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April 15, 2014 Agenda
AGENDA CITY OF DENTON CITY COUNCIL April 15, 2014 After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, April 15, 2014 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 April 15, 2014. 3. Receive a report, hold a discussion, and give staff direction on the design process for the proposed convention center and hotel. 4. Receive a funding recommendation report from the Community Development Advisory Committee (CDAC) and the Human Services Advisory Committee (HSAC). Hold a discussion and give staff direction regarding the proposed 2014 Action Plan for Housing and Community Development. 5. Receive a report, hold a discussion and give staff direction on the creation of a City Council Committee to explore policies and vision for historic preservation, and possible revisions to the Denton Development Code and the Denton Code of Ordinances. 6. Receive a report, hold a discussion and provide direction regarding a ban on wireless communication use while operating a motor vehicle in the City of Denton. Following the completion of the Work Session, the City Council will convene in a Closed Meeting to consider specific items when these items are listed below under the Closed Meeting section of this agenda. The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Government Code, as amended, or as otherwise allowed by law. CLOSED MEETING 1. Closed Meeting: A. Deliberations regarding Real Property — Under Texas Government Code Section 551.072; Consultation with Attorneys — Under Texas Government Code Section 551.071. 1. Discuss, deliberate, and receive information from staff and provide staff with direction pertaining to the potential purchase of certain real property interests located in the D. Culp Survey, Abstract No. 287, and the J. City of Denton City Council Agenda April 15, 2014 Page 2 Coltart Survey, Abstract No. 288, City of Denton, Denton County, Texas, and generally located at the intersection of Loop 288 and Kings Row. 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. (69kV Transmission Line Project Parcel C1 & C2) 2. Discuss, deliberate, and receive information from staff and provide staff with direction pertaining to the acquisition of real property interests located in David Hough Survey, Abstract Number 646, located generally in the 1900 block of South Mayhill Road, in the City of Denton, Denton County, Texas. Consultation with the City's attorneys regarding legal issues associated with the acquisition or condemnation of the real property interests referenced above where a public discussion of these legal matters would conflict with the duty of the City's attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas, or would jeopardize the City's legal position in any administrative proceeding or potential litigation. (Mayhill Road Widening and Improvements project - Parcel M136 Haggard) B. Certain Public Power Utilities: Competitive Matters — Under Texas Government Code Section 551.086; and Consultation with Attorneys — Under Texas Government Code Section 551.071. 1. Receive a briefing and presentation from Denton Municipal Electric ( "DME ") staff regarding certain public power competitive, financial and commercial information relating to issues regarding the implementation of the "Denton Municipal Electric — Energy Risk Management Policy" that deals with bidding and pricing information as well as contracting information, for purchased power, generation and fuel; and Electric Reliability Council of Texas (ERCOT) bids, prices, offers and related services and strategies, and the terms and authorizations related thereto, as well as other and further public power information. Consultation with the City's attorneys regarding legal issues associated with the implementation of the "Denton Municipal Electric - Energy Risk Management Policy" 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. Discuss, deliberate and provide staff with direction. C. Deliberations regarding Personnel Matters — Under Texas Government Code Section 551.074. City of Denton City Council Agenda April 15, 2014 Page 3 1. Deliberate and discuss the appointment and duties of public officers to boards or commissions exercising discretionary or rule making power as opposed to purely advisory powers for the Zoning Board of Adjustment. D. Consultation with Attorneys — Under Texas Government Code Section 551.071. 1. Consult with the City's attorneys regarding the status and possible resolution of litigation styled In re: TransData, Inc. Smart Meters Patent Litigation, Cause No. 5:12 -m1- 02309 -C, currently pending in the United States District Court for the Western District of Oklahoma, and provide informal direction as appropriate. 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 No. 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 regulation of 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 of the ordinance. ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING WILL ONLY BE TAKEN IN AN OPEN MEETING THAT IS HELD IN COMPLIANCE WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH FINAL ACTION, DECISION, OR VOTE IS TAKEN IN THE CLOSED MEETING IN ACCORDANCE WITH THE PROVISIONS OF §551.086 OF THE TEXAS GOVERNMENT CODE (THE `PUBLIC POWER EXCEPTION'). THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A CLOSED MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOV'T. CODE, §551.001, ET SE Q. (THE TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA OR TO RECONVENE IN A CONTINUATION OF THE CLOSED MEETING ON THE CLOSED MEETING ITEMS NOTED ABOVE, IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS ACT, INCLUDING, WITHOUT LIMITATION §551.071 - 551.086 OF THE TEXAS OPEN MEETINGS ACT. Regular Meeting of the City of Denton City Council at 6:30 p.m. in the Council Chambers at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: REGULAR MEETING 1. PLEDGE OF ALLEGIANCE A. U.S. Flag B. Texas Flag City of Denton City Council Agenda April 15, 2014 Page 4 "Honor the Texas Flag — I pledge allegiance to thee, Texas, one state under God, one and indivisible." 2. PROCLAMATIONS /PRESENTATIONS A. Proclamations /Awards 1. Mayor's Day of Concern for the Hungry 2. National Day of Prayer 3. Olympian Jordan Malone Day in Denton 4. Jazz Appreciation Month 5. Meritorious Service Award to Parks Department from the Texas Council on Family Relations 3. CITIZEN REPORTS A. Review of procedures for addressing the City Council. B. Receive citizen reports from the following: 1. Russell Linton regarding Red Light Traffic Cameras. 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 — L). 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 — L 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 accepting competitive bids and awarding a public works contract for the Wastewater Collection System Improvements around Eagle Drive and Congress Street Project for the City of Denton Engineering Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 5472— awarded to Dickerson Construction Company, Inc. in the not -to- exceed amount of $2,070,842). The Public Utilities Board recommends approval (5 -0). B. Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the purchase of Temporary Mobile Compressed Natural Gas (CNG) Fueling Services for the Solid Waste and Recycling Departments, which are available from only one source and in accordance with Chapter 252.022 of the Texas Local Government Code such purchases are exempt from the requirements of competitive bidding; and providing an effective date (File 5464— awarded to Ultimate CNG, LLC in the three (3) year not -to- exceed amount of $120,000). The Public Utilities Board recommends approval (6 -0). City of Denton City Council Agenda April 15, 2014 Page 5 C. Consider adoption of an ordinance accepting competitive proposals and awarding a contract for the purchase of three (3) mid -mount mowers and two (2) wide area mowers for the City of Denton Parks Department ; providing for the expenditure of funds therefore; and providing an effective date (RFP 5483— awarded to Ag- Power Inc. in the amount of $131,070.50). D. Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and Denton Parks Foundation; authorizing the expenditure of funds; and providing for an effective date. ($1,350) (Splash Park) E. Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager to make an application with the Texas Auto Burglary and Theft Prevention Authority for a grant to form a task force to focus on auto theft and auto burglary and take all other actions necessary to obtain and implement the program; and providing for an effective date. F. Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager to make an application with the Texas Auto Burglary and Theft Prevention Authority for a grant to continue implementation of the Reduce Auto Theft Texas Program and take all other actions necessary to obtain and implement the program; and providing for an effective date. G. Consider adoption of an ordinance approving a City sponsorship in an amount not to exceed $9,500 of in -kind services and resources for the Cinco de Mayo Celebration to be held in Quakertown Park on May 3, 2014; and providing an effective date. H. Consider adoption of an ordinance finding that a public use and necessity exists to acquire (I) fee simple title to a 10.45 acre tract; (11) an electric utility easement encumbering a 0.802 acre tract, and (III) a temporary construction easement encumbering a 0.521 acre tract; all said lands located in the D. Culp Survey, Abstract No. 287 and the J. Coltart Survey, Abstract No. 288, City of Denton, Denton County Texas, as more particularly described on Exhibits "A ", "B ", and "C ", as attached to the Ordinance and made a part thereof, located generally at the intersection of Loop 288 and Kings Row (the "Property Interests "), for the public use of expansion, construction, maintenance, operation, and improvement of electric transmission and distribution lines, facilities, and structures, as well as sub - stations, (the "Project "); authorizing the City Manager or his designee to make an offer to (1) Brown Development I, Ltd., a Texas Limited Partnership; Julie Luelle Brown, Successor Independent Executor of the Estate of Gerald W. Brown, deceased; Julie Luelle Brown, Trustee of the Julie Luelle Brown Nonexempt Lifetime Trust under the Will of Gerald W. Brown; Julie Luelle Brown, Trustee of the Julie Luelle Brown Exempt Lifetime Trust under the Will of Gerald W. Brown; Gerald W. Brown, II, Trustee of the Gerald W. Brown, II Nonexempt Lifetime Trust under the Will of Gerald W. Brown; Gerald W. Brown, II, Trustee of the Gerald W. Brown, II, Exempt Lifetime Trust under the Will of Gerald W. Brown; Jason Edwin Brown, Trustee of the Jason Edwin Brown Nonexempt Lifetime Trust under the Will of Gerald W. Brown; Jason City of Denton City Council Agenda April 15, 2014 Page 6 Edwin Brown, Trustee of the Jason Edwin Brown Exempt Lifetime Trust under the Will of Gerald W. Brown; Jinger Jeannine Brown, Trustee of the Jinger Jeannine Brown Nonexempt Lifetime Trust under the Will of Gerald W. Brown; Jinger Jeannine Brown, Trustee of the Jinger Jeannine Brown Exempt Lifetime Trust under the Will of Gerald W. Brown; Alicia Margaret Noel Brown, Trustee of the Alicia Margaret Noel Brown Nonexempt Lifetime Trust; Alicia Margaret Noel Brown, Trustee of the Alicia Margaret Noel Brown Exempt Lifetime Trust; Connie L. Brown, Independent Executor of the Estate of Robert M. Brown, deceased; Connie L. Brown, Trustee of the Robert M. Brown Exempt Family Trust; Connie L. Brown, Trustee of the Robert M. Brown Nonexempt Family Trust (collectively, the "Owner "); (2) successors in interest to the Owner of the Property Interests; or (3) any other owners of the Property Interests, as may be applicable, to purchase the Property Interests for the purchase price of Three Hundred Ninety Two Thousand, Nine Hundred Forty Five Dollars and 00 /100 ($392,945.00), and other consideration, as prescribed in the Contract of Sale (herein so called), as attached to the Ordinance and made a part thereof as Exhibit "D ", authorizing the expenditure of funds therefore; and providing an effective date. (69kV Transmission Line Project Parcel C1 & C2) L Consider approval of the minutes of: March 3, 2014 March 4, 2014 March 18, 2014 J. Consider adoption of an ordinance of the City of Denton, Texas, authorizing the City Manager to execute a contract with the Denton Independent School District for the 2014 Summer Food Service Program; authorizing the expenditure of funds to administer the program; and providing an effective date. K. Consider approval of a resolution approving the 2013 Tax Increment Reinvestment Zone Number Two (Westpark TIRZ) Annual Report; and declaring an effective date. L. Consider adoption of an ordinance of the City of Denton, Texas, establishing a new Schedule of Permit Fees for permits issued by the Building Inspector, including, but not limited to, building permit fees, consumer health permit fees, fence and retaining wall permit fees, mobile home moving fees, temporary permit fees, and investigation and administrative fees, superseding prior fee schedules to the extent of conflict, and providing for an effective date. 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. Consider adoption of an ordinance considering all matters incident and related to the issuance, sale and delivery of up to $94,500,000 in principal amount of "City of Denton Certificates of Obligation, Series 2014" (including up to $9,276,000 for General Government activities, up to $8,440,000 for Solid Waste Fund activities, up to $1,784,000 for Airport Fund activities, and up to $75,000,000 for Electric, Water and Wastewater Fund activities); authorizing the issuance of the Certificates; delegating the authority to certain City officials to execute certain City of Denton City Council Agenda April 15, 2014 Page 7 documents relating to the sale of the Certificates; approving and authorizing instruments and procedures relating to said Certificates; and enacting other provisions relating to the subject. B. Consider adoption of an ordinance considering all matters incident and related to the issuance, sale and delivery of up to $7,600,000 in principal amount of "City of Denton General Obligation Refunding and Improvement Bonds, Series 2014 "; authorizing the issuance of the Bonds; delegating the authority to certain city officials to execute certain documents relating to the sale of the Bonds; approving and authorizing instruments and procedures relating to said Bonds; and enacting other provisions relating to the subject. C. Consider nominations /appointments to the City's Boards and Commissions: 1. Public Art Committee 2. Zoning Board of Adjustment D. Consider adoption of an ordinance of the City of Denton, Texas to implement and enforce the Texas State Rule on locally enforced motor vehicle idling limitations and to approve entering into a memorandum of agreement with the Texas Commission on Environmental Quality to enforce this rule locally; providing an effective date. 6. PUBLIC HEARINGS A. Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, adopting Standards of Care for Youth /Teen Programs administered by Denton's Parks and Recreation Department pursuant to Texas Human Resources Code Section 42.041 (b)(14); and providing an effective date. The Parks, Recreation and Beautification Board recommends approval (6 -0). B. Hold a public hearing inviting citizens to comment on the City of Denton's 2014 Action Plan for Housing and Community Development. C. Hold a public hearing and consider adoption of an ordinance amending the Water Conservation Plan and the Drought Contingency Plan of the City of Denton, Texas previously adopted by the City Council in ordinance No. 2009 -134 enacted on the 2nd day of June, 2009 regarding only Sections 6.6 and 6.7 thereof, and as previously adopted by the Council in ordinance No. 2012 -064 enacted on the 6th day of March, 2012; amending the drought and emergency response stages of the Water Conservation Plan and the Drought Contingency Plan; amending the enforcement provisions of mandatory restrictions of the Water Conservation Plan and the Drought Contingency Plan; providing for the stages of enforcement for violators of the Water Conservation Plan and the Drought Contingency Plan; providing for rates to be charged for water usage in the water conservation plan and the drought contingency plan in the event of high usage; providing for administrative fees to be charged to violators for certain violations of the drought contingency plan; providing a criminal penalty not to exceed $2,000 per violation of the drought contingency plan; providing a civil penalty not to exceed $1,000 per day per violation of the drought contingency plan; providing civil legal remedies for the City of Denton, Texas; providing a savings clause; providing a severability clause; and providing an effective date. City of Denton City Council Agenda April 15, 2014 Page 8 D. Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, regarding a Specific Use Permit to allow a multifamily housing development on approximately 4.13 acres of land, generally located on the west side of East Sherman Drive, west of the intersection of East Sherman Drive and Linwood Drive. The subject property is located within a Neighborhood Residential Mixed Use (NRMU) zoning district and land use designation. The Planning and Zoning Commission recommends denial (6 -0). (S13 -0011, University North) A SUPERMAJORITY VOTE BY COUNCIL IS REQUIRED FOR APPROVAL. 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 2014 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. Work Session 3 AGENDA INFORMATION SHEET DATE: April 15, 2014 DEPARTMENT: City Manager's Office ACM: Jon Fortune SUBJECT Receive a report, hold a discussion, and give staff direction on the design process for the proposed convention center and hotel. BACKGROUND On December 10, 2013, the City Council approved the Master Development Agreement (MDA) between the City, the University of North Texas (UNT), O'Reilly Hospitality Management, and O'Reilly Hotel Partners Denton (OHPD) to construct a convention center and convention center hotel. The Master Development Agreement provides the details for the funding and development of the project. The City will fund and own the convention center which is estimated to cost $25 million. The size of the convention center is an approximate 100,000 sq /ft facility and includes an approximate 30,000 sq /ft ballroom. It will be designed to handle very large events and be able to accommodate approximately 2,000 for banquet style seating. It is important to note that the City would be funding the convention center only and not the hotel. The hotel is planned to be an Embassy Suites of approximately 318 rooms, but at a minimum will have 275 rooms (nine stories tall) and includes a restaurant. Both would be funded by OHPD and represent an approximate $60 million investment. The City will sub -lease the convention center to OHPD which would be operated and managed by OHM (same operator as the hotel). To coordinate the design and construction of the hotel and convention center as one project, the development agreements also include the hiring of OHM as the City's design professional and construction manager agent. While the contractor for the construction will be selected by the City once design development drawings become available, this process will allow a more seamless and efficient design and construction process. Staff is happy to report that the design process continues. On April 1, Steve Minton, Chief Architect for OHM be in town to provide the City Council another update on the design process, the conceptual elements of the convention center, and be available to respond to questions. PRIOR ACTION/REVIEW (Council, Boards, Commissions) September 2011 — Received proposal from O'Reilly Hospitality Management (OHM) January 2012 — City, OHM and UNT reach non - binding agreement on guiding principles to negotiate a development agreement (the Memorandum of Preliminary Agreement.) Agenda Information Sheet April 15, 2014 Page 2 March 2012 — City and OHM meet with local hotel operators at the Quarterly Convention and Visitor Bureau Hospitality Meeting to present the proposed project. May 2012 — City Council Work Session to receive overview of proposed project and meet with the prospective developer, Tim O'Reilly. December 2012 — City and OHM present proposed project to the DISD Trustees during a Trustee Meeting. March 2013 — City Council Work Session discussion and update on proposed project. September 2013 — City Council Work Session discussion and update on proposed project. October 2013 - City Council Work Session discussion and update on proposed project. November 19, 2013 — City Council Work Session discussion and review of development agreements. December 2, 2013 — Presentation of proposed project to joint City Council and DISD Board Trustees meeting. December 3, 2013 — Presentation of proposed project to Economic Development Partnership Board. December 3, 2013 — City Council Work Session discussion and review of development agreements. December 10, 2013 — The City Council approved the Master Development Agreement and related development and professional service documents. February 18, 2014 — Update on the process to design the convention center. FISCAL INFORMATION The proposed Hotel and Restaurant are estimated to cost $60 Million and will be funded and owned by OHPD. The Convention Center, which will be owned by the City, is estimated to cost $25 Million and will be funded through the issuance of Certificates of Obligation Bonds. Project related revenue (Hotel Occupancy Taxes, TIRZ revenue and sales taxes) plus rent payments by OHPD will be dedicated to meet the required annual debt obligations to fund the Convention Center. Respectfully submitted: 1)dn Jon Fortune Assistant City Manager Work Session 4 AGENDA INFORMATION SHEET AGENDA DATE: April 15, 2014 DEPARTMENT: Planning and Development ACM: John Cabrales, Jr. r SUBJECT Receive a funding recommendation report from the Community Development Advisory Committee (CDAC) and the Human Services Advisory Committee (HSAC). Hold a discussion and give staff direction regarding the proposed 2014 Action Plan for Housing and Community Development. BACKGROUND On an annual basis, the City of Denton prepares an Action Plan for Housing and Community Development (Action Plan) for submission to the U. S. Department of Housing and Urban Development (HUD). The Action Plan serves as the City's application for Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) programs. Four years ago, using a process with input from citizens and local non - profit organizations, staff developed Denton's 2010 2014 Consolidated Plan for Housing and Community Development. The Consolidated Plan is a five -year strategy detailing proposed housing, social services and public works projects benefiting low and moderate - income households and neighborhoods. Annual action plans are developed based on the strategies outlined in the Consolidated Plan. The 2014 Action Plan for Housing and Community Development represents the fourth year in the City's five -year strategy. Public hearings and meetings with neighborhood groups requesting citizen input regarding the use of CDBG and HOME funds were held in December 2013. Spanish translation was available at both public hearings. Public hearing outreach included the following: 1. Newsletter and flyers sent out to a Community Development mailing list which includes service organizations, churches, City departments, and individual households; 2. Emails to neighborhood association representatives asking that they forward public hearing information to their members; 3. Emails to local social service agencies and members of the Denton County Homeless Coalition; 4. Posted on the City's website; 5. Newspaper advertisements. Agenda Information Sheet April 15, 2014 Page 2 of 3 Application availability was advertised from November through December. Staff held application workshops in December and January. The CDAC and HSAC reviewed applications and held funding hearings in February and March. Each committee developed a set of funding recommendations to present to the City Council. Staff has developed the 2014 Action Plan for Housing and Community Development based on these recommendations. Administration activities are also included. Please refer to the minutes of the CDAC and HSAC meetings (Exhibit 3) for additional information. OPTIONS • Direct staff to go forward with the 2014 Action Plan as presented, including the proposed CDAC and HSAC recommendations. • Provide input regarding funding priorities and request that CDAC, HSAC or both committees review and possibly revise recommendations. • Direct staff to make specific revisions to the 2014 Action Plan. ESTIMATED SCHEDULE OF PROJECT Public comment period Public Hearing CDAC and HSAC presentation to City Council Action Plan approval Submission of Action Plan to HUD HUD release of funds and program initiation April 7 through May 6, 2014 April 15, 2014 April 15, 2014 May 13, 2014 June 15, 2014 August 1, 2014 PRIOR ACTION /REVIEW (Councils, Boards, Commissions) The CDAC reviewed requests for housing, non - profit facility and infrastructure improvements. CDAC recommended $977,203 in CDBG and, HOME funding be allocated to various projects and programs. The HSAC reviewed requests for social services program funding. HSAC developed recommendations for use of both CDBG funds and City general fund dollars. Though the list of general fund recommendations is included in the Action Plan, the approval of the Plan does not include approval of those recommendations. General fund recommendations will be considered during the normal budgeting cycle. HSAC recommended awards of $127,319 in CDBG funding to various social service programs. Agenda Information Sheet April 15, 2014 Page 3 of 3 FISCAL INFORMATION All projects and programs approved under the 2014 Action Plan are funded through CDBG, HOME and program income from the use of these funds. No general fund dollars are included in the proposed Action Plan activities. General funds are budgeted for a portion of the program administration costs. F UIRITC 1. CDAC Funding Recommendations Chart 2. HSAC Funding Recommendation Chart 3. Minutes of the CDAC and HSAC meetings Respectfully submitted: � Y f Brian Lockley Director of Planning & Development Prepared by: Barbara Ross Community Development Administrator Exhibit 1 March 26, 2014 COMMUNITY DEVELOPMENT ADVISORY COMMITTEE FUNDING RECOMMENDATIONS FOR CDBG AND HOME FUNDS 2014/15 PROGRAM YEAR 2014/15 APPLICATIONS 2014 -15 FUNDING REQUEST RECOMMENDATIONS UN- FUNDED BALANCE CDBG FUNDS HOME FUNDS TOTAL FUNDS 1 Denton Affordable Housing Corp - AHOP $100,000 $0 $100,000 $100,000 $0 2 Denton City County Day School Improvements $137,000 $102,767 $0 $102,767 $34,233 3 Fred Moore Day Nursery School Improvements $282,756 $40,000 $0 $40,000 $242,756 4 Home Improvement Program* $618,497 $171,230 $292,486 $463,716 $154,781 5 Mack Park Playground Replacement $115,000 $115,000 $0 $115,000 $0 6 Minor Repair Program $90,720 $90,720 $0 $90,720 $0 7 Serve Denton Facility Improvements $140,596 $65,000 $0 $65,000 $75,596 TOTAL FUNDING RECOMMENDED $1,484,569 $584,717 $392,486 $977,203 $507,366 TOTAL FUNDING AVAILABLE 01�11 NO $584,717 $392,486 $977,203 oz?MOC-3 UNPROGRAMMED FUNDS $0 $0 $0 Shaded requests are HOME eligible activities Exhibit 2 2014 -15 Human Services Advisory Committee Recommendations for Funding Not Funded in previous years FUND 2014 -15 FINAL by SOURCE ORGANIZATION 2009 -10 Award 2010 -11 Award 2011 -12 Award 2012 -13 Award 2013 -14 Award Request Recommendation General Fund CDBG 1 Camp Summit 4,000 2,944 2,000 2,000 2,000 20,000 0 $261,662 $248,562 2 Court Appointed Special Advocates (CASA) 10,000 11,000 9,500 10,000 15,000 20,000 12,000 12,000 3 City of Denton - Parks and Recreation 6,000 14,025 12,000 15,000 20,000 47,125 25,000 25,000 4 Communities in Schools 5,000 5,000 7,000 8,000 10,000 20,000 11,000 11,000 5 Denton Christian Preschool 22,000 22,056 22,056 22,500 25,000 28,000 26,000 26,000 6 Denton City County Day School 26,000 26,222 26,550 31,520 32,000 40,000 34,000 34,000 7 Denton Community Health Clinic 7,500 30,000 10,000 10,000 8 Denton County Friends of the Family 24,000 26,111 24,940 25,000 25,000 30,000 25,000 25,000 9 Denton County MHMR Center 40,040 9,000 9,000 10 Fairoaks 0 0 8,402 0 11 Family Health Care, Inc. 20,035 21,787 19,000 19,000 17,000 19,000 18,000 18,000 12 Fred Moore Nursery School, Inc. 23,720 23,556 23,556 35,000 40,000 60,000 45,000 45,000 13 Giving Hope - HMIS 20,400 18,000 18,000 18,000 18,000 18,000 18,000 18,000 14 Giving Hope - Transitional Housing 18,000 21,889 20,930 24,000 25,500 28,200 25,500 25,500 15 Health Services of North Texas 12,000 22,394 21,900 26,519 27,000 60,000 29,000 29,000 16 Interfaith 10,000 3,800 3,800 17 PediPlace 0 4,480 2,500 10,000 0 18 Retired Senior Volunteer Program 7,530 7,900 7,900 10,000 10,500 11,000 11,000 11,000 19 Salvation Army of Denton 20,000 20,000 20,000 20,000 20,000 :20:Special Programs for Aging Needs 17,500 22,167 21,000 21,000 20,000 25,000 20,019 5,700 14,319 Total 251,185 261,662 248,472 297,119 317,000 544,767 342,319 215,000 127,319 Not Funded in previous years FUND 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15* General Fund $119,796 $115,345 $119,837 $170,000 $189,881 $215,000 C.D.B.G. $131,389 $146,317 $128,725 $127,119 $127,119 $127,319 Total $251,185 $261,662 $248,562 $297,119 $317,000 $342,319 v: 03/25/14 Revised Estimate 2011 -12 $112,797 $128,725 $241,522 EXHIBIT 3 Community Development Advisory Committee Minutes and Human Services Advisory Committee Minutes Community Development Advisory Committee December 5, 2013 Final Minutes Members Present: Gerard Hudspeth, Valda Morgan, Jodi Vicars - Nance, Scott Rozell, John Siegmund, Amy Simon, Larry Varnes and Ira Weinstein Staff Present: Barbara Ross Barbara Ross, CD Administrator called the meeting to order. The Community Development Advisory Committee (CDAC) members introduced themselves. Ms. Ross gave a brief report on the status of projects and programs that have been funded in previous grant years. She noted that both the Crescent Street Sidewalk and Fred Moore Day Nursery expansion projects should both begin construction within the next few weeks. Fairoaks's installation of an updated fire sprinkler system was in progress. She also noted that there is currently a significant amount of funding available for the Home Improvement, Homebuyer Assistance and Minor Repair programs. However, the 2014 -15 program year won't begin until August 2nd and most of the available housing programs funding will be expended or committed to projects by then. Scott Rozell nominated Larry Varnes as CDAC Chair. Ira Weinstein seconded the nomination. Mr. Varnes was elected as Chair by a unanimous vote. Mr. Varnes opened the nominations for Vice Chair. Gerard Hudspeth nominated Scott Rozell as Vice Chair. John Siegmund seconded the motion. Chairman Varnes called for a vote for Mr. Rozell as Vice Chair. Mr. Rozell was unanimously elected CDAC Vice Chair. Members discussed the application and reviewing process. Chairman Varnes noted that the applications have been very similar for the last two years. He noted that it was open for revisions. Mr. Siegmund commented that he felt the application was lengthy and some items could be taken out. Ms. Ross reviewed the application introduction and instructions. Mr. Varnes stated that he had no problem with the timeline as stated but asked if all the information was necessary. Ms. Ross stated that some of the information is used by staff to determine if the project or program would be eligible for CDBG or HOME funding. She noted the service area, the national objective that the project would meet, etc. assisted in that evaluation. Mr. Hudspeth suggested including a question regarding how the organization found out about the funding and if there is any relationship between the organization and members of the CDAC. Mr. Varnes suggested that the term "pertinent relationship" should be used when asking that question. Ms. Ross asked if it should include any relationship with CDAC and City Council. Ms. Ross reminded members that if they are on the board of an organization that is requesting funds, they cannot participate in the discussion or vote regarding that organization's request. Members continue to discuss how to state a question regarding a potential relationship with a CDAC member. Members discussed the possible new question regarding how the applicant organization found out about the process. Mr. Hudspeth stated he was interested in knowing how organizations find out about the City's funding. He mentioned the organization that requested funds in order to be able to include this information on the application for funding they submitted to the State. Members agreed that these groups wouldn't be excluded from applying but, that the CDAC would be aware of the reason for the submission. Mr. Rozell suggested that it could be included in the section that asks for a list of sources for additional funding. Mr. Varnes stated that maybe it needs to be a more explicit explanation of where they plan to obtain additional funding. Ms. Ross read through the current "Budget" question regarding other sources of funding. Mr. Varnes stated that "including State and local monies" should be added. Mr. Siegmund asked what problems the request mentioned by Mr. Hudspeth had actually caused the committee. Mr. Hudspeth said it didn't cause a problem. Mr. Varnes added that it was a priority issue. Mr. Varnes asked about the personnel budget information and whether the committee needed the information on every employee. Mr. Siegmund stated that he felt the salaries of the senior, high level, people were important but possibly not all employees. Ms. Ross reminded members that the organizations are giving the salary "range" for their employees, not their current salary amounts. Mr. Weinstein pointed out that last year it appeared one staff member was receiving quite a substantial salary amount. Members agreed to leave the request for that information in the application. Mr. Varnes asked the members if they had any additional application revisions. No additional revisions were discussed. Ms. Ross reminded members that citizen comments would be taken and passed along to the CDAC and City Council until the Action Plan, including the proposed projects and programs, is approved. Mr. Varnes reminded member of the upcoming public hearing on December 12t ". Ms. Ross indicated that there were approximately ten residents at the meeting that was held Monday night at the Denia Recreation Center. This meeting was held immediately after the Denia neighborhood meeting. She noted that staff was not able to "piggy back" on the SouthEast Denton Neighborhood Association (SEDNA) meeting. Members discussed whether it was beneficial to have committee members attend the public hearings. Ms. Ross said she thought it was helpful but, not required. Members discussed future meeting dates and times. Mr. Varnes suggested that the committee have a brief meeting to review the applications and set up the meetings based on the number and type of applicants. It was agreed that the CDAC would meet on Thursday, February 6t" to review applications and then determine their future meeting dates. Ms. Ross commented that the five -year Consolidated Plan for Housing & Community Development is on the City's website. She added that she will send the link to the members so that they could review the document prior to developing their funding recommendations. Mr. Varnes asked how soon the City would receive notification of their funding amounts. Ms. Ross explained that Congress may go forward with a "continuing resolution" which would probably provide approximately the same amount of funding as in 2013 -14. However, at this time, no grant allocation amounts have been determined. Mr. Rozell asked about application workshops. Ms. Ross indicated that staff will have two workshops in early January. She asked the members if the training could be mandatory except for those that attended last year. CDAC members agreed that this was appropriate. The meeting was adjourned. Community Development Advisory Committee February 12, 2014 Final Minutes Members Present: Mary Beth Cottingham, Gerard Hudspeth, Valda Morgan, Scott Rozell, John Siegmund, Amy Simon, Larry Varnes, Jodi Vicars -Nance and Ira Weinstein Staff Present: Barbara Ross Larry Varnes, Chair, called the meeting to order at noon. He apologized for the short notice regarding the cancellation of last week's meeting due to the unstable weather conditions. He thanked the CDAC members for their flexibility. Chairman Varnes asked the members if they had any revisions to the December 5t" minutes. No revisions were requested. Valda Morgan made a motion to accept the minutes as written. Scott Rozell seconded the motion. The motion accepting the minutes was approved. Chairman Varnes asked members to discuss the funding applications that were submitted. He noted that there were seven applications. He reviewed the funding chart and asked Ms. Ross to explain what may occur in regard to the Federal Community Development Block Grant and HOME funding. Ms. Ross explained that currently staff is using last year's allocation amounts. However, funding could decrease anywhere from 1.5% to 5% from last year's levels. She stated that officials from the US Department of Housing & Urban Development have stated that the final allocations amounts would be out by the end of March. Chairman Varnes noted that the requests were approximately $600,000 more than the funding that would likely be available. The applications were discussed. It was noted that there was a third request from Fred Moore Day Nursery School for funding. Members requested that Ms. Ross ask for information regarding what improvements were completed with 2012 and 2013 funding. Members suggested that they be able to compare the work that is currently under contract to the work that previous applications indicated would be completed. Chairman Varnes commented that the Home Improvement Program is requesting the highest level of funding but added that the program has a significant impact on Denton's low and moderate - income neighborhoods. It was noted that the Mack Park playground improvements weren't funded last year. It was suggested that Mack Park be included in the project tour. Ms. Ross asked the members to let her know what they would like to see on the tour. Members discussed the small number of applicants and whether members needed paper copies or could use the electronic copies of the applications. Members continued to discuss the FMDNS request. Mr. Rozell commented that he was talking with a member of the FMDNS board and that they indicated the construction costs had exceeded the CDBG funding allocation and the donations had also fallen short. He asked if the daycare had spent their 2012 funding. Ms. Ross indicated that to this point, they have expended funds only on architectural fees. No construction funds have been spent. She explained the delays they have experienced due to some tree and drainage inspections that are required. Members reviewed the application section that states the previous year funding that has been allocated to various projects from the requesting organizations. Mr. Rozell asked when the funds expire. Ms. Ross indicated that funding does not expire unless the City is behind on its HUD "timeliness test" which requires that an entitlement have no more than 1.5 times its current allocation in its Treasury letter of credit sixty days before the end of the program year. She said Denton was doing OK on spending the grant funds and all funding should continue to be available. Chairman Varnes indicated that the CDAC may want to discuss setting priorities due to the possibility of losing funding. Members can determine their priorities while allocating the estimated amount of funding and adjust, if necessary, based on the priorities. Members agreed that they did not want presentation provided by the applicants to be a "re- play" of the information in their application but would like additional information such as: • Other sources of funding that they've explored. • Explanation of why the organization did not get funding. • How did they determine what funding amount to request? • How do they manage budget for greatest effectiveness & efficiency? • What are their controls on expenditures? Ms. Ross reminded members that facilities have to be owned or, the organization must have a long -term lease of at least 15 years before CDBG funds can be spent to renovate a non - profit facility. She stated that FMDNS owns the daycare however, she explained that if they ceased to provide daycare services, the property would revert back to DentonlSD. She added that this would probably never occur but, that the CDAC and City Council need to be aware of the reversion clause. Ms. Ross stated that DentonlSD has provided a letter of support indicating that they would work with the City on the continued use of the facility to serve low and moderate - income families. Serve Denton will rent the space for their new facility from Denton Bible Church. Mr. Rozell indicated that Serve Denton has a 99 -year lease on the facility. Ms. Ross indicated that she would ask for a copy of the lease and provide it to the CDAC members. Mary Beth Cottingham asked if the committee members could see some of the facilities for which funds are being requested. Members agreed that would be helpful. Members continued to discuss the project tour. It was set up for Thursday, February 27th at 2:00 pm. Members also set up two meetings for the applicant presentations and a final meeting to discuss their recommendations to City Council. Amy Simon asked if there were any standard questions that were usually asked by committee members. Chairman Varnes pointed out that the services are different so, usually the questions are related to those services. Ms. Cottingham indicated that the presentations will also generate some questions. Gerard Hudspeth also noted that individual experiences often entail certain questions. Ms. Ross asked if any of the members had a conflict of interest with an applicant. It was determined that no conflicts exist. Mr. Rozell made a motion to adjourn. The meeting was adjourned. Community Development Advisory Committee February 19, 2014 Final Minutes Members Present: Mary Beth Cottingham, Gerard Hudspeth, Valda Morgan, Scott Rozell, John Siegmund, Amy Simon, Larry Varnes, Jodi Vicars -Nance and Ira Weinstein Staff Present: Barbara Ross A quorum was present. CDAC Chair Larry Varnes called the meeting to order at 11:56. He asked if there were any changes in the minutes from February 12t ". Valda Morgan noted that the date needed to be corrected. Scott Rozell moved that the minutes be accepted with the correction. Amy Simon seconded the motion. The minutes were approved with the correction. Chairperson Varnes asked if there were any questions from the members regarding the applications and available funding. There were no questions. Barbara Ross introduced Sheila Harper, Executive Director of the Denton Affordable Housing Corporation (DAHC). Ms. Harper stated that DAHC has sold 83 homes in the City of Denton over the past 18 years. She also stated that they own and manage 76 rental units and that 232 homes in Denton County were purchased, renovated and sold to eligible households. Ms. Harper described the use of the City's HOME funds in the organizations' Affordable Housing Opportunity Program (AHOP). She added that they ensure that the housing unit and the appliances have at least a five -year life. Ms. Harper noted that DAHC has put four million dollars into the local economy and that this does not include the funds used to purchase the housing units. Mr. Varnes asked if the homes become rental units if they do not sell. Ms. Harper indicated that this has not occurred. She added that many of their rental units serve individuals with special needs. The rent for DAHC units is less than $700 per month. Currently, administrative costs are 17% of the budget and this is below the industry standard of 25 %. Ms. Harper commented that this is why they are requesting funds for operating expenses. Additional questions were asked by CDAC members. Ms. Morgan asked is the properties were in specific areas of the city. Ms. Harper stated that both the rental and the homebuyer properties were scattered throughout the community in various neighborhoods. Jodi Vicars -Nance asked about the income levels that were served. Ms. Harper indicated that the income limit was approximately $35,000. Mr. Varnes and Mr. Rozell asked about the use of the AHOP income from the program. Ms. Harper stated that most went back into the program and a small amount was used for administration. She noted that the "profit" margin was only about 10% or less and that they lose money on some units. Ira Weinstein asked if the homebuyers received other types of assistance. Ms. Harper indicated that the homebuyers do not but, sometimes the families renting apartments receive food stamps and /or rental assistance. Ms. Harper stated that it was DAHC's goal to complete three units in Denton over the coming year. Mary Beth Cottingham asked if the homebuyers stayed in the units a long time. Ms. Harper stated that the buyers do usually stay in the properties for several years. Mr. Rozell asked about foreclosures on the units. Ms. Harper commented that foreclosures have recently tapered off. Ms. Cottingham asked if DAHC worked with Habitat. Ms. Harper described the different levels of homebuyers that are assisted by Habitat and DAHC. Ms. Ross commented that DAHC does work with Denton County MHMR to provide housing for special needs populations. Mr. Varnes asked if their staff reduction has caused any problems. Ms. Harper indicated that it has not been a problem. Members asked about the 2012 and 2013 DAHC funding that has not yet been spent. Ms. Harper described their plan for expenditure of those funds. Alma Espino, Housing Program Manager, Community Development, City of Denton, presented the request for funding to support the City's Home Improvement Program (HIP). Mr. Weinstein asked about the number of projects that they planned to complete. Ms. Espino stated that they were requesting funds for ten projects, three reconstructions and seven rehabilitations depending on the cost. To answer the CDAC's questions that were provided to her, Ms. Espino stated that this year the division has participated in the State's Amy Young Barrier Removal program where the State will provide up to $20,000 to assist in making accessible improvements to units that house persons with disabilities. City housing staff has also applied to the Denton County Housing Finance Corporation for funding to support the HIP program. Staff has also requested funds from the "Lead Safe for Kids Sake" program but, only four cities received funding from that program. It was noted by Ms. Espino that construction costs are increasing such that staff has to focus on the improvements that are the most effective at making the unit safe and livable. Painting and carpeting are also included in the projects. Ms. Espino explained that all projects must be bid out. A cost estimate is prepared by staff. The owner may choose their contractor but, the bid cannot be more or less than 10% of the cost estimate. Change orders must be approved by the owner, contractor and City housing staff. Mr. Varnes asked about the retention levels for housing owners. Ms. Espino stated that it is very good with almost all households continuing to live in the units. Sometimes, generally when an elderly household has been assisted, the unit will be passed on to the heirs. If this is the case, and depending on their income, the heir to the property may either pay the balance on the loan back to the City or, if they are income eligible, they can live in the unit and complete the payments and forgivable portion based on their income level. Ms. Ross pointed out that there had been five or less foreclosures since the beginning of the program. Ms. Espino stated that many homeowners would not be able to maintain their housing unit without HIP assistance. Mr. Rozell asked about the lending entity, how the loans are managed and how the income from the loans is used. Ms. Espino explained that depending on income, part of the funding provided is a payable loan and the other part is a forgivable loan. The housing staff manages the loans, checks to see that the household assisted is still living in the unit, that the unit is being maintained properly and that the taxes are being paid. She stated that the program income is used for future projects and is included in what the CDAC has to allocate for the coming program year. Mr. Weinstein asked about the interest rate. Ms. Espino indicated that the payable loan has a 2% interest rate and the deferred loan has a 0% rate. Mr. Weinstein also asked how homeowners find out about the program. Ms. Espino described the methods staff uses to market the program i.e. advertisements in the newspaper, CD newsletter that goes out to various individuals, organizations and neighborhood groups and recently staff has put an advertisement on the CD vehicle and has gotten some phone call from that. CDAC members had some closing questions. Gerard Hudspeth asked if, under the HIP, dollars are earmarked for certain things. Ms. Espino explained that all the funds are in a single account and, for example, no funding is set aside specifically for foundations. It is used as needed on each housing unit. Ms. Morgan asked if staff pays the contractor and Ms. Espino stated that after homeowner and staff approval, Community Development pays the contractor. Mr. Varnes pointed out that Ms. Espino may have to prioritize projects if sufficient funding for all ten units was not available. Ms. Espino indicated that they would attempt to complete any projects started in the previous year and move to the waiting list for new projects. Gordon Meredith, Residential Construction Specialist, Community Development, City of Denton gave the presentation for the City's Minor Repair Program (MRP). He described the program as assisting low income homeowners with one or two urgently needed repairs. Housing staff came up with the $90,720 figure by looking at the average expenditures for the past four years and noting the amount of funding that may remain in the MRP account at the end of the program year. He stated that this year, more households have asked for assistance on their heating units due to the low temperatures. Mr. Meredith added that the staff usually divides the funding up into quarterly allocations. This is due to the fact that in June and July, the end of the CDBG program year, there are usually many requests for assistance with air conditioning units. Staff does not want to be out of funding to serve households with this urgent need. Mr. Meredith stated that there is a $5,000 cap on any minor repair. This program serves households at 65% of the area median income and below. This is a lower threshold than HIP. The CD Administrative Assistance obtains the required income information and two additional staff members review and approve the applicant's status. Mr. Varnes asked about the number of households that would be assisted. Mr. Meredith indicated that it would be between 30 and 40 households depending on the level of work to be completed. It was noted that contractors bid on each project and if the project cost is going to be more than $3,000 then at least two "Historically Underutilized Businesses" must be asked to submit a bid. John Siegmund asked if staff looks at repairing first and replacement only if necessary. Mr. Meredith explained that most appliances are old and need to be replaced. About 2/3 rd of them are replaced rather than repaired. Mr. Siegmund pointed out that in many instances, it's cheaper to replace than repair. The 65% median area income cap for program eligibility was mentioned. Ms. Simon asked if there was any cost to the homeowner. Mr. Meredith stated that there was no charge to the homeowner and no lien was placed on the property. Mr. Varnes asked if most people stay in the homes. Mr. Meredith responded that they do stay in the homes and this is true even for the mobile homes. Members discussed the efficient use of the funding that will be available. Mr. Hudspeth noted that DAHC units are inspected prior to their purchase. City staff works with homeowners and their existing housing. Ms. Ross mentioned how the HIP has increased property values and tax revenues. Often other owners will do improvements after seeing the improved properties in their neighborhoods. Mr. Varnes mentioned the next meeting on February 261" and the project tour on the 27t ". Ms. Ross said she would email members about the tour and where they will meet. Mr. Rozell made the motion to adjourn. The meeting was adjourned. Community Development Advisory Committee March 26, 2014 Draft Minutes Members Present: Mary Beth Cottingham, Gerard Hudspeth, Valda Morgan, Scott Rozell, John Siegmund, Amy Simon, Larry Varnes, Jodi Vicars -Nance and Ira Weinstein Staff Present: Barbara Ross A quorum was present. CDAC Chair Larry Varnes called the meeting to order at 5:27 pm. Mr. Varnes asked if there were any corrections to the minutes. Hearing none he asked for a motion to approve the minutes. John Siegmund moved that they be approved as written. Valda Morgan seconded the motion. The minutes were unanimously approved. Mr. Varnes asked Ms. Ross to review the available funding for allocation to projects. Ms. Ross explained that Luisa Rodriguez- Garcia who handles the Community Development (CD) budgets had already deducted the administration and human services caps from the available funding. She added that some project - related personnel costs come out of programs such as the Home Improvement and Minor Repair. Ms. Ross stated that the CD Division was requesting some additional general funds to support staff costs for these programs. This would allow staff to seek other funding sources and provide additional funding to assist residents with their housing issues. Mr. Varnes reviewed the amounts available and members discussed which programs could be funded through the HOME program. Mr. Siegmund suggested that the committee start with any project that they would like to fully fund. Mr. Varnes asked if members wanted to fund the full $100,000 for the Denton Affordable Housing Corporation (DAHC) and the City's housing programs that ranked high. Gerard Hudspeth asked about the HOME funding and the monies that have been pulled from the allocation. Ms. Ross stated that 15% of the City's HOME allocation must be provided to a "community housing development organization" for housing activities and that is about $55,000 for the 2014 budget. Mr. Siegmund suggested that DAHC should receive the entire $100,000. Members agreed to put that down as a "working number." Members agreed to put the remaining HOME funds into the Home Improvement Program (HIP) budget. Mr. Varnes said they may also want to include some Community Development Block Grant (CDBG) funds in the HIP budget. Mr. Varnes reviewed the Committee's project scores. Members agreed to include full funding for the Minor Repair Program (MRP) in the preliminary budget. The request from Denton City County Day School ( DCCDS) was discussed. Mary Beth Cottingham noted that the facility was out of code for their grease trap and, at a minimum, they need to replace that to bring the facility up to code. Previously, they brought in food to serve but, it has become too expensive. Mr. Varnes indicated that the number of children they serve per dollar is impressive. Amy Simon stated that the detailed budget DCCDS sent out is less than their original request. Ms. Ross pointed out that due Page 1 to the detailed budget, the CDAC could fund some items but did not have to fund all. Scott Rozell commented that he supported giving DCCDS funding for the grease trap and some other items. He added that DCCDS could get a portion of the project completed, build a relationship with a contractor and then ask the contractor to assist in a cost estimate for additional work on the facility. Mr. Siegmund stated that the daycare is very well -run and he thought that they wouldn't need to make additional requests. However, he added that his notes indicate a recommendation for full funding. Mr. Hudspeth commented about the contractor "profit and overhead" in the detailed budget. Members continued to discuss the agency's needs and the requested funding. Mr. Varnes stated that the budget seems fairly specific. Mr. Siegmund stated he wasn't sure what else DCCDS could want to do to the facility. Ms. Ross pointed out that DCCDS did not request funds last year. She also noted that sometimes the organization that is funded doesn't receive the full amount. In those instances, they will raise additional money or only do a certain items in the proposed renovation. Ms. Cottingham pointed out that Fred Moore Day Nursery School (FMDNS) has some additional sources from which they could request funding. It appears that DCCDS has a small budget. Ms. Simon noted that DCCDS was requesting less than what was in the original application. Mr. Siegmund complimented DCCDS on their facility and how well they've kept it. Mr. Varnes asked about Mack Park. Mr. Hudspeth and Ms. Cottingham indicated their support for the project. Ms. Cottingham commented that it was a safety issue. Mr. Weinstein and Ms. Morgan also stated their support. Members agreed to include the $115,000 requested for the project. Mr. Varnes asked the members to discuss Serve Denton. He commented that there had been no City determination in relation to the lease question. Mr. Varnes added that this should be considered eligible and in the future, if it is determined that it is not eligible, the funds can be reallocated. Ms. Cottingham asked when they would know whether there is an issue or not. Ms. Ross gave the example of the new playground equipment for the Wheeler Center that was funded last year. Staff determined later that the playground area was in the floodway and therefore the project was ineligible under CDBG. They determined that in August /September of last year. Jodi Vicars -Nance asked about the clause in the lease that might make the project ineligible. Ms. Ross stated at this time, the project is eligible. She stated that there are some restrictions on sublessees when they are off the premises, such as the fact that they cannot be involved in activities that advocate for a non - Christian faith. Mr. Siegmund noted that United Way was not accepted as a possible tenant due to their contribution to Planned Parenthood. Mr. Varnes noted that this comment had not been confirmed and was "here say." Mr. Varnes added that the building is in very good shape and it's possible that they could raise the funds themselves or with the help of the tenant organizations. Ms. Cottingham stated that she was thinking that as well. Mr. Varnes noted that the lack of funding from the City would probably not stop Serve Denton from carrying out their plan. Mr. Siegmund said it is a great idea and that the lease doesn't have to do with Serve Denton. Ms. Cottingham suggested that the committee target the parts of the facility that would serve 100% clients. Ms. Ross noted that the funds should be limited to areas where the programs might not have as much trouble documenting the benefit to low and moderate - income persons. Ms. Morgan mentioned that the kitchen might also bring in revenue. Ms. Cottingham and Mr. Rozell noted that some appliance donations but the installation costs were not included. Ms. Cottingham stated that perhaps the universities could provide some funding if some of their students will be participating. Mr. Varnes suggested that approximately $65,000 be allocated and specifically state where the funds should be spent. Mr. Rozell Page 2 explained why the kitchen isn't 100% client services because they will be using it to prepare for events. Mr. Weinstein pointed out that the committee could allocate some funds but, deduct some if needed as they review all activities. Members agreed to include $65,000 as a working number. Members discussed what they allocated to the Home Improvement Program last year. Mr. Rozell and Mr. Weinstein indicated that it was $426,000. Ms. Ross commented that almost all of the 2013 -14 funds have been committed. She stated that usually there are funds left over that are pulled into the next year but, that will not happen for the 2014 -15 program year. This is why the request is higher than in the past, no other funds are available. Members agreed to put in $427,000 in the budget for HIP as a placeholder. Mr. Varnes stated that the committee now go back and discuss the daycares. Mr. Hudspeth stated that he felt that the committee should fully fund DCCDS. He added that he was concerned about the management of the FMDNS project. Committee members stated their concerns that the organizations were relying on Federal funds to do current and future improvements and expansions of the facility. Mr. Siegmund commented that the agencies serve families that would not otherwise afford childcare services. Ms. Vicars -Nance commented on the significant amount of funding received by the organizations in the past. Ms. Morgan mentioned her concern regarding the methods used to choose contractors for the project. Ms. Ross explained the process for choosing contractors. Ms. Simon brought up the concern that the activity room to be completed by FMDNS might not be usable after the project that is currently funded is complete. Ms. Ross indicated that she spoke with their board president and she indicated that funds have been reallocated to make the activity room usable. Mr. Rozell stated that he wanted to give them the minimum needed to complete the activity room and ensure that no funds are rescinded. He noted that FM DNS was the only daycare providing sliding scale fees and care for infants. Ms. Simon commented that they need to spend the money that they currently have. Mr. Hudspeth said that if funds aren't allocated, it doesn't adversely affect how they serve their families. It will enhance the facility and services but, without it, FMDNS will continue to provide services at the current level. Members discussed what might occur if the activity room is not completed and the children would not be able to use it. Ms. Ross stated that Ms. Bays emailed her stating that some change orders will be made to ensure the room can be used. Ms. Morgan commented that the quality of the soil was a major issue and that the City of Denton fees were higher than expected. Ms. Ross explained that the project had been out to bid three times. The first time no contractor's bid on the project. Mr. Varnes stated that he would be in favor of providing funds for the fence and pay for additional costs associated with construction. Ms. Ross indicated that the City can't pay past expenses with future funding. Mr. Hudspeth stated that FMDNS should complete the project and come back next year if there are additional needs. Ms. Cottingham added that she was concerned because Ms. Bays indicated that the person they trusted to assist them did not do what was needed and now they're playing catch up. She added that she would like to see them sort everything out and then see what their additional needs are. Ms. Ross pointed out that the project has started. Mr. Weinstein proposed a compromise of funding them for $65,000 as a placeholder. Mr. Varnes suggested that they allocate funds for the fence and then an additional $50,000 for other costs. Mr. Rozell suggested that the fence could be constructed by a volunteer group and the FMDNS allocation could be used for other items needed to complete the renovation. Ms. Cottingham suggested that the full amount of funding be allocated to DCCDS and then whatever is left can go to FMDNS. Members agreed to put $102,767 down for DCCDS. Page 3 Mr. Rozell said he'd like to give more to Serve Denton indicating that they serve many people but the funds to housing only serve one family. Ms. Cottingham suggested $40,000 or $50,000 to FMDNS and the rest to HIP. Ms. Morgan suggested that FMDNS get all the remaining funding. Mr. Hudspeth stated that CDAC needs to ensure that new improvements are targeted. He asked Ms. Ross about the expenditure of the funds. Ms. Ross stated that CD is involved in the bidding process and monitors the project the entire time to ensure that the contractor complies with labor regulations. Mr. Rozell asked about the possibility of funds being "intermingled." Ms. Ross indicated that staff reviews contractor invoices, checks the work and if it is all correct, FMDNS is reimbursed for their expenditures. Mr. Hudspeth asked about activity room expenditures. Ms. Ross stated that FMDNS is changing the work on the parking lot to have sufficient funds to make the activity room usable. Ms. Ross pointed out that Fred Moore has received more than other organizations have received. She noted that they were a wonderful organization that is assisting many families. Some prior funding was returned to the City due to some issues at the agency. It was asked how many members wanted to give FMDNS no funding. Ms. Cottingham suggested that the CDAC recommend funding for the landscape and irrigation. Ms. Vicars -Nance noted that the activity room does not increase the number of children served. Mr. Siegmund noted that you wouldn't get a contract for the exact amount and asked how that is handled. Ms. Ross said any residual money can be spent on additional improvements but an amendment to the funding agreement may be retired. Mr. Hudspeth mentioned that a nice building could have been built with the amount of funding that has been spent on this facility. Mr. Varnes asked how many members support $40,000 to FMDNS with the funding left going to the HIP. The vote was six to three in favor of supporting $40,000 to FMDNS. Ms. Vicars - Nance suggested that the remaining funding should go to HIP. Mr. Varnes reviewed the funding amounts for each organization. Members continued to discuss the allocation of funding to FMDNS. The majority of members agreed to recommend funding for FMDNS. Ms. Ross said that the public comment period is during the month of April and that the CDAC presentation would probably be sometime in April. Mr. Varnes stated that he'd like everyone to feel OK about the recommendations. Mr. Siegmund suggested that the committee should vote on the overall package and see if the decision could be unanimous. He noted that not everyone has gotten what they preferred. Mr. Varnes asked who agrees with the recommendation package as presented. The vote was five to three and it was noted that the concerns were in regard to FMDNS and Serve Denton. Ms. Ross indicated that she would work with Serve Denton to determine what might be easier for Serve Denton to keep income records to confirm that they are serving 51% low and moderate - income. It was noted that the part of the mission of Serve Denton was to have the client fill out forms only once and yet be able to access a variety of services. Mr. Weinstein made a motion to accept the recommendations as written. Mr. Siegmund seconded the motion. The motion was approved by a seven to two vote. Ms. Vicars -Nance made a motion to adjourn. The meeting was adjourned. Page 4 I i T 1' F DENTON UNOFFICIAL Minutes Human Services Advisory Committee Large Conference Room, City Hall East 601 E. Hickory, Denton, TX November 15, 2013 12:OOpm- 1:30pm Members Present: Mary Ann McDuff- Chair, Sara Bagheri, Sheryl English, James McDade, Anita Martinez- Strickland, Dale Tampke, Ira Weinstein Members Not Present: Mary Behrens, Stephen Coffey, Teddy Griffin Staff Present: Danielle Shaw and Barbara Ross A Quorum was established. Mary Ann McDuff, Chair called the meeting to order at 12:05pm. Danielle Shaw, staff liaison to the committee reported that all members present had completed the required Oath of Office. Mary Ann McDuff, Chair reviewed the Human Services Advisory Committee Description on page 48 of the City of Denton Handbook for Board, Commissions, and Council Committees. McDuff also reminded members of the importance of attendance so that the committee can meet the required quorum to conduct meetings. Members of the committee completed a round of introductions. The committee held its annual election of Chair and Vice Chair. Sara Bagheri nominated Mary Ann McDuff for Chair and James McDade for Vice Chair. No additional nominations were submitted. Sara Bagheri moved that Mary Ann McDuff be elected as Chair and James McDade be elected as Vice - Chair. Ira Weinstein seconded the motion. The motion carried. Minutes from February 28, 2013 were presented for Approval. Sheryl English moved that the minutes be approved as presented. James McDade seconded the motion. The motion carried. Shaw presented information resources and tools available to committee members. Members held a discussion about additional resources that would be helpful in considering future application requests. Shaw will provide. McDuff led a discussion regarding the upcoming human services funding cycle. Discussion opened with a review of identified community needs and committee members were provided with two dates for upcoming Public Hearings to gather community feedback on community needs. Those dates are December 3, 2013 from 1:OOpm to 3:OOpm. Members reviewed the proposed 2014 -2014 Human Services Funding Application. Sara Bagheri moved that the application as proposed be approved for distribution. Sheryl English seconded the motion. The motion carried. Shaw presented the scheduled dates for application training offered to agencies interested in submitting an application for Human Services Funding. Those dates are December 3, 2013 from 1:30pm to 3:00pm and December 5, 2013 from 9:30am- 11:00am Members requested that all application received be provided in print in a binder for each member. Binder will be available for members to pick up the week of January 21 -24. Members reviewed the current evaluation form used to evaluate applications during review. It was decided to keep the existing format. Members consider dates for upcoming meetings and agency presentations. Those dates will as follows below: • Meeting: Friday, February 7, 2014 11:30 -1:30 Agency Presentations • Meeting: Friday, February 14, 2014 11:30 -1:30 Agency Presentations • Meeting: Friday, February 21, 2014 11:30 -1:30 Agency Presentations • Forms Due: March 7, 2014 HSAC Evaluation Forms are due to D. Shaw • Meeting: Friday, March 28, 2014 11:30 -1:30 Recommendation Session • April TBA: Recommendation Report and Presentation to City Council The next meeting of the committee is Friday, February 7, 2014 at 11:30am. The meeting was adjourned at 1:15pm Minutes Respectfully Submitted by Danielle Shaw, Staff Liaison to the HSAC Minutes Approved: I U i- Minutes Human Services Advisory Committee City of Denton Civic Center 321 E McKinney Street, Denton, TX February 7, 2014 11:30a -1:45p Members Present: Sara Bagheri, Mary Behrens, Sheryl English, Teddy Griffin, Anita Martinez - Strickland, Mary Ann McDuff, Ira Weinstein Members Not Present: Stephen Coffey, James McDade, Bryce Olson Staff Present: Danielle Shaw and Barbara Ross A Quorum was established. Mary Ann McDuff called the meeting to order at 11:35a Mary Ann McDuff, Chair welcomed committee and staff. All Oaths of Offices are current and complete for members present. McDuff announced the resignation of member, Dale Tampke and announced new member, Bryce Olson. Members and staff introduced themselves. Minutes from November 15, 2013 were presented for Approval. Sara Bagheri moved that the minutes be approved as presented. Sheryl English seconded the motion. The motion carried. McDuff direct members to the board manual and reviewed the Conflict of Interest Policy. McDuff reviewed the packet of information and tools available to members as they begin the review process to make recommendations for this upcoming cycle of funding. The following notes from the agency funding presentations are provided for committee information and review. Salvation Army - Denton 11:41a Presenters from the Salvation Army included Sgt. Carol Hernandez and Sgt. Carlos Hernandez. The Salvation Army Denton was provided with five minutes to present information to support its funding request. Agency representatives provided information about increasing in Food Bag distribution. Agency described that the emergency shelter is generally filled to capacity due and its responses to extreme weather. It provided a detailed description of procedures enacted to determine client eligibility specifically waivers for emergency stays. Agency discussed other social service programs including food pantry, job search and job support programs, prescriptions, clothing and transportation. Agency highlighted collaboration with other partners to help clients move to permanent housing. HSAC members took five minutes to ask the agency questions. The agency was asked to provide explanation of how it determines Denton residency when a client is chronically homeless. In response to an organizational structure and funding sources question the agency offered information about the types funding sources and the operational structure within the Salvation Army's DFW command as it relates to funding. Agency was asked about its source of food for the food bank. The response was that it comes primarily from the North Texas food Bank. Agency indicated that it is over capacity and provided details of how it serves clients overnight when it is over capacity. Applicant Organization Presentation Time Fairoaks 11:55a Presenters from Fairoaks included Lee Ann Hubanks, President and Rebecca Marcott, Fairoaks Service Coordinator Agency representatives shared a model of the Plano site displaying the health care complex. Agency described that funding was being sought for a new Telehealth program that would directly tie Denton Fairoaks residents into the Plano health complex through the use of a virtual health care model. The model was described in detail. HSAC members took five minutes to ask the agency questions. The agency was ask how this program does or does not tie into the Affordable Care Act. Agency was asked to provide details about the current location. Agency shared the address of the location and that they serve 40 residents. In response to being asked about the Telehealth model and how Fairoaks will measure success the agency provided an overview of Telehealth as a model, how it will be specifically implemented in Denton, the tools that will be utilized, the role of the service coordinator will have in the program and how it will measure effectiveness. Applicant Organization Presentation Time Denton Community Health Clinic 12:12p Presenters from Denton Community Health Clinic Alice Masciarelli, Executive Director and Carol Wakefield, Vice Chair of Board. Denton Community Health Clinic (DCHC) was provided with five minutes to present information to support its funding request. Members were provided an overview of why DCHC is unique in it client centered model of health care and that no patient is ever turned away. Agency provided statics that 90% of clients come to appointments compared to the national average rate of 70 %, 10% of homeless clients have been able to stabilize physical and mental health issues. Agency shared that it is applying for a national quality assurance award. Agency then provided additional information about the model and related to a comprehensive one -stop shop, multi - dimensional care office. It all discussed where it intends to grow programs to help DCHC generate funding and revenue to support programs HSAC members took five minutes to ask the agency questions. The agency was asked to detail all the health care options available. Agency provided a detailed list. When asked about salaries, the agency shared that all positions are volunteer. The agency was asked to provide the number of clients served on average. The number when asked to clarify what ages are served, the agency indicated that all ages are eligible. The agency discussed its new facility as well as the addition of office space at Our Daily Bread to serve homeless clients on site there. Agency was asked to provide hours of operation. Applicant Organization Presentation Time Interfaith 12:31 p Presenters from Interfaith included Lehia Hill, Outreach and Development Associate and Jackie King, past board member and current volunteer. Interfaith was provided with five minutes to present information to support its funding request. Agency representative's first shared information about the types of clients it serves and then provided a description of the software program that the funding would support. The program, called Seeladora, will help improve services to clients and offer clients the ability to interact with Interfaith 2417. Agency shared that it is the primary source of emergency assistance in Denton County but at current levels the agency is only able to serve about 4% of the need in the community. Funding would help 16 additional families. Agency also highlighted new initiatives including client investment as a strategy of case management. Agency also provided additional information about its collaborations. HSAC members took five minutes to ask the agency questions. Agency was asked about its criteria for funding assistance and to provide any clarification of criteria or policy that might disqualify clients. Agency discussed income requirements and non - discrimination practices in response to the question. Agency was asked to clarify issues with having only a single phone line and how that limits its ability to serving people in crisis with only one phone line. Agency provided more information about the Seeladora program and how it will help improve services. Agency was then asked a follow -up question about how it will help clients without computers or internet. Agency provided details about implementation of the program, community resources and statistics on increased mobile device ownership among all income levels. Break Members took a short break. Meeting resumed at 12:58p 12:45p Applicant Organization Presentation Time Denton County Friends of the Family 1:OOp Presenters from Denton County Friends of the Family included RayAnne Climer, Shelter Director and Irrayna Pittman, Director of Operations Denton County Friends of the Family (DCFOF) was provided with five minutes to present information to support its funding request. Agency representative provided a an overview of current data including a documented 42% increase in the number of calls to the shelter, 19% increase in client stays and a 19% increase in new residents. The agency also shared seeing increases in crisis line support. The representative provided detailed description strategic goals to streamline and improve client services that include increasing crisis line support, downsizing client rules to allow more flexibility for clients and improving volunteer training. The agency also shared new fundraising priorities including the addition of a new annual event. Representatives emphasized that they are the only provider for domestic violence and sexual assault. HSAC members took five minutes to ask the agency questions. Agency was asked to provide information about any new facilities for the shelter to serve more clients. Agency discussed the limitations and the intent to focus on a smaller set of goals in the future. Agency was asked to explain the loss of rental income from previous year. Agency shared the lessee broke the agreement and explained the limitations in signing up a new lessee. Agency was asked to clarify information in application. The first was the number of clients served. Agency shared that the average number of clients served ranges from 40 -80 people a month with about 500 served annually. The second question related to if the organization still had n attorney on staff. Agency directed members to where that was listed in the application. Finally, the agency was asked to clarify the number of City of Denton Residents served. Agency provided clarification that the application should report a higher number at around 35 %. Applicant Organization Presentation Time Giving Hope — HMIS 1:12p Presenters from Giving Hope for the HMIS included Dr. Alonzo Peterson, Executive Director and Roshaun Epperson, CoC data Support Specialist Giving Hope - HMIS was provided with five minutes to present information to support its funding request. Agency representative provided a brief review of how HMIS came into existence related to the need to coordinate data and information. HUD mandated that a more centralized system be utilized and created HMIS. Agency explained that HMIS is a required database system for funding recipients. Agency explained the three basic things HMIS services offer. These include technical assistance, data integrity, and capacity building. The representative gave additional information about how HMIS is implemented in collaboration with other agency, the Texas Homeless Network. Additional information was offered to explain how this data improves services provided by multiple agencies across the county. The agency finished with information that it has been the lead agency with HMIS since 2004. HSAC members took five minutes to ask the agency questions. The agency was asked for information on how HMIS works with other community services like Aunt Bertha an information database about services available. Agency explained the differences and how they are coordinating efforts when possible. Agency was asked about contact information for HMIS versus Hope. Agency was also asked to list the agencies that are currently supported by the HMIS database. A list was provided that includes Christian Community Action, Giving Hope, Inc., Health Services of North Texas, Our daily Bread, and soon Vision Ministries. Agency was asked about Interfaith's participation. It was clarified that it does not use HMIS but there is other coordination efforts. Additional clarification was sought about HMIS as a direct service provider. It was explained that HMIS is the data to support agencies not direct service. Agency was asked how it handles confidentiality. In response, the agency detailed consent process. More information was sought about data integrity and managing disparities. Agency provided an example of how disparities were managed in the 211 program. Agency was asked about training it explained the content. Agency was asked about the issues with HMIS and how those are being managed. Agency provided explanation. Applicant Organization Presentation Time Giving Hope — Transitional Housing 1:23p Presenters from Giving Hope for the Transitional Housing Program included Alonzo Peterson, Executive Director. Giving Hope — Transitional Housing was provided with five minutes to present information to support its funding request. Agency shared that the Giving HOPE, Inc. Transitional Housing Program (HOPE) has been in existence for 21 years. Qualification for clients was shared. It was explained that clients are referred through collaborations with Denton County Friends of the Family and the Salvation Army. Agency provided a detailed description of the program. Clients who have barriers to stable housing are provide with rent and utilities supports. Program requires qualification to stay in the program that includes weekly case management, maintaining stable employment and then as stability is demonstrated the client begins to take on more of the rent and utility payments. The program includes requirements for volunteering, and provides job and resumes support, GED, income counseling, support groups for adults and children, transportation support and childcare. HSAC members took five minutes to ask the agency questions. Agency was asked to clarify if the program was also Section 8 (a federally funded housing voucher program) Agency explained that it is not supported by that source. More information about budget breakdown was requested. In response the agency highlighted the different line items and related expenses. Agency provided a detailed explanation the path of a typical client to answer a question about where HOPE intervenes with a client in crisis. Mary Ann McDuff, Chair led a brief discussion about the meetings presentations, tools and feedback about the meeting. The next meeting of the committee will be Tuesday, February 14, 2014. The meeting was adjourned at 1:43p Minutes Respectfully Submitted by Danielle Shaw, Staff Liaison to the HSAC Minutes Approved: February 14, 2014 IT DEWON;r Minutes Human Services Advisory Committee City of Denton Civic Center 321 E McKinney Street, Denton, TX February 14, 2014 11:30a -1:45p Members Present: Sara Bagheri, Mary Behrens, Stephen Coffey, Sheryl English, Teddy Griffin, James McDade, Anita Martinez- Strickland, Mary Ann McDuff, Ira Weinstein Members Not Present: Bryce Olson Staff Present: Danielle Shaw and Barbara Ross A Quorum was established. Mary Ann McDuff, Chair called the meeting to order at 11:32a McDuff welcomed committee and staff and wished everyone a Happy Valentine's Day. All Oaths of Offices are current and complete for members present. Minutes from February 7, 2014 were presented for Approval. Stephen Coffey moved that the minutes be approved as presented. James McDade seconded the motion. The motion carried. McDuff reviewed the Conflict of Interest Policy and Procedure. The following notes from the agency funding presentations are provided for committee information and review. SPAN 11:35a Presenters from the SPAN included Deb Robertson, Executive Director. SPAN was provided with five minutes to present information to support its funding request. Agency representatives provided a review of services provided and the clients served indicating their primary goals are to combat senior hunger and provide quality nutrition to seniors. Representative discussed how the population growth in Denton has created increasing demands on services. Agency shared that it has experienced reductions in federal funding from the Title Three funding. Agency highlighted a growth opportunity with the addition of an AmeriCorp VISTA. HSAC members took five minutes to ask the agency questions. The agency was asked to provide explanation of how the funding reduction impacts services. In response to questions about who makes the meals, the agency provided information about vendor, their qualifications and the agency's interest in one day finding a local kitchen. Agency indicated food costs are rising when asked. Agency was asked about South Denton locations; marketing and distribution; and wait list. Agency shared that it does not have a waitlist and due to growth does not market programs. Agency representative was asked to provide information about her background and experience. Applicant Organization Presentation Time Camp Summit 11:54a Presenters from Camp Summit included Pam Chicol, Director of Development and Camp Director, Lisa Braziel. Camp Summit was provided with five minutes to present information to support its funding request. Agency representatives thanked the committee for the opportunity to present. The presentation began with the explanation of the clients served. The agency shared that the goal is to provide a "can do" environment for the disable. Programs also provide much needed respite for families who are living with a "forever child ". Agency discussed recent growth in the number of available sessions allowing them to serve more clients. The agency shared a story about a client. HSAC members took five minutes to ask the agency questions. The agency was asked about the length of camp session. When asked about the current lack of Denton County representation on its board, the agency discussed previous representation and how the board selection process includes recruitment efforts in the county. Agency was asked to update the committee on its move to a new camp facility. Agency provided an explanation and also how it will increase the camps capacity to serve more clients. The agency was asked to discuss any relationships with other agencies that serve the disabled and how that impacts client recruitment. Applicant Organization Presentation Time CASA of Denton County 12:06p Presenter from CASA included Sherri Gideon, Executive Director. CASA was provided with five minutes to present information to support its funding request. Agency representative thanked the members for the opportunity to present. Agency addressed why it continues to seek funding support. Agency provided updates to sections in the application. Presentation included a brief review of its strategic and funding goals and an explanation of why it should be funded. HSAC members took five minutes to ask the agency questions. The agency was asked to detail growth in staff. Agency discussed the addition of Case Manager and Volunteer Coordinator positions. It was also asked to clarify how lower CPS filings impact numbers served. Agency provided additional information about the addition of an administrative position. Agency was given additional time to provide more detail on its strategic and funding goals. Applicant Organization Presentation Time Denton County MHMR 12:27p Presenters from Denton County MHMR included Larry West, Administrator of IDD Services and Brenda Bagherpour, Contracts Specialist Denton County MHMR was provided with five minutes to present information to support its funding request. Agency representative's presented details on the program to be funded discussing clients served, stalking details, and services provided. The funding will supplement salaries for the direct care staff in nine group homes in Denton serving 36 individuals. Additional financial information was offered related to how funding will help reduce increasing overtime costs. Agency provided a brief description of services offered to clients residing in group homes. HSAC members took five minutes to ask the agency questions. Agency was asked if the group homes where owned or rented by the agency. Agency indicated that due to inconsistent funding, the agency rents properties rather than purchase. How costs are recovered from clients for living expenses and services provided was explained. Agency provided information related to current staff vacancies. When asked, the agency provided further detail for salary ranges of executive staff and direct care staff. Break Members took a short break. Meeting resumed at 12:56p 12:45p Applicant Organization Presentation Time Family Health Care 12:58p Presenters from Family Health Care included Patrice Capan. Family Health Care was provided with five minutes to present information to support its funding request. Agency representative detailed that services are to help the uninsured in Denton County and that it serves 126 zip codes. Additional statistical information was offered including that fact that 20% of clients are 35 and older, most are not eligible for Medicaid, issues of high blood sugar are on the rise, and that the bilingual services are highly sought. HSAC members took five minutes to ask the agency questions. Agency was asked to clarify the rate of increase in gestational diabetes and the total numbers of Hispanic clients served. The rate of compensation for doctors was requested. Agency provided information about the increase in the number of doctors due to funding changes in tile funds and Medicaid. In response to a question about how the Affordable Care Act impacts services, the agency shared its insurance coverage options. The recent partnership agreement with Health Services of North Texas was discussed. Applicant Organization Presentation Time Health Services of North Texas 1:11 p Presenters from Health Services of North Texas included Louise Weston - Ferrill, Director of Programs and Doreen Rue, CEO. Health Services of North Texas was provided with five minutes to present information to support its funding request. Agency representative thanked the committee for the opportunity to be considered for funding. Representatives provided an overview of three programs to be funded if awarded: the nutrition center; pharmaceutical prescription drug program; and an integrated metal health program. Agency shared that the value of services to clients is 1.34 million and that 99% of the clients served are below 200% of the poverty level. HSAC members took five minutes to ask the agency questions. Agency was asked to clarify the terminology, nutrition center shops. Questions also included how much the pharmaceutical program offsets prescription costs for clients. Agency indicated it was not a new position when asked if the pharmaceutical program case manager is a new one. Agency was asked to prioritize the three programs in order of funding need. COE, Doreen Rue was asked to provide an overview of experience and to provide additional information about agencies growth and expansion plans. Applicant Organization Presentation Time PediPlace 1:35p Presenters from PediPlace included Larry Robbins, President and CEO PediPlace was provided with five minutes to present information to support its funding request. Agency representative thanked the committee for the invitation to present. Agency highlighted that the application was written to reflect City of Denton residents served. Since they are used as a tool used by the agency to gage the upcoming year, January services totals were shared. These include 34% increase in care provided and a 42% increase in visits. There has been a 13% increase in Denton residents served. Agency then offered that they should be funded because children need access to health care and because they have offered consistent service to City of Denton residents. HSAC members took five minutes to ask the agency questions. Agency was asked to offer information about trends in ages served and how transportation affects Denton residents' ability to obtain services. Agency was asked how it identifies City of Denton representation in leadership positions. Agency provided details of previous board representation and also how it focuses on geographic diversification. It was asked about the option of locating offices locally and shared the significant funding requirement necessary to open a satellite office in Denton. Mary Ann McDuff, Chair led a brief discussion about the meetings presentations. The next meeting of the committee will be Friday, February 21, 2014. The meeting was adjourned at 1:54p Minutes Respectfully Submitted by Danielle Shaw, Staff Liaison to the HSAC Minutes Approved: February 21, 2014 IT DEWON;r Minutes Human Services Advisory Committee City of Denton Civic Center 321 E McKinney Street, Denton, TX February 21, 2014 11:30a -1:45p Members Present: Sara Bagheri, Mary Behrens, Stephen Coffey, Sheryl English, Teddy Griffin, James McDade, Anita Martinez- Strickland, Mary Ann McDuff, Ira Weinstein Members Not Present: Bryce Olson Staff Present: Danielle Shaw and Barbara Ross A Quorum was established. Mary Ann McDuff, Chair called the meeting to order at 11:34a Minutes from February 14, 2014 were presented for Approval. James McDade moved that the minutes be approved as presented. Mary Behrens seconded the motion. The motion carried. McDuff reviewed the Conflict of Interest Policy and Procedure. Prior to the start of the agency presentations Sara Bagheri requested a discussion on how the HSAC could gather additional salary information from all the agencies seeking funding. In order to stay on agenda, the discussion was tabled until the break. The following notes from the agency funding presentations are provided for committee information and review. Denton Christian Preschool 111:43a Presenters from the Denton Christian Preschool included Alicia Blanca, Director and Mary Ellen Smith. Denton Christian Preschool was provided with five minutes to present information to support its funding request. Agency representatives provided details about how the funding awarded would be utilized for a classroom teacher and a driver. Agency shared lessons learned about the need for transportation. Agency also discussed the addition of a new program that will offer clients more instruction hours. HSAC members took five minutes to ask the agency questions. The agency was asked how many clients were served by the program. When asked about a waitlist, the agency confirmed that it does have one but the new program will allow them to open up more spaces. Agency was asked to clarify ages of clients served and the hours of operation. Agency responded that it offers half -day programming serving 3yr olds in the morning and 4 yr olds in the afternoon. In response to demographic and fee questions, the agency explained it serves primarily Hispanic clients and that it has a sliding scale. Agency then provided more information about lessons learned about transportation due to the loss of a bus. Applicant Organization Presentation Time Denton City County Day School 11:53a Presenters from Denton City County Day School included Carolyn Beach, Executive Director and Jana Marshall, Board Member. Denton City County Day School was provided with five minutes to present information to support its funding request. Agency representatives shared highlights of recent successful new program implantations including a partnership with UNT work study students that offer one on one torturing and new recreation opportunities. This time also helps offset payroll costs and provides teachers much needed lesson planning time. Agency discussed its hearing and vision screening programs. Agency highlighted board strategic initiatives for the current year including diversification of representation, formalizing the board application process, collaboration with Leadership Denton alumni for board recruitment, the addition of fundraising and community awareness committees. Agency shared statistics about the higher rates of graduation, fine motor skill development, earlier detection of learning impairments and improved social skills as a result of a preschool education. HSAC members took five minutes to ask the agency questions. The agency was asked about hours of operation. It shared that the program is a year - round full day program that operates 6:30a to 6:OOp to accommodate working parents. When asked about costs, the agency offered that fees are on a sliding scale based on income and families pay on average $75.00 a week. When asked the agency confirmed it does have a waiting list. Additional information about fees and income level was sought. Agency offered that the typical income of clients in the program was $18,000 - $22,000 a year for a family of four. Agency explained that it serves breakfast, lunch and snack when asked what fees include. Demographic make -up of clients was described by the agency as very diverse. Applicant Organization Presentation Time Fred Moore Day Nursery School 12:05p Presenter from Fred Moore Day Nursery School included Wendy McGee, Executive Director and Elizabeth Barring, Board Member. Fred Moore Day Nursery School was provided with five minutes to present information to support its funding request. Agency representative highlighted the addition of an Advisory Board to be a resource for all things curriculum related so that it improve on the delivery of quality early childhood education. It then shared its growth over the last few years. The agency has grown from serving 47 to a max of 86 with a waitlist of 64. It explained that the recent addition of a toddler room filled immediately and the agency is looking to expand to two more rooms and adding both a new indoor activity center as well as the potential to become a summer food program site. Agency promoted that it is the only childcare that serves infants and toddlers. Agency discussed the importance of professional certification and shared staff professional development goals. It also spoke about the importance of their efforts to build parent involvement which contribute to later success in school. HSAC members took five minutes to ask the agency questions. The agency was asked to provide details about teacher salaries and to clarify ages served. The agency explained that it was to only income based child care for children under two years of age. Agency provided additional details about the goal to ensure children are ready to enter kindergarten by collaborating with DISD to offer coordination with the Kindergarten curriculum. Agency was asked about budget line items and it clarified how the short -term CDBG funded capital improvements are being reported. When asked to provide details of actual fees paid, agency shared that sliding scale fees range on average between $75 and $125 a week which is a savings for most households of about $400 a month. Applicant Organization Presentation Time RSVP 12:22p Presenters from RSVP included Diana Corona, executive Director and Christina Penland, AmeriCorps VISTA Project Director. RSVP was provided with five minutes to present information to support its funding request. Agency representatives declared that they were seeking funding to keep seniors active and involved. Agency took a moment to praise recent agency board efforts to improve its work in fundraising and leadership. Agency provided a spreadsheet that highlights new program shift to bundle service support in major categories that include healthy futures and education. This helps the agency be more results driven and to demonstrate strong performance measures. Agency highlighted that its goal is Volunteerism that is not just about activities but more about solving community problems. HSAC members took five minutes to ask the agency questions. Agency was asked to provide background information about the executive directors years experience and background. Director offered educational background, length of service and goal to impact the community. Break Members took a short break. Meeting resumed at 12:56p 12:30p Committee reconvened at 12:45 to address tabled discussion related to obtaining more detailed salary information in the application. Sara Bagheri moved that the committee add an agenda item to the March 28, 2014 HSAC meeting to discuss amendments to the 15 HS Funding application. Stephen Coffey seconded the motion. The motion carried. Staff was asked to contact current agencies to obtain additional salary data for comparison and provide a report to the committee. Data to report could include CEO actual salary, years of experience, % to budget, number of clients served and cost per unit. Communities in Schools North Texas I 12:50p Presenters from Communities in Schools North Texas included Ann Pape, Chief Development Officer and Elijah Dunlap, Director of Development Communities in Schools North Texas was provided with five minutes to present information to support its funding request. Agency representative provided background of presenters. Agency highlighted long relationship with City of Denton and provided an overview of how funding has helped the agency place social workers on DISD school campuses with the most need by poverty level and indicators of the likelihood that a student will become a dropout. Agency described what is new in the funding is that it now supports a collaborative of cV of Denton United Way, and the agency to implement the 10, 000 Mentor Denton Initiative created to address the need of students to have a positive role model. Funding would help ensure 380 children would have an almost 1:1 match with a mentor. Mentors come directly the community. HSAC members took five minutes to ask the agency questions. Agency was asked to clarify salaries and how many more students would be served with increased funding. Agency explained that their goal is to provide 75% of students with case management and services. As a point of further clarification, agency explained that increase in funding would not serve more clients but would mean each client will receive more services and case management. Agency was directed to the application to explain reported number served. Agency explained how it leverages dollars from multiple partners to provide even more services. When asked about DISD contribution to the program, agency provided that the district contributes on average about $12,000 per program providing a social worker. Applicant Organization I Presentation Time City of Denton Kids Kamp I 1:05p Presenters from City of Denton Kids Kamp included Kathy Schaeffer, Parks Program Manager. City of Denton Kids Kamp was provided with five minutes to present information to support its funding request. Agency representative described the program to be funded including that it serves 52 children ages five to 11 at the Denia Recreation Center and its hours are 9a to 5p. Agency explained that the program at current capacity serves 52 children to transportation capacity. It hopes to grow the program to 56 with the addition of another vehicle. The program activities were described as a program identical to other day camp programs in the department only the clients attend without a fee. Agency listed program enrichments and extra supports for summer learning made available through collaborations with UNT, TWU and the Foster Grandparents Program. HSAC members took five minutes to ask the agency questions. Agency was asked to clarify an application item. Clarification was provided that the program was started in 1994. Agency listed general fund and youth and teen service budget in response to the question how the program makes up the difference in HS Funding and the remaining program costs. When asked about costs, agency also provided details on how it supplements costs now that field trip, food, and transportation costs have risen as much as 20 %. In response to a request for fees, agency indicated that the only cost to participants in a one -time $10.00 fee set primarily to give participants some investment into the program. Agency was asked about the location and where participants live in relation to the program. Agency described completed survey that showed that clients come from all areas of the city. The agency was asked to describe qualification process. When asked what kids would be doing if the program did not exist, agency explained that they would most likely be home alone and unsupervised. Mary Ann McDuff, Chair led a brief discussion about overall impressions from all presentations. McDuff reminded committee of its role as advisors to the City Council. McDuff asked Shaw to give a brief overview of next steps. The next meeting of the committee will be Friday, March 28, 2014. The meeting was adjourned at 1:23p Minutes Respectfully Submitted by Danielle Shaw, Staff Liaison to the HSAC Minutes Approved: March 28, 2014 Members Not Present: Mary Behrens, Stephen Coffey, Bryce Olson Staff Present: Danielle Shaw and Barbara Ross A Quorum was established. Mary Ann McDuff, Chair called the meeting to order at 11:40a Minutes from February 21, 2014 were presented for Approval. James McDade moved that the minutes be approved as presented. Teddy Griffin seconded the motion. The motion carried. McDuff reviewed the Conflict of Interest Policy and Procedure and asked members to disclose any conflicts that would require a member to step out during discussions. None were disclosed. McDuff asked staff to review the HSAC Ranking Evaluation Form results and the Supplemental Salary Survey information requested by the committee in March. Members discussed applications, presentations from agencies seeking Human Services funding and committee rankings. Funding considerations included increasing support of child care and health care services; evaluation of the impact versus dollars committed; the number of City of Denton residents served; if services were provided and received in Denton; and rate of duplication of services. After hearing agency presentations, reviewing data provided in applications and supplemental reports the committee developed final recommendations for funding to be presented to the City Council. Sara Bagheri moved that the recommendations developed by the committee be approved for presentation to the City Council. Teddy Griffin seconded the motion. The motion carried. McDuff thanked the committee and staff for its hard work and commitment to the Human Services funding process. The meeting was adjourned at 1-31p Minutes Respectfully Submitted by Danielle Shaw, Staff Liaison to the HSAC Minutes Approved: Work Session 5 AGENDA INFORMATION SHEET AGENDA DATE: April 15, 2014 DIVISION: Planning and Development ACM: John Cabrales, Jr. n SUBJECT Receive a report, hold a discussion and give staff direction on the creation of a City Council Committee to explore policies and vision for historic preservation, and possible revisions to the Denton Development Code and the Denton Code of Ordinances. BACKGROUND The Historic Landmark Commission (HLC) was created in April 1980, by Ordinance No. 80.030 (Exhibit 1) to, among other things, protect, enhance and perpetuate historic landmarks which represent or reflect distinctive and important elements of the City's and state's architectural, archaeological, cultural, social, economic, ethnic and political history and to develop appropriate settings for such places. The enabling language also includes the composition of the nine member committee and states that the HLC shall include at least one representative from each of the following organizations or professions: County Historical Commission The County Bar Association • Certified Public Accountant • registered Accountant An owner of real property in the City In 1991, this language carried forward with the adoption of the Zoning Ordinance, and has continued with the adoption of the Denton Development Code (DDC) in 2002 (Exhibit 2). Since then, there has not been a significant review of the ordinance for an update. Over the past year, the HLC has dealt with broad issues that overlap with city wide policies, goals, and objectives. The HLC has expressed their desire to expand their role in the review of properties on the downtown square which are a part of the National Registry of Historic Places (Exhibit 3) and not a local designation. This was communicated in an Informal Staff Report to the City Council in July 2013 (Exhibit 4). Subsequently, the HLC has been developing for implementation an historic overlay district for the downtown to identify historic properties and historic elements of the downtown that should be preserved. More recently, the HLC reviewed a request for the installation of solar panels on historic structures that was subsequently denied. The basis for the denial was HLC concerns about the location of the solar panel on the section of the roof visible from public view. Agenda Information Sheet April 15, 2014 Page 2 of 2 In addition, the Commissioners were concerned that there are inadequate design guidelines for installation of solar panels in historic designated areas of the City and approval of the request could set precedent with no established guidelines. Staff has been meeting with the neighborhood to develop policies for solar panels that will develop into a DDC amendment. This issue highlights the need for an update to the HLC Ordinance as the City Strategic Plan notes the preservation and maintenance of historic structures and culture in Denton as a goal, as does the City Sustainability Plan that notes to improve the energy efficiency of existing homes and buildings as a goal. The City of Denton is a Certified Local Government (CLG) which means it has met the criteria for eligibility by the National Historic Preservation Act of 1966, the National Park Service, and Chapter 15.6 of the Texas Administrative Code. A benefit of the CLG is access to historic preservation fund grants to develop programs and services for local historic preservation. The City has executed a Certification Agreement with the Texas Historical Commission (Exhibit 5) that carries its own requirements that must be met to maintain the certification. A review of the HLC Ordinance would allow for a concurrent review of the Texas Administrative Code requirements for a CLG (Exhibit 6) to ensure consistency. EXHIBITS 1. Ordinance Adopting the Historic Landmark Commission 2. Denton Development Code Historic Landmark Commission Authority 3. National Registry of Historic Places — Denton County Courthouse Square 4. Informal Staff Report Downtown Historic District 5. Texas Historical Commission Certification Agreement 6. Texas Administrative Code Chapter 15 Rules and Procedures for CLG Prepared by and respectfully submitted: Brian Lockley, AICP, CPM Planning and Development Director Exhibit 1 Ordinance adopting the Historic Landmark Commission NO �ft - 30 AN ORDINANCE AMENDING APPENDIX B OF THE CODE OF ORDINANCES, THE COMPREHENSIVE ZONING ORDINANCE, OF THE CITY OF DENTON, TEXAS, BY ADDING TO APPENDIX B A NEW ARTICLE 28A ENTITLED "ARTICLE 28A HISTORIC LANDMARK PRESERVATION ", DEFINING THE TERM HISTORIC LANDMARK, CREATING A HISTORIC LANDMARK COMMISSION AND PROVIDING FOR ITS POWERS AND RESPONSIBILITY, PROVIDING FOR THE DESIGNA- TION OF HISTORIC LANDMARKS BY THE CITY AND ESTABLISHING CRITERIA FOR USE IN DETERMINING HISTORIC LANDMARK DESIGNATIONS, REGULATING THE REPAIR, REMOVAL AND DEMOLITION OR REMOVAL OF HISTORICAL LANDMARKS, DEFINING THE POWERS AND AUTHORITY OF THE PLANNING AND ZONING COMMISSION OVER HISTORIC LANDMARKS AND OF THE CITY COUNCIL, PROVIDING THAT HISTORIC LANDMARK DESIGNATIONS SHALL NOT AFFECT PRESENT ZONING USES, PROVIDING A PENALTY WHEREAS, the City of Denton, Texas has a history and a heritage unique and different from any other City in Texas which is worthy of civic pride and preservation, and WHFREAS, the City Council recognizes its responsibility to preserve and protect places and areas in the City of historical and cultural importance and significance for the general welfare of the community, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS c112PrVTrNXT T Appendix B of the Code of Ordinances of the City of Denton, Texas, the Comprehensive Zoning Ordinance of the City of Denton, is hereby amended by adding to Appendix B a new Article 28A to hereafter read as follows ARTICLE 28A HISTORIC LANDMARK PRESERVATION Section 28A -1 "HISTORIC LANDMARK" DEFINED As used in this article, the term "historic landmark" shall mean any building, structure, site, district, area, or land of architectural, historical, archaeological or cultural importance or value, which the city council determines shall be protected, enhanced, and preserved in the interest of the culture, prosperity, education and general welfare of the people Section 28A -2 DECLARATION OF POLICY The city council hereby finds and declares as a matter of public policy that the protection, enhancement, preservation and use of historic landmarks is a public necessity and is required in the interest of the culture, prosperity, education and general welfare of the people The purposes of this chapter are (a) To protect, enhance and perpetuate historic landmarks which represent or reflect distinctive and important elements of the city's and state's architectural, archaeological, cultural, social, economic, ethnic and political history and to develop appropriate settings for such places (b) To safeguard the city's historic and cultural heritage, as embodied and reflected in such historic landmarks by appropriate regulations (c) To stabilize and improve property values in such locations (d) To foster civic pride in the beauty and accomplish- ments of the past (e) To protect and enhance the city's attractions to tourists and visitors and provide incidental support and stimulus to business and industry (f) To strengthen the economy of the city (g) To promote the use of historic landmarks for the culture, prosperity, education, and general welfare of the people of the city and visitors of the city Section 28A -3 HISTORIC LANDMARKS - DESIGNATION The city council may designate buildings, structures, sites, districts, areas and lands in the city as historic landmarks and define, amend and delineate the boundaries thereof The suffix "H" shall indicate the zoning designation of those buildings, structures, sites, districts, areas and lands which the city council designate as historic landmarks Such designation shall be in addition to any other use designation established in the comprehensive zoning ordinance The zoning map shall relfect the designation of a historic landmark by the letter "H" as a suffix to any other use PAG E 2 designation established under the comprehensive zoning ordinance Section 28A -4 SAME - CRITERIA TO BE USED IN DESIGNATIONS In making such designations as set forth in Section 28A -3, the City council shall consider, but shall no be limited to, one or more of the following criteria (a) Character, interest or value as part of the develop- ment, heritage or cultural characteristics of the City of Denton, State of Texas, or the United States (b) Recognition as a recorded Texas historic landmark, a national historic landmark, or entered into the National Register of Historic Places (c) Embodiment of distinguishing characteristics of an architectural type or specimen (d) Identification as the work of an architect or master builder whose individual work has influenced the development of the city (e) Embodiment of elements of architectural design, detail, materials or craftsmanship which represent a significant architectural innovation (f) Relationship to other distinctive buildings, sites or areas which are eligible for preservation according to a plan based on architectural, historic or cultural motif (g) Portrayal of the environment of a group of people in an area of history characterized by a distinctive architectural style (h) Archaeological value in that it has produced or can be expected to produce data affecting theories of historic or prehistoric interest (i) Exemplification of the cultural., economic, social, ethnic or historical heritage of the city, State or United States PAG E 3 (1) Location as the site of a significant historic event (k) Identification with a person or persons who significantly contributed to the culture and development of the city, State or United States (1) A building or structure that because of its location has become of value to a neighborhood, community area, or the city (m) Value as an aspect of community sentiment or public pride Section 28A -5 HISTORIC LANDMARK COMMISSION- CREATED (a) There is hereby created a commission to he known as the Historic Landmark Commission of the City of Denton, here- inafter called the "landmark commission," composed of nine members appointed by the city council The landmark commission shall include at least one representative from each of the following organizations or professions (1) Denton County Historical Commission (2) The Denton County Bar Association (3) An Architect (4) A Certified Public Accountant (5) An owner of real property in the City (b) The other members of the landmark commission shall be appointed from such other individuals and organizations as the city council may in its discretion wish to consult or consider, provided that no one business or professional interest shall constitute a majority membership of the commission (c) Members of the landmark commission shall be appointed for two year terms, except that the original representatives from the five fields of expertise shall serve for a term of two years, and all other original members of the landmark commission shall be appointed for a one year term Thereafter all members of the landmark commission shall be appointed for two year terms Vacancies in an unexpired term shall be filled by the city council for the remainder of the term PAG E 4 (d) In addition to the nine members appointed by the city council, the following persons or their designates shall sit on the landmark commission as ex officio members 1 The Director of Planning of the City of Denton 2 The Building Official of the City of Denton 3 The Chairman of the Denton County Historical Commission (e) None of the ex officio members shall have voting power, but shall assist the landmark commission in its various functions (f) The landmark commission shall meet as often as necessary to dispose of the business of the commission or upon call by the commission chairman or upon petition of a simple majority of commission members Five members present shall constitute a quorum for the transaction of business and all issues shall be decided by a majority of those members present and voting, except that in those instances where only a quorum of five is present at a meeting, all issues shall be decided by at least four affirmative votes The commission shall adopt appropriate rules and regulations for the conduct of its business and the election of its chairman and other officers The minutes of each meeting shall be Filed in the office of the city secretary (g) The city attorney shall be the legal advisor for the Historic Landmark Commission (h) The fact that one or more representatives from the five fields of expertise may not at any given point be a member of the landmark commission, for whatever reason or reasons, shall not affect the validity of any decision or act of the commission Section 28A -6 SAME - FUNCTION (a) The landmark commission shall thoroughly familiarize itself with buildings, structures, sites, districts, areas and lands within the city which may be eligible for designation as PAG E 5 historic landmarks and shall prepare an historic landmark preservation plan, hereinafter referred to as the "preservation plan," which shall (1) Establish criteria to be used in determining whether certain buildings, structures, sites, districts, areas, lands and other objects should be designated as historic landmarks (2) Establish guidelines to be used in determination of whether to grant or deny certificates of appropriateness and certificates of demolition or removal (3) Formulate a program for private and public action which will state the role of various city agencies in preservation of historic landmarks (4) Suggest sources of funds for preservation and restoration activities and acquisitions, to include federal sources, state sources, private and foundation sources, as well as municipal sources (5) Recommend to the proper agencies incentives designed to encourage historical preservation (b) The preservation plan shall be presented to the city planning commission for consideration and recommendation to the city council for inclusion in the comprehensive plan of the city (c) The landmark commission shall recommend to the city planning commission ordinances designating certain buildings, structures, sites, districts, areas and lands in the city as historic landmarks The landmark commission shall hold a public hearing on all proposed ordinances and the owner of any land included in the proposed ordinance shall be given at least ten days written notice of the public hearing PAGE 6 (d) If the landmark commission finds that buildings, structures, sites, districts, lands or areas cannot be preserved without acquisition, the landmark commission may recommend to the city council that the fee or a lesser interest of the property in question be acquired by gift, devise, purchase, eminent domain or otherwise, pursuant to the city charter and state and federal law (e) Where there are conditions under which the required preservation of a historic landmark would cause undue hardship on the owner or owners, use district changes may be recommended by the landmark commission (f) The designation of a historic landmark may be amended or removed using the same procedure provided in this article for the original designation (g) The landmark commission shall provide information and counseling to owners of designated historic landmarks Section 28A -7 ACTION BY THE CITY PLANNING COMMISSION (a) The city planning commission shall hold public hearings as provided for in Article 1011f, Vernon's Annotated Texas Statutes, to consider any historical landmark designation ordinance after receiving a recommendation for the landmark commission The notices provided for in Article 1011f shall be sent to all owners of property which is proposed for "H" designation as well as to the adjoining property owners specified in said article (b) Within thirty days after the hearing, the city planning commission shall set forth in writing its recommen- dation, including the findings of fact that constitute the basis for its decision, and shall transmit its recommendation concerning the proposed ordinance to the city council along with the recommendation of the landmark commission Section 28A -8 RECORDING OF DESIGNATION Upon passage of a historic landmark designation ordinance, by the City Council, the city secretary shall file a copy of PAGE 7 the ordinance with City and Denton County Tax Assessors together with a notice briefly stating the fact of the designation and shall send a copy of such notice to the owner or owners of the affected property by certified mail Section 28A -9 EXTERIOR ALTERATIONS AND CHANGES - CERTIFICATE OF APPROPRIATENESS, ORDINARY REPAIR OR MAINTENANCE, APPEAL No person or entity shall construct, reconstruct, alter, change, restore, remove or demolish any exterior architectural feature of a designated historic landmark unless application be made to the landmark commission for a certificate of appropriateness and such a certificate be granted As used in this article, the term "exterior architectural feature" shall include but not be limited to architectural style and general arrangement of such portion of the exterior of a structure as is designed to be open to view from a public way (a) Procedure when building permit is required (1) When applying for a building permit for the exterior of a designated historic landmark, the applicant shall submit two copies of all detailed plans, elevations, perspec- tives, specifications and other documents pertaining to the work to the building official, who shall forward such application to the commission chairman Any applicant may appear at a regular or special meeting of the landmark commission before submitting an application and may consult with said commission during the review of the permit application (2) The landmark commission, upon ten days written notice to the applicant, shall hold a hearing on the appli- cation Upon review of the application, if the landmark commission finds the proposed work of a nature which will not adversely affect any significant architectural or historical feature of the designated historic landmark, and is appropriate PAG E 8 and consistent with the spirit and purposes of this article, it shall forward a certificate of appropriateness to the building official after the public hearing and the budding official shall so advise the applicant after the certificate is received (3) If the landmark commission finds that the pro- posed work will adversely affect or destroy any significant architectural or historical feature of the designated historic landmark or is inappropriate or inconsistent with the spirit and purposes of this article, it shall notify the building official that the application has been disapproved and shall notify the applicant of the disapproval and of the changes in the application which are necessary to secure the approval of the application (4) if no action has been taken by the landmark commission within sixty days of original receipt by the landmark commission, a certificate of appropriateness shall be deemed issued by the landmark commission, and the building official shall so advise the applicant (5) No change shall be made in the application for any building permit after issuance of a certificate of appropriate- ness without resubmxttal to the landmark commission and approval thereof in the same manner as provided above (5) After a decision is reached by the landmark commission denying an application for a certificate of appro- priateness, a resubmittal of application will not be accepted for additional hearing within a twelve -month period from the date of final decision except upon written request by the applicant indicating that there has been a change in conditions or that all changes in the application as recommended by the landmark commission have been made (b) Procedure when building permit is not required (1) Those proposed exterior changes and alterations not requiring a building permit shall be submitted in writing PAG E 9 directly to the historic landmark commission for a certficate of appropriateness which must be granted before such work can be undertaken Applicant shall submit a copy of all proposed alterations and changes to the commission The application must specifically describe the alteration or change proposed Any applicant may appear at a regular or special meeting of the landmark commission before submitting an application and may consult with said commission during the review of the application (2) The landmark commission, upon ten days written notice to the applicant, shall hold a hearing on the application Upon review of the application, if the landmark commission finds the proposed work of a nature which will not adversely affect any significant architectural or historical feature of a designated historic landmark and is appropriate and consistent with the spirit and purposes of this article, it shall forward a certificate of appropriateness to the applicant within thirty days of the receipt of said application (3) If the landmark commission finds that the pro- posed work will adversely affect or destroy any significant architectural or historical feature of the designated historic landmark or is inappropriate or inconsistent with the spirit and purposes of this article, it shall notify the applicant within thirty days of receipt of said application that the application has been disapproved and shall include in such notification the changes necessary to secure approval of the application (4) If no action has been taken by the landmark commission within sixty days of the receipt of the application, a certificate of appropriateness shall be deemed issued by the landmark commission PAGE 10 (5) No change shall be made in the application for issuance of a certificate of appropriateness without resubmittal to the landmark commission and approval thereof in the same manner as provided above (6) After a decision is reached by the landmark commission denying an application for certificate of appropriateness, a resubmittal of application will not be accepted for additional hearing within a twelve month period from the date of final decision except upon written request by the applicant indicating that there has been a change in conditions or that all changes in the application as recommended by the landmark commission have been made (c) Ordinary repair or maintenance Ordinary repair or maintenance which does not involve changes in architectural and historic value, style or general design is exempt from the provisions of this section (d) Appeal Any applicant or interested person aggrieved by a ruling of the landmark commission under the provisions of this section may, within thirty days after the date of such ruling, appeal to the city council Section 28A -10 HISTORIC LANDMARKS - DEMOLITION OR REMOVAL (a) If an application is received for demolition or removal of a designated historic landmark, the building official shall immediately forward the application to the landmark commission The landmark commission shall hold a public hearing on the application within thirty days after the application is initially filed with the building official The applicant shall be given ten days written notice of the hearing The landmark commission shall consider the state of repair of the building, the reasonableness of the cost of restoration or repair, the existing and /or potential usefulness, including economic usefulness of the building, the purposes behind preserving the structure as a historic PAGE 11 landmark, the character of the neighborhood, and all other factors it finds appropriate If the landmark commission determines that in the interest of preserving historical values, the structure should not be demolished or removed, it shall notify the building official that the application has been disapproved, and the building official shall so advise the applicant within five days therefrom If the landmark commis- sion determines that the interest of preserving historical values will not be adversely affected by such demolishment or removal or that the interest of preserving historical values can best be served by the removal of a structure to another specified location, it shall issue its certificate of demolition or its certificate of removal, as may be appro- priate, to the building official, and the building official shall so advise the applicant within five days therefrom (b) If no action has been taken by the landmark commission within sixty days of original receipt by the landmark commis- sion of the application, a certificate of demolition or a certificate of removal shall be deemed issued by the landmark commission and the building official shall so advise the applicant (c) After a decision is reached by the landmark commission denying an application for a certificate of demolition or a certificate of removal, a resubmittal of application for such a certificate will not be accepted for additional hearing within a twelve -month period from the date of final decision (d) Any applicant or the owner of any property located within three hundred feet of any landmark who is aggrieved by a ruling of the landmark commission concerning same landmark under the provision of this section may, within sixty days after the ruling of the landmark commission, appeal to the city council Following a public hearing to be held within thirty days of the filing of a notice of such appeal with the city secretary, the city council may, by a simple majority vote, PAGE 12 uphold or overturn any ruling of the landmark commission made pursuant to this section Section 28A -11 PROCEDURE FOR OBTAINING BUILDING PERMIT, REMOVAL PERMIT, DEMOLITION PERMIT AND FOR ALTERING THE EXTERIOR OF A BUILDING OR STRUCTURE DURING PENDENCY OF CONSIDERATION OF SUCH BUILDING OR STRUCTURE AS A HISTORIC LANDMARK OR AS PART OF A HISTORIC LANDMARK (a) From and after the date on which the question of whether or not any building, structure, or site within the City should be designated as a historic landmark as placed upon the agenda for any special or regular meeting of the landmark commission, or from and after the date on which such agenda is posted in accordance with the provision of Article 6252 -17, V A T C S , as amended, or from and after the date that the landmark commission approves or recommends a preservation plan or any amendment of any existing preservation plan which embraces or includes the building, structure, or site within the city, whichever date first occurs, no building permit allowing the construction, reconstruction, alteration, change, restoration, removal or demolition of any exterior architectural feature of any building or structure than existing including or embraced in whole or in part within the scope of such agenda consideration or such preservation plan or such amendment thereof, as the case may be and no permit allowing the demolition or removal of all or any part of any such building or structure may be issued by any official of the city, nor if no such permit is required, may any person or entity construct, reconstruct, alter, change, restore, remove or demolish any exterior architectural feature of any such building or structure, until the earliest of the following conditions have been met (1) A final and binding certificate of appropriate- ness, removal or demolition, as may be appropriate, has been issued by the landmark commission, (2) The landmark commission fails to make a recommen- dation that some part or all of any such building or structure PAGE 13 be designated a historic landmark or be included within a historic landmark or within a preservation plan or an amendment thereof within sixty days following the earliest of the above described dates activating this section application under the circumstances, or, (3) A final and binding decision has been made by the city council that no part of any such building or structure shall be designated a historic landmark or shall be included within any designated historic landmark Provided, however, that should the city council fail to act within ninety days from the date an appeal is filed, the requested permit shall be granted The ninety day time limitation may be waived by the appellant to allow the city council an additional thirty days in which to act (b) It shall be the duty of the landmark commission to furnish the building official with a copy or written notice of each such written order or such agenda or such preservation plan or amendment thereof, as the case may be, as promptly after the preparation thereof as is practicable The failure to so furnish the building official with a copy or written notice thereof, however, shall not have the effect of validating any building permit, removal permit or demolition permit issued in ignorance of any such written order or agenda In any instance in which any such permit may not be required, it shall be the duty of the landmark commission to give notice of any such written order or such agenda or such preservation plan or amendment thereof to the owner or owners of any building or structure included within the scope thereof, which notice shall be deemed complete when actually given, orally or in writing, to such owner or owners, or when written notice thereof is deposited in the United States mail, postage prepaid, certified or registered, with return receipt requested, addressed to such owner or owners, whichever event first occurs PAGE 14 (c) Any permit issued to any person or entity from or after the date of any such written order, or such agenda, or the approval or recommendation of such preservation plan or amendment thereof, as the case may be, shall be null, void and of no force or effect until the earliest of the events described in subparagraphs (1), (2) and (3) of subsection (a) next above to occur (d) Notwithstanding any other provision of this chapter, no building permit, removal permit or demolition permit shall be issued by the building inspector for any structure located in a National Register District except as authorized by the subsection The building inspector 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 inspector 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 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 this amendment, 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 provisions of this ordnance PAGE 15 Section 28A -12 SAME - OMISSION OF NECESSARY REPAIRS (a) The exterior of a designated historic landmark shall be maintained to insure the structural soundness of such landmark (b) If the landmark commission finds that there are reasonable grounds to believe that a designated historic landmark is structurally unsound or in imminent danger of becoming structurally unsound, the landmark commission shall notify in writing the owner of record of the designated historic landmark of such fact (c) Upon the giving of ten days written notice to the owner of record of such designated historic landmark, the landmark commission shall hold a public hearing to determine if the designated historical building is structurally unsound or in imminent danger of becoming structurally unsound The landmark commission's report may include evidence of economic hardship or willful neglect (d) At the conclusion of the hearing, if the landmark commission finds that the designated historic building is structurally unsound or in danger of becoming structurally unsound and that no valid reason exists as to why the owner cannot or should not undertake to safeguard the structural soundness of the building, it shall in writing notify the record owner of the finding (e) The owner of record of a designated historic landmark who has been notified by the landmark commission that such landmark is structurally unsound or in danger of so becoming shall within ninety days of receipt of such notice, satisfy the historic landmark commission that reasonably necessary repairs to safeguard the structural soundness of the landmark have been effected (f) If the landmark commission determines that the building is structurally unsound but there are valid reasons why the owner cannot or should not undertake to safeguard the structural soundness of the building, it shall forward to the PAGE 16 city council its recommendation as to what action, if any, should be taken on the structure (g) Any applicant or interested person aggrieved by a ruling of the landmark commission under the provisions of this section may, within thirty days after the date of such ruling, appeal to the city council Section 28A -13 HISTORIC LANDMARK DESIGNATION TO COEXIST WITH OTHER USE CLASSIFICATIONS Use classifications as to all property which may be included in a historic landmark designation shall continue to be governed by the comprehensive zoning ordinance of the city and the procedures therein established Section 28A -14 HISTORIC DISTRICTS DEFINED, RESTRICTIONS IMPOSED THEREIN, CRITERIA FOR DISTRICT BOUNDARIES ESTABLISHED, REQUISITES FOR APPLICATIONS FOR DISTRICTS SET FORTH, CRITERIA FOR EVALUATING SAME PROVIDED, DISTRICT PRESERVATION PLANS DEFINED, MIS- CELLANEOUS ADMINISTRATIVE REQUIREMENTS OF LANDMARK COMMISSION SET FORTH, PROCEDURE FOR MODIFICATION OF ORDINANCE PROVISIONS ESTABLISHED (a) DEFINITION Districts which may be designated Historic Landmarks pursuant to Section 28A -1 shall herein be referred to as "HISTORIC DISTRICTS" and shall mean geographically definable areas, possessing significant concentration, linkage, or continuity of buildings, structures, sites, areas or land which are united by architectural, his- torical, archaelogical, or cultural importance or significance (b) RESTRICTIONS All buildings, structures, sites, areas or lands located with a designated historic district, whether individually designated historic or not, are subject to these regulations No person or entity shall construct, reconstruct, alter, change, restore, remove or demolish in any way the exterior features of such building, structure, or site, area or land until a permit has been granted by the building official of the City of Denton Furthermore, no public improvements, including, but not limited to, street construction, signs, lighting, sidewalk construction, parking facilities and traffic PAGE 17 system changes, except traffic control signs and devices, shall be made within or affecting a historic district without approval of the city council after recommendation has been submitted by the landmark commission and appropriate city departments (c) DISTRICT BOUNDARIES The boundaries of historic districts shall be drawn so as to include all buildings, structures, sites, areas or lands which meet one or more of the criteria set out in Section 2BA -3 herein or which directly affect or relate to such buildings, structures, sites, areas or lands meeting on one more of the Section 28A -3 criteria, provided that at least 51% of the total structures within the boundaries are of architectural, historic, archaeological, or cultural importance or value (d) ESTABLISHMENT OF HISTORIC DISTRICTS (1) Applications for consideration of a historic district shall be based upon architectural, historical, archaeological or cultural importance or value and accompanied by a report to the landmark commission containing the following information (a) A list of specific buildings, structures, sites, areas or lands of importance or value located within the proposed district boundaries and a description of the particular importance or value of each such building, structure, site, area or land (b) A map showing the boundaries of the proposed historical district drawn to a scale of 111=2001, and the location of each structure of importance or value identified by a number or letter designation (c) Sufficient photographs of each building, structure, site, area or land of importance or value showing the condition, color, size and architectural detail of each, and, PAGE 18 (d) A description of each building, structure, site, area or land of importance or value showing the condition, color, size and architectural detail of each, and where possible 1 date of construction 2 builder or architect 3 chain of uses and ownership 4 architectural style 5 materials 6 construction technique 7 recognition by State or National Government as architecturally or historically significant, if so designated (2) Application for establishment of an historic district on the basis of cultural or archaeological importance or value shall be accompanied by a report containing the following information (a) A map showing the boundaries of the proposed district drawn to a scale of 1" =200', (b) A description of the cultural or archaeological importance or value of the building, structure, site, area or land being proposed for historic designation, and (c) Any evidence which would show recognition by either the State of Texas and /or the National Government (3) Applications to increase the boundaries of an historic district may be made if one or more of the following conditions are met (a) When buildings, structures, sites, areas or lands of importance or value are related to the district are requested for inclusion (b) When facts previously undisclosed to or unknown by the landmark commission are revealed which indicate that a particular building or site is possessed of special architectural, archaeological, cultural or historical importance or value PAGE 19 (4) Applications to reduce the boundaries of an historic district may be made when one or more of the following conditions have been met (a) When It can be shown that a particular building, structure, site, area or Land has no historic, architectural, archaeological or cultural, importance or value to the viability of the district (b) When exclusion of buildings, structures, sites, areas or lands is necessary for mayor new development that would support either the architectural, historical, archaeological, or cultural character or economic viability of the district (c) When it can be shown that no degradation of the district either physical, historical, architectural, archae- ological, or cultural will result from exclusion of property from the district (5) Application for inclusion or exclusion may be made when either continued exclusion or inclusion of property within the district would render it an economical hardship for reasonable continuation in its present exterior form In order to establish such economic hardship, the owner must show that no reasonable alternative use exists which allows the exterior of the building to remain in its original style In evaluating economic return, the Commission may request the owner to document the value, rents, returns, tax burden, and /or contracts, pertaining to the property (e) CRITERIA FOR DESIGNATION OF HISTORIC DISTRICTS In evaluating applications for historic districts, the landmark commission shall consider Sections 2BA-3 and Section 28A -13(d) If the landmark commission recommends the establishment of an historic district or districts, it shall cause to be prepared an historic district designation ordinance which shall contain, but not be limited to, the following (1) A statement of purpose setting forth the commission's reasons for recommending designation of the district, and PAGE 20 (2) A legal description of the boundaries of the district, (3) Maps, charts and photographs of the buildings, structures, sites, areas, or lands located within the district, (4) Findings that support the criteria required in Section 2BA -3 and 28A -13, if applicable, that establishes the particular importance or value of the district (5) Recommendations for the protection and preser- vation of the district referred to herein as district preservation plan (f) DISTRICT PRESERVATION PLAN The district preservation plan shall include, but shall not be limited to the following (1) Zoning Classification of Uses The commission may examine the uses existing within the district in terms of their individual and continued effect upon the character, safety, economic and physical impact of the district and may recommend such changes in zoning, height and area regulations (2) Building Code Requirements The commission may review and recommend any amendments to the building regulations it feels necessary to preserve the architectural and historic integrity and authenticity of structures within each such district (3) Sign Regulations The Commission may review the provisions of the sign regulations that are permissible within each such district and recommend such alterations in size, location, type and construction they feel appropriate In preparing such recommendations, the Commission shall consider existing signs as well as criteria for future signs In the event that an existing sign or signs are deemed to have a negative impact on the character of the district, the Commission may recommend a method of removal or improvement of such sign or signs, reviewing such sign changes with owners or tenants prior to such recommendation PAGE 21 I (4) Parking Regulations The commission may review the parking regulations in existence in the district and recommend any changes in numbers, or location of on- street and off - street parking requirements it feels necessary to enhance the district It shall review the adequacy of parking facilities in or affecting the district and may offer recom- mendations for such public and /or private parking lots, garages or structures it deems to be in the best overall interest of the I district (5) Architectural Regulations As a guide for those seeking a certificate of appropriateness pursuant to Section 28A -8, the historic landmark commission may, in conformance with i the applicable zoning classification, height and area limitation, and in keeping with the significant architectural, historical, archaeological or cultural elements of each such district recommend regulations affecting the exterior of the building, including, but not limited to, the following (a) Acceptable materials for new construction such as stucco, masonry, metal and glass curtain, (b) Appropriate architectural character, scale and i detail for new construction, I (c) Acceptable appurtenances to new and existing structures such as gables, parapets, balconies and dormers, i (d) Acceptable textures and ornamentation such as paint colors and types, use of wood, stone, metal, plaster, plastics and other man -made materials, use of shutters, wrought and cast iron, finishes of metal, colors of glass, such as silver, gold, bronze, smoke, and other details or architectural ornamentation i (e) Acceptable accessories on new or existing structures such as light fixtures, gas lights, canopies, exterior carpentry, tile or wood, banners, flags and projections, and PAGE 22 M For those properties which are sites, areas, lands, buildings, structures, or vacant lots which are not of historical, architectural, archaeological or cultural importance or value, development or redevelopment may be at the owner's discretion as long as there is no variance from the historic district preservation plan to materials, scale and detail, appurtenances, textures, ornamentation and accessories, and the owner complies with existing regulations In these instances, no review by the landmark commission would be required, and no certificate of appropriateness would apply (b) Transit and Traffic Operations The commission may review the transit and traffic operations in and through the district and provide recommendations to the urban transportation department and city council on routes, schedules, one -way and two -way street patterns, park and rise, shuttle services and pedestrian facilities that will enhance and preserve the character of the district (7) Public Improvements The landmark commission may recommend to the city council acceptable public architectural and engineering designs including street lighting, street furniture, signs, landscaping, utility facilites such as electric poles and wires, telephone lines, design textures of sidewalks and streets, such as brick, stone and tile, and such other elements as deemed necessary for enhancement and preservation of the district (g) Administrative Requirements of Landmark Commission (1) When a historic landmark commission considers an area as a possible historic district, it shall, prior to rendering its final recommendation and report, submit its report, including the district preservation plan or any proposed ordinance amendments to all city departments, boards and commissions and other public agencies directly affected (2) In addition, it shall, and prior to rendering its final recommendation, make the plan available to the landowners in the proposed district In the event the area under PAGE 23 consideration has established an historic district committee, the commission may include the comments of such committee in its final report If appropriate and desired, the commission should recommend that the city council adopt the restrictions to assure that future public investment complies with the term of the district (3) Commission approved medallions for designated structures within the district shall be prepared and, subject to the approval of the owners, may be affixed to the "H" designated structures (h) Changes in Provisions herein Such regulations, restrictions, and boundaries may from time to time be amended, supplemented, changed, modified, or repealed In case, however, of a written protest against such change, signed by the owners of twenty percent or more either of the area of the lots or land included in such proposed change, or of the lots or land immediately adjoining the same and extending 200 feet therefrom, such amendment shall not become effective except by the favorable vote of three - fourths of all members of the city council Section 28A -15 PENALTY (a) It shall be unlawful to construct, reconstruct, structurally alter, remodel, renovate, restore, demolish, raze, or maintain any building, structure, or land in a historic landmark designation in violation of the provisions of this ordinance, and the city in addition to other remedies, may institute any appropriate action or proceedings to prevent such unlawful construction, restoration, demolition, razing, or maintenance, to restrain, correct, or abate such violation, to prevent any illegal act, business, or maintenance in and about such premises (b) Any person, firm, or corporation violating any provisions of this chapter shall be guilty of a misdemeanor, and shall be deemed guilty of a separate offense for each day or PAGE 24 portion thereof during which any violation hereof is committed, continues or is permitted, and upon conviction of any such violation shall be punishable by a fine not to exceed two hundred dollars Section 2SA -16 NOTICE Any notice required to be given under this title, if not actually delivered, shall be given by depositing the same in the United States mail, postage prepaid, addressed to the person or entity to whom such notice is to be given at his last known address When notice is required to be given to an owner or owners of property, such notice, delivered or mailed by certified or registered mail, may be addressed to such owner or owners who have rendered their said property for city taxes as the ownership appears on the last approved city tax roll SECTION II This ordinance shall become effective from and after its date of passage and publication as required by law PASSED AND APPROVED this the day of�%�� , 19� BILLP'NASPI—, CITY OF 1 ATTEST Z)a� WOVr HOLT, C IT SECRETARY CITY OF DENTON, TEXAS APPROVED AS TO LEGAL FORM C J TAYLOR, JR , CITY ATTORNEY, CITY OF DENTON, TEXAS BY �j vo. �d PAGE 25 Exhibit 2 Denton Development Code Historic Landmark Commission Authority 35.4.3 Historic Landmark Commission. A. There is hereby created a commission to be known as the Historic Landmark Commission of the City, hereinafter called the "Landmark Commission," composed of nine (9) members appointed by the City Council. The Landmark Commission shall include at least one (1) representative from each of the following organizations or professions: 1. County Historical Commission; 2. The county bar association; 3. A certified public accountant; 4. A registered architect; 5. An owner of real property in the City. B. The other members of the Landmark Commission shall be appointed from such other individuals and organizations as the City Council may in its discretion wish to consult or consider; provide that no one (1) business or professional interest shall constitute a majority membership of the Landmark Commission. C. In addition to the nine (9) members appointed by the City Council, the following persons or their designees shall sit on the Landmark Commission as ex officio members: 1. The Director of Planning and Development; 2. The Building Official; 3. The Chairman of the County Historical Commission. D. None of the ex officio members shall have voting power, but shall assist the Landmark Commission in its various functions. E. The fact that one (1) or more representatives from five (5) fields of expertise may not at any given point be a member of the Landmark Commission, for whatever reason, shall not affect the validity of any decision or act of the Landmark Commission. F. Members of the Historic Landmark Commission shall be appointed for two -year staggered terms. Vacancies in an unexpired term shall be filled by the City Council for the remainder of the term. 35.4.3.1 Operational Procedures. The Historic Landmark Commission shall meet as often as necessary to dispose of the business of the Landmark Commission or upon call by the Landmark Commission chairman or upon petition of a simple majority of Landmark Commission members. Five (5) members present shall constitute a quorum for the transaction of business, and all issues shall be decided by a majority of those members present and voting, except that in those instances where only a quorum of five (5) is present at a meeting, all issues shall be decided by at least four (4) affirmative votes. The Landmark Commission shall adopt appropriate rules and regulations for the conduct of its business and the election of its chairman and other officers. The minutes of each meeting shall be filed in the office of the City Secretary. 35.4.3.2 Powers and Duties of the Historic Landmark Commission. A. The Historic Landmark Commission shall thoroughly familiarize itself with buildings, structures, sites, districts, areas and lands within the City which may be eligible for designation as historic landmarks and shall prepare an historic landmark preservation plan, hereinafter referred to as the "preservation plan," which shall: 1. Establish criteria to be used in determining whether certain buildings, structures, sites, districts, areas, lands and other objects should be designated as historic landmarks; 2. Establish guidelines to be used in determination of whether to grant or deny certificates of appropriateness and certificates of demolition or removal; 3. Formulate a program for private and public action which will state the role of various City agencies in preservation of historic landmarks; 4. Suggest sources of funds for preservation and restoration activities and acquisitions, to include federal sources, state sources, private and foundation sources, as well as municipal sources; 5. Recommend to the proper agencies incentives designed to encourage historic preservation. B. The preservation plan shall be presented to the Planning and Zoning Commission for consideration and recommendation to the City Council for inclusion in the comprehensive plan of the City. C. The Landmark Commission shall recommend to the Planning and Zoning Commission ordinances designating certain buildings, structures, sites, districts, areas and lands in the City as historic landmarks. The Landmark Commission shall hold a public hearing on all proposed ordinances and the owner of any land included in the proposed ordinance shall be given at least ten (10) days' written notice of the public hearing. D. If the Landmark Commission finds that buildings, structures, sites, districts, lands or areas cannot be preserved without acquisition, the Landmark Commission may recommend to the City Council that the fee or a lesser interest of the property in question be acquired by gift, device, purchase, eminent domain or otherwise, pursuant to the Charter and state and federal law. E. Where there are conditions under which the required preservation of an historic landmark would cause undue hardship on the owner, use district changes may be recommended by the Landmark Commission. F. The designation of an historic landmark may be amended or removed using the same procedure provided in this article for the original designation. G. The Landmark Commission shall provide information and counseling to owners of designated historic landmarks. H. Any person making application to have any building, structure, site, district, area or land designated as an historic landmark pursuant to the provisions of this article shall pay to the Planning and Development Department a filing fee in an amount determined and as from time to time amended by ordinance by the City Council, a copy of which ordinance is on file with the department. Exhibit 3 National Registry of Historic Place (8-86) Form 10-900-a Denton County Courthouse Square United States Department of the Interior National Park Service National Register • Places Continuation Sheet Section 7 Page 6 OMB approval No. 142.4 -001,8 Denton County Courthouse Square Historic District Denton, De11to1i County, Texas Denton County Courthouse Square Historic District – Denton, °Texas ? I - - -_� Pecan Street - - - - - ---I I 2U� 1 � 2ti() -2Ck1 i I �r77 -err) Ili, 11 ti tz I11 tz � 11S V 111 W 109 _ — I p Q et q o o I — 114tirmt Street — - — — – — – —� 1 Melt Ortk Street D ouse Gourtl2l" I C A B Weit Hickory Street 200 107 i 122 1 11111 I! 11$420 11& 111 110 -112 108 k 1116 104 102 1t1i1 1listodc D—, istrict — — — — - Contributing l'roperocs flibConrrihurirtg ploperti4s I- Confederate Monument GrawoFJohn 11. Denton (1901. re.- interntcrtt) 0 Dcnton County All -War Menturial WPA Sidewalks w t f iiul�>aF c'stAAa�rutCA', ti�F. IMap 1: Contributing /Non - Contributing Map of Denton County Courthouse Square Historic District ?t� 20 o c? ,fit, o Melt Ortk Street D ouse Gourtl2l" I C A B Weit Hickory Street 200 107 i 122 1 11111 I! 11$420 11& 111 110 -112 108 k 1116 104 102 1t1i1 1listodc D—, istrict — — — — - Contributing l'roperocs flibConrrihurirtg ploperti4s I- Confederate Monument GrawoFJohn 11. Denton (1901. re.- interntcrtt) 0 Dcnton County All -War Menturial WPA Sidewalks w t f iiul�>aF c'stAAa�rutCA', ti�F. IMap 1: Contributing /Non - Contributing Map of Denton County Courthouse Square Historic District Exhibit 4 Informal Staff Report Downtown Historic District Date: June 21, 2013 Report No. 2013-067 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT Consideration of the designation of the Courthouse Square area as a local historic district. BACKGROUND The Historic Landmark Commission prepared this Informal Staff Report and directed staff to forward it to the City Council for consideration concerning the designation of the Courthouse Square area as a local historic district. In fulfilling their defined duties as Historic Landmark Commissioners, the Commissioners accept that designation and preservation of our city's resources is of the utmost importance. The city's historic homes, buildings and districts have helped shape the character of this great city, and the Historic Landmark Commission (HLC) wants to continue pursuing efforts in preserving the quality of those entities. With this in mind, our downtown district hosts some of Denton's greatest historic structures in the entire city and generates a feeling of history to our community and visitors that is palpable. However, many of these buildings are not designated as historic and so leave themselves susceptible to losing their inherent historic value. The HLC would like to propose with Council support an effort between HLC, the City Council, and building /property owners to pursue, define and create a Local Historic District in the downtown Courthouse Square area. DISCUSSION This effort hopes to achieve the following for buildings, the building owners, our city, and its community: Protection /Preservation A historically designated home or building has more protection from demolition or alteration and will sustain its historic quality over a longer period of time. Economic Benefit Historic preservation makes economic sense. Studies have shown that investment in historic neighborhoods and a commercial center will stabilize property values, encourage redevelopment, stimulate business development, and generate tourist dollars. Character The inherent character in historic buildings helps define a unique aesthetic that cannot be manufactured and adds to the image of how the businesses within the Courthouse Square and surrounding area are perceived. 1 Date: June 21, 2013 Report No. 2013 -067 Community The National Trust for Historic Preservation says: "Revitalizing our historic hometowns and Main Streets is not about nostalgia. It is about reinvesting in our older and historic neighborhoods. Preservation -based community development not only protects our heritage, but also is a viable alternative to sprawl that creates affordable housing, generates jobs, supports independent businesses, increases civic participation, and bolsters a community's sense of place." Sustainable Development Sustainable Development requires environmental responsibility, economic responsibility, and social /cultural responsibility. Preservation and renovation of existing building stock is the one type of development that merges these three elements, helping maintain vibrant, livable communities in addition to being environmentally and economically responsible. CONCLUSION We hope that by working together and redefining the perspective of historic designation and the benefits involved, this great pillar of history in Denton, TX can be defined and upheld as such by HLC and Council. With Council support of this request, the HLC will commence discussions on developing the framework for creation of an historic district on the downtown Courthouse Square with the ultimate goal being the creation of a historic landmark overlay district. STAFF CONTACT Cindy Jackson, AICP Senior Planner Cindy.Jacksona.cityofdenton.com 940 - 349 -8351 or Brian Lockley, AICP, CPM Director, Planning and Development Department Brian.lockley@cityofdenton.com 940- 349 -8378 CC: Members of the Planning and Zoning Commission 2 Exhibit 5 Texas Historical Commission Certification Agreement TEXAS HISTORICAL COMMISSION real places telling real stories CERTIFICATION AGREEMENT BETWEEN THE TEXAS HISTORICAL COMMISSION AND THE CITY OF DENTON FOR PARTICIPATION IN THE CERTIFIED LOCAL GOVERNMENT PROGRAM The City of Denton, in consideration of having been granted Certified Local Government status, agrees to carry out the following responsibilities as a Certified Local Government, in cooperation with the National Park Service and the Texas Historical Commission. It will: 1. enforce the local historic preservation ordinance for the designation and protection of local historic properties; 2. establish and maintain by the local preservation ordinance a qualified review commission, board or committee for historic preservation having specific powers, such as review responsibility pertaining to proposed National Register nominations as well as actions that will affect local historic properties; 3. designate a city official, staff person or other appropriate resident of the municipal entity to serve as a local Historic Preservation Officer for the purpose of administering the local preservation ordinance; 4. provide appropriate training for historic preservation officer, related city staff and members of the historic preservation commission; 5. maintain a system for the survey and inventory of local historic properties that is coordinated with the statewide cultural- resource - survey - process, with technical assistance provided by the National Register Program office of the Texas Historical Commission's History Programs Division; 6. ensure, to the maximum extent possible, public participation in the local historic preservation program, including the process of nominating properties to the National Register of Historic Places; 7. adopt the Secretary of the Interior's Standards for Rehabilitation as the standards by which the local review commission will review all work applications brought before it under the terms of the local historic preservation ordinance; review and comment upon nominations to the National Register of Historic Places for properties within its jurisdiction within 60 days of receiving the nominations from the National Register Program office of the Texas Historical Commission, and submit the city commission's reports and the recommendations of the chief elected official of the city to the National Register Program office as to whether or not the nominated properties meet the criteria of the National Register; 9. assist the National Register Program office of the Texas Historical Commission, if necessary, in verifying the names and addresses of property owners within local historic districts being nominated to the National Register, and assist with arrangements for local public information meetings at mutually agreeable times and locations when such districts are nominated; 10. submit to the State Historic Preservation Officer by the end of each calendar year an annual report that describes the actions of the local review commission, board or committee and other preservation- related activities of the previous fiscal year (October 1 st through September 30th); 11. monitor and report to the Texas Historical Commission any actions affecting any county courthouse, Recorded Texas Historic Landmark, State Archeological Landmark, National Register property, and any locally designated landmark; 12. coordinate local historic preservation efforts, to the extent practicable, with the Texas Historical Commission, which shall provide technical assistance, guidance, and information to the Certified Local Government as feasible upon request; 13. carry out the general program procedures as outlined in the Texas Administrative Code, Title 13 Cultural Resources, Part 2 Texas Historical Commission, Chapter 15 Administration of Federal Programs, Rule 15.6 Rules and Procedures for Certified Local Governments; and 14. assist the Texas Historical Commission in any duties and powers assigned to the State Historic Preservation Office by the National Historic Preservation Act of 1966 as amended, and other federal enabling legislatiop — Si9� ature Mayer (9 chief`elccted official) Date City of Denton Printed Name Mark Wolfe, State Historic ,^ ervation Officer 2 0 RICK PERRY, GOVERNOR • MATTHEW F. KREISLE, III, CHAIRMAN • MARK WOLFE, EXECUTIVE DIRECTOR P.O. BOX 12276:9 AUSTIN, TEXAS • 78711 -2276 • P 512.463.6100 • F 512.4.75.4872. TD.D 1.800.735.2989 • www.thc.state.tx.us Exhibit 6 Texas Administrative Code Chapter 15 Rules and Procedures for CLG Texas Administrative Code Title 13 Cultural Resources Part 2 Texas Historical Commission Chapter 15 Administration of Federal Programs 15.6 Rules and procedures for Certified Local Governments (a) Purpose. The Certified Local Government program (hereinafter referred to as the Program) is part of the Historic Preservation Fund (HPF) grants -in -aid program authorized by the National Historic Preservation Act of 1966, (16 U.S.C. 470 et.seq.) (also referred to as the Act), to provide a statutory framework for national historic preservation partnerships among federal, state, tribal, and local governments in the identification, evaluation, designation, and protection of historic and prehistoric properties. The Texas State Historic Preservation Office (Texas SHPO), within the Texas Historical Commission (THC), coordinates the state's preservation responsibilities as set out in the Act. Local participation in this Program is provided to local governments that are certified by the Secretary of the United States Department of the Interior and administered by the National Park Service (NPS) through the Program. (1) Section 101(c)(1) of the Act directs the Texas State Historic Preservation Officer (SHPO) and the Secretary of the Department of the Interior through the NPS to participate in the partnership and Title 36, Code of the Federal Regulations, Part 61.6 lists requirements that the SHPO and local governments are to meet. (2) These requirements are also found in the Historic Preservation Fund (HPF) grants manual, as published and amended by the NPS. (b) City participation. City governments may participate in the Program through compliance with the Texas Local Government Code, Chapter 211, which empowers municipal governments to adopt zoning regulation for the purpose of promoting the public health, safety, morals, or general welfare and protecting and preserving places and areas of historical, cultural, or architectural importance and significance. Chapter 214.00111 of the Code also provides additional authority specifically to participating local governments for the purpose of preserving substandard buildings that are historic properties. (c) County participation. Counties may participate in the Program through compliance with the Texas Local Government Code, Chapter 318, which empowers the Commissioners Court of each county to appoint a County Historical Commission, for the purpose of initiating and conducting programs suggested by the Court and the THC for the preservation of the county's historic cultural resources that are consistent with the statewide preservation plan. (d) Indian Tribe participation. Indian tribes that effectively meet the definition of a local government in Section 301(3) of the Act may participate in the Program in accordance with Section 101(d)(1)(A) of the Act to establish a program and promulgate regulations to assist Indian tribes in preserving their historic properties. (e) Eligibility for certification of Local Governments. Any city, county, township, municipality, Indian tribe, or any other general - purpose political subdivision of Texas may apply to become a CLG by submitting a Request for Certification to the Texas SHPO. To be considered eligible, the local government must meet the minimum Program requirements pursuant to Title 36, Code of the Federal Regulations, Part 61, and outlined in the HPF grants manual. The Texas SHPO may expand or prescribe additional state requirements and responsibilities. The following are the minimum federal requirements local governments must satisfy for certification: (1) Enforces appropriate State or local legislation for the designation and protection of historic properties; (2) Has established an adequate and qualified historic preservation review commission by State or local legislation; (3) Maintains a system for the survey and inventory of historic properties; (4) Provides for adequate public participation in the local historic preservation program, including the process of recommending properties for nomination to the National Register; and (5) Satisfactorily performs the responsibilities delegated to it under the Act.. 2 (f) Certification process of Certified Local Governments. All eligible local governments must submit a completed Request for Certification and Certification Agreement, signed by the chief elected official of the applying local government, along with all necessary requested materials, to the THC. A Request for Certification may be submitted at any time throughout the year. Texas SHPO shall have a reasonable opportunity to review and respond to the request. If the local government meets the minimum requirements for participation in the Program, the Texas SHPO shall forward the Request for Certification and Certification Agreement to the NPS with a recommendation for certification. The NPS shall make the final certification decision. The local government shall become a Certified Local Government (CLG) upon receipt of written notice from the NPS, completing the certification process. (g) Annual requirements for Certified Local Governments for participation in Program. All annual requirements for participation and Program procedures are found in the Texas SHPO's Certified Local Government Preservation Handbook (Handbook), which shall be provided to each CLG upon its certification into the Program. (1) The Texas SHPO shall provide a 60 -day period for all CLGs to comment on any proposed significant changes or amendments to the Handbook, keep a record of its consultation process, and follow the procedures outlined in the HPF grant manual. (2) Written notification from the Texas SHPO to the CLGs is sufficient for minor changes, technical corrections and amendments to the Handbook. (h) Monitoring and evaluating CLG performance. The Texas SHPO shall monitor the performance of each CLG on an on -going basis to assure that CLGs fulfill their responsibilities in accordance with the requirements found in the Handbook and the terms of the Certification Agreement. In addition the performance of the CLG shall be reviewed by the Texas SHPO on the basis of recognized standards for historic preservation activities. These standards shall include but not be limited to the Secretary of the Interior's Standards and Guidelines for Archeology and Historic Preservation; National Register criteria for evaluation in reviewing the local government's role in the National Register Program; state survey grant requirements in assessing the local government's execution of the survey requirement of the CLG regulations; 3 and the Secretary of the Interior's Standards for the Treatment of Historic Properties in considering the local government's role in overseeing work to locally designated landmarks and districts. Evaluation of the performance of the CLG shall include the ability to maintain an adequate and qualified commission as called for in (e)(2) above with all commission members having a demonstrated interest, competence, or knowledge in historic preservation. (1) The Texas SHPO shall conduct a full evaluation of each CLG no less than once every four years. Written procedures and standards for evaluating CLG performance in program operation and administration shall be included in the Certification Agreement and in the Handbook. (2) The Texas SHPO shall promptly notify the CLG in writing of the results of the evaluation and must maintain written records for all evaluations. (3) If the performance of a CLG is unsatisfactory, the Texas SHPO shall suggest ways the CLG can improve its performance and stipulate a time frame in which the improvements are to be made. (i) Decertification. If the Texas SHPO determines that a CLG has not complied with the terms of the Certification Agreement, and /or has not improved sufficiently within a reasonable stipulated time frame as recommended during the monitoring process, the Texas SHPO must notify the CLG in writing of its intent to recommend decertification to the NPS. During the decertification process: (1) The Texas SHPO may begin procedures for the suspension and termination of financial assistance to that local governmental entity in accordance with the HPF grants manual. (2) Recertification shall not be permitted until all previously identified inadequacies have been addressed to the satisfaction of the Texas SHPO, and a demonstrated effort has been made by the local government to strengthen local preservation efforts above and beyond previous attempts. 