalents or SFEs) is product of served population and 2013 ratio of SFEs /served population from Table 6. The projected growth in water service units over the 10-year planning horizon is summarized in Table 8 for each service area. Table 8. Summary of Water Service Unit Growth, 2013 -2023 Zone 1A (Infill) 24,761 27,595 2,834 25% Zone 1B (Rest) 34,143 40,288 6,145 54% Zone 2 1,139 3,532 2,393 21% Total 60,043 71,415 11,372 100% Source: Table 7 Demand Projections Two types of water demand are relevant for water impact fees. Water treatment, transmission and distribution systems are sized to accommodate pear dad- demand requirements. Water supply- facilities are required only to accommodate average daily- demand. Average daily- per capita water demand can be determined based on historic system -wide demand in millions of gallons per dad- (mgd) and historic service area population. These per capita estimates represent both residential and nonresidential demand, and are useful for projecting future system requirements, particularly- when no significant shifts of land use ratios are expected. Average daily- per capita demands over the last six rears are presented in the following Table 9. These data show that non - wholesale water demand has averaged 158 gallons per capita per dad- (gpcd). The data also indicate that there is relatively little water lost in the process, with the raw water used exceeding finished water produced by an average of only 3"o percent. City of IIDenton, iX III PURUC REVIEW I1RAh°I' ��st y.��rr assc�ciates 2013 -2023 Capital Irnprovernents Plan 16 August 15, 2013 Table 9. Avera Daily Water Production, 2007 -2012 Water 2007 15.679 0.214 15.894 0.002 15.896 1.000 108,674 144 2008 17.720 0.264 17.984 0.308 18.292 1.017 111,362 162 2009 16.704 0.311 17.015 0.714 17.729 1.042 113,464 153 2010 16.758 0.256 17.014 0.565 17.578 1.033 115,055 150 2011 19.638 0.298 19.936 0.961 20.897 1.048 116,206 177 2012 18.167 0.278 18.445 0.770 19.215 1.042 117,368 161 Average 17.444 0.270 17.715 0.553 18.268 1.030 113,688 158 Source: Average daily water production and 2007 -2010 total water CCN population from City of Denton Municipal Utilities, February 13, 2013; 2007 -2010 served population is 99% of total population; 2011 -2012 served population from City of Denton Planning and Development Department, "Land Use Assumptions for Impact Fee Assessments," July 2013; retail demand (gpcd) determined by multiplying retail consumption (in gpd) by ratio of raw to finished water, then dividing by served population. Peak day- demand over the last six rears is compared to average daily- demand in Table 10. These data indicate that peak day demand in Denton's water system averages 1.86 times average dap demand. Table 10. Peak Day Water Demand, 2007 -2012 2007 30.24 15.89 1.90 2008 33.05 17.98 1.84 2009 31.01 17.01 1.82 2010 31.87 17.01 1.87 2011 37.52 19.94 1.88 2012 34.52 18.44 1.87 Average 33.04 17.71 1.86 Source: City of Denton Municipal Utilities; figures represent total finished water production (includes wholesale use). Based on these historical factors, average and peak day water demand from retail customers is projected for the 2013 -2023 planning period in Table 11 on the following page. City of IIDenton, IX REVIEW1)RAIT ��st y.��rr assc�ciates 2013 -2023 Capital Irnprovernents Plan 17 August 15, 2013 Water 2013 119,129 158 18.82 1.030 19.38 1.86 36.05 2014 120,915 158 19.10 1.030 19.67 1.86 36.59 2015 122,729 158 19.39 1.030 19.97 1.86 37.14 2016 123,962 158 19.59 1.030 20.18 1.86 37.53 2017 125,822 158 19.88 1.030 20.48 1.86 38.09 2018 128,338 158 20.28 1.030 20.89 1.86 38.86 2019 130,905 158 20.68 1.030 21.3 1.86 39.62 2020 133,523 158 21.10 1.030 21.73 1.86 40.42 2021 136,194 158 21.52 1.030 22.17 1.86 41.24 2022 138,918 158 21.95 1.030 22.61 1.86 42.05 2023 141,696 158 22.39 1.030 23.06 1.86 42.89 Source: Served population from Table 7; average day per capita demand and ratio of raw to finished water production from Table 9; ratio of peak day to average day finished water production from Table 10; raw water and peak day demand exclude demand due to wholesale customers. Water Treatment N\,ater treatment facilities are sized to accommodate peak dad- demands. The maximum daily- capacity- of the Labe Lewisville water treatment plant (WIP) is 28.9 m�gd. In June 2003, the City- completed constniction of a new 20 mgd water treatment plant near Labe Rai- Roberts, bringing the total capacity- of the tvo plants to 48.9 mgd. As summarized in Table 12, current retail demand plus wholesale water sales consumes the equivalent of all of the capacity- of the Labe Lewisville plant and 38.3 "o percent of the existing; 20- mgd Labe Rai- Roberts plant. New water customers over the next ten rears will increase the utilization of the Labe Rai- Roberts plant capacity- to 72.50ro. City of IIDenton, "III PUBLIC REVIEWDRAh°I' ��st �.��rr assc�ciates 2013 -2023 Capital Irnprovernents Plan 18 August 15, 2013 Water Table 12. Water Treatment Plant Utilization, 2013 -2023 Retail Peak Day Demand (mgd), 2013 36.05 Wholesale Peak Day Demand (mgd), 2013 0.50 Total Current Demand (mgd), 2013 36.55 — Lake Lewisville Plant Capacity (mgd) -28.90 Needed Capacity from Lake Ray Roberts Plant (mgd) 7.65 Existing Lake Ray Roberts Plant Capacity (mgd) 20.00 Percent of Existing Lake Ray Roberts Plant Needed, 2013 38.3% Retail Peak Day Demand, 2023 (mgd) 42.89 Wholesale Peak Day Demand (mgd), 2023 0.50 Total Peak Day Demand (mgd), 2023 43.39 — Lake Lewisville Plant Capacity (mgd) -28.90 Needed Capacity from Lake Ray Roberts Plant (mgd), 2023 14.49 Existing Lake Ray Roberts Plant Capacity (mgd) 20.00 Percent of Lake Ray Robert Plant Capacity Needed, 2023 72.5% Percent of Lake Ray Robert Plant Capacity Needed, 2023 72.5% — Percent of Lake Ray Roberts Capacity Needed, 2013 -38.3% Percent of Lake Ray Roberts Capacity Needed, 2013 -2023 34.2% Source: 2013 and 2023 average day water demand from Table 11; plant capacities from City of Denton Municipal Utilities. Water Supply The City's water supply comes primarily from water rights in Lake Lewisville and Lake Ray Roberts. The Lewisville Reservoir was constricted by the U.S. Corps of Engineers to hold a total of 436,000 acre -feet of conservation storage, of which the City holds the right to 21,000 acre -feet of storage. Based on a safe yield of 902 mgd, the City receives 4.34 mgd in water rights from Lake Lewisville. Most of the City's remaining water needs are supplied by Lake Ray Roberts. The reservoir was constricted by the U.S. Corps of Engineers, with the cities of Denton and Dallas being the local sponsors and responsible (26 "o and 740ro respectively) for repaying 50 percent of the total cost. The City has water rights of 19.8 mgd from this lake, resulting in total water rights of 24.1 mgd. Additional water supply capacity comes in the form of credits for a portion of other user's wastewater that is returned to these water bodies ( "effluent credits "), as well as contract rights with the City of Dallas. The City's contract with Dallas reserves a minimum of 0.50 mgd, regardless of whether the City needs it, and the City- also has the right to purchase additional water as needed. However, these additional sources of supply will not be considered in evaluating the City's water supply. The City's water supply is summarized in Table 13. Projected growth over the planning period will consume most of the current excess capacity in Lake Ray Roberts. City of IIDenton, " "III PUBLIC REVIEWDRAh°I' ��st y.��rr assc�ciates 2013 -2023 Capital Improvements Plan 19 August 15, 2013 Water Table 13. Water Supply Utilization, 2013 -2023 Total Average Day Raw Water Demand (mgd), 2013 19.65 — Lake Lewisville Capacity (mgd) -4.34 Needed Capacity from Lake Ray Roberts, 2013 15.31 Lake Ray Roberts Capacity (mgd) 19.76 Percent of Lake Ray Roberts Capacity Needed, 2013 77.5% Total Average Day Raw Water Demand (mgd), 2023 23.33 — Lake Lewisville Capacity (mgd) -4.34 Needed Capacity from Lake Ray Roberts, 2023 18.99 Lake Ray Roberts Capacity (mgd) 19.76 Percent of Lake Ray Roberts Capacity Needed, 2023 96.1% Percent of Lake Ray Roberts Capacity Needed, 2023 96.1% — Percent of Lake Ray Roberts Capacity Needed, 2013 -77.5% Percent of Lake Ray Roberts Capacity Needed, 2013 -2023 18.6% Source: 2013 and 2023 average day raw water demand is retail raw water demand from Table 11 plus 0.27 mgd average wholesale demand from Table 9; lake capacities from City of Denton Municipal Utilities. Cost per Service Unit Capital improvements identified in the City's water master plan and by City staff as necessary to accommodate growth over the next ten years are summarized in Table 14. The capital improvements include both existing facilities with excess capacity to serve new customer demand as well as planned improvements The portions of the costs of the Lake Ray Roberts treatment plant and the Lake Ray Roberts reservoir that are attributable to growth Dyer the planning period are based on the c<pacit< of the facilities and the new demand generated by the anticipated growth over the period. For pump stations, water storage tanks and transmission lines, the portions of the costs attributable to growth are based on determination of existing and planned facility- capacities and modeling of 2013 and 2023 demands performed by consulting engineers for the City of Denton. A portion of the cost of three of the planned improvements will serve existing customers, and these are identified as existing deficiencies. City of IIDenton, " "III PUBLIC REVIEWDRAh°I' ��st y.��rr assc�ciates 2013 -2023 Capital Improvements Plan 20 August 15, 2013 Water Table 14. System -Wide Water Growth Costs, 2013 -2023 Lake Ray Roberts $153,306,163 77.5% 96.1% 18.6% $28,514,946 $0 Lake Ray Roberts Water Treatment Plant $56,445,235 38.3% 72.5% 34.2% $19,304,270 $0 54" Transmission Line $9,590,299 30.0% 45.0% 15.0% $1,438,545 $0 Loop 288 Water Main, Sherman -UNT $4,361,849 25.0% 40.0% 15.0% $654,277 $0 Loop 288 Water Main, Sherman -380 $3,518,352 25.0% 40.0% 15.0% $527,753 $0 NW Elevated Storage Tank $2,339,988 30.0% 60.0% 30.0% $701,996 $0 SW Pump Station $5,912,002 20.0% 40.0% 20.0% $1,182,400 $0 SW PS Oversize Discharge Line (30 -36 ") $284,477 5.0% 10.0% 5.0% $14,224 $0 Vintage Oversize Line (12 -20 ") $254,269 25.0% 60.0% 35.0% $88,994 $0 North -South Water Line, Phase 1 $6,038,601 25.0% 35.0% 10.0% $603,860 $0 Roselawn Elevated Storage Tank $6,299,440 75.0% 85.0% 10.0% $629,944 $0 Roselawn Water Line $1,797,363 30.0% 55.0% 25.0% $449,341 $0 Masch Branch Rd Water Line Extension $645,781 15.0% 30.0% 15.0% $96,867 $0 US 380 Urban Utility Relocation $1,519,926 25.0% 30.0% 5.0% $75,996 $0 Rayzor Ranch Oversize Line (16 -20 ") $133,226 10.0% 25.0% 15.0% $19,984 $0 Subtotal, Existing Eligible Projects $252,446,971 na na na $54,303,397 $0 North -South Water Line, Phase 11 $5,380,772 0.0% 35.0% 35.0% $1,883,270 $0 1 -35 Parallel Line Crossing $1,959,552 15.0% 30.0% 15.0% $293,933 $293,933 High School Booster Pump Station $4,704,000 0.0% 30.0% 30.0% $1,411,200 $0 Elm /Loop 288 Water Lines $3,832,013 0.0% 30.0% 30.0% $1,149,604 $0 Alfred /John Paine Water Line $4,298,515 0.0% 20.0% 20.0% $859,703 $0 Southwest Elevated Storage Tank $5,376,000 10.0% 20.0% 10.0% $537,600 $537,600 McKinney Water Line and PRV $987,840 10.0% 25.0% 15.0% $148,176 $98,784 University Water Line and PRV $1,724,083 0.0% 30.0% 30.0% $517,225 $0 New McKenna Booster Pump Station $8,064,000 0.0% 65.0% 65.0% $5,241,600 $0 1 -35W Water Line $4,466,650 0.0% 20.0% 20.0% $893,330 $0 1 -35W /Corbin Water Line $1,781,472 0.0% 20.0% 20.0% $356,294 $0 South Central Transmission Lines $10,583,731 0.0% 15.0% 15.0% $1,587,560 $0 Subtotal, Proposed Eligible Projects $53,158,628 na na na $14,879,495 $930,317 Total $305,605,599 na na na $69,182,892 $930,317 Source: Total costs in 2013 dollars and utilization percentages (for improvements other than Lake Ray Roberts and Lake Ray Roberts water treatment plant) from Freese and Nichols, "Water Impact Fee Utilization Calculations," May 31, 2013; utilization percentages for Lake Ray Roberts WTP from Table 12; utilization percentages for Lake Ray Roberts from Table 13; deficiency cost is total cost times 2013 percent utilized for planned improvements. City of IDenton, IX REVIEWDRAh°I' ��st �.��rr assc�ciates 2013 -2023 Capital Improvements Plan 21 August 15, 2013 Water The system -wide growth costs shown above are allocated to service areas based on projected service unit growth and /or hydrologic modeling, as shown in Table 15 below. Table 15. Water Growth Costs by Service Area, 2013 -2023 Lake Ray Roberts $28,514,946 25.0% 54.0% 21.0% $7,128,737 $15,398,071 $5,988,139 Lake Ray Roberts WTP $19,304,270 25.0% 54.0% 21.0% $4,826,068 $10,424,306 $4,053,897 54" Transmission Line $1,438,545 25.0% 54.0% 21.0% $359,636 $776,814 $302,094 Loop 288 Water Main, Sherman -UNT $654,277 25.0% 54.0% 21.0% $163,569 $353,310 $137,398 Loop 288 Water Main, Sherman -380 $527,753 25.0% 54.0% 21.0% $131,938 $284,987 $110,828 NW Elevated Storage Tank $701,996 0.0% 100.0% 0.0% $0 $701,996 $0 SW Pump Station $1,182,400 0.0% 60.0% 40.0% $0 $709,440 $472,960 SW PS Oversize Discharge Line (30 -36 ") $14,224 0.0% 60.0% 40.0% $0 $8,534 $5,690 Vintage Oversize Line (12 -20 ") $88,994 0.0% 45.0% 55.0% $0 $40,047 $48,947 North -South Water Line, Phase 1 $603,860 25.0% 54.0% 21.0% $150,965 $326,084 $126,811 Roselawn Elevated Storage Tank $629,944 25.0% 54.0% 21.0% $157,486 $340,170 $132,288 Roselawn Water Line $449,341 25.0% 54.0% 21.0% $112,335 $242,644 $94,362 Masch Branch Rd Water Line Extension $96,867 0.0% 100.0% 0.0% $0 $96,867 $0 US 380 Urban Utility Relocation $75,996 0.0% 100.0% 0.0% $0 $75,996 $0 Rayzor Ranch Oversize Line (16 -20 ") $19,984 0.0% 100.0% 0.0% $0 $19,984 $0 Subtotal, Existing Eligible Projects $54,303,397 na na na $13,030,734 $29,799,250 $11,473,414 North -South Water Line, Phase 11 $1,883,270 0.0% 60.0% 40.0% $0 $1,129,962 $753,308 1 -35 Parallel Line Crossing $293,933 0.0% 100.0% 0.0% $0 $293,933 $0 High School Booster Pump Station $1,411,200 0.0% 100.0% 0.0% $0 $1,411,200 $0 Elm /Loop 288 Water Lines $1,149,604 0.0% 100.0% 0.0% $0 $1,149,604 $0 Alfred /John Paine Water Line $859,703 0.0% 35.0% 65.0% $0 $300,896 $558,807 Southwest Elevated Storage Tank $537,600 0.0% 60.0% 40.0% $0 $322,560 $215,040 McKinney Water Line and PRV $148,176 0.0% 100.0% 0.0% $0 $148,176 $0 University Water Line and PRV $517,225 0.0% 100.0% 0.0% $0 $517,225 $0 New McKenna Booster Pump Station $5,241,600 0.0% 60.0% 40.0% $0 $3,144,960 $2,096,640 1 -35W Water Line $893,330 0.0% 35.0% 65.0% $0 $312,666 $580,665 1 -35W /Corbin Water Line $356,294 0.0% 45.0% 55.0% $0 $160,332 $195,962 South Central Transmission Lines $1,587,560 0.0% 60.0% 40.0% $0 $952,536 $635,024 Subtotal, Proposed Eligible Projects $14,879,495 na na na $0 $9,844,050 $5,035,446 Total $69,182,892 na na na $13,030,734 $39,643,300 $16,508,860 Source: System -wide growth costs from Table 14; service area utilization percentages from Freese and Nichols, "Water Impact Fee Utilization Calculations," May 31, 2013. In addition to those costs directly attributable to growth, there are interest costs associated with funding capital improvements with revenue bonds or other forms of debt. The City traditionally funds all of its major water system capital improvements with bonds, and consequently- incurs interest costs. _according to State law, these interest costs can be recovered through impact fees. Based on the analysis provided in the _appendix, the direct costs should be increased by 12.4"o to account for interest costs. The final step in determining the cost per service unit is to divide the total capital cost attributable to growth over the next ten rears in each service area by the anticipated growth in service units over the same time period. The results are shown in Table 16 below. City of IDenton, IX REVIEWDRAh°I' ��st F�.��rr assc�ciates 2013 -2023 Capital Improvements Plan 22 August 15, 2013 Water Direct Growth Costs, 2013 -2023 $13,030,734 $39,643,300 $52,674,034 $16,508,860 Debt Service Interest Cost $1,615,811 $4,915,769 $6,531,580 $2,047,099 Total Growth Costs, 2013 -2023 $14,646,545 $44,559,069 $59,205,614 $18,555,959 New SFEs, 2013 -2023 2,834 6,145 8,979 2,393 Cost per SFE $5,168 $7,251 $6,594 $7,754 Source: Direct growth costs from Table 15; debt service cost is growth cost times real interest cost factor (0.124) from Table 39 in the Appendix; new SFEs from Table 8. Net Cost per Service Unit New water customers will help pad- off outstanding debt incurred for existing facilities throtigh their monthly- rates. To avoid requiring new customers to pad- twice for capital facilities, once throtigh impact tees and again through rate payments, the impact fees should be reduced to account for such debt service payments. A simple and reasonable approach to calculating the credit is to divide outstanding debt by current service units, and use this figure as the credit per service unit. The rationale behind this approach is simple to explain and understand. Existing; customers are being; allowed to pad- for a portion of their capital costs throtigh their rate payments; reducing impact tees by this amount puts new customers on an equal footing with existing customers. All customers will be funding the same share of their capital costs throtigh rate payments. Credit does not need to be provided for the share of current debt that is attributable to past improvements that still have capacity- remaining to serve future growth. In fact, this portion of debt could be retired by future impact fees. The percentages of original bond issues related to improvements with excess capacity- to serve future customers are shown in Table 17. Table 17. Percent of Water Debt Related to Excess Capacity Lake Ray Roberts Water Rights 35.20% Lake Ray Roberts Water Treatment Plant 48.99% 10.50% 900 Pressure Plain Tank /NW Elev Storage Tank 2.14% Loop 288 Wtr Main - Sherman to Hwy 380 1.18% Southwest Booster Pump Station 4.58% 54" Transmission Line 4.49% Loop 288 Wtr Main Sherman to UNT 1.46% US 380 Urban Utility Relocation 0.17% 0.12% Roselawn Elevated Storage Tank 1.89% North -South Water Line Phase 1 5.96% Denia - Roselawn Water Line 1.53% 0.15% SW PS Oversize Discharge Line 0.06% Rayzor Ranch Oversize Line 0.18% Total 35.20% 60.41% 12.04% 4.80% 6.14% Source: City of Denton Municipal Utilities, July 29, 2013 The outstanding water debt attributable to excess capacity- is derived by multiplying the outstanding debt associated with each bond issue by the percentages calculated above, as shown in Table 18. City of IIDenton, " "III PUBLIC REVIEWDRAII°I' ��st y.