0) Funds for Certified Local Governments. The Act provides that at least 10 percent of the Texas SHPO's annual HPF allocation be made available in the form of sub grants to Cl-Gs to provide financial assistance for local activities associated with the identification, evaluation, designation, and protection of historic and prehistoric properties. Although each CLG is eligible to receive funds from this allocation, there is no requirement that funds be awarded to all local governments that are eligible. All procedures, terms and conditions for application to receive a sub grant as part of the Program shall be found in the Handbook. 8/22/11 TEXAS HISTORICAL COMMISSION real places telling real stories wwwAc.state.mus E Work Session 6 AGENDA INFORMATION SHEET AGENDA DATE: April 15, 2014 DEPARTMENT: Transportation ACM: Jon Fortune YT- SUBJECT Receive a report, hold a discussion and provide direction regarding a ban on wireless communication use while operating a motor vehicle in the City of Denton. BACKGROUND At the Denton City Council Work Session on February 18, 2014, staff provided a presentation on a proposed ordinance, which was recommended by the Traffic Safety Commission (TSC), that would prohibit all use of handheld wireless communication devices while operating a motor vehicle in the City of Denton. After consideration of the proposed ordinance and associated data on distracted driving, Council requested staff to revise the draft ordinance to restrict only texting while operating a motor vehicle in the City of Denton, and to bring a revised draft ordinance back for discussion. This option is similar to the current ordinance adopted by the City of Arlington in September 2011, prohibiting drivers from using their cell phone for something other than a phone call. Attached, as Exhibit 1, is a draft ordinance prohibiting texting while driving on any roadway in the City of Denton, excluding the Interstate Highways and their associated frontage roads. Council requested that staff also provide a clear definition of texting. Section 2 (e) of the proposed ordinance states the following: A person commits an offense if the person uses a wireless communication device to send, read, or write a text message, view pictures or written text, whether transmitted by internet or other electronic means, engage in gaming or any other use of the device, besides dialing telephone numbers or talking to another person, while operating a motor vehicle. Council directed staff to identify opportunities to educate citizens on the dangers of texting and driving as part of a public education campaign to let Denton residents know, should the proposed ordinance be adopted, that it is also against the law to text and drive in the City of Denton. The Denton Police Department (DPD) has already initiated efforts to educate the public about the hazards of using wireless communication devices while driving by ordering bumper stickers, "Hang up and Drive" (Exhibit 2), that have been placed on several DPD vehicles and are available for the general public as giveaways at community events. Staff is currently working with the City of Denton Public Communication Office (PCO) to roll out a campaign that would be launched in the July /August timeframe. The PCO will coordinate closely with the Texas Department of Transportation (TxDOT) and their "Text. Talk. Crash — Distracted Driving Campaign" and the Denton Independent School District to ensure messages are consistent and AIS — Texting Ban April 15, 2014 Page 2 of 2 leverage opportunities to get the word out. Similar to the Police Department's "Hide, Take, Lock" campaign, staff will work with local theatres to run public service announcements produced by the PCO on distracted driving prior to movie trailers. Attached, as Exhibit 3, is a memo from the Denton PCO outlining a draft campaign for distracted driving. As part of the City of Denton legislative agenda for the 84th Legislative Session, Council may wish to include support of a statewide law relating to the use of wireless communication devices while operating a motor vehicle to provide uniformity from community to community throughout the state. PRIOR ACTION/REVIEW The TSC considered the issue at their September 12, 2012, May 6, 2013 and July 1, 2013, monthly meetings. The TSC unanimously recommended Council consideration of a ban on the use of all wireless devices while operating a motor vehicle in Denton at their monthly meeting on September 9, 2013. City Council considered the TSC recommendation as part of the City Council Work Session on October 1, 2013. An Informal Staff Report was provided to the Mayor and Council on November 1, 2013. Engage Denton Community Survey was completed on November 3, 2013. Council Work Session February 18, 2014 - Staff was directed to revise the draft ordinance banning the use of all wireless communication devices while operating a motor vehicle to include only a ban on texting. Council also directed staff to initiate a public education campaign. OPTIONS 1. Schedule Council action on the draft ordinance banning texting with wireless communication devices while operating a motor vehicle. 2. Decline the proposed draft ordinance banning texting with wireless communication devices while operating a motor vehicle in Denton. 3. Continue the discussion and provide further direction on this issue. SCHEDULE Draft ordinance can be placed on May 6, 2014, Regular Council Agenda for consideration. EXHIBITS 1. Draft Ordinance 2. Bumper Sticker - Hang Up and Drive 3. April 2, 2014, PCO memo outlining draft public education campaign Respectfully submitted: Mark Nelson Transportation Director EXHIBIT 1 S: \Legal \Our Documents\ Ordinances \14 \UseOfWirelessCommunication DeviceForTextingEtcProhibited Notlncludinglnterstate .doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS ADDING SECTION 18 -38 OF THE CODE OF ORDINANCES RELATING TO THE USE OF WIRELESS COMMUNICATION DEVICES WHILE DRIVING; BY CREATING SECTION 18 -38 TO PROHIBIT THE USE OF WIRELESS COMMUNICATION DEVICES WHILE OPERATING A MOTOR VEHICLE EXCEPT FOR DIALING A NUMBER OR TALKING TO ANOTHER PERSON WITH CERTAIN DEFENSES; PROVIDING A REPEALER CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR A PENALTY NOT TO EXCEED $200 FOR VIOLATIONS OF THIS ORDINANCE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Denton City Council finds that the use of a wireless communication device to send, read, or write a text message, view pictures or written text, whether transmitted by intereet or other electronic means, engage in gaming or any other use of the device, other than dialing telephone numbers, or talking to another person while operating a moving motor vehicle, is a traffic hazard, a danger to the public and creates a particular danger or probability of danger in the City of Denton; and WHEREAS, the interstate highway system may be distinguished from the other roadways within the City because it is both a limited access highway system within the City of Denton and a roadway on which a large percentage of motor vehicle operators on the interstate highway system are travelling through the city without ever exiting the interstate highway system; WHEREAS, it is in the interest of public safety to restrict the use of wireless communication devices by persons operating motor vehicles on City public roadways and highways other than the interstate highway system; and WHEREAS, prohibiting the use of wireless communication devices while driving in the City of Denton, to the extent allowed by §545.425(f), Texas Transportation Code, addresses the possible hazards produced by a distracted driver as the result of: (1) sending or reading text messages, instant messages; (2) viewing or accessing intereet sites; or (3) viewing or accessing other data that uses commonly recognized electronic communications protocol; and WHEREAS, the Denton City Council believes that prohibiting the use of wireless communication devices to engage in any use of a mobile communication device other than dialing telephone numbers or talking to another person, with certain defenses, would further and protect the public health, safety, and welfare; 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. Chapter 18 "Motor Vehicles and Traffic" of the Code of Ordinances of Denton, Texas is hereby amended by adding Section 18 -38 regarding the use of wireless Page 1 S: \Legal \Our Documents\ Ordinances \14 \UseOfWirelessCommunication DeviceForTextingEtcProhibited Notlncludinglnterstate .doc communication devices while driving on all streets and highways within the City of Denton other than any streets within the interstate highway system. Section 18 -38 shall read as follows: Sec. 18 -38 Use of Wireless Communication Devices While Driving. (a) In this section, a "Hands -free device" means speakerphone capability or a telephone attachment to other piece of equipment, regardless of whether permanently installed in the motor vehicle, that allows use of the wireless device without use of either of the operator's hands. (b) In this section, "Text message" means a two -way communication (whether real - time or asynchronous) in which data (composed in whole or in part of text, numbers, images, or symbols) is sent, entered, or received by a method other than by voice and transmitted through either a short message service (SMS) or a computer network. (c) In this section, "Wireless Communication Device" has the meaning assigned in Section 545.425 (Use of Wireless Communication Device; Offense) of the Texas Transportation Code. Further, "Wireless Communication Device" means a text - messaging device or other electronic, two -way communication device that is designed to receive and transmit voice communication, text or pictorial communication, or both, whether by internet or other electronic means. The term includes a mobile telephone, and a personal digital assistant (PDA). (d) In this section, "Wireless Telephone Service" means two -way, real time voice telecommunications service that is interconnected to a public switched telephone network and is commonly referred to as cellular service or personal communication service. (e) A person commits an offense if the person uses a wireless communication device to send, read, or write a text message, view pictures or written text, whether transmitted by internet or other electronic means, engage in gaming or any other use of the device, besides dialing telephone numbers or talking to another person, while operating a motor vehicle. (f) It is an affirmative defense to prosecution of an offense under this section is a wireless communication device is used: 1. While the vehicle is stopped, out of the moving lanes of the roadway; 2. Strictly to engage in a telephone conversation, including dialing or deactivating a call; 3. That is affixed to the vehicle and used as a global positioning or navigation system; 4. For obtaining emergency assistance to report a traffic accident, medical emergency, or serious traffic hazard, or to prevent a crime about to be committed or being committed; Page 2 S: \Legal \Our Documents\ Ordinances \14 \UseOfWirelessCommunication DeviceForTextingEtcProhibited Notlncludinglnterstate .doc 5. In the reasonable belief that a person's life or safety is in immediate danger; or 6. Solely in a voice - activated or other hands -free mode. (g) This ordinance does not apply to: 1. An operator of an authorized emergency vehicle using a wireless communication device while acting in an official capacity; and 2. An operator who is licensed by the Federal Communications Commission operating a radio frequency device other than a wireless communication device. (h) This ordinance does not apply to a person operating a motor vehicle on any street or highway in the City of Denton on the interstate highway system. The interstate highway system within the City of Denton includes the following roadways: 1. Interstate Highway 35 East; 2. Interstate Highway 35 West; 3. Interstate Highway 35; and 4. All the frontage and access roads providing access to the three interstate highways. (i) To the extent that this section conflicts with the Texas Transportation Code Section 545.424, regarding the use of wireless communication devices while operating a motor vehicle by minors, or Texas Transportation Code Section 545.425, regarding the use of wireless communications devices in school zones or by the operators of school busses, this section does not apply. (j) No citations will be issued for the first 30 days following the effective date of this Ordinance so that an educational effort by the City of Denton may be conducted to inform the public about the importance and requirements of this new Ordinance. SECTION 3. If any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas hereby declares it would have enacted such remaining portions despite any invalidity. SECTION 4. Save and except as amended hereby, all the provisions, sections, subsections, paragraphs, sentences, clauses, and phrases of the Code of Ordinances shall remain in full force and effect. SECTION 5. Any person found guilty of violating this Ordinance by a court of competent jurisdiction shall be fined a sum not to exceed two hundred dollars ($200). Page 3 S: \Legal \Our Documents\ Ordinances \14 \UseOfWirelessCommunication DeviceForTextingEtcProhibited Notlncludinglnterstate .doc SECTION 6. This Ordinance providing for a penalty shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record - Chronicle, the official newspaper of the City of Denton, Texas, within 10 days of the date of its passage. PASSED AND APPROVED this the day of , 2014. ATTEST: JENNIFER WALTERS, CITY SECRETARY ffiffi APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Page 4 MARK A. BURROUGHS, MAYOR EXHIBIT 2 EXHIBIT 3 DENTON Public Communications Office 215 E McKinney St., Denton, Texas 76201 MEMORANDUM Date: April 2, 2014 To: Mark Nelson, Director of Transportation From: Kiersten Dieterle, Public Communications Manager Re: Texting while driving ban educational campaign 2014 Promotion subject /scope: This campaign is to educate the Denton public and Denton ISD students about the new texting while driving ban. The campaign will center around two points: 1) it is now illegal to do in the City of Denton, and 2) studies show that it is one of the most dangerous activities you can do while driving. The City hopes that this educational campaign will result in citizens refraining from using their wireless devises to text or surf the Internet while operating their motor vehicles. Timeline: Materials will be produced in May - June for a campaign launch in July /August and continuing throughout the year. Roles and responsibilities: The Public Communications Office (PCO), with the guidance of the Police Department and the Director of Transportation, will produce the communication plan and materials associated with this plan, facilitate media coverage, and place most advertising and communication pieces. PCO will reach out and work with Denton ISD and TxDOT to make sure messages are consistent and that we have strong district support. The Director of Transportation and the Police Department will be responsible for all funding, help with research and drafting of information to be used in material production, the distribution of posters and fliers, and conducting media interviews and presentations to schools /community groups. Cost: The total cost for the plan is $4, 700. The Director of Transportation and the Police Department will be responsible for all funding. Campaign launch July /August: • Update COD website including frequently asks questions. No Charge • Messages out to all City of Denton social media outlets including Police: Twitter, YouTube, and Facebook. No Charge • DTV slides. No Charge • Informational fliers and posters in Denton ISD schools, customer service locations, recreation centers, and libraries. Cost - $800 • Presentations available for civic groups and neighborhood associations. No Charge • News release and facilitation of media coverage — posted on website also. No Charge www.cityofdenton.com ADA /EOE /ADEA (TDD 800 - 735 -2989) Page 2 of 3 • Features in "NewsBreak" on DTV (City of Denton news show). No Charge • Announcement on engagedenton.com. No Charge • Bumper stickers on police vehicles. Cost - $300 • Video PSA at local theaters. Cost — $3,000 (will try to get donated) • Video PSA on YouTube and DTV. No Cost • Work message into Police Denton ISD school presentations. No Cost • Reach out to City Departments and Denton ISD to include information in newsletters. No Cost • Target driving instructors and defensive driving instructors with information. No Cost • Email blast to all homeowner and neighborhood associations. No Charge • Police Department targeting seasonal Denton ISD and community events. Minimal Cost • Advertisement in Denton Record - Chronicle. Cost - $350 • Facebook ad — Cost - $250 Campaign maintenance September: • Messages out to all City of Denton social media outlets including Police: Twitter, YouTube, and Facebook No Charge • DTV slides. No Charge • Informational fliers and posters in Denton ISD schools, customer service locations, recreation centers, and libraries. • Presentations available for civic groups and neighborhood associations. No Charge • Features in "NewsBreak" on DTV (City of Denton news show). No Charge • Bumper stickers on police vehicles. • Video PSA on YouTube and DTV • Work message into Police Denton ISD school presentations. No Cost • Reach out to City Departments and Denton ISD to include information in newsletters. No Cost • Police Department targeting seasonal Denton ISD and community events. Minimal Cost Campaign maintenance October: • Messages out to all City of Denton social media outlets including Police: Twitter, YouTube, and Facebook No Charge • DTV slides. No Charge • Informational fliers and posters in Denton ISD schools, customer service locations, recreation centers, and libraries. • Presentations available for civic groups and neighborhood associations. No Charge • Features in "NewsBreak" on DTV (City of Denton news show). No Charge • Bumper stickers on police vehicles. • Video PSA on YouTube and DTV • Work message into Police Denton ISD school presentations. No Cost • Reach out to City Departments and Denton ISD to include information in newsletters. No Cost • Police Department targeting seasonal Denton ISD and community events. Minimal Cost Page 3 of 3 Campaign maintenance November: • Messages out to all City of Denton social media outlets including Police: Twitter, YouTube, and Facebook. No Charge • DTV slides. No Charge • Informational fliers and posters in Denton ISD schools, customer service locations, recreation centers, and libraries. • Presentations available for civic groups and neighborhood associations. No Charge • Features in "NewsBreak" on DTV (City of Denton news show). No Charge • Bumper stickers on police vehicles. • Video PSA on YouTube and DTV • Work message into Police Denton ISD school presentations. No Cost • Reach out to City Departments and Denton ISD to include information in newsletters. No Cost • Police Department targeting seasonal Denton ISD and community events. Minimal Cost • Media Alert and facilitation of media coverage — posted on website also. No Charge • Features in "NewsBreak" on DTV Channel 26 (City of Denton news show). No Charge • Email blast to all homeowner and neighborhood associations. No Charge Consent Agenda A AGENDA INFORMATION SHEET AGENDA DATE: April 15, 2014 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Frank Payne at 349 -8946 ACM: Bryan Langley aL SUBJECT Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for the Wastewater Collection System Improvements around Eagle Drive and Congress Street Project for the City of Denton Engineering Department; providing for the expenditure of funds therefor; and providing an effective date (IFB 5472- awarded to Dickerson Construction Company, Inc. in the not -to- exceed amount of $2,070,842). The Public Utilities Board recommends approval (5 -0). BID INFORMATION Standard City of Denton purchasing procedures were utilized. Bid notices were advertised in the local paper, posted on the internet, and emailed to 575 prospective bidders. Bids for the construction phase of this project were opened on March 4, 2014. Eight (8) responses were received. The bids ranged from a low base bid of $1,550,625.00 to $2,631,030.00. The engineer's opinion of probable construction cost (OPCC) for the work was $2,200,000.00. The bid summary is enclosed as Exhibit 2. The apparent low bidder for this project, Atkins Brothers Construction Company, Inc. notified the City on March 7, 2014 that they had made a large estimating error in calculating their bid price and would need to withdraw their bid as they could not perform the work for the price they had submitted. As a result, the City has moved to the second low bidder, Dickerson Construction Company, Inc., who appears to meet all of the necessary requirements for qualification on this project. Dickerson Construction Company, Inc.'s bid of $2,070,842 is approximately 6% less than the engineer's OPCC. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On March 24, 2014, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. RECOMMENDATION Award Bid 5472 to the lowest responsible bidder meeting specification, Dickerson Construction Company, Inc. in the amount of $2,070,842. Agenda Information Sheet April 15, 2014 Page 2 PRINCIPAL PLACE OF BUSINESS Dickerson Construction Company, Inc. Celina, TX ESTIMATED SCHEDULE OF PROJECT This project is estimated to be completed within three hundred thirty (330) calendar days of issuance of the Notice to Proceed. FISCAL INFORMATION This project will be funded from Bond fund account 640234545.1360.40100. Requisition 4118407 has been entered in the Purchasing software system. EXHIBITS Exhibit 1: Map of Location Exhibit 2: Bid Tabulation Exhibit 3: Public Utilities Board Draft Minutes Exhibit 4: Ordinance Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance Exhibit 1 — Project Location Map LINDEN LINDEN -- SAWIR SCHMITT w Z w Z 0 FIRST Z J \G � �K . TEXAS Z F BROADWAY w O z Z K Z I w �. TEXAS O TEXAS rn L 9 a O I Z° m O U PANHANDL Z Z w WITHERS 0 .M AY . . __ ILL < W Z a SENA� - >FGAN ¢ PAUL INE w ❑ O �` L w O PAISLEY PAISLEY 0 SCRIPTURE 2 >w NGRESS p Q BER ❑ m OP�PN PARKWAY `� D, IS r HOUSTON ¢ 0 UND � Gi 2 HOUSTON O w O GRACE TEMPL AYNES pE L L ALAMO ¢ ¢ L m Y O GREGG MCKINNEV m Z L PECAN �¢❑ ¢ ❑ OAK U' K L L F OA CA O wo OAK O w U HICKORY J a w S86 LA ¢ ¢ MULBERRY Q ALNI} rOL > y MULBERRY X06, � U' � SYCAMORE SYCAMORg g O SYCAMORE SYCAMORE w O ¢ Z L Z STROUfi LiC.O CHESTNUT CHESTNUT J ¢ 0 RO PRAIRIE 0 PRAIRIE IRIE UNION PRAIRIE w r¢L UL L y 0 PRAIR0 K SS HIGHLAND a F F z @ O o WILSON y�Pm / ❑ MAPLE g J LL J w o o > a w w i w a a w a a � WYE 3 2 Z F 3�cR�1C E�LE �p MILL MORSE 1 m HIRE ¢ 2 ZO RUTH p ¢ %NNIN w w � �+ MARGIE y C�ILLINS U COLONS COLLINS O'9�� PARK �9SBOARDWALK CO-t( °w 9 � UNDERWOOD UNDERWOOD ❑ Z¢ Z O CHAMBERS � K �rF a z z S ITH RFy 2 t U T w F O SMITH SMITH 4 US D O 2 O 2 JO L >O O oZ ¢Z O Z g DAUGHERTY Z r Y Y U PRIVATE SHADY OAKS EXHIBIT 2 Bid # 5472 3/4/2014 Description: WW Collection Improvement Around Eagle Dr. and Congress St. DESCRIPTION VENDOR VENDOR VENDOR VENDOR VENDOR "M Atkins Bros. Dickerson Const. Jagoe Public John Burns Condie Principle Place of Business: Midlothian, TX Celina, TX Denton, TX Lewisville, TX Springville, UT Base Bid $ 1,550,625.00 $ 2,070,842.00 $ 2,314,279.70 $ 2,363,750.00 $ 2,515,048.00 Bid Bond Yes Yes Yes Yes Yes Addendum #1 Yes Yes Yes Yes Yes Item I Description Qty Unit Total Total Total Total Total ITEMS APPLICABLE TO ENTIRE PROJECT 103.3 Surety Bonds 1 LS $ 20,000 / LS $ 20,000.00 $ 35,000.00 / LS $ 35,000.00 $ 45,000.00 / LS $ 45,000.00 $ 32,500.00 / LS $ 32,500.00 $ 37,162.70 / LS $ 37,162.70 107.20 Project Signs 2 EA $ 600 / LS $ 1,200.00 $ 750.00 / LS $ 1,500.00 $ 400.00 / LS $ 800.00 $ 430.00 / LS $ 860.00 $ 690.00 / LS $ 1,380.00 203.3 General Site Preparation 1 LS $ 1,500 / LS $ 1,500.00 $ 11,000.00 / LS $ 11,000.00 $ 150,000.00 / LS $ 150,000.00 $ 5,000.00 / LS $ 5,000.00 $ 101,761.00 / LS $ 101,761.00 201 Temporary Erosion Control 1 LS $ 3,000 / LS $ 3,000.00 $ 5,000.00 / LS $ 5,000.00 $ 6,200.00 / LS $ 6,200.00 $ 2,750.00 / LS $ 2,750.00 $ 5,988.00 /TS $ 5,988.00 502.12. 4 Core into Existing Manhole 5 EA $ 300 / LS $ 1,500.00 $ 750.00 / LS $ 3,750.00 $ 1,125.00 / LS $ 5,625.00 $ 1,700.00 / LS $ 8,500.00 $ 1,357.00 / LS $ 6,785.00 801 Traffic Control, Barricades, Barriers, Warning and Detour Signs, and Fences 1 EA $ 10,000 / LS $ 10,000.00 $ 35,000.00 / LS $ 35,000.00 $ 50,000.00 / LS $ 50,000.00 $ 21,000.00 / LS $ 21,000.00 $ 50,607.00 / LS $ 50,607.00 SS01 Plug Existing Sanitary Sewer 15 EA $ 400 / LS $ 6,000.00 $ 500.00 / LS $ 7,500.00 $ 1,050.00 / LS $ 15,750.00 $ 235.00 / LS $ 3,525.00 $ 820.00 / LS $ 12,300.00 SS02 Abandon Existing Manhole 10 EA $ 500 / LS $ 5,000.00 $ 750.00 / LS $ 7,500.00 $ 1,300.00 / LS $ 13,000.00 $ 470.00 / LS $ 4,700.00 $ 880.00 / LS $ 8,800.00 SS03 Remove Existing Manhole 26 EA $ 1,000 / LS $ 26,000.00 $ 1,000.00 / LS $ 26,000.00 $ 2,450.00 / LS $ 63,700.00 $ 600.00 / LS $ 15,600.00 $ 1,580.00 / LS $ 41,080.00 SS06 Bypass Pumping 1 LS $ 15,000 / LS $ 15,000.00 $ 25,000.00 / LS $ 25,000.00 $ 79,000.00 / LS $ 79,000.00 $ 44,000.00 / LS $ 44,000.00 $ 96,057.00 / LS $ 96,057.00 506 6 "/8 "Waterline Lowering per City of Denton Standard Detail W301 2 EA $ 1,500 / LS $ 3,000.00 $ 4,850.00 / LS $ 9,700.00 $ 4,200.00 / LS $ 8,400.00 $ 8,600.00 / LS $ 17,200.00 $ 4,897.00 / LS $ 9,794.00 507 8" C900 PVC Sanitary Sewer by Open Cut, Complete w/Embedment, Backfill & Pavement Repair 11 LF $ 90 / LS $ 990.00 $ 150.00 / LS $ 1,650.00 $ 130.00 / LS $ 1,430.00 $ 240.00 / LS $ 2,640.00 $ 266.00 / LS $ 2,926.00 507 12" C900 PVC Sanitary Sewer by Open Cut, Complete w/Embedment, Backfill & Pavement Repair 26 LF $ 100 / LS $ 2,600.00 $ 175.00 / LS $ 4,550.00 $ 160.00 / LS $ 4,160.00 $ 241.00 / LS $ 6,266.00 $ 280.00 / LS $ 7,280.00 501 12" C900 PVC Sleeve, Complete in Place 144 LF $ 100 / LS $ 14,400.00 $ 120.00 / LS $ 17,280.00 $ 95.00 / LS $ 13,680.00 $ 70.00 / LS $ 10,080.00 $ 85.00 / LS $ 12,240.00 501 16" C900 PVC Sleeve, Complete in Place 18 LF $ 120 / LS $ 2,160.00 $ 120.00 / LS $ 2,160.00 $ 140.00 / LS $ 2,520.00 $ 90.00 / LS $ 1,620.00 $ 109.00 / LS $ 1,962.00 504.5 IFlowable Fill Embedment 1 234 ILF I $ 30 / LS $ 7,020.00 1 $ 40.00 / LS $ 9,360.00 $ 85.00 / LS $ 19,890.00 1 $ 24.00 / LS $ 5,616.00 1 $ 20.00 / LS $ 4,680.00 ITEMS APPLICABLE TO EAGLE DRIVE 107.19. 3 Trench Safety 4254 LF $ 2 / LS $ 8,508.00 $ 3.00 / LS $ 12,762.00 $ 1.05 / LS $ 4,466.70 $ 1.00 / LS $ 4,254.00 $ 1.25 / LS $ 5,317.50 502.1 - A T Diameter Sanitary Sewer Manhole (L 6 Feet Deep) 13 EA $ 6,000 / LS $ 78,000.00 $ 2,500.00 / LS $ 32,500.00 $ 5,530.00 / LS $ 71,890.00 $ 5,100.00 / LS $ 66,300.00 $ 3,755.00 / LS $ 48,815.00 502.1- A 4' Extra Depth Sewer Manhole (> 6 Feet Deep) per Vertical Foot 48 VF $ 150 / LS $ 7,200.00 $ 200.00 / LS $ 9,600.00 $ 115.00 / LS $ 5,520.00 $ 310.00 / LS $ 14,880.00 $ 190.00 / LS $ 9,120.00 502.1 - A 5' Diameter Sanitary Sewer Manhole (L 6 Feet Deep) 2 EA $ 7,000 / LS $ 14,000.00 $ 3,500.00 / LS $ 7,000.00 $ 8,820.00 / LS $ 17,640.00 $ 4,900.00 / LS $ 9,800.00 $ 4,135.00 / LS $ 8,270.00 502.1- A 5' Extra Depth Sewer Manhole (> 6 Feet Deep) per Vertical Foot 26 VF $ 160 / LS $ 4,160.00 $ 350.00 / LS $ 9,100.00 $ 144.00 / LS $ 3,744.00 $ 360.00 / LS $ 9,360.00 $ 251.00 / LS $ 6,526.00 Bid # 5472 EXHIBIT 2 3/4/2014 Description: WW Collection Improvement Around Eagle Dr. and Congress St. DESCRIPTION VENDOR VENDOR VENDOR VENDOR VENDOR "M Atkins Bros. Dickerson Const. Jagoe Public John Burns Condie Princi le Place of Business: Midlothian, TX Celina, TX Denton, TX Lewisville, TX Springville, UT 502.10. 6" Sanitary Sewer Service Connection including 4 Wye, Cleanout, Pavement and C &G Repair 16 EA $ 1,700 / LS $ 27,200.00 $ 1,500.00 / LS $ 24,000.00 $ 3,800.00 / LS $ 60,800.00 $ 2,900.00 / LS $ 46,400.00 $ 3,520.00 / LS $ 56,320.00 8" SDR -35 PVC Sanitary Sewer by Open Cut, 507 Complete w/Embedment, Backfill & Pavement Repair 89 LF $ 90 / LS $ 8,010.00 $ 143.00 / LS $ 12,727.00 $ 110.00 /LS $ 9,790.00 $ 245.00 / LS $ 21,805.00 $ 161.00 / LS $ 14,329.00 10" SDR -35 PVC Sanitary Sewer by Open Cut, 507 Complete w/Embedment, Backfill & Pavement Repair 1785 LF $ 100 / LS $ 178,500.00 $ 145.00 / LS $ 258,825.00 $ 108.00 / LS $ 192,780.00 $ 165.00 / LS $ 294,525.00 $ 179.00 / LS $ 319,515.00 12" SDR -35 PVC Sanitary Sewer by Open Cut, 507 Complete w/Embedment, Backfill & Pavement Repair 1745 LF I $ 120 / LS $ 209,400.00 $ 148.00 / LS $ 258,260.00 $ 112.00 / LS $ 195,440.00 $ 165.00 / LS $ 287,925.00 $ 183.00 / LS $ 319,335.00 8" SDR -26 (160 psi) PVC Sanitary Sewer by Open 507 Cut, Complete w/Embedment, Backfill & Pavement Repair 59 LF $ 90 / LS $ 5,310.00 $ 150.00 / LS $ 8,850.00 $ 114.00 / LS $ 6,726.00 $ 230.00 / LS $ 13,570.00 $ 154.00 / LS $ 9,086.00 10" SDR -26 (160 psi) PVC Sanitary Sewer by Open 507 Cut, Complete w/Embedment, Backfill & Pavement Repair 395 ILF I $ 95 / LS $ 37,525.00 $ 170.00 / LS $ 67,150.00 $ 130.00 / LS $ 51,350.00 $ 164.00 / LS $ 64,780.00 $ 158.00 / LS $ 62,410.00 12" SDR -26 (160 psi) PVC Sanitary Sewer by Open 507 Cut, Complete w/Embedment, Backfill & Pavement Repair 81 LF $ 110 / LS $ 8,910.00 $ 160.00 / LS $ 12,960.00 $ 125.00 / LS $ 10,125.00 $ 244.00 / LS $ 19,764.00 $ 165.00 / LS $ 13,365.00 ITEMS APPLICABLE TO ALL OTHER STREETS 107.19. 3 Trench Safety 6964 LF $ 1 /LS $ 6,964.00 $ 2.00 / LS $ 13,928.00 $ 1.00 / LS $ 6,964.00 $ 0.50 / LS $ 3,482.00 $ 1.20 / LS $ 8,356.80 502.1 - A T Diameter Sanitary Sewer Manhole (< 6 Feet Deep) 26 EA $ 5,000 / LS $ 130,000.00 $ 2,500.00 /LS $ 65,000.00 $ 4,600.00 / LS $ 119,600.00 $ 4,200.00 / LS $ 109,200.00 $ 3,538.00 / LS $ 91,988.00 502.1- 4' Extra Depth Sewer Manhole (> 6 Feet Deep) per A Vertical Foot 53 jVF I $ 150 / LS $ 7,950.00 $ 200.00 / LS $ 10,600.00 $ 115.00 / LS $ 6,095.00 $ 240.00 / LS $ 12,720.00 $ 190.00 / LS $ 10,070.00 502.1 - A 5' Diameter Sanitary Sewer Manhole (< 6 Feet Deep) 1 EA $ 6,600 / LS $ 6,600.00 $ 3,500.00 / LS $ 3,500.00 $ 6,330.00 / LS $ 6,330.00 $ 4,700.00 / LS $ 4,700.00 $ 4,135.00 / LS $ 4,135.00 502.1- 5' Extra Depth Sewer Manhole (> 6 Feet Deep) per A Vertical Foot 1 VF $ 160 / LS $ 160.00 $ 400.00 / LS $ 400.00 $ 145.00 / LS $ 145.00 $ 370.00 / LS $ 370.00 $ 251.00 / LS $ 251.00 502.1- T Diameter Fiberglass Sanitary Sewer Manhole with B Prefab Invert 2 EA $ 4,000 / LS $ 8,000.00 $ 7,250.00 / LS $ 14,500.00 $ 6,020.00 / LS $ 12,040.00 $ 5,000.00 / LS $ 10,000.00 $ 5,615.00 / LS $ 11,230.00 502.10. 4" Sanitary Sewer Service Connection including 4 Wye, Cleanout, Pavement and C &G Repair 125 EA $ 350 / LS $ 43,750.00 $ 1,350.00 / LS $ 168,750.00 $ 3,500.00 / LS $ 437,500.00 $ 2,100.00 / LS $ 262,500.00 $ 2,545.00 / LS $ 318,125.00 502.10. 6" Sanitary Sewer Service Connection including 4 Wye, Cleanout, Pavement and C &G Repair 4 EA $ 1,800 / LS $ 7,200.00 $ 1,500.00 / LS $ 6,000.00 $ 3,750.00 / LS $ 15,000.00 $ 2,900.00 / LS $ 11,600.00 $ 2,936.00 / LS $ 11,744.00 8" SDR -35 PVC Sanitary Sewer by Open Cut, 507 Complete w/Embedment, Backfill & Pavement Repair 5810 LF $ 95 / LS $ 551,950.00 $ 132.00 / LS $ 766,920.00 $ 90.00 / LS $ 522,900.00 $ 140.00 / LS $ 813,400.00 $ 119.00 / LS $ 691,390.00 Bid # 5472 EXHIBIT 2 3/4/2014 Description: WW Collection Improvement Around Eagle Dr. and Congress St. DESCRIPTION VENDOR VENDOR VENDOR VENDOR VENDOR Atkins Bros. Dickerson Const. Jagoe Public John Burns Condie Principle Place of Business: Midlothian, TX Celina, TX Denton, TX Lewisville, TX Springville, UT 12" SDR -35 PVC Sanitary Sewer by Open Cut, 507 Complete w/Embedment, Backfill & Pavement Repair 457 LF $ 115 / LS $ 52,555.00 $ 140.00 / LS $ 63,980.00 $ 105.00 / LS $ 47,985.00 $ 157.00 / LS $ 71,749.00 $ 125.00 / LS $ 57,125.00 8" SDR -26 (160 psi) PVC sanitary Sewer by Open 507 Cut, Complete w/Embedment, Backfill & Pavement Repair 297 ILF $ 99 / LS I $ 29,403.00 $ 140.00 / LS I $ 41,580.00 $ 102.00 / LS I $ 30,294.00 $ 97.00 / LS I $ 28,809.00 $ 126.00 / LS I $ 37,422.00 Total Base Bid $ 1,550,625.00 $ 2,070,842.00 $ 2,314,279.70 $ 2,363,750.00 $ 2,515,048.00 EXHIBIT 2 Bid # 5472 3/4/2014 Description: WW Collection Improvement Around DESCRIPTION VENDOR VENDOR "M Jackson Construction Housley Group Principle Place of Business: Ft. worth, TX Carrollton, TX Base Bid $ 2,562,447.00 $ 2,631,030.00 Bid Bond Yes Yes Addendum #1 Yes Yes Item I Description Total Total ITEMS APPLICABLE TO ENTIRE PROJECT 103.3 Surety Bonds $ 22,000.00 / LS $ 22,000.00 $ 42,500.00 / LS $ 42,500.00 107.20 Project Signs $ 500.00 / LS $ 1,000.00 $ 850.00 / LS $ 1,700.00 203.3 General Site Preparation $ 85,000.00 / LS $ 85,000.00 $ 12,500.00 / LS $ 12,500.00 201 Temporary Erosion Control $ 11,000.00 / LS $ 11,000.00 $ 4,800.00 / LS $ 4,800.00 502.12. 4 Core into Existing Manhole $ 1,800.00 / LS $ 9,000.00 $ 1,200.00 / LS $ 6,000.00 801 Traffic Control, Barricades, Barriers, Warning and Detour Signs, and Fences $ 20,000.00 / LS $ 20,000.00 $ 41,000.00 / LS $ 41,000.00 SS01 Plug Existing Sanitary Sewer $ 1,100.00 / LS $ 16,500.00 $ 1,100.00 / LS $ 16,500.00 SS02 Abandon Existing Manhole $ 950.00 / LS $ 9,500.00 $ 1,600.00 / LS $ 16,000.00 SS03 Remove Existing Manhole $ 1,000.00 / LS $ 26,000.00 $ 2,500.00 / LS $ 65,000.00 SS06 Bypass Pumping $ 30,000.00 / LS $ 30,000.00 $ 95,500.00 / LS $ 95,500.00 506 6 "/8 "Waterline Lowering per City of Denton Standard Detail W301 $ 8,000.00 / LS $ 16,000.00 $ 4,500.00 / LS $ 9,000.00 507 8" C900 PVC Sanitary Sewer by Open Cut, Complete w/Embedment, Backfill & Pavement Repair $ 180.00 / LS $ 1,980.00 $ 124.00 / LS $ 1,364.00 507 12" C900 PVC Sanitary Sewer by Open Cut, Complete w/Embedment, Backfill & Pavement Repair $ 185.00 / LS $ 4,810.00 $ 153.00 / LS $ 3,978.00 501 12" C900 PVC Sleeve, Complete in Place $ 60.00 / LS $ 8,640.00 $ 117.00 / LS $ 16,848.00 501 16" C900 PVC Sleeve, Complete in Place $ 82.00 / LS $ 1,476.00 $ 140.00 / LS $ 2,520.00 504.5 IFlowable Fill Embedment $ 72.00 / LS $ 16,848.00 1 $ 275.00 / LS $ 64,350.00 ITEMS APPLICABLE TO EAGLE DRIVE 107.19. 3 Trench Safety $ 1.00 / LS $ 4,254.00 $ 1.00 / LS $ 4,254.00 502.1 - A T Diameter Sanitary Sewer Manhole (L 6 Feet Deep) $ 4,800.00 / LS $ 62,400.00 $ 7,000.00 / LS $ 91,000.00 502.1- A 4' Extra Depth Sewer Manhole (> 6 Feet Deep) per lVertical Foot $ 680.00 / LS $ 32,640.00 $ 950.00 / LS $ 45,600.00 502.1 - A 5' Diameter Sanitary Sewer Manhole (L 6 Feet Deep) $ 6,800.00 / LS $ 13,600.00 $ 9,000.00 / LS $ 18,000.00 502.1- A 5' Extra Depth Sewer Manhole (> 6 Feet Deep) per Vertical Foot $ 750.00 / LS $ 19,500.00 $ 1,000.00 / LS $ 26,000.00 Bid # 5472 3/4/2014 Description: WW Collection Improvement Around EXHIBIT 2 DESCRIPTION VENDOR VENDOR "M Jackson Construction Housley Group Principle Place of Business: Ft. Worth, TX Carrollton, TX 502.10. 6" Sanitary Sewer Service Connection including 4 Wye, Cleanout, Pavement and C &G Repair $ 4,200.00 / LS $ 67,200.00 $ 3,700.00 / LS $ 59,200.00 8" SDR -35 PVC Sanitary Sewer by Open Cut, 507 Complete w/Embedment, Backfill & Pavement Repair $ 150.00 / LS $ 13,350.00 $ 114.00 / LS $ 10,146.00 10" SDR -35 PVC Sanitary Sewer by Open Cut, 507 Complete w/Embedment, Backfill & Pavement Repair $ 152.00 / LS $ 271,320.00 $ 122.00 / LS $ 217,770.00 12" SDR -35 PVC Sanitary Sewer by Open Cut, 507 Complete w/Embedment, Backfill & Pavement Repair $ 170.00 / LS $ 296,650.00 $ 135.00 / LS $ 235,575.00 8" SDR -26 (160 psi) PVC Sanitary Sewer by Open 507 Cut, Complete w/Embedment, Backfill & Pavement Repair $ 160.00 / LS $ 9,440.00 $ 116.00 / LS $ 6,844.00 10" SDR -26 (160 psi) PVC Sanitary Sewer by Open 507 Cut, Complete w/Embedment, Backfill & Pavement Repair $ 165.00 / LS $ 65,175.00 $ 127.00 / LS $ 50,165.00 12" SDR -26 (160 psi) PVC Sanitary Sewer by Open 507 Cut, Complete w/Embedment, Backfill & Pavement Repair $ 175.00 / LS $ 14,175.00 $ 145.00 / LS $ 11,745.00 ITEMS APPLICABLE TO ALL OTHER STREE' 107.19. 3 Trench Safety $ 1.00 / LS $ 6,964.00 $ 1.25 / LS $ 8,705.00 502.1- A T Diameter Sanitary Sewer Manhole (< 6 Feet Deep) $ 4,800.00 / LS $ 124,800.00 $ 7,000.00 / LS $ 182,000.00 502.1- 4' Extra Depth Sewer Manhole (> 6 Feet Deep) per A Vertical Foot $ 520.00 / LS $ 27,560.00 $ 1,000.00 / LS $ 53,000.00 502.1- A 5' Diameter Sanitary Sewer Manhole (< 6 Feet Deep) $ 6,800.00 / LS $ 6,800.00 $ 9,500.00 / LS $ 9,500.00 502.1- 5' Extra Depth Sewer Manhole (> 6 Feet Deep) per A Vertical Foot $ 670.00 / LS $ 670.00 $ 1,000.00 / LS $ 1,000.00 502.1- T Diameter Fiberglass Sanitary Sewer Manhole with B Prefab Invert $ 6,200.00 / LS $ 12,400.00 $ 9,000.00 / LS $ 18,000.00 502.10. 4" Sanitary Sewer Service Connection including 4 Wye, Cleanout, Pavement and C &G Repair $ 2,900.00 / LS $ 362,500.00 $ 3,500.00 / LS $ 437,500.00 502.10. 6" Sanitary Sewer Service Connection including 4 Wye, Cleanout, Pavement and C &G Repair $ 4,000.00 / LS $ 16,000.00 $ 3,800.00 / LS $ 15,200.00 8" SDR -35 PVC Sanitary Sewer by Open Cut, 507 Complete w/Embedment, Backfill & Pavement Repair $ 128.00 / LS $ 743,680.00 $ 110.00 /LS $ 639,100.00 Bid # 5472 3/4/2014 Description: WW Collection Improvement Around EXHIBIT 2 DESCRIPTION VENDOR VENDOR Jackson Construction Housley Group Principle Place of Business: Ft. Worth, TX Carrollton, TX 12" SDR -35 PVC Sanitary Sewer by Open Cut, 507 Complete w/Embedment, Backfill & Pavement Repair $ 150.00 / LS $ 68,550.00 $ 128.00 / LS $ 58,496.00 8" SDR -26 (160 psi) PVC sanitary Sewer by Open 507 Cut, Complete w/Embedment, Backfill & Pavement Repair $ 145.00 / LS I $ 43,065.00 $ 110.00 /LS1 /LS $ 32,670.00 Total Base Bid $ 2,562,447.00 $ 2,631,030.00 EXHIBIT 3 DRAFT MINUTES PUBLIC UTILITIES BOARD March 24, 2014 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, March 24, 2014 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, Phil Gallivan, Leonard Herring, and Barbara Russell Absent: Vice Chair Billy Cheek and Lilia Bynum Ex Officio Members: Howard Martin, ACM Utilities Absent: George Campbell City Manager OPEN MEETING: CONSENT AGENDA: 2. Consider recommending approval of IFB 5472 to Dickerson Construction Company, Inc. in the amount of $2,070,842.00 for the construction of the Wastewater Collection System Improvements around Eagle Drive and Congress Street project. Motion was made to approve item 2 by Board Member Gallivan with the second by Board Member Russell. The vote was 5 -0 approved. Adjournment 10:47 a.m. Exhibit 4 ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A PUBLIC WORKS CONTRACT FOR THE WASTEWATER COLLECTION SYSTEM IMPROVEMENTS AROUND EAGLE DRIVE AND CONGRESS STREET PROJECT FOR THE CITY OF DENTON ENGINEERING DEPARTMENT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (IFB 5472- AWARDED TO DICKERSON CONSTRUCTION COMPANY, INC. IN THE NOT -TO- EXCEED AMOUNT OF $2,070,842). WHEREAS, the City has solicited, received and tabulated competitive bids for the construction of public works or improvements in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and recommended that the herein described bids are the lowest responsible bids for the construction of the public works or improvements described in the bid invitation, bid proposals and plans and specifications therein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following competitive bids for the construction of public works or improvements, as described in the "Bid Invitations ", "Bid Proposals" or plans and specifications on file in the Office of the City's Purchasing Agent filed according to the bid number assigned hereto, are hereby accepted and approved as being the lowest responsible bids: BID NUMBER CONTRACTOR AMOUNT 5472 Dickerson Construction Company, Inc. $2,070,842 SECTION 2. The acceptance and approval of the above competitive bids shall not constitute a contract between the City and the person submitting the bid for construction of such public works or improvements herein accepted and approved, until such person shall comply with all requirements specified in the Notice to Bidders including the timely execution of a written contract and furnishing of performance and payment bonds, and insurance certificate after notification of the award of the bid. SECTION 3. The City Manager is hereby authorized to execute all necessary written contracts for the performance of the construction of the public works or improvements in accordance with the bids accepted and approved herein, provided that such contracts are made in accordance with the Notice to Bidders and Bid Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein. SECTION 4. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under Bid 5472 to the City Manager of the City of Denton, Texas, or his designee. SECTION 5. Upon acceptance and approval of the above competitive bids and the execution of contracts for the public works and improvements as authorized herein, the City Council hereby authorizes the expenditure of funds in the manner and in the amount as specified in such approved bids and authorized contracts executed pursuant thereto. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2014. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Consent Agenda B AGENDA INFORMATION SHEET AGENDA DATE: April 15, 2014 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Vance Kemler at 349 -8044 ACM: Bryan Langley aL SUBJECT Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the purchase of temporary mobile compressed natural gas (CNG) fueling services for the Solid Waste and Recycling Departments, which are available from only one source and in accordance with Chapter 252.022 of the Texas Local Government Code such purchases are exempt from the requirements of competitive bidding; and providing an effective date (File 5464- awarded to Ultimate CNG, LLC in the three (3) year not -to- exceed amount of $120,000). The Public Utilities Board recommends approval (6 -0). FILE INFORMATION On June 11, 2013, the City Council directed the Solid Waste Department to develop a Public - Private partnership for a public access natural gas fuel station to add natural gas as an alternative transportation fuel. This station will be used for a portion of the Solid Waste and Recycling Services vehicle fleet and other City department vehicles in the future. The attached fueling services agreement will allow the Solid Waste Department to temporarily obtain compressed natural gas fueling services from Ultimate CNG, LLC and begin using the nine natural gas trucks that have been recently delivered (Exhibit 1 -Memo, Exhibit 2- Agreement). Ultimate CNG, LLC's state of the art mobile fueling truck (Fuel Mule) is capable of transporting and dispensing 600 diesel gallon equivalent (DGE) of compressed natural gas on each trip. Ultimate CNG, LLC is very experienced in the mobile compressed natural gas fueling industry and provides mobile fueling of compressed natural gas refuse trucks in Texas and other states. Staff has met with this provider and discussed our temporary need to fuel these vehicles until the permanent station is constructed during 2014. Using the new compressed natural gas vehicles will provide increased stability of transportation expenses and greatly improve air quality through reduced exhaust and fueling emissions. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On January 27, 2014, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. Agenda Information Sheet April 15, 2014 Page 2 RECOMMENDATION Approve the purchase of temporary mobile compressed natural gas (CNG) fueling services for the Solid Waste and Recycling Departments from Ultimate CNG, LLC in the three (3) year not - to- exceed amount of $120,000. PRINCIPAL PLACE OF BUSINESS Ultimate CNG, LLC Oakton, VA ESTIMATED SCHEDULE OF PROJECT Twice weekly fuel delivered will be made to the City of Denton Landfill until such time that the City determines that the services are no longer necessary. FISCAL INFORMATION Payment for these services will be funded from the following Solid Waste budget fueling account numbers: 660100.7842 (Residential Collection) 660200.7842 (Commercial Collection) 660600.7842 (Disposal and Processing Operations) FXHIRITC Exhibit 1: Sole Source Memo Exhibit 2: Fueling Services Agreement Exhibit 3: Public Utilities Board Draft Minutes Exhibit 4: Ordinance Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance Exhibit 1 Date: January 22, 2014 To: Elton Brock, Purchasing Agent From: Vance Kemler, General Manager -Solid Waste & Recycling Services Subject: Temporary Compressed Natural Gas (CNG) Fueling Services — FY2013 -2014 The development of a permanent natural gas fueling station to provide CNG fuel for the City of Denton Solid Waste Fund and other city departments that will have CNG fueled fleet vehicles will not be completed until late in 2014. The Solid Waste and Recycling Services operation has recently received eight CNG refuse and recycling collection trucks and one light duty CNG truck. Eight additional CNG fueled collection trucks are scheduled to be delivered prior to the new natural gas fueling station begins operation. City Staff has searched for temporary mobile CNG fueling services in the region to provide fueling of our refuse and recycling collection trucks until the permanent natural gas fueling station begins operation. There are several companies in the region that provide mobile fueling for liquid fuels (diesel, gasoline, propane, LNG). There is only one service provider, Ultimate CNG, in the region that provides mobile CNG fueling. The use of a temporary mobile CNG fueling service is a more economical solution for providing CNG on a short -term basis than purchasing our own mobile fueling equipment. The Solid Waste and Recycling services staff recommends the use of Ultimate CNG as our temporary service provider for CNG fueling of our CNG fueled vehicles until the permanent natural gas fueling station is opened. Vance Kemler General Manager -Solid Waste & Recycling Services EXHIBIT ULTIMATE CNG, ILC 3t85 YYhe811aIkd Farms Drive {]ak�n,�� ~ ^Iia,22124 COUNTY OF DENTON Q���� OF TEXAS )( )( Deliveries made tip to four timgLp—er week of compressed natural ga . s (CNG) into tile City of Denton, CNG� fueled vehicles at the Fueling Site, using commercially reasonable efforts, This contract is in the arnount not to exceed $120,000 Fueling Site., At file City of Denton Solid Waste facility at 1527 S. Mayhill Street, Denton, Texas, Buyer shall provide no-cost access to the Fueling Site as necessary for UCNG to fulfill its obligations under this Agreement, including pat-king for UCNG equipment as necessary throughout the term of this Agreement. Source of CNG: Buyer understands that U`CNG is dependent upon ATMOS Energy for Seller's access to a natural gas supply at a pressure of at least 100 PSI and not in excess of 300 PSI received, As such, Buyer acknowledges that UCNG is only able to supply CNG under this agreement to the extent it can obtain it. UCNG shall have no obligation to deliver more CNG than it is able to obtain, using commercially reasonable efforts, and no damages shall accrue because of such inability, Total Cost to the C LINOI`Denton, Texas. The total cost for all natural gas dispensed into City of Denton, Texas natural gas vehicles, as well as all services provided by UCNG, shali consist of three components, These shall be, 1) The Cost of the natural gas provided to fuel the Buyer's CNG vehicles. 2) Transport Fee —Fee for transporting UCNG equipment for each visit including gas from Source Site to Fueling 3) Vehicle On-Site Fueling Fee —Per vehicle fueling fee. Cost i)f and Title to.ENG. This agreement is for natural gas and for all services to deliver such gas into the CNG vehicles used by tile City of Denton, Texas. The cost of the natural gas required tinder this proposal shall be $2,29 per Gasoline Gallon Equivalent (GGE), Title to the natural gas supplied by UCNG under this agreement shall transfer to Buyer when delivered into the City of Denton CNO vehicle tanks. Consideration for UCNG services: A Transport Fee of $0.59 cents per GGE for the first 400 GGE of consumption across all Vehicles for which natural gas /xdelivered. a minimum usage wf350GGE per DCNG trip 10 the City of Denton Fueling Site obxIl be established as part of this agreement, The Transport Transport Fee x6u|) v� reduced to$O.4V cents per QG8 for all [3GE`adwU �� v�»edin�xouanof400GEparv|mlt /\ Vehicle (]o-S(k: Fueling Fee of$l4.08 for each CNG vehicle, that requires 3OGGBor more tofill and $y.U0 for each CNG vehicle that requires |xoa than 3O(]82tufi||. These three all-inclusive price components include all UCNG costs to deliver CNG into City of Denton CNG Use to the Fueling Site (n Denton, Texas from Dallas, Texas, w Capital depreciation, maintenance and wear and tear oil all components of the UCNG FnelMulerM gas dryer /¢ Uaorou Site and other 0CNG equipment required to deliver natural gas to City ofDenton C]�G v"eh|u|uo at tile Fueling Sit*. w P Insurance and all other associated UCNG mobile fueling costs UCNG FuelMuleu,' Operator and HAZMAT drivers' salary and benefits during such exclusive use listed above. EXHIBIT (M) ULTIMATE CNG, LLC 9185 Wheatland Farms Drive u4u0oYirginia, 22124 Time for Performance: OCNG Services under this Agreement obuO onmoneuoe during the month o[March 2o1/, and shall continue until such time ux the City of Denton Solid Waste Department determines that these services provided by UCNG are no longer necessary. A one-morith advance notice for service termination by the City of Denton is required. Buyer may terminate this Agreement without cause upon thirty day's written `^~^ |oe made 0oSupplier, Invoices anLI Payinent processing: ' The Buyer review, inspection, and processing procedures ƒbrinvoioaa .' "`d."`"^//"yuuwvur/y\3o/oxy000nrvoouipcot/ovo/uos,mutorim[m`o,merv[oeo. lt[m the intention uf the Buyer to make payment oolater than thirty days after receipt of valid invoices for which items or services have been rucuived The thidyday processing ped � mdriovoicouwi[lbe&inonthedute1hoimvoioe(arecmivedoxtbedu1odheiieomor ^ non/icem are received, whichever date is |atur Compliance with health, safetv and environmental regulations: lie Supplier shall comply fully with all applicable federal, state, and local health, safety, and environmental laws, ordinances, rules and regulations in the performance of the services, including but not limited to those promulgated by tile Buyer and by the Occupational Safety and Health Administration (OSHA). In case of conflict, the most stringent safety requirement shall govern. The Supplier shall indernnif� and hold the Buyer harmless from and against all claims, demands, suits, actions, judgments, fines, penalties and liability of every kind arising frorn tile breach of the Supplier's obligations under this paragraph. Environmental Protection: The Respondent ebaJ| be in onmp|lauco with all applicable standards, orders, or regulations issued pursuant to tile mandates of the Clean Air Act (42L/.8.C. 8740l v/soy.) and th*FodomK\�utar Po\|mdu/�Cuo�ml/�nt auummnd�d`83U.�.C.§ ]25l c�xo�.). ` THE SUPPLIER SHALL DEFEND (AT THE OPTION OF THE —C—ITY)--INDEMNIFY, AND HOLD Indemnification - HULU[8E BDlE8'ITS SUCCESSORS, ASSIGNS, OFFICERS, EMPLOYEES AND ELECTED OFFICIALS 14ARMLESS FROM AND AGAINST ALL INDEMNIFIED CLAIMS DIRECTLY ARISING OUT OF' [NCIDB0'rTO, CONCERNING 0{R880LTrNG FROM THE FAULT 0FTHE SUPPLIER, OR THE 8DyPLJBB`S AGENTS, EMPLOYEES OR SUBCONTRACTORS, IN THE PERFORMANCE OF THE S0PPLI8R`S OBLIGATIONS UNDER THE AGREEMENT. NOTHING HEREIN SHALL BE )8Ek~~ TO LIMIT RIGHTS OF THE BUYER QKTHE SUPPLIER AGAINST ANY THIRD PARTY WHO MAY B~ LIABLE FOR AN INDEMNIFIED CLAIM. During the performance of tile Services tinder the Agreement, Supplier shall maintain the following insurance with an insurance company |ioouoeJ or authorized to do bmo/nowa in the State of Texas by tbo State Insurance Cummiau|uo or any successor agency that has a rating with 8co1 }late Carriers of at least an A- or above: • Comprehensive General Qohi]hv Insurance with bodily injury limits of not less than $l`O0O,08D for each m000rrunue and not |*eo than $1'000'000 ill the aggregate, and with y/opmrb/ damage limits of not \eom than $lO0'O0D for each occurrence and not less than $25U'0U0(o the aggregate. • Automobile Liability Insurance with bodily injury |imde of not |eoo than $500,000 for each person aoduo{ |oumthan$5O0, QOU for each accident, and iUh property damage ]|m[1m of not \omx than $100,000 for each «Worker's Compensation Insurance in accordance with statutory requirements, and Employers' Liability EXHIBIT (9) ULTIMATE CNG, LLC 9185 Wheatland Farms Drive L/aklOD, Virginia, 22124 Jurisdiction and Venue: This Agreement is made under and shall be governed by the laws of the State of Texas, including, when upy1iomb|e` the Uniform Commercial Code as adopted in Texas, \/.T.C.A., Bus. & Comm. Code, Chapter l, excluding any rule or principle that vvoo|d refer 0m and apply thu muhntaudvo \mv of another state or jurisdiction. All |xmuam udniug from this /\gr000zuut o6u|| he resolved in the District Courts of Denton County, Texas and the parties agree to submit to the exclusive personal,jurisdiction and venue of such courts, Right to Audit: Buyer shall have, tile right to audit and make copies oC the books, records and computations pertaining to the Agreement. The Guonkz shall retain such books, records, documents, invu|mro and other evidence pertaining to the Agreement period and two years dzoreuftor, except if an audit is in progress or audit findings are yet unresolved, in which uuau records shall be kept until all audit tasks are completed and resolved. 7hoao books, reumxdo` documents and other evidence shall be available, within ten (LO) business days of written request. Further, the Supplier shall also require all Subcontractors to retain all books, records, documents and other evidence pertaining to the Agreement, and to allow the Buyer similar access to those documontm, All books and records will be made available within ufiftv-mile radius of tile City oCDenton. The cost nf the audit will 6e borne by the Buyer unless the audit reveals ail overpayment n[2%orgreater. Ifoo overpayment of%%urgreater occurs, the reuuonoh\o cost of the audit, including any travel costs, o8uU be borne by the Supplier which must be payable within fifteen (15) business days o[ receipt oJmo invoice. Agreed and accepted this ________ day o[ CITY OFD2NTCN,TEXAS ATexas Municipal Corporation Es George CCampbell City Manager ATTEST JENNIFER T9ALTERS' CITY SECRETARY APPROVED ASTO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY LIN 2014. ULTIMATE CNG,LLC }\ Limited Liability Company By: Dennis Pick, CEO 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 Exhibit 3 DRAFT MINUTES PUBLIC UTILITIES BOARD January 27, 2014 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, January 27, 2014 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, Phil Gallivan Barbara Russell and Leonard Herring Absent: Lilia Bynum Ex Officio Members: Howard Martin, ACM Utilities Absent: George Campbell City Manager OPEN MEETING: CONSENT AGENDA: 6) Consider recommending approval of an Agreement by and between Ultimate CNG LLC a single source provider, and the City of Denton, Texas (Solid Waste Department) to provide temporary mobile compressed natural gas (CNG) fueling services in the amount not- to exceed $120,000. Board Member Herring pulled this item and asked why this was single source, wouldn't there be other suppliers for the gas. Vance Kemler, General Manager Solid Waste, answered this is for a mobile fueling system. The construction industry has trucks with tanks and gas. There are none that have that kind of set up for CNG. CNG vehicles are not used in the construction business that often. This company is the only one that works in this area. In the years to come there will probably be more options. Herring then asked based on the price of the product and deliverability are they a good company. Kemler agreed. Gallivan stated he thought this was a rental, the agreement states purchase. Kemler stated it is purchase of the fuel. Solid Waste will buy the fuel and they are the transporter, dispenser and will fill up the vehicles. It is a service agreement for them to fill up the trucks. Motion was made to approve item 6 by Board Member Herring with the second by Board Member Cheek. The vote was 6 -0 approved. Adjournment 10:43 a.m. Exhibit 4 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR, AUTHORIZING, AND APPROVING THE PURCHASE OF TEMPORARY MOBILE COMPRESSED NATURAL GAS (CNG) FUELING SERVICES FOR THE SOLID WASTE AND RECYCLING DEPARTMENTS, WHICH ARE AVAILABLE FROM ONLY ONE SOURCE AND IN ACCORDANCE WITH CHAPTER 252.022 OF THE TEXAS LOCAL GOVERNMENT CODE SUCH PURCHASES ARE EXEMPT FROM THE REQUIREMENTS OF COMPETITIVE BIDDING; AND PROVIDING AN EFFECTIVE DATE (FILE 5464 - AWARDED TO ULTIMATE CNG, LLC IN THE THREE (3) YEAR NOT -TO- EXCEED AMOUNT OF $120,000). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as described in the "File" listed hereon, and on file in the office of the Purchasing Agent, and the license terms attached are hereby approved: FILE NT TMRFR VFNTXIR A M(1T TNT 5464 Ultimate CNG, LLC $120,000 SECTION 2. The City Council hereby finds that this bid, and the award thereof, constitutes a procurement of items that are available from only one source, including, items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; and need not be submitted to competitive bids. SECTION 3. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 4. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 5. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 5464 to the City Manager of the City of Denton, Texas, or his designee. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2014 MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY :• APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Consent Agenda C AGENDA INFORMATION SHEET AGENDA DATE: April 15, 2014 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Terry Kader at 349 -8729 ACM: Bryan Langley aL SUBJECT Consider adoption of an ordinance accepting competitive proposals and awarding a contract for the purchase of three (3) mid -mount mowers and two (2) wide area mowers for the City of Denton Parks Department ; providing for the expenditure of funds therefore; and providing an effective date (RFP 5483- awarded to Ag -Power Inc. in the amount of $131,070.50). FILE INFORMATION This item is for the purchase of three (3) John Deere Model 997 mid -mount mowers and two (2) John Deere Model 1600 wide area mowers which were approved in the Fiscal Year 2013 -2014 Budget. Four (4) of these pieces of equipment are replacements that will be funded through Certificate of Obligation accounts. One (1) wide area mower is a fleet addition that will be funded through the department's operating account. The three (3) mid -mount mowers will be replacing two (2) 2008 Grasshopper Model 928D mowers and one (1) 2009 Grasshopper Model 430D mower that have met their replacement criteria based on age and maintenance cost. The one (1) wide area mower that will be replaced is a 2007 Toro Model 3505 mower that has met the replacement criteria based on age and maintenance cost. The other wide area mower is a fleet addition. All mowers being replaced will be sent to auction once the replacements have been received. Requests for Proposals were sent to eight (8) prospective suppliers of this item. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. Four (4) proposals were received and evaluated based upon the published criteria of delivery timeframe and price (Exhibit 1). The proposer's original pricing is shown on Exhibit 2. A Best and Final Offer was conducted which resulted in a cost savings of $1348 (Exhibit 3). Therefore, based on the evaluation criteria, Ag -Power Inc. received the highest evaluated score and was determined to be the best value for the City. RECOMMENDATION Award the purchase of three (3) John Deere 997 mid -mount mowers and (2) John Deere 1600 wide area mowers to Ag -Power Inc. in the amount of $131,070.50. PRINCIPAL PLACE OF BUSINESS Ag -Power Inc. McKinney, TX Agenda Information Sheet April 15, 2014 Page 2 ESTIMATED SCHEDULE OF PROJECT The purchase and delivery of the mid -mount and wide area mowers will occur within 30 days of purchase order issuance. FISCAL INFORMATION The (3) mid -mount mowers and one (1) wide area mowers will be funded from Certificate of Obligations accounts: 810178468.1355.30100 - $13,023.50 810172468.1355.30100 - $26,047.00 810171468.3155.30100 - $46,000.00 One (1) wide are mower will be funded from operating account: 810157444.1355.30100 - $46,000.00 Requisition 4 118406 has been entered in the Purchasing software system for the mowers. EXHIBITS Exhibit 1: Evaluation /Ranking Sheet Exhibit 2: Pricing Tabulation Exhibit 3: Best and Final Offer (BAFO) Pricing Sheet Exhibit 4: Ordinance Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance EXHIBIT 1 EVALUATION AND RANKING RFP 5483 - Ranking Sheet for MOWERS Ranking 1 2 3 4 Respondent's Name: AG- Power, Inc. Austin Turf & Tractor Lawn -Land Moridge Mfg. Turf Principal Place of Business McKinney, TX Farmers Branch, TX Denton, TX Moundridge, KS CONTRACT TOTAL (Purchase Price) $131,070.50 $136,815.95 $138,622.00 $138,784.00 90% Price 90.00% 86.22% 85.10% 85.00% 10% Delivery 9.00% 8.67% 9.00% 9.00% 100% TOTAL EVALUATED SCORE 99.00% 94.89% 94.10% 94.00% * Vendor pricing is for evaluation purpose ONLY as they did not provide pricing for every item. EXHIBIT 2 RFP 5483 - Pricing Tabulation for MOWERS Product Proposal Pricing: * Moridge Mfg.Turf did not bid on this item. Highest proposed price inserted for evaluation purposes ONLY. AG -Power Inc. Austin Turf& Tractor Lawn -Land Moridge Mfg. Turf Principal Place of Business McKinney, TX Farmers Branch, TX Denton, TX Mountridge, KS Item QTY UOM Product Description Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price Secti 1 2 EA John Deere Model 1600 $ 46,000.00 $ 92,000.00 $ 47,056.33 $ 94,112.66 $ 48,785.00 $ 97,570.00 $ 48,785.00 $ 97,570.00 2 2 1 EA Canopy SECTI 3 3 EA John Deere Model 997 Diesel 72" Deck $ 12,500.00 $ 38,917.50 $ 13,454.15 $ 40,362.45 $ 12,995.00 $ 38,985.00 $ 13,110.00 $ 39,330.00 4 3 EA Canopy $ 225.00 $ 675.00 $ 399.85 $ 1,199.55 $ 330.00 $ 990.00 $ 452.00 $ 11356.00 5 3 EA Mulch Kit $ 298.50 $ 895.50 $ 380.43 $ 1,141.29 $ 359.00 $ 1,077.00 $ 176.00 $ 528.00 Total $ 132,488.00 $ 136,815.95 $ 138,622.00 $ 138,784.00 * Moridge Mfg.Turf did not bid on this item. Highest proposed price inserted for evaluation purposes ONLY. EXHIBIT 3 RFP 5483 - Pricing Tabulation including BAFO for MOWERS Product Proposal Pricing: * Moridge Mfg. Turf did not bid on this item. Highest proposed price inserted for evaluation purposes ONLY. AG -Power Inc. Austin Turf & Tractor Lawn -Land Moridge Mfg. Turf Principal Place of Business McKinney, TX Farmers Branch, TX Denton, TX Mountridge, KS Item QTY UOM Product Description Extended Price BAFO Extended Price BAFO Extended Price BAFO Extended Price BAFO Secti 1 2 EA John Deere Model 1600 $ 91,280.00 $ 92,000.00 $ 94,112.66 $ 94,112.66 $ 97,570.00 $ 97,570.00 $ 97,570.00 $ 97,570.00 2 2 1 EA Canopy $ 650.00 - S ECTI 3 3 EA John Deere Model 997 Diesel 72" Deck $ 38,917.50 $ 37,500.00 $ 40,362.45 $ 40,362.45 $ 38,985.00 $ 38,985.00 $ 39,330.00 $ 39,330.00 4 3 EA Canopy $ 675.00 $ 675.00 $ 1,199.55 $ 1,199.55 $ 990.00 $ 990.00 $ 1,356.00 $ 1,356.00 5 3 EA Mulch Kit $ 895.50 $ 895.50 $ 1,141.29 $ 1,141.29 $ 1,077.00 $ 1,077.00 $ 528.00 $ 528.00 Total Cost of Purchase $ 131,070.50 $ 136,815.95 $ 138,622.00 $ 138,784.00 * Moridge Mfg. Turf did not bid on this item. Highest proposed price inserted for evaluation purposes ONLY. Exhibit 4 ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE PROPOSALS AND AWARDING A CONTRACT FOR THE PURCHASE OF THREE (3) MID-MOUNT MOWERS AND TWO (2) WIDE AREA MOWERS FOR THE CITY OF DENTON PARKS DEPARTMENT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (RFP 5483- AWARDED TO AG -POWER INC. IN THE AMOUNT OF $131,070.50). WHEREAS, the City has solicited, received and evaluated competitive sealed proposals for the purchase of wide area mowers and mid -mount tractors for the City of Denton Parks Department in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and reviewed and recommended that the herein described proposals are the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The items in the following numbered request for proposal for materials, equipment, supplies or services, shown in the "Request for Proposals" on file in the office of the Purchasing Agent, are hereby accepted and approved as being the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals. RFP NUMBER CONTRACTOR AMOUNT 5483 Ag -Power Inc. $131,070.50 SECTION 2. By the acceptance and approval of the above numbered items of the submitted proposals, the City accepts the offer of the persons submitting the proposals for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Proposal Invitations, Proposals, and related documents. SECTION 3. Should the City and person submitting approved and accepted items and of the submitted proposals wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the proposals, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Proposal and related documents herein approved and accepted. SECTION 4. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under the RFP 5483 to the City Manager of the City of Denton, Texas, or his designee. SECTION 5. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved proposals. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2014. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Consent Agenda D AGENDA INFORMATION SHEET AGENDA DATE: April 15, 2014 DEPARTMENT: City Manager's Office CM: George C. Campbell, City Manager SUBJECT: Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and Denton Parks Foundation; authorizing the expenditure of funds; and providing for an effective date. BACKGROUND: This agreement allows for the total expenditure of $1,350 from Council Contingency Funds. (Mayor Burroughs $500, Council Member Gregory $250, Council Member Engelbrecht $500 and Council Member Hawkins $100) Key provisions of the agreement include: Funds shall be used by the Organization for the cost of establishing a new park named Splash Park. FISCAL INFORMATION Funding for the contract will come from Council contingency fund accounts. Respectfully,su n ttc George C. Campbell City Manager Prepared by: Linda Holley Senior Executive Assistant sAlegal \our documentAordinanceAMsery agr- denton parks foundation.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS AND DENTON PARKS FOUNDATION; AUTHORIZING THE EXPENDITURE OF FUNDS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton hereby finds that the Agreement between the City and Denton Parks Foundation, attached hereto and made a part hereof by reference (the "Agreement "), serve a municipal and public purpose and is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings set forth in the preamble of this Ordinance are incorporated by reference into the body of this Ordinance as if fully set forth herein. SECTION 2. The City Manager, or his designee, is hereby authorized to execute the Agreement and to exercise all rights and duties of the City under the Agreement, including authorizing and ratifying the expenditure of funds. SECTION 3. This Ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the day of )2014. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY'S ATTORNEY BY i y SALegal \Our Documents \Contracts \14 \Sery Agr - Parks Foundation Splash Park.doc SERVICE AGIZEEMENT i 1 DENTON PARKS FOUNDATION This Agreement is hereby entered into by and between the City of Denton, Texas, a home rule municipal corporation, hereinafter referred to as "City ", and Denton Parks Foundation, a not for profit corporation, hereinafter referred to as "Foundation ". WHEREAS, City has determined that the proposal for services merits assistance and can provide needed services to citizens of City and has provided funds in its budget for the establishment of a new park called Splash Park; and WHEREAS, this Agreement serves a valid municipal and public purpose and is in the public interest; NOW, THEREFORE, the parties hereto mutually agree as follows: 1. SCOPE OF SERVICES Foundation shall, in a satisfactory and proper manner, perform the following tasks, for which the monies provided by City may be used: the funds being provided will go towards the costs of establishing a new park named Splash Park. II. OBLIGATIONS OF FOUNDATION In consideration of the receipt of funds from City, Foundation agrees to the following terms and conditions: A. One Thousand, Three Hundred Fifty Dollars /100 ($1,350.00) shall be paid to Foundation by City to be utilized for the purposes set forth in Article 1. B. Foundation will maintain adequate records to establish that the City funds are used for the purposes authorized by this Agreement. C. Foundation will permit authorized officials of City to review its books at any time. D. Upon request, Foundation will provide to City its By Laws and any of its rules and regulations that may be relevant to this Agreement. E. Foundation will not enter into any contracts that would encumber City funds for a period that would extend beyond the term of this Agreement. F. Foundation will appoint a representative who will be available to meet with City officials when requested. Page 1 S:\Lcga[\Our Documents\Contracts\l4\Sery Age - Parks Foundation Splash [lark doc III. TIME OF PERFORMANCE The services funded by City shall be undertaken and completed by Foundation within the following time frame: The term of this Agreement shall commence on the effective date and terminate September 30, 2014, unless the contract is sooner terminated under Section VII "Suspension or Termination". IV. PAYMENTS A. PAYMENTS To FoUNDATION. City shall pay to Foundation the sum specified in Article 11 after the effective date of this Agreement. B. EXCESS PAYMENT. Foundation shall refund to City within ten (10) working days of City's request, any sum of money which has been paid by City and which City at any time thereafter determines: has resulted in overpayment to Foundation; 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. V. EVALUATION Foundation agrees to participate in an implementation and maintenance system whereby the services can be continuously monitored. Foundation agrees to make available its bank statements for review by City at City's discretion. In addition, Foundation agrees to provide City the following data and reports, or copies thereof: A. An explanation of any major changes in program services. B. To comply with this section, Foundation agrees to maintain records that will provide accurate, current, separate, and complete disclosure of the status of funds received and the services performed under this Agreement. Foundation's record system shall contain sufficient documentation to provide in detail full support and justification for each expenditure. Foundation agrees to retain all books, records, documents, reports, and written accounting procedures pertaining to the services provided and expenditure of funds under this Agreement for five years. C. Nothing in the above subsections shall be construed to relieve Foundation of responsibility for retaining accurate and current records that clearly reflect the level and benefit of services provided under this Agreement. Page 2 S:\Legal \Our Documents \Contracts \l4 \Sere Agr - Parks Foundation Splash Park.doc VI. MEETINGS Minutes of all meetings of Foundation's governing body shall be available to City within ten (10) working days of approval. VII. TERMINATION The City may terminate this Agreement for cause if Foundation violates any covenants, agreements, or guarantees of this Agreement, the Foundation's insolvency or filing of bankruptcy, dissolution, or receivership, or the Foundation's violation of any law or regulation to which it is bound under the terms of this Agreement. The City may terminate this Agreement for other reasons not specifically enumerated in this paragraph. VIII. EQUAL OPPORTUNITY AND COMPLIANCE WITH LAWS A. Foundation shall comply with all applicable equal employment opportunity and affirmative action laws or regulations. B. Foundation will furnish all information and reports requested by City, and will permit access to its books, records, and accounts for purposes of investigation to ascertain compliance with local, State and Federal rules and regulations. C. In the event of Foundation's noncompliance with the nondiscrimination requirements, the Agreement may be canceled, terminated, or suspended in whole or in part, and Foundation may be barred from further contracts with City. IX. WARRANTIES Foundation 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 bank statements heretofore requested by City and furnished to City, are complete, accurate and fairly reflect the financial conditions of Foundation on the date shown on said report, and the results of the operation for the period covered by the report, and that since said data, there has been no material change, adverse or otherwise, in the financial condition of Foundation. C. No litigation or legal proceedings are presently pending or threatened against Foundation. S: \1 -egal \Our Documents \Contracts \14 \Scry Agr - Parks Foundation Splash Park doc D. None of the provisions herein contravenes or is in conflict with the authority under which Foundation is doing business or with the provisions of any existing indenture oragreement of Foundation. E. Foundation 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. F. None of the assets of Foundation are subject to any lien or encumbrance of any character, except for current taxes not delinquent, except as shown in the bank statements furnished by Foundation to City. 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. X. 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 provide that another method shall be used. B. 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 modifications 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. C. Foundation shall notify City of any changes in personnel or governing board composition. XI. INDEMNIFICATION To the extent authorized by law, the Foundation agrees to indemnify, hold harmless, and defend the City, its officers, agents, and employees from and against any and all claims or suits for injuries, damage, loss, or liability of whatever kind or character, arising out of or in connection with the performance by the Foundation or those services contemplated by this Agreement, including all such claims or causes of action based upon common, constitutional or statutory law, or based, in whole or in part, upon allegations of negligent or intentional acts of Foundation, its officers, employees, agents, subcontractors, licensees and invitees. XII. CONFLICT OF INTEREST A. Foundation 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 performance of services required to be performed under this Agreement. Foundation further Page 4 S: \Legal \Our Documen1s \Contrac1s \l4 \Sery Agr - Parks Foundation Splash Park.doc 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. Foundation further covenants that no member of its governing body or its staff, subcontractors or employees shall possess any interest in or use his/her position for a purpose that is or gives the appearance of being motivated by desire for private gain for himself /herself, or others; particularly 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 personal interest or the interest in any corporation, partnership, or Foundation in which he has direct or indirect interest. XIII. NO`T'ICE Any notice or other written instrument required or permitted to be delivered under the terms of this Agreement shall be deemed to have been delivered, whether actually received or not, when deposited in the United States mail, postage prepaid, registered or certified, return receipt requested, or via hand - delivery or facsimile, addressed to Foundation or City, as the case may be, at the following addresses: CITY City of Denton, Texas Attn: City Manager 215 E. McKinney Denton, TX 76201 FOUNDATION Molly Tampke, Executive Director Denton Parks Foundation 601 E. Hickory, Suite B Denton, TX 76205 Either party may change its mailing address by sending notice of change of address to the other at the above address by certified mail, return receipt requested. XIV. MISCELLANEOUS A. Foundation 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 Foundation 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 consti- Page 5 S:\Legal \Our Doc uments \Contracts \14 \Sere Agr - Parks Foundation Splash [lark.doc tute or be construed in any way to be a waiver by City of any breach of covenant or default which may then or subsequently be committed by Foundation. 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 exhibits and attachments, constitutes the entire agreement between the parties hereto, and any prior agreement, assertion, statement, understanding, or other commitment occurring during the term of this Agreement or subsequent thereto, have any legal force or effect whatsoever, unless properly executed in writing, and if appropriate, recorded as an amendment of this Agreement. E. This Agreement shall be interpreted in accordance with the laws of the State of Texas and venue of any litigation concerning this Agreement shall be in a court of competent jurisdiction sitting in Denton County, Texas. IN WITNESS WHEREOF, the parties do hereby affix their signatures and enter into this Agreement as of the day of 20 JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY r� BY .. GEORGE C. CAMPBELL, CITY MANAGER IN S BY. MOLL TA 'KE EXECUTIVE DIRECTOR Page 6 Consent Agenda E AGENDA INFORMATION SHEET AGENDA DATE: April 15, 2014 DEPARTMENT: Police Ael ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager to make an application with the Texas Auto Burglary and Theft Prevention Authority for a grant to form a task force to focus on auto theft and auto burglary and take all other actions necessary to obtain and implement the program; and providing for an effective date. BACKGROUND The Texas Auto Burglary & Theft Prevention Task Force ( ABTPA) provides grants to county and municipal law enforcement agencies to form task forces to address and reduce the number of auto thefts and vehicle burglaries. The ABTPA is funded by a legislatively mandated annual assessment fee paid by individual automobile insurance policyholders. Auto theft task forces have been funded by this ongoing fee for the past 19 years. During that time, no personnel have been cut from existing task forces. The grants are for one year and require reapplying each year thereafter. ABTPA functions as the lead organization in a statewide network of law enforcement agencies, prosecutors, insurance industry representatives, local tax assessor - collectors, community organizations, and concerned citizen groups. In addition to providing guidance and oversight, the ABTPA awards grant funds to agencies, organizations, and concerned parties in an effort to raise public awareness of vehicle theft and burglary and implement education and prevention initiatives. The Department is asking for approval to apply for an ABTPA Task Force grant. At this time there are no task force auto theft or vehicle burglary personnel in Denton County. The grant will enable the Department to dedicate two new grant funded officers specifically to address auto theft and vehicle burglary problems in the city. The grant covers base salary, overtime costs, and benefits up to 25% of the base salary amount. The grant would also cover equipment needs for the officers. The grant would allow those officers to receive specialized training only available to task force officers. Task force officers would also have access to resources available with the National Insurance Crime Bureau along with the Dallas and Tarrant County task forces. The grant requirements stipulate an applying agency must have approval from City Council to submit an application. Agenda Information Sheet April 15, 2014 Page 2 OPTIONS 1. Council can direct staff to proceed by resolution with the grant application. 2. Council can direct staff to discontinue the application process. PRIOR ACTION/REVIEW None, New Item FISCAL IMPACT The grant application will be for approximately $270,000.00. This will include personnel costs, vehicles, and equipment. The City's cost for benefits will be $54,040.06. The grant requires a 20% match from the City in the amount of $54,000. This will be covered by salaries of staff involved in supervision, administration, and support not covered by the grant. This is already being spent in day to day operations. Respectfully submitted, Lee Howell Chief of Police Prepared by: Spa Scott Langford Investigations Lieutenant C users` 100861',��ili ad,iiii�lucEgl,iiricr(sc,t't',%%tii(l(,)a�'s'teiiipa)iars 1CXa_SL1LJt0bL1r2 I U I I d I I I Cftj) I 0C I 16011 Cd I ICHt 1011 (IOL: ORDINANCE NO. AN ORDINANCL OF THE CITY OF DE ION, TEXAS AUTHORIZING THE CITY MANAGERTO MAID; FAN APPLICATION WITFITHETEXAS AUTO BURGLARY AND THEFT PREVENTION AUTHORITY FOR A GRANT TO FORM A TASK FORCE TO FOCUS ON AUTOTHEFTACT AUTO BURGLARY ANDTAKE ALL OTH.ER ACr LION S NECESSARYLCD OBTAIN AND IMPLt,MEi\"F'I' LIP .PROGI�— AMI AND PROVIDING FOR AN EFFECTIVEDATE. WHEREAS, the City ol "Denton, 'I e- is concerned with the reduction of auto theft and MuO burglary crimes which adversely affect our COMMUnity'. and WlIEREAS, the City of Denton, Texas, by and throi-wh the City of Denton Police Department currently investigates auto theft and auto burglary crimes and expends resources and personnel for these investigations to protect the citizens of Denton and their property from these crin-res-, and WH.F.REAS, the City ol'Denton, Texas. wishes to apply thrOUgh the Texas Auto BUrglary and '.['heft prevention Authority for a grant to form a task force to focus on aUtO theft and auto hur,glary: and WIIERI_1,.'AS, the Texas Auto Burolary and Theft Prevention Authority requires the appropriate certifications and the City Council deems it in the public interest to authorize the City Manaocr to CXCCLItC as grant cagyreernent, NOW."I'HEREFORE, TFIE COLJN(_JL OFTHJ CITY OF DENTON I IEREBY ORDAINS: SECTION 1. The City Connell of the City of Denton, Texas, authorizes the City Manager to sigm and submit agyrant application to the 'rexas Auto Burglary anti `l Prevention Authority and all appropriate officials thereof" together with all necessary certifications, (_)rant aoreerrients and other docunients, to obtain as (Yrant Under the Texas Auto Burglary and Theft Prevention Affll'101-11V, The J)Lirvose of the urant is to form as task force to focus on auto theft and auto bUndary. The City Manauer is authorized to take all other actions necessary tc) execute an aL,reement and administer this -rant including execution of aoreements. SECTION '?, The City COUnCd Of the City of' Denton, Texas. authorizes the City Manager to sion and suhn-nit to the Texas Auto Bundary and Theft Prevention Authority and all appropriate apt 'lickal.s. thereof, amendments, chan(_,e orders, to-ether with all necessary c 'fi c, -1 erti ations, and other documents, under the supervision of the City Manw,cr. to handle all fiscal and administrative matters relating to the administration of the Texas Auto Burolary and Theft Prevention Authority Grant Pro<,ram and the task force to fOCUS on aUtO theft and burglary . ifit is funded and all other matters connected therewith, SECTION 3. The City Secretary is hereby authorized to furnish true, complete, and correct copies ofthis ordinance to all interested parties. SECTION 4. This ordinance sh-all become effective immediately upon its passage and approval. PASSED, AND APPROVED this the day of 2014. ATTEST: JENNIFER WALTERS, CITY SECRETARY m APPROVED AS TO LF'GA L, FORM: ANITA BURGESS, CI , I'Y ATTORNEY 1:3 y ii MARK A. BURROUGHS. MAYOR 11m,e 2 of I Consent Agenda F AGENDA INFORMATION SHEET AGENDA DATE: April 15, 2014 DEPARTMENT: Police ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager to make an application with the Texas Auto Burglary and Theft Prevention Authority for a grant to continue implementation of the Reduce Auto Theft Texas Program and take all other actions necessary to obtain and implement the program; and providing for an effective date. BACKGROUND The Texas Auto Burglary & Theft Prevention Task Force ( ABTPA) provides grants to county and municipal law enforcement agencies to form task forces to address and reduce the number of auto thefts and vehicle burglaries. The ABTPA is funded by a legislatively mandated annual assessment fee paid by individual automobile insurance policyholders. Auto theft task forces have been funded by this ongoing fee for the past 19 years. During that time, no personnel have been cut from existing task forces. The grants are for one year and require reapplying each year thereafter. ABTPA functions as the lead organization in a statewide network of law enforcement agencies, prosecutors, insurance industry representatives, local tax assessor - collectors, community organizations, and concerned citizen groups. In addition to providing guidance and oversight, the ABTPA awards grant funds to agencies, organizations, and concerned parties in an effort to raise public awareness of vehicle theft and burglary and implement education and prevention initiatives. The Department is asking for approval to apply for a continuation of the ABTPA Task Force Public Awareness grant. ABTPA has provided funds for a state -wide public awareness position for the past 19 years. The public awareness program provides information and training on methods to reduce vehicle related crime. This position works both statewide and locally. Denton benefits from having the resources of a state wide program based locally. The position has provided training to various local organizations such as the apartment managers group, local civic clubs, and several local events over the last year. The position will also be teaching at the department's basic police academy and will provide training for department officers. The grant covers base salary and benefits up to 25% of the base salary amount. The grant would also cover equipment needs. The grant requirements stipulate an applying agency must have approval from City Council to submit an application. Agenda Information Sheet April 15, 2014 Page 2 OPTIONS 1. Council can direct staff to proceed by resolution with the grant application. 2. Council can direct staff to discontinue the application process. PRIOR ACTION/REVIEW Council approved a previous ordinance on April 16, 2013, to make an application with the Texas Auto Burglary and Theft Prevention Authority for a grant to form a task force to focus on auto theft and auto burglary. FISCAL IMPACT The grant application will be for approximately $239,000.00. This will include personnel costs, vehicles, and equipment. The City's cost for benefits will be $17,864.00. The grant requires a 20% match from the City in the amount of $47,800.00. This will be covered by salaries of staff involved in supervision, administration, and support not covered by the grant. This is already being spent in day to day operations. Respectfully submitted, Lee Howell Chief of Police Prepared by: S- C'. Scott Langford Investigations Lieutenant c �usu,,;� 10086 1 %a p pdata, I oca1'4mc-ros0f1\\\ indokN s\tem po rarx, internet fi I u,1,contC11L0Ut I 00k 'I fO I kug,000 14-1 5granffor texasnutobLin-flar\ ORDINANCE NO. AN ORDINANCE OF TI-lE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO MAKE AN APPLICATION WITH J'HE TEXAS AUTO BURGLARY AND THEFTPREVENTION AUTHORITY FOR A GRANT TO CONTINUE IMPLEMENTATION OFTIJE REDUCE AUTO THEFT TEXAS PROGRAM ANDJ'AKE ALI, OTHER ACTIONS NECESSARY TO OBTAIN AND IMPI-l-,"IMEN'l-THE PROGRAM, AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS. the City of Denton, Texas, is concerned with the reduction of auto theft and auto burglary crimes which adversely affect our corniritinity; and WHEREAS, the City of Denton, Texas, by and through the City of Denton Police Department currently investigates auto theft and auto burglary crimes and expends resources and personnel for these investigations to protect the citizens of Denton and their property fron-1 these crimes, and Wt-lI-`[ZFAS, the City of Denton. Texas, wishes to apply through the Texas Auto Burglary and Theft Prevention Authority for a grant to continue the unplernentation of the Reduce Auto Theft 'l-cxas Program and specifically to -focus on auto theft and auto burglary prevention; and WI-Il-'REAS. the Texas Auto Burglary and Theft Prevention Authority requires the appropriate certifications and the City Council deerns it in the public interest to arithorize the City Manager to execute a grant agreement-, NOW, THEREFORE, JJ tE' COUNC [1. OF TI IF CITY Of, DFXFON HERE13 Y ORDAINS � S-1-"CITION I. The City Council of the City of Denton, Texas, -Authorizes the City Mana,L,,er to sign and submit a grant application to the Texas Auto Burglary and Theft Prevention Authority and all appropriate officials thereof, together with all necessary certifications, grant w-)reernents and other doCUrnentS, to obtain as grant under the Texas Auto IlUrglary and Theft Prevention Authority. The purpose of the ,rant is to continue implementation of' the Reduce Auto Theft Texas program to focus on auto theft and auto burglary prevention. The City. Manauer is authorized to take all other actions necessary to execute an agreement Lind administer- this orant including execution ofaareernents. S ' CT ION 2. "Hic City ouncil of the City of Denton. Texas, authorizes the City 4,111-l" Manager to sign and submit to the Texas Auto Burglary and Theft Prevention Authority and all appropriate officials thereof', amendments, change orders, together with all necessary certifications, and other documents. under the supervision of the City Manager, to handle all fiscal and administrative matters relating to the adn-unistration of the Texas Auto Burglary and Theft Prevention Authority Grant Program and the task force to focus on auto theft and burglary, ifit is funded and all other matters connected therewith. SECTION-'. The City Secretary is hereby aUtliorized to furnish true, complete, and correct copies ofthis ordinance to all interested parties. SECITION 4, This ordinance shall become eff'ective Immediately Upon its passage and approval. PASSED AND APPROVED this the day of 2014. ATTE'ST: JENNIFER WAL'IFRS, CITY SECRETARY ,BY: APPROVED AS TO LEGAL FORM: ANI'l I A. I.3tJRG.L'SS.1 CITY ATTORNEY BY: MARK A. BURROUGHS, MAYOR Paoc-, of 2. L, - Consent Agenda G AGENDA INFORMATION SHEET AGENDA DATE: April 15, 2014 DEPARTMENT: Parks and Recreation Department �l ACM: John Cabrales, Jr. SUBJECT Consider adoption of an ordinance approving a City sponsorship in an amount not to exceed $9,500 of in -kind services and resources for the Cinco de Mayo Celebration to be held in Quakertown Park on May 3, 2014; and providing an effective date. BACKGROUND The Cinco de Mayo Celebration requests the City participate as a sponsor at the same level as previous years. Various City departments have provided in -kind services and resources including staff, equipment, supplies, and facilities. The Cinco de Mayo Celebration is organized by community volunteers and anticipates approximately 5,000 attendees and 50 vendor booths. PRIOR ACTION /REVIEW This is the 27 1h Cinco de Mayo Celebration and the City has provided support for each year of the event. In the 2014 budget, City Council approved $8,000 in Hotel /Motel Occupancy Tax (HOT) funds for the Cinco de Mayo Celebration. FISCAL INFORMATION An estimated cost to provide the requested in -kind services and facilities is $9,250. The total cost of in -kind services, facilities, and HOT Funds is $17,250, for which the City is recognized as a sponsor at a level equal to the in -kind value. EXHIBITS 1. In -Kind Services and Resources Provided by City of Denton to Cinco de Mayo Celebration 2013 and Proposed 2014 2. Proposed Ordinance Respectfully submitted: tk- Ooj� Emerson Vorel, Director Parks and Recreation Prepared by: Janie McLeod Community Events Coordinator Exhibit 1 In -Kind Services and Resources Provided by City of Denton to Cinco de Mayo Celebration 2013 and Proposed 2014 City In -Kind City City Equipment & Waived HOT Total Costs Contribution Personnel Personnel Supplies Fees Funds* Reg. Time Overtime Parks & Recreation $480 $1,540 $150 $4,840 $7,010 Police $2,240 $2,240 Total In-Kind Services $9,250 HOT Funds $8,000 $8,000* Grand Total $480 $3,780 $150 $4,840 $8,000 $17,250 * HOT funds are approved in a separate budget. HOT Funds were included to show total of City's contribution to Cinco de Mayo Celebration. The proposed in -kind services for 2014 are estimated to be the same as 2013. IICODAD1DepartmentsTegaRour DocumentslOrdinances1141Cinco de Mayo Sponsorship. docx Exhibit 2 AN ORDINANCE APPROVING A CITY SPONSORSHIP IN AN AMOUNT NOT TO EXCEED $9,500 OF IN -KIND SERVICES AND RESOURCES FOR THE CINCO DE MAYO CELEBRATION TO BE HELD IN QUAKERTOWN . PARK ON MAY 3, 2014; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Cinco de Mayo Celebration is requesting the City of Denton to participate as a sponsor, at the same level as in previous years, for the event to be held in Quakertown Park on May 3, 2014; and WHEREAS, the City of Denton has sponsored up to $9,500 of in -kind services and supplies for the 2013 event which included police, park staff, equipment, supplies, and facilities; and WHEREAS, in exchange for the said support the City of Denton was considered to be an event sponsor of the said event at a sponsorship level equal to the value of the in -kind service tendered; and WHEREAS, the City Council finds that it is in the public interest and benefit to the citizens of the City of Denton to participate as a sponsor at a level not to exceed $9,500 of in- kind services for the event to be held in Quakertown Park on May 3, 2014; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council finds that it is in the public interest and benefit to the citizens of the City of Denton to participate as a sponsor at a level not to exceed $9,500 of in- kind services and supplies, including but not limited to police, park staff, equipment, supplies and facilities, and the said participation is hereby approved. SECTION 2. This ordinance shall be effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2014. MARK A. BURROUGHS, MAYOR IIC0DAD1Departments\Leg40ur DocumentslOrdinances1141Cinco de Mayo Sponsorship.docx Exhibit 2 ATTEST: JENNIFER WALTERS, CITY SECRETARY ad APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Agenda Information Sheet Consent Agenda H AGENDA DATE: April 15, 2014 DEPARTMENT: Denton Municipal Electric ACM: Howard Martin, 349 -8232 hV- SUBJECT Consider adoption of an ordinance finding that a public use and necessity exists to acquire (I) fee simple title to a 10.45 acre tract; (11) an electric utility easement encumbering a 0.802 acre tract, and (III) a temporary construction easement encumbering a 0.521 acre tract; all said lands located in the D. Culp Survey, Abstract No. 287 and the J. Coltart Survey, Abstract No. 288, City of Denton, Denton County Texas, as more particularly described on Exhibits "A ", "B ", and "C ", as attached to the Ordinance and made a part thereof, located generally at the intersection of Loop 288 and Kings Row (the "Property Interests "), for the public use of expansion, construction, maintenance, operation, and improvement of electric transmission and distribution lines, facilities, and structures, as well as sub - stations, (the "Project "); authorizing the City Manager or his designee to make an offer to (1) Brown Development I, Ltd., a Texas Limited Partnership; Julie Luelle Brown, Successor Independent Executor of the Estate of Gerald W. Brown, deceased; Julie Luelle Brown, Trustee of the Julie Luelle Brown Nonexempt Lifetime Trust under the Will of Gerald W. Brown; Julie Luelle Brown, Trustee of the Julie Luelle Brown Exempt Lifetime Trust under the Will of Gerald W. Brown; Gerald W. Brown, II, Trustee of the Gerald W. Brown, II Nonexempt Lifetime Trust under the Will of Gerald W. Brown; Gerald W. Brown, II, Trustee of the Gerald W. Brown, II, Exempt Lifetime Trust under the Will of Gerald W. Brown; Jason Edwin Brown, Trustee of the Jason Edwin Brown Nonexempt Lifetime Trust under the Will of Gerald W. Brown; Jason Edwin Brown, Trustee of the Jason Edwin Brown Exempt Lifetime Trust under the Will of Gerald W. Brown; Jinger Jeannine Brown, Trustee of the Jinger Jeannine Brown Nonexempt Lifetime Trust under the Will of Gerald W. Brown; Jinger Jeannine Brown, Trustee of the Jinger Jeannine Brown Exempt Lifetime Trust under the Will of Gerald W. Brown; Alicia Margaret Noel Brown, Trustee of the Alicia Margaret Noel Brown Nonexempt Lifetime Trust; Alicia Margaret Noel Brown, Trustee of the Alicia Margaret Noel Brown Exempt Lifetime Trust; Connie L. Brown, Independent Executor of the Estate of Robert M. Brown, deceased; Connie L. Brown, Trustee of the Robert M. Brown Exempt Family Trust; Connie L. Brown, Trustee of the Robert M. Brown Nonexempt Family Trust (collectively, the "Owner "); (2) successors in interest to the Owner of the Property Interests; or (3) any other owners of the Property Interests, as may be applicable, to purchase the Property Interests for the purchase price of Three Hundred Ninety Two Thousand, Nine Hundred Forty Five Dollars and 00 /100 ($392,945.00), and other consideration, as prescribed in the Contract of Sale (herein so called), as attached to the Ordinance and made a part thereof as Exhibit "D ", authorizing the expenditure of funds therefore; and providing an effective date. 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 construction and operation of improvements to the electric transmission and distribution systems. In respect to the tracts owned by the Brown families, the project requires the fee simple acquisition of a 10.45 acre tract of land, a 0.802 acre tract for electric utility easement, and a 0.521 acre tract for temporary construction easement to accommodate electric utilities and electric substation infrastructure. AR /WS Texas L.P. provided a real estate appraisal report in regard to the subject property tracts with a finding of $392,945.00 as compensation for the fee simple and easement interests. Approval of the ordinance under consideration authorizes staff to make an offer to purchase the tracts, and to proceed to closing the purchase transaction upon successful negotiations with the affected landowner. 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. ESTIMATED SCHEDULE OF PROJECT Fall /Winter 2014 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 March 24, 2014 - Executive Session and Consent Agenda 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. Ordinance Respectfully submitted: Phil Williams General Manager Denton Municipal Electric Prepared by: Pamela England Real Estate Specialist Temporary Construction Easement 9= Electric Easement W-* E oe Brown Property CITY 0 10F DENTON =Substation Site ...... Centerline Planning Department - GIS 0 190 Mo DENTON EXHIBIT 2 ORDINANCE NO. 2014- AN ORDINANCE FINDING THAT A PUBLIC USE AND NECESSITY EXISTS TO ACQUIRE (I) FEE SIMPLE TITLE TO A 10.45 ACRE TRACT; (II) AN ELECTRIC UTILITY EASEMENT ENCUMBERING A 0.802 ACRE TRACT; AND (III) A TEMPORARY CONSTRUCTION EASEMENT ENCUMBERING A 0.521 ACRE TRACT, ALL SAID TRACTS LOCATED IN THE D. CULP SURVEY, ABSTRACT NO. 287 AND THE J. COLTART SURVEY, ABSTRACT NO. 288, CITY OF DENTON, DENTON COUNTY, TEXAS, AS MORE PARTICULARLY DESCRIBED AND DEPICTED ON EXHIBITS "A ", "B" AND "C ", ATTACHED HERETO AND MADE A PART HEREOF, LOCATED GENERALLY AT THE INTERSECTION OF LOOP 288 AND KINGS ROW (THE "PROPERTY INTERESTS "), FOR THE PUBLIC USE OF EXPANSION, CONSTRUCTION, MAINTENANCE, OPERATION, AND IMPROVEMENT OF ELECTRIC TRANSMISSION AND DISTRIBUTION LINES, FACILITIES, AND STRUCTURES, AS WELL AS SUBSTATIONS, (THE "PROJECT"); AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO MAKE AN OFFER TO (1) BROWN DEVELOPMENT I, LTD., A TEXAS LIMITED PARTNERSHIP; JULIE LUELLE BROWN, SUCCESSOR INDEPENDENT EXECUTOR OF THE ESTATE OF GERALD W. BROWN, DECEASED; JULIE LUELLE BROWN, TRUSTEE OF THE JULIE LUELLE BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; JULIE LUELLE BROWN, TRUSTEE OF THE JULIE LUELLE BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; GERALD W. BROWN, II, TRUSTEE OF THE GERALD W. BROWN, II NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; GERALD W. BROWN, II, TRUSTEE OF THE GERALD W. BROWN, II EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; JASON EDWIN BROWN, TRUSTEE OF THE JASON EDWIN BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; JASON EDWIN BROWN, TRUSTEE OF THE JASON EDWIN BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; JINGER JEANNINE BROWN, TRUSTEE OF THE JINGER JEANNINE BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; JINGER JEANNINE BROWN, TRUSTEE OF THE JINGER JEANNINE BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; ALICIA MARGARET NOEL BROWN, TRUSTEE OF THE ALICIA MARGARET NOEL BROWN NONEXEMPT LIFETIME TRUST; ALICIA MARGARET NOEL BROWN, TRUSTEE OF THE ALICIA MARGARET NOEL BROWN EXEMPT LIFETIME TRUST; CONNIE L. BROWN, INDEPENDENT EXECUTOR OF THE ESTATE OF ROBERT M. BROWN, DECEASED; CONNIE L. BROWN, TRUSTEE OF THE ROBERT M. BROWN EXEMPT FAMILY TRUST; CONNIE L. BROWN, TRUSTEE OF THE ROBERT M. BROWN NONEXEMPT FAMILY TRUST (COLLECTIVELY, THE "OWNER "); (2) SUCCESSORS IN INTEREST TO THE OWNER TO THE PROPERTY INTERESTS; OR (3) ANY OTHER OWNERS OF THE PROPERTY INTERESTS, AS MAY BE APPLICABLE, TO PURCHASE THE PROPERTY INTERESTS FOR THE PURCHASE PRICE OF THREE HUNDRED NINETY -TWO THOUSAND, NINE HUNDRED FORTY -FIVE DOLLARS AND 00 /100 ($392,945.00), AND OTHER CONSIDERATION, AS PRESCRIBED IN THE CONTRACT OF SALE (HEREIN SO CALLED), AS ATTACHED HERETO AND MADE A PART HEREOF AS EXHIBIT "D "; WHEREAS, after due consideration of the public interest and necessity and the public use and benefit to accrue to the City of Denton, Texas: THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council finds that a public use and necessity exists, and that the public welfare and convenience require the acquisition of the Property Interests by the City of Denton, Texas (the "City "). The City Council hereby finds and determines that the acquisition of the Property Interests is necessary for public use to provide street and roadway expansion and improvements to serve the public and the citizens of the City of Denton, Texas. SECTION 2. The City Manager, or his designee, is hereby authorized to make a formal offer to purchase the Property Interests to (i) the Owner; (ii) any and all of Owner's successors in interest to the Property Interests; or (iii) any other parties who may own any interest in the Property Interests, as may be applicable. SECTION 3. The City Manager, or his designee, is hereby authorized to (a) execute for and on behalf of the City (i) the Contract of Sale, by and between the City and Owner, or other owners of the Property Interests, as applicable, in the form attached hereto and made a part hereof as Exhibit "D ", with a purchase price of $392,945.00 and other consideration, plus costs and expenses, all as prescribed in the Contract of Sale; and (ii) any other documents necessary for closing the transaction contemplated by the Contract of Sale; and (b) make expenditures in accordance with the terms of the Contract of Sale. SECTION 4. The City Manager, or his designee, is directed, by certified mail, return receipt requested, to disclose to Owner, or other owners of the Property Interests, as applicable, any and all appraisal reports produced or acquired by the City relating specifically to the Owner's property and prepared in the 10 years preceding the date of the offer made by the Contract of Sale. SECTION 5. The offer to Owner, or other owners of the Property Interests, as applicable, shall be made in accordance with all applicable law. SECTION 6. If any section, article, paragraph, sentence, phrase, clause or word in this ordinance, or application thereof to any persons or circumstances, is held invalid or unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance; the City Council declares that it would have ordained such remaining portion despite such invalidity, and such remaining portion shall remain in full force and effect. SECTION 7. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2014. ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: SCOTT W. HICKEY KELSEY, KELSEY & HICKEY, P.L.L.C. By: LEGAL DESCRIPTION BEING a 10.45 acre tract of land situated in the J. Coltart Survey, Abstract No. 288 and the D. Culp Survey, Abstract No. 287, City of Denton, Denton County, Texas, and being known as part of a called 200 acre tract of land described in a Deed to Brown Development I, Ltd., as recorded in Document Number 1998 - 001683 of the Real Property Records of Denton County, Texas, and being more particularly described as follows: BEGINNING at a broken concrete monument found for corner at an angle point in the Southwesterly line of S.H. Loop 288, a variable width right -of -way described in a Deed to the State of Texas, as recorded in Volume 1029, Page 134 of the Deed Records of Denton County Texas; THENCE South 02 034'02" West along the Southwesterly line of said S.H. Loop 288, for a distance of 32.68 feet to a 1/2 inch iron rod with cap stamped "METROPLEX" found for corner in the South line of said State of Texas tract and the South line of said 200 acre tract; THENCE North 87 036'33" West along the South line of said 200 acre tract, fora distance of 147.55 feet to a PK nail found for corner in King's Row Road; THENCE North 87 006'21" West continuing along the South line of said 200 acre tract, and along and near the Northerly edge of said King's Row Road, for a distance of 752.42 feet to a 5/8 inch iron rod with cap stamped "TNP" set for corner, from which a 1/2 inch iron rod with cap found for reference bears North 87 °06'21" West a distance of 482.91 feet; THENCE North 11 °10'04" West departing the South line of said 200 acre tract and said King's Row Road, for a distance of 1030.72 feet to a 5/8 inch iron rod with cap stamped "TNP" set for corner in the Southwesterly line of said S.H. Loop 288, from which a 1/2 inch iron rod with cap stamped "Metroplex" found for reference bears North 44 058'34" West a distance of 178.54 feet; THENCE South 44 058'34" East along the Southwesterly line of said S.H. Loop 288, for a distance of 622.71 feet to a concrete monument found for corner; THENCE South 50 037'22" East continuing along the Southwesterly line of said S.H. Loop 288, for a distance of 200.32 feet to a broken concrete monument found for corner; THENCE South 47 058'30" East continuing along the Southwesterly line of said S.H. Loop 288, for a distance of 679.81 feet to the POINT OF BEGINNING, and containing 10.45 acres of land, more or less. 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Tliv BrwtbDB(IDH CgMiYHE0wU0 CaDPBV.TV.E.Y1C . w4Ard.ber24 tlA tembeF Valero M4Pp tN, Detl AprsreDMaaawwitwgnn a4tH4nrwF Wrs1T0.Iye H4prtgmbgD••r0aeb. Tero. 160. P eserlWxa.411QxIMYF4MBtiTMbTF 4t4PQ1H1abWifCdIVIxY.w.W]].1¢•4 ro+MCnVaeatlLt'4.Mw0 tlem6gDrerauy. Tri. t4f emnheb1L641I JI MYrei. tN44DwwIn4wMx6HN01bFrn,w0.«nsrt0. tMl. arerVal M2P4ts6.GH xeml eDwonlbnq .Tmapw��IGM1Y,pgyM.WywpLtt.tlet. Wr W.M. Vyf4MEM1mJeGWnCwq. Tev. p.ema /.nwifp SbeMWww WaH,tL40,uar W.tbt,lV.6'A.tW ge9•bxw6gDe'MOUeM.TSro. AwA�segewroVwMpwtt. t•l6,uia•1bl ���R6aWS � �0au!'. T�NMeaeabldE8eMG4WWHNwrNrM1W5 :YWCaatlCW NO.%R1b60M. 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LETROPlEICbuget«IaF beSwb Mdietl 8rlpdTmms Y•gerrpw BwMiwdeeH i00 ea••sL 4LCra i1 I I t1Ri'. i�L.T. it i 1 -� Ni eTS2'5o• w 637.35� B r "-�j $s gQ F HARVEST HILL DR. ; Irc ris��ba I HIGH MEADOW DR.! i 0� Im em SCATS: 1" = 100' a �.tL6:Dw4D�e.2PHe«I Is M tc = �IRC auYagAlTA.rM�s,ea Lamest.444taY}f4t1.•r aTrrAU..a 1rorr.rL�eomwdanr.+nw.z4afr Nel W a rbt_ar Mro a.»Ia Ma .ltw Deawwrn waxmr tnpue M11 pelkiae 1: Ds slr 3s• '•� / i 5619.58' S ivy {b J. t ?t�u�Y SURNO B. �I.Y W %0. 20 . _ APPROgMTE 9R12Y 1•E�A ;imw 000. ,R��3DD�aDIrArDT1�Ax. aeieti� utL: rrlunr s. z•a WYWILExfralEGIEAVarAY 14roH M rOLLOA•I0. wB164IiK1 MlIa1EtT TR.tDT. N a1bMO 16aa4 WL Fae•es.eratHxaelOwxar•4NAa pIGW b1FAr£Y RND AQ6aWlE46«wAn4roee, eerrVa tlw4 fq. HT.Serero•b PawgD•WH lbuy.Troee. 4ROwx.•L�nle EBf�IA�d.4�COLPN! wMn•at�xWw�WM06MM�4x1, Whir WBPVHEYE LVPPoMTWtaxa bNYbeYpnA aoseuuvq,Ter M iAlAM•w 11BY 40 Noe AetATM M91Kr 1MCI, A• e1bMt IB60r W�r•stletr. ca°OesOeb. Tliv BrwtbDB(IDH CgMiYHE0wU0 CaDPBV.TV.E.Y1C . w4Ard.ber24 tlA tembeF Valero M4Pp tN, Detl AprsreDMaaawwitwgnn a4tH4nrwF Wrs1T0.Iye H4prtgmbgD••r0aeb. Tero. 160. P eserlWxa.411QxIMYF4MBtiTMbTF 4t4PQ1H1abWifCdIVIxY.w.W]].1¢•4 ro+MCnVaeatlLt'4.Mw0 tlem6gDrerauy. Tri. t4f emnheb1L641I JI MYrei. tN44DwwIn4wMx6HN01bFrn,w0.«nsrt0. tMl. arerVal M2P4ts6.GH xeml eDwonlbnq .Tmapw��IGM1Y,pgyM.WywpLtt.tlet. Wr W.M. Vyf4MEM1mJeGWnCwq. Tev. p.ema /.nwifp SbeMWww WaH,tL40,uar W.tbt,lV.6'A.tW ge9•bxw6gDe'MOUeM.TSro. AwA�segewroVwMpwtt. t•l6,uia•1bl ���R6aWS � �0au!'. T�NMeaeabldE8eMG4WWHNwrNrM1W5 :YWCaatlCW NO.%R1b60M. LEGEND r ets ST-0 txp emrt xm Inutu fwr7 Ixtt2s6 tWY I-D (.r) pA - Irla7 �rpxwl2tT I ` \• ��msres�saea...^m�eae t 11 1, - LEGALOESplATiGV - \ •'\ 1 1 �� earo• 1DASaetm a Wr eWwte6F beJ. rpnelt Sa.oy. Alxba N42paenL boo. alp Suroy, Alxb«I N4282. LT9' aDLDb4 mat Crinq.True,eM bdtpbuneptHm•eabE200 ays• sadYrr eleeubeO Fa Dro4blhwn Deahpnemt.LLL,wteadetl Yl0aua4 1 1 11 vYel. ertz114001% Sa4rBwAroantamtmdorwa .coaay.rrus,.mmp ma.Drealryalabm . m.s \j ncDwxware bpbn m4trenmeromWrbmnxvdaFrwbpdxNti6atlwmtsNivaB .H.traVZ %.. ralepb WltelyiMavry •�j bevbeOF• DeeObbebxbdTtawAn «m4etlFVaaD./p26. Pox f>.dbeoeep RSmtMmDrigtCwgTmx; 1 i �TIIH1 CE Sa1102'SOa2'wtegeLVwb•BarseMyWb d•• 109.x. L4ap 284 e•tbbod9Z.BeMbelk LalLOn lOEtelbmpelniPe4 1 .• 11 LETROPlEICbuget«IaF beSwb Mdietl 8rlpdTmms Y•gerrpw BwMiwdeeH i00 ea••sL 1 \ 11810E Na2181'%31•WWlebip tlw SwN Mmer02 %e«e•iL bt•tbwnpem fAlb6fMb•PK nrlbW bmlrrb NrytRw •\ ftm�R it0.1' LIwe RYRRLBT4LTA li T1r]10ENr6t 62+re31•LVw Dataat0+Flbaw Snub lFedwe200eae1M, rtlabp enelte«be wlL.yapl.aee+axLlyeRw R•ed, �.d 1 \ 1'AUa2RAe. RO.KR.N111q br•aare ar62•zbrb•sw bm Lpn tea ww ceo arape6 my ana«rw. rrm YINIS 1k YdtLm w6rgl opbW aWMwtoe IrreNpmermzrlxreaal«au2stteet ro -. ; �1 •.\ VJUL.T. 111ENCE N«b11'10'DI'WeYepsMq MSerH Lne dead 200 evefRaaM YM gpje Raw PUtl. br•tiral«d10riT2Mtb•6IBM �° ' 1 1 `.t t \ Yptt ro0 wlb tT gwTe6'INP er 4V aaliw F b• 8«r«NaM it d Wtl S.H.lpr 264 flan tbM • fk YM YpD w6 •fb t; e1r1pM + n. awwa' al. ratarrla .lrr.wbu•61rse•wwYSrrt�.dlTe.sz ae �+ :� 1 ,`\ TIIBICE 6aM N'563{•E•r tbnp BU$wEregry Mee WO aH. IUaD 268.1 «sdaWx•m822.11Mba•gloab nialplM buntl for '.\ � 1 4x._ "Q t., nlolce 6aatsmrn 6naaN+taa 4rSUmw.tdrN Yn a.m sx L•aD ae. braaemnoe a2mu wb•aaL.�amer tn«N�w�lwgbmner, �. '�� • \ `\ TIENCE Bailh IT' 6630' br borbuYp rrp tlu 8aRnmiry W d Wtl 9N. loop 2BB, kr • Mrlte a SI0.E1 br b tlu MY1f OF ��r t 1 d't�" 1 e. o4rrr0 .an6mal+glD.N.e..mlw.a�r. «I.w. - -_ _ _ _�� jAPPA010Y.1TE SURIEY V[ « Y •`\ t. urawMmm..o..nmrx.aetrnLmiae . bm+.ua'DVrottammrwroYA 1 20AZIACRES < z •e•1Pa•YSrun M1w.o•reiexi.vab GitetbM .eTr�Cm6wgenatWlOt•xCroLr2•c \ 11 ev ®ta.e «.•Yerer �evr Hb4M0�el�mo¢ ml. a. rwalo« N .vnw.rnpreaw�.w+rw.NDir�awrmara S; on6l. Ytwnnseu. ms0 wt9mem. m. mvsur.rdq+.aerwnlr.u.P•�ewem.rr •\ +mpn...:a.c«uronrruatmm.nn. 1 1 1 MRR Ww�RVBwpI®f411L -' �. . 1 Mpigry. sY« nlwn. ivwiein2aex0e. 1�.1 .w4iVIrMMnleerpbabn.rVWtilarOmM •\ f13MPoeELesabe� Ca�neetprwlxcNt2q�100vaatzlewlpGr�a .rrolMtLn0.nMlt4 tly. •'\ ant.lwrx(YMWa)OertbdrsYd•YtlsY«e ar�«t.arpbrbup.aonr.e..tm.o 11 Lee.4.wa01w +'b `` SA •\ '.V ..a VJYCL � ``'ALE ea •. .r'arYixubw,ereaY �aiam ornaw4Ybteo •. aro +Vereemrwe°wrtnoL��a•YIwM4mbuW . z... �. roww« lan« aa.. aem. o.+ r .aaereamwaa�«6mr.am.rMa.,.,.e.- 1 � l � \ 4 Tw..«. a. ew. m:. IwrwYma .rw...u.r.4%arcr.r.rr�raea..tr. +,.`. �J POINT OF RFGINNING. try ` yTr x_:+er errt TN'2T W762A2' �vrmo„T 1 11 z0 I i i N4x,m $'d 6 I L oaf ALTA/ACSM LAND TYTLE SURVEY �I"°� it I 3m p6 f g51 x ,m BROWN DEVELOPMENT i, LTD. BEING 10.45ACRES OF LAND t SITUATED IN THE 1 I I / �••\ J. COLTARTSURVEY. ABSTRACT N0.208 S THE D. CULP SURVEY, ABSTRACT NO. 28T CRY&D.W DHHal C-W T LEGAL DESCRIPTION ELECTRIC EASEMENT BEING a 0.802, acre, tract df land'siWted-, In the J. Coltart Survey, Abstract Numb.et 28$, -City of Denton, Denton County; Texas, and: being part.cif tha certain tract of land described in a Deed to Brown -Development ]_Ltd.j as recorded In Document Number 98-1683 of the Real: Property Records of Denton -County. Taxa%.and being more particularly deAoribed as follows: tommetow at a 5J8 inio iron rod with � stamped' sotin the Sbuthwesteriv line, of -st, loo .Cap ate Kig 1 hway P 288 `is variable Width- daht�-&-way), from which a: concrete monument found f-or'reforen6e_ b"rs.South 440 vW W East .A A di . istarlee of 692;11' jeQt; THENCE South 1V t0'44' East departinjIthe Southwesterly hh'a of sd1d.State. 14(ghwayLoop 2,W. f.qr a.distance of 54.69 feet to a point for -comer at Me POINT -OF -80GINNIN -THENCE South 11 0 IOP Or East passing a ft inch iron. rod with. ;cap swmpod rrlO, se lbr: relerenco at ft bontedne of ft-horeln-desedbedeasomqnt at 43 distance of 66.73-fint, and contibuing-fors.0ttg) idIs'bnce of'11:34M feat ta:a point far. rear, ftontr: u�hicii a 5/8 inch irr5n rod Frith csrsotatnpad 71W. Vot'boots $6ulb II' ICY 047 East a. -distance of 00.05 feet; THME. North 45*'rj,7* feet toa pointibroomer, THEN.O.E. North 3V 38'W Fast for a distance ,01' 1'03.'0.9-ib6ttDa pantfor comer-on.a non-tangent curve to the right In- the Soulhwesfexiyr line of said' .State Agh- i - - -oop 28 * orn: which a- &0)0n° -concrete. monument found -for . - way L � . 8: from reference. at Ihe,,be#1mr&-g of -saidairve Wits -North 530 W. W West, a. chord disU:nce of 899,35 -feet, TWNCIE08 S0Uft0C$tedY., dfrectiom along V* $0WhWvstWy jitib 0 said StOW-Highway nort-langent wiw. to the -.right haiNng a tentral,- angle of ' 00 39' 49� -a rafts, of W1,*.,0,5$ feet, •a: chord beail'V of South 4,90 11 1 10" EaK- 9 411ord distance of 6500 -feet and An:,dre WA "0 twa broken concrete monurneffft found for corner at.'the end of said curve, . , qth of 65, . 8 fe. 6. ' THENCE Soufti W 'IV W East co0finuing along the -Southwesterly, time 0,491d. State; Highway -Loop 288, fora distance ,citV98feet to a point for Corner; -THEIRCII! e0uffi,3V 3W W- West depatting the Southwestedy fine.ofsold State H10hwelyLoop 28.8jora distance: of 30.'61 feet to a. point tor wrtett-, THr;NGF-Souttv46*67l..3"East-fora distance :Of-310.3I feet to the POINT 0P BEGINNING., and 000tairtlng.0:802 acres: 6F *4 e ofifts.. mor B-T! on R..'K". Jars. 21, 24114 Jan. TF, . 20M.— Field T.&P.L.S. F =inn "14011.601. SHEET 1 OF 2 DME13222 LEGEND 41 C.ALPULATED POINT Ll_._ CONV, MONUMENT FOUN01, O�Uf) "M 5/e IRS ,STAM . ko-lw S 11"IVOW81 E IRON ROD TOUNO (19F) 00 CONTROL MONUMEttf 10.3 Of 7=7 OM how ENT. OUNDA rL-5 $ 39 "38.'05" 1N. . PftoP". U!N E ------------- LINE Ll_._ S 11'10'Dif E "M L2 S 11"IVOW81 E 1-3-11 . -5- - L31. 8'0 N 391-S.- E 10.3 Of 7=7 L4 S 481.3'021 -44 rL-5 $ 39 "38.'05" 1N. . SIN"RA AOL. VOL C CABLE) 270 TO (li=ll► wm & n) NOTES! WnMEONTT FDIC S WA ZZ l T%# A EF" f t oA o " A lK FmwwG Wow a nuns- od Arf.W iwz TRACT As s4m.. 101. lom and Ift. 7HE FOUJCYR( 0 MIX 00 NOT J., R0. M�j 100, Easomont poiewed 1q. to $ `06molv county Elobw 06*&a twe vii 1) -uh Doftto bw 2- AW-0-h-A ..=1 19 6 W -4 t fd MM "26."l th. v.dkn*.7oo., P* 72C &k"t loh. @M 0= Drown Parer & Ught "My E:9 Ned 4 W ION SM. = H.4 slew=. V 04IOP.100.1-TT7 6w%jui I.J. suliOlwfj kl�ot * L....Q Date: Jan. 1, 2O14 Jan. 7, 2014 Field Firm Reg. N.o. T-0011601 it LINE 1 DELTA . 1* RADIUS I AVC. L I CH :BEARING 1 CH D 49- j 5-6-t-9.50- IM0 JS 48'11'19- E 1 195.08- CT 10 2L_. � R = 66510.68! - 5 10K CN No L OOQ.'32z' , lip W C 53'06?06" W CHO - 3r .6.09,3w. COMMIENCING . . . . . . . . . . POINTOF 61r iNNINr SIN"RA AOL. VOL C CABLE) 270 TO (li=ll► wm & n) NOTES! WnMEONTT FDIC S WA ZZ l T%# A EF" f t oA o " A lK FmwwG Wow a nuns- od Arf.W iwz TRACT As s4m.. 101. lom and Ift. 7HE FOUJCYR( 0 MIX 00 NOT J., R0. M�j 100, Easomont poiewed 1q. to $ `06molv county Elobw 06*&a twe vii 1) -uh Doftto bw 2- AW-0-h-A ..=1 19 6 W -4 t fd MM "26."l th. v.dkn*.7oo., P* 72C &k"t loh. @M 0= Drown Parer & Ught "My E:9 Ned 4 W ION SM. = H.4 slew=. V 04IOP.100.1-TT7 6w%jui I.J. suliOlwfj kl�ot * L....Q Date: Jan. 1, 2O14 Jan. 7, 2014 Field Firm Reg. N.o. T-0011601 it LINE 1 DELTA . 1* RADIUS I AVC. L I CH :BEARING 1 CH D 49- j 5-6-t-9.50- IM0 JS 48'11'19- E 1 195.08- CT 10 2L_. � SURVO t J. CG A0 BROWN DEVELOPMENT % LTD. iDOG No. -08- . 1"s Paul. UXIMATE SURVEY LINE -.,, rULP SuRny smcf f4o. 257 \0 40' IMOJE- PRAI$AGE VMUTY ESMT PG. 477 (item 101) f.np 0 106 200 CONDEMNATION 2e CASEMENT DEHI CAS PIPELINE CORPORATION ym 63 . 4, 01Q, 3 DISTRICT 0,"- 'INUIES ,,- TM MINUTES ~—LNE .STAR -0A$ COMPANY DOC. N 44, R 1. 1p PPOP0,92D 10.45 AC. SUBSTATION TRACT toug" acd] parkins TODD Q TC71iMEit 4850 2 OF 2 No... ELECTRW EASIMENT 0.002 ACRES SMATED IN THE J. COLTART.SURVEY ABSTRACT NO. 288 CITY OF DENTON 10K CN No -5 lip COMMIENCING . . . . . . . . . . POINTOF 61r iNNINr SURVO t J. CG A0 BROWN DEVELOPMENT % LTD. iDOG No. -08- . 1"s Paul. UXIMATE SURVEY LINE -.,, rULP SuRny smcf f4o. 257 \0 40' IMOJE- PRAI$AGE VMUTY ESMT PG. 477 (item 101) f.np 0 106 200 CONDEMNATION 2e CASEMENT DEHI CAS PIPELINE CORPORATION ym 63 . 4, 01Q, 3 DISTRICT 0,"- 'INUIES ,,- TM MINUTES ~—LNE .STAR -0A$ COMPANY DOC. N 44, R 1. 1p PPOP0,92D 10.45 AC. SUBSTATION TRACT toug" acd] parkins TODD Q TC71iMEit 4850 2 OF 2 No... ELECTRW EASIMENT 0.002 ACRES SMATED IN THE J. COLTART.SURVEY ABSTRACT NO. 288 CITY OF DENTON LEGAL VESCMPTION T EMP09ARY CONSTRUCTION EASEMENT ftWO. a 0.621 acre led of land eltUated, in the J. Coltartturvqy, .Abstract N-L - '-Z - co of 00010m beifto 09".-., Texas, an4b0ing pad of that zertanlmctofiand described ..ina.Detd 'to.Stown:'D.rovelopmerd I, Ltd as 'recorded 140ocumeritNumberaBA643. of" Roat0ropedy Records of bentort Courft'11M's, end being More particularly described, as f6flo".: COMMENCING at a-Sig inch irdn MI. W1M: cap -*stamp ITNPw set 10 the Southwesteffy line of- State .Highway LWO 288 (a variable width right-of-way). from which a concrete monument found for reference bears.9duth 440 SW W East a distance of $22.11 'feet; THENCE South 11:° I& 04"EastdepeAng the. Southwesterly fine of said State Highway Loop 268, for a distance of 1M14feet to a pcintfbrcornerarthe� POINT OP 13EGINNING for the herein descnbed:easernenr,. THENCE South 11" IQLW Eastfqra distanceof 61.36,feetto apointiorcomerftom which a Minch iron rod with 1211 -AaMpd4 IMP* set bears.South 11° -10104* East peistance -of. 787.77 feet, THSN=Nodh456-!$V 13' West for a distance 0f$70�Wfeet to qpo0:1or0s"0q THENCE North 3W'3W, Wend fbra dislarcee of 136,51 -feetAb -9 point fortomerone non--tangeat cur weto the iighlt, "W -0- ,ko.- ". $ -for refs ns2; fit 0.4� Loo. - 200. fief which* fz� oo*ft: ftnumw found begin ni h% of. said ', otuve bears rs �'of th 63' 17" IT West.. a ch od d1`sfwm--*f,$64A5- 16 et - astert y direr #6%:a1on0the Sot&w0gorly line. Laid 'Sta ' WHghway Loop-208i and along said non-tangent curve to the Aght h"U. acentral angle- of-00"91' 2W. -a radius of 6610.58- feet -* chord bogring of South 481- 41' 66w- East, o wdA$sft rice of 3.6-01* C-vt and anare-joho -035.01:lbet to. a point for 40nor, THENCE South 0911,38' 06* West departing the Southwesterly fine of 'said State Highway Loop288, lbra distance of 103-09 -W to a poiht for oomer, THENCE South 4V Br 13' East for a disWW, of 14,97,71 feet, to th wPOtNI r OF EW01 WN 0, and containing. 0:521 :acres. eflandi. mom or less, Jamt 2014 - field SHEET I OF 2 DME13222 LEGEND A 6wOwm POINT... 0. FOU10 (C-MF) , 54-68' 518- IRS -STAMPED TNP s 1110' E IRON 11011'POUND 090) CM 1 COWROLVIONUMENT 61 35 CEN1TRUNE EW E$MT, N 3-9W. E MT. BOUNDARY 5 5 3 4-... w 1-01-0, L'6 s E -------------- Ev $ -4071I3 "02" t $9, 'LIK .* BEARING DISTANCE ARC L I S.. 1.1.1%.. E , 54-68' s 1110' E 131,416 L3 � " 1-456" E 61 35 4 N 3-9W. E 1 - 0� &T 5 5 3 4-... w 1-01-0, L'6 s E 998, L7 $ -4071I3 "02" t $9, .A = 08 49' 2 R R 5,61,9A 865.3 CEI - S 531719* CHO w 894,0 SINCLAnt. Mt- 105.1, PO; M & VOL. jj�k2 PA -270 (item lorn & fl) NOTES., TITLE - IJWAU 1SPI Z VMS:. M lot W& W4F � M,1112 y F UO ".—AXE -0 MW 0.0 AMCT VS TRA ViOMA 1b4 Tt>M and 10* THE F%LQWQ OMS 00.110T Afil"'Ift IRA.C.M. EW-bAoI1111' ?A i3 40% Pg6 31 ft& Wolig '.. Wd k. VW i. 10h -.It =t..djMyX1MM V f. - " E4,ght 00rWany U.j. Ed 'hoo. IL -122WtP4gM. 04 D.R. AtT Oaswl on the Tew Stge-Plane. *ft 0mulza" ("nsa), UNE PECT RADIUS ARC L I CH, BEARING. 1: CH D 35,01, � " 1-456" E 1 3-5401• C t10 '49 66..08, S.48"If"IT El 165-08' 5 96 ti;>r+ POINT OF COMM5NCING , j coUnff KIM- 08 000. 100,# 4""s O OF 40' 1 (item 101) - "P 0 200 scAto v em, DMD%�A-PfffONN25C' EASEMENT PIPELINE E OPPORATION VOL 4. OM 303 D1$*-W ADOMT MINUTES LONE -STAR OAS COMPANY DOQ NO. 95-16944. 1p PROPOSE 9 M45 AC. SMSTAMN TRACT- TEMPORW CONSMUCTION RASEMWIT wague call falls -6, -64-0 -0. va fill 0.521 ACRJES TODD 13, TURNER Mr BEINS SITUATED IN THE LTART SURVEY Todd 0. Turner, R.P.,16 s-, 48 si WWWJ*hf-- J. CO Date: Jan. 21, 2014 ABSTRACT NO. .288 Jan. 7, 2014- Field CITY OF DEENTON Firm. Re No. 10011601 PENTON CIDUNM TE(AS SHEET 2 OF 2 JOB NO, DME13222 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 , 2014, effective as of the date of execution hereof by Seller, as defined herein (the "Effective Date "), by and between (1) BROWN DEVELOPMENT I, LTD., A TEXAS LIMITED PARTNERSHIP; JULIE LUELLE BROWN, SUCCESSOR INDEPENDENT EXECUTOR OF THE ESTATE OF GERALD W. BROWN, DECEASED; JULIE LUELLE BROWN, TRUSTEE OF THE JULIE LUELLE BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; JULIE LUELLE BROWN, TRUSTEE OF THE JULIE LUELLE BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; GERALD W. BROWN, II, TRUSTEE OF THE GERALD W. BROWN, II NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; GERALD W. BROWN, II, TRUSTEE OF THE GERALD W. BROWN, II EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; JASON EDWIN BROWN, TRUSTEE OF THE JASON EDWIN BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; JASON EDWIN BROWN, TRUSTEE OF THE JASON EDWIN BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; JINGER JEANNINE BROWN, TRUSTEE OF THE JINGER JEANNINE BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; JINGER JEANNINE BROWN, TRUSTEE OF THE JINGER JEANNINE BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; ALICIA MARGARET NOEL BROWN, TRUSTEE OF THE ALICIA MARGARET NOEL BROWN NONEXEMPT LIFETIME TRUST; ALICIA MARGARET NOEL BROWN, TRUSTEE OF THE ALICIA MARGARET NOEL BROWN EXEMPT LIFETIME TRUST; CONNIE L. BROWN, INDEPENDENT EXECUTOR OF THE ESTATE OF ROBERT M. BROWN, DECEASED; CONNIE L. BROWN, TRUSTEE OF THE ROBERT M. BROWN EXEMPT FAMILY TRUST; CONNIE L. BROWN, TRUSTEE OF THE ROBERT M. BROWN NONEXEMPT FAMILY TRUST (COLLECTIVELY, THE "OWNER "); (2) SUCCESSORS IN INTEREST TO THE OWNER TO THE PROPERTY INTERESTS; OR (3) ANY OTHER OWNERS OF THE PROPERTY INTERESTS, AS MAY BE APPLICABLE (collectively 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 located in the J. Coltart Survey, Abstract Number 288 and the D. Culp Survey, Abstract Number 287 being located in Denton County, Texas (the "Land ") and being affected by the public improvement Project called the Spencer Transmission Line Project ( "Project "); WHEREAS, Seller desires to sell to Buyer, and Buyer desires to buy from Seller, the Land described on Exhibit "A -1" and depicted on Exhibit "B -1 ", 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 "); and WHEREAS, Seller desires to sell to Buyer, and Buyer desires to buy from Seller, both permanent and temporary construction easements, the scope, location and duration of which are described and shall be memorialized in an Electric Utility Easement (herein, the "Easement "), the form and content of which is shall be substantially similar to the Attachment 2 which is attached hereto and made a part hereof for all purposes as if set forth herein verbatim. The Easement shall grant, sell and convey a permanent easement in, along, over, upon, under and across the tract of land being described on Exhibit "A -2" and depicted on Exhibit "B -2" attached to the Easement, and a temporary construction easement in, along, over, upon, under and across the tract of land being described on Exhibit "A -3" and depicted on Exhibit "B -3" also attached to the Easement. As stated in the Easement, the permanent easement shall be granted for electric utility purposes, and the temporary construction easement shall be granted for construction purposes, the purpose(s), scope and duration of which are further set forth and defined in the Easement. The lands described and depicted in the Exhibits attached to the Easement are collectively referred to herein as the "Easement Lands "; and WHEREAS, it is desirous of both parties to stipulate and agree to the terms and conditions associated with the purchase of the necessary fee property and easements for the Project. NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties agree as follows: 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 and the Easement Lands. Seller, subject to the limitation of such reservation made herein, shall reserve, for itself, its heirs, devisees, beneficiaries, successors and assigns all oil, gas and other minerals in, on and under and that may be produced from the Property and the Easement Lands. Seller, its heirs, devisees, beneficiaries, successors and assigns shall not have the right to use or access the Contract of Sale Page 2 of 56 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 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 vertical, water wells, pit areas, seismic activities, tanks or tank batteries, pipelines, roads, electricity or other utility infrastructure, and /or for subjacent or lateral support for any surface facilities or well bores, or any other infrastructure or improvement of any kind or type in connection with or related to the reserved oil, gas and other minerals, and /or related to the exploration or production of same. As used herein, the term "minerals" shall include oil, gas and all associated hydrocarbons, and shall exclude (i) all substances (except oil, gas and all associated hydrocarbons) that any reasonable extraction, mining or other exploration and /or production method, operation, process or procedure would consume, deplete or destroy the surface of the Property; and (ii) all substances (except oil and gas) which are at or near the surface of the Property. The intent of the parties hereto is that the meaning of the term "minerals" as utilized herein, shall be in accordance with that set forth in Reed v. Wylie, 597 S.W.2d 743 (Tex. 1980). As used herein, the term "surface of the Property" shall 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 of the earth. ARTICLE II PURCHASE PRICE AND EARNEST MONEY 2.01 Purchase Price. The Purchase Price to be paid to Seller for the Property and the Easement Lands is the sum of THREE HUNDRED NINETY -TWO THOUSAND, NINE HUNDRED FORTY -FIVE and No /100 Dollars ($392,945.00) (the "Purchase Price "). 2.02 Earnest Money. Buyer shall deposit the sum of One Thousand and No /100 Dollars ($1,000.00), as Earnest Money (herein so called) with Title Resources, LLC, 525 South Loop 288 , Suite 125, Denton, Texas, 76205, (the "Title Company "), 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 same manner as the original Earnest Money deposit, as provided in this Contract. If the purchase contemplated hereunder is consummated in accordance with the terms and the provisions hereof, the Earnest Money, together with all interest earned thereon, shall be applied to the Purchase Price at Closing. In all other events, the Earnest Money, and the interest accrued thereon, shall be disposed of by the Title 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 benefit of Seller, a check in the amount of One Hundred and No /100 Dollars ($100.00) (the "Independent Contract Consideration "), which amount the parties hereby acknowledge and agree has been bargained for and agreed to as consideration for Seller's execution and delivery of the Contract. The Independent Contract Consideration is in addition to, and independent of any other consideration Contract of Sale Page 3 of 56 or payment provided in this Contract, is non - refundable, and shall be retained by Seller notwithstanding any other provision of this Contract. ARTICLE III TITLE AND SURVEY 3.01 Title Commitment. (a) Within twenty (20) calendar days after the Effective Date, Seller shall cause to be furnished to Buyer a current Commitment for Title Insurance (the "Title Commitment ") for the Property and the Easement Lands, issued by Title Company. The Title Commitment shall set forth the state of title to the Property and the Easement Lands, including a list of liens, mortgages, security interests, encumbrances, pledges, assignments, claims, charges, leases (surface, space, mineral, or otherwise), conditions, restrictions, options, severed mineral or royalty interests, conditional sales contracts, rights of first refusal, restrictive covenants, exceptions, easements (temporary or permanent), rights -of -way, encroachments, or any other outstanding claims, interests, estates or equities of any nature (each of which are referred to herein as an "Exception "). (b) Along with the Title Commitment, Seller shall also cause to be delivered to Buyer, at Buyer's sole cost and expense, true and correct copies of all instruments that create or evidence Exceptions (the "Exception Documents "), including those described in the Title Commitment as exceptions to which the conveyance will be subject and /or which are required to be released or cured at or prior to Closing. 3.02 Survey. Within thirty (30) calendar days after the Effective Date, Seller shall cause to be prepared at Buyer's expense, a current on the ground survey of the Property and the Easement Lands (the "Survey "). The contents of the Survey shall be prepared by a surveyor selected by Buyer and shall include the matters prescribed by Buyer, which may include but not be limited to, a depiction of the location of all roads, streets, easements and rights of way, both on and adjoining the Property and Easement Lands, water courses, 100 year flood plain, fences and improvements and structures of any kind. The Survey shall describe the size of the Property and Easement Lands, in acres, and contain a metes and bounds description thereof. Seller shall furnish or cause to be furnished any affidavits, certificates, assurances, and /or resolutions as required by the Title Company in order to amend the survey exception as required by Section 3.05 below. The description of the Property and the Easement Lands as set forth in the Survey, at the Buyer's election, shall be used to describe the Property and the Easement Lands in the deed to convey the Property and to convey the Easement Lands to Buyer, and shall be the description set forth in the Title Policy. 3.03 Review of Title Commitment, Survey and Exception Documents. Buyer shall have a period of fifteen (15) calendar days (the "Title Review Period ") commencing with the day Buyer receives the last of the Title Commitment, the Survey, and the Exception Documents, in which to give written notice to Seller, specifying Buyer's objections to 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 Contract of Sale Page 4 of 56 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 Exceptions that have been voluntarily placed on or against the Property and the Easement Lands 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 days, 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. 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 (I 10) 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 III, 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, and that the Buyer has indefeasible title to a permanent easement and temporary easement in the Easement Lands, subject only to the Permitted Exceptions. The Title Policy may contain only the Permitted Exceptions and shall contain no other exceptions to title, with the standard printed or common exceptions amended or deleted as follows: (a) survey exception must be amended if required by Buyer to read "shortages in area" only (although Schedule C of the Title Commitment may condition amendment on the presentation of an acceptable survey and payment, to be borne solely by Buyer, of any required additional premium); Contract of Sale Page 5 of 56 (b) no exception will be permitted for "visible and apparent easements" or words to that effect (although reference may be made to any specific easement or use shown on the Survey, if a Permitted Exception); (c) no exception will be permitted for "rights of parties in possession "; (d) no liens will be shown on the title commitment. 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 term or provision of this Contract notwithstanding, the obligations of Buyer specified in this Contract are wholly conditioned on Buyer's having determined, in Buyer's sole and absolute discretion, during the period commencing with the Effective Date of this Contract and ending sixty (60) calendar days thereafter (the "Absolute Review Period "), based on such tests, examinations, studies, investigations and inspections of the Property and the Easement Lands the Buyer deems necessary or desirable, including but not limited to studies or inspections to determine the existence of any environmental hazards or conditions, performed at Buyer's sole cost, that Buyer finds the Property and the Easement Lands suitable for Buyer's purposes. Buyer is granted the right to conduct engineering studies of the Property and the Easement Lands, and to conduct a physical inspection of the Property and the Easement Lands, including inspections that invade the surface and subsurface of the Property and the Easement Lands. If Buyer determines, in its sole judgment, that the Property and the Easement Lands are not suitable, for any reason, for Buyer's intended use or purpose, the Buyer may terminate this Contract by written notice to the Seller, as soon as reasonably practicable, but in any event prior to the expiration of the Absolute Review Period, in which case the Earnest Money will be returned to Buyer, and neither Buyer nor Seller shall have any further duties or obligations hereunder. In the event Buyer elects to terminate this Contract pursuant to the terms of this Article IV, Section 4.01, Buyer will provide to Seller copies of (i) any and all non - confidential and non - privileged reports and studies obtained by Buyer during the Absolute Review Period; and (ii) the Survey. ARTICLE V 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 and conveyance of the Property and the Easement Lands in accordance with the terms and provisions herewith, Seller represents and warrants to Buyer as of the Effective Date and as of the Closing Date, except where specific reference is made to another date, that: Contract of Sale Page 6 of 56 (a) The descriptive information concerning the Property and the Easement Lands 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 the Easement Lands, 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 the Easement Lands, 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 and Easement Lands, subject only to the Permitted Exceptions. (d) The Seller has the full right, power, and authority to sell and convey the Property and the Easement Lands as provided in this Contract and to carry out Seller's obligations hereunder. (e) 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 or the Easement Lands. (f) The Seller has disclosed to Buyer in writing of any and all facts and circumstances relating to the physical condition of the Property and the Easement Lands that may materially and adversely affect the Property and the Easement Lands 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 and the Easement Lands, or will be due as of the Closing, and the Property and the Easement Lands will be subject to no such liens. (h) The Seller shall convey the Property and the Easement Lands 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 from the Property or the Easement Lands. As used in this Contract, "Hazardous Substance" means and includes all hazardous and toxic substances, waste or materials, chemicals, and any pollutant 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 Contract of Sale Page 7 of 56 Law or that would or may 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 superlien 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 1445 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 and the Easement Lands, 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 and the Easement Lands, 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 and the Easement Lands 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 agreement, conveyance or any other agreement of any kind with respect to, or affecting, the Property and the Easement Lands that will not be fully performed on or before the Closing or would be binding on Buyer or the Property and the Contract of Sale Page 8 of 56 Easement Lands after the date of Closing. (ii) Advise the Buyer promptly of any litigation, arbitration, or administrative hearing concerning or affecting the Property and the Easement Lands, or either one of them. (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 and the Easement Lands, or create, grant or permit to be attached or perfected, any lien, encumbrance, or charge thereon. (c) 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 and the Easement Lands 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 or Electric Utility Easement, 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 III, all of Buyer's objections made in accordance with Article III. 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 date of Closing, any portion of the Property or the Easement Lands has been condemned by an entity other than Buyer, or is the subject of condemnation, eminent domain, or other material proceeding initiated by an entity other than Buyer, or the Property, the Easement Lands, or any Contract of Sale Page 9 of 56 part thereof, has been materially or adversely impaired in any manner. 6.04 Review Period. Buyer is not obligated to perform under this Contract if Buyer delivers notice to Seller pursuant to Article IV, Section 4.01 that Buyer has determined that the Property or the Easement Lands are unsuitable to or for Buyer's purposes. 6.05 Buyer's Right to Waive Conditions Precedent. Notwithstanding anything contained in this Contract to the contrary, Buyer may, at Buyer's option, elect to waive any of the conditions precedent to the performance of Buyer's obligations under this Contract by giving to the Seller, at any time prior to Closing, a written waiver specifying the waived condition precedent. 6.06 Buyer's Termination if Conditions Precedent Not Satisfied or Waived. If any of the conditions precedent to the performance of Buyer's obligations under this Contract have not been satisfied by Seller or waived by the 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 shall, on written request from Buyer, promptly issue the instructions necessary to instruct the Title Company to return to Buyer the Earnest Money and, thereafter, except as otherwise provided in this Contract, Buyer and Seller shall have no further obligations under this Contract, one to the other. ARTICLE VII CLOSING 7.01 Date and Place of Closing. The Closing (herein so called) shall take place in the offices of the Title Company and shall be accomplished through an escrow to be established with the Title Company, as escrowee. The Closing Date (herein sometimes called), shall be one hundred and eighty (180) calendar days after the Effective Date, unless otherwise mutually agreed upon by Buyer and Seller. 7.02 Items to be Delivered at the Closing. (a) Seller. At the Closing, Seller shall deliver or cause to be delivered to Buyer or the Title Company, at the expense of the party designated herein, the following items: (i) The Title Policy, in the form specified in Article III, Section 3.05; (ii) The Special Warranty Deed, substantially in the form as attached hereto as Attachment "1 ", subject only to the Permitted Exceptions, if any, duly executed by Seller and acknowledged; (iii) The Electric Utility Easement, substantially in the form as attached hereto as Attachment "T', subject only to the Permitted Exceptions, if any, duly executed by Seller and acknowledged; (iv) Other items reasonably requested by the Title Company as administrative requirements for consummating the Closing. Contract of Sale Page 10 of 56 (b) Buyer. At the Closing, Buyer shall deliver to Seller or the Title Company, the following items: (i) The sum required by Article II, Section 2.01, less the Earnest Money and interest earned 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 consummating 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 VII, 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 in fee and the easement rights of the Easement Lands 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 and the Easement Lands in Denton County, Texas. ARTICLE VIII DEFAULTS AND REMEDIES 8.01 Seller's Defaults and Buyer's Remedies. Contract of Sale Page 11 of 56 (a) Seller's Defaults. Seller is in default under this Contract on the occurrence of any one or more of the following events: (i) 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 (iii) 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 both the Property and the Easement Lands, or either one of them, 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 VII, Section 7.02(b) of this Contract for 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: Contract of Sale Page 12 of 56 (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: BUYER: Telecopy Copies to: Fnr Geller• Telecopy: City of Denton Paul Williamson Real Estate and Capital Support 901 -A Texas Street Denton, Texas 76209 Telecopy: (940) 349 -8951 For Buyer: Scott W. Hickey, Attorney at Law Kelsey, Kelsey & Hickey, PLLC P.O. Box 918 Denton, Texas 76202 Telecopy: (940) 387 -9553 9.02 Governing Law and Venue. This Contract is being executed and delivered and is intended to be performed in the State of Texas, the laws of Texas governing the validity, construction, enforcement and interpretation of this Contract. THIS CONTRACT IS PERFORMABLE IN, AND THE EXCLUSIVE VENUE FOR ANY ACTION BROUGHT WITH RESPECT HERETO, SHALL LIE IN DENTON COUNTY, TEXAS. 9.03 Entirety and Amendments. This Contract embodies the entire agreement between the parties and supersedes all prior agreements and understandings, if any, related to the Property and the Easement Lands, and may be amended or supplemented only in writing executed by the party against whom enforcement is sought. Contract of Sale Page 13 of 56 9.04 Parties Bound. This Contract is binding upon and inures to the benefit of Seller and Buyer, and their respective successors, beneficiaries and assigns. If requested by Buyer, Seller agrees to execute, acknowledge and record a memorandum of this Contract in the Real Property Records of Denton County, Texas, imparting notice of this Contract to the public. 9.05 Risk of Loss. If any damage or destruction to the Property or the Easement Lands shall occur prior to Closing, or if any condemnation or any eminent domain proceedings are threatened or initiated by an entity or party other than Buyer that might result in the taking of any portion of the Property or the Easement Lands, Buyer may, at Buyer's option, do any of the following: (a) Terminate this Contract and withdraw from this transaction without cost, obligation or liability, in which case the Earnest Money shall be immediately returned to Buyer; or (b) Consummate this Contract, in which case Buyer, with respect to both the Property and the Easement Lands, or either one of them, shall be entitled to receive any (i) in the case of damage or destruction, all insurance proceeds; and (ii) in the case of eminent domain, proceeds paid for the Property or the Easement Lands, or both of them, related to the eminent domain proceedings. Buyer shall have a period of up to ten (10) calendar days after receipt of written notification from Seller on the final settlement of all condemnation proceedings or insurance claims related to damage or destruction of any improvement located on the Property or the Easement Lands, in which to make Buyer's election. In the event Buyer elects to close prior to such final settlement, then the Closing shall take place as provided in Article VII, above, and there shall be assigned by Seller to Buyer at Closing all interests of Seller in and to any and all insurance proceeds or condemnation awards which may be payable to Seller on account of such event. In the event Buyer elects to close upon this Contract after final settlement, as described above, Closing shall be held five (5) business days after such final settlement. 9.06 Further Assurances. In addition to the acts and deeds recited in this Contract and contemplated to be performed, executed and /or delivered by Seller and Buyer, Seller and Buyer agree to perform, execute and /or deliver, or cause to be performed, executed and /or delivered at the Closing or after the Closing, any further deeds, acts, and assurances as are reasonably necessary to consummate the transactions 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 of this Article IX, Section 9.06 shall survive Closing. 9.07 Time is of the Essence. It is expressly agreed between Buyer and Seller that time is of the essence with respect to this Contract. 9.08 Exhibits. The Exhibits which are referenced in, and attached to this Contract, are incorporated in and made a part of, this Contract for all purposes. Contract of Sale Page 14 of 56 9.09 Delegation of Authority. Authority to take any actions that are to be, or may be, taken by Buyer under this Contract, including without limitation, adjustment of the 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 Execution. This Contract of Sale may be executed in any number of counterparts, all of which taken together shall constitute one and the same agreement, and any of the parties hereto may execute this Agreement by signing any such counterpart. 9.11 Business Days. If the Closing Date or the day of performance required or permitted under this Contract falls on a Saturday, Sunday or Denton County holiday, then the Closing Date or the date of such performance, as the case may be, shall be the next following regular business day. 9.12 Relocation. Relocation advisory services and relocation financial assistance, if applicable pursuant to Ordinance No. 2012 -073 (the "Relocation Ordinance "), shall be administered as provided by the Relocation Ordinance, aside and apart from the transaction contemplated by this Contract. SELLER: BROWN DEVELOPMENT I, LTD., a Texas limited partnership By: BROWN DEVELOPMENT CORPORATION its general partner Capacity: THE ESTATE OF GERALD W. BROWN, DECEASED JULIE LUELLE BROWN, AS SUCCESSOR INDEPENDENT EXECUTOR THE JULIE LUELLE BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN JULIE LUELLE BROWN, AS TRUSTEE Contract of Sale Page 15 of 56 THE JULIE LUELLE BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN JULIE LUELLE BROWN, AS TRUSTEE THE GERALD W. BROWN, II NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN GERALD W. BROWN, II, AS TRUSTEE THE GERALD W. BROWN, II EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN GERALD W. BROWN, II, AS TRUSTEE THE JASON EDWIN BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN JASON EDWIN BROWN, AS TRUSTEE THE JASON EDWIN BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN JASON EDWIN BROWN, AS TRUSTEE THE JINGER JEANNINE BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN JINGER JEANNINE BROWN, AS TRUSTEE Contract of Sale Page 16 of 56 THE JINGER JEANNINE BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN JINGER JEANNINE BROWN, AS TRUSTEE THE ALICIA MARGARET NOEL BROWN NONEXEMPT LIFETIME TRUST ALICIA MARGARET NOEL BROWN, AS TRUSTEE THE ALICIA MARGARET NOEL BROWN EXEMPT LIFETIME TRUST ALICIA MARGARET NOEL BROWN, AS TRUSTEE THE ESTATE OF ROBERT M. BROWN, DECEASED CONNIE L. BROWN, AS INDEPENDENT EXECUTOR THE ROBERT M. BROWN EXEMPT FAMILY TRUST CONNIE L. BROWN, AS TRUSTEE THE ROBERT M. BROWN NONEXEMPT FAMILY TRUST CONNIE L. BROWN, AS TRUSTEE Executed by Seller on the day of , 2014. Contract of Sale Page 17 of 56 BUYER: By: GEORGE C. CAMPBELL, CITY MANAGER Executed by Buyer on the day of , 2014. ATTEST: JENNIFER WALTERS, CITY SECRETARY L-0 APPROVED AS TO LEGAL FORM: SCOTT W. HICKEY, KELSEY, KELSEY & HICKEY, PLLC Contract of Sale Page 18 of 56 RECEIPT OF AGREEMENT BY TITLE 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 of this Contract and to perform its duties pursuant to the provisions of this Contract and comply with Section 6045(e) of the Internal Revenue Code of 1986, as amended from time to time, and as further set forth in any regulations or forms promulgated thereunder. TITLE COMPANY: Title Resources, LLC 525 South Loop 288, Suite 125 Denton, Texas 76205 Telephone: (940) 381 -1006 Telecopy: (940) 898 -0121 Printed Name: Title: Contract receipt date: , 2014 Contract of Sale Page 19 of 56 Exhibit A -1 LEGAL DESCRIPTION BEING a 10.45 acre tract of land situated in the J. Coltart Survey, Abstract No. 288 and the D. Culp Survey, Abstract No. 287, City of Denton, Denton County, Texas, and being known as part of a called 200 acre tract of land described in a Deed to Brown Development I, Ltd., as recorded in Document Number 1998 - 001683 of the Real Property Records of Denton County, Texas, and being more particularly described as follows: BEGINNING at a broken concrete monument found for corner at an angle point in the Southwesterly line of S.H. Loop 288, a variable width right -of -way described in a Deed to the State of Texas, as recorded in Volume 1029, Page 134 of the Deed Records of Denton County Texas; THENCE South 02 °34'02" West along the Southwesterly line of said S.H. Loop 288, for a distance of 32.68 feet to a 1/2 inch iron rod with cap stamped "METROPLEX" found for corner in the South line of said State of Texas tract and the South line of said 200 acre tract; THENCE North 87 °36'33" West along the South line of said 200 acre tract, for a distance of 147.55 feet to a PK nail found for corner in King's Row Road; THENCE North 87 °06'21" West continuing along the South line of said 200 acre tract, and along and near the Northerly edge of said King's Row Road, for a distance of 752.42 feet to a 5/8 inch iron rod with cap stamped "TNP" set for corner, from which a 1/2 inch iron rod with cap found for reference bears North 87 006'21" West a distance of 482.91 feet; THENCE North 11 010'04" West departing the South line of said 200 acre tract and said King's Row Road, for a distance of 1030.72 feet to a 5/8 inch iron rod with cap stamped "TNP" set for corner in the Southwesterly line of said S.H. Loop 288, from which a 1/2 inch iron rod with cap stamped "Metroplex" found for reference bears North 44 °58'34" West a distance of 178.54 feet; THENCE South 44 058'34" East along the Southwesterly line of said S.H. Loop 288, for a distance of 622.71 feet to a concrete monument found for corner; THENCE South 50 037'22" East continuing along the Southwesterly line of said S.H. Loop 288, for a distance of 200.32 feet to a broken concrete monument found for corner; THENCE South 47 °58'30" East continuing along the Southwesterly line of said S.H. Loop 288, for a distance of 679.81 feet to the POINT OF BEGINNING, and containing 10.45 acres of land, more or less. Contract of Sale Page 20 of 56 ]1 "I D �Ua � \ - \Da4s• POINSETTIA BLVD. I �� fls��q" 1 i eaacr. ux91WEB p C\RUS WAY I Ih !9j b E'm' Ir _ flOOtiLLUIIIi,,aT��� i n � b A. mmmm w _ emWE lLm9PBLw LLT0. Q A If I OwFB made `I� BOGM. AY.CN I 1 "MAY. 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WseaboFbI1CPBPIPF .Iw¢COHPORnTwNbaa Apn2a., arS,, Marrasa NUTap LgMaoHla ansvwn.E«E WRrORATIax`v HC. 0aDWH,ea.AUynMbLpESiM LYSCgAP.WYPoC Uaa�R lms.ugx courytMNweSPnO1s9N.nW Papery RewNaa Ovbn COUp,Tm tNEFOLLCW WOITBgODwOTAPFECTIH! WMECIIRMf. ASLMIWW NEPEa1: tPwxdaaDeMm�CaaAS�wa�N +nuanaL'I9we�Mtlml6�,t���aee�n vauma ism. PewmTx, M�aa�Px�w dDW��n Pa�ah. �wa.'oeea �� «tea ��H�O. &lOAil WxW,PMBRfNrtIb iFYA4 MIIEReLIGHi LONPAM',nM.Ma4},,9�s, ian4Yw VCFne aT; Ppsl,a, oem Fer«�aexm%M W H0.exaW! W s,N, MAB.epovmm8%IaAtlLREFWelG CMSUa',nu Da«�aat& 19H, uWrva N; vR,s5.0eea p.,bn pa.N.r.a..xaaam%a.waN xyaawa]BraAPwb,,9etaHwva.ae2P9 v.oa.aR.wmowmcaan.r�.. J«.BnetlWro�aap mpaaw. arewast, sm. wrvotes,. Pases.w.IPwP.ya.mmawmroCa.�n.Tw. i a. m ,...y,..,.,.eaewJ.,n.,ma.,.wrva 1BR Po.Tro.RW Prepery RemrotlDeaonCOary. Tmmandpmrab LONEBrM G%s CCLPAM'9e0 uya, 23.,9m.wLLrCO«q tbk M.BSMO,Wfe. jr ,.!D LEGEND © 00% �l d HRt HY9xaxr (EH> y Pm.Tx Pat (PP) E { — 111 e 111 ��� �Jerr LEGALDESCRIPTION � 111 BEINDat0.d5e«e trazlabM e0oaletl btla J. WMn SU«ey. MSberf NO. 200 atlIFe D. Glp Slavery. M.area NO. 20]. Lttya Damon, pamm� ' , 1 �� Coiviy, Teos,aM bemB bwwnmfenaecaAW 200 aue beaa bM tla«a0ed NaO NmBrgm Devebprenl 1, LN., earemdetl In OOnRmrR 11 1 NOrtiber 19 00 - 0 016 0 3 dMa RW Rapay gxaESaOanlan Gounry. Texas, vN EeYp mde DaNrulery EesaWetl mfdaxt: '\ BEOINNWOHeblOben m%%ale moamca buM braa««aan rgle pdnlb ba SaUOreea«y One aS.H.loop 30B,e anode xidN rl9M1lotwry '1 eewlmamaoeeabuW SbmaTa. a.. m,maaaawvam�aloze.P.Oelxan,fx.a na�wsmoaamn c«.ryrelma: `ilk THExce swn oz•xm' WmLabo9 nw sauwmlWy Em a eeb B.H. Laa92E6, 1 «. ammme a 3z.fi6adm.ln mal trun ma.Km x n.wT9- 'METROPIIX'bvMbrwnwrm by SOUK OmamH 5lebaTesasba «eMBw3«M Siw of aab 200 ave bast THENCE Nab OT'3633'Wen ebW 9a SaMWaseH 200 acre tract baOklalcea 101.55 feama PK mO buM for mnerb Mg'e RVe 1 � AlIALw9ua Roe01 '1 11 CCCYIY CLYEWEMBIfL ITC. THENGENMhnTOS21' Weafor! M abn9We 8auN kna®iE 200 eaehat aM eWq enE mai Ne N«Vnnyetl9ea eaM Krg'e Fav RaaE. '`\ CAl1ICt01 AG. MGNOI-0Olip bra dwbrwaaJ52A2 MLbe 69 bN ban rsE xilM1 aW a«roea TNF'eel br mrrer, lmm vfikAS12MMMroE wM mp bard Mtebrn «Ice bears NMh8TOS21'Wmta EW«wa Of 08291 feat _ 1111 .�\ LE.CDtL ae 1 '� THENCE N«N11'10'01•WWtlepeNy be S«M 6neamH 2W a«e vaaam acid plq's ROw RoeO ,i«a 6aa«ed IOW.T21Mma &0 bWb bon rotl xilM1 W a,empeO'ialY sal f« [omar b tla SoOUanas,«y fine a aeH B.H. Loop 208, tram wbM a 1R IM M r00 %Mb Oep smngeJ a ` ; 1 'MetropbKloUM brra««ce burrs N«w 04'50'39'Wmla OLmrweal]0.5a fees 3 � q 1 1 a_. `� THENCE SOU9140'S8'34• Fsa elar9 em SoWwrestnly Cna d eeb S.H. lmp 288. br a elelam a 82R.T1 NH m e canaeb mon,anWl lountl far 11 1' S�. � � —C.-- Eael wnl'v hg aoe9 ma Soeb.Wtx Ilm a mb S.H. La 200, f« a m a 2WM bN b a b o«icrele mwlnwnlbuM braomx '. '� TEENCE S 47 *MW E m rKft ebrq 8a S«M * ! a uH S.H. Loop 288. br s dpence a VGAI W b en pDBTT DE 1 1 a "'sq•s�,. BEDIxxwD..mox�minb91Da5 aQaaawa.,,,are «I.aa. w 1045 ACRES EARr� CCOWCOlYEICEYBf LLl0. CAfIEOOCO%C. COG. C0.914MN6p 1 ae. fV.C.0.C.T. 1 - �`, \— ___�__�. ,. upvpryoammmmaYeAWnaaaiMim WrAH®Ptlanaf TlPaa.aYaaaromvaroYe. '... 2 rw08a1WRSm1E bxwn an gdryl«a Wwmnwa cma.ab5ywnat9a0(XpThCwJNLae pom2n2W)raeA.aO S,slwm CwiixmyOpaNa Peraav SWae (Waslw Ra+mmelaw�rbRL„Oaeawaa. Troawmwbareamw dennnem�wrsa +eu,o vaem a .�PbA...p.�tl�H�aE.a«a,aW,a,a,T. i `'\ eA9., a.. le., 1««, w. x: �Taa. xww. e... a. PU%yawaars.PC«.,n.tla.ycaao~9aaee Ease waa�RwHaP. cro.aeowwEa.e,2,cozaoom.a,2mmaW w, frpRPwmw1.A«f,e. �•� m,,. 20Mxla.. �« aaaa>o aaA�..« A,. a.. ,aP„x�..a�wPa�ba«a,.aa�%.x..la� eaoeatl. \ 4..i mwwweae aex en %us waaWwm...lJer ®aN.wHNaaHaNUMw m,enbxwa `.� eap PWabaalaer«sN+nlnme 5. TlrewroWmerHweaartvieem,mA�9xM. aeMaYwxbasmaF YWAWStlbma M'a /L `� eavegam abrcaaWUxuPmwwaebdnq .urtpamatai WdelYbm 1Rawasv p.aW\ — r roe 2T w7szar- a� a E oz e '°' ALTAIACSM LAND TITLE SURVEY 3p m 1 m BROWN DEVELOPMENT 1, LTD. I $ I I I SEIN SITUAT LAND DINTHE 8, THE D. CULP SURVEY, ABSTRACT NO. 287 City OfD nW D, D9ntOD C.-ty, Texas L`J rho 1' a a EXHIBIT 'W -2 LEGAL DESCRIPTION ELECTRIC EASEMENT BEING a 0.802 acre tract of land situated in the J. Coltart Survey, Abstract Number 288, City of Denton, Denton County, Texas, and being part of that certain tract of land described in a Deed to Brown Development 1, Ltd., as recorded in Document Number 98.1683 of the Real Property Records of Denton County, Texas, and being more particularly described as follows: COMMENCING at a 5f8 inch iron rod with cap stamped "TNP" set in the Southwesterly line of State Highway Loop 288 '(a variable width right -of -way), from which a concrete monument found for reference bears South 44° 58' 34" East a distance of 622.71 feet; THENCE South 11 ° 10'04" East departing the Southwesterly line of said State Highway Loop 288, for a distance of 54.68 feet to a point for corner at the POINT OF BEGINNING for the herein described easement; THENCE South I V 10' 04" East passing a 5/8 inch iron rod with cap stamped "TNP" set for reference at the centerline of the herein described easement at a distance of 65.73 feet, and continuing for a total distance of 131.46 feet to a point for comer, from which a 5/8' inch iron rod with cap stamped "TNP" set bears South 11 ° 10'04" East a distance of 849.05 feet; THENCE North 45° 57' 13" West for a distance of 487.71 feet to a point for corner; THENCE North 39 38'06" East for a distance of 103.09 feet to a point for comer on a non- tangent curve to the right in the Southwesterly line of said State Highway Loop 288, from which a broken concrete monument found for reference at the beginning of said curve bears North 53° 06' 36" West, a chord distance of 899.36 feet, THENCE in a Southeasterly direction, along the Southwesterly line of said State Highway Loop 288, and along said non- tangent curve to the right having a central angle of 00° 39' 49 ", a radius of 5619.58 feet, a chord bearing of South 48° 11' 19" East, a chord distance of 65.08 feet and an arc length of 65.08 feet to a broken concrete monument found for corner at the end' of said curve; THENCE South 48° 13' 02" East continuing along the Southwesterly line of said State Highway Loop 288, for a distance of 9.98 feet to a point for corner; THENCE South 39° 38' 06" West departing the Southwesterly line of said State Highway Loop 288, fora distance of 30.81 feet to a point for corner; THENCE South 45° 57' 13" East for a distance of 310.31 feet to the POINT OF BEGINNING, and containing 0.802 acres of land, more or less. To dB. Turner, R.P.L.S. Jan. 21, 2014 Jan. 7, 2014 — Field T.B.P.L.S. Finn 10011601 Contract of Sale Page 22 of 56 SHEET' 1 OF '2 DME 13222 ro sv W (D N W O H1 UT M LINE LEGEND DISTANCE CALCULATED POINT ■ CONC. MONUMENT FOUND (CMF) ® 5/8" IRS STAMPED TNP O IRON ROD FOUND (IRF) CM CONTROL MONUMENT - -- - - - - -- CENTERLINE ELEC. ESMT. L5 S 39'38'06" W ESMT. BOUNDARY — — — — — - — TEMP. CONST. ESMT. -- -- - -- — -- ADJACENT PROPERTY LINE - -- — — — — — — — — — — EXISTING ESMT. - - - - - - - • — I RIGHT—CF—WAY LINE LINE BEARING DISTANCE L1 S 11'10'04" E 54.68' L2 S 11'10'04" E 131.46' L3 N 3938'06" E 103.09' L4 S 48'13'02" E 9.98' L5 S 39'38'06" W 1 30.81' LINE DELTA RADIUS ARC L CH BEARING CH D EXHIBIT C1 00'39'49" 5619.58' 65.08' S 48. 11'19" E 65.08 5-6'// 0 ' \ R = 5619.58' 1 1 \ 2 •y ` i L= 900.32' i I i c10o�� 9f'q "• \ t K L4 CB = N 53'06'36" W i i c�G \ It It M CHD 899.36' i I I ARE & 0, \ 0 100 200 POINT OF i 2oD' raLE� i' = ! \'�+ `�•`� COMMENCING SC i �� POINT OF 1, SIN LAIR REFINING 185 & NY s�Oc��s� \\ �' e�Q' ^`� BEGINNING VOL. 467, PG. 38 II iFys, \\ b G \ ( CONDEMNATION 25' EASEMENT D.R.D.C.T. �, a��c1i \ ?^ I DEHI GAS PIPELINE CORPORATION (VOL: 1851, PG. 583 �, i 1 VOL. 4, PG. 303 ALLOWS FIBER OPTIC CABLE) i \ 9 t �S DISTRICT COURT MINUTES & VOL. 1952, PG. 270 1 SS,1 AR. 1 1 LONE STAR GAS COMPANY R.P.R.D.C.T. i ; 9T S�, DOC. NO. 95 -16944 ASSIGNMENT TO y , 1 610 � 1 t R.P.R.DCT \ LONE STAR GAS CO. 1I I sl]. ��Q'��rl`�� ���� 1 DOC. NO. 95 -16944 i i Q���f( �� N (D. 260 N tt , R.P.R.D.C.T. 1' 1 1 1 i i �s;P j (item 10m & n) 1' BROWN DEVELOPMENT 1, LTD. 1� i DOC No 98 -1683 rn, I 40' WIDE DRAINAGE THIS EXHIBIT WAS PREPARED WITH THE SENEFlT OF TITLE RESOURCES GUARANTY COMPANY t' I OD , 1 1 & UTILITY ESMT , 1� COMMITMENT FOR TITLE INSURANCE, OF ND. 111795, EFFECTIVE DATE: JANUARY 5, 2014 I R.P.R,D.C.T. '` ` VOL. 1898, PG. 417 S S THE FOLLOWING SCHEDULE 8 ITEMS DO AFFECT THIS TRACT, AS SHOWN: 101, tom and ton 1' I i APPROXIMATE SURVEY .0 1 1 v=' 1 1 R.P.R.D.C.T. I (Item 101) \ `^ 0• ����0 ��• LINE •6 •• ••4859 THE FOLLOWING ITEMS DO NOT AFFECT THIS TRACT: 1 www.tnpinc.com tOq. Easement executed by H.C. Brown to Denton County Electric Cooperative. Inc. tiled I j September 25, 1953, recorded In Volume 402, Page 107, D.R.D.C.T., Agreement Defining Easement filed March 26, 1974, recorded In Volume 7DO, Pogo 726, D.R.D.C.T. 1 I. It OrQUEY I 1 1 PROPOSED >0.45 AC. `. �'r r• 1 �. l�Jl�Jh: P - 7 1 1. tOh. Easement executed by H.G. Brown and wits, Inc Brown to Texas Power k Light .Company � 1 � • ��`� 1 1 SUBSTATION filed June 22. 1956, recorded in Volume 422, Page 416, D.R.D.C.T. 1 1 4 ���V `v' u No 1 1 TRACT II j 1 1 NOTE: Beatings are based on the Texas State Plane Coordinate System; North Central Zone (NAD83). &07; L4"' �) Wf a Todd B. Turner, R.P.L.S. Date: Jan. 21, 2014 Jan. 7, 2014- Field Firm Reg. No. 10011601 OF ISTE RFO vN teague nail & perking . 1617 Centre loce6ft" TODD 8 TURNER Denton, Texas 76206 •6 •• ••4859 94o.3B3A177 ph 940.363.l026hr o v: sP,, aP•„ www.tnpinc.com SHEET 2 OF 2 JOB NO. DME13222 ELECTRIC EASEMENT 0.802 ACRES SITUATED IN THE J. COLTART SURVEY ABSTRACT NO. 288 CITY OF DENTON DENTON COUNTY, TEXAS t� N- it ,u EXHIBIT "A " -3 LEGAL DESCRIPTION TEMPORARY CONSTRUCTION EASEMENT BEING a 0.521 acre tract of land situated in the J. Coltart Survey, Abstract Number 288, City of Denton, Denton County, Texas, and being part of that certain tract of land described in a Deed to Brown Development 1, Ltd., as recorded in Document Number 98 -1683 of the Real Property Records of Denton County, Texas, and being more particularly described as follows: COMMENCING at a 5f8 inch iron rod with cap stamped "TNP" set in the Southwesterly line of State Highway Loop 288 (a variable width right -of- way), from which a concrete monument found for reference bears South 44 58' 34" East a distance of 622.71 feet; THENCE South 1 V 10' 04" East departing the Southwesterly line of said State Highway Loop 288, for a distance of 186.14 feet to a point for corner at the POINT OF BEGINNING for the herein described easement THENCE South 11 ° 10' 04" East for a distance of 61.35 feet to a point for corner, from which a 518 inch iron rod with cap stamped "TNP" set bears South 11 ° 10' 04" East a distance of 787.70 feet; THENCE North 45° 57' 13" West for a distance of 570.50 feet to a point for corner; THENCE North 39° 38'06" East for a distance of 136.51 feet to a point for corner on a non - tangent curve to the right in the Southwesterly line of said State Highway Loop 288, from which a broken concrete monument found for reference at the beginning of said curve bears North 53° 17' 19 "' West, a chord distance of 864.45 feet, THENCE in a Southeasterly direction, along the Southwesterly line of said State Highway Loop 288, and along said non - tangent curve to the right having a central angle of 00° 21' 25 ", a radius of 5619.58 feet, a chord bearing of South 48° 41'56" East, a chord distance of 35.01 feet and an arc length of 35.01 feet to a point for corner; THENCE South 39° 3'8' 06" West departing the Southwesterly line of said State Highway Loop 288, for a distance of 103.09 feet to a point for corner; THENCE South 45 57' 13" East for a distance of 487.71 feet to the POINT OF BEGINNING, and containing 0.521 acres of land, more or less. Todd B. Turner, R.P.L.S. Jan. 21, 2014 Jan. 7, 2014 — Field T.B.P.L.S. Firm 10011601 Contract of Sale Page 24 of 56 SHEET 1 OF 2 DME13222 �O D it V Qt J1 Ci it h O hit LP rn� W (D LINE LEGEND ® CALCULATED POINT S 1110'04" E CONC. MONUMENT FOUND (CMF) ® 5/8" IRS STAMPED TNP O IRON ROD FOUND (IRF) CM CONTROL MONUMENT - -- - -- --- CENTERLINE ELEC. ESMT. L5 S 3918'06" W ESMT. BOUNDARY L6 S 48'13'02" E — — — — — — TEMP. CONST. ESMT. --- - -- - — ADJACENT PROPERTY LINE - -- — — — — — — — — EXISTING ESMT. — • . — — — • • — I RIGHT —OF —WAY LINE LINE BEARING DISTANCE T.1 S 1110'04" E 54.68' L2 S 11'10'04" E 131.46' L3 S 11'10'04" E 61.35' L4 I N 39'38'06° E 136.51' L5 S 3918'06" W 103,09' L6 S 48'13'02" E 9,98' L7 S 48'13'02" E 89.32' G EXHIBIT "B"-3'-,,.. 2qsy \. G4 1'{9 • � Ott` 411' �� • \ POINT OF F COMMENCING SINCLAIR REFINING COMPANY VOL. 342, PG. 185 &`j DELTA RADIUS ARC L t 1 \ CH D A = 08' 49' 20" I 5619.58' R = 5619.58' S 48'41.56" ' & VOL. 1952, PG. 270 L = 865.30' 1 5619:58' t� I CB = S 53'17'19" E LONE STAR GAS CO. DOC. NO. 95 -16944 i Sys 1 i i ABSU ((9`� NQ 268 1 i 1 CHD = 864.45' 1 to ! 1 I' t` 1 1 I 2qsy \. G4 1'{9 • � Ott` 411' �� • \ POINT OF F COMMENCING SINCLAIR REFINING COMPANY VOL. 342, PG. 185 &`j DELTA RADIUS ARC L CH BEARING CH D #LINE 00.21'25" 5619.58' 35.01' S 48'41.56" ' & VOL. 1952, PG. 270 00'39'49" 1 5619:58' 65.08` S 48'11'19" E 65.0$' 2qsy \. G4 1'{9 • � Ott` 411' �� • \ POINT OF F COMMENCING SINCLAIR REFINING COMPANY VOL. 342, PG. 185 &`j sof ! Q ±\ VOL. 467; PG. 38 D.R.D.C.T. (VOL. 1851, PG. 583 teague Hall & ALLOWS FIBER OPTIC CABLE) Perkins & VOL. 1952, PG. 270 I' i R.P.R.D.C.T. ASSIGNMENT TO col �l k r�i� SURVEY II ir { LONE STAR GAS CO. DOC. NO. 95 -16944 i Sys 1 i i ABSU ((9`� NQ 268 1 i 1 R.P,R.D.C,T. i ! (item 1 Om & n) j N NOTES: THIS EXHIBIT WAS PREPARED MATH THE BENEFIT OF TITLE RESOURCES GUARANTY COMPANY COMMITMENT FOR TITLE INSURANCE, OF NO. 111795, EFFECTIVE DATE: JANUARY 5, 2014 THE FOLLOWING SCHEDULE 8 ITEMS DO AFFECT THIS TRACT. AS SHOYM: 101, Tom and ton. THE FOLLOBANG ITEMS DO NOT AFFECT THIS TRACT: 109. Easement executed by H.G. Brown to Denton. County Electric Cooperative, Inc. filed September 25, 1853, recorded in Volume 402, Page 107, D.R.D.C.T., Agreement Defining Easement filed Match 26,1974, recorded in Volume 7D0, Page 726. D.R.D.C.T. BROWN DEVELOPMENT 1, LTD, 's DOC. N0.98 -1683 0 { ' ILP.R.D.C.T. , - i - �AEp1RQXWAJE -MAY— LINE-, nn CULP SURVEY I 1 10h, Easement executed by H.G• Brown and wife, Ina Brown to Texas Power do Light Company i' i filed June 22, 1956, recorded In Volume 422, Page 416, D.R.D.C.T. ll�b �6 NOTE: Bearings are based on the Texas State Plane Coordinate System, North Central Zone (NAD83). r Todd B. Turner, R.P.L.S. Date: Jan. 21, 2014 Jan. 7, 2014- Field Firm Reg. No. 10011601 i 1 o 1 i 1 1 i rn 1 { { v � � J , { O � i 1 r 1 1 1 1 { 1 I 1 1 1 t 1 1 1 { �1 li 1 1 1 } . 1 { 1 BPOINT OF �{ BEGINNING 1 1 \`'sra 1 1 40' WOE DRAINAGE & UTILITY ESMT VOL. 1898, PG. 417 R.P.R.O.C.T. (item 101) I 1 0 10D 200 SCALES V = 200' CONDEMNATION 25' EASEMENT DEHI GAS PIPELINE CORPORATION VOL. 4, PG. 303 e r DISTRICT COURT MINUTES LONE STAR GAS COMPANY DOC. NO. 95- 16944 R.P.R,DCT 1 \ 1 { 1 1 1 1 l l s PROPOSED 10.45 AC. SUBSTATION TRACT 07, • 0 F ��• T� STE t RFO� PG 4z,l teague Hall & Perkins ........... • • 1517 Antra Plated TODD B TURNER Denton, Texas 76205 ...................... r•• 114a.365A177ph 990.958.0026fx: .10 4859 P www.tnptnsean SHEET 2 OF 2 JOB NO, DME13222 00a>. '02 , 35' TEMPORARY CONSTRUCTION EASEMENT 0.521 ACRES BEING SITUATED IN THE J. COLTART SURVEY ABSTRACT NO. 288 CITY OF DENTON DENTON COUNTY, TEXAS t7J X N- tr N• rt i. W ATTACHMENT "I" 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, BROWN DEVELOPMENT I, LTD., A TEXAS LIMITED PARTNERSHIP; JULIE LUELLE BROWN, SUCCESSOR INDEPENDENT EXECUTOR OF THE ESTATE OF GERALD W. BROWN, DECEASED; JULIE LUELLE BROWN, TRUSTEE OF THE JULIE LUELLE BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; JULIE LUELLE BROWN, TRUSTEE OF THE JULIE LUELLE BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; GERALD W. BROWN, II, TRUSTEE OF THE GERALD W. BROWN, II NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; GERALD W. BROWN, II, TRUSTEE OF THE GERALD W. BROWN, II EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; JASON EDWIN BROWN, TRUSTEE OF THE JASON EDWIN BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; JASON EDWIN BROWN, TRUSTEE OF THE JASON EDWIN BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; JINGER JEANNINE BROWN, TRUSTEE OF THE JINGER JEANNINE BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; JINGER JEANNINE BROWN, TRUSTEE OF THE JINGER JEANNINE BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; ALICIA MARGARET NOEL BROWN, TRUSTEE OF THE ALICIA MARGARET NOEL BROWN NONEXEMPT LIFETIME TRUST; ALICIA MARGARET Contract of Sale Page 26 of 56 NOEL BROWN, TRUSTEE OF THE ALICIA MARGARET NOEL BROWN EXEMPT LIFETIME TRUST; CONNIE L. BROWN, INDEPENDENT EXECUTOR OF THE ESTATE OF ROBERT M. BROWN, DECEASED; CONNIE L. BROWN, TRUSTEE OF THE ROBERT M. BROWN EXEMPT FAMILY TRUST; CONNIE L. BROWN, TRUSTEE OF THE ROBERT M. BROWN NONEXEMPT FAMILY TRUST, ( herein called "Grantor "), for and in consideration of the sum of TEN AND NO /100 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 E. McKinney, Denton, Texas 76201, the receipt and sufficiency of 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 on Exhibit "A -1 ", 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 heirs, beneficiaries, devisees, successors and assigns all oil, gas and other minerals in, on and under and that may be produced from the Property. Grantor, its heirs, beneficiaries, devisees, 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 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 vertical, water wells, pit areas, seismic activities, tanks or tank batteries, pipelines, roads, electricity or other utility infrastructure, and /or for subjacent or lateral support for any surface facilities or well bores, or any other infrastructure or improvement of any kind or type in connection with or related to the reserved oil, gas and other minerals, and /or related to the exploration or production of same. As used herein, the term "minerals" shall include oil, gas and all associated Contract of Sale Page 27 of 56 hydrocarbons, and shall exclude (i) all substances (except oil, gas and all associated hydrocarbons) that any reasonable extraction, mining or other exploration and /or production method, operation, process or procedure would consume, deplete or destroy the surface of the Property; and (ii) all substances (except oil and gas) which are at or near the surface of the Property. The intent of the parties hereto is that the meaning of the term "minerals" as utilized herein, shall be in accordance with that set forth in Reed v. Wylie, 597 S.W.2d 743 (Tex. 1980). As used herein, the term "surface of the Property" shall 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 of the earth. This conveyance is subject to the following: (All of those Exceptions from Coverage found on Schedule B of the Owners Title Policy to which referenced is hereby made for all purposes and incorporated by reference as is fully set forth herein.) TO HAVE AND TO HOLD the Property, together with all and singular the rights and appurtenances thereto in anywise belonging unto Grantee and Grantee's successors and assigns forever; and Grantor does hereby bind Grantor and Grantor's heirs, beneficiaries, devisees, successors and 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 claim the same or any part thereof when the claim is by, through, or under Grantor but not otherwise. EXECUTED the day of , 2014 BROWN DEVELOPMENT I, LTD., a Texas limited partnership By: BROWN DEVELOPMENT CORPORATION its general partner Capacity: Contract of Sale Page 28 of 56 THE ESTATE OF GERALD W. BROWN, DECEASED JULIE LUELLE BROWN, AS SUCCESSOR INDEPENDENT EXECUTOR THE JULIE LUELLE BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN JULIE LUELLE BROWN, AS TRUSTEE THE JULIE LUELLE BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN JULIE LUELLE BROWN, AS TRUSTEE THE GERALD W. BROWN, II NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN GERALD W. BROWN, II, AS TRUSTEE THE GERALD W. BROWN, II EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN GERALD W. BROWN, II, AS TRUSTEE THE JASON EDWIN BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN JASON EDWIN BROWN, AS TRUSTEE Contract of Sale Page 29 of 56 THE JASON EDWIN BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN JASON EDWIN BROWN, AS TRUSTEE THE JINGER JEANNINE BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN JINGER JEANNINE BROWN, AS TRUSTEE THE JINGER JEANNINE BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN JINGER JEANNINE BROWN, AS TRUSTEE THE ALICIA MARGARET NOEL BROWN NONEXEMPT LIFETIME TRUST ALICIA MARGARET NOEL BROWN, AS TRUSTEE THE ALICIA MARGARET NOEL BROWN EXEMPT LIFETIME TRUST ALICIA MARGARET NOEL BROWN, AS TRUSTEE THE ESTATE OF ROBERT M. BROWN, DECEASED CONNIE L. BROWN, AS INDEPENDENT EXECUTOR THE ROBERT M. BROWN EXEMPT FAMILY TRUST CONNIE L. BROWN, AS TRUSTEE Contract of Sale Page 30 of 56 THE ROBERT M. BROWN NONEXEMPT FAMILY TRUST CONNIE L. BROWN, AS TRUSTEE ACKNOWLEDGMENT THE STATE OF § COUNTY OF § This instrument was acknowledged before me on the day of , 2014 by as of BROWN DEVELOPMENT CORPORATION, the general partner of BROWN DEVELOPMENT I, LTD., a Texas limited partnership, and acknowledged to me that his /her signature is the act of the said partnership and that he /she executed the same on behalf of the said partnership and in the capacity therein stated. Notary Public, in and for the State of Texas My Commission Expires: THE STATE OF § COUNTY OF § This instrument was acknowledged before me on this day of , 2014, by JULIE LUELLE BROWN, SUCCESSOR INDEPENDENT EXECUTOR of THE ESTATE OF GERALD W. BROWN, DECEASED, on behalf of the said estate and in the capacity therein stated. My Commission Expires: Notary Public, in and for the State of Texas Contract of Sale Page 31 of 56 THE STATE OF § COUNTY OF § This instrument was acknowledged before me on this day of , 2014, by JULIE LUELLE BROWN, Trustee of THE JULIE LUELLE BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN, a Texas trust on behalf of the said trust and in the capacity therein stated. Notary Public, in and for the State of Texas My Commission Expires: THE STATE OF § COUNTY OF § This instrument was acknowledged before me on this day of , 2014, by JULIE LUELLE BROWN, Trustee of THE JULIE LUELLE BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN, a Texas trust on behalf of the said trust and in the capacity therein stated. My Commission Expires: Notary Public, in and for the State of Texas Contract of Sale Page 32 of 56 THE STATE OF § COUNTY OF § This instrument was acknowledged before me on this day of , 2014, by GERALD W. BROWN, 11, Trustee of THE GERALD W. BROWN, II NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN, a Texas trust on behalf of the said trust and in the capacity therein stated. Notary Public, in and for the State of Texas My Commission Expires: THE STATE OF § COUNTY OF § This instrument was acknowledged before me on this day of , 2014, by GERALD W. BROWN, 11, Trustee of THE GERALD W. BROWN, II EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN, a Texas trust on behalf of the said trust and in the capacity therein stated. My Commission Expires: Notary Public, in and for the State of Texas Contract of Sale Page 33 of 56 THE STATE OF § COUNTY OF § This instrument was acknowledged before me on this day of , 2014, by JASON EDWIN BROWN, Trustee of THE JASON EDWIN BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN, a Texas trust on behalf of the said trust and in the capacity therein stated. Notary Public, in and for the State of Texas My Commission Expires: THE STATE OF § COUNTY OF § This instrument was acknowledged before me on this day of , 2014, by JASON EDWIN BROWN, Trustee of THE JASON EDWIN BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN, a Texas trust on behalf of the said trust and in the capacity therein stated. My Commission Expires: Notary Public, in and for the State of Texas Contract of Sale Page 34 of 56 THE STATE OF § COUNTY OF § This instrument was acknowledged before me on this day of , 2014, by JINGER JEANNINE BROWN, Trustee of THE JINGER JEANNINE BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN, a Texas trust on behalf of the said trust and in the capacity therein stated. Notary Public, in and for the State of Texas My Commission Expires: THE STATE OF § COUNTY OF § This instrument was acknowledged before me on this day of , 2014, by JINGER JEANNINE BROWN, Trustee of THE JINGER JEANNINE BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN, a Texas trust on behalf of the said trust and in the capacity therein stated. My Commission Expires: Notary Public, in and for the State of Texas Contract of Sale Page 35 of 56 THE STATE OF COUNTY OF This instrument was acknowledged before me on this day of , 2014, by ALICIA MARGARET NOEL BROWN, Trustee of THE ALICIA MARGARET NOEL BROWN NONEXEMPT LIFETIME TRUST, a Texas trust on behalf of the said trust and in the capacity therein stated. Notary Public, in and for the State of Texas My Commission Expires: THE STATE OF COUNTY OF This instrument was acknowledged before me on this day of , 2014, by ALICIA MARGARET NOEL BROWN, Trustee of THE ALICIA MARGARET NOEL BROWN EXEMPT LIFETIME TRUST, a Texas trust on behalf of the said trust and in the capacity therein stated. My Commission Expires: Notary Public, in and for the State of Texas Contract of Sale Page 36 of 56 THE STATE OF § COUNTY OF § This instrument was acknowledged before me on this day of , 2014, by CONNIE L. BROWN, Independent Executor of THE ESTATE OF ROBERT M. BROWN, DECEASED, on behalf of the said estate and in the capacity therein stated. Notary Public, in and for the State of Texas My Commission Expires: THE STATE OF § COUNTY OF § This instrument was acknowledged before me on this day of , 2014, by CONNIE L. BROWN, Trustee of THE ROBERT M. BROWN EXEMPT FAMILY TRUST, a Texas trust on behalf of the said trust and in the capacity therein stated. Notary Public, in and for the State of Texas My Commission Expires: THE STATE OF § COUNTY OF § This instrument was acknowledged before me on this day of , 2014„ by CONNIE L. BROWN, Trustee of THE ROBERT M. BROWN NONEXEMPT FAMILY TRUST, a Texas trust on behalf of the said trust and in the capacity therein stated. My Commission Expires: Upon Filing Return To: The City of Denton - Engineering Attn: Paul Williamson 901 -A Texas Street Denton, TX 76209 Notary Public, in and for the State of Texas Send Tax Billing Statements To: The City of Denton Attn: Finance Department 215 East McKinney Street Denton, Texas 76201 Contract of Sale Page 37 of 56 Exhibit A -1 LEGAL DESCRIPTION BEING a 10.45 acre tract of land situated in the J. Coltart Survey, Abstract No. 288 and the D. Culp Survey, Abstract No. 287, City of Denton, Denton County, Texas, and being known as part of a called 200 acre tract of land described in a Deed to Brown Development I, Ltd., as recorded in Document Number 1998 - 001683 of the Real Property Records of Denton County, Texas, and being more particularly described as follows: BEGINNING at a broken concrete monument found for corner at an angle point in the Southwesterly line of S.H. Loop 288, a variable width right -of -way described in a Deed to the State of Texas, as recorded in Volume 1029, Page 134 of the Deed Records of Denton County Texas; THENCE South 02 034'02" West along the Southwesterly line of said S.H. Loop 288, for a distance of 32.68 feet to a 1/2 inch iron rod with cap stamped "METROPLEX" found for corner in the South line of said State of Texas tract and the South line of said 200 acre tract; THENCE North 87 °36'33" West along the South line of said 200 acre tract, for a distance of 147.55 feet to a PK nail found for corner in King's Row Road; THENCE North 87 006'21" West continuing along the South line of said 200 acre tract, and along and near the Northerly edge of said King's Row Road, for a distance of 752.42 feet to a 5/8 inch iron rod with cap stamped "TNP" set for corner, from which a 1/2 inch iron rod with cap found for reference bears North 87 °06'21" West a distance of 482.91 feet; THENCE North 11 °10'04" West departing the South line of said 200 acre tract and said King's Row Road, for a distance of 1030.72 feet to a 5/8 inch iron rod with cap stamped "TNP" set for corner in the Southwesterly line of said S.H. Loop 288, from which a 1/2 inch iron rod with cap stamped "Metroplex" found for reference bears North 44 058'34" West a distance of 178.54 feet; THENCE South 44 058'34" East along the Southwesterly line of said S.H. Loop 288, for a distance of 622.71 feet to a concrete monument found for corner; THENCE South 50 037'22" East continuing along the Southwesterly line of said S.H. Loop 288, for a distance of 200.32 feet to a broken concrete monument found for corner; THENCE South 47 058'30" East continuing along the Southwesterly line of said S.H. Loop 288, for a distance of 679.81 feet to the POINT OF BEGINNING, and containing 10.45 acres of land, more or less. Contract of Sale Page 38 of 56 ATTACHMENT "2" 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. ELECTRIC UTILITY EASEMENT THE STATE OF TEXAS § COUNTY OF DENTON § KNOW ALL MEN BY THESE PRESENTS: THAT, BROWN DEVELOPMENT I, LTD., a Texas limited partnership; JULIE LUELLE BROWN, SUCCESSOR INDEPENDENT EXECUTOR OF THE ESTATE OF GERALD W. BROWN, DECEASED; JULIE LUELLE BROWN, TRUSTEE OF THE JULIE LUELLE BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; JULIE LUELLE BROWN, TRUSTEE OF THE JULIE LUELLE BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; GERALD W. BROWN, II, TRUSTEE OF THE GERALD W. BROWN, II NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; GERALD W. BROWN, II, TRUSTEE OF THE GERALD W. BROWN, II EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; JASON EDWIN BROWN, TRUSTEE OF THE JASON EDWIN BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; JASON EDWIN BROWN, TRUSTEE OF THE JASON EDWIN BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; JINGER JEANNINE BROWN, TRUSTEE OF THE JINGER JEANNINE BROWN NONEXEMPT LIFETIME TRUST Contract of Sale Page 39 of 56 UNDER THE WILL OF GERALD W. BROWN; JINGER JEANNINE BROWN, TRUSTEE OF THE JINGER JEANNINE BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN; ALICIA MARGARET NOEL BROWN, TRUSTEE OF THE ALICIA MARGARET NOEL BROWN NONEXEMPT LIFETIME TRUST; ALICIA MARGARET NOEL BROWN, TRUSTEE OF THE ALICIA MARGARET NOEL BROWN EXEMPT LIFETIME TRUST; CONNIE L. BROWN, INDEPENDENT EXECUTOR OF THE ESTATE OF ROBERT M. BROWN, DECEASED; CONNIE L. BROWN, TRUSTEE OF THE ROBERT M. BROWN EXEMPT FAMILY TRUST; and CONNIE L. BROWN, TRUSTEE OF THE ROBERT M. BROWN NONEXEMPT FAMILY TRUST (the "GRANTOR "), for and in consideration of Ten Dollars ($10.00), and other good and valuable consideration, to GRANTOR in hand paid by the CITY OF DENTON, a Texas home rule municipal corporation, which is located in Denton County, Texas, and whose mailing address is 215 E. McKinney, Denton, Texas 76201 ( "GRANTEE ") has granted, sold, and conveyed and by these presents does grant, sell and convey unto the GRANTEE perpetual, exclusive and unobstructed easements and rights of way and a temporary construction easement (collectively, the "EASEMENT ") for the purposes of erecting, operating, maintaining and servicing thereon one or more underground and /or above ground electric transmission and electric distribution power and /or communication lines, each consisting of a variable number of wires and cables, along with all necessary, convenient or desirable appurtenances, attachments and supporting structures, including without limitation, foundations, guy wires and guy anchorages, and structural components (collectively referred to herein as the "FACILITIES "), in, on, over, under and across that certain real property situated in Denton County, Texas, being approximately 0.802 acres and being more particularly described on Exhibit "A -2" and depicted on Exhibit "B -2 ", attached hereto and incorporated into Contract of Sale Page 40 of 56 this document by reference (the "EASEMENT PROPERTY "). GRANTEE shall have the right of ingress, egress and regress in, on, over, under and across the EASEMENT PROPERTY for the purposes of and right to construct, maintain, operate, improve, reconstruct, increase or reduce the size and capacity, repair, relocate, inspect, patrol, maintain, remove or replace such FACILITIES within the EASEMENT PROPERTY as GRANTEE may from time to time find necessary, convenient or desirable, along with all rights necessary or convenient for full use and enjoyment of the above grant, including access over, across and upon the EASEMENT PROPERTY. GRANTEE shall have the right to trim or remove trees or shrubbery within said EASEMENT PROPERTY, to the extent, in the sole judgment of GRANTEE, necessary or desirable to prevent possible interference with the efficiency, safety and /or convenient operation of the FACILITIES or to remove possible efficiency, safety or operational hazards thereto. GRANTOR shall not make changes in grade, elevation or contour of the EASEMENT PROPERTY or impound water within, over and /or across the EASEMENT PROPERTY without prior written consent of GRANTEE. For the same consideration GRANTOR does hereby grant, bargain, sell and convey unto GRANTEE a temporary workspace or temporary construction easement (the "Temporary Construction Easement ") on, in, upon, under, over, through and across that certain real property situated in Denton County, Texas, being approximately 0.521 acres and being more particularly described on Exhibit "A -3" and depicted on Exhibit "B -3" (the "TEMPORARY CONSTRUCTION EASEMENT PROPERTY ") for the use by GRANTEE, its agents, employees, contractors, subcontractors, workmen, and representatives only in connection with and during the original construction of the FACILITIES. GRANTEE, its agents, employees, contractors, subcontractors, workmen, and representatives shall: 1) have the right of ingress, Contract of Sale Page 41 of 56 egress and regress in, along, upon, under and across said TEMPORARY CONSTRUCTION EASEMENT PROPERTY for the purpose of access, staging of materials and equipment, construction and grading activities or any part thereof, and; 2) without the payment of additional consideration, have the right to clear and remove from the TEMPORARY CONSTRUCTION EASEMENT PROPERTY such fences, signage, buildings, vegetation and trees and other obstructions as may now be found therein. The Temporary Construction Easement shall commence on the date of the "Contractor Notice to Proceed" to begin construction of the FACILITIES and terminate two (2) years from such date of the "Contractor Notice to Proceed ". GRANTOR, for itself, its heirs, beneficiaries, devisees, successors and assigns, subject to the terms herein, expressly reserves the right to occupy and use the EASEMENT PROPERTY for all other purposes that will not interfere with the GRANTEE'S full enjoyment of the EASEMENT and /or the exercise of GRANTEE's rights hereunder. GRANTOR acknowledges the EASEMENT granted herein is exclusive, so as to exclude all other utility providers or any other party's use of the EASEMENT PROPERTY; provided, however, the EASEMENT is nonexclusive as to GRANTOR'S right to use the EASEMENT PROPERTY in accordance with the terms hereof. Upon written consent of GRANTEE, such consent to be exercised at the sole discretion of GRANTEE, other utility providers may be permitted by GRANTEE under separate grant from GRANTOR to construct, operate, maintain, repair, replace and remove their respective utilities in, on, over, under, and across the EASEMENT PROPERTY perpendicularly or as otherwise may be permitted by GRANTEE in writing. Nothing herein shall be construed to require GRANTEE to allow such use or grant, and such use or grant shall be at the sole and absolute discretion of GRANTEE. GRANTEE, at GRANTEE'S sole cost and expense, shall have the right to trim or remove Contract of Sale Page 42 of 56 trees as provided herein, together with the right to install gates in existing fences within such EASEMENT PROPERTY. GRANTOR represents and warrants to GRANTEE that as of the execution date hereof, no buildings, structures, signs, obstructions or other facilities or improvements of any kind ( "UNPERMITTED STRUCTURES ") exist on the EASEMENT PROPERTY. GRANTOR shall not construct, and GRANTEE shall have the right to prevent the construction of, UNPERMTTTED STRUCTURES on the EASEMENT PROPERTY and if any UNPERMITTED STRUCTURES are hereafter constructed or permitted by GRANTOR to exist within the EASEMENT PROPERTY without prior written consent of GRANTEE, then GRANTEE shall have the right to remove the same and GRANTOR agrees to pay to GRANTEE the reasonable actual costs of such removal. The EASEMENT shall constitute a covenant running with the land and shall bind and inure to the benefit of GRANTOR and GRANTEE, and its heirs, beneficiaries, devisees, successors, and assigns. TO HAVE AND TO HOLD the above EASEMENT unto GRANTEE, its successors and assigns, forever, and GRANTOR hereby warrants and forever agrees to defend the above described EASEMENT unto Grantee, its successors and assigns, against every person whomsoever lawfully claiming or to claim the same or any part hereof, by, through or under GRANTOR, and not otherwise. WITNESS THE EXECUTION HEREOF on the _ day of , 2014 Contract of Sale Page 43 of 56 GRANTOR: BROWN DEVELOPMENT I, LTD., a Texas limited partnership By: BROWN DEVELOPMENT CORPORATION its general partner By:: Capacity: THE ESTATE OF GERALD W. BROWN, DECEASED JULIE LUELLE BROWN, AS SUCCESSOR INDEPENDENT EXECUTOR THE JULIE LUELLE BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN JULIE LUELLE BROWN, AS TRUSTEE THE JULIE LUELLE BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN JULIE LUELLE BROWN, AS TRUSTEE THE GERALD W. BROWN, II NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN GERALD W. BROWN, II, AS TRUSTEE THE GERALD W. BROWN, II EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN GERALD W. BROWN, II, AS TRUSTEE Contract of Sale Page 44 of 56 THE JASON EDWIN BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN JASON EDWIN BROWN, AS TRUSTEE THE JASON EDWIN BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN JASON EDWIN BROWN, AS TRUSTEE THE JINGER JEANNINE BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN JINGER JEANNINE BROWN, AS TRUSTEE THE JINGER JEANNINE BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN JINGER JEANNINE BROWN, AS TRUSTEE THE ALICIA MARGARET NOEL BROWN NONEXEMPT LIFETIME TRUST ALICIA MARGARET NOEL BROWN, AS TRUSTEE THE ALICIA MARGARET NOEL BROWN EXEMPT LIFETIME TRUST ALICIA MARGARET NOEL BROWN, AS TRUSTEE THE ESTATE OF ROBERT M. BROWN, DECEASED CONNIE L. BROWN, AS INDEPENDENT EXECUTOR Contract of Sale Page 45 of 56 THE ROBERT M. BROWN EXEMPT FAMILY TRUST CONNIE L. BROWN, AS TRUSTEE THE ROBERT M. BROWN NONEXEMPT FAMILY TRUST CONNIE L. BROWN, AS TRUSTEE ACKNOWLEDGMENT THE STATE OF § COUNTY OF § This instrument was acknowledged before me on the day of , 2014, by as of BROWN DEVELOPMENT CORPORATION, the general partner of BROWN DEVELOPMENT I, LTD., a Texas limited partnership, and acknowledged to me that his /her signature is the act of the said partnership and that he /she executed the same on behalf of the said partnership and in the capacity therein stated. Notary Public, in and for the State of Texas My Commission Expires: THE STATE OF § COUNTY OF § This instrument was acknowledged before me on this day of , 2014, by JULIE LUELLE BROWN as SUCCESSOR INDEPENDENT EXECUTOR of THE ESTATE OF GERALD W. BROWN, DECEASED, on behalf of the said estate and in the capacity therein stated. My Commission Expires: Notary Public, in and for the State of Texas Contract of Sale Page 46 of 56 THE STATE OF COUNTY OF This instrument was acknowledged before me on this day of , 2014, by JULIE LUELLE BROWN as Trustee of THE JULIE LUELLE BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN, a Texas trust on behalf of the said trust and in the capacity therein stated. Notary Public, in and for the State of Texas My Commission Expires: THE STATE OF COUNTY OF This instrument was acknowledged before me on this day of , 2014, by JULIE LUELLE BROWN as Trustee of THE JULIE LUELLE BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN, a Texas trust on behalf of the said trust and in the capacity therein stated. My Commission Expires: Notary Public, in and for the State of Texas Contract of Sale Page 47 of 56 THE STATE OF COUNTY OF This instrument was acknowledged before me on this day of , 2014, by GERALD W. BROWN, II as Trustee of THE GERALD W. BROWN, II NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN, a Texas trust on behalf of the said trust and in the capacity therein stated. Notary Public, in and for the State of Texas My Commission Expires: THE STATE OF COUNTY OF This instrument was acknowledged before me on this day of , 2014, by GERALD W. BROWN, II as Trustee of THE GERALD W. BROWN, II EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN, a Texas trust on behalf of the said trust and in the capacity therein stated. My Commission Expires: Notary Public, in and for the State of Texas Contract of Sale Page 48 of 56 THE STATE OF COUNTY OF This instrument was acknowledged before me on this day of , 2014, by JASON EDWIN BROWN as Trustee of THE JASON EDWIN BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN, a Texas trust on behalf of the said trust and in the capacity therein stated. Notary Public, in and for the State of Texas My Commission Expires: THE STATE OF COUNTY OF This instrument was acknowledged before me on this day of , 2014, by JASON EDWIN BROWN as Trustee of THE JASON EDWIN BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN, a Texas trust on behalf of the said trust and in the capacity therein stated. My Commission Expires: Notary Public, in and for the State of Texas Contract of Sale Page 49 of 56 THE STATE OF COUNTY OF This instrument was acknowledged before me on this day of , 2014, by JINGER JEANNINE BROWN as Trustee of THE JINGER JEANNINE BROWN NONEXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN, a Texas trust on behalf of the said trust and in the capacity therein stated. Notary Public, in and for the State of Texas My Commission Expires: THE STATE OF COUNTY OF This instrument was acknowledged before me on this day of , 2014, by JINGER JEANNINE BROWN as Trustee of THE JINGER JEANNINE BROWN EXEMPT LIFETIME TRUST UNDER THE WILL OF GERALD W. BROWN, a Texas trust on behalf of the said trust and in the capacity therein stated. My Commission Expires: Notary Public, in and for the State of Texas Contract of Sale Page 50 of 56 THE STATE OF COUNTY OF This instrument was acknowledged before me on this day of , 2014, by ALICIA MARGARET NOEL BROWN as Trustee of THE ALICIA MARGARET NOEL BROWN NONEXEMPT LIFETIME TRUST, a Texas trust on behalf of the said trust and in the capacity therein stated. Notary Public, in and for the State of Texas My Commission Expires: THE STATE OF COUNTY OF This instrument was acknowledged before me on this day of , 2014, by ALICIA MARGARET NOEL BROWN as Trustee of THE ALICIA MARGARET NOEL BROWN EXEMPT LIFETIME TRUST, a Texas trust on behalf of the said trust and in the capacity therein stated. My Commission Expires: Notary Public, in and for the State of Texas Contract of Sale Page 51 of 56 THE STATE OF COUNTY OF This instrument was acknowledged before me on this day of , 2014, by CONNIE L. BROWN as Independent Executor of THE ESTATE OF ROBERT M. BROWN, DECEASED, on behalf of the said estate and in the capacity therein stated. Notary Public, in and for the State of Texas My Commission Expires: THE STATE OF COUNTY OF This instrument was acknowledged before me on this day of , 2014, by CONNIE L. BROWN as Trustee of THE ROBERT M. BROWN EXEMPT FAMILY TRUST, a Texas trust on behalf of the said trust and in the capacity therein stated. Notary Public, in and for the State of Texas My Commission Expires: THE STATE OF COUNTY OF This instrument was acknowledged before me on this day of , 2014, by CONNIE L. BROWN as Trustee of THE ROBERT M. BROWN NONEXEMPT FAMILY TRUST, a Texas trust on behalf of the said trust and in the capacity therein stated. Notary Public, in and for the State of Texas My Commission Expires: AFTER RECORDING RETURN TO: City of Denton — Engineering Department Real Estate and Capital Support 901 -A Texas Street, 2nd Floor Denton, Texas 76209 Attn: Paul Williamson Contract of Sale Page 52 of 56 EXHIBIT `A " -2 LEGAL DESCRIPTION ELECTRIC EASEMENT BEING a 0.802 acre tract of land situated in the J. Coltart Survey, Abstract Number 288, City of Denton, Denton County, Texas, and being part of that certain tract of land described in a Deed to Brown Development t, Ltd., as recorded in Document Number 98 -1683 of the Real Property Records of Denton County, Texas, and being more particularly described as follows: COMMENCING at a 5/8 inch iron rod with cap stamped "TNP" set in the Southwesterly line of State Highway Loop 288 (a variable width right -of- way), from which a concrete monument found for reference bears South 44 58' 34" East a distance of 622.71 feet; THENCE South 11 10'04" East departing the Southwesterly line of said State Highway Loop 288, for a distance of 54.68 feet to a point for corner at the POINT OF BEGINNING for the herein described easement; THENCE South 11* 10' 04" East passing a 5/8 inch iron rod with cap stamped "TNP" set for reference at the centerline of the herein described easement at a distance of 65.73 feet, and continuing for a total distance of 131.46 feet to a point for corner, from which a 518 inch iron rod with cap stamped "TNP" set bears South 11 ° 10'04" East a distance of 849.05 feet; THENCE North 45° 57' 13" West for a distance of 487.71 feet to a point for comer; THENCE North 39° 38'06" East for a distance of 103.09 feet to a point for comer on a non - tangent curve to the right in the Southwesterly line of said State Highway Loop 288, from which a broken concrete monument found for reference at the beginning of said curve bears North 53° 06' 36" West, a chord distance of 899.36 feet, THENCE in a Southeasterly direction, along the Southwesterly line of said State Highway Loop 288, and along said non - tangent curve to the right having a central angle of 00° 39' 49 ", a radius of 5619.58 feet, a chord bearing of South 48° 11' 19" East, a chord distance of 65.08 feet and an arc length of 65.08 feet to a broken concrete monument found for corner at the end of said curve; THENCE South 48° 13' 02" East continuing along the Southwesterly line of said State Highway Loop 288, for a distance of 9.98 feet to a point for corner; THENCE South 39° 38' 06" West departing the Southwesterly line of said State Highway Loop 288, fora distance of 30.81 feet to a point for corner; THENCE South 450 57' 13" East for a distance of 310.31 feet to the POINT OF BEGINNING, and containing 0.802 acres of land, more or less. To d B. Turner, R.P.L.S. Jan. 21, 2014 Jan. 7, 2014 — Field T.B.P.L.S. Firm 10011601 Contract of Sale SHEET 1 OF 2 DME13222 Page 53 of 56 n O 0 F.I. n 1-h O t-h LINE LEGEND A CALCULATED POINT S 11'10'04" E CONC, MONUMENT FOUND (CMF) ® 5/8" IRS STAMPED TNP O IRON ROD FOUND (IRF) CM CONTROL MONUMENT - -- - ----- CENTERLINE ELEC. ESMT. L5 I S 39'38'06" W ESMT. BOUNDARY 1 - - - - - 1 Easement filed March 26, 1974, recorded in Volume 7D0 Page 726 D.R.D.C.T. — — — — — — — TEMP. CONST. ESMT. ------- - - - - -- ADJACENT PROPERTY LINE ------ -- - - - - -- EXISTING ESMT. Q[o3� U LL'a�� — — — -1 RIGHT -OF -WAY LINE LINE BEARING DISTANCE L7 S 11'10'04" E 54.68' L2 S 11'10'04" E 131.46' L3 N 3938'06" E 103.09' L4 S 48'13'02" E 9.98' L5 I S 39'38'06" W 1 30.81' �. I LINE DELTA I RADIUS ARC L CH BEARING CH D &�•' EXHIBIT B I C1 00'39'49" 5619.58' 65.08' S 48'11'19" E 65.08' R= 5619.58' 29� L = 900.32' I' I p��o� p, 1 1 CB = N 53'06'36" W , � \ i it p CH D = 899.36' L4 Q' • \ 1 1 \ Q� C' �r \R'`•r�es �q I 1 0 100 200 j' i ti O2 try ds : 6'• X• J" \ • � � POINT OF `• i SCALEt V = 200' i, \ `�i• `� COMMENCING �\ POINT OF 1 1 1 � SINCLAIR REFINING COMPANY 1 BEGINNING 1 1 \ VOL. 342, PG. 185 & 1 VOL. 467, PG. 38 1 1Fys, \ ;, G 1 CONDEMNATION 25' EASEMENT D.R.D.C.T. �, \ ^' t DEN GAS PIPELINE CORPORATION (VOL, 1851, PG. 583 11 i F,yr \ i�. 1 1 VOL 4, PG. 303 ALLOWS FIBER OPTIC CABLE) DISTRICT COURT MINUTES & VOL. 1952, PG. 270 PI I \ 1 SS,1 RR 1 LONE STAR GAS COMPANY R.P.R.D.C.T. 1 i 1 S�, I DOC. N0. 95 -16944 ASSIGNMENT TO I' 1 -ir onaRV N 9TSS \SRe ; R.P.R.DCT \ i 1 1 6 r 1 ,t�'• ,� � 1 1 I 1 1 1 1 l LTD. 1n; 40' WIDE DRAINAGE LONE STAR GAS CO. 4I I aD. 00L D Wn DOC. NO. 95 -16944 R.P,R.D �88 � NO. 261, n) . C.T. (item 10m & i j II I BROWN DEVELOPMENT 1,1 DOC No 98 -1688 THIS EXHIBIT WAS PREPARED WITH THE BENEFIT OF TITLE RESOURCES GUARANTY COMPANY 1' I - 1 1 & UTILITY ESMT I COMMITMENT FOR TITLE INSURANCE, GF N0. 111795, EFFECTIVE DATE: JANUARY 5, 2014 1 I 1 I R.P.R.D.C.T. P 1 � 1 1 VOL. 1898, PG. 417 �� S C. 1 R P.R.D.C.T. ` 1THE OL aWIN10SCHEDULE B MS DO AFFECT THIS TRACT, AS SHOWN: j' 1 (APPROXIMATE SURVEY LINE ; 1 1 1 (item 1 I THE FOLLOVANG'ITEMS DO NOT AFFECT THIS TRACT: _ _ `{ i rt -ice - ` - - -- "` "- - .`. -! T _ — _ _ 109. Easement executed by H.G. Brown to Denton County Electric Cooperative Inc. filed September 25, 1953 recorded in Volume 402, Page. 1D7 D.R.D.C.T., Agreement Defining I i I I' 1 ' t 1 1 - - - - - 1 Easement filed March 26, 1974, recorded in Volume 7D0 Page 726 D.R.D.C.T. I' i �l ��( C ULP SUR i - 1 PROPOSED 10.45 AC. 10h. Easement executed by H.G. Brown and wife, Ina Brown to Texas. Power & Light Company filed. June 24, 1956, in Volume 422. Page 416, D.R.D.C.T. i �° �p ev�� �I�7 j, � 1 i SUBSTATION i .recorded Q[o3� U LL'a�� TRACT NOTE., Bearings are teased on the Texas State Plane Coordinate System, North Central Zone (NAD83). z Ak""" "-� Todd B. Turner, R.P.L.S. Date: Jan. 21, 2014 Jan. 7, 2014— Field Firm Reg. No. 10011601 Ak teague nail & perkins VJ17Gnhe as 76205 4WTnp Llenfen, Texas 76205 940.393AI77pb 940.333.90%ft www.rnpinaeom SHEET 2 OF 2 JOB NO. DME13222 0. ? j. i 22, F ELECTRIC EASEMENT 0.802 ACRES SITUATED tN THE J. COLTART SURVEY ABSTRACT NO. 288 CITY OF DENTON DENTON COUNTY, TEXAS L=] r3' N• it bd I N EXHIBIT "A " -3 LEGAL DESCRIPTION TEMPORARY CONSTRUCTION EASEMENT BEING a 0.521 acre tract of land situated in the J. Coltart Survey, Abstract Number 288, City of Denton, Denton County, Texas, and being part of that certain tract of land described in a Deed to Brown Development I, Ltd., as recorded in Document Number 98 -1683 of the Real Property Records of Denton County, Texas, and being more particularly described as follows: COMMENCING at a 5/8 inch iron rod with cap stamped "TNP" set in the Southwesterly line of State Highway Loop 288 (a variable width right -of- way), from which a concrete monument found for reference bears South 44° 58' 34" East a distance of 622.71 feet; THENCE South 11° 10'04" East departing the Southwesterly line of said State Highway Loop 288, for a distance of 186.14 feet to a point for corner at the POINT OF BEGINNING for the herein described easement;. THENCE South 11 ° 10' 04" East for a distance of 61.35 feet to a point for corner, from which a 5/8 inch iron rod with cap stamped "TNP" set bears South 11' 10' 04" East a distance of 787.70 feet; THENCE North 45 57' 13" West for a distance of 570.50 feet to a point for corner; THENCE North 39° 38' 06" East for a distance of 136.51 feet to a point for corner on a non- tangent curve to the right in the Southwesterly line of said State Highway Loop 288, from which a broken concrete monument found for reference at the beginning of said curve bears North 53° 17' 19" West, a chord distance of 864.45 feet, THENCE in a Southeasterly direction, along the Southwesterly line of said State Highway Loop 288, and along said non- tangent curve to the right having a central angle of 00° 21' 25 ", a radius of 5619:58 feet, a chord bearing of South 48° 41' 56" East, a chord distance of 35.01 feet and an arc length of 35.01 feet to a point for corner, THENCE South 39° 38' 06" West departing the Southwesterly line of said State Highway Loop 288, for a distance of 103.09 feet to a point for corner; THENCE South 45° 57' 13" East for a distance of 487.71 feet to the POINT OF BEGINNING, and containing 0.521 acres of land, more or less. Todd B. Turner, R.P.L.S. Jan. 21, 2014 Jan. 7, 2014 — Field T.B.P.L.S. Firm 10011601 Contract of Sale Page 55 of 56 SHEET 1 OF 2 DME 13222 ro a w (D Ln O Fi, LTI M LINE LEGEND DISTANCE CALCULATED POINT S 11 "10'04" E CONC. MONUMENT FOUND (CMF) ® 5/8" IRS STAMPED TNP O IRON ROD FOUND (IRF) CM CONTROL MONUMENT - --- ----- CENTERLINE ELEC. ESMT. L5 S 39.38'06" W ESMT. BOUNDARY L6 S 48'13'02" E — — — — — — — TEMP. CONST. ESMT. - -- -- -- -- — ADJACENT PROPERTY LINE - -- — — — — — — — — — — EXISTING ESMT. — — — — RIGHT —OF —WAY LINE LINE BEARING DISTANCE L1 S 11 "10'04" E 54.68' L2 S 11'10'04" E 131.46' L3 S 11'10'04" E 61_35' L4 N 39'38'06" E 136.51' L5 S 39.38'06" W 103.09' L6 S 48'13'02" E 9,98' L7 S 48'13'02" E 89.32' c EXHIBIT "B" -3•\ SINCLAIR REFINING COMPANY VOL. 342, PG. 185 & VOL. 467, PG. 38 D.R.D.C.T. (VOL, 1851, PG. 583 LINE DELTA RADIUS r 1 A = 08' 49' 20" ;' \ R - 5619.58' 00'21'25" 1 I L = 865.30' S 48'41'56" E 35.01' CB = S 53'17'19" E 00.39'49" 5619.58' CHD = 864.45' i4 i 1' I� L I , I` 1 I' ( 1 , II 1 1 � SINCLAIR REFINING COMPANY VOL. 342, PG. 185 & VOL. 467, PG. 38 D.R.D.C.T. (VOL, 1851, PG. 583 LINE DELTA RADIUS ARC L CH BEARING CH D C1 00'21'25" 5619.58' 35.01' S 48'41'56" E 35.01' C2 I 00.39'49" 5619.58' 65.08' S 48. 11'19" E 65.08' 2s.\ L6 ` 411. \ V. C9 \3>r, ,, sF POINT OF '�Y$- — F COMMENCING 1 � 1 � 1 1 48#tnp 1 1 1 , I 1 1 y 0 100 20D 1 SCALE. 1' = 200' SPOINT OF CONDEMNATION 25' EASEMENT 1 � DEHI GAS PIPELINE CORPORATION BEGINNING VOL. 4, PG. 303 ALLOWS FIBER OPTIC CABLE) ; �S �y DISTRICT COURT MINUTES & VOL. 1952, PG. 270 , I 1 i1 LONE STAR GAS COMPANY R.P.R.D.C.T. 11 11 `�R�B. DOC. N0. 95 -16944 ASSIGNMENT TO 1 1 R.P.R.DCT LONE STAR GAS CO. j� j J. c�L�^�4 °���� DOC. NO. 95 -16944 i i ABS PAC f No. 2�� 1 \ R.P,R.D.C.T. I r I (item 10m & n) r I N! 1 t \ `BROWN DEVEL ' OPMENT I LTD I 1 �\ ' 1 NOTES, THIS EXHIBIT WAS PREPARED VATH THE .BENEFIT OF TITLE RESOURCES GUARANTY COMPANY COMMITMENT FOR TITLE INSURANCE, OF NO. 111795, EFFECTIVE DATE: JANUARY 5, 2014 THE FOLLOWING SCHEDULE B ITEMS DO AFFECT THIS TRACT, AS - SHOWN: 101, 10m and ton. THE FOLLOWING ITEMS 00 NOT AFFECT THIS TRACT: 109 Easement executed by H.G. Brown to Denton County Electric Cooperative. Inc. fled September 25, 1953, recorded In Volume 402, Page 107, D.R.D.C.T., Agreement Defining Easement filed March 26, 1974, recorded In Volume 7DO. Page 726. D.R.D.C.T. 11 li DOC. N0. 98 -168$ p '1 40' WIDE DRAINAGE' it \ e .P 1 , 1 _ & UTIUTY ESMT c 1 1 = ; I t VOL. 1898, PG. 417 _- l R.P.R.D.C.T. rn 1 1 1 R. P. R. D.C.T. ��1�' _ 1� (its` 10I} — C�Md,PU(�IG�( `I 1 PROPOSED 10.45 1 1 10h. Easement executed by H.G, Brown and wife, [no Brown to Texas Power & Light Company spry C7 K I 1 SUBSTATION filed June 22. 1956, recorded In Volume 422, Page 416, D.R.D.C.T. j I 1, A96 7H u uvo° ��� `I ,I TRACT NOTE: Bearings are based on the Texas State Plane Coordinate System, North Central Zone (NAD83). I Todd B. Turner, R.P,L.S. Date: Jan. 21, 2014 Jan. 7, 2014— Field Firm Reg. No. 10011601 Q GtSTER<<'o'.; ..................... TODD •B • .... TURNER 0 4859 SSi, O SURD li 1 1 AL teague nail & perkins wTnp1617 Cents es 762 3 De,den, Taxes 76207 940.3B9A177 ph. 940.903.8026 fx wwwAnpinc.com SHEET 2 OF 2 JOB NO. DME13222 S SO• t - 0`N AC. .` c 35' TEMPORARY CONSTRUCTION EASEMENT 0.521 ACRES BEING SITUATED IN THE J. COLTART SURVEY ABSTRACT NO. 288 CITY OF DENTON DENTON COUNTY, TEXAS< t�1 FJ- iT N• rt bd I w Consent Agenda I CITY OF DENTON CITY COUNCIL MINUTES March 3, 2014 After determining that a quorum was present, the City Council convened in a Work Session on Monday, March 3, 2014 at 11:30 a.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Burroughs, Mayor Pro Tem Kamp, Council Member Engelbrecht, Council Member Gregory, Council Member Roden, Council Member Hawkins, and Council Member King ABSENT: None 1. Call to order; announce quorum, introductions. Mayor Burroughs called the meeting to order, announcing that there was a quorum of Council present and provided for introductions for the Library Board and Council. There was no quorum of the Library Board present. 2. Receive a report, hold a discussion and give staff direction regarding the Denton Public Library Annual Report and Strategic Plan. Teri Gibbs, Director of Libraries, presented the Library's Annual Report. A challenge for the Library was numbers vs. impact. In the future years the focus would be on how the libraries impacted citizens in their lives. One goal dealt with laying groundwork for libraries. That goal involved establishing relationships, reviewing positions /defining roles, obtaining tools and planning for the future. A focus for library customers was how to make libraries easier and more accessible Methods for completing that focus were a catalog update, standardized check -out times, $10 maximum fine ordinance, emailing notices for expiring library cards, and online support for downloadable media customers. Services that the Libraries offered included early literacy, adult literacy, services to ESL customers, homebound services, Library Larry's Big Day television program, tax help for low- income families, inter - Library loan and book a librarian. Council Member Engelbrecht asked if the adult literacy program was dependent on volunteers. Gibbs stated yes, but there was not an issue with getting volunteers A Library Strategic Plan for 2014 -2016 was in progress. The process for the Plan included utilizing a consultant, a SWOT analysis, public survey, focus group meetings and staff meetings. The 41 issue was perception versus reality. Many comments from a survey indicated the libraries needed to provide services that they were already doing. The question that came out of the survey was why the public did not know that. Additional public input included a concern regarding safety, that the best thing about Denton was the sense of community, libraries equated to education, that programs needed upgrades in terms of content and convenience and outreach at community events. Three focus areas framed in the community included education, connection and resources. The new mission statement, new marker and new tag line for the library was presented. In summary, the libraries would continue to provide the basics; provide the future in terms of The Forge, Human Library, outreach to community and business; and explore new physical locations. City of Denton City Council Minutes March 3, 2014 Page 2 Council Member Roden stated that he was impressed with the services the libraries provided. He asked if the Libraries were partnering with Economic Development for some of their projects such as The Forge so that others outside the system would know that the project is available. Gibbs stated that they had a Business Relations staff person who was going out to businesses to provide that information. Council Member Gregory asked who accredited the libraries. Gibbs stated that the Texas State Library reviewed a report with standard measures that have to be provided for review. Mayor Burroughs asked if there were problems with young people dropped off for long periods of time or problems with youth at the libraries with no supervision. Gibbs stated that it was mainly an issue at the North Branch due to the proximity to the middle school, but there was a section of the library set aside for teens with special programs for the youth. North Branch had adapted to that particular customer base. Council Member Hawkins asked if there was a policy for homeless persons. Gibbs stated that situation was mainly at Emily Fowler. The homeless were considered another segment of customers and they had to follow the same rules of conduct that others did. The library did not discriminate against people with different housing, clothing, etc. Council Member Roden stated that a topic for a larger later discussion was how the library aligned with other programs in the City and needs in the city. He questioned what role the Board Members saw in the future of the libraries. Board Member Womack felt it would be linking different areas of the City together. Board Member Campbell felt that there were few communities that supported libraries as well as they were supported in Denton. The libraries role would be an outreach to encourage citizens to use the libraries. Board Member McLeod stated that he had an appreciation of where the library had been and where it was going. He felt he could help with that direction as a member of the Library Board. Board Member Womack stated that the members of the Library Board were impressed with what the library was doing and wanted to help further its use. Council Member Gregory asked about the orientation received by the Board and if the members were able to attend the Texas Library Association conference. Board Member Campbell stated that there were monthly meetings, an orientation with the City and with the Director. The TLA did have a board member session. City of Denton City Council Minutes March 3, 2014 Page 3 Board Member McLeod stated that he participated in a tour of the libraries when he started. He was introduced to staff and they answered all of his questions. He felt serving on the Board was very much worth his time. Board Member Womack also felt serving on the Board was very much worth her time as a volunteer position. 3. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. The Council did not have any items. Following the completion of the Joint Meeting, the City Council convened in a Closed Meeting at 1:10 p.m. 1. Closed Meeting: A. Consultation with Attorneys -Under Texas Government Code Section 551.071. 1. Consult with and provide direction to City's attorneys regarding legal issues and strategies associated with Gas Well Ordinance regulation of gas well drilling and production within the City Limits and the extraterritorial jurisdiction, including Constitutional limitations, statutory limitations upon municipal regulatory authority, statutory preemption and /or impacts of federal and state law and regulations, standstill agreements or other cessation regulations and take any appropriate action regarding the above in the meeting of today's date as it concerns municipal regulatory authority or matters relating to enforcement of the ordinance. Following the completion of the Closed Meeting, the Council was posted to convene in Open Session to consider the following item: 1. Consider adoption of an ordinance of the City of Denton, Texas amending Ordinance Nos. 2013 -330 and 2014 -040 to extend a "Standstill Agreement" between the City of Denton, Texas and Eagleridge Operating, LLC until midnight on May 6, 2014 with regard to certain disputes and issues over gas drilling in the City to allow the parties City of Denton City Council Minutes March 3, 2014 Page 4 an opportunity to engage in global settlement negotiations as it concerns unresolved issues between them; and providing for an effective date. This item was not considered. MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES March 4, 2014 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, March 4, 2014 at 2:00 p.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Burroughs, Mayor Pro Tem Kamp, Council Member Engelbrecht, Council Member Gregory, Council Member Roden. ABSENT: Council Members Hawkins and King 1. Citizen Comments on Consent Agenda Items There were no citizen comments on Consent Agenda Items. 2. Requests for clarification of agenda items listed on the agenda for March 4, 2014 Mayor Burroughs stated that Consent Agenda Item 4A was one more step forward in the FM 2181 expansion. Council Member Gregory stated that he would like to pull Consent Agenda Item 4H for individual consideration. He questioned the temporary lease for parking in Consent Agenda Item 4G. He asked who was currently using the lot and where they would park. He also asked if there would be restricted parking only for the tenants of the development Ron Menguita, Development Review Committee Administrator, stated that the property was owned by the City and that staff at City Hall West parked in the lot. However, not all of the lot was used by staff. There were also spaces on the other side of street that could be used to determine the 29 spaces. The developer would be providing a site plan of the proposed parking lot, micro -seal and mark the spaces. There would be no requirements to sign the lot for tenant parking only. 3. Receive a report, hold a discussion, and give staff direction regarding proposed changes to the current Building Permit and Fee Schedule. Kurt Hansen, Building Official, presented the proposed changes to the fee schedule. Since 1994 there had been four amendments to the Building Permit and Fee Schedule for various building permit types and associated fees for residential and commercial construction. The latest amendment was in 2008 for new fees for one and two family dwelling permits. One reason for the need for the change in fees was the fiscal obligations. Building Inspection expenditures exceeded the revenues. The proposed changes to consider included one and two family dwellings, multi - family dwellings and temporary certificates of occupancy. Staff surveyed area municipalities to compare Denton's fees which showed that Denton had the lowest fees in the area. Proposed single - family dwelling fee — staff was proposing to change from a fee that charged by the square foot to a home valuation based fee that would be priced based on the total value of the proposed home within specific value ranges. That would result in an overall increase in this revenue and capture more of the housing sizes that may be constructed City of Denton City Council Minutes March 4, 2014 Page 2 Proposed multi - family dwelling fee — staff was recommending the use of the current Commercial Building Permit fee table for new multi - family dwelling permit fees. Using the commercial table would result in a fee which was similar to other area cities. The fee would be a priced based fee based on the total value of the proposed Multi - Family structure within specific value ranges with no maximum. Council Member Roden questioned if it would be legal to charge different fees depending on where the project would be located within the city. Zones could be created for tools for development. City Attorney Burgess stated that staff would research that aspect. Mayor Burroughs asked if staff had calculated what the new fees would have generated if it had been applied to projects already completed. If not, he would like to have such a comparison. He noticed that the last fee schedule increases were a month before the recession started and assumed the fixed costs were part of the projected deficit for current operations. Hansen reviewed the information in the proposed expenditures; it did not vary much year to year. Mayor Burroughs stated that with an increased number of developments it was hard to estimate costs as some of the fixed costs would be spread out over the number of developments. He asked if there was a vetting process for these types of increases and who would be directly impacted for unintended consequences Hansen stated that staff had not done that analysis but they had compared other cities and how Denton compared with those. Proposed Temporary Certificate of Occupancy fee - this would be a new proposed fee. There were instances when a contractor was close to the end of a project and asked for a temporary Certificate of Occupancy. The permit would allow access to the building or facility for a specific purpose and for a specific group of people. As these fees would take extra staff time, extra inspections, and extra consideration, staff was recommending a nominal fee of $.05 /square foot with a minimum $100 fee. This fee would cover a percentage of the administration cost for the temporary Certificate of Occupancy. Mayor Burroughs stated that designating staff to run a shorter route for inspections would also help with inspection completions. Fiscal information — Hansen stated that $92,000 extra could be collected if the new fees were implemented in April. Council Member Roden stated that there was a need to market the changes so that the increased fees were identifying the good points of the process. City Manager Campbell stated that the biggest way to do this was by word of mouth in the development community. City of Denton City Council Minutes March 4, 2014 Page 3 Council Member Gregory stated that Council had discussed in prior sessions that fees needed to cover costs. The charges could not be raised enough to make money but rather to cover the costs for the services. He suggested that Planning use the additional fee money to further expedite the process which would be consistent with legal obligations. Council Member Roden left the meeting. Mayor Burroughs suggested presenting these increases to the developer group to see if the increases would be accepted by the development community for unintended consequences. John Cabrales, Assistant City Manager, stated that staff could send out emails to the developer group for comments. If that was not sufficient, he would recommend delaying consideration of the proposal. Mayor Burroughs felt sending out emails would be sufficient. Council Member Gregory suggested looking at everything else in the pipeline such as other associated costs and how those might impact the developers. Council Member Engelbrecht suggested having a consultant look at starter home costs. He was nervous about additional fees and what starter home builders would do in response to the increases. He was concerned that they would change the quality of their developments. 4. Receive a report, hold a discussion, and give staff direction regarding the FY 2012 -13 Comprehensive Annual Financial Report and annual audit. Jerry Gather, auditor with Weaver, LLP, stated that his firm performed an independent audit of the City's basic financial statements. The purpose of the audit was to express an opinion as to whether the City's financial statements present fairly, in all materials respects, the financial position of the City. The audit was performed within accepted government standards. Three reports were issued with no material weaknesses found. The City was given an unqualified or clean opinion. No Management Letter was issued which normally had recommendations for strengthening controls and /or operational efficiency. A Single Audit was conducted for State and Federal grant awards with no negative finds noted. 5. Receive a report, hold a discussion, and give staff direction regarding potential budget amendments to the FY 2013 -14 Operating and Capital Improvement budgets. Chuck Springer, Director of Finance, reviewed the components of the potential budget changes. The Capital Improvement budget for General Government included (1) increases for fire station improvements; (2) a decrease in funding for the Civic Center pool improvements leaving $300,000 for design; (3) a plan to budget the cost of the Civic Center pool reconstruction in 2014 -15 from CO issuance; (4) a net increase in CO's for General Government of $600,000 from $8.5 million to $9.1 million; and (5) selling $1.7 million for airport hanger development previously approved. City of Denton City Council Minutes March 4, 2014 Page 4 Capital Improvement Budget - Utilities - the Solid Waste fund would have no changes. A reduction of $3 million was proposed in the Water fund and a reduction of $217 million in the Wastewater fund. The Electric fund would be reduced by $26 million. All of the proposed changes were reflected in the Notice of Intent. The ordinances were on the regular agenda for Council consideration later in the meeting. Mayor Burroughs asked if the changes were based on needs for 12 or 6 months. Springer stated that they were for this fiscal year. Council Member Gregory questioned the increase for Fire Station Two and how that might impact other fire stations. Ross Chadwick, Fire Chief, reviewed the design plan for Station 2. The original estimate had a cost per square foot that was lower than was thought to be needed. There were some contingency fees that probably would not be needed. There were also additional site improvements that needed to be mitigated plus three structures that needed to be demolished. He had checked with other departments in the area and the costs were in line with those other cities. Springer reviewed the General Fund amendments. Those included (1) increased funding for Planning of $40,000 for the Better Block program, and (2) increase funding for Legal for outside legal services. The changes will increase the General Fund expenditures to $99 million. Technology Services fund — the proposed amendments would add two staff members to provide necessary support for the Electric fund and energy management program. The increase in expenditures would be paid by the Electric Fund as Technology Services fund was an internal service fund. Council Member Roden returned to the meeting. Library Donations fund — the proposal was to amend the budget to add this fund for Fiscal Year 2013 -14 budget. Donations were currently handled by the Library staff. These donations were currently routed through Finance which would change with the amendment. The proposed amendments would be brought back to Council for consideration on April 1st Following the completion of the Work Session, the Council convened in Closed Session to consider the following: 1. Closed Meeting: A. Deliberations regarding Real Property - Under Texas Government Code Section 551.072; Consultation with Attorneys - Under Texas Government Code Section 551.071. 1. Discuss, deliberate, and receive information from staff and provide staff with direction pertaining to the acquisition of real property interest located (1) in the M.E.P. & P.R.R. Company Survey, Abstract No. 927, located generally in City of Denton City Council Minutes March 4, 2014 Page 5 the 500 block of North Mayhill Road; and (2) in the Morreau Forrest Survey, Abstract No. 417, located generally in the 600 block of South Mayhill Road; and (3) in the David Hough Survey, Abstract No. 646, located generally in the 1900 block of South Mayhill Road; and (4) in the David Hough Survey, Abstract Number 646, located generally in the 2100 block of South Mayhill Road, all tracts located in the City of Denton, Denton County, Texas. Consultation with the City's attorneys regarding legal issues associated with the acquisition or condemnation of the real property interests referenced above where a public discussion of these legal matters would conflict with the duty of the City's attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas, or would jeopardize the City's legal position in any administrative proceeding or potential litigation. (Mayhill Road Widening and Improvements Project & Municipal Landfill) 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 M.E.P. & P.R.R. Survey, Abstract No. 927, City of Denton, Denton County, Texas, and generally located on the west line of North Loop 288 south of Holland Lane. 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. (Singing Oaks Acquisitions - 69KV) 3. 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 on the southwest corner of North Locust Street and Beall Street. Consultation with the City's attorneys regarding legal issues associated with the potential acquisition and condemnation of the real property described above where a public discussion of these legal matters would conflict with the duty of the City's attorneys to the City of Denton and the Denton City Council under the 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. (North Locust Properties, LLC Acquisitions - 69KV) B. Certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086; and Consultation with Attorneys - Under Texas Government Code Section 551.071. 1. Receive a further presentation from Denton Municipal Electric ( "DME ") staff regarding certain public power competitive, financial and commercial City of Denton City Council Minutes March 4, 2014 Page 6 information relating to issues regarding the proposed "Denton Municipal Electric - Energy Risk Management Policy" that deals with bidding and pricing information for purchased power, generation and fuel, and Electric Reliability Council of Texas (ERCOT) bids, prices, offers and related services and strategies, and the terms and authorizations related thereto, as well as other and further public power information. Consultation with the City's attorneys regarding legal issues associated with the "Denton Municipal Electric - Energy Risk Management Policy" 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 potential litigation. Discuss, deliberate, provide staff with direction, consider and take final action adopting an ordinance approving the Policy in the Closed Meeting. Kamp motioned, Engelbrecht seconded to adopt Ordinance 2014 -060. On roll call vote, Mayor Burroughs "aye ", Mayor Pro Tem Kamp "aye ", Council Member Engelbrecht "aye ", Council Member Gregory "aye ", and Council Member Roden "aye ". Motion carried unanimously. 2. Receive a presentation from Denton Municipal Electric ( "DME ") staff regarding certain public power competitive and financial issues regarding purchased power pricing information including the proposed "Second Amendment to Full Requirements Wholesale Electric Power Service Agreement between the City of Denton, Texas and NextEra Energy Power Marketing, LLC" (Second Amendment). Consultation with the City's attorneys regarding legal issues associated with the said Second Amendment where a public discussion of this legal matter 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 potential litigation. Discuss, deliberate, provide staff with direction, consider and take final action adopting an ordinance approving the said Second Amendment in the Closed Meeting. Gregory motioned, Kamp seconded to adopt Ordinance 2014 -061. On roll call vote, Mayor Burroughs "aye ", Mayor Pro Tem Kamp "aye ", Council Member Engelbrecht "aye ", Council Member Gregory "aye ", and Council Member Roden "aye ". Motion carried unanimously. C. Consultation with Attorneys -Under Texas Government Code Section 551.071. 1. Consult with and provide direction to City's attorneys regarding legal issues and strategies associated with Gas Well Ordinance regulation of gas well drilling and production within the City Limits and the extraterritorial jurisdiction, including Constitutional limitations, statutory limitations upon municipal regulatory authority, statutory preemption and /or impacts of federal and state law and regulations, standstill agreements or other cessation regulations and take any appropriate action regarding the above in the City of Denton City Council Minutes March 4, 2014 Page 7 meeting of today's date as it concerns municipal regulatory authority or matters relating to enforcement of the ordinance. D. Consultation with Attorney - Under Texas Government Code Section 551.071; and Deliberations regarding Economic Development Negotiations - Under Texas Government Code Section 551.087. 1. Receive a report and hold a discussion regarding legal issues on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with the provisions of the Texas Open Meetings Act, Chapter 551 of the Texas Government Code. Also hold a discussion regarding proposed amendments to the economic development incentive agreement for Golden Triangle Mall. This discussion shall include commercial and financial information the City Council has received from Golden Triangle Mall which the City Council seeks to have locate, stay, or expand in or near the territory of the city, and with which the City Council is conducting economic development negotiations; including the offer of financial or other incentive. 2. Receive a report and hold a discussion regarding legal issues on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with the provisions of the Texas Open Meetings Act, Chapter 551 of the Texas Government Code. Also hold a discussion regarding the creation of a public improvement district and proposed amendments to the economic development incentive agreements for the Rayzor Ranch mixed - use development. This discussion shall include commercial and financial information the City Council has received from Rayzor Ranch developers which the City Council seeks to have locate, stay, or expand in or near the territory of the city, and with which the City Council is conducting economic development negotiations; including the offer of financial or other incentive. E. Deliberation regarding Personnel Matters - Under Texas Government Code Section 551.074. 1. Deliberate and discuss the evaluation, duties, discipline, procedures, and contracts of the Municipal Court Judge, City Attorney, and City Manager. 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. Council Member King arrived at the meeting. 1. PLEDGE OF ALLEGIANCE City of Denton City Council Minutes March 4, 2014 Page 8 The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations /Awards 1. Severe Weather Awareness Week Mayor Burroughs presented the proclamation for Severe Weather Awareness Week. 3. CITIZEN REPORTS A. Review of procedures for addressing the City Council. B. Receive citizen reports from the following: 1. Monica Jones regarding high utility bills for persons on a fixed income, and issues with the Fire Marshal and Police Department. Ms. Jones was not present at the meeting. 4. CONSENT AGENDA Mayor Burroughs stated that Item H would be pulled for separate consideration. Council Member Gregory motioned, Council Member Roden seconded to approve the Consent Agenda and accompanying ordinances and resolutions with the exception of Item H. On roll call vote, Mayor Burroughs "aye ", Mayor Pro Tem Kamp "aye ", Council Member Engelbrecht "aye ", Council Member Gregory "aye ", Council Member King "aye ", and Council Member Roden "aye ". Motion carried unanimously. Ordinance No. 2014 -062 A. Consider adoption of an ordinance of the City of Denton Texas, authorizing the City Manager to execute a Professional Services Agreement (PSA) with Freese and Nichols, Inc. for 15- percent design and engineering services for the relocation of utilities along the proposed Texas Department of Transportation Right -of -Way for FM 2181 from Windriver Lane /Teasley to the Corinth city limits; and providing an effective date (File 5488- awarded to Freese and Nichols, Inc., in the not -to- exceed amount of $216,503). The Public Utilities Board recommends approval (6 -0). Ordinance No. 2014 -063 B. Consider adoption of an ordinance accepting competitive proposals and awarding a contract for the supply of hot mix asphalt concrete and the lay down of the asphalt for the City of Denton Streets Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 5463- awarded to Jagoe - Public City of Denton City Council Minutes March 4, 2014 Page 9 Company, in the estimated annual amount of $4,000,000 for a three (3) year not -to- exceed amount of $12,000,000). Ordinance No. 2014 -064 C. Consider adoption of an ordinance authorizing the City Manager or his designee to execute a Purchase Agreement, by and between the City of Denton, Texas ( "City "), as buyer, and Miles Land Company, Inc., a Texas corporation (the "Owner "); as seller, to acquire (i) fee simple to a 0.586 acre tract situated in the Morreau Forrest Survey, Abstract No. 417, located in the City of Denton, Denton County, Texas, and being generally located in the 600 block of South Mayhill Road; for the purchase price of One Hundred Thousand Seven Hundred Dollars and No Cents ($100,700.00), and other consideration, as prescribed in the Purchase Agreement (the "Agreement "), as attached to the ordinance and made a part thereof as Exhibit "A ", authorizing the expenditure of funds therefor; and providing an effective date. (Parcel M104 Miles Land Company - Mayhill Road Widening and Improvements proj ect) Ordinance No. 2014 -065 D. Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager to make application to the Texas Department of Housing and Community Affairs Emergency Solutions Grant Program and take all other actions necessary to obtain and implement the program; and providing for an effective date. Ordinance No. 2014 -066 E. Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the purchase of a three (3) year agreement for the Esri Small Utility Enterprise License Agreement (ELA) for ArcGIS software suite utilized by Denton Municipal Electric which is available from only one source and in accordance with Chapter 252.022 of the Texas Local Government Code such purchases are exempt from the requirements of competitive bidding; and providing an effective date (File 5466 awarded to Environmental Systems Research Institute, Inc. (Esri) in the not -to- exceed amount of $75,000). The Public Utilities Board recommends approval (6 -0). Ordinance No. 2014 -067 F. Consider adoption of an ordinance authorizing the City Manager or his designee to execute a Purchase Agreement, by and between the City of Denton, Texas ( "City "), as Buyer, and Kevin Nelms and Richard Greb and wife, Nancy Greb (collectively the "Owner "); as Seller, to acquire (I) fee simple to a 7.628 acre tract; (11) fee simple to 3.326 acres; and (III) a drainage easement encumbering 0.196 acre, all lands located in the David Hough Survey, Abstract Number 646, City of Denton, Denton County, Texas, and being generally located in the 2100 block of South Mayhill Road; for the purchase price of One Million Four Hundred Eighty One Thousand Five Hundred and Eighty Dollars and No Cents ($1,481,580.00), and other consideration, as prescribed in the Purchase Agreement (the "Agreement "), as attached to the ordinance and made a part thereof as Exhibit "A ", authorizing the expenditure of funds therefor; and providing an effective date. (Parcel M137 -M138 City of Denton City Council Minutes March 4, 2014 Page 10 Nelms -Greb - Mayhill Road Widening and Improvements Project and Municipal Landfill) Ordinance No, 2014 -068 G. Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager to execute a Developers Agreement with RLB INVESTMENTS, LLC to allow the developer to temporarily lease parking spaces from the City at the downtown lot, located at the northeast corner of Bolivar Street and McKinney Street; providing a default and indemnification clause; and providing an effective date. Ordinance No. 2014 -070 L Consider adoption of an ordinance clarifying by amendment the penalty provisions of Ordinance No. 2013 -073, relating to credit access businesses; providing for severability; and establishing an effective date for the amended ordinance. Item H was considered. Ordinance No. 2014 -069 H. Consider adoption of an ordinance of the City of Denton, Texas amending Ordinance Nos. 2013 -330 and 2014 -040 to extend a "Standstill Agreement" between the City of Denton, Texas and Eagleridge Operating, LLC until midnight on May 6, 2014 with regard to certain disputes and issues over gas drilling in the City to allow the parties an opportunity to engage in global settlement negotiations as it concerns unresolved issues between them; and providing for an effective date. Council Member Roden motioned, Mayor Pro Tem Kamp seconded to adopt the ordinance. On roll call vote, Mayor Burroughs "aye ", Mayor Pro Tem Kamp "aye ", Council Member King "aye ", and Council Member Roden "aye ". Council Member Engelbrecht "nay" and Council Member Gregory "nay ". Motion carried with a 4 -2 vote. Council Member Roden left the meeting. 5. ITEMS FOR INDIVIDUAL CONSIDERATION - CONSIDERATION OF THE USE OF EMINENT DOMAIN TO CONDEMN REAL PROPERTY INTERESTS Ordinance No, 2014 -071 A. Consider adoption of an ordinance finding that a public use and necessity exists to acquire through the exercise of the right of eminent domain (i) fee simple to a 2.115 acre tract; and (ii) a slope easement, encumbering a 0.202 acre tract, for the public use of expanding and improving Mayhill Road, a municipal street and roadway; generally located in the 500 block of North Mayhill Road, each affected tract located in the M.E.P. & P.R.R. Company Survey, Abstract No. 927, City of Denton, Denton County, Texas, as more particularly described on "Exhibit "A ", attached to the ordinance and made a part thereof, (collectively the "Property Interests ") authorizing the filing and prosecution of eminent domain proceedings to acquire the City of Denton City Council Minutes March 4, 2014 Page 11 Property Interests; authorizing the expenditure of funds therefore; making findings; providing a savings clause; and providing an effective date. (Parcel M070 551 Mayhill Joint Venture - Mayhill Road Widening and Improvements Project) Paul Williamson, Real Estate Manager, stated that this would authorize the tracts for the Mayhill Road Project through the eminent domain process. Mayor Pro Tem Kamp motioned, Council Member Gregory seconded the following motion: I move that the City of Denton, Texas authorize the use of the power of eminent domain to acquire domain (i) fee simple to a 2.115 acre tract; and (ii) a slope easement, encumbering a 0.202 acre tract, for the public use of expanding and improving Mayhill Road, a municipal street and roadway; generally located in the 500 block of North Mayhill Road, each affected tract located in the M.E.P & P.R.R. Company Survey, Abstract No. 927, City of Denton, Denton County, Texas, as more particularly described on Exhibit "A ", to the ordinance now under consideration and on the overhead screen being now displayed to the audience, for the public use of expanding and improving Mayhill Road, a municipal street and roadway in the City of Denton, Texas." On roll call vote, Mayor Burroughs "aye ", Mayor Pro Tem Kamp "aye ", Council Member Engelbrecht "aye ", Council Member Gregory "aye ", and Council Member King "aye ". Motion carried unanimously. Real property description is attached as Exhibit 1 to Minutes. Ordinance No. 2014 -072 B. Consider adoption of an ordinance finding that a public use and necessity exists to acquire through the exercise of the right of eminent domain (i) fee simple to a 1.029 acre tract (the "Mayhill tract "); (ii) fee simple to a 0.624 acre tract (the "landfill tract "); and (iii) a slope easement encumbering a 0.076 acre tract, for; (a) as concerns the Mayhill tract and the slope easement, the public use of expanding and improving Mayhill Road, a municipal street and roadway; and (b) as concerns the landfill tract, for the public use of expanding and improving the City of Denton landfill, a permitted municipal solid waste disposal facility located in the City of Denton, Texas, generally located in the 1900 block of South Mayhill Road, each affected tract located in the David Hough Survey, Abstract Number 646, City Of Denton, Denton County, Texas, as more particularly described on Exhibit "A ", attached to the ordinance and made a part thereof, (collectively the "Property Interests "); authorizing the filing and prosecution of eminent domain proceedings to acquire the Property Interests; authorizing the expenditure of funds therefore; making findings; providing a savings clause; and providing an effective date. (Parcel M136 Haggard - Mayhill Road Widening and Improvements Project and Municipal Landfill) Paul Williamson, Real Estate Manager, presented the details of the property which was needed for the Mayhill Road Widening and Improvements Project and Municipal Landfill. He requested Council use the process of eminent domain to acquire the property. City of Denton City Council Minutes March 4, 2014 Page 12 Council Member King motioned, Council Member Gregory seconded the following motion: I move that the City of Denton, Texas authorize the use of the power of eminent domain to acquire (i) fee simple to a 1.029 acre tract (the" Mayhill tract "); (ii) fee simple to a 0.624 acre tract (the "Landfill tract "); and (iii) a slope easement encumbering a 0.076 acre tract, for; (a) as concerns the Mayhill tract and the slope easement, the use public use of expanding and improving Mayhill Road, a municipal street and roadway; and (b) as concerns the landfill tract, for the public use of expanding and improving the City of Denton landfill, a permitted municipal solid waste disposal facility located in the City of Denton, Texas, generally located in the 1900 block of South Mayhill Road, each affected tract located in the David Hough Survey, Abstract Number 646, City of Denton, Denton County, Texas, as more particularly described on Exhibit "A ", to the ordinance now under consideration and on the overhead screen being now displayed to the audience, for the public use (a) as concerns the Mayhill tract and the slope easement, the public use of expanding and improving Mayhill Road, a municipal street and roadway; and (b) as concerns the landfill tract, for the public use of expanding and improving the City of Denton landfill, a permitted municipal solid waste disposal facility in the City of Denton, Texas ". On roll call vote, Mayor Burroughs "aye ", Mayor Pro Tem Kamp "aye ", Council Member Engelbrecht "aye ", Council Member Gregory "aye ", and Council Member King "aye ". Motion carried unanimously. 6. ITEMS FOR INDIVIDUAL CONSIDERATION Ordinance No. 2014 -073 A. Consider adoption of an ordinance directing the publication of Notice of Intention to issue $19,500,000 in principal amount of Certificates of Obligation of the City of Denton for General Government and Solid Waste projects; and providing for an effective date. Chuck Springer, Director of Finance, stated that this ordinance would direct the publication of notice of intent to issue $19,500,000 of Certificates of Obligation for the City. The debt issued was matched for the life of the assets. Council Member King motioned, Council Member Engelbrecht seconded to adopt the ordinance. On roll call vote, Mayor Burroughs "aye ", Mayor Pro Tem Kamp "aye ", Council Member Engelbrecht "aye ", Council Member Gregory "aye ", and Council Member King "aye ". Motion carried unanimously. Ordinance No. 2014 -074 B. Consider adoption of an ordinance directing the publication of Notice of Intention to issue $75,000,000 in principal amount of Certificates of Obligation of the City of Denton for Waterworks and Sewer System and Electric System projects; and providing for an effective date. Chuck Springer, Director of Finance, stated that this item would provide for a notice of intention to issue Certificates of Obligation for waterworks and sewer system and electric system projects. City of Denton City Council Minutes March 4, 2014 Page 13 Council Member Engelbrecht motioned, Mayor Pro Tem Kamp seconded to adopt the ordinance. Consider adoption of an ordinance directing the publication of Notice of Intention to issue $75,000,000 in principal amount of Certificates of Obligation of the City of Denton for Waterworks and Sewer System and Electric System projects; and providing for an effective date. On roll call vote, Mayor Burroughs "aye ", Mayor Pro Tem Kamp "aye ", Council Member Engelbrecht "aye ", Council Member Gregory "aye ", and Council Member King "aye ". Motion carried unanimously. 7. PUBLIC HEARINGS Ordinance No. 2014 -075 A. Hold a public hearing and consider adoption of an ordinance regarding a rezoning of an approximately 54.25 acre tract of land: specifically by rezoning 30.56 acres from Neighborhood Residential Mixed Use (NRMU) with overlay conditions to a Neighborhood Residential 6 (NR -6) zoning district with overlay conditions and, amending overlay conditions on the remaining 23.57 acres of the site which will remain as NRMU. The subject property is generally located at the northwest corner of Ryan Road and Teasley Lane and is legally described as a 54.2517 acre tract situated in the J. Fisher Survey, Abstract 1018, in the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. The Planning and Zoning Commission recommends approval (6 -0.) Ron Menguita, Development Review Committee Administrator, stated that this was a rezoning request for 54.25 acres from NRMU to NR -6 with an overlay conditions. The second tract would remain NRMU. He provided the background details of the property, reviewed the location map, the future land use map and designation, current zoning, proposed zoning, and photos of the adjacent properties. The zoning analysis between NRMU and NR -6 was provided. Staff reviewed the application in terms of the analysis criteria and felt that the proposed rezoning conformed to the provisions of the rezoning. The overlay conditions for tracts were reviewed. The Planning and Zoning Commission recommended approval as did the Development Review Committee with the noted conditions. Mayor Pro Tem Kamp asked if the developer agreed to the conditions. Menguita stated yes. The Mayor opened the public hearing. The applicant spoke in favor. Council Member Engelbrecht asked about traffic calming devices to eliminate cut through traffic. The applicant stated there would be some to differentiate between the commercial and residential areas. City of Denton City Council Minutes March 4, 2014 Page 14 The Mayor closed the public hearing. Council Member King motioned, Mayor Pro Tem Kamp seconded to adopt the ordinance. On roll call vote, Mayor Burroughs "aye ", Mayor Pro Tem Kamp "aye ", Council Member Engelbrecht "aye ", Council Member Gregory "aye ", and Council Member King "aye ". Motion carried unanimously. 8. CITIZEN REPORTS There were no citizen reports for this portion of the meeting. 9. CONCLUDING ITEMS A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting and Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. Council did not have any items. B. Possible Continuation of Closed Meeting under Sections 551.071 - 551.086 of the Texas Open Meetings Act. There was no continuation of the Closed Meeting. With no further business, the meeting was adjourned at 7:20 p.m. MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES March 18, 2014 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, March 18, 2014 at 3:00 p.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Pro Tem Kamp, Council Member Engelbrecht, Council Member Gregory, Council Member King, Council Member Roden, and Council Member Hawkins. ABSENT: Mayor Burroughs 1. Citizen Comments on Consent Agenda Items There were no citizen requests to speak. 2. Requests for clarification of agenda items listed on the agenda for March 18, 2014. Council Member Hawkins requested a clarification of Item J on the Consent Agenda. City Attorney Burgess stated that Council would be discussing that item in Closed Session. Council Member Gregory requested that Consent Agenda Item J be pulled from the Consent Agenda for separate consideration to provide a public explanation. Council Member Roden questioned Consent Agenda Item G regarding the amendment to the food ordinance. He had a question regarding parking in the City's right -of -way but there was no listing in Closed Session for such a discussion. He suggested that item be pulled for further discussion. City Attorney Burgess stated that the item could be added to the Closed Session for discussion. Council Member Roden asked about the provision relating to changes in itinerary and the need to have it approved by a Planner. He questioned if that was an additional provision added to the ordinance. Kurt Hansen, Building Official, stated that had already been the process and staff wanted it codified in the ordinance. Council Member Roden asked if that would be done in -house or with a separate process. Hansen stated staff would help facilitate it through the Planners. Council Member Roden questioned whether the provision for filing an itinerary change was two days after the change or before the change. Hansen stated that the current code was two days before the change was made. Council Member Roden stated that the intent from the operators was if they had an original permit with three sites approved, there would be flexibility to move to a different location than noted in itinerary. Hansen stated that they could have a different day but still be at an approved location. There was latitude to provide locations but not be specific for days and times. City of Denton City Council Minutes March 18, 2014 Page 2 Council Member Gregory stated that his definition of itinerary and schedule were the same. Itinerary was not defined in the ordinance. He felt itinerary was a list of places but not a schedule. As long as itinerary was defined as a list of places where the trucks could go that were preapproved, then the trucks could notify staff of the location. Hansen stated that the form showed time and days but a change would be permitted for just locations that were approved. It was necessary to keep track of where the trucks were and when they were there. Council Member Gregory suggested defining itinerary as a list of approved locations where one may operate. Notification of a location was different. That would accomplish both aspects. City Manager Campbell stated that a footnote could be added on the form regarding the changing times. Council Member Engelbrecht questioned the 12 foot separation of vehicles from a building and other mobile trucks. Hansen stated that until there was a food truck park ordinance, the code indicated that there needed to be that separation for safety regulations. He felt 12 feet was a good compromise for safety precautions. Council Member Engelbrecht questioned if the parking lot that was under construction in connection with an establishment on Oak Street was aware of that regulation as it appeared that the parking spaces were closer than 12 feet. Cabrales stated that the owner of the establishment who was building the lot was well aware of the regulation. 3. Receive a report from the NCTCOG staff, hold a discussion and give staff direction on the implementation and enforcement of local idling restrictions and some lessons learned in North Central Texas. Katherine Barnett- White, Sustainability and Special Projects Administrator, stated that Amanda Brimmer from the North Central Texas of Governments (COG) had a presentation for Council. Brimmer reviewed a North Texas air quality update. 2018 was the revised attainment date for air quality standards and levels of traffic congestion. Health issues, the effect on the environment, energy security and money were several reasons to be concerned about vehicle idling. She reviewed the state restriction with eligible exemptions for vehicle type, operations and location plus applicability to types of vehicles. Information on cities, town and counties with locally enforced idling restrictions was provided. In terms of adoption, a city could adopt its own anti - idling ordinance or sign a memorandum of agreement with the Texas Commission on Environmental Quality to enforce the State rule. COG encouraged consideration of additional restrictions in terms of prohibition in sensitive areas, City of Denton City Council Minutes March 18, 2014 Page 3 regulation of more fuel types and weight classes and fewer exemptions /shorter duration. The State regulation would set the minimum standards. Education and outreach included (1) identifying idling hotspots, (2) promoting awareness of restrictions and (3) idle- reduction technology options. Available outreach items included local government guide, anti - idling posters and street signs, driver education brochures and idling complaint hotline and website. Enforcement actions might include identifying enforcement personnel, determining procedures to spot and cite violators and establishing a mechanism for complaints to be reported. Brimmer presented information from the city of Fort Worth on their program which was very educationally based. They posted signs, distributed literature to businesses and made personal visits to businesses reported for idling. They had not issued any citations at this point, but rather focused on education. On the other hand, the city of Dallas was heavy on citations. They patrolled the city monitoring idling vehicles and had the City Marshals Office issue citations to drivers of idling vehicles with a fine not to exceed $500. Mayor Pro Tem Kamp stated that she was very supportive of such a program and would like staff to prepare an ordinance. Council Member Gregory asked if other city ordinances were mostly wording by the State or by COG. Brimmer suggested a reference to the State code to keep it up -to -date. Council Member Gregory asked if the regulation included passenger vehicles. Brimmer stated it was just for trucks. Council Member Roden asked if an ordinance could be created to address light vehicles. City Attorney Burgess stated staff could investigate and see if light vehicles could be included. 4. Receive a report, hold a discussion, and give staff direction regarding the Denton Plan Update. Ron Menguita, Development Review Committee Administrator, introduced the item. He stated that the WRT consultants would be presenting the detail of the update and stated that staff was currently in the process of drafting the elements of the Denton plan. Upcoming events included Community Forum 3, public hearings and final plan adoption. John Fernsler, WRT, stated that milestones in the process included drafting the Community Vision Statement and the Preferred Growth Concept. Mayor Burroughs arrived at the meeting. City of Denton City Council Minutes March 18, 2014 Page 4 The Preferred Growth Concept dealt with recommended growth areas, placemaking and urban vitality, green infrastructure elements and mobility improvements. The result of this would be the future land use map. He reviewed the 1999 Denton Plan and the progress since 1999. The progress included a Downtown master plan, DTIP, Clear Creek Natural Heritage Center, Environmentally Sensitive Areas and a sustainability plan. Current Growth Dynamics was reviewed. Trends in the Denton Plan since 1999 included Downtown Denton transit station /A Train, increased demand for alternative transportation modes, regional leadership, Downtown revitalization, UNT /TWU growth, increase national trends for multi - family housing and mixed use, a desire for walkable neighborhoods and public health. Denton Plan issues since 1999 included gas wells, traffic and air pollution, regional competitiveness for quality employment, and sprawl. Developing the Plan Elements — The elements would include (1) a vision statement and strategic directions on what Denton should be in 2030, (2) Community Forum 2 input regarding what was learned about development and community character preferences, (3) staff input on how to make the Denton Plan work better, (4) evolving best practices in comprehensive planning and preferred concept in terms of how other comprehensive plans were working correctly and (5) preferred concept in terms of how to achieve the desired pattern of growth. The Plan was being developed for easier use and to be more user friendly. The developing elements of the Plan were reviewed. Some elements in the old plan that were embedded in other areas were given their own sections. Implementation and monitoring would deal with a specific action agenda which identified everything in plan, when it would be done and who would be responsible for the item. An annual report card would be developed on the progression through the Plan. Menguita reviewed the next steps in the process including the Denton Plan 2030 development, a draft Denton plan 2030, City Council and commissions /boards review, Community Forum 3 and plan refinement and adoption. Council Member Roden stated that at the Council Planning Session, it was noted that there were several plans some of which were being updated, or needed to be updated. He asked for a recommendation on how to coordinate all of these plans and their updates. Menguita stated that the Mobility Plan was being updating in concert with the Comprehensive Plan update. Fernsler stated that the perception was that the City had been proliferate in creating plans. The Comprehensive Plan looked at all aspects of a community's function ability. There would be wording included that new updates of various plans took into account their support for the implementation of the Comprehensive Plan. Mayor Burroughs felt that the number of people participating in the process appeared to be relatively small compared to the last revision. He suggested considering inviting all boards /commissions to one of the forums to get input from them and their perspective. Menguita stated that staff had already gone to some of the boards and would continue to meet with them to get their input. City of Denton City Council Minutes March 18, 2014 Page 5 Council Member Engelbrecht suggested a forum for the people on the neighborhood list to encourage them to attend. Council Member Gregory stated that he envisioned a follow -up with some modifications in the zoning ordinance such as what was permitted or not permitted in certain zoning categories. Menguita stated that part of the update was looking at the future land use map so one goal was to make sure map was consistent with the plan. 5. Receive a report, hold a discussion, and give staff direction regarding an ordinance to adopt the 2012 International Energy Conservation Code (IECC) as amended by the City. Kurt Hansen, Building Official, stated that codes were published every three years. The current energy code was the 2009 version with a 10% above code amendment. He reviewed the energy code comparison between the 2006, 2009 and 2012 codes and the changes in the codes over the years. The 2012 Energy Code was published by the International Code Council in the last few months of 2011. After this publication, the Energy and Green Advisory Board of the North Central Texas Council of Governments reviewed the code and felt that some of the changes from the 2009 code were too large and recommended some variances. Council Member Roden asked about the financial impact of COG suggestions. Hansen stated that he would estimate it to be in the low $2,000. Some builders were already using the 2012 standards as a marketing tool for a more efficient home. He reviewed the local amendments that were already in the 2009 code that were going into the 2012 code. Staff was recommending the adoption of the 2012 code with the COG amendments plus 4 %. The next step would be for formal Council approval on April 1st Mayor Pro Tem Kamp stated that the Council Committee on the Environment had seen the provision at least twice and suggested that the minutes of those meeting be given to Council to review Mayor Burroughs suggested placing this item on Individual Consideration for April 1st instead of the Consent Agenda. 6. Receive a report, hold a discussion, and give staff direction on the City's Tax Abatement Policy and Public Improvement District (PID) Guidelines. Aimee Bissett, Director of Economic Development, stated that the City was required to renew /adopt a Tax Abatement Policy every two years. The current policy was up for renewal in April. Prior to bringing the policy forward for renewal, staff would like to present information to Council regarding additional incentive programs that the City could consider. Public Improvement District (PID) Guidelines — Council established PID guidelines in 2007. These guidelines were created at the request of the developer of Hunter's Ranch, a master- City of Denton City Council Minutes March 18, 2014 Page 6 planned residential development that had not been developed at this time. Staff was now looking at PID guidelines because RED Development, currently developing Rayzor Ranch, had petitioned the City to create a PID for the south side of the development, Rayzor Ranch Town Center. The terms requested by RED Development were not consistent with current guidelines. Bissett reviewed the standards for value of structure and personal property, years of abatement and percentage of abatement. Additional factors up to five could also be used to help with the standards. The definition of a 380 agreement and the factors involved in the required public purpose were reviewed. Discussion points included recruitment initiatives, airport development, use of land, and others such as small business support, impact fee grant, cash incentives and fast track programs. The 380 Program Guidelines would state in broad terms what programs could be implemented, would give flexibility in the future, created the ability to be creative, noted the disadvantage of 4A /4B cash incentive programs, and offered something unique for specific target initiatives. Mayor Pro Tem Kamp asked if there had always been an option to have this type of program. Bissett stated yes, but the challenge was how to budget the incentives. Council Member King felt that larger companies knew Denton did not have some of those tools and that gave the feeling that the incentive had to be reinvented every time it was offered. Mayor Burroughs felt that the City needed to be adaptable for different circumstances. Staff should move forward with the changes requested by RED instead of trying to do a comprehensive policy for every PID circumstance. Consensus of the Council was to proceed with the development of the guidelines. Following the completion of the Work Session the Council convened in Closed Meeting at 5:24 p.m. Closed Meeting: A. Deliberations regarding Real Property - Under Texas Government Code Section 551.072; Consultation with Attorneys - Under Texas Government Code Section 551.071. Discuss, deliberate, and receive information from staff and provide staff with direction pertaining to the acquisition of real property interests located in the David Hough Survey, Abstract Number 646, located generally in the 3900 block of Quail Creek Road, in the City of Denton, Denton County, Texas. Consultation with the City's attorneys regarding legal issues associated with the acquisition or condemnation of the real property interests referenced above where a public discussion of these legal matters would conflict with the duty of the City's attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas, or would jeopardize the City of Denton City Council Minutes March 18, 2014 Page 7 City's legal position in any administrative proceeding or potential litigation. (Mayhill Road Widening and Improvements project) 2. Discuss, deliberate, and receive information from staff and provide staff with direction pertaining to the acquisition of real property interests located in the O. S. Brewster Survey, Abstract Number 56, located generally in the 1800 block and the 2800 block of South Bonnie Brae Street, City of Denton, Denton County, Texas. Consultation with the City's attorneys regarding legal issues associated with the acquisition or condemnation of the real property interests referenced above where a public discussion of these legal matters would conflict with the duty of the City's attorneys to the City of Denton and 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. (Bonnie Brae Widening and Improvements project) B. Consultation with Attorneys -Under Texas Government Code, Section 551.071. 1. Consult with and provide direction to City's attorneys regarding legal issues and strategies associated with Gas Well Ordinance regulation of gas well drilling and production within the City Limits and the extraterritorial jurisdiction, including Constitutional limitations, statutory limitations upon municipal regulatory authority, statutory preemption and /or impacts of federal and state law and regulations as it concerns municipal regulatory authority and matters relating to enforcement of the ordinance. C. Certain Public Power Utilities: Competitive Matters - Under Texas Government Code, Section 551.086; Consultation with Attorneys - Under Texas Government Code, Section 551.071. 1. Receive a presentation from Denton Municipal Electric ( "DME ") staff regarding public power competitive and financial matters pertaining to plans, strategies, opportunities, and developments for generation improvements to the DME system; discuss and deliberate strategies relating to selecting and acquiring generation resources for the City; discuss and deliberate opportunities and strategies for the City to acquire purchased power and enter into agreements regarding the same in light of the possible resource shortage in ERCOT in order to meet its future energy needs. Discuss, deliberate and provide Staff with direction. 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: 1. PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. City of Denton City Council Minutes March 18, 2014 Page 8 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations /Awards 1. Resolution of Appreciation for Betty Williams Mayor Pro Tem Kamp motioned, Council Member Gregory seconded to approve the resolution. On roll call vote, Mayor Burroughs "aye ", Mayor Pro Tem Kamp "aye ", Council Member Engelbrecht "aye ", Council Member Gregory "aye ", Council Member King "aye ", Council Member Roden "aye ", and Council Member Hawkins "aye ". Motion carried unanimously. 3. CITIZEN REPORTS 4. CONSENT AGENDA Mayor Burroughs noted that Item G and J would be pulled for separate consideration. Council Member Gregory motioned, Council Member Hawkins seconded to approve the Consent Agenda and accompanying ordinances and resolutions with the exception of Items G and J. On roll call vote, Mayor Burroughs "aye ", Mayor Pro Tem Kamp "aye ", Council Member Engelbrecht "aye ", Council Member Gregory "aye ", Council Member King "aye ", Council Member Roden "aye ", and Council Member Hawkins "aye ". Motion carried unanimously. Ordinance No. 2014 -076 A. Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and Fred Moore Day Nursery School; authorizing and ratifying the expenditure of funds; and providing for an effective date. ($1450) Ordinance No. 2014 -077 B. Consider adoption of an ordinance of the City Council of the City of Denton, Texas authorizing the City Manager or his designee to execute an investment advisory services contract with First Southwest Asset Management, Inc. (FSAM) for an amount not to exceed $52,000; and providing an effective date. The Audit/Finance Committee recommends approval (2 -0). Ordinance No. 2014 -078 C. Consider adoption of an ordinance authorizing the City Manager or his designee to execute a purchase order through the Buy Board Cooperative Purchasing Network for the acquisition of one (1) flushing /vacuum truck for the City of Denton Wastewater Collections Department; and providing an effective date (File 5508 - awarded to Rush Truck Center in the amount of $157,959). The Public Utilities Board recommends approval (6 -0). Ordinance No. 2014 -079 City of Denton City Council Minutes March 18, 2014 Page 9 D. Consider adoption of an ordinance authorizing the City Manager or his designee to execute a purchase order through the Buy Board Cooperative Purchasing Network for the acquisition of one (1) dump truck for the City of Denton Water Distribution Department; and providing an effective date (File 5509- awarded to Rush Truck Center, Crane in the amount of $133,649). The Public Utilities Board recommends approval (6 -0). Ordinance No. 2014 -080 E. Consider adoption of an ordinance accepting competitive proposals and awarding a public works contract for the reroofing of the Lake Lewisville Water Treatment Plant (LLWTP); providing for the expenditure of funds therefor; and providing an effective date (RFP 5362- awarded to CBS Roofing Services in the not -to- exceed amount of $267,659.80. The Public Utilities Board recommends approval (6 -0). Ordinance No. 2014 -081 F. Consider adoption of an ordinance accepting competitive proposals and awarding a contract for polymer concrete transformer pads for Denton Municipal Electric; providing for the expenditure of funds therefor; and providing an effective date (RFP 5232- awarded to Techline, Inc. in the three (3) year not -to- exceed amount of $250,000). Ordinance No. 2014 -082 H. Consider adoption of an ordinance approving an easement agreement granting such easement to Atmos Energy Corporation, which 0.120 acre easement tract is located in the 1000 block of South Mayhill Road, to encumber land owned by the City of Denton, located in the G. Walker Survey, Abstract No. 1330; and providing an effective date. The Public Utilities Board recommends approval (6 -0). Resolution No. R2014 -008 L Consider approval of a resolution of the City of Denton, Texas establishing a Municipal Green Building Policy for the City of Denton, Texas and declaring an effective date. Ordinance No. 2014 -084 G. Consider adoption of an ordinance of the City of Denton, Texas amending Chapter 13 ( "Food and Food Service Establishments ") of the City of Denton Code of Ordinances by deleting Articles I, II, III, IV, V and VI in their entirety; adopting the Texas Food Establishment Rules promulgated by the Texas Department of State Health Services and making related deletions and amendments thereto; providing a severability clause; providing a savings clause; providing for a penalty not to exceed $2,000 for violations of this ordinance; and providing for an effective date. Item G was considered. City Attorney Burgess stated that Council had wanted to delete provision 169.1.C.3 from the ordinance. City of Denton City Council Minutes March 18, 2014 Page 10 Council Member Gregory asked about a time frame for mobile food courts. John Cabrales, Assistant City Manager, stated that staff was in the process of developing language for an ordinance. It would have to first be presented to the Planning and Zoning Commission and then come before Council. He hoped it would be within the next few months. Council Member Roden motioned, Council Member King seconded to adopt the ordinance with the removal of Provision 169.1.C.3. On roll call vote, Mayor Burroughs "aye ", Mayor Pro Tem Kamp "aye ", Council Member Engelbrecht "aye ", Council Member Gregory "aye ", Council Member King "aye ", Council Member Roden "aye ", and Council Member Hawkins "aye ". Motion carried unanimously. Item J was considered. J. Consider adoption of an ordinance repealing redundant and inconsistent noise provisions from the Denton Development Code, consolidating noise enforcement authority in existing provisions of the Denton Code of Ordinances and existing state law; directing the codifier to cross reference as needed; clarifying enforcement authority; and establishing an effective date. City Attorney Burgess stated that over time inconsistent noise provisions had been enacted in the Code and this ordinance would eliminate those inconsistencies. The ordinance referenced state law provisions which would be used more frequently than city code. Staff was recommending approval of the ordinance. Council Member Gregory asked for a further explanation. City Manager Campbell stated that this ordinance was more consistent and easier for the City to implement enforcement of noise regulations and make consistent with gas well sites as other areas of the city and other types of noise complaints. Currently the regulation were more difficult to enforce and this ordinance would make it easier to enforce. Council Member Hawkins motioned, Council Member Gregory seconded to adopt the ordinance. On roll call vote, Mayor Burroughs "aye ", Mayor Pro Tem Kamp "aye ", Council Member Engelbrecht "aye ", Council Member Gregory "aye ", Council Member King "aye ", Council Member Roden "aye ", and Council Member Hawkins "aye ". Motion carried unanimously. 5. ITEMS FOR INDIVIDUAL CONSIDERATION - CONSIDERATION OF THE USE OF EMINENT DOMAIN TO CONDEMN REAL PROPERTY INTERESTS Ordinance No. 2014 -085 A. Consider adoption of an ordinance finding that a public use and necessity exists to acquire through the exercise of the right of eminent domain (i) fee simple to the surface estate, with waiver of surface use to the mineral estate, of a 3.966 acre tract, subject to reservation of right of way for passage of livestock, pedestrian and vehicular travel on, over and across a 0.171 acre tract; (ii) a temporary construction, City of Denton City Council Minutes March 18, 2014 Page 11 grading and access easement encumbering a 0.588 acre tract; and (iii) private easement appurtenant rights of ingress and egress encumbering a 0.295 acre tract, all for the public use of expanding and improving Mayhill Road, a municipal street and roadway; generally located in the 3900 block of Quailcreek road (a private road), each affected tract located in the David Hough Survey, Abstract No. 646, City of Denton, Denton County, Texas, as more particularly described on "Exhibit "A ", attached to the ordinance and made a part thereof, (collectively the "Property Interests ") authorizing the filing and prosecution of eminent domain proceedings to acquire the Property Interests; authorizing the expenditure of funds therefore; making findings; providing a savings clause; and providing an effective date. (Mayhill Road Project - Parcel M139 - Donnelly) Paul Williamson, Real Estate Support Manager, reviewed the location of the property and asked Council to approve the start of the eminent domain process. Council Member Gregory stated that this was a formal process dictated by State law; but prevented negotiations. Williamson stated that the motion tonight would give staff the authority to start the process but would not prohibit dialog with the property owner. Mayor Burroughs asked if other properties had gone through this same process. Williamson replied correct. Robert Donnelly, 3900 Quail Creek Road, spoke in opposition. Council Member Roden asked for the amount offered the property owner. Williamson replied $458,000. Council Member Roden asked for the property owner's counter offer. Donnelly stated $3,900,000. The real property description is attached as Exhibit 1 to the Minutes. Council Member Gregory motioned, Mayor Pro Tem Kamp seconded the following motion: "I move that the City of Denton, Texas authorize the use of the power of eminent domain to acquire (i) fee simple to the surface estate, the waiver of surface use to the mineral estate, of a 3.966 acre tract, subject to reservation of right of way for passage of livestock, pedestrian and vehicular traffic on, over and across a 0.171 acre tract; (ii) a temporary construction, grading and access easement encumbering a 0.588 acre tract; and (iii) private easement appurtenant rights of ingress and egress encumbering a 0.295 acre tract, for the public use of expanding and improving Mayhill Road, a municipal street and roadway; generally located in the 3900 block of Quail Creek Road (a private road), each affected tract located in the David Hough Survey, Abstract No. City of Denton City Council Minutes March 18, 2014 Page 12 646, City of Denton, Denton County, Texas, as more particularly described on "Exhibit "A ", to the ordinance now under consideration and on the overhead screen being now displayed to the audience, for the public use of expanding and improving Mayhill Road, a municipal street and roadway in the city of Denton, Texas ". On roll call vote, Mayor Burroughs "aye ", Mayor Pro Tem Kamp "aye ", Council Member Engelbrecht "aye ", Council Member Gregory "aye ", Council Member King "aye ", Council Member Roden "aye ", and Council Member Hawkins "aye ". Motion carried unanimously. 6. ITEMS FOR INDIVIDUAL CONSIDERATION 7. PUBLIC HEARINGS 8. CITIZEN REPORTS 9. CONCLUDING ITEMS A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting and under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. Mayor Pro Tem Kamp mentioned the Great American Clean -UP was coming soon and Council would be cleaning their Adopt -A -Spot at 9:30 a.m. on March 29' . B. Possible Continuation of Closed Meeting under Sections 551.071 - 551.086 of the Texas Open Meetings Act. There was no continuation of the Closed Session. With no further business, the meeting was adjourned at 7:52 p.m. City of Denton City Council Minutes March 18, 2014 Page 13 MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS Consent Agenda J AGENDA INFORMATION SHEET AGENDA DATE: April 15, 2014 DEPARTMENT: Parks and Recreation ACM: John Cabrales, Jr. SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, authorizing the City Manager to execute a contract with the Denton Independent School District for the 2014 Summer Food Service Program; authorizing the expenditure of funds to administer the program; and providing an effective date. BACKGROUND This free lunch program is designed to serve children in areas of low- income populations during the summer months, when traditional school lunch programs are not in effect. This program is sponsored and funded by the United States Department of Agriculture, Food and Nutrition Service and is a continuation of the free lunch program that is offered during the school year. The Texas Department of Agriculture has made an effort through outreach to increase the number of cities participating in the program. Cold sack lunches will be prepared by the Denton Independent School District and served at the following locations: 1) MLK Recreation Center, 2) Denia Park, 3) Quakertown Park, 4) Owsley Park, 5) Fairways at University Apartments, 6) Village East Apartments, 7) Fred Moore Park, 8) McMath Middle School, 9) Mack Park, 10) Denton Mobile Park, 11) Civic Center; other DISD summer school sites and additional City sites may be implemented based on need. The total estimated cost for this program is approximately $150,000 which is reimbursed by the Texas Department of Agriculture. The Parks and Recreation Department first offered the Summer Food Service Program in 1992 at Denia Park, Phoenix Park, Fred Moore Park, Civic Center Park, and two summer school locations. At these six locations, a total of 10,776 lunches were served to children 1 through 18 years of age. The 2013 Summer Food Service Program served 38,098 lunches at 19 locations at a cost of $130,013.43. OPTIONS Council may approve the contracts with the Texas Department of Agriculture and Special Nutrition Programs and Denton Independent School District in its entirety, deny the request, or ask staff to make modifications. RECOMMENDATION Staff recommends approval of the proposed ordinance. Agenda Information Sheet April 15, 2014 Page 2 ESTIMATED SCHEDULE OF PROJECT Summer lunches will be served week days from June 9, 2014, through August 15, 2014. No lunches will be served on Friday, July 4, 2014, in observance of the Independence Day Holiday. PRIOR ACTION /REVIEW The Denton Independent School District recommended approval to contract the preparation of cold sack lunches for this program when the issue was presented to their board on February 25, 2014. The program is scheduled for lunch service implementation on June 9, 2014. FISCAL INFORMATION Texas Department of Agriculture, which administers this grant, will reimburse all costs associated with the program. EXHIBIT Proposed Ordinance and DISD Agreement Respectfully submitted: M - 0 W'4� \�' Emerson Vorel, Director Parks and Recreation Department Prepared by: Kathy Schaeffer, Athletics /YTS Program Area Manager Parks and Recreation Department \\codad\departments \legal \our documents \ordinances \14 \parks summer food service.docx ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH THE DENTON INDEPENDENT SCHOOL DISTRICT FOR THE 2014 SUMMER FOOD SERVICE PROGRAM; AUTHORIZING THE EXPENDITURE OF FUNDS TO ADMINISTER THE PROGRAM; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton and the Denton Independent School District mutually agree to provide meals for eligible individuals; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager is hereby authorized to execute a contract with the Denton Independent School District, substantially in the form of the contract which is attached to and made a part of this ordinance for all purposes, to provide meals for eligible individuals at the various sites, and such other documents and certifications as are necessary to carry out the 2014 Summer Food Service Program and to handle all fiscal and administrative matters relating to the program. SECTION 2. The expenditure of funds necessary to administer the 2014 Summer Food Service Program is hereby authorized. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2014. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY mm APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY- xr G per. State of Texas County of Denton AGREEMENT TO FURNISH FOOD SERVICE CITY OF DENTON and DENTON INDEPENDENT SCHOOL DISTRICT FOOD SERVICES THIS AGREEMENT is made and entered into by and between the Denton Independent School District and the City of Denton both of whom are local governmental entities authorized to enter into interlocal agreements under Chapter 791 of the Texas Government Code. (Vernon 1994) Whereas, the interlocal agreement contemplates the performance of function or services that each party to this contract is authorized to perform individually. Whereas, that the City of Denton is making payment under this agreement which it is funding from payments from current revenue; whereas, the payments provided by the City of Denton are in an amount that fairly compensates the Denton Independent School District for the services that it is performing. Witnesseth: I. Provision of Meals Denton Independent School District agrees to supply unitized meals inclusive of milk and juice to the City of Denton Parks and Recreation Department. The City of Denton Parks and Recreation Department will pick up meals at designated food preparation site and package coolers with meals and deliver to approved SFSP sites. Breakfast ...... $ 0.00 each Lunches ....... $ 2.50 each Snacks......... $ 0.00 each Supper......... $ 0.00 each II. Menu Records It is further agreed that the Denton Independent School District pursuant to the provisions of the Summer Food Service Program Regulations, will assure that said meals meet the minimum requirements as to nutritive value and content as outlined in the U.S.D.A.'s sponsor Meal Preparation Handbook, and will maintain full and accurate recordings of such, including the following: 1. Menu Records, including amount of food prepared. 2. Meals, including daily number of meals delivered by type. III. Retention of Records These records must be reported to the institution promptly at the end of each week. Denton Independent School District agrees also to retain records required under the preceding clause for a period of three years and 90 days after the end of the contract period. If audits, claims or litigation have not been resolved, all records must be retained beyond the required time period until all issues are resolved in accordance with the Summer Food Service Program Agreement between The City of Denton and Texas Department of Agriculture -Food & Nutrition Division. IV. Compliance With Immigration Laws The Denton Independent School District agrees to comply with the requirements of the Immigration Reform Control Act of 1986 regarding employment verification and retention of verification forms for any individuals hired after November 6, 1986 who will perform labor or services under this contract. V. Audit The Denton Independent School District agrees to allow for purposes of audit, examination, excerpt, and transcription: the USDA, the Comptroller of the United States, D.S. and any of their authorized representatives to have access to any of the contractor's books, documents, papers, and records that are pertinent to the contract. VI. Energy Efficiency The Denton Independent School District agrees to comply with the required mandatory standards and policies concerning energy efficiency contained in the Texas Energy Conservation Plan issued in compliance with the Energy Policy and Conservation Act (P.L. 94 -163). VII. Remedies For Breach of Contract The Denton Independent School District agrees that except for small purchase contracts, it will comply with and enforce provisions that allow for administrative, contractual, or legal remedies if contractors violate or breach contract terms, and any appropriate sanctions and penalties. VIII. Compliance With Labor Regulations The Denton Independent School District agrees to be in compliance with Section 103 of the contract Work Hours and Safety Standards Act (40 USC 327 -330) as supplemented by the Department of Labor regulations (29 CFR, Part 5). Under this Act, contractors must compute the wages of mechanics and laborers on the basis of standard workday of eight hours and a standard workweek of 40 hours. Work that exceeds the standards must be compensated at least 1 1/2 times the basic pay rate for overtime hours worked. These requirements do not apply to the purchase of supplies or materials ordinarily available on the open market or contracts for transportation. IX. Equal Employment Opportunity The Denton Independent School District agrees to comply with Executive Order 11246 entitled "Equal Employment Opportunity" as amended by Executive Order 11375 and as supplemented in Department of Labor regulations (41 CFR, Part 60). X. Compliance With Laws The Denton Independent School District agrees to comply with all other applicable laws, including without limitation, any additional applicable Federal Laws or regulations contained in the Summer Food Program Agreement between the City of Denton and the Texas Department of Agriculture -Food & Nutrition Division. XI. Remedy For Breach If the Denton Independent School District fails to provide services in accordance with the provisions of this contract, the City of Denton may, upon written notice of default to the contractor, immediately terminate the whole or part of this contract. XII. Consideration The City of Denton agrees to pay Denton Independent School District for all meals ordered on daily basis at the rate agreed upon in this contract. XIII. Term The agreement shall be effective as of June 9, 2014 and shall have the same term as the Summer Food Program Agreement between the City of Denton and the Texas Department of Agriculture - Food & Nutrition Division. It may be terminated by notice in writing given by any party hereto to the other parties at least 30 days prior to the date of termination. XIV. Venue This agreement shall be interpreted in accordance with the laws of the State of Texas. Any litigation filed with regard to this contract shall be tried in a court of competent jurisdiction setting in Denton County, Texas. IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the dates indicted below: Agreed to this date Sponsor Official Agreed to this date e-'2—,;'(J V- ,DISD Sponsor �" Title: City Manager Title School Board President The location of the food preparation site will be: Denton High School 1007 Fulton Denton, Texas 76201 APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY 1.1 BY: Consent Agenda K AGENDA INFORMATION SHEET AGENDA DATE: April 15, 2014 DEPARTMENT: Economic Development ACM: John Cabrales, Jr. SUBJECT Consider approval of a Resolution approving the 2013 Tax Increment Reinvestment Zone Number Two ( Westpark TIRZ) Annual Report; and declaring an effective date. BACKGROUND On December 17, 2012, the City Council adopted an Ordinance No. 2012 -366 designating and describing the boundaries of Tax Increment Reinvestment Zone Number Two ( Westpark TIRZ) to provide the public infrastructure necessary to encourage development in the largest industrially zoned area in the City. An annual report is required to be submitted to each taxing jurisdiction and the State Comptroller of Public Accounts, detailing the previous year's TIRZ activities. Staff has drafted a report that is included in the resolution for consideration by the City Council. This is the first year of the Westpark TIRZ. During calendar year 2013, there were no funds collected based on the certified and supplemental Denton Central Appraisal District (DCAD) values of the district. No funds were distributed. Certified and Supplemental TIRZ Two Valuation and Contribution 2012 119,458 119,458 N/A N/A 2013 116,277 116,277 0 0 Totals 0 0 Currently, all of the land within the TIRZ boundary has an agricultural exemption. While the net taxable, after the agricultural exemption, is $116,277 the market value of the district is over $8 million. Once the property is sold and developed, the exemption will be removed and the valuation will reflect the market value of the land. RECOMMENDATIONS Staff recommends that the City Council approve the resolution accepting the 2013 Tax Increment Reinvestment Zone Number Two ( Westpark TIRZ) Annual Report. Agenda Information Sheet April 15, 2014 Page 2 PRIOR ACTION/REVIEW The TIRZ Two board reviewed the 2013 Annual Report on April 1, 2014, and recommends approval (9 -0). On February 12, 2013, the City Council appointed the TIRZ Two board. The City Council adopted Ordinance 2013 -033 accepting an Agreement with Denton County to participate in Tax Increment Reinvestment Zone, Number Two on February 5, 2013. The City Council adopted Ordinance No. 2012 -366 designating and describing the boundaries of a TIRZ Number Two; established the duration of the Zone; established a Tax Increment Fund and established a Board of Directors for the Tax Increment Reinvestment Zone on December 18, 2012. FISCAL INFORMATION There is no fiscal impact for the City of Denton. Prepared by: Erica Sullivan, Economic Development Analyst Economic Development Department Respectfully submitted, K 1; l , � a Aimee Bissett, Director Economic Development Department -2- s:Alegal \our documents\resolutions\14\2013 annual report resolution.doc RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPROVING THE 2013 TAX INCREMENT REINVESTMENT ZONE NUMBER TWO (WESTPARK TIRZ) ANNUAL REPORT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City of Denton recognizes the importance of its role in local economic development initiatives and programs; and WHEREAS, the City has established Tax Increment Reinvestment Zone Number Two (Westpark TIRZ) and established a Board of Directors for the District to promote development or redevelopment in the Downtown area pursuant to Ordinance No. 2012 -366, authorized by the City Council on December 18, 2012, as provided by the Tax Increment Financing Act, Chapter 311 of the Texas Tax Code, as amended; and WHEREAS, on February 5, 2013, the City Council adopted Ordinance 2013 -033 accepting an Agreement with Denton County to participate in TIRZ Number Two; and WHEREAS, the Tax Increment Financing Act specifies that the governing body of a city shall submit an annual report on the financial status of the district to the Chief Executive Officer of each taxing unit that levies taxes on real property in a reinvestment zone, and a copy of the report shall be forwarded to the State Comptroller; and WHEREAS, on April 1, 2014, the Westpark TIRZ District Board reviewed and recommended approval of the 2013 Annual Report for Tax Increment Financing Reinvestment Zone Number Two to the City Council; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the 2013 Annual Report for Tax Increment Reinvestment Zone Number Two (Westpark TIRZ), City of Denton, Texas, as of December 31, 2013, a copy of which is attached here to (Exhibit A), and is hereby accepted. SECTION 2. That the City Manager is herby authorized to submit the 2013 Annual Report for Tax Increment Financing Reinvestment Zone Number One to the Chief Executive Officer of each taxing jurisdiction that levies tax on real property in the District; and to the State Comptroller, as required by state law. SECTION 3. That this resolution shall take effect immediately from and after its passage in accordance with the provisions of the Charter of the City of Denton, and it is accordingly so resolved. s:Alegal\ our d0cuments \resolutions \14\2013 annual report resolution.doc PASSED AND APPROVED this the day of , 2014. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY C APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: % /✓� d EXHIBIT A Tax Increment Reinvestment Zone Number Two (Westpark TIRZ) 2013 Annual Report City of Denton Economic Development Office 215 E. McKinney Street Denton, Texas 76201 940 - 349 -7775 www.dentonedp.com January 1, 2013 to December 31, 2013 Table of Contents Map.............................................................................................................. ..............................1 MissionStatement ...................................................................................... ..............................2 Backgroundand Purpose .......................................................................... ..............................2 ParticipatingJurisdictions ............................................................................ ..............................3 DistrictAccomplishments ......................................................................... ..............................3 Summaryof TIRZ Board Meetings ......................................................... ..............................3 Budgetand Project Status ......................................................................... ..............................4 ProjectDefinitions ....................................................................................... ..............................4 Revenues...................................................................................................... ..............................5 Expenditures................................................................................................ ..............................5 2013 Work Program .................................................................................. ..............................5 Appendices.................................................................................................. ..............................6 Appendix A: TIRZ Two Balance Sheet ....................................................... ..............................6 K Tax Increment Reinvestment Zone Number Two _ I Xk N X X 1 i J JIM CHRISTAL z 0 U) U W af CL AIRP RT Legend N This map is a graphic representation prepared by the City, of = TIRZ Boundary Denton and is intended for use only as a reference. Data property Description depicted is not guaranteed for accuracy and may be subject to revision at any time without notification. A Registered Government Surveyor for the State of Texas was not consulted. For Survey level accuracy, supervision and certification of the Real Acreage Rangeland produced data by a Registered Professional Land Surveyor for the State of Texas would need to be performed._ Commercial Vacant Lot 0 412.5825 1,650 2,475 3,300 DEN7'ON Feet Real Farmhouse 3 Mission Statement The mission of the Tax Increment Financing Reinvestment Zone (TIRZ) Number Two is to provide a source of funding for public infrastructure improvements to encourage and accelerate necessary development within the largest industrially zoned area within the City. Background and Purpose Tax increment financing originated as a tool for governments to publicly finance needed improvements and enhance infrastructure within a defined area in order to stimulate private development and redevelopment. A TIRZ is a defined area where public infrastructure improvements are deemed necessary to promote development. The costs of the improvements to the area are repaid by the contribution of future tax revenues. Specifically, each taxing entity may choose to dedicate all, a portion or none of the tax revenue that is attributable to the increase in property values. The additional tax revenue that is received from the affected properties is referred to as the tax increment. An ad valorem valuation base is established the first year, and the revenue from the increased valuation from subsequent years is allocated into a TIRZ fund to support development projects. On December 17, 2012 the City Council adopted an Ordinance 2012 -366 designating and describing the boundaries of Tax Increment Reinvestment Zone Number 'Two for an industrial district of Denton, Texas; establishing the duration of the Zone; establishing a Tax Increment Fund; establishing a Board of Directors for the Tax Increment Reinvestment Zone. The City's second TIRZ consists of approximately 800 acres and is located north of Airport Road. This industrial area (Westpark) lacks the public infrastructure necessary to encourage development. The Westpark TIRZ took effect on January 1, 2013 and will terminate on December 31, 2036 or the date when all project costs are paid and any debt is retired, whichever comes first. It is estimated that the TIRZ would generate approximately $14.3 million over a 25 year period for infrastructure improvements. The City and Denton County will contribute $10 million and $4.2 million into the TIRZ fund, respectively. According to the Finance Plan, the City would retain $43.9 million and the County would retain $18.8 million of real and business personal property revenue over the life of the TIRZ. El Participating Jurisdictions Table l: TIRZ Two Participating Jurisdictions City of Denton 1 -10 0.68975 40 11 -25 0.71975 40 Denton County 1 -10 0.282867 40 11 -25 0.312867 40 The TIRZ board is comprised of 11 members. The City Council is responsible for appointing nine members and designating the board Chair. The governing body of Denton County, which levies taxes on real property in TIRZ Number Two, has appointed one board member. Ravzor Investments, LLP, the Developer, has also appointed a single board representative. District Accomplishments This is the first year of the Westpark TIRZ. During calendar year 2013, there were no funds collected based on the certified and supplemental Denton Central Appraisal District (DCAD) values of the district. No funds were distributed. Denton City Council adopted an Ordinance accepting an Agreement with Denton County to participate in Tax Increment Reinvestment Zone, Number Two; authorizing the City Manager to execute the Agreement on February 5, 2013. On February 12, 2013 the board for TIRZ Two was appointed by City Council. Economic Development staff has coordinated with multiple City departments, the developer and legal counsel to develop a Reimbursement /Developer Agreement with the developer. The Agreement should be completed in 2014. Summary of TIRZ Two Board Meetings The Westpark TIRZ Board met on October 15, 2013 to administer oaths of office, elect officers and receive a report on the Westpark TIRZ. The board is also scheduled to meet April 1, 2014 to review the 2013 Annual Report. Table 2: Board Member List and Attendance Member Virgil Strange Affiliation Axiom Commercial Company Present 10115113 X Greg Johnson Versus Real Estate Advisors $1,275,430 Jim Fykes Peterbilt Motors Cleve Breedlove Access Bank of Texas X Mark Burroughs City of Denton Mayor X Dalton Gregory City of Denton Councilman Caleb O'Rear Denton Regional Medical Center Dr. V. Lane Rawlins President, University of North Texas X Carrell Ann Simmons Meridian Bank of Texas X Everette Newland Denton County X Selwyn Rayzor Rayzor Investments, LLC X During 2013, the TIRZ Board received reports and took action on the following items: 1. Received briefings on: the status of the Reimbursement /Developer Agreement 2. Appointed the following Officers: a temporary Chairman, Vice Chairman and Secretary Budget and Project Status The Westpark TIRZ district has established in its Project and Finance Plans a budget for public improvement expenditures necessary to support public infrastructure and private investment in the district. Table 3, which follows, provides the TIRZ projects and estimated costs. Table 3: TIRZ Projects Costs Street Improvements $8,000,000 Utilities and Drainage $5,000,000 Industrial Projects $1,275,430 TOTAL $14,275,430 Project Definitions Street Improvements: includes the construction and reconstruction of paving improvements capable of handling heavy truck traffic and that provide common turning radius for semi trailers and may consist of, but are not limited to, primary and secondary major arterial thoroughfares and collector streets that will provide improved access within the industrial park, to State highways, and Interstate 35. Utilities and Drainage: includes the extension of water and wastewater lines along the right -of- ways of the streets within the District. Water and wastewater lines will be built to adequately accommodate the District at build -out and its anticipated industrial users. C. A number of properties in the district are situated in the floodplain. Adequate stormwater drainage will be built to accommodate the maximum use of the land and comply with the drainage standards in the Denton Development Code. Industrial Projects: may include grants, loans and services for public and private development. Eligible TIRZ project costs are not limited to public uses and may also include projects that stimulate economic development. Chapter 380 of the Local Government Code grants municipalities in Texas the authority to offer grants and loans of public funds to stimulate economic development. Revenues According to Denton Central Appraisal District (DCAD) certified and supplemental figures, the 2013 total appraised valuation of taxable real property in TIRZ Number Two was $116,277. This is a $3,181 decrease from the 2012 base value of 119,458 and represents a 2.7% decrease in valuation. The valuation and contribution into the TIRZ fund are illustrated in the table below. Table 4: Certified and Supplemental TIRZ Two Valuation and Contribution Histo 2012 119,458 119,458 N/A N/A 2013 116,277 116,277 0 0 Totals 0 0 The 800 acre Westpark TIRZ is comprised of undeveloped land adjacent to the Denton Airport Business Park. Currently, all of the land within the TIRZ boundary has an agricultural exemption. While the net taxable, after the agricultural exemption, is $116,277 the market value of the district is $8,020,794. Once the property is sold and developed the exemption will be removed and the valuation will reflect the market value of the land. Expenditures No funds were expended in 2013. 2013 Work Program No projects were initiated in 2013. 7 Appendix A: TIRZ Two (Westpark) Balance Sheet There are not any revenues or expenditures to report at this time. Consent Agenda L AGENDA INFORMATION SHEET AGENDA DATE: April 15, 2014 DEPARTMENT: Planning and Development ACM: John Cabrales, Jr. r SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, establishing a new Schedule of Permit Fees for permits issued by the Building Inspector, including, but not limited to, building permit fees, consumer health permit fees, fence and retaining wall permit fees, mobile home moving fees, temporary permit fees, and investigation and administrative fees, superseding prior fee schedules to the extent of conflict, and providing for an effective date. BACKGROUND Since 1998, the City Council has adopted four (4) amendments to the Building Permit and Fee Schedule for various building permit types and associated fees for residential and commercial construction. The latest amendment occurred in 2008 for new permit fees for one and two - family dwellings. The Building Inspections Division recently performed a review of the existing building permit fees to determine if the revenues from the fees were covering the costs of the division, and to determine how competitive Denton's fees are with other comparison cities. As part of this review, staff surveyed several north Texas municipalities (i.e., Flower Mound, Lewisville, Frisco, Allen, and McKinney). Staff also received input from the Finance Department regarding Building Inspections overhead obligation to all other City departments. Staff has completed their review and is prepared to make recommendations for the City Council's consideration on amendments to the fee structure. On March 4, 2014, staff gave a Work Session presentation to the City Council on the staff recommended changes and additions to the current Building Permit and Fee Schedule. As a result of the City Council's direction and their desire for more information, staff sent out a survey, see Exhibit 3, to the Dallas Builders Association, to the members of the City's Developers Committee, and to the North Texas Chapter of the International Code Council (this is the local Building Inspectors Chapter). The results of these surveys was sent to the City Council on April 4, 2014, in an Informal Staff Report. As a result of the response from these two surveys, staff is recommending adoption of the Building Permit and Fee Schedule with amendments recommended by Building Inspections. Agenda Information Sheet April 15, 2014 Page 2 of 3 RECOMMENDATION The Building Inspections Division recommends the City Council adopt the proposed Building Permit and Fee Schedule increases. PRIOR /ACTION REVIEW (Council, Boards, Commissions) On April 4, 2014, staff sent out an Informal Staff Report to the City Council. This report conveyed the results of two surveys sent out to local builders, developers, and building inspection departments. On March 4, 2014, the City Council directed staff to survey stakeholders who would be affected by these staff recommended amendments and report the results of these surveys. On November 19, 2013, the City Council directed to staff to bring this issue to a future Work Session when more time could be dedicated to this proposal. October 21, 2008, the City Council approved new permit fees for one and two - family dwellings (Ord. 2008 -260). September 23, 2008, the City Council approved a new Building Permit Fee Schedule including several permit and fee changes (Ord. 2008 -218). November 27, 2001, the City Council approved a change in new commercial building permit fees (Ord. 2001 -448). September 8, 1998, the City Council approved a new Permit and Inspection Fee Schedule (Ord. 1998 -269). FISCAL INFORMATION The changes suggested by staff to the Building Permit and Fee Schedule could have a significant impact to the General Fund. Currently, the projected revenue for the Building Inspections Division for Fiscal Year 2013/2014 is $2,192,140. The current budget, including all overhead costs, is $2,273,471 resulting in a $106,000 shortfall for the Building Inspections Division. If all of the suggested fee changes are adopted by the City Council and implemented by May 1, 2014, the new projected Building Inspections Division revenue for Fiscal Year 2013/2014 could conservatively be $2,360,000. This could cover the projected shortfall and also result in an increase of approximately $60,000 to the General Fund. This increased revenue could be used to help fund additional personnel needed in the Building Inspections Division, to address the growth that Denton is experiencing. Agenda Information Sheet April 15, 2014 Page 3 of 3 Prepared by: Kurt Hansen, CBO, CPM Building Official Respectfully submitted: Brian Lockley, AICP, CPM Director of Planning and Development Exhibit I sAlegal \our documents \ordinances \14 \permit insp fee schedule ordinance 04- 15- 14.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, ESTABLISHING A NEW SCHEDULE OF PERMIT FEES FOR PERMITS ISSUED BY THE BUILDING INSPECTOR, INCLUDING, BUT NOT LIMITED TO, BUILDING PERMIT FEES, CONSUMER HEALTH PERMIT FEES, FENCE AND RETAINING WALL PERMIT FEES, MOBILE HOME MOVING FEES, TEMPORARY PERMIT FEES, AND INVESTIGATION AND ADMINISTRATIVE FEES, SUPERSEDING PRIOR FEE SCHEDULES TO THE EXTENT OF CONFLICT, AND PROVIDING FOR AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1. The following schedule of permit fees for permits issued by the Building Official is hereby adopted and approved: Table 1 Permit Fees for I & 2 Family Dwellings. Typ e Permit Fee 1. Plan Review Fee $60.00 2. Temporary Power Pole $15.00 3. Temporary Utilities Fee $35.00 4. Fence Permit - Residential $35.00 5. Retaining Wall Permit $35.00 / 200 LF 6. Retaining Wall Plan Review $60.00 7. Park Development Fee $291.00 Table 2 Permit Fees for 1 & 2 amil Dwellings Total Valuation* Permit Fee 1. $I to $100,000.00 $643.75 for the first $50,000.00 plus $7.00 for each additional $1000.00 or fraction thereof, to and including $100,000.00 2. $100,001.00 to $500,000.00 $993.75 for the first $100,000.00 plus $5.60 for each additional $1000.00 or fraction thereof, to and including $500,000.00 3. $500,001.00 to $1,000,000.00 $3,233.75 for the first $500,000.00 plus $4.75 for each additional $1,000.00 or fraction thereof, to and including $1,000,000.00 Olegal \our documents \ordinances \14 \permit insp fee schedule ordinance 04- 15- 14.doc Table 3 New Commercial and Multi Family Building Permit Fees Total Valuation's Fee 1. $1 to $100,000.00 $411.00 for the first $50,000.00 plus $3.00 $35.00 for each additional $1000.00 or fraction $35.00 Residential thereof, to and including $100,000.00 2. $100,000.00 to $500,000.00 $561.00 for the first $100,000.00 plus $35.00 $2.00 for each additional $1000.00 or fraction thereof, to and including $500,000.00 3. $500,000.01 to $1,000,000.00 $1361.00 for the first $500,000.00 plus $7.56 for each additional $1,000.00 or fraction thereof, to and including $1,000,000.00 4. $1,000,000.01 and up $5141.00 for the first $1,000,000.00 plus $3.25 for each additional $1,000.00 or fraction thereof 5. Inspections outside of normal business $40.00 per hour /Min. 2 hours (Min. Fee hours $80.00) 6. Plan Review Fee 50% of the Building Permit Fee (Min. fee $60.00) 7. Site Plan Review Fee $0.03 per Building SF, $50.00 Min. not to exceed $1,500.00 8. For the use of outside consultants for Actual Cost plan checking and inspections or both *Building Valuation Data shall be based on the most current Building Safety Magazine, year -end issue as published by the International Code Council. Table 4 Electrical Permit Fees Typ e Permit Fee 1. Minimum Fee $0.03 per SF, $35.00 Min. 2. Electrical Service Update $35.00 Table 5 Mechanical Permit Fees Type Permit Fee 1. Minimum Fee $0.03 per SF, $35.00 Min. Table 6 Plumbing Permit Fees Typ e Permit Fee 1. Minimum Fee $0.03 per SF, $35.00 Min. 2. Lawn Sprinkler System $95.00 3. Lawn Sprinkler Plan Review $35.00 Residential 4. Lawn Sprinkler Plan Review $60.00 Commercial 5. Lawn Sprinkler Alteration $35.00 Olegal \our documents \ordinances \14 \permit insp fee schedule ordinance 04- 15- 14.doc Table 7 Miscellaneous Fees Typ e Permit Fee 1. Curb Cut Permit $51.00 2. Fence Permit - Residential $35.00 3. Fence Permit - Commercial $35.00 / 200 LF 4. Retaining Wall Permit $35.00 / 200 LF 5. Retainin Wall Plan Review $60.00 6. Temporary Gas /Electric $35.00 7. Certificate of Occupancy $95.00 8. Construction Trailer (temporary) $50.00 9. House Moving Permit $95.00 10. Residential Demolition Permit $95.00 11. Residential Alteration Demolition $35.00 12. Commercial Demolition Permit $95.00 13. Spa/Hot Tub /Above Ground Pool $75.00 14. Pool $275.00 15. Re -ins ection Fee $40.00 16. Variance Filing Fee $150.00 17. Landscape Fee $50.00 18. Mobile Home Park Annual License $205.00 + $4.10 per stand 19. Mobile Home Move -in $95.00 21. Electrical Contractor Annual License $75.00 22. Plumbing Contractor Annual License N/A 23. Irrigation Contractor Annual License $75.00 24. Mechanical Contractor Annual License $75.00 25. General Contractor Annual License ** $75.00 26. Working Without a Permit Double Permit Fee 27. Investigation Fee $80.00 28. Administrative Fee $35.00 29. Temporary Certificate of Occupancy .005 per SF, $100.00 Min 30. Temporary Use Permit - Storage Unit $35.00 31. Temporary Batch Plant $95.00 ** General Contractor includes all of the following: General Contractor, Home Builder, Concrete Contractor, Pool Contractor, Fencing Contractor (During initial registration, the license holder must be present.) s: \legal \our documents \ordinances \14 \permit insp fee schedule ordinance 04- 15- 14.doe Table 8 Additions / Alterations / Fire Dama e Typ e Mint. Fee Permit Fee Plan Review Fee 1. 1 & 2 Family $35.00 $0.25 per sq ft $60.00 Dwellings 4. 60 -120 sq ft $55.00 5. 120 -250 sq ft 2. Triplex & $35.00 $0.25 per sq ft $60.00 Townhouse 8. Special Exception Petition $250.00 per request 9. Sin Variance Petition 3. Multi - Family (4 units $35.00 $0.25 per sq ft 50% of Permit, Min. & above) 12. Sign Installed Without Permit Scheduled Fee Doubled $60.00 4. Commercial $35.00 $0.25 per sq ft 50% of Permit, Min. Buildings $60.00 Table 9 Sign Permit Fees Typ e Permit Fee 1. Sign Contractor Annual License $75.00 2. Off Premise signs on State Highways: Annual Review $100.00 All Other sign Permits 3. 0 -60 sq ft $35.00 4. 60 -120 sq ft $55.00 5. 120 -250 sq ft $75.00 6. >250 sq ft $110.00 7. Wind Device Permits $95.00 8. Special Exception Petition $250.00 per request 9. Sin Variance Petition $250.00 per variance 10. Sign Appeal.Petition $250.00 per appeal 11. Special Sign District $225.00 12. Sign Installed Without Permit Scheduled Fee Doubled s: \legal \our documents \ordinances \14 \permit insp fee schedule ordinance 04- 15- 14.doc Table 10 Consumer Health Permit Fees Permit or Establishment Fee 1. Food Handler Pen-nit - 2 Years $25.00 2. Food Handler Replacement $5.00 3. Food Manager Registration $10.00 4. Beer & Wine Permits $25.00 processing Fee (new apps) $87.50 on- premise $30.00 off - premise $125.00 late night permit fee $75.00 beer only 5. Bars $275.00 6. Mixed Beverage permit $25.00 Commercial Pools 7. Pool Operator Certification $50.00 8. Pool Application Fee $250.00 9. Pool Re-inspection Fee $80.00 10. Annual Pool Permit $160.00 11. Spa Application Fee $80.00 12. Spa Re-inspection Fee $40.00 Restaurant 13. <2000 sq ft GFA $310.00 14. >2000 sq ft GFA $485.00 15. Class I Mobile Food Unit $175.00 16. Class II Mobile Food Unit $310.00 17. Class III Mobile Food Unit $175.00 18. Class IV Mobile Food Unit $75.00 19. Concession Stand, snow -cone stand or similar structure $175.00 20. School Cafeteria $150.00 Grocer Store 21. <12,000 sq ft GFA $325.00 22. >12,000 sq ft GFA $450.00 23. Convenience Store without deli $250.00 24. Convenience Store with deli $300.00 Miscellaneous & Temporary 25. Daycare $150.00 + $1.00 per child 26. Nursing Homes + all others $275.00 27. Farmers/Community Mkt - Annual $240.00 28. Farmers /Community Mkt - Monthly $40.00 29. Seasonal Permit Fee $75.00 30. Temporary Permit $35.00 31. Application fee for new permits $250.00 32. Administrative Fee 35.00 33. Damaged DVD Return Fee $70.00 s:\Iegal\ourdocLinieiits\orditiances\14\periiiiI insp fee schedule ordinance 04- 15- 14.doc SECTION 2. All provisions of the ordinances of the City of Denton establishing fees which conflict with the fees established by this ordinance are hereby superseded to the limited extent of such conflict. SECTION 3. This fee schedule shall be available for public inspection at the offices of the Building Official and the City Secretary. SECTION 4. This ordinance shall become effective May 1, 2014 PASSED AND APPROVED on this the day of , 2014 MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM ANITA BURGESS, CITY ATTORNEY BY Individual Item A AGENDA INFORMATION SHEET AGENDA DATE: April 15, 2014 DEPARTMENT: Finance ACM: Bryan Langley aL SUBJECT Consider adoption of an ordinance considering all matters incident and related to the issuance, sale and delivery of up to $94,500,000 in principal amount of "City of Denton Certificates of Obligation, Series 2014" (including up to $9,276,000 for General Government activities, up to $8,440,000 for Solid Waste Fund activities, up to $1,784,000 for Airport Fund activities, and up to $75,000,000 for Electric, Water and Wastewater Fund activities); authorizing the issuance of the Certificates; delegating the authority to certain City officials to execute certain documents relating to the sale of the Certificates; approving and authorizing instruments and procedures relating to said Certificates; and enacting other provisions relating to the subject. BACKGROUND On March 4, 2014, the City Council adopted Ordinance No. 2014 -073 and 2014 -074 directing the publication of a Notice of Intention to issue Certificates of Obligation (COs) of the City of Denton for General Government, Solid Waste, Water, Wastewater, and Electric System projects. The notices were published on March 10, 2014, and March 17, 2014, in the Denton Record Chronicle, as required by state law. The COs will be issued as a single series of obligations. Staff recommends the sale of $10,850,000 in COs for General Government and Airport, which is based on the amended FY 2013 -14 Capital Improvements Program (CIP). Below is a listing of recommended CO funded projects for General Government's FY 2013 -14 CIP: 1. Vehicle Replacements /Additions — $ 2,000,000 2. Fire Station Improvements — $ 4,300,000 3. Traffic Signals — $ 1,000,000 4. Facilities Maintenance Program — $ 1,500,000 5. Civic Center Pool Improvements — $ 300,000 6. Airport Hanger Development Project — $ 1,750,000 Total — $10,850,000 Agenda Information Sheet April 15, 2014 Page 2 Staff recommends the sale of $8,280,000 in COs for Solid Waste projects. Below is a listing of recommended CO funded projects for Solid Waste's FY 2013 -14 CIP: 1. Roll Off Truck - $ 220,000 2. Side Load Truck - $ 275,000 3. Home Chemical Building Improvements - $ 150,000 4. Auto Side Load Truck - $ 301,000 5. Auto Side Load Truck - $ 301,000 6. Rear Load Truck - $ 257,000 7. Rear Load Truck - $ 257,000 8. Front Load Truck - $ 296,000 9. Front Load Truck - $ 296,000 10. Container Truck - $ 100,000 11. Recycling Facility Upgrade - $ 27,000 12. Landfill Site Improvements - $ 250,000 13. Leachate Recirculation - $ 50,000 14. Landfill Security Fence - $ 40,000 15. Refuse /Recycling Carts - $ 170,000 16. Containers - $ 75,000 17. Commercial Container Equipment - $ 300,000 18. Ground Water Wells - $ 25,000 19. Site Construction and Equipment - $ 800,000 20. Landfill Engineering - $ 135,000 21. Landfill Property Acquisition - $ 1,940,000 22. Solid Waste Building Construction - $ 1,174,000 23. Landfill Gas Production Line Construction - $ 50,000 24. Program Development - $ 100,000 25. Security Wall Construction - $ 400,000 26. Grease and Grit Trap - $ 250,000 27. Technology Research and Development - $ 41,000 Total - $ 8,280,000 Staff recommends the sale of $9,000,000 in COs for Water projects, which is a decrease from the $12,000,000 included in the FY 2013 -14 Capital Improvements Program (CIP). Below is a listing of recommended CO funded projects for Water's FY 2013 -14 CIP: 1. North South Water Main Ph 2 - $ 5,368,421 2. Oversize Lines - $ 157,895 3. Riney Road Booster Pump Station - $ 236,842 4. Northwest Transmission Line - $ 315,789 5. Teasley Drive Utility Relocate - $ 2,921,053 Total - $ 9,000,000 Agenda Information Sheet April 15, 2014 Page 3 Staff recommends the sale of $6,500,000 in COs for Wastewater projects, which is a decrease from the $23,500,000 included in the FY 2013 -14 Capital Improvements Program (CIP). Below is a listing of recommended CO funded projects for Wastewater's FY 2013 -14 CIP: 1. Phosphorus Limit Upgrade — $ 464,286 2. Pecan Creek Interceptor II — $ 557,143 3. Graveyard Branch Lift Station /Force Main — $ 3,296,429 4. Hickory Creek Interceptor I — $ 185,714 5. Teasley Drive Relocate — $ 1,067,857 6. Concrete Improvements for Compost — $ 11,607 7. Effluent Reuse Line — $ 11,607 8. Cooper Creek II — $ 69,643 9. Dry Fork HC Tributary Interceptor — $ 835,714 Total — $ 6,500,000 Staff recommends the sale of $58,715,000 in COs for Electric projects, which is a decrease from the $85,000,000 included in the FY 2013 -14 CIP. Below is a listing of recommended CO funded projects for Electric's FY 2013 -14 CIP, which is broken down between transmission and distribution projects. Transmission projects represent approximately 52% of Electric's total bond sale and are eligible for Transmission Costs of Service (TCOS) recovery through rates charged to other utilities as mandated by the Public Utilities Commission of Texas. L Kings Row Substation Construction (Electric) — $ 2,000,000 2. McKinney Substation (Electric) — $ 4,500,000 3. Cooper Creek Substation (Electric) — $ 800,000 4. Hickory Substation Reconstruction (Electric) — $ 2,000,000 5. North Spencer Substation (Electric) — $ 1,000,000 6. Woodrow Substation Upgrade (Electric) — $ 700,000 7. Teasley Substation Transformer (Electric) — $ 250,000 8. UNT Substation (Electric) — $ 50,000 9. Locust Substation Reconstruction (Electric) — $ 100,000 10. Substation Security Projects (Electric) — $ 200,000 11. RTU Upgrades at Various Substations (Electric) — $ 60,000 12. Automated Meter Reading (Electric) — $ 515,196 13. Distribution Transformers (Electric) — $ 148,757 14. Distribution Feeders and Extensions (Electric) — $12,942,179 15. New Residential and Commercial (Electric) — $ 2,628,670 16. Communications Equipment — $ 170,824 17. Over to Under Conversions — $ 39,374 Total Distribution Projects — $28,105,000 Agenda Information Sheet April 15, 2014 Page 4 18. Pockrus 138 kV Reconstruction (Electric) — $ 5,500,000 19. ARCO Substation Reconstruction (Electric) — $ 5,500,000 20. Long Road Substation (Electric) — $ 3,000,000 21. North Lakes Substation Expansion (Electric) — $ 1,500,000 22. Brinker Substation (Electric) — $ 1,000,000 23. Masch Branch Switch Station (Electric) — $ 600,000 24. Underwood Substation (Electric) — $ 100,000 25. Industrial Substation (Electric) — $ 300,000 26. Woodrow /Kings Row 69 kV Transmission Line (Electric) — $ 6,000,000 27. Denton North /Kings Row Trans. Reconstruction (Electric) — $ 4,000,000 28. North Lakes /Bonnie Brae 69 kV (Electric) — $ 1,200,000 29. Pockrus Substation 138 kV Trans. Line Upgrade (Electric) — $ 800,000 30. North Lakes /Denton North Transmission (Electric) — $ 50,000 31. Hickory /Locust Transmission Line (Electric) — $ 100,000 32. TMPA 138 kV Transmission Upgrade (Electric) — $ 300,000 33. Spencer/Pockrus 138 kV (Electric) — $ 300,000 34. Spencer Switch (Electric) — $ 40,000 35. McKinney Substation Transmission Line Addition (Electric) — $ 150,000 36. North Spencer Interchange Reroute Trans. Line (Electric) — $ 50,000 37. ARCO Substation Trans. Line Reconstruction (Electric) — $ 20,000 38. PACCAR Transmission Line Reroute (Electric) — $ 100,000 Total Transmission Projects — $30,610,000 Electric Projects Grand Total — $58,715,000 Of the $94.5 million CO issuance, approximately $47.25 million was previously authorized through Reimbursement Ordinances. The City sells bonds in accordance with the useful life of the asset that is being acquired. For example, vehicles are typically sold with bonds that will be paid within five years. For the FY 2013 -14 proposed CO issuance: $4,480,000 will be 5 year debt, $2,410,000 will be 10 year debt, $27,740,000 will be 20 year debt, and $58,715,000 will be 30 year debt. In addition, the 20 and 30 year debt issues will also have a 10 year call feature. The additional $1,155,000 is for the cost of issuance and to allow flexibility in marketing and pricing the bond sale. Since bond market conditions can change rapidly, staff is recommending that the City Council approve a delegated parameters sale for the COs. The parameters ordinance sets the following requirements in order to complete the sale of the COs. - Maximum amount of sale is $94,500,000 - Final stated maturity of February 15, 2044 - Maximum net effective interest rate of 5.00% - Delegation authority ends October 15, 2014 By doing so, City staff will be authorized to execute the sale without additional Council approval. Once the exact terms of the transaction are determined, staff will provide the City Council with additional information in an informal staff report. Agenda Information Sheet April 15, 2014 Page 5 In addition to the sale of COs, the City anticipates the sale of approximately $7.6 million in General Obligation Refunding and Improvement Bonds (GOs) to fund projects approved by voters in 2012 and refund existing bonds. The refunding is contingent upon market conditions and it must meet the City's Debt policy requirements. Staff has discussed the upcoming issuance in detail with the bond rating agencies and applied for ratings. Fitch has affirmed the City's AA+ rating. Standard & Poor's rating and associated report will be sent to the City Council upon receipt. Staff tentatively plans to sell the COs & GOs through a competitive bond sale during the week of April 21", depending on market conditions. RECOMMENDATION Staff recommends approval of the ordinance. PRIOR ACTION/REVIEW (Council, Boards or Commissions) On March 4, 2014, the Audit /Finance Committee unanimously recommended approval to forward the upcoming bond issuance to the City Council for consideration. On March 4, 2014, the City Council adopted Ordinance No. 2014 -073 and 2014 -074 directing the publication of Notice of Intention to Issue Certificates of Obligation of the City of Denton totaling $94,500,000. EXHIBITS Exhibit l: Preliminary Official Statement Exhibit 2: Ordinance Respectfully submitted: Chuck Springer Director of Finance Prepared By: (A/U-:-�1- Antonio Puente, Jr. Assistant Director of Finance n r 7. i7 DRAFT 4-2-14 Exhibit 1 I'RE1,1MENARi t1I I R 1 M, S I A H I. IL. ' "I' Ratings: FirstSouthwest Fitch: ° flo°`, "` " - Dated April _, 2014 S &P: " (See "Other Information - NEW ISSUE - Book -Entry -Only Ratings" herein) In the opinion of Bond Counsel, interest on the Certificates will be excludable from gross income for federal income tax purposes under statutes, regulations, published rulings and court decisions existing on the date thereof, subject to the matters described under "Tax Matters" herein, including the alternative minimum tax on corporations. THE CERTIFICATES WILL NOT BE DESIGNATED AS "QUALIFIED TAX- EXENIPT OBLIGATIONS" FOR FINANCIAL INSTITUTIONS S86,015,000* CITY OF DENTON, TEXAS (Denton County) I)EN"J"ON CERTIFICATES OF OBLIGATION, SERIES 2014 Dated Date: April 15, 2014 Due: February 15, as shown below Interest Accrues from Delivery Date PAYMENT TERMS ... Interest on the $86,015,000* City of Denton, Texas Certificates of Obligation, Series 2014 (the "Certificates ") will accrue from the delivery date (the "Delivery Date "), will be payable February 15 and August 15 of each year, commencing February 15, 2015, until maturity or prior redemption, and will be calculated on the basis of a 360 -day year consisting of twelve 30 -day months. The definitive Certificates will be initially registered and delivered only to Cede & Co., the nominee of The Depository Trust Company ( "DTC ") pursuant to the Book -Entry -Only System described herein. Beneficial ownership of the Certificates may be acquired in denominations of $5,000 or integral multiples thereof within a maturity. No physical delivery of the Certificates will be made to the beneficial owners thereof. Principal of, premium, if any, and interest on the Certificates will be payable by the Paying Agent/Registrar to Cede & Co., which will make distribution of the amounts so paid to the participating members of DTC for subsequent payment to the beneficial owners of the Certificates. See "The Obligations - Book - Entry -Only System" herein. The initial Paying Agent/Registrar is The Bank of New York Mellon Trust Company, N.A., Dallas, Texas (see "The Obligations - Paying Agent/Registrar "). AUTHORITY FOR ISSUANCE ... The Certificates are issued pursuant to the Constitution and general laws of the State of Texas, (the "State ") particularly Subchapter C of Chapter 271, Texas Local Government Code (the Certificate of Obligation Act of 1971), as amended, and Texas Government Code, Chapter 1371, as amended, and constitute direct obligations of the City of Denton, Texas (the "City "), payable from a combination of (i) the levy and collection of a direct annual ad valorem tax, within the limits prescribed by law, on all taxable property within the City, and (ii) a limited pledge of surplus net revenues of the City's Utility System not in excess of $1,000, as provided in the Certificate Ordinance (defined herein) authorizing the Certificates (see "The Obligations - Authority for Issuance "). PURPOSE ... Proceeds from the sale of the Certificates will be used for (a) acquisition of vehicles and equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's solid waste disposal system, including the acquisition of land for the City landfill; (b) renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating, venting and air conditioning equipment, roofing and flooring; (c) acquisition of vehicles and equipment for the fire, police, building inspections, animal services, streets and traffic control, facilities management, and parks and recreation departments; (d) constructing and improving streets, including installation of traffic signals; (e) acquiring, constructing, installing and equipping hangars for the municipal airport; (f) acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to the Civic Center Pool facilities; (g) acquiring, constructing, installing and equipping replacement facility for Fire Station Number 2, including related site preparation; (h) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's waterworks and sewer system; (i) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's electric light and power system; and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers, architects, attorneys, map makers, auditors, and financial advisors, in connection with said projects and said Certificates (see "Plan of Financing "). MATURITY SCHEDULE See page 2 SEPARATE ISSUES ... The Certificates are being offered by the City concurrently with the "City of Denton General Obligation Refunding and Improvement Bonds, Series 2014" (the "Bonds "), and such Certificates and Bonds are hereinafter sometimes referred to collectively as the "Obligations." The Certificates and Bonds are separate and distinct securities offerings being issued and sold independently except for the common Official Statement, and, while the Obligations share certain common attributes, each issue is separate from the other and should be reviewed and analyzed independently, including the type of obligation being offered, its terms for payment, the security for its payment, the rights of the holders, the federal, state or local tax consequences of the purchase, ownership or disposition of the Obligations and other features. LEGALITY ... The Certificates are offered for delivery when, as and if issued and received by the Initial Purchaser subject to the approving opinion of the Attorney General of Texas and the opinion of McCall, Parkhurst & Horton L.L.P., Bond Counsel, Dallas, Texas (see Appendix C, "Forms of Bond Counsel's Opinions "). DELIVERY ... It is expected that the Certificates will be available for delivery through The Depository Trust Company on May , 2014. SEALED BIDS DUE APRIL _, 2014, AT 11:00 AM, CDT ** * Preliminary, subject to change. See "Adjustment of Principal Amount and /or Types of Bids" herein. ** Place and Time of Bid Opening ... The City will accept bids for the sale of the Certificates on a day during the period beginning April , 2014 and initially ending May 2014. At least 12 hours prior to the sale of the Bonds, First Southwest Company, as Financial Advisor to the City, will communicate, through Parity and Bloomberg, the date and time for submission of bids The Financial Advisor, acting on behalf of the City, shall accept bids up to the time specified in the notice as hereinbefore described. Exhibit 1 MATURITY SCHEDULE* CUSIP Prefix: 248866 (l) Principal Interest CUSIP Principal Interest Amount Maturity Rate Yield Suffix ' Amount Maturity Rate $1,525,000 2015 $ 3,325,000 2030 2,620,000 2016 3,495,000 2031 2,710,000 2017 3,690,000 2032 2,840,000 2018 3,880,000 2033 3,005,000 2019 4,090,000 2034 2,195,000 2020 2,220,000 2035 2,310,000 2021 2,340,000 2036 2,435,000 2022 2,465,000 2037 2,560,000 2023 2,595,000 2038 2,705,000 2024 2,730,000 2039 2,565,000 2025 2,880,000 2040 2,700,000 2026 3,030,000 2041 2,855,000 2027 3,195,000 2042 2,990,000 2028 3,365,000 2043 3,155,000 2029 3,545,000 2044 CUSIP Yield Suffix(') (1) CUSIP is a registered trademark of the American Bankers Association. CUSIP data herein is provided by CUSIP Global Services, managed by Standard & Poor's Financial Services LLC on behalf of the American Bankers Association. This data is not intended to create a database and does not serve in any way as a substitute for the CUSIP Services. Neither of the City or the Financial Advisor shall be responsible for the selection or correctness of the CUSIP numbers set forth herein. REDEMPTION ... The City reserves the right, at its option, to redeem Certificates having stated maturities on and after February 15, 2025, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2024, or any date thereafter, at the par value thereof plus accrued interest to the date of redemption (see "The Obligations — Optional Redemption "). * Preliminary, subject to change. See "Adjustment of Principal Amount and /or Types of Bids" herein. 2 7 Exhibit 1 iI �LI�Ft I 11REt INTIN AIRY M 911CIM S ➢` ➢`ELATE T Ratings: C-{.dst tJ d EIn3 "Fd --L Fitch: " Dated April _, 2014 S &P: " (See "Other Information - NEW ISSUE - Book - Entry -Only Ratings" herein) In the opinion of Bond Counsel, interest on the Bonds will be excludable from gross income for federal income tax purposes under statutes, regulations, published rulings and court decisions existing on the date thereof, subject to the matters described under "Tax Matters" herein, including the alternative minimum tax on corporations. THE BONDS WILL NOT BE DESIGNATED AS "QUALIFIED TAX - EXEMPT OBLIGATIONS" FOR FINANCIAL INSTITUTIONS $7,370,000- CITY OF DENTON, TEXAS (Denton County) I)EN"J"ON GENERAL OBLIGATION REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 Dated Date: April 15, 2014 Due: February 15, as shown below Interest Accrues from Delivery Date PAYMENT TERMS ... Interest on the $7,370,000* City of Denton, Texas General Obligation Refunding and Improvement Bonds, Series 2014 (the "Bonds ") will accrue from the delivery date (the "Delivery Date "), will be payable August 15 and February 15 of each year, commencing August 15, 2014, until maturity or prior redemption, and will be calculated on the basis of a 360 -day year consisting of twelve 30 -day months. The definitive Bonds will be initially registered and delivered only to Cede & Co., the nominee of The Depository Trust Company ( "DTC ") pursuant to the Book -Entry -Only System described herein. Beneficial ownership of the Bonds may be acquired in denominations of $5,000 or integral multiples thereof within a maturity. No physical delivery of the Bonds will be made to the beneficial owners thereof. Principal of, premium, if any, and interest on the Bonds will be payable by the Paying Agent/Registrar to Cede & Co., which will make distribution of the amounts so paid to the participating members of DTC for subsequent payment to the beneficial owners of the Bonds. See "The Obligations - Book -Entry -Only System" herein. The initial Paying Agent/Registrar is The Bank of New York Mellon Trust Company, N.A., Dallas, Texas (see "The Obligations - Paying Agent/Registrar "). AUTHORITY FOR ISSUANCE ... The Bonds are issued pursuant to the Constitution and general laws of the State of Texas, (the "State ") including particularly Texas Government Code, Chapters 1207, 1371 and 1331, as amended, and are direct obligations of the City of Denton, Texas (the "City "), payable from an annual ad valorem tax levied, within the limits prescribed by law, on all taxable property within the City, as provided in the Bond Ordinance (defined herein) authorizing the Bonds (see "The Obligations - Authority for Issuance" and "The Obligations — Security and Source of Payment "). PURPOSE ... Proceeds of the Bonds are expected to be used (i) to refund certain outstanding obligations of the City described on Schedule I attached hereto (the "Refunded Obligations ") for debt service savings; (ii) for various street improvements, and (iii) to pay the costs associated with the issuance of the Bonds (see "Plan of Financing "). A5 KIN ILU"I1 1104iIII111100 See page 4 SEPARATE ISSUES ... The Bonds are being offered by the City concurrently with the "City of Denton Certificates of Obligation, Series 2014" (the "Certificates "), under a common Official Statement, and such Bonds and Certificates are hereinafter sometimes referred to collectively as the "Obligations." The Bonds and Certificates are separate and distinct securities offerings being issued and sold independently except for the common Official Statement, and, while the Obligations share certain common attributes, each issue is separate from the other and should be reviewed and analyzed independently, including the type of obligation being offered, its terms for payment, the security for its payment, the rights of the holders, the federal, state or local tax consequences of the purchase, ownership or disposition of the Obligations and other features. LEGALITY ... The Bonds are offered for delivery when, as and if issued and received by the Initial Purchaser subject to the approving opinion of the Attorney General of Texas and the opinion of McCall, Parkhurst & Horton L.L.P., Bond Counsel, Dallas, Texas (see Appendix C, "Forms of Bond Counsel's Opinions "). DELIVERY ... It is expected that the Bonds will be available for delivery through The Depository Trust Company on May , 2014. SEALED BIDS DUE APRIL _, 2014, AT 11:30 AM, CDT ** * Preliminary, subject to change. See "Adjustment of Principal Amount and /or Types of Bids" herein. * * Place and Time of Bid Opening ... The City will accept bids for the sale of the Bonds on a day during the period beginning April 2014 and initially ending May , 2014. At least 12 hours prior to the sale of the Bonds, First Southwest Company, as Financial Advisor to the City, will communicate, through Parity and Bloomberg, the date and time for submission of bids. The Financial Advisor, acting on behalf of the City, shall accept bids up to the time specified in the notice as herembefore described. Principal Amount Maturity $1,140,000 2015 875,000 2016 885,000 2017 475,000 2018 465,000 2019 450,000 2020 170,000 2021 175,000 2022 180,000 2023 190,000 2024 Exhibit 1 MATURITY SCHEDULE* Interest Initial CUSIP Principal Rate Yield Suffix (1) Amount Maturity $195,000 2025 205,000 2026 210,000 2027 220,000 2028 230,000 2029 240,000 2030 250,000 2031 260,000 2032 270,000 2033 285,000 2034 CUSIP Prefix: 248866 (l) Interest Initial CUSIP Rate Yield Suffix (1) (1) CUSIP is a registered trademark of the American Bankers Association. CUSIP data herein is provided by CUSIP Global Services, managed by Standard & Poor's Financial Services LLC on behalf of the American Bankers Association. This data is not intended to create a database and does not serve in any way as a substitute for the CUSIP Services. Neither of the City or the Financial Advisor shall be responsible for the selection or correctness of the CUSIP numbers set forth herein. REDEMPTION ... The City reserves the right, at its option, to redeem Bonds having stated maturities on and after February 15, 2025, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2024, or any date thereafter, at the par value thereof plus accrued interest to the date of redemption (see "The Obligations — Optional Redemption "). * Preliminary, subject to change. See "Adjustment of Principal Amount and /or Types of Bids" herein. 4 Exhibit 1 This Official Statement, which includes the cover page and the Appendices hereto, sloes not constitute an offer to sell or the solicitation of an offer to buy in any jurisdiction to any person to whom it is unlawful to make such offer, solicitation, or sale. No dealer, broker, salesperson, or other person has been authorized to give information or to make any representation other than those contained in this Official Statement, and, if given or made, such other information or representations must not be relied upon. For purposes of compliance with Rule 15c 2 -12 of the Securities and Exchange Commission (the "Rule'), this document constitutes an Official Statement of the City with respect to the obligation that has been "deemed final " by the City as of its date except for the omission of no more than the information permitted by the Rule. The information set forth herein has been obtained from the City and other sources believed to be reliable, but such information is not guaranteed as to accuracy or completeness and is not to be construed as the representation, promise, or guarantee of the Financial Advisor. Any information and expressions of opinion herein contained are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City or other matters described herein since the date hereof. See "Other Information - Continuing Disclosure of Information" for a description of the City's undertaking to provide certain information on a continuing basis. Neither the City nor its Financial Advisor make any representation as to the accuracy, completeness, or adequacy of the information supplied by The Depository Trust Company for use in this Official Statement. THIS OFFICIAL STATEMENT CONTAINS 'TOR WARD- LOOKING" STATEMENTS WITHIN THE MEANING OF SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. SUCH STATEMENTS MAY INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES, AND OTHER FACTORS WHICH MAY CA USE THE ACT UAL RESULTS, PERFORMANCE, AND ACHIEVEMENTS TO BE DIFFERENT FROM FUTURE RESULTS, PERFORMANCE, AND ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD - LOOKING STATEMENTS. INVESTORS ARE CAUTIONED THAT THE ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE SET FORTH IN THE FORWARD - LOOKING STATEMENTS. THE OBLIGATIONS ARE EXEMPT FROM REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION AND CONSEQUENTLY HAVE NOT BEEN REGISTERED THEREWITH. THE REGISTRATION, QUALIFICATION, OR EXEMPTION OF THE OBLIGATIONS IN ACCORDANCE WITH APPLICABLE SECURITIES LAW PROVISIONS OF THE JURISDICTION IN WHICH THE OBLIGATIONS HAVE BEEN REGISTERED, QUALIFIED OR EXEMPTED SHOULD NOT BE REGARDED AS A RECOMMENDATION THEREOF. TABLE OF CONTENTS OFFICIAL STATEMENT SUMMARY ........ ..............................6 INVESTMENTS .............................. ............................... TABLE 14- CURRENT INVESTMENTS ...................... CITY OFFICIALS, STAFF AND CONSULTANTS ................. 8 ELECTED OFFICIALS ............................... ............................... 8 TAX MATTERS .............................. ............................... SELECTED ADMINISTRATIVE STAFF ........ ..............................8 CONSULTANTS AND ADVISORS ............... ..............................8 CONTINUING DISCLOSURE OF INFORMATION INTRODUCTION ........................................... ............................... 9 PLAN OF FINANCING ................................. ............................... 9 THE OBLIGATIONS ..................................... .............................10 TAX INFORMATION .................................... .............................15 TABLE 1 - VALUATION, EXEMPTIONS AND GENERAL OBLIGATION DEBT ....................... .............................21 TABLE 2 - TAXABLE ASSESSED VALUATIONS BY CATEGORY................................. ............................... 22 TABLE 3 - VALUATION AND GENERAL OBLIGATION DEBT HISTORY..................................... ............................... 23 TABLE 4 - TAX RATE, LEVY AND COLLECTION HISTORY .23 TABLE 5 - TEN LARGEST TAXPAYERS .. .............................23 TABLE 6 - ESTIMATED OVERLAPPING TAX DEBT ..............24 DEBT INFORMATION ............................... ............................... 23 TABLE 7 - GENERAL OBLIGATION DEBT SERVICE REQUIREMENTS .......................... ............................... 23 TABLE 8 - INTEREST AND SINKING FUND BUDGET PROJECTION ............................... ............................... 