��rr assc�ciates 2013 -2023 Capital Improvements Plan 23 August 15, 2013 Water 2005 -Refunding of 1998 A $15,764,132 35.20% $5,548,933 2005 - Refunding of 2000 $9,280,868 60.41% $5,606,537 2007 -Refunding of 1998 A $15,284,296 35.20% $5,380,032 2007 - Refunding of 2001 $10,020,704 12.04% $1,206,115 2007 - Original Bond Issue $7,630,000 6.14% $468,524 2010 - Refunding of 1998A/B $1,062,990 35.20% $374,170 2010 - Refunding of 2000A $1,852,530 60.41% $1,119,106 2010 - Refunding of 2002A $13,699,480 4.80% $657,211 2011 - Refunding of 2001 $1,780,000 12.04% $214,245 Total $20,574,873 Source: Outstanding debt from City of Denton Municipal Utilities, July 29, 2013, percentages from Table 17. In addition to outstanding debt on existing facilities, there are also some existing; deficiencies that «%ill be remedied by the planned improvements. The sum of outstanding debt and deficiency costs represents the future cost to serve existing customers. The credit is calculated by dividing total existing customer costs by existing service units, as shown in Table 19. Table 19. Water Revenue Credit per Service Unit Total Outstanding Water Debt $126,540,000 — Outstanding Debt Associated with Excess Capacity - $20,574,873 Outstanding Debt for Facilities Serving Existing Customers $105,965,127 Deficiency Cost $930,317 Future Existing Customer Cost $106,895,444 x Interest Cost Factor 1.124 Total Existing Customer Cost $120,150,479 Existing Service Units (SFEs) 60,043 Credit per SFE $2,001 Source: Total outstanding debt from City of Denton Municipal Utilities as of September 30, 2012; debt attributable to excess capacity from Table 18; deficiency cost from Table 14; interest cost factor from Table 39; existing SFEs from Table 6. The calculated net cost per service unit is the cost per service unit less the revenue credit per service unit. An alternative to calculating the revenue credit, provided by Chapter 395, is simply- to divide the cost per service unit in half. The net costs derived from these two alternative methods are compared in Table 20. Table 20. Water Net Cost per Service Unit by Service Area Cost per SFE $5,168 $7,251 $6,594 $7,754 — Revenue Credit per SFE - $2,001 - $2,001 - $2,001 - $2,001 Calculated Net Cost per SFE $3,167 $5,250 $4,593 $5,753 Alternative Net Cost per SFE $2,584 $3,626 $3,297 $3,877 Source: Cost per SFE from Table 16; calculated revenue credit per SFE from Table 19; alternative net cost per SFE is one -half the calculated cost per SFE, per State law. City of IIDenton, " "III PUBLIC REVIEWDRAh°I' ��st y.��rr assc�ciates 2013 -2023 Capital Improvements Plan 24 August 15, 2013 Water Net Cost Schedule The City- Council could enact updated water impact fees at either of the alternative net costs shown above, or at a reduced level. The following net cost schedule represents the maximum impact fees that may be charged by the City- for water system facilities, based on the Land Use _assumptions, the utility- system evahiation and capital improvement cost estimates prepared by City- of Denton Municipal Utilities staff and engineering consultants, and the additional data and analysis presented in this water impact fee Capital Improvements Plan. Table 21. Water Net Cost Schedule Updated Net Cost /SFE $3,167 $5,250 $4,593 $5,753 Current Fee per SFE $3,400 $3,400 $3,400 $4,000 Percent Change -7% 54% 35% 44% Source: Updated net cost per SFE from Table 20; current fee from City of Denton Code of Ordinances, Sec. 26 -222. Based on the growth projections in the Land Use Assumptions, potential system -wide revenues over the next ten years would be 37 0!o higher under the potential fees calculated in this report than under the current fees, as shown in Table 22. These revenue projections should be viewed cautiously, since they depend entirely on the growth projections. It should also be noted that the updated fees will not apply to properties platted under the previous impact fee schedule, a fact that is not accounted for in these revenue projections. Table 22. Comparative Water Impact Fee Revenues, 2013 -2023 Updated Net Cost per SFE $3,167 $5,250 $4,593 $5,753 na x New SFEs, 2013 -2023 2,834 6,145 8,979 2,393 11,372 Potential Revenue with Updated Fees $8,975,278 $32,261,250 $41,240,547 $13,766,929 $55,007,476 Current Fee per SFE $3,400 $3,400 $3,400 $4,000 na x New SFEs, 2013 -2023 2,834 6,145 8,979 2,393 11,372 Potential Revenue with Current Fees $9,635,600 $20,893,000 $30,528,600 $9,572,000 $40,100,600 Percent Change from Current Fees -7% 54% 35% 44% 37% Source: Updated net cost per SFE from Table 20; new SFEs from Table 8. If the impact fees are adopted at 100"o of the full net cost, new customers, system -wide, would pay 710% of their attributable cost of capital improvements through impact fees, and the rest through future rate payments that will be used to (a) retire existing; debt associated with existing; improvements that are serving existing customers and (b) retire future debt issued to fund planned improvements that will remedy capacity deficiencies for existing customers. The percentage of costs covered through impact fees �-aries I)v service area, because the utility- debt is paid by all customers, regardless of service area, and the debt credit is a larger part of the gross fee per service unit in service areas with smaller fees. The percentages of growth - related costs paid that would be throtigh impact fees are shown in Table 23. City of IIDenton, "III PUBLIC REVIEWI1BAh°I' ��st y.��rr assc�ciates 2013 -2023 Capital Irnprovernents Plan 25 August 15, 2013 Water Table 23. Water Growth Costs and Revenues, 2013 -2023 Zone 1A Zone 1B Zone 1 Systern- .- Impact Fee Revenues, 2013 -2023 $8,975,278 $32,261,250 $41,240,547 $13,766,929 $55,007,476 Total Growth Costs, 2013 -2023 $14,646,545 $44,559,069 $59,205,614 $18,555,959 $77,761,573 Percent Paid by Impact fees 61% 72% 70% 74% 71% Source: Impact fee revenues from Table 22; growth costs from Table 16. City of IIDenton, IX REVIEWDRAh°I' ��st �.��rr assc�ciates 2013 -2023 Capital Improvements Plan 26 August 15, 2013 WASTEWATER The City's wastewater system provides retail wastewater collection and treatment to customers within the CCN area, as well as wastewater treatment to three wholesale customers — Corinth, Drum and Argyle. The impact fees calculated in this report exclude costs to serve the City's wholesale customers. Service Units The current service unit for Denton's wastewater impact fees is the "single- family equivalent" (SFE), which is based on the size of the water meter. This is reasonable, since wastewater generation is not metered directly and tends to be proportional to water usage. An SFE is the wastewater demand associated with the smallest water meter used in the system (5/8" x 3/4 "), which is the meter typically used by a single - family residence. The ratio of each larger meter's capacity to the capacity of the base meter determines the SFE multiplier applied to each larger meter size. Multiplying the number of existing retail wastewater connections (i.e., excluding wholesale customers) with each meter size by the service units per meter yields total service units for that meter size. Summing for all meter sizes yields the total number of wastewater service units connected to the City's system, as shown in Table 24. Table 24. Wastewater Service Units, 2013 5/8" x 3/4" 28,367 1.0 28,367 1" 1,035 2.5 2,588 1 -1/2" 659 5.0 3,295 2" 946 8.0 7,568 3" 113 22.5 2,543 4" 54 50.0 2,700 6" 13 100.0 1,300 8" 10 200.0 2,000 10" 2 325.0 650 Total 31,199 51,011 Total Served Population, 2013 118,547 SFEs per Served Population 0.4303 Source: Active non - wholesale wastewater connections by meter size from the City of Denton, February 26, 2013; SFEs per meter from Table 5; 2013 served population from Table 4. The growth in wastewater service units (SFEs) over the 2013 -2023 planning period is derived from the Land Use _assumptions. Total population served by the Denton Utilities wastewater system for each service area from the Land Use _assumptions is multiplied by the existing service unit -to- served population ratio calculated in the previous table to determine the projected number of service units for each year through 2023 and for each service area in Table 25. City of IIDenton, iX III PURUC REVIEW I1RAh°I' ��st y.��rr assc�ciates 2013 -2023 Capital Irnprovernents Plan 27 August 15, 2013 Wastewater Table 25. Wastewater Service Units, 2013 -2023 2013 49,128 21,140 67,839 29,191 1,580 680 118,547 51,011 2014 49,639 21,360 69,107 29,737 1,580 680 120,326 51,776 2015 50,148 21,579 70,403 30,294 1,580 680 122,131 52,553 2016 50,659 21,799 71,116 30,601 1,580 680 123,355 53,080 2017 51,235 22,046 72,390 31,149 1,580 680 125,205 53,876 2018 52,256 22,486 73,873 31,788 1,580 680 127,709 54,953 2019 53,147 22,869 75,536 32,503 1,580 680 130,263 56,052 2020 53,593 23,061 77,174 33,208 2,102 904 132,869 57,174 2021 54,038 23,253 78,605 33,824 2,883 1,241 135,526 58,317 2022 54,395 23,406 79,658 34,277 4,184 1,800 138,237 59,483 2023 54,751 23,559 80,569 34,669 5,681 2,445 141,001 60,673 New SFEs, 2013 -2023 2,419 5,478 1,765 9,662 Source: Served population for wastewater service areas from City of Denton, Land Use Assumptions (see Table 4); SFEs is product of served population and SFEs /served population from Table 24. Demand Projections Average per capita wastewater demands can be determined based on historic system -wide demand in millions of gallons per dad- (mgd) and historic served population. These per capita estimates represent both residential and nonresidential demand, and are useful for projecting future system requirements, particularly- when no significant shifts of land use ratios are expected. Wastewater treatment facilities are primarily- designed to accommodate average daily- flows. As summarized in Table 26, per capita wastewater flows to the treatment plant over the last eight rears have averaged 124 gallons per capita per dad- (gpcd). These calculations exchide wholesale wastewater flows. In addition, they represent flows per seared or connected population, which has been determined based on recent studies by the City of Denton to be about 99 percent of total population. These factors will be used to project future average daily- demand in the service areas. Table 26. Per Capita Wastewater Demand 2005 13.67 102,525 133 2006 11.71 105,754 111 2007 15.02 108,674 138 2008 15.05 110,818 136 2009 13.31 112,910 118 2010 12.52 114,494 109 2011 13.80 115,639 119 2012 15.02 116,795 129 Average 124 Source: Average influent flows (excluding wholesale) and 2005- 2010 wastewater CCN total population from City of Denton Municipal Utilities, February 13, 2013; 2005 -2010 served population is 99% of total population; 2011 -2012 served population from City of Denton Planning and Development Department, "Land Use Assumptions for Impact Fee Assessments," July 2013. City of IIDenton, IX �'stu� �m�y.��rr assc�ciates 2013 -2023 Capital Irnprovernents Plan 28 August 15, 2013 Wastewater Projected wastewater demand over the next ten rears is summarized in Table 27 for the tvo current service areas. A projection of demand from the proposed intill service area is not necessary-, since these customers will be seared by the existing Pecan Creek treatment plant that will also continue to serge the remainder of the current Zone 1 area. Table 27. Projected Wastewater Demand, 2013 -2023 2013 116,967 124 14.50 0.56 15.06 2014 118,746 124 14.72 0.56 15.28 2015 120,551 124 14.95 0.56 15.51 2016 121,775 124 15.10 0.57 15.67 2017 123,625 124 15.33 0.57 15.90 2018 126,129 124 15.64 0.57 16.21 2019 128,683 124 15.96 0.57 16.53 2020 130,767 124 16.22 0.58 16.80 2021 132,643 124 16.45 0.58 17.03 2022 134,053 124 16.62 0.58 17.20 2023 135,320 124 16.78 0.58 17.36 Zone 1 Growth, 2013 -2023 2.28 0.02 2.30 2013 1,580 124 0.20 0.00 0.20 2014 1,580 124 0.20 0.00 0.20 2015 1,580 124 0.20 0.00 0.20 2016 1,580 124 0.20 0.00 0.20 2017 1,580 124 0.20 0.00 0.20 2018 1,580 124 0.20 0.00 0.20 2019 1,580 124 0.20 0.00 0.20 2020 2,102 124 0.26 0.00 0.26 2021 2,883 124 0.36 0.00 0.36 2022 4,184 124 0.52 0.00 0.52 2023 5,681 124 0.70 0.00 0.70 Zone 2 Growth, 2013 -2023 0.50 0.00 0.50 Systemwide Growth, 2013 -2023 2.78 0.02 2.80 Source: Served population from Table 25; per capita retail demand from Table 26; wholesale flows from City of Denton Municipal Utilities. Wastewater Treatment To accommodate future growth in the Pecan, Hickory- and Cooper Creek basins, the City- built a 6- mgd expansion to the Pecan Creek Water Reclamation Plant in December 2003. The plant is now designed to treat up to 21 mgd, and is in compliance with all State and Federal discharge permits. This plant provides adequate treatment capacity- to serve projected growth in the Pecan, Hickory- and Cooper Creek basins for the next ten rears. Treatment capacity- to serve the Clear Creek basin will be provided with a new 3 -mgd Clear Creek wastewater treatment plant. The new wastewater demand from Zone 1 (including the proposed Zone IA infill service area) will be served by excess capacity- in the existing Pecan Creek plant. The original capacity- of the Pecan Creek plant (15 mgd) prior to the 2003 6 -mgd expansion has already- been consumed by existing customers. New development in Zone 1 over the next ten nears will consume 38.0 "o of the capacity of the 6 mgd expansion. New wastewater demand from Zone 2 will be served by the new 3 mgd City of IIDenton, "III PUBLIC REVIEW1)RAh°I' ��st y.��rr assc�ciates 2013 -2023 Capital Improvements Plan 29 August 15, 2013 Wastewater Clear Creek plant. New development in Zone 2 over the next ten nears «%ill consume 16.7°% of the new Clear Creek plant, as shown in Table 28. Table 28. Wastewater Treatment Plant Utilization, 2013 -2023 New Retail Average Day Demand (mgd), Zone 1, 2013 -2023 2.28 Capacity of 2003 Pecan Creek Plant Expansion (mgd) 6.00 % of 2003 Pecan Creek Plant Capacity Expansion Needed to Serve Zone 1 Retail Growth 38.0% New Retail Average Day Demand (mgd), Zone 2, 2013 -2023 0.50 Capacity of New Clear Creek Plant (mgd) 3.00 % of Clear Creek Plant Capacity Needed to Serve Zone 2 Retail Growth 16.7% Source: New retail demand in Zone 1 and Zone 2 from Table 27; capacities from City of Denton Municipal Utilities. Wastewater Conveyance N\Iiile the capacity- and demand on treatment plants are appropriately- measured in terms of average daily- flows, other wastewater facilities must be sized to accommodate peak dad- flow. Peak flows for 2013 and 2023 were projected by City- engineers utilizing the wastewater model. N\1olesale flows have been excluded from the calculation of the shares of treatment plant improvements attributable to customer growth over the next ten years. However, it is not possible to separate out increased demand from wholesale wastewater customers in the model. As can be derived from the data in Table 27 above, growth in demand from retail customers accounts for 99.30° 0 of total projected growth in average dad- flows. Projected 2023 peak flows for non - treatment -plant improvements have been adjusted by this factor to remove the cost attributable to accommodating an increase in wholesale demand from the impact fee calculations. Some of the interceptor improvements are replacing existing lines that do not have enotigh capacity- to accommodate current peak flows. In such cases, some of the cost of the new line is attributable to replacing the capacity- provided by the current line, to adding capacity- to remedy- the existing deficiencies, to providing new capacity- for growth over the next ten rears and to providing additional capacity- to serve long -term future needs. The shares of all eligible improvements included in the Capital Improvements Plan that are attributable to remedying existing deficiencies and accommodating growth over the next ten rears are shown in Table 29. City of IIDenton, " "III PUBLIC REVIEWDRAh°I' ��st y.��rr assc�ciates 2013 -2023 Capital Improvements Plan 30 August 15, 2013 Wastewater Table 29. Wastewater Conveyance Capacities and Flows, 2013 -2023 Existing Zone 1 Improvements S Wet Weather Lift Station /Detention Pond 6.72 6.72 1.93 2.60 10.0% 0.0% Cooper Creek Outfall (Loop 288) 18.50 18.50 13.38 13.61 1.2% 0.0% Krum Sewer Line 10.02 10.02 1.04 3.82 27.7% 0.0% Graveyard Branch Interceptor 21.15 21.15 1.05 1.47 2.0% 0.0% Pecan Creek Interceptor (Ph 1 £r 2) 35.55 35.55 33.34 35.55 6.2% 0.0% Pecan Creek Interceptor 1 37.49 37.49 34.61 37.49 7.7% 0.0% Roark Branch Interceptor 7.24 7.24 0.00 3.81 52.6% 0.0% State School Interceptor 1 34.68 34.68 24.07 25.03 2.8% 0.0% Proposed Zone 1 Improvements Carroll Ave Interceptor 3.61 5.87 3.84 4.33 21.7% 10.2% Cooper Creek Interceptor 1 10.16 18.42 15.64 17.16 18.4% 66.3% Cooper Creek Interceptor II 5.62 14.56 11.89 13.00 12.4% 70.1% Cooper Creek Interceptor III 4.53 14.49 9.72 10.37 6.5% 52.1% Cooper Creek Interceptor IV 0.00 3.39 0.00 1.89 55.8% 0.0% Cooper Creek Lift Station /Detention Pond 0.00 0.75 0.00 0.29 38.7% 0.0% Dry Fork Hickory Crk Trib. 1 Interceptor 2.90 6.56 5.93 6.48 15.0% 82.8% Elm Street Sewer Replacements 1.44 4.23 1.67 1.86 6.8% 8.2% Hickory Creek Interceptor 1 9.32 43.22 19.74 30.60 32.0% 30.7% Hickory Creek Interceptor II 7.17 33.48 15.99 26.93 41.6% 33.5% Hickory Creek Interceptor III 4.56 20.41 11.61 19.46 49.5% 44.5% Hickory Creek Interceptor IV 1.09 4.30 2.25 3.29 32.4% 36.1% Hickory Creek Lift Station /Detention Pond 0.00 4.04 0.00 2.81 69.6% 0.0% Hickory Creek Outfall 11.30 34.56 11.93 12.21 1.2% 2.7% Pecan Creek Interceptor II 8.09 37.47 23.43 26.74 11.3% 52.2% Pecan Creek Interceptor III 5.81 24.71 23.24 24.82 7.8% 92.2% Pecan Creek Interceptor IV 4.03 25.50 14.24 17.01 12.9% 47.6% Pecan Creek Interceptor V 8.51 21.61 21.13 22.39 3.7% 96.3% State School Interceptor II 13.70 61.88 23.42 24.34 1.9% 20.2% US 380 Utility Relocations 1.08 4.41 3.66 4.47 22.5% 77.5% West Peak Flow Lift Station/ Det. Pond 0.00 6.24 0.00 3.63 58.2% 0.0% Westgate Heights Interceptor 1.15 3.60 2.89 3.60 29.0% 71.0% Woodhaven Interceptor 0.76 1.46 0.80 0.88 11.4% 0.0% Proposed Zone 2 Improvements Clear Creek Interceptor 0.00 3.00 0 0.34 11.3% 0.0% Source: Capacities and flows (in mgd except for detention facilities, which are in mg) from City of Denton Municipal Utilities; deficiency percentage is the ratio of the difference between 2013 demand and 2013 capacity to 2013 -2023 growth in capacity; growth percentage is ratio of new 2013 -2023 flows to 2013 -2023 growth in capacity, unless 2023 capacities are insufficient for 2023 flows, in which case it is the ratio of 2018 capacity less 2008 flow to 2018 capacity. City of IIDenton, "III PUBLIC REVIEWDRAh°I' ��st y.��rr assc�ciates 2013 -2023 Capital Improvements Plan 31 August 15, 2013 Wastewater Cost per Service Unit Wastewater capital improvements and costs identified by City- of Denton Municipal Utilities' staff as necessary- to accommodate growth over the next ten rears, along with the shares of project costs attributable to existing deficiencies, are summarized in Table 30. Table 30. Wastewater Growth Costs by Service Area, 2013 -2023 Pecan Creek WRP (15 mgd) $39,528,174 0.0% $0 30.6% $0 $0 Pecan Creek WRP 6 mgd expansion $30,005,125 38.0% $11,401,948 30.6% $3,488,996 $0 S Wet Weather Lift Station /Detention Pond $1,552,898 10.0% $155,290 0% $0 $0 Cooper Creek Outfall (Loop 288) $3,898,807 1.2% $46,786 0% $0 $0 Krum Sewer Line $398,450 27.7% $110,371 0% $0 $0 Graveyard Branch Interceptor $5,004,952 2.0% $100,099 0% $0 $0 Pecan Creek Interceptor (Ph 1 £r 2) $3,363,189 6.2% $208,518 55% $114,685 $0 Pecan Creek Interceptor 1 $1,975,672 7.7% $152,127 91% $138,436 $0 Roark Branch Interceptor $854,774 52.6% $449,611 0% $0 $0 State School Interceptor 1 $1,660,869 2.8% $46,504 0% $0 $0 Existing Improvements Subtotal, Zone 1 $88,242,910 $12,671,254 $3,742,117 $0 Carroll Ave Interceptor $472,799 21.7% $102,597 100.0% $102,597 $48,225 Cooper Creek Interceptor 1 $608,498 18.4% $111,964 0.0% $0 $403,434 Cooper Creek Interceptor 11 $1,293,395 12.4% $160,381 0.0% $0 $906,670 Cooper Creek Interceptor 111 $1,239,878 6.5% $80,592 0.0% $0 $645,976 Cooper Creek Interceptor IV $249,528 55.8% $139,237 0.0% $0 $0 Cooper Creek Lift Station /Detention Pond $1,543,050 38.7% $597,160 0.0% $0 $0 Dry Fork Hickory Crk Trib. 1 Interceptor $2,294,968 15.0% $344,245 0.0% $0 $1,900,234 Elm Street Sewer Replacements $204,515 6.8% $13,907 100.0% $13,907 $16,770 Hickory Creek Interceptor 1 $4,494,098 32.0% $1,438,111 0.0% $0 $1,379,688 Hickory Creek Interceptor 11 $6,497,359 41.6% $2,702,901 0.0% $0 $2,176,615 Hickory Creek Interceptor 111 $7,247,205 49.5% $3,587,366 0.0% $0 $3,225,006 Hickory Creek Interceptor IV $2,361,574 32.4% $765,150 0.0% $0 $852,528 Hickory Creek Lift Station /Detention Pond $8,293,840 69.6% $5,772,513 0.0% $0 $0 Hickory Creek Out-fall $466,857 1.2% $5,602 0.0% $0 $12,605 Pecan Creek Interceptor 11 $3,114,198 11.3% $351,904 80.0% $281,523 $1,625,611 Pecan Creek Interceptor 111 $1,899,937 7.8% $148,195 77.0% $114,110 $1,751,742 Pecan Creek Interceptor IV $1,436,302 12.9% $185,283 53.0% $98,200 $683,680 Pecan Creek Interceptor V $3,124,089 3.7% $115,591 55.0% $63,575 $3,008,498 State School Interceptor 11 $4,551,156 1.9% $86,472 0.0% $0 $919,334 US 380 Utility Relocations $1,378,425 22.5% $310,146 26.0% $80,638 $1,068,279 West Peak Flow Lift Station/ Det. Pond $3,846,360 58.2% $2,238,582 55.0% $1,231,220 $0 Westgate Heights Interceptor $405,713 29.0% $117,657 0.0% $0 $288,056 Woodhaven Interceptor $256,016 11.4% $29,186 100.0% $29,186 $0 Proposed Improvements Subtotal, Zone 1 $57,279,760 $19,404,742 10.4% $2,014,956 $20,912,951 Zone 1 Total $145,522,670 $32,075,996 17.9% $5,757,073 $20,912,951 Clear Creek Interceptor $8,496,199 11.3% $960,070 0.0% $0 $0 Clear Creek WRP $20,482,310 16.7% $3,420,546 0.0% $0 $0 Zone 2 Proposed Improvements Total $28,978,509 $4,380,616 $0 $0 Source: Total cost in 2013 dollars from City of Denton Municipal Utilities, June 24, 2013; treatment plant growth shares from Table 28; conveyance facility growth shares from Table 29; share of Zone 1 costs in proposed Zone 1A infill area from City of Denton Municipal Utilities, June 19, 2013; deficiency cost is cost times deficiency share from Table 29. City of IIDenton, "III PUBLIC REVIEWDRAh°I' ��st y.��rr assc�ciates 2013 -2023 Capital Improvements Plan 32 August 15, 2013 Wastewater In addition to those costs directly- attributable to growth, there are interest costs associated with funding capital improvements with revenue bonds or other forms of debt. The City- traditionally- funds all of its major wastewater system capital improvements with bonds, and consequently- incurs interest costs. _according to State law, these interest costs can be recovered through impact fees. Based on the analysis provided in the _appendix, the costs should be increased by 12.4"o to account for interest costs. The final step in determining the cost per service unit is to divide the total capital cost attributable to growth over the next ten rears in each service area by the anticipated growth in service units over the same time period. The results are shown in Table 31 below. Table 31. Wastewater Cost per Service Unit by Service Area Direct Growth Costs, 2013 -2023 $5,757,073 $26,318,923 $32,075,996 $4,380,616 Debt Service Interest Cost $713,877 $3,263,546 $3,977,423 $543,196 Total Growth Costs, 2013 -2023 $6,470,950 $29,582,469 $36,053,419 $4,923,812 New SFEs, 2013 -2023 2,419 5,478 7,897 1,765 Cost per SFE $2,675 $5,400 $4,565 $2,790 Source: Direct growth costs from Table 30 (Zone 113 is difference between Zone 1 total and Zone 1A); debt service cost is growth cost times real interest cost factor (0.124) from Table 39 in the Appendix; new SFEs from Table 25. Net Cost per Service Unit New wastewater customers will help pad- off outstanding debt incurred for existing facilities through their monthly- rates. To avoid requiring new customers to pad- twice for capital facilities, once throtigh impact fees and again throtigh rate pavments, the impact fees should be reduced to account for such debt service payments. A simple and reasonable approach to calculating the credit is to divide outstanding debt by current service units, and use this figure as the credit per service unit. The rationale behind this approach is simple to explain and understand. Existing customers are being allowed to pad- for a portion of their capital costs through their rate payments; reducing impact fees by this amount puts new customers on an equal footing with existing customers. All customers will be funding the same share of their capital costs through rate payments. Credit does not need to be provided for the share of current debt that is attributable to past improvements that still have capacity- remaining to serve future growth. In fact, this portion of debt could be retired by future impact fees. Credit does not need to be provided for the share of current debt that is attributable to past improvements that still have capacity- remaining to serve future growth. In fact, this portion of debt could be retired by future impact fees. The percentages of original bond issues related to improvements with excess capacity- to serve future customers are shown in Table 17. City of IIDenton, " "III PUBLIC REVIEWDRAh°I' ��st �.��rr assc�ciates 2013 -2023 Capital Irnprovernents Plan 33 August 15, 2013 Wastewater Pecan Creek WRP (6 mgd) 18.33% 37.93% 31.52% 3.09% South Wet Weather Lift Station 1.57% Pecan Creek Interceptor (Ph.1&2) 0.99% Cooper Creek Outfall (Loop 288) 0.18% Krum Sewer Line 0.49% Graveyard Branch Interceptor 0.43% Roark Branch Interceptor 6.45% 0.27% State School Interceptor 1 0.53% Pecan Creek Interceptor 1 0.62% 0.46% 0.67% Total 18.33% 41.09% 38.44% 3.85% 1.84% Source: City of Denton Municipal Utilities, July 29, 2013. The outstanding water debt attributable to excess capacity- is derived by multiplying the outstanding; debt associated with each bond issue by the percentages calculated above, as shown in Table 18. T 2003 - Original Bond Issue $784,652 1.84% $12,605 2005 - Refunding from 1998 $1,266,200 18.33% $192,420 2005 - Refunding from 2000 $8,473,800 41.09% $2,886,593 2007 - Refunding from 2001 $4,450,000 38.44% $1,322,321 2010 - Refunding from 1998 $132,947 18.33% $23,915 2010 - Refunding from 1998B $472,313 18.33% $84,960 2010 - Refunding from 2000A $1,388,951 41.09% $560,051 2010 - Refunding from 2002A $6,860,788 3.85% $259,356 2011 - Refunding from 2001 $495,000 38.44% $147,090 Total $5,489,310 Source: Outstanding debt from City of Denton Municipal Utilities, July 29, 2013, percentages from Table 32. In addition to outstanding debt on existing facilities, there are also some existing deficiencies that will be remedied by the planned improvements. The sum of outstanding debt and deficiency costs represent the future cost to serve existing customers. The credit is calculated by dividing total existing customers costs I)v existing service units, as shown in Table 34. Table 34. Wastewater Revenue Credit per Service Unit Total Outstanding Wastewater Debt $47,639,019 — Outstanding Debt Associated with Excess Capacity - $5,489,310 Outstanding Debt for Facilities Serving Existing Customers $42,149,709 Deficiency Cost $20,912,951 Future Existing Customer Cost $63,062,660 x Interest Cost Factor 1.124 Total Existing Customer Cost $70,882,430 Existing Service Units (SFEs) 51,011 Credit per SFE $1,390 Source: Total outstanding debt from City of Denton Municipal Utilities as of September 30, 2012; debt associated with excess capacity from Table 33; deficiency cost from Table 30; interest cost factor from Table 39; existing SFEs from Table 24. City of IIDenton, " "III PUBLIC REVIEWDRAh°I' ��st y.��rr assc�ciates 2013 -2023 Capital Improvements Plan 34 August 15, 2013 Wastewater The calculated net cost per service unit is the cost per service unit less the debt credit per service unit. An alternative to calculating the revenue credit, provided by Chapter 395, is simply to divide the cost per service unit in half. The net costs derived from these two alternative methods are compared in Table 35. Table 35. Wastewater Net Cost per Service Unit by Service Area Cost per SFE $2,675 $5,400 $4,565 $2,790 — Revenue Credit per SFE - $1,390 - $1,390 - $1,390 - $1,390 Calculated Net Cost per SFE $1,285 $4,010 $3,175 $1,400 Alternative Net Cost per SFE $1,338 $2,700 $2,283 $1,395 Source: Cost per SFE from Table 31; calculated revenue credit per SFE from Table 34; alternative net cost per SFE is one -half the cost per SFE, per State law. Net Cost Schedule The City- Council could enact updated wastewater impact fees at either of the alternative net costs shown above, or at a reduced level. The following net cost schedule represents the maximum impact fees that may be charged by the City- for wastewater system facilities, based on the Land Use _assumptions, the utility- system evalhiation and capital improvement cost estimates prepared by City- of Denton lhinicipal Utilities staff and engineering consultants, and the additional data and analysis presented in this water impact fee Capital Improvements Plan. Table 36. Wastewater Net Cost Schedule Updated Net Cost /SFE $1,285 $4,010 $3,175 $1,400 Current Fee per SFE $1,700 $1,700 $1,700 $1,760 Percent Change -24% 136% 87% -20% Source: Updated net cost per SFE from Table 35; current fee from City of Denton Code of Ordinances, Sec. 26 -222. Based on the growth projections in the Land Use Assumptions, potential system -wide revenues over the next ten years would be higher under the potential fees calculated in this report than under the current fees, as shown in Table 37. These revenue projections should be viewed cautiously, since they depend entirely on the growth projections. It should also be noted that the updated fees will not apply to properties platted under the previous impact fee schedule, a fact that is not accounted for in these revenue projections. City of IIDenton, " "III PUBLIC REVIEWI1BAh°I' ��st y.��rr assc�ciates 2013 -2023 Capital Irnprovernents Plan 35 August 15, 2013 Table 37. Corn Wastewater Fee Revenues, 2013 -2023 Updated Net Cost per SFE $1,285 $4,010 $3,175 $1,400 na x New SFEs, 2013 -2023 2,419 5,478 7,897 1,765 9,662 Potential Revenue with Updated Fees $3,108,415 $21,966,780 $25,072,975 $2,471,000 $27,543,975 Current Fee per SFE $1,700 $1,700 $1,700 $1,760 na x New SFEs, 2013 -2023 2,419 5,478 7,897 1,765 9,662 Potential Revenue with Current Fees $4,112,300 $9,312,600 $13,424,900 $3,106,400 $16,531,300 Percent Change from Current Fees -24% 136% 87% -20% 67% Source: Updated net cost per SFE from Table 35; new SFEs from Table 25. If the impact fees are adopted at 100"o of the frill net cost, new customers, system -wide, would pad- 670% of their attributable cost of capital improvements through impact fees, and the rest through future rate payments that will be used to (a) retire existing; debt associated with existing; improvements that are serving existing customers and (b) retire future debt issued to fund planned improvements that will remedy- capacity- deficiencies for existing customers. The percentage of costs covered through impact fees varies by service area, because the utility- debt is paid by all customers, regardless of service area, and the debt credit is a larger part of the gross fee per service unit in service areas with smaller fees. The percentages of growth - related costs paid throtigh impact fees for each service area are shown in Table 38. Table 38. Wastewater Growth Costs and Revenues, 2013 -2023 Impact Fee Revenues, 2013 -2023 $3,108,415 $21,966,780 $2,471,000 $27,546,195 Total Growth Costs, 2013 -2023 $6,470,950 $29,582,469 $4,923,812 $40,977,231 Percent Paid by Impact fees 48% 74% 50% 67% Source: Impact fee revenues from Table 37; growth costs from Table 31. City of IIDenton, IX REVIEWDRAh°I' ��st �.��rr assc�ciates 2013 -2023 Capital Improvements Plan 36 August 15, 2013 APPENDIX: INTEREST COSTS Interest cost on debt consists of three components: an anticipated inflation rate, a return on investment and a risk premium. No borrower is going to loan money at less than the rate of inflation, since the dollars paid back will have less buying power than the dollars loaned. The residual interest rate after subtracting the inflation rate is referred to as the real interest rate, which consists of the rate of return plus risk premium. Over the past ten years, the rate of inflation has been about 2.48 "o. The City's outstanding utility debt service payments, including both general obligation and revenue bonds, are summarized in Table 39. The net present value of the City's outstanding debt service payments, discounted at the long -term inflation rate, is about $196 million. The real cost of interest is the difference between the net present value of the debt service payments, discounted at the inflation rate, and the principal. As shown in Table 39, the real cost of interest that will be paid on the City's outstanding utility debt is about $22 million. This indicates that real interest costs are equivalent to an additional 12.40% of the amount borrowed. Table 39. Outstanding Utility Debt Service Net Present Value, Total Debt Service $195,793,420 —Total Outstanding Principal - $174,179,019 Real Interest Cost $21,614,401 Ratio of Real Interest Cost to Principal Amount 0.124 Source: Utility revenue bond debt service payments from City of Denton Municipal Utilities, February 13, 2013; net present value based on 2.48% discount rate, which is the average annual inflation rate over the last ten years (2002 -2012) from the Bureau of Labor Statistics, Consumer Price Index, All Urban Customers, U.S., All Items, 1982 - 1984 -100. City of IIDenton, IX ��st y.��rr assc�ciates 2013 -2023 Capital Improvements Plan 37 August 15, 2013 Year 2013 Principal $11,639,368 $7,857,167 $19,496,535 2014 $12,269,652 $7,201,525 $19,471,177 2015 $12,345,000 $6,649,681 $18,994,681 2016 $12,705,000 $6,073,406 $18,778,406 2017 $13,215,000 $5,453,825 $18,668,825 2018 $13,575,000 $4,814,425 $18,389,425 2019 $14,065,000 $4,163,450 $18,228,450 2020 $14,735,000 $3,494,188 $18,229,188 2021 $12,065,000 $2,869,978 $14,934,978 2022 $10,450,000 $2,327,950 $12,777,950 2023 $7,430,000 $1,896,672 $9,326,672 2024 $6,745,000 $1,566,528 $8,311,528 2025 $7,070,000 $1,254,084 $8,324,084 2026 $4,945,000 $995,950 $5,940,950 2027 $5,160,000 $789,609 $5,949,609 2028 $4,635,000 $583,319 $5,218,319 2029 $4,535,000 $383,513 $4,918,513 2030 $4,750,000 $181,497 $4,931,497 2031 $905,000 $55,525 $960,525 2032 $940,000 $16,450 $956,450 Total $174,179,019 $58,628,742 $232,807,762 Net Present Value, Total Debt Service $195,793,420 —Total Outstanding Principal - $174,179,019 Real Interest Cost $21,614,401 Ratio of Real Interest Cost to Principal Amount 0.124 Source: Utility revenue bond debt service payments from City of Denton Municipal Utilities, February 13, 2013; net present value based on 2.48% discount rate, which is the average annual inflation rate over the last ten years (2002 -2012) from the Bureau of Labor Statistics, Consumer Price Index, All Urban Customers, U.S., All Items, 1982 - 1984 -100. 