26 TABLE 9 - COMPUTATION OF SELF - SUPPORTING DEBT..... 26 TABLE 10 - AUTHORIZED BUT UNISSUED GENERAL OBLIGATION BONDS .................... .............................26 TABLE II - OTHER OBLIGATIONS ......... .............................27 FINANCIAL INFORMATION ..................... .............................29 TABLE 12 - CHANGES IN NET POSITION .............................29 TABLE 12A - GENERAL FUND REVENUES AND EXPENDITURE HISTORY ............... .............................30 TABLE 13 - MUNICIPAL SALES TAX HISTORY ...................31 OTHER INFORMATION ...................... ............................... RATINGS.......................................... ............................... LITIGATION ...................................... ............................... REGISTRATION AND QUALIFICATION OF OBLIGATIONS FORSALE .............................. ............................... LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS ...... ............................... LEGAL OPINIONS ............................. ............................... AUTHENTICITY OF FINANCIAL DATA AND OTHER INFORMATION ....................... ............................... FINANCIAL ADVISOR ....................... ............................... INITIAL PURCHASER OF THE BONDS ............................... INITIAL PURCHASER OF THE CERTIFICATES ................... CERTIFICATION OF THE OFFICIAL STATEMENT .............. FORWARD - LOOKING STATEMENTS DISCLAIMER........... MISCELLANEOUS ............................. ............................... 38 38 39 39 39 39 39 SCHEDULE OF REFUNDED OBLIGATIONS......... Schedule I APPENDICES GENERAL INFORMATION REGARDING THE CITY ................. A EXCERPTS FROM THE ANNUAL FINANCIAL REPORT .......... B FORMS OF BOND COUNSEL'S OPINIONS .............................. C The cover page hereof, this page, the schedule, the appendices included herein and any addenda, supplement or amendment hereto, are part of the Official Statement. Exhibit 1 OFFICIAL STATEMENT SUMMARY This summary is subject in all respects to the more complete information and definitions contained or incorporated in this Official Statement. The offering of the Bonds and Certificates to potential investors is made only by means of this entire Official Statement. No person is authorized to detach this summary from this Official Statement or to otherwise use it without the entire Official Statement. THE CITY ...... ............................... The City of Denton (the "City ") is a political subdivision and municipal corporation of the State, located in Denton County, Texas. The City covers approximately 97.411 square miles (see "Introduction - Description of the City "). THE BONDS ... ............................... The $7,370,000* City of Denton General Obligation Refunding and Improvement Bonds, CERTIFICATES .. ............................ Series 2014 are to mature on February 15 in the years 2015 through 2034 (see "The Obligations - Description of the Obligations "). THE CERTIFICATES ..................... The $86,015,000* City of Denton Certificates of Obligation, Series 2014 are to mature on February 15 in the years 2015 through 2044 (see "The Obligations - Description of the REDEMPTION ............................... Obligations "). PAYMENT OF INTEREST .............. Interest on the Bonds accrues from the Delivery Date (defined herein) and is payable August 15, 2014 and each February 15 and August 15 thereafter until maturity or prior redemption. Interest on the Certificates accrues from the Delivery Date and is payable February 15, 2015 and each August 15 and February 15 thereafter until maturity or prior redemption (see "The TAx EXEMPTION ............................ Obligations - Description of the Obligations" and "The Obligations - Optional Redemption "). AUTHORITY FOR ISSUANCE.......... The Bonds are issued pursuant to the Constitution and general laws of the State, including particularly Texas Government Code, Chapters 1207, 1371 and 1331, as amended, and an ordinance (the "Authorizing Bond Ordinance ") of the City in which the City Council delegated to each of the City Manager and the Chief Financial Officer authority to complete the sale of the Bonds. The terms of the sale will be included in a "Pricing Certificate," which will complete the sale of the Bonds (the Authorizing Bond Ordinance and the Pricing Certificate for the Bonds are jointly referred to as the "Bond Ordinance ") (see "The Obligations - Authority for Issuance "). The Certificates are issued pursuant to the Constitution and general laws of the State, particularly Subchapter C of Chapter 271, Texas Local Government Code, as amended, and Texas Government Code, Chapter 1371, as amended, and an ordinance (the "Authorizing Certificate Ordinance ") of the City in which the City Council delegated to each of the City Manager and the Chief Financial Officer authority to complete the sale of the Certificates. The terms of the sale will be included in a "Pricing Certificate," which will complete the sale of the Certificates (the Authorizing Certificate Ordinance and the Pricing Certificate for the Certificates are jointly referred to as the "Certificate Ordinance ") (see "The Obligations - Authority for Issuance "). SECURITY FOR THE BONDS .......... The Bonds constitute direct obligations of the City, payable from a direct annual ad valorem tax levied, within the limits prescribed by law, on all taxable property located within the City (see "The Obligations - Security and Source of Payment "). SECURITY FOR THE CERTIFICATES .. ............................ The Certificates constitute direct obligations of the City, payable from a combination of (i) a direct annual ad valorem tax levied, within the limits prescribed by law, on all taxable property within the City, and (ii) a limited pledge (not to exceed $1,000) of surplus net revenues of the City's Utility System (see "The Obligations - Security and Source of Payment "). REDEMPTION ............................... The City reserves the right, at its option, to redeem Bonds and Certificates, as the case may be, having stated maturities on and after February 15, 2025, in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2024, or any date thereafter, at the par value thereof plus accrued interest to the date of redemption (see "The Obligations - Optional Redemption "). TAx EXEMPTION ............................ In the opinion of Bond Counsel, the interest on the Obligations will be excludable from gross income for federal income tax purposes under existing law, subject to the matters described under "Tax Matters" herein, including the alternative minimum tax on corporations. * Preliminary, subject to change. Exhibit 1 USE OF PROCEEDS ....................... Proceeds of the Bonds are expected to be used (i) to refund certain outstanding obligations of the City described on Schedule I attached hereto (the "Refunded Obligations ") for debt service savings, (ii) for various street improvements, and (iii) to pay the costs associated with the issuance of the Bonds (see "Plan of Financing "). Proceeds from the sale of the Certificates will be used for (a) acquisition of vehicles and equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's solid waste disposal system, including the acquisition of land for the City landfill; (b) renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating, venting and air conditioning equipment, roofing and flooring; (c) acquisition of vehicles and equipment for the fire, police, building inspections, animal services, streets and traffic control, facilities management, and parks and recreation departments; (d) constructing and improving streets, including installation of traffic signals; (e) acquiring, constructing, installing and equipping hangars for the municipal airport; (f) acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to the Civic Center Pool facilities; (g) acquiring, constructing, installing and equipping replacement facility for Fire Station Number 2, including related site preparation; (h) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's waterworks and sewer system; (i) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's electric light and power system; and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers, architects, attorneys, map makers, auditors, and financial advisors, in connection with said projects and said Certificates (see "Plan of Financing "). RATINGS ....... ............................... The Obligations and the presently outstanding general obligation debt of the City are rated " " by Fitch Ratings ( "Fitch ") and " " by Standard & Pool's Rating Services, a Standard & Poor's Financial Services LLC business ( "S &P "). Boox -ENTRY -ONLY SYSTEM...... The definitive Obligations will be initially registered and delivered only to Cede & Co., the nominee of DTC pursuant to the Book - Entry -Only System described herein. Beneficial ownership of the Obligations may be acquired in denominations of $5,000 or integral multiples thereof within a maturity. No physical delivery of the Obligations will be made to the beneficial owners thereof. Principal of, premium, if any, and interest on the Obligations will be payable by the Paying Agent /Registrar to Cede & Co., which will make distribution of the amounts so paid to the participating members of DTC for subsequent payment to the beneficial owners of the Obligations (see "The Obligations - Book - Entry -Only System "). PAYMENT RECORD ...................... The City has never defaulted on the payment of its tax - supported indebtedness. SELECTED FINANCIAL INFORMATION Net Ratio Net Fiscal Taxable Tax Debt Per Capita Tax Debt to Year Taxable Assessed Outstanding Net Funded Taxable %of Ended Estimated Assessed Valuation at End of Tax Assessed Total Tax 9/30 Population Valuation (3) Per Capita Fiscal Year Debt Valuation Collections 2010 113,383(2) $6,327,909,022 $ 55,810 $ 119,862,600 $ 1,057 1.89% 99.66% 2011 114,517(l) 6,230,117,958 54,403 116,165,650 1,014 1.86% 99.67% 2012 115,662(l) 6,412,375,004 (4) 55,441 113,939,700 985 1.78% 99.61% 2013 117,397(l) 6,716,711,368 57,214 120,375,588 1,025 1.79% 99.30% 2014 119,158(l) 6,979,224,274 58,571 123,417,115 1,036(s) 1.77 %(s) 97.63 %(9) (1) Source: City Officials. (2) Source: US Census. (3) Valuations shown are certified taxable assessed values reported by the Denton Central Appraisal District to the State Comptroller of Public Accounts. Certified values are subject to change throughout the year as contested values are resolved and the Appraisal District updates records. Source: Denton Central Appraisal District as of July 26, 2013. (4) Includes tax incremental value of approximately $2,300,954 that is not available for the City's general obligations and debt of City. (5) Includes tax incremental value of approximately $10,248,781 that is not available for the City's general obligations and debt of City. (6) Includes tax incremental value of approximately $16,931,096 that is not available for the City's general obligations and debt of City. (7) Excludes self- supported general obligation debt. See Tables 1 and 9 herein for more detailed information on the City's general obligation self- supporting debt. The City's policy to pay such self- supporting general obligation debt from other revenues is subject to change in the future at the City's discretion, although the City has no current plans to do so. In the event the City changes it policy, or such revenues are not sufficient to pay debt service on such obligations, the City will be required to levy an ad valorem tax to pay such debt service. (8) Projected. Includes aportion of the Obligations. Excludes the Refunded Obligations. Preliminary, subject to change. (9) Collections for part year only, through March 1, 2014. Exhibit 1 CITY OFFICIALS, STAFF AND CONSULTANTS ELECTED OFFICIALS Term City Council Expires Mark Burroughs May, 2014 Mayor Pete Kamp May, 2014 Mayor Pro Tem, At Large Place 5 James King May, 2014 Councilmember, At Large Place 6 Kevin Roden May, 2015 Councilmember, District 1 Dalton Gregory May, 2015 Councilmember, District 2 Jim Engelbrecht May, 2015 Councilmember, District 3 Joey Hawkins May, 2015 Councilmember, District 4 SELECTED ADMINISTRATIVE STAFF Name Po sition George C. Campbell City Manager Jon Fortune Assistant City Manager John Cabrales Assistant City Manager Howard Martin Assistant City Manager Bryan Langley Assistant City Manager /CFO Chuck Springer Director of Finance Jennifer K. Walters City Secretary Anita Burgess City Attorney CONSULTANTS AND ADVISORS Auditors.......................................................................................................................................... ............................... Weaver, LLP Dallas, Texas Bond Counsel .............................................................................................. ............................... McCall, Parkhurst & Horton L.L.P. Dallas, Texas Financial Advisor ....................................................................................................... ............................... First Southwest Company Fort Worth, Texas For additional information regarding the City, please contact: Bryan Langley David Medanich Assistant City Manager /CFO Laura Alexander City of Denton First Southwest Company 215 E. McKinney Street or 777 Main Street, Suite 1200 Denton, Texas 76201 Fort Worth, Texas 76102 (940) 349 -8224 (817) 332 -9710 8 Exhibit 1 OFFICIAL STATEMENT RELATING TO CITY OF DENTON, TEXAS $7,370,000* $86,015,000* GENERAL OBLIGATION REFUNDING AND CERTIFICATES OF OBLIGATION, SERIES 2014 IMPROVEMENT BONDS, SERIES 2014 INTRODUCTION This Official Statement, which includes the Schedule and Appendices hereto, provides certain information regarding the issuance of $7,370,000* City of Denton. Texas General Obligation Refunding and Improvement Bonds, Series 2014 (the "Bonds ") and $86,015,000* City of Denton, Texas Certificates of Obligation, Series 2014 (the "Certificates "). The Bonds and the Certificates (collectively the "Obligations ") are separate and distinct securities offerings being authorized for issuance under separate ordinances (the "Bond Ordinance" and the "Certificate Ordinance ", respectively, each as defined below, and collectively the "Ordinances ") adopted by the City Council of the City, but are being offered and sold pursuant to a common Official Statement, and while the Bonds and Certificates share certain common attributes, each issue is separate and apart from the other and should be reviewed and analyzed independently, including the kind and type of obligation being issued, its terms of payment, the security for its payment, the rights of the holders, the federal, state or local tax consequences of the purchase, ownership or disposition of the Obligations and the covenants and agreements made with respect thereto. The City Council adopted an ordinance on April 15, 2014 authorizing the issuance of the Bonds (the "Authorizing Bond Ordinance "). In the Authorizing Bond Ordinance, as permitted by the provisions of Chapters 1207 and 1371, Texas Government Code, as amended, the City Council delegated the authority to each of the City Manager and the Chief Financial Officer to establish the terms and details of the Bonds and to effect the sale of the Bonds pursuant to a "Pricing Certificate" (the Authorizing Bond Ordinance and the Pricing Certificate for the Bonds are jointly referred to as the "Bond Ordinance "). The City Council adopted an ordinance on April 15, 2014 authorizing the issuance of the Certificates (the "Authorizing Certificate Ordinance "). In the Authorizing Certificate Ordinance, as permitted by the provisions of Chapters 1371, Texas Government Code, as amended, the City Council delegated the authority to each of the City Manager and the Chief Financial Officer to establish the terms and details of the Certificates and to effect the sale of the Certificates pursuant to a "Pricing Certificate" (the Authorizing Certificate Ordinance and the Pricing Certificate for the Certificates are jointly referred to as the "Certificate Ordinance "). Capitalized terms used in this Official Statement have the same meanings assigned to such terms in each respective Ordinance, except as otherwise indicated herein. There follows in this Official Statement descriptions of the Obligations and certain information regarding the City and its finances. All descriptions of documents contained herein are only summaries and are qualified in their entirety by reference to each such document. Copies of such documents may be obtained from the City's Financial Advisor, First Southwest Company, Dallas, Texas. DESCRIPTION of THE CITY ... The City of Denton, Texas (the "City ") is a political subdivision located in Denton County operating as a home -rule city under the laws of the State of Texas and a charter approved by the voters in 1959. The City operates under the Council/Manager form of government where the Mayor and six Councilmembers are elected for staggered two -year terms. The City Council formulates operating policy for the City while the City Manager is the chief administrative officer. The City is approximately 97.411 square miles in area. PLAN OF FINANCING PURPOSE ... Proceeds of the Bonds are expected to be used (i) to refund certain outstanding obligations of the City described on Schedule I attached hereto (the "Refunded Obligations ") for debt service savings, (ii) for various street improvements, and (iii) to pay the costs associated with the issuance of the Bonds. Proceeds from the sale of the Certificates will be used for (a) acquisition of vehicles and equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's solid waste disposal system, including the acquisition of land for the City landfill; (b) renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating, venting and air conditioning equipment, roofing and flooring; (c) acquisition of vehicles and equipment for the fire, police, building inspections, animal services, streets and traffic control, facilities management, and parks and recreation departments; (d) constructing and improving streets, including installation of traffic signals; (e) acquiring, constructing, installing and equipping hangars for the municipal airport; (f) acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to the Civic Center Pool facilities; (g) acquiring, constructing, installing and equipping replacement facility for Fire Station Number 2, including related site preparation; (h) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's waterworks and sewer system; (i) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the City's electric light and power system; and also for the purpose of paying all or a portion of the City's contractual obligations for professional services, including engineers, architects, attorneys, map makers, auditors, and financial advisors, in connection with said projects and said Certificates. * Preliminary, subject to change. Exhibit 1 REFUNDED OBLIGATIONS ... The Refunded Obligations and the interest due thereon are to be paid on the scheduled redemption date from funds to be deposited with the Paying Agent /Registrar for the Refunded Obligations. The Ordinance provides that from the proceeds of the sale of the Bonds received from the Initial Purchaser and other funds of the City, if any, the City will deposit with the Paying Agent /Registrar for the Refunded Obligations an amount sufficient to accomplish the discharge and final payment of the Refunded Obligations on the redemption date. By the deposit of Bond proceeds and cash with the Paying Agent /Registrar for the Refunded Obligations, the City will have affected the defeasance of all of the Refunded Obligations in accordance with the law. As a result of such defeasance, and in reliance upon the sufficiency certificate of the City's financial advisor or the Paying Agent /Registrar for the Refunded Obligations the Refunded Obligations will be outstanding only for the purpose of receiving payments from the cash held for such purpose by the Paying Agent /Registrar for the Refunded Obligations and such Refunded Obligations will not be deemed as being outstanding obligations of the City payable from taxes nor for the purpose of applying any limitation on the issuance of debt. THE OBLIGATIONS DESCRIPTION OF THE OBLIGATIONS ... The Obligations are dated April 15, 2014, and mature on February 15 in each of the years and in the amounts shown on the cover page and page 3 hereof. Interest will accrue from the date of initial delivery thereof (the "Delivery Date "), will be computed on the basis of a 360 -day year of twelve 30 -day months, and will be payable on August 15 and February 15 of each year, commencing August 15, 2014 for the Bonds and February 15, 2015 for the Certificates, until maturity or prior redemption. The definitive Obligations will be issued only in fully registered form in any integral multiple of $5,000 for any one maturity and will be initially registered and delivered only to Cede & Co., the nominee of The Depository Trust Company ( "DTC ") pursuant to the Book - Entry -Only System described herein. No physical delivery of the Obligations will be made to the beneficial owners thereof. Principal of, premium, if any, and interest on the Obligations will be payable by the Paying Agent /Registrar to Cede & Co., which will make distribution of the amounts so paid to the participating members of DTC for subsequent payment to the beneficial owners of the Obligations. See "The Obligations - Book - Entry -Only System" herein. AUTHORITY FOR ISSUANCE ... The Bonds are being issued pursuant to the Constitution and general laws of the State of Texas, particularly Chapters 1207, 1371 and 1331, Texas Government Code, as amended, and the Bond Ordinance. The Certificates are being issued pursuant to the Constitution and general laws of the State of Texas, particularly Subchapter C of Chapter 271, Texas Local Government Code, as amended, and Texas Government Code, Chapter 1371, as amended, and the Certificate Ordinance. SECURITY AND SOURCE OF PAYMENT The Bonds ... The Bonds constitute direct obligations of the City and the principal thereof and interest thereon are payable from an annual ad valorem tax levied by the City, within the limits prescribed by law, upon all taxable property in the City, as provided in the Bond Ordinance. The Certificates ... The Certificates constitute direct obligations of the City, payable from a combination of (i) a direct annual ad valorem tax levied, within the limits prescribed by law, on all taxable property within the City, and (ii) a limited pledge (not to exceed $1,000) of surplus net revenues of the City's Utility System (consisting of the electric system and the waterworks and sewer system). TAx RATE LIMITATION ... All taxable property within the City is subject to the assessment, levy and collection by the City of a continuing, direct annual ad valorem tax sufficient to provide for the payment of principal of and interest on all ad valorem tax debt, including the Obligations, within the limits prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City, and limits its maximum ad valorem tax rate to $2.50 per $100 Taxable Assessed Valuation for all City purposes. The Home Rule Charter of the City adopts the constitutionally authorized maximum tax rate of $2.50 per $100 Taxable Assessed Valuation. Administratively, the Attorney General of the State of Texas will permit allocation of $1.50 of the $2.50 maximum tax rate for all general obligation debt, as calculated at the time of issuance and based on 90% tax collection factor. OPTIONAL REDEMPTION ... The City reserves the right, at its option, to redeem the Obligations having stated maturities on and after February 15, 2025 in whole or in part in principal amounts of $5,000 or any integral multiple thereof, on February 15, 2024 or any date thereafter, at the par value thereof plus accrued interest to the date of redemption. If less than all of the Bonds or Certificates are to be redeemed, the City may select the maturities of Bonds or Certificates, as the case may be, to be redeemed. If less than all the Bonds or Certificates of any maturity are to be redeemed, the Paying Agent /Registrar (or DTC while the Bonds or Certificates, as the case may be, are in Book - Entry -Only form) shall determine by lot the Bonds or Certificates, or portions thereof, within such maturity to be redeemed. If a Bond or Certificate (or any portion of the principal sum thereof) shall have been called for redemption and notice of such redemption shall have been given, such Bond or Certificate (or the principal amount thereof to be redeemed) shall become due and payable on such redemption date and interest thereon shall cease to accrue from and after the redemption date, provided funds for the payment of the redemption price and accrued interest thereon are held by the Paying Agent /Registrar on the redemption date. 10 Exhibit 1 With respect to any optional redemption of the Bonds or Certificates, as the case may be, unless certain prerequisites to such redemption required by the respective Ordinance have been met and money sufficient to pay the principal of and premium, if any, and interest on the Bonds or Certificates, as the case may be, to be redeemed will have been received by the Paying Agent /Registrar prior to the giving of such notice of redemption, such notice may state that said redemption will, at the option of the City, be conditional upon the satisfaction of such prerequisites and receipt of such money by the Paying Agent /Registrar on or prior to the date fixed for such redemption or upon any prerequisite set forth in such notice of redemption. If a conditional notice of redemption is given and such prerequisites to the redemption are not fulfilled, such notice will be of no force and effect, the City will not redeem such Bonds or Certificates, as the case may be, and the Paying Agent /Registrar will give notice in the manner in which the notice of redemption was given, to the effect that the Bonds or Certificates, as the case may be, have not been redeemed. NOTICE OF REDEMPTION ... Not less than 30 days prior to a redemption date for the Obligations, the City shall cause a notice of redemption to be sent by United States mail, first class, postage prepaid, to the registered owners of the Obligations to be redeemed, in whole or in part, at the address of the registered owner appearing on the registration books of the Paying Agent /Registrar at the close of business on the business day next preceding the date of mailing such notice. ANY NOTICE SO MAILED SHALL BE CONCLUSIVELY PRESUMED TO HAVE BEEN DULY GIVEN WHETHER OR NOT THE REGISTERED OWNER RECEIVES SUCH NOTICE. IF AN OBLIGATION (OR ANY PORTION OF ITS PRINCIPAL SUM) SHALL HAVE BEEN DULY CALLED FOR REDEMPTION AND NOTICE OF SUCH REDEMPTION DULY GIVEN, THEN UPON THE REDEMPTION DATE SUCH OBLIGATION (OR THE PORTION OF ITS PRINCIPAL SUM TO BE REDEEMED) SHALL BECOME DUE AND PAYABLE, AND, IF MONIES FOR THE PAYMENT OF THE REDEMPTION PRICE ARE HELD FOR THE PURPOSE OF SUCH PAYMENT BY THE PAYING AGENT /REGISTRAR AND ALL OTHER CONDITIONS TO REDEMPTION ARE SATISFIED, INTEREST SHALL CEASE TO ACCRUE AND BE PAYABLE FROM AND AFTER THE REDEMPTION DATE ON THE PRINCIPAL AMOUNT REDEEMED. DEFEASANCE ... The Ordinances provide that any Obligation and the interest thereon shall be deemed to be paid, retired, and no longer outstanding (a "Defeased Obligation ") within the meaning of such Ordinance when payment of the principal of such Obligation, plus interest thereon to the due date either (i) shall have been made or caused to be made in accordance with the terms thereof, or (ii) shall have been provided for on or before such due date by irrevocably depositing with or making available to the Paying Agent /Registrar for such payment (1) lawful money of the United States of America sufficient to make such payment or (2) Government Obligations which mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money to provide for such payment, and when proper arrangements have been made by the City with the Paying Agent /Registrar for the payment of its services until all Defeased Obligations shall have become due and payable. At such time as an Obligation shall be deemed to be a Defeased Obligation hereunder, as aforesaid, such Obligation and the interest thereon shall no longer be secured by, payable from, or entitled to the benefits of, the ad valorem taxes herein levied and pledged as provided in the Ordinance, and such principal and interest shall be payable solely from such money or Government Obligations. Any moneys so deposited with the Paying Agent /Registrar may at the written direction of the City also be invested in Government Obligations, maturing in the amounts and times as hereinbefore set forth, and all income from such Government Obligations received by the Paying Agent /Registrar which is not required for the payment of the Obligations and interest thereon, with respect to which such money has been so deposited, shall be turned over to the City, or deposited as directed in writing to the City. The Ordinances provide that "Government Obligations" means (a) direct, noncallable obligations of the United States of America, including obligations that are unconditionally guaranteed by the United States of America, (b) noncallable obligations of an agency or instrumentality of the United States of America, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that, on the date the City Council approves such defeasance, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent, (c) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that, on the date the City Council approves such defeasance, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent and (d) any other then authorized securities or obligations under applicable Texas state law that may be used to defease obligations such as the Obligations. There is no assurance that the current law will not be changed in a manner which would permit investments other than those described above to be made with amounts deposited to defease the Obligations. Because the Ordinances do not contractually limit such investments, registered owners will be deemed to have consented to defeasance with such other investments, notwithstanding the fact that such investments may not be of the same investment quality as those currently permitted under State law. There is no assurance that any particular rating for U.S. Treasury securities used as Government Obligations or the rating for any other Government Obligations will be maintained at any particular rating category. Upon such deposit as described above, such Defeased Obligations shall no longer be regarded to be outstanding obligations payable from ad valorem taxes levied by the City or from the other revenues pledged to their payment in the Ordinances, but will be payable only from the funds and Government Obligations deposited in escrow and will not be considered debt of the City for any purpose. After firm banking and financial arrangements for the discharge and final payment or redemption of the Obligations have been made as described above, all rights of the City to initiate proceedings to call the Obligations for redemption or take any other action amending the terms of the Obligations are extinguished; provided, however, that the right to call the Obligations for redemption is not extinguished if the City: (i) in the proceedings providing for the firm banking and financial arrangements, expressly reserves the right to call the Obligations for redemption; and (ii) gives notice of the reservation of that right to the owners of the Obligations immediately following the making of the firm banking and financial arrangements; (iii) directs that notice of the reservation be included in any redemption notices that it authorizes. 11 Exhibit 1 Boox- ENTRY -ONLY SYSTEM ... This section describes how ownership of the Obligations is to be transferred and how the principal of premium, if any, and interest on the Obligations are to be paid to and accredited by DTC while the Obligations are registered in its nominee name. The information in this section concerning DTC and the Book -Entry -Only System has been provided by DTC for use in disclosure documents such as this Official Statement. The City and the Underwriters believe the source of such information to be reliable, but takes no responsibility for the accuracy or completeness thereof. The City and the Underwriters cannot and do not give any assurance that (1) DTC will distribute payments of debt service on the Obligations, or redemption or other notices, to DTC Participants, (2) DTC Participants or others will distribute debt service payments paid to DTC or its nominee (as the registered owner of the Obligations), or redemption or other notices, to the Beneficial Owners, or that they will do so on a timely basis, or (3) DTC will serve and act in the manner described in this Official Statement. The current rules applicable to DTC are on file with the Securities and Exchange Commission, and the current procedures of DTC to be followed in dealing with DTC Participants are on file with DTC. DTC will act as securities depository for the Obligations. The Obligations will be issued as fully- registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully- registered security certificate will be issued for each maturity of the Obligations in the aggregate principal amount thereof and will be deposited with DTC. DTC, the world's largest securities depository, is a limited - purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non -U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants ( "Direct Participants ") deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly -owned subsidiary of The Depository Trust & Clearing Corporation ( "DTCC "). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ( "Indirect Participants "). DTC has a Standard & Poor's rating of "AA + ". The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com and www.dtc.ora. Purchases of Obligations under the DTC system must be made by or through Direct Participants, which will receive a credit for the Obligations on DTC's records. The ownership interest of each actual purchaser of each Obligation ( "Beneficial Owner ") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations providing details of the transactions, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owners entered into the transaction. Transfers of ownership interest in the Obligations are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Obligations, except in the event that use of the book -entry system for the Obligations is discontinued. To facilitate subsequent transfers, all Obligations deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Obligations with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Obligations; DTC's records reflect only the identity of the Direct Participant to whose account such Obligations are credited, which may or may not be the Beneficial Owners. The Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Obligations may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Obligations, such as redemptions, tenders, defaults, and proposed amendments to the Obligation documents. For example, Beneficial Owners of Obligations may wish to ascertain that the nominee holding the Obligations for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the Obligations within a maturity are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. 12 Exhibit 1 Neither DTC nor Cede & Co. will consent or vote with respect to the Obligations unless authorized by a Direct Participant in accordance with DTC's procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Obligations are credited on the record date (identified in a listing attached to the Omnibus Proxy). Payments on the Obligations will be made to DTC. DTC's practice is to credit Direct Participants' accounts, upon DTC's receipt of funds and corresponding detail information from the City or the Paying Agent /Registrar on payable dates in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as in the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, the Paying Agent /Registrar or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment to DTC is the responsibility of the City, disbursement of such payments to Direct Participants shall be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as securities depository with respect to the Obligations at any time by giving reasonable notice to the City and the Paying Agent /Registrar. Under such circumstances, in the event that a successor securities depository is not obtained, Obligation certificates are required to be printed and delivered. The City may decide to discontinue use of the system of book -entry transfers through DTC (or a successor securities depository). In that event, Obligations will be printed and delivered. Use of Certain Terms in Other Sections of this Official Statement. In reading this Official Statement it should be understood that while the Obligations are in the Book - Entry -Only System, references in other sections of this Official Statement to registered owners should be read to include the person for which the Participant acquires an interest in the Obligations, but (i) all rights of ownership must be exercised through DTC and the Book - Entry -Only System, and (ii) except as described above, notices that are to be given to registered owners under the Ordinances will be given only to DTC. Information concerning DTC and the Book - Entry -Only System has been obtained from DTC and is not guaranteed as to accuracy or completeness by, and is not to be construed as a representation by the City, the Financial Advisor or the Underwriters. EFFECT OF TERMINATION OF BooK- ENTRY -ONLY SYSTEM ... In the event that the Book- Entry -Only System is discontinued by DTC or the use of the Book - Entry -Only System is discontinued by the City, printed Obligations will be issued to the holders and the Obligations will be subject to transfer, exchange and registration provisions as set forth in the Ordinances and summarized under "The Obligations - Transfer, Exchange and Registration" below. PAYING AGENT /REGISTRAR ... The initial Paying Agent /Registrar for the Bonds and the Certificates is The Bank of New York Mellon Trust Company, N.A., Dallas, Texas. In the Ordinances, the City retains the right to replace the Paying Agent /Registrar. The City covenants to maintain and provide a Paying Agent /Registrar at all times until the Bonds and Certificates are duly paid and any successor Paying Agent /Registrar shall be a commercial bank or trust company organized under the laws of the State of Texas or other entity duly qualified and legally authorized to serve as and perform the duties and services of Paying Agent /Registrar for the Bonds and Certificates. Upon any change in the Paying Agent /Registrar for the Bonds and Certificates, the City agrees to promptly cause a written notice thereof to be sent to each registered owner of the Bonds and Certificates, as applicable, by United States mail, first class, postage prepaid, which notice shall also give the address of the new Paying Agent /Registrar. In the event the use of the Book - Entry -Only system is discontinued, principal of the Bonds and Certificates is payable to the registered holder appearing on the registration books of the Paying Agent /Registrar (the "Registered Owner ") at the designated corporate trust office of the Paying Agent /Registrar upon surrender of the Bonds and Certificates for payment; provided, however, that so long as Cede & Co. (or other DTC nominee) is the registered owner of the Obligations, all payments will be made as described under "The Obligations - Book - Entry -Only System" herein. Interest on the Bonds and Certificates is payable to the Register Owners appearing on the registration books of the Paying Agent /Registrar at the close of business on the Record Date (identified below) and such interest shall be paid by the Paying Agent /Registrar by check mailed, first class postage prepaid, to the Register Owner or by such other arrangement, acceptable to the Paying Agent /Registrar, requested by and at the risk and expense of the Registered Owner. If the date for the payment of the principal of or interest on the Bonds and Certificates shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the city where the designated corporate office of the Paying Agent /Registrar is located is authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. TRANSFER, EXCHANGE AND REGISTRATION . . . In the event the Book- Entry -Only System should be discontinued, printed Obligations will be delivered to the Registered Owners and thereafter the Obligations may be transferred and exchanged on the registration books of the Paying Agent /Registrar only upon presentation and surrender of such printed Obligations to the Paying 13 Exhibit 1 Agent /Registrar and such transfer or exchange shall be without expense or service charge to the Registered Owner, except for any tax or other governmental charges required to be paid with respect to such registration, exchange and transfer. Obligations may be assigned by the execution of an assignment form on the Obligations or by other instrument of transfer and assignment acceptable to the Paying Agent /Registrar. New Obligations will be delivered by the Paying Agent /Registrar, in lieu of the Obligations being transferred or exchanged, at the designated office of the Paying Agent /Registrar, or sent by United States mail, first class, postage prepaid, to the new Registered Owner or his designee. To the extent possible, new Obligations issued in an exchange or transfer of Obligations will be delivered to the Registered Owner or assignee of the Registered Owner in not more than three business days after the receipt of the Obligations to be canceled, and the written instrument of transfer or request for exchange duly executed by the Registered Owner or his duly authorized agent, in form satisfactory to the Paying Agent /Registrar. New Obligations registered and delivered in an exchange or transfer shall be in any integral multiple of $5,000 for any one maturity and for a like aggregate principal amount as the Obligations surrendered for exchange or transfer. See "The Obligations—Book- Entry -Only System" herein for a description of the system to be utilized initially in regard to ownership and transferability of the Obligations. Neither the City nor the Paying Agent /Registrar shall be required to transfer or exchange any Obligation called for redemption, in whole or in part, within 45 days of the date fixed for redemption; provided, however, such limitation of transfer shall not be applicable to an exchange by the Registered Owner of the uncalled balance of an Obligation. RECORD DATE FOR INTEREST PAYMENT ... The record date ( "Record Date ") for the interest payable on the Bonds and Certificates on any interest payment date means the close of business on the last business day of the month next preceding such interest payment date. In the event of a non - payment of interest on a scheduled payment date, and for 30 days thereafter, a new record date for such interest payment (a "Special Record Date ") will be established by the Paying Agent /Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest ( "Special Payment Date ", which shall be 15 days after the Special Record Date) shall be sent at least five business days prior to the Special Record Date by United States mail, first class postage prepaid, to the address of each Registered Owner of a Bond and Certificate appearing on the registration books of the Paying Agent /Registrar at the close of business on the last business day next preceding the date of mailing of such notice. AMENDMENTS ... In each Ordinance, the City has reserved the right to amend the Ordinance without the consent of any holder of the respective Obligation for the purpose of amending or supplementing the Ordinance to (i) cure any ambiguity, defect or omission therein that does not materially adversely affect the interests of the holders, (ii) grant additional rights or security for the benefit of the holders, (iii) add events of default as shall not be inconsistent with the provisions of the Ordinance that do not materially adversely affect the interests of the holders, (iv) qualify the Ordinance under the Trust Indenture Act of 1939, as amended, or corresponding provisions of federal laws from time to time in effect or (v) make such other provisions in regard to matters or questions arising under the Ordinance that are not inconsistent with the provisions thereof and which, in the opinion of Bond Counsel for the City, do not materially adversely affect the interests of the holders. Each Ordinance further provides that the holders of the Bonds or Certificates, as applicable, aggregating in principal amount a majority of the outstanding Bonds or Certificates, as the case may be, shall have the right from time to time to approve any amendment not described above to the applicable Ordinance if it is deemed necessary or desirable by the City; provided, however, that without the consent of 100% of the holders in original principal amount of the then outstanding Bonds or Certificates so affected, no amendment may be made for the purpose of. (i) making any change in the maturity of any of the outstanding Bonds or Certificates; (ii) reducing the rate of interest borne by any of the outstanding Bonds or Certificates; (iii) reducing the amount of the principal of, or redemption premium, if any, payable on any outstanding Bonds or Certificates; (iv) modifying the terms of payment of principal or of interest or redemption premium on outstanding Bonds or Certificates, or imposing any condition with respect to such payment; or (v) changing the minimum percentage of the principal amount of the Bonds or Certificates necessary for consent to such amendment. Reference is made to the Ordinances for further provisions relating to the amendment thereof. REMEDIES ... Each Ordinance establishes specific events of default with respect to the respective series of Obligations. If the City defaults in the payment of the principal of or interest on the Bonds or Certificates when due or the City defaults in the observance or performance of any of the covenants, conditions, or obligations of the City, the failure to perform which materially, adversely affects the rights of the owners thereof, including but not limited to, their prospect or ability to be repaid in accordance with the respective Ordinance, and the continuation thereof for a period of 60 days after notice of such default is given by any owner to the City, each Ordinance provides that any registered owner of a respective Obligation is entitled to seek a writ of mandamus from a court of proper jurisdiction requiring the City to make such payment or observe and perform such covenants, obligations, or conditions. The issuance of a writ of mandamus may be sought if there is no other available remedy at law to compel performance of the respective Obligations or Ordinance and the City's obligations are not uncertain or disputed. The remedy of mandamus is controlled by equitable principles, so rests with the discretion of the court, but may not be arbitrarily refused. There is no acceleration of maturity of the Obligations in the event of default and, consequently, the remedy of mandamus may have to be relied upon from year to year. The Ordinances do not provide for the appointment of a trustee to represent the interest of the owners of the respective Obligations upon any failure of the City to perform in accordance with the terms of the Ordinances, or upon any other condition and accordingly all legal actions to enforce such remedies would have to be undertaken at the initiative of, and be financed by, the Registered Owners. The Texas Supreme Court has ruled in Tooke v. City 14 Exhibit 1 of Mexia 197 S.W.3d 325 (Tex. 2006) that a waiver of sovereign immunity in a contractual dispute must be provided for by statute in "clear and unambiguous" language. Because it is unclear whether the Texas legislature has effectively waived the City's sovereign immunity from a suit for money damages, owners of Obligations may not be able to bring such a suit against the City for breach of the Obligations or Ordinance covenants in the absence of City action. Chapter 1371, Texas Government Code ( "Chapter 1371 "), which pertains to the issuance of public securities by issuers such as the City, permits the City to waive sovereign immunity in the proceedings authorizing its debt, but in connection with the issuance of the Obligations, the City has not waived sovereign immunity. Even if a judgment against the City could be obtained, it could not be enforced by direct levy and execution against the City's property. Further, the Registered Owners cannot themselves foreclose on property within the City or sell property within the City to enforce the tax lien on taxable property to pay the principal of and interest on the Bonds or the Certificates. Furthermore, the City is eligible to seek relief from its creditors under Chapter 9 of the U.S. Bankruptcy Code ( "Chapter 9 "). Although Chapter 9 provides for the recognition of a security interest represented by a specifically pledged source of revenues, the pledge of ad valorem taxes in support of a general obligation of a bankrupt entity is not specifically recognized as a security interest under Chapter 9. Chapter 9 also includes an automatic stay provision that would prohibit, without Bankruptcy Court approval, the prosecution of any other legal action by creditors or Obligationholders of an entity which has sought protection under Chapter 9. Therefore, should the City avail itself of Chapter 9 protection from creditors, the ability to enforce would be subject to the approval of the Bankruptcy Court (which could require that the action be heard in Bankruptcy Court instead of other federal or state court); and the Bankruptcy Code provides for broad discretionary powers of a Bankruptcy Court in administering any proceeding brought before it. The opinions of Bond Counsel will note that all opinions relative to the enforceability of the Obligations are qualified with respect to the customary rights of debtors relative to their creditors, by principles of governmental immunity, and by general principles of equity which permit the exercise of judicial discretion. Initially, the only Registered Owner of the Bonds and Certificates will be Cede & Co., as DTC's nominee. See "The Obligations - Book - Entry -Only System" herein for a description of the duties of DTC with regard to ownership of the Bonds and Certificates. THE REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY 15 Exhibit 1 TAX INFORMATION An VALOREM TAx LAW ... The appraisal of property within the City is the responsibility of the Denton Central Appraisal District (the "Appraisal District "). Excluding agricultural and open -space land, which may be taxed on the basis of productive capacity, the Appraisal District is required under V.T.C.A., Title I, Tax Code, as amended (the "Property Tax Code ") to appraise all property within the Appraisal District on the basis of 100% of its market value and is prohibited from applying any assessment ratios. In determining the market value of property, different methods of appraisal may be used, including the cost method of appraisal, the income method of appraisal and the market data comparison method of appraisal, and the method considered most appropriate by the chief appraiser is to be used. State law requires the appraised value of a residence homestead to be based solely on the property's value as a residence homestead, regardless of whether residential use is considered to be the highest and best use of the property. State law further limits the appraised value of a residence homestead for a tax year to an amount that would not exceed the lesser of (1) the market value of the property for the most recent tax year that the market value was determined by the appraisal office or (2) the sum of (a) 10% of the property's appraised value in the preceding tax year, plus (b) the property's appraised value in the preceding tax year, plus (c) the market value of all new improvements to the property. The value placed upon property within the Appraisal District is subject to review by an Appraisal Review Board, consisting of members appointed by the Board of Directors of the Appraisal District. The Appraisal District is required to review the value of property within the Appraisal District at least every three years. The City may require annual review at its own expense, and is entitled to challenge the determination of appraised value of property within the City by petition filed with the Appraisal Review Board. Reference is made to the Property Tax Code, for identification of property subject to taxation; property exempt or which may be exempted from taxation, if claimed; the appraisal of property for ad valorem taxation purposes; and the procedures and limitations applicable to the levy and collection of ad valorem taxes. Article VIII of the State Constitution ( "Article VIII") and State law provide for certain exemptions from property taxes, the valuation of agricultural and open -space lands at productivity value, and the exemption of certain personal property from ad valorem taxation. Under Section 1 -b, Article VIII, and State law, the governing body of a political subdivision, at its option, may grant an exemption of not less than $3,000 of the market value of the residence homestead of persons 65 years of age or older and the disabled from all ad valorem taxes thereafter levied by the political subdivision. Once authorized, such exemption may be repealed or decreased or increased in amount (i) by the governing body of the political subdivision or (ii) by a favorable vote of a majority of the qualified voters at an election called by the governing body of the political subdivision, which election must be called upon receipt of a petition signed by at least 20% of the number of qualified voters who voted in the preceding election of the political subdivision. In the case of a decrease, the amount of the exemption may not be reduced to less than $3,000 of the market value. The surviving spouse of an individual who qualifies for the foregoing exemption for the residence homestead of a person 65 or older (but not the disabled) is entitled to an exemption for the same property in an amount equal to that of the exemption for which the deceased spouse qualified if (i) the deceased spouse died in a year in which the deceased spouse qualified for the exemption, (ii) the surviving spouse was at least 55 years of age at the time of the death of the individual's spouse and (iii) the property was the residence homestead of the surviving spouse when the deceased spouse died and remains the residence homestead of the surviving spouse. In addition to any other exemptions provided by the Property Tax Code, the governing body of a political subdivision, at its option, may grant an exemption of up to 20% of the market value of residence homesteads, with a minimum exemption of $5,000. In the case of residence homestead exemptions granted under Section 1 -b, Article VIII, ad valorem taxes may continue to be levied against the value of homesteads exempted where ad valorem taxes have previously been pledged for the payment of debt if cessation of the levy would impair the obligation of the contract by which the debt was created. Under Article VIII and State law, the governing body of a county, municipality or junior college district may provide for a freeze on total amount of ad valorem taxes levied on the residence homestead of a disabled person or persons 65 years of age or older above the amount of tax imposed in the year such residence qualified for such exemption. Also, upon receipt of a petition signed by five percent of the registered voters of the county, municipality or junior college district, an election must be held to determine by majority vote whether to establish such a limitation on taxes paid on residence homesteads of persons 65 years of age or who are disabled. Upon providing for such exemption, the total amount of taxes imposed on such homestead cannot be increased except for improvements (other than maintenance, repairs or improvements required to comply with governmental requirements) and such freeze is transferable to a different residence homestead. Also, a surviving spouse of a taxpayer who qualifies for the freeze on ad valorem taxes is entitled to the same exemption so long as the property was the residence homestead of the surviving spouse when the deceased spouse died and remains the residence homestead of the surviving spouse and the spouse was at least 55 years of age at the time of the death of the individual's spouse. Once established such freeze cannot be repealed or rescinded. 16 Exhibit 1 State law and Section 2, Article VIII, mandate an additional property tax exemption for disabled veterans or the surviving spouse or children of a deceased veteran who died while on active duty in the armed forces; the exemption applies to either real or personal property with the amount of assessed valuation exempted ranging from $5,000 to a maximum of $12,000, dependent upon the degree of disability or whether the exemption is applicable to a surviving spouse or children; provided, however, that beginning in the 2009 tax year, a disabled veteran who receives from the United States Department of Veterans Affairs or its successor 100 percent disability compensation due to a service- connected disability and a rating of 100 percent disabled or of individual unemployability is entitled to an exemption from taxation of the total appraised value of the veteran's residence homestead. In addition, effective January 1, 2012, and subject to certain conditions, surviving spouses of a deceased veteran who had received a disability rating of 100% will be entitled to receive a residential homestead exemption equal to the exemption received by the deceased spouse until such surviving spouse remarries. Article VIII provides that eligible owners of both agricultural land (Section 1 -d) and open -space land (Section 1 -d -1), including open -space land devoted to farm or ranch purposes or open -space land devoted to timber production, may elect to have such property appraised for property taxation on the basis of its productive capacity. The same land may not be qualified under both Section 1 -d and 1 -d -1. Nonbusiness personal property, such as automobiles or light trucks, are exempt from ad valorem taxation unless the governing body of a political subdivision elects to tax this property. Boats owned as nonbusiness property are exempt from ad valorem taxation. Article VIII, Section 1 -j, provides for "freeport property" to be exempted from ad valorem taxation. Freeport property is defined as goods detained in Texas for 175 days or less for the purpose of assembly, storage, manufacturing, processing or fabrication. Notwithstanding such exemption, counties, school districts, junior college districts and cities may tax such tangible personal property provided official action to tax the same was taken before April 1, 1990. Decisions to continue to tax may be reversed in the future; decisions to exempt freeport property are not subject to reversal. Article VIII, Section 1 -n of the Texas Constitution provides for the exemption from taxation of "goods -in- transit." "Goods -in- transit" is defined by Section 11.253 of the Property Tax Code, which is effective for tax years 2008 and thereafter, as personal property acquired or imported into Texas and transported to another location in the State or outside of the State within 175 days of the date the property was acquired or imported into Texas. The exemption excludes oil, natural gas, petroleum products, aircraft and special inventory, including motor vehicle, vessel and out -board motor, heavy equipment and manufactured housing inventory. Section 11.253 permits local governmental entities, on a local option basis, to take official action by January 1 of the year preceding a tax year, after holding a public hearing, to tax "goods -in- transit" during the following tax year. A taxpayer may only receive either the freeport exemption or the "goods -in- transit" exemption for items of personal property. The City or Denton County may create one or more tax increment financing districts ( "TIF ") within the City or Denton County, as applicable, and freeze the taxable values of property in the TIF at the value at the time of its creation. Other overlapping taxing units levying taxes in the TIF may agree to contribute all or part of future ad valorem taxes levied and collected against the value of property in the TIF in excess of the "frozen values" to pay or finance the costs of certain public improvements in the TIF. Taxes levied by the City against the values of real property in the TIF in excess of the "frozen" value are not available for general city use but are restricted to paying or financing "project costs" within the TIF. The City also may enter into tax abatement agreements to encourage economic development. Under the agreements, a property owner agrees to construct certain improvements on its property. The City in turn agrees not to levy a tax on all or part of the increased value attributable to the improvements until the expiration of the agreement. The abatement agreement could last for a period of up to 10 years. The City has active reinvestment zones for tax abatements and two tax increment financing zones for tax increment financing purposes. See "Tax Information - Tax Abatement Policy" and "- Tax Increment Financing" and "Table 1 - Valuation, Exemptions and General Obligation Debt ". The City is also authorized, pursuant to Chapter 380, Texas Local Government Code, as amended ( "Chapter 380 "), to establish programs to promote state or local economic development and to stimulate business and commercial activity in the City. In accordance with a program established pursuant to Chapter 380, the City may make loans or grants of public funds for economic development purposes, however no obligations secured by ad valorem taxes may be issued for such purposes unless approved by voters of the City. The City has entered into several Chapter 380 Agreements. See "Tax Information - Chapter 380 Agreements ". EFFECTIVE TAx RATE AND ROLLBACK TAx RATE ... Under the current Property Tax Code a governing body of a taxing unit is required to adopt its annual tax rate per $100 taxable value for the unit before the later of September 30 or the 60th day after the date the certified appraisal roll is received by the taxing unit, and a failure to adopt a tax rate by such required date will result in the tax rate for the taxing unit for the tax year to be the lower of the effective tax rate calculated for that tax year or the tax rate adopted by the taxing unit for the preceding tax year. By each September 1 or as soon thereafter as practicable, the City Council adopts a tax rate per $100 taxable value for the current year. The tax rate consists of two components: (1) a rate for funding of maintenance and operation expenditures, and (2) a rate for debt service. Under the Property Tax Code, the City must annually calculate and publicize its "effective tax rate" and "rollback tax rate ". The City Council may not adopt a tax rate that exceeds the lower of the effective tax rate or the rollback tax rate until it has held two public hearings on the proposed increase following notice to the taxpayers and otherwise complied with the Property Tax Code. If the adopted tax rate exceeds the rollback tax rate the qualified voters of the City by petition may require that an election be held to determine whether or not to reduce the tax rate adopted for the current year to the rollback tax rate. 17 Exhibit 1 "Effective tax rate" means the rate that will produce last year's total tax levy (adjusted) from this year's total taxable values (adjusted). "Adjusted" means lost values are not included in the calculation of last year's taxes and new values are not included in this year's taxable values. "Rollback tax rate" means the rate that will produce last year's maintenance and operation tax levy (adjusted) from this year's values (adjusted) multiplied by 1.08 plus a rate that will produce this year's debt service from this year's values (unadjusted) divided by the anticipated tax collection rate. The Property Tax Code provides that certain cities and counties in the State may submit a proposition to the voters to authorize an additional one -half cent sales tax on retail sales of taxable items. If the additional tax is levied, the effective tax rate and the rollback tax rate calculations are required to be offset by the revenue that will be generated by the sales tax in the current year. Reference is made to the Property Tax Code for definitive requirements for the levy and collection of ad valorem taxes and the calculation of the various defined tax rates. PROPERTY ASSESSMENT AND TAX PAYMENT ... Property within the City is generally assessed as of January I of each year. Business inventory may, at the option of the taxpayer, be assessed as of September 1. Oil and gas reserves are assessed on the basis of a valuation process which uses an average of the daily price of oil and gas for the prior year. Taxes become due October 1 of the same year, and become delinquent on February 1 of the following year. Taxpayers 65 years old or older are permitted by State law to pay taxes on homesteads in four installments with the first due on February 1 of each year and the final installment due on August 1. PENALTIES AND INTEREST ... Charges for penalty and interest on the unpaid balance of delinquent taxes are made as follows: After July, the penalty remains at 12 %, and interest accrues at a rate of one percent (1 %) for each month or portion of a month the tax remains unpaid. A delinquent tax continues to incur the penalty interest as long as the tax remains unpaid, regardless of whether a judgment for the delinquent tax has been rendered. The purpose of imposing such interest is to compensate the taxing unit for revenue lost because of the delinquency. In addition, if an account is delinquent in July, an attorney's collection fee of up to 20% may be added to the total tax penalty and interest charge. Under certain circumstances, taxes which become delinquent on the homestead of a taxpayer 65 years old or older incur a penalty of 8% per annum with no additional penalties or interest assessed. In general, property subject to the City's lien may be sold, in whole or in parcels, pursuant to court order to collect the amounts due. Federal law does not allow for the collection of penalty and interest against an estate in bankruptcy. Federal bankruptcy law provides that an automatic stay of action by creditors and other entities, including governmental units, goes into effect with the filing of any petition in bankruptcy. The automatic stay prevents governmental units from foreclosing on property and prevents liens for post - petition taxes from attaching to property and obtaining secured creditor status unless, in either case, an order lifting the stay is obtained from the bankruptcy court. In many cases post - petition taxes are paid as an administrative expense of the estate in bankruptcy or by order of the bankruptcy court. CITY APPLICATION OF TAX CODE ... The City grants an exemption to the market value of the residence homestead of persons 65 years of age or older of $50,000. Disabled taxpayers also receive a $10,000 exemption. The City grants an additional one -half of one percent, or a minimum of $5,000 exemption of the market value of residence homesteads. See Table 1 for a listing of the amounts of the exemptions described above. Ad valorem taxes are not levied by the City against the exempt value of residence homesteads for the payment of debt. The City does not tax nonbusiness personal property. Denton County began collecting taxes for the City during the fiscal year 2006 -07. The City does not allow split payments, and discounts are not allowed. The City does not tax freeport property. 18 Cumulative Cumulative Month Penalty Interest Total February 6% 1% 7% March 7 2 9 April 8 3 11 May 9 4 13 June 10 5 15 July 12 6 18 After July, the penalty remains at 12 %, and interest accrues at a rate of one percent (1 %) for each month or portion of a month the tax remains unpaid. A delinquent tax continues to incur the penalty interest as long as the tax remains unpaid, regardless of whether a judgment for the delinquent tax has been rendered. The purpose of imposing such interest is to compensate the taxing unit for revenue lost because of the delinquency. In addition, if an account is delinquent in July, an attorney's collection fee of up to 20% may be added to the total tax penalty and interest charge. Under certain circumstances, taxes which become delinquent on the homestead of a taxpayer 65 years old or older incur a penalty of 8% per annum with no additional penalties or interest assessed. In general, property subject to the City's lien may be sold, in whole or in parcels, pursuant to court order to collect the amounts due. Federal law does not allow for the collection of penalty and interest against an estate in bankruptcy. Federal bankruptcy law provides that an automatic stay of action by creditors and other entities, including governmental units, goes into effect with the filing of any petition in bankruptcy. The automatic stay prevents governmental units from foreclosing on property and prevents liens for post - petition taxes from attaching to property and obtaining secured creditor status unless, in either case, an order lifting the stay is obtained from the bankruptcy court. In many cases post - petition taxes are paid as an administrative expense of the estate in bankruptcy or by order of the bankruptcy court. CITY APPLICATION OF TAX CODE ... The City grants an exemption to the market value of the residence homestead of persons 65 years of age or older of $50,000. Disabled taxpayers also receive a $10,000 exemption. The City grants an additional one -half of one percent, or a minimum of $5,000 exemption of the market value of residence homesteads. See Table 1 for a listing of the amounts of the exemptions described above. Ad valorem taxes are not levied by the City against the exempt value of residence homesteads for the payment of debt. The City does not tax nonbusiness personal property. Denton County began collecting taxes for the City during the fiscal year 2006 -07. The City does not allow split payments, and discounts are not allowed. The City does not tax freeport property. 18 Exhibit 1 The City collects the additional one -half cent sales tax for reduction of ad valorem taxes. The City does tax "goods -in- transit ". The City has not adopted the tax freeze for citizens who are disabled or are 65 years of age or older The City has adopted a tax abatement policy. The City participates in two tax increment reinvestment zones, which were created in 2010 and 2012 TAX INCREMENT FINANCING ... The City created Tax Increment Reinvestment Zone Number One (known as the Downtown TIF) in 2010. The 2013 incremental taxable assessed valuation for the Downtown TIF was $16,931,096 and resulted in approximately $116,782 in projected ad valorem revenue, which is reported in the City's Downtown Tax Increment Reinvestment Zone Fund for the FY 2013 -14 Adopted Budget. The TIF will expire in 2039 and reflects only the City's participation of: 100% for years 1 -5; 95% for years 6 -10; 90% for years 11 -20; and 85% for years 21 -30. The City created Tax Increment Reinvestment Zone Number Two (known as the Westpark TIRZ) in 2012 to provide the public infrastructure necessary to encourage development in the largest industrially zoned area ( Westpark) in the City. The 2012 certified base value of Westpark TIRZ, according to the Denton Central Appraisal District, is $119,458. For 2013 taxable value was $116,277 which is below the 2012 base value and as such, no revenues are projected to be reported in the City's Westpark Tax Increment Reinvestment Zone Fund. However, the estimated revenue to be generated by the TIRZ over 25 years is approximately $14.3 million for infrastructure improvements. The City will contribute $10.1 million and Denton County will contribute $4.2 million into the Westpark TIRZ Fund. TAX ABATEMENT POLICY ... The City has adopted a tax abatement policy. In 1990, the City council adopted a resolution setting guidelines and criteria for granting abatements in reinvestment zones created within the City. These guidelines specifically note that incentives are limited to companies which create new wealth and do not adversely affect existing businesses operating within the City. The City Council approved the following tax abatement agreements: • In 2007, a 100% tax abatement for a term of up to seven years was granted to Aldi Foods for their 500,000 square foot $52 million distribution center. The abatement amount is based on the cost incurred by Aldi to construct a road to their site. The project was completed in 2009 and the agreement will terminate in 2016. • In 2010, a 65% tax abatement agreement for a term of five years was granted to Target Corporation for its 400,000 square foot frozen and refrigerated food distribution center. Target opened in March 2013 and employs 115 to 150 area residents. The agreement will terminate in 2017. • In 2011, a 40% tax abatement agreement for a term of five years was granted to Peerless Manufacturing for its 80,OOOsquare foot, $16 million manufacturing facility. Peerless is an existing Denton business that consolidated other manufacturing operations to Denton. The agreement will terminate five years from the opening of the facility. They completed construction of an 80,000 square foot manufacturing facility in October 2013. • In 2013, a 65% tax abatement agreement for a term of four years was granted to Tetra Pak Materials LP for expanding their facility and relocating their corporate headquarters operations from Chicago to Denton. The company manufactures, processes, packages and distributes liquid foods all over the globe. The current facility comprises approximately 220,000 square feet. The increase in real and business personal property valuation of the proposed project expansion is estimated at $10.7 million. Tetra Pak Materials expects to create a total of thirty new jobs with this expansion. CHAPTER 380 AGREEMENTS ... The City has also entered into several Chapter 380 agreements. Each agreement is based on the project's contribution in either sales or property tax revenue. The City Council has approved the following Chapter 380 agreements: • In 2001, an agreement was approved for the 450,000 square foot, $50 million Denton Crossing retail center. The grantee receives one -third of the City sales tax generated by the project for a maximum of fifteen years as reimbursement for public improvement costs related to the project. The project was completed and the Chapter 380 Grant was initiated in 2005. The agreement will terminate in 2019. • In 2003, an agreement was approved for Sally Beauty Company for their new international headquarters valued at over $29 million. The company receives a grant equal to 40% of the property tax paid on the new facility and equipment for a period of ten years. The agreement will terminate in 2014. • In 2004, an agreement was approved for Teasley Partners for an urban style mixed -use development. The grantee may receive one -third of the City sales tax generated by the project for a maximum of fifteen years as reimbursement for public improvement costs related to the project. The project has not been completed. Although a new hotel and some residential units have been completed, no qualifying retail has been constructed. • In 2004, an agreement was approved for Unicorn Lake, an urban style mixed -use development. The grantee will receive one -third of the City sales tax generated by the project for a maximum of fifteen years as reimbursement for public improvement costs related to the project. Although the project is still under development, the grantee has 19 Exhibit 1 satisfied the thresholds established in the agreement. The grant payments were initiated in December 2009. The agreement will terminate in 2024. • In 2007, an agreement was approved for Allegiance Hillview for the Rayzor Ranch mixed -use development. The 410 acre project will have over one million square feet of retail and will be built in two phases. The agreement provides a sales tax reimbursement for public improvement costs, which include the widening of a state highway that bisects the project. The grantee will receive a maximum of $20 million over a 15 year term for phase one and a maximum of $42 million over a term of 20 years for phase two. Approximately 490,000 square feet of retail in phase one has been completed, which includes Sam's and Wal -Mart that opened in Fall 2010 and a Kohl's Department Store which opened in Spring 2013. Some of the new stores in the development include: Famous Footwear, Five Below Jo -Ann's Fabric, Petco, and Panera Bread. Preliminary plans for the 600,000 square foot Rayzor Ranch Town Center have been submitted and anchors for the south side of the development are expected to be in operation by 2015. • In 2008, an agreement was approved for the expansion of a jewelry manufacturing plant operated by Josten's, a manufacturer of high school and college class rings. The grant is based on 75% of the new property tax revenue generated by the expansion for a term of seven years. The project was completed and the agreement will terminate in 2015. • In 2010, an agreement was approved for Grand Mesa, contractor for Schlumberger, equal to 50% of new property tax revenue generated for their 150,000 square foot regional maintenance facility. The agreement was assigned to Schlumberger Technology Corporation in 2012. Agreement thresholds require maintaining $5 million in real property improvements and business personal property valuation and the creation of 80 jobs with average wage of $45,000. The term of the agreement is seven years and will terminate in 2017. • In 2011, an agreement was approved for a major renovation of the Golden Triangle Mall. A threshold of a minimum $45 million must be invested into the property for the new owners to receive a 50% share of the sales tax resulting from the renovations. The agreement allows Golden Triangle Mall until October 1, 2014 to reach their investment threshold. The term of the agreement will terminate in 20 years. The first phase of the renovations was completed in late 2012 and includes: the installation of energy efficient lighting, a new Center Court, Wi -fi, interior landscaping and updated finishes. Exterior entrance updates, a new food court, pylon sign and way finding have been constructed as part of the second phase of the redevelopment. • In 2011, an agreement was approved for Labinal Inc., part of the Safran Group. The company is a world leader in electrical wiring harness and integration systems for the aviation, space and defense markets. In August 2012, Labinal relocated and expanded its North American Wiring and Services Division headquarters, one of four wiring harness and integration system manufacturing sites and over 700 employees to the former Russell Newman facility in Denton. The company received a 50 %, three -year tax rebate on increased valuation of at least $5 million at the Denton facility. • In 2012, an agreement was approved for Mayday Manufacturing /Tailwind Technologies. The company manufactures precision bushings, sleeves, pins, and other machine parts used in the aerospace industry. Mayday subsidiary, High Tech Metal Refinishing is co- located with Mayday and provides metal finishing processes for Mayday products and for additional customers. The company purchased an 80,000 square foot facility in 2012 and held a groundbreaking at the new site location in February 2013 that included a 15,000 square foot expansion. The company received a 75 %, ten -year tax rebate on increased valuation of at least $3 million over the base value. The company will move from leased space in Denton into the new facility by fall 2014. ANNEXATION PLANS ... In accordance with Non - Annexation Agreements (NAAs) associated with the City's 2010 annexation proceedings, the City will consider in the next 12 months to extend the NAAs or annex 229 properties representing approximately 4,731 acres. The financial impact to the City is not considered to be material since some of these NAAs may be extended. 20 Exhibit 1 TABLE 1 - VALUATION, EXEMPTIONS AND GENERAL OBLIGATION DEBT 2013/14 Market Valuation Established by Denton Central Appraisal District $7,962,652,760 Less Exemptions/Reductions at 100% Market Value Residence Homestead Exemptions $ 83,466,451 Over 65 Exemptions 277,098,487 Disabled Persons Exemptions 2,433,553 Disabled Veterans Exemptions 26,207,294 Agricultural Land Use Productivity 265,534,556 Historical /Other Exemptions 3,518,873 Freeport Exemptions 204,356,249 Abatement Exemptions 82,762,254 Pollution Exemptions 30,774,681 Community Housing Development Exemptions 472 Homestead Cap Adjustment 7,275,616 983,428,486 2013/14 Taxable Assessed Valuation (as of 7- 26 -13) $ 6,979,224,274 2013 /14 Incremental Taxable Assessed Value of Real Property within Reinvestment Zone (16,931,096) 2013/14 Taxable Assessed Valuation available for General Obligations and Debt of City (as of 7- 26 -13) $ 6,962,293,178 City Funded Debt Payable from Ad Valorem Taxes (i) General Obligation Bonds (as of 3 -1 -14) $ 123,020,000 (2) Certificates of Obligation (as of 3 -1 -14) 195,940,000 Tax and Utility System Revenue Refunding Bonds (as of 3 -1 -14) 47,090,000 The Certificates 86,015,000 (3) The Bonds 7,370,000 (3) Funded Debt Payable from Ad Valorem Taxes $ 459,435,000 Less Self- Supporting General Obligation Debt (4) Solid Waste System General Obligation Debt $ 34,957,885 (s)(b) Utility System General Obligation Debt 301,060,000 (e) 336,017,885 Net Tax Supported Debt Payable from Ad Valorem Taxes $ 123,417,115 Interest and Sinking Fund as of 1 -31 -14 (unaudited) $ 36,836,612 Ratio Total Funded Debt to Taxable Assessed Valuation ............................ ............................... 6.60% Ratio Net Funded Debt to Taxable Assessed Valuation ............................. ............................... 1.77% 2014 Estimated Population - 119,158 Per Capita Taxable Assessed Valuation - $58,571 Per Capita Total Funded Debt - $3,856 Per Capita Net Funded Debt - $1,036 (1) The above statement of indebtedness does not include $130,965,000 Utility System Revenue Bonds as these bonds are payable solely from the net revenues of the Utility System (the "System "), as defined in the ordinances authorizing such bonds. (2) Excludes the Refunded Obligations. Preliminary, subject to change. (3) Preliminary, subject to change. (4) As a matter of policy, the City provides payment of debt service on its general obligation debt issued to fund improvements to its Utility System and Solid Waste System from surplus revenues of these Systems (see "Table 7 — General Obligation Debt Service Requirements" and "Table 9 — Computation of Self- Supporting Debt "). This policy is subject to change in the future. In the event the City changes it policy, or such revenues are not sufficient to pay debt service on such obligations, the City will be required to levy an ad valorem tax to pay such debt service. The City's Utility System is comprised of the City's entire existing electric, light and power system and the waterworks and sewer system. The City's Utility System General Obligation Debt has been issued to finance improvements to finance or refinance Utility System improvements and contractual obligations and is paid, or is expected to be paid, from Utility System revenues. The City has $130,965,000 Utility System Revenue Bonds outstanding payable from a pledge of Utility System revenues. The City's Solid Waste System General Obligation Debt has been issued to finance or refinance Solid Waste System improvements and is paid, or is expected to be paid, from Solid Waste System revenues. The City has no outstanding Solid Waste System Revenue Bonds. (5) Includes aportion of the Bonds. Preliminary, subject to change. (6) Includes aportion of the Certificates. Preliminary, subject to change. 21 Exhibit 1 TABLE 2 - TAXABLE ASSESSED VALUATIONS BY CATEGORY (t) (1) Valuations shown are certified taxable assessed values reported by the Denton Central Appraisal District to the State Comptroller of Public Accounts. Certified values are subject to change throughout the year as contested values are resolved and the Appraisal District updates records. For the Fiscal Year ended 2014, the values were reported on July 26, 2013 based on information as of January 1, 2013. (2) Includes tax incremental value of approximately $16,931,096 that is not available for the City's general obligations and debt of City. (3) Includes tax incremental value of approximately $10,248,781 that is not available for the City's general obligations and debt of City. (4) Includes tax incremental value of approximately $2,300,954 that is not available for the City's general obligations and debt of City. 22 Taxable Appraised Value for Fiscal Year Ended September 30, 2014 2013 2012 %of %of %of Category Amount Total Amount Total Amount Total Real, Residential, Single Family $ 3,720,193,268 46.72% $ 3,633,577,302 47.68% $ 3,610,010,439 49.78% Real, Residential, Multi- Family 924,229,117 11.61% 816,319,292 10.71% 689,687,370 9.51% Real, VacantLots /Tracts 150,027,306 1.88% 125,343,528 1.64% 140,758,151 1.94% Real, Acreage (Land Only) 274,941,322 3.45% 338,412,791 4.44% 366,276,930 5.05% Real, Farm and Ranch Improvements 80,481,975 1.01% 37,671,587 0.49% 37,791,667 0.52% Real, Commercial and Industrial 1,621,678,792 20.37% 1,520,034,393 19.94% 1,449,703,794 19.99% Real, Oil, Gas, and Other Mineral Reserves 78,106,929 0.98% 107,460,964 1.41% 86,195,936 1.19% Real and Tangible Personal, Utilities 91,097,444 1.14% 90,748,500 1.19% 87,973,672 1.21% Tangible Personal, Commercial and Industrial 943,996,533 11.86% 884,681,448 11.61% 714,263,695 9.85% Tangible Personal, Other 15,167,604 0.19% 16,249,794 0.21% 14,868,334 0.21% Real and Special Property, Inventory 62,732,470 0.79% 50,894,577 0.67% 54,969,631 0.76% Total Appraised Value Before Exemptions $ 7,962,652,760 100.00% $ 7,621,394,176 100.00% $ 7,252,499,619 100.00% Less: Total Exemptions/Reductions (983,428,486) (904,682,808) (840,124,615) Taxable Assessed Value $6,979,224,274 $6,716,711,368 �'� $6,412,375,004 Taxable Appraised Value for Fiscal Year Ended September 30, 2011 2010 % of % of Category Amount Total Amount Total Real, Residential, Single Family $3,545,009,743 50.46% $3,475,374,687 48.95% Real, Residential, Multi- Family 661,530,441 9.42% 688,298,068 9.70% Real, Vacant Lots /Tracts 149,930,858 2.13% 162,282,464 2.29% Real, Acreage (Land Only) 352,636,983 5.02% 356,896,058 5.03% Real, Farm and Ranch Improvements 32,148,788 0.46% 33,242,494 0.47% Real, Commercial and Industrial 1,381,432,997 19.66% 1,392,817,179 19.62% Real, Oil, Gas, and Other Mineral Reserves 116,459,175 1.66% 68,616,710 0.97% Real and Tangible Personal, Utilities 66,756,673 0.95% 79,577,104 1.12% Tangible Personal, Commercial and Industrial 651,961,490 9.28% 749,892,931 10.56% Tangible Personal, Other 16,634,472 0.24% 17,779,752 0.25% Real Property, Inventory 51,489,918 0.73% 74,454,431 1.05% Total Appraised Value Before Exemptions $ 7,025,991,538 100.00% $ 7,099,231,878 100.00% Less: Total Exemptions/Reductions (795,873,580) (771,322,856) Taxable Assessed Value $ 6,230,117,958 $ 6,327,909,022 (1) Valuations shown are certified taxable assessed values reported by the Denton Central Appraisal District to the State Comptroller of Public Accounts. Certified values are subject to change throughout the year as contested values are resolved and the Appraisal District updates records. For the Fiscal Year ended 2014, the values were reported on July 26, 2013 based on information as of January 1, 2013. (2) Includes tax incremental value of approximately $16,931,096 that is not available for the City's general obligations and debt of City. (3) Includes tax incremental value of approximately $10,248,781 that is not available for the City's general obligations and debt of City. (4) Includes tax incremental value of approximately $2,300,954 that is not available for the City's general obligations and debt of City. 22 Exhibit 1 TABLE 3 - VALUATION AND GENERAL OBLIGATION DEBT HISTORY (1) Source: City Officials. (2) Source: US Census. (3) Valuations shown are certified taxable assessed values reported by the Denton Central Appraisal District to the State Comptroller of Public Accounts. Certified values are subject to change throughout the year as contested values are resolved and the Appraisal District updates records. Source: Denton Central Appraisal District as of July 26, 2013. (4) Includes tax incremental value of approximately $2,300,954 that is not available for the City's general obligations and debt of City. (5) Includes tax incremental value of approximately $10,248,781 that is not available for the City's general obligations and debt of City. (6) Includes tax incremental value of approximately $16,931,096 that is not available for the City's general obligations and debt of City. (7) Excludes self- supported general obligation debt. See Tables 1 and 9 herein for more detailed information on the City's general obligation self- supporting debt. The City's policy to pay such self- supporting general obligation debt from other revenues is subject to change in the future at the City's discretion, although the City has no current plans to do so. In the event the City changes it policy, or such revenues are not sufficient to pay debt service on such obligations, the City will be required to levy an ad valorem tax to pay such debt service. (8) Projected, includes aportion of the Obligations. Excludes the Refunded Obligations. Preliminary, subject to change. TABLE 4 - TAX RATE, LEVY AND COLLECTION HISTORY Fiscal % of Total Taxable Taxable Net Ratio Net Net Fiscal $87,651,589 Distribution Taxable Tax Debt Tax Debt Funded Tax Year General Taxable Assessed Outstanding to Taxable Debt Ended Estimated Assessed Valuation at End Assessed Per 9/30 Population Valuation (3) Per Capita of Year (7) Valuation Capita 2010 113,383(2) $ 6,327,909,022 $ 55,810 $ 119,862,600 1.89% $1,057 2011 114,5170) 6,230,117,958 54,403 116,165,650 1.86% 1,014 2012 115,662(1) 6,412,375,004 (4) 55,441 113,939,700 1.78% 985 2013 117,3970) 6,716,711,368 (5) 57,214 120,375,588 1.79% 1,025 2014(s) 119,158(1) 6,979,224,274 58,571 123,417,115 (s) 1.77% 1,036 (1) Source: City Officials. (2) Source: US Census. (3) Valuations shown are certified taxable assessed values reported by the Denton Central Appraisal District to the State Comptroller of Public Accounts. Certified values are subject to change throughout the year as contested values are resolved and the Appraisal District updates records. Source: Denton Central Appraisal District as of July 26, 2013. (4) Includes tax incremental value of approximately $2,300,954 that is not available for the City's general obligations and debt of City. (5) Includes tax incremental value of approximately $10,248,781 that is not available for the City's general obligations and debt of City. (6) Includes tax incremental value of approximately $16,931,096 that is not available for the City's general obligations and debt of City. (7) Excludes self- supported general obligation debt. See Tables 1 and 9 herein for more detailed information on the City's general obligation self- supporting debt. The City's policy to pay such self- supporting general obligation debt from other revenues is subject to change in the future at the City's discretion, although the City has no current plans to do so. In the event the City changes it policy, or such revenues are not sufficient to pay debt service on such obligations, the City will be required to levy an ad valorem tax to pay such debt service. (8) Projected, includes aportion of the Obligations. Excludes the Refunded Obligations. Preliminary, subject to change. TABLE 4 - TAX RATE, LEVY AND COLLECTION HISTORY Fiscal % of Total Taxable Taxable Assessed Assessed Valuation Year $87,651,589 Distribution 82,293,895 1.18% 48,794,775 Ended Tax General Interest and 0.45% % Current % Total 9/30 Rate Fund Sinking Fund Tax Levy (1) Collections Collections 2010 $ 0.66652 $ 0.44765 $ 0.21887 $ 42,937,136 98.86% 99.66% 2011 0.68975 0.47088 0.21887 43,865,533 99.05% 99.67% 2012 0.68975 0.47088 0.21887 44,829,398 99.18% 99.61% 2013 0.68975 0.47088 0.21887 46,695,495 99.30% 99.30% 2014 0.68975 0.47480 0.21495 48,139,199 97.63% (2) 97.63% (2) (1) Tax levy for the 2014 year is based on the Certified Value. Prior years represent adjusted values that include all supplements through September 30, 2013 and include tax incremental values. (2) Collections for part year only, through March 1, 2014. TABLE 5 - TEN LARGEST TAXPAYERS Name of Taxpayer Paccar Inc. Columbia Medical Center of Denton Inland Western Denton Crossing Ltd PS Cypress Denton Station LTD Flowers Baking Co. of Denton LLC Verizon Southwest HRA University Courtyard LLC Sterling -N TX LP GEL Timberlinks LLCD Anderson Merchandisers Source: Denton Central Appraisal District. Nature of Property Diesel Truck Manufacturing Hospital/Professional Building Real Estate Development Residential Multifamily Bakery Telephone Utility Apartments Real Estate Development Residential Multifamily Distribution Center 23 2013/14 % of Total Taxable Taxable Assessed Assessed Valuation Valuation $87,651,589 1.26% 82,293,895 1.18% 48,794,775 0.70% 37,841,264 0.54% 31,563,925 0.45% 28,717,740 0.41% 28,000,000 0.40% 27,371,796 0.39% 26,000,000 0.37% 24,987,385 0.36% $423,222,369 6.06% Exhibit 1 GENERAL OBLIGATION DEBT LIMITATION ... No general obligation debt limitation is imposed on the City under current State law or the City's Home Rule Charter (see "The Obligations — Tax Rate Limitation" for a description of the limitations on ad valorem tax rates). TABLE 6 - ESTIMATED OVERLAPPING TAX DEBT Expenditures of the various taxing entities within the territory of the City are paid out of ad valorem taxes levied by such entities on properties within the City. Such entities are independent of the City and may incur borrowings to finance their expenditures. This statement of direct and estimated overlapping ad valorem tax debt ( "Tax Debt ") was developed from information contained in "Texas Municipal Reports" published by the Municipal Advisory Council of Texas. Except for the amounts relating to the City, the City has not independently verified the accuracy or completeness of such information, and no person should rely upon such information as being accurate or complete. Furthermore, certain entities listed may have issued additional Tax Debt since the date hereof, and such entities may have programs requiring the issuance of substantial amounts of additional Tax Debt, the amount of which cannot be determined. The following table reflects the estimated share of overlapping Tax Debt of the City. Total Direct and Overlapping Funded Debt Ratio of Direct and Overlapping Funded Debt to Taxable Assessed Valuation $ 604,289,256 8.66% Per Capita Overlapping Funded Debt .............................................................. ............................... $ 5,224.61 (1) Includes tax incremental value of approximately $16,931,096 that is not available for the City's general obligations and debt of City. (2) Includes a portion of the Obligations, less the Refunded Obligations and self - supporting debt. See Tables 1 and 9 herein for more detailed information on the City's general obligation self - supporting debt. Preliminary, subject to change. (3) Reflects remaining authorization after the issuance of the Bonds. 24 2013/14 City's Authorized Taxable 2013/14 Total Estimated Overlapping But Unissued Assessed Tax Funded % Funded Debt Debt As Of Taxing Jurisdiction Value Rate Debt Applicable As of 3 -1 -14 3 -1 -14 City of Denton $6,979,224,274 (i) $ 0.68975 $ 123,417,115 (') 100.00% $123,417,115 $ 12,400,000 (3) Denton Independent School District 9,591,174,581 1.53000 631,577,937 63.32% 399,915,149 31,749,713 Denton County 57,196,387,009 0.28490 596,245,000 12.30% 73,338,135 184,556,687 Argyle Independent School District 974,335,582 1.47500 52,214,339 8.72% 4,553,090 - Aubrey Independent School District 546,835,731 1.51000 51,775,715 0.58% 300,299 Krum Independent School District 689,512,121 1.54000 44,645,532 3.79% 1,692,066 Pilot Point Independent School District 475,629,521 1.37000 19,003,268 0.07% 13,302 Ponder Independent School District 712,318,951 1.38500 26,120,000 2.49% 650,388 Sanger Independent School District 690,356,378 1.37207 24,830,983 1.65% 409,711 Total Direct and Overlapping Funded Debt Ratio of Direct and Overlapping Funded Debt to Taxable Assessed Valuation $ 604,289,256 8.66% Per Capita Overlapping Funded Debt .............................................................. ............................... $ 5,224.61 (1) Includes tax incremental value of approximately $16,931,096 that is not available for the City's general obligations and debt of City. (2) Includes a portion of the Obligations, less the Refunded Obligations and self - supporting debt. See Tables 1 and 9 herein for more detailed information on the City's general obligation self - supporting debt. Preliminary, subject to change. (3) Reflects remaining authorization after the issuance of the Bonds. 24 N Exhibit 1 TABLE 7 - GENERAL OBLIGATION DEBT SERVICE REQUIREMENTS Fiscal Less: Self- Less: Self - Year Total Supporting Supporting Total % of Ended Outstanding Debt (i) The Bonds (2) The Certificates (3) Outstanding Solid Waste Utility Debt Service Principal 9/30 Principal Interest Total Principal Interest Total Principal Interest Total Debt Debt ("(" Debt (a) Requirements Retired 2014 $ 27.775.000 $ 16.397.120 $ 44,172,120 $ - $ 51.185 $ 51.185 $ - $ - $ - $ 44223.305 $ 5.933.541 $ 22.568266 $ 15.721.498 2015 29,740:000 14:852:842 44,592:842 1140:000 204,244 1,344244 1,525:000 5,357255 6:882255 52:819,341 6:830:653 28:921,759 17:066:929 2016 29:055:000 13,749,782 42:804,782 875:000 182:079 1:057:079 2:620:000 4272:060 6:892:060 50,753:921 5,772:889 28,522983 16:458:050 2017 28:025:000 12,565251 40,590251 885:000 162,719 1:047,719 2,710:000 4,173,230 6:883230 48,521200 4,712225 28242,515 15,566:460 2018 27.145.000 11.362.198 38.507.198 475.000 147.759 622.759 2.840,000 4.042.480 6.882.480 46,012.437 3.757.579 28.025.549 14229.309 31.77% 2019 26:080:000 10182,558 36262,558 465:000 137:419 602:419 3:005:000 3:890,510 6:895,510 43,760:486 3,223,103 27,832:673 12,704,710 2020 26:475:000 8998:090 35:473:090 450:000 127:073 577:073 2195:000 3,755,310 5:950,310 42:000:473 2:695208 27,812:860 11:492:404 2021 27250:000 7,778:954 35:028:954 170:000 119,546 289,546 2,310:000 3:638180 5:948180 41266:680 2,364:952 27,802:418 11:099,311 2022 26:800:000 6,556:468 33,356:468 175:000 114,561 289,561 2:435:000 3,514:810 5:949:810 39,595:839 2261:828 27,302,519 10:031:492 2023 22.185.000 5.472.538 27.657.538 180.000 108.878 288.878 2.560.000 3.384.940 5,944,940 33.891.356 1.938.524 23.503.710 8.449.121 61.07% 2024 19,545:000 4,572,324 24117,324 190:000 102:608 292:608 2,705:000 3,248,050 5:953:050 30,362:982 1,566:686 21:038,710 7,757,585 2025 19:485:000 3,754233 23,239,233 195:000 95,235 290,235 2,565:000 3111:030 5:676:030 29205:498 1:408259 21113:460 6:683,779 2026 14:030:000 3:075278 17,105,278 205:000 86:835 291:835 2,700:000 2,974,140 5:674140 23:071253 1,348:089 15:673:413 6:049,751 2027 13:830:000 2,510189 16,340189 210:000 78,120 288,120 2:855:000 2:829,710 5:684,710 22,313:019 1202:664 15,712993 5,397,361 2028 12.770.000 1972.524 14.742.524 220.000 69.090 289.090 2.990.000 2.677.740 5.667.740 20.699.354 1.101.099 15.747.425 3.850.831 80.47% 2029 11:945:000 1:472:921 13:417,921 230:000 59:640 289:640 3155:000 2,517:970 5:672:970 19,380,531 1:031:608 15,836,201 2,512,722 2030 12,515:000 972,504 13:487,504 240:000 49,770 289,770 3,325:000 2,349:490 5:674:490 19:451,764 1:031,356 15:905922 2,514:486 2031 8:465:000 539,263 9:004263 250:000 39:480 289:480 3:495:000 2,172,170 5:667170 14:960:913 803:628 12:007:641 2149:644 2032 6:680:000 250,763 6:930,763 260:000 28,770 288,770 3:690:000 1985,360 5:675,360 12:894:893 530:669 10:420:479 1:943,745 2033 4:030:000 68:866 4:098:866 270:000 17,640 287:640 3:880:000 1,788,540 5:668,540 10:055,046 488,974 7,862,760 1,703,312 93.28% 2034 - - - 285:000 5:985 290,985 4:090:000 1,581,320 5:671,320 5:962,305 359,100 4,773,570 829:635 2035 - - - - - - 2220.000 1.417260 3.637260 3.637260 - 3.637260 - 2036 - - - - - - 2.340.000 1298.700 3.638.700 3.638.700 - 3.638.700 - 2037 - - - - - - 2.465,000 1.173.770 3.638.770 3.638.770 - 3.638.770 - 2038 - - - - - - 2.595.000 1.042210 3.637210 3.637210 - 3.637210 - 96.15% 2039 - - - - - - 2.730.000 903.760 3.633.760 3.633.760 - 3.633.760 - 2040 - - - - - - 2.880.000 757,900 3.637.900 3.637.900 - 3.637.900 - 2041 - - - - - - 3.030.000 604,240 3.634240 3.634240 - 3.634240 - 2042 - - - - - - 3.195.000 442.390 3.637.390 3.637.390 - 3.637.390 - 2043 - - - - - - 3.365.000 271.830 3.636.830 3.636.830 - 3.636.830 - 99.27% 2044 3.545.000 92.170 3.637.170 3.637.170 3.637.170 100.00% $ 393.825.000 $127.104.666 $ 520929.666 $ 7.370.000 $ L988.633 $ 9.358.633 $ 86.015.000 $ 71268.525 $ 157283.525 $ 687.571.824 $ 50.362.633 $ 462997,054 $174212137 (1) "Outstanding Debt" does not include lease /purchase obligations, however, it does include self - supporting debt. Excludes the Refunded Obligations. Preliminary, subject to change. (2) Average life of the issue - 7.341 years. Interest on the Bonds has been calculated at the rate of 3.44% for purposes of illustration. Preliminary, subject to change. (3) Average life of the issue - 15.920 years. Interest on the Certificates has been calculated at the rate of 4.34% for purposes of illustration. Preliminary, subject to change. (4) Includes a portion of the Certificates. Preliminary, subject to change. (5) Includes a portion of the Bonds. Preliminary, subject to change. d H 0 H 0 Z Exhibit 1 TABLE 8 - INTEREST AND SINKING FUND BUDGET PROJECTION (I) Tax Supported Debt Service Requirements, Fiscal Year Ending 9/30/2014 .. ............................... $ 44,277,495 Interest and Sinking Fund Balance as of 9/30/13 ....... ............................... $ 4,572,807 Interest and Sinking Fund Tax Levy ................. ............................... 14,965,568 From Revenue Supported Sources ................... ............................... 29,261,927 Interest Income ................................. ............................... 50,000 48,850,302 Estimated Balance, 9/30/14 ....................................... ............................... $ 4,572,807 (1) Source: City's Annual Budget for Fiscal Year 2013/14. TABLE 9 - COMPUTATION OF SELF - SUPPORTING DEBT Net Revenue from Solid Waste System, Fiscal Year Ended 9 -30 -13 ......... ............................... $ 8,060,896 Less: Solid Waste System Revenue Bond Requirements, 2014 Fiscal Year .... ............................... - Balance Available for Other Purposes ................................. ............................... $ 8,060,896 Solid Waste System General Obligation Bond Requirements, 2014 Fiscal Year ............................... 5,933,541 (i) Balance........................................................ ............................... $ 2,127,355 Net Revenue from Utility System (Electric System and Waterworks and Sewer System), Fiscal Year Ended 9 -30 -13 .. $ 51,708,404 Less: Utility System Revenue Bond Requirements, 2014 Fiscal Year ........ ............................... 19,697,088 Balance Available for Other Purposes ................................. ............................... $ 32,011,317 Utility System General Obligation Bond Requirements, 2014 Fiscal Year ..... ............................... 22,568,266 Balance........................................................ ............................... $ 9,443,051 (1) Includes a portion of the Bonds. Preliminary, subject to change. NOTE: The City's policy to pay its self - supporting general obligation debt from other revenues is subject to change in the future at the City's discretion, although the City has no current plans to do so. In the event the City changes it policy, or such revenues are not sufficient to pay debt service on such obligations, the City will be required to levy an ad valorem tax to pay such debt service. TABLE 10 - AUTHORIZED BUT UNISSUED GENERAL OBLIGATION BONDS Date Amount Purpose Authorized Authorized Street 11/6/2012 $ 20,400,000 Amount Amount Heretofore Being Unissued Issued Issued Balance $ 4,000,000 $ 4,000,000 $ 12,400,000 ANTICIPATED ISSUANCE OF ADDITIONAL GENERAL OBLIGATION DEBT ... As shown in Table 10 above, after the issuance of the Bonds, the City will have $12,400,000 voted but unissued debt remaining to be issued from the November 6, 2012 authorization. The City may also issue tax- supported debt other than voter approved general obligation bonds to fund public improvements, such as certificates of obligation or tax anticipation notes, without submitting a measure to the voters, but in certain instances, subject to voter petition rights for a referendum. The City anticipates the issuance of approximately $17,600,000 in tax - supported debt in the second quarter of 2015. In addition, the City is currently working on a potential six -year voter approved capital improvement program with a City Council appointed 51 member citizen advisory committee. The Committee is scheduled to present their recommendations to the City Council in June 2014. Voter consideration would occur in November 2014. 26 Exhibit 1 TABLE 11 - OTHER OBLIGATIONS The City has entered into capital lease agreements. The following is a schedule of future minimum lease payments under these capital leases and the present value of the net minimum lease payments as of September 30, 2013: Year Annual Ending Lease 30 -Sep Payment 2014 $1,228,711 2015 58,497 2016 58,497 2017 58,496 Total Minimum Lease Payment $ 1,404,201 Less: Amount Representing Interest 57,465 Present Value of Minimum Future Lease Payments $ 1,346,736 PENSION FUND ... The City provides pension benefits for all of its full -time employees (except firefighters) through the Texas Municipal Retirement System ( "TMRS "), a State -wide administered pension plan. Employees may retire at ages 60 and above with five or more years of service or with twenty years of service regardless of age, and a member is vested after five years. The City makes annual contributions to the plan equal to the amounts accrued for pension expense. Beginning in 2009, the City of Denton elected to "phase in" higher contributions to TMRS over a period up to eight years in order to recognize the change to a Projected Unit Cost Method in the 2007 valuation. By doing so, the City contributed less than the actuarially determined annual required contribution (ARC), and as such accrued a net pension obligation on its balance sheet. In subsequent years, this net pension obligation will continue to increase until the full actuarially determined ARC is paid. The "phase in" period was expected to last eight years from fiscal year 2009 through fiscal year 2016, but due to the new fund structure approved by the Texas Legislature with Senate Bill 350 (SB 350) and better than expected financial performance, management began paying the full ARC in October 2012. The funded status as of December 31, 2010, December 31, 2011 and December 31, 2012 is presented below: Actuarial Fiscal Valuation Year Date 2011 12/31/2010 2012 12/31/2011 2013 12/31/2012 Unfunded Actuarial Actuarial Accrued Valuation Liability of Assets (AAL) $ 208,101,143 $ 279,659,548 229,285,432 298,900,732 252,276,946 315,416,972 Unfunded AAL Funded (UAAL) Ratio $ 71,558,405 74.4% 69,615,300 76.7% 63,140,026 80.0% On October 9, 2013, subsequent to the City's year end, the TMRS Board adopted two significant changes affecting future actuarial values: Mortality Tables — The mortality tables used to determine the annuity purchase rate were updated to reflect the increasing life expectancy of plan members and retirees. Effective January 1, 2015, this change will affect future retirees only and will be phased in over thirteen years. Entry Age Normal Actuarial Method — TMRS will be changing from the Projected Unit Credit method to the Entry Age Normal method, the most widely used actuarial method by public sector pension plans, which will be required by Governmental Accounting Standards Board (GASB) beginning in fiscal year 2015 for determination of the Net Pension Liability for financial reporting purposes. This will more closely align funding with the financial reporting once the City implements GASB Statement No. 68 "Accounting and Financial Reporting for Pensions; an amendment of GASB Statement No. 27." For more detailed information concerning the TMRS plan as well as the City's historical unfunded actuarial accrued liability for calendar years 2010 -2012, see Appendix B, "Excerpts from the City's Comprehensive Annual Financial Report" - Note V.A., page 54 and Exhibit XII, page 67. 27 Exhibit 1 FIREMEN'S RELIEF AND RETIREMENT FUND . . . The City provides pension benefits for firefighters through the Denton Firemen's Relief and Retirement Fund (the "Firemen's Fund "). Firefighters may retire at age 50 with twenty or more years of service, and a member is vested after ten years of credited service. As of December 31, 2011, there were (i) 67 retirees and beneficiaries receiving benefits and terminated employees entitled to benefits but not yet receiving them, (ii) 95 current employees who were vested and (iii) 66 employees who were not vested. As of December 31, 2011, the plan's unfunded actuarial accrued liability was $21,059,268 and the funded ratio was 72 %. For more detailed information concerning the Firemen's Fund as well as the City's historical unfunded actuarial accrued liability for calendar years 2008 -2011, see Appendix B, "Excerpts from the City's Comprehensive Annual Financial Report" — Note V.A., page 57 and Exhibit XII, page 67. OTHER POST EMPLOYMENT BENEFITS ... The City provides post- employment medical care ( "OPEB ") for retired employees through a single - employer defined benefit medical plan. The plan provides medical benefits for eligible retirees, their spouses and dependents though the City's group health insurance plans, which covers both active and retired members. The benefits, benefit levels, and contribution rates are approved annually by the City management as part of the budget process. Any changes in rate subsidies for retirees are approved by the City Council. Since an irrevocable trust has not been established, the plan is not accounted for as a trust fund. The plan does not issue a separate financial report. The City provides post - employment medical, dental, and vision care benefits to its retirees. To be eligible for benefits, an employee must qualify for retirement under the Texas Municipal Retirement System or the Denton Firemen's Relief and Retirement Plan. Retirees must make a one -time irrevocable decision to choose benefits at the time of retirement, after that their eligibility for the benefits ceases. All medical care benefits are provided through the City's self - insured health plan. The benefit levels are the same as those afforded to active employees. Actuarial valuations have been completed by an outside consulting firm regarding the City's OPEB liability. The reports provide the City with the City's OPEB requirements assuming the City's plan offerings, designs, and cost share approach remain constant. The City's annual OPEB cost is calculated based on the annual required contribution of the City, an amount actuarially determined in accordance with the parameters of GASB Statement 45. The annual required contribution represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to amortize any unfunded actuarial liabilities over a period not to exceed thirty years. The City's annual OPEB cost for the current year and the related information are as follows at September 30, 2013: Fiscal Year Ended September 30, 2013 2012 2011 2010 Annual OPEB Costs $1,519,439 $1,520,203 $1,270,279 $1,284,569 Actual Contributions $ 898,583 $1,481,210 $ 623,130 $ 370,759 Net OPEB Obligations $ 3,827,341 $ 3,206,485 $ 3,167,492 $ 2,520,343 As of December 31, 2011, the date of the latest actuarial report, the City's actuarial accrued liability was $12,565,747 and as of such date the City had funded 0% of such amount. The City's GASB 45 liability was discussed at length with the Audit/Finance Committee and the City Council. At the conclusion of these discussions, the City Council concurred with the staff recommendation to fund the City's OPEB costs on a pay -as- you -go basis. The pay -as- you -go approach has been recommended since 1) this provides the lowest cost approach, 2) the ARC is relatively small in comparison to the City's overall budget, and 3) the pay -as- you -go cost is not forecasted to exceed the ARC until approximately the year 203 1. For more detailed information concerning the City's OPEBs, funding policies related thereto and related liabilities, as well as the City's historical unfunded actuarial accrued liability, see Appendix B, "Excerpts from the City's Comprehensive Annual Financial Report" - Note V.B., page 59 and Exhibit XIII, page 68. 28 Exhibit 1 FINANCIAL INFORMATION TABLE 12 - CHANGES IN NET POSITION (1) The $3.3 million decrease in miscellaneous revenues is mainly due to the decrease in gas well revenues in connection with the City's airport. (2) The transfer out primarily consisted of a $10 million transfer to the newly- created Airport enterprise fund. (3) The prior period adjustment was recorded to reduce the beginning fund balance of the Capital Projects fund to correct the timing of the recognition of intergovernmental revenues. These funds were received in advance and are refundable if not expended for specific purposes within a stated time - frame. The entry reduced the fund balance and increased deferred revenues by $10,674,744 as of the beginning of the year. (4) Unrestricted net position, that part of the net position that may be used to meet the City's ongoing obligations, were $35,136,072 as of September 30, 2013 (see Appendix B, "Excerpts from the Comprehensive Financial Report "). This table refers to governmental activities only and does not include enterprise funds such as the airport, solid waste or utility activities. 29 Fiscal Year Ended September 30, Revenues: 2013 2012 2011 2010 2009 Program Revenue: Charges for Services $ 17,091,719 $ 15,980,821 $ 15,673,556 $ 14,781,002 $ 14,924,773 Operating Grants and Contributions 3,118,105 2,598,157 4,270,697 3,407,085 2,281,136 Capital Grants and Contributions 14,671,571 4,292,468 7,497,908 15,206,424 3,641,296 General Revenue: Property Tax 47,275,552 45,174,160 44,144,844 43,144,645 43,187,433 Sales Tax 26,522,473 25,886,940 22,871,282 20,484,954 20,466,772 OtherTaxes/Fees 22,578,639 21,839,818 21,219,346 19,131,162 17,270,857 Miscellaneous 1,428,907 1,390,398 2,830,297 (i) 6,375,678 5,741,097 Total Revenue $ 132,686,966 $ 117,162,762 $ 118,507,930 $ 122,530,950 $ 107,513,364 Expenditures: General Government $ 27,686,735 $ 29,421,275 $ 28,198,604 $ 29,569,535 $ 27,482,131 Public Safety 52,906,985 52,496,010 49,154,371 47,998,906 45,368,783 Public Works 18,663,884 18,662,029 16,089,302 15,767,926 15,816,065 Parks and Recreation 13,714,245 12,968,426 12,421,893 12,854,336 12,755,037 Interest on Long -Term Debt 4,464,309 4,755,938 5,046,724 5,121,329 5,733,268 Total Expenses $ 117,436,158 $ 118,303,678 $ 110,910,894 $ 111,312,032 $ 107,155,284 Increase in Net Position before Transfers $ 15,250,808 $ (1,140,916) $ 7,597,036 $ 11,218,918 $ 358,080 Transfers (101,707) 887,287 (10,430,082) (2) 482,801 846,119 Increase (Decrease) in Net Position $ 15,149,101 $ (253,629) $ (2,833,046) $ 11,701,719 $ 1,204,199 Prior Period Adjustment - - (10,674,744) (3) - - Net Position at Beginning of Year 140,250,065 140,503,694 154,011,484 142,309,765 141,105,566 Net Position at End of Year (4) $ 155,399,166 $ 140,250,065 $ 140,503,694 $ 154,011,484 $ 142,309,765 (1) The $3.3 million decrease in miscellaneous revenues is mainly due to the decrease in gas well revenues in connection with the City's airport. (2) The transfer out primarily consisted of a $10 million transfer to the newly- created Airport enterprise fund. (3) The prior period adjustment was recorded to reduce the beginning fund balance of the Capital Projects fund to correct the timing of the recognition of intergovernmental revenues. These funds were received in advance and are refundable if not expended for specific purposes within a stated time - frame. The entry reduced the fund balance and increased deferred revenues by $10,674,744 as of the beginning of the year. (4) Unrestricted net position, that part of the net position that may be used to meet the City's ongoing obligations, were $35,136,072 as of September 30, 2013 (see Appendix B, "Excerpts from the Comprehensive Financial Report "). This table refers to governmental activities only and does not include enterprise funds such as the airport, solid waste or utility activities. 29 Exhibit 1 TABLE 12A- GENERAL FUND REVENUES AND EXPENDITURE i$STORY 30 Fiscal Year Ended September 30, Revenues: 2013 2012 2011 2010 2009 Taxes $59,278,152 $57,148,330 $53,492,664 $50,049,759 $49,769,861 Licenses and Permits 1,446,580 1,436,215 1,460,548 1,198,552 1,265,733 Franchise Fee 13,597,253 13,751,615 19,324,244 17,457,994 15,669,981 Fines and Forfeitures 4,229,107 4,241,395 4,216,247 4,378,064 4,691,420 Fees for Service 5,631,829 5,666,413 5,656,550 5,989,349 5,888,390 Interest Revenue 141,734 187,527 172,719 237,559 744,122 Intergovernmental 1,021,581 949,422 825,549 770,164 718,453 Miscellaneous 84,929 255,035 193,022 317,460 229,599 Total Revenues $ 85,431,165 $ 83,635,952 $ 85,341,543 $ 80,398,901 $ 78,977,559 Expenditures: General Government $21,067,238 $20,951,203 $19,495,940 $22,037,729 $21,318,437 Public Safety 49,622,237 46,797,417 44,921,713 43,156,478 41,999,464 Public Works 2,816,923 2,591,517 7,483,926 6,516,276 6,738,327 Parks and Recreation 10,579,066 9,704,075 9,422,432 9,837,073 10,016,114 Capital Outlay 616,199 712,055 575,128 691,880 809,004 Debt Service: Principal Retirement - 78,092 140,422 185,154 223,106 Total Expenditures $ 84,701,663 $ 80,834,359 $ 82,039,561 $ 82,424,590 $ 81,104,452 Excess (Deficiency) of Revenues Over Expenditures $ 729,502 $ 2,801,593 $ 3,301,982 $ (2,025,689) $ (2,126,893) Other Financing Sources (Uses): Capital Leases $ - $ - $ - $ - $ 44,865 Transfers In 2,600 14,301 20,304 1,018,218 112,022 Sale of Capital Assets 137,417 153,127 90,699 160,495 - Transfers (Out) (950,421) (1,556,944) (515,761) (421,200) (612,532) Total Other Financing Sources (Uses) $ (810,404) $ (1,389,516) $ (404,758) $ 757,513 $ (455,645) Net Changes in Fund Balances $ (80,902) $ 1,412,077 $ 2,897,224 $ (1,268,176) $ (2,582,538) Fund Balances at Beginning of Year 25,836,080 24,424,003 21,526,779 22,794,955 25,377,493 Fund Balances at End of Year $25,755,178 $25,836,080 $24,424,003 $21,526,779 $22,794,955 30 Exhibit 1 TABLE 13 - MUNICIPAL SALES TAX HISTORY The City has adopted the Municipal Sales and Use Tax Act, V.T.C.A., Tax Code, Chapter 321, which grants the City the power to impose and levy a 1% Local Sales and Use Tax within the City; the proceeds are credited to the General Fund and are not pledged to the payment of the Obligations. Collections and enforcements are effected through the offices of the Comptroller of Public Accounts, State of Texas, who remits the proceeds of the tax, after deduction of a 2% service fee, to the City monthly. In January 1994, the voters of the City approved the imposition of an additional one -half of one percent (% of 1 %) for property tax reduction. In September 2003, the voters of the City approved the imposition of an additional one -half of one percent (% of 1 %) for the Denton County Transportation Authority. The implementation of this tax began January 2004, and is allocated directly to the Denton County Transportation Authority. Fiscal Year % of Equivalent of Ended Total Ad Valorem Ad Valorem Per 9/30 Collected (1) Tax Levy Tax Rate Capita 2010 $ 21,015,173 48.94% $ 0.3321 $ 185 2011 22,871,281 52.14% 0.3671 200 2012 25,886,938 57.75% 0.4037 224 2013 26,522,473 56.80% 0.3949 226 2014 � 8,692,373 18.06% 0.1245 73 (1) Source: City of Denton Annual Program of Services. (2) Collections through January 31, 2014. The sales tax breakdown for the City is as follows: Property Tax Relief 0.50¢ Denton County Transportation Authority 0.50¢ City Sales & Use Tax 1.00¢ State Sales & Use Tax 6.25¢ Total 8.25¢ FINANCIAL POLICIES Basis of Accounting . . . The accounting policies of the City conform to generally accepted accounting principles of the Governmental Accounting Standards Board and program standards adopted by the Government Finance Officers Association of the United States and Canada. The GFOA has awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Denton for each fiscal year since 1983. The City's current report will be submitted to GFOA to determine its eligibility for another Certificate. The City has also received the GFOA's award for Distinguished Budget Presentation each year since 1988. The measurement focuses for the Enterprise Funds, Internal Service Funds and Nonexpendable Trust Funds are income determination and cost of service, respectively. Accordingly, the accrual basis, whereby revenues and expenses are identified in the accounting period in which they are earned and incurred and net income, is utilized for these funds. The modified accrual basis, whereby revenues are recognized when they become both measurable and available for use during the year and expenditures are recognized when the related fund liability is incurred, is used for all other funds. Budgetary Procedures ... As prescribed by City Charter, the City Manager, within the time period required by law, submits to the City Council a proposed budget for the fiscal year beginning the following October 1. The budget includes proposed expenditures and revenues required to fund the expenditures. Following Council considerations, amendments and refinements, a public hearing is ordered and conducted for the purpose of obtaining taxpayer comments. The budget is finally approved and adopted by passage of an ordinance by the City Council prior to the beginning of the fiscal year. The budget is adopted on a basis consistent with generally accepted accounting principles. The City strives to maintain an unreserved general fund balance of 20% of budgeted expenditures. 31 Exhibit 1 INVESTMENTS The City invests its investable funds in investments authorized by Texas law in accordance with investment policies approved by the City Council. Both Texas law and the City's investment policies are subject to change. LEGAL INVESTMENTS ... Under Texas law, the City is authorized to invest in (1) obligations, including letter of credit, of the United States or its agencies and instrumentalities, (2) direct obligations of the State of Texas or its agencies and instrumentalities; (3) collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the United States; (4) other obligations, the principal and interest of which is guaranteed or insured by or backed by the full faith and credit of, the State of Texas or the United States or their respective agencies and instrumentalities, including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States; (5) obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized investment rating firm not less than A or its equivalent; (6) bonds issued, assumed or guaranteed by the State of Israel; (7) certificates of deposit and share certificates meeting the requirements of the Texas Public Funds Investment Act (Chapter 2256, Texas Government Code, as amended (the "PFIA ")) that are issued by or through an institution that either has its main office or a branch office in Texas, and are guaranteed or insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund, or are secured as to principal by obligations described in clauses (1) through (6) or in any other manner and amount provided by law for City deposits, or are invested by the City through a depository institution that has its main office or a branch office in the State of Texas and otherwise meet the requirements of the PFIA, (8) fully collateralized repurchase agreements that have a defined termination date, are fully secured a combination of cash and obligations described in clause (1) which are pledged to the City, held in the City's name, and deposited at the time the investment is made with the City or with a third party selected and approved by the City and are placed through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in the State, (9) certain bankers' acceptances with the remaining term of 270 days or less, if the short -term obligations of the accepting bank or its parent are rated at least A -1 or P -1 or the equivalent by at least one nationally recognized credit rating agency, (10) commercial paper with a stated maturity of 270 days or less that is rated at least A -1 or P -1 or the equivalent by either (a) two nationally recognized credit rating agencies or (b) one nationally recognized credit rating agency if the paper is fully secured by an irrevocable letter of credit issued by a U.S. or state bank, (11) no -load money market mutual funds registered with and regulated by the Securities and Exchange Commission that have a dollar weighted average stated maturity of 90 days or less and include in their investment objectives the maintenance of a stable net asset value of $1 for each share, and (12) no -load mutual funds registered with the Securities and Exchange Commission that have an average weighted maturity of less than two years, invest exclusively in obligations described in this paragraph, and are continuously rated as to investment quality by at least one nationally recognized investment rating firm of not less than AAA or its equivalent. If specifically authorized in the authorizing document, bond proceeds may be invested in guaranteed investment contracts that have a defined termination date and are secured by obligations of the United States or its agencies and instrumentalities in an amount at least equal to the amount of bond proceeds invested under such contract, other than the prohibited obligations described in the next succeeding paragraph. The City may invest in such obligations directly or through government investment pools that invest solely in such obligations provided that the pools are rated no lower than AAA or AAA -m or an equivalent by at least one nationally recognized rating service. The City may also contract with an investment management firm registered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b -1 et seq.) or with the State Securities Board to provide for the investment and management of its public funds or other funds under its control for a term up to two years, but the City retains ultimate responsibility as fiduciary of its assets. In order to renew or extend such a contract, the City must do so by order, ordinance, or resolution. The City is specifically prohibited from investing in: (1) obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage- backed security collateral and pays no principal; (2) obligations whose payment represents the principal stream of cash flow from the underlying mortgage- backed security and bears no interest; (3) collateralized mortgage obligations that have a stated final maturity of greater than 10 years; and (4) collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. Political subdivisions such as the City are authorized to implement securities lending programs if (i) the securities loaned under the program are 100% collateralized, a loan made under the program allows for termination at any time and a loan made under the program is either secured by (a) obligations that are described in clauses (1) through (6) of the first paragraph under this subcaption, (b) irrevocable letters of credit issued by a state or national bank that is continuously rated by a nationally recognized investment rating firm not less than "A" or its equivalent, or (c) cash invested in obligations that are described in clauses (1) through (6) and (10) through (12) of the first paragraph under this subcaption, or an authorized investment pool; (ii) securities held as collateral under a loan are pledged to the governmental body, held in the name of the governmental body and deposited at the time the investment is made with the City or a third party designated by the City; (iii) a loan made under the program is placed through either a primary government securities dealer or a financial institution doing business in the State of Texas; and (iv) the agreement to lend securities has a term of one year or less. INVESTMENT POLICIES ... Under Texas law, the City is required to invest its funds under written investment policies that primarily emphasize safety of principal and liquidity; that address investment diversification, yield, maturity, and the quality and capability of investment management; and that includes a list of authorized investments for City funds, maximum allowable stated maturity of any individual investment, the maximum average dollar - weighted maturity allowed for pooled fund groups, methods to monitor the market price of investments acquired with public funds, a requirement for settlement of all transactions, except investment pool 32 Exhibit 1 funds and mutual funds, on a delivery versus payment basis, and procedures to monitor rating changes in investments acquired with public funds and the liquidation of such investments consistent with the Public Funds Investment Act. All City funds must be invested consistent with a formally adopted "Investment Strategy Statement" that specifically addresses each funds' investment. Each Investment Strategy Statement will describe its objectives concerning: (1) suitability of investment type, (2) preservation and safety of principal, (3) liquidity, (4) marketability of each investment, (5) diversification of the portfolio, and (6) yield. Under Texas law, City investments must be made "with judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived." At least quarterly the investment officers of the City shall submit an investment report detailing: (1) the investment position of the City, (2) that all investment officers jointly prepared and signed the report, (3) the beginning market value, the ending market value and the fully accrued interest during the reporting period of each pooled fund group, (4) the book value and market value of each separately listed asset at the end of the reporting period, (5) the maturity date of each separately invested asset, (6) the account or fund or pooled fund group for which each individual investment was acquired, and (7) the compliance of the investment portfolio as it relates to: (a) adopted investment strategy statements and (b) state law. No person may invest City funds without express written authority from the City Council. ADDITIONAL PROVISIONS ... Under Texas law the City is additionally required to: (1) annually review its adopted policies and strategies; (2) adopt a rule, order, ordinance or resolution stating that it has reviewed its investment policy and investment strategies and records any changes made to either its investment policy or investment strategy in the respective rule, order, ordinance or resolution; (3) require any investment officers with personal business relationships or relatives with firms seeking to sell securities to the City to disclose the relationship and file a statement with the Texas Ethics Commission and the City Council; (4) require the registered principal of firms seeking to sell securities to the City to: (a) receive and review the City's investment policy, (b) acknowledge that reasonable controls and procedures have been implemented to preclude investment transactions conducted between the City and the business organization that are not authorized by the City's investment policy (except to the extent that this authorization is dependent on an analysis of the makeup of the City's entire portfolio or requires an interpretation of subjective investment standards), and (c) deliver a written statement attesting to these requirements; (5) perform an annual audit of the management controls on investments and adherence to the City's investment policy; (6) provide specific investment training for the Treasurer, Chief Financial Officer and investment officers; (7) restrict reverse repurchase agreements to not more than 90 days and restrict the investment of reverse repurchase agreement funds to no greater than the term of the reverse repurchase agreement; (8) restrict the investment in no -load mutual funds in the aggregate to no more than 15% of the entity's monthly average fund balance, excluding bond proceeds and reserves and other funds held for debt service; (9) require local government investment pools to conform to the new disclosure, rating, net asset value, yield calculation, and advisory board requirements; and (10) at least annually review, revise, and adopt a list of qualified brokers that are authorized to engage in investment transactions with the City. TABLE 14- CURRENT INVESTMENTS (1) As of February 28, 2014, the City's available funds were invested as follows: 33 Market Value Market Book Description Percent Value Value Treasury Secuirites - Coupon 2.35% $ 10,128,320 $ 10,116,688 Federal Agency Issues - Coupon 47.13% 203,824,106 203,368,912 Federal Agency Issues - Callable 6.01% 26,004,120 25,976,272 Municipal Bonds - Coupon 7.12% 30,778,161 30,674,509 CDs - CDARS (') 11.33% 49,000,000 49,000,000 CDs - Collateralized (3) 13.41% 58,000,000 58,000,000 Commercial Paper Disc. - Amortizing 0.92% 3,986,388 3,990,283 Demand Deposits (3) 11.73% 50,708,623 50,708,623 100.00% $432,429,718 $431,835,287 (1) There are no City funds invested in derivative securities, i.e., securities whose rate of return is determined by reference to some other instrument, index or commodity. (2) Fully insured by FDIC. (3) Insured up to the FDIC limit with uninsured amounts collateralized by U.S. federal agency securities at a minimum of 102% of principal plus accrued interest. 33 Exhibit 1 TAX MATTERS OPINIONS The Bonds ... On the date of initial delivery of the Bonds, McCall, Parkhurst & Horton L.L.P., Dallas, Texas, Bond Counsel to the City, will render its opinion that, in accordance with statutes, regulations, published rulings and court decisions existing on the date thereof ( "Existing Law "), (1) interest on the Bonds for federal income tax purposes will be excludable from the "gross income" of the holders thereof and (2) the Bonds will not be treated as "specified private activity bonds" the interest on which would be included as an alternative minimum tax preference item under section 57(a)(5) of the Internal Revenue Code of 1986 (the "Code "). Except as stated above, Bond Counsel to the City will express no opinion as to any other federal, state or local tax consequences of the purchase, ownership or disposition of the Bonds. The Certificates ... On the date of initial delivery of the Certificates, Bond Counsel to the City will render its opinion that, in accordance with Existing Law, (1) interest on the Certificates for federal income tax purposes will be excludable from the "gross income" of the holders thereof and (2) the Certificates will not be treated as "specified private activity bonds" the interest on which would be included as an alternative minimum tax preference item under section 57(a)(5) of the Code. Except as stated above, Bond Counsel to the City will express no opinion as to any other federal, state or local tax consequences of the purchase, ownership or disposition of the Certificates. See Appendix C —Forms of Bond Counsel's Opinions. In rendering each of the foregoing opinions, Bond Counsel to the City will rely upon (a) certain information and representations of the City, including information and representations contained in the City's federal tax certificate with respect to each Obligation issue, (b) covenants of the City contained in the Obligation documents relating to certain matters, including arbitrage and the use of the proceeds of the Obligations and the Refunded Obligations and the property financed or refinanced therewith and (c) the sufficiency certificate of the paying agent for the Refunded Obligations. Failure by the City to observe the aforementioned representations or covenants could cause the interest on the Obligations to become taxable retroactively to the date of issuance. The Code and the regulations promulgated thereunder contain a number of requirements that must be satisfied subsequent to the issuance of the Obligations in order for interest on the Obligations to be, and to remain, excludable from gross income for federal income tax purposes. Failure to comply with such requirements may cause interest on the Obligations to be included in gross income retroactively to the date of issuance of the Obligations. The opinion of Bond Counsel to the City is conditioned on compliance by the City with such requirements, and Bond Counsel to the City has not been retained to monitor compliance with these requirements subsequent to the issuance of the Obligations. Bond Counsel's opinion represents its legal judgment based upon its review of Existing Law and the reliance on the aforementioned information, representations and covenants. Bond Counsel's opinion is not a guarantee of a result. The Existing Law is subject to change by the Congress and to subsequent judicial and administrative interpretation by the courts and the Department of the Treasury. There can be no assurance that such Existing Law or the interpretation thereof will not be changed in a manner which would adversely affect the tax treatment of the purchase, ownership or disposition of the Obligations. A ruling was not sought from the Internal Revenue Service by the City with respect to the Obligations or the projects being financed or refinanced therewith. Bond Counsel's opinion represents its legal judgment based upon its review of Existing Law and the representations of the City that it deems relevant to render such opinion and is not a guarantee of a result. No assurances can be given as to whether or not the Internal Revenue Service will commence an audit of the Obligations, or as to whether the Internal Revenue Service would agree with the opinion of Bond Counsel. If an audit is commenced, under current procedures the Internal Revenue Service is likely to treat the City as the taxpayer and the holders of the Obligations may have no right to participate in such procedure. No additional interest will be paid upon any determination of taxability. FEDERAL INCOME TAX ACCOUNTING TREATMENT OF ORIGINAL ISSUE DISCOUNT The initial public offering price to be paid for one or more maturities of the Obligations may be less than the principal amount thereof or one or more periods for the payment of interest on the Obligations may not be equal to the accrual period or be in excess of one year (the "Original Issue Discount Bonds "). In such event, the difference between (i) the "stated redemption price at maturity" of each Original Issue Discount Bond, and (ii) the initial offering price to the public of such Original Issue Discount Bond would constitute original issue discount. The "stated redemption price at maturity" means the sum of all payments to be made on the Obligations less the amount of all periodic interest payments. Periodic interest payments are payments which are made during equal accrual periods (or during any unequal period if it is the initial or final period) and which are made during accrual periods which do not exceed one year. Under existing law, any owner who has purchased such Original Issue Discount Bond in the initial public offering is entitled to exclude from gross income (as defined in section 61 of the Code) an amount of income with respect to such Original Issue Discount Bond equal to that portion of the amount of such original issue discount allocable to the accrual period. For a discussion of certain collateral federal tax consequences, see discussion set forth below. In the event of the redemption, sale or other taxable disposition of such Original Issue Discount Bond prior to stated maturity, however, the amount realized by such owner in excess of the basis of such Original Issue Discount Bond in the hands of such owner (adjusted upward by the portion of the original issue discount allocable to the period for which such Original Issue Discount Bond was held by such initial owner) is includable in gross income. 34 Exhibit 1 Under existing law, the original issue discount on each Original Issue Discount Bond is accrued daily to the stated maturity thereof (in amounts calculated as described below for each six -month period ending on the date before the semiannual anniversary dates of the date of the Obligations and ratably within each such six -month period) and the accrued amount is added to an initial owner's basis for such Original Issue Discount Bond for purposes of determining the amount of gain or loss recognized by such owner upon the redemption, sale or other disposition thereof. The amount to be added to basis for each accrual period is equal to (a) the sum of the issue price and the amount of original issue discount accrued in prior periods multiplied by the yield to stated maturity (determined on the basis of compounding at the close of each accrual period and properly adjusted for the length of the accrual period) less (b) the amounts payable as current interest during such accrual period on such Original Issue Discount Bond. The federal income tax consequences of the purchase, ownership, redemption, sale or other disposition of Original Issue Discount Bonds which are not purchased in the initial offering at the initial offering price may be determined according to rules which differ from those described above. All owners of Original Issue Discount Bonds should consult their own tax advisors with respect to the determination for federal, state and local income tax purposes of the treatment of interest accrued upon redemption, sale or other disposition of such Original Issue Discount Bonds and with respect to the federal, state, local and foreign tax consequences of the purchase, ownership, redemption, sale or other disposition of such Original Issue Discount Bonds. COLLATERAL FEDERAL INCOME TAX CONSEQUENCES The following discussion is a summary of certain collateral federal income tax consequences resulting from the purchase, ownership or disposition of the Obligations. This discussion is based on existing statutes, regulations, published rulings and court decisions, all of which are subject to change or modification, retroactively. The following discussion is applicable to investors, other than those who are subject to special provisions of the Code, such as financial institutions, property and casualty insurance companies, life insurance companies, individual recipients of Social Security or Railroad Retirement benefits, individuals allowed an earned income credit, certain S corporations with accumulated earnings and profits and excess passive investment income, foreign corporations subject to the branch profits tax, taxpayers qualifying for the health insurance premium assistance credit, and taxpayers who may be deemed to have incurred or continued indebtedness to purchase tax- exempt obligations. THE DISCUSSION CONTAINED HEREIN MAY NOT BE EXHAUSTIVE. INVESTORS, INCLUDING THOSE WHO ARE SUBJECT TO SPECIAL PROVISIONS OF THE CODE, SHOULD CONSULT THEIR OWN TAX ADVISORS AS TO THE TAX TREATMENT WHICH MAY BE ANTICIPATED TO RESULT FROM THE PURCHASE, OWNERSHIP AND DISPOSITION OF TAX - EXEMPT OBLIGATIONS BEFORE DETERMINING WHETHER TO PURCHASE THE OBLGATIONS. Interest on the Obligations will be includable as an adjustment for "adjusted current earnings" to calculate the alternative minimum tax imposed on corporations by section 55 of the Code. Under section 6012 of the Code, holders of tax- exempt obligations, such as the Obligations, may be required to disclose interest received or accrued during each taxable year on their returns of federal income taxation. Section 1276 of the Code provides for ordinary income tax treatment of gain recognized upon the disposition of a tax- exempt obligation, such as the Obligations, if such obligation was acquired at a "market discount" and if the fixed maturity of such obligation is equal to, or exceeds, one year from the date of issue. Such treatment applies to "market discount bonds" to the extent such gain does not exceed the accrued market discount of such bonds; although for this purpose, a de minimis amount of market discount is ignored. A "market discount bond" is one which is acquired by the holder at a purchase price which is less than the stated redemption price at maturity or, in the case of a bond issued at an original issue discount, the "revised issue price" (i.e., the issue price plus accrued original issue discount). The "accrued market discount" is the amount which bears the same ratio to the market discount as the number of days during which the holder holds the obligation bears to the number of days between the acquisition date and the final maturity date. STATE, LOCAL AND FOREIGN TAXES Investors should consult their own tax advisors concerning the tax implications of the purchase, ownership or disposition of the Obligations under applicable state or local laws. Foreign investors should also consult their own tax advisors regarding the tax consequences unique to investors who are not United States persons. FUTURE AND PROPOSED LEGISLATION Tax legislation, administrative actions taken by tax authorities, or court decisions, whether at the Federal or state level, may adversely affect the tax- exempt status of interest on the Obligations under Federal or state law and could affect the market price or marketability of the Obligations. Any such proposal could limit the value of certain deductions and exclusions, including the exclusion for tax - exempt interest. The likelihood of any such proposal being enacted cannot be predicted. Prospective purchasers of the Obligations should consult their own tax advisors regarding the foregoing matters. 35 Exhibit 1 CONTINUING DISCLOSURE OF INFORMATION In each of the Ordinances the City has made the following agreement for the benefit of the holders and beneficial owners of the respective series of Obligations. The City is required to observe each agreement while it remains obligated to advance funds to pay such Obligations. Under each agreement, the City will be obligated to provide certain updated financial information and operating data annually, and the timely notice of specified events to the Municipal Securities Rulemaking Board ( "MSRB "). This information will be available free of charge from the MSRB via the Electronic Municipal Market Access ( "EMMA ") system at www.emma.msrb.ora. ANNUAL REPORTS ... The City will provide certain updated financial information and operating data to the MSRB annually. The information to be updated includes all quantitative financial information and operating data with respect to the City of the general type included in this Official Statement under Tables numbered 1 through 5 and 7 through 14 and in Appendix B. The City will update and provide this information within six months after the end of each fiscal year ending in or after 2014. The City will provide the updated information to the MSRB. The financial information and operating data to be provided may be set forth in full in one or more documents or may be included by specific reference to any document available to the public on the MSRB's Internet Web site or filed with the United States Securities and Exchange Commission (the "SEC'), as permitted by SEC Rule 15c2 -12 (the "Rule "). The updated information will include audited financial statements, if the City commissions an audit and it is completed by the required time. If audited financial statements are not available by the required time, the City will provide unaudited financial information of the type described in the preceding paragraph by the required time and audited financial statements when and if such audited financial statements become available. Any such financial statements will be prepared in accordance with the accounting principles described in Appendix B or such other accounting principles as the City may be required to employ from time to time pursuant to State law or regulation. The City's current fiscal year end is September 30. Accordingly, it must provide updated information by March 31 in each year, unless the City changes its fiscal year. If the City changes its fiscal year, it will notify the MSRB of the change. NOTICE OF CERTAIN EVENTS ... The City will also provide timely notices of certain events to the MSRB. The City will provide notice of any of the following events with respect to the Obligations to the MSRB in a timely manner (but not in excess of ten business days after the occurrence of the event): (1) principal and interest payment delinquencies; (2) non - payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701 -TEB), or other material notices or determinations with respect to the tax status of the Obligations, or other material events affecting the tax status of the Obligations; (7) modifications to rights of holders of the Obligations, if material; (8) Obligation calls, if material, and tender offers; (9) defeasances; (10) release, substitution, or sale of property securing repayment of the Obligations, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership, or similar event of the City, which shall occur as described below; (13) the consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of its assets, other than in the ordinary course of business, the entry into of a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (14) appointment of a successor or additional trustee or the change of name of a trustee, if material. In addition, the City will provide timely notice of any failure by the City to provide annual financial information in accordance with their agreement described above under "Annual Reports ". For these purposes, any event described in (12) in the immediately preceding paragraph is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. LIMITATIONS AND AMENDMENTS ... The City has agreed to update information and to provide notices of specified events only as described above. The City has not agreed to provide other information that may be relevant or material to a complete presentation of its financial results of operations, condition, or prospects or agreed to update any information that is provided, except as described above. The City makes no representation or warranty concerning such information or concerning its usefulness to a decision to invest in or sell Obligations at any future date. The City disclaims any contractual or tort liability for damages resulting in whole or in part from any breach of its continuing disclosure agreement or from any statement made pursuant to its agreement, although holders of Obligations may seek a writ of mandamus to compel the City to comply with its agreement. The City may amend its continuing disclosure agreement for either or both of the Bonds and Certificates from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, 36 Exhibit 1 nature, status, or type of operations of the City, if (i) the agreement, as amended, would have permitted an underwriter to purchase or sell Bonds or Certificates, as the case may be, in the offering described herein in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (ii) either (a) the holders of a majority in aggregate principal amount of the outstanding Bonds or Certificates, as the case may be, consent to the amendment or (b) any person unaffiliated with the City (such as nationally recognized bond counsel) determines that the amendment will not materially impair the interests of the holders and beneficial owners of the Bonds or Certificates, as the case may be. The City may also amend or repeal the provisions of this continuing disclosure agreement if the SEC amends or repeals the applicable provisions of the Rule or a court of final jurisdiction enters judgment that such provisions of the Rule are invalid, but only if and to the extent that the provisions of this sentence would not prevent an underwriter from lawfully purchasing or selling Obligations in the primary offering of the Obligations. If the City so amends the agreement, it has agreed to include with the next financial information and operating data provided in accordance with its agreement described above under "Annual Reports" an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information and operating data so provided. COMPLIANCE WITH PRIOR UNDERTAKINGS ... During the last five years, the City has complied in all material respects with all continuing disclosure agreements made by it in accordance with SEC Rule 15c2 -12. OTHER INFORMATION RATINGS The Obligations and the presently outstanding tax supported debt of the City are rated " " by Fitch and " " by S &P. An explanation of the significance of such ratings may be obtained from the company furnishing the rating. The ratings reflect only the respective views of such organizations and the City makes no representation as to the appropriateness of the ratings. There is no assurance that such ratings will continue for any given period of time or that they will not be revised downward or withdrawn entirely by either or both of such rating companies, if in the judgment of either or both companies, circumstances so warrant. Any such downward revision or withdrawal of such ratings, or either of them, may have an adverse effect on the market price of the Obligations. LITIGATION It is the opinion of the City Attorney and City Staff that there is no pending, or to their knowledge threatened, litigation or other proceeding against the City that could have a material adverse financial impact upon the City or its operations over and above those already disclosed in the City's Comprehensive Annual Financial Report, see Appendix B, Note V.F., page 64. At the time of the initial delivery of the Obligations, the City will provide the Initial Purchasers with a certificate to the effect that no litigation of any nature has been filed or is then pending challenging the issuance of the Obligations or that affects the payment and security of the Obligations or in any other manner questioning the issuance, sale or delivery of the Obligations. REGISTRATION AND QUALIFICATION OF OBLIGATIONS FOR SALE The sale of the Obligations has not been registered under the Federal Securities Act of 1933, as amended, in reliance upon the exemption provided thereunder by Section 3(a)(2); and the Obligations have not been qualified under the Securities Act of Texas in reliance upon various exemptions contained therein; nor have the Bonds or Certificates been qualified under the securities acts of any jurisdiction. The City assumes no responsibility for qualification of the Bonds or Certificates under the securities laws of any jurisdiction in which the Obligations may be sold, assigned, pledged, hypothecated or otherwise transferred. This disclaimer of responsibility for qualification for sale or other disposition of the Obligations shall not be construed as an interpretation of any kind with regard to the availability of any exemption from securities registration provisions. LEGAL INVESTMENTS AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS The Obligations. Section 1201.041 of the Public Security Procedures Act (Chapter 1201, Texas Government Code) provides that the Obligations are negotiable instruments, investment securities governed by Chapter 8, Texas Business and Commerce Code, and are legal and authorized investments for insurance companies, fiduciaries, and trustees, and for the sinking funds of municipalities or other political subdivisions or public agencies of the State of Texas. In addition, various provisions of the Texas Finance Code provide that, subject to a prudent investor standard, the Obligations are legal investments for state banks, savings banks, trust companies with at least $1 million of capital, and savings and loan associations. The Certificates. Section 271.051, Texas Local Government Code, provides that the Certificates are legal and authorized investments for banks, savings banks, trust companies, savings and loan associations, insurance companies, fiduciaries, trustees and guardians, and for the sinking funds of municipalities, school districts, and other political subdivisions or public agencies of the State of Texas. The Certificates are eligible to secure deposits of any public funds of the State, municipalities, school districts, and other political subdivisions of the State, and are legal security for those deposits to the extent of their market value. 37 Exhibit 1 General Considerations. For political subdivisions in Texas that have adopted investment policies and guidelines in accordance with the Public Funds Investment Act (Texas Government Code, Chapter 2256), the Obligations may have to be assigned a rating of at least "A" or its equivalent as to investment quality by a national rating agency before such obligations are eligible investments for sinking funds and other public funds. The City has made no investigation of other laws, rules, regulations, or investment criteria which might apply to such institutions or entities or which might limit the suitability of the Obligations for any of the foregoing purposes or limit the authority of such institutions or entities to purchase or invest in the Obligations for such purposes. The City has made no review of laws in other states to determine whether the Obligations are legal investments for various institutions in those states. LEGAL OPINIONS AND NO- LITIGATION CERTIFICATE The City will furnish a complete transcript of proceedings had incident to the authorization and issuance of the Bonds and of the Certificates, including the unqualified approving legal opinions of the Attorney General of Texas approving the Initial Bond and the Initial Certificate and to the effect that the Bonds and the Certificates are valid and legally binding obligations of the City, and based upon examination of such transcript of proceedings, the approving legal opinions of Bond Counsel, to like effect and to the effect that the interest on the Bonds and the Certificates will be excludable from gross income for federal income tax purposes under Section 103(a) of the Code, subject to the matters described under "Tax Matters" herein. The customary closing papers, including a certificate to the effect that no litigation of any nature has been filed or is then pending to restrain the issuance and delivery of the Obligations, or which would affect the provision made for their payment or security or in any manner questioning the validity of said Obligations will also be furnished. Though it represents the Financial Advisor and purchasers of debt from governmental issuers from time to time in matters unrelated to the issuance of the Obligations, Bond Counsel has been engaged by and only represents the City in connection with the issuance of the Obligations. Bond Counsel was not requested to participate, and did not take part, in the preparation of the Notice of Sale and Bidding Instructions, the Official Bid Form and the Official Statement, and such firm has not assumed any responsibility with respect thereto or undertaken independently to verify any of the information contained therein, except that, in its capacity as Bond Counsel, such firm has reviewed the information describing the Obligations in the Official Statement to verify that such description conforms to the provisions of the Bond Ordinance and the Certificate Ordinance. The legal fee to be paid Bond Counsel for services rendered in connection with the issuance of the Obligations is contingent on the sale and delivery of the Obligations. The legal opinion will accompany the Obligations deposited with DTC or will be printed on the Obligations in the event of the discontinuance of the Book - Entry -Only System. The legal opinions to be delivered concurrently with the delivery of the Obligations express the professional judgment of the attorneys rendering the opinions as to the legal issues explicitly addressed therein. In rendering a legal opinion, the attorney does not become an insurer or guarantor of that expression of professional judgment, of the transaction opined upon, or of the future performance of the parties to the transaction. Nor does the rendering of an opinion guarantee the outcome of any legal dispute that may arise out of the transaction. AUTHENTICITY OF FINANCIAL DATA AND OTHER INFORMATION The financial data and other information contained herein have been obtained from City records, audited financial statements, and other sources which are believed to be reliable. There is no guarantee that any of the assumptions or estimates contained herein will be realized. All of the summaries of the statutes, documents, and ordinances contained in this Official Statement are made subject to all of the provisions of such statutes, documents, and ordinances. These summaries do not purport to be complete statements of such provisions and reference is made to such documents for further information. Reference is made to original documents in all respects. FINANCIAL ADVISOR First Southwest Company is employed as Financial Advisor to the City in connection with the issuance of the Obligations. The Financial Advisor's fee for services rendered with respect to the sale of the Obligations is contingent upon the issuance and delivery of the Obligations. First Southwest Company, in its capacity as Financial Advisor, has relied on the opinion of Bond Counsel and has not verified and does not assume any responsibility for the information, covenants, and representations contained in any of the legal documents with respect to the federal income tax status of the Obligations, or the possible impact of any present, pending, or future actions taken by any legislative or judicial bodies. The Financial Advisor to the City has provided the following sentence for inclusion in this Official Statement. The Financial Advisor has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to the City and, as applicable, to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Financial Advisor does not guarantee the accuracy or completeness of such information. 38 Exhibit 1 INITIAL PURCHASER OF THE BONDS After requesting competitive bids for the Bonds, the City accepted the bid of (the "Initial Purchaser of the Bonds ") to purchase the Bonds at the interest rates shown on the cover page of the Official Statement at a price of par plus a cash premium of $ . The Initial Purchaser of the Bonds can give no assurance that any trading market will be developed for the Bonds after their sale by the City to the Initial Purchaser of the Bonds. The City has no control over the price at which the Bonds are subsequently sold and the initial yield at which the Bonds will be priced and reoffered will be established by and will be the sole responsibility of the Initial Purchaser of the Bonds. INITIAL PURCHASER OF THE CERTIFICATES After requesting competitive bids for the Certificates, the City accepted the bid of (the "Initial Purchaser of the Certificates ") to purchase the Certificates at the interest rates shown on page 3 of the Official Statement at a price of par plus a cash premium of $ . The Initial Purchaser of the Certificates can give no assurance that any trading market will be developed for the Certificates after their sale by the City to the Initial Purchaser of the Certificates. The City has no control over the price at which the Certificates are subsequently sold and the initial yield at which the Certificates will be priced and reoffered will be established by and will be the sole responsibility of the Initial Purchaser of the Certificates. The Initial Purchaser of the Bonds and the Initial Purchaser of the Certificates are herein collectively referred to as the "Purchasers ". CERTIFICATION OF THE OFFICIAL STATEMENT At the time of payment for and delivery of the Obligations, the City will furnish to the Initial Purchasers a certificate, executed by a proper City officer, acting in such officer's official capacity, to the effect that to the best of such officer's knowledge and belief. (a) the descriptions and statements of or pertaining to the City contained in the Official Statement, and any addenda, supplement, or amendment thereto, on the date of the Official Statement, on the date of sale of the Obligations, and the acceptance of the best bid therefor, and on the date of the delivery, were and are true and correct in all material respects; (b) insofar as the City and its affairs, including its financial affairs, are concerned, the Official Statement did not and does not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (c) insofar as the descriptions and statements, including financial data, of or pertaining to entities, other than the City, and their activities contained in the Official Statement are concerned, such statements and data have been obtained from sources which the City believes to be reliable and the City has no reason to believe that they are untrue in any material respect; and (d) there has been no material adverse change in the financial condition of the City since the date of the last audited financial statements of the City. The respective Ordinances authorizing the issuance of the Obligations will approve the form and content of this Official Statement, and any addenda, supplement, or amendment thereto, and authorize its further use in the reoffering of the Obligations by the Purchasers. FORWARD - LOOKING STATEMENTS DISCLAIMER The statements contained in this Official Statement, and in any other information provided by the City, that are not purely historical, are forward - looking statements, including statements regarding the City's expectations, hopes, intentions, or strategies regarding the future. Readers should not place undue reliance on forward - looking statements. All forward - looking statements included in this Official Statement are based on information available to the City on the date hereof, and the City assumes no obligation to update any such forward - looking statements. The City's actual results could differ materially from those discussed in such forward - looking statements. The forward - looking statements included herein are necessarily based on various assumptions and estimates and are inherently subject to various risks and uncertainties, including risks and uncertainties relating to the possible invalidity of the underlying assumptions and estimates and possible changes or developments in social, economic, business, industry, market, legal, and regulatory circumstances and conditions and actions taken or omitted to be taken by third parties, including customers, suppliers, business partners and competitors, and legislative, judicial, and other governmental authorities and officials. Assumptions related to the foregoing involve judgments with respect to, among other things, future economic, competitive, and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the City. Any of such assumptions could be inaccurate and, therefore, there can be no assurance that the forward - looking statements included in this Official Statement will prove to be accurate. MISCELLANEOUS The Ordinances authorizing the issuance of the Obligations will approve the form and content of this Official Statement, and any addenda, supplement or amendment thereto, and authorize its further use in the reoffering of the Obligations by the Initial Purchasers. PRICING OFFICER City of Denton, Texas 39 Exhibit 1 Schedule I SCHEDULE OF REFUNDED OBLIGATIONS* General Obligation Refunding and Improvement Bonds, Series 2004 $3,335,000 $ 3,335,000 The 2015 - 2020 maturities will be redeemed prior to original maturity on 2014, at par. * Preliminary, subject to change. Principal Principal Original Maturity Interest Amount Amount Dated Date Date Rate Outstanding Refunded 3/15/2003 2/15/2015 5.000% $ 945,000 $ 945,000 2/15/2016 5.000% 705,000 705,000 2/15/2017 5.000% 725,000 725,000 2/15/2018 5.000% 325,000 325,000 2/15/2019 5.000% 320,000 320,000 2/15/2020 5.000% 315,000 315,000 $3,335,000 $ 3,335,000 The 2015 - 2020 maturities will be redeemed prior to original maturity on 2014, at par. * Preliminary, subject to change. Exhibit 1 APPENDIX A GENERAL INFORMATION REGARDING THE CITY Exhibit 1 LOCATION ... The City of Denton is located in the northern portion of the Dallas /Fort Worth Consolidated Statistical Area (CSMA). The City is a part of the Dallas/Fort Worth Metroplex, and is situated at the apex of a triangle based by Dallas (38 miles to the southeast) and Fort Worth (36 miles to the southwest). The City has excellent access to and from all parts of the area. ECONOMIC FUTURE ... The fiscal year 2012 -2013 was very eventful for Denton. Listed below are just a few of the projects: MAJOR EMPLOYER & INDUSTRIAL NEWS • Target Corporation completed construction of their 365,853 square foot frozen and refrigerated food distribution center in 2012. This $100 million project received a 65% tax abatement for five years from the City of Denton to help offset costs to improve Airport and Corbin Roads. This facility will service over 230 stores in eight states with frozen and perishable food products. Target opened in March 2013 and employs 115 to 150 area residents. • Schlumberger, an oilfield service company, held a grand opening in September 2011 for their 150,000 square foot regional maintenance facility at the Granite Point Industrial Park. Renovation of the building is estimated at $10 million. Schlumberger employed 89 in 2013. Peerless Manufacturing selected Denton to expand and consolidate some of their Texas operations. The company designs, custom engineers and manufactures highly specialized filtration, separation equipment, industrial silencers, heat exchangers, and air pollution reduction systems to energy industry customers involved in gas and oil production, petrochemical processing, and power generating. They completed construction of an 80,000 square foot manufacturing facility in October 2013. The valuation of the project is estimated at $16 million. Peerless received a 40% tax abatement from the City of Denton for the new facility. Peter Burledge, Chief Executive Officer, indicated that they plan on significantly increasing their 126 positions in the next year and their site plans have the capacity for duplicating the existing plant in the near future. • Labinal, Inc., part of the Safran Group, is a world leader in electrical wiring harness and integration systems for the aviation, aerospace and defense markets. In August 2012, Labinal relocated its North American Wiring and Services Division headquarters to the former Russell Newman facility in Denton, employing over 750. The company received a 50 %, three -year tax rebate on increased valuation of at least $5 million at the Denton facility. Mayday Manufacturing /Tailwind Technologies manufactures precision bushings, sleeves, pins, and other machine parts used in the aerospace industry. Mayday subsidiary, High Tech Metal Refinishing is collocated with Mayday and provides metal finishing processes for Mayday products and for additional customers. Solid growth plans support the doubling of Mayday Manufacturing's revenues by 2016 and necessitated the expansion of their facilities to accommodate this growth. The company purchased an 80,000 square foot facility in 2012 and held a groundbreaking at the new site location in February 2013 that included a 15,000 square foot expansion. The company will move from leased space in Denton into the new facility by fall 2014. Tetra Pak Materials LP has been in Denton for twenty -nine years. The company manufactures, processes, packages and distributes liquid food packaging internationally. The aseptic packaging process removes air and bacteria, which allows for a product shelf life of more than six months. In 2000, the company added the Americas Global Information Management hub, a pilot research and development center and relocated the U.S. Technical Service Center. In October 2013, the company received a four -year 65% tax abatement for expanding their facility and relocating their corporate headquarter operations from Chicago to Denton. The current facility comprises approximately 220,000 square feet. The increase in real and business personal property valuation of the project expansion is estimated at $10.7 million. Tetra Pak Materials expects to create a total of thirty new jobs with this expansion. • Heart Hospital Baylor Denton purchased the 60,000 square foot North Texas Hospital in 2013. An $8.2 million facility alteration is underway that will add an 8,600 square foot medical/surgical patient wing and expand the facility from 16 to 22 beds. The Heart Hospital Baylor Denton is the first "sister" facility to the Dallas -Fort Worth area's renowned Heart Hospital Baylor Plano; presently performing more intricate, surgical heart procedures than any facility in north Texas. The Denton facility opened in early 2014. • Greenpoint Aerospace, Inc., a division of Greenpoint Technologies' Boeing Business Jet Completion Center, acquired Jet Works Air Center located at Denton Enterprise Airport. Jet Works' 75 employees provide aviation corporate and VIP maintenance and repair services at a 109,000 square foot facility. The Greenpoint purchase will result in a 50,000+ square foot expansion to the Jet Works facility and an additional 75 -100 employees by summer 2014. A -1 Exhibit 1 DEVELOPMENT AT DENTONMUNICIPAL AIRPORT (DTO) The Airport has added over $29 million of public infrastructure improvements since 2004 which is fully paid -for through grants and local matching funds, including an air traffic control tower, lengthened runway, two miles of taxiway and over four acres of ramp area. Private enterprise has continued to invest in new hangar space, aviation business facilities and based aircraft. The City added 146 acres of property to the Airport by negotiated purchase for the planned addition of a second runway to be funded through a matching grant. The Airport is ranked by the Federal Aviation Administration as the third busiest general aviation airport in the United States, with 157,986 operations (takeoffs and landings) recorded in 2012. The 7,000 foot runway and air traffic control enhanced with radar display has allowed business aviation to flourish at DTO. The Airport control tower operates from 6:00 AM to 10:00 PM seven (7) days each week. Private aircraft and corporate jet traffic operate in uncongested, Class D airspace accommodating personal, business and flight training activity. Private industry growth at DTO produced over $18 million of new investment in hangars and business space since 2009. DTO has continued to operate successfully under the City Council approved 2010 Business Plan. Over the past year, three new businesses have located at DTO, including a major Boeing Corporation contractor which performs interior completions on large business jets and a CareFlite emergency medical transport regional operations center. Private sector employment at DTO is over 450 jobs and will grow close to 700 with planned business expansion over the next eighteen (18) months. Engineering design for a second runway at DTO will commence in 2014 with construction anticipated in 2016. An update of the Airport Master Development Plan is expected to be completed in 2014, and implementation of the 2010 Business Plan is continuing to move the Airport toward operating as a financially sustainable aviation enterprise through marketing and economic development incentives to attract new aviation industry. RETAIL NEWS Rayzor Ranch, a 400 acre mixed use development, has seen continued growth. The Marketplace completed over 600,000 square feet of retail and commercial space. Sam's and Wal -Mart anchor the Marketplace with 137,381 and 189,929 square feet, respectively. Sam's is valued at $12.2 million and Wal -Mart at $15.4 million. The 30,000 square foot strip center is home to 21 retail and restaurant tenants. Some of the new stores in the development include: Kohl's, Famous Footwear, Five Below Jo -Ann's Fabric, Petco, and Panera Bread. Additional retailers under construction, which will open in 2014, include: Ross Dress for Less, Boot Barn, Style for Less, Academy Sports, Colorful Hearing and Salons by JC. Preliminary plats for the 600,000 square foot Rayzor Ranch Town Center have been submitted and anchors for the south side of the development are expected to be in operation by 2015. Golden Triangle Mall was purchased by the MG Herring Group and the Weitzman Group in 2011. The partnership is making major renovations to the mall to include: the addition of restaurants and stores, improving the building fagade, creating a food court, and improving the parking lot and landscaping. The first phase of the renovations was completed in late 2012 and includes: the installation of energy efficient lighting, a new Center Court, Wi -fi, interior landscaping and updated finishes. Exterior entrance updates, a new food court, pylon sign and wayfinding have been constructed as part of the second phase of the redevelopment. New tenants that have opened include: Buckle, Body Central, Charlette Russe, Tobu Asian Eatery, Italia Express, Great American Cookie and Smoothie Paradise. Investment in renovations currently totals approximately $40 million with a total expected investment of $65 million by 2015. • Over 437,111 square feet of miscellaneous commercial and retail permits were issued, of which fourteen were new retail stores and two new restaurants. These figure exclude alterations HEALTHCARE IN DENTON • The medical sector continues to grow in Denton with an additional 21,800 square feet of doctors' offices and senior care facilities. OTHER DEVELOPMENTS • Downtown Denton continued to experience growth during the past year with 5,500 square feet of new retail construction and 88,106 square feet of new living space constructed. Downtown welcomed the following new businesses: Gerhard's German Restaurant, The Musician's Hub, Rust and Stuff, GSATi, Oxide Fine Art and Florist Gallery, Pan Ector Industries, Serendipity on the Square, Seven Mile Cafe, Annie Girl Boutique, Authentic Yoga Life, Barefoot Apparel, Viet Bites, The Boyd Girl, Alex and Afton, with several more retail/restaurant sites expected to be completed by Spring of 2014. A -2 INDUSTRY AND BUSINESS Employer University of North Texas Denton Independent School District Peterbilt Motors — Headquarters and Plant Texas Woman's University Denton County Denton State School City of Demon Presbyterian Hospital of Demon Denton Regional Medical Center Labinal FEMA Thermadyne/Victor Equipment/Tweco Anderson Merchandisers Flowers Baking Company Jostens Sally Beauty International Headquarters University Behavioral Health of Denton Progressive Industries/ MHMR James Wood Auto Park Progressive Industries MHMR Mayday Manufacturing /Tailwind Tech CBS Mechanical Integrated Alliance LP Morrison Milling United Copper Industries Acme Brick Denton Rehab. and Nursing Center Bayport Pipeline Air Ride Transport Keller Williams Active USA Odyssey Aerospace U.S. Aviation Group Target Distribution Center Tetra Pack Skyview Living Center Center of Demon Shields Care Center Senior Care & Rehabilitation Center Safety Kleen Systems The Vintage Vintage retirement Community Wells Fargo Good Samaritan Lake Forest Village Mayhill Hospital Denton Good Samaritan Village Jim McNatt Toyota -Dodge General Telemarketing International Baxter Healthcare Schlumberger Ben E. Keith Beers Business Air /Jetworks Air Center Aldi Distribution Center DATCU E Instruction Fastenal Distribution Center Hulcher Services JetWorks North Texas Hospital McKissack Group Inc (1) Up to 1,100 during a disaster relief event. Exhibit 1 Major Employers Description Higher Education Education Diesel Trucks Higher Education Government Mental Healthcare Government Hospital/Healthcare Hospital/Healthcare Aircraft wiring harness manufacturer Regional HQ & Call Center Welding Equipment Distribution Bakery Class Ring Manufacturer Beauty Supply Distributor Hospital/Healthcare Product Fulfillment Services Car /Truck Sales /Service Product Fulfillment Services Aerospace Machined Parts Mechanical Contractor Call Center Flour Grain Mill Copper Wire Brick Manufacturing Retirement/Rehabilitation Pipeline Contractor Transporation Service Real Estate Automotive Transporter Jet Interior Manufacturing Flight instruction Perishable and frozen foods Aseptic Packaging Rehabilitation Longterm Care Facility Rehabilitation Care Facility Retirement/Rehabilitation Chemical Recycling Retirement/Nursing Home Retirement/Rehabilitation Financial Institution Retirement Center Hospital/Healthcare Retirement Center Vehicle Sales /Service Call Center Medical Equipment Manufacturing Oil Field Service Distributor FBO & Aircraft Sales, Paint & Interiors Food retailer Financial Institution Interactive Systems & Student Assmt. Industrial and construction supplies Railroad Emergency Response FBO and aircraft sales, paint and interiors Hospital/Healthcare Real Estate Source: City of Denton and Denton Chamber of Commerce Economic Development Offices. A -3 Approximate Number of Employees 8,887 3,300 2,100 1,787 1,554 1,500 1,400 1,074 911 700 612 (r> 600 450 450 450 450 310 302 300 240 225 220 200 200 196 185 180 180 175 170 166 165 151 150 150 150 150 145 140 140 140 134 130 130 125 125 120 115 105 103 101 100 100 100 100 100 100 100 100 Exhibit 1 Denton is proud to be home to nearly 59 companies and institutions that employ 100 or more people, several of them representing corporate, regional and international headquarters. Well over 100 companies that produce, manufacture, and distribute goods all over the world call Denton home. More than 4,500 companies choose to do business in Denton. With small, medium, and large businesses operating in a variety of industries, diversity is strength in Denton. Statistics show most of these workers are skilled and receive their training right here in Denton. ECONOMIC AND POPULATION GAINS ... Historical population totals from U.S. Census depict Denton's consistent population increases commensurate with Denton's steady economic growth. 