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"I II� I EXHIBIT 6 MINUTES PUBLIC UTILITIES BOARD August 12, 2013 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas is present, the Chair of the Public Utilities Board will thereafter convene into an open meeting on Monday, August 12, 2013 at 9:00 a.m. in the Service Center Training Room, City of Denton Service Center, 901A Texas Street, Denton, Texas. Present: Chairman Dick Smith, Vice Chair Billy Cheek, Secretary Randy Robinson, Leonard Herring, and Barbara Russell Absent: Phil Gallivan and Lilia Bynum Ex Officio Members: Howard Martin, ACM Utilities OPEN MEETING: ITEMS FOR INDIVIDUAL CONSIDERATION: 18) Receive a report and hold a discussion on the 2013 Water and Wastewater Impact Fee Study. Discuss and provide guidance on adding a third impact fee zone to accommodate infill development. Discuss maximum impact fees and provide guidance on staff - recommended impact fees. Tim Fisher, Assistant Director Water Utilities gave the water presentation. Fisher stated that every five years the City is required by Chapter 395 to update the impact fees; staff is in the middle of that process. Previously the impact fee capital plan was brought forth to this Board. Duncan & Associates is the consultant that is being used for this study and has been from the first study (1998). This will be the third update. Fisher showed several graphs including the water meter installation history and projection, water impact fee revenue vs use and water impact fee use vs eligible debt service. The impact fees were adopted in 1998 and started collecting them in 2000. There wasn't really a relation in growth rate and impact fees according to our history. Water adopted an increase in the rates in 2003 and became effective in 2004. There was another update in 2008 and were increased a small amount. There is also a recent nationwide study regarding impact fees. California and Florida have the highest impact fees; Texas is third from the bottom out of 17 states. Our rates are about two to four percent of the project cost currently. Income has a big impact as for as managing the capital plan and managing the rates. Fisher then showed a map with the water proposed 10 -year Capital Improvement Projects. There are 27 projects totaling about $305 million. There are 15 projects that have been built and paid for that represents about 83 percent of the cost. About half of that amount is the lake and the Minutes of the Public Utilities Board Meeting August 12, 2013 Page 2 of 5 plant. There are three projects that are under design, five that are in the 5 -year CIP and four in the 10 -year CIP. Fisher showed a map with the two zones. Until 2008 water had one impact fee. Because of some of the growth pressures that we were having in the far southwest area and some of the challenges that staff was dealing with, staff recommended and implemented a zone 2 that was supported by this Board and City Council. That put a little higher cost out in zone 2. There are cut out areas in zone 2 that are four subdivisions that stayed in zone 1. Fisher stated that staff goes through a process that looks at the calculation of maximum fees, use a debt credit, and is calculated for a maximum impact fee. The current fee for zone 1 is $3,400 and for zone 2 $4,000. The new maximum fee for zone 1 is $4,593 and zone 2 $5,753. Staff recommends for zone 1 $3,900 and for zone 2 $4,900. Herring clarified that the City will charge a new lot for a single family resident $5,753 for impact fees. Fisher answered no, we could but staff is recommending $4,900. This is a starting point of what we want to charge. In the 2008 study there was about 22,000 SFE's over a 10 year period but the capital cost of the lake was only being used for about half of that so the cost didn't really reflect the unit cost of the lake it represented a blend of the capital cost of the lake and any future water that was bought from Dallas would be an operating cost not a capital cost. When the population projections went down and the calculations were completed there was only about 12,000 SFE's but that almost lined up with the remaining capacity of the lake. That is what tended to bump up the numbers. Those finding are a factor in staff not recommending the full charge. It was generating a large increase that staff didn't feel comfortable in recommending. There are a few more capital projects in zone 2. Staff is looking at an engineering news record constriction cost index escalator to the present worth of the capital. That relates to a little fewer than 14 percent inflation cost over five years. One of the things that staff would tend to recommend is to consider adjusting the impact fees to cover that inflation. Zone 1 includes a $500 increase and zone 2 includes a $900 increase. Russell asked why zone 2 is more expensive. Fisher answered it is on the southwest side of town, there are a lot of speculative growth in that area. It takes a lot of infrastructure to try and provide service in that area. It is a very rural area. Herring asked when and how are these fees collected. Fisher answered that it is time of building permitting. Smith asked how long the current fee has been $3,400. Fisher answered since 2008. Robinson asked what are some of the developments in zone 2 that have already platted that will be grandfathered using the $3,400. Fisher answered Country Lakes are still in zone 1. If Minutes of the Public Utilities Board Meeting August 12, 2013 Page 3 of 5 Cole Ranch comes in and starts platting properties they would be subject to zone 2 fees if they are adopted. Martin added that Inspiration is another one in that area. Robinson stated that if there is a current phase in Country Lakes that has a lot in it the fees will be $3,400, Fisher agreed. Smith asked if the maximum fees of $4,593 and $5,753 are what were recommended by the study. Fisher answered there are two terms one is assess the other is collect. The study recommends you assess the fee at what you can legally do and then you collect what you want to collect. Smith then clarified that the study did not come up with the $3,900 and $4,900, Fisher agreed. Herring asked if there is a commercial impact fee. Fisher answered yes they are based on meter size and the multiplier associated with the bigger meters. Smith asked what the justification is going from $3,400 to $3,900. Fisher answered the primary justification is because we are adjusting fees to represent the present value of the capital investment. Over time those numbers will continue to increase due to inflation. Smith asked if Fisher anticipates raising the impact fees between now and the next study, Fisher answered no. Fisher then stated that every time staff has worked on impact fees there has been a discussion relating to encouraging growth in the interior infill area. Staff has talked at moderate length in the past about the lines not having to be extended. There may be preexisting credits, if it is a re- development situation and there was a prior meter there they get credit for it. The infill zone has a northern boundary of Windsor, Bonnie Brae on the west, I -35 on the southern area and Nottingham and Woodrow on the east. The max fee in the zone IA (infill) would be $3,167. If this zone was created the staff recommended fee would be $2,700 the rest of zone IB would be $4,100 and zone 2 at $4,900. If the infill is lowered the remainder would be raised to balance it out. Robinson asked who will be providing water to the Hillwood Development north of 407 on I -35. Fisher answered that will be Northlake. Upper Trinity will be supplying the water. Herring asked why Garland impact fee is so low. Fisher answered that Dallas has no impact fee and neither does Plano. It just depends on where a city is in the growth cycle. As they reach build out they are not getting that much new customer growth opportunity. Smith stated at the beginning Fisher made the comment that zone 2 was implemented because why should zone 1 pay for infrastructure that is just benefiting zone 2. Smith isn't sure the same argument couldn't be made for zone 1A when all of zone 1B subsidizing the infill. Their impact fee is going from a proposed $3,900 to $4,100. The infill is going from a proposed $3,900 to $2,700. Smith believes the differential is too much. Fisher stated that staff is trying to gives some alternates. Smith is not opposed to the creation of zone 1A but believes the numbers need to be closer. Robinson stated that you could also argue the point that zone 2 would be the greatest potential to affect the ad valorium tax from a Minutes of the Public Utilities Board Meeting August 12, 2013 Page 4 of 5 development standpoint. Cheek added that when the infill was looked at years ago initially it was presented as `we are trying to help the areas with low income housing'. This is more trying to promote more infill structure around the new entertainment area. Smith's opinion would be if an infill zone is to be created to leave the number at $3,400 and see what affect it has on the $4,100. Martin stated we can take a look at it. Robinson asked while we are looking can we look at zone 2 he would like to take into consideration what will drive the ad valorium values in that area. Smith asked to see all the impact fees and recommended changes on one sheet. Fisher added that this will be taken to the Capital Advisory Committee on Wednesday, August 14 and get feedback from that group as well. Russell asked how many infill lots are in zone 1A. Fisher stated he would have to research that and find out but the growth suggested is 18 percent. Fisher reiterated that the Board would like to see a tighter differential between a proposal for zone IA and 1B and some concern of the magnitude of the fee in zone 2. The Board agreed. Joel Nickerson, Water Utilities Coordinator, gave the wastewater presentation. One thing for the wastewater impact fees is there is a zone 1 and zone 2 but they are different from water. Zone 1 includes most of the city zone 2 was created in the 2003 study anticipating growth north of Loop 288. Martin added that zone 2 was also because of the different Clear Creek Wastewater Treatment Plant that was proposed. The first part of the calculation is regarding the population growth, the current study is projecting half the growth from the 2008 study. Nickerson showed a map with all the Capital Improvement projects on it for wastewater. The CIP for zone 2 is simple a lift station and an interceptor and a future Clear Creek Plant, that growth again has not occurred. The existing projects that are already constricted are $90 million. The proposed projects from 2008 are $46 million in zone 1 and $29 million in zone 2. New proposed projects in 2013 are $11 million in zone 1. The study maximum impact fees for wastewater are $3,175 for zone 1 and $1,400 for zone 2. Zone 2 being lowered is almost entirely due to the change in the debt service credit. Staff recommendation for wastewater is in two parts. The first part would be to combine zone 1 and zone 2, and make one zone. The max fee would be $2,851 with staff recommended $2,200. That takes into account inflation, constriction cost inflation and new capital on the plan and some of the increase cost on the system capable. Cheek added he likes the idea of one zone. Nickerson added that wastewater is also seeking input whether to create an infill zone. There were maps shown with the zones. Infill zone study maximum fees include zone IA $1,285 and zone 1B $4,010. Staff recommendation if an infill zone were created would be zone IA $1,285 and zone 1B and zone 2 $2,400. Minutes of the Public Utilities Board Meeting August 12, 2013 Page 5 of 5 Staff recommends that there be a single impact fee zone with the impact fee at $2,200. Smith stated that his comments with wastewater are the same as water as far as the impact fee for the infill. The differential is too much. There was some further discussion regarding the impact fees. Smith asked if there could be an infill zone for water and not wastewater. Martin answered yes. Martin stated that staff will come back with the information. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 EXHIBIT 7 DRAFT MINUTES PUBLIC UTILITIES BOARD August 26, 2013 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas is present, the Chair of the Public Utilities Board will thereafter convene into an open meeting on Monday, August 26, 2013 at 9:00 a.m. in the Service Center Training Room, City of Denton Service Center, 901A Texas Street, Denton, Texas. Present: Chairman Dick Smith, Secretary Randy Robinson, Leonard Herring, Barbara Russell, Phil Gallivan and Lilia Bynum Absent: Vice Chair Billy Cheek Ex Officio Members: Howard Martin, ACM Utilities and George Campbell City Manager OPEN MEETING: ITEMS FOR INDIVIDUAL CONSIDERATION: 7) Receive a report and hold a discussion on the 2013 Water and Wastewater Impact Fee Study. Discuss and provide guidance on adding a third impact fee zone related to the City's infill zone. Discuss maximum impact fees and provide guidance on staff - recommended impact fees. Tim Fisher, Division Manager, made the presentation. Fisher incorporated the information from the last meeting that the Board Members had suggested. The new staff recommendations for the Impact Fees without an infill zone are $3,800 for zone 1 and $4,500 for zone 2. Recommendations with an infill zone are $3,100 for zone IA (infill), $3,900 for Zone 1B (rest of zone 1) and $4,500 for Zone 2. Herring asked if these fees are based on the 2008 study, Fisher responded they are based on the current study. Smith asked Fisher to go through a small portion of the presentation from the last meeting for Mr. Gallivan and Ms. Bynum. Martin suggested the map with the infill areas. Gallivan read the information and understands the concept with and without an infill zone. Bynum is processing the information. Fisher briefly summarized the presentation from the last meeting. There was some further discussion on the fees. Joel Nickerson, Water Utility Coordinator, made the wastewater presentation. Nickerson stated that as a reminder the wastewater zones are different from the water zones. Zone 1 covers everything south of Loop 288, which is the existing customer case. In 2003 the impact fee study created Zone 2; staff was anticipating growth from Clear Creek Ranch which has been since called the Hills of Denton. The anticipating growth in Clear Creek Basin was the cause of the Zone 2 implementation to pay for the infrastructure that would have been put in for that group. Draft Minutes of the Public Utilities Board Meeting August 26, 2013 Page 2 of 4 1 Martin added that in Zone 2 another wastewater plant was contemplated. Zone 1 is handled by 2 our existing wastewater treatment plant. 4 Nickerson showed a map with the CIP that has been adopted from Zone 1. The CIP includes 5 interceptor projects in the Hickory Basin, Pecan Basin, and Cooper Basin and the wastewater 6 plant capacity. Zone 2 CIP map was also shown. The infrastructure to support Zone 2 is 7 separate, there are an interceptor, a lift station and a new plant. The Zone 2 fees are based on a 8 different set of infrastructure than Zone 1. 9 10 Nickerson then stated that the study maximum fees, if we keep our existing two zone stricture, 11 $3,175 Zone 1 and $1,400 in Zone 2. Staff recommendation has not changed from the last 12 Public Utilities Board Meeting. It is in two parts, the first part is to combine the zones and have 13 only one zone. This shows that staff does not anticipate the growth in zone 2 in the next 5 -7 14 years. Smith asked what would happen if that growth did take off and that new plant did 15 need to be constructed. Nickerson answered if from some reason the growth did take off, the 16 wastewater department is collecting impact fees. That infrastructure is in the CIP, so the impact 17 fees would be applied. If it happened in five years staff could also carry on with the CIP but split 18 out the zones again at that time. For now staff recommends combining the zones. When you 19 combine and redo the math on the maximum fees, that amount is $2,851 for the City as a whole. 20 Staff recommends $2,200. 21 22 Lastly the other piece is the infill zone decision. Nickerson showed a map of what that would 23 look like. Remember zone IA is only served by the interceptors that run through the middle of 24 the city plus the plant. When the infill zone is taken out the maximum fees are $1,285 for the 25 infill zone $4,010 for the rest of the existing zone 1. Staff s recommendation when the zones are 26 combined and the infill is carved out, the maximum fee for the infill is $1,285 and the rest of the 27 city is $3,374. Staff recommends $2,400. For wastewater, staff is looking for direction to create 28 an infill zone or not and the staff recommended fees. 29 30 Smith stated if the costs support the fees then maybe we should keep them. Coulter added 31 that one of the things that staff is dealing with right now is the EPA issue with the 32 inflow /infiltration out in the system. If the City gives a break to the infill zone because currently 33 there are no big projects going on, they will get the break of $1,200. The area of town that has 34 the greatest problems of inflow /infiltration is the infill area. Staff wants to go through and 35 address the problem with the EPA over the next three to five years. There will be projects in the 36 area that we do not know about just yet. The storm water detention concept that we have around 37 town when storm water fills up in basins, the wastewater department potentially may have to do 38 this same type of thing with the wastewater flows by adding an underground storage tank. That 39 tank would hold the waste and bleed back into the system as flows recede. There are still 40 uncertainties so staff feels that the community as a whole should participate equally in the 41 inflow /infiltration activity. 