1940 Census — 11,192 1950 Census — 21,345 1960 Census — 26,844 1970 Census — 39,874 1980 Census — 49,079 1990 Census — 66,270 2000 Census — 80,537 2010 Census — 113,383 Estimated 2014 Population is 119,158 (1) (1) City of Denton Population Estimate. The City's ascension toward a top economic position in Texas is attributable to the steady influence of governmental activity that includes the annual expansion of the two state - supported universities, and due to several desirable environmental factors. Denton is located in a rich agricultural, oil and gas production region; is part of the Dallas/Fort Worth Metroplex; has proximity to three of Texas' largest reservoirs (Lake Texoma is only 40 miles from Denton); a mild climate; and the influential aspects of social, cultural and educational advantages have prompted professional workers to select Denton as their residence. ECONOMIC RANKING ... The following data were taken from the U.S. Census Bureau's 2012 American Community Survey. % of Population Whose Age is: 786 0 -19 29.3% 20 -34 31.7% 35 -54 22.1% 55 -64 7.9% 65 and over 9.0% Number of Households 45,121 City of Denton Median Household Income 47,367 City of Denton Household Income $200,000+ 786 $100,000- $199,999 5,318 $50,000 - $99,999 13,582 $35,000 - $49,999 7,153 $25,000- 34,999 3,845 Less than or equal to $24,999 11,424 City of Denton Population by Occupation Agriculture, forestry, fishing and hunting, and mining 0.6% Construction 4.0% Manufacturing 8.0% Wholesale Trade 0.9% Retail trade 15.2% Transportation, warehousing, and utilities 4.6% Information 1.2% Finance and insurance, real estate rental and leasing 4.7% Professional, scientific, and management, and administrative and waste management services 8.9% Educational Services, and health care and social assistance 31.6% Arts, entertainment, and recreation, and accommodation, and food services 13.8% Other services, except public administration 3.0% Public Administration 3.4% Source: U. S. Census Bureau, 2012 American Community Survey, 1 year estimate. A -4 Exhibit 1 EMPLOYMENT /LABOR FORCE ... According to the Texas Workforce Commission, the December 2013 available workforce in Denton is 64,915. EDUCATION ... Denton is home to the University of North Texas, founded in 1890, and Texas Woman's University, founded in 1901. North Central Texas College, established in 1924, built an extension campus just outside Denton's extraterritorial jurisdiction (ETJ) in adjacent cities, Corinth and Flower Mound. The two universities and community college have a combined enrollment of more than 56,400 students and total employment of approximately 9,600 total employees. With an enrollment of over 36,221, the University of North Texas exceeds the combined enrollment of Southern Methodist University in Dallas, Texas Christian University in Fort Worth and Rice University in Houston. Texas Woman's University has an approximate enrollment of 12,422 in Denton with an additional 2,709 students attending in Dallas and Houston. The University of North Texas (UNT) campus comprises a land area of more than 875 acres that includes Discovery Park, UNT's 285 -acre research park. The University is among the nation's 30 largest public universities and offers 98 bachelor's, 82 master's and 34 doctoral degree programs; many nationally recognized. ENT maintains a low 23:1 student - faculty ratio more prevalent among private rather than public institutions. Named one of America's 100 Best College Buys for 14 consecutive years, ENT is additionally listed as a "Best in the West" college by The Princeton Review. Texas Woman's University (TWU), a major state - supported teaching and research institution, it's the nation's largest public university attended primarily by women, who comprise 90% of attending students. Through its seven schools and colleges, TWU offers 61 programs leading to a Bachelor's degree, 64 Master's degree fields, and Doctoral degrees in 23 specialization areas. TWU experienced a 2 percent growth in enrollment from 2012 to 2013 and was ranked among the nation's top 10 universities with the most diverse student populations by U.S. News and World Report in 2013. TWU's graduate programs in occupational therapy and physical therapy have ranked among the nation's 27 best by U.S. News and World Reports Best Graduate Schools for 6 consecutive years. College Measures ranked TWU second highest among Texas public universities in median first -year earnings of its bachelor's degree students and the university continues to be among the nation's leading providers of nurses and healthcare professionals. North Central Texas College (NCTC), established in 1924, offers Associate Degrees in a number of fields and core college requirements for students transferring to UNT and TWU to complete their Bachelor's degrees. The student population of NCTC's campuses in the adjacent cities of Corinth and Flower Mound is over 7,800. The administration anticipates the student population to increase to 12,000 in the next few years. NCTC serves the citizens of Denton with quality education by offering a broad scope of educational choices and offers the local business community educational options as well. The competitive need to keep employees current with modern technology and methodology is easier due to NCTC's customized training which teaches curriculum developed closely with business management to ensure individual company needs are met. In 2007 the college collaborated with regional gas drilling production companies experiencing a critical shortage in trained professionals to develop and launch NCTC's newest Associates Degree program in Gas Energy Production Management. NCTC partnered with General Electric in 2012 to provide skilled manufacturing welders for GE's new North American Locomotive Production facility south of Denton. Denton Independent School District (DISD) encompasses almost 180 square miles and continues to be one of north Texas' fastest - growing school districts. Over 25,588 students enrolled for the 2011 -2012 school year in the district's 36 schools that include 21 elementary schools (grades K -5), seven middle schools (6 -8), three high schools (9 -12), one advanced technology complex (11 -12), two early childhood centers, and two alternative schools. The past 10 years, the district has passed four bond packages totaling more than $939 million. Community support of the district is evident in the passage of these bond packages by 60 -80 percent passage rate. The district opened its 7a' middle school that incorporates new "Green" technologies. The district's "student centered" approach supports strong individualized instruction and smaller school size. DISD offers classes at each school for students who experience learning disabilities or handicaps. Counselors, speech and language specialists, psychologists and reading and diagnostic consultants are available for all grade levels. DISD offers a number of advanced placement credit classes and dual high school/college credit classes and its students routinely place among top recipients in state and national academic, fine arts, career technology, and athletic competitive events. The District's LaGrone Advanced Technology Complex offers state -of the -art facilities and training in nine advanced disciplines and serves as a model for the region and surrounding states. Denton State Supported Living Center (formerly Denton State School) is one of the country's most modern and progressive educational institutions for mentally- disabled Texas residents. This state - supported facility is located on a 200 -acre site paid for by Denton citizens. Present facilities include residences that accommodate over 500 residents, more than 20 buildings for physically handicapped individuals, and a 32 bed acute hospital with supporting facilities such as X -ray, laboratory, dental, and pharmaceutical. Additional buildings include a modern administration building, an academic building, laundry facility, chapel, maintenance shop and a warehouse. The school has a staff of 1,700 with an annual budget of over $86M. Denton Universities Expand ... Texas Woman's University (TWU) student enrollment at the University's home campus in Denton increased 80% from 2000 -2013 to 12,422. Fully 48% of students are enrolled in graduate programs. Similar growth at the University's Dallas and Houston satellite nursing campuses necessitated recent construction projects. A $40M TWU Institute of Health Sciences - Houston facility opened in August 2006 and a $56M TWU T. Boone Pickens Institute of Health Sciences- A -5 Exhibit 1 Dallas facility opened in February 2011. The University leads as a provider of critically needed health care professionals, boasting the state's largest undergraduate and graduate nursing programs. TWU is proud of its diversity; minority students comprise 50% of students. TWU is one of only 6 regional SPENCER (Science Education for New Civic Engagements and Responsibilities) Centers in the country. SPENCER is a comprehensive faculty development and science education project funded by the National Science Foundation. University of North Texas (UNT) ... Among the nation's top 50 schools for Hispanic and African American students, ENT has the largest residential campus in the North Texas Region and is the largest provider of online credit courses among Texas public universities. UNT's Discovery Park, a 285 -acre, 553,000 square foot facility is home to UNT's Engineering School and Center for Advanced Research and Technology (CART), one of the nation's premier materials science and engineering research facilities. CART provides researchers with a unique grouping of microscopes for nanotechnology research within several of the university's 15 research cluster areas, and for other critical advancement fields UNT's College of Engineering offers undergraduate and graduate programs in electrical engineering, materials science, computer science, engineering technology, and mechanical and energy engineering. A new $33.2M Life Sciences Building featuring open research laboratories that promote collaborative and interdisciplinary research was completed in 2010. The university's $60 million Gold LEED Certified Business Leadership Complex, focused on global economic and business disciplines, and $78M, Platinum LEED Certified, 30,000 seat stadium both completed in 2011. In summer 2013, the university began construction on a new LEED Certified $130 million Union with an opening date of June 2015. The facility will be built on a sustainable site and will utilize natural light and energy, renewable materials, resources and building efficiencies. UNT has estimated an enrollment growth to 43,315 students by 2020 and will construct an additional on- campus 500 -bed freshman student residential housing facility to open fall 2015. AGRICULTURE ... Northwestern Denton County is one of the more diversified agricultural areas in Texas. With soil types ranging from rich black to sandy loam, and good, soft artesian water, it is ideal for diversified farming and livestock. Principal crops are corn, wheat, oats, hay, grain sorghums and peanuts. Beef cattle, sheep, chickens and turkeys contribute a substantial and steady income annually to the farmers and ranchers of the County. A very significant concentration of valuable world champion horse farms east of the City's corporate boundaries provide a prosperous economic resource for the area. Products significant to the economy are horses, beef, eggs, wheat, grain sorghums, hay, and nursery crops. TRANSPORTATION ... Denton is located at the convergence of Interstate 35 East and Interstate 35 West on the north end of the Dallas /Fort Worth Metroplex, approximately 35 miles from the central business districts of both Dallas and Fort Worth. This location along the NAFTA super highway provides great access to points north and south, which has led to a number of distribution warehouse facilities choosing to locate in Denton. Additionally, Denton is located only 20 miles north of Dallas - Fort Worth International Airport (DEW), and both Dallas' Love Field Airport and Fort Worth's Meacham International Airport are in close proximity to Denton. Alliance Airport, located less than 15 miles southwest of Denton on Interstate 35 West provides access to a unique industrial airport and multimodal industrial park. Together, Alliance's access to highway, rail and air transportation offers an excellent opportunity for future industrial growth. The Texas Department of Transportation (TxDOT) entered into a development agreement with AGE Constructors in October 2013 to add additional general purpose lanes and managed toll lanes to a 28 mile corridor of Interstate 35 East from Interstate 635 in Dallas County to U.S. Highway 380 in Denton. Construction on the $1.4 billion project will begin in November 2013 and is scheduled to be completed by the first quarter of 2017. State and regional transportation officials expect the additional capacity will enhance mobility in the region, promote the regional economy by improving access to markets and improve air quality. Denton County Transportation Authority (DCTA) implemented regional passenger rail service in June 2011 between Carrollton and Denton, connecting Denton County passengers with the Dallas Area Rapid Transit (DART) service area via the Northwest Corridor Green Line. This connection also provides a link to Fort Worth through the Trinity Rail Express. In the summer of 2010, the Denton City Council approved the Denton Downtown Implementation Plan, which included zoning and development standards that, along with the implementation of commuter rail service has encouraged transit oriented development in the vicinity of the new rail station enhancing the vibrant music, cultural and retail landscape of Denton's downtown. DCTA has expanded the level of rail service they provide each year and provided more than 300,000 rides in 2013. The Kansas City Southern Railroad and the Union Pacific Railroad provide daily service to Denton. Full switching is available, providing direct access to all major markets across the nation. Greyhound /Trailways serves Denton through Dallas and Oklahoma City. Motor freight in Denton is included in the Dallas /Fort Worth commercial trade zone and is served by major freight carriers. BANKING ... There are 26 banks in Denton: Access First Capital; Bank of America; JPMorgan Chase; BBUA Compass Bank; Wells Fargo Bank; First Convenience; First State Bank; Provident Bank; Point Bank; First National Bank; Marqbank; Meridian Bank; State Bank and Trust; Inwood National Bank; Synergy; Northstar Bank; Washington Federal Savings; Towne Center Bank; DATCU Credit Union; Affiliated Bank; First United Bank & Trust; Legends Bank; Members' Choice Federal Credit Union; Pegasus Credit Union; State Farm Bank; and First United Bank with Denton's first "Banco" branch specializing in serving Denton's Hispanic community. A -6 Exhibit 1 GROWTH INDICES (1) New Construction Only, Includes Multi - Family as Commercial and Duplexes as Residential (2) Source: Texas Workforce Commission. MEDICAL ... Denton continued to strengthen its reputation as a regional medical destination serving north Texas and southern Oklahoma. The Heart Hospital Baylor Plano, the nation's No. I Cardiovascular Specialty Hospital based on cardiac surgery volume selected Denton for its only sister facility site, The Heart Hospital Baylor Denton. The hospital purchased Denton's North Texas Hospital in May 2013 and began a $20M million renovation that will add an additional 8,580 square feet of specialized surgical and recovery space to the existing 60,000 square foot facility. When completed in May 2014, The Heart Hospital Baylor Denton will become the areas only full- service hospital dedicated solely to heart and vascular health care and will include a comprehensive on -site Cardiovascular Research Institute. Denton Regional Medical Center is a 208 -bed full service hospital that serves the growing population of Denton, Wise, Cooke, and Montague Counties. The hospital offers a full- spectrum of healthcare including advanced open -heart surgery and neurosurgery programs, and is an accredited Chest Pain Center and Level III Trauma Center, ensuring expedient care to trauma patients in Denton and other North Texas communities. Since 2005, the hospital has opened a new $7 million, 13,500 square - foot day surgery center and a new hospital floor housing a 29 -bed, $19M progressive care unit. Denton Regional's Center for Cancer and Blood Disorders, a comprehensive cancer diagnostic and treatment center integrating education, nutrition, and rehabilitation services opened in 2008. In 2011, the hospital implemented its Institute for Advanced Surgery & Technology, utilizing the latest surgical technology including the da Vinci Robotic Surgery System and minimally invasive techniques. Texas Health Presbyterian Hospital of Denton (formerly Denton Community Hospital) celebrated the grand opening of its 272,538 square -foot, 255 -bed acute care, full service hospital and an 80,000 square -foot medical office building in 2005. The hospital expanded its Women's Center services in 2006 with the opening of a Level III Neonatal Intensive Care Unit serving Denton and its surrounding communities. The hospital was the first facility in Denton County to earn The Joint Commission's certification as a Primary Stroke Center in 2011. An 18 -bed Dedicated Pediatric Unit was opened in the hospital's existing facilities in 2013. Other recent new specialty hospitals include 44,000 square foot, $20 million Select Medical Rehabilitation Hospital, modeled after the renowned Kessler Institute for Rehabilitation that opened in 2008 and Integrity Transitional Hospital, a 38,500 square foot, $16 million dollar long -term acute care hospital that opened in 2007. Mayhill Hospital, a 40,000 square -foot private hospital specializing in adult and senior population behavioral care and one of the nation's only facilities to provide the top -rated Schick - Shadel substance abuse treatment opened in 2005. RECREATION ... Lake Ray Roberts, located approximately 8 miles northeast of the City's corporate boundary on the Elm Fork of the Trinity River, is a major water conservation and flood control facility of more than 799,600 acre -feet of storage that allows for an abundance of parks and other water and outdoor related recreational facilities. The nine mile Greenbelt Hike/Bike /Equestrian Trail, located between Lake Ray Roberts and Lake Lewisville, is a cooperative project made possible by the Army Corps of Engineers and the Cities of Denton and Dallas. Nearby Lake Lewisville, one of North Texas' largest lakes is one of Texas' most popular recreation areas. Lake Lewisville has a shoreline of 183 miles located entirely in Denton County. Lake Lewisville attracts over 3,000,000 visitors to its shores annually. The upper reaches of the lake are only about 3 miles east of the Denton city limits, while the dam is 15 miles from downtown Denton. Grapevine Lake, another large body of water created by the U.S. Army Corps of Engineers, is located in Denton and Tarrant Counties. The dam is 23 miles from Denton. Parks and recreational areas abound on the shores of Lake Ray Roberts, Lake Lewisville, and Grapevine Lake. Boating fishing, hunting, swimming and all water sports are the favorite recreational pastimes, which, because of this area's favorable climate, are in use the year round. The City of Denton Parks and Recreation Department and the Denton Independent School District have created a partnership to produce a signature water recreation attraction. The $12.16 million Waterworks Park opened in 2003 and features four water slides, a children's play pool, a 600 ft. long continuous flow tubing river, outdoor amphitheater, pavilions, a sand volleyball court and two indoor pools. The Hula Loop slide was recently added to the Water Park and an ultra violet light sanitizing system has been added to all of the outdoor pools. Other recently completed capital improvement projects include the renovation and expansion of the Senior Center, the addition of new pedestrian trails at Denia Park and Unicorn Lake, the construction of Briercliff Park, Specialist Earnest W. Dallas, Jr. Veterans Memorial Park and Wheeler Ridge Park, improvements to the courtyard at City Hall and to the playground at Quakertown Park and a complete reconstruction of Owsley Park. The renovation of the golf driving range in North Lakes Park is underway and will be completed soon. Property was recently purchased to expand both Carl Young, Sr. Park, E. J. Milam Park and 26 acres on the north side of North Lakes Park that will be used to construct four new adult soccer /rugby fields. The Parks and Recreation Department is also looking to the future with the purchase of a 196 acre park site that will eventually become the home of athletic fields, walking trails, and a large multi - generational recreation and fitness center. A -7 City State Fiscal Building Values (millions)(') Water Sewer Electric Unemployment Unemployment Year Commercial Residential Total Customers Customers Customers Rates (2) Rates (2) 2009 $132 $131 $ 263 30,288 28,674 45,153 5.96% 7.88% 2010 82 82 164 30,889 29,105 45,174 6.30% 8.00% 2011 204 62 266 31,222 29,520 46,241 5.70% 7.20% 2012 143 70 213 31,372 29,772 47,563 5.43% 6.79% 2013 91 121 212 31,837 30,103 49,264 5.04% 6.34% (1) New Construction Only, Includes Multi - Family as Commercial and Duplexes as Residential (2) Source: Texas Workforce Commission. MEDICAL ... Denton continued to strengthen its reputation as a regional medical destination serving north Texas and southern Oklahoma. The Heart Hospital Baylor Plano, the nation's No. I Cardiovascular Specialty Hospital based on cardiac surgery volume selected Denton for its only sister facility site, The Heart Hospital Baylor Denton. The hospital purchased Denton's North Texas Hospital in May 2013 and began a $20M million renovation that will add an additional 8,580 square feet of specialized surgical and recovery space to the existing 60,000 square foot facility. When completed in May 2014, The Heart Hospital Baylor Denton will become the areas only full- service hospital dedicated solely to heart and vascular health care and will include a comprehensive on -site Cardiovascular Research Institute. Denton Regional Medical Center is a 208 -bed full service hospital that serves the growing population of Denton, Wise, Cooke, and Montague Counties. The hospital offers a full- spectrum of healthcare including advanced open -heart surgery and neurosurgery programs, and is an accredited Chest Pain Center and Level III Trauma Center, ensuring expedient care to trauma patients in Denton and other North Texas communities. Since 2005, the hospital has opened a new $7 million, 13,500 square - foot day surgery center and a new hospital floor housing a 29 -bed, $19M progressive care unit. Denton Regional's Center for Cancer and Blood Disorders, a comprehensive cancer diagnostic and treatment center integrating education, nutrition, and rehabilitation services opened in 2008. In 2011, the hospital implemented its Institute for Advanced Surgery & Technology, utilizing the latest surgical technology including the da Vinci Robotic Surgery System and minimally invasive techniques. Texas Health Presbyterian Hospital of Denton (formerly Denton Community Hospital) celebrated the grand opening of its 272,538 square -foot, 255 -bed acute care, full service hospital and an 80,000 square -foot medical office building in 2005. The hospital expanded its Women's Center services in 2006 with the opening of a Level III Neonatal Intensive Care Unit serving Denton and its surrounding communities. The hospital was the first facility in Denton County to earn The Joint Commission's certification as a Primary Stroke Center in 2011. An 18 -bed Dedicated Pediatric Unit was opened in the hospital's existing facilities in 2013. Other recent new specialty hospitals include 44,000 square foot, $20 million Select Medical Rehabilitation Hospital, modeled after the renowned Kessler Institute for Rehabilitation that opened in 2008 and Integrity Transitional Hospital, a 38,500 square foot, $16 million dollar long -term acute care hospital that opened in 2007. Mayhill Hospital, a 40,000 square -foot private hospital specializing in adult and senior population behavioral care and one of the nation's only facilities to provide the top -rated Schick - Shadel substance abuse treatment opened in 2005. RECREATION ... Lake Ray Roberts, located approximately 8 miles northeast of the City's corporate boundary on the Elm Fork of the Trinity River, is a major water conservation and flood control facility of more than 799,600 acre -feet of storage that allows for an abundance of parks and other water and outdoor related recreational facilities. The nine mile Greenbelt Hike/Bike /Equestrian Trail, located between Lake Ray Roberts and Lake Lewisville, is a cooperative project made possible by the Army Corps of Engineers and the Cities of Denton and Dallas. Nearby Lake Lewisville, one of North Texas' largest lakes is one of Texas' most popular recreation areas. Lake Lewisville has a shoreline of 183 miles located entirely in Denton County. Lake Lewisville attracts over 3,000,000 visitors to its shores annually. The upper reaches of the lake are only about 3 miles east of the Denton city limits, while the dam is 15 miles from downtown Denton. Grapevine Lake, another large body of water created by the U.S. Army Corps of Engineers, is located in Denton and Tarrant Counties. The dam is 23 miles from Denton. Parks and recreational areas abound on the shores of Lake Ray Roberts, Lake Lewisville, and Grapevine Lake. Boating fishing, hunting, swimming and all water sports are the favorite recreational pastimes, which, because of this area's favorable climate, are in use the year round. The City of Denton Parks and Recreation Department and the Denton Independent School District have created a partnership to produce a signature water recreation attraction. The $12.16 million Waterworks Park opened in 2003 and features four water slides, a children's play pool, a 600 ft. long continuous flow tubing river, outdoor amphitheater, pavilions, a sand volleyball court and two indoor pools. The Hula Loop slide was recently added to the Water Park and an ultra violet light sanitizing system has been added to all of the outdoor pools. Other recently completed capital improvement projects include the renovation and expansion of the Senior Center, the addition of new pedestrian trails at Denia Park and Unicorn Lake, the construction of Briercliff Park, Specialist Earnest W. Dallas, Jr. Veterans Memorial Park and Wheeler Ridge Park, improvements to the courtyard at City Hall and to the playground at Quakertown Park and a complete reconstruction of Owsley Park. The renovation of the golf driving range in North Lakes Park is underway and will be completed soon. Property was recently purchased to expand both Carl Young, Sr. Park, E. J. Milam Park and 26 acres on the north side of North Lakes Park that will be used to construct four new adult soccer /rugby fields. The Parks and Recreation Department is also looking to the future with the purchase of a 196 acre park site that will eventually become the home of athletic fields, walking trails, and a large multi - generational recreation and fitness center. A -7 Exhibit 1 APPENDIX B EXCERPTS FROM THE CITY OF DENTON, TEXAS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended September 30, 2013 The information contained in this Appendix consists of excerpts from the City of Denton, Texas Comprehensive Annual Financial Report for the Year Ended September 30, 2013, and is not intended to be a complete statement of the City's financial condition. Reference is made to the complete Report for further information. Exhibit 1 APPENDIX C FORMS OF BOND COUNSEL'S OPINIONS Exhibit 2 s:Uegakour documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc ORDINANCE NO. 2014- AN ORDINANCE CONSIDERING ALL MATTERS INCIDENT AND RELATED TO THE ISSUANCE, SALE AND DELIVERY OF UP TO $94,500,000 IN PRINCIPAL AMOUNT OF "CITY OF DENTON CERTIFICATES OF OBLIGATION, SERIES 2014 "; AUTHORIZING THE ISSUANCE OF THE CERTIFICATES; DELEGATING THE AUTHORITY TO CERTAIN CITY OFFICIALS TO EXECUTE CERTAIN DOCUMENTS RELATING TO THE SALE OF THE CERTIFICATES; APPROVING AND AUTHORIZING INSTRUMENTS AND PROCEDURES RELATING TO SAID CERTIFICATES; ENACTING OTHER PROVISIONS RELATING TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton, Texas (the "Issuer "), deems it advisable to issue Certificates of Obligation in the amount of up to $94,500,000 for the purposes hereinafter set forth; and WHEREAS, the Certificates of Obligation hereinafter authorized and designated are to be issued and delivered for cash pursuant to Subchapter C of Chapter 271, Texas Local Government Code, Subchapter B, Chapter 1502, Texas Government Code and Chapter 1371, Texas Government Code; and WHEREAS, the City Council has heretofore passed two ordinances authorizing and directing the City Secretary to give notice of intention to issue Certificates of Obligation, and said notices have been duly published in a newspaper of general circulation in said Issuer, said newspaper being a "newspaper" as defined in ' 2051.044, Texas Government Code; and WHEREAS, the Issuer received no petition from the qualified electors of the Issuer protesting the issuance of such Certificates of Obligation; and WHEREAS, the Issuer is an "issuer" within the meaning of Section 1371.001(4)(P), Texas Government Code, having (i) a principal amount of at least $100 million in outstanding long -term indebtedness, in long -term indebtedness proposed to be issued, or in a combination of outstanding or proposed long -term indebtedness and (ii) some amount of long -term indebtedness outstanding or proposed to be issued that is rated in one of the four highest rating categories for long -term debt instruments by a nationally recognized rating agency for municipal securities, without regard to the effect of any credit agreement or other form of credit enhancement entered into in connection with the obligation; and WHEREAS, it is officially found, determined, and declared that the meeting at which this Ordinance has been adopted was open to the public and public notice of the time, place and subject matter of the public business to be considered and acted upon at said meeting, including this Ordinance, was given, all as required by the applicable provisions of Texas Government Code Chapter 551; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: Exhibit 2 sAlegal \our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc SECTION 1. RECITALS, AMOUNT, PURPOSE AND DESIGNATION OF THE CERTIFICATES. (a) The recitals set forth in the preamble hereof are incorporated herein and shall have the same force and effect as if set forth in this Section. (b) The term "Certificates" as used in this Ordinance shall mean and include collectively the certificate of obligation initially issued and delivered pursuant to this Ordinance (the "Initial Certificate ") and all substitute certificates of obligation exchanged therefor, as well as all other substitute certificates of obligation and replacement certificates of obligation issued pursuant hereto, and the term "Certificate" shall mean any of the Certificates. (c) The Certificates of Obligation of the City of Denton, Texas (the "Issuer ") are hereby authorized to be issued and delivered in the maximum aggregate principal amount of $94,500,000 for the purpose of paying all or a portion of the Issuer's contractual obligations incurred pursuant to contracts for the purchase, construction and acquisition of certain real and personal property, to wit: up to $75,000,000 in principal amount for the purpose of: (a) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the Issuer's waterworks and sewer system; (b) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the Issuer's electric light and power system; and also for the purpose of paying all or a portion of the Issuer's contractual obligations for professional services, including engineers, architects, attorneys, map makers, auditors, and financial advisors, in connection with said projects and said Certificates; and up to $19,500,000 in principal amount for the purpose of: (a) acquisition of vehicles and equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the Issuer's solid waste disposal system, including the acquisition of land for the City landfill; (b) renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating, venting and air conditioning equipment, roofing and flooring; (c) acquisition of vehicles and equipment for the fire, police, building inspections, animal services, streets and traffic control, facilities management, and parks and recreation departments; (d) constructing and improving streets, including installation of traffic signals; (e) acquiring, constructing, installing and equipping hangars for the municipal airport; (f) acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to the Civic Center Pool facilities; and (g) acquiring, constructing, installing and equipping replacement facility for Fire Station Number 2, including related site preparation; and also for the purpose of paying all or a portion of the Issuer's contractual obligations for professional services, including engineers, architects, attorneys, map makers, auditors, and financial advisors, in connection with said projects and said Certificates (collectively, the "Projects "). (d) Each Certificate issued pursuant to this Ordinance shall be designated: "CITY OF DENTON CERTIFICATE OF OBLIGATION, SERIES 2014," and initially there shall be issued, sold, and delivered hereunder fully registered certificates, without interest coupons, payable to the respective registered owners thereof (with the Initial Certificate being made payable to the 2 Exhibit 2 sAlegal \our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc Purchaser as described in Section 10 hereof), or to the registered assignee or assignees of said Certificates or any portion or portions thereof (in each case, the "Registered Owner "). The Certificates shall be in the respective principal amounts, shall be numbered, shall mature and be payable on the date or dates in each of the years and in the principal amounts, and shall bear interest to their respective dates of maturity or redemption prior to maturity at the rates per annum, as set forth in the Pricing Certificate. SECTION 2. DELEGATION TO PRICING OFFICER. (a) As authorized by Section 1371.053, Texas Government Code, as amended, the City Manager or an Assistant City Manager (the "Pricing Officer ") is hereby authorized to act on behalf of the Issuer in selling and delivering the Certificates and carrying out the other procedures specified in this Ordinance, including, determining the date of the Certificates, any additional or different designation or title by which the Certificates shall be known, the price at which the Certificates will be sold, the years in which the Certificates will mature, the principal amount to mature in each of such years, the rate of interest to be borne by each such maturity, the interest payment and record dates, the price and terms upon and at which the Certificates shall be subject to redemption prior to maturity at the option of the Issuer, as well as any mandatory sinking fund redemption provisions, and all other matters relating to the issuance, sale, and delivery of the Certificates, including without limitation, obtaining municipal bond insurance for all or any portion of the Certificates (including in connection therewith the execution of any commitment agreements, membership agreements in mutual insurance companies, and other similar agreements) and providing for the terms and provisions thereof applicable to the Certificates, all of which shall be specified in the Pricing Certificate; provided that: (i) the aggregate original principal amount of the Certificates shall not exceed the amount set forth in Section 1(c) hereof, (ii) the price to be paid for the Certificates shall not be less than 97% of the aggregate original principal amount thereof plus accrued interest thereon from its date to its delivery; (iii) the maximum stated maturity of the Certificates shall not exceed February 15, 2044; (iv) none of the Certificates shall bear interest at a rate greater than 5.25% per annum and the net effective interest rate on the Certificates shall not exceed 5.00 %; (v) the delegation made hereby shall expire if not exercised by the Pricing Officer on or prior to October 15, 2014; and (vi) on or prior to delivery, the Certificates shall be rated by a nationally recognized rating agency for municipal securities in one of the four highest categories for long -term obligations. tj Exhibit 2 s: \legal \our documents \opinions \2014 \co ordinance 3 -25 -14 cmp.doc (b) In establishing the aggregate principal amount of the Certificates, the Pricing Officer shall establish an amount not exceeding the aggregate principal amount authorized in Subsection (a) hereof, and not exceeding the respective amounts set forth in Section 1(c) hereof for each group of Projects, which shall be sufficient in amount to provide for the purposes for which the Certificates are authorized and to pay costs of issuing the Certificates. The Certificates shall be sold with and subject to such terms as set forth in the Pricing Certificate. SECTION 3. CHARACTERISTICS OF THE CERTIFICATES. (a) Registration Transfer, Conversion and Exchange, The Issuer shall keep or cause to be kept at the principal corporate trust office of The Bank of New York Mellon Trust Company, National Association, Dallas, Texas, (the "Paying Agent /Registrar "), books or records for the registration of the transfer, conversion and exchange of the Certificates (the "Registration Books "), and the Issuer hereby appoints the Paying Agent /Registrar as its registrar and transfer agent to keep such books or records and make such registrations of transfers, conversions and exchanges under such reasonable regulations as the Issuer and Paying Agent /Registrar may prescribe; and the Paying Agent /Registrar shall make such registrations, transfers, conversions and exchanges as herein provided. The Paying Agent /Registrar shall obtain and record in the Registration Books the address of the Registered Owner of each Certificate to which payments with respect to the Certificates shall be mailed, as herein provided; but it shall be the duty of each Registered Owner to notify the Paying Agent /Registrar in writing of the address to which payments shall be mailed, and such interest payments shall not be mailed unless such notice has been given. The Issuer shall have the right to inspect the Registration Books during regular business hours of the Paying Agent /Registrar, but otherwise the Paying Agent/Registrar shall keep the Registration Books confidential and, unless otherwise required by law, shall not permit their inspection by any other entity. The Issuer shall pay the Paying Agent /Registrar's standard or customary fees and charges for making such registration, transfer, conversion, exchange and delivery of a substitute Certificate or Certificates. Registration of assignments, transfers, conversions and exchanges of Certificates shall be made in the manner provided and with the effect stated in the FORM OF CERTIFICATE set forth in this Ordinance. Each substitute Certificate shall bear a letter and /or number to distinguish it from each other Certificate. Except as provided in Section 3(c) of this Ordinance, an authorized representative of the Paying Agent /Registrar shall, before the delivery of any such Certificate, date and manually sign said Certificate, and no such Certificate shall be deemed to be issued or outstanding unless such Certificate is so executed. The Paying Agent /Registrar promptly shall cancel all paid Certificates and Certificates surrendered for conversion and exchange. No additional ordinances, orders, or resolutions need be passed or adopted by the governing body of the Issuer or any other body or person so as to accomplish the foregoing conversion and exchange of any Certificate or portion thereof, and the Paying Agent /Registrar shall provide for the printing, execution, and delivery of the substitute Certificates in the manner prescribed herein, and said Certificates shall be printed or typed on paper of customary weight and strength. Pursuant to Chapter 1201, Government Code, as amended, the duty of conversion and exchange of Certificates as aforesaid is hereby imposed upon the Paying Agent /Registrar, and, upon the execution of said Certificate, the converted and exchanged Certificate shall be valid, incontestable, and enforceable in the same manner and with the same effect as the Certificates that initially were issued and delivered 4 Exhibit 2 sAlegal \our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc pursuant to this Ordinance, approved by the Attorney General of the State of Texas (the "Attorney General ") and registered by the Comptroller of Public Accounts of the State of Texas (the "Comptroller "). (b) Payment of Certificates and Interest. The Issuer hereby further appoints the Paying Agent /Registrar to act as the paying agent for paying the principal of and interest on the Certificates, all as provided in this Ordinance. The Paying Agent /Registrar shall keep proper records of all payments made by the Issuer and the Paying Agent /Registrar with respect to the Certificates, and of all conversions and exchanges of Certificates, and all replacements of Certificates, as provided in this Ordinance. However, in the event of a nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date ") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the Issuer. Notice of the past due interest shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first -class postage prepaid, to the address of each Registered Owner appearing on the Registration Books at the close of business on the last business day next preceding the date of mailing of such notice. (c) In General. The Certificates (i) shall be issued in fully registered form, without interest coupons, with the principal of and interest on such Certificates to be payable only to the Registered Owners thereof, (ii) may or shall be redeemed prior to their scheduled maturities (notice of which shall be given to the Paying Agent /Registrar by the Issuer at least 45 days prior to any such redemption date), (iii) may be converted and exchanged for other Certificates, (iv) may be transferred and assigned, (v) shall have the characteristics, (vi) shall be signed, sealed, executed and authenticated, (vii) the principal of and interest on the Certificates shall be payable, and (viii) shall be administered and the Paying Agent /Registrar and the Issuer shall have certain duties and responsibilities with respect to the Certificates, all as provided, and in the manner and to the effect as required or indicated, in the FORM OF CERTIFICATE set forth in this Ordinance (as modified in the Pricing Certificate). The Initial Certificate is not required to be, and shall not be, authenticated by the Paying Agent /Registrar, but on each substitute Certificate issued in conversion of and exchange for any Certificate or Certificates issued under this Ordinance the Paying Agent /Registrar shall execute the Paying Agent /Registrar's Authentication Certificate, in the form set forth in the FORM OF CERTIFICATE. (d) Paying Agent/Registrar for the Certificates. The Issuer covenants with the Registered Owners of the Certificates that at all times while the Certificates are outstanding the Issuer will provide a competent and legally qualified bank, trust company, financial institution, or other entity to act as and perform the services of Paying Agent /Registrar for the Certificates under this Ordinance, and that the Paying Agent /Registrar will be a single entity. The Issuer reserves the right to, and may, at its option, change the Paying Agent /Registrar upon not less than 120 days written notice to the Paying Agent /Registrar, to be effective not later than 60 days prior to the next principal or interest payment date after such notice. In the event that the entity at any time acting as Paying Agent /Registrar (or its successor by merger, acquisition, or other method) should resign or otherwise cease to act as such, the Issuer covenants that promptly it will appoint a competent and legally qualified bank, trust company, financial institution, or other agency to act as Paying Agent /Registrar under this Ordinance. Upon any change in the Paying 5 Exhibit 2 sAlegal\our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc Agent /Registrar, the previous Paying Agent /Registrar promptly shall transfer and deliver the Registration Books (or a copy thereof), along with all other pertinent books and records relating to the Certificates, to the new Paying Agent /Registrar designated and appointed by the Issuer. Upon any change in the Paying Agent /Registrar, the Issuer promptly will cause a written notice thereof to be sent by the new Paying Agent /Registrar to each Registered Owner of the Certificates, by United States mail, first -class postage prepaid, which notice also shall give the address of the new Paying Agent /Registrar. By accepting the position and performing as such, each Paying Agent /Registrar shall be deemed to have agreed to the provisions of this Ordinance, and a certified copy of this Ordinance shall be delivered to each Paying Agent /Registrar. (e) Authentication. Except as provided below, no Certificate shall be valid or obligatory for any purpose or be entitled to any security or benefit of this Ordinance unless and until there appears thereon the Paying Agent /Registrar's Authentication Certificate substantially in the form provided in this Ordinance, duly authenticated by manual execution of the Paying Agent/Registrar. It shall not be required that the same authorized representative of the Paying Agent /Registrar sign the Paying Agent /Registrar's Authentication Certificate on all of the Certificates. In lieu of the executed Paying Agent /Registrar's Authentication Certificate described above, the Initial Certificate delivered on the closing date shall have attached thereto the Comptroller's Registration Certificate substantially in the form provided in this Ordinance, manually executed by the Comptroller or by her duly authorized agent, which certificate shall be evidence that the Initial Certificate has been duly approved by the Attorney General and that it is a valid and binding obligation of the Issuer, and has been registered by the Comptroller. (f) Book - Entry- OnlySystem. The Certificates issued in exchange for the Initial Certificate shall be initially issued in the form of a separate single fully registered Certificate for each of the maturities thereof. Upon initial issuance, the ownership of each such Certificate shall be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ( "DTC "), and except as provided in subsection (g) hereof, all of the outstanding Certificates shall be registered in the name of Cede & Co., as nominee of DTC. With respect to Certificates registered in the name of Cede & Co., as nominee of DTC, the Issuer and the Paying Agent /Registrar shall have no responsibility or obligation to any securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations on whose behalf DTC was created ( "DTC Participant ") to hold securities to facilitate the clearance and settlement of securities transactions among DTC Participants or to any person on behalf of whom such a DTC Participant holds an interest in the Certificates. Without limiting the immediately preceding sentence, the Issuer and the Paying Agent /Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any DTC Participant with respect to any ownership interest in the Certificates, (ii) the delivery to any DTC Participant or any other person, other than a Registered Owner of Certificates, as shown on the Registration Books, of any notice with respect to the Certificates, or (iii) the payment to any DTC Participant or any other person, other than a Registered Owner of Certificates, as shown in the Registration Books of any amount with respect to principal of or interest on the Certificates. Notwithstanding any other provision of this Ordinance to the contrary, the Issuer and the Paying Agent /Registrar shall be entitled to treat and consider the person in whose name each Certificate is registered in the Registration Books as the absolute Z Exhibit 2 sAlegal \our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc owner of such Certificate for the purpose of payment of principal and interest with respect to such Certificate, for the purpose of registering transfers with respect to such Certificate, and for all other purposes whatsoever. The Paying Agent /Registrar shall pay all principal of and interest on the Certificates only to or upon the order of the Registered Owners, as shown in the Registration Books as provided in this Ordinance, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the Issuer's obligations with respect to payment of principal of and interest on the Certificates to the extent of the sum or sums so paid. No person other than a Registered Owner, as shown in the Registration Books, shall receive a Certificate evidencing the obligation of the Issuer to make payments of principal and interest pursuant to this Ordinance. Upon delivery by DTC to the Paying Agent /Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in this Ordinance with respect to interest checks being mailed to the Registered Owner at the close of business on the Record Date, the words "Cede & Co." in this Ordinance shall refer to such new nominee of DTC. The previous execution and delivery of the Blanket Issuer Letter of Representations with respect to obligations of the Issuer is hereby ratified and confirmed; and the provisions thereof shall be fully applicable to the Certificates. (g) Successor Securities Depository; Transfers Outside Book - Entry System. In the event that the Issuer determines that DTC is incapable of discharging its responsibilities described herein and in the Blanket Issuer Letter of Representations to DTC or that it is in the best interest of the beneficial owners of the Certificates that they be able to obtain certificated Certificates, the Issuer shall (i) appoint a successor securities depository, qualified to act as such under Section 17A of the Securities and Exchange Act of 1934, as amended, notify DTC and DTC Participants of the appointment of such successor securities depository and transfer one or more separate Certificates to such successor securities depository or (ii) notify DTC and DTC Participants of the availability through DTC of Certificates and transfer one or more separate certificated Certificates to DTC Participants having Certificates credited to their DTC accounts. In such event, the Certificates shall no longer be restricted to being registered in the Registration Books in the name of Cede & Co., as nominee of DTC, but may be registered in the name of the successor securities depository, or its nominee, or in whatever name or names Registered Owners transferring or exchanging Certificates shall designate, in accordance with the provisions of this Ordinance. (h) Payments to Cede & Co. Notwithstanding any other provision of this Ordinance to the contrary, so long as any Certificate is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of and interest on such Certificate and all notices with respect to such Certificate shall be made and given, respectively, in the manner provided in the Blanket Issuer Letter of Representations to DTC. (i) Cancellation of Initial Certificate. On the closing date, the Initial Certificate, representing the entire principal amount of the Certificates, payable in stated installments to the Purchaser designated in Section 10 or its designee, executed by manual or facsimile signature of the Mayor and City Secretary of the Issuer, approved by the Attorney General, and registered and manually signed by the Comptroller, will be delivered to such Purchaser or its designee. Upon 7 Exhibit 2 sAlegal \our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc payment for the Initial Certificate, the Paying Agent /Registrar shall cancel the Initial Certificate and deliver to DTC on behalf of such Purchaser one registered definitive Certificate for each year of maturity of the Certificates, in the aggregate principal amount of all of the Certificates for such maturity. To the extent that the Paying Agent /Registrar is eligible to participate in DTC's FAST System, pursuant to an agreement between the Paying Agent /Registrar and DTC, the Paying Agent /Registrar shall hold the definitive Certificates in safekeeping for DTC. 0) Conditional Notice of Redemption. With respect to any optional redemption of the Certificates, unless the prerequisites to such redemption required by this Ordinance have been met and moneys sufficient to pay the principal of and premium, if any, and interest on the Certificates to be redeemed shall have been received by the Paying Agent /Registrar prior to the giving of such notice of redemption, such notice shall state that said redemption may, at the option of the Issuer, be conditional upon the satisfaction of such prerequisites and receipt of such moneys by the Paying Agent /Registrar on or prior to the date fixed for such redemption, or upon any prerequisite set forth in such notice of redemption. If a conditional notice of redemption is given and such prerequisites to the redemption and sufficient moneys are not received, such notice shall be of no force and effect, the Issuer shall not redeem such Certificates and the Paying Agent /Registrar shall give notice, in the manner in which the notice of redemption was given, to the effect that the Certificates have not been redeemed. SECTION 4. FORM OF CERTIFICATES. The form of the Certificates, including the form of Paying Agent /Registrar's Authentication Certificate, the form of Assignment and the form of Comptroller's Registration Certificate to be attached to the Certificates initially issued and delivered pursuant to this Ordinance, shall be, respectively, substantially as follows, with such appropriate variations, omissions or insertions as are permitted or required by this Ordinance, and with the Form of Certificate to be modified pursuant to, and completed with information set forth in, the Pricing Certificate. (a) [Form of Certificate] NO. R- UNITED STATES OF AMERICA PRINCIPAL STATE OF TEXAS AMOUNT CITY OF DENTON $ CERTIFICATE OF OBLIGATION SERIES 2014 Interest Rate Dated Date Maturity Date CUSIP No. 20_ February 15, 20_ REGISTERED OWNER: PRINCIPAL AMOUNT: 8 DOLLARS Exhibit 2 sAlegal \our d0cuments \opinions\2014 \co ordinance 3 -25 -14 cmp.doc ON THE MATURITY DATE specified above, the City of Denton, in Denton County, Texas (the "Issuer "), being a political subdivision and municipal corporation of the State of Texas, hereby promises to pay to the Registered Owner specified above, or registered assigns (hereinafter called the "Registered Owner "), on the Maturity Date specified above, the Principal Amount specified above. The Issuer promises to pay interest on the unpaid principal amount hereof (calculated on the basis of a 360 -day year of twelve 30 -day months) from 2014 at the Interest Rate per annum specified above. Interest is payable on _, 20_ and semiannually on each and thereafter to the Maturity Date specified above, or the date of redemption prior to maturity; except, if this Certificate is required to be authenticated and the date of its authentication is later than the first Record Date (hereinafter defined), such Principal Amount shall bear interest from the interest payment date next preceding the date of authentication, unless such date of authentication is after any Record Date but on or before the next following interest payment date, in which case such principal amount shall bear interest from such next following interest payment date; provided, however, that if on the date of authentication hereof the interest on the Certificate or Certificates, if any, for which this Certificate is being exchanged is due but has not been paid, then this Certificate shall bear interest from the date to which such interest has been paid in full. THE PRINCIPAL OF AND INTEREST ON this Certificate are payable in lawful money of the United States of America, without exchange or collection charges. The principal of this Certificate shall be paid to the Registered Owner hereof upon presentation and surrender of this Certificate at maturity, or upon the date fixed for its redemption prior to maturity, at the principal corporate trust office of The Bank of New York Mellon Trust Company, National Association, Dallas, Texas, which is the "Paying Agent /Registrar" for this Certificate. The payment of interest on this Certificate shall be made by the Paying Agent /Registrar to the Registered Owner hereof on each interest payment date by check or draft, dated as of such interest payment date, drawn by the Paying Agent /Registrar on, and payable solely from, funds of the Issuer required by the ordinance authorizing the issuance of this Certificate (the "Certificate Ordinance ") to be on deposit with the Paying Agent /Registrar for such purpose as hereinafter provided; and such check or draft shall be sent by the Paying Agent /Registrar by United States mail, first -class postage prepaid, on each such interest payment date, to the Registered Owner hereof, at its address as it appeared on the last business day of the month preceding each such date (the "Record Date ") on the Registration Books kept by the Paying Agent /Registrar, as hereinafter described. In addition, interest may be paid by such other method, acceptable to the Paying Agent /Registrar, requested by, and at the risk and expense of, the Registered Owner. In the event of a non - payment of interest on a scheduled payment date, and for 30 days thereafter, a new record date for such interest payment (a "Special Record Date ") will be established by the Paying Agent /Registrar, if and when funds for the payment of such interest have been received from the Issuer. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five business days prior to the Special Record Date by United States mail, first -class postage prepaid, to the address of each Registered Owner of a Certificate appearing on the Registration Books at the close of business on the last business day next preceding the date of mailing of such notice. ANY ACCRUED INTEREST due at maturity or upon the redemption of this Certificate prior to maturity as provided herein shall be paid to the Registered Owner upon presentation and I Exhibit 2 s: \legal \our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc surrender of this Certificate for redemption and payment at the principal corporate trust office of the Paying Agent /Registrar. The Issuer covenants with the Registered Owner of this Certificate that on or before each principal payment date, interest payment date, and accrued interest payment date for this Certificate it will make available to the Paying Agent /Registrar, from the "Interest and Sinking Fund" created by the Certificate Ordinance, the amounts required to provide for the payment, in immediately available funds, of all principal of and interest on the Certificates, when due. IF THE DATE for the payment of the principal of or interest on this Certificate shall be a Saturday, Sunday, a legal holiday or a day on which banking institutions in the city where the principal corporate trust office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day that is not such a Saturday, Sunday, legal holiday or day on which banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. THIS CERTIFICATE is one of a series of Certificates dated _, 2014, authorized in accordance with the Constitution and laws of the State of Texas in the principal amount of $[ J for the purpose of paying all or a portion of the Issuer's contractual obligations incurred pursuant to contracts for the purchase, construction and acquisition of certain real and personal property, to wit: $[ for the purpose of: (a) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the Issuer's waterworks and sewer system; (b) acquisition of equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the Issuer's electric light and power system; and also for the purpose of paying all or a portion of the Issuer's contractual obligations for professional services, including engineers, architects, attorneys, map makers, auditors, and financial advisors, in connection with said projects and said Certificates; and $[ ] for the purpose of: (a) acquisition of vehicles and equipment for, and acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to, the Issuer's solid waste disposal system, including the acquisition of land for the City landfill; (b) renovations to, and equipping of, existing municipal buildings, including the acquisition and installation of replacement heating, venting and air conditioning equipment, roofing and flooring; (c) acquisition of vehicles and equipment for the fire, police, building inspections, animal services, streets and traffic control, facilities management, and parks and recreation departments; (d) constructing and improving streets, including installation of traffic signals; (e) acquiring, constructing, installing and equipping hangars for the municipal airport; (f) acquiring, constructing, installing and equipping additions, extensions, renovations and improvements to the Civic Center Pool facilities; and (g) acquiring, constructing, installing and equipping replacement facility for Fire Station Number 2, including related site preparation; and also for the purpose of paying all or a portion of the Issuer's contractual obligations for professional services, including engineers, architects, attorneys, map makers, auditors, and financial advisors, in connection with said projects and said Certificates. ON , 20_, or on any date thereafter, the Certificates of this series may be redeemed prior to their scheduled maturities, at the option of the Issuer, with funds derived from III] Exhibit 2 sAlegal\ our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc any available and lawful source, as a whole, or in part, and, if in part, the particular Certificates, or portions thereof, to be redeemed shall be selected and designated by the Issuer (provided that a portion of a Certificate may be redeemed only in an integral multiple of $5,000), at a redemption price equal to the principal amount to be redeemed plus accrued interest to the date fixed for redemption. [THE CERTIFICATES scheduled to mature on in the years and ( the "Term Certificates ") are subject to scheduled mandatory redemption by the Paying Agent /Registrar by lot, or by any other customary method that results in a random selection, at a price equal to the principal amount thereof, plus accrued interest to the redemption date, out of moneys available for such purpose in the interest and sinking fund for the Certificates, on the dates and in the respective principal amounts, set forth in the following schedule: Term Certificate Maturity: February 15, 20_ Principal Mandatory Redemption Amount Date February 15,20 $ February 15,20 February 15,20_ February 15,20 (maturity) Term Certificate Maturity: February 15,20_ Mandatory Redemption Date February 15,20 February 15,20 February 15,20_ February 15,20 (maturity) k Principal Amount The principal amount of Term Certificates of a stated maturity required to be redeemed on any mandatory redemption date pursuant to the operation of the mandatory sinking fund redemption provisions shall be reduced, at the option of the Issuer, by the principal amount of any Term Certificates of the same maturity which, at least 50 days prior to a mandatory redemption date (1) shall have been acquired by the Issuer at a price not exceeding the principal amount of such Term Certificates plus accrued interest to the date of purchase thereof, and delivered to the Paying Agent/Registrar for cancellation, (2) shall have been purchased and canceled by the Paying Agent /Registrar at the request of the Issuer at a price not exceeding the principal amount of such Term Certificates plus accrued interest to the date of purchase, or (3) shall have been redeemed pursuant to the optional redemption provisions and not theretofore credited against a mandatory redemption requirement.] AT LEAST 30 days prior to the date fixed for any redemption of Certificates or portions thereof prior to maturity a written notice of such redemption shall be sent by the Paying Agent /Registrar by United States mail, first -class postage prepaid, to the Registered Owner of each Certificate to be redeemed at its address as it appeared on the 45th day prior to such redemption date; provided, however, that the failure of the Registered Owner to receive such notice, or any defect therein or in the sending or mailing thereof, shall not affect the validity or effectiveness of the proceedings for the redemption of any Certificate. By the date fixed for any such redemption due provision shall be made with the Paying Agent/Registrar for the payment of the required redemption price for the Certificates or portions thereof that are to be so redeemed. Exhibit 2 s: \legal \our d0cn111ents \0pinions\2014 \co ordinance 3 -25 -14 cmp.doc If such written notice of redemption is sent and if due provision for such payment is made, all as provided above, the Certificates or portions thereof that are to be so redeemed thereby automatically shall be treated as redeemed prior to their scheduled maturities, and they shall not bear interest after the date fixed for redemption, and they shall not be regarded as being outstanding except for the right of the Registered Owner to receive the redemption price from the Paying Agent /Registrar out of the funds provided for such payment. If a portion of any Certificate shall be redeemed, a substitute Certificate or Certificates having the same maturity date, bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000, at the written request of the Registered Owner, and in aggregate principal amount equal to the unredeemed portion thereof, will be issued to the Registered Owner upon the surrender thereof for cancellation, at the expense of the Issuer, all as provided in the Certificate Ordinance. IF AT THE TIME OF MAILING of notice of optional redemption there shall not have either been deposited with the Paying Agent /Registrar or legally authorized escrow agent immediately available funds sufficient to redeem all the Certificates called for redemption, such notice may state that it is conditional, and is subject to the deposit of the redemption moneys with the Paying Agent /Registrar or legally authorized escrow agent at or prior to the redemption date or any prerequisite set forth in such notice of redemption. If such redemption is not effectuated, the Paying Agent /Registrar shall, within five days thereafter, give notice in the manner in which the notice of redemption was given that such moneys were not so received or such prerequisites were not met and shall rescind the redemption. ALL CERTIFICATES OF THIS SERIES are issuable solely as fully registered certificates, without interest coupons, in the denomination of any integral multiple of $5,000. As provided in the Certificate Ordinance, this Certificate may, at the request of the Registered Owner or the assignee or assignees hereof, be assigned, transferred, converted into and exchanged for a like aggregate principal amount of fully registered Certificates, without interest coupons, payable to the appropriate Registered Owner, assignee or assignees, as the case may be, having the same denomination or denominations in any integral multiple of $5,000 as requested in writing by the appropriate Registered Owner, assignee or assignees, as the case may be, upon surrender of this Certificate to the Paying Agent /Registrar for cancellation, all in accordance with the form and procedures set forth in the Certificate Ordinance. Among other requirements for such assignment and transfer, this Certificate must be presented and surrendered to the Paying Agent /Registrar, together with proper instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent /Registrar, evidencing assignment of this Certificate or any portion or portions hereof in any integral multiple of $5,000 to the assignee or assignees in whose name or names this Certificate or any such portion or portions hereof is or are to be registered. The Form of Assignment printed or endorsed on this Certificate may be executed by the Registered Owner to evidence the assignment hereof, but such method is not exclusive, and other instruments of assignment satisfactory to the Paying Agent /Registrar may be used to evidence the assignment of this Certificate or any portion or portions hereof from time to time by the Registered Owner. The Paying Agent /Registrar's reasonable standard or customary fees and charges for assigning, transferring, converting and exchanging any Certificate or portion thereof will be paid by the Issuer. In any circumstance, any taxes or governmental charges required to be paid with respect thereto shall be paid by the one requesting such assignment, transfer, 12 Exhibit 2 sAlegal \our documents \opinions \2014 \co ordinance 3 -25 -14 cmp.doc conversion or exchange, as a condition precedent to the exercise of such privilege. The Paying Agent /Registrar shall not be required to make any such transfer, conversion, or exchange (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or (ii) with respect to any Certificate or any portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. IN THE EVENT any Paying Agent /Registrar for the Certificates is changed by the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Certificate Ordinance that it promptly will appoint a competent and legally qualified substitute therefor, and cause written notice thereof to be mailed to the Registered Owners of the Certificates. IT IS HEREBY certified, recited and covenanted that this Certificate has been duly and validly authorized, issued and delivered; that all acts, conditions and things required or proper to be performed, exist and be done precedent to or in the authorization, issuance and delivery of this Certificate have been performed, existed and been done in accordance with law; and that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Certificate, as such interest comes due and such principal matures, have been levied and ordered to be levied against all taxable property in said Issuer, and have been pledged for such payment, within the limit prescribed by law; and that this Certificate is additionally secured by and payable from a limited pledge (not to exceed $1,000) of the surplus revenues derived by the Issuer from the ownership and operation of the Issuer's Utility System (consisting of the Issuer's combined waterworks system, sanitary sewer system, and electric light and power system), all as provided in the Certificate Ordinance. THE ISSUER HAS RESERVED THE RIGHT to issue, in accordance with law, and in accordance with the Certificate Ordinance, other and additional obligations, and to enter into contracts, payable from ad valorem taxes and /or revenues of the Issuer's Utility System, on a parity with, or with respect to said revenues, superior in lien to, this Certificate. THE ISSUER HAS RESERVED THE RIGHT to amend the Certificate Ordinance as provided therein, and under some (but not all) circumstances amendments thereto must be approved by the Registered Owners of a majority in aggregate principal amount of the outstanding Certificates. BY BECOMING the Registered Owner of this Certificate, the Registered Owner thereby acknowledges all of the terms and provisions of the Certificate Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Certificate Ordinance is duly recorded and available for inspection in the official minutes and records of the governing body of the Issuer, and agrees that the terms and provisions of this Certificate and the Certificate Ordinance constitute a contract between each Registered Owner hereof and the Issuer. 13 Exhibit 2 sAlegal \our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc IN WITNESS WHEREOF, the Issuer has caused this Certificate to be signed with the manual or facsimile signature of the Mayor of the Issuer (or in the Mayor's absence, of the Major Pro -Tem) and countersigned with the manual or facsimile signature of the City Secretary of said Issuer, and has caused the official seal of the Issuer to be duly impressed, or placed in facsimile, on this Certificate. (signature) (signature_ City Secretary Mayor (SEAL) [INSERT BOND INSURANCE LEGEND, IF ANY] (b) [Form of Paying Agent /Registrar's Authentication Certificate] PAYING AGENT /REGISTRAR'S AUTHENTICATION CERTIFICATE (To be executed if this Certificate is not accompanied by an executed Comptroller's Registration Certificate) It is hereby certified that this Certificate has been issued under the provisions of the Certificate Ordinance described in the text of this Certificate; and that this Certificate has been issued in conversion or replacement of, or in exchange for, a certificate, certificates, or a portion of a certificate or certificates of a series that originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. Dated: The Bank of New York Mellon Trust Company, National Association, Dallas, Texas Paying Agent /Registrar Bv: Authorized Representative E Exhibit 2 sAlegal \our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc (c) [Form of Assignment] ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto Please insert Social Security or Taxpayer Identification Number of Transferee (Please print or typewrite name and address, including zip code, of Transferee.) the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints , attorney, to register the transfer of the within Certificate on the books kept for registration thereof, with full power of substitution in the premises. Dated: Signature Guaranteed: NOTICE: Signature(s) must be guaranteed by an eligible guarantor institution participating in a securities transfer association recognized signature guarantee program. NOTICE: The signature above must correspond with the name of the Registered Owner as it appears upon the front of this certificate in every particular, without alteration or enlargement or any change whatsoever. (d) [Form of Comptroller's Registration Certificate] COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this Certificate of Obligation has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and that this Certificate of Obligation has been registered by the Comptroller of Public Accounts of the State of Texas. Witness my signature and seal this (COMPTROLLER'S SEAL) Comptroller of Public Accounts of the State of Texas 15 Exhibit 2 sAlegal \our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc (e) [Initial Certificate Insertions] (i) The Initial Certificate shall be in the form set forth in paragraph (a) of this Section, except that: A. immediately under the name of the Certificate, the headings "Interest Rate" and "Maturity Date" shall both be completed with the words "As shown below" and "CUSIP No. " shall be deleted. B. the first paragraph shall be deleted and the following will be inserted: "THE CITY OF DENTON, TEXAS, in Denton County, Texas (the "Issuer "), being a political subdivision and municipal corporation of the State of Texas, hereby promises to pay to the Registered Owner specified above, or registered assigns (hereinafter called the "Registered Owner "), on February 15 in each of the years, in the principal installments and bearing interest at the per annum rates set forth in the following schedule: Years Principal Amounts Interest Rates (Information from Pricing Certificate to be inserted) The Issuer promises to pay interest on the unpaid principal amount hereof (calculated on the basis of a 360 -day year of twelve 30 -day months) from _, 2014 at the respective Interest Rate per annum specified above. Interest is payable on _, 20_ and semiannually on each and thereafter to the date of payment of the principal installment specified above, or the date of redemption prior to maturity; except, that if this Certificate is required to be authenticated and the date of its authentication is later than the first Record Date (hereinafter defined), such Principal Amount shall bear interest from the interest payment date next preceding the date of authentication, unless such date of authentication is after any Record Date but on or before the next following interest payment date, in which case such principal amount shall bear interest from such next following interest payment date; provided, however, that if on the date of authentication hereof the interest on the Certificate or Certificates, if any, for which this Certificate is being exchanged is due but has not been paid, then this Certificate shall bear interest from the date to which such interest has been paid in full." C. The Initial Certificate shall be numbered "T -l." Section 5. INTEREST AND SINKING FUND; SURPLUS REVENUES. (a) A special Interest and Sinking Fund (the "Interest and Sinking Fund ") is hereby created solely for the benefit of the Certificates, and the Interest and Sinking Fund shall be established and maintained by the Issuer at an official depository bank of the Issuer. The Interest and Sinking Fund shall be kept separate and apart from all other funds and accounts of the Issuer, and shall be used only for paying the interest on and principal of the Certificates. All ad valorem taxes levied and collected for and on account of the Certificates, together with any accrued E Exhibit 2 Olegal\our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc interest received upon sale of the Certificates, shall be deposited, as collected, to the credit of the Interest and Sinking Fund. During each year while any of the Certificates or interest thereon are outstanding and unpaid, the governing body of the Issuer shall compute and ascertain a rate and amount of ad valorem tax which will be sufficient to raise and produce the money required to pay the interest on the Certificates as such interest becomes due, and to provide and maintain a sinking fund adequate to pay the principal of its Certificates as such principal matures or is scheduled for redemption (but never less than 2% of the original principal amount of the Certificates as a sinking fund each year). Said tax shall be based on the latest approval tax rolls of the Issuer, with full.allowance being made for tax delinquencies and the cost of tax collection. Said rate and amount of ad valorem tax is hereby levied, and is hereby ordered to be levied, against all taxable property in the Issuer for each year while any of the Certificates or interest thereon are outstanding and unpaid; and said tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest and Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of the Certificates, as such interest comes due and such principal matures or is scheduled for redemption, are hereby pledged for such payment, within the limit prescribed by law. (b) The Certificates are additionally secured by revenues derived by the Issuer from the ownership and operation of the Issuer's Utility System (consisting of its combined waterworks system, sanitary sewer system, and electric light and power system) that remain after the payment of all maintenance and operation expenses thereof, and all debt service, reserve and other requirements in connection with all of the Issuer's revenue obligations (now or hereafter outstanding) or contractual obligations (now or hereafter existing) which are payable from all or any part of the net revenues of the Issuer's Utility System, constituting Surplus Revenues", not to exceed $1,000. The Issuer shall deposit such Surplus Revenues to the credit of the Interest and Sinking Fund created pursuant to this Section, to the extent necessary to pay the principal and interest on the Certificates. Notwithstanding the requirements of this Section, if Surplus Revenues or other lawfully available moneys of the Issuer are actually on deposit or budgeted and appropriated to be deposited in the Interest and Sinking Fund in advance of the time when ad valorem taxes are scheduled to be levied for any year, then the amount of taxes that otherwise would have been required to be levied pursuant to subsection (a) of this Section may be reduced to the extent and by the amount of the Surplus Revenues or other lawfully available funds then on deposit or budgeted and appropriated to be deposited in the Interest and Sinking Fund. If Surplus Revenues are budgeted and appropriated for deposit into the Interest and Sinking Fund, the Issuer: (i) shall transfer and deposit in the Interest and Sinking Fund each month an amount of not less than 1 /12th of the annual debt service on the Certificates to be paid from Surplus Revenues until the amount on deposit in the Interest and Sinking Fund equals the amount required for annual debt service on the Certificates; (ii) shall establish, adopt and maintain an annual budget that provides for either the monthly deposit of sufficient Surplus Revenues and /or tax revenues, the monthly deposit of any other legally available funds on hand at the time of the adoption of the annual budget, or a combination thereof, into the Interest and Sinking Fund for the repayment of the Certificates; and 17 Exhibit 2 sAlegal \our documents \opinions\2014 \co ordinance 3 -25-14 cmp.doe (iii) shall at all times maintain and collect sufficient Utility System rates and charges in conjunction with any other legally available funds that, after payment of the costs of operating and maintaining the Utility System, produce revenues in an amount not less than the debt service requirements of all outstanding Utility System revenue bonds of the Issuer and other obligations of the Issuer which are secured in whole or in part by a pledge of revenues of the Utility System and for which the Issuer is budgeting the repayment of such obligations from the revenues of the Utility System, or the Issuer shall provide documentation which evidences the levy of an ad valorem tax rate dedicated to the Interest and Sinking Fund, in conjunction with any other legally available funds except Utility System rates and charges, sufficient for the repayment of Utility System debt service requirements. (c) Chapter 1208, Texas Government Code, applies to the issuance of the Certificates and the pledge of the taxes and Surplus Revenues granted by the Issuer under this Section and Section 9, respectively, and is therefore valid, effective, and perfected. Should Texas law be amended at any time while the Certificates are outstanding and unpaid, the result of such amendment being that the pledge of the taxes and Surplus Revenues granted by the Issuer under this Section is to be subject to the filing requirements of Chapter 9, Texas Business & Commerce Code, in order to preserve to the Registered Owners of the Certificates a security interest in said pledge, the Issuer agrees to take such measures as it determines are reasonable and necessary under Texas law to comply with the applicable provisions of Chapter 9, Texas Business & Commerce Code and enable a filing of a security interest in said pledge to occur. SECTION 6. DEFEASANCE OF CERTIFICATES. (a) Any Certificate and the interest thereon shall be deemed to be paid, retired and no longer outstanding (a "Defeased Certificate ") within the meaning of this Ordinance, except to the extent provided in subsection (d) of this Section, when payment of the principal of such Certificate, plus interest thereon to the due date (whether such due date be by reason of maturity or otherwise) either (i) shall have been made or caused to be made in accordance with the terms thereof, or (ii) shall have been provided for on or before such due date by irrevocably depositing with or making available to the Paying Agent /Registrar in accordance with an escrow agreement or other instrument (the "Future Escrow Agreement ") for such payment (1) lawful money of the United States of America sufficient to make such payment or (2) Government Obligations that mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money to provide for such payment, and when proper arrangements have been made by the Issuer with the Paying Agent /Registrar for the payment of its services until all Defeased Certificates shall have become due and payable. At such time as a Certificate shall be deemed to be a Defeased Certificate hereunder, as aforesaid, such Certificate and the interest thereon shall no longer be secured by, payable from, or entitled to the benefits of, the ad valorem taxes herein levied and pledged as provided in this Ordinance, and such principal and interest shall be payable solely from such money or Government Obligations. Notwithstanding any other provision of this Ordinance to the contrary, it is hereby provided that any determination not to redeem Defeased Certificates that is made in conjunction with the payment arrangements specified in Subsection (a)(i) or (ii) of this Section shall not be 18 Exhibit 2 sAlegal \our documents \opi1ions\2014 \co ordinance 3 -25 -14 cmp.doc irrevocable, provided that: (1) in the proceedings providing for such payment arrangements, the Issuer expressly reserves the right to call the Defeased Certificates for redemption; (2) gives notice of the reservation of that right to the Registered Owners of the Defeased Certificates immediately following the making of the payment arrangements; and (3) directs that notice of the reservation be included in any redemption notices that it authorizes. (b) Any moneys so deposited with the Paying Agent /Registrar may at the written direction of the Issuer be invested in Government Obligations, maturing in the amounts and times as hereinbefore set forth, and all income from such Government Obligations received by the Paying Agent /Registrar that is not required for the payment of the Certificates and interest thereon, with respect to which such money has been so deposited, shall be turned over to the Issuer, or deposited as directed in writing by the Issuer. Any Future Escrow Agreement pursuant to which the money and /or Government Obligations are held for the payment of Defeased Certificates may contain provisions permitting the investment or reinvestment of such moneys in Govermnent Obligations or the substitution of other Government Obligations upon the satisfaction of the requirements specified in Subsection (a)(i) or (ii) of this Section. All income from such Government Obligations received by the Paying Agent /Registrar which is not required for the payment of the Defeased Certificates, with respect to which such money has been so deposited, shall be remitted to the Issuer or deposited as directed in writing by the Issuer. (c) The term "Government Obligations" means any securities and obligations now or hereafter authorized by state law that are eligible to discharge obligations such as the Certificates, including (i) direct, noncallable obligations of the United States of America, including obligations that are unconditionally guaranteed by the United States of America., (ii) noncallable obligations of an agency or instrumentality of the United States of America, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that, on the date the governing body of the Issuer adopts or approves the proceedings authorizing the financial arrangements, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent, and (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that, on the date the governing body of the Issuer adopts or approves the proceedings authorizing the financial arrangements, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent. (d) Until all Defeased Certificates shall have become due and payable, the Paying Agent/Registrar shall perform the services of Paying Agent /Registrar for such Defeased Certificates the same as if they had not been defeased, and the Issuer shall make proper arrangements to provide and pay for such services as required by this Ordinance. (e) In the event that the Issuer elects to defease less than all of the principal amount of Certificates of a maturity, the Paying Agent /Registrar shall select, or cause to be selected, such amount of Certificates by such random method as it deems fair and appropriate. IM, Exhibit 2 sAlegal \our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc SECTION 7. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED CERTIFICATES. (a) Replacement Certificates. In the event any outstanding Certificate is damaged, mutilated, lost, stolen or destroyed, the Paying Agent /Registrar shall cause to be printed, executed and delivered, a new Certificate of the same principal amount, maturity and interest rate, as the damaged, mutilated, lost, stolen or destroyed Certificate, in replacement for such Certificate in the manner hereinafter provided. (b) Application for Replacement Certificates. Application for replacement of damaged, mutilated, lost, stolen or destroyed Certificates shall be made by the Registered Owner thereof to the Paying Agent /Registrar. In every case of loss, theft or destruction of a Certificate, the Registered Owner applying for a replacement Certificate shall furnish to the Issuer and to the Paying Agent /Registrar such security or indemnity as may be required by them to save each of them harmless from any loss or damage with respect thereto. Also, in every case of loss, theft or destruction of a Certificate, the Registered Owner shall furnish to the Issuer and to the Paying Agent /Registrar evidence to their satisfaction of the loss, theft or destruction of such Certificate, as the case may be. In every case of damage or mutilation of a Certificate, the Registered Owner shall surrender to the Paying Agent /Registrar for cancellation the Certificate so damaged or mutilated. (c) No Default Occurred. Notwithstanding the foregoing provisions of this Ordinance, in the event any such Certificate shall have matured, and no default has occurred that is then continuing in the payment of the principal of, redemption premium, if any, or interest on the Certificate, the Issuer may authorize the payment of the same (without surrender thereof except in the case of a damaged or mutilated Certificate) instead of issuing a replacement Certificate, provided security or indemnity is furnished as above provided in this Section. (d) Charge for Issuing Replacement Certificates. Prior to the issuance of any replacement Certificate, the Paying Agent /Registrar shall charge the Registered Owner of such Certificate with all legal, printing, and other expenses in connection therewith. Every replacement Certificate issued pursuant to the provisions of this Section by virtue of the fact that any Certificate is lost, stolen or destroyed shall constitute a contractual obligation of the Issuer whether or not the lost, stolen or destroyed Certificate shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and proportionately with any and all other Certificates duly issued under this Ordinance. (e) Authority for Issuing, Replacement Certificates. In accordance with Sec. 1206.022, Government Code, this Section 7 of this Ordinance shall constitute authority for the issuance of any such replacement Certificate without necessity of further action by the governing body of the Issuer or any other body or person, and the duty of the replacement of such Certificates is hereby authorized and imposed upon the Paying Agent /Registrar, and the Paying Agent /Registrar shall authenticate and deliver such Certificates in the form and manner and with the effect, as provided in Section 3(a) of this Ordinance for Certificates issued in conversion and exchange for other Certificates. 20 Exhibit 2 sAlegal \our documents \opinions \2014 \co ordinance 3 -25 -14 cmp.doc SECTION 8. CUSTODY, APPROVAL, AND REGISTRATION OF CERTIFICATES; BOND COUNSEL'S OPINION; CUSIP NUMBERS AND CONTINGENT INSURANCE PROVISION, IF OBTAINED; ENGAGEMENT OF BOND COUNSEL. (a) The Mayor of the Issuer is hereby authorized to have control of the Initial Certificate and all necessary records and proceedings pertaining to the Initial Certificate pending its delivery and its investigation, examination, and approval by the Attorney General, and its registration by the Comptroller. Upon registration of the Initial Certificate said Comptroller (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate attached to such Certificate, and the seal of said Comptroller shall be impressed, or placed in facsimile, on such Certificate. The approving legal opinion of the Issuer's Bond Counsel and the assigned CUSIP numbers may, at the option of the Issuer, be printed on the Certificates issued and delivered under this Ordinance, but neither shall have any legal effect, and shall be solely for the convenience and information of the Registered Owners of the Certificates. In addition, if bond insurance is obtained, the Certificates may bear an appropriate legend as provided by the insurer. (b) The obligation of the Purchaser to accept delivery of the Certificates is subject to the Purchaser being furnished with the final, approving opinion of McCall, Parkhurst & Horton L.L.P., bond counsel to the Issuer, which opinion shall be dated as of and delivered on the date of initial delivery of the Certificates to the Purchaser. The engagement of such firm as bond counsel to the Issuer in connection with the issuance, sale and delivery of the Certificates is hereby approved and confirmed. The execution and delivery of an engagement letter between the Issuer and such firm, with respect to such services as bond counsel, is hereby authorized in such form as may be approved by the Mayor, and the Mayor is hereby authorized to execute such engagement letter. SECTION 9. COVENANTS REGARDING TAX EXEMPTION OF INTEREST ON THE CERTIFICATES. (a) Covenants. The Issuer covenants to take any action necessary to assure, or refrain from any action that would adversely affect, the treatment of the Certificates as obligations described in section 103 of the Internal Revenue Code of 1986, as amended (the "Code "), the interest on which is not includable in the "gross income" of the holder for purposes of federal income taxation. In furtherance thereof, the Issuer covenants as follows: (1) to take any action to assure that no more than 10 percent of the proceeds of the Certificates (less amounts deposited to a reserve fund, if any) are used for any private business use," as defined in section 141(b)(6) of the Code or, if more than 10 percent of the proceeds or the projects financed therewith are so used, such amounts, whether or not received by the Issuer, with respect to such private business use, do not, under the terms of this Ordinance or any underlying arrangement, directly or indirectly, secure or provide for the payment of more than 10 percent of the debt service on the Certificates, in contravention of section 141(b)(2) of the Code; 21 Exhibit 2 sAlegal\ our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc (2) to take any action to assure that in the event that the "private business use" described in subsection (1) hereof exceeds 5 percent of the proceeds of the Certificates or the projects financed therewith (less amounts deposited into a reserve fund, if any) then the amount in excess of 5 percent is used for a "private business use" that is "related" and not "disproportionate," within the meaning of section 141(b)(3) of the Code, to the governmental use; (3) to take any action to assure that no amount that is greater than the lesser of $5,000,000, or 5 percent of the proceeds of the Certificates (less amounts deposited into a reserve fund, if any) is directly or indirectly used to finance loans to persons, other than state or local governmental units, in contravention of section 141(c) of the Code; (4) to refrain from taking any action that would otherwise result in the Certificates being treated as "private activity bonds" within the meaning of section 141(b) of the Code; (5) to refrain from taking any action that would result in the Certificates being "federally guaranteed" within the meaning of section 149(b) of the Code; (6) to refrain from using any portion of the proceeds of the Certificates, directly or indirectly, to acquire or to replace funds that were used, directly or indirectly, to acquire investment property (as defined in section 148(b)(2) of the Code) that produces a materially higher yield over the term of the Certificates, other than investment property acquired with B (A) proceeds of the Certificates invested for a reasonable temporary period of 3 years or less or, in the case of a refunding bond, for a period of 30 days or less until such proceeds are needed for the purpose for which the bonds are issued, (B) amounts invested in a bona fide debt service fund, within the meaning of section 1.148 -1(b) of the rules and regulations of the United States Department of the Treasury ( "Treasury Regulations "), and (C) amounts deposited in any reasonably required reserve or replacement fund to the extent such amounts do not exceed 10 percent of the proceeds of the Certificates; (7) to otherwise restrict the use of the proceeds of the Certificates or amounts treated as proceeds of the Certificates, as may be necessary, so that the Certificates do not otherwise contravene the requirements of section 148 of the Code (relating to arbitrage) and, to the extent applicable, section 149(d) of the Code (relating to advance refundings); and (8) to pay to the United States of America at least once during each five -year period (beginning on the date of delivery of the Certificates) an amount that is at least equal to 90 percent of the "Excess Earnings," within the meaning of section 148(0 of the Code and to pay to the United States of America, not later than 60 days after the Certificates have been 22 Exhibit 2 sAlegal \our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc paid in full, 100 percent of the amount then required to be paid as a result of Excess Earnings under section 148(f) of the Code. (b) Rebate Fund. In order to facilitate compliance with the above covenant (a)(8), a "Rebate Fund" is hereby established by the Issuer for the sole benefit of the United States of America, and such Rebate Fund shall not be subject to the claim of any other person, including without limitation the Certificateholders. The Rebate Fund is established for the additional purpose of compliance with section 148 of the Code. (c) Use of Proceeds. For purposes of the foregoing covenants (a)(1) and (a)(2), the Issuer understands that the term "proceeds" includes "disposition proceeds" as defined in the Treasury Regulations and, in the case of refunding bonds, transferred proceeds (if any) and proceeds of the refunded bonds expended prior to the date of issuance of the Certificates. It is the understanding of the Issuer that the covenants contained herein are intended to assure compliance with the Code and any regulations or rulings promulgated by the United States Department of the Treasury pursuant thereto. In the event that regulations or rulings are hereafter promulgated that modify or expand provisions of the Code, as applicable to the Certificates, the Issuer will not be required to comply with any covenant contained herein to the extent that such failure to comply, in the opinion of nationally recognized bond counsel, will not adversely affect the exemption from federal income taxation of interest on the Certificates under section 103 of the Code. In the event that regulations or rulings are hereafter promulgated that impose additional requirements applicable to the Certificates, the Issuer agrees to comply with the additional requirements to the extent necessary, in the opinion of nationally recognized bond counsel, to preserve the exemption from federal income taxation of interest on the Certificates under section 103 of the Code. In furtherance of such intention, the Issuer hereby authorizes and directs the Mayor or the Pricing Officer to execute any documents, certificates or reports required by the Code and to make such elections, on behalf of the Issuer, that may be permitted by the Code as are consistent with the purpose for the issuance of the Certificates. (d) Allocation of and Limitation on Expenditures for the Projects. The Issuer covenants to account for the expenditure of sale proceeds and investment earnings to be used for the construction and acquisition of the Projects on its books and records by allocating proceeds to expenditures within 18 months of the later of the date that (1) the expenditure is made, or (2) the Projects are completed. The foregoing notwithstanding, the Issuer shall not expend proceeds of the sale of the Certificates or investment earnings thereon more than 60 days after the earlier of (1) the fifth anniversary of the delivery of the Certificates, or (2) the date the Certificates are retired, unless the Issuer obtains an opinion of nationally- recognized bond counsel that such expenditure will not adversely affect the status, for federal income tax purposes, of the Certificates or the interest thereon. For purposes hereof, the Issuer shall not be obligated to comply with this covenant if it obtains an opinion that such failure to comply will not adversely affect the excludability for federal income tax purposes from gross income of the interest. (e) Disposition of Projects. The Issuer covenants that the Projects will not be sold or otherwise disposed in a transaction resulting in the receipt by the Issuer of cash or other compensation, unless the Issuer obtains an opinion of nationally- recognized bond counsel that such sale or other disposition will not adversely affect the tax - exempt status of the Certificates. 23 Exhibit 2 sAlegal \our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc For purposes of the foregoing, the portion of the property comprising personal property and disposed in the ordinary course shall not be treated as a transaction resulting in the receipt of cash or other compensation. For purposes hereof, the Issuer shall not be obligated to comply with this covenant if it obtains a legal opinion that such failure to comply will not adversely affect the excludability for federal income tax proposes from gross income of the interest. (f) Reimbursement. This Ordinance is intended to satisfy the official intent requirements set forth in section 1.150 -2 of the Treasury Regulations. SECTION 10. SALE OF CERTIFICATES AND APPROVAL OF OFFICIAL STATEMENT; FURTHER PROCEDURES. (a) The Certificates shall be sold and delivered subject to the provisions of Section 1 and Section 2 hereof through a negotiated sale, competitive sale or private placement and pursuant to the terms and provisions of a purchase contract or a notice of sale and official bid form (in either case, the "Purchase Agreement "), the terms and provisions of which are to be determined by the Pricing Officer in accordance with Section 2 hereof, and in which the purchaser or purchasers of the Certificates (the "Purchaser ") shall be designated. The Pricing Officer is hereby authorized to execute and deliver the Purchase Agreement for an on behalf of the Issuer. The Certificates shall initially be registered in the name of the Purchaser or its designee. (b) The Issuer hereby approves the form and content of the draft preliminary official statement relating to the Certificates and any addenda, supplement or amendment thereto, and approves the distribution of such preliminary official statement in the reoffering of the Certificates by the Purchaser in final form, with such changes therein or additions thereto as the Pricing Officer may deem advisable. The Pricing Officer is hereby authorized, in the name and on behalf of the Issuer, to approve, distribute, and deliver a final preliminary official statement and a final official statement relating to the Certificates to be used by the Purchaser in the marketing of the Certificates. (c) The Pricing Officer is authorized, in connection with effecting the sale of the Certificates, to obtain from a municipal bond insurance company so designated in the Pricing Certificate (the "Insurer ") a municipal bond insurance policy (the "Insurance Policy ") in support of the Certificates. To that end, should the Pricing Officer exercise such authority and commit the Issuer to obtain a municipal bond insurance policy, for so long as the Insurance Policy is in effect, the requirements of the Insurer relating to the issuance of the Insurance Policy as set forth in the Pricing Certificate are incorporated by reference into this Ordinance and made a part hereof for all purposes, notwithstanding any other provision of this Ordinance to the contrary. The Pricing Officer shall have the authority to execute any documents to effect the issuance of the Insurance Policy by the Insurer, including commitment agreements, membership agreements in mutual insurance companies and other similar agreements. (d) The Mayor and Mayor Pro Tem, the City Manager, Pricing Officer and City Secretary and all other officers, employees and agents of the Issuer, and each of them, shall be and they are hereby expressly authorized, empowered and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowledge and deliver in the name and 24 Exhibit 2 sAlegal \our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc under the corporate seal and on behalf of the Issuer a Paying Agent /Registrar Agreement with the Paying Agent /Registrar and all other instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Ordinance, the Pricing Certificate, the Certificates, the sale of the Certificates, any Purchase Agreement and the Official Statement. In case any officer whose signature shall appear on any Certificate shall cease to be such officer before the delivery of such Certificate, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. SECTION It. INTEREST EARNINGS ON CERTIFICATE PROCEEDS. Interest earnings derived from the investment of proceeds from the sale of the Certificates issued for the Projects shall be used along with other Certificate proceeds for the Projects; provided that after completion of such purpose, if any of such interest earnings remain on hand, such interest earnings shall be deposited in the Interest and Sinking Fund. It is further provided, however, that any interest earnings on Certificate proceeds that are required to be rebated to the United States of America pursuant to Section 9 hereof in order to prevent the Certificates from being arbitrage bonds shall be so rebated and not considered as interest earnings for the purposes of this Section. SECTION 12. CONSTRUCTION FUND OR ACCOUNT; INVESTMENTS. (a) The proceeds of sale of the Certificates, excluding any accrued interest received from the initial purchaser of the Certificates and any other amounts to be deposited into the Interest and Sinking Fund, and amounts to pay costs of issuance of the Certificates, shall be deposited in one or more construction funds or accounts for use, along with any investment earnings thereon, by the Issuer for payment of all lawful costs associated with the acquisition and construction of the Projects as hereinbefore provided. Upon payment of all such costs, any moneys remaining on deposit in said funds or accounts, including investment earnings, shall be transferred to the Interest and Sinking fund. Amounts so deposited to the Interest and Sinking Fund shall be used in the manner described in Section 5 of this Ordinance. (b) The Issuer may invest proceeds of the Certificates (including investment earnings thereon) issued for the Projects and amounts deposited into the Interest and Sinking Fund in investments authorized by the Public Funds Investment Act, Chapter 2256, Texas Government Code, as amended; provided, however, that the Issuer hereby covenants that the proceeds of the sale of the Certificates will be used as soon as practicable for the purposes for which the Certificates are issued. (c) All deposits authorized or required by this Ordinance shall be secured to the fullest extent required by law for the security of public funds. SECTION 13. COMPLIANCE WITH RULE 15c2 -12. (a) Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: "MSRB" means the Municipal Securities Rulemaking Board. 25 Exhibit 2 sAlegal \our documents \opi1ions\2014 \co ordinance 3 -25 -14 cmp.doc "Rule" means SEC Rule 15c2 -12, as amended from time to time. "SEC" means the United States Securities and Exchange Commission. (b) Annual Reports. (i) The Issuer shall provide annually to the MSRB, in a designated electronic format as prescribed by the MSRB, within six months after the end of each fiscal year ending in or after 2014, financial information and operating data with respect to the Issuer of the general type included in the final Official Statement authorized by Section 10 of this Ordinance, being the information set forth in the Pricing Certificate. Any financial statements so to be provided shall be (1) prepared in accordance with the accounting principles described in the financial statement appended to the Official Statement, or such other accounting principles as the Issuer may be required to employ from time to time pursuant to state law or regulation, and (2) audited, if the Issuer commissions an audit of such statements and the audit is completed within the period during which they must be provided. If the audit of such financial statements is not completed within such period, then the Issuer shall provide unaudited financial statements within such period, and audited financial statements for the applicable fiscal year to the MSRB, when and if the audit report on such statements become available. All documents provided to the MSRB pursuant to this Section shall be accompanied by identifying information as prescribed by the MSRB. (ii) If the Issuer changes its fiscal year, it will notify the MSRB of the change (and of the date of the new fiscal year end) prior to the next date by which the Issuer otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to the MSRB or filed with the SEC. (c) Event Notices. (i) The Issuer shall notify the MSRB in an electronic format as prescribed by the MSRB, in a timely manner (but not in excess of ten business days after the occurrence of the event) of any of the following events with respect to the Certificates, if such event is material within the meaning of the federal securities laws: 1. Non - payment related defaults; 2. Modifications to rights of holders of the Certificates; 3. Certificate calls; 4. Release, substitution, or sale of property securing repayment of the Certificates; 5. The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry FM Exhibit 2 sAlegal \our documents \opinions\2014 \co ordinance 3 -25-14 cmp.doc into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms; 6. Appointment of a successor or additional trustee or the change of name of a trustee. (ii) The Issuer shall notify the MSRB in an electronic format as prescribed by the MSRB, in a timely manner (but not in excess of ten business days after the occurrence of the event) of any of the following events with respect to the Certificates, without regard to whether such event is considered material within the meaning of the federal securities laws: 1. Principal and interest payment delinquencies; 2. Unscheduled draws on debt service reserves reflecting financial difficulties; 3. Unscheduled draws on credit enhancements reflecting financial difficulties; 4. Substitution of credit or liquidity providers, or their failure to perform; 5. Adverse tax opinions or the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701 BTEB) or other material notices or determinations with respect to the tax - exempt status of the Certificates, or other material events affecting the tax - exempt status of the Certificates; 6. Tender offers; 7. Defeasances; 8. Rating changes; 9. Bankruptcy, insolvency, receivership or similar event of an obligated person. (iii) The Issuer shall notify the MSRB, in a timely manner, of any failure by the Issuer to provide financial information or operating data in accordance with subsection (b) of this Section by the time required by such subsection. (d) Limitations Disclaimers and Amendments. (i) The Issuer shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the Issuer remains an "obligated person" with respect to the Certificates within the meaning of the Rule, except that the Issuer in any event will give notice of any deposit made in accordance with this Ordinance or applicable law that causes the Certificates no longer to be outstanding. (ii) The provisions of this Section are for the sole benefit of the Registered Owners and beneficial owners of the Certificates, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The Issuer undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the Issuer's financial results, condition, or 27 Exhibit 2 sAlegal \our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The Issuer does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Certificates at any future date. (iii) UNDER NO CIRCUMSTANCES SHALL THE ISSUER BE LIABLE TO THE REGISTERED OWNER OR BENEFICIAL OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE ISSUER, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. (iv) No default by the Issuer in observing or performing its obligations under this Section shall comprise a breach of or default under this Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the Issuer under federal and state securities laws. (v) The provisions of this Section may be amended by the Issuer from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the Issuer, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Certificates in the primary offering of the Certificates in compliance with the Rule, taking into account any amendments or interpretations of the Rule since such offering as well as such changed circumstances and (2) either (a) the Registered Owners of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the outstanding Certificates consent to such amendment or (b) a person that is unaffiliated with the Issuer (such as nationally recognized bond counsel) determined that such amendment will not materially impair the interest of the Registered Owners and beneficial owners of the Certificates. The Issuer may also amend or repeal the provisions of this continuing disclosure agreement if the SEC amends or repeals the applicable provision of the Rule or a court of final jurisdiction enters judgment that such provisions of the Rule are invalid, but only if and to the extent that the provisions of this sentence would not prevent an underwriter from lawfully purchasing or selling Certificates in the primary offering of the Certificates. If the Issuer so amends the provisions of this Section, it shall include with any amended financial information or operating data next provided in accordance with subsection (b) of this Section an explanation, in narrative form, of the reason for the amendment and of the impact of any change in the type of financial information or operating data so provided. (e) Amendment of the Rule. The provisions of this Section shall be revised by the Pricing Officer to reflect the requirements of the Rule if the Rule is amended after the adoption of this Ordinance but prior to the delivery of the Certificates so as to permit an underwriter to purchase 28 Exhibit 2 sAlegal \our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc or sell Certificates in the primary offering of the Certificates in compliance with the Rule. Any such revisions shall be set forth in the Pricing Certificate and are incorporated by reference into this Ordinance and made a part hereof for all purposes, notwithstanding any other provision of this Ordinance to the contrary. SECTION 14. METHOD OF AMENDMENT. The Issuer hereby reserves the right to amend this Ordinance subject to the following terms and conditions, to -wit: (a) The Issuer may from time to time, without the consent of any holder, except as otherwise required by paragraph (b) below, amend or supplement this Ordinance in order to (i) cure any ambiguity, defect or omission in this Ordinance that does not materially adversely affect the interests of the holders, (ii) grant additional rights or security for the benefit of the holders, (iii) add events of default as shall not be inconsistent with the provisions of this Ordinance and that shall not materially adversely affect the interests of the holders, (iv) qualify this Ordinance under the Trust Indenture Act of 1939, as amended, or corresponding provisions of federal laws from time to time in effect, or (v) make such other provisions in regard to matters or questions arising under this Ordinance as shall not be inconsistent with the provisions of this Ordinance and that shall not in the opinion of the Issuer's Bond Counsel materially adversely affect the interests of the holders. (b) Except as provided in paragraph (a) above, the holders of Certificates aggregating in principal amount a majority of the aggregate principal amount of then outstanding Certificates that are the subject of a proposed amendment shall have the right from time to time to approve any amendment hereto that may be deemed necessary or desirable by the Issuer; provided, however, that without the consent of 100% of the holders in aggregate principal amount of the then outstanding Certificates, nothing herein contained shall permit or be construed to permit amendment of the terms and conditions of this Ordinance or in any of the Certificates so as to: (1) Make any change in the maturity of any of the outstanding Certificates; (2) Reduce the rate of interest borne by any of the outstanding Certificates; (3) Reduce the amount of the principal of, or redemption premium, if any, payable on any outstanding Certificates; (4) Modify the terms of payment of principal or of interest or redemption premium on outstanding Certificates or any of them or impose any condition with respect to such payment; or (5) Change the minimum percentage of the principal amount of Certificates necessary for consent to such amendment. (c) If at any time the Issuer shall desire to amend this Ordinance under this Section, the Issuer shall send by U.S. mail to each Registered Owner of the affected Certificates a copy of the proposed amendment and cause notice of the proposed amendment to be published at least once in a financial publication published in The City of New York, New York or in the State of Texas. 29 Exhibit 2 sAlegal \our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc Such published notice shall briefly set forth the nature of the proposed amendment and shall state that a copy thereof is on file at the office of the Issuer for inspection by all holders of such Certificates. (d) Whenever at any time within one year from the date of publication of such notice the Issuer shall receive an instrument or instruments executed by the holders of at least a majority in aggregate principal amount of all of the Certificates then outstanding that are required for the amendment, which instrument or instruments shall refer to the proposed amendment and that shall specifically consent to and approve such amendment, the Issuer may adopt the amendment in substantially the same form. (e) Upon the adoption of any amendatory Ordinance pursuant to the provisions of this Section, this Ordinance shall be deemed to be modified and amended in accordance with such amendatory Ordinance, and the respective rights, duties, and obligations of the Issuer and all holders of such affected Certificates shall thereafter be determined, exercised, and enforced, subject in all respects to such amendment. (f) Any consent given by the holder of a Certificate pursuant to the provisions of this Section shall be irrevocable for a period of six months from the date of the publication of the notice provided for in this Section, and shall be conclusive and binding upon all future holders of the same Certificate during such period. Such consent may be revoked at any time after six months from the date of the publication of said notice by the holder who gave such consent, or by a successor in title, by filing notice with the Issuer, but such revocation shall not be effective if the holders of a majority in aggregate principal amount of the affected Certificates then outstanding, have, prior to the attempted revocation, consented to and approved the amendment. For the purposes of establishing ownership of the Certificates, the Issuer shall rely solely upon the registration of the ownership of such Certificates on the Registration Books kept by the Paying Agent /Registrar. SECTION 15. DEFAULT AND REMEDIES. (a) Events of Default. Each of the following occurrences or events for the purpose of this Ordinance is hereby declared to be an Event of Default: (i) the failure to make payment of the principal of or interest on any of the Certificates when the same becomes due and payable; or (ii) default in the performance or observance of any other covenant, agreement or obligation of the Issuer, the failure to perform which materially, adversely affects the rights of the Registered Owners of the Certificates, including, but not limited to, their prospect or ability to be repaid in accordance with this Ordinance, and the continuation thereof for a period of 60 days after notice of such default is given by any Registered Owner to the Issuer. (b) Remedies for Default. 30 Exhibit 2 sAlegal \our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc (i) Upon the happening of any Event of Default, then and in every case, any Registered Owner or an authorized representative thereof, including, but not limited to, a trustee or trustees therefor, may proceed against the Issuer for the purpose of protecting and enforcing the rights of the Registered Owners under this Ordinance, by mandamus or other suit, action or special proceeding in equity or at law, in any court of competent jurisdiction, for any relief permitted by law, including the specific performance of any covenant or agreement contained herein, or thereby to enjoin any act or thing that may be unlawful or in violation of any right of the Registered Owners hereunder or any combination of such remedies. (ii) It is provided that all such proceedings shall be instituted and maintained for the equal benefit of all Registered Owners of Certificates then outstanding. (c) Remedies Not Exclusive. (i) No remedy herein conferred or reserved is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or under the Certificates or now or hereafter existing at law or in equity; provided, however, that notwithstanding any other provision of this Ordinance, the right to accelerate the debt evidenced by the Certificates shall not be available as a remedy under this Ordinance. (ii) The exercise of any remedy herein conferred or reserved shall not be deemed a waiver of any other available remedy. (iii) By accepting the delivery of a Certificate authorized under this Ordinance, such Registered Owner agrees that the certifications required to effectuate any covenants or representations contained in this Ordinance do not and shall never constitute or give rise to a personal or pecuniary liability or charge against the officers, employees or agents of the Issuer or the members of its governing body. SECTION 16. APPROPRIATION. To pay the debt service coming due on the Certificates, if any, prior to receipt of the taxes levied to pay such debt service, there is hereby appropriated from current funds on hand, which are hereby certified to be on hand and available for such purpose, an amount, which together with capitalized interest received from the sale of the Certificates, if any, will be sufficient to pay such debt service, and such amount shall be used for no other purpose. SECTION 17. EFFECTIVE DATE. In accordance with the provisions of Texas Government Code Section 1201.028, this Ordinance shall be effective immediately upon its adoption by the City Council. SECTION 18. SEVERABILITY. If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or application thereof to any persons or circumstances is held invalid or unconstitutional by a court of competent jurisdiction, such holding shall not affect the W Exhibit 2 sAlegal \our documents \opinions\2014 \co ordinance 3 -25 -14 cmp.doc validity of the remaining portion of this Ordinance, despite such invalidity, which remaining portions shall remain in full force and effect. [Signature page follows] 32 Exhibit 2 sAlegal \our documents \opinions\2014\co ordinance 3 -25 -14 cmp.doc PASSED AND APPROVED this the day of , 2014. ATTEST: JENNIFER WALTERS, CITY SECRETARY :_. APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY m� BY: mfr_. a] MARK A. BURROUGHS, MAYOR Individual Herr€ AGENDA INFORMATION SHEET AGENDA DATE: April 15, 2014 DEPARTMENT: Finance ACM: Bryan Langley 6-4 SUBJECT Consider adoption of an ordinance considering all matters incident and related to the issuance, sale and delivery of up to $7,600,000 in principal amount of "City of Denton General Obligation Refunding and Improvement Bonds, Series 2014 "; authorizing the issuance of the Bonds; delegating the authority to certain City officials to execute certain documents relating to the sale of the Bonds; approving and authorizing instruments and procedures relating to said Bonds; and enacting other provisions relating to the subject. BACKGROUND This bond sale was previously discussed with the Audit /Finance Committee and the City Council on March 4, 2014. At the time of these discussions, staff anticipated refunding $3,335,000 in existing debt as part of this issuance, if market conditions were favorable. Based on the advice of the City's financial advisor, First Southwest Company, market conditions are favorable, and as such, staff requests approval to proceed with the refunding of a portion of the 2004 General Obligation Refunding and Improvement Bonds. The refunding will not extend the maturity date of the existing debt. In addition, the bond sale includes the issuance of $4 million in General Obligation Bonds (GOs) to fund the second year of street improvement projects approved by the voters in the November 2012 Bond Election. Since bond market conditions can change rapidly, staff is recommending that the City Council approve a delegated parameters sale for the GOs. The parameters ordinance sets the following requirements in order to complete the sale of the GOs. - Maximum amount of sale is $7,600,000 - Final stated maturity of February 15, 2034 - Refunding must produce savings of at least 3.50% - Delegation authority ends October 15, 2014 By doing so, City staff will be authorized to execute the sale without additional Council action. Once the exact terms of the transaction are determined, staff will provide the City Council with additional information in an informal staff report. Agenda Information Sheet April 15, 2014 Page 2 In addition to the sale of GOs, the City anticipates the sale of approximately $94,500,000 in Certificates of Obligation. Staff has discussed the upcoming issuance in detail with the bond rating agencies and applied for ratings. Fitch has affirmed the City's AA+ rating. Standard & Poor's rating and associated report will be sent to the City Council upon receipt. Staff tentatively plans to sell the COs & GOs through a competitive bond sale during the week of April 21", depending on market conditions. RECOMMENDATION Staff recommends approval of the ordinance. PRIOR ACTION/REVIEW (Council, Boards or Commissions) On March 4, 2014, the Audit /Finance Committee unanimously recommended approval to forward the upcoming bond issuance to the City Council for consideration. EXHIBITS Exhibit l: Ordinance Respectfully submitted: Chuck Springer Director of Finance Prepared By: Antonio Puente, Jr. Assistant Director of Finance Exhibit 1 sAlegal\ our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc ORDINANCE NO. 2014- AN ORDINANCE CONSIDERING ALL MATTERS INCIDENT AND RELATED TO THE ISSUANCE, SALE AND DELIVERY OF UP TO $7,600,000 IN PRINCIPAL AMOUNT OF "CITY OF DENTON GENERAL OBLIGATION REFUNDING AND IMPROVEMENT BONDS, SERIES 2014 "; AUTHORIZING THE ISSUANCE OF THE BONDS; DELEGATING THE AUTHORITY TO CERTAIN CITY OFFICIALS TO EXECUTE CERTAIN DOCUMENTS RELATING TO THE SALE OF THE BONDS; APPROVING AND AUTHORIZING INSTRUMENTS AND PROCEDURES RELATING TO SAID BONDS; AND ENACTING OTHER PROVISIONS RELATING TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, by virtue of an election held within the City of Denton, Texas (the "Issuer ") on November 6, 2012, this City Council became authorized to issue, sell and deliver the general obligation bonds of the Issuer, of which there are authorized to be issued by this Ordinance, and will remain authorized but unissued hereafter, as described in Schedule I attached hereto and incorporated herein; and WHEREAS, this City Council finds and determines that it is necessary and proper to order the issuance, sale and delivery of such voted bonds; and WHEREAS, the City has previously issued, and there are presently outstanding general obligation bonds and certificates of obligation which are secured by the full faith and credit of the Issuer and a pledge by the Issuer to levy ad valorem taxes sufficient to pay principal of and interest on the bonds and certificates of obligation as they become due and a pledge of surplus revenues to further secure the certificates of obligation; and WHEREAS, the Issuer now desires to refund all or part of the outstanding general obligation bonds and certificates of obligation described in Schedule II attached hereto and incorporated herein (collectively, the "Eligible Refunded Obligations "), and those Eligible Refunded Obligations designated by the Pricing Officer in the Pricing Certificate, each as defined below, to be refunded are herein referred to as the "Refunded Obligations "; and WHEREAS, Chapter 1207, Texas Government Code, authorizes the Issuer to issue refunding bonds and to deposit the proceeds from the sale thereof, together with any other available funds or resources, directly with a paying agent for the Refunded Obligations or a trust company or commercial bank that does not act as a depository for the Issuer and is named in these proceedings, and such deposit, if made before the payment dates of the Refunded Obligations, shall constitute the making of firm banking and financial arrangements for the discharge and final payment of the Refunded Obligations; and WHEREAS, Chapter 1207, Texas Government Code, further authorizes the Issuer to enter into an escrow or similar agreement with such paying agent for the Refunded Obligations or trust company or commercial bank with respect to the safekeeping, investment, reinvestment, administration and disposition of any such deposit, upon such terms and conditions as the Issuer and such paying agent or trust company or commercial bank may agree; and Exhibit 1 sAlegal \our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc WHEREAS, the City Council hereby finds and declares a public purpose and it is in the best interests of the Issuer to refund the Refunded Obligations in order to achieve a debt service savings, with such savings, among other information and terms to be included in a pricing certificate (the "Pricing Certificate ") to be executed by the Pricing Officer (hereinafter designated), all in accordance with the provisions of Section 1207.007, Texas Government Code; and WHEREAS, all the Refunded Obligations mature or are subject to redemption prior to maturity within 20 years of the date of the bonds hereinafter authorized; and WHEREAS, the Issuer is an "issuer" within the meaning of Section 1371.001(4)(P), Texas Government Code, having (i) a principal amount of at least $100 million in outstanding long -term indebtedness, in long -term indebtedness proposed to be issued, or in a combination of outstanding or proposed long -term indebtedness and (ii) some amount of long -term indebtedness outstanding or proposed to be issued that is rated in one of the four highest rating categories for long -term debt instruments by a nationally recognized rating agency for municipal securities, without regard to the effect of any credit agreement or other form of credit enhancement entered into in connection with the obligation; and WHEREAS, the bonds hereinafter authorized to be issued were voted and are to be issued, sold and delivered pursuant to the general laws of the State of Texas, including Texas Government Code Chapters 1207, 1331 and 1371, as amended, and the Issuer's Home Rule Charter; and WHEREAS, it is officially found, determined, and declared that the meeting at which this Ordinance has been adopted was open to the public and public notice of the time, place and subject matter of the public business to be considered and acted upon at said meeting, including this Ordinance, was given, all as required by the applicable provisions of Texas Government Code Chapter 551; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. RECITALS, AMOUNT, PURPOSE AND DESIGNATION OF THE BONDS. (a) The recitals set forth in the preamble hereof are incorporated herein and shall have the same force and effect as if set forth in this Section. (b) The term "Bonds" as used in this Ordinance shall mean and include collectively the bond initially issued and delivered pursuant to this Ordinance (the "Initial Bond ") and all substitute bonds exchanged therefor, as well as all other substitute bonds and replacement bonds issued pursuant hereto, and the term "Bond" shall mean any of the Bonds. (c) The Bonds of the City of Denton, Texas (the "Issuer ") are hereby authorized to be issued and delivered in the maximum aggregate principal amount of $7,600,000 (i) up to 2 Exhibit I sAlegal \our documents \ordinances \14 \g0 ordinance 3 -25 -14 cmp.doc $3,600,000 for the public purpose of refunding the Refunded Obligations, (ii) $4,000,000 for the purpose of acquiring and constructing street improvements in accordance with and subject to the election propositions authorizing such bonds (the "Improvement Projects "), and (iii) to pay the costs associated with the issuance of the Bonds, (collectively, the "Projects "). (d) Each bond issued pursuant to this Ordinance shall be designated: "CITY OF DENTON GENERAL OBLIGATION REFUNDING AND IMPROVEMENT BOND, SERIES 2014," and initially there shall be issued, sold, and delivered hereunder fully registered bonds, without interest coupons, payable to the respective registered owners thereof (with the Initial Bond being made payable to the Purchaser as described in Section 10 hereof), or to the registered assignee or assignees of said Bonds or any portion or portions thereof (in each case, the "Registered Owner "). The Bonds shall be in the respective principal amounts, shall be numbered, shall mature and be payable on the date or dates in each of the years and in the principal amounts, and shall bear interest to their respective dates of maturity or redemption prior to maturity at the rates per annum, as set forth in the Pricing Certificate. SECTION 2. DELEGATION TO PRICING OFFICER. (a) As authorized by Sections 1207.007 and 1371.053, Texas Government Code, as amended, the City Manager or an Assistant City Manager (the "Pricing Officer ") is hereby authorized to act on behalf of the Issuer in selling and delivering the Bonds, determining which of the Eligible Refunded Obligations shall be refunded and carrying out the other procedures specified in this Ordinance, including, determining the date of the Bonds, any additional or different designation or title by which the Bonds shall be known, the price at which the Bonds will be sold, the years in which the Bonds will mature, the principal amount to mature in each of such years, the rate of interest to be borne by each such maturity, the interest payment and record dates, the price and terms upon and at which the Bonds shall be subject to redemption prior to maturity at the option of the Issuer, as well as any mandatory sinking fund redemption provisions, and all other matters relating to the issuance, sale, and delivery of the Bonds and the refunding of the Refunded Obligations, including without limitation establishing the redemption date for and effecting the redemption of the Refunded Obligations and obtaining municipal bond insurance for all or any portion of the Bonds (including in connection therewith the execution of any commitment agreements, membership agreements in mutual insurance companies, and other similar agreements) and providing for the terms and provisions thereof applicable to the Bonds, all of which shall be specified in the Pricing Certificate; provided that: (i) the aggregate original principal amount of the Bonds shall not exceed $7,600,000, with $4,000,000 of such amount to be issued for the purposes described in Section 1(c)(ii) and (iii) hereof, and up to $3,600,000 of such amount issued for the purposes described in Section 1(c)(i) and (iii) hereof, (ii) the price to be paid for the Bonds shall not be less than 97% of the aggregate original principal amount thereof plus accrued interest thereon from its date to its delivery; (iii) the maximum stated maturity of the Bonds shall not exceed February 15, 2034; 3 Exhibit 1 s:Uegal \our documents \ordinances \14\go ordinance 3 -25 -14 cmp.doc (iv) the refunding must produce present value debt service savings of at least 3.50 %, net of any Issuer contribution; (v) the Bonds shall bear interest at a fixed rate, and none of the Bonds shall bear interest at a rate greater than 5.25% per annum and the net effective interest rate on the Bonds shall not exceed 4.50 %; (vi) the delegation made hereby shall expire if not exercised by the Pricing Officer on or prior to October 15, 2014; and (vii) on or prior to delivery, the Bonds shall be rated by a nationally recognized rating agency for municipal securities in one of the four highest categories for long -term obligations. (b) In establishing the aggregate principal amount of the Bonds, the Pricing Officer shall establish an amount not exceeding the amount authorized in Subsection (a) hereof, which shall be sufficient in amount to provide for the purposes for which the Bonds are authorized and to pay costs of issuing the Bonds. The Bonds shall be sold with and subject to such terms as set forth in the Pricing Certificate. SECTION 3. CHARACTERISTICS OF THE BONDS. (a) Registration Transfer Conversion and Exchange; Authentication. The Issuer shall keep or cause to be kept at the principal corporate trust office of The Bank of New York Mellon Trust Company, National Association, Dallas, Texas, (the "Paying Agent /Registrar "), books or records for the registration of the transfer, conversion and exchange of the Bonds (the "Registration Books "), and the Issuer hereby appoints the Paying Agent /Registrar as its registrar and transfer agent to keep such books or records and make such registrations of transfers, conversions and exchanges under such reasonable regulations as the Issuer and Paying Agent/Registrar may prescribe; and the Paying Agent /Registrar shall make such registrations, transfers, conversions and exchanges as herein provided. The Paying Agent /Registrar shall obtain and record in the Registration Books the address of the Registered Owner of each Bond to which payments with respect to the Bonds shall be mailed, as herein provided; but it shall be the duty of each Registered Owner to notify the Paying Agent /Registrar in writing of the address to which payments shall be mailed, and such interest payments shall not be mailed unless such notice has been given. The Issuer shall have the right to inspect the Registration Books during regular business hours of the Paying Agent /Registrar, but otherwise the Paying Agent /Registrar shall keep the Registration Books confidential and, unless otherwise required by law, shall not permit their inspection by any other entity. The Issuer shall pay the Paying Agent /Registrar's standard or customary fees and charges for making such registration, transfer, conversion, exchange and delivery of a substitute Bond or Bonds. Registration of assignments, transfers, conversions and exchanges of Bonds shall be made in the manner provided and with the effect stated in the FORM OF BOND set forth in this Ordinance. Each substitute Bond shall bear a letter and /or number to distinguish it from each other Bond. rd Exhibit 1 sAlegal\ our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc Except as provided in Section 3(c) of this Ordinance, an authorized representative of the Paying Agent /Registrar shall, before the delivery of any such Bond, date and manually sign said Bond, and no such Bond shall be deemed to be issued or outstanding unless such Bond is so executed. The Paying Agent /Registrar promptly shall cancel all paid Bonds and Bonds surrendered for conversion and exchange. No additional ordinances, orders, or resolutions need be passed or adopted by the governing body of the Issuer or any other body or person so as to accomplish the foregoing conversion and exchange of any Bond or portion thereof, and the Paying Agent /Registrar shall provide for the printing, execution, and delivery of the substitute Bonds in the manner prescribed herein, and said Bonds shall be printed or typed on paper of customary weight and strength. Pursuant to Chapter 1201, Government Code, as amended, the duty of conversion and exchange of Bonds as aforesaid is hereby imposed upon the Paying Agent/Registrar, and, upon the execution of said Bond, the converted and exchanged Bond shall be valid, incontestable, and enforceable in the same manner and with the same effect as the Bonds that initially were issued and delivered pursuant to this Ordinance, approved by the Attorney General of the State of Texas (the "Attorney General ") and registered by the Comptroller of Public Accounts of the State of Texas (the "Comptroller "). (b) Payment of Bonds and Interest. The Issuer hereby further appoints the Paying Agent /Registrar to act as the paying agent for paying the principal of and interest on the Bonds, all as provided in this Ordinance. The Paying Agent /Registrar shall keep proper records of all payments made by the Issuer and the Paying Agent /Registrar with respect to the Bonds, and of all conversions and exchanges of Bonds, and all replacements of Bonds, as provided in this Ordinance. However, in the event of a nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date ") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the Issuer. Notice of the past due interest shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first -class postage prepaid, to the address of each Registered Owner appearing on the Registration Books at the close of business on the last business day next preceding the date of mailing of such notice. (c) In General. The Bonds (i) shall be issued in fully registered form, without interest coupons, with the principal of and interest on such Bonds to be payable only to the Registered Owners thereof, (ii) may or shall be redeemed prior to their scheduled maturities (notice of which shall be given to the Paying Agent /Registrar by the Issuer at least 45 days prior to any such redemption date), (iii) may be converted and exchanged for other Bonds, (iv) may be transferred and assigned, (v) shall have the characteristics, (vi) shall be signed, sealed, executed and authenticated, (vii) the principal of and interest on the Bonds shall be payable, and (viii) shall be administered and the Paying Agent /Registrar and the Issuer shall have certain duties and responsibilities with respect to the Bonds, all as provided, and in the manner and to the effect as required or indicated, in the FORM OF BOND set forth in this Ordinance (as modified in the Pricing Certificate). The Initial Bond is not required to be, and shall not be, authenticated by the Paying Agent/Registrar, but on each substitute Bond issued in conversion of and exchange for any Bond or Bonds issued under this Ordinance the Paying Agent /Registrar shall execute the Paying Agent/Registrar's Authentication Certificate, in the form set forth in the FORM OF BOND. F Exhibit 1 sAlegal \our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc (d) Paying_Agent /Registrar for the Bonds. The Issuer covenants with the Registered Owners of the Bonds that at all times while the Bonds are outstanding the Issuer will provide a competent and legally qualified bank, trust company, financial institution, or other entity to act as and perform the services of Paying Agent /Registrar for the Bonds under this Ordinance, and that the Paying Agent /Registrar, will be a single entity. The Issuer reserves the right to, and may, at its option, change the Paying Agent /Registrar upon not less than 120 days written notice to the Paying Agent /Registrar, to be effective not later than 60 days prior to the next principal or interest payment date after such notice. In the event that the entity at any time acting as Paying Agent /Registrar (or its successor by merger, acquisition, or other method) should resign or otherwise cease to act as such, the Issuer covenants that promptly it will appoint a competent and legally qualified bank, trust company, financial institution, or other agency to act as Paying Agent/Registrar under this Ordinance. Upon any change in the Paying Agent /Registrar, the previous Paying Agent /Registrar promptly shall transfer and deliver the Registration Books (or a copy thereof), along with all other pertinent books and records relating to the Bonds, to the new Paying Agent /Registrar designated and appointed by the Issuer. Upon any change in the Paying Agent /Registrar, the Issuer promptly will cause a written notice thereof to be sent by the new Paying Agent /Registrar to each Registered Owner of the Bonds, by United States mail, first -class postage prepaid, which notice also shall give the address of the new Paying Agent /Registrar. By accepting the position and performing as such, each Paying Agent /Registrar shall be deemed to have agreed to the provisions of this Ordinance, and a certified copy of this Ordinance shall be delivered to each Paying Agent /Registrar. (e) Authentication. Except as provided below, no Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit of this Ordinance unless and until there appears thereon the Paying Agent /Registrar's Authentication Certificate substantially in the form provided in this Ordinance, duly authenticated by manual execution of the Paying Agent /Registrar. It shall not be required that the same authorized representative of the Paying Agent /Registrar sign the Paying Agent /Registrar's Authentication Certificate on all of the Bonds. In lieu of the executed Paying Agent /Registrar's Authentication Certificate described above, the Initial Bond delivered on the closing date shall have attached thereto the Comptroller's Registration Certificate substantially in the form provided in this Ordinance, manually executed by the Comptroller or by her duly authorized agent, which certificate shall be evidence that the Initial Bond has been duly approved by the Attorney General and that it is a valid and binding obligation of the Issuer, and has been registered by the Comptroller. (f) Book - Entry- OnlySystem. The Bonds issued in exchange for the Initial Bond shall be initially issued in the form of a separate single fully registered Bond for each of the maturities thereof. Upon initial issuance, the ownership of each such Bond shall be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ( "DTC "), and except as provided in subsection (g) hereof, all of the outstanding Bonds shall be registered in the name of Cede & Co., as nominee of DTC. With respect to Bonds registered in the name of Cede & Co., as nominee of DTC, the Issuer and the Paying Agent /Registrar shall have no responsibility or obligation to any securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations on whose behalf DTC was created ( "DTC Participant ") to hold securities to facilitate the ro Exhibit 1 sAlegal\our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc clearance and settlement of securities transactions among DTC Participants or to any person on behalf of whom such a DTC Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence, the Issuer and the Paying Agent /Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any DTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC Participant or any other person, other than a Registered Owner of Bonds, as shown on the Registration Books, of any notice with respect to the Bonds, or (iii) the payment to any DTC Participant or any other person, other than a Registered Owner of Bonds, as shown in the Registration Books of any amount with respect to principal of or interest on the Bonds. Notwithstanding any other provision of this Ordinance to the contrary, the Issuer and the Paying Agent /Registrar shall be entitled to treat and consider the person in whose name each Bond is registered in the Registration Books as the absolute owner of such Bond for the purpose of payment of principal and interest with respect to such Bond, for the purpose of registering transfers with respect to such Bond, and for all other purposes whatsoever. The Paying Agent /Registrar shall pay all principal of and interest on the Bonds only to or upon the order of the Registered Owners, as shown in the Registration Books as provided in this Ordinance, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the Issuer's obligations with respect to payment of principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other than a Registered Owner, as shown in the Registration Books, shall receive a Bond evidencing the obligation of the Issuer to make payments of principal and interest pursuant to this Ordinance. Upon delivery by DTC to the Paying Agent /Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in this Ordinance with respect to interest checks being mailed to the Registered Owner at the close of business on the Record Date, the words "Cede & Co." in this Ordinance shall refer to such new nominee of DTC. The previous execution and delivery of the Blanket Issuer Letter of Representations with respect to obligations of the Issuer is hereby ratified and confirmed; and the provisions thereof shall be fully applicable to the Bonds. (g) Successor Securities Depository; Transfers Outside Book- Entry-Only System. In the event that the Issuer determines that DTC is incapable of discharging its responsibilities described herein and in the Blanket Issuer Letter of Representations to DTC or that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated Bonds, the Issuer shall (i) appoint a successor securities depository, qualified to act as such under Section 17A of the Securities and Exchange Act of 1934, as amended, notify DTC and DTC Participants of the appointment of such successor securities depository and transfer one or more separate Bonds to such successor securities depository or (ii) notify DTC and DTC Participants of the availability through DTC of Bonds and transfer one or more separate certificated Bonds to DTC Participants having Bonds credited to their DTC accounts. In such event, the Bonds shall no longer be restricted to being registered in the Registration Books in the name of Cede & Co., as nominee of DTC, but may be registered in the name of the successor securities depository, or its nominee, or in whatever name or names Registered Owners transferring or exchanging Bonds shall designate, in accordance with the provisions of this Ordinance. 7 Exhibit 1 sAlegal \our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc (h) Payments to Cede & Co. Notwithstanding any other provision of this Ordinance to the contrary, so long as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, in the manner provided in the Blanket Issuer Letter of Representations to DTC. (i) Cancellation of Initial Bond. On the closing date, the Initial Bond, representing the entire principal amount of the Bonds, payable in stated installments to the purchaser designated in Section 10 or its designee, executed by manual or facsimile signature of the Mayor and City Secretary of the Issuer, approved by the Attorney General, and registered and manually signed by the Comptroller, will be delivered to such purchaser or its designee. Upon payment for the Initial Bond, the Paying Agent /Registrar shall cancel the Initial Bond and deliver to DTC on behalf of such purchaser one registered definitive Bond for each year of maturity of the Bonds, in the aggregate principal amount of all of the Bonds for such maturity. To the extent that the Paying Agent/Registrar is eligible to participate in DTC's FAST System, pursuant to an agreement between the Paying Agent /Registrar and DTC, the Paying Agent /Registrar shall hold the definitive Bonds in safekeeping for DTC. 0) Conditional Notice of Redemption. With respect to any optional redemption of the Bonds, unless the prerequisites to such redemption required by this Ordinance have been met and moneys sufficient to pay the principal of and premium, if any, and interest on the Bonds to be redeemed shall have been received by the Paying Agent /Registrar prior to the giving of such notice of redemption, such notice shall state that said redemption may, at the option of the Issuer, be conditional upon the satisfaction of such prerequisites and receipt of such moneys by the Paying Agent /Registrar on or prior to the date fixed for such redemption, or upon any prerequisite set forth in such notice of redemption. If a conditional notice of redemption is given and such prerequisites to the redemption and sufficient moneys are not received, such notice shall be of no force and effect, the Issuer shall not redeem such Bonds and the Paying Agent/Registrar shall give notice, in the manner in which the notice of redemption was given, to the effect that the Bonds have not been redeemed. SECTION 4. FORM OF BONDS. The form of the Bonds, including the form of Paying Agent /Registrar's Authentication Certificate, the form of Assignment and the form of Comptroller's Registration Certificate to be attached to the Bonds initially issued and delivered pursuant to this Ordinance, shall be, respectively, substantially as follows, with such appropriate variations, omissions or insertions as are permitted or required by this Ordinance, and with the Form of Bond to be modified pursuant to, and completed with information set forth in, the Pricing Certificate. (a) [Form of Bond] NO. R- UNITED STATES OF AMERICA PRINCIPAL STATE OF TEXAS AMOUNT CITY OF DENTON $ GENERAL OBLIGATION REFUNDING AND IMPROVEMENT BOND 8 Exhibit 1 sAlegal \our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc SERIES 2014 Interest Rate Dated Date Maturity Date CUSIP No. , 20_ February 15, REGISTERED OWNER: PRINCIPAL AMOUNT: DOLLARS ON THE MATURITY DATE specified above, the City of Denton, in Denton County, Texas (the "Issuer "), being a political subdivision and municipal corporation of the State of Texas, hereby promises to pay to the Registered Owner specified above, or registered assigns (hereinafter called the "Registered Owner "), on the Maturity Date specified above, the Principal Amount specified above. The Issuer promises to pay interest on the unpaid principal amount hereof (calculated on the basis of a 360 -day year of twelve 30 -day months) from , 2014 at the Interest Rate per annum specified above. Interest is payable on , 20_ and semiannually on each and thereafter to the Maturity Date specified above, or the date of redemption prior to maturity; except, if this Bond is required to be authenticated and the date of its authentication is later than the first Record Date (hereinafter defined), such Principal Amount shall bear interest from the interest payment date next preceding the date of authentication, unless such date of authentication is after any Record Date but on or before the next following interest payment date, in which case such principal amount shall bear interest from such next following interest payment date; provided, however, that if on the date of authentication hereof the interest on the Bond or Bonds, if any, for which this Bond is being exchanged is due but has not been paid, then this Bond shall bear interest from the date to which such interest has been paid in full. THE PRINCIPAL OF AND INTEREST ON this Bond are payable in lawful money of the United States of America, without exchange or collection charges. The principal of this Bond shall be paid to the Registered Owner hereof upon presentation and surrender of this Bond at maturity, or upon the date fixed for its redemption prior to maturity, at the principal corporate trust office of The Bank of New York Mellon Trust Company, National Association, Dallas, Texas, which is the "Paying Agent /Registrar" for this Bond. The payment of interest on this Bond shall be made by the Paying Agent /Registrar to the Registered Owner hereof on each interest payment date by check or draft, dated as of such interest payment date, drawn by the Paying Agent/Registrar on, and payable solely from, funds of the Issuer required by the ordinance authorizing the issuance of this Bond (the "Bond Ordinance ") to be on deposit with the Paying Agent /Registrar for such purpose as hereinafter provided; and such check or draft shall be sent by the Paying Agent /Registrar by United States mail, first -class postage prepaid, on each such interest payment date, to the Registered Owner hereof, at its address as it appeared on the last business day of the month preceding each such date (the "Record Date ") on the Registration Books kept by the Paying Agent /Registrar, as hereinafter described. In addition, interest may be paid by such other method, acceptable to the Paying Agent /Registrar, requested by, and at the risk and expense of, the Registered Owner. In the event of a non - payment of interest on a 9 Exhibit 1 sAlegal \our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc scheduled payment date, and for 30 days thereafter, a new record date for such interest payment (a "Special Record Date ") will be established by the Paying Agent /Registrar, if and when funds for the payment of such interest have been received from the Issuer. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five business days prior to the Special Record Date by United States mail, first -class postage prepaid, to the address of each Registered Owner of a Bond appearing on the Registration Books at the close of business on the last business day next preceding the date of mailing of such notice. ANY ACCRUED INTEREST due at maturity or upon the redemption of this Bond prior to maturity as provided herein shall be paid to the Registered Owner upon presentation and surrender of this Bond for redemption and payment at the principal corporate trust office of the Paying Agent/Registrar. The Issuer covenants with the Registered Owner of this Bond that on or before each principal payment date, interest payment date, and accrued interest payment date for this Bond it will make available to the Paying Agent /Registrar, from the "Interest and Sinking Fund" created by the Bond Ordinance, the amounts required to provide for the payment, in immediately available funds, of all principal of and interest on the Bonds, when due. IF THE DATE for the payment of the principal of or interest on this Bond shall be a Saturday, Sunday, a legal holiday or a day on which banking institutions in the city where the principal corporate trust office of the Paying Agent /Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day that is not such a Saturday, Sunday, legal holiday or day on which banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. THIS BOND is one of a series of Bonds dated ( _, 2014], authorized in accordance with the Constitution and laws of the State of Texas in the principal amount of [$ ] 0) up to $[ ] for the public purpose of refunding the Refunded Obligations, (ii) $[ ] for acquiring and constructing street improvements, and (iii) to pay the costs associated with the issuance of the Bonds. ON , 20 , or on any date thereafter, the Bonds of this series may be redeemed prior to their scheduled maturities, at the option of the Issuer, with funds derived from any available and lawful source, as a whole, or in part, and, if in part, the particular Bonds, or portions thereof, to be redeemed shall be selected and designated by the Issuer (provided that a portion of a Bond may be redeemed only in an integral multiple of $5,000), at a redemption price equal to the principal amount to be redeemed plus accrued interest to the date fixed for redemption. [THE BONDS scheduled to mature on in the years and ( the "Term Bonds ") are subject to scheduled mandatory redemption by the Paying Agent /Registrar by lot, or by any other customary method that results in a random selection, at a price equal to the principal amount thereof, plus accrued interest to the redemption date, out of moneys available for such purpose in the interest and sinking fund for the Bonds, on the dates and in the respective principal amounts, set forth in the following schedule: 10 Exhibit 1 sAlegal \our d0cuments \ordinances \14 \go ordinance 3 -25 -14 cmp.doc Term Bond Maturity: February 15, 20_ Principal Mandatory Redemption Amount Date February 15,20 $ February 15,20 February 15,20_ February 15,20 (maturity) Term Bond Maturity: February 15,20_ Mandatory Redemption Date February 15,20 February 15,20 February 15,20 February 15,20 (maturity) Principal Amount The principal amount of Term Bonds of a stated maturity required to be redeemed on any mandatory redemption date pursuant to the operation of the mandatory sinking fund redemption provisions shall be reduced, at the option of the Issuer, by the principal amount of any Term Bonds of the same maturity which, at least 50 days prior to a mandatory redemption date (1) shall have been acquired by the Issuer at a price not exceeding the principal amount of such Term Bonds plus accrued interest to the date of purchase thereof, and delivered to the Paying Agent /Registrar for cancellation, (2) shall have been purchased and canceled by the Paying Agent /Registrar at the request of the Issuer at a price not exceeding the principal amount of such Term Bonds plus accrued interest to the date of purchase, or (3) shall have been redeemed pursuant to the optional redemption provisions and not theretofore credited against a mandatory redemption requirement.] AT LEAST 30 days prior to the date fixed for any redemption of Bonds or portions thereof prior to maturity a written notice of such redemption shall be sent by the Paying Agent /Registrar by United States mail, first -class postage prepaid, to the Registered Owner of each Bond to be redeemed at its address as it appeared on the 45th day prior to such redemption date; provided, however, that the failure of the Registered Owner to receive such notice, or any defect therein or in the sending or mailing thereof, shall not affect the validity or effectiveness of the proceedings for the redemption of any Bond. By the date fixed for any such redemption due provision shall be made with the Paying Agent /Registrar for the payment of the required redemption price for the Bonds or portions thereof that are to be so redeemed. If such written notice of redemption is sent and if due provision for such payment is made, all as provided above, the Bonds or portions thereof that are to be so redeemed thereby automatically shall be treated as redeemed prior to their scheduled maturities, and they shall not bear interest after the date fixed for redemption, and they shall not be regarded as being outstanding except for the right of the Registered Owner to receive the redemption price from the Paying Agent /Registrar out of the funds provided for such payment. If a portion of any Bond shall be redeemed, a substitute Bond or Bonds having the same maturity date, bearing interest at the same rate, in any denomination or denominations in any integral multiple of $5,000, at the written request of the Registered Owner, and in aggregate principal amount equal to the unredeemed portion thereof, will be issued to the Registered Owner upon the surrender thereof for cancellation, at the expense of the Issuer, all as provided in the Bond Ordinance. Exhibit 1 s:Uega1\our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc IF AT THE TIME OF MAILING of notice of optional redemption there shall not have either been deposited with the Paying Agent /Registrar or legally authorized escrow agent immediately available funds sufficient to redeem all the Bonds called for redemption, such notice may state that it is conditional, and is subject to the deposit of the redemption moneys with the Paying Agent /Registrar or legally authorized escrow agent at or prior to the redemption date or any prerequisite set forth in such notice of redemption. If such redemption is not effectuated, the Paying Agent/Registrar shall, within five days thereafter, give notice in the manner in which the notice of redemption was given that such moneys were not so received or such prerequisites were not met and shall rescind the redemption. ALL BONDS OF THIS SERIES are issuable solely as fully registered bonds, without interest coupons, in the denomination of any integral multiple of $5,000. As provided in the Bond Ordinance, this Bond may, at the request of the Registered Owner or the assignee or assignees hereof, be assigned, transferred, converted into and exchanged for a like aggregate principal amount of fully registered Bonds, without interest coupons, payable to the appropriate Registered Owner, assignee or assignees, as the case may be, having the same denomination or denominations in any integral multiple of $5,000 as requested in writing by the appropriate Registered Owner, assignee or assignees, as the case may be, upon surrender of this Bond to the Paying Agent /Registrar for cancellation, all in accordance with the form and procedures set forth in the Bond Ordinance. Among other requirements for such assignment and transfer, this Bond must be presented and surrendered to the Paying Agent /Registrar, together with proper instruments of assignment, in form and with guarantee of signatures satisfactory to the Paying Agent /Registrar, evidencing assignment of this Bond or any portion or portions hereof in any integral multiple of $5,000 to the assignee or assignees in whose name or names this Bond or any such portion or portions hereof is or are to be registered. The Form of Assignment printed or endorsed on this Bond may be executed by the Registered Owner to evidence the assignment hereof, but such method is not exclusive, and other instruments of assignment satisfactory to the Paying Agent/Registrar may be used to evidence the assignment of this Bond or any portion or portions hereof from time to time by the Registered Owner. The Paying Agent /Registrar's reasonable standard or customary fees and charges for assigning, transferring, converting and exchanging any Bond or portion thereof will be paid by the Issuer. In any circumstance, any taxes or governmental charges required to be paid with respect thereto shall be paid by the one requesting such assignment, transfer, conversion or exchange, as a condition precedent to the exercise of such privilege. The Paying Agent /Registrar shall not be required to make any such transfer, conversion, or exchange (i) during the period commencing with the close of business on any Record Date and ending with the opening of business on the next following principal or interest payment date, or (ii) with respect to any Bond or any portion thereof called for redemption prior to maturity, within 45 days prior to its redemption date. IN THE EVENT any Paying Agent /Registrar for the Bonds is changed by the Issuer, resigns, or otherwise ceases to act as such, the Issuer has covenanted in the Bond Ordinance that it promptly will appoint a competent and legally qualified substitute therefor, and cause written notice thereof to be mailed to the Registered Owners of the Bonds. IT IS HEREBY certified, recited and covenanted that this Bond has been duly and validly authorized, issued and delivered; that all acts, conditions and things required or proper to be IPA Exhibit I s:Alegal \our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc performed, exist and be done precedent to or in the authorization, issuance and delivery of this Bond have been performed, existed and been done in accordance with law; and that annual ad valorem taxes sufficient to provide for the payment of the interest on and principal of this Bond, as such interest comes due and such principal matures, have been levied and ordered to be levied against all taxable property in said Issuer, and have been pledged for such payment, within the limit prescribed by law. THE ISSUER HAS RESERVED THE RIGHT to amend the Bond Ordinance as provided therein, and under some (but not all) circumstances amendments thereto must be approved by the Registered Owners of a majority in aggregate principal amount of the outstanding Bonds. BY BECOMING the Registered Owner of this Bond, the Registered Owner thereby acknowledges all of the terms and provisions of the Bond Ordinance, agrees to be bound by such terms and provisions, acknowledges that the Bond Ordinance is duly recorded and available for inspection in the official minutes and records of the governing body of the Issuer, and agrees that the terms and provisions of this Bond and the Bond Ordinance constitute a contract between each Registered Owner hereof and the Issuer. IN WITNESS WHEREOF, the Issuer has caused this Bond to be signed with the manual or facsimile signature of the Mayor of the Issuer (or in the Mayor's absence, of the Major Pro -Tem) and countersigned with the manual or facsimile signature of the City Secretary of said Issuer, and has caused the official seal of the Issuer to be duly impressed, or placed in facsimile, on this Bond. (signature) (signature) City Secretary Mayor (SEAL) [INSERT BOND INSURANCE LEGEND, IF ANY] 13 Exhibit 1 sAlegal \our documents \ordinances\14 \go ordinance 3 -25 -14 cmp.doc (b) [Form of Paying Agent /Registrar's Authentication Certificate] PAYING AGENT /REGISTRAR'S AUTHENTICATION CERTIFICATE (To be executed if this Bond is not accompanied by an executed Comptroller's Registration Certificate) It is hereby certified that this Bond has been issued under the provisions of the Bond Ordinance described in the text of this Bond; and that this Bond has been issued in conversion or replacement of, or in exchange for, a bond, bonds, or a portion of a bond or bonds of a series that originally was approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of Texas. Dated: (c) [Form of Assignment] The Bank of New York Mellon Trust Company, National Association, Dallas, Texas Paying Agent /Registrar Bv: Authorized Representative ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto Please insert Social Security or Taxpayer Identification Number of Transferee (Please print or typewrite name and address, including zip code, of Transferee.) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints , attorney, to register the transfer of the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: Signature Guaranteed: NOTICE: Signature(s) must be guaranteed NOTICE: The signature above must 14 Exhibit I sAlegal \our documents \ordinances \14 \go ordinwice 3 -25 -14 cmp.doc by an eligible guarantor institution correspond with the name of the Registered participating in a securities transfer Owner as it appears upon the front of this association recognized signature guarantee bond in every particular, without alteration program. or enlargement or any change whatsoever. (d) [Form of Comptroller's Registration Certificate] COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certify that this Bond has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and that this Bond has been registered by the Comptroller of Public Accounts of the State of Texas. Witness my signature and seal this Comptroller of Public Accounts of the State of Texas (COMPTROLLER'S SEAL) (e) [Initial Bond Insertions] (i) The Initial Bond shall be in the form set forth in paragraph (a) of this Section, except that: A. immediately under the name of the Bond, the headings "Interest Rate" and "Maturity Date" shall both be completed with the words "As shown below" and "CUSIP No. " shall be deleted. B. the first paragraph shall be deleted and the following will be inserted: "THE CITY OF DENTON, TEXAS, in Denton County, Texas (the "Issuer "), being a political subdivision and municipal corporation of the State of Texas, hereby promises to pay to the Registered Owner specified above, or registered assigns (hereinafter called the "Registered Owner "), on February 15 in each of the years, in the principal installments and bearing interest at the per annum rates set forth in the following schedule: Years Principal Amounts Interest Rates (Information from Pricing Certificate to be inserted) The Issuer promises to pay interest on the unpaid principal amount hereof (calculated on the basis of a 360 -day year of twelve 30 -day months) from , 2014 at the respective Interest Rate per annum specified above. Interest is payable on , 20_, and K Exhibit 1 Olegal \our documents \ordinances \14 \go ordinvice 3 -25 -14 emp.doc semiannually on each and thereafter to the date of payment of the principal installment specified above, or the date of redemption prior to maturity; except, that if this Bond is required to be authenticated and the date of its authentication is later than the first Record Date (hereinafter defined), such Principal Amount shall bear interest from the interest payment date next preceding the date of authentication, unless such date of authentication is after any Record Date but on or before the next following interest payment date, in which case such principal amount shall bear interest from such next following interest payment date; provided, however, that if on the date of authentication hereof the interest on the Bond or Bonds, if any, for which this Bond is being exchanged is due but has not been paid, then this Bond shall bear interest from the date to which such interest has been paid in full." C. The Initial Bond shall be numbered "T- L" 16 Exhibit 1 sAlegal \our documents \ordinances \14 \g0 ordinance 3 -25 -14 cmp.doc SECTION 5. INTEREST AND SINKING FUND. (a) A special Interest and Sinking Fund (the "Interest and Sinking Fund ") is hereby created solely for the benefit of the Bonds, and the Interest and Sinking Fund shall be established and maintained by the Issuer at an official depository bank of the Issuer. The Interest and Sinking Fund shall be kept separate and apart from all other funds and accounts of the Issuer, and shall be used only for paying the interest on and principal of the Bonds. All ad valorem taxes levied and collected for and on account of the Bonds, together with any accrued interest received upon sale of the Bonds, shall be deposited, as collected, to the credit of the Interest and Sinking Fund. During each year while any of the Bonds or interest thereon are outstanding and unpaid, the governing body of the Issuer shall compute and ascertain a rate and amount of ad valorem tax which will be sufficient to raise and produce the money required to pay the interest on the Bonds as such interest becomes due, and to provide and maintain a sinking fund adequate to pay the principal of its Bonds as such principal matures or is scheduled for redemption (but never less than 2% of the original principal amount of the Bonds as a sinking fund each year). Said tax shall be based on the latest approval tax rolls of the Issuer, with full allowance being made for tax delinquencies and the cost of tax collection. Said rate and amount of ad valorem tax is hereby levied, and is hereby ordered to be levied, against all taxable property in the Issuer for each year while any of the Bonds or interest thereon are outstanding and unpaid; and said tax shall be assessed and collected each such year and deposited to the credit of the aforesaid Interest and Sinking Fund. Said ad valorem taxes sufficient to provide for the payment of the interest on and principal of the Bonds, as such interest comes due and such principal matures or is scheduled for redemption, are hereby pledged for such payment, within the limit prescribed by law. Notwithstanding the requirements of this Section, if Surplus Revenues or other lawfully available moneys of the Issuer are actually on deposit or budgeted and appropriated to be deposited in the Interest and Sinking Fund in advance of the time when ad valorem taxes are scheduled to be levied for any year, then the amount of taxes that otherwise would have been required to be levied pursuant to this Section may be reduced to the extent and by the amount of the Surplus Revenues or other lawfully available funds then on deposit or budgeted and appropriated to be deposited in the Interest and Sinking Fund. For purposes of this Section, "Surplus Revenues" means revenues derived by the Issuer from the ownership and operation of the Issuer's Utility System (consisting of its combined waterworks system, sanitary sewer system, and electric light and power system) that remain after the payment of all maintenance and operation expenses thereof, and all debt service, reserve and other requirements in connection with all of the Issuer's revenue obligations (now or hereafter outstanding) or contractual obligations (now or hereafter existing) which are payable from all or any part of the net revenues of the Issuer's Utility System. If Surplus Revenues are budgeted and appropriated for deposit into the Interest and Sinking Fund, the Issuer: (i) shall transfer and deposit in the Interest and Sinking Fund each month an amount of not less than 1 /12th of the annual debt service on the Bonds to be paid from Surplus Revenues until the amount on deposit in the Interest and Sinking Fund equals the amount required for annual debt service on the Bonds; (ii) shall establish, adopt and maintain an annual budget that provides for either the monthly deposit of sufficient Surplus Revenues and /or tax revenues, the monthly deposit of 17 Exhibit 1 sAlegal \our documents \ordinances \14 \go ordinance 3 -25 -14 emp.doc any other legally available funds on hand at the time of the adoption of the annual budget, or a combination thereof, into the Interest and Sinking Fund for the repayment of the Bonds; and (iii) shall at all times maintain and collect sufficient Utility System rates and charges in conjunction with any other legally available funds that, after payment of the costs of operating and maintaining the Utility System, produce revenues in an amount not less than the debt service requirements of all outstanding Utility System revenue bonds of the Issuer and other obligations of the Issuer which are secured in whole or in part by a pledge of revenues of the Utility System and for which the Issuer is budgeting the repayment of such obligations from the revenues of the Utility System, or the Issuer shall provide documentation which evidences the levy of an ad valorem tax rate dedicated to the Interest and Sinking Fund, in conjunction with any other legally available funds except Utility System rates and charges, sufficient for the repayment of Utility System debt service requirements. (b) Chapter 1208, Texas Government Code, applies to the issuance of the Bonds and the pledge of the taxes granted by the Issuer under this Section and Section 9, respectively, and is therefore valid, effective, and perfected. Should Texas law be amended at any time while the Bonds are outstanding and unpaid, the result of such amendment being that the pledge of the taxes granted by the Issuer under this Section is to be subject to the filing requirements of Chapter 9, Texas Business & Commerce Code, in order to preserve to the Registered Owners of the Bonds a security interest in said pledge, the Issuer agrees to take such measures as it determines are reasonable and necessary under Texas law to comply with the applicable provisions of Chapter 9, Texas Business & Commerce Code and enable a filing of a security interest in said pledge to occur. SECTION 6. DEFEASANCE OF BONDS. (a) Any Bond and the interest thereon shall be deemed to be paid, retired and no longer outstanding (a "Defeased Bond ") within the meaning of this Ordinance, except to the extent provided in subsection (d) of this Section, when payment of the principal of such Bond, plus interest thereon to the due date (whether such due date be by reason of maturity or otherwise) either (i) shall have been made or caused to be made in accordance with the terms thereof, or (ii) shall have been provided for on or before such due date by irrevocably depositing with or making available to the Paying Agent /Registrar in accordance with an escrow agreement or other instrument (the "Future Escrow Agreement ") for such payment (1) lawful money of the United States of America sufficient to make such payment or (2) Government Obligations that mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money to provide for such payment, and when proper arrangements have been made by the Issuer with the Paying Agent /Registrar for the payment of its services until all Defeased Bonds shall have become due and payable. At such time as a Bond shall be deemed to be a Defeased Bond hereunder, as aforesaid, such Bond and the interest thereon shall no longer be secured by, payable from, or entitled to the benefits of, the ad valorem taxes herein levied and pledged as provided in this Ordinance, and such principal and interest shall be payable solely from such money or Government Obligations. Notwithstanding any other provision of 18 Exhibit 1 sAlegal \our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc this Ordinance to the contrary, it is hereby provided that any determination not to redeem Defeased Bonds that is made in conjunction with the payment arrangements specified in Subsection (a)(i) or (ii) of this Section shall not be irrevocable, provided that: (1) in the proceedings providing for such payment arrangements, the Issuer expressly reserves the right to call the Defeased Bonds for redemption; (2) gives notice of the reservation of that right to the Registered Owners of the Defeased Bonds immediately following the making of the payment arrangements; and (3) directs that notice of the reservation be included in any redemption notices that it authorizes. (b) Any moneys so deposited with the Paying Agent /Registrar may at the written direction of the Issuer be invested in Government Obligations, maturing in the amounts and times as hereinbefore set forth, and all income from such Government Obligations received by the Paying Agent /Registrar that is not required for the payment of the Bonds and interest thereon, with respect to which such money has been so deposited, shall be turned over to the Issuer, or deposited as directed in writing by the Issuer. Any Future Escrow Agreement pursuant to which the money and /or Government Obligations are held for the payment of Defeased Bonds may contain provisions permitting the investment or reinvestment of such moneys in Government Obligations or the substitution of other Government Obligations upon the satisfaction of the requirements specified in Subsection (a)(i) or (ii) of this Section. All income from such Government Obligations received by the Paying Agent/Registrar which is not required for the payment of the Defeased Bonds, with respect to which such money has been so deposited, shall be remitted to the Issuer or deposited as directed in writing by the Issuer. (c) The term "Government Obligations" means any securities and obligations now or hereafter authorized by state law that are eligible to discharge obligations such as the Bonds, including (i) direct, noncallable obligations of the United States of America, including obligations that are unconditionally guaranteed by the United States of America, (ii) noncallable obligations of an agency or instrumentality of the United States of America, including obligations that are unconditionally guaranteed or insured by the agency or instrumentality and that, on the date the governing body of the Issuer adopts or approves the proceedings authorizing the financial arrangements, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent, and (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that, on the date the governing body of the Issuer adopts or approves the proceedings authorizing the financial arrangements, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent. (d) Until all Defeased Bonds shall have become due and payable, the Paying Agent /Registrar shall perform the services of Paying Agent /Registrar for such Defeased Bonds the same as if they had not been defeased, and the Issuer shall make proper arrangements to provide and pay for such services as required by this Ordinance. (e) In the event that the Issuer elects to defease less than all of the principal amount of Bonds of a maturity, the Paying Agent/Registrar shall select, or cause to be selected, such amount of Bonds by such random method as it deems fair and appropriate. K Exhibit 1 sAlegal \our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc SECTION 7. DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED BONDS. (a) Replacement Bonds. In the event any outstanding Bond is damaged, mutilated, lost, stolen or destroyed, the Paying Agent /Registrar shall cause to be printed, executed and delivered, a new Bond of the same principal amount, maturity and interest rate, as the damaged, mutilated, lost, stolen or destroyed Bond, in replacement for such Bond in the manner hereinafter provided. (b) Application for Replacement Bonds. Application for replacement of damaged, mutilated, lost, stolen or destroyed Bonds shall be made by the Registered Owner thereof to the Paying Agent /Registrar. In every case of loss, theft or destruction of a Bond, the Registered Owner applying for a replacement Bond shall furnish to the Issuer and to the Paying Agent /Registrar such security or indemnity as may be required by them to save each of them harmless from any loss or damage with respect thereto. Also, in every case of loss, theft or destruction of a Bond, the Registered Owner shall furnish to the Issuer and to the Paying Agent /Registrar evidence to their satisfaction of the loss, theft or destruction of such Bond, as the case may be. In every case of damage or mutilation of a Bond, the Registered Owner shall surrender to the Paying Agent /Registrar for cancellation the Bond so damaged or mutilated. (c) No Default Occurred. Notwithstanding the foregoing provisions of this Ordinance, in the event any such Bond shall have matured, and no default has occurred that is then continuing in the payment of the principal of, redemption premium, if any, or interest on the Bond, the Issuer may authorize the payment of the same (without surrender thereof except in the case of a damaged or mutilated Bond) instead of issuing a replacement Bond, provided security or indemnity is furnished as above provided in this Section. (d) Charge for Issuing_ Replacement Bonds. Prior to the issuance of any replacement Bond, the Paying Agent /Registrar shall charge the Registered Owner of such Bond with all legal, printing, and other expenses in connection therewith. Every replacement Bond issued pursuant to the provisions of this Section by virtue of the fact that any Bond is lost, stolen or destroyed shall constitute a contractual obligation of the Issuer whether or not the lost, stolen or destroyed Bond shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Ordinance equally and proportionately with any and all other Bonds duly issued under this Ordinance. (e) Authority for Issuing Replacement Bonds. In accordance with Sec. 1206.022, Government Code, this Section 7 of this Ordinance shall constitute authority for the issuance of any such replacement Bond without necessity of further action by the governing body of the Issuer or any other body or person, and the duty of the replacement of such Bonds is hereby authorized and imposed upon the Paying Agent/Registrar, and the Paying Agent /Registrar shall authenticate and deliver such Bonds in the form and manner and with the effect, as provided in Section 3(a) of this Ordinance for Bonds issued in conversion and exchange for other Bonds. SECTION 8. CUSTODY, APPROVAL, AND REGISTRATION OF BONDS; BOND COUNSEL'S OPINION; CUSIP NUMBERS AND CONTINGENT INSURANCE PROVISION, IF OBTAINED; ENGAGEMENT OF BOND COUNSEL. PQ Exhibit 1 sAlegal \our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc (a) The Mayor of the Issuer is hereby authorized to have control of the Initial Bond and all necessary records and proceedings pertaining to the Bonds pending its delivery and its investigation, examination, and approval by the Attorney General, and its registration by the Comptroller. Upon registration of the Initial Bond said Comptroller (or a deputy designated in writing to act for said Comptroller) shall manually sign the Comptroller's Registration Certificate attached to such Bond, and the seal of said Comptroller shall be impressed, or placed in facsimile, on such Bond. The approving legal opinion of the Issuer's Bond Counsel and the assigned CUSIP numbers may, at the option of the Issuer, be printed on the Bonds issued and delivered under this Ordinance, but neither shall have any legal effect, and shall be solely for the convenience and information of the Registered Owners of the Bonds. In addition, if bond insurance is obtained, the Bonds may bear an appropriate legend as provided by the insurer. (b) The obligation of the Purchaser to accept delivery of the Bonds is subject to the Purchaser being furnished with the final, approving opinion of McCall, Parkhurst & Horton L.L.P., bond counsel to the Issuer, which opinion shall be dated as of and delivered on the date of initial delivery of the Bonds to the Purchaser. The engagement of such firm as bond counsel to the Issuer in connection with the issuance, sale and delivery of the Bonds is hereby approved and confirmed. The execution and delivery of an engagement letter between the Issuer and such firm, with respect to such services as bond counsel, is hereby authorized in such form as may be approved by the Mayor, and the Mayor is hereby authorized to execute such engagement letter. SECTION 9. COVENANTS REGARDING TAX EXEMPTION OF INTEREST ON THE BONDS. (a) Covenants. The Issuer covenants to take any action necessary to assure, or refrain from any action that would adversely affect, the treatment of the Bonds as obligations described in section 103 of the Internal Revenue Code of 1986, as amended (the "Code "), the interest on which is not includable in the "gross income" of the holder for purposes of federal income taxation. In furtherance thereof, the Issuer covenants as follows: (1) to take any action to assure that no more than 10 percent of the proceeds of the Bonds (less amounts deposited to a reserve fund, if any) are used for any "private business use," as defined in section 141(b)(6) of the Code or, if more than 10 percent of the proceeds or the projects financed or refinanced therewith are so used, such amounts, whether or not received by the Issuer, with respect to such private business use, do not, under the terms of this Ordinance or any underlying arrangement, directly or indirectly, secure or provide for the payment of more than 10 percent of the debt service on the Bonds, in contravention of section 141(b)(2) of the Code; (2) to take any action to assure that in the event that the "private business use" described in subsection (1) hereof exceeds 5 percent of the proceeds of the Bonds or the projects financed therewith (less amounts deposited into a reserve fund, if any) then the amount in excess of 5 percent is used for a "private business use" that is "related" and not "disproportionate," within the meaning of section 141(b)(3) of the Code, to the governmental use; 21 Exhibit 1 sAlegal\our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc (3) to take any action to assure that no amount that is greater than the lesser of $5,000,000, or 5 percent of the proceeds of the Bonds (less amounts deposited into a reserve fund, if any) is directly or indirectly used to finance loans to persons, other than state or local governmental units, in contravention of section 141(c) of the Code; (4) to refrain from taking any action that would otherwise result in the Bonds being treated as "private activity bonds" within the meaning of section 141(b) of the Code; (5) to refrain from taking any action that would result in the Bonds being "federally guaranteed" within the meaning of section 149(b) of the Code; (6) to refrain from using any portion of the proceeds of the Bonds, directly or indirectly, to acquire or to replace funds that were used, directly or indirectly, to acquire investment property (as defined in section 148(b)(2) of the Code) that produces a materially higher yield over the term of the Bonds, other than investment property acquired with: (A) proceeds of the Bonds invested for a reasonable temporary period of 3 years or less or, in the case of a refunding bond, for a period of 30 days or less until such proceeds are needed for the purpose for which the bonds are issued, (B) amounts invested in a bona fide debt service fund, within the meaning of section 1.148 -1(b) of the rules and regulations of the United States Department of the Treasury ( "Treasury Regulations "), and (C) amounts deposited in any reasonably required reserve or replacement fund to the extent such amounts do not exceed 10 percent of the proceeds of the Bonds; (7) to otherwise restrict the use of the proceeds of the Bonds or amounts treated as proceeds of the Bonds, as may be necessary, so that the Bonds do not otherwise contravene the requirements of section 148 of the Code (relating to arbitrage) and, to the extent applicable, section 149(d) of the Code (relating to advance refundings); and (8) to pay to the United States of America at least once during each five -year period (beginning on the date of delivery of the Bonds) an amount that is at least equal to 90 percent of the "Excess Earnings," within the meaning of section 148(0 of the Code and to pay to the United States of America, not later than 60 days after the Bonds have been paid in full, 100 percent of the amount then required to be paid as a result of Excess Earnings under section 148(f) of the Code. (b) Rebate Fund. In order to facilitate compliance with the above covenant (a)(8), a "Rebate Fund" is hereby established by the Issuer for the sole benefit of the United States of America, and such Rebate Fund shall not be subject to the claim of any other person, including without limitation the Bondholders. The Rebate Fund is established for the additional purpose of compliance with section 148 of the Code. 22 Exhibit 1 sAlegal \our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc (c) Use of Proceeds. For purposes of the foregoing covenants (a)(1) and (a)(2), the Issuer understands that the term "proceeds" includes "disposition proceeds" as defined in the Treasury Regulations and, in the case of refunding bonds, transferred proceeds (if any) and proceeds of the refunded bonds expended prior to the date of issuance of the Bonds. It is the understanding of the Issuer that the covenants contained herein are intended to assure compliance with the Code and any regulations or rulings promulgated by the United States Department of the Treasury pursuant thereto. In the event that regulations or rulings are hereafter promulgated that modify or expand provisions of the Code, as applicable to the Bonds, the Issuer will not be required to comply with any covenant contained herein to the extent that such failure to comply, in the opinion of nationally recognized bond counsel, will not adversely affect the exemption from federal income taxation of interest on the Bonds under section 103 of the Code. In the event that regulations or rulings are hereafter promulgated that impose additional requirements applicable to the Bonds, the Issuer agrees to comply with the additional requirements to the extent necessary, in the opinion of nationally recognized bond counsel, to preserve the exemption from federal income taxation of interest on the Bonds under section 103 of the Code. In furtherance of such intention, the Issuer hereby authorizes and directs the Mayor or Pricing Officer to execute any documents, certificates or reports required by the Code and to make such elections, on behalf of the Issuer, that may be permitted by the Code as are consistent with the purpose for the issuance of the Bonds. (d) Allocation of, and Limitation on Expenditures for the Projects. The Issuer covenants to account for the expenditure of sale proceeds and investment earnings to be used for the construction and acquisition of the Improvement Projects on its books and records by allocating proceeds to expenditures within 18 months of the later of the date that (1) the expenditure is made, or (2) the Improvement Projects are completed. The foregoing notwithstanding, the Issuer shall not expend proceeds of the sale of the Bonds or investment earnings thereon more than 60 days after the earlier of (1) the fifth anniversary of the delivery of the Bonds, or (2) the date the Bonds are retired, unless the Issuer obtains an opinion of nationally- recognized bond counsel that such expenditure will not adversely affect the status, for federal income tax purposes, of the Bonds or the interest thereon. For purposes hereof, the Issuer shall not be obligated to comply with this covenant if it obtains an opinion that such failure to comply will not adversely affect the excludability for federal income tax purposes from gross income of the interest. (e) Disposition of Projects. The Issuer covenants that the Projects and the projects refinanced by the Bonds will not be sold or otherwise disposed in a transaction resulting in the receipt by the Issuer of cash or other compensation, unless the Issuer obtains an opinion of nationally- recognized bond counsel that such sale or other disposition will not adversely affect the tax - exempt status of the Bonds. For purposes of the foregoing, the portion of the property comprising personal property and disposed in the ordinary course shall not be treated as a transaction resulting in the receipt of cash or other compensation. For purposes hereof, the Issuer shall not be obligated to comply with this covenant if it obtains a legal opinion that such failure to comply will not adversely affect the excludability for federal income tax proposes from gross income of the interest. (f) Reimbursement. This Ordinance is intended to satisfy the official intent requirements set forth in section 1.150 -2 of the Treasury Regulations. 23 Exhibit 1 sAlegal\our d0cuments \ordinances \14 \go ordinance 3 -25 -14 cmp.doc SECTION 10. SALE OF BONDS AND APPROVAL OF OFFICIAL STATEMENT; FURTHER PROCEDURES. (a) The Bonds shall be sold and delivered subject to the provisions of Section 1 and Section 2 hereof through a negotiated sale, competitive sale or private placement and pursuant to the terms and provisions of a purchase contract or a notice of sale and official bid form (in either case, the "Purchase Agreement "), the terms and provisions of which are to be determined by the Pricing Officer in accordance with Section 2 hereof, and in which the purchaser or purchasers of the Bonds (the "Purchaser ") shall be designated. The Pricing Officer is hereby authorized to execute and deliver the Purchase Agreement for an on behalf of the Issuer. The Bonds shall initially be registered in the name of the Purchaser or its designee. (b) The Issuer hereby approves the form and content of the draft preliminary official statement relating to the Bonds and any addenda, supplement or amendment thereto, and approves the distribution of such preliminary official statement in the reoffering of the Bonds by the Purchaser in final form, with such changes therein or additions thereto as the Pricing Officer may deem advisable. The Pricing Officer is hereby authorized, in the name and on behalf of the Issuer, to approve, distribute, and deliver a final preliminary official statement and a final official statement relating to the Bonds to be used by the Purchaser in the marketing of the Bonds. (c) The Pricing Officer is authorized, in connection with effecting the sale of the Bonds, to obtain from a municipal bond insurance company so designated in the Pricing Certificate (the "Insurer ") a municipal bond insurance policy (the "Insurance Policy ") in support of the Bonds. To that end, should the Pricing Officer exercise such authority and commit the Issuer to obtain a municipal bond insurance policy, for so long as the Insurance Policy is in effect, the requirements of the Insurer relating to the issuance of the Insurance Policy as set forth in the Pricing Certificate are incorporated by reference into this Ordinance and made a part hereof for all purposes, notwithstanding any other provision of this Ordinance to the contrary. The Pricing Officer shall have the authority to execute any documents to effect the issuance of the Insurance Policy by the Insurer, including commitment agreements, membership agreements in mutual insurance companies and other similar agreements. (d) The Mayor and Mayor Pro Tem, the City Manager, Pricing Officer and City Secretary and all other officers, employees and agents of the Issuer, and each of them, shall be and they are hereby expressly authorized, empowered and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowledge and deliver in the name and under the corporate seal and on behalf of the Issuer a Paying Agent /Registrar Agreement with the Paying Agent /Registrar and all other instruments, whether or not herein mentioned, as may be necessary or desirable in order to carry out the terms and provisions of this Ordinance, the Pricing Certificate, the Bonds, the sale of the Bonds, any Purchase Agreement and the Official Statement. In case any officer whose signature shall appear on any Bond shall cease to be such officer before the delivery of such Bond, such signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery.. SECTION 11. INTEREST EARNINGS ON BOND PROCEEDS. Interest earnings 24 Exhibit 1 sAlegal \our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc derived from the investment of proceeds from the sale of the Bonds issued for the Improvement Projects shall be used along with other Bond proceeds for the Improvement Projects; provided that after completion of such purpose, if any of such interest earnings remain on hand, such interest earnings shall be deposited in the Interest and Sinking Fund. It is further provided, however, that any interest earnings on Bond proceeds that are required to be rebated to the United States of America pursuant to Section 9 hereof in order to prevent the Bonds from being arbitrage bonds shall be so rebated and not considered as interest earnings for the purposes of this Section. SECTION 12. CONSTRUCTION FUND OR ACCOUNT; INVESTMENT. (a) The proceeds of sale of the Bonds, excluding any accrued interest received from the initial purchaser of the Bonds and any other amounts to be deposited into the Interest and Sinking Fund, any amounts to be deposited into the escrow fund under the Escrow Agreement approved in Section 16 of this Ordinance and amounts to pay costs of issuance of the Bonds, shall be deposited in one or more construction funds or accounts for use, along with any investment earnings thereon, by the Issuer for payment of all lawful costs associated with the acquisition and construction of the Improvement Projects as hereinbefore provided. Upon payment of all such costs, any moneys remaining on deposit in said funds or accounts, including investment earnings, shall be transferred to the Interest and Sinking fund. Amounts so deposited to the Interest and Sinking Fund shall be used in the manner described in Section 5 of this Ordinance. (b) The Issuer may invest proceeds of the Bonds (including investment earnings thereon) issued for Improvement Projects and amounts deposited into the Interest and Sinking Fund in investments authorized by the Public Funds Investment Act, Chapter 2256, Texas Government Code, as amended; provided, however, that the Issuer hereby covenants that the proceeds of the sale of the Bonds will be used as soon as practicable for the purposes for which the Bonds are issued. (c) All deposits authorized or required by this Ordinance shall be secured to the fullest extent required by law for the security of public funds. SECTION 13. COMPLIANCE WITH RULE 15c2 -12. (a) Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: "MSRB" means the Municipal Securities Rulemaking Board. "Rule" means SEC Rule 15c2 -12, as amended from time to time. "SEC" means the United States Securities and Exchange Commission. (b) Annual Reports. 25 Exhibit 1 sAlegal \our documents \ordinances\14 \go ordinance 3 -25 -14 cmp.doc (i) The Issuer shall provide annually to the MSRB, in a designated electronic format as prescribed by the MSRB, within six months after the end of each fiscal year ending in or after 2014, financial information and operating data with respect to the Issuer of the general type included in the final Official Statement authorized by Section 10 of this Ordinance, being the information described in the Pricing Certificate. Any financial statements so to be provided shall be (1) prepared in accordance with the accounting principles described in the financial statements appended to the Official Statement, or such other accounting principles as the Issuer may be required to employ from time to time pursuant to state law or regulation, and (2) audited, if the Issuer commissions an audit of such statements and the audit is completed within the period during which they must be provided. If the audit of such financial statements is not completed within such period, then the Issuer shall provide unaudited financial statements within such period, and audited financial statements for the applicable fiscal year to the MSRB, when and if the audit report on such statements become available. All documents provided to the MSRB pursuant to this Section shall be accompanied by identifying information as prescribed by the MSRB. (ii) If the Issuer changes its fiscal year, it will notify the MSRB of the change (and of the date of the new fiscal year end) prior to the next date by which the Issuer otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to the MSRB or filed with the SEC. (c) Event Notices. (i) The Issuer shall notify the MSRB in an electronic format as prescribed by the MSRB, in a timely manner (but not in excess of ten business days after the occurrence of the event) of any of the following events with respect to the Bonds, if such event is material within the meaning of the federal securities laws: 1. Non - payment related defaults; 2. Modifications to rights of holders of the Bonds; 3. Bond calls; 4. Release, substitution, or sale of property securing repayment of the Bonds; 5. The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms; 6. Appointment of a successor or additional trustee or the change of name of a trustee. 26 Exhibit 1 sAlegal \our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc (ii) The Issuer shall notify the MSRB in an electronic format as prescribed by the MSRB, in a timely manner (but not in excess of ten business days after the occurrence of the event) of any of the following events with respect to the Bonds, without regard to whether such event is considered material within the meaning of the federal securities laws: 1. Principal and interest payment delinquencies; 2. Unscheduled draws on debt service reserves reflecting financial difficulties; 3. Unscheduled draws on credit enhancements reflecting financial difficulties; 4. Substitution of credit or liquidity providers, or their failure to perform; 5. Adverse tax opinions or the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701 BTEB) or other material notices or determinations with respect to the tax - exempt status of the Bonds, or other material events affecting the tax - exempt status of the Bonds; 6. Tender offers; 7. Defeasances; 8. Rating changes; 9. Bankruptcy, insolvency, receivership or similar event of an obligated person (iii) The Issuer shall notify the MSRB, in a timely manner, of any failure by the Issuer to provide financial information or operating data in accordance with subsection (b) of this Section by the time required by such subsection. (d) Limitations Disclaimers and Amendments. (i) The Issuer shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the Issuer remains an "obligated person" with respect to the Bonds within the meaning of the Rule, except that the. Issuer in any event will give notice of any deposit made in accordance with this Ordinance or applicable law that causes the Bonds no longer to be outstanding. (ii) The provisions of this Section are for the sole benefit of the Registered Owners and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The Issuer undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the Issuer's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The Issuer does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. NA Exhibit 1 sAlegal \our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc (iii) UNDER NO CIRCUMSTANCES SHALL THE ISSUER BE LIABLE TO THE REGISTERED OWNER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE ISSUER, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. (iv) No default by the Issuer in observing or performing its obligations under this Section shall comprise a breach of or default under this Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the Issuer under federal and state securities laws. (v) The provisions of this Section may be amended by the Issuer from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the Issuer, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule since such offering as well as such changed circumstances and (2) either (a) the Registered Owners of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the outstanding Bonds consent to such amendment or (b) a person that is unaffiliated with the Issuer (such as nationally recognized bond counsel) determined that such amendment will not materially impair the interest of the Registered Owners and beneficial owners of the Bonds. The Issuer may also amend or repeal the provisions of this continuing disclosure agreement if the SEC amends or repeals the applicable provision of the Rule or a court of final jurisdiction enters judgment that such provisions of the Rule are invalid, but only if and to the extent that the provisions of this sentence would not prevent an underwriter from lawfully purchasing or selling Bonds in the primary offering of the Bonds. If the Issuer so amends the provisions of this Section, it shall include with any amended financial information or operating data next provided in accordance with subsection (b) of this Section an explanation, in narrative form, of the reason for the amendment and of the impact of any change in the type of financial information or operating data so provided. (e) Amendment of the Rule. The provisions of this Section shall be revised by the Pricing Officer to reflect the requirements of the Rule if the Rule is amended after the adoption of this Ordinance but prior to the delivery of the Bonds so as to permit an underwriter to purchase or sell Bonds in the primary offering of the Bonds in compliance with the Rule. Any such revisions shall be set forth in the Pricing Certificate and are incorporated by reference into this Ordinance and made a part hereof for all purposes, notwithstanding any other provision of this Ordinance to the contrary. 28 Exhibit 1 sAlegal \our documents \ordinances \14 \go ordinan ce 3 -25 -14 cmp.doe SECTION 14. METHOD OF AMENDMENT. The Issuer hereby reserves the right to amend this Ordinance subject to the following terms and conditions, to -wit: (a) The Issuer may from time to time, without the consent of any holder, except as otherwise required by paragraph (b) below, amend or supplement this Ordinance in order to (i) cure any,ambiguity, defect or omission in this Ordinance that does not materially adversely affect the interests of the holders, (ii) grant additional rights or security for the benefit of the holders, (iii) add events of default as shall not be inconsistent with the provisions of this Ordinance and that shall not materially adversely affect the interests of the holders, (iv) qualify this Ordinance under the Trust Indenture Act of 1939, as amended, or corresponding provisions of federal laws from time to time in effect, or (v) make such other provisions in regard to matters or questions arising under this Ordinance as shall not be inconsistent with the provisions of this Ordinance and that shall not in the opinion of the Issuer's Bond Counsel materially adversely affect the interests of the holders. (b) Except as provided in paragraph (a) above, the holders of Bonds aggregating in principal amount a majority of the aggregate principal amount of then outstanding Bonds that are the subject of a proposed amendment shall have the right from time to time to approve any amendment hereto that may be deemed necessary or desirable by the Issuer; provided, however, that without the consent of 100% of the holders in aggregate principal amount of the then outstanding Bonds, nothing herein contained shall permit or be construed to permit amendment of the terms and conditions of this Ordinance or in any of the Bonds so as to: (1) Make any change in the maturity of any of the outstanding Bonds; (2) Reduce the rate of interest borne by any of the outstanding Bonds; (3) Reduce the amount of the principal of, or redemption premium, if any, payable on any outstanding Bonds; (4) Modify the terms of payment of principal or of interest or redemption premium on outstanding Bonds or any of them or impose any condition with respect to such payment; or (5) Change the minimum percentage of the principal amount of Bonds necessary for consent to such amendment. (c) If at any time the Issuer shall desire to amend this Ordinance under this Section, the Issuer shall send by U.S. mail to each Registered Owner of the affected Bonds a copy of the proposed amendment and cause notice of the proposed amendment to be published at least once in a financial publication published in The City of New York, New York or in the State of Texas. Such published notice shall briefly set forth the nature of the proposed amendment and shall state that a copy thereof is on file at the office of the Issuer for inspection by all holders of such Bonds. 29 Exhibit 1 sAlegal \our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc (d) Whenever at any time within one year from the date of publication of such notice the Issuer shall receive an instrument or instruments executed by the holders of at least a majority in aggregate principal amount of all of the Bonds then outstanding that are required for the amendment, which instrument or instruments shall refer to the proposed amendment and that shall specifically consent to and approve such amendment, the Issuer may adopt the amendment in substantially the same form. (e) Upon the adoption of any amendatory Ordinance pursuant to the provisions of this Section, this Ordinance shall be deemed to be modified and amended in accordance with such amendatory Ordinance, and the respective rights, duties, and obligations of the Issuer and all holders of such affected Bonds shall thereafter be determined, exercised, and enforced, subject in all respects to such amendment. (f) Any consent given by the holder of a Bond pursuant to the provisions of this Section shall be irrevocable for a period of six months from the date of the publication of the notice provided for in this Section, and shall be conclusive and binding upon all future holders of the same Bond during such period. Such consent may be revoked at any time after six months from the date of the publication of said notice by the holder who gave such consent, or by a successor in title, by filing notice with the Issuer, but such revocation shall not be effective if the holders of a majority in aggregate principal amount of the affected Bonds then outstanding, have, prior to the attempted revocation, consented to and approved the amendment. For the purposes of establishing ownership of the Bonds, the Issuer shall rely solely upon the registration of the ownership of such Bonds on the Registration Books kept by the Paying Agent/Registrar. SECTION 15. DEFAULT AND REMEDIES. (a) Events of Default. Each of the following occurrences or events for the purpose of this Ordinance is hereby declared to be an Event of Default: (i) the failure to make payment of the principal of or interest on any of the Bonds when the same becomes due and payable; or (ii) default in the performance or observance of any other covenant, agreement or obligation of the Issuer, the failure to perform which materially, adversely affects the rights of the Registered Owners of the Bonds, including, but not limited to, their prospect or ability to be repaid in accordance with this Ordinance, and the continuation thereof for a period of 60 days after notice of such default is given by any Registered Owner to the Issuer. (b) Remedies for Default. (i) Upon the happening of any Event of Default, then and in every case, any Registered Owner or an authorized representative thereof, including, but not limited to, a trustee or trustees therefor, may proceed against the Issuer for the purpose of protecting and enforcing the rights of the Registered Owners under this Ordinance, by mandamus or other 30 Exhibit 1 sAlegal \our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc suit, action or special proceeding in equity or at law, in any court of competent jurisdiction, for any relief permitted by law, including the specific performance of any covenant or agreement contained herein, or thereby to enjoin any act or thing that may be unlawful or in violation of any right of the Registered Owners hereunder or any combination of such remedies. (ii) It is provided that all such proceedings shall be instituted and maintained for the equal benefit of all Registered Owners of Bonds then outstanding. (c) Remedies Not Exclusive. (i) No remedy herein conferred or reserved is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or under the Bonds or now or hereafter existing at law or in equity; provided, however, that notwithstanding any other provision of this Ordinance, the right to accelerate the debt evidenced by the Bonds shall not be available as a remedy under this Ordinance. (ii) The exercise of any remedy herein conferred or reserved shall not be deemed a waiver of any other available remedy. (iii) By accepting the delivery of a Bond authorized under this Ordinance, such Registered Owner agrees that the certifications required to effectuate any covenants or representations contained in this Ordinance do not and shall never constitute or give rise to a personal or pecuniary liability or charge against the officers, employees or agents of the Issuer or the members of its governing body. SECTION 16. APPROVAL OF ESCROW AGREEMENT AND TRANSFER OF FUNDS. In furtherance of authority granted by Section 1207.007(b), Texas Government Code, the Mayor or the Pricing Officer are further authorized to enter into and execute on behalf of the Issuer with the escrow agent named therein, an escrow or similar agreement, in the form and substance as shall be approved by the Pricing Officer, which agreement will provide for the payment in full of the Refunded Obligations. In addition, the Mayor, Pricing Officer or other officer of the Issuer is authorized to purchase such securities, to execute such subscriptions for the purchase of the Escrowed Securities, (as defined in the agreement), if any, and to authorize such contributions to the escrow fund as provided in the agreement. SECTION 17. REDEMPTION OF REFUNDED OBLIGATIONS. (a) Subject to the execution and delivery of the Purchase Agreement with the Purchaser, the Issuer hereby directs that the Refunded Obligations be called for redemption on the dates and at such prices as set forth in the Pricing Certificate. The Pricing Officer is hereby authorized and directed to issue or cause to be issued the Notices of Redemption of the Refunded Obligations in substantially the form set forth in Exhibit A attached hereto, completed with information from the Pricing Certificate, to the paying agent /registrar(s) for the Refunded Obligations. 31 Exhibit 1 s: \legal \our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc (b) In addition, the paying agent / registrar(s) for the Refunded Obligations is hereby directed to provide the appropriate notices of redemption and defeasance as specified by the ordinances authorizing the issuance of the Refunded Obligations and is hereby directed to make appropriate arrangements so that the Refunded Obligations may be redeemed on their respective redemption dates. The Refunded Obligations shall be presented for redemption at the paying agent/registrar therefore, and shall not bear interest after the date fixed for redemption. (c) If the redemption of the Refunded Obligations results in the partial refunding of any maturity of the Refunded Obligations, the Pricing Officer shall direct the paying agent/registrar(s) for the Refunded Obligations to designate at random and by lot which of the Refunded Obligations will be payable from and secured solely from ad valorem taxes of the Issuer pursuant to the ordinance of the Issuer authorizing the issuance of such Refunded Obligations (the "Refunded Obligation Ordinance "). The paying agent /registrar(s) shall notify by first -class mail all registered owners of all affected obligations of such maturities that: (i) a portion of such obligations have been refunded and are secured until final maturity solely with cash and investments maintained by the Escrow Agent in the Escrow Fund, (ii) the principal amount of all affected obligations of such maturities registered in the name of such registered owner that have been refunded and are payable solely from cash and investments in the Escrow Fund and the remaining principal amount of all affected obligations of such maturities registered in the name of such registered owner, if any, have not been refunded and are payable and secured solely from ad valorem taxes of the Issuer described in the Refunded Obligation Ordinance, (iii) the registered owner is required to submit his or her Refunded Obligations to the paying agent /registrar(s), for the purposes of re- registering such registered owner's obligations and assigning new CUSIP numbers in order to distinguish the source of payment for the principal and interest on such obligations, and (iv) payment of principal of and interest on such obligations may, in some circumstances, be delayed until such obligations have been re- registered and new CUSIP numbers have been assigned as required by (iii) above. (d) The source of funds for payment of the principal of and interest on the Refunded Obligations on their respective maturity or redemption dates shall be from the funds placed in escrow with the Escrow Agent, pursuant to the Escrow Agreement approved in Section 16 of this Ordinance. SECTION 18. APPROPRIATION. To pay the debt service coming due on the Bonds, if any, prior to receipt of the taxes levied to pay such debt service, there is hereby appropriated from current funds on hand, which are hereby certified to be on hand and available for such purpose, an amount, which together with capitalized interest received from the sale of the Bonds, if any, will be sufficient to pay such debt service, and such amount shall be used for no other purpose. SECTION 19. EFFECTIVE DATE. In accordance with the provisions of Texas Government Code Section 1201.028, this Ordinance shall be effective immediately upon its adoption by the City Council. SECTION 20. SEVERABILITY. If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or application thereof to any persons or circumstances is held 32 Exhibit 1 sAlegal\our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc invalid or unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining portion of this Ordinance, despite such invalidity, which remaining portions shall remain in full force and effect. [Signature page follows] 33 Exhibit 1 s: \legal \our documents \ordinances \14 \go ordinance 3 -25 -14 emp.doc PASSED AND APPROVED this the day of , 2014. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY FEW APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY r; BY: sAlegal \our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc Purpose Street Improvements Exhibit 1 SCHEDULEI November 6, 2012 Election Voted Bonds Amount Amount Previously Unissued Authorized Issued* Balance Amount Being $20,400,000 $4,000,00 $16,400,000 $4,000,000 0 * Includes principal and premium. S -1 Remaining Balance $12,400,00 0 Exhibit 1 sAlegal \our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc SCHEDULE II Schedule of Eligible Refunded Obligations City of Denton General Obligation Refunding Bonds, Series 2004 Total $ 3,335,000 S -1 Principal Amount Maturity Date Outstanding 2/15/2015 S 945.000 2/15/2016 705,000 2/15/2017 725.000 2/15/2018 325,000 2/15/2019 320,000 2/15/2020 3.15,000 Total $ 3,335,000 S -1 Exhibit 1 sAlegal \our documents \ordinances \14 \go ordinance 3 -25 -14 cmp.doc • Notice of Redemption NOTICE IS HEREBY GIVEN that the City of Denton, Texas has called for redemption the outstanding Bonds of the City described as follows: City of Denton General Obligation Refunding Bonds, Series 2004, dated December 1, 2004, scheduled to mature on February 15, 20_ through February 15, 20_, aggregating $ (and being all of the outstanding bonds of said series scheduled to mature on and after February 15, 20_); Call date: , 20_; redeemable at a redemption price of par plus accrued interest at the principal corporate offices of The Bank of New York Mellon Trust Company, N.A., only upon presentation by the owner thereof. If moneys sufficient for the payment of such redemption price are held by or on behalf of the paying agent, the described Bonds shall become due and payable on the redemption date specified, and the interest thereon shall cease to accrue from and after the redemption date. In compliance with section 3406 of the Internal Revenue Code of 1986, payors making certain payments due on debt securities may be obligated to deduct and withhold 30 percent of such payment from the remittance to any payee who has failed to provide such payor with a valid taxpayer identification number. To avoid the imposition of the withholding of tax, such payees should submit a taxpayer identification number when surrendering the bonds for redemption. NOTICE IS FURTHER GIVEN that all Bonds should be submitted to one of the following address: First Class /Registered/ Express Delivery Certified Mail The Bank of New York Mellon Trust Company, N.A Global Corporate Trust P.O. Box 396 East Syracuse, New York 13057 Dated: 20 The Bank of New York Mellon Trust Company, N.A. Global Corporate Trust 1 11 Sanders Creek Parkway East Syracuse, New York 13057 Hand Delivery The Bank of New York Mellon Trust Company, N.A. Global Corporate Trust Corporate Trust Window 101 Barclay Street 1 S1 Floor East New York, New York 10286 By: The Bank of New York Mellon Trust Company, National Association FEW Individual Item C AGENDA INFORMATION SHEET AGENDA DATE: April 15, 2014 DEPARTMENT: City Manager's Office ACM: Bryan Langley SUBJECT Consider nominations /appointments to the City's Boards and Commissions: 1. Public Art Committee 2. Zoning Board of Adjustment BACKGROUND Below is the list of outstanding Boards and Commissions nominations and the Council Member responsible for the nomination: Public Art Committee — Tristan Bynum has resigned from the Committee. This is a nomination for Council Member Gregory. Zoning Board of Adjustment — There are two alternate positions vacant. These are nominations for the entire Council. Nominations could be made and voted on at this meeting should the Council desire. Approval would be contingent on completion of the confirmation process. If you require any further information, please let me know. Respectfully submitted: Jennifer Walters City Secretary Individual Herr€ D Agenda Information Sheet DATE: April 15, 2014 DEPARTMENT: Environmental Services and Sustainability CM/ ACM: Howard Martin, 349 -8232 hV- SUBJECT Consider adoption of an ordinance of the City of Denton, Texas to implement and enforce the Texas State Rule on locally enforced motor vehicle idling limitations and to approve entering into a memorandum of agreement with the Texas Commission on Environmental Quality to enforce this rule locally; providing an effective date. BACKGROUND During the March 18, 2014 City Council Work Session Amanda Brimmer from North Central Texas Council of Governments ( NCTCOG) made a presentation about locally enforced idling restrictions. As of October 2013, twenty -nine entities, in our region, have adopted local ordinances. The majority of these entities have adopted the NCTCOG model ordinance and reference the state rule. Air Quality improvement continues to be a challenge for the region; idling restrictions are another step toward making necessary changes to reduce pollutants. EPA regards diesel exhaust as one of the greatest public health risks and affirms that it is a major contributor to ozone formation due to excess emissions of NOx and VOC. Prolonged exposure can have adverse health effects, such as irritation of the airways and reduced lung function. It can also contribute to coughing, irritation of the throat and chest, and an inability to breathe as deeply or vigorously as normal. In the DFW region, asthma affects 131,262 children and 331,121 adults, according to the American Lung Association's State of the Air 2012 report. In addition, 184,589 North Texans have chronic bronchitis and 71,132 have emphysema, according to the report. Air Quality is a regional concern and the City of Denton must act locally to help improve air quality and reduce health concerns in the region. If the City of Denton chooses to adopt locally enforced restrictions Sustainability staff would partner with Economic Development staff to begin an education campaign, using regionally consistent messaging provided by NCTCOG. Signage and information would be made available to businesses in an effort to educate drivers about idling restrictions. Additionally, a voluntary program with Denton ISD would be proposed for school drop off and pick up. A pre /post survey of existing conditions could be conducted and reported back to the City Council after a year of education has been implemented. Staff would suggest revisiting the ordinance after a year to determine progress with voluntary reductions and discuss future education or enforcement options. OPTIONS 1. Approve adoption of ordinance 2. Request additional information 3. Deny approval of ordinance Council Agenda Information Sheet April 15, 2014 Page 2 RECOMMENDATION Staff recommends adoption of NCTCOG model ordinance on locally enforced motor vehicle idling limitations, and implementation of a comprehensive education campaign. ESTIMATED SCHEDULE OF PROJECT May 2014 — May 2015 Implement Education Campaign PRIOR ACTION /REVIEW (Council, Boards, Commissions) March 18 — City Council Work Session April 7, 2014 - City Council Committee on the Environment recommended ordinance be considered by full City Council EXHIBITS 1. NCTCOG Model Ordinance 2. Local Government Guide to North Texas Idling Restrictions Respectfully submitted: �h Ken Banks, Director Environmental Services and Sustainability Prepared by: Sustainability and Special Projects Administrator EXHIBIT I ORDINANCE NO. 2014- AN ORDINANCE OF THE CITY OF DENTON, TEXAS TO IMPLEMENT AND ENFORCE THE TEXAS STATE RULE ON LOCALLY ENFORCED MOTOR VEHICLE IDLING LIMITATIONS AND TO APPROVE ENTERING INTO A MEMORANDUM OF AGREEMENT WITH THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY TO ENFORCE THIS RULE LOCALLY; PROVIDING AN EFFECTIVE DATE. WHEREAS, the Dallas-Fort Worth area is a federally-designated non-attainment area for the pollutant ozone; and air quality impacts the public and the economic health of the entire region; and WHEREAS, the U.S. Environmental Protection Agency ("EPA") and the Texas Commission on Environmental Quality ("TCEQ") have jointly considered emission reductions to control air pollution from motor vehicles; and the Texas Legislature has created the Texas Clean Air Act ("Act"), which addresses that purpose; and WHEREAS, Section 382.113 of the Act provides statutory authority for municipalities to enact and enforce local laws and ordinances for the control and abatement of air pollution; and WHEREAS, "Locally Enforced Idling Restrictions" is a weight of evidence commitment in the Dallas-Fort Worth 8-Hour Ozone Attainment Demonstration State Implementation Plan ("SIP"); and WHEREAS, the City of Denton, Texas desires to actively participate in improving the air quality of the region; and WHEREAS, the City Council of the City of Denton, Texas finds that the adoption of this ordinance serves a public purpose, and protects the health, safety, and welfare of the citizens of the City of Denton, Texas, by limiting the pollution created by motor vehicles unnecessarily idling within the City's jurisdiction; NOW THEREFOR THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council endorses the TCEQ Idling Limitations Rule, as published in the Texas Administration Code, Title 30, Part 1, Chapter 114, Subchapter J, Operational Controls for Motor Vehicles, Division 2, Locally Enforced Motor Vehicle Idling Limitation. SECTION 2. The City Council approves the adoption and implementation of the TCEQ Idling Limitation Rule by reference. I SECTION 3. The City Council hereby authorizes the City Manager to execute a Memorandum of Agreement, with the TCEQ for the purposes of local enforcement of the Idling Limitation Rule in the City of Denton, Texas; a true and correct copy of such Memorandum of Agreement is attached hereto as Exhibit "A" and is incorporated by reference herein. SECTION 4. This ordinance shall be effective immediately upon its passage and approval. PASSED AND APPROVED this the day • 2014. ATTEST: JENNIFER WALTERS, CITY SECRETARY M. • a- W-- - U a= a ho wr rALjj1FAjj'pj5jj ,ffjg&%W01WffA1jvjL fjj' By: EXHIBIT A MEMORANDUM OF AGREEMENT FOR VEHICLE IDLING LIMITATIONS I. PARTIES This Memorandum of Agreement (MOA) is entered into between the Texas Commission on Environmental Quality (TCEQ) and the local government signing this agreement (Local Government), collectively the "Parties." 1. The Parties represent that they have the authority to enter into this MOA, including the authority granted in the Texas Government Code Chapter 791 Interlocal Cooperation Contracts. 2. The TCEQ has authority under Section 5.229 of the Texas Water Code and Section 382.033 of the Texas Health and Safety Code to enter into this MOA. 3. The Local Government has authority under Section 382.115 of the Texas Health and Safety Code to enter into this MOA. II. INTENT AND PURPOSE The intent of this MOA is to memorialize the agreement between the Parties to implement the following rules aimed at the control of air pollution from motor vehicles: 3o Texas Administrative Code (TAC) Chapter 114, Control of Air Pollution from Motor Vehicles, Subchapter J, Operation Controls for Motor Vehicles, Division 2, Locally Enforced Motor Vehicle Idling Limitations, Sections 114.510 — 114.512 and 114.517. The parties enter into this MOA for the purpose of delegating rule enforcement from the TCEQ to the Local Government and potentially incorporating the emission reductions resulting from the implementation and enforcement of the above - referenced rules into the State Implementation Plan (SIP). III. DEFINITIONS As used in this MOA the following terms have the meanings given below: 1. EPA shall mean the United States Environmental Protection Agency. 2. TCEQ shall mean the Texas Commission on Environmental Quality. 3. Local Government has the meaning assigned by 3o TAC Section 114.510. 4. SIP shall refer to the Texas State Implementation Plan. IV. BACKGROUND On November 17, 2004, the TCEQ adopted rules concerning locally enforced motor vehicle idling limitations, which are applicable only within the jurisdiction of a Local Government that has signed an MOA with the TCEQ delegating enforcement of the rules. The EPA approved the rules in the April 11, 2005, Federal Register (7o FR 183o8). The rules became effective June 10, 2005. V. OBLIGATIONS OF PARTIES (A) The Local Government agrees as follows: 1. In accordance with the terms of this MOA the Local Government agrees to implement the following TCEQ Rule: a. 3o TAC Chapter 114, Control of Air Pollution from Motor Vehicles, Subchapter J, Operation Controls for Motor Vehicles, Division 2, Locally Enforced Motor Vehicle Idling Limitations, Sections 114.510 - 114.512 and 114.517. Changes to these TCEQ Rules shall be incorporated into this Agreement without requiring amendment of this Agreement. 2. The Local Government agrees to submit the following information to the TCEQ for the rules listed above not later than forty -five (45) calendar days after the effective date of this MOA: a. detailed description of the plan for implementation of these rules; b. copies of local ordinances or resolutions adopted by each Local Government to implement these rules; and c. copies of agreements entered between any Local Government and other units of Local Government for the purpose of the implementation of these rules. 3. The Local Government agrees to submit copies of any requisite resolutions under Section 7.352 of the Texas Water Code to the TCEQ forty -five (45) calendar days after the effective date of this MOA or within fourteen (14) calendar days after passage by the local governing body, whichever is later. (B) The TCEQ agrees to consider this MOA for submission to the EPA for inclusion in the SIP. VI. TERM AND TERMINATION This MOA will become effective upon signature by both Parties and shall expire on December 31, 2018, unless renewed in writing by mutual agreement of the Parties. A Parry may withdraw from this MOA at any time upon thirty (30) calendar days written notice to the other Parry. This MOA may be terminated at any time by mutual written consent of the Parties. VII. MISCELLANEOUS This MOA represents the entire agreement between the TCEQ and the Local Government and supersedes all other agreements, understandings or commitments, written or oral, relative to the intent of this MOA. This MOA may not be amended or modified except pursuant to a mutual written agreement executed by each of the Parties. This MOA shall be governed by and interpreted in accordance with the laws of the State of Texas. In Witness Thereof, Texas Commission on Environmental Quality and the Local Government, by their authorized officers, have made and executed this MOA in multiple copies, each of which is deemed an original. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY By: -._ _ Name: David Brymer Date Title: Director, Air Quality Division CITY /TOWN /COUNTY OF By: Name: Date Title: Local Government Guide to North Texas Idling Restrictions 1 1) Introduction .......................................................................................... ..............................2 11) Vehicle Pollution and Idling Facts ........................................................ ..............................3 111) Health Concerns .................................................................................. ..............................4 IV) Local Government Implementation ...................................................... ..............................5 Stage 1: Initiation Stage 2: Education Stage 3: Enforcement V) Technology Options ........................................................................... .............................13 VI) Funding Opportunities ........................................................................ .............................15 VII) Contact Information ............................................................................ .............................16 VIII) Resources .......................................................................................... .............................16 IX) Summary ............................................................................................. .............................17 X) Sources ............................................................................................... .............................18 XI) Appendix ............................................................................................ .............................19 Prepared by the North Central Texas Council of Governments Transportation Department April 2013 1 The North Central Texas Council of Governments (NCTCOG) Regional Transportation Council (RTC) approved a resolution on May 8, 2008, supporting locally enforced motor - vehicle idling restrictions in North Central Texas (Reference Item A). Through this initiative, the RTC has encouraged local government adoption of the Texas Commission on Environmental Quality's (TCEQ) rule limiting idling (Reference Item B) and entrance into a Memorandum of Agreement (MOA) (Reference Item C) with the TCEQ for the purpose of enforcement. Both initiatives are voluntary- however, the RTC has reserved the right to consider adoption and enforcement of this rule when evaluating an entity's eligibility for future funding. The purpose of this guide is to disseminate information to local governments regarding adoption and enforcement of idling restrictions and to provide educational materials, best practices, and technical tools to successfully implement such restrictions. Local government support and participation is appreciated in this effort to reduce vehicle emissions and improve air quality. Beyond emissions from fuel evaporation, combustion of diesel fuel in motor vehicles produces a complex mixture of thousands of different compounds including fine particulate matter (PM), NOx, VOC, and other toxic air pollutants, which are precursors to ozone formation. Mobile sources contribute to nearly three - quarters of the regional emissions of NOx, with diesel pollution contributing roughly 40 percent of the on -road emissions (Exhibit 2, Exhibit 3). On -road mobile sources can be broken into three categories based upon their respective gross vehicle weight rating (GVWR)- light -duty vehicles (less than 8,500 pounds), medium -duty vehicles (between 8,500 and 14,000 pounds), and heavy -duty vehicles (greater than 14,000 pounds). EPA estimates that one heavy -duty truck burns as much as 1,830 gallons of fuel annually due to unnecessary idling. With diesel hitting $4.09 per gallon in October 2012, upward of $7,500 per year could be saved by simply eliminating idling. Thus, not only is there a significant air quality benefit to reducing idling, there is a considerable financial benefit as well. Exhibit 2 Exhibit 3 i Light -Duty iesel Trucks 1% /Medium -Duty Gasoline Vehicles 2% Medium -Duty Diesel Vehicles 2% Gasoline & Diesel Buses 2% .Heavy -Duty Gasoline Vehicles 3% Source: Texas Commission on Environmental Quality 3 0 As the Metropolitan Planning Organization of North Central Texas, NCTCOG has committed to support various control strategies as part of achieving the DFW 8 -Hour Ozone SIP. One strategy included in the SIP is the promotion of adoption and enforcement of local idling restrictions. Implementation has been separated into three stages, which are discussed on pages 6 -13, and NCTCOG staff is available to provide assistance throughout the process. Stage 1: Initiation The initiation stage is the first step in reducing idling of heavy -duty vehicles within a jurisdiction. Local governments are responsible for adopting the TCEQ Idling Limitation Rule (Reference Item B), and signing an MOA (Reference Item C), which transfers enforcement authority from the TCEQ to the local jurisdiction. In accordance with the Texas Health and Safety Code: § 382.113(b) (Reference Item D), an ordinance enacted by a municipality must be consistent with the Commission's rules and orders and may not make unlawful a condition or act approved or authorized under the Commission's rules or orders. Counties must also ensure that court orders or resolutions are not inconsistent with the Commission's rule. Reference Item D also includes additional Texas Codes pertinent to motor vehicle idling restrictions within the State of Texas. NCTCOG recommends adopting the TCEQ idling rule by reference to ensure continued compliance with the rule in the event it is modified at a later date by the TCEQ or Texas Legislature. A Model Ordinance is included as Reference Item E. NCTCOG staff is available to present information to council members, commissioners, and city /county staff upon request. Part 1: Rule Adoption Each local government shall adopt the TCEQ idling rule; adoption by reference is recommended. Highlights of the rule are outlined in Exhibit 4. The full rule is provided as Reference Item B. 5 Exhibit 4 Restrictions • Year around, no gasoline or diesel powered vehicle with a GVWR greater than 14,000 - pounds may idle for more than five minutes, when the vehicle is not in motion, within participating jurisdictions. GVWR is the maximum weight of a fully loaded vehicle. • No driver using the vehicle's sleeper berth may idle within a two -mile radius of a public facility offering external heating /air conditioning (Exhibit 5). Exemptions • Vehicle Type: • 14,000+ Ibs GVWR vehicle with 2008 or newer heavy -duty diesel, liquefied natural gas, or compressed natural gas certified by EPA or state agency to emit less than 30 grams of NOx per hour of idling. • Vehicles with a sleeper berth, only during a government- mandated rest period. • Military, emergency and law enforcement vehicles, and armored trucks. • Airport ground support equipment. • Owner of a vehicle rented or leased to a person not employed by the owner. 6 Exhibit 5 2s ■ ales 7 Submit three original, signed MONs and supporting documentation to: Education Materials A) Report Idling Vehicles 9 Stage 3: Enforcement The enforcement stage is the final step in implementing idling restrictions. Local governments are responsible for determining necessary enforcement personnel and procedures to identify and cite violators and log citations for reporting. NCTCOG staff will provide training on the NCTCOG Emissions Database (NED), which was developed to assist local law enforcement personnel in tracking vehicle emissions violations. NCTCOG staff will also help facilitate discussions among agencies pertaining to the potential availability and dissemination of State funding. NOTE: The NED is available to enforcement officers in the DFW 10- county ozone nonattainment area that sign an interlocal agreement with NCTCOG. For information on accessing the database, contact Richard McComb, NCTCOG staff, at 817 - 608 -2340 or Enforcement Options There are several options available related to idling enforcement Complaint -Based Enforcement: Officers investigate idling violations based upon complaints received and issue citations as necessary. Specific complaints may be reported directly to the local enforcement division. Complaints may also be submitted through i 3 j or by calling 877 -NTX -IDLE. Complaints will be forwarded regularly to participating local enforcement agencies to help identify idling hot spots. Target Location -Based Enforcement Enforcement personnel periodically patrol areas known for excessive idling, including truck stops, loading docks, warehouses, construction material pick -up/ drop -off sites, service roads, and parking lots and cite violators as appropriate. 10 Potential Enforcement Procedures Local enforcement agencies are encouraged to develop entity- specific procedures. Below is an example of potential idling enforcement procedures. a) Upon identifying a parked vehicle with a GVWR rating of greater than 14,000 pounds, the officer shall drive by or stop and listen to verify that the main engine of the vehicle is operating while the vehicle is parked. Types of vehicles over 14,000 pounds GVWR may include: Beverage Trucks Heavy -Duty Utility Trucks Stake Trucks Bucket Trucks Home Fuel Trucks Step Vans Delivery Trucks Inner -City Tour Buses Tanker Trucks Dump Trucks Large Motor Homes Tow Trucks Flat -Bed Trucks Rack Trucks Tractor - Trailer Rigs Fuel Trucks School Buses Transit Buses Furniture Trucks Service Body Trucks Utility Trucks Garbage Trucks b) The officer shall use a stop watch to time five minutes of continuous idling. c) After five minutes, the officer may approach the vehicle and ask to see appropriate identification and vehicle documentation. d) If the vehicle has a sleeper berth, the officer shall ask to see the driver's log book to determine whether the driver was idling during a government- mandated rest period. Idling during this time is permitted under certain circumstances (Exhibit 4). e) If the driver is not on a required rest period, the officer may determine whether any of the exemptions listed in the rule are applicable (Exhibit 4). f) If not, the officer has the option to issue a warning or issue a citation, consistent with local enforcement regulations. Each violation is considered a separate offense. g) Upon issuing a citation, the officer shall photograph the vehicle for verification in the event of a court appeal. 11 Areas suggested for enforcement include locations with significant heavy -duty vehicle traffic, such as existing freight facilities, shown in Exhibit 6. In addition, the following types of locations are also suggested for monitoring and enforcing idling activity: 12 Construction Material Loading Sites School Zones Hospitals Service Roads Loading Docks Truck Stops Parking Lots Warehouses Residential Neighborhoods More detailed information on existing freight facilities in the North Central Texas can be obtained on NCTCOG's website � ..E.... � i ` t� i 3 a Exhibit 6 12 EPA estimates that one heavy -duty truck could save as much as 1,830 gallons of fuel each year simply by eliminating unnecessary idling. With diesel fuel hitting an all time high of $4.80 per gallon in June 2008, and with trends fluctuating around $4.10 per gallon with no significant decrease projected, total savings could add up significantly by simply reducing idling. Fortunately, this sector benefits from a wide variety of technological solutions to aid in accomplishing just that. By utilizing the technologies described below, a driver can enjoy the same amenities with the added benefit of reducing pollution and fuel consumption. These idling alternatives are divided into two categories: on -board and on -site. On -Board Options On -board options enable a driver to be comfortable in the cab without operating the main engine of the vehicle. These devices are advantageous because they can be used nearly anywhere and do not require new infrastructure. Several types of on -board technology are available: 13 14 Q a m c 3 0 c Y N E Q i Q N a ui 0 co 9, Funding opportunities exist to reduce the amount of idling necessary during normal operation, and several of these programs are listed below. The most current list of funding opportunities is available on NCTCOG's website at€ C€ Ti's. An email list sign -up is available to help interested parties stay informed of current and upcoming assistance programs. 1) NCTCOG's Diesel Idle Reduction Program On occasion, NCTCOG offers funding assistance for clean vehicle projects in the North Central Texas area, and idle reduction projects have been included in the past. As these funding opportunities become available, information will be posted online at ..0 € . € 2) Texas Emissions Reduction Plan (TERP) TERP is administered by the TCEQ and includes a number of voluntary financial incentive programs to help improve the air quality in Texas. In particular, the Emissions Reduction Incentive Grants (ERIG) Program provides funding for eligible projects in affected counties to offset the incremental costs associated with the activities to reduce NOx emissions from high- emitting mobile sources. For information, visit :U call 800 - 919 -TERP (8377), or email t U t { .................................................... 3) EPA SmartWay Transport Partnership - Innovative Financing SmartWay provides information on several lenders that offer loans to owner - operators and small trucking companies to help pay for technologies that will save fuel while reducing pollution. These loans offer affordable monthly payment plans. The Small Business Administration - Approved Lenders offer affordable monthly principal and interest monthly payments with no collateral required for loans ranging from $5,000 to $25,000. For information visit , , y,, � � a.,� . � ................ 4) National Idling Reduction Network News The National Idling Reduction Network brings together trucking and transit companies, railroads, equipment manufacturers, local, State, and federal government agencies (including regulators), and national research laboratories to identify consistent, workable solutions to heavy vehicle idling for the entire United States. In addition, regular newsletters provide information on current local and national funding opportunities that may support idle- reduction technologies. For information visit. �....:.:. 1',, � s ',, , s s s , 15 For additional information on locally enforced idling restrictions or to discuss implementation options, please contact: Natalie Gusack Amanda Brimmer Shannon Stevenson Transportation Planner Principal Transportation Planner Program Manager 817- 695 -9287 817- 608 -2354 817- 608 -2304 ngusack @nctcog.org abrimmer @nctcog.org sstevenson @nctcog.org Resources The following links provide additional resources on idling restrictions. • Air North Texa }s ............::........s._ • Capital Area Council of Governments • City of Dallas m ............................................ ............................... • EPA SmartWay 3.(V:;3, ....................' �F m,.,.,.,.,.,.,.,.,.,.,.,.,. ,.,.,.,.,.,.,.,.,.,.,.,.,.,.,mow • IdleBox ......... ?F f }}ty). €.r e...:�t €E SF `f 'Fif S . ......... ......... ......... t t t S ...:... ........ .., • National Clean Diesel Campaign • North Texas Idling • Texas Commission on Environmental Quality _ Jt. .3..:...,s...:..`,s ....F .� .:. ,ss€ s s ss......F 16 17 American Lung Association. "State of the Air 2012" f w,st,, t, -i a ,.ate. Accessed March 20, 2013. Dockery, D.W., et. al., "An Association Between Air Pollution and Mortality in Six U.S. Cities," New England Journal of Medicine, 329:1753 -59, 1993. New Jersey Department of Environmental Protection's Diesel Risk Reduction Program. � "t".. '`. ..`......:: °:........::;u . Accessed March 20, 2013. Pope, C.A., et. al., "Lung Cancer, Cardiopulmonary Mortality, and Long -term Exposure to Fine Particulate Air Pollution ", Journal of the American Medical Association, March 6, 2002. Pope 111, C.A., et al., "Particulate Air Pollution as a Prospective Study of U.S. Adults," American Journal of Respiratory Critical Care Medicine, 151:669 -674, 1995. Shprentz, D., "Breathtaking: Premature Mortality Due to Particulate Air Pollution in 239 American Cities," New York, Natural Resources Defense Council, May 1996, pp. 13 -32. Texas Commission on Environmental Quality. Dallas -Fort Worth 8 -Hour Ozone Attainment Demonstration State Implementation Plan. 3 3.s. 3;,( ` SF..`..`'. `.s.€ .'.'.... Accessed March 20, 2013. U.S. Environmental Protection Agency, New York Planning Federation, and New York State Environmental Protection Agency. 0 x .......' r Ff �' �.:u.. 14� �....o Diesel e U Q...:.�:.. �.`........ ....'.:. r�C s,�t s: M� a:f )rte -.'. ; State. Accessed Accessed March 20 2013. 18 19 Reference Item A RESOLUTION SUPPORTING LOCALLY ENFORCED MOTOR VEHICLE IDLING LIMITATIONS IN NORTH CENTRAL TEXAS (R08 -03) WHEREAS, the North Central Texas Council of Governments (NCTCOG) has been designated as the Metropolitan Planning Organization for the Dallas -Fort Worth Metropolitan Area by the Governor of Texas in accordance with federal law; and, WHEREAS, the Regional Transportation Council, comprised primarily of local elected officials, is the regional transportation policy body associated with the North Central Texas Council of Governments, and has been and continues to be a forum for cooperative decisions on transportation; and, WHEREAS, the Dallas -Fort Worth area is a federally designated nonattainment area for the pollutant ozone and air quality impacts the public and economic health of the entire region; and, WHEREAS, the Regional Transportation Council is responsible for air quality conformity; and the Clean Air Act Amendments of 1990 require that in air quality nonattainment areas, transportation plans and improvement programs conform to the applicable air quality implementation plan; and, WHEREAS, Locally Enforced Idling Restriction is a Voluntary Mobile Source Emission Reduction Program commitment in the Dallas -Fort Worth Eight -Hour Ozone Attainment Demonstration State Implementation Plan (SIP); and, WHEREAS, the Regional Transportation Council has no regulatory authority to enforce idling restrictions; and recognizes that local governments have such authority upon entering into a Memorandum of Agreement (MOA) with the Texas Commission on Environmental Quality (TCEQ). NOW, THEREFORE, BE IT HEREBY RESOLVED THAT: Section 1. The Regional Transportation Council endorses the TCEQ Idling Limitations Rule as published in the Texas Administrative Code, Chapter 114, Subchapter J, Operational Controls for Motor Vehicles, Division 2, Locally Enforced Motor Vehicle Idling Limitations. Section 2. The Regional Transportation Council encourages local government adoption of the TCEQ Idling Limitations Rule by reference, and supports creation of a North Texas MOA to be entered into by local governments for the purpose of enforcement. Section 3. The Regional Transportation Council commits to provide local governments assistance with development of applicable enforcement and education programs. Section 4. The Regional Transportation Council may consider compliance with this resolution when considering future Regional Transportation Council funding action. 20 Section 5. This resolution will be transmitted to all local governments in the nine - county ozone nonattainment area. Section S. This resolution shall be in effect immediately upon adoption. O r T air Regional Transportation Council Mayor, City of North Richland Hills I hereby certify that this resolution was adopted by the Regional Transportation Council of the North Central Texas Council of Governments for the Dallas -Fort Worth Metropolitan Area on May 8, 2008. kix) B. Glen Whitley, Secretary Regional Transportation Council County Judge, Tarrant County 21 Reference Item B Reference Item B: Texas Administrative Code: § 114.510 -517 Title 30 Environmental Quality Part 1 Texas Commission on Environmental Quality Chapter 114 Control of Air Pollution from Motor Vehicles Subchapter J Operational Controls for Motor Vehicles Division 2 Locally Enforced Motor Vehicle Idling Limitations §114.510 Definitions §114.511 Applicability §114.512 Control Requirements for Motor Vehicle Idling §114.517 Exemptions RULE §114.510 Definitions Unless specifically defined in the Texas Health and Safety Code, Chapter 382 (also known as the Texas Clean Air Act) or in the rules of the commission, the terms used in this subchapter have the meanings commonly ascribed to them in the field of air pollution control. In addition to the terms which are defined by Texas Health and Safety Code, Chapter 382; §3.2 of this title (relating to Definitions); §101.1 of this title (relating to Definitions); and §114.1 of this title (relating to Definitions), the following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise. (1) Idle- -The operation of an engine in the operating mode where the engine is not engaged in gear, where the engine operates at a speed at the revolutions per minute specified by the engine or vehicle manufacturer for when the accelerator is fully released, and there is no load on the engine. (2) Local government - -A city, county, municipality, or political subdivision of the state. (3) Motor vehicle - -Any self - propelled device powered by an internal combustion engine and designed to operate with four or more wheels in contact with the ground, in or by which a person or property is or may be transported, and is required to be registered under Texas Transportation Code, §502.002, excluding vehicles registered under §502.006(c). (4) Primary propulsion engine - -A gasoline or diesel - fueled internal combustion engine attached to a motor vehicle that provides the power to propel the motor vehicle into motion and maintain motion. Source Note: The provisions of this §114.510 adopted to be effective December 9, 2004, 29 TexReg11355 RULE §114.511 Applicability The provisions of §114.512 and §114.517 of this title (relating to Control Requirements for Motor Vehicle Idling; and Exemptions) are applicable only within the jurisdiction of a local government that has signed a Memorandum of Agreement with the commission to delegate enforcement of 22 the provisions of this division to that local government. Source Note: The provisions of this §114.511 adopted to be effective December 9, 2004, 29 TexReg 11355 RULE §114.512 Control Requirements for Motor Vehicle Idling No person shall cause, suffer, allow, or permit the primary propulsion engine of a motor vehicle to idle for more than five consecutive minutes when the motor vehicle, as defined in §114.510 of this title (relating to Definitions), is not in motion. Source Note: The provisions of this §114.512 adopted to be effective December 9, 2004, 29 TexReg 11355; amended to be effective May 17, 2006, 31 TexReg 3900; amended to be effective February 21, 2008, 33 TexReg 1345; amended to be effective August 11, 2011, 36 TexReg 4972 RULE §114.517 Exemptions The provisions of §114.512 of this title (relating to Control Requirements for Motor Vehicle Idling) do not apply to: (1) a motor vehicle that has a gross vehicle weight rating of 14,000 pounds or less; (2) a motor vehicle that has a gross vehicle weight rating greater than 14,000 pounds and that is equipped with a 2008 or subsequent model year heavy -duty diesel engine or liquefied or compressed natural gas engine that has been certified by the United States Environmental Protection Agency or another state environmental agency to emit no more than 30 grams of nitrogen oxides emissions per hour when idling; (3) the primary propulsion engine of a motor vehicle being used to provide air conditioning or heating necessary for employee health or safety in an armored vehicle while the employee remains inside the vehicle to guard the contents or while the vehicle is being loaded or unloaded; (4) a motor vehicle forced to remain motionless because of traffic conditions over which the operator has no control; (5) a motor vehicle being used by the United States military, national guard, or reserve forces, or as an emergency or law enforcement motor vehicle; (6) the primary propulsion engine of a motor vehicle providing a power source necessary for mechanical operation, other than propulsion, and /or passenger compartment heating, or air conditioning; (7) the primary propulsion engine of a motor vehicle being operated for maintenance or diagnostic purposes; (8) the primary propulsion engine of a motor vehicle being operated solely to defrost a windshield; (9) the primary propulsion engine of a motor vehicle that is being used to supply heat or air conditioning necessary for passenger comfort and safety in vehicles intended for commercial or 23 public passenger transportation, or passenger transit operations, in which case idling up to a maximum of 30 minutes is allowed; (10) the primary propulsion engine of a motor vehicle being used to provide air conditioning or heating necessary for employee health or safety while the employee is using the vehicle to perform an essential job function related to roadway construction or maintenance; (11) the primary propulsion engine of a motor vehicle being used as airport ground support equipment; (12) the owner of a motor vehicle rented or leased to a person that operates the vehicle and is not employed by the owner; or (13) a motor vehicle when idling is necessary to power a heater or air conditioner while a driver is using the vehicle's sleeper berth for a government- mandated rest period and is not within two miles of a facility offering external heating and air conditioning connections at a time when those connections are available. Source Note: The provisions of this §114.517 adopted to be effective December 9, 2004, 29 TexReg 11355; amended to be effective May 17, 2006, 31 TexReg 3900; amended to be effective February 21, 2008, 33 TexReg 1345; amended to be effective August 11, 2011, 36 TexReg 4972; amended to be effective August 30, 2012, 37 TexReg 6619 24 MEMORANDUM OF AGREEMENT FOR VEHICLE IDLING LIMITATIONS I. PARTIES Reference Item C This Memorandum of Agreement (MOA) is entered into between the Texas Commission on Environmental Quality (TCEQ) and the local government signing this agreement (Local Government), collectively the "Parties." The Parties represent that they have the authority to enter into this MOA, including the authority granted in the Texas Government Code Chapter 791 Interlocal Cooperation Contracts. 2. The TCEQ has authority under Section 5.229 of the Texas Water Code and Section 382.033 of the Texas Health and Safety Code to enter into this MOA. 3. The Local Government has authority under Section 382.115 of the Texas Health and Safety Code to enter into this MOA. II. INTENT AND PURPOSE The intent of this MOA is to memorialize the agreement between the Parties to implement the following rules aimed at the control of air pollution from motor vehicles: 30 Texas Administrative Code (TAC) Chapter 114, Control of Air Pollution from Motor Vehicles, Subchapter J, Operation Controls for Motor Vehicles, Division 2, Locally Enforced Motor Vehicle Idling Limitations, Sections 114.510 — 114.512 and 114.517. The parties enter into this MOA for the purpose of delegating rule enforcement from the TCEQ to the Local Government and potentially incorporating the emission reductions resulting from the implementation and enforcement of the above - referenced rules into the State Implementation Plan (SIP). III. DEFINITIONS As used in this MOA the following terms have the meanings given below: 1. EPA shall mean the United States Environmental Protection Agency. 2. TCEQ shall mean the Texas Commission on Environmental Quality. 3. Local Government has the meaning assigned by 30 TAC Section 114.510. 4. SIP shall refer to the Texas State Implementation Plan. 25 IV. BACKGROUND On November 17, 2004, the TCEQ adopted rules concerning locally enforced motor vehicle idling limitations, which are applicable only within the jurisdiction of a Local Government that has signed an MOA with the TCEQ delegating enforcement of the rules. The EPA approved the rules in the April 11, 2005, Federal Register (70 FR 18308). The rules became effective June 10, 2005. V. OBLIGATIONS OF PARTIES (A) The Local Government agrees as follows: 1. In accordance with the terms of this MOA the Local Government agrees to implement the following TCEQ Rule: a. 30 TAC Chapter 114, Control of Air Pollution from Motor Vehicles, Subchapter J, Operation Controls for Motor Vehicles, Division 2, Locally Enforced Motor Vehicle Idling Limitations, Sections 114.510 - 114.512 and 114.517. Changes to these TCEQ Rules shall be incorporated into this Agreement without requiring amendment of this Agreement. 2. The Local Government agrees to submit the following information to the TCEQ for the rules listed above not later than forty -five (45) calendar days after the effective date of this MOA: a. detailed description of the plan for implementation of these rules; b. copies of local ordinances or resolutions adopted by each Local Government to implement these rules; and c. copies of agreements entered between any Local Government and other units of Local Government for the purpose of the implementation of these rules. 3. The Local Government agrees to submit copies of any requisite resolutions under Section 7.352 of the Texas Water Code to the TCEQ forty -five (45) calendar days after the effective date of this MOA or within fourteen (14) calendar days after passage by the local governing body, whichever is later. (B) The TCEQ agrees to consider this MOA for submission to the EPA for inclusion in the SIP. VI. TERM AND TERMINATION This MOA will become effective upon signature by both Parties and shall expire on December 31, 2018, unless renewed in writing by mutual agreement of the Parties. A Party may withdraw from this MOA at any time upon thirty (30) calendar days written notice to the other Party. This MOA may be terminated at any time by mutual written consent of the Parties. 26 VII. MISCELLANEOUS This MOA represents the entire agreement between the TCEQ and the Local Government and supersedes all other agreements, understandings or commitments, written or oral, relative to the intent of this MOA. This MOA may not be amended or modified except pursuant to a mutual written agreement executed by each of the Parties. This MOA shall be governed by and interpreted in accordance with the laws of the State of Texas. In Witness Thereof, Texas Commission on Environmental Quality and the Local Government, by their authorized officers, have made and executed this MOA in multiple copies, each of which is deemed an original. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY By: Name: David Brymer Title: Director, Air Quality Division CITY /TOWN /COUNTY OF By: Name: Title: 27 Date Date Reference Item D Reference Item D.1: Texas Health and Safety Code: § 382.113 -115 § 382.113. AUTHORITY OF MUNICIPALITIES. (a) Subject to Section 381.002, a municipality has the powers and rights as are otherwise vested by law in the municipality to: (1) abate a nuisance; and (2) enact and enforce an ordinance for the control and abatement of air pollution, or any other ordinance, not inconsistent with this chapter or the commission's rules or orders. (b) An ordinance enacted by a municipality must be consistent with this chapter and the commission's rules and orders and may not make unlawful a condition or act approved or authorized under this chapter or the commission's rules or orders. Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 11.187, eff. Sept. 1, 1995. § 382.115. COOPERATIVE AGREEMENTS. A local government may execute cooperative agreements with the commission or other local governments: (1) to provide for the performance of air quality management, inspection, and enforcement functions and to provide technical aid and educational services to a party to the agreement; and (2) for the transfer of money or property from a party to the agreement to another party to the agreement for the purpose of air quality management, inspection, enforcement, technical aid, and education. Acts 1989, 71 st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 11.189, eff. Sept. 1, 1995. 28 Reference Item D.2: Texas Water Code: § 7.351 -7.352 § 7.351. CIVIL SUITS. (a) If it appears that a violation or threat of violation of Chapter 16, 26, or 28 of this code, Chapter 361, 371, 372, or 382, Health and Safety Code, a provision of Chapter 401, Health and Safety Code, under the commission's jurisdiction, or Chapter 1903, Occupations Code, or a rule adopted or an order or a permit issued under those chapters or provisions has occurred or is occurring in the jurisdiction of a local government, the local government or, in the case of a violation of Chapter 401, Health and Safety Code, a person affected as defined in that chapter, may institute a civil suit under Subchapter D in the same manner as the commission in a district court by its own attorney for the injunctive relief or civil penalty, or both, as authorized by this chapter against the person who committed, is committing, or is threatening to commit the violation. (b) If it appears that a violation or threat of violation of Chapter 366, Health and Safety Code, under the commission's jurisdiction or a rule adopted or an order or a permit issued under that chapter has occurred or is occurring in the jurisdiction of a local government, an authorized agent as defined in that chapter may institute a civil suit under Subchapter D in the same manner as the commission in a district court by its own attorney for the injunctive relief or civil penalty, or both, as authorized by this chapter against the person who committed, is committing, or is threatening to commit the violation. Added by Acts 1997, 75th Leg., ch. 1072, Sec. 2, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 193, Sec. 1, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 1276, Sec. 14A.845, eff. Sept. 1, 2003. Reference Item D.3: Texas Health and Safety Code: § 382.0191 § 382.0191. IDLING OF MOTOR VEHICLE. (a) In this section, "idling" means allowing an engine to run while the motor vehicle is not engaged in forward or reverse motion. (b) The commission may not prohibit or limit the idling of any motor vehicle with a gross vehicle weight rating greater than 8,500 pounds that is equipped with a 2008 or subsequent model year heavy -duty diesel engine or liquefied or compressed natural gas engine that has been certified by the United States Environmental Protection Agency or another state environmental agency to emit no more than 30 grams of nitrogen oxides emissions per hour when idling. Added by Acts 2011, 82nd Leg., R.S., Ch. 390, Sec. 1, eff. June 17, 2011. 29 Reference Item E ORDINANCE NO. AN ORDINANCE OF THE [JURISDICTION TO IMPLEMENT AND ENFORCE THE TEXAS STATE RULE ON LOCALLY ENFORCED MOTOR VEHICLE IDLING LIMITATIONS AND TO APPROVE ENTERING INTO A MEMORANDUM OF AGREEMENT WITH THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY TO ENFORCE THIS RULE LOCALLY WHEREAS, the Dallas -Fort Worth area is a federally designated nonattainment area for the pollutant ozone and air quality impacts the public and economic health of the entire region; and WHEREAS, the U.S. Environmental Protection Agency ( "EPA ") and the Texas Commission on Environmental Quality ( "TCEQ ") jointly have considered emission reductions to control air pollution from motor vehicles, and the Texas Legislature has created the Texas Clean Air Act ( "Act "), which addresses that purpose; and WHEREAS, Section 382.113 of the Act provides authority for municipalities to enact and enforce local laws and ordinances for the control and abatement of air pollution; and WHEREAS, Locally Enforced Idling Restrictions is a weight of evidence commitment in the Dallas -Fort Worth 8 -Hour Ozone Attainment Demonstration State Implementation Plan (SIP); and WHEREAS, the (Jurisdiction) desires to actively participate in improving the air quality of the region; and WHEREAS, the (Legislative Body l finds that the adoption of this ordinance serves a public purpose, and protects the health, safety, and welfare of the citizens of the (Jurisdiction), by limiting the pollution created by motor vehicles unnecessarily idling within the [city's or county's jurisdiction; NOW, THEREFORE, BE IT HEREBY ORDAINED THAT: Section 1. The (Legislative Bodyl endorses the TCEQ Idling Limitations Rule as published in the Texas Administration Code, Title 30, Part 1, Chapter 114, Subchapter J, Operational Controls for Motor Vehicles, Division 2, Locally Enforced Motor Vehicle Idling Limitation. Section 2. The (Legislative Bodyl approves the adoption and implementation of the TCEQ Idling Limitation Rule by reference. 30 Section 3. The (Legislative Bodyl authorizes the (Title of the Authorized Personnel) to execute an Memorandum Of Agreement, attached hereto, with the TCEQ for the purposes of local enforcement of the Idling Limitation Rule in (Jurisdiction). Section 4. This ordinance shall be in effect immediately upon adoption. I hereby certify that this ordinance was adopted by (Jurisdiction) on [date]. (Name), [Title) (Jurisdiction) 31 SAMPLE [JURISDICTION] IMPLEMENTATION PLAN FOR LOCALLY ENFORCED MOTOR VEHICLE IDLING LIMITATION RULE Background Reference Item F Limiting motor vehicle idling is one component of the Dallas -Fort Worth 8 -Hour Ozone Attainment Demonstration State Implementation Plan which is the federally mandated clean air plan for the region The locally enforced motor vehicle idling limitation rule (Texas Administrative Code, Title 30, Subsections 114.510- 114.517) has been adopted by the city1colunty] of 81uricaliction.7 in an effort to participate in regional programs aimed at reducing harmful emissions and improving air quality. The rule is applicable only within the jurisdiction of local governments that have signed a memorandum of agreement with the Texas Commission on Environmental Quality (TCEQ) which extends the enforcement authority of the TCEQ to that governmental entity. Education will begin February 18, 2013. Enforcement will begin April 18, 2013. Enforcement through warnings and traffic citations, including penalties of up to $500 per offense, is allowable to ensure compliance with this rule and net maximum air quality benefits. Public Education & Outreach: • Educational brochures, developed by the North Central Texas Council of Governments ( NCTCOG) will be distributed to area businesses, industry associations, and other targeted sectors identified to be most affected by the rule. These brochures will include information on rule details, anti - idling technologies, potential funding assistance, and other resources. • Anti - idling signs will be ordered and installed throughout the [city1colunty] to inform citizens and truck drivers of the anti - idling ordinance. Local businesses and target areas will be encouraged to order and post signs as well. Signs are available through the NCTCOG. • A link to the NCTCOG Idling Reduction Web site will be posted on the city1c3ounty] of 1uricdction] Web site as a resource. Enforcement: • Appropriate personnel will be identified for enforcement activities. Activities will include identifying target areas, spotting violators, and issuing citations. Apposite personnel may include code enforcement officers and /or peace officers. • Enforcement procedures used will be consistent with section 7.351 of the Texas Water Code and any applicable local government ordinances. Recommended penalties sought in civil action will be consistent with Subchapter D of the Texas Water Code. Each violation is considered a separate offense. • [ 1t'1111Cot,, tyJ of 81uricaliction.7 enforcement training programs will be updated with information on regulatory requirements and compliance procedures. • Identified enforcement personnel will establish a relationship with the NCTCOG to share information on area idling. Violations of the rule may be reported: 1) directly to local enforcement division for immediate response; or 2) to the NCTCOG through a regional public outreach Web site, www. ngineOffNorthTex I or toll -free line, 877 -NTX -IDLE (877 -689- 4353), resulting in a letter being mailed to the owner of the reported vehicle informing him /her of local idling restrictions in North Central Texas and options to help reduce excessive idling. • Violations and action taken will be tracked on a spreadsheet. This allows both a determination of rule effectiveness and adequate follow -up for noncompliant sources. At the end of each year, a summary of enforcement will be provided to the NCTCOG upon request. 32 What is NCTCOG? The North Central Texas Council of Governments is a voluntary association of cities, counties, school districts, and special districts which was established in January 1966 to assist local governments in planning for common needs, cooperating for mutual benefit, and coordinating for sound regional development. It serves a 16- county metropolitan region centered around the two urban centers of Dallas and Fort Worth. Currently the Council has 238 members, including 16 counties, 169 cities, 22 independent school districts, and 31 special districts. The area of the region is approximately 12,800 square miles, which is larger than nine states, and the population of the region is over 6.5 million, which is larger than 38 states. NCTCOG's structure is relatively simple; each member government appoints a voting representative from the governing body. These voting representatives make up the General Assembly which annually elects a 15- member Executive Board. The Executive Board is supported by policy development, technical advisory, and study committees, as well as a professional staff of 295. - northtexas - Dallas -Fort Worth CLEAN CITIES North Central Texas Council of Govemments 616 Six Flags Drive, Arlington, Texas 76011 facebook.com /NCTCOGtrans I twitter.com /NCTCOGtrans I youtube.com /NCTCOGtrans www.engineoffnorthtexas.org Public Hearing AGENDA INFORMATION SHEET AGENDA DATE: April 15, 2014 DEPARTMENT: Parks and Recreation ACM: John Cabrales, Jr. SUBJECT Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, adopting Standards of Care for Youth /Teen Programs administered by Denton's Parks and Recreation Department pursuant to Texas Human Resources Code Section 42.041 (b)(14); and providing an effective date. (Parks, Recreation and Beautification Board recommend approval with a vote of 6 -0.) BACKGROUND The Parks and Recreation Department has been directed by Texas Department of Regulatory Services to adopt an ordinance approving the Standards of Care, which are requirements that either meet or exceed the current State Day Care requirements. The Standards of Care are intended to be minimum standards by which the City of Denton Parks and Recreation Department will operate the City's Youth /Teen Programs. The programs operated by the City under the Standards of Care are recreational in nature and are not day care programs. Senate Bill 212 was approved by the Texas Legislature during the 74th Legislative Session exempting recreation programs from day care licensing as long as a Standards of Care is adopted. In order to be exempt, an elementary -age (ages 5 -13) recreation program may be operated by the municipality provided: the governing body of the municipality annually adopts standards of care by ordinance after a public hearing for such programs, that such standards are provided to the parents of each program participant, and that the ordinances shall include, at a minimum, staffing ratios, minimum staff qualifications, minimum facility, health and safety standards, and mechanisms for monitoring and enforcing the adopted local standards; and further provided that parents be informed that the program is not licensed by the state and the program may not be advertised as a child care facility. The initial Public Hearing was held on October 5, 1999, and the first Standards of Care was adopted by City Council through Ordinance 99 -365. The State changed the exemption certification to include the adoption of a new ordinance each year for the Standards of Care in order to continue the exemption status. The Youth /Teen Services division of the Parks and Recreation Department made revisions /updates to the original Standards of Care and presented it to Council for consideration on October 19, 2010, which was approved. Additional revisions /updates were approved by the Park Board on April 2, 2012, and adopted by Council after a Public Hearing on April 17, 2012. No changes have been made to the Standards of Care that were adopted on April 17, 2012. The Park Board reviewed the Standards of Care on March 19, 2014. Agenda Information Sheet April 15, 2014 Page 2 RECOMMENDATIONS Staff recommends the City Council approve the proposed ordinance as presented. PRIOR ACTION /REVIEW: The Parks, Recreation and Beautification Board reviewed the proposed Standards of Care on March 19, 2014, and recommended approval with a vote of 6 -0. FISCAL INFORMATION This ordinance and Standards of Care require no additional City funding. EXHIBITS 1. Park, Recreation and Beautification Board Meeting Draft Minutes of March 19, 2014. 2. Proposed Ordinance with 2014 -2015 Standards of Care. Respectfully submitted: tk .. Emerson Vorel, Director Parks and Recreation Department Prepared by: Kathy Schaeffer Athletics /YTS Program Area Manager EXHIBIT 1 EXCERPT from DRAFT MINUTES PARKS, RECREATION AND BEAUTIFICAITON BOARD March 19, 2014 City Hall Conference Room After determining that a quorum of the City of Denton, Texas, Parks, Recreation and Beautification Board is present, the Chair of the Board thereafter convened into an open meeting on Wednesday, March 19, 2014, at 6:00 p.m. in the City Hall Conference Room, City of Denton, 215 E. McKinney Street, Denton, Texas. Members Present: Russ Stukel, Chair; Alex Lieban, David Rowley, Vicki Byrd, Maria Renner and Janet Shelton. Member Absent: Paul Leslie Staff present: Emerson Vorel, Director; John Schubert, Jim Mays, Kathy Schaeffer, Julie Leal, Janie McLeod. OPEN MEETING CONSENT AGENDA: C. Consider adopting Youth /Teen Programs Standards of Care — Kathy Schaeffer, Parks Program Area Manager, presented the 2014 City of Denton Parks and Recreation, Youth and Teen Services, "Standards of Care." The Standards of Care define the operation, what the ratios are, including the training requirements and those governing transport of participants. Per Schaeffer, the state licensing board allowed municipalities to adopt a Standards of Care for operations that are considered "recreational" not "child care." In 2010, the exemption criteria changed to require an annual "Standards of Care" be adopted by City Council via a Public Hearing. No changes were made to the proposed Standards of Care, which was previously recommended by Park Board and adopted by City Council. Schaeffer went on to say that Kinder Care, MLK and Denia Preschool; Little Campers and Kindergarten Prep are licensed by requirement, as they operate more than two days per week, for more than two hours per day, with children under 5 years old. Stukel inquired about the availability of the Standards of Care for parent consult, and if it's translated into other languages. Per Schaeffer, it is available online in English and a recent Parks and Recreation hire may translate a Spanish edition; all related documents are currently available in Spanish. Stukel wondered if the Standards of Care has ever been questioned or challenged as to content and Schaeffer claimed it has not been in the 16 years she has been with the City. Schaeffer was asked "why the 18- years -old requirement" rather than 16 for hires, and Schaeffer responded that their employees 1 transport children, so driving records are crucial indicators and there's little evidence of driving habits at age 16. Renner asked about driver's safety courses and related requirements, to which Schaeffer replied that all staff who work directly with children participate in 40 -45 hours of training annually in May of each year; the camps at Denia and MLK are licensed preschool directors and required to do 30 hours annually training a year, as does the director for the Little Campers summer program. Rowley wonders who conducts child - psychology and related training and Schaeffer revealed that most is done in -house with speakers from TWU, educational videos, speakers from UNT's Child Development Program; Denton and Guyer high school counselors have given presentations, and Schaeffer, earning her PhD in School Psychology, also hosts training courses with the staff. MOTION: Stukel sought a motion to advance the 2014 Standards of Care to public hearing: Renner made a motion, Lieban seconded, and the motion passed, 6 -0. Adjourned at 8:20 p.m. PA STODADMcpartment0jegahour Do menrsoyduun %] 4iNrks Standards of C—doca ORDINANCE NO. Exhibit 2 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, ADOPTING STANDARDS OF CARE FOR YOUTH/TEEN PROGRAMS ADMINISTERED BY DENTON' S PARKS AND RECREATION DEPARTMENT PURSUANT TO TEXAS HUMAN RESOURCES CODE SECTION 42.041 (b)(14); AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas, recognizes that many children of school age need an organized program for recreational activities after the end of the school day and for other non - school days; and WHEREAS, the City of Denton, Texas, through its Parks and Recreation Department, proposes to operate After School Programs and Summer Camps for children to be operated at City Recreational Centers and schools of the Denton Independent School District; and .WHEREAS, the City of Denton, Texas, needs to adopt Standards of Care for these recreational programs so licensing as a day care facility will not be necessary; and WHEREAS, the City of Denton, Texas, has formulated a Standards of Care that at a minimum includes staffing ratios, minimum staff, qualifications, minimum facility, health and safety standards, and mechanisms for monitoring and enforcing the local standards; and further provides for notifying parents that the program is not licensed by the state and that the program may not be advertised as a day care facility; and WHEREAS, on day of , 2014, the City of Denton held a public hearing on the above Standards of Care as required by Section 42 041 (b)(14) of the Texas Human Resources Code; NOW, THEREFORE; THE COUNCIL OF THE CITY DENTON HEREBY ORDAINS: SECTION 1. The City of Denton, Texas, adopts the Standards of Care for Youth/Teen Programs which is attached as Exhibit "A" and incorporated herein by reference as if written word for word pursuant to Section 42.041 (b)(14), Texas Human Resources Code. SECTION 2. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2014. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: I cl OF DEN'TON City of Denton C 0 C W. Parks &Recreation Department City of Denton Parks and Recreation Standards of Care 2014 -2015 TABLE OF CONTENTS Standards of Care General Administration 3 Organization 3 Definitions 3 Inspections 4 Enrollment 5 Suspected Abuse 6 Staffing - Responsibilities and Training 6 Youth/Teen /Center Manager Qualifications 6 Manager's Responsibilities 6 Youth/Teen Program Specialist, Coordinator & Leader Qualifications 7 Coordinators and Leader Responsibilities 7 Training/Orientation 8 Operations g Staff - Participant Ratio 8 Discipline 8 Programming 9 Communication 9 Transportation 10 Facility Standards 10 Safety 10 Fire 11 Health 11 Toilet Facilities 12 Sanitation 12 *Programs include: After School Action Site, Middle After School Program, Summer Camps, KDO's, Holiday Camps, Spring Break Camps, Teen Camps Any questions related to Standards of Care should be addressed to the Athletics/Youth- Teen Program Area Manager at 940- 349 -8731. 2 CITY OF DENTON PARKS AND RECREATION STANDARDS OF CARE The following Standards of Care have been adopted by the City Council of the City of Denton, Texas in order to comply with Senate Bill 212 as approved by the Texas Legislature during the 74th legislative session. The Standards of Care are intended to be minimum standards by which the City of Denton Parks and Recreation Department will operate the City's Youth Programs. The programs operated by the City are recreational in nature and are not licensed day care programs. The City of Denton's recreational /camp programs are exempt from licensing under Texas Administrative Code 745.115(3). GENERAL ADMINISTRATION Organization A. The governing body of the City of Denton Parks and Recreation Programs is the City of Denton City Council, B. Implementation of the Youth/Teen Programs Standards of Care is the responsibility of the Parks and Recreation Department Director and Departmental employees. C. Youth/Teen Programs ( "Program ") to which these Standards of Care will apply are the After School Action Site, Holiday Break Camps, Spring Break Camps. Kids Day Off, Summer Camps, Middle School After School Program and Teen Summer Camp programs. D. Each Youth/Teen Program site will have available for public and staff review a current copy of the Standards of Care. E. Parents of participants will be provided a current copy of the Standards of Care during the registration process. F. Criminal background checks will be conducted on prospective staff. No person with conviction or who is under indictment for, or is the subject of an official criminal complaint alleging violation of any of the crimes listed in the Texas Department of Protective and Regulatory Service's Day Care Center Minimum Standards and Guidelines Appendix II as same may be amended or a felony violation of the Texas Controlled Substance Act may be present while children are in care. An example of current Appendix II is attached as Exhibit A. 2. Definitions A. City: City of Denton. B. City Council: City Council of the City of Denton. C. Department: Parks and Recreation Department of the City of Denton. D. Youth/Teen Programs or Program: City of Denton Youth/Teen Programs consisting of the After School Action Site, Holiday Break Camps, Spring Break Camps, Kids Day Off, Summer Camps, Middle School After School Program and Teen Summer Camp programs. E. Program Manual: Notebook of policies, procedures, required forms, and organizational and programming information relevant to City of Denton Programs. F. Director: City of Denton Parks and Recreation Department Director or his or her designee. G. Program Manager: City of Denton Parks and Recreation Department full -time Programmer who has been assigned administrative responsibility for City of Denton Youth/Teen Programs. H Youth/Teen Manager or Center Manager: City of Denton Parks and Recreation Department full -time employee who has been assigned responsibility to implement the City's Youth/Teen Programs. I. Program Site: Area and facilities where City of Denton Youth/Teen Programs are held consisting of Civic Center, Martin Luther King Recreation Center, Denia Recreation Center, North Lakes Recreation Center, and McMath Middle School. J. Participant: A youth/teen whose parent(s) have completed all required registration procedures and determined to be eligible for a City of Denton Youth/Teen Program. K. Parent(s): This term will be used to represent one or both parent(s) or adults who have legal custody and authority to enroll their child(ren) /teen(s) in City of Denton Youth/Teen Programs. L. Employee(s): Term used to describe people who have been hired to work for the City of Denton and have assigned responsibility for managing, administering, or implementing some portion of the City of Denton Youth/Teen Programs. 3. Inspections /Monitoring/Enforcement A. A monthly inspection report will be initiated by the Manager, Specialist or Coordinator of each Program to confirm the Standards of Care are being adhered to. (1) Inspection reports will be sent to the Program Manager for review and kept on record for at least two years. (2) The Program Manager will review the report and establish deadlines and criteria for compliance with the Standards of Care. E B. The Manager will make visual inspections of the Program based on the following schedule: (1) Each After School Program site will be inspected bimonthly; (2) The Holiday & Spring Break Camp Program will be inspected once during its holiday schedule; and (3) The Summer Camp Program will be inspected twice during the.sumrner break. (4) The Middle School After School Program site will be inspected bimonthly; (5) Teen Camp Program will be inspected once during the summer break; (6) The Kids Day Off will be inspected three times a year; C. Complaints regarding enforcement of the Standards of Care will be directed to the Manager. The Manager will be responsible to take the necessary steps to resolve the problems. Complaints regarding enforcement of the Standards of Care and their resolution will be recorded by the Specialist or Coordinator. Serious complaints regarding enforcement of the Standards of Care will be addressed by the Program Manager and the complaint and resolution will be noted. D. The Program Manager will make an annual report to the City Council on the overall status of the Youth/Teen Programs and their operation relative to compliance with the Standards of Care. 4. Enrollment A. Before a child can be enrolled, a parent must sign registration forms that contain the child's: (1) name, address, home telephone number, email address; (2) name and address of parents and telephone number during Program hours; (3) the names of people to whom the child can be released; (4) a.statement of the child's special problems or needs; (5) emergency medical authorization; (6) proof of residency when appropriate; and (7) a liability waiver. 5. Suspected Abuse Program employees will report suspected child abuse or neglect in accordance with the Texas family Code. STAFFING - RESPONSIBILITIES AND TRAINING 6. Youth/Teen or Center Manager ( "Manager ") Qualifications A. Manager will be full -time, professional employees of the City of Denton Parks and Recreation Department and will be required to have all Program Leader qualifications as outlined in Section 7 of the document. B. Manager must be at least 21 years old. C. Manager must have a bachelor's degree from an accredited college or University or at least five (5) years of direct supervision of recreational activities related to children ages 4 -15 years of age. Acceptable degrees include: (1) Recreation Administration or General Recreation; (2) Physical Education; and (3) Any other comparable degree plan that would lend itself to working in a public recreation environment. D. Manager must have five years experience planning and implementing recreational activities. E. Manager must pass a background investigation including testing for illegal substances. F. Manager must have successfully completed a course in first aid and Cardio Pulmonary Resuscitation (CPR) based on either American Heart Association or American Red Cross standards. Manager must also complete a course in Defensive Driving, G. Manager must complete, 10 hours of child care training per calendar year. 7. Manager's Responsibilities A. Manager's are responsible to administer the Programs' daily operations in compliance with the adopted Standards of Care. B. Manager's are responsible to recommend for hire, supervise, and evaluate Specialist, Coordinators and Leaders. C. Manager's are responsible to plan, implement, and evaluate programs. Youth/Teen Program Specialist ( "Specialist ") and Coordinator ( "Coordinator ") and Leader ( "Leader ") Qualifications A. Specialist will be full -time, professional employees of the City of Denton Parks and Recreation Department and will be required to have all Program Leader qualifications as outlined in Section 7 of the document. B. Coordinators and Leaders will be part-time or temporary employees of the Parks and Recreation Department. C. Coordinators and Leaders working with children must be age 18 or older. D. Coordinators and Leaders should be able to consistently exhibit competency, good judgment, and self - control when working with children. E. Coordinators and Leaders must relate to children with courtesy, respect, tolerance, and patience. F. Coordinators and Leaders must have successfully completed a course in first aid and CPR based on either American Heart Association or American Red Cross standards. An exception can be made for no more than one staff person at each site, and that person shall successfully complete a first aid and CPR course within four weeks of starting work. G. Coordinators and Leaders must pass a background investigation including testing for illegal substances. H. Specialist, Coordinators and Leaders must complete 8 hours of child care training per calendar year. Training must be completed prior to their start date of child care programs and completed on an annual basis. 9. Coordinators and Leader Responsibilities A. Coordinator and Leaders will be responsible to provide participants with an environment in which they can feel safe, can enjoy wholesome recreation activities, and can participate in appropriate social opportunities with their peers. B. Coordinators and Leaders will be responsible to know and follow all City, Departmental, and Program standards, policies, and procedures that apply to City of Denton Youth/Teen Programs. C. Coordinators and Leaders must ensure that participants are released only to a parent or an adult designated by the parent. All Program sites will have a copy of the Department approved plan to verify the identity of a person authorized to pick up a participant if that person is not known to the Coordinator and Leader. 7 10. Training/Orientation A. The Department is responsible for providing training and orientation to Program Employee's in working with children and for specific job responsibilities. Managers will provide each Specialist, Coordinator and Leader with a Program manual specific to each Youth/Teen Program. On -line child care training may be completed in lieu of departmental training for 3 hours of the required S hours per year. B. Program employees must be familiar with the Standards of Care for Youth/Teen Program operation as adopted by the City Council. C. Program employees must be familiar with the Program's policies including discipline, guidance, and release of participants as outlined in the Program Manual. D. Program employees will be trained in appropriate procedures to handle emergencies E. Program employees will be trained in areas including City, Departmental, and Program policies and procedures, provision of recreation activities, safety issues, child psychology, and organization. F. Program employees will be required to sign an acknowledgment that they received the required training. OPERATIONS 11. Staff - Participant Ratio A. In a City of Denton Youth/Teen Program, the standard ratio of participants to Leaders will be 17 to 1. In the event a Leader is unable to report to the Program site, a replacement will be assigned. B. Each participant shall have a Program employee who is responsible for him or her and who is aware of the participant's habits, interests, and any special problems as identified by the participant's parent(s) during the registration process. 12. Discipline A. Program employees will implement discipline and guidance in a consistent manner based on the best interests of Program participants. B. There must be no cruel or harsh punishment or treatment. C. Program employees may use brief, supervised separation from the group if necessary. D. As necessary, Program employees will initiate discipline reports to the parent(s) of participants. Parents will be asked to sign discipline reports to indicate they have been advised about specific problems or incidents. E. A sufficient number and/or severe nature of discipline reports as detailed in the Program Manual may result in participant being suspended from the Program. F. In instances where there is a danger to participants or staff, offending participants will be removed from the Program site as soon as possible. 13. Programming A. Program employees will attempt to provide activities for each group according to the participants' ages, interests, and abilities. The activities must be appropriate to participants' health, safety, and well- being. The activities also must be flexible and promote the participants' emotional, social, and mental growth. B. Program employees will attempt to provide that indoor and outdoor times include: (1) alternating active and passive activities; (2) opportunity for individual and group activities; and (3) outdoor time each day weather permits. C. Program employees will be attentive and considerate of the participants' safety on field trips and during any transportation provided by the Program. (1) During trips, Program employees supervising participants must have immediate access to emergency medical forms and emergency contact information for each participant. (2) Program employees must have a written list of the participants in the group and must check the roll frequently. (3) Program employees must have first aid supplies and a guide to first aid and emergency care available on field trips. 14. Communication A. Each Program site will have a cell phone to allow the site to be contacted by Parks and Recreation personnel, and for use in contacting the Civic Center or making emergency calls. B. The Coordinator will post the following telephone numbers adjacent to a telephone accessible to all Program employees at each site: (1) Denton ambulance or emergency medical services; (2) City of Denton Police Department; (3) City of Denton Fire Department; 9 (4) Civic Center; (5) Numbers at which parents may be reached; and (6) The telephone number for the site itself 15. Transportation A. Before a participant may be transported to and from city sponsored activities, a City waiver form, completed by the parent of the participant, must be filed. B. First aid supplies will be available in all Program vehicles that transport children. C. All children must be securely seated in the appropriate safety seat/booster based on state child safety laws. C. All Program vehicles used for transporting participants must have available a 6 -BC portable fire extinguisher which will be installed in the passenger compartment of the vehicle and must be accessible to the adult occupants. FACILITY STANDARDS 16. Safety A. Program employees will inspect Program sites daily to detect sanitation and safety concerns that might affect the health and safety of the participants. A daily inspection report will be completed by Program employees and kept on file by the Manager. B. Buildings, grounds, and equipment on the Program site will be inspected, cleaned, repaired, and maintained to protect the health of the participants. C. Program equipment and supplies must be safe for the participants's use. D. Program employees must have first aid supplies readily available at each site, during transportation to an off -site activity, and for the duration of any off -site activity. E. Program air conditioners, electric fans, and heaters must be mounted out of participants' reach or have safeguards that keep participants from being injured. F. Program porches and platforms more than 30 inches above the ground must be equipped with railings participants can reach. G. All swing seats at Program sites must be constructed of durable, lightweight, relatively pliable material. H. Program employees must have first aid supplies readily available to staff in a 10 designated location. 17. Fire A. In case of fire, danger of fire, explosion, or other emergency, Program employees' first priority is to evacuate the participants to a designated safe area. B. The Program site will have an annual fire inspection by the local Fire Marshal, and the resulting report will detail any safety concerns observed. The report will be forwarded to the Program Manager who will review and establish deadlines and criteria for compliance. Information from this report will be included in the Program Manager's annual report to the Council. C. Each Program site must have at least one fire extinguisher approved by the Fire Marshal readily available to all Program employees. The fire extinguisher is to be inspected monthly by the Leaders, and a monthly report will be forwarded to the Manager who will keep the report on file for a minimum of two years. All Program employees will be trained in the proper use of fire extinguishers. D. Fire drills will be initiated at Program sites based on the following schedule: (1) After School Program and Middle School After School program: A fire drill once every three months. (2) Spring Break Camp and Holiday Camp: A fire drill once during the session. (3) Summer Camp: A fire drill twice during the session. (4) Teen Camp: A fire drill once during session 18. Health A. Illness or Injury (1) A participant who is considered to be health or safety concern to other participant's or employees will not be admitted to the Program. (2) Illnesses and injuries will be handled in a manner to protect the health of all participants and employees. (3) Program employees will follow plans to provide emergency care for injured participants with symptoms of an acute illness as specified in the Program manual. (4) Program employees will follow the recommendation of the Texas Department of Health concerning the admission or readmission of any participant after a communicable disease. 11 B. Program employees will administer medication only if: (2) Parent(s) complete and sign a medication form that provides authorization for staff to dispense medication with details as to time and dosages. The form will include a hold harmless clause to protect the City. (3) Prescription medications are in the original containers labeled with the child's name, a date, directions, and the physician's name. Program employees will administer the medication only as stated on the label. Program employees will not administer medication after the expired date. (3) Nonprescription medications are labeled with the child's name and the date the medication was brought to the Program. Nonprescription medication must be in the original container. Program employees will administer it only according to label direction. (4) Medication dispensed will be limited to routine oral ingestion not requiring special knowledge or skills on the part of Program employees. (5) Program employees must ensure medications are inaccessible to participants or, if it is necessary to keep medications in the refrigerator (when available), medications will be kept separate from food. (b) Children who may require epi -pen injections due to severe allergic reactions must complete an Anaphylaxis Emergency Action Plan (ASAP) before their child starts the program. Staff will administer the epi -pen in case of emergency based on the instructions stated on the AEAP. C. Toilet Facilities (1) The Program site will have inside toilets located and equipped so children can use them independently and Program staff can supervise as needed. (2) There must be one (1) flush toilet for every 30 children. Urinals may be counted in the ratio of toilets to children, but they must not exceed 50% of the total number of toilets. (3) An appropriate and adequate number of lavatories will be provided. D. Sanitation (1) The Program facilities must have adequate light, ventilation, and heat. (2) The Program must have an adequate supply of water meeting the standards of the Texas Department of Health for drinking water and ensure that it will be supplied to the participants in a safe and sanitary manner. (3) Program employees must see that garbage is removed from buildings daily. 12 Public Hearing AGENDA INFORMATION SHEET AGENDA DATE: April 15, 2014 DEPARTMENT: Planning and Development /Community Development ACM: John Cabrales, Jr. r SUBJECT Hold a public hearing inviting citizens to comment on the City of Denton's 2014 Action Plan for Housing and Community Development. BACKGROUND On an annual basis, the City of Denton prepares an Action Plan for Housing and Community Development (Action Plan) for submission to the US Department of Housing and Urban Development (HUD). The Action Plan serves as the City's application for the Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) programs. The 30 -day comment period and advertisement of the Action Plan review opportunities, allows residents to comment on proposed activities and funding levels. The 2014 Action Plan comment period was advertised as April 7 through May 6. Copies of the plan have been available for citizen review in the Community Development Division office in City Hall East, 601 E. Hickory Ste B, and on the City's website. The 2014 Action Plan includes activities recommended for funding by the Community Development Advisory Committee (CDAC) and the Human Services Advisory Committee (HSAC). It also includes CDBG and HOME administration funding. Minutes from CDAC and HSAC meetings are included in the exhibit. ESTIMATED SCHEDULE OF PROJECT Public comment period April 7 — May 6, 2014 CDAC and HSAC presentation to City Council April 15, 2014 Public Hearing April 15, 2014 Action Plan approval May 13, 2014 Submission of Action Plan to HUD June 15, 2014 HUD release of funds and program initiation August 1, 2014 Agenda Information Sheet April 15, 2014 Page 2 of 2 PRIOR ACTION /REVIEW (Councils, Boards, Commissions) The CDAC reviewed requests for housing and infrastructure improvements. The CDAC developed recommendations for $977, 203 in funding to be allocated to various projects. The HSAC reviewed requests for social services program funding. HSAC developed recommendations for use of both CDBG funds and City General Fund dollars. Though the list of General Fund recommendations is included in the 2014 Action Plan, the approval of the Plan does not include approval of those recommendations. General Fund recommendations will be considered during the normal budgeting cycle. HSAC recommended that $127,319 in CDBG funding be awarded to various social service programs. FISCAL INFORMATION All projects and programs approved under the 2014 Action Plan are funded with CDBG and HOME funds and program income from the use of these funds. No general fund dollars are included in the proposed Action Plan activities. However, some general funds are used for program administration. EXHIBITS 2014 -I5 Action Plan for Housing and Community Development Respectfully submitted: ,T .r Brian Lockley Director of Planning & Development Prepared by: Barbara Ross Community Development Administrator Exhibit 1 Community Development Division ° 601 E. Hickory, Suite B DENTON Denton, Texas 76205 DRAFT Action Plate for Housing and Comm unity Developm en t 2014 -15 Program Year (August 1, 2014 July 31, 2015) Housing Public Improvements Park Facilities Human Services ➢ Prepared for the U.S. Department of Housing and Urban Development. ➢ To be presented to Denton City Council on April 15, 2014 City Council approved on TBD HUD approved on TBD www.cit-\-ofdenton.com ADAIEOEIADE'A TABLE OF CONTENTS A. Executive Summary of Action Plan 1. Introduction ......................................................................................................... ............................... 1 2. Funding Summary ............................................................................................... ............................... 2 3. Proposed Resource Table .................................................................................. ............................... 3 4. Local Match .......................................................................................................... ............................... 4 5. Citizen Participation ............................................................................................ ............................... 4 6. Amendments ......................................................................................................... ..............................5 7. Evaluation of Past Performance ....................................................................... ............................... 5 B. Projects /Activities 1. Summary ................................................................................................................ ..............................6 2. CDBG and HOME Proposed Projects ........................................................... ............................... 7 3. Other Resources Available ................................................................................. .............................14 C. CP Strategies and Proposed Projects 1. Housing Strategies ............................................................................................... .............................15 2. Continuum of Care Strategies ........................................................................... .............................16 3. Lead -Based Paint Strategies ............................................................................... .............................18 4. Human Services Strategies ................................................................................. .............................18 5. Infrastructure & Public Facilities Strategies .................................................... .............................19 6. Demolition Strategies ....................................................................................... ............................... 20 7. Anti - Poverty & Economic Development Strategies .................................... ............................... 20 8. Barriers to Affordable Housing ...................................................................... ............................... 20 D. Proposed Project Map ............................................................................................. .............................22 E. Other Program Requirements 1. HOME - Recapture Policy .............................................................................. ............................... 23 2. Monitoring Standards and Procedures .......................................................... ............................... 25 3. Public Housing Improvements ....................................................................... ............................... 25 4. Public Housing Resident Initiatives .................................................................. .............................25 5. Institutional Structure ......................................................................................... .............................26 6. Chronic Homelessness ..................................................................................... ............................... 27 7. HOME - Minority Outreach Program .......................................................... ............................... 28 8. HOME - Affirmatively Marketing ................................................................. ............................... 28 F. Community Development Minutes 1. Minutes from Public Hearings ........................................................................ ............................... 31 2. 30 -day Comment Period .................................................................................. ............................... 31 G. Appendix 1. SF 424 Application for CDBG Grant ............................................................ ............................... 33 2. SF 424 Application for HOME Grant ........................................................... ............................... 37 3. Certifications for CDBG and HOME ........................................................... ............................... 38 4. Table: Annual Housing Completion Goals .................................................... .............................46 5. Community Development and Human Service Advisory Committee Minutes ..................... 47 Page 1 EXECUTIVE SUMMARY INTRODUCTION This document serves as the City of Denton's 2014 Action Plan for the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) Programs. In accordance with 24 CFR Part 91.220 of Title I of the Housing and Community Development Act of 1974, as amended, the City of Denton is required to submit a One -Year Action Plan to the U.S. Department of Housing and Urban Development. The plan outlines the specific projects and services that will be funded during the 2014 program year to address Denton's strategies stated in the 2010-2014 Consolidated Plan for Housing and Community Development The following five -year strategies were identified in 2010 year and are reaffirmed this year: ■ Housing Strategies: Assistance to Renters, Owners, and Homebuyers and the Production of Affordable Units; ■ Continuum of Care Strategies: Prevention Homelessness, Outreach and Assessment, Emergency Shelter, Transitional Housing and Transition to Permanent Housing and Independent Living; ■ Lead -Based Paint Strategies: Education and Reduction of Lead -Based Paint Hazards to Owners and Homebuyers; ■ Human Services Strategies: Improve availability and accessibility of basic food, emergency shelter, transitional housing, services promoting strong, supportive relationships for families, and basic health care and mental health services. ■ Infrastructure Improvement Strategies: Improvements to Streets, Sidewalks and Water /Sewer lines, Drainage Improvements, Rehabilitation and Expansion of Public Facilities, Park Improvements and Demolition of Substandard Structures; ■ Anti - Poverty & Economic Development Strategy: Support Training and Employment Activities, Expand Education Opportunities, Support of Section 3 goals, and Support of Start- up and expansion industry. The Action Plan was developed by requesting public input regarding the use of federal funds. Funding applications were available in November and December 2013. Application training was provided by Community Development Staff on both community development and human services applications. The Community Development Advisory Committee and the Human Services Advisory Committee reviewed applications and held funding hearings in February and March 2014. Each committee developed a set of funding recommendations. The 2014 Action Plan was developed based on the CDAC and HSAC recommendations. Appendix D on page 45 includes the minutes from both committees. Page 1 FUNDING SUMMARY The City of Denton is currently an entitlement city for the Community Development Block Grant (CDBG) and a participating jurisdiction for the HOME Investment Partnerships (HOME) Programs. SF -424 applications for CDBG and HOME are available in the appendix page 33 and 34. The table below shows the final federal funding available from the U.S. Department of HUD for the 2014/15 program year. The table below also indicates the amount of CDBG and HOME funds that will benefit low and moderate income persons. 2014/15 FUNDING SUMMARY HUD GRANTS CDBG HOME TOTAL Funds Funds Funds Annual Estimated HUD Grant Allocation $848,794 $371,095 $1,219,889 Estimated Program Income $10,000 $65,000 $75,000 Reallocated Funds $25,000 $0 $25,000 2013 Serve Denton /Wheeler Center Playground TOTAL FUNDS AVAILABLE $883,794 $436,095 $1,319,889 The City of Denton and subrecipients will also receive funds from many other federal, state, local and private sources during the 2014/15 Program Year to address priority needs and specific objectives identified in the City of Denton Consolidated Plan. A total of $10,427,308 in additional resources are proposed for the 2014/15 program year. A list of resources available to the City of Denton can be found on the next page and includes local, state and federal resources. Page 2 CITY OF DENTON - COMMUNITY DEVELOPMENT DIVISION PROPOSED RESOURCES FOR 2014/15 PROGRAM YEAR NAME OF AGENCY TYPE OF ACTIVITY FEDERAL FUNDS STATE FUNDS LOCAL FUNDS PRIVATE FUNDS TOTAL FUNDS CDBG HOME Medicaid ESG Criminal Justice CACFP Food Frog. Ryan White Dept. of Health Other TDHHS CCMS Other City of Denton General Funds County Funds Other United Way Other City of Denton - Administration administration $171,758 $43,609 $239,214 $454,581 City of Denton - Home Improvement Program housing $171,2301 $292,486 1 1 $463,716 City of Denton - Kids Summer Camp social services $25,000 $25,000 City of Denton - Minor Repair Program housing $90,720 $90,720 Communities in School social services $18,250 $15,0001 $11,000 $50,946 $81,000 $176,196 Court Appointed Special Advocacy social services $77,293 $197,531 $12,000 $53,410 $22,732 $96,014 $409,087 $868,067 Denton Affordable Housing Corp. housing $100,000 $245,000 $345,000 Denton Christian Preschool social services $35,000 $25,000 $26,000 $97,000 $159,755 $342,755 Denton City County Day School social services $34,000 $55,000 $26,692 $20,000 $0 $25,000 $316,500 $477,192 Denton City County Day School Improvements public improvement $102,767 $102,767 Denton Co. Friends of the Family social services $25,000 $125,846 $364,707 $86,609 $330,556 $159,194 $18,807 $30,670 $127,500 $670,100 $1,938,989 Denton County MHMR Center social services $1,839,892 $9,000 $1,848,892 Denton Community Health Clinic social services $10,000 $20,000 $30,000 Family Health Care, Inc. social services $240,000 $18,000 1 $157,714 $415,714 Fred Moore Day Nursery Improvements public improvement $40,000 $40,000 Fred Moore Day Nursery, Inc. social services $67,200 $88,000 $45,000 $80,000 $343,700 $623,900 Giving Hope, Inc. - HMIS social services $5,000 $68,680 $18,000 $91,680 Giving Hope, Inc. - Transitional Housing social services $67,752 $86,000 $25,500 $9,800 $2,000 $191,052 Health Services of North Texas social services $29,000 $326,800 $650,000 $40,283 $94,000 $23,000 $695,000 $1,858,083 Interfaith Ministries social services $3,800 $25,000 $28,800 Mack Park Playground Replacement public improvement $115,000 $15,000 $130,000 Retired Senior Volunteer Program social services $48,563 $20,644 $11,000 $20,000 $8,000 $97,000 $205,207 Salvation Army of Denton social services $12,000 $20,000 $20,000 $163,650 $215,650 Serve Denton Facility Improvements public improvement $65,000 $37,000 $102,000 Special Program for Aging Needs social services $14,319 $353,685 $81,532 $5,000 $5,700 $54,000 $38,000 $129,000 $681,236 TOTAL RESOURCES $883,794 $436,095 $2,079,892 $142,846 $382,957 $157,200 $326,800 $1,003,685 $395,589 $412,088 $108,000 $548,652 $469,214 $166,217 $188,148 $575,514 $3,470,506 $11,747,197 Page 3 LOCAL MATCH The HOME program requires a participating jurisdiction to provide a 25% match of the federal HOME funds. The City of Denton's local match for the HOME program is $77,233 for the 2014/15 program year. The 25% match of federal HOME grant excludes administrative allowances of 10 %, program income and CHDO operating expenses. The City of Denton will provide the match from a variety of sources including the following: 1. Residual balance of Match from 2013/14 program year. 2. FHLB funds provide to Denton Affordable Housing Corporation for eligible HOME projects. 3. Denton County Housing Finance Corporation funds provides to Denton Affordable Housing Corporation for eligible HOME projects. CITIZEN PARTICIPATION To ensure citizen participation in the 2014 Action Plan process including the substantial amendment to the 2010 -14 Consolidated Plan and 2014 Action Plan for Housing and Community Development, the city followed its Citizen Participation Plan at all stages of the plan and amendment Public hearings were held December 2, 2013 and December 12, 2013. Spanish translations were provided at both public hearings. The public hearings updated citizens on the status of current programs and activities and asked the citizens how they felt the 2014 funds should be spent. Both of the public hearings were held within a low and moderate - income neighborhood. See page 31 for minutes of both public hearings. Information on the public hearings was included in the Community Development Quarterly Newsletter. The Community Development Quarterly Newsletter is was mailed or e- mailed to neighborhood associations; recreation centers and libraries; service agencies and beneficiaries; city council, Human Services Committee (HSC) and Community Development Advisory Committee (CDAC) members; churches; applicants; contractors; participating lenders; Realtors; employees; citizens who attended previous public hearings; and interested citizens. The newsletter which is in Spanish and English is available for pickup or viewing at all recreation centers, libraries, and the City of Denton's website. A notice was also placed in the Denton Record - Chronicle. After the Action Plan was drafted, advertisements were placed in the Denton Record - Chronicle summarizing the plan and announcing to the public where the Action Plan would be available for review, and the process for submitting comments to the City of Denton. The draft Action Plan was available at the Community Development Department and on the City of Denton's web page. The advertisements also included information on the upcoming public hearing. All comments received from the public were addressed before submitting the plan to the U.S. Department of Housing and Urban Development. Comments received during the 30 -day comment period will be included in the Action Plan on page 31. To ensure citizen participation at all stages of the 2014 Action Plan process, a public hearing was scheduled on April 15, 2014 during a City Council Meeting to give citizens the opportunity to comment on the 2014/15 proposed projects and activities. See page 31 for minutes of the public hearing. Page 4 AMENDMENTS The City of Denton is amending the 2013 /14 Action Plan to reallocate $25,000 in CDBG funds to a new activity in 2014/15 program year. The 2013 Action is being amended to reallocate $25,000 in CDBG funds that become available when the Serve Denton Wheeler Center Playground was cancelled due to floodplain issues. The residual funds of $25,000 will be allocated to a new 2014 activity. EVALUATION OF PAST PERFORMANCE Denton's Community Development Division has completed the third year of the City's 2010 -2014 Consolidated Plan. Below is a discussion of program year achievements as related to the goals and objectives stated in the Consolidated Plan. Staff efforts continued to be focused on housing, public services and public facility improvements benefitting low and moderate - income households and neighborhoods. Also included, are some comments regarding potential changes in program /project delivery that could improve services to the low and moderate - income community. City of Denton Community Development (CD) staff managed the City's housing programs. These programs include the owner - occupied Home Improvement Program (HIP), the Minor Repair Program (NIRP) and the Homebuyer Assistance Program (HAP). CD staff also worked with our local Community Housing Development Organization (CHDO) in support of their affordable rental units and Affordable Housing Opportunity Program (AHOP). The City's HAP, HIP and MRP programs assisted 51 households to obtain or improve their housing. Despite recent reductions in funding, this was a significant number of households that benefitted from these programs. During the past year, Community Development staff has worked with the City's Engineering and Water /Wastewater staff to "speed up" the process whereby public facility improvement funding is expended. CD staff is also working with the non - profit, Fred Moore Day Nursery School, to bid out their facility improvement project which includes more than $250,000 in CDBG funding. Staff is dedicated to working with these organizations to begin projects in a timely manner. The Morse and Alexander Water and Sewer Line replacement project was the largest public facility project funded in the past few years. The project was substantially complete by the end of the 2012/13 program year. The City of Denton and the Community Development Division continue to strongly support public services within Denton and Denton County. Along with the CDBG program's 15% contribution to public services, the City of Denton increased the amount of general fund dollars supporting local agencies from $112,797 in 2011 -12 to $170,000 in 2012 -13. An additional $19,000 in general fund dollars has been requested for the 2013/14 year and an additional $25,119 is recommended for the 2014/15 year. This type of support illustrates the commitment of the City of Denton to our local public services agencies and the individuals and families that they serve. Denton also continues to serve as the administrator of the Denton County Homeless Coalition's Emergency Solutions Grant (ESG). The program supports agencies in the cities of Denton and Lewisville that provide homeless and homeless prevention services. The responsibility assumed by taking the lead on this grant is significant. Again, the City of Denton supports provisions of these services throughout the County by paying the salary of the City's Human Services Coordinator from the general fund. Without this support, it is likely that there would not have been sufficient staff time to manage the ESG program. Page 5 2014 PROJECTS /ACTIVITIES SUMMARY The City of Denton's estimated total federal and program income funding for 2014 is $1,319,889 (includes $25,000 of Reprogrammed Funds). Program funds have been allocated to an array of projects and activities to benefit low and moderate- income households. A total of 82% of all CDBG and HOME funds has been allocated to low and moderate income activities not including administration and CHDO operating activities. Each project is described in detail from pages 7 to 13 and is arranged by alphabetically order. See the following list of CDBG and HOME proposed projects and activities for their assigned page number: Index Project Name National Objective CDBG 1 1,085,968 HOME TOTAL Reallocated Funds 2014 Funds 2014 Funds 7 City of Denton Kids Camp LMC $25,000 $25,000 7 Community Development Administration N/A $171,758 $43,609 $215,367 8 Denton Affordable Housing Corp. LMH $100,000 $100,000 8 Denton Citv County Dav School LMC $34,000 $34,000 9 Denton Citv County Day Improvements LMC $102,767 $102,767 9 Denton County Friends of the Familv LMC $25,000 $25,000 10 Fred Moore Dav Nursery Improvements LMC $40,000 $40,000 10 Health Services of North Texas LMC $29,000 $29,000 11 Home Improvement Program LMH $171,230 $292,486 $463,716 11 Minor Repair Program LMH $25,000 $65,720 $90,720 12 1 Mack Park Playground Replacement LMA $115,000 $115,000 12 Serve Denton Facility Improvements LMC $65,000 $65,000 13 Special Programs for Aging Needs LMC $14,319 $14,300 Total Funding Allocated to Projects $25 ,000 $858,794 $436,095 $1,319,870 Funding Available $25 ,000 $858,794 $436,095 $1,319,889 Balance of Funds $0 $0 $0 $19 Total for Low and Moderate Activities Mill= $25,000 1 $687,036 1 373,932 1 1,085,968 Percentage of Low /Moderate Income Activities I= 100% 80% 86% 82% Page 6 PROTECT DESCRIPTIONS The following are descriptions of projects and activities that will be funded during the 2014 program year with CDBG and HOME funds: CITY OF DENTON KIDS CAMP Provision of full time summer camp activities to low and moderate income children ages 5 -11 in Denton. The summer camp will take place at the Denia Recreation Center. Funds will be used for personnel salaries and camp related costs. Program will be carried out by the Citv's Parks and Recreation De artment. HUD Matrix Code: 05L Child Care Services 570.201(e) Objectives: ® Suitable Living Environment ❑ Decent Housing ❑ Creating Economic Opportunities Eligibility: 570.208(a)(2) — Low /Mod Limited Clientele Priority Need: Public Services Specific Objective: Improve the services for low /moderate income persons. Outcomes: ® Availability /Accessibility ❑ Affordability ❑ Sustainability Specific Outcomes Indicators: Number of persons assisted with improved access to a service 56 children Project Goals: 56 children Primary Purpose: ❑ Homeless ❑ HIV /AIDS ❑ Disabled Funding: CDBG $25,000 HOME Other Sources Total $20,000 Subrecipient: Local Government Location: 1001 Parvin, Denton Texas Start Date 06/01/15 Completion Date 08/31/16 COMMUNITY DEVELOPMENT ADMINSTRATION CDBG and HOME funds will be used for program management, coordination, monitoring and evaluation associated with carrying out eligible activities. Funds will also be utilized to continue the City's efforts related to fair housing. The program will be carried out by the City's Community Development Division. Funding includes $2,000 in proposed CDBG program income and $4,500 in HOME program income. HUD Matrix Code: 21A General Program Administration 570.206 21H HOME Admire /Planning Costs of PJ (subject to 10 0/.) 