42 43 Smith asked for other opinions from the Board. Herring asked about the political pressure 44 that is being exerted and by whom. Campbell answered in general whether in zoning and 45 development review there is a sense that the more you can do to encourage growth and 46 development in the infill area it better utilizes the infrastructure. Council would encourage that Draft Minutes of the Public Utilities Board Meeting August 26, 2013 Page 3 of 4 1 as much as possible. Campbell added that this might be one element by giving people a break on 2 the impact fees but believes Coulter has made a good case for the fact it is hard to separate all the 3 Capital Improvement needs in the defined area from the needs of the community as a whole. 4 Gallivan added that if the incentive difference is only a couple of hundred dollars it is no 5 incentive, it has to be a decent spread to encourage infill. Robinson added that if we carve 6 out the infill part our maximum fee brings that fee down too low. We are at the maximum 7 fee on infill at $1,265. It does create a difference and encourages infill development but the 8 study doesn't take into account the issues with the inflow /infiltration. Robinson is leaning 9 toward one zone for wastewater. 10 11 Coulter added that the differential in water is $1,400 between zone 2 and the infill. Fisher stated 12 it is $800 when the zones are split. There was a larger split originally but there was sensitivity 13 predominantly on the level of discount and that it pushed the levels higher. Gallivan stated that 14 is a decent incentive spread for water. Fisher lastly commented on the peripheral development 15 sometimes they have an offsite line and they build their own lines. On infill more often they are 16 tying to an existing line. 17 18 Herring asked if we currently have infill zones for water and wastewater. Fisher answered 19 no, it is a new complication. Herring asked if staff is recommending the infill. Fisher stated 20 that staff is providing it as an option. From a revenue standpoint to some degree if staff keeps 21 the numbers with some level of proportionality it is a revenue neutral. It is skewing a little bit 22 because of the sensitivity of the higher numbers. Staff doesn't necessarily want an infill. 23 Coulter added that staff is not recommending an infill in wastewater. Fisher stated that water is 24 neutral. Fisher's personal opinion would be to not create the zone because it is easier to not have 25 it. 26 27 Herring went on to say that we are operating a utility not a political machine we are in 28 charge of a utility not the politics involved so why would we get involved with the infill 29 which adds complexity. George Campbell answered that he doesn't disagree with the 30 comments and isn't concerned with whether the infill is added or not. It is perhaps more logical 31 on the water side than the wastewater side. The issue shouldn't be what makes it less complex 32 for us to administer; staff can deal with it however it comes along. Campbell does think in the 33 overall perspective of things whether or not we do things to help create an environment where 34 we are encouraging core city development and avoiding the leap frog development that we need 35 to look at if the numbers are neutral we need to look at what we are doing is achieving the 36 objective. In the long run trying to develop from the core city out and have someone paying for 37 the infrastructure that is built on the outside of that area. Gallivan added it is good economics 38 to him to have the infill. There is money involved to the benefit to the City to promote the 39 zone 1A growth. Robinson sees having the three zones puts a higher impact fee in those 40 areas that are gonna develop quicker. Seventy five percent of the growth is outside of the 41 infill. You will get more impact fees from the area that is going to cause the need for more 42 capital improvements. Campbell stated that impact fees do become an issue every time 43 someone wants to develop a lot. 44 45 Chair Smith believes the numbers look better than at the last meeting. Smith suggests the 46 infill zone for water to be created with the recommendation from Fisher regarding the Draft Minutes of the Public Utilities Board Meeting August 26, 2013 Page 4 of 4 1 impact fees. On the wastewater side recommend combining zones 1 and 2 and having one 2 impact fee, no infill zone. 4 Robinson moved to recommend the three zone approach from the water impact fee which 5 includes infill. Regarding the wastewater side the zones would be combined to have one 6 zone with the recommended rate of $2,200. There was a second from Gallivan, vote was 6- 7 0 approved. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 EXHIBIT 8 DRAFT MINUTES CAPITAL IMPROVEMENTS ADVISORY COMMITTEE September 11, 2013 After determining that a quorum of the Capital Improvements Advisory Committee of the City of Denton, Texas is present, the Chair of the Capital Improvements Advisory Committee thereafter convened into an open meeting on Wednesday, September 11, 2013 at 6:09 pm in the City Council Work Session Room, City of Denton City Hall, 215 East McKinney Street, Denton, Texas and considered the following specific agenda items listed below. Present: Brian Bentley, Frank Conner, Thom Reece, Dr. Jean Schaake, Jim Strange, Devin Taylor Absent: Dr. Ken Dickson, Jessica King OPEN MEETING ITEMS FOR INDIVIDUAL CONSIDERATION 1) Consider a recommendation of approval of the minutes of the August 14, 2013 Capital Improvements Advisory Committee meeting. Committee Member Conner moved approval of the August 14, 2013 minutes. Committee Member Reece seconded. Approval passed (6 -0). 2) Receive a report, discuss and deliberate, and make comments on the 2013 Water and Wastewater impact fee study results. Joel Nickerson, Water Utilities Coordinator, summarized the impact fee update process to that point. Nickerson discussed the Water impact fees. The maximum fees calculated for Zone 1 were $4,593 and $5,753 for Zone 2, which covers southwest Denton. He said that original staff recommendation was $3,900 for Zone 1 and $4,900 for Zone 2. The Public Utilities Board gave staff input that the gap between the fees was too large and that the $4,900 fee for Zone 2 was too high and might discourage growth in Zone 2. The staff recommendation incorporated constriction cost inflation and accounted for some strange math in the 2013 study, which made the maximum fees higher than expected. Staff was more comfortable with $3,900 for Zone 1 and $4,900 for Zone 2. The revised staff recommendation that incorporated the PUB comments was $3,800 for Zone 1 and $4,500 for Zone 2. Nickerson said that the second part of the fee study was to consider an infill zone. The maximum fee for the infill zone carved out of Zone 1 [called Zone IA] was $3,167 and for the rest of Zone 1 [called Zone 113] was $5,250. The infill zone does not affect Zone 2 maximum fees. Staff recommended $3,100 for the infill Zone IA, $3,900 for Zone 113, and $4,500 for Zone 2. Staff asked for feedback on fee stricture and whether or not to infill zone. Draft Minutes of the Capital Improvements Advisory Committee August 14, 2013 Page 2 of 5 1 The PUB adopted a recommendation of the staff impact fee recommendation and to adopt the 2 infill zone. 4 Dr. Schaake said that the revisions seemed rational and in line with the CIAC 5 discussion. The Zone 1A and Zone 1B split was new from previous times. Nickerson said 6 that staff has not taken a position on the infill zone but that was the recommendation adopted 7 by PUB. Schaake said she thought it was the consensus of the CIAC that splitting Zone 8 1 was a good idea. 9 10 PS Arora, Water Utilities Assistant Director for Wastewater, showed the current Wastewater 11 zones. Zone 1 covers the city south of Loop 288 and Zone 2 covers the area north. He 12 discussed the capital projects planned for Zone 1, which are the basis for the development of 13 impact fees. He discussed the projects to serve the Hills of Denton project in Zone 2. Arora 14 said the maximum fees calculated by the consultant came in at $3,175 for Zone 1 and $1,400 15 for Zone 2. Combining the two zones, which staff recommends and PUB is going in the 16 direction of having just one zone, has a maximum fee of $2,851 and a staff recommended fee 17 of $2,200. Arora said that when Zone 2 first started, the Clear Creek Ranch/ Hills of Denton 18 project was supposed to start quickly. The sewer line and wastewater plant were designed 19 and got a permit from TCEQ but staff doesn't see signs of that project developing at this 20 time. To make it easier administratively, staff recommended combining the zones and having 21 one fee. 22 23 Arora said that staff looked at the infill zone, but Wastewater is not the same as Water, which 24 is interconnected. Only the Pecan Creek interceptor, not the Cooper Creek and Hickory 25 Creek interceptors, flow through the infill area with the plant shared in common. That shifted 26 a lot of the cost of development to Zone 113. Zone IA came it an $1,285 and $4,010 in Zone 27 113. Staff said we are working with EPA, which causes impact on how fast projects must be 28 done and will cause financial stress on the utility. We need to be able to recover costs from 29 everybody coming into the system. In the infill zone, a lot of development is redevelopment, 30 which gets a credit for the existing meter. If water demand is not increased, there is no 31 impact fee. Development with increased water demand only pays for the excess water 32 demand created. Already in the infill zone, the impact fee is not a major issue. So, the 33 recommendation is to create a single impact fee zone. Considering what is coming from 34 EPA, which is going after cities all over the county, including San Antonio, which has to 35 spend $1.2 billion over 10 years and pay a fine of $2.4 million, we will have to put many of 36 these projects in a five- to seven -year window. We need to be able to get money from all the 37 sources we can and apply it to bonds we will be selling. The $2,200 fee will recover the 38 inflation factor, about 14 percent, from 2008. A fifty percent credit on the fee is a little over 39 $2,100. With the calculated credit, the maximum fee is $2,851 so we went to $2,200. PUB 40 liked this, so their recommendation is to go with one impact fee zone. They are looking at 41 three zones for Water, including the infill zone, but just one zone for wastewater. 42 43 Committee Member Strange asked what the steps are to change the fee from the 44 recommended amount to the maximum. Arora said that within the five year window, staff 45 could come back to the Committee and ask, with the flexibility to go to the maximum. 46 Draft Minutes of the Capital Improvements Advisory Committee August 14, 2013 Page 3 of 5 1 Committee Member Taylor asked how many meters or customers there are for Water 2 or Wastewater. Arora referred to the report [Table 6]. 4 Dr. Schaake asked if action from the Committee was required. Arora asked that if the 5 Committee agrees with the staff recommendation, it can make a motion to take that to the 6 Council based on staff recommendation. Arora said that staff could prepare a memo for the 7 Committee to sign. Nickerson said that the last page in the Committee packet were the 8 comments submitted by the Council in 2008. Staff could draft a memo that follows that and 9 provide it to the Committee for feedback, and could submit Committee minutes. 10 11 Committee Member Conner asked whether there had been public feedback over the 12 discrepancy in Zone 1 and Zone 2 fees because the PUB was concerned about the 13 disparity. Arora said that the PUB thought the difference was too large. There is flexibility 14 to lower the fee, but we can't go beyond the maximum, so they chose to reduce the disparity. 15 Conner asked if staff had gotten complaints from people that felt they weren't getting a fair 16 shake because they are in a different zone. Arora said that issue had not come up. In fact, one 17 community wanted to participate in it so they could move forward with their projects. PUB 18 meetings are posted, but nobody from the development community came to discuss that. At 19 the Council there will be a work session and public hearing. 20 21 Committee Member Bentley asked how the difference between the original staff 22 recommendation for Water Zone 2 of $4,900 and the revised recommendation of $4,500 23 was made up. Arora said that ratepayers would pay for it. Bentley said that basically we 24 are subsidizing new development so our older developments, who need their own money 25 for repair, are actually subsidizing new properties. Arora said that staff look at impact 26 fees in relation to other cities. If it is a competitive matter for the city to grow, that is 27 considered and we make some compromises in how much to charge. 28 29 Committee Member Strange said to remember that the rate payers in the new 30 developments are paying for repairs on the old stuff too. 31 32 Bentley said he didn't understand how $400 keeps somebody from buying a new house. 33 Arora said that was the staff s recommendation but the Committee could choose to adopt 34 something different. 35 36 [C- osstalkj 37 38 Strange said that when you have conversations with customers and say it's only another 39 $1,000, and when they write checks for it, they get tired of hearing that. 40 41 Dr. Schaake said that the Committee had before it recommendations for Water and 42 Wastewater based on the Committee's previous meeting and what the Public Utility 43 Board has put into the mix. Dr. Schaake asked for a motion on what could go forward 44 to City Council for the Water impact fee and a separate one for the Wastewater impact 45 fee. Then the Committee could ask staff to prepare a summary of these 46 recommendations that every member of the Committee would sign off on. Draft Minutes of the Capital Improvements Advisory Committee August 14, 2013 Page 4 of 5 2 Nickerson said there was no staff recommendation on whether to adopt an infill zone for 3 Water and asked the Committee to include whether or not in adopt an infill zone in their 4 recommendation. 5 6 Dr. Schaake said that she thought there was consensus on the infill zone last time. 7 8 Bentley said he would like to see the infill zone and was comfortable with the original 9 staff recommendation of higher fees. These fees are only a portion of the real cost and 10 are already being subsidized. To put it off and artificially lower it is just lying to 11 ourselves. He said that it costs what it costs. 12 13 Dr. Schaake said that maybe the Committee should make three motions with the infill 14 zone separate because that is new this time around. 15 16 Bentley made a motion to adopt the infill zone. Conner seconded. Taylor asked whether 17 the motion was an infill zone for both Water and Wastewater. Dr. Schaake said that the 18 motion was for Water only because Wastewater was going to combine zones. Taylor 19 clarified that the recommendation would be in favor of an infill zone for Water and not 20 for Wastewater. Approval passed (6 -0). 21 22 Dr. Schaake asked to see the staff recommended Water fee. Dr. Schaake asked whether 23 the Public Utilities Board would have further input to the revisions made by staff after 24 the Committee had given their recommendation to the City Council. Nickerson said that 25 the PUB approved the revised staff recommendation and they did not have further input to 26 provide. Dr. Schaake asked whether staff had taken the PUB decision into account and 27 now staff recommendation was the bolded numbers. Conner asked whether the staff 28 recommendation was based on the PUB decision. Nickerson said that the revised staff 29 recommendation was based on PUB feedback and the PUB approved the revised staff 30 recommendation. Taylor asked if the Committee were to give a different 31 recommendation, would it would need to go back to PUB or if there would be two 32 separate recommendations to the Council. Nickerson said there would be two separate 33 recommendations. Taylor said he shared Commissioner Bentley's concerns. He also saw 34 that the infill fee had been raised by $400 in the PUB version, and the entire point of an 35 infill district is to lower the fees and encourage infill development. 36 37 Taylor moved to adopt the original staff fee recommendation for Water. Bentley 38 seconded the motion. The motion passed (4 -2; Bentley, Conner, Schaake, Taylor in 39 favor; Reece and Strange opposed). 40 41 Taylor moved to set a single Wastewater impact fee zone and set the fees at $2,200. 42 Bentley seconded the motion. The motion passed (6 -0). 43 44 Dr. Schaake asked to note that the Committee wanted to pay for the impact that is 45 created and that the lower number was thought appropriate for the infill zone. 46 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Draft Minutes of the Capital Improvements Advisory Committee August 14, 2013 Page 5 of 5 3) New Business — This item provides an opportunity for Capital Improvements Advisory Committee members to suggest items for future agendas or to request information from the Assistant City Manager of Utilities and /or the Director of Water /Wastewater Services for future meetings. No items 4) Official Action, if necessary, on Closed Meeting item(s) under § §551.071 - 551.088 of the Texas Government Code, as amended. No items 5) Adjournment. The meeting was adjourned at 6:36 pm. PudbIhc V ieai -ih'� AGENDA INFORMATION SHEET AGENDA DATE: November 5, 2013 DEPARTMENT: Denton Municipal Electric (DME) UTILITIES ACM: Howard Martin, 349 -8232 �. SUBJECT: Hold a public hearing and consider approval of the proposed siting of an electric substation located east of Masch Branch Road and approximately 0.3 miles south of FM 1173 in the northwestern area of Denton Municipal Electric's certificated service territory, in Denton County, Texas. BACKGROUND: The Denton Municipal Electric (DME) Capital Improvement Plan includes a project to constrict a new substation near the northwest corner of the Texas Municipal Power Agency (TMPA) 138kV transmission loop to allow interconnection of Oncor and TMPA 138kV transmission lines. This interconnection is necessary to provide a new 138kV source for the Denton area. A map is attached as Exhibit I that shows the general area of the proposed station and the TMPA and Oncor 138kV lines in the area. A new 345kV to 138kV transmission substation is planned by Oncor northwest of Krim. Oncor will reconstruct its existing single circuit 138kV transmission line to bring power from the station northwest of Krim into the Denton area. The location for the new DME station was chosen for two primary reasons: 1. The proposed location makes maximum use of existing transmission line easements and results in no new easements being necessary other than the very short sections required to route the connections into the proposed new station. 2. The proposed location for the new station is at the point farthest from Denton West that can be obtained using existing transmission line easements. Denton West is, currently, the only major 13 8kV source for Denton and the surrounding areas. Siting major delivery points distant from each other provides the best arrangement for reliability. Greater physical separation gives the best statistical chance to avoid having a single storm event affect both locations. DME began analysis of the power supply situation with its 2010 FERC Form 715 Power System Assessment. This study indicated an overreliance on the Denton West Interchange for power supply and the need for a new major 138kV source, not only for Denton but for the region. Following the study, DME initiated discussions with Oncor, TMPA, Brazos, and Garland to seek a solution to the need. A joint study group was formed; and, after more than two years of evaluation and discussion, a solution has been identified. Oncor plans to constrict a new 345kV to 138kV substation in its existing Krim West station and constrict two 138kV transmission lines from the station, one for connection to Brazos and one for connection in the Denton area. The Brazos connection will indirectly benefit Denton by allowing power to flow into the Denton North Interchange over an existing line. This Brazos line is not adequate for Denton to receive the full benefit of the new 138kV source; consequently, the proposed interconnection between Oncor and TMPA transmission lines at the proposed station location is necessary. The proposed new station has been referred to geographically as the Northwest Switch/ Substation site. The proposed name for the station is Masch Branch. The station will initially only have transmission switches and breakers and should be referred to as a "Switch." Space will be provided for substation transformers to be installed in the future at which time the name will be changed to "Substation" to reflect the change in usage. DME held a public meeting to inform and receive feedback from the community regarding the siting of the planned Northwest Switch Station. The meeting was held at Blanche Dodd Intermediate School in Krim on the evening of September 5, 2013. DME notified the 116 residents and property owners within 500 feet of the four proposed sites. • 9 signed in at the meeting • 6 filled out comment cards • 2 comments stated no site preference • 4 comments were in favor of "Option 1" • 2 comments were opposed to "Option 2" • 2 comments were opposed to "Option 3" & "Option 4" OPTIONS: 1. Approve "Option 1." 2. Do approve "Option 1." RECOMMENDATION: In light of information received at the open house meeting, DME recommends that the City Council approve "Option 1." PRIOR ACTION/REVIEW (Council, Boards, Commissions): The Public Utilities Board was informed of this project and meeting on August 12. The City Council was informed of this project and meeting on August 13. On October 14 the Public Utilities Board (PUB) voted to recommend approval of Option 1. See pages 1 -4 of Exhibit "5" and Exhibit "6" for an account of the discussion and comments from the public regarding the project. 2 EXHIBITS: 1. Denton Area Transmission Map 2. Map of site options for the Northwest Switch Station. 3. Sign in sheet from the September 5 meeting. 4. Comment sheets from the September 5 meeting. 5. Draft minutes of the October 14 PUB meeting. 6. Comment cards from the October 14 PUB meeting. Respectfully submitted: Phil Williams General Manager Denton Municipal Electric Prepared b I ' rian Daskam Energy Services Development Officer Denton Municipal Electric Existing Oncor single circuit 138kV transmission line to -. Rraaos 138kV be reconstructed as double circuit in existing casements North Lakes Denton North Substation ❑ Tnterchange/Sub ❑ slahon Kings Row ❑ —General area for Substation Future new DME Station Kings Row „ Substation Cooper Jim Christal Substation Oncor345kV (to Jacksboro) Kann Tap Switch Oncor) R.D. Wells Interchange Denton West Interchange TMPA 345kV (to Roanoke) RoonieRrae Substation ❑ Hickory ❑ Substation Fort Worth Substation Oncorl3SkV (to Krugorviltc) Arco Switch/ Substation McKinney E:1 Exhibit 1 Substation Denton Municipal Electric Tndusnial Denton Area Transmission System Woodrow Locust ❑ Substation Substation SubslaUOII ❑ Spencer Spencr LEGEND Switch ihitcrchange Station -DME Station - Others DME G9KV DME 138KV ONCOR 138KV ONCOR 345KV Pock[*., TMPA 13SKV TMPA 345KV t BRAZOS 13SKV VSWiLCfi u " "P Corintl, Substation (Onto,) 3 3s n �,s' "� ����� 8kV W e (to ewsvlle) 5 EXHIBIT 2 NOTIFICATION MAP FOR NORTHWEST SWITCH STATION Option Legend Northwest ® Subject Property 500 Ft Boundary Switch Station 177 LN N W E S 500 Ft Boundary SEQUOIA DR APPALOOSA DR WITHERS WAY 0 tion Option \ 1 -a SANTA FEL 'TR m p2 \ O U \ `" W PI A -TRL Co ¢ ROBMAf a z cn U LITTLE BROOK RD KNIGHT LN r �AOO �",� Option Legend Northwest ® Subject Property 500 Ft Boundary Switch Station 177 LN N W E S EXHIBIT 3 1ME Public Involvement Meeting Septemiber 5, 2013 ,UATO EXHIBIT 4 m u N I C I P AN, Northwest Switch Station Pro of 1-1,FCTRIC Questionnaire September 5, 2013 Thank you for attending this Public 01pen House Meeting. We do not have a presentation planned for this meeting, and you are invited to come and go at your convenience. We would like to hear your cornments, on the planned Northwest Switch Station site. Mease take a few minutes to answer the following questions and then return this form to us this evening. Your completed questionnaire will help DME understand public interests and! concerns about the Northwest Switch Station Project. 1. Are you a resident in the area of the planned switch station? Yes U No 2, If not, please indicate your affiliation • Agency • Developer • Landowner • Other 1 Do you understand why this switch station is needed? X- Yes U No Do you have comments on the purpose and need of the project? k fi' 4. Were the exhibits and iniformatiion presented helpful for your understanding of the project? Yes No How could we improve this effort? 5. Do you believe all relevant factors are being considered? 6. Do you have comments or special concerns that YOU Would like the project team to know about or to take into consideration? 5 . 4- z <.DKz -N, I :n, 7. Please provide your name and mailing address (optional): Name: -,.—J k, Address: �Rh City, State: Zip Code. Jim F. Bell — Land Owner 'Tracts 3 and 4, Jam es Ha ney S urvey, 32 acres September 5, 2013 REASONS TO REJECT OPTIONS 3 and 4 Y 'Fhe parcel of land on which Option 3 is sited (16 acres, 'Tract 4, James 1-lal,iey Survey) was purchased by my father in 1963, using'Fexas VA Land Board benefits. He transferred it to nie in 1989, prig-narily due to his concern that lie would lose a pejiding lawsuit brought against hirn by the FDIC, forcing him to declare bankruptcy to protect what ineager assets he had. He lost over a million dollars (his entire retirement) in batik stock due to the F' IC closing small local banks lie was affiliated with. The FDIC lost their lawsuit (see Bell vs. MIC), with a verdict of"Not GUilty On all 43 counts. Ile did not take bankruptcy. 'Phis property represents my retirement - a piece of land that I plan to build on arid create as legacy Ibr my son. Building as switching station oil this property would devastate birth my Future plans and retirement, which are scheduled to commence January 1, 2014 at which time I will have turned 59 1/,z, enabling me to utilize IRA funds I have rigorously set aside during the lean times of rny working career. Any portion of this property, or adjacent property, utilized for as high-voltage switching station would render time entire property unusable tome. I bought the adjacent 16 acres ('I'raet 3, Jarnes, flancy Survey) from nay lather's friend, Dr. MacAl✓xander. fleand my father were dentists that had established dieir first offisces across a breezeway froin each other, and they became friends, cacti covering 1:'or the other when necessary. When I received the transfer of'my father's property in 1989, 1 found Ile and Jr. Mac Alexander were paying more in property taxes than in mortgage payments and. was able to initiate as 1-d-I agricultural exemption for theiii by having as local farmer grow wheat on their land. I had expressed an interest to Dr. MacAlexandcr in purchasing, his latidshoLtld lie evei-wai,it tar sell, His diagnosis with terminal pancreatic cancer caused him to contact me regarding the purchase in 1998., and I consurm-nated the purchase from, his estate soon after his death. This was a difficult purchase for me, as I had just undergone a contentious and expensive divorce which forced me it) borrow the down payment nioney for the property from my brother, and the seller (Estate) financed the property purchase for 10 years. As a young child, my father and brother and I would go rabbit hunting on "Cottontail Acres", as we called it then. We also, dove hunted on the property. I taught my son how to shoot as shotgun on the prol,.)erty, and he shot his first dove there. Utiffirtunately, the City of Denton annexed the property in 2010, which eliminated our dove hunting, due to the law against discharging firearms within the city limits. I have a deep connection with [lie land that is designated as Option 3, and building a switching station at that location would imperil my future and retirement dreams, as well as my son's future and any legacy I could build to leave him. I am very aware of exposure to high voltage electricity, due to the possibility of DNA damage from continued EMFand ELF exposure and other health concerns. As soon as it was recommended that pregriant women not use electric blankets, mine was consigned immediately to Goodwill, even though there are many times that I wish I could use one, as I do not use ANY heat during the winter (to save money) while waiting to begin construction on my retirement hone on the Denton property. I don't use a cell phone because of the possibility of electrical/radio frequency proximity damage, When working at a desk on the computer during my commercial real estate banking career, I kept the CR r I'monitor Pushed as far as possible from me on the desk to niminuze exposure, This is a very real danger to me, and one that should not be taken lightly, notwithstanding the lack of documented medical research. There is no documented medical research proving that aluminum cookware causes Alzheirners disease, but the mere suggestion that it rilay be a causal factor is sufficient, it) my mind, to avoid using it completely. Tylenol was supposed to be the safest pain reliever, until lojvy .6 terni research has now found that it causes liver drainage. Reiect.0ption 4 The proximity to high voltage transmission lines that would occur should Option 4 be chosen would have serious negative impact upon my future retirement and enjoyment of my pic)perty due to locational proximity and the possibility of EMI,and ELF long-term chromosomal damage. Other Q2gM Of the initial presentation of switching station locations Options 1-4, Option 1. appeonv to be the most advantageous, due to its location AWAY from the roadway and directly on the transmission line. There appears to be many other viable sites available on the West side of Masch Branch Road utilizing the existing easements already in place under the existing 13 8 kV and proposed 1.38 kV transinission lines that would both reduce site costs tea acquire and, .reduce costs necessary to build additional tie-in lines. Any future switching station would be best sited ad.jacent to the actual transmission lines, than across a road from them. W,TO N u N I c I F A L �Northwest Switch Station Proie E L J C T R I C Questionnaire Septernber 5, 2013 Thank you for attending this Public Open House Meeting. We do not have a presentation planned for this meeting, and you are invited to come and go at your convenience. We would like to hear your comments on the planned Northwest Switch Station site. Please take a few minutes to answer the following questions and then return this form to us this evening. Your completed questionnaire will help DME understand public interests and concerns about the Northwest Switch Station Project. 1. Are you a resident in the area of the planned switch station? 4 Yes Li No 2. If not, please indicate your affiliation U Agency LJ Developer • Landowner • Other 3. Do you understand why this switch station is needed? ,Oq Yes u No Do You have comments on the purpose and need of the project? 1—`.�-7" A. Were the exhibiits and information presented helpful for your understanding of the (project? .J� Yes u No How could we improve this effort?,, 5. Do you believe all relevant factors are being considlered? 6. Do you have comments or special concerns that you would like the project team to know about or to take into consideration? al '7^ Please provide your name and mailing address (optional): Name: Address: '/' " r6 City, State: TIV, Zip Code: R. ..... N /��t, TC I P A L Northwest Switch, Station; Proiect ELICTRIC Question nia ire, Seiptember 5, 2013 Thank you for attending this Public Open House Meeting. We do not have a presentation planned for this meeting, and you are invited to come and go, at your convenience. We would like to hear your comments on the planned Northwest Switch Station site. Please take a few minutes to answer the following questions and then return this form to us this evening. Your completed questionnaire will help DME understand public interests and concerns about the Northwest Switch Station Project. 1, Are You a resident in the area of the planned switch station? W Yes Li No 2. If not, please indicate your affiliation LJ Agency u Developer Li Landowner Li Other 3. Do you understand why this switch station is needed? U. Yes LJ No Do you have comments on the purpose and need of the project? 4. Were the exhibits and information presented helpful for your understanding of the project? Ad, Yes Lli No How could we improve this effort? k, 5. Do you believe all relevant factors are being considered? 6. Do your have comments or special concerns that you would Re the project team to know about or to take consideration? �Itol — , 1 L 41 46 fzds� — 0 e� k>^ f 7. Please Pdv%e`yAr J- na eand mailing address (optionally: r Name v a c J&-lk"d Address: 16Yk' City,Sta,te. a & i-iyx) Zip Code: Wc'TON I Northwest Switch Station Projec E C T R I C Qui!e,sit!ioni,nia ire September 5, 2013 Thank you for attending this Public Open House Meeting. We do not have a presentation planned for this meeting, and you are invited to come and go at your convenience. We would like to hear your comments on the planned Northwest Switch Station site. Please take a few minutes to answer the following questions and then return this form to uis thus evening. Your completed questionnaire will help DME understand public interests and concerns about the Northwest Switch, Station Project. 1. Are you a resident in the area of the planned switch station? Yes No 2. if not, please indicate your affiliation U Agency Li Developer Li Landowner U Other 3. Do you understand why this switch station is needed? A Yes Ll IN o Do you have comments on the purpose and need of the project? 4. Were the exhibits and information presented helpful for your understanding of the project? )� Yes U No How could we improve this effort? 5. No your believe all retevanit factors are being considered? 6. Do you have comments or special concerns that you would like the project team to know about or to take into consideration? A%r Z,z 7. Please provide your name and mailing address (optionM): Name Address:/� . ,5-v c y City, State-, 7--k Zip Code: "OkNTON Noirthwest S�witch St�ailtio�n Pro,iec EL E C T R I C Questionnaire September 5, 2013 Thank you for attending this Public Open House Meeting. We do not have a presentation planned for this meeting, and you are invited to come and go at your convenience, We wvouldl like to hear your comments on the planned Northwest Switch Station site. Please take a few minutes to answer the folliowing questions and then return this form to us this evening. Your completed questionnaire wili help DME understand public interests and concerns about the Northwest Switch Station Project, 1. Are you a resident in the area of the planned switch station? LJ Yes 4/1No 2. If not, please indicate your affiliation r-) Agency U Developer U, Landowner Other 3, Do you understand why this switch station is needed'? * Yes * No Do you have cornments on the purpose and need of the project? 