92.207 (a) Objectives: ❑ Suitable Living Environment ❑ Decent Housing ❑ Creating Economic Opportunities Eligibility: g �'' N/A Priority Need: Planning & Administration Specific Objective: N/A Outcomes: ❑ Availability /Accessibility ❑ Affordability Specific Outcomes: N/A Project Goals: N/A Primary Purpose: ❑ Homeless ❑ HIV /AIDS ❑ Disabled Funding: CDBG $171,758 HOME $43,609 Other Sources $239,214 Total $454,581 Subrecipient: Local Government Location: Community Wide Start Date 08/01/14 Completion Date 07/31/15 Page 7 DENTON AFFORDABLE HOUSING CORP — AHOP PROGRAM Acquisition, renovation and resale of single- family homes to income qualified first time homebuyers. Up to $10,000 will be available for down payment and closing costs assistance. Funds will be utilized for the actual cost of acquisition, rehabilitation costs, cost to sale, and down payment assistance. This project also consists of $18,554 for operating expenses (maximum 5% of HOME grant) and $81,446 in CHDO Set -aside (minimuml5% of HOME Grant). Program will be carried out by the Denton Affordable Housing Corporation a certified Community Housin Development Organization (CHDO). HUD Matrix Code: 14G Acquisition for Rehabilitation 92.205 (a) 19B HOME CHDO Operating Costs Objectives: ❑ Suitable Living Environment ® Decent Housing ❑ Creating Economic Opportunities Eligibility: N/A Priority Need: Housing Specific Objective: Increase the availability of affordable owner housing. Outcomes: ❑ Availability /Accessibility ® Affordability ❑ Sustainability Specific Outcomes Indicators: Number of affordable units - 3 Numbers brought to standard condition - 3 Project Goals: 3 housing units Primary Purpose: ❑ Homeless ❑ HIV /AIDS ❑ Disabled Funding: CDBG 0 HOME $100,000 Other Sources $245,000 Total $345,000 Subrecipient: CHDO 92.2 Location: Community Wide Start Date 10/01/2014 Completion Date 09/30/2015 DENTON CITY COUNTY DAY SCHOOL Provision of childcare services for children of low income households between the ages of 2 years and 5 years. Funds will be utilized to pay for teacher's salaries. The school provides affordable day care on a sliding scale. Project will be carried out by the City's Community Development Division and Denton City County Day School. HUD Matrix Code: 05L Child Care Services 570.201(e) Objectives: ® Suitable Living Environment ❑ Decent Housing ❑ Creating Economic Opportunities Eligibility: 570.208(a)(2) — Low /Mod Limited Clientele Priority Need: Public Services Specific Objective: Improve the services for low /moderate income persons. Outcomes: ❑ Availability /Accessibility ® Affordability ❑ Sustainability Specific Outcomes Indicators: Number of persons assisted with improved access to a service - 144 children Project Goals: 144 children Primary Purpose: ❑ Homeless ❑ HIV /AIDS ❑ Disabled Funding: CDBG $34,000 HOME Other Sources $0 Total $34,000 Subrecipient: Private 570.500(c) Location: 1603 Paisley Street, Denton Texas 76209 Start Date 10/01/14 Completion Date 09/30/15 Page 8 DENTON CITY COUNTY DAY SCHOOL IMPROVEMENTS Project consists of making needed improvements to the kitchen to comply with kitchen commercial standards. The school provides affordable day care on a sliding scale for children of low and moderate income households between the ages of 2 years and 5 years. Project will be carried out by the City's Community Development Division and Denton City County Dav School. HUD Matrix Code: 05L Child Care Services 570.201(e) Objectives: ® Suitable Living Environment ❑ Decent Housing ❑ Creating Economic Opportunities Eligibility: 570.208(a)(2) — Low /Mod Limited Clientele Priority Need: Public Services Specific Objective: Improve the services for low /moderate income persons. Outcomes: ❑ Availability /Accessibility ® Affordability ❑ Sustainability Specific Outcomes Indicators: Number of persons assisted with improved access to a service - 144 children Project Goals: 144 children Primary Purpose: ❑ Homeless ❑ HIV /AIDS ❑ Disabled Funding: CDBG $102,767 HOME Other Sources $0 Total $102,767 Subrecipient: Private 570.500(c) Location: 1603 Paislev Street, Denton Texas 76209 Start Date 10/01/14 Completion Date 09/30/15 DENTON COUNTY FRIENDS OF THE FAMILY Provision of counseling services, crisis assistance and emergency shelter for family members impacted by domestic violence and /or sexual assault. Funds will be utilized to pay a percentage of the salary for shelter staff. Program will be carried out by the Denton County Friends of the Family. HUD Matrix Code: 05G Battered and Abused Spouses 570.201(e) Objectives: ® Suitable Living Environment ❑ Decent Housing ❑ Creating Economic Opportunities Eligibility: 570.208(a)(2) — Low /Mod Limited Clientele Priority Need: Homeless Specific Objective: Provide emergency services for homeless persons. Outcomes: ® Availability /Accessibility ❑ Affordability ❑ Sustainability Specific Outcomes Indicators: Number of persons assisted with improved access to a service —5440 persons Project Goals: 4177 persons Primary Purpose: ® Homeless ❑ HIV /AIDS ❑ Disabled Funding: CDBG $25,000 HOME Other Sources $1,913,989 Total $1,938,989 Subrecipient: Private 570.500(c) Location: Confidential Start Date 10/01/2014 Completion Date 09/30/2015 Page 9 FRED MOORE DAY NURSERY PROJECT Project consists of improvements to the children's Activity Room. This will provide a safe, sheltered area for the daycare activities. The day care provides services to low and moderate - income families. The project will be carried out by Fred Moore Day Nursery School and the Community Development Division. HUD Matrix Code: 03M Child Care Centers 570.201 (C) Objectives: ® Suitable Living Environment ❑ Decent Housing ❑ Creating Economic Opportunities Eligibility: 570.208(a)(2) — Low /Mod Limited Clientele Priority Need: Public Facilities Specific Objective: Improve services for low and moderate - income persons. Outcomes: ❑ Availability /Accessibility ® Affordability ❑ Sustainability Specific Outcomes Indicators: Number of persons assisted with access to improved facility — 140 children Project Goals: 140 children Primary Purpose: ❑ Homeless ❑ HIV /AIDS ❑ Disabled Funding: CDBG $40,000 HOME 0 Other Sources 0 Total $40,000 Subrecipient: Private 570.500(c) Location: 821 Cross Timber Street, Denton, 76205 Start Date 08/01/2014 Completion Date 05/31/2015 HEALTH SERVICES OF NORTH TEXAS Provision of food and medical care to individuals and families impacted by AIDS /HIV and medical assistance to underserved, low - income, and uninsured residents of the city of Denton through the Denton Medical Center. Funds will be used to expand the Pharmaceutical Assistance Program and to buy food, and hygiene products for non -HIV related infections and chronic diseases. Program will be carried out by Health Services of North Texas. HUD Matrix Code: 05 Public Services (General) 570.201(e) Objectives: ® Suitable Living Environment ❑ Decent Housing ❑ Creating Economic Opportunities Eligibility: 570.208(a)(2) Low /Mod Limited Clientele Priority Need: Non - Homeless Special Needs Specific Objective: Improve the services for low /moderate income persons. Outcomes: ® Availability /Accessibility ❑ Affordability ❑ Sustainability Specific Outcomes: Number of persons assisted with improved access to a service — 356 persons Project Goals: 356 People Primary Purpose: ❑ Homeless ❑ HIV /AIDS ❑ Disabled Funding: CDBG $29,000 HOME Other Sources $1,829,083 Total $1,858,083 Subrecipient: Private 570.500(c) Location: 4210 Mesa Drive, Denton Texas 76207 Start Date 10/1/2014 Completion Date 9/30/2015 Page 10 HOME IMPROVEMENT PROGRAM Rehabilitation of owner- occupied structures in targeted neighborhoods. Funds are available in low interest loan and grant combinations. Homes that are not suitable for rehabilitation are demolished and reconstructed. Funding also includes estimated program income for HOME ($58,500) and CDBG ($8,000). Program will be carried out by the City's Community Develo meat Division. HUD Matrix Code: 14A Rehab; Single -Unit Residential 570.202 Objectives: ❑ Suitable Living Environment ® Decent Housing ❑ Creating Economic Opportunities Eligibility: 570.208(a)(3) — Low /Mod Housing Priority Need: Owner - occupied Housing Specific Objective: Improve the quality of owner - occupied housing. Outcomes: ❑ Availability /Accessibility ® Affordability ❑ Sustainability Specific Outcomes Indicators: Number of units brought from substandard to standard condition — 7 housing units Project Goals: 7 housing units Primary Purpose: ❑ Homeless ❑ HIV /AIDS ❑ Disabled Funding: CDBG $171,230 HOME $292,486 Other Sources Total $463,716 Subrecipient: Local Government Location: Community Wide Start Date 08/01/2014 Completion Date 07/31/2015 MINOR REPAIR PROGRAM Program serves low - income homeowners by providing a grant of up to $5,000 for repairs. Repair cannot be covered by homeowner's insurance. Program carried out by the City's Community Development Division. HUD Matrix Code: 14A Rehab; Single -Unit Residential 570.202 Objectives: ❑ Suitable Living Environment ® Decent Housing ❑ Creating Economic Opportunities Eligibility: 570.208(a)(3) — Low /Mod Housing Priority Need: Owner - occupied Housing Specific Objective: Improve the quality of owner housing. Outcomes: ®Availability /Accessibility ❑ Affordability ❑ Sustainability Specific Outcomes Indicators: Number of units occupied by elderly - 8 Number of units made accessible - 4 Project Goals: 40 housing units Primary Purpose: ❑ Homeless ❑ HIV /AIDS ❑ Disabled Funding: CDBG $90,720 HOME Other Sources Total $90,720 Subrecipient: Local Government Location: Community Wide Start Date 08/01/2014 Completion Date 7/31/2015 Page 11 MACK PARK PLAYGROUND REPLACEMENT Project consist of the replacing the playground unit at Mack Park with an updated U.S. Consumer Protection Agency, ADA approved playground unit. The current unit is outdated and significant advancements have been made in accessibility standards in recent years. The project is located in a low and moderate income service area that has a total of 7,063 eo le. The project will be carried out by the City's Parks and Recreation Department HUD Matrix Code: 03F Parks, Recreation Facility Objectives: ® Suitable Living Environment ❑ Decent Housing ❑ Creating Economic Opportunities Eligibility: 570.208(a)(1) Low /Mod Area Priority Need: Infrastructure Specific Objective: Improve quality /increase quantity of public improvements for low income persons. Outcomes: ® Availability /Accessibility ❑ Affordability ❑ Sustainability Specific Outcomes Indicators: Number of persons assisted where activity was used to meet a measurable improvement of quality. — 7,063 people Project Goals: 7,063 people Primary Purpose: ❑ Homeless ❑ HIV /AIDS ❑ Disabled Funding: CDBG $115,000 HOME 0 Other Sources 0 Total $115,000 Subrecipient: Local Government Location: 1701 E. McKinnev Street Denton Texas Start Date 09/01/2014 Completion Date 06/30/2015 SERVE DENTON FACILITY IMPROVEMENTS Project consists of facility improvements to a building that will serve as a central service area for individuals and families needing various types of assistance. The project will include improvements such as a Pantry /Clothing Closet room and a client counseling area. The project will be carried out by Serve Denton and the Community Development Division. HUD Matrix Code: 03 Other Public Facilities and Improvements Objectives: ® Suitable Living Environment ❑ Decent Housing ❑ Creating Economic Opportunities Eligibility: 570.208(a)(2) — Low /Mod Limited Clientele Priority Need: Public Facilities Specific Objective: Improve services for low and moderate income people. Outcomes: ® Availability /Accessibility ❑ Affordability ❑ Sustainability Specific Outcomes Indicators: Number of persons assisted with access to improved facility — 5414 people Project Goals: 5414 people Primary Purpose: ❑ Homeless ❑ HIV /AIDS ❑ Disabled Funding: CDBG $65,000 HOME 0 Other Sources 0 Total $65,000 Subrecipient: Private 570.500(c) Location: 1910 E. University Drive, Denton, TX 76209 Start Date 09/01/2014 Completion Date 05/31/2015 Page 12 SPAN, INC. (SERVICES PROGRAMS FORAGING NEEDS) Provision of congregate and home - delivered meals to the elderly. Funds will be used to buy meals. SPAN provides meals, primarily to elderly Denton residents or to persons sixty years or older. Home meals are specifically provided to home -bound persons. Congregate meals are provided at two local senior centers. Of the meals provided by SPAN, Inc., 16% are congregate meals and 84% are home - delivered meals. Program will be carried out by SPAN. HUD Matrix Code: 05A Senior Services 570.201(e) Objectives: ® Suitable Living Environment ❑ Decent Housing ❑ Creating Economic Opportunities Eligibility: 570.208(a)(2) — Low /Mod Limited Clientele Priority Need: Non - housing special needs Specific Objective: Improve the services for low /moderate income persons. Outcomes: ® Availability /Accessibility ❑ Affordability ❑ Sustainability Specific Outcomes Indicators: Number of persons assisted with improved access to a service — 965 persons Project Goals: 965 people Primary Purpose: ❑ Homeless ❑ HIV /AIDS ❑ Disabled Funding: CDBG $14,319 HOME Other Sources $666,917 Total $681,2361 Subreci Tent: Private 570.500(c) Location: 1800 Malone Street, Denton, Texas 76201 Start Date 10/01/2014 Completion Date 09/30/2015 Page 13 OTHER RESOURCES AVAILABLE GENERAL FUNDS Also, during the 2014 program year, the City of Denton plans to undertake additional activities /programs to address local objectives and strategies using City of Denton General Fund dollars. The Human Services Advisory Committee has recommended funding the following human services programs. It is recommended that these activities be funded through Denton's general fund budget. City Council will consider approval of the following recommendations in September 2014. Name of Agency Proposed Goals General Funds Other Funds Total Funds Aging Services Retired Senior Volunteer Program 730 $11,000 $194,207 $205,207 Special Programs for Aging Needs SPAN N /A* $5,700 N /A* $5,700 Emergency Services Giving HOPE, Inc. - HMIS N/A $18,000 $73,680 $91,680 Giving HOPE, Inc. - Transitional Housing 20 $25,500 $165,552 $191,052 Interfaith Ministries 50 $3,800 $25,000 $28,800 Salvation Army of Denton 1750 $20,000 $195,650 $215,650 Day Care /After School Care Denton Christian Preschool 100 $26,000 $316,755 $342,755 Fred Moore Day School Nursery 140 $45,000 $578,900 $623,900 Child /Family Services Court Appointed Special Advocates CASA 550 $12,000 $856,067 $868,067 Communities in School 350 $11,000 $165,196 $176,196 Health /Mental Services Denton Community Health Clinic 148 $10,000 $20,000 $30,000 Denton County MHMR Center 36 $9,000 $1,839,892 $1,848,892 Family Health Care, Inc. 72 $18,000 $397,714 $415,714 Total 3946 $215,000 $4,828,613 $5,043,613 *The proposed goals were reported in CDBG since SPAN is recommended for both CDBG and General Funds. Page 14 STRATEGIES & PROPOSED PROJECTS The City of Denton's 2014 funding has been allocated to programs and activities that meet objectives stated in Denton's five -year strategic plan. Following is the list of the five -year strategies and proposed outcomes stated in the 2010 -14 Consolidated Plan and proposed projects and activities that will be undertaken to meet those strategies. Outcome/ 5 -yr Consolidated 5 -yr Consolidated Plan 1 -yr Action Plan Objective Plan Outcome Measures Proposed Activities Strategy RENTAL HOUSING STRATEGIES H -3.1 Encourage and An addition of 150 rovide support for developments meeting ustainability support the affordable units in mixed his strategy. of Decent development of small 'income developments with Housing mixed-income rental 50 units or less would assist developments in in meeting this outcome ccessible areas. measure. H -2.1 Encourage self- Self sufficiency programs will ork with and provide funding when Affordability of sufficiency among target households receiving ppropriate to support transitional housing Decent households that rental assistance and other d self- sufficiency programs administered by Housing currently receive rental forms of public assistance. enton Housing Authority and Giving subsidies and other Create housing affordability OPE, Inc. and other local organizations. forms of public for 3 to 5 households per support. year. H -1.1 Encourage and Support repairs or ork with Community Improvement vailability/ support the rehabilitation of 5 to 10 units ivision and local rental property owners to ccessibility of rehabilitation of per year. dentify and support rehabilitation of Decent substandard units. substandard units. Housing H -2.2 Encourage and assist Approximately 150 renters ontinue supporting the City's Homebuyer Affordability of ow- income renters to will be assisted. ssistance Program, DAHC's Affordable Decent become homeowners. ousing Opportunity Program, Denton Housing ousing Authority's Family Self Sufficiency rogram and Habitat for Humanity. H -1.2 Target programs and Four newsletters per year Disseminate program information in Spanish Availability/ information to will be sent out. Additional and English to organizations serving these Accessibility of minorities and the information will appear on groups. Decent elderly. cable channel. Housing OWNER- OCCUPIED HOUSING STRATEGIES H -2.3 Educate homeowners Information will be provided even (7) households will be provided Affordability of regarding home to 8 -10 households per year. successful homeowner education through the Decent maintenance and ome Improvement Program. Housing budgeting for major d minor repairs and safe cleaning practices. Page 15 Outcome/ 5 -yr Consolidated 5 -yr Consolidated Plan 1 -yr Action Plan Objective Plan Outcome Measures Proposed Activities Strategy H -2.4 Assist low and Provide minor repairs to Funding of the Minor Repair Program for a Affordability of moderate-income approximately 100 very low minimum of 40 households. Decent households with to moderate - income Housing minor housing repairs homeowners. d weatherization. H -3.2 Encourage and assist Assistance to 20 to 35 unding of the Home Improvement Program ustainability low and moderate- households. It is anticipated or 7 households. of Decent income homeowners that 25 % -35% of the annual Housing to maintain their units allocation will be dedicated p to current City of to this targeted area. Denton code standards in targeted areas. HOMEOWNERSHIP & PRODUCTION OF AFFORDABLE UNITS H -2.5 Educate homebuyers Information will be provided upport of HUD approved homeownership Affordability of regarding home to 100 prospective orkshops by local agencies and lenders. Decent buying process and homebuyers. rovide class information to at least 15 Irogram. Housing household budgeting. omebuyers to the Homebuyer Assistance H -2.6 Encourage and assist Approximately 100 renters upport the City of Denton's Homebuyer Affordability of low and moderate win be assisted. Assistance Program with residual funds and Decent income renters to provide funding to DAHC's Affordable Housing become homeowners. Housing Opportunity Program. It is anticipated that 5% to 50% will be minority households. H -2.7 Support production of Construction of an estimated upport the Habitat for Humanity's New Affordability of affordable units. 50 new units. onstruction Program. Decent Housing CONTINUUM OF CARE — PREVENTING HOMELESSNESS H -2.8 Provide assistance for 1) Support a minimum of 1a) Support and refer persons to local Affordability of ow- income 100 units of individual business and agency's' First Time Decent households to secure and group counseling and Homebuyer classes and Credit Housing and sustain safe, educational opportunities Counseling Classes decent affordable concerning securing and 1b) Provide funding to Giving Hope, Inc in housing maintaining a home. support of counseling, education and case ) Support 750 individual/ management family units of services to a) Provide administrative support secure and maintain b) Continue to support the HUD housing including Counseling Agencies, Giving Hope, Inc. prevention of foreclosure that assists in foreclosure prevention. and eviction a year. CONTINUUM OF CARE — OUTREACH AND ASSESSMENT Page 16 Outcome/ 5 -yr Consolidated 5 -yr Consolidated Plan 1 -yr Action Plan Objective Plan Outcome Measures Proposed Activities Strategy L -1.1 Improve community 1) Continue implementation 1) Provide funds to Homeless Management Availability/ assessment of needs of HMIS. Increase data Information System to enroll and support ccessibility of and services available sharing and number of homeless service agencies. Suitable Living participants. At least 3 — a) Assist the DCHC to merge with the Environment 5 agencies should Texas Balance of State CoC and participate in data implement locally the CoC's plan to end sharing. Chronic Homelessness Support development of b) Assist with the implementation of a a county -wide, Coordinated Access Network for the coordinated Discharge assessment of needs and services. Policy and Plan to End Chronic Homelessness in two years. CONTINUUM OF CARE — EMERGENCY SHELTER H -1.3 Meet the emergency 1) Support at least 1,000 1) Provide funds to the Denton County vailability/ shelter and basic emergency shelter nights Friends of the Family Safe Shelter and ccessibility of health, food, clothing, of stay a year. Salvation Army of Denton. Decent and personal hygiene ) Assist local agencies to 2) Support local agencies with application to Housing needs of the homeless apply for at least three Emergency Solutions Grant, Supportive d victims of grants to provide Housing Program and other grants as domestic violence. supportive services to all applicable. homeless, victims of domestic violence, homeless families or homeless vouth. CONTINUUM OF CARE — TRANSITIONAL HOUSING H -1.4 Meet the transitional 1) Support at least 50 1a) Provide funds to Giving Hope, Inc's vailability/ housing and individuals/ families transitional shelter program to assist 20 Accessibility of supportive service provided with transitional people. Decent needs of the homeless housing a year 2a) Provide local agencies with information Housing and victims of ) Assist local agencies to on grant opportunities for funds to omestic violence in apply for at least two support transitional housing and reparation for a grants to provide supportive services. move to permanent or additional transitional 2b) Provide support for the applications to ermanent supportive housing and supportive request Emergency Solutions Grant housing. services Funds, Supportive Housing Program and Support the increase use other funds as applicable for transitional of transitional housing housing and supportive services. and /or supportive 3) Assist the Denton County Homeless services to prepare Coalition with the local implementation individuals for permanent of the Texas Balance of State CoC's plan housing in the Ten Year to end Chronic Homelessness. Plan to End Homelessness. Page 17 Outcome/ 5 -yr Consolidated 5 -yr Consolidated Plan 1 -yr Action Plan Objective Plan Outcome Measures Proposed Activities Strategy CONTINUUM OF CARE – TRANSITION TO PERMANENT HOUSING AND INDEPENDENT LIVING H -3.3 Provide homeless 1) Assist agencies to apply 1a) Support local Giving Hope, Inc. and ustainability and victims of for at least two grants to Denton County MHMR apply for of Decent domestic violence provide permanent Supportive Housing Program funds for Housing with permanent or supportive housing with permanent supportive housing program an emphasis on chronic projects. permanent homeless and persons 1b) Provide local agencies with information supportive housing. with a severe mental on grant opportunities for funds to illness and/ or HIV support transitional housing and positive status. supportive services. Assist at least two 2a) Participate in the Denton County community partnerships/ Homeless Coalition. collaborative efforts to 2b) Provide funding to support programs of continue to provide Giving Hope, Inc, Denton County additional permanent Friends of the Family, and Denton housing opportunities to Affordable Housing Corporation who the homeless, potentially have a collaborative effort to move homeless and victims of victims of domestic violence from domestic violence emergency shelter to Transitional housing in preparation for stable, sustainable permanent housing. 2c) Support local agencies with application to Emergency Solutions Grant, Supportive Housing Program and other grants as a licable. LEAD -BASED PAINT STRATEGIES H -1.5 Educate homeowners, 30 households and 50 -75 welve (12) homeowners will receive both vailability/ rental property contractors and property he HUD pamphlet— Protect Your Family ccessibility of owners /managers & managers received field rom Lead in Your Home and the EPA Decent contractors regarding guides for painting, home amphlet — Renovate Right. Fifteen realtors Housing disclosure, the history maintenance and renovation ill be educated on both the HUD Lead Rule f lead -based paint, its work instructions. 20 Ind the EPA RRP Rule. All contractors hazards to children wners, managers or ontacted will be encouraged to receive EPA d how to use safe contractors receive certification. work practices when 'In dividual safe work practice disturbing paint in video training for the five- older housing. year period H -1.6 Reduce Lead -Based Average of 40 units will In properties built before 1978, five minor vailability/ Paint Hazards in receive lead -based paint repairs, three owner occupied rehabilitations Accessibility of Dwner and renter- inspection, hazard control Ind five homebuyer assistance projects will be Decent Dccupied residential reduction work or ompleted and receive lead -based paint Housing units as needed. abatement, pass inspections reduction work, pass inspections and meet and, when required, meet final clearance in compliance with 24 CFR 35 final clearance over the five- regarding lead -based paint during 2011. For year period. the Homebuyer Assistance Program, only a visual inspection will be conducted and ro erty must pass inspection. HUMAN SERVICES STRATEGIES Page 18 Outcome/ 5 -yr Consolidated 5 -yr Consolidated Plan 1 -yr Action Plan Objective Plan Outcome Measures Proposed Activities Strategy L -1.2 Meet the basic food 1) Support at least 300 1a) Provide funds to support the Nutrition Availability/ needs of the homeless emergency meals and Center of Health Services of North Texas Accessibility of and low - income food bags a year and the Salvation Army of Denton Suitable Living KARE Kitchen to provide an estimated nvironment ) Support at least 150 meals 2200 persons with emergency meals. and nutritional food b) Provide funds to support SPAN who will bags /shops a year provide meals to 310 to persons over 60 or disabled persons. L -1.3 Meet the basic shelter 1) Support at least 250 1a) Provide funds to the Denton County vailability/ needs of homeless and emergency shelter nights Friends of the Family Shelter to assist ccessibility of ow- income persons of stay a year 4,177 people with 9,000 shelter days. Suitable Living ) Support at least 25 1b) Support local agencies with application to Environment individuals/ families Emergency Solutions Grant, providing provided with transitional funding to emergency shelter programs at housing a year Denton County Friends of the Family 3) Provide at least 60 hours and Salvation Army of staff time in support of 2) Provide funds to Giving Hope, Inc to at least 3 projects for the support a transitional housing program Denton County for an estimated 20 persons. Homeless Coalition a year 3) Provide 60 staff hours to support the ) Support 75 individual/ Denton County Homeless Coalition with family units of case Advocacy Committee, PIT Count, and management and other Coordinated Access Network (CAN) services to maintain a) Provide administrative support housing including 4b) Continue to support the HUD prevention of foreclosure Counseling Agencies, Giving Hope, Inc. and eviction a vear that assists in foreclosure prevention. L -1.4 Foster and maintain an 1) Participate in at least 3 1a) Participate in the Denton County vailability/ environment where coalitions and /or Homeless Coalition in the effort to Accessibility of families, collaborative efforts for prevent and end homelessness. Denton Suitable Living neighborhoods, and community initiatives to Information Network (DIN), The Pre -K Environment communities enjoy foster and maintain an Coalition and Bank on Denton strong, supportive environment to promote a) Provide funds to three daycares to relationships strong, supportive support the provision of childcare to an relationships. estimated 385 children. Support at least 150 b) Provide funds to after school /summer individuals/ family units care programs and the provision of of childcare, after- school childcare for 56 children. and summer care, a) Provide funds to Denton County Friends parenting skills, and adult of the Family for the provision of education assistance a domestic violence and sexual assault year. victim services including counseling. 3) Support at least 75 units b) Provide support to Children's Advocacy of domestic violence and Center for Denton County to provide sexual assault prevention sexual abuse /assault services to children education and training a and non - offending families members. year c) Provide funds to Denton County Friends of the Family for the provision of community education and offender classes to prevent domestic violence and sexual assault. Page 19 Outcome/ 5 -yr Consolidated Objective Plan 5 -yr Consolidated Plan 1 -yr Action Plan Strategy Outcome Measures Proposed Activities L -1.5 City residents have 1) Support at least 50 units 1) Provide support to Family Health Care Availability/ access to health care of health care services a and Denton Community Health Clinic Accessibility of to be as physically and year. and for primary health care and pre -natal Suitable Living mentally fit as possible ) Participate in any services for the delivery of 200 units of Environment coalitions /collaborative health care services. efforts to improve availability of health care especially for low - income persons, elderly and people with disabilities. ^) Support at least 20 units of mental health care services a year. INFRASTRUCTURE & PUBLIC SERVICE FACILITIES STRATEGIES L -3.1 Street improvements. Promote livability & Not applicable this year. ustainability sustainability for residents of f Suitable ow /mod neighborhoods. wing Projects will support 200 Environment hhs. L -3.2 Installation of new Promote livability and of applicable this year. ustainability sidewalks and sustainability for residents of of Suitable replacement sidewalks. ow /mod neighborhoods. Living Projects will support 200 Environment hhs. L -3.3 Installation of water Promote livability and Not applicable this year. ustainability and sewer lines. sustainability for residents of of Suitable Connection of ow /mod neighborhoods. Living residential units to Projects will support 150 Environment services. hhs. L -3.4 Installation of drainage Promote livability and Not applicable this year. ustainability improvements sustainability for residents of of Suitable including ow /mod neighborhoods. Living improvements that Project will support Environment will remove residential approximately 50 hhs. properties from ood lain. L -3.5 Rehabilitation and Improve availability & Funding the following public facilities: Fred ustainability expansion of public accessibility of services Moore Day Nursery Improvements, Serve of Suitable services facilities. through improvement to at Denton Facility Improvements and Denton Living least 2 public service City County Day School Improvements. Environment facilities. L -3.6 mprove and /or Improve availability & Provided funding to replacement the Mack ustainability expand park facilities accessibility of services to at Park playground with an ADA approved of Suitable including open space, least 2 park facilities. playground unit. Living playground and other Environment recreational facilities. DEMOLITION STRATEGIES Page 20 Outcome/ 5 -yr Consolidated 5 -yr Consolidated Plan 1 -yr Action Plan Objective Plan Outcome Measures Proposed Activities Strategy L -3.7 Continue to demolish To demolish 20 structures Continued support for the Demolition ustainability substandard buildings during the five -year period. Program through Community Improvement of Suitable to improvement the Division. Living appearance and safety Environment pf neighborhoods ANTI- POVERTY & ECONOMIC DEVELOPMENT STRATEGIES 0 -3.1 Support training and Provide economic rovide non - federal incentives to ustainability employment activities opportunity by supporting rganizations to create jobs. Work with job of Economic targeted to poverty activities that create jobs. raining organizations to promote training in Opportunity and very low - income Observe an increase in the specific areas of need. households. number of poverty and low- income hhs that achieve self - sufficiencv*. 0 -1.1 Expand educational Provide economic Provide funding to transitional housing vailabihty/ opportunities for opportunity for transitional providers. Request that information on Accessibility of those seeking housing clients. 25 -35 hh educational opportunities be provided to Economic transitional housing or (over 5 years) receive clients. Opportunity other housing support counseling/ educational services. services. 0 -1.2 Encourage support of Over the five -year period Monitor federally funded projects and work vailabihty/ Section 3 goals by 5+ individuals hired for with contractors to ensure that Section 3 Accessibility of local contractors. projects by private requirements are fulfilled. Economic contractors. Opportunity BARRIERS TO AFFORDABLE HOUSING STRATEGIES H -16 Educate the Improve accessibility and Quarterly newsletter will be sent out to vailability /Ac community regarding availability of information on clients, local lenders, realtors, agencies, essibility of the benefits of affordable units by providing churches, neighborhood associations, Decent affordable housing. omeownership and fair libraries, recreation centers and many others. Housing housing information Three public hearings will be held during the quarterly newsletters, at least preparation of the annual action plan and the ublic hearings annually. preparation of the performance report. H -2.9 On an annual basis, Create affordability in Continue to request impact fee grants from Affordability of request approval and housing through provision the General Fund for housing non - profits for Decent funding for impact fee Df an average of three to five the construction of affordable housing. Housing grants for producers grants per year over the five- )f affordable housing. year period. H -2.10 Allocate funding to Create affordability in Funding support for Denton Affordable Affordability of the non - profit and for- housing through Housing Corporation. Continued support of Decent profit organizations construction of 25 — 50 SF Habitat for Humanity and private developers. Housing that are developing units and 50 -100 rental units affordable housing. that are affordable to low- Request that they income households over the ttempt to maximize five-year period. he leveraging of these ollars and provide ocumentation. Page 21 0204.02 0204.01 02015.00 2014 PROPOSED PROJECT MAP With Minority Concentrated areas by Census Tracts 2014 Projects and Activities 1. Mack Park Playground Replacement 2. Denton City County Day School* 3. Serve Denton Facility Improvements Community -Wide Activities Community Development Administration Denton Affordable Housing Corp. Home Improvement Program 4. Health Services of North Texas* 5. City of Denton Kids Summer Camp* 6. Fred Moore Day Nursery Project Minor Repair Program Services Program for Aging Needs, Inc Geographic distribution of projects is based on citizen comments, service provider and City staff input regarding significant needs in the low - income community, specifically in regard to public facility improvements. Home Improvement Program activities are limited to low - income areas that are zoned residential. This is to ensure that substantial amounts of funding are not expended on housing in areas zoned commercial or industrial, where the zoning transition in the near future, would no longer allow residential development. *Public service activity locations are provided on the above map that indicates the location where the services are taking place, however, services provided by each of the organizations is available to low and moderate - income households throughout the Denton community. Page 22 OTHER PROGRAM SPECIFIC REQUIREMENTS HOME Investment Partnership Program HOME The jurisdiction must describe activities planned with HOME funds expected to be available during the year. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows: The City of Denton does not utilize other forms of investment beyond those identified in 92.205(b). The City will not permit other forms of investment without the prior approval of HUD. 2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows: The City of Denton utilizes HOME funds to provide assistance to first -time homebuyers with closing costs, down payment, prepaids and principal reduction through the City of Denton's Homebuyer Assistance Program (HAP) and Denton Affordable Housing Corp.'s Affordable Housing Opportunity Program (AHOP). The maximum HOME subsidy for both programs will be $14,900. The HOME subsidy sets up a 5 -year recapture period and provided as a deferred forgivable loan at a 0% interest rate. City of Denton utilizes recapture for both programs as required by 24 CFR 92.254(a). Recapture occurs when the homebuyer sells the property during the affordability period, or when the recipient of HOME funds defaults by leasing the property, fails to maintain the property as a primary residence, the property is foreclosed on by any lender, or when the recipient violates the covenants contained in the Written Agreement between the homebuyer and the City of Denton or DAHC. The terms of recapture are contained in the Written Agreement between the homebuyer and the City of Denton or Denton Affordable Housing Corporation. The City of Denton and DAHC's homebuyers that receive direct down payment, closing cost, principal buydown assistance and /or a reduction of the sales price to below the market value to make the unit(s) affordable, will meet the affordability period if they remain in the home for the full required period of affordability as determined by the amount of the assistance received (five to fifteen years). The actual required period of affordability will be based on the total amount of the direct HOME assistance provided as noted below. The effective date of the beginning of the required period of affordability is the date all completion data is entered into IDIS and as documented by a fully executed HUD -1, a copy of which has been placed in each individual homebuyer's file. HOME Program Assistance Amount Minimum Required Affordability Period in Years $1,000 - $14,999.99 5 $15,000 — $40,000 10 Over $40,000 15 Page 23 Under "Recapture ", if the home is sold prior to the end of the required affordability period a portion of the net sales proceeds from the sale, if any, will be returned to the City of Denton to be used for other HOME- eligible activities. The portion of the net sales proceeds that is returned to the City of Denton is equal to the amount of HOME funds invested in the property less the amount for each full month that the residence was occupied by the homebuyer or property owner as his /her /their principal residence. Any funds remaining after the distribution of the net sales proceeds to all lien holders, including the City of Denton, will be returned to the homeowner. In the event of a sale, short sale or foreclosure, the amount recaptured will be limited to the amount of `net sales proceeds' available at the time of such occurrence. If there are insufficient funds remaining from the sale of the property and the City of Denton recaptures less than or none of the recapture amount due, the PJ must maintain data in each individual file that provides the amount of the sale and the distribution of the funds. This will document that: 1. There were no net sales proceeds; or ii. The amount of the net sales proceeds was insufficient to cover the full amount due; and that, iii. No proceeds were distributed to the homeowner. Other than the actual sale of the property, if the homebuyer breaches the terms and conditions for any other reason, e.g. no longer occupies the property as his /her /their principal residence, the full amount of the subsidy is immediately due and payable. The City of Denton must immediately repay its HOME Treasury Account, from non - federal funds, for the full amount of the assistance provided whether or not it can recoup any or all of the funds from the homebuyer. 3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds are as follows: Federal assistance will be provided in the form of a 0% interest, deferred payment loan (DPL) and will be secured by a HOME Written Agreement, fully executed and dated by all applicable parties and a Promissory Note and Deed of Trust. The Deed of Trust is recorded in the Real Property Records of Denton County. 4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows: The City of Denton does not currently use of HOME funds to refinance existing debt secured by multi - family housing that is being rehabilitated with HOME funds. Page 24 MONITORING STANDARDS AND PROCEDURES The City of Denton will complete an annual comparison of the objectives stated in the 5 -year Consolidated Plan with actual accomplishments. Based on the comparison the City of Denton will consider making changes or updates to the 5 -year Consolidated Plan. The City of Denton provides CDBG and General Funds to several non - profits agencies and departments providing supportive services. The City's Human Services Coordinator monitors agencies on a daily basis. Each year agency staff is provided with training on financial procedures and data collection. Agency staff is provided with appropriate Federal guidelines and OMB circulars to ensure that they have access to pertinent information. Agencies are required to provide quarterly beneficiary and financial reports. A year -end report is required to detail annual expenditures, beneficiary information, funding sources and major accomplishments. Each year, the Human Services Coordinator completes a risk analysis based on established criteria. On -site monitoring visit are completed on all "high risk" organizations. The on -site monitoring includes a review of client files, financial and accounting records, and procurement procedures. Independent audits are also submitted and reviewed by the City staff. For the HOME program, a similar process is also followed to monitor the Denton Affordable Housing Corporation, a certified CHDO. The City's Community Development Coordinator with the help of the Community Development staff monitors the CHDO on a regular basis to ensure that the non -profit is meeting HOME regulations. Also, the only rental project not funded through the local CHDO, is a project that provides transitional housing and services for single- parent families. This organization is also monitored annually including a review of the client files for income information. Programs and projects carried out by the City are monitored daily. Staff maintains checklists on individual projects to ensure that all required procedures have been completed. The housing rehabilitation staff maintains records on all rehabilitation projects. The Community Development Coordinator maintains records for the Homebuyer Assistance Program and the Administrator maintains records on public infrastructure projects. The Administrator reviews and certifies all applications prior to provision of assistance. A year -end report that details expenditures, revenue, beneficiary information and major accomplishments is also required from all City programs and projects. PUBLIC HOUSING IMPROVEMENTS The City of Denton has no public housing units. PUBLIC HOUSING RESIDENT INITIATIVES The City of Denton has no public housing units. However, City staff will continue to work with the Denton Housing Authority to promote the Homebuyers Assistance Program to those currently receiving Section 8 assistance. Information on the Homebuyer Assistance Program has been mailed to all Section 8 recipients with their utility bills. No resident initiatives strategies were included in the Consolidated Plan. Page 25 INSTITUTIONAL STRUCTURE The City of Denton's 2010 -2014 Consolidated Plan notes six "gaps" in organizational structure that hinder effective housing and social services delivery. These gaps include the following with the City's efforts to ameliorate these conditions during the coming year: Need for more effective communication between housing organizations in the North Texas area, including those serving the City of Denton. Local housing organizations need to work together to expand resources and programs to ensure that a variety of housing choices are available to serve low and moderate- income households. Action to overcome gap: Continue to encourage participation in the Denton County Homeless Coalition, the Denton County Senior Services and other collaborative organisations. 1Vork with agencies and continue to support partnershp fforts and the sharing of infor- nation regarding funding opportunities. 2. Need for more effective coordination between emergency assistance agencies. Action to overcome gap: Continue to support Boris of the Denton County Homeless Coalition and HOPE, Inc. to expand the network of organiationsparti(ipating in HMIS. 3. Lack of private contractors experienced in lead -based paint hazard reduction and abatement and lack of funding to complete projects. Contractor training along with additional funding targeted to lead abatement is critical to continue the City's owner- occupied rehabilitation program. Action to overcome gap: Request additional funding where available to train contractors andpay increased costs. Work with training organisations to promote training opportunities to local contractors and employees. 4. Lack of shelter facilities for families and youth. Action to overcome gap: Support work of Denton County Homeless Coalition in targetingprzorzty services and facilities needed in the area. Assist in grant writing and other forms of fund raising. Administer- homeless grant funds when appropriate and support is needed. 5. Lack of coordination of homebuyer /homeowner educational services needed to provide a higher level of information. Action to overcome gap: Investigate a partnership with the Denton Housing Coalition, Denton Affordable Housing Corporation andl or the State of Texas to develop a more comprehensive educational program. 6. Inability to assist low and moderate- income property owners to bring housing units up to standard condition. Action to overcome gap: Seek out additionalfunding to assist loran income homeowners and work to develop program orpolicies to ensure that owners of rentalproper�v inprove units as needed to maintain unitup to local code requirements. ADDRESSING THE CHRONIC HOMELESS During the 2010 -2014 Consolidated Plan process, the Denton County Homeless Coalition (DCHC) was working on a three -step planning approach to building a community strategy to end chronic homelessness. Essentially these were 1) Conducting research to identify stakeholders, strategies, goals, and activities to promote appropriate services for the chronic homelessness; 2) Drafting a plan for strategies, goals and activities to present to stakeholders; and 3) Convening a large Page 26 community meeting for all identified stakeholders to review, modify, and agree upon a plan for the community to end - chronic homelessness. As a result, of successful implementation of these steps, the following are to be added to community's overall strategy to end chronic homelessness. During the 2014/15 program year DCHC will: • Merge with the Texas Balance of State (BOS) Continuum of Care (CoC) managed by the Texas Homeless Network (THN) to expand access to funding, collaborative tools and knowledge resources. • Improve data collection and resources by improving the Homeless Management Information System (HMIS) collections and increasing the number of contributors to HMIS locally; • Ensuring the relevance of data collected by moving from a biennial point -in -time (PIT) homeless count to an annual count. • Implement a centralized, community -wide coordinated system of services and programs that is a client centered. The goal would be to unclog the system, reduce the duplication of efforts, improve assessment to better identify each client's specific need. Since joining the BOS CoC in just the first few months of 2014 the community is already seeing successful results. The amount of grant dollars accessible for homelessness program has increased. The annual PIT Count has improved data quality, collection and reporting efforts. The results of the count taken in January 2014 have already been compiled by THN in collaboration with the DCHC and distributed community wide offering the community a more timely and realistic picture of homelessness. Participation in the BOS CoC has also resulted in Denton being selected as one of three Texas cities to pilot the Coordinated Access Network (CAN) system which will help meet the goal of implementing a coordinated system. DCHC understands that there are still several obstacles to ending chronic homelessness including data collection and sufficient funding for housing first initiatives as well as for the necessary supportive services for the chronically homeless that include economic stability; employment; physical and mental health care services; substance abuse services; and transportation. These items present significant barriers in moving the chronic homeless from experiencing homelessness to maintaining the independence and self - sufficiency necessary to sustain permanent stable housing. According to USICH's Opening Doors, the only lasting solution to homelessness is permanent stable housing. To that end, a combination of researched solutions from experts like USICH, TICH and THN; as well coordination local best practices identified through DCHC efforts, DCHC now affirms that a housing first approach and centralized, community -wide coordinated system of services and programs will move individuals experiencing chronic homelessness more efficiently to sustainable permanent housing. These will be fundamental to ending chronic homelessness. Page 27 HOME PROGRAM - MINORITY OUTREACH PROGRAM To ensure employment and business opportunities for minority businesses the City of Denton will continue to carry out and support the following activities during the program year. 1. The Denton Chamber of Commerce and the Black and Hispanic Chambers of Commerce refer building contractors to the Community Development office to apply to be added to the active contractors bid list. 2. Will request that general contractors on CDBG and HOME- funded capital projects give preference to hiring minority or women subcontractors and employees as well as include this wording in construction contracts. 3. City of Denton's legal advertisement for bids will include the equal employment statement and encourage minority participation 4. City of Denton will continue to attend the Small Business Development Breakfast on a monthly basis. 6. City of Denton will continue to comply with all State bidding requirements for Historically Underutilized Businesses (HUB) 7. City staff will also perform debarment reviews to ensure that no previously debarred contractors are allowed to participate in projects. 8. City will continue to advertise annually in the Denton Record Chronicle and daily in the local cable channel in search for contractors and will encourage participation by minority contractors. HOME PROGRAM - Affirmative Marketing Policy and Implementing Procedures Denton Affordable Housing Corl2oration In accordance with federal regulations, including but not limited to the HOME Investment Partnership Program, and in furtherance of DAHC's commitment to non - discrimination and equal opportunity in housing, they have established the following procedures to affirmatively market their programs. These procedures are intended to further the objectives of Title VII of the Civil Rights Act of 1968 known as the "Fair Housing Act" and as amended in 1988, Executive Order 11063, as well as to satisfy the requirements of Section 2306.257 of the Texas Government Code. The stated policy of the Denton Affordable Housing Corporation is that individuals and families will not be discriminated against in their housing choices or in access to housing services on the basis of race, color, sex, religion, handicap, national origin, or familial status. Furthermore, DAHC is committed to the goals of affirmative marketing which will be implemented in the specific steps outlined as follows: 1. Ensuring that all potential applicants and the general public have access to Federal Fair Housing Laws and Affirmative Marketing Procedures through the following outreach methods: A. Informing the general public and potential applicants through news releases, print ads, PSA's or other means throughout the target area served by DAHC. (All program advertising as well as other advertising such as job postings should contain required fair housing or equal opportunity language when appropriate.) B. Distributing and posting available information in a variety of ways, as outlined in the Affirmative Marketing Plan. These should be posted in advance of application periods and maintained throughout the period. (All publications or other materials should contain required fair housing or equal opportunity language when appropriate.) Page 28 2. Ensure that all persons, including persons covered by the Fair Housing Act and its amendments, have access to information about program services and available units. This includes special outreach to groups that are least likely to apply for assistance. This includes home bound disabled, non - English speaking persons, neighborhood based organizations in minority neighborhoods and /or any other group which not have access to information. When DAHC learns of vacancies, it will make information about them known by: A. Maintaining a list of units at the DAHC business office. This list should be available to the general public during regular business hours. B. Maintain a list of all available units on DAHC's website: dentonaffordablehousing.org C. Display a copy of the Affirmative Marketing Plan in the leasing office and make a copy of the Plan available to the public upon request. D. Bilingual Services: DAHC will attempt to maintain at least one staff person who is bilingual in English and Spanish and have this service available during the regular work day hours. DAHC will prepare program brochures and documents in both English and Spanish, to the extent possible. E. As part of the special outreach effort, the DAHC will work cooperatively with local organizations which serve the needs of persons protected by the Fair Housing Act. Such organizations might include minority churches, housing agencies, non - profits which serve disabled persons or displaced homemakers, eldercare organizations or any other specific organization which provides services in the target area of DAHC. These organizations include: Giving HOPE, Inc. PO Box 50946, Denton, TX 76202 -0946 Contact: Alonso Peterson Phone number: 940/382 -0609 Giving HOPE, Inc. is a non -profit organization administering programs geared to assist homeless families. REACH of Denton 405 S. Elm, Ste. 202, Denton, TX 76201 -6068 Contact: Missy Dickinson Phone Number: 940/383 -1062 REACH, Inc. is a non -profit corporation with the goal of advocating for and empowering people with disabilities to take charge of their life. REACH operates Resource Centers in Fort Worth, Dallas, and Denton. The Centers are non - residential resource agencies which provide services including information and referral, Peer Counseling/ Support Groups, Independent Living Skills, and Advocacy Assistance. Denton County Mental Health /Mental Retardation (MHMR) PO Box 2346, Denton, TX 76202 -2346 Contact: Mary Gotcher Phone number: 940/482 -9294 MHMR provides case management and support services to individuals with mental health and /or developmental disabilities. Health Services of North Texas 4210 Mesa Drive, Denton, TX 76207 Contact: Ron Aldridge Phone number: 940/381 -1501 HSNT is a nonprofit organization that provides housing assistance and other support services to individuals who are HIV positive or have Aids and their families. This organization also serves as an advocacy group for this population. Denton County Friends of the Family 4845 S. I35E, Suite 200, Corinth Texas 76210 Page 29 Contact: Toni Johnson - Simpson Phone: (940) 387 -5131 Friends of the Family provides shelter and emergency services to victims of domestic violence. 3. Recordkeeping - The Denton Affordable Housing Corporation will keep records of the following: A Demographic information of applicants for services. This information is included on HUD, FHLB and TDHCA set -up and close -out forms. B. Copies of advertisements, scripts of PSA's and schedules. (All program advertising as well as other advertising such as job postings should contain required fair housing or equal opportunity language when appropriate). C. Copies of brochures, flyers, and other program materials which reference their programs. (All publications or other materials should contain required fair housing or equal opportunity language when appropriate.) D. Dates, notices, and attendance records from public outreach meetings, if any. E. Copies of MOA's with any organization enlisted to provide outreach services. F. Identification of special outreach population(s) and procedures utilized to inform this (these) group (s). G. Complete TDHCA's online Unit Occupancy / Vacancy Report on a quarterly basis to be made available to the public. 4. Assessment and reporting requirements - The Denton Affordable Housing Corporation will regularly assess its outreach and affirmative marketing efforts and report its results to interested parties, including the City of Denton and TDHCA, at the close of the contract period. This will include: A. A list of outreach methods used, particularly for special needs populations such as persons with disabilities. B. An assessment of success or failure of these methods. This can be made by comparing the demographic data of clients served and those who applied with the demographics of the target area. C. Corrective action to improve affirmative marketing if unsuccessful. This might include additional steps to further market the program to those groups which have not been served, particularly persons with disabilities. Annual Plan to Outreach to Historically Underutilized Businesses (HUBs) In addition to the steps outlined above, on an annual basis, DAHC will prepare and implement a plan to outreach to and network with, local minority businesses and HUBs. The Plan will respond to the findings of the assessment of efforts and success described in paragraph 4. The outreach methods may include: • DAHC will join the African American Chamber of Commerce in Denton • DAHC will join the Hispanic Chamber of Commerce in Denton • DAHC will attend neighborhood meetings to describe participation opportunities • Notices soliciting contractors will be placed in the following locations: Martin Luther King Center, bulletin boards of grocery stores, Restaurants catering to minorities, and churches with large minority populations • Whenever speaking at a public forum, DAHC representatives will mention that we are always looking for HUB participation and encourage individuals to apply. • Participate in local and civic activities, such as the Cinco de Mayo celebration, distributing information about programs and encourage HUBs to apply. Page 30 PUBLIC HEARING NOTES Public Hearing Notes December 2, 2013, Denia Recreation Center Barbara Ross reviewed the status of the current projects and reviewed the eligible activities under both the HOME and CDBG programs. Approximately 10 residents attended. The following were comments made at the public hearing: Continuation of housing programs; Owners of rental properties need to be required to maintain properties to local codes Speed humps down Ruddell north of McKinney. Public Hearing Notes December 12, 2013, MLK Jr. Recreation Center Barbara Ross reviewed the status of the current projects and reviewed the eligible activities under both the HOME and CDBG programs. Approximately 7 residents attended. Three were CDAC /HSAC members. Three neighborhood residents stated the following needs: • Traffic light at Morse and Woodrow • Accessible sidewalks at Oak and Crawford, accessible entrance for St. James AME • Health clinics • Drainage improvements - Install concrete in drainage channel between Fred Moore Park and Ruddell Street. Action Plan Public Hearing Minutes April 15, 2014 City Council Meeting This section will include the public hearing minutes for the public hearing scheduled for April 15, 2014 at the City Council. 30 -DAY COMMENT PERIOD April 7, 2014 through May 6, 2014 This section will include the comments received during the 30 -day comment period. Page 31 APPENDIX #1 CDBG #2 HOME SF424 Applications Page 32 Complete the fillable fields (blue cells ) in the table below. The other items are pre -filled with values from the Grantee Information Worksheet. Date Submitted Applicant Identifier 756000514 Type of Submission Date Received by state State Identifier pplication re- application Date Received by HUD Federal Identifier ❑ Construction ❑ Construction ❑ Non Construction ❑ Non Construction licantlufb=2 oa jurisdiction CITY OF DENTON UOG Code Street Address Line 1 601 E. HICKORY, SUITE B Organizational DUNS 07- 138 -0190 Street Address Line 2 Organizational Unit Citv DENTON State TEXAS Department PLANNING & DEVELOPMENT ZIP 76201 Country U.S.A. Division COMMUNITY DEVELOPMENT Employer Identification Number (EIN): County DENTON 75- 6000514 Pro ram Year Start Date MM /DD 08/01/14 pplicant Type: Specify Other Type if necessary: Local Government: Township S ecifv Other Type P— g-= Fzwdiag U.S. Department of Housing and Urban Development Catalogue of Federal Domestic Assistance Numbers; Descriptive Title of Applicant Project(s); Areas Affected by Project(s) (cities, Counties, localities etc.; Community Development Block Grant 14.218 Entitlement Grant CDBG Project Titles: Housing rehabilitation, minor repair, public facility improvements, provision of public services, homeownership assistance, and program administration. Description of Areas Affected by CDBG Project(s) Denton, Texas CDBG Grant Amount 5848,794 dditional HUD Gram(s) Leveraged escribe ID SAdditional Federal Funds Leveraged SAdditional State Funds Leveraged SLocally Leveraged Funds SGrantee Funds Leveraged SAnticipated Program Income S10,000 Other (Describe) Total Funds Leveraged for CDBG -based Project(s) Page 33 Home Investment Partnerships Program 14.239 HOXIE OME Project Titles: housing rehabilitation, assistance to CHDO for acquisition, rehab and homeownership assistance, tenant based rental assistance and program administration Description of Areas Affected by HOME Project(s) Denton, Texas ,SHOME Grant Amount $371,095 $Additional HUD Grant(s) Leveraged escribe $Additional Federal Funds Leveraged $Additional State Funds Leveraged SLocally Leveraged Funds SGrantee Funds Leveraged SAnticipated Program Income 565,000 Other (Describe) Total Funds Leveraged for HOME -based Project(s) Housing Opportunities for People with AIDS 14.241 HOPWA OPWYA Project Titles ID escription of Areas Affected by HOP \YA Project(s) ,SHOPWYA Grant Amount SAdditional HUD Grant(s) Leveraged ID escribe SAdditional Federal Funds Leveraged SAdditional State Funds Leveraged SLocally Leveraged Funds SGrantee Funds Leveraged SAnticipated Program Income Other (Describe) Total Funds Leveraged for HOPWYA -based Project(s) Emergency Shelter Grants Program 14.231 ESG SG Project Titles IDescription of Areas Affected by ESG Project(s) ,SESG Grant Amount SAdditional HUD Grant(s) Leveraged Describe $Additional Federal Funds Leveraged $Additional State Funds Leveraged SLocally Leveraged Funds SGrantee Funds Leveraged SAnticipated Program Income Other (Describe) Total Funds Leveraged for ESG -based Project(s) Congressional Districts of: Is application subject to review by state Executive Order 12372 Process? Applicant Districts 26 Project Districts 26 Is the applicant delinquent on any federal debt' , If "Yes" please include an additional document explaining the situation. ❑ Yes This application was made available to the state EO 12372 process for review on DATE ❑ No Program is not covered by EO 12372 ❑ Yes ® No ® N/A Program has not been selected by the state for review Person to be contacted regarding this application First Name Barbara NEd die Initial L. Last Name Ross Title CD Administrator Phone (940) 349 -7235 Fax (940) 349 -7753 Mail bross(Wcitcofdenton.com Grantee AYebsite — -,a-v,- v.citcofdenton.com Other Contact Signature of Authorized Representative — George C. Campbell, City Manager Date Signed Page 34 APPENDIX #3 CDBG and HOME Certifications Page 35 LOCAL GOVERNMENT CERTIFICATIONS FOR CDBG AND HOME PROGRAMS In accordance with the applicable statutes and the regulations governing the consolidated plan regulations, the jurisdiction certifies that: Affirmatively Further Fair Housing -- The jurisdiction will affirmatively further fair housing, which means it will conduct an analysis of impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting that analysis and actions in this regard. Anti- displacement and Relocation Plan -- It will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and implementing regulations at 49 CFR 24; and it has in effect and is following a residential antidisplacement and relocation assistance plan required under section 104(d) of the Housing and Community Development Act of 1974, as amended, in connection with any activity assisted with funding under the CDBG or HOME programs. Drug Free Workplace -- It will or will continue to provide a drug -free workplace by: 1. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition; 2. Establishing an ongoing drug -free awareness program to inform employees about — a. The dangers of drug abuse in the workplace; b. The grantee's policy of maintaining a drug -free workplace; c. Any available drug counseling, rehabilitation, and employee assistance programs; and d. The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; 3. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph 1; 4. Notifying the employee in the statement required by paragraph 1 that, as a condition of employment under the grant, the employee will — a. Abide by the terms of the statement; and b. Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; 5. Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant; 6. Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph 4(b), with respect to any employee who is so convicted — a. Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or b. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; 7. Making a good faith effort to continue to maintain a drug -free workplace through implementation of paragraphs 1, 2, 3, 4, 5 and 6. Page 36 Anti- Lobbying -- To the best of the jurisdiction's knowledge and belief: No Federal appropriated funds have been paid or will be paid, by or on behalf of it, 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 the awarding of any Federal contract, 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; 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 this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and It will require that the language of paragraph 1 and 2 of this anti- lobbying certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. Authority of Jurisdiction -- The consolidated plan is authorized under State and local law (as applicable) and the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations. Consistency with plan -- The housing activities to be undertaken with CDBG, HOME, ESG, and HOPWA funds are consistent with the strategic plan. Section 3 -- It will comply with section 3 of the Housing and Urban Development Act of 1968, and implementing regulations at 24 CFR Part 135. Signature /Authorized Official George C. Campbell Name City Manager Title 215 E. McKinnev Street Address Denton Texas 76201 City /State /Zip 940 349 -8307 Telephone Number Page 37 Date Specific CDBG Certifications The Entitlement Community certifies that Citizen Participation -- It is in full compliance and following a detailed citizen participation plan that satisfies the requirements of 24 CFR 91.105. Community Development Plan -- Its consolidated housing and community development plan identifies community development and housing needs and specifies both short -term and long -term community development objectives that provide decent housing, expand economic opportunities primarily for persons of low and moderate income. (See CFR 24 570.2 and CFR 24 part 570) Following a Plan -- It is following a current consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD. Use of Funds -- It has complied with the following criteria. Maximum Feasible Priority - With respect to activities expected to be assisted with CDBG funds, it certifies that it has developed its Action Plan so as to give maximum feasible priority to activities which benefit low and moderate income families or aid in the prevention or elimination of slums or blight. The Action Plan may also include activities which the grantee certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community, and other financial resources are not available); Overall Benefit - The aggregate use of CDBG funds including section 108 guaranteed loans during program year(s) 2014, (a period specified by the grantee consisting of one, two, or three specific consecutive program years), shall principally benefit persons of low and moderate income in a manner that ensures that at least 70 percent of the amount is expended for activities that benefit such persons during the designated period; Special Assessments - It will not attempt to recover any capital costs of public improvements assisted with CDBG funds including Section 108 loan guaranteed funds by assessing any amount against properties owned and occupied by persons of low and moderate income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if CDBG funds are used to pay the proportion of a fee or assessment that relates to the capital costs of public improvements (assisted in part with CDBG funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108, unless CDBG funds are used to pay the proportion of fee or assessment attributable to the capital costs of public improvements financed from other revenue sources. In this case, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. Also, in the case of properties owned and occupied by moderate - income (not low - income) families, an assessment or charge may be made against the property for public improvements financed by a source other than CDBG funds if the jurisdiction certifies that it lacks CDBG funds to cover the assessment. Page 38 Excessive Force -- It has adopted and is enforcing: A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non - violent civil rights demonstrations; and A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non - violent civil rights demonstrations within its jurisdiction; Compliance With Anti- discrimination laws -- The grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (42 USC 2000d), the Fair Housing Act (42 USC 3601 - 3619), and implementing regulations. Lead -Based Paint -- Its activities concerning lead -based paint will comply with the requirements of part 35, subparts A, B, J, K and R, of title 24; Compliance with Laws -- It will comply with applicable laws. Signature /Authorized Official George C. Campbell Name City Manager Title 215 E. McKinney Street Address Denton Texas 76201 City /State /Zip 940 349 -8307 Telephone Number Page 39 Date Specific HOME Certifications The HOME participating jurisdiction certifies that: Tenant Based Rental Assistance -- If the participating jurisdiction intends to provide tenant -based rental assistance: The use of HOME funds for tenant -based rental assistance is an essential element of the participating jurisdiction's consolidated plan for expanding the supply, affordability, and availability of decent, safe, sanitary, and affordable housing. Eligible Activities and Costs -- it is using and will use HOME funds for eligible activities and costs, as described in 24 CFR § 92.205 through 92.209 and that it is not using and will not use HOME funds for prohibited activities, as described in § 92.214. Appropriate Financial Assistance -- before committing any funds to a project, it will evaluate the project in accordance with the guidelines that it adopts for this purpose and will not invest any more HOME funds in combination with other Federal assistance than is necessary to provide affordable housing; Signature /Authorized Official George C. Campbell Name City Manager Title 215 E. McKinnev Street Address Denton Texas 76201 City /State /Zip 940 349 -8307 Telephone Number Page 40 Date APPENDIX TO CERTIFICATIONS Instructions Concerning Lobbying and Drug -Free Workplace Requirements Lobbying Certification This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. 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. Drug -Free Workplace Certification By signing and /or submitting this application or grant agreement, the grantee is providing the certification. The certification is a material representation of fact upon which reliance is placed when the agency awards the grant. If it is later determined that the grantee knowingly rendered a false certification, or otherwise violates the requirements of the Drug -Free Workplace Act, HUD, in addition to any other remedies available to the Federal Government, may take action authorized under the Drug -Free Workplace Act. Workplaces under grants, for grantees other than individuals, need not be identified on the certification. If known, they may be identified in the grant application. If the grantee does not identify the workplaces at the time of application, or upon award, if there is no application, the grantee must keep the identity of the workplace(s) on file in its office and make the information available for Federal inspection. Failure to identify all known workplaces constitutes a violation of the grantee's drug -free workplace requirements. Workplace identifications must include the actual address of buildings (or parts of buildings) or other sites where work under the grant takes place. Categorical descriptions may be used (e.g., all vehicles of a mass transit authority or State highway department while in operation, State employees in each local unemployment office, performers in concert halls or radio stations). If the workplace identified to the agency changes during the performance of the grant, the grantee shall inform the agency of the change(s), if it previously identified the workplaces in question (see paragraph three). 8. The grantee may insert in the space provided below the site(s) for the performance of work done in connection with the specific grant: Place of Performance (Street address, city, county, state, zip code) Check if there are workplaces on file that are not identified here. The certification with regard to the drug -free workplace is required by 24 CFR part 21. Place Name Street City County State Zip Community Development Department 601 E. Hickory, Suite B Denton Denton TX 76205 Page 41 Definitions of terms in the Nonprocurement Suspension and Debarment common rule and Drug -Free Workplace common rule apply to this certification. Grantees' attention is called, in particular, to the following definitions from these rules: "Controlled substance" means a controlled substance in Schedules I through V of the Controlled Substances Act (21 U.S.C. 812) and as further defined by regulation (21 CFR 1308.11 through 1308.15); "Conviction" means a finding of guilt (including a plea of nolo contendere) or imposition of sentence, or both, by any judicial body charged with the responsibility to determine violations of the Federal or State criminal drug statutes; "Criminal drug statute" means a Federal or non - Federal criminal statute involving the manufacture, distribution, dispensing, use, or possession of any controlled substance; "Employee" means the employee of a grantee directly engaged in the performance of work under a grant, including: a. All "direct charge" employees; b. all "indirect charge" employees unless their impact or involvement is insignificant to the performance of the grant; and c. temporary personnel and consultants who are directly engaged in the performance of work under the grant and who are on the grantee's payroll. This definition does not include workers not on the payroll of the grantee (e.g., volunteers, even if used to meet a matching requirement; consultants or independent contractors not on the grantee's payroll; or employees of subrecipients or subcontractors in covered workplaces). Note that by signing these certifications, certain documents must be completed, in use, and on file for verification. These documents include: 1. Analysis of Impediments to Fair Housing 2. Citizen Participation Plan 3. Anti - displacement and Relocation Plan Signature /Authorized Official George C. Campbell Name City Manager Title 215 E. McKinnev Street Address Denton, Texas 76201 City /State /Zip (349) 349 -8307 Telephone Number Page 42 Date APPENDIX #4 Annual Housing Goals Page 43 Annual Housing Completion Goals (Table 313) Grantee Name: Program Year: Expected Annual Number of Units To Be Completed Actual Annual Number of Units Completed Resources used during the period CDBG HOME ESG HOPWA BENEFICIAR YGOALS Sec. 215 Onl Homeless households ❑ ❑ ❑ ❑ Non - homeless households 50 ® ® ❑ ❑ Special needs households ❑ ❑ ❑ ❑ Total Sec. 215 Beneficiaries* 50 ® ® ❑ ❑ RENI"AL GOALS ,Sec. 215 On Acquisition of existing units ❑ ❑ ❑ Production of new units ❑ ❑ ❑ Rehabilitation of existing units ❑ ❑ ❑ ❑ Rental Assistance ❑ ❑ ❑ Total Sec. 215 Affordable Rental ❑ ❑ ❑ ❑ HOME OWIVER GOALS ,Sec. 215 On Acquisition of existing units ❑ ❑ Production of new units ❑ ❑ Rehabilitation of existing units 47 Homebuver Assistance 3 ❑ ® ❑ Total Sec. 215 Affordable Owner 50 ® ® ❑ ❑ COMBINED RENTAL AND 01PVER GOALS Sec. 215 On Acquisition of existing units ❑ ❑ ❑ Production of new units ❑ ❑ ❑ Rehabilitation of existing units 47 ® ® ❑ ❑ Rental Assistance ❑ ® ❑ Homebuver Assistance 3 ❑ ® ❑ Combined Total Sec. 215 Goals* 50 ® ® ❑ ❑ OVERALL HOUSING GOALS Sec. 215 + Other Affordable Housing) Annual Rental Housing Goal ❑ ❑ ❑ ❑ Annual Owner Housing Goal 50 ® ® ❑ ❑ Total Overall Housing Goal 50 ® ® ❑ ❑ Page 44 APPENDIX F2 NEW Community Development Advisory Committee Minutes Ryl Human Services Advisory Committee Minutes Page 45 Community Development Advisory Committee December 5, 2013 Final Minutes Members Present: Gerard Hudspeth, Valda Morgan, Jodi Vicars - Nance, Scott Rozell, John Siegmund, Amy Simon, Larry Varnes and Ira Weinstein Staff Present: Barbara Ross Barbara Ross, CD Administrator called the meeting to order. The Community Development Advisory Committee (CDAC) members introduced themselves. Ms. Ross gave a brief report on the status of projects and programs that have been funded in previous grant years. She noted that both the Crescent Street Sidewalk and Fred Moore Day Nursery expansion projects should both begin construction within the next few weeks. Fairoaks's installation of an updated fire sprinkler system was in progress. She also noted that there is currently a significant amount of funding available for the Home Improvement, Homebuyer Assistance and Minor Repair programs. However, the 2014 -15 program year won't begin until August 2nd and most of the available housing programs funding will be expended or committed to projects by then. Scott Rozell nominated Larry Varnes as CDAC Chair. Ira Weinstein seconded the nomination. Mr. Varnes was elected as Chair by a unanimous vote. Mr. Varnes opened the nominations for Vice Chair. Gerard Hudspeth nominated Scott Rozell as Vice Chair. John Siegmund seconded the motion. Chairman Varnes called for a vote for Mr. Rozell as Vice Chair. Mr. Rozell was unanimously elected CDAC Vice Chair. Members discussed the application and reviewing process. Chairman Varnes noted that the applications have been very similar for the last two years. He noted that it was open for revisions. Mr. Siegmund commented that he felt the application was lengthy and some items could be taken out. Ms. Ross reviewed the application introduction and instructions. Mr. Varnes stated that he had no problem with the timeline as stated but asked if all the information was necessary. Ms. Ross stated that some of the information is used by staff to determine if the project or program would be eligible for CDBG or HOME funding. She noted the service area, the national objective that the project would meet, etc. assisted in that evaluation. Mr. Hudspeth suggested including a question regarding how the organization found out about the funding and if there is any relationship between the organization and members of the CDAC. Mr. Varnes suggested that the term "pertinent relationship" should be used when asking that question. Ms. Ross asked if it should include any relationship with CDAC and City Council. Ms. Ross reminded members that if they are on the board of an organization that is requesting funds, they cannot participate in the discussion or vote regarding that organization's request. Members continue to discuss how to state a question regarding a potential relationship with a CDAC member. Members discussed the possible new question regarding how the applicant organization found out about the process. Mr. Hudspeth stated he was interested in knowing how organizations find out about the City's funding. He mentioned the organization that requested funds in order to be able to include this information on the application for funding they submitted to the State. Members agreed that these groups wouldn't be excluded from applying but, that the CDAC would be aware of the reason for the submission. Mr. Rozell suggested that it could be included in the section that asks for a list of sources for additional funding. Mr. Varnes stated that maybe it needs to be a more explicit explanation of where they plan to obtain additional funding. Ms. Ross read through the current "Budget" question regarding other sources of funding. Mr. Varnes stated that "including State and local monies" should be added. Mr. Siegmund asked what problems the request mentioned by Mr. Hudspeth had actually caused the committee. Mr. Hudspeth said it didn't cause a problem. Mr. Varnes added that it was a priority issue. Mr. Varnes asked about the personnel budget information and whether the committee needed the information on every employee. Mr. Siegmund stated that he felt the salaries of the senior, high level, people were important but possibly not all employees. Ms. Ross reminded members that the organizations are giving the salary "range" for their employees, not their current salary amounts. Mr. Weinstein pointed out that last year it appeared one staff member was receiving quite a substantial salary amount. Members agreed to leave the request for that information in the application. Mr. Varnes asked the members if they had any additional application revisions. No additional revisions were discussed. Ms. Ross reminded members that citizen comments would be taken and passed along to the CDAC and City Council until the Action Plan, including the proposed projects and programs, is approved. Mr. Varnes reminded member of the upcoming public hearing on December 12t ". Ms. Ross indicated that there were approximately ten residents at the meeting that was held Monday night at the Denia Recreation Center. This meeting was held immediately after the Denia neighborhood meeting. She noted that staff was not able to "piggy back" on the SouthEast Denton Neighborhood Association (SEDNA) meeting. Members discussed whether it was beneficial to have committee members attend the public hearings. Ms. Ross said she thought it was helpful but, not required. Members discussed future meeting dates and times. Mr. Varnes suggested that the committee have a brief meeting to review the applications and set up the meetings based on the number and type of applicants. It was agreed that the CDAC would meet on Thursday, February 6t" to review applications and then determine their future meeting dates. Ms. Ross commented that the five -year Consolidated Plan for Housing & Community Development is on the City's website. She added that she will send the link to the members so that they could review the document prior to developing their funding recommendations. Mr. Varnes asked how soon the City would receive notification of their funding amounts. Ms. Ross explained that Congress may go forward with a "continuing resolution" which would probably provide approximately the same amount of funding as in 2013 -14. However, at this time, no grant allocation amounts have been determined. Mr. Rozell asked about application workshops. Ms. Ross indicated that staff will have two workshops in early January. She asked the members if the training could be mandatory except for those that attended last year. CDAC members agreed that this was appropriate. The meeting was adjourned. Community Development Advisory Committee February 12, 2014 Final Minutes Members Present: Mary Beth Cottingham, Gerard Hudspeth, Valda Morgan, Scott Rozell, John Siegmund, Amy Simon, Larry Varnes, Jodi Vicars -Nance and Ira Weinstein Staff Present: Barbara Ross Larry Varnes, Chair, called the meeting to order at noon. He apologized for the short notice regarding the cancellation of last week's meeting due to the unstable weather conditions. He thanked the CDAC members for their flexibility. Chairman Varnes asked the members if they had any revisions to the December 5t" minutes. No revisions were requested. Valda Morgan made a motion to accept the minutes as written. Scott Rozell seconded the motion. The motion accepting the minutes was approved. Chairman Varnes asked members to discuss the funding applications that were submitted. He noted that there were seven applications. He reviewed the funding chart and asked Ms. Ross to explain what may occur in regard to the Federal Community Development Block Grant and HOME funding. Ms. Ross explained that currently staff is using last year's allocation amounts. However, funding could decrease anywhere from 1.5% to 5% from last year's levels. She stated that officials from the US Department of Housing & Urban Development have stated that the final allocations amounts would be out by the end of March. Chairman Varnes noted that the requests were approximately $600,000 more than the funding that would likely be available. The applications were discussed. It was noted that there was a third request from Fred Moore Day Nursery School for funding. Members requested that Ms. Ross ask for information regarding what improvements were completed with 2012 and 2013 funding. Members suggested that they be able to compare the work that is currently under contract to the work that previous applications indicated would be completed. Chairman Varnes commented that the Home Improvement Program is requesting the highest level of funding but added that the program has a significant impact on Denton's low and moderate - income neighborhoods. It was noted that the Mack Park playground improvements weren't funded last year. It was suggested that Mack Park be included in the project tour. Ms. Ross asked the members to let her know what they would like to see on the tour. Members discussed the small number of applicants and whether members needed paper copies or could use the electronic copies of the applications. Members continued to discuss the FMDNS request. Mr. Rozell commented that he was talking with a member of the FMDNS board and that they indicated the construction costs had exceeded the CDBG funding allocation and the donations had also fallen short. He asked if the daycare had spent their 2012 funding. Ms. Ross indicated that to this point, they have expended funds only on architectural fees. No construction funds have been spent. She explained the delays they have experienced due to some tree and drainage inspections that are required. Members reviewed the application section that states the previous year funding that has been allocated to various projects from the requesting organizations. Mr. Rozell asked when the funds expire. Ms. Ross indicated that funding does not expire unless the City is behind on its HUD "timeliness test" which requires that an entitlement have no more than 1.5 times its current allocation in its Treasury letter of credit sixty days before the end of the program year. She said Denton was doing OK on spending the grant funds and all funding should continue to be available. Chairman Varnes indicated that the CDAC may want to discuss setting priorities due to the possibility of losing funding. Members can determine their priorities while allocating the estimated amount of funding and adjust, if necessary, based on the priorities. Members agreed that they did not want presentation provided by the applicants to be a "re- play" of the information in their application but would like additional information such as: • Other sources of funding that they've explored. • Explanation of why the organization did not get funding. • How did they determine what funding amount to request? • How do they manage budget for greatest effectiveness & efficiency? • What are their controls on expenditures? Ms. Ross reminded members that facilities have to be owned or, the organization must have a long -term lease of at least 15 years before CDBG funds can be spent to renovate a non - profit facility. She stated that FMDNS owns the daycare however, she explained that if they ceased to provide daycare services, the property would revert back to DentonlSD. She added that this would probably never occur but, that the CDAC and City Council need to be aware of the reversion clause. Ms. Ross stated that DentonlSD has provided a letter of support indicating that they would work with the City on the continued use of the facility to serve low and moderate - income families. Serve Denton will rent the space for their new facility from Denton Bible Church. Mr. Rozell indicated that Serve Denton has a 99 -year lease on the facility. Ms. Ross indicated that she would ask for a copy of the lease and provide it to the CDAC members. Mary Beth Cottingham asked if the committee members could see some of the facilities for which funds are being requested. Members agreed that would be helpful. Members continued to discuss the project tour. It was set up for Thursday, February 27th at 2:00 pm. Members also set up two meetings for the applicant presentations and a final meeting to discuss their recommendations to City Council. Amy Simon asked if there were any standard questions that were usually asked by committee members. Chairman Varnes pointed out that the services are different so, usually the questions are related to those services. Ms. Cottingham indicated that the presentations will also generate some questions. Gerard Hudspeth also noted that individual experiences often entail certain questions. Ms. Ross asked if any of the members had a conflict of interest with an applicant. It was determined that no conflicts exist. Mr. Rozell made a motion to adjourn. The meeting was adjourned. Community Development Advisory Committee February 19, 2014 Final Minutes Members Present: Mary Beth Cottingham, Gerard Hudspeth, Valda Morgan, Scott Rozell, John Siegmund, Amy Simon, Larry Varnes, Jodi Vicars -Nance and Ira Weinstein Staff Present: Barbara Ross A quorum was present. CDAC Chair Larry Varnes called the meeting to order at 11:56. He asked if there were any changes in the minutes from February 12t ". Valda Morgan noted that the date needed to be corrected. Scott Rozell moved that the minutes be accepted with the correction. Amy Simon seconded the motion. The minutes were approved with the correction. Chairperson Varnes asked if there were any questions from the members regarding the applications and available funding. There were no questions. Barbara Ross introduced Sheila Harper, Executive Director of the Denton Affordable Housing Corporation (DAHC). Ms. Harper stated that DAHC has sold 83 homes in the City of Denton over the past 18 years. She also stated that they own and manage 76 rental units and that 232 homes in Denton County were purchased, renovated and sold to eligible households. Ms. Harper described the use of the City's HOME funds in the organizations' Affordable Housing Opportunity Program (AHOP). She added that they ensure that the housing unit and the appliances have at least a five -year life. Ms. Harper noted that DAHC has put four million dollars into the local economy and that this does not include the funds used to purchase the housing units. Mr. Varnes asked if the homes become rental units if they do not sell. Ms. Harper indicated that this has not occurred. She added that many of their rental units serve individuals with special needs. The rent for DAHC units is less than $700 per month. Currently, administrative costs are 17% of the budget and this is below the industry standard of 25 %. Ms. Harper commented that this is why they are requesting funds for operating expenses. Additional questions were asked by CDAC members. Ms. Morgan asked is the properties were in specific areas of the city. Ms. Harper stated that both the rental and the homebuyer properties were scattered throughout the community in various neighborhoods. Jodi Vicars -Nance asked about the income levels that were served. Ms. Harper indicated that the income limit was approximately $35,000. Mr. Varnes and Mr. Rozell asked about the use of the AHOP income from the program. Ms. Harper stated that most went back into the program and a small amount was used for administration. She noted that the "profit" margin was only about 10% or less and that they lose money on some units. Ira Weinstein asked if the homebuyers received other types of assistance. Ms. Harper indicated that the homebuyers do not but, sometimes the families renting apartments receive food stamps and /or rental assistance. Ms. Harper stated that it was DAHC's goal to complete three units in Denton over the coming year. Mary Beth Cottingham asked if the homebuyers stayed in the units a long time. Ms. Harper stated that the buyers do usually stay in the properties for several years. Mr. Rozell asked about foreclosures on the units. Ms. Harper commented that foreclosures have recently tapered off. Ms. Cottingham asked if DAHC worked with Habitat. Ms. Harper described the different levels of homebuyers that are assisted by Habitat and DAHC. Ms. Ross commented that DAHC does work with Denton County MHMR to provide housing for special needs populations. Mr. Varnes asked if their staff reduction has caused any problems. Ms. Harper indicated that it has not been a problem. Members asked about the 2012 and 2013 DAHC funding that has not yet been spent. Ms. Harper described their plan for expenditure of those funds. Alma Espino, Housing Program Manager, Community Development, City of Denton, presented the request for funding to support the City's Home Improvement Program (HIP). Mr. Weinstein asked about the number of projects that they planned to complete. Ms. Espino stated that they were requesting funds for ten projects, three reconstructions and seven rehabilitations depending on the cost. To answer the CDAC's questions that were provided to her, Ms. Espino stated that this year the division has participated in the State's Amy Young Barrier Removal program where the State will provide up to $20,000 to assist in making accessible improvements to units that house persons with disabilities. City housing staff has also applied to the Denton County Housing Finance Corporation for funding to support the HIP program. Staff has also requested funds from the "Lead Safe for Kids Sake" program but, only four cities received funding from that program. It was noted by Ms. Espino that construction costs are increasing such that staff has to focus on the improvements that are the most effective at making the unit safe and livable. Painting and carpeting are also included in the projects. Ms. Espino explained that all projects must be bid out. A cost estimate is prepared by staff. The owner may choose their contractor but, the bid cannot be more or less than 10% of the cost estimate. Change orders must be approved by the owner, contractor and City housing staff. Mr. Varnes asked about the retention levels for housing owners. Ms. Espino stated that it is very good with almost all households continuing to live in the units. Sometimes, generally when an elderly household has been assisted, the unit will be passed on to the heirs. If this is the case, and depending on their income, the heir to the property may either pay the balance on the loan back to the City or, if they are income eligible, they can live in the unit and complete the payments and forgivable portion based on their income level. Ms. Ross pointed out that there had been five or less foreclosures since the beginning of the program. Ms. Espino stated that many homeowners would not be able to maintain their housing unit without HIP assistance. Mr. Rozell asked about the lending entity, how the loans are managed and how the income from the loans is used. Ms. Espino explained that depending on income, part of the funding provided is a payable loan and the other part is a forgivable loan. The housing staff manages the loans, checks to see that the household assisted is still living in the unit, that the unit is being maintained properly and that the taxes are being paid. She stated that the program income is used for future projects and is included in what the CDAC has to allocate for the coming program year. Mr. Weinstein asked about the interest rate. Ms. Espino indicated that the payable loan has a 2% interest rate and the deferred loan has a 0% rate. Mr. Weinstein also asked how homeowners find out about the program. Ms. Espino described the methods staff uses to market the program i.e. advertisements in the newspaper, CD newsletter that goes out to various individuals, organizations and neighborhood groups and recently staff has put an advertisement on the CD vehicle and has gotten some phone call from that. CDAC members had some closing questions. Gerard Hudspeth asked if, under the HIP, dollars are earmarked for certain things. Ms. Espino explained that all the funds are in a single account and, for example, no funding is set aside specifically for foundations. It is used as needed on each housing unit. Ms. Morgan asked if staff pays the contractor and Ms. Espino stated that after homeowner and staff approval, Community Development pays the contractor. Mr. Varnes pointed out that Ms. Espino may have to prioritize projects if sufficient funding for all ten units was not available. Ms. Espino indicated that they would attempt to complete any projects started in the previous year and move to the waiting list for new projects. Gordon Meredith, Residential Construction Specialist, Community Development, City of Denton gave the presentation for the City's Minor Repair Program (MRP). He described the program as assisting low income homeowners with one or two urgently needed repairs. Housing staff came up with the $90,720 figure by looking at the average expenditures for the past four years and noting the amount of funding that may remain in the MRP account at the end of the program year. He stated that this year, more households have asked for assistance on their heating units due to the low temperatures. Mr. Meredith added that the staff usually divides the funding up into quarterly allocations. This is due to the fact that in June and July, the end of the CDBG program year, there are usually many requests for assistance with air conditioning units. Staff does not want to be out of funding to serve households with this urgent need. Mr. Meredith stated that there is a $5,000 cap on any minor repair. This program serves households at 65% of the area median income and below. This is a lower threshold than HIP. The CD Administrative Assistance obtains the required income information and two additional staff members review and approve the applicant's status. Mr. Varnes asked about the number of households that would be assisted. Mr. Meredith indicated that it would be between 30 and 40 households depending on the level of work to be completed. It was noted that contractors bid on each project and if the project cost is going to be more than $3,000 then at least two "Historically Underutilized Businesses" must be asked to submit a bid. John Siegmund asked if staff looks at repairing first and replacement only if necessary. Mr. Meredith explained that most appliances are old and need to be replaced. About 2/3 rd of them are replaced rather than repaired. Mr. Siegmund pointed out that in many instances, it's cheaper to replace than repair. The 65% median area income cap for program eligibility was mentioned. Ms. Simon asked if there was any cost to the homeowner. Mr. Meredith stated that there was no charge to the homeowner and no lien was placed on the property. Mr. Varnes asked if most people stay in the homes. Mr. Meredith responded that they do stay in the homes and this is true even for the mobile homes. Members discussed the efficient use of the funding that will be available. Mr. Hudspeth noted that DAHC units are inspected prior to their purchase. City staff works with homeowners and their existing housing. Ms. Ross mentioned how the HIP has increased property values and tax revenues. Often other owners will do improvements after seeing the improved properties in their neighborhoods. Mr. Varnes mentioned the next meeting on February 261" and the project tour on the 27t ". Ms. Ross said she would email members about the tour and where they will meet. Mr. Rozell made the motion to adjourn. The meeting was adjourned. Community Development Advisory Committee March 26, 2014 Draft Minutes Members Present: Mary Beth Cottingham, Gerard Hudspeth, Valda Morgan, Scott Rozell, John Siegmund, Amy Simon, Larry Varnes, Jodi Vicars -Nance and Ira Weinstein Staff Present: Barbara Ross A quorum was present. CDAC Chair Larry Varnes called the meeting to order at 5:27 pm. Mr. Varnes asked if there were any corrections to the minutes. Hearing none he asked for a motion to approve the minutes. John Siegmund moved that they be approved as written. Valda Morgan seconded the motion. The minutes were unanimously approved. Mr. Varnes asked Ms. Ross to review the available funding for allocation to projects. Ms. Ross explained that Luisa Rodriguez- Garcia who handles the Community Development (CD) budgets had already deducted the administration and human services caps from the available funding. She added that some project - related personnel costs come out of programs such as the Home Improvement and Minor Repair. Ms. Ross stated that the CD Division was requesting some additional general funds to support staff costs for these programs. This would allow staff to seek other funding sources and provide additional funding to assist residents with their housing issues. Mr. Varnes reviewed the amounts available and members discussed which programs could be funded through the HOME program. Mr. Siegmund suggested that the committee start with any project that they would like to fully fund. Mr. Varnes asked if members wanted to fund the full $100,000 for the Denton Affordable Housing Corporation (DAHC) and the City's housing programs that ranked high. Gerard Hudspeth asked about the HOME funding and the monies that have been pulled from the allocation. Ms. Ross stated that 15% of the City's HOME allocation must be provided to a "community housing development organization" for housing activities and that is about $55,000 for the 2014 budget. Mr. Siegmund suggested that DAHC should receive the entire $100,000. Members agreed to put that down as a "working number." Members agreed to put the remaining HOME funds into the Home Improvement Program (HIP) budget. Mr. Varnes said they may also want to include some Community Development Block Grant (CDBG) funds in the HIP budget. Mr. Varnes reviewed the Committee's project scores. Members agreed to include full funding for the Minor Repair Program (MRP) in the preliminary budget. The request from Denton City County Day School ( DCCDS) was discussed. Mary Beth Cottingham noted that the facility was out of code for their grease trap and, at a minimum, they need to replace that to bring the facility up to code. Previously, they brought in food to serve but, it has become too expensive. Mr. Varnes indicated that the number of children they serve per dollar is impressive. Amy Simon stated that the detailed budget DCCDS sent out is less than their original request. Ms. Ross pointed out that due Page 1 to the detailed budget, the CDAC could fund some items but did not have to fund all. Scott Rozell commented that he supported giving DCCDS funding for the grease trap and some other items. He added that DCCDS could get a portion of the project completed, build a relationship with a contractor and then ask the contractor to assist in a cost estimate for additional work on the facility. Mr. Siegmund stated that the daycare is very well -run and he thought that they wouldn't need to make additional requests. However, he added that his notes indicate a recommendation for full funding. Mr. Hudspeth commented about the contractor "profit and overhead" in the detailed budget. Members continued to discuss the agency's needs and the requested funding. Mr. Varnes stated that the budget seems fairly specific. Mr. Siegmund stated he wasn't sure what else DCCDS could want to do to the facility. Ms. Ross pointed out that DCCDS did not request funds last year. She also noted that sometimes the organization that is funded doesn't receive the full amount. In those instances, they will raise additional money or only do a certain items in the proposed renovation. Ms. Cottingham pointed out that Fred Moore Day Nursery School (FMDNS) has some additional sources from which they could request funding. It appears that DCCDS has a small budget. Ms. Simon noted that DCCDS was requesting less than what was in the original application. Mr. Siegmund complimented DCCDS on their facility and how well they've kept it. Mr. Varnes asked about Mack Park. Mr. Hudspeth and Ms. Cottingham indicated their support for the project. Ms. Cottingham commented that it was a safety issue. Mr. Weinstein and Ms. Morgan also stated their support. Members agreed to include the $115,000 requested for the project. Mr. Varnes asked the members to discuss Serve Denton. He commented that there had been no City determination in relation to the lease question. Mr. Varnes added that this should be considered eligible and in the future, if it is determined that it is not eligible, the funds can be reallocated. Ms. Cottingham asked when they would know whether there is an issue or not. Ms. Ross gave the example of the new playground equipment for the Wheeler Center that was funded last year. Staff determined later that the playground area was in the floodway and therefore the project was ineligible under CDBG. They determined that in August /September of last year. Jodi Vicars -Nance asked about the clause in the lease that might make the project ineligible. Ms. Ross stated at this time, the project is eligible. She stated that there are some restrictions on sublessees when they are off the premises, such as the fact that they cannot be involved in activities that advocate for a non - Christian faith. Mr. Siegmund noted that United Way was not accepted as a possible tenant due to their contribution to Planned Parenthood. Mr. Varnes noted that this comment had not been confirmed and was "here say." Mr. Varnes added that the building is in very good shape and it's possible that they could raise the funds themselves or with the help of the tenant organizations. Ms. Cottingham stated that she was thinking that as well. Mr. Varnes noted that the lack of funding from the City would probably not stop Serve Denton from carrying out their plan. Mr. Siegmund said it is a great idea and that the lease doesn't have to do with Serve Denton. Ms. Cottingham suggested that the committee target the parts of the facility that would serve 100% clients. Ms. Ross noted that the funds should be limited to areas where the programs might not have as much trouble documenting the benefit to low and moderate - income persons. Ms. Morgan mentioned that the kitchen might also bring in revenue. Ms. Cottingham and Mr. Rozell noted that some appliance donations but the installation costs were not included. Ms. Cottingham stated that perhaps the universities could provide some funding if some of their students will be participating. Mr. Varnes suggested that approximately $65,000 be allocated and specifically state where the funds should be spent. Mr. Rozell Page 2 explained why the kitchen isn't 100% client services because they will be using it to prepare for events. Mr. Weinstein pointed out that the committee could allocate some funds but, deduct some if needed as they review all activities. Members agreed to include $65,000 as a working number. Members discussed what they allocated to the Home Improvement Program last year. Mr. Rozell and Mr. Weinstein indicated that it was $426,000. Ms. Ross commented that almost all of the 2013 -14 funds have been committed. She stated that usually there are funds left over that are pulled into the next year but, that will not happen for the 2014 -15 program year. This is why the request is higher than in the past, no other funds are available. Members agreed to put in $427,000 in the budget for HIP as a placeholder. Mr. Varnes stated that the committee now go back and discuss the daycares. Mr. Hudspeth stated that he felt that the committee should fully fund DCCDS. He added that he was concerned about the management of the FMDNS project. Committee members stated their concerns that the organizations were relying on Federal funds to do current and future improvements and expansions of the facility. Mr. Siegmund commented that the agencies serve families that would not otherwise afford childcare services. Ms. Vicars -Nance commented on the significant amount of funding received by the organizations in the past. Ms. Morgan mentioned her concern regarding the methods used to choose contractors for the project. Ms. Ross explained the process for choosing contractors. Ms. Simon brought up the concern that the activity room to be completed by FMDNS might not be usable after the project that is currently funded is complete. Ms. Ross indicated that she spoke with their board president and she indicated that funds have been reallocated to make the activity room usable. Mr. Rozell stated that he wanted to give them the minimum needed to complete the activity room and ensure that no funds are rescinded. He noted that FM DNS was the only daycare providing sliding scale fees and care for infants. Ms. Simon commented that they need to spend the money that they currently have. Mr. Hudspeth said that if funds aren't allocated, it doesn't adversely affect how they serve their families. It will enhance the facility and services but, without it, FMDNS will continue to provide services at the current level. Members discussed what might occur if the activity room is not completed and the children would not be able to use it. Ms. Ross stated that Ms. Bays emailed her stating that some change orders will be made to ensure the room can be used. Ms. Morgan commented that the quality of the soil was a major issue and that the City of Denton fees were higher than expected. Ms. Ross explained that the project had been out to bid three times. The first time no contractor's bid on the project. Mr. Varnes stated that he would be in favor of providing funds for the fence and pay for additional costs associated with construction. Ms. Ross indicated that the City can't pay past expenses with future funding. Mr. Hudspeth stated that FMDNS should complete the project and come back next year if there are additional needs. Ms. Cottingham added that she was concerned because Ms. Bays indicated that the person they trusted to assist them did not do what was needed and now they're playing catch up. She added that she would like to see them sort everything out and then see what their additional needs are. Ms. Ross pointed out that the project has started. Mr. Weinstein proposed a compromise of funding them for $65,000 as a placeholder. Mr. Varnes suggested that they allocate funds for the fence and then an additional $50,000 for other costs. Mr. Rozell suggested that the fence could be constructed by a volunteer group and the FMDNS allocation could be used for other items needed to complete the renovation. Ms. Cottingham suggested that the full amount of funding be allocated to DCCDS and then whatever is left can go to FMDNS. Members agreed to put $102,767 down for DCCDS. Page 3 Mr. Rozell said he'd like to give more to Serve Denton indicating that they serve many people but the funds to housing only serve one family. Ms. Cottingham suggested $40,000 or $50,000 to FMDNS and the rest to HIP. Ms. Morgan suggested that FMDNS get all the remaining funding. Mr. Hudspeth stated that CDAC needs to ensure that new improvements are targeted. He asked Ms. Ross about the expenditure of the funds. Ms. Ross stated that CD is involved in the bidding process and monitors the project the entire time to ensure that the contractor complies with labor regulations. Mr. Rozell asked about the possibility of funds being "intermingled." Ms. Ross indicated that staff reviews contractor invoices, checks the work and if it is all correct, FMDNS is reimbursed for their expenditures. Mr. Hudspeth asked about activity room expenditures. Ms. Ross stated that FMDNS is changing the work on the parking lot to have sufficient funds to make the activity room usable. Ms. Ross pointed out that Fred Moore has received more than other organizations have received. She noted that they were a wonderful organization that is assisting many families. Some prior funding was returned to the City due to some issues at the agency. It was asked how many members wanted to give FMDNS no funding. Ms. Cottingham suggested that the CDAC recommend funding for the landscape and irrigation. Ms. Vicars -Nance noted that the activity room does not increase the number of children served. Mr. Siegmund noted that you wouldn't get a contract for the exact amount and asked how that is handled. Ms. Ross said any residual money can be spent on additional improvements but an amendment to the funding agreement may be retired. Mr. Hudspeth mentioned that a nice building could have been built with the amount of funding that has been spent on this facility. Mr. Varnes asked how many members support $40,000 to FMDNS with the funding left going to the HIP. The vote was six to three in favor of supporting $40,000 to FMDNS. Ms. Vicars - Nance suggested that the remaining funding should go to HIP. Mr. Varnes reviewed the funding amounts for each organization. Members continued to discuss the allocation of funding to FMDNS. The majority of members agreed to recommend funding for FMDNS. Ms. Ross said that the public comment period is during the month of April and that the CDAC presentation would probably be sometime in April. Mr. Varnes stated that he'd like everyone to feel OK about the recommendations. Mr. Siegmund suggested that the committee should vote on the overall package and see if the decision could be unanimous. He noted that not everyone has gotten what they preferred. Mr. Varnes asked who agrees with the recommendation package as presented. The vote was five to three and it was noted that the concerns were in regard to FMDNS and Serve Denton. Ms. Ross indicated that she would work with Serve Denton to determine what might be easier for Serve Denton to keep income records to confirm that they are serving 51% low and moderate - income. It was noted that the part of the mission of Serve Denton was to have the client fill out forms only once and yet be able to access a variety of services. Mr. Weinstein made a motion to accept the recommendations as written. Mr. Siegmund seconded the motion. The motion was approved by a seven to two vote. Ms. Vicars -Nance made a motion to adjourn. The meeting was adjourned. Page 4 I i T 1' F DENTON UNOFFICIAL Minutes Human Services Advisory Committee Large Conference Room, City Hall East 601 E. Hickory, Denton, TX November 15, 2013 12:OOpm- 1:30pm Members Present: Mary Ann McDuff- Chair, Sara Bagheri, Sheryl English, James McDade, Anita Martinez- Strickland, Dale Tampke, Ira Weinstein Members Not Present: Mary Behrens, Stephen Coffey, Teddy Griffin Staff Present: Danielle Shaw and Barbara Ross A Quorum was established. Mary Ann McDuff, Chair called the meeting to order at 12:05pm. Danielle Shaw, staff liaison to the committee reported that all members present had completed the required Oath of Office. Mary Ann McDuff, Chair reviewed the Human Services Advisory Committee Description on page 48 of the City of Denton Handbook for Board, Commissions, and Council Committees. McDuff also reminded members of the importance of attendance so that the committee can meet the required quorum to conduct meetings. Members of the committee completed a round of introductions. The committee held its annual election of Chair and Vice Chair. Sara Bagheri nominated Mary Ann McDuff for Chair and James McDade for Vice Chair. No additional nominations were submitted. Sara Bagheri moved that Mary Ann McDuff be elected as Chair and James McDade be elected as Vice - Chair. Ira Weinstein seconded the motion. The motion carried. Minutes from February 28, 2013 were presented for Approval. Sheryl English moved that the minutes be approved as presented. James McDade seconded the motion. The motion carried. Shaw presented information resources and tools available to committee members. Members held a discussion about additional resources that would be helpful in considering future application requests. Shaw will provide. McDuff led a discussion regarding the upcoming human services funding cycle. Discussion opened with a review of identified community needs and committee members were provided with two dates for upcoming Public Hearings to gather community feedback on community needs. Those dates are December 3, 2013 from 1:OOpm to 3:OOpm. Members reviewed the proposed 2014 -2014 Human Services Funding Application. Sara Bagheri moved that the application as proposed be approved for distribution. Sheryl English seconded the motion. The motion carried. Shaw presented the scheduled dates for application training offered to agencies interested in submitting an application for Human Services Funding. Those dates are December 3, 2013 from 1:30pm to 3:00pm and December 5, 2013 from 9:30am- 11:00am Members requested that all application received be provided in print in a binder for each member. Binder will be available for members to pick up the week of January 21 -24. Members reviewed the current evaluation form used to evaluate applications during review. It was decided to keep the existing format. Members consider dates for upcoming meetings and agency presentations. Those dates will as follows below: • Meeting: Friday, February 7, 2014 11:30 -1:30 Agency Presentations • Meeting: Friday, February 14, 2014 11:30 -1:30 Agency Presentations • Meeting: Friday, February 21, 2014 11:30 -1:30 Agency Presentations • Forms Due: March 7, 2014 HSAC Evaluation Forms are due to D. Shaw • Meeting: Friday, March 28, 2014 11:30 -1:30 Recommendation Session • April TBA: Recommendation Report and Presentation to City Council The next meeting of the committee is Friday, February 7, 2014 at 11:30am. The meeting was adjourned at 1:15pm Minutes Respectfully Submitted by Danielle Shaw, Staff Liaison to the HSAC Minutes Approved: I U i- Minutes Human Services Advisory Committee City of Denton Civic Center 321 E McKinney Street, Denton, TX February 7, 2014 11:30a -1:45p Members Present: Sara Bagheri, Mary Behrens, Sheryl English, Teddy Griffin, Anita Martinez - Strickland, Mary Ann McDuff, Ira Weinstein Members Not Present: Stephen Coffey, James McDade, Bryce Olson Staff Present: Danielle Shaw and Barbara Ross A Quorum was established. Mary Ann McDuff called the meeting to order at 11:35a Mary Ann McDuff, Chair welcomed committee and staff. All Oaths of Offices are current and complete for members present. McDuff announced the resignation of member, Dale Tampke and announced new member, Bryce Olson. Members and staff introduced themselves. Minutes from November 15, 2013 were presented for Approval. Sara Bagheri moved that the minutes be approved as presented. Sheryl English seconded the motion. The motion carried. McDuff direct members to the board manual and reviewed the Conflict of Interest Policy. McDuff reviewed the packet of information and tools available to members as they begin the review process to make recommendations for this upcoming cycle of funding. The following notes from the agency funding presentations are provided for committee information and review. Salvation Army - Denton 11:41a Presenters from the Salvation Army included Sgt. Carol Hernandez and Sgt. Carlos Hernandez. The Salvation Army Denton was provided with five minutes to present information to support its funding request. Agency representatives provided information about increasing in Food Bag distribution. Agency described that the emergency shelter is generally filled to capacity due and its responses to extreme weather. It provided a detailed description of procedures enacted to determine client eligibility specifically waivers for emergency stays. Agency discussed other social service programs including food pantry, job search and job support programs, prescriptions, clothing and transportation. Agency highlighted collaboration with other partners to help clients move to permanent housing. HSAC members took five minutes to ask the agency questions. The agency was asked to provide explanation of how it determines Denton residency when a client is chronically homeless. In response to an organizational structure and funding sources question the agency offered information about the types funding sources and the operational structure within the Salvation Army's DFW command as it relates to funding. Agency was asked about its source of food for the food bank. The response was that it comes primarily from the North Texas food Bank. Agency indicated that it is over capacity and provided details of how it serves clients overnight when it is over capacity. Applicant Organization Presentation Time Fairoaks 11:55a Presenters from Fairoaks included Lee Ann Hubanks, President and Rebecca Marcott, Fairoaks Service Coordinator Agency representatives shared a model of the Plano site displaying the health care complex. Agency described that funding was being sought for a new Telehealth program that would directly tie Denton Fairoaks residents into the Plano health complex through the use of a virtual health care model. The model was described in detail. HSAC members took five minutes to ask the agency questions. The agency was ask how this program does or does not tie into the Affordable Care Act. Agency was asked to provide details about the current location. Agency shared the address of the location and that they serve 40 residents. In response to being asked about the Telehealth model and how Fairoaks will measure success the agency provided an overview of Telehealth as a model, how it will be specifically implemented in Denton, the tools that will be utilized, the role of the service coordinator will have in the program and how it will measure effectiveness. Applicant Organization Presentation Time Denton Community Health Clinic 12:12p Presenters from Denton Community Health Clinic Alice Masciarelli, Executive Director and Carol Wakefield, Vice Chair of Board. Denton Community Health Clinic (DCHC) was provided with five minutes to present information to support its funding request. Members were provided an overview of why DCHC is unique in it client centered model of health care and that no patient is ever turned away. Agency provided statics that 90% of clients come to appointments compared to the national average rate of 70 %, 10% of homeless clients have been able to stabilize physical and mental health issues. Agency shared that it is applying for a national quality assurance award. Agency then provided additional information about the model and related to a comprehensive one -stop shop, multi - dimensional care office. It all discussed where it intends to grow programs to help DCHC generate funding and revenue to support programs HSAC members took five minutes to ask the agency questions. The agency was asked to detail all the health care options available. Agency provided a detailed list. When asked about salaries, the agency shared that all positions are volunteer. The agency was asked to provide the number of clients served on average. The number when asked to clarify what ages are served, the agency indicated that all ages are eligible. The agency discussed its new facility as well as the addition of office space at Our Daily Bread to serve homeless clients on site there. Agency was asked to provide hours of operation. Applicant Organization Presentation Time Interfaith 12:31 p Presenters from Interfaith included Lehia Hill, Outreach and Development Associate and Jackie King, past board member and current volunteer. Interfaith was provided with five minutes to present information to support its funding request. Agency representative's first shared information about the types of clients it serves and then provided a description of the software program that the funding would support. The program, called Seeladora, will help improve services to clients and offer clients the ability to interact with Interfaith 2417. Agency shared that it is the primary source of emergency assistance in Denton County but at current levels the agency is only able to serve about 4% of the need in the community. Funding would help 16 additional families. Agency also highlighted new initiatives including client investment as a strategy of case management. Agency also provided additional information about its collaborations. HSAC members took five minutes to ask the agency questions. Agency was asked about its criteria for funding assistance and to provide any clarification of criteria or policy that might disqualify clients. Agency discussed income requirements and non - discrimination practices in response to the question. Agency was asked to clarify issues with having only a single phone line and how that limits its ability to serving people in crisis with only one phone line. Agency provided more information about the Seeladora program and how it will help improve services. Agency was then asked a follow -up question about how it will help clients without computers or internet. Agency provided details about implementation of the program, community resources and statistics on increased mobile device ownership among all income levels. Break Members took a short break. Meeting resumed at 12:58p 12:45p Applicant Organization Presentation Time Denton County Friends of the Family 1:OOp Presenters from Denton County Friends of the Family included RayAnne Climer, Shelter Director and Irrayna Pittman, Director of Operations Denton County Friends of the Family (DCFOF) was provided with five minutes to present information to support its funding request. Agency representative provided a an overview of current data including a documented 42% increase in the number of calls to the shelter, 19% increase in client stays and a 19% increase in new residents. The agency also shared seeing increases in crisis line support. The representative provided detailed description strategic goals to streamline and improve client services that include increasing crisis line support, downsizing client rules to allow more flexibility for clients and improving volunteer training. The agency also shared new fundraising priorities including the addition of a new annual event. Representatives emphasized that they are the only provider for domestic violence and sexual assault. HSAC members took five minutes to ask the agency questions. Agency was asked to provide information about any new facilities for the shelter to serve more clients. Agency discussed the limitations and the intent to focus on a smaller set of goals in the future. Agency was asked to explain the loss of rental income from previous year. Agency shared the lessee broke the agreement and explained the limitations in signing up a new lessee. Agency was asked to clarify information in application. The first was the number of clients served. Agency shared that the average number of clients served ranges from 40 -80 people a month with about 500 served annually. The second question related to if the organization still had n attorney on staff. Agency directed members to where that was listed in the application. Finally, the agency was asked to clarify the number of City of Denton Residents served. Agency provided clarification that the application should report a higher number at around 35 %. Applicant Organization Presentation Time Giving Hope — HMIS 1:12p Presenters from Giving Hope for the HMIS included Dr. Alonzo Peterson, Executive Director and Roshaun Epperson, CoC data Support Specialist Giving Hope - HMIS was provided with five minutes to present information to support its funding request. Agency representative provided a brief review of how HMIS came into existence related to the need to coordinate data and information. HUD mandated that a more centralized system be utilized and created HMIS. Agency explained that HMIS is a required database system for funding recipients. Agency explained the three basic things HMIS services offer. These include technical assistance, data integrity, and capacity building. The representative gave additional information about how HMIS is implemented in collaboration with other agency, the Texas Homeless Network. Additional information was offered to explain how this data improves services provided by multiple agencies across the county. The agency finished with information that it has been the lead agency with HMIS since 2004. HSAC members took five minutes to ask the agency questions. The agency was asked for information on how HMIS works with other community services like Aunt Bertha an information database about services available. Agency explained the differences and how they are coordinating efforts when possible. Agency was asked about contact information for HMIS versus Hope. Agency was also asked to list the agencies that are currently supported by the HMIS database. A list was provided that includes Christian Community Action, Giving Hope, Inc., Health Services of North Texas, Our daily Bread, and soon Vision Ministries. Agency was asked about Interfaith's participation. It was clarified that it does not use HMIS but there is other coordination efforts. Additional clarification was sought about HMIS as a direct service provider. It was explained that HMIS is the data to support agencies not direct service. Agency was asked how it handles confidentiality. In response, the agency detailed consent process. More information was sought about data integrity and managing disparities. Agency provided an example of how disparities were managed in the 211 program. Agency was asked about training it explained the content. Agency was asked about the issues with HMIS and how those are being managed. Agency provided explanation. Applicant Organization Presentation Time Giving Hope — Transitional Housing 1:23p Presenters from Giving Hope for the Transitional Housing Program included Alonzo Peterson, Executive Director. Giving Hope — Transitional Housing was provided with five minutes to present information to support its funding request. Agency shared that the Giving HOPE, Inc. Transitional Housing Program (HOPE) has been in existence for 21 years. Qualification for clients was shared. It was explained that clients are referred through collaborations with Denton County Friends of the Family and the Salvation Army. Agency provided a detailed description of the program. Clients who have barriers to stable housing are provide with rent and utilities supports. Program requires qualification to stay in the program that includes weekly case management, maintaining stable employment and then as stability is demonstrated the client begins to take on more of the rent and utility payments. The program includes requirements for volunteering, and provides job and resumes support, GED, income counseling, support groups for adults and children, transportation support and childcare. HSAC members took five minutes to ask the agency questions. Agency was asked to clarify if the program was also Section 8 (a federally funded housing voucher program) Agency explained that it is not supported by that source. More information about budget breakdown was requested. In response the agency highlighted the different line items and related expenses. Agency provided a detailed explanation the path of a typical client to answer a question about where HOPE intervenes with a client in crisis. Mary Ann McDuff, Chair led a brief discussion about the meetings presentations, tools and feedback about the meeting. The next meeting of the committee will be Tuesday, February 14, 2014. The meeting was adjourned at 1:43p Minutes Respectfully Submitted by Danielle Shaw, Staff Liaison to the HSAC Minutes Approved: February 14, 2014 IT DEWON;r Minutes Human Services Advisory Committee City of Denton Civic Center 321 E McKinney Street, Denton, TX February 14, 2014 11:30a -1:45p Members Present: Sara Bagheri, Mary Behrens, Stephen Coffey, Sheryl English, Teddy Griffin, James McDade, Anita Martinez- Strickland, Mary Ann McDuff, Ira Weinstein Members Not Present: Bryce Olson Staff Present: Danielle Shaw and Barbara Ross A Quorum was established. Mary Ann McDuff, Chair called the meeting to order at 11:32a McDuff welcomed committee and staff and wished everyone a Happy Valentine's Day. All Oaths of Offices are current and complete for members present. Minutes from February 7, 2014 were presented for Approval. Stephen Coffey moved that the minutes be approved as presented. James McDade seconded the motion. The motion carried. McDuff reviewed the Conflict of Interest Policy and Procedure. The following notes from the agency funding presentations are provided for committee information and review. SPAN 11:35a Presenters from the SPAN included Deb Robertson, Executive Director. SPAN was provided with five minutes to present information to support its funding request. Agency representatives provided a review of services provided and the clients served indicating their primary goals are to combat senior hunger and provide quality nutrition to seniors. Representative discussed how the population growth in Denton has created increasing demands on services. Agency shared that it has experienced reductions in federal funding from the Title Three funding. Agency highlighted a growth opportunity with the addition of an AmeriCorp VISTA. HSAC members took five minutes to ask the agency questions. The agency was asked to provide explanation of how the funding reduction impacts services. In response to questions about who makes the meals, the agency provided information about vendor, their qualifications and the agency's interest in one day finding a local kitchen. Agency indicated food costs are rising when asked. Agency was asked about South Denton locations; marketing and distribution; and wait list. Agency shared that it does not have a waitlist and due to growth does not market programs. Agency representative was asked to provide information about her background and experience. Applicant Organization Presentation Time Camp Summit 11:54a Presenters from Camp Summit included Pam Chicol, Director of Development and Camp Director, Lisa Braziel. Camp Summit was provided with five minutes to present information to support its funding request. Agency representatives thanked the committee for the opportunity to present. The presentation began with the explanation of the clients served. The agency shared that the goal is to provide a "can do" environment for the disable. Programs also provide much needed respite for families who are living with a "forever child ". Agency discussed recent growth in the number of available sessions allowing them to serve more clients. The agency shared a story about a client. HSAC members took five minutes to ask the agency questions. The agency was asked about the length of camp session. When asked about the current lack of Denton County representation on its board, the agency discussed previous representation and how the board selection process includes recruitment efforts in the county. Agency was asked to update the committee on its move to a new camp facility. Agency provided an explanation and also how it will increase the camps capacity to serve more clients. The agency was asked to discuss any relationships with other agencies that serve the disabled and how that impacts client recruitment. Applicant Organization Presentation Time CASA of Denton County 12:06p Presenter from CASA included Sherri Gideon, Executive Director. CASA was provided with five minutes to present information to support its funding request. Agency representative thanked the members for the opportunity to present. Agency addressed why it continues to seek funding support. Agency provided updates to sections in the application. Presentation included a brief review of its strategic and funding goals and an explanation of why it should be funded. HSAC members took five minutes to ask the agency questions. The agency was asked to detail growth in staff. Agency discussed the addition of Case Manager and Volunteer Coordinator positions. It was also asked to clarify how lower CPS filings impact numbers served. Agency provided additional information about the addition of an administrative position. Agency was given additional time to provide more detail on its strategic and funding goals. Applicant Organization Presentation Time Denton County MHMR 12:27p Presenters from Denton County MHMR included Larry West, Administrator of IDD Services and Brenda Bagherpour, Contracts Specialist Denton County MHMR was provided with five minutes to present information to support its funding request. Agency representative's presented details on the program to be funded discussing clients served, stalking details, and services provided. The funding will supplement salaries for the direct care staff in nine group homes in Denton serving 36 individuals. Additional financial information was offered related to how funding will help reduce increasing overtime costs. Agency provided a brief description of services offered to clients residing in group homes. HSAC members took five minutes to ask the agency questions. Agency was asked if the group homes where owned or rented by the agency. Agency indicated that due to inconsistent funding, the agency rents properties rather than purchase. How costs are recovered from clients for living expenses and services provided was explained. Agency provided information related to current staff vacancies. When asked, the agency provided further detail for salary ranges of executive staff and direct care staff. Break Members took a short break. Meeting resumed at 12:56p 12:45p Applicant Organization Presentation Time Family Health Care 12:58p Presenters from Family Health Care included Patrice Capan. Family Health Care was provided with five minutes to present information to support its funding request. Agency representative detailed that services are to help the uninsured in Denton County and that it serves 126 zip codes. Additional statistical information was offered including that fact that 20% of clients are 35 and older, most are not eligible for Medicaid, issues of high blood sugar are on the rise, and that the bilingual services are highly sought. HSAC members took five minutes to ask the agency questions. Agency was asked to clarify the rate of increase in gestational diabetes and the total numbers of Hispanic clients served. The rate of compensation for doctors was requested. Agency provided information about the increase in the number of doctors due to funding changes in tile funds and Medicaid. In response to a question about how the Affordable Care Act impacts services, the agency shared its insurance coverage options. The recent partnership agreement with Health Services of North Texas was discussed. Applicant Organization Presentation Time Health Services of North Texas 1:11 p Presenters from Health Services of North Texas included Louise Weston - Ferrill, Director of Programs and Doreen Rue, CEO. Health Services of North Texas was provided with five minutes to present information to support its funding request. Agency representative thanked the committee for the opportunity to be considered for funding. Representatives provided an overview of three programs to be funded if awarded: the nutrition center; pharmaceutical prescription drug program; and an integrated metal health program. Agency shared that the value of services to clients is 1.34 million and that 99% of the clients served are below 200% of the poverty level. HSAC members took five minutes to ask the agency questions. Agency was asked to clarify the terminology, nutrition center shops. Questions also included how much the pharmaceutical program offsets prescription costs for clients. Agency indicated it was not a new position when asked if the pharmaceutical program case manager is a new one. Agency was asked to prioritize the three programs in order of funding need. COE, Doreen Rue was asked to provide an overview of experience and to provide additional information about agencies growth and expansion plans. Applicant Organization Presentation Time PediPlace 1:35p Presenters from PediPlace included Larry Robbins, President and CEO PediPlace was provided with five minutes to present information to support its funding request. Agency representative thanked the committee for the invitation to present. Agency highlighted that the application was written to reflect City of Denton residents served. Since they are used as a tool used by the agency to gage the upcoming year, January services totals were shared. These include 34% increase in care provided and a 42% increase in visits. There has been a 13% increase in Denton residents served. Agency then offered that they should be funded because children need access to health care and because they have offered consistent service to City of Denton residents. HSAC members took five minutes to ask the agency questions. Agency was asked to offer information about trends in ages served and how transportation affects Denton residents' ability to obtain services. Agency was asked how it identifies City of Denton representation in leadership positions. Agency provided details of previous board representation and also how it focuses on geographic diversification. It was asked about the option of locating offices locally and shared the significant funding requirement necessary to open a satellite office in Denton. Mary Ann McDuff, Chair led a brief discussion about the meetings presentations. The next meeting of the committee will be Friday, February 21, 2014. The meeting was adjourned at 1:54p Minutes Respectfully Submitted by Danielle Shaw, Staff Liaison to the HSAC Minutes Approved: February 21, 2014 IT DEWON;r Minutes Human Services Advisory Committee City of Denton Civic Center 321 E McKinney Street, Denton, TX February 21, 2014 11:30a -1:45p Members Present: Sara Bagheri, Mary Behrens, Stephen Coffey, Sheryl English, Teddy Griffin, James McDade, Anita Martinez- Strickland, Mary Ann McDuff, Ira Weinstein Members Not Present: Bryce Olson Staff Present: Danielle Shaw and Barbara Ross A Quorum was established. Mary Ann McDuff, Chair called the meeting to order at 11:34a Minutes from February 14, 2014 were presented for Approval. James McDade moved that the minutes be approved as presented. Mary Behrens seconded the motion. The motion carried. McDuff reviewed the Conflict of Interest Policy and Procedure. Prior to the start of the agency presentations Sara Bagheri requested a discussion on how the HSAC could gather additional salary information from all the agencies seeking funding. In order to stay on agenda, the discussion was tabled until the break. The following notes from the agency funding presentations are provided for committee information and review. Denton Christian Preschool 111:43a Presenters from the Denton Christian Preschool included Alicia Blanca, Director and Mary Ellen Smith. Denton Christian Preschool was provided with five minutes to present information to support its funding request. Agency representatives provided details about how the funding awarded would be utilized for a classroom teacher and a driver. Agency shared lessons learned about the need for transportation. Agency also discussed the addition of a new program that will offer clients more instruction hours. HSAC members took five minutes to ask the agency questions. The agency was asked how many clients were served by the program. When asked about a waitlist, the agency confirmed that it does have one but the new program will allow them to open up more spaces. Agency was asked to clarify ages of clients served and the hours of operation. Agency responded that it offers half -day programming serving 3yr olds in the morning and 4 yr olds in the afternoon. In response to demographic and fee questions, the agency explained it serves primarily Hispanic clients and that it has a sliding scale. Agency then provided more information about lessons learned about transportation due to the loss of a bus. Applicant Organization Presentation Time Denton City County Day School 11:53a Presenters from Denton City County Day School included Carolyn Beach, Executive Director and Jana Marshall, Board Member. Denton City County Day School was provided with five minutes to present information to support its funding request. Agency representatives shared highlights of recent successful new program implantations including a partnership with UNT work study students that offer one on one torturing and new recreation opportunities. This time also helps offset payroll costs and provides teachers much needed lesson planning time. Agency discussed its hearing and vision screening programs. Agency highlighted board strategic initiatives for the current year including diversification of representation, formalizing the board application process, collaboration with Leadership Denton alumni for board recruitment, the addition of fundraising and community awareness committees. Agency shared statistics about the higher rates of graduation, fine motor skill development, earlier detection of learning impairments and improved social skills as a result of a preschool education. HSAC members took five minutes to ask the agency questions. The agency was asked about hours of operation. It shared that the program is a year - round full day program that operates 6:30a to 6:OOp to accommodate working parents. When asked about costs, the agency offered that fees are on a sliding scale based on income and families pay on average $75.00 a week. When asked the agency confirmed it does have a waiting list. Additional information about fees and income level was sought. Agency offered that the typical income of clients in the program was $18,000 - $22,000 a year for a family of four. Agency explained that it serves breakfast, lunch and snack when asked what fees include. Demographic make -up of clients was described by the agency as very diverse. Applicant Organization Presentation Time Fred Moore Day Nursery School 12:05p Presenter from Fred Moore Day Nursery School included Wendy McGee, Executive Director and Elizabeth Barring, Board Member. Fred Moore Day Nursery School was provided with five minutes to present information to support its funding request. Agency representative highlighted the addition of an Advisory Board to be a resource for all things curriculum related so that it improve on the delivery of quality early childhood education. It then shared its growth over the last few years. The agency has grown from serving 47 to a max of 86 with a waitlist of 64. It explained that the recent addition of a toddler room filled immediately and the agency is looking to expand to two more rooms and adding both a new indoor activity center as well as the potential to become a summer food program site. Agency promoted that it is the only childcare that serves infants and toddlers. Agency discussed the importance of professional certification and shared staff professional development goals. It also spoke about the importance of their efforts to build parent involvement which contribute to later success in school. HSAC members took five minutes to ask the agency questions. The agency was asked to provide details about teacher salaries and to clarify ages served. The agency explained that it was to only income based child care for children under two years of age. Agency provided additional details about the goal to ensure children are ready to enter kindergarten by collaborating with DISD to offer coordination with the Kindergarten curriculum. Agency was asked about budget line items and it clarified how the short -term CDBG funded capital improvements are being reported. When asked to provide details of actual fees paid, agency shared that sliding scale fees range on average between $75 and $125 a week which is a savings for most households of about $400 a month. Applicant Organization Presentation Time RSVP 12:22p Presenters from RSVP included Diana Corona, executive Director and Christina Penland, AmeriCorps VISTA Project Director. RSVP was provided with five minutes to present information to support its funding request. Agency representatives declared that they were seeking funding to keep seniors active and involved. Agency took a moment to praise recent agency board efforts to improve its work in fundraising and leadership. Agency provided a spreadsheet that highlights new program shift to bundle service support in major categories that include healthy futures and education. This helps the agency be more results driven and to demonstrate strong performance measures. Agency highlighted that its goal is Volunteerism that is not just about activities but more about solving community problems. HSAC members took five minutes to ask the agency questions. Agency was asked to provide background information about the executive directors years experience and background. Director offered educational background, length of service and goal to impact the community. Break Members took a short break. Meeting resumed at 12:56p 12:30p Committee reconvened at 12:45 to address tabled discussion related to obtaining more detailed salary information in the application. Sara Bagheri moved that the committee add an agenda item to the March 28, 2014 HSAC meeting to discuss amendments to the 15 HS Funding application. Stephen Coffey seconded the motion. The motion carried. Staff was asked to contact current agencies to obtain additional salary data for comparison and provide a report to the committee. Data to report could include CEO actual salary, years of experience, % to budget, number of clients served and cost per unit. Communities in Schools North Texas I 12:50p Presenters from Communities in Schools North Texas included Ann Pape, Chief Development Officer and Elijah Dunlap, Director of Development Communities in Schools North Texas was provided with five minutes to present information to support its funding request. Agency representative provided background of presenters. Agency highlighted long relationship with City of Denton and provided an overview of how funding has helped the agency place social workers on DISD school campuses with the most need by poverty level and indicators of the likelihood that a student will become a dropout. Agency described what is new in the funding is that it now supports a collaborative of cV of Denton United Way, and the agency to implement the 10, 000 Mentor Denton Initiative created to address the need of students to have a positive role model. Funding would help ensure 380 children would have an almost 1:1 match with a mentor. Mentors come directly the community. HSAC members took five minutes to ask the agency questions. Agency was asked to clarify salaries and how many more students would be served with increased funding. Agency explained that their goal is to provide 75% of students with case management and services. As a point of further clarification, agency explained that increase in funding would not serve more clients but would mean each client will receive more services and case management. Agency was directed to the application to explain reported number served. Agency explained how it leverages dollars from multiple partners to provide even more services. When asked about DISD contribution to the program, agency provided that the district contributes on average about $12,000 per program providing a social worker. Applicant Organization I Presentation Time City of Denton Kids Kamp I 1:05p Presenters from City of Denton Kids Kamp included Kathy Schaeffer, Parks Program Manager. City of Denton Kids Kamp was provided with five minutes to present information to support its funding request. Agency representative described the program to be funded including that it serves 52 children ages five to 11 at the Denia Recreation Center and its hours are 9a to 5p. Agency explained that the program at current capacity serves 52 children to transportation capacity. It hopes to grow the program to 56 with the addition of another vehicle. The program activities were described as a program identical to other day camp programs in the department only the clients attend without a fee. Agency listed program enrichments and extra supports for summer learning made available through collaborations with UNT, TWU and the Foster Grandparents Program. HSAC members took five minutes to ask the agency questions. Agency was asked to clarify an application item. Clarification was provided that the program was started in 1994. Agency listed general fund and youth and teen service budget in response to the question how the program makes up the difference in HS Funding and the remaining program costs. When asked about costs, agency also provided details on how it supplements costs now that field trip, food, and transportation costs have risen as much as 20 %. In response to a request for fees, agency indicated that the only cost to participants in a one -time $10.00 fee set primarily to give participants some investment into the program. Agency was asked about the location and where participants live in relation to the program. Agency described completed survey that showed that clients come from all areas of the city. The agency was asked to describe qualification process. When asked what kids would be doing if the program did not exist, agency explained that they would most likely be home alone and unsupervised. Mary Ann McDuff, Chair led a brief discussion about overall impressions from all presentations. McDuff reminded committee of its role as advisors to the City Council. McDuff asked Shaw to give a brief overview of next steps. The next meeting of the committee will be Friday, March 28, 2014. The meeting was adjourned at 1:23p Minutes Respectfully Submitted by Danielle Shaw, Staff Liaison to the HSAC Minutes Approved: March 28, 2014 Members Not Present: Mary Behrens, Stephen Coffey, Bryce Olson Staff Present: Danielle Shaw and Barbara Ross A Quorum was established. Mary Ann McDuff, Chair called the meeting to order at 11:40a Minutes from February 21, 2014 were presented for Approval. James McDade moved that the minutes be approved as presented. Teddy Griffin seconded the motion. The motion carried. McDuff reviewed the Conflict of Interest Policy and Procedure and asked members to disclose any conflicts that would require a member to step out during discussions. None were disclosed. McDuff asked staff to review the HSAC Ranking Evaluation Form results and the Supplemental Salary Survey information requested by the committee in March. Members discussed applications, presentations from agencies seeking Human Services funding and committee rankings. Funding considerations included increasing support of child care and health care services; evaluation of the impact versus dollars committed; the number of City of Denton residents served; if services were provided and received in Denton; and rate of duplication of services. After hearing agency presentations, reviewing data provided in applications and supplemental reports the committee developed final recommendations for funding to be presented to the City Council. Sara Bagheri moved that the recommendations developed by the committee be approved for presentation to the City Council. Teddy Griffin seconded the motion. The motion carried. McDuff thanked the committee and staff for its hard work and commitment to the Human Services funding process. The meeting was adjourned at 1-31p Minutes Respectfully Submitted by Danielle Shaw, Staff Liaison to the HSAC Minutes Approved: Public Hearing C AGENDA INFORMATION SHEET AGENDA DATE: April 15, 2014 DEPARTMENT: Utility Administration ACM: Howard Martin, Utilities, 349- 8232�f�'"" SUBJECT Hold a public hearing and consider adoption of an ordinance amending the Water Conservation Plan and the Drought Contingency Plan of the City of Denton, Texas previously adopted by the City Council in Ordinance No. 2009 -134 enacted on the 2nd day of June, 2009 regarding only sections 6.6 and 6.7 thereof, and as previously adopted by the Council in Ordinance No. 2012- 064 enacted on the 6th day of March, 2012; amending the drought and emergency response stages of the water conservation plan and the drought contingency plan; amending the enforcement provisions of mandatory restrictions of the water conservation plan and the drought contingency plan; providing for the stages of enforcement for violators of the water conservation plan and the drought contingency plan; providing for rates to be charged for water usage in the water conservation plan and the drought contingency plan in the event of high usage; providing for administrative fees to be charged to violators for certain violations of the drought contingency plan; providing a criminal penalty not to exceed $2,000 per violation of the drought contingency plan; providing a civil penalty not to exceed $1,000 per day per violation of the drought contingency plan; providing civil legal remedies for the City of Denton, Texas; providing a savings clause; providing a severability clause; and providing an effective date. BACKGROUND Water Conservation Plans are often confused with Drought Management Plans by the public but they are designed to accomplish different goals to manage different situations. Water Conservation Plans are designed for long term reductions in water demands to support ever growing populations with finite existing water supplies. Water Conservation Plans are designed and structured to reduce water demands permanently by enabling water customers to use water more efficiently. Water Conservation Plans educate the public about the importance of using water efficiently, how to avoid wasting water, and how to manage, operate and maintain an efficient water supply and distribution system. By contrast, Drought Management Plans (or Drought Contingency Plans), are designed to reduce water use during short term emergencies by limiting water uses to essential purposes and restricting non essential water uses on a temporary basis. Drought Contingency Plans are emergency plans and are designed to manage water demands when water supply management efforts fall short of meeting demands. Hence they are a type of demand side water management. As a water right holder and a retail public water supplier, the City of Denton is required by state law to have an approved Water Conservation Plan and a Drought Management Plan. In addition, the City is required to update these plans every five years and report them to the Texas Agenda Information Sheet April 15, 2014 Page 2 Commission on Environmental Quality (TCEQ) and the Texas Water Development Board (TWDB). See attached Exhibit 2. The background and history of the previous City of Denton Water Conservation and Drought Contingency Plans is described in greater detail in the March 10, 2014 Public Utilities Board Agenda. See attached Exhibit 3. The City of Denton's current Water Conservation Plan was last approved in 2009. As a part of the Water Conservation Planning process, water use history is recorded and reported annually to the TWDB. The water use metric currently used by the TWDB is Per - Capita Water Use. Per - Capita Water Use, defined by the TWDB, is the total amount of water diverted and /or pumped for potable water use divided by total population. Per - Capita Water Use is also commonly expressed in gallons per capita per day (gpcd). TWDB specifies that per- capita water use be calculated as a five year rolling average. This is meant to smooth out the effects of weather variability from year to year that would hide any trend in per- capita usage. The Denton Water Utilities (DMU) forecast does much the same thing to gauge total demand, but reduces weather variability by defining `normal,' `wet,' and `dry' years based on historical rainfall observations over several decades. Exhibit 4 shows the 5 year rolling average Per Capita Water Use for the City of Denton as it has been reported to TWDB. Since adoption of specific water conservation goals and strategies identified in the 1999, 2005 and 2009 Water Conservation Plans, Denton has generally meet its specific goal of a one percent reduction of per- capita water use per year in the previous nine years. In 2000, Denton's five year rolling average per capita water consumption was 173 gpcd. By 2008, it was 164 gpcd and by 2013, it has been reduced to 158 gpcd. This net reduction in Per - Capita Water Use was 15 gpcd, a 9% reduction over 13 years (or about 0.7% per year reduction). The Per - Capita Water Use reductions proposed for the 2014 Water Conservation Plan are to target a 2% per five year planning period reduction with targets of 155 gpcd for 2019 and 152 gcpd for 2024. This trend (if sustained over the next 30 years) would get Denton's per capita water consumption down to the 140 gpcd figure within the original 50 year planning period in the 1999 Statewide Regional Water Plan. These goals are shown along with the historic per capita water use trends in Exhibit 5. The proposed changes to the current City of Denton Water Conservation Plan for the 2014 update are summarized below: • Reduced the five year water conservation goal from one per cent per year over a five year period to two percent reduction every five years for the next ten years. • Expand the Public Education and Outreach Program to promote twice a week watering as a voluntary water conservation measure and a good landscape irrigation practice to promote a healthy lawn that is more drought and freeze tolerant. • Revamp the customer water audit program to be more proactive (vs reactive) and expand it include Commercial /Industrial/Institutional customers. Agenda Information Sheet April 15, 2014 Page 3 • Expand the Water Utility's aging infrastructure management program to include condition assessment of large diameter transmission pipelines. The City's Drought Contingency Plan has historically been designed to closely follow the Drought Contingency Plans adopted by Dallas Water Utilities. The reasons for this are: 1. Denton's two water supply reservoirs (Lake Lewisville and Lake Ray Roberts) are also major water supply sources for Dallas Water Utilities. 2. Dallas Water Utilities has four other water supply sources (Lakes Grapevine, Ray Hubbard, Tawakoni, and Fork) currently connected to their water supply system with plans to connect a seventh water supply source (Lake Palestine) in the near future. 3. Dallas Water Utilities serves approximately 2.4 million people with approximately 40% of them living in 22 cities that are a part of their wholesale treated water supply customer base. 4. Dallas Water Utilities uses approximately 20 times the amount of water used by the City of Denton. 5. Denton's water conservation efforts would have minimal impact to preserving water supplies within Lake Lewisville and Lake Ray Roberts if similar efforts were not being made by Dallas Water Utilities and their wholesale customer base. This customer base also includes the Upper Trinity Regional Water District and the City of Lewisville that both pull water from Lake Lewisville into their water treatment plants using untreated water supply contracts with Dallas Water Utilities. 6. Although Denton's current water use can be met by their existing water rights from Lake Lewisville and Lake Ray Roberts, our long range water supply plan under the Region C and State of Texas Water Plan depends upon additional water supply purchases from Dallas Water Utilities in the near future. 7. Denton currently has a 30 year untreated water supply contract with Dallas Water Utilities that will expire in 2015. The terms of this contract requires that the City of Denton implement "like measures" to conserve water during a drought period. For several reasons, Dallas Water Utilities has elected to significantly modify their Drought Contingency Plan during this five year update process, changing it from a four stage plan to a three stage plan. Many of these reasons were described in greater detail in the staff briefing to the PUB on the March 10, 2014 Agenda. Staff has carefully reviewed the proposed changes being recommended by Dallas Water Utilities to their 2014 Drought Contingency Plan and has integrated these changes into the proposed revisions to the City of Denton 2014 Drought Contingency Plan with some very minor revisions that make them more consistent with some of the wording used in our current plan. In addition, staff articulated in better detail how water for construction from fire hydrants and for new water line installations would be managed during later stages of the drought plan. Staff also proposed using a performance based approach for water use for parks and golf courses rather than specifying when landscaping could be irrigated. The performance based approach provides for more flexibility for the end user to determine the best method to reduce water use but it does require their participation and commitment to comply. Agenda Information Sheet April 15, 2014 Page 4 A red -lined version of the proposed revisions to the 2009 Water Conservation Plan and the 2012 Drought Contingency Plans for submission to the TCEQ and the TWDB for the 2014 update process is included as Exhibit 6. OPTIONS 1. Accept the proposed plan revisions as prepared and presented by Staff. 2. City Council provides direction to Staff for changes to be incorporation into the updated plans. RECOMMENDATION Staff is recommending approval of the proposed updates to the plans as submitted. The City Council received a briefing from staff on the proposed revisions to the plans at the April 1, 2014 Work Session and the Public Utilities Board recommends approval to the proposed revisions as submitted. PRIOR ACTION /REVIEW (Council, Boards, Commissions) March 10, 2014 - Briefing to Public Utilities Board concerning the proposed revisions to the Water Conservation and Drought Contingency Plans. March 24, 2014 - Public Utilities Board recommends approval of the proposed revisions to the Water Conservation and Drought Contingency Plans (5 -0). April 1, 2014 — City Council Work Session briefing by staff on the proposed revisions to the Water Conservation and Drought Contingency Plans. FISCAL INFORMATION N/A BID INFORMATION N/A EXHIBITS 1. Ordinance 2. February 28, 2014 notification letter from the TCEQ. 3. March 10, 2014 PUB Agenda (less exhibits). 4. 5 year rolling average per- capita water use history. 5. Five and ten year water conservation goals. 6. Redlined version of existing plans with proposed revisions. Respectfully submitted: Jim Coulter General Manager, Water Utilities Prepared by: Tim Fisher, P.E., Water Utility Division Manager EXHIBIT 1 ORDINANCE NO. 2014- AN ORDINANCE AMENDING THE WATER CONSERVATION PLAN AND THE DROUGHT CONTINGENCY PLAN OF THE CITY OF DENTON, TEXAS PREVIOUSLY ADOPTED BY THE CITY COUNCIL IN ORDINANCE NO. 2009 -134 ENACTED ON THE 2ND DAY OF JUNE, 2009 REGARDING ONLY SECTIONS 6.6 AND 6.7 THEREOF; AND AS PREVIOUSLY ADOPTED BY THE COUNCIL IN ORDINANCE NO. 2012 -064 ENACT- ED ON THE 6TH DAY OF MARCH, 2012; AMENDING THE DROUGHT AND EMERGEN- CY RESPONSE STAGES OF THE WATER CONSERVATION PLAN AND THE DROUGHT CONTINGENCY PLAN; AMENDING THE ENFORCEMENT PROVISIONS OF MANDA- TORY RESTRICTIONS OF THE WATER CONSERVATION PLAN AND THE DROUGHT CONTINGENCY PLAN; PROVIDING FOR THE STAGES OF ENFORCEMENT FOR VIO- LATORS OF THE WATER CONSERVATION PLAN AND THE DROUGHT CONTINGEN- CY PLAN; PROVIDING FOR RATES TO BE CHARGED FOR WATER USAGE IN THE WATER CONSERVATION PLAN AND THE DROUGHT CONTINGENCY PLAN IN THE EVENT OF HIGH USAGE; PROVIDING FOR ADMINISTRATIVE FEES TO BE CHARGED TO VIOLATORS FOR CERTAIN VIOLATIONS OF THE DROUGHT CONTINGENCY PLAN; PROVIDING A CRIMINAL PENALTY NOT TO EXCEED $2,000 PER VIOLATION OF THE DROUGHT CONTINGENCY PLAN; PROVIDING A CIVIL PENALTY NOT TO EXCEED $1,000 PER DAY PER VIOLATION OF THE DROUGHT CONTINGENCY PLAN; PROVIDING CIVIL LEGAL REMEDIES FOR THE CITY OF DENTON, TEXAS; PROVID- ING A SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council is cognizant of the persistent drought and near - drought conditions that have occurred and which exist in this geographic area and is also aware that water supply in area lakes and reservoirs has become severely depleted; it further coming to the atten- tion of the City Council that the City of Dallas, Texas, who is a party to contracts for the sale of water to the City from Lake Lewisville and Lake Ray Roberts, has recently enacted an ordinance that limits certain uses and the timing of such use of water, and provides for violations of that ordinance; and WHEREAS, §11.1271 and 11.1272 of the Texas Water Code and the applicable rules of the Texas Commission on Environmental Quality require the City to include specific, quantified five -year and ten -year targets for water savings and specific quantified targets for water use re- ductions during periods of water shortages and drought in the Water Conservation and Drought Contingency Plan; and WHEREAS, on April 19, 2005, the City Council adopted the ordinance providing for the Water Conservation and Drought Contingency Plan for the City, by enacting Ordinance No. 2005 -121; and WHEREAS, on May 2, 2006, the City Council adopted the ordinance providing for the Amended Water Conservation and Drought Contingency Plan for the City, by enacting Ordi- 1 nance No. 2006 -127, by adding Appendix "G" to said plan, which was the "Lawn and Landscape Irrigation and Water Waste Ordinance'; and WHEREAS, on June 2, 2009, the City Council adopted the ordinance providing for the further Amended Water Conservation and Drought Contingency Plan, by enacting Ordinance No. 2009 -134, by including two additional Texas Water Development Board, Best Management Practices recommended by the Task Force's Water Conservation Best Management Practices Guide that relate to park and athletic field conservation; and WHEREAS, on the 6th day of March, 2012 the City Council recognized that the amount of water available to the City and its water utility customers is limited, is subject to depletion and should be used efficiently; and the City Council desired to further amend the said Water Conser- vation and Drought Contingency Plan to include amendments to Sections 6.6 and 6.7 thereof, as evidenced by Ordinance No. 2012 -064; and WHEREAS. the Public Utilities Board of the City of Denton, Texas after considering the proposed changes to the Water Conservation Plan and the Drought Contingency Plan, as con- tained in Exhibit "A" attached hereto and incorporated by reference herein, unanimously ap- proved the proposed changes at its public meeting on the 24th day of March, 2014; and WHEREAS, the City Council received a presentation of this item at its public work ses- sion on the 1st day of April, 2014 and supported the proposed changes to the Water Conservation Plan and the Drought Contingency Plan, and requested that staff bring back this matter for Coun- cil consideration of the passage of an ordinance at its meeting of the 15th day of April, 2014; and WHEREAS, on the 15th day of April, 2014, at 6:30 p.m. at a meeting of the City Council, Staff also presented this item at a public hearing of the City Council, which also provided an op- portunity for the public to comment on the proposed changes to the Water Conservation Plan and the Drought Contingency Plan; and WHEREAS, the City Council accordingly finds that this ordinance is necessary to protect the public health of the residents of the City of Denton, Texas, in accordance with §54.001 and §54.004 of the Texas Local Government Code; and WHEREAS, the City Council deems it in the public interest to adopt the following amendments to the Amended Water Conservation Plan and the Drought Contingency Plan adopted on March 6, 2012, by adopting the provisions attached in the "April 2014 - Water Con- servation Plan and Drought Contingency Plan (updated April 2014)" that is attached hereto as Exhibit "A ", said Plans are incorporated by reference herewith; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The Preamble to this ordinance is incorporated by reference herewith, and made a part of this ordinance for all purposes. 2 SECTION 2. City of Denton Ordinance No. 2005 -121, pertaining to the "Water Conser- vation and Drought Contingency Plan," and codified in Chapter 26 of the Code of Ordinances of the City of Denton, Texas, at § §26 -233 and 26 -234, amended, by City of Denton Ordinance No. 2006 -127, by adding to it Appendix "G ", which is the "Land and Landscape Irrigation and Water Waste Ordinance "; and as further amended by the "Water Conservation and Drought Contingen- cy Plan — April 2009" by City of Denton Ordinance No. 2009 -134; and as amended by this ordi- nance, the said Sections 26- 233(a) and 26 -234 are amended as follows; and now as amended by City of Denton Ordinance No. 2012 -064, which amended Section 26- 233(a) and Section 26- 234(a), (b) and (c): Sec. 26 -233. Water conservation and drought contingency plan. (a) Adoption of plans. The Water Conservation and Drought Contingency Plan of the City adopted dated April 19, 2005, and the previous amendment thereto adopted by ordinance dated May 2, 2006, and the "City of Denton — Water Conservation and Drought Contingency Plan — April 2009" are hereby adopted by reference herein; and the attached "City of Denton — Water Conservation and Drought Contingency Plan (updated February 2012); together with the Water Conservation Plan and the Drought Contingency Plan (updated to April 2014) is hereby added to, and incorporated by reference herewith, being attached as Exhibit "A" hereto, and made a part of this Code of Ordinances for all purposes, as if fully set forth herein (hereafter collectively referred to as the "Plan "). Sec. 26 -234. Criminal and Civil Penalties. (a) A person commits an offense if he or she knowingly makes, causes, or permits a use of water contrary to the measures implemented in the Water Conservation Plan or the Drought Contingency Plan, as amended. For purposes of this section, it is presumed that a person has knowingly made, caused, or permitted a use of water contrary to the measures implemented if the mandatory measures have been implemented according to the Plan and any one of the fol- lowing conditions apply: (1) The Plan prohibits the manner of use; or (2) The amount of water used exceeds the amount allowed by the Plan; or (3) The amount of use or the amount used violates the terms and conditions of a compliance agreement following a variance granted by the Assistant City Manager for Utilities; or (4) The violation of any provision of the "Land and Landscape Irrigation and Water Waste Ordinance" (b) The following penalty shall apply during Stage 3 of the Water Conservation Plan and the Drought Contingency Plan, as amended. Any person who knowingly violates any provi- sion of this article shall, upon conviction, be punished by a fine not to exceed two thousand dol- Lars ($2,000.00). Each day that one or more provisions in this Plan is violated shall be consid- ered to be a separate offense. (c) The City Attorney is authorized to commence an action for appropriate legal or equitable relief in a court of competent jurisdiction in addition to the penalty mentioned in the above Subsection (b). Such additional relief may include: (1) An injunction to prevent a violation of this chapter, or of the Water Con- servation and the Drought Contingency Plan, as amended; (2) Recovery for expenses incurred by the City in responding to a violation of this Chapter, or of the Water Conservation or the Drought Contingency Plan, as amended; (3) A civil fine of up to one thousand dollars ($1,000.00) per day for viola- tions of §26 -233 or for violations of the Water Conservation Plan or the Drought Contingency Plan, as amended; (4) All other damages, costs, remedies and legal processes to which the City may be entitled. SECTION 3. This ordinance shall be cumulative of all provisions of ordinances and of the Code of Ordinances of the City of Denton, Texas, as amended, except when provisions of this ordinance are in direct conflict with the provisions of such ordinances and such Code. All conflicting provisions of such ordinances and such Code are hereby repealed to the extent of that conflict only. SECTION 4. It is hereby declared to be the intention of the City Council that the sec- tions, paragraphs, sentences, clauses, and phrases of this ordinance are severable, and, if any phrase, clause, sentence, paragraph, or section of this ordinance shall be declared unconstitution- al by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionali - ty shall not affect any of the remaining phrases, clauses, sentences, paragraphs, and sections of this ordinance since the same would have been enacted by the City Council without the incorpo- ration of this ordinance of any such unconstitutional phrase, clause, sentence, paragraph, or sec- tion. 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, the official newspaper of the City of Denton, Texas, within ten days of the date of its passage. PASSED AND APPROVED this the day of , 2014. 11 MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY Water Conservation and Drought Contingency Plan City of Denton CITY OF DENTON Water Conservation Plan April 2014 1. INTRODUCTION AND OBJECTIVES Water supply has always been a key issue in the development of Texas. In recent years, the increasing population and economic development in Region C have led to growing demands for water. Additional supplies to meet higher demands will be expensive and difficult to develop. Therefore, it is important that we make efficient use of existing supplies and make them last as long as possible. This will delay the need for new supplies, minimize the environmental impacts associated with developing new supplies, and delay the high cost of additional water supply development. Recognizing the need for efficient use of existing water supplies, the Texas Commission on Environmental Quality (TCEQ) has developed guidelines and requirements governing the development of water conservation and drought contingency plans for public water suppliers.' The TCEQ guidelines and requirements for water suppliers are included in Appendix B. The City of Denton has adopted this water conservation and drought contingency plan pursuant to TCEQ guidelines and requirements. The objectives of the water conservation plan are: • To reduce water consumption. • To reduce the loss and waste of water. • To identify the level of water reuse. • To improve efficiency in the use of water. • To extend the life of current water supplies by reducing the rate of growth in demand. The objectives of the drought contingency plan are: • To conserve the available water supply in times of drought and emergency. • To maintain supplies for domestic water use, sanitation, and fire protection. • To protect and preserve public health, welfare, and safety. • To minimize the adverse impacts of water supply shortages. • To minimize the adverse impacts of emergency water supply conditions. Water Conservation and Drought Contingency Plan City of Denton 2. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY RULES 2.1 Conservation Plans The TCEQ rules governing development of water conservation plans for public water suppliers are contained in Title 30, Part 1, Chapter 288, Subchapter A, Rule 288.2 of the Texas Administrative Code, which is included in Appendix B. For the purpose of these rules, a water conservation plan is defined as: "A strategy or combination of strategies for reducing the volume of water withdrawn from a water supply source, for reducing the loss or waste of water, for maintaining or improving the efficiency in the use of water, for increasing the recycling and reuse of water, and for preventing the pollution of water. A water conservation plan may be a separate document identified as such or may be contained within another water management document(s)." 1 According to TCEQ rules, water conservation plans for public water suppliers must have a certain minimum content (Section 3), must have additional content for public water suppliers that are projected to supply 5,000 or more people in the next ten years (Section 4), and may have additional optional content (Section 5). 2.2 Drought Contingency Plans The TCEQ rules governing development of drought contingency plans for public water suppliers are contained in Title 30, Part 1, Chapter 288, Subchapter B, Rule 288.20 of the Texas Administrative Code, which is included in Appendix B. The rules for wholesale water suppliers are contained in Rule 288.22, included in Appendix B. For the purpose of these rules, a drought contingency plan is defined as: "A strategy or combination of strategies for temporary supply and demand management responses to temporary and potentially recurring water supply shortages and other water supply emergencies. A drought contingency plan may be a separate document identified as such or may be contained within another water management document(s)." 