4. Wer,,,, the exhibiits and information presented helpful for your understanding of the project? W Yes Li No How could we improve this effort? S. Do you believe all relevant factors are being considered? 6, Do you have comments or special concerns that you would like the project tearn to know about or to take into consideration? 7. Please provide your name and maiilling adclr (o tional): N1 a rn e: Address: 7�s City, State: Zip Code: Z 'MTON Northwest Switch Station Projec September 5, 20113 Thank you for attending th;is Public Open House Meeting. We do not have a presentation planned for thismeeiing,mmdyuwanmimvitedtmcmmeandgoatyourommyenhence.VVevvou|dkketohearVnur comments mm the planned Northwest Switch Station site. Please take a few minutes toanswer the following questions and then return thiis form to uis this evening. Your completed questionnaire will help DME understand public interests and concerns a,bout the Northwest Switch Station Project. L Are you a resident in the airea of the planned switch station? �No 1 If not, please, indicate your affifiat|mn L) Agency Developer Li Other 3. Du wmder�andywhythis switch s�tiomisneeded? U No Do you have comments on the purpose and need of the project? 4. Were the exhibits and information presented helpful for your understanding of the project? Lil Nn How could we improve this effort? 5. Do you believe all relevant factors are being considered? 6 Do you have comments or special concerns that you would like the project team to know about or to take into consideration? 7. Please provide your name and mailing address (optional): 0arne' Q4 ` f'~ � K/� �e-�S�~p~-- � x,`���^�v�v / ��` Address: ��m^&�L �y Cty State' - ' - - - ' ' &�r Zip Code: . _['k EXHIBIT 5 1 DRAFT MINUTES 2 PUBLIC UTILITIES BOARD 3 October 14, 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, October 14 at 9:00 a.m. in the Service Center Training Room, City of Denton Service 8 Center, 901A Texas Street, Denton, Texas. 9 10 Present: Chairman Dick Smith, Vice Chair Billy Cheek, Secretary Randy 11 Robinson, Leonard Herring, Phil Gallivan Barbara Russell and Lilia 12 Bynum 13 14 Ex Officio Members: Howard Martin, ACM Utilities 15 16 Absent: George Campbell City Manager 17 18 OPEN MEETING: 19 20 PUBLIC HEARING: 21 22 1) Hold a public hearing and consider making a recommendation of approval to the City 23 Council regarding the proposed siting of a substation located east of Masch Branch Road and 24 approximately 0.3 miles south of FM 1173 in the northwestern area of Denton Municipal 25 Electric's service territory; discuss, deliberate, provide staff with direction, and make a 26 recommendation. 27 28 Phil Williams, General Manager DME and Brent Heath, Engineering Executive Manager of 29 Energy Delivery, gave the presentation. William states as previously discussed with the Public 30 Utilities Board and City Council, DME has an aggressive CIP to replace substation and 31 transmission electric infrastructure but also to add new for growth and to increase reliability. 32 There is an opportunity with Oncor building new lines west of the city intersecting and bringing 33 new additional feed into the Denton system. The new station would serve two purposes, one to 34 provide additional electric feed into the electrical grid but also provide an additional substation 35 when the area develops in the future. When Loop 288 builds out and comes around we will need 36 additional distribution in that area. Heath reminded the group that a couple weeks ago there was 37 a presentation that recapped the $257 million worth of substation and transmission line projects 38 that DME has planned over the next five years. This is just one of the projects from that group. 39 Of those projects staff has to secure 140 acres with 65 tracts for the substation sites. Also have 40 to acquire 30 miles of transmission line easements across 235 tracts. This is just one of the 41 substation sites included in the five year CIP package. This is the Northwest switch station on 42 the south east side of Krim. This location has been chosen because of the NERC required FERC 43 715 report that DME worked on. The FERC 715 report requires DME to look at the 44 transmission system and do in -depth mathematical modeling analysis of the system to see where 45 if any deficiencies may exist. There were some deficiencies on the transmission system in this 46 area. A j oint task force has been formed with Oncor, TMPA, Brazos Electric Power and Garland 47 Power and Light. Solutions were determined that the Northwest Switch Station would solve the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Draft Minutes of the Public Utilities Board Meeting October 14, 2013 Page 2 of 11 deficiencies. Heath stated there was a Public Meeting on September 5. There were 116 notices mailed out with 9 people in attendance. There were six cards filled out with four people favoring option 1 and no oppositions. There was opposition to options 2, 3 and 4. Heath showed the options on a map. Staff is here today to show the information that was received at the public meeting. There were four positive comments for option 1. Staff's recommendation is for option 1. Chair Smith stated there were two cards for citizens to speak. The first was Sharon McKee, 1722 Villa Ct., Corinth, Texas. McKee stated that she owns option 2 property, 29 acres. The property was bought for an investment knowing that Loop 288 was going to be extended and expected development. If DME chooses Option 1 will that devalue her property. Smith stated that this board could not answer that question. Williams answered that Oncor has an existing line and is going to expand it. Heath followed by saying that the existing Oncor line nuns down the west side of Masch Branch Rd. With moving option 1 they would have to get into the substation site and get back out. It would have an impact on option 2 site. Williams then said that Oncor would have to pay fair market value for easement to cross option 2 to get to the site of option 1. Les Petersen, 4301 Masch Branch Rd, was in attendance for information purposes. Board Member Herring asked if this is a dual certified area and who serves the area in a distribution capacity. Williams answered it is at least Oncor and DME, not sure if CoSery is in that area. Sears knows that area is Oncor currently. Jim Bell, citizen, stated CoSery does serve the area he has had bids to provide electricity for his property. Herring asked if we currently have distribution in that general area. Heath answered not at this time but staff is making provisions with this switch location to be large enough so in the future as growth develops DME will be able to add two transformers to pick up the load growth in that area. Chair Smith queried that there is no question that DME needs a substation in that area. Heath stated that because of the transmission system now and in the future because of load growth a substation is needed in that area. Williams added that from a liability standpoint the FERC 715 study stated that there needs to be a switch station and an interconnect besides Denton West. Heath further stated that when DME met with the joint task force of Oncor, Brazos Electric, Garland Power and Light and TMPA the recommendation was that the station at this location was the best solution of all of the other solutions and was the lowest cost solution. Gallivan questioned that DME choose the east side and not the west side. Williams 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Draft Minutes of the Public Utilities Board Meeting October 14, 2013 Page 3 of 11 answered there is an apartment complex on the west side. The area that was chosen is an open field. Sears stated that DME tried to pick the area that would have the least impact from a transmission site use standpoint. Staff tried to get either on or adjacent to existing transmission lines as possible. Heath stated they were looking for a site that was large enough 8 -10 acres and still have room for buffers. Cheek wanted to address the question of property value understanding there would be transmission lines going in and coming out to get to the substation. Would the value question be for our Real Estate Department. Paul Williamson, Real Estate and Capital Manager, stated that in general wherever that substation site would be because of the likelihood of transmission lines and other entities it would certainly have a huge effect in the immediate area. Cheek added that it will also add new electricity for the area. Williamson agreed and when you talk about the market in general and make a sweeping general statement and say that the area will have something different because of the substation you could also argue that because power if there it could drive development. Williams added that RD Wells would be an example of where a substation has a positive effect on property values for commercial development. Herring asked about the routing and if option 2 wouldn't be better because of the in and out. Heath answered they were trying to keep it away from as many residents as possible. Sears also added that the biggest difficulty with option 2 is there is an environmentally sensitive area that cannot be encroached on, that would squeeze the area where the substation would be, the design would have to be changed. Gallivan asked if Loop 288 would cross into option 2. Williams answered it will turn and go south before the option. There was some further discussion regarding the alignment of Loop 288. Chair Smith asked if anyone else would like to speak on this subject. Ralf Ortiz, 1717 Santa Fe Trail, Krim asked how loud it would be. Williams answered there are existing substations in urban areas now. There is a `hum' if you are inside the substation but outside that drops off. Heath added that right now it will be a switch station there will be no transformer. Without a transformer there is no `hum'. Ortiz stated if it is going to generate traffic he had rather it come from Hwy 380 instead of FM 1173. Williams answered after constriction it will not generate traffic at all. Only a technician will go weekly. Sharon McKee asked the constriction timeframe. Sears answered it would be in service by late 2015. Jim Bell stated he owns the property for option 3. Bell has spoken with a number of DME staff regarding the site for option 3. That property was purchased by Mr. Bell's father 50 years ago. Bell bought the property adjacent to it 15 years ago. Bell opposes option 3. That is his retirement property. Smith added for information purposes that this Board would make a recommendation to City Council and they will make the final determination of the option. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Draft Minutes of the Public Utilities Board Meeting October 14, 2013 Page 4 of 11 Smith closed the Public Hearing and asked for a recommendation. Board Member Herring made the motion to recommend option 1 with a second from Board Member Russell. Gallivan stated that he understands the position of residents for options 2 and 3. Robinson's only comment was regarding option 2, as much of the existing easement that can be used to get lines in and out of the switch station, he would encourage using. Both Williams and Sears agreed that they would do their best to use the easement. CONSENT AGENDA: 2) Recommend approval of an ordinance abandoning and vacating an Electric Utility Easement (the "Easement'), granted by Denton County National Bank to the City of Denton, Texas, pursuant to that certain Easement dated April 22, 1976, and recorded in Volume 783, Page 343, Real Property Records, Denton County, Texas said Easement encumbering lands located in the Wm. Neil Survey, Abstract No. 970, Denton County, Texas and generally located at 325 West Hickory Street, and declaring an effective date. 3) Recommend approval of an ordinance abandoning and vacating a Temporary Drainage Easement (the "Easement'), granted by Allegiance Hillview, LP. to the City of Denton, Texas, pursuant to that certain Easement, dated August 20, 2007, and recorded as Instrument No. 2007 - 104852, Real Property Records, Denton County, Texas, said Easement encumbering lands located in the Buffalo Bayou, Brazos and Colorado Railroad Company Survey, Abstract No. 192, Denton County, Texas and generally located at the 2600 block of Scripture Street and declaring an effective date. 4) Recommend approval of an ordinance abandoning and vacating an Electric Utility Easement (the "Easement'), granted by Singing Oaks Apts. #1 to the City of Denton, Texas, pursuant to that certain easement, dated June 4, 1971, and recorded in Volume 624, Page 12, Real Properties Records, Denton County, Texas, said Easement encumbering lands located in the M. Yoachum Survey, Abstract No, 1442, Denton County, Texas, and generally located at 307 North Loop 288, and declaring an effective date. 5) Recommend approval of an ordinance abandoning and vacating a Sanitary Sewer Easement (the "Easement'), granted by Henry S. Miller Company, Trustee to the City of Denton, Texas, pursuant to that certain easement, dated December 18, 1973, and recorded in the Volume 695, Page 350, Real Property Records, Denton County, Texas, said Easement encumbering lands located in the Gideon Walker Survey, Abstract No. 1330 and the Moreau Forrest Survey, Abstract No. 417, Denton County, Texas and generally located at the 5600 block of East McKinney Street, and declaring an effective date. 6) Recommend approval of an ordinance abandoning and vacating (1) that certain Public Utility Easement, granted to the City of Denton, Texas by Rex C. Cauble, pursuant to that certain Easement dated December 5, 1972, and recorded in Volume 735, Page 515, Real Property Draft Minutes of the Public Utilities Board Meeting October 14, 2013 Page 5 of 11 1 Records, Denton County, Texas, insofar and only insofar as such easement covers and 2 encumbers .443 acre tract of land, as described on Exhibit "B ", attached to the ordinance and 3 made a part thereof (the "Exhibit B Abandonment Area "), and (2) that certain Public Utility 4 Easement, granted to the City of Denton, Texas by Rex C. Cauble, pursuant to that certain 5 easement, dated December 5, 1972, and recorded in Volume 735, Page 517, Real Property 6 Records, Denton County, Texas, insofar and only insofar as such easement covers and 7 encumbers 0.334 acre of land, as described in Exhibit "A ", attached to the ordinance and 8 made a part thereof (the "Exhibit A Abandonment Area ") (the easements described above are 9 collectively referred to herein as the "Easements) (the Exhibit A Abandonment Area and the 10 Exhibit B Abandonment Area are collectively referred to herein as the "Abandonment 11 Area "), said easements encumbering certain lands located in the A. White Survey, Abstract 12 No. 1406 and N. Wade Survey, Abstract No. 1407, Denton County, Texas, as more 13 particularly described in the Easements, and generally located approximately 1600' 14 northwest of the intersection of North Elm Street and Loop 288, and declaring an effective 15 date. 16 17 Board Member Russell had a general question about the easements. Russell has not 18 recalled seeing easements come in like this before. Are some of these about to be developed 19 or are these house cleaning issues. Paul Williamson stated these are just items that need to be 20 cleaned up. Staff is trying to catch up. Most are development related a couple is related to CIP 21 projects. There will be more like these in the coming months. Martin added most of these are 22 where new easements have been provided. 23 24 Motion was made by Board Member Russell to approve items 2 -6 with the second by 25 Board Member Gallivan. The vote was 7 -0 approved. 26 27 7) Consider recommending adoption of an Ordinance of the City of Denton, Texas authorizing 28 the expenditure of funds for payments by the City of Denton for electrical energy 29 transmission fees to Cross Texas Transmission (CTT), Electric Transmission Texas (ETT), 30 Lone Star Transmission (LST), Lower Colorado River Authority (LCRA), Sharyland 31 Utilities (SHRY), Texas Municipal Power Agency (TMPA), and Wind Energy Transmission 32 Texas (WETT) for providing energy transmission services to the City of Denton; and 33 providing an effective date (File 5388 -2013 CTT- $266,151.24 / ETT- $499,378.62 / LST- 34 $406,253.77 / LCRA- $1,268,545.00 / SHRY- $160,091.75 / TMPA- $87,324.53 / WETT- 35 $168,575.03 — Total Amount of $2,856,319.94). 36 37 Board Member Herring knows the $2.8 million is through ERGOT. We also get money 38 when substations are built because a fee is charged. Do we know the net effect, are we 39 paying more out than we are getting in. David Wilson, DME Business Manager, stated about 40 $3 million a year is coming in. 41 42 Gallivan asked where all these lines are. Williams answered that the majority of these were 43 approved by the Public Utility Commission for CRES projects from the West Texas to the load 44 centers. 45 46 There was some further discussion. Draft Minutes of the Public Utilities Board Meeting October 14, 2013 Page 6 of 11 2 Martin added that this was looked at and legislatively these payments are required. There is 3 really no option to not pay these. Just like others are required to pay their share of our lines we 4 are required to pay too. Some time ago the items that are legislatively or regulatory required that 5 we pay, they were taken off of the Public Utilities Board and City Council for approval since 6 there is no option. There has been talk to do the same with these payments but have not at this 7 point. 8 9 Motion was made by Board Member Cheek with the second by Board Member Robinson. 10 The vote was 7 -0 approved. 11 12 8) Consider recommending approval of Bid No. 5350 — Southwest Elevated Storage Tank 13 project to Landmark Strictures I, L.P. in an amount not to exceed $5,074,000. 14 15 Chair Smith asked about this item in general. Tim Fisher, Assistant Director of Water 16 Utilities, stated that this project has been in the CIP for a while. It was part of the original 17 negotiations with Robson on development of the southwest upper pressure plane. It is also in the 18 10 year impact fee CIP. The base bid is for a 2.5 million gallon tank and an alternate bid is for a 19 3 million gallon tank. This is very similar to the same tank that was built for Roselawn. There is 20 not a resident within one quarter of a mile and not a City of Denton resident within a mile and a 21 half of this location. Staff thought they would need a specific use permit but did not. There 22 were only three qualified bidders. One of the three did not bid mainly because of the time 23 constraints. There were then two bids. Fisher was within .02% in the constriction bid. Smith 24 asked if it would be about the same size and shape of the Roselawn Tank. Fisher agreed. 25 The geographic location is such that there isn't a better alternative available. Gallivan asked if 26 this tank will be big enough. Fisher answered that this is has large as an elevated storage tank 27 can be built. The likelihood of it being too small in five years is very remote. The tank site is 28 big enough to add an additional tank in the out years, possibly 15 years. Gallivan asked how 29 many acres it is. Fisher answered 3.6 acres. Martin added it is all the way to the north of 30 Robson Ranch. Fisher added that none of the roads to Robson will be used for constriction 31 purposes, FM 2449 and Lively Road will be used. 32 33 34 35 36 37 38 39 40 41 42 Motion was made by Board Member Gallivan with the second by Board Member Cheek. The vote was 7 -0 approved. ITEMS FOR INDIVIDUAL CONSIDERATION: 9) Consider recommending approval of the Public Utilities Board Meeting minutes of: September 23, 2013 Approved as circulated 43 10) Receive a report and hold a discussion regarding legislative enactments, or attempts to pass 44 legislation, in the 83rd Texas Legislative Session as it regards utility matters, including 45 electric, water, and wastewater or matters relating to solid waste. 46 Draft Minutes of the Public Utilities Board Meeting October 14, 2013 Page 7 of 11 1 Consultants Curt Seidlits and Snapper Carr were in attendance to make the presentation. 2 Seidlits stated he would give a report and would welcome questions and discussion. Seidlitis 3 stated they advocate for local control but can't always escape it and transmission is one issue 4 where they give the cost to everyone that participates in the system. 5 6 Seidlitis stated at the last legislative session there were a lot of new members that joined. The 7 turnover over the last couple of years has been about 50% in the house and 6 new senators which 8 is almost unheard of One of the main goals is to educate the new members on what the position 9 is from a municipally owned electric utility. They start with the mantra of local control. It is 10 very important to distinguish ourselves along with Texas Electric Coop from the investor owned 11 electric utility that are split up and in the competitive area. That is a challenge. 12 13 One of the issues that came up in the last session was `why do you make money and then give 14 the money to the city so the general fund transfer is a big issue. Why do some people have 15 governance at the City Council and others at Boards. The City of Austin and Austin Energy 16 issue, there was a big issue going into the session `why shouldn't you have a different 17 governance approach'. Those issues were looked at. They also looked at the issues of smart 18 meters from a local perspective. A big issue is the state should issue mandates for renewable. 19 Seidlitis position is to take care of that on a local basis with citizen input. 20 21 The consultant's goal is to work closely with the delegation. There is a good delegation in 22 Denton both in the house and senate. There is actually experience in the delegation. 23 24 Seidlitis talked about a couple of bills. The PUC had the sunset bill. The state agencies are 25 reviewed on a periodic basis, normally 10 -12 years. The sunset bill is a big bill because it opens 26 up to a lot of different types of bills that can be attached. The PUC passed this time without 27 much change. That is what the hopes were from the electric industry. The railroad commission 28 was also up for sunset but failed. 29 30 Carr was involved in the water legislation. This session the issue of water is a major budgetary 31 and policy topic for the legislature. The electric utility industry is also a part of that discussion. 32 There was a greater understanding amongst the members even the ones that are not on 33 committees that have oversight over the electric utility system. The nexus between water and 34 energy production in the state was talked about broadly from the oil and gas industry as well. 35 36 The legislature put on a proposed constitutional amendment that was passed that will be voted on 37 in November proposition 6 which would expend $2 billion from the `rainy day fund'. That 38 would be a revolving fund to help implement the state water plan. Gallivan stated it sounds 39 more like a loan than an investment. Carr stated it is a revolving loan program that can be 40 from 0% to some small financing amount. Typically to go to public sector entities (cities, 41 counties, river authorities and major water suppliers) to implement projects that are identified in 42 the state water plan those are adopted by each region. In the next session there will probably 43 some reforms to that process to make it less of a wish list and to put more priority behind those 44 projects. The legislation that passed that was apart from the constitutional amendment made 45 some significant reforms to the Texas Water Development Board. Smith asked how the loan 46 would be paid back. Carr answered by future revenues of the projects. Public private Draft Minutes of the Public Utilities Board Meeting October 14, 2013 Page 8 of 11 1 partnerships were also encouraged in some of these areas as well. Trying to advance some of the 2 identified reservoirs that have been in the planning stages for a long time was the direction the 3 policies were going. Seidlitis stated there was a renewed emphasis this time in the legislature on 4 infrastructure projects. The transportation amendment will be next year. The water generation 5 nexus have even had some power plants around the state that the water levels have dropped so 6 low that it endangers the actual operation of the power plant. One of the other issues is resource 7 adequacy, will there be enough power plants going forward to meet the growing demand. The 8 demand is leveling off it is still at a growth area that needs new generation and the current 9 market structure hasn't sent the right incentive to build new generation. 10 11 Carr stated that they have been waiting all through the course of the legislative session for the 12 governor to appoint a third commissioner we have been without one for some time. Late this 13 summer he appointed the Chief of Staff, Brandy Marty, to be the third commissioner. She 14 doesn't have a long history in utility issues; she is in the education stage in getting up to speed. 15 The biggest issue is the direction the commission will go with regards to resource adequacy. 16 17 Seidlitis stated Austin Energy and will be back because what they told the legislature about 18 governance didn't happen. One of the other issues is how do you do the rates for people that are 19 outside the city but are within the service territory. DME doesn't have that problem as much, 20 others do. 21 22 Carr stated one other item on the local government issues there seems to be more of a policy to 23 look at picking of service territory. The state has engaged in that practice with Austin Energy. 24 Some large business interest that advocate in Austin effectively have asked at times to look at the 25 system to where load over a certain amount might be about to opt out of a particular service 26 territory. That would be a dramatic change from the current system. 27 28 Smith asked what Carr meant by some of the governance changes with Austin Electric did 29 not take place so the governance issue will come back up. Seidlitis answered some 30 understood that the mayor actually initiated a plan that they thought was in agreement with 31 Senator Watson, their local Senator, on moving boards a more independent governing board and 32 the council has not done that. There is a feeling that there will be people come back and say an 33 independent board is needed that is apart from the City Council. That always has the possibility 34 of bleeding over to other municipals. Most of the bills that were talked about were bracketed 35 that would only apply to certain utilities. That issue is not resolved. The rate case was resolved 36 which moved it forward. Smith then asked if Seidlitis has a feel for the support of 37 independent boards for municipal utilities. Carr stated for the legislature fortunately the 38 supporters are such that they think the decision should be made locally. Seidlitis stated there is 39 good support for the local stand point but it is always a danger point. 40 41 Seidlitis stated there are some legislators that want to give discounts to universities and public 42 schools. There have been bills filed and will probably come back especially with the pressure on 43 public schools to make do with less money. 44 45 When the last legislative session started there were a lot of issues facing us. Starting the next 46 session it will be the same. Draft Minutes of the Public Utilities Board Meeting October 14, 2013 Page 9 of 11 1 Carr stated all of the public power advocates and some business interest that pay large utility 2 bills realize they need to engage on this issue and start showing the fallacy of a free discount. 3 The legislature moved in the direction that was wanted. 4 5 Seidlitis stated there is a natural inclination to help schools out. They made a good argument but 6 most know it has to be paid. Carr stated in the last session is when the schools were facing a 7 $5.5 billion in cuts. Some of the policies were intended to help soften some of those cuts. 8 Seidlitis stated they have to continue to strive to show that the shareholders and municipally 9 owned electric utilities are tax payers and sometimes they are not as sensitive to shareholders of 10 publicly traded or privately traded utility companies. When you show that the tax payers will 11 have to pay it makes a difference. 12 13 Herring asked what circumstances it would be helpful for a group from this Public Utilities 14 Board, City Council or Chamber of Commerce to go and lobby the legislative 15 representatives. Seidlitis used the example of the CHP plant, there were members out at the site 16 and talked to people. The best is to handle this locally by asking members to participate in 17 projects. When something is going on make sure people know of those new projects occurring. 18 The last thing members want is to hear that from irate citizens and not being informed ahead of 19 time. Going to Austin when there are bills that are affected by certain entities is important. Be 20 coordinated and give the same message. 21 22 Carr stated that in 2014 when the interim committees are looking at the topics and have a chance 23 to interact and get the issues before them locally has a much better affect on them. Carr and 24 Seidlitis work to set DME apart and hopefully engage the members and bring them to the 25 projects. One example; the members toured the wind farm. 26 27 Williams added that he was able to speak at a lunch to the staff members of several of the offices 28 to differentiate them from Austin Energy. 29 30 Smith asked for elaboration on the general fund transfers. Each year at budget time that is 31 a discussion this board has. Carr stated that there was discussion on the Austin situation and 32 Carr served on the Austin Public Utility Board at one time. Part of it is getting a hold of the 33 numbers and transparency behind those numbers. Some of the opponents to Austin Energy 34 generated a discussion and some begin calling it a hidden tax. TPPA and others explained how it 35 worked. There has been a look at the size, the transparency of it and how it ties back to 36 governance. Making sure the health of the utility is taken into account. 37 38 Seidlitis added that it isn't just Austin Energy it goes to all. A lot of people have a hard time 39 saying `that is a public entity or public utility for the citizens so why should 9 -14% be transferred 40 back to the city. Smith agreed that is a good question. Seidlitis just like a lot of people want 41 to get returns on investments and yields, much the same on a local basis. Carr stated there was 42 recognition in the oversight committees that the tax payers of a MOU take on a risk and for that 43 risk there should be something in return. Carr believes this will be talked about again. 44 Russell stated that Denton County has a day in Austin it is general to the County but when 45 you have several hundred people representing it makes a difference. 46 Draft Minutes of the Public Utilities Board Meeting October 14, 2013 Page 10 of 11 1 Herring stated that he believes from what he has heard today that the legislative activity 2 will continue in that there are no urgent crises in the upcoming that will effect DME. 3 Seidlitis stated that is a good risk analysis. 4 5 Carr added that the biggest course over the interim before next session will be discussions at the 6 PUC and ERCOT with regards to the direction that the overall electric market takes to address 7 resource adequacy issues. 8 9 Russell asked about the smart meter bill that didn't pass but one of the candidates running 10 for office made smart meters an issue. They believe the information that is gathered will be 11 used in a negative manner against the consumer. Russell asked if there was something 12 missing that makes it not a good thing. Seidlitis has been involved with smart meters for many 13 years and there are certain people that you will never convince. He wished the term smart meter 14 had never been used, just maybe new reliable meter. He has not found any problems with the 15 meter. 16 17 Carr added there was a big push this time around and it got out of the senate committee it didn't 18 come very close to actually becoming law. 19 20 Williams asked the consultants to talk about the turnover and the positions coming up. Carr 21 stated that this is the first time there has been a full slate of candidates running for every 22 statewide office in over a decade in Texas. The Lt. Governor is running as the only incumbent 23 that is returning he has many challenging him. There is a high profile governor race now with 24 Attorney General Abbott and Senator Wendy Davis running. The action primarily with 25 exception to the governor's race will be in the primaries. For this election cycle the attorney 26 general race has several people running. The comptroller is a crowded one as well. The 27 governor's race and the statewide race will change direction with Gov. Perry serving the longest 28 by far in State history and his role as governor. All of the state agencies have a very strong 29 connection to Gov. Perry's office. That connection will remain for many years. The direction of 30 where we go on some of the major policy issues will definitely be directed by the outcome of 31 those elections. The turnover that we have seen the last two election cycles has been dramatic. 32 There will be four to six new senators out of 31. Over half of the state legislature is in their first 33 or second term and there have already been 13 to announce retirement or they are seeking 34 different offices. The two chief budget writers on the senate and house sides have both 35 announced their retirements. There will be more information when the primary elections are 36 over. 37 38 Seidlitis stated that we will see state government moving more conservative until the 39 redistricting is complete. 40 41 Carr stated that one thing they are watching to see if it holds up after the primaries is the last 42 legislative cycle is a three party group of collations which is something that is different than what 43 has been seen over the last decade. Carr added that the legislative make up is currently about 44 one third democrats, one third traditional mainstream republicans and the last one third would be 45 tea - party /libertarian affiliation. There have been some odd parings and was issue to issue as to 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Draft Minutes of the Public Utilities Board Meeting October 14, 2013 Page 11 of 11 what would happen. If the numbers remain the same it will continue for a couple more legislative sessions. Herring asked how many municipal electric systems they work for. Carr answered DME, Garland, CPS Energy, TMPA and Brownsville Public Utility. Carr works for the Texas Coalition Cities for Utility Issues as well. 11) ACM Update. a. Neighborhood Meeting Notice 12) Discussion of the Matrix representing items for discussion for future Public Utilities Board meetings. No Changes 13) Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the Public Utilities Board 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 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. Herring update wholesale power Adjournment 10:26 a.m.