1 The drought contingency plan for the City of Denton is contained in Section 6 of this water conservation and drought contingency plan. Water Conservation and Drought Contingency Plan City of Denton 3. MINIMUM REQUIRED WATER CONSERVATION PLAN CONTENT The minimum requirements in the Texas Administrative Code for water conservation plans for public drinking water suppliers covered in this report are as follows: • 288.2(a)(1)(A) - Utility Profile - Section 3.1 and Appendix C • 288.2(a)(1)(B) - Specification of Goals Before May 1, 2005 - Section 3.2 • 288.2(a)(1)(C) - Specification of Goals After May 1, 2005 - Section 3.2 • 288.2(a)(1)(D) - Accurate Metering- Sections 3.3 and 3.4 • 288.2(a)(1)(E) - Universal Metering - Section 3.4 • 288.2(a)(1)(F) - Determination and Control of Unaccounted Water - Section 3.5 • 288.2(a)(1)(G) - Public Education and Information Program - Section 3.6 • 288.2(a)(1)(H) - Non - Promotional Water Rate Structure - Section 3.7 • 288.2(a)(1)(I) - Reservoir System Operation Plan - Section 3.8 • 288.2(a)(1)(J) - Means of Implementation and Enforcement- Section 3.9, Appendix D • 288.2(a)(1)(K) - Coordination with Regional Water Planning Group - Section 3.10 and Appendix E TCEQ places additional requirements on wholesale water suppliers in Title 30, Part 1, Chapter 288, Subchapter B, Rule 288.5 of the Texas Administrative Code. This Rule is included in Appendix B. TCEQ's minimum requirements for water conservation plans are addressed in the following subsections of this report: • 288.5(1)(C) - Maximum Acceptable Unaccounted -For Water Goal - Section 3.5 3.1 Utility Profile Appendix C to this water conservation plan is a water utility profile for the City of Denton, based on the format recommended by the TCEQ.z 3.2 Specification of Water Conservation Goal Specific elements of the Water Conservation Plan are discussed in the subsequent sections of this document. The development of this plan involved the identification and examination of numerous conservation strategies. The conservation strategies chosen for the plan were derived from numerous Water Conservation and Drought Contingency Plan City of Denton sources including state agency recommendations, the Region C planning group, water conservation literature, and the City's existing Water Conservation Plan. Prior to 2014, Denton's water conservation goal was a 15 percent reduction in per capita water use by 2050. This goal was established in Denton's Water Conservation and Drought Contingency Plan adopted December 7, 1999. The City's water conservation goals after May 1, 2005 include the following: • Achieve 2009 per capita water use of 170 gpcd or less, as shown in Table 3 -2 (current target). This represents a reduction of 9 gpcd from year 2000 per capita water use. • Achieve 2014 per capita water use of 162 gpcd or less, as shown in Table 3 -2 (five -year target). This represents a reduction of 18 gpcd from the year 2000 per capita water use. • Achieve 2019 per capita water use of 154 gpcd or less, as shown in Table 3 -2 (ten -year target). This represents a reduction of 27 gpcd from year 2000 per capita water use. The City's conservation goal was articulated in 2005 as a one percent reduction yearly in per- capita usage for ten years. This goal was based on: 1) per - capita reduction goals recommended by the Texas Water Development Board's Task Force on Water Conservation; and 2) an indication in recent data that per capita water demand had started to decline. However, weather patterns over the same period of time were such that declining per capita consumption may have been weather related. Denton's specific goal of a one percent reduction of per- capita per year in the first five years, based on estimated savings from current conservation measures, a lawn and landscape irrigation ordinance, and moderate growth in Denton's reuse program, was mildly exceeded, with a per - capita savings by 2008 of 10 gpcd. This savings is a reflection of the effects of conservation programs referenced above, but could also have been caused by weather variability. Current conservation measures include savings from state required low -flow plumbing fixtures, the implementation of the federal clothes washer standards, increasing water prices over time, and the water conservation components of Denton's current plan (detailed in the following sections of the Plan). During the second review of Denton's Conservation Plan, resulting in this report, it was found that DWU exceeded the 2014 goal of 18 gpcd reduction. 2013 data shows a 21 gpcd reduction since 2005, 3 gpcd beyond the goal and 1 year prior to the target date. The specific per- capita water use reduction estimates in Table 1 are based largely on the Region C planning group water savings estimates for Denton. However, Denton's estimates are slightly more conservative than the estimates provided by Region C. Water Conservation and Drought Contingency Plan City of Denton Table 1 Five and Ten Year Water Savings Targets Unit Unit 2000 2005 2009 2014 2019 2024 City of Denton 80,537 98,965 111,814 118,468 127,052 138,565 Population Gallons PerCapita per gpcd 189 179 160 158 155 152 Day Savings from Low -Flow Fixtures and Federal gpcd 1.1 3 5 Clothes Washer Standard Savings from gpcd .4 1.5 2.5 Conservation Measures Savings from Reuse gpcd .5 .5 .5 Projected Per - Capita gpcd 2 5 8 Savings Projected Per - Capita percent 1.3% 3.1% 5% Reduction Actual Per - Capita gpcd 10 9 Savings Actual percent 5.3% 15.4% Per- CapitaReduction 3.3 Accurate Metering of Raw Water Supplies and Treated Water Deliveries The City of Denton meters all raw water diversions from Lake Lewisville and Lake Ray Roberts to each of the Water Treatment Plants. The City of Denton also meters all treated water deliveries to the distribution system from each water treatment plant. Each meter has an accuracy of plus or minus one percent The meters are calibrated on a semiannual basis by City of Denton personnel to maintain the required accuracy and are repaired or replaced as needed. Water Conservation and Drought Contingency Plan City of Denton 3.4 Metering of Customer and Public Uses and Meter Testing, Repair, and Replacement Water usage for all customers of the City of Denton, including public and governmental use, is metered. As part of the water conservation plan, the City of Denton will continue to implement a meter replacement program. Denton Water Utility (DWU) staff conducted an extensive study in 2004 in which over 2,000 water meters were bench tested for accuracy. In addition a cost - benefit analysis was conducted in order to maximize the efficiency of the meters versus the costs of the replacement program. Based on the study, 3/4 to 2 -inch meters are replaced on a twelve- to fourteen -year cycle. The program focused on replacing the oldest meters in the system first. From 2009 to 2013 DWU has replaced meters to meet the twelve- to fourteen -year cycle. Meters that are 3 -inch or larger are tested every year and repaired or replaced as necessary. In addition, meters registering any unusual or questionable readings are automatically flagged in the billing process and be tested and repaired to restore full functionality. 3.5 Determination and Control of Unaccounted -For Water In 2003, the Texas Water Code (Chapter 16.0121) was amended to require that every five years a retail public utility that provides potable water shall perform and file with the Texas Water Development Board (TWDB) a water audit computing the utility's most recent annual system water loss. DWU filed its first audit, covering Fiscal Year 2005 in the spring of 2006. The next submittal is required in 2015. DWU staff performs a yearly water audit, using the International Water Association/ American Water Works Association (IWA /AWWA) method required by the TWDB. DWU staff has been conducting water audits since the early 1990s. Historically, the City of Denton's unaccounted -for water, based on the older American Water Works Association (AWWA) water audit methodology, has always been less than 10 percent, below the AWWA goal. The City of Denton unaccounted -for water is also below the national average of 12 percent The City of Denton's system has always met the suggested targets of the newer IWA /AWWA methodology as specified by the TWDB Task Force on water conservation. The City of Denton will continue to conduct annual water audits using the IWA /AWWA methodologies. Unaccounted -for water for the City of Denton has varied from 3.3 percent to 7.5 percent in the last five years, with the highest value still under review regarding accuracy of a source meter. Previous audits led to the discovery and correction of a systematic source metering error at the Ray Roberts Water Treatment Plant. Staff will continue to conduct comprehensive water audits annually and take appropriate measure to minimize system water loss. Water Conservation and Drought Contingency Plan City of Denton With the measures described in this plan, the City of Denton intends to maintain the unaccounted -for water below 10 percent in any given year. 3.6 Continuing Public Education and Information Campaign The continuing public education and information campaign on water conservation for the City of Denton includes the following elements: • Promote the City's water conservation measures (presented in Sections 3, 4, and 5). • Encourage voluntary twice -a -week watering schedule for landscape. • Include inserts on water conservation with water bills at least twice per year. Inserts will include material developed by City of Denton staff and material obtained from the TWDB, the TCEQ and other sources that pertain to water conservation, irrigation conservation, and protecting pipes from freezing. • Encourage local media coverage of water conservation issues and the importance of water conservation. • Make the Texas Smartscape materials, water conservation brochures, and other water conservation materials available to the public at the City of Denton Utility Department, other City facilities, and at special events. • Provide a Xeriscape class once a year to promote conservation landscaping and conservation irrigation practices. • Make information pertaining to water conservation and irrigation conservation available online at www.cityofdenton.com and include links to the Texas Smartscape website and to information relating to water conservation on the TWDB and TCEQ web sites. • Offer presentations to local organizations, schools, and civic groups on the importance of water conservation and ways to save water. 3.7 Non - Promotional Water Rate Structure With the intent of encouraging water conservation and discouraging waste and excessive use of water, the City of Denton adopted an increasing block (inverted - block) rate in 1998. In an inverted -block structure the unit price of water increases with increasing water use. The City of Denton employs an inverted -block rate from May through October. The structure consists of four blocks (Table 5 -2). The first block provides enough water to cover a typical household's water usage, Water Conservation and Drought Contingency Plan City of Denton which includes a moderate amount for irrigation. The second, third, and fourth blocks are designed to curb discretionary and seasonal outdoor water use. The inverted -block structure only applies to residential customers. DWU bills commercial customers on a flat rate, but has implemented seasonal pricing on commercial irrigation meters to curb summer peak demand. TABLE 2 DWU Residential Block Rate Structure Less than 15,000 gals $3.70 per thousand gallons 15,001 - 30,000 gals $5.35 30,000- 50,000 gals $7.20 More than 50,000 gals $9.45 TABLE 3 DWU Seasonal Commercial Irrigation Rates Winter (November - April) Summer (May - October) $4.05 per thousand gallons $5.35 per thousand gallons 3.8 Reservoir System Operation Plan The City of Denton has the following rights to divert water from Lake Ray Roberts and Lake Lewisville: • 19.76 MGD from Lake Ray Roberts • 4.34 MGD from Lake Lewisville The City of Denton is the minority water right holder in both reservoirs. The current agreement with the City of Dallas (majority water right holder) delegates comprehensive coordination of reservoir management to the City of Dallas. 3.9 Implementation and Enforcement of the Water Conservation Plan Appendix D contains a copy of the resolution of the City of Denton City Council adopting this water conservation and drought contingency plan. The resolution designates responsible officials to implement and enforce the water conservation and drought contingency plan. Water Conservation and Drought Contingency Plan City of Denton 3.10 Coordination with Regional Water Planning Group The City of Denton will provide a copy of this water conservation and drought contingency plan to the Region C Water Planning Group, which is currently developing the Regional Water Plan. Appendix E includes a copy of a letter sent to the Chair of the Region C Water Planning Group. 4. ADDITIONAL REQUIRED WATER CONSERVATION PLAN CONTENT The Texas Administrative Code also includes additional requirements for water conservation plans for public drinking water suppliers that serve a population of 5,000 people or more and /or a projected population of 5,000 people or more within the next 10 years: • §288.2(a)(2)(A) -Leak Detection, Repair, and Water Loss Accounting -Sections 3.5, 4.1, and 5.5 • §288.2(a)(2)(B) -Record Management System -Section 4.2 • §288.2 (a)(2)(C) -Requirement for Water Conservation Plans by Wholesale Customers -Section 4.3 4.1 Leak Detection and Repair; Pressure Control Measures to control unaccounted -for water are part of the routine operations of the City of Denton. Meter readers, water and wastewater utility personnel, and the public report leaks in the system. Maintenance crews are on -call 24 -hours a day and respond quickly to repair reported leaks. DWU has invested in leak detection and correlator equipment that helps in identifying more leaks and locating leaks more accurately for repair. The City of Denton also proactively decreases water loss through the waterline replacement program. The City of Denton spends approximately $1.5 million per year to repair and replace water distribution lines with two construction and maintenance crews. Areas of the water distribution system in which numerous leaks and line breaks occur are targeted for replacement In 2015, DWU will conduct an analysis on the life cycle of transmission lines. These pipes have an assumed lifespan of 75 years, however the role of these lines within the distribution system makes them critical. The DWU will assess the current condition of existing transmission lines, research pipe maintenance history, and review published research. As a result, DWU will revise the replacement schedule for all existing transmission lines. This is expected to reduce water loss from main breaks by better estimating end of useful live. To reduce real water losses, the City of Denton will maintain a proactive water loss program. As part of this program, the City will implement the following actions: Water Conservation and Drought Contingency Plan City of Denton • Continue to implement the waterline replacement program. • Conduct an analysis to revise the replacement schedule of transmission lines. • Conduct regular inspections of all water main fittings and connections during periods of maintenance and repair. 4.2 Record Management System As required by TAC Title 30, Part 1, Chapter 288, Subchapter A, Rule 288.2(a)(2)(B), the record management system for the City of Denton records water pumped, water delivered, and water sold. However, the City of Denton's record management system does not allow for the separation of water sales and uses into residential, commercial, public /institutional, and industrial categories as required. The current billing system separates sales and uses into residential, commercial, and wholesale user classes. Staff is investigating available options to bring the record management system into compliance. 4.3 Requirement for Water Conservation Plans by Wholesale Customers Each contract for the wholesale sale of water by the City of Denton will include a requirement that the wholesale customer develop and implement a water conservation plan meeting the requirements of Title 30, Part 1, Chapter 288, Subchapter A, Rule 288.2(a)(2)(c) of the Texas Administrative Code. If the customer intends to resell the water, then the contract between the initial supplier and customer must provide that the contract for the resale of the water must have water conservation requirements so that each successive customer in the resale of the water will be required to implement water conservation measures in accordance with applicable provisions of Chapter 288. S. OPTIONAL WATER CONSERVATION PLAN CONTENT TCEQ rules also list optional (not required) conservation strategies, which may be adopted by suppliers to achieve the stated goals of the plan. The following optional strategies are listed in the rules; some are not included in this plan: • §288.2(a)(3)(A) - Conservation Oriented Water Rates - Section 3.7 • §288.2(a)(3)(B) -Ordinances, Plumbing Codes or Rules on Water- Conserving Fixtures -Section 5.1 • §288.2 (a)(3)(C) -Programs for the Replacement or Retrofit of Water- Conserving Plumbing Fixtures in Existing Structures - (Not included in plan) • §288.2(a)(3)(D) -Reuse and Recycling of Wastewater -Section 5.2 Water Conservation and Drought Contingency Plan City of Denton • §288.2(a)(3)(E) -Pressure Control and /or Reduction -(Not included in plan) • §288.2(a)(3)(F) -Landscape Water Management Ordinance -Section 5.3 • §288.2(a)(3)(G) -Monitoring Method -Section 5.4 • §288.2(a)(3)(H) - Other Conservation Methods - Section 5.5 and 5.6 5.1 Ordinances, Plumbing Codes, or Rules on Water - Conserving Fixtures The State of Texas has required 2.5 gpm faucets, 3.0 gpm showerheads, and 1.6 gpf toilets for new construction since 1992. Similar standards are also required under federal law. Denton's Plumbing Code complies with the State of Texas requirements. The implementation of the federal rules requiring energy- conserving clothes washers in 2007 improved the water - efficiency of residential clothes washers. 5.2 Reuse and Recycling of Wastewater The City of Denton's current reuse program delivers approximately 0.5 MGD of reclaimed wastewater effluent The current distribution system has a maximum capacity of 4 MGD. 5.3 Landscape Management Ordinance As part of the development of this water conservation plan, the City of Denton has implemented a lawn and landscape irrigation and water waste ordinance. This ordinance is intended to minimize waste in landscape irrigation and other uses. The ordinance was implemented in 2006, during a drought period when public awareness of the drought was high. The ordinance includes the following elements: • Prohibition of outdoor watering, except by hand and for watering foundations, from 10:00 a.m. to 6:00 p.m. every day from June 1 through September 30. • Requirement that all new irrigation systems include rain and freeze sensors. • Prohibition of designs and installations that spray directly onto impervious surfaces such as sidewalks and roads or onto other non - irrigated areas. • Prohibition of use of poorly maintained sprinkler systems that wastewater. • Requirement that any outside faucet or service line leak be repaired. • Enforcement of the ordinance by a system of warnings followed by fines for continued or repeat violations. Water Conservation and Drought Contingency Plan City of Denton 5.4 Monitoring Method Until such time as there is an industry wide method for monitoring per - capita the City of Denton will use the five -year rolling average suggested by the Texas Water Development Board. 5.5 Customer Water Audit The City of Denton will continue to conduct water audits for single- and multi - family residential customers. The four main purposes are to: educate customers about conservative water use habits and replacement of inefficient toilets, clothes washers, and dishwashers; educate customers about water - efficient showerheads and faucet aerators; identify leaks; and optimize irrigation water usage. The City's auditor will review the water use habits of the customer, inspect the system for leaks and excessive use, and recommend any equipment repairs or changes to increase the efficiency of both the domestic and irrigation water systems. Although overall water savings from residential water audits are minimal, residential water audits are crucial to maintaining good customer relations particularly related to high billing complaints. In 2014, the City of Denton will explore new organizational options that would allow for expansion of the water audit program. In addition to increasing availability of personnel for residential water audits, DWU will begin to expand its focus to commercial customers. As Denton's highest volume water customers are in the commercial sector, commercial water efficiency is expected to make a significant impact toward overall reductions. 5.6 Park and Athletic Field Conservation The City of Denton will explore the possibility of additional savings by the proper management of park and athletic field irrigation, landscape, and turf practices. The Texas Water Development Board Water Conservation Best Management Practices Guide includes guidelines for water conservation in parks and athletic fields.3 DWU will work with other city departments to determine the potential for water and cost savings by proper management practices and implement them when practical. Water Conservation and Drought Contingency Plan City of Denton 6. DROUGHT CONTINGENCY PLAN 6.1 Introduction The purpose of this drought contingency plan is as follows: • To conserve the available water supply in times of drought and emergency. • To maintain supplies for domestic water use, sanitation, and fire protection. • To protect and preserve public health, welfare, and safety. • To minimize the adverse impacts of water supply shortages. • To minimize the adverse impacts of emergency water supply conditions. 6.2 State Requirements for Drought Contingency Plans This drought contingency plan is consistent with Texas Commission on Environmental Quality (TCEQ) guidelines and requirements for the development of drought contingency plans by public drinking water suppliers, contained in Title 30, Part 1, Chapter 288, Subchapter B, Rule 288.20 of the Texas Administrative Code. This rule is included in Appendix B. TCEQ's minimum requirements for drought contingency plans are addressed in the following subsections of this report: • 288.20(a)(1)(A) - Provisions to Inform the Public and Provide Opportunity for Public Input - Section 6.3 • 288.20(a)(1)(B) - Provisions for Continuing Public Education and Information - Section 6.4 • 288.20(a)(1)(C) - Coordination with the Regional Water Planning Group - Section 6.9 • 288.20(a)(1)(D) - Criteria for Initiation and Termination of Drought Stages - Section 6.5 • 288.20(a)(1)(E) - Drought and Emergency Response Stages - Section 6.6 • 288.20(a)(1)(F) - Specific, Quantified Targets for Water Use Reductions - Section 6.6 • 288.20(a)(1)(G) - Water Supply and Demand Management Measures for Each Stage - Section 6.6 • 288.20(a)(1)(H) - Procedures for Initiation and Termination of Drought Stages - Section 6.6 • 288.20(a)(1)(I) - Procedures for Granting Variances - Section 6.8 • 288.20(a)(1)(J) - Procedures for Enforcement of Mandatory Restrictions - Section 6.7 • 288.20(a)(3) - Consultation with Wholesale Supplier - Not applicable • 288.20(b) - Notification of Implementation of Mandatory Measures - Section 6.6 Water Conservation and Drought Contingency Plan City of Denton 288.20(c) - Review and Update of Plan - Section 6.10TCEQ places additional requirements on wholesale water suppliers in Title 30, Part 1, Chapter 288, Subchapter B, Rule 288.22 of the Texas Administrative Code. This Rule is included in Appendix B. TCEQ's minimum requirements for drought contingency plans are addressed in the following subsections of this report: • 288.22(a)(1) - Provisions to Inform Wholesale - Section 6.3 • 288.22(a)(7) - Water Supply and Demand Management Measures Conform to Texas Water Code 11.039 - Section 6.6 • 288.22(a)(8) - Wholesale Contract Supply Provisions Conform to Texas Water Code 11.039 - Section 6.6 6.3 Provisions to Inform the Public and Opportunity for Public Input The City of Denton provided opportunity for public input in the development of this drought contingency plan in March of 2014 by the following means: • Provided written notice of the proposed plan and the opportunity to comment on the plan by newspaper, posted notice, and notice on City of Denton's web site, www.cityofdenton.com. • A public hearing was held at the City of Denton Council Meeting on April 15, 2014. • The public may comment on updates to the plan. • The plan will be available at the City of Denton's web site www.cityofdenton.com. • The plan will be provided to anyone requesting a copy. • The plan will be provided to Upper Trinity Regional Water District in its capacity as a wholesale customer. The City of Denton shares water rights with the City of Dallas. Denton is the minority water right holder in both water supply reservoirs. Also, Denton is a wholesale customer of the City of Dallas. Due to these factors, it is by design that Denton's Drought Contingency Plan closely resembles Dallas' plan. The need to coordinate Denton's Plan with the Dallas plan is appropriate due to the following reasons: • The water supply reservoirs (Lake Ray Roberts and Lake Lewisville) are shared by the two cities and Denton is the minority water rights holder in both reservoirs. Denton is an untreated water supply customer of Dallas and will be affected by restrictions that may be initiated by the Dallas plan. Water Conservation and Drought Contingency Plan City of Denton • Consistent communication to customers in a television and media market common to many different water utility entities will provide for a more effective implementation of Drought Contingency Plans. 6.4 Provisions for Continuing Public Education and Information The City of Denton will inform and educate the public about its drought contingency plan by the following means: • Making the plan available to the public through the City of Denton web site at www.cityofdenton.com. • Including information about the drought contingency plan on the City of Denton's web site, www.cityofdenton.com. • Upon request, make presentations to local organizations, schools, and civic groups on the drought contingency plan (usually in conjunction with presentations on water conservation programs). • Open public meetings with the Public Utilities Board, Environment Committee, and City Council. Any time the drought contingency plan is activated or the drought stage changes, the City of Denton will notify local media of the issues, the drought response stage, and the specific actions required of the public. The information will also be publicized on the City of Denton web site, www.cityofdenton.com. Billing inserts will be used as appropriate. 6.5 Initiation and Termination of Drought Response Stages 6.5.1 Initiation of Drought Response Stages The Director of Water Utilities or designee may order the implementation of a drought response stage or water emergency when one or more of the trigger conditions for that stage is met. The following actions will be taken when a drought stage is initiated: • The public will be notified through local media. • Wholesale customers will be notified by telephone with a follow -up letter or fax. • If any mandatory provisions of the drought contingency plan are activated, the City of Denton will notify the Executive Director of the TCEQ within 5 business days. The Director of Water Utilities or designee may decide not to order the implementation of a drought response stage or water emergency even though one or more of the trigger criteria for the stage are met Water Conservation and Drought Contingency Plan City of Denton Factors that could influence such a decision include, but are not limited to, the time of the year, weather conditions, the anticipation of replenished water supplies, or the anticipation that additional facilities will become available to meet needs. Trigger Condition Types: The three types of water management conditions are discussed below: For a Type A situation, preservation of the total water supply will be critical and corresponding water management measures should stress overall reductions in water use. This condition is measured by a reduction in lake supply and results from extended drought. The best opportunity to respond to a drought is early in the drought cycle. Drought Contingency measures should stress overall reductions in water demand (i.e., average -day water demand). For a Type B situation, in which the water demand approaches the delivery capacity of the system, the peak water demand will be critical, and corresponding drought contingency measures should stress water -use reductions or shifts to off -peak hours. In this situation, the ultimate goal of Stages 1 and 2 will be to avoid triggering the next stage. A Stage 3 trigger requires immediate and severe water demand reductions. Equipment or system failures that result from increased stresses to the transmission, treatment, or distribution systems can worsen a Type B situation. This condition is a result of an increase in demand. In the short term, this typically occurs during the summer months when irrigation requires more water. In the long term, it could occur if treatment plant or distribution system expansions do not keep pace with the growth in consumer demand. Drought contingency measures should stress reductions in peak water demand or redistribution of the demand to off -peak hours. For a Type C situation where deficiencies limit the supply capacity, both water -use reductions and shifts to off -peak hours may be necessary. Although the area involved may be localized, immediate action requiring water demand reduction is necessary. Depending upon the severity of the triggering conditions, it is feasible that the plan could proceed immediately to implementation of stage 3. This condition is a result of a break in a large transmission main, mechanical failure to one or more large pumps, or production plant breakdown. Contamination of water supplies or other unforeseen occurrences may also instigate this condition. They may arise with little warning and require immediate and /or aggressive actions. Drought contingency measures should stress reductions in peak water demand and /or redistribution of the demand to off -peak hours. Water Conservation and Drought Contingency Plan City of Denton 6.5.2 Termination of Drought Response Stages The Director of Water Utilities or designee may order the termination of a drought response stage or water emergency when the conditions for termination are met or at his /her discretion. The following actions will be taken when a drought stage is terminated: • The public will be notified through local media. • Wholesale customers will be notified by telephone with a follow -up letter or fax. • When any mandatory provisions of the drought contingency plan that have been activated are terminated, the City of Denton will notify the Executive Director of the TCEQ within 5 business days. The Director of Water Utilities or designee may decide not to order the termination of a drought response stage or water emergency even though the conditions for termination of the stage are met Factors that could influence such a decision include, but are not limited to, the time of the year, weather conditions, or the anticipation of conditions that warrant the continuation of the drought stage. Water Conservation and Drought Contingency Plan City of Denton City of Denton CITY OF DENTON Drought Contingency Plan April 2014 6.6 Drought and Emergency Response Stages 6.6.1 Stage 1, Mild 6.6.1.1 Triggering And Termination Conditions For Stage 1, Mild 6.6.1.1.1 Type A Water Management Condition Total raw water supply in (1) Denton and Dallas connected lakes (east and west); or (2) western connected lakes; or (3) eastern connected lakes drops below 65% of the total conservation storage of the lakes 6.6.1.1.2 Type 8 Water Management Condition Water demand reaches or exceeds 85% of delivery capacity for 4 consecutive days 6.6.1.1.3 Type C Water Management Condition • Water demand approaches a reduced delivery capacity for all or part of the system, as determined by MOTH • A major water line breaks, or a pump or system failure occurs, which cause unprecedented loss of capability to provide treated water service • Natural or man -made contamination of the water supply Requirements for Termination: Stage 1 may be terminated when Stage 1 conditions no longer exist and would be unlikely to recur upon termination. 6.6.1.2 Goal For Use Reductions And Actions Available Under Stage 1, Mild The goal for water use reduction under Stage 1, Mild, is a 5 percent reduction of the use that would have occurred in the absence of drought contingency measures. The Director of Water Utilities or a designee can order the implementation of any of the actions listed below, or other actions not listed, as deemed necessary: Water Conservation and Drought Contingency Plan City of Denton City of Denton All Water Users (a) Require that all landscape watering be limited to the day -of -week schedule between the hours of 6:00 PM to 10:OOAM. Irrigation of landscaped areas with hose -end sprinklers, or automatic irrigation systems should be limited to Sundays and Thursdays for customers with a street address ending in an even number (0, 2, 4, 6 or 8) and for locations without addresses and limited to Saturdays and Wednesdays for water customers with a street address ending in an odd number (1, 3, 5, 7 or 9). Apartments, office building complexes or other property containing multiple addresses may be identified by the lowest address number. (b) Encourage reduction in frequency of watering new and first year landscaping. (c) Encourage only initial filling of ornamental fountains. (d) Encourage reduction in frequency of washing or rinsing of vehicles. Use of bucket /container, hand -held hose with positive shut -off valve or commercial car wash is required. (e) Encourage the elimination of draining and refilling of swimming pools. (f) Encourage reduction in frequency of recreational water use including use of faucets, hoses or hydrants. (g) Foundations may be watered on any day of the week between the hours of 10 PM and 6 AM. Foundations may be watered with a soaker hose or a hand -held hose equipped with a positive shutoff nozzle only. (h) Recommend that customers do not hose off paved areas, buildings, windows or other surfaces. City Government (a) Staff will begin review of the problems initiating Stage 1 actions and will identify possible solutions to address the water shortage. (b) Initiate public education campaign teaching and encouraging reduced water use practices. (c) Intensify normal leak detection and repair activities on water pipes and mains. (d) Restrict water use for the irrigation of parks by 25 percent. Park landscape may be irrigated on any day of the week. (e) Only flush newly constructed mains and mains that are essential for water quality maintenance. (f) Encourage 25 percent reduction in frequency of wet street sweeping and city vehicle washing and rinsing. Commercial Customers (a) Identify and encourage voluntary reduction measures by high - volume water users through water use audits. Water Conservation and Drought Contingency Plan City of Denton City of Denton (b) Restrict water use for the irrigation of parks by 25 percent. Park landscape may be irrigated on any day of the week. (c) Reduce water use for landscape nursery stock by 25 percent. (d) Require reduction of water use through day -of -week landscape watering schedule for golf courses. (e) Encourage area restaurants to serve customers water by request only. (f) Encourage hotel /motels to request multiple day patrons to reuse linens instead of changing every day. Interruptible Customers (a) Reduce usage for interruptible customers per contract terms. Wholesale Customer Cities (a) Encourage implementation of like procedures by wholesale customers. Notifications City of Denton • Notify major City departments, by telephone and follow -up memo, of Water Awareness Stage #1 and request voluntary water use reduction. • Stress voluntary elimination of non - essential uses. External Customers • Issue press release, radio and video public service announcement to area media describing Water Awareness Stage #1 and the voluntary restrictions that apply. • Distribute water conservation materials to Denton Independent School District, UNT, TWU and community groups if appropriate. • Post Water Awareness notices at public buildings including city buildings, county buildings and the federal post office. • Encourage reduction of water use through the publication of the voluntary landscape watering schedule and request watering only during off -peak hours. Wholesale Customers • Advise wholesale customers by telephone and follow -up memo, of Water Awareness Stage #1 and request voluntary water use reduction consistent with actions taken by the City of Denton. Water Conservation and Drought Contingency Plan City of Denton City of Denton 6.6.2 Stage 2, Moderate 6.6.2.1 Triggering Conditions For Stage 2, Moderate 6.6.2.1.1 Type A Water Management Condition Total raw water supply in (1) Denton and Dallas connected lakes (east and west); or (2) western connected lakes; or (3) eastern connected lakes drops below 50% of the total conservation storage 6.6.2.1.2 Type 8 Water Management Condition Water demand reaches or exceeds 90% of delivery capacity for 3 consecutive days 6.6.2.1.3 Type C Water Management Condition • Water demand equals a reduced delivery capacity for all or part of the system, as determined by DWU • A major water line breaks, or a pump or system failure occurs, which cause unprecedented loss of capability to provide treated water service • Natural or man -made contamination of the water supply Requirements for Termination: Stage 2 may be terminated when Stage 2 conditions no longer exist and would be unlikely to recur upon termination. 6.6.2.2 Goal For Use Reduction And Actions Available Under Stage 2, Moderate The goal for water use reduction under Stage 2, Moderate, is a 15 percent reduction of the use that would have occurred in the absence of drought contingency measures. The Director of Water Utilities or a designee can order the implementation of any of the actions listed below, or other actions not listed, as deemed necessary: All Water Users (a) Require that all landscape watering be limited to the day -of -week schedule between the hours of 6:00 PM to 10:OOAM. Irrigation of landscaped areas with hose -end sprinklers or automatic irrigation systems should be limited to Thursdays for customers with a street address ending in an even number (0, 2, 4, 6 or 8) and for locations without addresses, and Wednesdays for water customers with a street address ending in an odd number (1, 3, 5, 7 or 9). Apartments, office building complexes or other property containing multiple addresses may be identified by the lowest address number. (b) Restrict operation of ornamental fountains or ponds to initial only filling except where necessary to support aquatic life or where such fountains or ponds are equipped with a recirculation system. Water Conservation and Drought Contingency Plan City of Denton City of Denton (c) Prohibit recreational water use including use of faucets, hoses or hydrants. (d) Restrict washing of any motor vehicle, motorbike, boat, trailer, airplane or other vehicle to the use of a hand -held bucket or a hand -held hose equipped with a positive shutoff nozzle for quick rinses on the designated watering day. Vehicle washing may be done at any time on the immediate premises of a commercial car wash or commercial service station. Further, such washing may be exempted from these regulations if the health, safety, and welfare of the public is contingent upon frequent vehicle cleansing, such as garbage trucks and vehicles used to transport food and perishables. (e) Restrict water use to replacing losses during normal use and replacing evaporation in order to maintain proper water quality and proper operation of the pool equipment. Request that use of water to fill, refill, or add to any indoor or outdoor swimming, wading, or jacuzzi pools be limited to the day -of -week schedule. (f) Prohibit hosing off paved areas, buildings, windows or other surfaces. (g) Foundations may be watered for a two -hour period only between the hours of 10 PM and 6 AM on the designated watering day with soaker or hand -held hose equipped with a positive shutoff nozzle on the watering schedule. City Government (a) Staff will begin review of the problems initiating Stage 2 actions and will identify possible solutions to address the water shortage. (b) Accelerate public education campaign teaching and encouraging reduced water use practices. (c) Restrict flushing of new mains not immediately required to provide service. (d) Continue intensified leak detection and repair activities on water pipes and mains. (e) Restrict water use for the irrigation of parks by 50 percent. Park landscape may be irrigated on any day of the week. (f) Increase enforcement efforts. (g) Reduce frequency of wet street sweeping and city vehicle washing by 50 percent. (h) Use of water from fire hydrants limited to fire fighting, essential distribution system. All other water use from fire hydrants will be by special permit only. Commercial Customers (a) Require day -of -week watering schedule for golf courses. (b) Reduce water use for landscape nursery stock by 50 percent. Water Conservation and Drought Contingency Plan City of Denton City of Denton (c) Restrict water use for the irrigation of parks by 50 percent. Park landscape may be irrigated on any day of the week. Interruptible Customers (a) Reduce usage for interruptible customers per contract terms. Wholesale Customers (a) Require water demand reductions in accordance with contract obligations for wholesale customers. (b) Wholesale water systems asked to abide by City of Denton policy for both internal operations and all retail customers. Reduction in rate of flow controller settings by 10% -20% are optional. Notifications City of Denton • By telephone and attached follow -up memo, notify all major City department water users of Water Watch Stage #2 and the water use restrictions under this stage. Instruct them to implement restrictions on non - essential uses. Use city department contacts in Appendix F. • Coordinate distribution of water emergency plan details, posters, and handouts to customer service representatives, utility dispatch personnel and Denton public access buildings. Retail Customers • TCEQ notified of Stage 2 restrictions. • Issue press release, radio and video public service announcement to area media describing Water Watch Stage #2 and the water use restrictions under this stage. Keep media updated on the water situation. Use media contacts listed in Appendix F. • By telephone and follow -up letter, notify major area water users of Water Watch Stage #2 and the restrictions that apply. Use plant manager contacts listed in Appendix F. • Accelerate public education campaign to promote and encourage efficient water use. • If applicable, notify the U.S. Corp of Engineers by telephone and follow -up letter of the Water Watch Stage #2 conservation measures. Wholesale Customers Advise wholesale customers by telephone and attached letter of the actions taken by the City of Denton in response to Water Watch Stage #2 and require the implementation of like procedures among their customers. Wholesale customer cities shall either impose water use restrictions equivalent to those imposed on Denton's Water Conservation and Drought Contingency Plan City of Denton City of Denton retail customers OR where applicable, Denton may reduce rate -of -flow controller settings by 10% -20%. Use wholesale customer contacts in Appendix F. Penalties • Initiate a 10% rate increase for residential customers for water usage greater than 15,000 gallons per account per 30 days. • Impose a 10% surcharge penalty for commercial and industrial customers for monthly water use above 80% of prior billing volumes for a 30 -day period. • Initiate code enforcement fines for any violation of the Drought Contingency Plan. 6.6.3 Stage 3, Severe 6.6.3.1 Triggering Conditions For Stage 3, Severe 6.6.3.1.1 Type A Water Management Condition Total raw water supply in (1) Denton and Dallas connected lakes (east and west); or (2) western connected lakes; or (3) eastern connected lakes drops below 30% of the total conservation storage 6.6.3.1.2 Type 8 Water Management Condition Water demand reaches or exceeds 95% of delivery capacity for 2 consecutive days 6.6.3.1.3 Type C Water Management Condition • Water demand exceeds a reduced delivery capacity for all or part of the system, as determined by DWU • A major water line breaks, or a pump or system failure occurs, which cause unprecedented loss of capability to provide treated water service • Natural or man -made contamination of the water supply Requirements for Termination: Stage 3 may be terminated when Stage 3 conditions no longer exist and would be unlikely to recur upon termination. 6.6.3.2 Goal For Use Reduction And Actions Available Under Stage 3, Severe The goal for water use reduction under Stage 3, Severe, is a reduction of 20 percent of the use that would have occurred in the absence of drought contingency measures. If the circumstances warrant, the Director of Water Utilities or a designee can set a goal for greater water use reduction. The Director of Water Utilities or a Water Conservation and Drought Contingency Plan City of Denton City of Denton designee can order the implementation of any of the actions listed below, or other actions not listed, as deemed necessary: All Water Users (a) Irrigation of landscape is absolutely prohibited unless otherwise indicated within this section. (b) Use of water to wash any motor vehicle, motorbike, boat, trailer, airplane other vehicle not occurring on the premises of a commercial car wash and commercial service stations and not in the immediate interest of public health, safety, and welfare is prohibited. Further, such vehicle washing at commercial car washes and commercial service stations shall occur only between the hours of 6 PM to 10 AM. (c) The filling, refilling, or adding of water to swimming pools, wading pools, and Jacuzzi type pools is prohibited. Existing pools may add water to replace losses during normal use and to replace evaporation in order to maintain proper water quality and proper operation of the pool equipment. (d) Prohibit operation of ornamental fountains or ponds to initial filling except where necessary to support aquatic life or where such fountains or ponds are equipped with a recirculation system. (e) Foundations may be watered for a two -hour period only between the hours of 10 PM and 6 AM on the designated watering day from Stage 2 with soaker or hand -held hose equipped with a positive shutoff nozzle on the watering schedule. (f) No application for new, additional, expanded, or increased -in -size water service connections, meters, service lines, pipeline extensions, mains, or water service facilities of any kind shall be approved, and time limits for approval of such applications are hereby suspended for such time as this drought response stage or a higher- numbered stage shall be in effect. (g) Permitting of new swimming pools, hot tubs, spas, ornamental ponds and fountain construction is prohibited. (h) Request a 25% reduction of indoor water uses. City Government (a) Wet street sweeping and city vehicle washing or rinsing is prohibited, except when in the immediate interest of public health, safety, and welfare. (b) Restrict water use for the irrigation of parks by 75 percent. Park landscape may be irrigated on any day of the week. (c) Restrict use of water from fire hydrants to fire fighting, essential distribution system maintenance and related activities. All other water use from fire hydrants will be by special permit only. Water Conservation and Drought Contingency Plan City of Denton City of Denton Commercial Customers (a) Restrict watering of golf course greens and tee boxes restricted to the allowed watering hours and the day -of -week watering schedule from Stage 2; watering of other golf course areas and parks is prohibited unless the golf course utilizes a water source other than that provided by the City of Denton. (b) Reduce water use for landscape nursery stock by 75 percent. (c) Restrict water use for the irrigation of parks by 75 percent. Park landscape may be irrigated on any day of the week. Interruptible Customers (a) Service to interruptible customers is temporarily suspended. Wholesale Customers (a) Same external restrictions apply to wholesale suppliers. Notifications City of Denton • Coordinate dissemination of water conservation plan details, posters, and handouts to customer service representatives, utility dispatch personnel and public access buildings. • By telephone and attached follow -up memo, notify all major City department users of Water Warning Stage #3 and of the water use restrictions under this stage. Instruct them to eliminate non - essential uses including street and vehicle washing and operation of ornamental fountains, and to implement restrictions on essential uses. Use same contacts as those listed in Appendix F. Retail Customers • TCEQ notified of Stage 3 restrictions. • Issue press release, radio and video public service announcement to area media describing Water Warning Stage #3 and the water use restrictions under this stage. Keep media updated on the water situation. Use same media contacts as those in Appendix F. • By telephone and follow -up letter, notify major water users of Water Warning #3 and the mandatory water use reduction. Use contacts listed in Appendix F. • Post Water Warning notices at public buildings including city buildings, county buildings, and the federal post office. Water Conservation and Drought Contingency Plan City of Denton City of Denton • If applicable, notify U.S. Corps of Engineers by telephone and attached letter of the Water Warning Stage #3 conservation measures. Wholesale Customers • Advise wholesale customers by telephone and attached letter of actions being taken by the City in response to Water Warning Stage #3 and mandatory implementation of similar procedures among their customers. Wholesale customer cities shall impose water use restrictions equivalent to those imposed on Denton's retail customers or, where applicable, reduce their rate -of -flow controller settings by a percentage determined by the Director of Water Utilities. Appendix F lists wholesale customers that need to be contacted. Penalties • Initiate a 20% rate increase for residential customers for water usage greater than 15,000 gallons per account per 30 days. • Impose a 20% surcharge penalty for commercial and industrial customers for monthly water use above 70% of prior billing volumes for a 30 -day period. • Initiate code enforcement fines for any violation of the Drought Contingency Plan. Water Allocation Retail Customers: During Stages 2 and 3 of the Drought Contingency Plan, DWU may impose a retail water rate increase to discourage water use. All rates for usage in excess of 15,000 gallons per month (per single - family residential account), or any other usage amount above 15,000 gallons per month, as deemed appropriate by the Director, may be increased by an additional 10 percent or any other percentage deemed appropriate by the Director. Wholesale Customers In the event that the triggering criteria specified in Section 6 of the Plan for Stage 3 have been met, the Director is hereby authorized to initiate allocation of water supplies on a pro rata basis in accordance with the latest revision of Texas Water Code Section 11.039. Texas Water Code Section 1.039, Distribution of Water During Shortage, states: Water Conservation and Drought Contingency Plan City of Denton City of Denton (a) If a shortage of water in a water supply not covered by a water conservation plan prepared in compliance with Texas Commission on Environmental Quality or Texas Water Development Board rules results from drought, accident, or other cause, the water to be distributed shall be divided among all customers pro rata, according to the amount each may be entitled to, so that preference is given to no one and everyone suffers alike. (b) If a shortage of water in a water supply covered by a water conservation plan prepared in compliance with Texas Commission on Environmental Quality or Texas Water Development Board rules results from drought, accident, or other cause, the person, association of person, or corporation owning or controlling the water shall divide the water to be distributed among all customers pro rata, according to: 1. the amount of water to which each customer may be entitled; or 2. the amount of water to which each customer may be entitled, less the amount of water the customer would have saved if the customer had operated its water system in compliance with water conservation plan. (c) Nothing in Subsection (a) or (b) precludes the person, association of persons or corporation owning or controlling the water from supplying water to a person who has a prior vested right to the water under the laws of this state. DWU may curtail water deliveries or reduce diversions in accordance with the terms and conditions of its wholesale water supply contracts. If necessary, or if specific contract provisions are not provided for, DWU may curtail water deliveries or reduce diversions in accordance with Texas Water Code Section 11.039. DWU will have authority to restrict flow to its wholesale water customers through the rate -of -flow controllers. The Director will establish pro rata water allocations, determined as a percentage reduction of the wholesale customer's water usage, at the time of implementation. The total volume reduction for each wholesale customer will be calculated monthly, based on average water usage for the previous three years. The Director will establish the percentage reduction based on an assessment of the severity of the water shortage condition and the need to curtail water diversions and /or deliveries, and the percentage reduction may be adjusted periodically by the Director. Once pro rata allocation is in effect, water diversions by, or deliveries to, each wholesale customer will be limited to the allocation established for each month. Water Conservation and Drought Contingency Plan City of Denton City of Denton 6.7 Procedures for Enforcement of Mandatory Restrictions Violations A person commits an offense if he or she knowingly makes, causes, or permits a use of water contrary to the measures implemented in the Drought Contingency Plan. It is presumed that a person has knowingly made, caused, or permitted use of water contrary to the measures implemented if the mandatory measures have been implemented according to the Plan and any one of the following conditions apply: • The Drought Contingency Plan prohibits the manner of use. • The amount of water used exceeds that allowed by the Drought Contingency Plan. • The manner of use or the amount used violates the terms and conditions of a compliance agreement made following a variance granted by the ACM /Utilities. Any person in apparent control of the property where a violation occurs or originates shall be presumed to be the violator, and proof that the violation occurred on the person's property shall constitute a rebuttable presumption that the person in apparent control of the property committed the violation, but any such person shall have the right to show that he /she did not commit the violation. Parents shall be presumed to be responsible for their minor children and proof that a violation, committed by a child, occurred on the property within control of the parents shall constitute a rebuttable presumption that the parent committed the violation. But, any such parent may be excused if he /she proves that he /she had previously directed the child not to use the water as it was used in violation of this Plan and that the parent could not have reasonably known of the violation. Any Code Enforcement Officer, Police Officer, or other city employee designated by the Assistant City Manager /Utilities, may issue a citation to a person he /she reasonably believes to be in violation of this Ordinance. The citation shall be prepared in duplicate and shall contain the name and address of the alleged violator, if known, the offense charged, and shall direct him /her to appear in municipal court on the date shown on the citation. Any person who violates this Plan is guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not less than $250 and not more than $2,000. Each day that one or more provisions in this Plan is violated shall constitute a separate offense. Flow restrictors may be placed in lines after two violations have occurred to limit the amount of water passing through the meter in a 24 -hour period. The City of Denton Utilities reserves the right to temporarily cancel water service to the customer until the situation can be resolved. Services Water Conservation and Drought Contingencv Plan Citv of Denton Citv of Denton discontinued under such circumstances shall be restored only upon payment of a re- connection charge, hereby established at an amount not to exceed $135.00 (or as adjusted by City ordinance), and any other costs incurred by the DWU in discontinuing service. In addition, suitable assurance must be given to the Director that the same action will not be repeated while the Plan is in effect. Compliance with this Plan may also be sought through injunctive relief in the district court. 6.8 Procedures for Granting Variances Granting a Variance The ACM /Utilities may grant variances from the Drought Contingency Plan in special cases to persons demonstrating extreme hardship and need. In order to obtain a variance, the applicant must sign a compliance agreement on forms provided by the ACM /Utilities and approved by the City Attorney. The applicant must agree to use the water only in the amount and manner permitted by the variance. A variance must meet the following conditions: • Granting of a variance must not cause an immediate significant reduction in the City's water supply. • The applicant must demonstrate that the extreme hardship or need is related to the health, safety, or welfare of the person requesting it. • The variance will not adversely affect the health, safety, or welfare of other persons. • No variance is retroactive nor can it justify any violation of this Drought Contingency Plan before its issuance. • The variance will remain in effect during the stage in which it was issued and will expire when the Plan is no longer in effect or a new stage is activated. Revoking a Variance The ACM /Utilities may revoke a variance granted when the Director of Water Utilities determines any one of the following: • Conditions causing initial issuance of the variance are no longer applicable. • Violation of the terms of the compliance agreement. • The health, safety, or welfare of other persons requires revocation. Water Conservation and Drought Contingency Plan City of Denton City of Denton Wholesale Customer Variances The ACM /Utilities may grant variances from the Drought Contingency Plan to wholesale water customers in special cases. Wholesale water customers may request reduced variance allocations for the following conditions: • The designated period does not accurately reflect a wholesale customer's normal water usage. • The customer agrees to transfer part of its allocation to another wholesale customer. • Other objective evidence demonstrates that the designated allocation is inaccurate under present conditions. In order to grant a variance, the applicant must sign a compliance agreement on forms provided by the ACM /Utilities and approved by the City Attorney. No variance shall be retroactive or otherwise justify any violation of this Drought Contingency Plan occurring before the issuance of the variance. 6.9 Coordination with the Regional Water Planning Group The City of Denton is located within the Region C water planning area. Appendix E includes a copy of a letter sent to the Chair of the Region C Water Planning Group ( RCWPG) along with the water conservation and drought contingency plan. 6.10 Review and Update of Drought Contingency Plan As required by TCEQ rules, the City of Denton will review this drought contingency plan every five years, beginning in 2009. The plan will be updated as appropriate based on new or updated information. As the plan is reviewed and subsequently updated, a copy of the revised Drought Contingency Plan will be submitted to the TCEQ and the RCWPG for their records. 7.0 Severability The City of Denton Public Utility Board agrees that sections, paragraphs, sentences, clauses, and phrases of this Drought Contingency Plan are severable. If any phrase, clause, sentence, paragraph, or section of this Drought Contingency Plan is declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs, and sections of this Drought Contingency Plan, since the same would not have been enacted by the Water Conservation and Drought Contingency Plan City of Denton City of Denton City of Denton Public Utility Board without the incorporation into this Drought Contingency Plan of any such unconstitutional phrase clause, sentence paragraph, or section. APPENDIX A List of References 1. Texas Commission on Environmental Quality: "Water Conservation Plans for Municipal Uses by Public Water Suppliers," Texas Administrative Code Title 30 Part I Subchapter A §288.2, effective October 7, 2004 2. Texas Commission on Environmental Quality: "Utility Profile & Water Conservation Plan Requirements for Municipal Water Use by Public Water Suppliers," TCEQ publication 10218 Rev 11 -04 and "Utility Profile & Water Conservation Plan Requirements for Wholesale Public Water Suppliers," TCEQ publication 20162 Rev 11 -04 3. Texas Water Development Board: "Water Conservation Best Management Practices Guide," Report 362, Water Conservation Implementation Task Force, published November 2004 Bryan W. Shaw, Ph.D., P.E., Chairman Toby Baker, Commissioner Zak Covar, Commissioner Richard A. Hyde, P.E., Executive Director EXHIBIT 2 %5� M TEXAS COMMISSION ON ENVIRONMENTAL QUALITY Protecting Texas by Reducing and Preventing Pollution February 28, 2014 Re: Water Conservation Plan/Water Conservation Implementation Report/ Drought Contingency Plan The purpose of this letter is to remind you of the obligation to comply with Texas Commission on Environmental Quality (TCEQ) rules. Certain `eater right holders, retail and wholesale public water suppliers, and irrigation districts are required to submit a Water Conservation Plan (WCP), a Water Conservation Implementation Report (WCIR), or a Drought Contingency Plan (DCP) to the TCEQ by May 1, 2014. The plans and the report are required by Texas Water Code §11.1271, §11.1272, and TCEQ rules in 3o Texas Administrative Code § 288.3o. TAC 288.3o also requires some entities to provide a copy of the WCP to the Texas Water Development Board. The table below provides the requirements that apply to the following entities. Entity Requirements Surface water rights holder -,v/ 1,000 acre -feet for Submit a WCP/ WCIR to TCEQ municipal, industrial, and other non - irrigation uses Provide a copy of the WCP to the TWDB Surface water rights holder w/ 1o,000 acre -feet for Submit a WCP/ WCIR to TCEQ irrigation uses Provide a copy of the WCP to the TWDB Retail Public Water Supplier w/ 3,300 or more Subn14 a DCP Lo TCEQ connections Wholesale Public Water Supplier Submit a DCP to TCEQ Irrigation District Submit a DCP to TCEQ Please submit the required plans and report by May a, 2014 to wcp @tceq.texas.gov. Or mail the report to: Texas Commission on Environmental Quality Resource Protection Team, MC -16o P.O. Box 13087 Austin, TX 78711-3o87 P.O. Box 13087 • Austin, Texas 78711-3o87 - 512- 239 -1000 • tceq.texas.gov How is our customer service? tceq.texas.gov /customersurvey printed on recycled paper 2014 Required Conservation Submittals February xx, 2014 Page 2 Please note that failure to respond by the May 1 deadline is a violation of the Texas Water Code and the TCEQ's rules and may result in enforcement action. For additional information, please contact TCEQ Resource Protection staff at (512) 239 -4691 or visit our website at www.tceq.texas.gov/permitLing/water—rights/consene.htinl. Sincerely, Chris Loft, Team Leader Resource Protection Team Water Availability Division Texas Commission on Environmental Quality EXHIBIT 3 PUBLIC UTILITIES BOARD AGENDA ITEM AGENDA INFORMATION SHEET AGENDA DATE: March 10, 2014 DEPARTMENT: Utility Administration ACM: Howard Martin, Utilities, 349 -8232 SUBJECT Receive a report from staff, hold a discussion, and provide direction concerning Denton's 2014 update to the Water Conservation and Drought Contingency Plan BACKGROUND The City of Denton adopted its original Water Conservation and Drought Contingency Plan (The Plan) on December 7th, 1999. The Plan covers two separate plans for two separate goals and objectives. The Water Conservation Plan addresses long term strategies to reduce water demands on an everyday basis to help the State of Texas cope with growing population with limited new water supplies sources available to be developed to meet this new water demand. The Drought Management Plan addresses short term temporary measures to reduce water demands during droughts and other water system emergencies to manage water demands to extend limited water supplies or match limited supply capacity. Water Conservation Plans are designed to use more water efficiently. Drought Management Plans are designed to reduce water demands on a temporary basis thorough water use restrictions based upon a differentiation of water uses between those considered essential and those considered discretionary. The original 1999 Plan was developed according to criteria established by the Texas Natural Resources Conservation Commission (now called Texas Commission on Environmental Quality (TCEQ)). The Drought Management Plan established drought management measures that were designed to match The City of Dallas Water Utilities Drought Management Plan. This alignment with the Dallas Water Utilities Drought Management Plan was important for several reasons, including the following: 1. Denton's two water supply reservoirs (Lake Lewisville and Lake Ray Roberts) are also major water supply sources for Dallas Water Utilities. 2. Dallas Water Utilities has four other water supply sources (Lakes Grapevine, Ray Hubbard, Tawakoni, and Fork) currently connected to their water supply system with plans to connect a seventh water supply source (Lake Palestine) in the near future. 3. Dallas Water Utilities serves approximately 2.4 million people with approximately 40% of them living in 22 cities that are a part of their wholesale treated water supply customer base. 4. Dallas Water Utilities uses approximately 20 times the amount of water used by the City of Denton. 5. Denton's water conservation efforts would have minimal impact to preserving water supplies within Lake Lewisville and Lake Ray Roberts if similar efforts were not being made by Dallas Water Utilities and their wholesale customer base. This customer base also includes the Upper Trinity Regional Water District and the City of Lewisville that both pull water from Lake Lewisville into their water treatment plants using untreated water supply contracts with Dallas Water Utilities. 6. Although Denton's current water use can be met by their existing water rights from Lake Lewisville and Lake Ray Roberts, our long range water supply plan under the Region C and State of Texas Water Plan depends upon additional water supply purchases from Dallas Water Utilities in the near future. 7. Denton currently has a 30 year untreated water supply contract with Dallas Water Utilities that will expire in 2015. The terms of this contract requires that the City of Denton implement "like measures" to conserve water during a drought period. The 1999 Water Conservation Plan was based upon Texas Water Development Board Best Management Practices (BMPS) designed to reduce per capita water demands. Each water system is unique and the BMPs selected for the original 1999 Water Conservation Plan made more sense for Denton's Water Utilities System and considered several factors including our current and historical per capita water use history and the long term statewide goals for water conservation. In Denton's first formal Water Conservation plan, the established water conservation goals over a 50 year planning period called for a fifteen percent reduction in per capita water demands by the year 2050. These goals also matched the water conservation goals established in the first round of the State Wide Regional Planning Process outlined in Senate Bill 1 adopted by the state legislature after the major drought year of 1996. Per - capita water use, defined by the Texas Water Development Board (TWDB), is the total amount of water diverted and /or pumped for potable water use divided by total population. Per - capita is also commonly referred to as gallons per capita per day (gpcd). TWDB specifies that per- capita be calculated as a five year rolling average. This is meant to smooth out the effects of weather variability from year to year that would hide any trend in per - capita usage. The DWU forecast does much the same thing to gauge total demand, but reduces weather variability by defining `normal,' `wet,' and `dry' years based on historical rainfall observations over several decades. Exhibit 1 shows the 5 year rolling average gpcd as it is reported to TWDB. The Plan was updated in 2005 in response to the passage of HB 2660, requiring quantified 5 -year and 10 -year water savings targets in the Conservation Plan. The 2005 Conservation Plan update set a goal of one percent annual reductions in per- capita usage. Denton's existing Conservation Plan already outlined several conservation practices, including a residential conservation rate structure, waterline replacement program, public awareness and xeriscape programs, an annual internal water audit, and reuse programs meant to meet this goal. After the 2005 Conservation Plan update, staff proposed a water waste ordinance, as an additional conservation measure. The Lawn and Landscape Irrigation and Water Waste Ordinance were subsequently implemented in an accelerated fashion during the drought of 2006. In 2008, DWU also implemented seasonal commercial irrigation pricing as a way to curb summer peak usage, which can be partially attributed to commercial irrigation practices. Staff continues to monitor commercial irrigation usage to gauge the effectiveness of seasonal rates on customer water usage. Staff believes that these practices, in conjunction with the automatic savings reaped from federal requirements for clothes washers implemented in 2007 along with state requirements for low- flow plumbing fixtures in place since 1991, have contributed to a drop in Denton's per- capita water usage. Exhibit 1 shows the general downward trend in per- capita usage coinciding with the implementation of the plan's policies. Although weather variability might have contributed to conservation gains, as in the exceptionally wet year of 2007, or masked extra savings, as in exceptionally dry 2006, staff sees the downward trend as evidence of some impact by the prior Water Conservation Plan's components. Legislative changes to Water Conservation and Drought Contingency Plans: New Submittal Dates Effective January 1, 2008 Title 30 Chapter 288 of the Texas Administrative Code (TAC) entitled Water Conservation Plans, Drought Contingency Plans, Guidelines and Requirements requires the holder of an appropriation of surface water in the amount of 1,000 acre feet a year or more for industrial, municipal, and other non - irrigation uses develop, submit a water conservation plan meeting the requirements of Subchapter A of Chapter 288 to the executive director of the Texas Commission on Environmental Quality and to the Texas Water Development Board no later than May 1, 2009 to coincide with the regional planning group process. In addition, retail public water suppliers providing water service to 3,300 or more connections must also submit a drought contingency plan to the executive director of TCEQ by the same date. Yearly Water Conservation Implementation Report Also effective January 1, 2008 Title 30 Chapter 288 of the Texas Administrative Code requires the holder of an appropriation of surface water in the amount of 1,000 acre feet a year or more to submit a yearly implementation report listing conservation methods used and dates implemented, data about whether conservation targets are being met and explanations of failure to meet targets, and the actual amount of water saved. The first implementation report was due with the May 1, 2009 update to our Conservation Plan. To comply with these regulations, Denton updated their Water Conservation and Drought Contingency Plan in 2009. Updates to plan were largely focused on a re evaluation of the Water Conservation portion of the plan. Denton's previous Drought Contingency Plan already contained quantified targets for water use reductions during times of shortage or drought. These targets were extended to 2019 to meet the 10 -year goal requirement, with a per- capita reduction of one percent per year. The following water conservation components were contained in the 2009 Water Conservation Plan: 1. Conservation Water Rate Structure for Residential Rate Class - comprised of an inverted block rate such that the price of water increases with increasing consumption. 2. Public Awareness and Education Program - includes bill inserts, brochures, a school education program, public speaking engagements, and public service announcements 3. Web Site - DWU maintains a web site with water conservation tips and answers to frequently asked water conservation questions. 4. Xeriscape Program - offers a free semi - annual landscape management class and distributes Texas Smartscape CDs at local events and upon request. 5. Waterline Replacement Program - replaces waterline on a worst -first basis, which is effective in reducing the number of waterline breaks. 6. Annual Internal Water Audit - water accounting system useful for estimating and controlling unaccounted for water. 7. Residential Water Audits - trained staff conduct on site water audits for residential customers, identifying potential water waste and demonstrating water conservation techniques. 8. Effluent Reuse Program - reclaimed wastewater is sold to customers for non potable uses, primarily irrigation. 9. Lawn and Landscape and Water Waste Ordinance — requires homes and businesses to maintain their irrigation systems and restricts watering of sidewalks and pavements and excessive irrigation runoff. 10. Seasonal Commercial Irrigation Water Rate — sends a price signal to commercial, industrial and institutional customers to reduce summer water consumption. 11. Park and Athletic Field Water Audits — to help with improving irrigation, landscaping, and turf management practices at our parks, golf courses, and athletic fields. Since adoption of specific water conservation goals and strategies identified in the 2005 and 2009 Water Conservation Plans, Denton has generally meet its specific goal of a one percent reduction of per- capita water use per year in the previous nine years. In 2000, Denton's five year rolling average per capita water consumption was 173 gpcd. By 2008, it was 164 gpcd and by 2013, it has been reduced to 158 gpcd. This net reduction in per capita water use was 15 gpcd, a 9% reduction over 13 years (or about 0.7% per year reduction). The per capita water use reductions proposed for the 2014 Water Conservation Plan are to target a 2% per five year planning period reduction with targets of 155 gpcd for 2019 and 152 gcpd for 2024. This trend (if sustained over the next 30 years) would get Denton's per capita water consumption down to the 140 gpcd figure within the original 50 year planning period in the 1999 Statewide Regional Water Plan. These goals are shown along with the historic per capita water use trends in Exhibit 2. The 2005 and 2009 Drought Contingency and Water Conservation Plan updates were largely focused on expanding on the Water Conservation Plan, and there were only minor revisions made to the City of Denton's Drought Management Plan on these two updates. However, Dallas Water Utilities was also updating their plans to comply with HB 2660 but staff was only able to see the draft version of their plan shortly before we had to make our recommendations to the PUB and City Council to comply with the deadlines outlined HB 2660. These changes to the Dallas Plan accelerated water use restrictions to the Dallas retail water customers in earlier stages of their Drought Management Plan. To further complicate matters, Dallas Water Utilities made additional changes to their Drought Management Plan in their 2010 update that was completed one year after the May 1, 2009 submittal deadline that their wholesale customer cities complied with. These combined changes to the Dallas Plan resulted in an unintended disconnect between the Denton and Dallas Drought Management Plans. Staff became aware of this disconnect during the fall of 2011 when Dallas prematurely activated Stage 1 of their Drought Management Plan and requested that their wholesale water customer cities do likewise. This problem was addressed in early 2012 when the City of Denton amended their Drought Management Plan to realign the water restriction measures in the four stage drought plan to match those contained in the 2010 Dallas Drought Management Plan. The current plans now restrict outdoor landscape irrigation to twice a week under Stage 1, once a week under Stage 2, and limit irrigation to hand held hoses under Stage 3, with it being a prohibited activity all together under Stage 4. By the time staff was able to revise the City's Drought Management Plan to realign it to match Dallas' Drought Management Plan, the significant spring rains in 2012 broke the current drought conditions in our area and reservoir levels were restored to nearly full conditions. As a result, Denton did not activate our Drought Management Plan back in 2011 -2012 as initially requested by Dallas and has not needed to activate its Drought Management Plan since the summer of 2001. At that time, the Stage 1 and Stage 2 water restrictions in our plan did not require mandatory water use restrictions for our retail and wholesale water customers. Shortly after the City of Denton updated their Drought Management Plan to realign the water use restrictions for the various stages in the plan with the Dallas Plan, the Mayor of Dallas collaborated with the Mayors of Irving, Arlington and Fort Worth to ramp up their Water Waste /Landscape Irrigation Ordinances in their Water Conservation Plans to further restrict landscape irrigation to twice a week all the time, year round, and make this a requirement for all retail water users prior to any activation of their Drought Management Plans. The Dallas Mayor was successfully in getting the Dallas City Council to embrace this water conservation plan initiative and passed an ordinance in 2012 implementing this provision, but the city councils of Irving, Arlington and Fort Worth were not convinced of the merits of this water conservation plan provision and ultimately did not pass this same provision in their communities. With the TCEQ requirement for all water utilities of a certain size and water right holders to update their Water Conservation Plans and Drought Management Plans this year, it is likely this Water Conservation Plan element will be given some consideration by all of Dallas' wholesale water customer cities as well as the Cities of Irving, Arlington and Fort Worth. In addition, the Upper Trinity Regional Water District's Board of Directors approved a similar resolution of support for this water conservation plan provision recommending that all of their wholesale customer cities adopt these twice a week watering restrictions in their Water Conservation Plans. Since having a Water Conservation Plan that closely matches the Water Conservation Plan of Dallas Water Utilities is not as critical as having a Drought Management Plan, Denton staff feels that other factors should be considered in this including: 1. Where is Denton's per capita water use in relationship to that of other cities? 2. Where is Denton's per capita water use in relationship to the long term goal established by the TWDB of 140 gpcd? 3. Denton may have established other Water Conservation BMPs that the other cities in the DFW area have not implemented that have been proven to be equally or more effective in managing water use in their community. 4. Regimenting specific days that water customers must adhere to for landscape irrigation may impose different hardships to some customers that simply are not necessary to implement more efficient use of limited water supplies. For example water customers with automatic sprinklers and those that use hose end sprinkler systems. With existing time of day watering restrictions, hose end sprinkler systems must be moved multiple times manually to cover a yard while automatic sprinkler systems switch from zone to zone automatically. This is much more difficult for hose end irrigators to comply with than water customers with automatic sprinkler systems. 5. Regimenting specific days that water customers must adhere to facilitate water conservation enforcement of twice a week watering but would in theory concentrate irrigation demands over four days of the week that are currently randomly distributed over seven days of the week. For these reasons, staff is currently not recommending implementation of twice a week landscape irrigation as a Water Conservation BMP as a mandatory requirement under the City's current Lawn and Landscape Water Waste Ordinance. However, staff does recommend a more proactive public education program promoting twice a week watering as an everyday practice on a voluntary basis on days of the week that work best for each water customer. This would limit enforceability of this provision /recommendation until we activate Stage 1 of the Drought Management Plan when these would become enforceable restrictions. With the introduction and promotion of the twice a week watering restrictions as a BMP for the City of Dallas's Water Conservation Plan, this created some issues and problems with their current Drought Management Plan since the primary element of their Stage 1 Drought Management Plan was identical to their year round restrictions every day contained in their Water Conservation Plan. This coupled with the acceleration of more stringent water restrictions in the earlier stages of their four stage Drought Management Plan prompted Dallas Water Utilities to revamp their Drought Management Plan this year as a part of their TCEQ required 5 year plan update process. Dallas' revised Drought Management Plan is now a three stage plan with Stage 1 restrictions remaining at twice a week watering, Stage 2 restrictions remaining at once a week watering, and Stage 3 restrictions prohibiting outside watering with the exception of hand held hose watering and soaker hose watering for foundations. Staff is recommending revising the City of Denton's Drought Management Plan to be consistent with the three stage plan recently adopted by the City of Dallas. We will continue to have Type A, B and C trigger conditions, with Type A trigger conditions based upon shared water supplies with the City of Dallas, but Type B and Type C trigger conditions based upon City of Denton Water System capacities (Type B) and unplanned emergency (Type C) conditions /events. The proposed changes to the 2009 City of Denton Water Conservation Plan and Drought Management Plan for the 2014 update are summarized in the Staff presentation - Exhibit 3. OPTIONS 1. Accept the proposed Plan with Staff - suggested modifications. 2. PUB provides direction to Staff for incorporation into the updated Plan. RECOMMENDATION Staff is presenting this information for PUB review and discussion and will bring back a redlined version of the proposed plan changes for review and approval at a later date. PRIOR ACTION /REVIEW (Council, Boards, Commissions) N/A DATE SCHEDULED FOR COUNCIL APPROVAL Staff proposes to brief the City Council on the proposed plan changes at the April 1, 2014 Work Session and will seek approval of the updated plan at the April 15, 2014 Regular Meeting. FISCAL INFORMATION N/A BID INFORMATION N/A EXHIBITS 1. 5 year rolling average per- capita water use history. 2. Five and ten year water conservation goals. 3. Presentation on proposed revisions to the 2009 Water Conservation Plan and the 2012 Drought Management Plan. Respectfully submitted: Jim Coulter General Manager, Water Utilities Prepared by: Tim Fisher, P.E., Water Utility Division Manager EXHIBIT 4 Historical Demand (GPCD) QQ C) 0 P-) IT LO r-- 7-11 C"I 0 T-1 N n ;;t U-) T- 0) 9! � T-I CIA Cri w all Cyl 05 M M C) 0 , 01) M C"), C) CD 01 CD CD � C CD C) -1 -,-1 1-1 191', CIA 131 CT) CIA 1-7� C1 �T (T-i i-7� C-11 0 CD D 01 0 CD CD 0 0 Ci C�, 01 0 Ci 1 -1 -1 -1 -1 -1 — -1 -,-1 -1 � -A rA r- -A C-41, rA r14 CA CIA t f-4 CA EXHIBIT Historical and Projected Demand (GPCD) N EXHIBIT 6 Water Conservation and Drought Contingency Plan City of Denton CITY OF DENTON Water Conservation Plan April 2014 1. INTRODUCTION AND OBJECTIVES Water supply has always been a key issue in the development of Texas. In recent years, the increasing population and economic development in Region C have led to growing demands for water. Additional supplies to meet higher demands will be expensive and difficult to develop. Therefore, it is important that we make efficient use of existing supplies and make them last as long as possible. This will delay the need for new supplies, minimize the environmental impacts associated with developing new supplies, and delay the high cost of additional water supply development. Recognizing the need for efficient use of existing water supplies, the Texas Commission on Environmental Quality (TCEQ) has developed guidelines and requirements governing the development of water laconservation and drought contingency plans for public water suppliers.' The TCEQ guidelines and requirements for water suppliers are included in Appendix B. The City of Denton has adopted this water conservation and drought contingency plan pursuant to TCEQ guidelines and requirements. The objectives of the water conservation plan are: • To reduce water consumption. • To reduce the loss and waste of water. • To identify the level of water reuse. • To improve efficiency in the use of water. • To extend the life of current water supplies by reducing the rate of growth in demand. The objectives of the drought contingency plan are: • To conserve the available water supply in times of drought and emergency. • To maintain supplies for domestic water use, sanitation, and fire protection. • To protect and preserve public health, welfare, and safety. • To minimize the adverse impacts of water supply shortages. • To minimize the adverse impacts of emergency water supply conditions. Formatted: Vertical Alignment: Top Water Conservation and Drought Contingency Plan City of Denton 2. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY RULES 2.1 Conservation Plans The TCEQ rules governing development of water conservation plans for public water suppliers are contained in Title 30, Part 1, Chapter 288, Subchapter A, Rule 288.2 of the Texas Administrative Code, which is included in Appendix B. For the purpose of these rules, a water conservation plan is defined as: "A strategy or combination of strategies for reducing the volume of water withdrawn from a water supply source, for reducing the loss or waste of water, for maintaining or improving the efficiency in the use of water, for increasing the recycling and reuse of water, and for preventing the pollution of water. A water conservation plan may be a separate document identified as such or may be contained within another water management document(s). "l According to TCEQ rules, water conservation plans for public water suppliers must have a certain minimum content (Section 3), must have additional content for public water suppliers that are projected to supply 5,000 or more people in the next ten years (Section 4), and may have additional optional content (Section 5). 2.2 Drought Contingency Plans The TCEQ rules governing development of drought contingency plans for public water suppliers are contained in Title 30, Part 1, Chapter 288, Subchapter B, Rule 288.20 of the Texas Administrative Code, which is included in Appendix B. The rules for wholesale water suppliers are contained in Rule 288.22, included in Appendix B. —For the purpose of these rules, a drought contingency plan is defined as: "A strategy or combination of strategies for temporary supply and demand management responses to temporary and potentially recurring water supply shortages and other water supply emergencies. A drought contingency plan may be a separate document identified as such or may be contained within another water management document(s). "l The drought contingency plan for the City of Denton is contained in Section 6 of this water conservation and drought contingency plan. Water Conservation and Drought Contingency Plan City of Denton 3. MINIMUM REQUIRED WATER CONSERVATION PLAN CONTENT The minimum requirements in the Texas Administrative Code for water conservation plans for public drinking water suppliers covered in this report are as follows: • 288.2 (a)(1) (A) - Utility Profile - Section 3.1 and Appendix C • 288.2(a)(1)(B) - Specification of Goals Before May 1, 2005 - Section 3.2 • 288.2(a)(1)(C) - Specification of Goals After May 1, 2005 - Section 3.2 • 288.2(a)(1)(D) - Accurate Metering- Sections 3.3 and 3.4 • 288.2(a)(1)(E) - Universal Metering- Section 3.4 • 288.2(a)(1)(F) - Determination and Control of Unaccounted Water - Section 3.5 • 288.2(a)(1)(G) - Public Education and Information Program- Section 3.6 • 288.2(a)(1)(H) - Non - Promotional Water Rate Structure - Section 3.7 • 288.2(a)(1)(I) - Reservoir System Operation Plan - Section 3.8 • 288.2 (a)(1)(J) - Means of Implementation and Enforcement - Section 3.9, Appendix D • 2 88.2 (a) (1) (K) - Coordination with Regional Water Planning Group - Section 3.10 and Appendix E TCEQ places additional requirements on wholesale water suppliers in Title 30, Part 1, Chapter 288, Subchapter B, Rule 288.5 of the Texas Administrative Code. —This Rule is included in Appendix B. TCEQ's minimum requirements for water conservation plans are addressed in the following subsections of this report: • 288.5(1)(C) -Maximum Acceptable Unaccounted -For Water Goal -Section 3.5 3.1 Utility Profile Appendix C to this water conservation plan is a water utility profile for the City of Denton, based on the format recommended by the TCEQ.z 3.2 Specification of Water Conservation Goal Specific elements of the Water Conservation Plan are discussed in the subsequent sections of this document. The development of this plan involved the identification and examination of numerous conservation strategies. The conservation strategies chosen for the plan were derived from numerous Water Conservation and Drought Contingency Plan City of Denton sources including state agency recommendations, the Region C planning group, water conservation literature, and the City's existing Water Conservation Plan. Prior to 20914 -5, Denton's water conservation goal was a 15 percent reduction in per capita water use by 2050. This goal was established in Denton's Water Conservation and Drought Contingency Plan adopted December 7, 1999. The City s water conservation goals after May 1, 2005 include the following: • Achieve 2009 per capita water use of 4-89170 gpcd or less, as shown in Table 3 -2 (current target). This represents a reduction of 9 gpcd from year 2000-per--capita water use. • Achieve 2014 per capita water use of 162 gpcd or less, as shown in Table 3 -2 (five -year target). This represents a reduction of 18 gpcd from the year 2000 per--capita water use. • Achieve 2019 per capita water use of 154 gpcd or less, as shown in Table 3 -2 (ten -year target). This represents a reduction of 27 gpcd from year 2000 per--capita water use. The City s conservation goal was articulated in 2005 as a one percent reduction yearly in per- capita usage for ten years. This goal was based on: 1) per- capita reduction goals recommended by the Texas Water Development Board's Task Force on Water Conservation; and 2) an indication in recent data that per capita water demand had started to decline. However, weather patterns over the same period of time were such that declining per capita consumption may have been weather related. MY= Water Conservation and Drought Contingency Plan City of Denton The specific per- capita water use reduction estimates in Table 1 are based largely on the Region C planning group water savings estimates for Denton. However, Denton's estimates are slightly more conservative than the estimates provided by Region C. Table 1 Five and Ten Year Water Savings Targets Unit Unit 2000 2005 2009 2014 2019 2024a-- City of Denton 80,537 98,965 111.814 118.468 127.052 138.565 Population Gallons peer- Capita per gpcd 189 179 160 158 155 152 -- Day Savings from 1Low -fFlow Fixtures and Federal gpcd 4 11.1 3 . 5 Clothes Washer Standard Savings from gpcd .44-.-2- 11 ®5 22 ®5 Conservation Measures Savings from Reuse gpcd 1 52 5- 5 Projected Per - Capita gpcd -9 249 5 8 Savings Projected Per - Capita 11L33 3.10 1n4�" percent Reduction ya r'/e Actual Per - Capita gpcd 10 9 Savings Actual Per - Capital percent 5.3% 15.40 Reduction 3.3 Accurate Metering of Raw Water Supplies and Treated Water Deliveries The City of Denton meters all raw water diversions from Lake Lewisville and Lake Ray Roberts to each of the Water Treatment Plants. The City of Denton also meters all treated water deliveries to the distribution system from each water treatment plant. Each meter has an accuracy of plus or minus one percent. The - Formatted Table Formatted: Centered, Space After: 0 pt Water Conservation and Drought Contingency Plan City of Denton meters are calibrated on a semiannual basis by City of Denton personnel to maintain the required accuracy and are repaired or replaced as needed. 3.4 Metering of Customer and Public Uses and Meter Testing, Repair, and Replacement Water usage for all customers of the City of Denton, including public and governmental use, is metered. As part of the water conservation plan, the City of Denton will continue to implement a meter replacement program. Denton Water Utility (DWU) staff conducted an extensive study in 2004 in which over 2,000 water meters were bench tested for accuracy. In addition a cost - benefit analysis was conducted in order to maximize the efficiency of the meters versus the costs of the replacement program. Based on the study, 3/4 to 2 -inch meters are replaced on a twelve- to fourteen -year cycle. The program focused on replacing the oldest meters in the system first. From 20094 to 201389 DWU has replaced meters to meet the twelve - to fourteen -year cycle. Meters that are 3 -inch or larger are tested every e *e - H0.,,. years and repaired or replaced as necessary. In addition, meters registering any unusual or questionable readings are automatically flagged in the billing process and be tested and repaired to restore full functionality. 3.5 Determination and Control of Unaccounted -For Water In 2003, the Texas Water Code (Chapter 16.0121) was amended to require that every five years a retail public utility that provides potable water shall perform and file with the Texas Water Development Board (TWDB) a water audit computing the utility's most recent annual system water loss. DWU filed its first audit, covering Fiscal Year 2005 in the spring of 2006. —The next submittal is required in 20115. DWU staff performs a yearly water audit, using the International Water Association/ American Water Works Association (IWA /AWWA) method required by the TWDB. —DWU staff has been conducting water audits since the early 1990'' -s. Historically, the City of Denton's unaccounted -for water, based on the older American Water Works Association (AWWA) water audit methodology, has always been less than 10te* percent, below the AWWA goal. The City of Denton unaccounted -for water is also below the national average of 12 percent. The City of Denton's system has always met the suggested targets of the newer IWA /AWWA methodology as specified by the TWDB Task Force on water conservation. Water Conservation and Drought Contingency Plan City of Denton The City of Denton will continue to conduct annual water audits using the IWA /AWWA methodologies. Unaccounted -for water for the City of Denton has varied from 4�."3 .33 percent to -3 TS percent in the last five years with the highest value still under review regarding accuracy of a source meter. Previous audits led to the discovery and correction of a systematic source metering error at the Ray Roberts Water Treatment Plant. Staff will continue to conduct comprehensive water audits annually and take appropriate measure to minimize system water loss. With the measures described in this plan, the City of Denton intends to maintain the unaccounted -for water below 10 percent in any given year. 3.6 Continuing Public Education and Information Campaign The continuing public education and information campaign on water conservation for the City of Denton includes the following elements: • Promote the City's water conservation measures (presented in Sections 3, 4, and 5). • Encourage voluntary twice -a -week watering schedule for landscape. • Include inserts on water conservation with water bills at least twice per year. Inserts will include material developed by City of Denton staff and material obtained from the TWDB, the TCEQ and other sources that pertain to water conservation, irrigation conservation, and protecting pipes from freezing. • Encourage local media coverage of water conservation issues and the importance of water conservation. • Make the Texas Smartscape materialsC -R water conservation brochures, and other water conservation materials available to the public at the City of Denton Utility Department, other City facilities, and at special events. • Provide a Xeriscape class once a year to promote conservation landscaping and conservation irrigation practices. • Make information pertaining to water conservation and irrigation conservation available online at www.cityofdenton.com and include links to the Texas Smartscape website and to information relating to water conservation on the TWDB and TCEQ web sites. • OfPer €presentations pe wa4ab4^ to local organizations, schools, and civic groups on the importance of water conservation and ways to save water. Water Conservation and Drought Contingency Plan City of Denton 3.7 Non-Promotional Water Rate Structure With the intent of encouraging water conservation and discouraging waste and excessive use of water, the City of Denton adopted an increasing block (inverted - block) rate in 1998. In an inverted -block structure the unit price of water increases with increasing water use. The City of Denton employs an inverted -block rate from May through October. The structure consists of th-Feefour blocks (Table 5 -2). The first block provides enough water to cover a typical household's water usage, which includes a moderate amount for irrigation. The second, third, and fourth blocks are designed to curb discretionary and seasonal outdoor water use. The inverted -block structure only applies to residential customers. DWU bills commercial customers on a flat rate, but has implemented seasonal pricing on commercial irrigation meters to curb summer peak demand. TABLE 2 DWU Residential Block Rate Structure Less than 15,000 gals $3.70 per thousand gallons 15,001 - 30,000 gals $53S4-04 . 30,000- 50,000 gals $7.20, -09 More than 50,000 gals $94S4-94 . TABLE 3 DWU Seasonal Commercial Irrigation Rates Winter (November -Aril) Summer (May - October) $4.05 per thousand gallons $535. per thousand gallons 3.8 Reservoir System Operation Plan The City of Denton has the following rights to divert water from Lake Ray Roberts and Lake Lewisville: • 19.76 MGD from Lake Ray Roberts • 4.34 MGD from Lake Lewisville Water Conservation and Drought Contingency Plan City of Denton The City of Denton is the minority water right holder in both reservoirs. The current agreement with the City of Dallas (majority water right holder) delegates comprehensive coordination of reservoir management to the City of Dallas. 3.9 Implementation and Enforcement of the Water Conservation Plan Appendix D contains a copy of the resolution of the City of Denton City Council adopting this water conservation and drought contingency plan. The resolution designates responsible officials to implement and enforce the water conservation and drought contingency plan. 3.10 Coordination with Regional Water Planning Group The City of Denton will provide a copy of this water conservation and drought contingency plan to the Region C Water Planning Group, which is currently developing the Regional Water Plan. Appendix E includes a copy of a letter sent to the Chair of the Region C Water Planning Group. Water Conservation and Drought Contingency Plan City of Denton 4. ADDITIONAL REQUIRED WATER CONSERVATION PLAN CONTENT The Texas Administrative Code also includes additional requirements for water conservation plans for public drinking water suppliers that serve a population of 5,000 people or more and /or a projected population of 5,000 people or more within the next 10t years: • §288.2(a)(2)(A) - Leak Detection, Repair, and Water Loss Accounting- Sections 3.5, 4.1, and 5.5 • §288.2(a)(2)(B) - Record Management System - Section 4.2 • §288.2(a)(2)(C) - Requirement for Water Conservation Plans by Wholesale Customers - Section 4.3 4.1 Leak Detection and Repair, • Pressure Control Measures to control unaccounted -for water are part of the routine operations of the City of Denton. Meter readers, water and wastewater utility personnel, and the public report leaks in the system. Maintenance crews are on -call 24 -hours a day and respond quickly to repair reported leaks. DWU has invested in leak detection and correlator equipment that will -helps in identifying more leaks and locating leaks more accurately for repair. The City of Denton also proactively decreases water loss through the waterline replacement program. The City of Denton spends approximately $1.5 million per year to repair and replace water distribution lines with two construction and maintenance crews. Areas of the water distribution system in which numerous leaks and line breaks occur are targeted for replacement. To reduce real water losses, the City of Denton will maintain a proactive water loss program. As part of this program, the City will implement the following actions: • Continue to implement the waterline replacement program:; • Conduct an analysis to revise the replacement schedule of transmission lines,; • Conduct regular inspections of all water main fittings and connections during periods of maintenance and repair. Water Conservation and Drought Contingency Plan City of Denton 4.2 Record Management System As required by TAC Title 30, Part 1, Chapter 288, Subchapter A, Rule 288.2(a)(2)(B), the record management system for the City of Denton records water pumped, water delivered, and water sold. However, the City of Denton's record management system does not allow for the separation of water sales and uses into residential, commercial, public /institutional, and industrial categories as required. The current billing system separates sales and uses into residential, commercial, and wholesale user classes. Staff is investigating available options to bring the record management system into compliance. 4.3 Requirement for Water Conservation Plans by Wholesale Customers Each contract for the wholesale sale of water by the City of Denton will include a requirement that the wholesale customer develop and implement a water conservation plan meeting the requirements of Title 30, Part 1, Chapter 288, Subchapter A, Rule 288.2(a)(2)(c) of the Texas Administrative Code. If the customer intends to resell the water, then the contract between the initial supplier and customer must provide that the contract for the resale of the water must have water conservation requirements so that each successive customer in the resale of the water will be required to implement water conservation measures in accordance with applicable provisions of Chapter 288. Water Conservation and Drought Contingency Plan City of Denton 5. OPTIONAL WATER CONSERVATION PLAN CONTENT , - Formatted: Font: 12 pt, Bold Formatted: Normal TCEQ rules also list optional (not required) conservation strategies, which may be adopted by suppliers to achieve the stated goals of the plan. The following optional strategies are listed in the rules; some are not included in this plan: • §288.2(a)(3)(A) - Conservation Oriented Water Rates - Section 3.7 • §288.2 (a)(3)(E) - Ordinances, Plumbing Codes or Rules on Water- Conserving Fixtures - Section 5.1 • §288.2 (a)(3)(C) - Programs for the Replacement or Retrofit of Water- Conserving Plumbing Fixtures in Existing Structures - (Not included in plan) • §288.2(a)(3)(D) - Reuse and Recycling of Wastewater - Section 5.2 • §288.2 (a)(3)(E) - Pressure Control and /or Reduction - (Not included in plan) • §288.2(a)(3)(F) - Landscape Water Management Ordinance - Section 5.3 • §288.2(a)(3)(G) - Monitoring Method - Section 5.4 • §288.2(a)(3)(H) -Other Conservation Methods --Section 5.5 and 5.6 5.1 Ordinances, Plumbing Codes, or Rules on Water- Conserving Fixtures The State of Texas has required 2.5 gpm faucets, 3.0 gpm showerheads, and 1.6 gpf toilets for new construction since 1992. Similar standards are also required under federal law. Denton's Plumbing Code complies with the State of Texas requirements. — i„ Kl4it o *The implementation of the federal rules requiring energy - conserving clothes washers in 2007 will- improved the water - efficiency of residential clothes washers. 5.2 Reuse and Recycling of Wastewater The City of Denton's current reuse program delivers approximately 0.5 MGD of reclaimed wastewater effluent. The current distribution system has a maximum capacity of 4 MGD. The Q1Y 5.3 Landscape Management Ordinance As part of the development of this water conservation plan, the City of Denton has implemented a lawn and landscape irrigation and water waste ordinance. This ordinance is intended to minimize waste in landscape Water Conservation and Drought Contingency Plan City of Denton irrigation and other uses. The ordinance was implemented in 2006, during a drought period when public awareness of the drought was high. The ordinance includes the following elements: • Prohibition of outdoor watering, except by hand and for watering foundations, from 10:00 a.m. to 6:00 p.m. every day from June 1 through September 30. • Requirement that all new irrigation systems include rain and freeze sensors. • Prohibition of designs and installations that spray directly onto impervious surfaces such as sidewalks and roads or onto other non - irrigated areas. • Prohibition of use of poorly maintained sprinkler systems that waste water. • Requirement that any outside faucet or service line leak be repaired. • Enforcement of the ordinance by a system of warnings followed by fines for continued or repeat violations. 5.4 Monitoring Method Until such time as there is an industry wide method for monitoring per- capita the City of Denton will use the five -year rolling average suggested by the Texas Water Development Board. 5.5 Customer WaterAudit The City of Denton will continue to conduct water audits for single- and multi - family residential customers. The four main purposes are to: educate customers about conservative water use habits and replacement of inefficient toilets, clothes washers, and dishwashers; educate customers about water - efficient showerheads and faucet aerators; identify leaks; and optimize irrigation water usage. The City's auditor will review the water use habits of the customer, inspect the system for leaks and excessive use, and recommend any equipment repairs or changes to increase the efficiency of both the domestic and irrigation water systems. Although overall water savings from residential water audits are minimal, residential water audits are crucial to maintaining good customer relations particularly related to high billing complaints. Water Conservation and Drought Contingency Plan City of Denton 5.6 Park and Athletic Field Conservation The City of Denton will explore the possibility of additional savings by the proper management of park and athletic field irrigation, landscape, and turf practices. —The Texas Water Development Board Water Conservation Best Management Practices Guide includes guidelines for water conservation in parks and athletic fields.3 —DWU will work with other city departments to determine the potential for water and cost savings by proper management practices and implement them when practical. Water Conservation and Drought Contingency Plan City of Denton 6. DROUGHT CONTINGENCY PLAN 6.1 Introduction The purpose of this drought contingency plan is as follows: • To conserve the available water supply in times of drought and emergency. • To maintain supplies for domestic water use, sanitation, and fire protection. • To protect and preserve public health, welfare, and safety. • To minimize the adverse impacts of water supply shortages. • To minimize the adverse impacts of emergency water supply conditions. 6.2 State Requirements for Drought Contingency Plans This drought contingency plan is consistent with Texas Commission on Environmental Quality (TCEQ) guidelines and requirements for the development of drought contingency plans by public drinking water suppliers, contained in Title 30, Part 1, Chapter 288, Subchapter B, Rule 288.20 of the Texas Administrative Code. This rule is included in Appendix B. TCEQ's minimum requirements for drought contingency plans are addressed in the following subsections of this report: • 288.20(a)(1)(A) - Provisions to Inform the Public and Provide Opportunity for Public Input - Section 6.3 • 288.20(a)(1)(B) - Provisions for Continuing Public Education and Information - Section 6.4 • 288.20(a)(1)(C) - Coordination with the Regional Water Planning Group - Section 6.9 • 288.20(a)(1)(D) - Criteria for Initiation and Termination of Drought Stages - Section 6.5 • 288.20(a)(1)(E) - Drought and Emergency Response Stages - Section 6.6 • 288.20(a)(1)(F) - Specific, Quantified Targets for Water Use Reductions - Section 6.6 • 288.20(a)(1)(G) - Water Supply and Demand Management Measures for Each Stage - Section 6.6 • 288.20(a)(1)(H) - Procedures for Initiation and Termination of Drought Stages - Section 6.6 • 288.20(a)(1)(I) - Procedures for Granting Variances - Section 6.8 • 288.20(a)(1)(J) - Procedures for Enforcement of Mandatory Restrictions - Section 6.7 • 288.20(a)(3) - Consultation with Wholesale Supplier - Not applicable • 288.20(b) - Notification of Implementation of Mandatory Measures - Section 6.6 Water Conservation and Drought Contingency Plan City of Denton 288.20(c) - Review and Update of Plan - Section 6.10TCEQ places additional requirements on wholesale water suppliers in Title 30, Part 1, Chapter 288, Subchapter B, Rule 288.22 of the Texas Administrative Code. This Rule is included in Appendix B. TCEQ's minimum requirements for drought contingency plans are addressed in the following subsections of this report: • 288.22(a)(1) - Provisions to Inform Wholesale - Section 6.3 • 288.22(a)(7) - Water Supply and Demand Management Measures Conform to Texas Water Code 11.039 - Section 6.6 • 288.22(a)(8) - Wholesale Contract Supply Provisions Conform to Texas Water Code 11.039 - Section 6.6 6.3 Provisions to Inform the Public and Opportunity for Public Input The City of Denton provided opportunity for public input in the development of this drought contingency plan in March of 2014 by the following means: • Provided written notice of the proposed plan and the opportunity to comment on the plan by newspaper, posted notice, and notice on City of Denton's web site, www.cityofdenton.com. • A public hearing was held at the City of Denton Council Meeting_ GenteF at )aix M on April 15 2014 • The public may comment on updates to the plan. • The plan will be available at the City of Denton's web site www.cityofdenton.com. • The plan will be provided to anyone requesting a copy. • The plan will be provided to Upper Trinity Regional Water District in its capacity as a wholesale customer. The City of Denton shares water rights with the City of Dallas. Denton is the minority water right holder in both water supply reservoirs. Also, Denton is a wholesale customer of the City of Dallas. Due to these factors, it is by design that Denton's Drought Contingency Plan closely resembles Dallas' plan. 44;s plan ape pet4eet;Ve 42999 61 „ ; ppi 444 Pallas—pl.,—The need to coordinate Denton's Plan with the Dallas plan is appropriate due to the following reasons: • The water supply reservoirs (Lake Ray Roberts and Lake Lewisville) are shared by the two cities and Denton is the minority water rights holder in both reservoirs) Denton is an untreated water Water Conservation and Drought Contingency Plan City of Denton supply customer of Dallas and will be affected by restrictions that may be initiated by the Dallas plan. • Consistent communication to customers in a television and media market common to many different water utility entities will provide for a more effective implementation of Drought Contingency Plans. 6.4 Provisions for Continuing Public Education and Information The City of Denton will inform and educate the public about its drought contingency plan by the following means: • Making the plan available to the public through the City of Denton web site at www.cityofdenton.com. • Including information about the drought contingency plan on the City of Denton's web site, www.cityofdenton.com. • Upon request, make presentations to local organizations, schools, and civic groups on the drought contingency plan (usually in conjunction with presentations on water conservation programs). • Open public meetings with the Public Utilities Board, Environment Committee, and City Council. Any time the drought contingency plan is activated or the drought stage changes, the City of Denton will notify local media of the issues, the drought response stage, and the specific actions required of the public. The information will also be publicized on the City of Denton web site, www.cityofdenton.com. Billing inserts will be used as appropriate. 6.5 Initiation and Termination of Drought Response Stages 6.5.1 Initiation of Drought Response Stages The Director of Water Utilities or designee may order the implementation of a drought response stage or water emergency when one or more of the trigger conditions for that stage is met. The following actions will be taken when a drought stage is initiated: • The public will be notified through local media. • Wholesale customers will be notified by telephone with a follow -up letter or fax. • If any mandatory provisions of the drought contingency plan are activated, the City of Denton will notify the Executive Director of the TCEQ within 5 business days. Water Conservation and Drought Contingency Plan City of Denton The Director of Water Utilities or designee may decide not to order the implementation of a drought response stage or water emergency even though one or more of the trigger criteria for the stage are met. Factors that could influence such a decision include, but are not limited to, the time of the year, weather conditions, the anticipation of replenished water supplies, or the anticipation that additional facilities will become available to meet needs. Trigger Condition Types: The three types of water management conditions are discussed below For a TypeA situation, preservation of the total water supply will be critical and corresponding water management measures should stress overall reductions in water use. This condition is measured by a reduction in lake suliply and results from extended drought. The best opportunity to respond to a drought is early in the drought cycle. Drought Contingency measures should stress overall reductions in water demand (i.e., average -day water demand). For a Type B situation, in which the water demand approaches the delivery capacity of the system, the peak water demand will be critical, and corresponding drought contingency measures should stress water -use reductions or shifts to off -peak hours. In this situation, the ultimate goal of Stages 17 2, and 2 will be to avoid triggering the next stage. A Stage 34 trigger requires immediate and severe water demand reductions. Equipment or system failures that result from increased stresses to the transmission, treatment, or distribution systems can worsen a Type B situation. This condition is a result of an increase in demand. In the short term, this typically occurs during the summer months when irrigation requires more water. In the long term, it could occur if treatment plant or distribution system expansions do not keep pace with the growth in consumer demand. Drought contingency measures should stress reductions in peak water demand or redistribution of the demand to off -peak hours. For a Type Csituation where deficiencies limit the supply capacity, both water -use reductions and shifts to off -peak hours may be necessary. Although the area involved may be localized, immediate action requiring water demand reduction is necessary. Depending upon the severity of the triggering conditions, it is feasible that the plan could proceed immediately to implementation of stage 3 . This condition is a result of a break in a large transmission main, mechanical failure to one or more large pumps, or production plant breakdown. Contamination of water supplies or other unforeseen occurrences may also instigate this condition. They may arise with little warning and require immediate and /or aggressive actions. Water Conservation and Drought Contingency Plan City of Denton Drought contingency measures should stress reductions in peak water demand and /or redistribution of the demand to off -peak hours. 6.5.2 Termination of Drought Response Stages The Director of Water Utilities or designee may order the termination of a drought response stage or water emergency when the conditions for termination are met or at his /her discretion. The following actions will be taken when a drought stage is terminated: • The public will be notified through local media. • Wholesale customers will be notified by telephone with a follow -up letter or fax. • When any mandatory provisions of the drought contingency plan that have been activated are terminated, the City of Denton will notify the Executive Director of the TCEQ within 5 business days. The Director of Water Utilities or designee may decide not to order the termination of a drought response stage or water emergency even though the conditions for termination of the stage are met. Factors that could influence such a decision include, but are not limited to, the time of the year, weather conditions, or the anticipation of conditions that warrant the continuation of the drought stage. Water Conservation and Drought Contingency Plan City of Denton Water Conservation and Drought Contingency Plan City of Denton rn�k„rar�ra r„rf,,,,,aN r.r;ar Water Conservation and Drought Contingency Plan City of Denton Water Conservation and Drought Contingency Plan City of Denton Water Conservation and Drought Contingency Plan City of Denton Water Conservation and Drought Contingency Plan City of Denton Water Conservation and Drought Contingency Plan City of Denton Water Conservation and Drought Contingency Plan City of Denton Water Conservation and Drought Contingency Plan City of Denton Water Conservation and Drought Contingency Plan City of Denton n n 4- Water Conservation and Drought Contingency Plan City of Denton buildings, • Post Water EmeFgeney buildings, ineluding buildings, Fatles at puNie rnandatopy Gess@�jqp of @11 ql-4sije Watering. Stage Nn .ration eity 9se plant rnanagep eounty eqntaets listed in Appendix and-th-e- 12. e measures. rn5 0 A n r„ Q- t 4m , n Water Conservation and Drought Contingency Plan City of Denton Water Conservation and Drought Contingency Plan City of Denton Water Conservation and Drought Contingency Plan City of Denton Water Conservation and Drought Contingency Plan City of Denton Water Conservation and Drought Contingency Plan City of Denton Water Conservation and Drought Contingency Plan City of Denton Water Conservation and Drought Contingency Plan City of Denton City of Denton CITY OF DENTON ` " ®a*^a��� Drought Contingency Plan a-m . - - � 6.6 Drought and Emergency Response Stages 6.6.1 Stage 1, Mild 6.6.1.1 Triggering And Termination Conditions For Stage 1, Mild 6.6.1.1.1 Type A Water Management Condition Total raw water supply in (1) Denton and Dallas connected lakes (east and west); or (2) western connected lakes; or (3) eastern connected lakes drops below 65% of the total conservation storage of the lakes 6.6.1.1.2 Type 8 Water Management Condition Water demand reaches or exceeds 85% of delivery capacity for 4 consecutive days 6.6.1.1.3 Type C Water Management Condition <-- — — J Formatted: Tab stops: 6.5, Right,Leader: • Water demand approaches a reduced delivery capacity for all or part of the system, as determined by a- - - Formatted: List Paragraph, Bulleted + Level: 1 + Aligned at: 0.25' + Indent at: 0.5 DWU • A major water line breaks, or a pump or system failure occurs, which cause unprecedented loss of capability to provide treated water service • Natural or man -made contamination of the water supply a- - - Formatted: List Paragraph, Bulleted + Level: 1 + Aligned at: 0.25' + Indent at: 0.5 Requirements for Termination: Stage 1 may be terminated when Stage 1 conditions no longer exist and would be unlikely to recur upon termination. 6.6.1.2 Goal For Use Reductions And Actions Available Under Stage 1, Mild The goal for water use reduction under Stage 1, Mild, is a 5 percent reduction of the use that would have occurred in the absence of drought contingency measures. The Director of Water Utilities or a designee can order the implementation of any of the actions listed below, or other actions not listed, as deemed necessary: Water Conservation and Drought Contingency Plan City of Denton City of Denton All Water Users (a) Require that all landscape watering be limited to the day -of -week schedule between the hours of 6:00 PM to 10:OOAM. Irrigation of landscaped areas with hose -end sprinklers, or automatic irrigation systems, seaker heses, drip tieR s}sterri , h~^! held "^sew d c ^+ tilled h, ,.,^ +, should be limited to Sundays and Thursdays for customers with a street address ending in an even number (0, 2, 4, 6 or 8) and for locations without addresses and limited to Saturdays and Wednesdays for water customers with a street address ending in an odd number (1, 3, 5, 7 or 9). Apartments, office building complexes or other property containing multiple addresses may be identified by the lowest address number. (b) Encourage reduction in frequency of watering new and first year landscaping. (c) Encourage only initial filling of ornamental fountains. (d) Encourage reduction in frequency of washing or rinsing of vehicles. ~~ ~^~^~~meRel uUse of bucket /container, hand -held hose with positive shut -off valve or commercial car wash is required. (e) Encourage red!HGtieR iR * ^^ ^�the elimination of draining and refilling of swimming pools. (f) Encourage reduction in frequency of recreational water use including use of faucets, hoses or hydrants. fgLFoundations may be watered on any day of the week between the hours of 10 PM and 6 AM. Foundations may be watered with a soaker hose or a hand -held hose equipped with a positive shutoff nozzle only. ihl Recommend that customers do not hose off paved areas, buildings, windows or other surfaces. City Government (a) Staff will begin review of the problems initiating Stage 1 actions and will identify possible solutions to address the water shortage. (b) Initiate public education campaign teaching and encouraging reduced water use practices. (c) Intensify normal leak detection and repair activities on water pipes and mains. -- - - J Formatted: Tab stops: 6.5', Right,Leader: a- - - Formatted: Indent: Left: 0.5 ", No bullets or numbering water use for the irrigation of parks by 25 percent. Park landscape may be irrigated on any day of the week. eLOnly flush newly constructed mains and mains that are essential for water quality maintenance. (f) Encourage 25 percent reduction in frequency of wet street sweeping and city vehicle washing and rinsin . Water Conservation and Drought Contingency Plan City of Denton City of Denton Commercial Customers (a) Identify and encourage voluntary reduction measures by high - volume water users through water use audits. (b) Restrict water use for the irrigation of parks by 25 percent. Park landscape may be irrigated on any day of the week. (c) Ii n ed ` eR iRReduce water use for landscape nursery stock by 25 percent. (d) Require reduction of water use through day -of -week landscape watering schedule for golf courses. (e) Encourage area restaurants to serve customers water by request only. (f) Encourage hotel /motels to request multiple day patrons to reuse linens instead of changing every day. Interruptible Customers (a) Reduce usage for interruptible customers per contract terms. Wholesale Customer Cities (a) Encourage implementation of like procedures by wholesale customers. Notifications City of Denton • Notify major City departments, by telephone and follow -up memo, of Water Awareness Stage #1 and request voluntary water use reduction. • Stress voluntary elimination of non - essential uses. External Customers • Issue press release, radio and video public service announcement to area media describing Water Awareness Stage #1 and the voluntary restrictions that apply. • Distribute water conservation materials to Denton Independent School District, UNT, TWU and community groups if appropriate. • Post Water Awareness notices at public buildings including city buildings, county buildings and the federal post office. • Encourage reduction of water use through the publication of the voluntary landscape watering schedule and request watering only during off -peak hours. -- - - J Formatted: Tab stops: 6.5', Right,Leader: Water Conservation and Drought Contingency Plan City of Denton City of Denton Wholesale Customers • Advise wholesale customers by telephone and follow -up memo, of Water Awareness Stage #1 and request voluntary water use reduction consistent with actions taken by the City of Denton. 6.6.2 Stage 2, Moderate 6.6.2.1 Triggering Conditions For Stage 2, Moderate 6.6.2.1.1 Type A Water Management Condition Total raw water supply in (1) Denton and Dallas connected lakes (east and west); or (2) western connected lakes; or (3) eastern connected lakes drops below X50% of the total conservation storage 6.6.2.1.2 Type 8 Water Management Condition Water demand reaches or exceeds 90% of delivery capacity for 3 consecutive days 6.6.2.1.3 Type C Water Management Condition -- - - J Formatted: Tab stops: 6.5', Right,Leader: • Water demand equals a reduced delivery capacity for all or part of the system, as determined by DWU a- - - Formatted: List Paragraph, Bulleted + Level: 1 + Aligned at: 0.34" + Indent at: 0.59" • A major water line breaks, or a pump or system failure occurs, which cause unprecedented loss of capability to provide treated water service • Natural or man -made contamination of the water supply a- - - Formatted: List Paragraph, Bulleted + Level: 1 + Aligned at: 0.34" + Indent at: 0.59" Requirements for Termination: Stage 2 may be terminated when Stage 2 conditions no longer exist and would be unlikely to recur upon termination. 6.6.2.2 Goal For Use Reduction And Actions Available Under Stage 2, Moderate The goal for water use reduction under Stage 2, Moderate, is a 15 percent reduction of the use that would have occurred in the absence of drought contingency measures. The Director of Water Utilities or a designee can order the implementation of any of the actions listed below, or other actions not listed, as deemed necessary: All Water Users (a) Require that all landscape watering be limited to the day -of -week schedule between the hours of 6:00 PM to 10:OOAM. Irrigation of landscaped areas with hose -end sprinklers or automatic irrigation systems should be limited to Thursdays for customers with a street address ending in an even number (0, 2, 4, 6 Water Conservation and Drought Contingency Plan City of Denton City of Denton a- - - Formatted: Tab stops: 6.5', Right,Leader: or 8) and for locations without addresses, and Wednesdays for water customers with a street address ending in an odd number (1, 3, 5, 7 or 9). Apartments, office building complexes or other property containing multiple addresses may be identified by the lowest address number. (b) RestFiet Restrict operation of ornamental fountains or ponds to initial only filling except where necessary to support aquatic life or where such fountains or ponds are equipped with a recirculation system. (c) Prohibit recreational water use including use of faucets, hoses or hydrants, whit" Hse wale (d) Restrict washing of any motor vehicle, motorbike, boat, trailer, airplane or other vehicle to the use of a hand -held bucket or a hand -held hose equipped with a positive shutoff nozzle for quick rinses on the designated watering day.— Vehicle washing may be done at any time on the immediate premises of a commercial car wash or commercial service station. Further, such washing may be exempted from these regulations if the health, safety, and welfare of the public is contingent upon frequent vehicle cleansing, such as garbage trucks and vehicles used to transport food and perishables. ^y 4 � (e) Restrict water use to replacing losses during normal use and replacing evaporation in order to maintain proper water quality and proper operation of the pool equipment. Request that use of water to fill, refill, or add to any indoor or outdoor swimming, wading, or jacuzzi pools be limited to the day -of -week schedule. ff_Prohibit hosing off paved areas, buildings, windows or other surfaces. t j Foundations may be watered for a two hour period only between the hours of 10 PM and 6 AM on the designated watering day with soaker or hand -held hose equipped with a positive shutoff nozzle on the watering schedule. City Government (a) Staff will begin review of the problems initiating Stage 2 actions and will identify possible solutions to address the water shortage. (b) Accelerate public education campaign teaching and encouraging reduced water use practices. (c) Restrict flushing of new mains not immediately required to provide service. (d) Continue intensified leak detection and repair activities on water pipes and mains. is City geverRmeRt restr ed to day of week wateriRg sE;"^d i^ water use for the irrigation of parks by 50 percent. Park landscape may be irrigated on any day of the week. Water Conservation and Drought Contingency Plan City of Denton City of Denton Commercial Customers (a) Require day -of -week watering schedule for golf courses. (b) Reduce water use for landscape nursery stock by 50 percent.` --- ^ ^^ * + (c) Restrict water use for the irrigation of parks by 50 percent. Park landscape may be irrigated on any day of the week. Interruptible Customers (a) Reduce usage for interruptible customers per contract terms. Wholesale Customers (a) Require water demand reductions in accordance with contract obligations for wholesale customers. (b) Wholesale water systems asked to abide by City of Denton policy for both internal operations and all retail customers. Reduction in rate of flow controller settings by 10 % -20% are optional. Notifications City of Denton • By telephone and attached follow -up memo, notify all major City department water users of Water Watch Stage #2 and the water use restrictions under this stage. Instruct them to implement restrictions on non - essential uses. Use city department contacts in Appendix F. • Coordinate distribution of water emergency plan details, posters, and handouts to customer service representatives, utility dispatch personnel and Denton public access buildings. -- - - J Formatted: Tab stops: 6.5 ", Right,Leader: a_ _ - Formatted: Heading 5 <-- - - Formatted: Indent: Left: 0.25" Water Conservation and Drought Contingency Plan City of Denton City of Denton Retail Customers • TCEQ notified of Stage 2 restrictions. • Issue press release, radio and video public service announcement to area media describing Water Watch Stage #2 and the water use restrictions under this stage. Keep media updated on the water situation. Use media contacts listed in Appendix F. • By telephone and follow -up letter, notify major area water users of Water Watch Stage #2 and the restrictions that apply. Use plant manager contacts listed in Appendix F. • Accelerate public education campaign to promote and encourage efficient water use. • If applicable, notify the U.S. Corp of Engineers by telephone and follow -up letter of the Water Watch Stage #2 conservation measures. Wholesale Customers Advise wholesale customers by telephone and attached letter of the actions taken by the City of Denton in response to Water Watch Stage #2 and require the implementation of like procedures among their customers. Wholesale customer cities shall either impose water use restrictions equivalent to those imposed on Denton's retail customers OR where applicable, Denton may reduce rate -of -flow controller settings by 10 % -20 %. Use wholesale customer contacts in Appendix F. ® Initiate a 10% rate increase for residential customers for water usage greater than 15,000 gallons per account per 30 days. ® Impose a 10% surcharge penalty for commercial and industrial customers for monthly water use above 80% of prior billing volumes for a 30 -day period. ® Initiate code enforcement fines for any violation of the Drought Contingency Plan. 6.6.3 Stage 3, Severe 6.6.3.1 Triggering Conditions For Stage 3, Severe 6.6.3.1.1 Type A Water Management Condition Total raw water supply in (1) Denton and Dallas connected lakes (east and west); or (2) western connected lakes; or (3) eastern connected lakes drops below 430% of the total conservation storage -- - - J Formatted: Tab stops: 6.5 ", Right,Leader: �- - - Formatted: List Paragraph, Bulleted + Level: 1 + Aligned at: 0.17" + Indent at: 0.42" Water Conservation and Drought Contingency Plan City of Denton City of Denton 6.6.3.1.2 Type 8 Water Management Condition Water demand reaches or exceeds 95% of delivery capacity for 2 consecutive days 6.6.3.1.3 Type C Water Management Condition • Water demand exceeds a reduced delivery capacity for all or part of the system, as determined by DWU • A major water line breaks, or a pump or system failure occurs, which cause unprecedented loss of capability to provide treated water service • Natural or man -made contamination of the water supply Requirements for Termination: Stage 3 may be terminated when Stage 3 conditions no longer exist and would be unlikely to recur upon termination. 6.6.3.2 Goal For Use Reduction And Actions Available Under Stage 3, Severe The goal for water use reduction under Stage 3, Severe, is a reduction of 20 percent of the use that would have occurred in the absence of drought contingency measures. If the circumstances warrant, the Director of Water Utilities or a designee can set a goal for greater water use reduction. The Director of Water Utilities or a designee can order the implementation of any of the actions listed below, or other actions not listed, as deemed necessary: All Water Users (a) -- - - J Formatted: Tab stops: 6.5', Right,Leader: Water Conservation and Drought Contingency Plan City of Denton City of Denton cLThe filling, refilling, or adding of water to swimming pools, wading pools, and Jacuzzi type pools is prohibited '^y ^* -�. Existing pools may add water to replace losses during normal use and to replace evaporation in order to maintain proper water quality and proper operation of the pool equipment. Prohibit operation of ornamental fountains or ponds to initial filline except where necessary to support aquatic life or where such fountains or ponds are equipped with a recirculation system. ef_)_Foundations may be watered for a two -hour period only between the hours of 10 PM and 6 AM on the designated watering day from Stage 2 with soaker or hand -held hose equipped with a positive shutoff nozzle on the watering schedule. (f) No application for new, additional, expanded, or increased -in -size water -Sservice connections, meters, service lines, pipeline extensions, mains, or water service facilities of any kind shall be approved, and time limits for approval of such applications are hereby suspended for such time as this drought response stage or a higher- numbered stage shall be in effect. Permitting of new swimming pools, hot tubs, spas, ornamental ponds and fountain construction is prohibited. ihl Request a 25% reduction of indoor water uses. City Government aLWet street sweeping and city vehicle washing or rinsing is prohibited, except when in the immediate interest of public health, safety, and welfare. bb)— Restrict water use for the irrigation of parks by 75 percent. Park landscape may be irrigated on any day of the week. girl Restrict use of water from fire hydrants to fire fighting, essential distribution system maintenance and related activities. All other water use from fire hydrants will be by special permit only. -- - - J Formatted: Tab stops: 6.5, Right,Leader: {c4 - - - Formatted: Normal, Indent: Left: 0.25', No bullets or numbering Water Conservation and Drought Contingency Plan City of Denton City of Denton Commercial Customers (a) Restrict watering of golf course greens and tee boxes restricted to the allowed watering hours ^+ ^ ^^ 19 onn @Rd G Ann and the day -of -week watering schedule from Stage 2; watering of other golf course areas and parks is prohibited unless the golf course utilizes a water source other than that provided by the City of Denton. (b) Reduce water use for landscape nursery stock by 75 percent.` ater;^,. ^c -c c +he he Fs be R 19 PM and c Ann Rd the day of week g weed le (c) Restrict water use for the irrigation of parks by 75 percent. Park landscape may be irrigated on any day of the week. Interruptible Customers (a) Service to interruptible customers is temporarily suspended. Wholesale Customers (a) Same external restrictions apply to wholesale suppliers. Notifications City of Denton • Coordinate dissemination of water conservation plan details, posters, and handouts to customer service representatives, utility dispatch personnel and public access buildings. • By telephone and attached follow -up memo, notify all major City department users of Water Warning Stage #3 and of the water use restrictions under this stage. Instruct them to eliminate non - essential uses including street and vehicle washing and operation of ornamental fountains, and to implement restrictions on essential uses. Use same contacts as those listed in Appendix F. Retail Customers • TCEQ notified of Stage 3 restrictions. • Issue press release, radio and video public service announcement to area media describing Water Warning Stage #3 and the water use restrictions under this stage. Keep media updated on the water situation. Use same media contacts as those in Appendix F. • By telephone and follow -up letter, notify major water users of Water Warning #3 and the mandatory water use reduction. Use contacts listed in Appendix F. -- - - J Formatted: Tab stops: 6.5', Right,Leader: Water Conservation and Drought Contingency Plan City of Denton City of Denton - - J Formatted: Tab stops: 5.5', Right,Leader: • Post Water Warning notices at public buildings including city buildings, county buildings, and the federal post office. • If applicable, notify U.S. Corps of Engineers by telephone and attached letter of the Water Warning Stage #3 conservation measures. Wholesale Customers Penalties • Initiate a 4820% rate increase for residential customers for water usage greater than 15,000 gallons per account per 30 days. • Impose a 20% surcharge penalty for commercial and industrial customers for monthly water use above 5870% of prior billing volumes for a 30 -day period. • Initiate code enforcement fines for any violation of the Drought Contingency Plan. - - --^ •� - -- ^- -- Water Conservation and Drought Contingency Plan City of Denton City of Denton -- - - J Formatted: Tab stops: 6.5, Right,Leader: {c4 o-- - - Formatted: Normal, Indent: Left: 0.25', No related aetMt�es. bullets or numbering Water Conservation and Drought Contingency Plan City of Denton City of Denton -- - - J Formatted: Tab stops: 6.5', Right,Leader: Water Conservation and Drought Contingency Plan City of Denton City of Denton Water Allocation Retail Customers: During Stages 2 andd- 3 of the Drought Contingency Plan, DWU may impose a retail water rate increase to discourage water use. All rates for usage in excess of 15,000 gallons per month (per single - family residential account), or any other usage amount above 15,000 gallons per month, as deemed appropriate by the Director, may be increased by an additional 10 percent or any other percentage deemed appropriate by the Director. Wholesale Customers In the event that the triggering criteria specified in Section 6 of the Plan for Stage 34 have been met, the Director is hereby authorized to initiate allocation of water supplies on a pro rata basis in accordance with the latest revision of Texas Water Code Section 11.039. Texas Water Code Section 1.039, Distribution of Water During Shortage, states: (a) If a shortage of water in a water supply not covered by a water conservation plan prepared in compliance with Texas Commission on Environmental G &R:� or Texas Water Development Board rules results from drought, accident, or other cause, the water to be distributed shall be divided among all customers pro rata, according to the amount each may be entitled to, so that preference is given to no one and everyone suffers alike. (b) If a shortage of water in a water supply covered by a water conservation plan prepared in compliance with Texas Commission on Environmental Quality T^"^ n .,+,,.. ^ Cells watt., rerarai«;^- or Texas Water Development Board rules results from drought, accident, or other cause, the person, association of person, or corporation owning or controlling the water shall divide the water to be distributed among all customers pro rata, according to: 1. the amount of water to which each customer may be entitled; or -- - - J Formatted: Tab stops: 6.5', Right,Leader: 0 r+ r . 99 .rays) 0 79,16 „t .- - IR4�ate r . lailkRg , e! Hm^s t^,- a 99 day r ed G .de eRferc;e "+ tire fer aRy ,.iatie of the Pre ght CeRti- r 01 1- Water Allocation Retail Customers: During Stages 2 andd- 3 of the Drought Contingency Plan, DWU may impose a retail water rate increase to discourage water use. All rates for usage in excess of 15,000 gallons per month (per single - family residential account), or any other usage amount above 15,000 gallons per month, as deemed appropriate by the Director, may be increased by an additional 10 percent or any other percentage deemed appropriate by the Director. Wholesale Customers In the event that the triggering criteria specified in Section 6 of the Plan for Stage 34 have been met, the Director is hereby authorized to initiate allocation of water supplies on a pro rata basis in accordance with the latest revision of Texas Water Code Section 11.039. Texas Water Code Section 1.039, Distribution of Water During Shortage, states: (a) If a shortage of water in a water supply not covered by a water conservation plan prepared in compliance with Texas Commission on Environmental G &R:� or Texas Water Development Board rules results from drought, accident, or other cause, the water to be distributed shall be divided among all customers pro rata, according to the amount each may be entitled to, so that preference is given to no one and everyone suffers alike. (b) If a shortage of water in a water supply covered by a water conservation plan prepared in compliance with Texas Commission on Environmental Quality T^"^ n .,+,,.. ^ Cells watt., rerarai«;^- or Texas Water Development Board rules results from drought, accident, or other cause, the person, association of person, or corporation owning or controlling the water shall divide the water to be distributed among all customers pro rata, according to: 1. the amount of water to which each customer may be entitled; or -- - - J Formatted: Tab stops: 6.5', Right,Leader: Water Conservation and Drought Contingency Plan City of Denton City of Denton 2. the amount of water to which each customer may be entitled, less the amount of water the customer would have saved if the customer had operated its water system in compliance with water conservation plan. (c) Nothing in Subsection (a) or (b) precludes the person, association of persons or corporation owning or controlling the water from supplying water to a person who has a prior vested right to the water under the laws of this state. DWU may curtail water deliveries or reduce diversions in accordance with the terms and conditions of its wholesale water supply contracts. If necessary, or if specific contract provisions are not provided for, DWU may curtail water deliveries or reduce diversions in accordance with Texas Water Code Section 11.039. DWU will have authority to restrict flow to its wholesale water customers through the rate -of -flow controllers. The Director will establish pro rata water allocations, determined as a percentage reduction of the wholesale customer's water usage, at the time of implementation. The total volume reduction for each wholesale customer will be calculated monthly, based on average water usage for the previous three years. The Director will establish the percentage reduction based on an assessment of the severity of the water shortage condition and the need to curtail water diversions and /or deliveries, and the percentage reduction may be adjusted periodically by the Director. Once pro rata allocation is in effect, water diversions by, or deliveries to, each wholesale customer will be limited to the allocation established for each month. 6.7 Procedures for Enforcement of Mandatory Restrictions Violations A person commits an offense if he or she knowingly makes, causes, or permits a use of water contrary to the measures implemented in the Drought Contingency Plan. It is presumed that a person has knowingly made, caused, or permitted use of water contrary to the measures implemented if the mandatory measures have been implemented according to the Plan and any one of the following conditions apply: • The Drought Contingency Plan prohibits the manner of use. • The amount of water used exceeds that allowed by the Drought Contingency Plan. • The manner of use or the amount used violates the terms and conditions of a compliance agreement made following a variance granted by the ACM /Utilities. -- - - J Formatted: Tab stops: 6.5', Right,Leader: Water Conservation and Drought Contingency Plan City of Denton City of Denton Any person in apparent control of the property where a violation occurs or originates shall be presumed to be the violator, and proof that the violation occurred on the person's property shall constitute a rebuttable presumption that the person in apparent control of the property committed the violation, but any such person shall have the right to show that he /she did not commit the violation. Parents shall be presumed to be responsible for their minor children and proof that a violation, committed by a child, occurred on the property within control of the parents shall constitute a rebuttable presumption that the parent committed the violation. But, any such parent may be excused if he /she proves that he /she had previously directed the child not to use the water as it was used in violation of this Plan and that the parent could not have reasonably known of the violation. Any Code Enforcement Officer, Police Officer, or other city employee designated by the Assistant City Manager /Utilities, may issue a citation to a person he /she reasonably believes to be in violation of this Ordinance. The citation shall be prepared in duplicate and shall contain the name and address of the alleged violator, if known, the offense charged, and shall direct him /her to appear in municipal court on the date shown on the citation. Any person who violates this Plan is guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not less than $250 and not more than $2,000. Each day that one or more provisions in this Plan is violated shall constitute a separate offense. Flow restrictors may be placed in lines after two violations have occurred to limit the amount of water passing through the meter in a 24 -hour period. The City of Denton Utilities reserves the right to temporarily cancel water service to the customer until the situation can be resolved. Services discontinued under such circumstances shall be restored only upon payment of a re- connection charge, hereby established at an amount not to exceed $135.00 (or as adjusted by City ordinance), and any other costs incurred by the DWU in discontinuing service. In addition, suitable assurance must be given to the Director that the same action will not be repeated while the Plan is in effect. Compliance with this Plan may also be sought through injunctive relief in the district court. 6.8 Procedures for Granting Variances Granting a Variance The ACM /Utilities may grant variances from the Drought Contingency Plan in special cases to persons demonstrating extreme hardship and need. In order to obtain a variance, the applicant must sign a compliance agreement on forms provided by the ACM /Utilities and approved by the City Attorney. The applicant must agree -- - - J Formatted: Tab stops: 6.5', Right,Leader: Water Conservation and Drought Contingency Plan City of Denton City of Denton to use the water only in the amount and manner permitted by the variance. A variance must meet the following conditions: • Granting of a variance must not cause an immediate significant reduction in the City's water supply. • The applicant must demonstrate that the extreme hardship or need is related to the health, safety, or welfare of the person requesting it. • The variance will not adversely affect the health, safety, or welfare of other persons. • No variance is retroactive nor can it justify any violation of this Drought Contingency Plan before its issuance. • The variance will remain in effect during the stage in which it was issued and will expire when the Plan is no longer in effect or a new stage is activated. Revoking a Variance The ACM /Utilities may revoke a variance granted when the Director of Water Utilities determines any one of the following: • Conditions causing initial issuance of the variance are no longer applicable. • Violation of the terms of the compliance agreement. • The health, safety, or welfare of other persons requires revocation. Wholesale Customer Variances The ACM /Utilities may grant variances from the Drought Contingency Plan to wholesale water customers in special cases. Wholesale water customers may request reduced variance allocations for the following conditions: • The designated period does not accurately reflect a wholesale customer's normal water usage. • The customer agrees to transfer part of its allocation to another wholesale customer. • Other objective evidence demonstrates that the designated allocation is inaccurate under present conditions. In order to grant a variance, the applicant must sign a compliance agreement on forms provided by the ACM /Utilities and approved by the City Attorney. No variance shall be retroactive or otherwise justify any violation of this Drought Contingency Plan occurring before the issuance of the variance. -- - - J Formatted: Tab stops: 6.5', Right,Leader: Water Conservation and Drought Contingency Plan City of Denton City of Denton - - J Formatted: Tab stops: 6.5', Right,Leader: 6.9 Coordination with the Regional Water Planning Group The City of Denton is located within the Region C water planning area. Appendix E includes a copy of a letter sent to the Chair of the Region C Water Planning Group ( RCWPG) along with the water conservation and drought contingency plan. 6.10 Review and Update of Drought Contingency Plan As required by TCEQ rules, the City of Denton will review this drought contingency plan every five years, beginning in 2009. The plan will be updated as appropriate based on new or updated information. As the plan is reviewed and subsequently updated, a copy of the revised Drought Contingency Plan will be submitted to the TCEQ and the RCWPG for their records. 7.0 Severability The City of Denton Public Utility Board agrees that sections, paragraphs, sentences, clauses, and phrases of this Drought Contingency Plan are severable. If any phrase, clause, sentence, paragraph, or section of this Drought Contingency Plan is declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs, and sections of this Drought Contingency Plan, since the same would not have been enacted by the City of Denton Public Utility Board without the incorporation into this Drought Contingency Plan of any such unconstitutional phrase clause, sentence paragraph, or section. APPENDIX A List of References 1. Texas Commission on Environmental Quality: "Water Conservation Plans for Municipal Uses by Public Water Suppliers," Texas Administrative Code Title 30 Part I Subchapter A §288.2, effective October 7, 2004 2. Texas Commission on Environmental Quality: "Utility Profile & Water Conservation Plan Requirements for Municipal Water Use by Public Water Suppliers," TCEQ publication 10218 Rev 11 -04 and "Utility Profile & Water Conservation Plan Requirements for Wholesale Public Water Suppliers," TCEQ publication 20162 Rev 11 -04 Water Conservation and Drought Contingency Plan City of Denton City of Denton 3. Texas Water Development Board: "Water Conservation Best Management Practices Guide," Report 362, Water Conservation Implementation Task Force, published November 2004 -- - - J Formatted: Tab stops: 6.5', Right,Leader: Public Hearing D AGENDA INFORMATION SHEET AGENDA DATE: April 15, 2014 DIVISION: Planning and Development ACM: John Cabrales, Jr. r SUBJECT Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, approving a Specific Use permit to allow a multifamily apartment development on approximately 4.13 acres of land, generally located on the west side of East Sherman Drive, west of the intersection of East Sherman Drive and Linwood Drive in the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, providing a severability clause and an effective date. The Planning and Zoning Commission recommends denial of the request, 6 -0. A super- majority vote of the City Council will be required to approve this request. BACKGROUND The applicant (Hammond Jones Development) is requesting to construct a multifamily development on approximately 4.13 acres. Pursuant to Subchapter 35.5.2 (Permitted Uses) of the Denton Development Code (DDC), multi - family is allowed within the existing zoning district of NRMU, with approval of a Specific Use Permit (SUP). The proposed multifamily development will be marketed towards students attending nearby Texas Woman's University (TWU). The developer proposes 76 apartment units with a total of 256 bedrooms and a 5,000 square foot clubhouse. The proposed density is 18.4 dwelling units per acre. The density permitted within the NRMU zoning district is 30 dwelling units per acre. Staff contacted TWU and according to the Director of Housing at TWU, the dormitories serving TWU currently have empty beds available for students as of April 1, 2014. Per Section 35.5.2 of the DDC, the property is located within the "Neighborhood Residential" zoning districts category. "The purpose of 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." In addition, Per the Denton Plan, the NRMU zoning district is in the Neighborhood Mixed Use Activity Center classification. The intent of the NRMU district is to support surrounding residential districts and provide neighborhood services vital to the day -to -day activity of a neighborhood with pockets of allowed residential uses. When looking at the zoning map (see Exhibit 3), it becomes clear that the subject site was intended as a neighborhood activity center, centrally located within the surrounding residential areas. Developing the subject site for multifamily housing only does not serve the purpose intended for this area. Agenda Information Sheet April 15, 2014 Page 2 The applicant's proposal for a four -story multifamily complex with a density of 18.4 dwelling units per acre is out of scale with the surrounding neighborhood. The development in the area consists of primarily single family residences and neighborhood services with a maximum of two stories in height. There is a multifamily development located on Bell Avenue; however it is also two stories in height. The scale of the proposed development will dominate the area rather than complement it. Staff sent 24 certified notices of the public hearing to property owners within 200 feet of the subject property and 79 notices to residents and property owners within 500 feet of the property. As of this writing, staff has received four (4) responses from the notified property owners; three (3) in favor of the request and one (1) neutral to the request. During their meeting, the Planning and Zoning Commission expressed concerns regarding the negative impacts the traffic generated by this proposed development would have on the Bell Avenue Historic Conservation District as the students travel to and from TWU. The Planning and Zoning Commission voted to recommend denial of this request at the March 19, 2014, Planning and Zoning Commission meeting. The applicant declined to hold a neighborhood meeting prior to the scheduled Planning and Zoning Commission meeting. OPTIONS 1. Approve as submitted. 2. Approve subject to conditions. 3. Deny. 4. Postpone consideration. 5. Table the item RECOMMENDATION The Planning and Zoning Commission recommends DENIAL of the Specific Use Permit request. The Development Review Committee recommends DENIAL of the Specific Use Permit request. Should the Council decide to approve this request, the Planning and Zoning Commission recommends the following condition: 1. A Traffic Impact Analysis will be required prior to plat approval. PRIOR ACTION /REVIEW (Council, Boards, Commissions) March 19, 2014 Planning and Zoning Commission. Agenda Information Sheet April 15, 2014 Page 3 EXHIBITS 1. Staff Analysis 2. Aerial Map 3. Zoning Map 4. Future Land Use Map 5. Letter from the Applicant 6. Site Plan 7. Building Elevations 8. Clubhouse Elevation 9. Notification Map & Responses 10. Site Photos 11. March 19, 2014, Draft Planning and Zoning Commission Meeting Minutes 12. Ordinance Respectfully submitted: v Brian Lockley, AICP, CPM Prepared by: Planning and Development, Director Cindy Jackson, AICP Senior Planner Exhibit I Staff Analysis CITY OF DENTON DEVELOPMENT REVIEW COMMITTEE STAFF REPORT P &Z Date: March 19, 2014 TYPE: Specific Use Permit CC Date: April 15, 2014 PROJECT #: 513 -0011 Project Number: 513 -0011 Request: A Specific Use Permit (SUP) to allow a multi - family development on 4.13 acre property. Applicant: Mac Jones Hammond Jones Development 4301 Westbank, Building B, Suite 130 Austin, TX 748746 Property Owners: VCJ, LLC 1600 Panther Lane College Station, TX 77840 D'Mar Universal, Inc. 1909 Covington Lane Corinth, TX 76210 Location: The property is located on the west side of E. Sherman Drive, west of the intersection of E. Sherman Drive and Linwood Drive. Size: 4.13 acres + Zoning Designation: Neighborhood Residential Mixed Use (NRMU) Future Land Use: Existing Land Use Case Planner: Cindy Jackson, AICP DRC Recommendation: The Development Review Committee recommends denial of this request for a Specific Use Permit to allow a multifamily residential development. Summary of Analysis: Subchapter 35.5.2.2 of the Denton Development Code requires approval of a Specific Use Permit (SUP) for multi - family dwellings within an NRMU zoning district. The criteria for approval of a SUP is provided in Subchapter 35.6.4 of the Denton Development Code, which states that SUPs shall be issued only if all of the following conditions have been met: 1. That the specific use will be compatible with and not injurious to the use and enjoyment of other property nor significantly diminish or impair property values within the immediate vicinity; The intent of the NRMU district is to support the surrounding residential districts and provide neighborhood services vital to the day -to -day activity of a neighborhood with pockets of allowed residential uses. In addition, the property is within the "Neighborhood Residential" zoning districts category per Section 35.5.2 of the Denton Development Code (DDQ. Per the DDC, "The purpose of 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. " When looking at the zoning map, it becomes clear that the subject site was intended for a neighborhood activity center, centrally located within the surrounding residential areas. Developing the subject site for multifamily housing only, does not serve the purpose intended for this area. 2. That the establishment of the specific use will not impede the normal and orderly development and improvement of surrounding vacant property; The properties surrounding the subject site are already developed. While there is a vacant commercial building adjacent to the site, as well as on one of the tracts of land comprising the subject site, those tracts of undeveloped land which comprise the remainder of the site are the only undeveloped properties in the vicinity. Although most of the surrounding properties are undeveloped, the goal of the NRMU is to provide vital day -to -day neighborhood services and activities to surrounding properties. Approving a Specific Use Permit to develop the property solely for multi family use will retard orderly development of the area and not enhance improvement to the surrounding properties. 3. That adequate utilities, access roads, drainage and other necessary supporting facilities have been or will be provided; The DRC has reviewed this proposed project and have determined that adequate utilities, access road, drainage, and other necessary supporting facilities have been or will he provided. 4. The design, location and arrangement of all driveways and parking spaces provides for the safe and convenient movement of vehicular and pedestrian traffic without adversely affecting the general public or adjacent developments; All proposed driveways and parking spaces will be required to meet the requirements of the Denton Development Code and criteria manuals. The major access is proposed on Sherman Drive. The internal roads will be private and the parking access and location has been designed to minimize vehicular and pedestrian conflicts. 5. That adequate nuisance prevention measures have been or will be taken to prevent or control offensive odor, fumes, dust, noise and vibration; There may be noise and vibration during construction. Typical construction prevention measures will be utilized during construction to minimize the impact. In addition, Section 20 of the City's Nuisance Code Ordinance will regulate dust, noise, and odors emanating from any operations conducted on the property. 6. That directional lighting will be provided so as not to disturb or adversely affect neighboring properties; and Section 35.13.12 of the DDC requires that all lighting within developments other than single family meet certain requirements including one -half foot candle of illumination at the property line, lights shall have protective shields and areas designated for pedestrian use shall provide a minimum of one foot candle of illumination. Demonstrating how this requirement shall be met will be required during building permit review and approval. 7. That there is sufficient landscaping and screening to ensure harmony and compatibility with adjacent property. In the existing zoning district of NRMU, twenty (20%) percent landscaping is required; 40% tree canopy cover, a minimum of 7% of the parking lot shall be landscaped and a minimum of 15% of the required parking shall be covered by tree canopy. The applicant is proposing to provide 24 percent landscaping on the site, 4% above the required minimum. A Type B buffer is being provided between this site and the single family residential site located to the northwest of the subject site. Findings of Fact 1. The request is for Specific Use Permit for a multifamily development on approximately 4.13 acres. The subject site is located in the NRMUzoning district. 2. Prior to the 2002 citywide rezoning, the subject site was zoned General Retail (GR) and Single Family 7 (SF -7). 3. The Future Land Use designation for the site is Existing Land Use. "Within established residential areas, new development should respond to existing development with compatible land uses, patterns, and design standards. The plan recommends that the existing neighborhoods within the city be vigorously protected and preserved. Housing that is compatible with the existing density, neighborhood service and commercial land uses is allowed. " 4. The property is located in the Neighborhood Residential Mixed Use. This zoning district fall within the Neighborhood Mixed Use Activity Center classification in the Denton Plan. Per the Denton Plan, the intent of the Neighborhood Mixed -Use Activity Center is to provide facilities vital to the day -to -day activities of a neighborhood. A neighborhood center might contain a convenience store, small restaurant, personal service shops, church or synagogue, day care, individual office space, and a small park. Developing the subject property solely for multi family use is inconsistent with the goals of the Neighborhood Mixed -Use Centers. The development as proposed will not provide essential neighborhood services intended to be developed within this Neighborhood Mixed- Use Center. 5. The area surrounding the subject site is developed with older, established single family residential neighborhoods. A convenience store, a church, a vacant grocery store, and a vacant nursing home are located directly adjacent to the subject site, all considered to be neighborhood service uses. . 6. City -wide, there are approximately 1,132.89 acres of land located within an NRMU zoning district. 7. The Park Land Dedication Ordinance will apply to this residential development. This is in two sections, the first at time of Platting and the second at time of obtaining a building permit. 8. Sherman Drive is classified as a Primary Major Arterial (135' ROW) per the COD Mobility Plan. 9. Construction of 5-foot wide sidewalk is required along Sherman Drive frontage per Section 1.1.1 of the COD Transportation Criteria Manual. 10. Trip generation calculations and a traffic distribution study will be required at platting. 11. On site detention is required by this development and is required to be designed in accordance with the COD Drainage Criteria Manual. 12. Per COD Solid Waste Criteria Manual, construction of two dual dumpster enclosures is required to accommodate this development. 13. Water is available from the existing 12 -inch main along Sherman Drive, which has sufficient capacity to serve the proposed development. 14. Sewer is available via the existing 8 -inch gravity main that goes through the middle of the site (through the aforementioned easement). Per Applicant's site plan, the proposed buildings would conflict with the existing sewer, thus Applicant would have to re -route the sewer, generally within the proposed west and north drive aisles (and dedicate a corresponding Public Access, Fire lane, and Public Utility Easement). The 8 -inch gravity main has sufficient available capacity to serve the proposed development. 15. The site is comprised of three tracts of land. One tract is developed with a vacant storefront. The remaining two tracts are undeveloped. 16. The subject site and the site to the south and northeast are all zoned NRMU. Adjacent sites to the north are zoned Neighborhood Residential 3 (NR -3) and Neighborhood Residential 4 (NR -4). The property located to the west is zoned Neighborhood Residential Mixed Use 12 (NRMU -12). 17. The anticipated water demand for this development is approximately 89 gallons per minute (GPM) and the anticipated wastewater demand is 53 GPM. 18. The anticipated traffic demand for this development is approximately 505 average annual daily trips, with 51 trips anticipated during P.M. peak hours. 19. This multifamily residential development is intended as housing for students attending TWU. As such, there are no impacts anticipated on local schools. Development Review Committee Based upon the information provided by the applicant and a recent site visit, the Development Review Committee finds that with the recommended conditions the request IS INCONSISTENT with the surrounding land uses and general character of the area, IS INCONSISTENT with the Denton Plan, and is INCONSISTENT with the Denton Development Code. The Planning and Zoning Commission recommend denial of S13 -0011. The Development Review Committee (DRQ recommends denial of S13 -0011. Should the Council decide to approve this request, the Planning and Zoning Commission recommends the following condition: 1. A Traffic Impact Analysis will be required prior to plat approval. GENERAL NOTES NOTE: Approval of this request shall not constitute a waiver or variance from any applicable development requirement unless specifically noted in the conditions of approval and consistent with the Denton Development Code. NOTE: All written comments made in the application and subsequent submissions of information made during the application review process, which are on file with the City of Denton, shall be considered to be binding upon the applicant, provided such comments are not at variance with the Denton Plan, Denton Development Code or other development regulations in effect at the time of development. Surrounding Zoning Designations and Current Land Use Activity: Northwest: NR -4 Single Family Residential North: NRMU, NR -3, and NR -4 Convenience Store, Church and Sin le Famil Residential Northeast: NR -3 Single Family Residential West: East: NRMU -12 NR -3 Vacant Nursing Home (Fairhaven) . Single Family Residential Southwest: South: Southeast: NRMU-12 NRMU NRMU Vacant Nursing Home (Fairhaven) Dry Cleaners and Vacant Grocery Vacant Gas Station Store Source: City of Denton Geographical lnformation System and site visit by City sta J Summary of Surrounding Zoning Designations and Current Land Use Activity: Comprehensive Plan: A. Consistency with Goals, Objectives and Strategies The subject site is located in an "Existing Land Use" future land use designation. The Denton Plan notes that within established residential areas, new development should respond to existing development with compatible land uses, patterns, and design standards. A four story multi - family residential site is not consistent with the intent of both the Existing Land Use category's goal of having new development be compatible with existing development. Developing the site solely for multi - family use will be inconsistent with the intent to provide neighborhood services uses for the surrounding developed properties. B. Land use analysis The area within 1/4 mile radius of the site is comprised of approximately 153.095 acres. Uses within a 1/4 mile radius of the site are limited to townhomes, multifamily uses, religious uses, single family subdivisions and undeveloped land. Specifically, within a 1/4 mile radius, there are approximately 7.94 acres are developed with religious uses, such as churches; 98.09 acres are developed with single - family subdivisions; 3.10 acres are developed with duplexes; 1.55 acres are developed with townhomes; 21.64 acres are developed with multifamily development; 8.22 acres are developed with commercial uses and approximately 12.51 acres remain undeveloped. The applicant is proposing to develop a 76 unit multifamily development on the subject site. Multifamily uses are permitted in the NRMU district only upon approval of a Specific Use Permit to give both staff and the Council an opportunity to determine if the proposed development is appropriate for the area. The purpose of the NRMU district is to provide a neighborhood friendly mixed use activity center. The proposed development is not a mixed use development, and as mentioned earlier, when looking at the location of this NRMU district, it becomes clear that it was intended to be developed as a mixed use neighborhood activity center to serve the adjacent neighborhoods and not only a multi- family residential site. Nearest Elementary, Middle, and High School This multifamily residential development is intended as housing for students attending TWU. As such, there are no impacts anticipated on local schools other than TWU. Nearest Fire, and EMS Station Name of Station Approximate Distance From Subject Property Fire /EMS Fire Station 44 (2110 E Shennan Drive) 1.0 miles f Source: Citv of Denton GIS, Fire Department, and EMS Water and Wastewater Demand and Capacity: A. Estimated Demand and Service Provider: Subject Property Estimated Im act Analysis 4.13 f acres Proposed Demand Adequate to Serve (Yes or No) Pennitted Density 76 Unite Potable Water Consumption (GPD) 89 Yes Wastewater 53 Generation (GPD) yes B. Available Capacity: Water is available from the existing 12 -inch main along Sherman Drive, which has sufficient capacity to serve the proposed development. Sewer is available via the existing 8 -inch gravity main that goes through the middle of the site. This main has sufficient available capacity to serve the proposed development. C. CIP Planned Improvements: None Roadways /Transportation Network: A. Estimated Demand: Subject Property Estimated Im act Analysis Adequate to Serve (Yes 4.13 f acres Proposed Demand or No Average Annual Daily Trips (AADT) 505 Yes PM Peak Hour Trips 51 Yes B. Available Capacity: Sherman Drive has the capacity to accommodate this development. The requirement for a right and /or left turn lane along Sherman Drive into this development will be determined upon platting process. C. Roadway Conditions: Sherman Drive is classified as an improved perimeter street. Sherman Drive is also classified as a Primary Major Arterial (135' ROW) per the COD Mobility Plan. D. CIP Planned Improvements: None Environmental Conditions: A. Environmentally Sensitive Areas: None Any excess parking must be constructed using pervious materials. Indicate on the site plan and project data tabulation those parking spaces to be constructed using pervious materials. Electric: DME has an overhead electric line that provides electric service to Millennium Shell and a commercial space. Adjustment of electric utility facilities in easement will be at the developer's expense. Exhibit 2 Aerial Map Legend Centerline ON I DENT 19famomt Parcels 5 ..... .. DENTOTS Exhibit 3 Zoning Map S13 -001 — �,,�,,�,, t�yll §� ��t „r�iyit, „t �r,�rlys$'sttU�t is t, '. ll tti uti \sll�l)itl1� f �iiiar,l� ,l3s�,�t��s. V1 Linwood Drive i 1 It l7 t i 1 — — 4 1 1 i � t �l�ii� §t}�tlSilr'�y'i(�t"�)�l, In011n , yr1 ! }i{ 1ttl 1 \, 1 1 V ��r i) st )l i - -iysl J `•i Si{ �S � t ty �{ t£ � LepenC r ME �. - ^ ENTO t _ DENTO Exhibit 4 Future Land Use Map S13-0011 I I I I I I I I y r + , I , L_ I r I i L__L__i___I_�_I_______ I I I I I I I ID I I I I + r - -- + r _ _ _ _ _ _ _ _ _ _ _ _ _ I 1, I +I L I `R j , I rrr jar ------------ Site Lr____t____,____- } I +rr I I I I I I 1 I I ... -- -------- Linwood 6rive I r r rr I i I 1 I Lr______1 i Lr _______I I I I Y � . - - I I I I _ I I I 1 I I I I \.• , I i N .A N .. DENTON Exhibit 5 Letter from the A PROJECT NARRATIVE Project_ Description /Summary The Developer desires to construct an apartment complex on the property consisting of 76 units, mainly serving students of Texas Women's University, Located /4 mile from the entrance of TWU, the project will include a pool, on -site management, exercise facility, tanning beds, and other amenities. TWU enrollment, currently at 12,000+ students at the Denton campus, houses only 2,000 of its students on campus, creating great demand for quality, off - campus rental housing. Many TWU students currently drive several miles to live at student housing properties near the University of North Texas, but would rather live in a quality facility closer to their own campus. Currently, that option does not exist as no purpose -built student housing has ever been built near TWU. Site Histo Currently mostly vacant land, the property also includes a small commercial building; which is also currently vacant. At some point in the last 30 years, the front portion of the site was developed as a Howdy Doody and various ether uses, but the building was demolished years. The back portion of the site, to our knowledge, has never been developed, The small commercial building has been used over the years for various retail uses, most recently a country and western apparel store, The site is unplatted. Surroundiva Property Uses There are existing apartment projects and single family homes to the north, although the site backs up to only a couple of these homes and they are not accessible from the site or even from Sherman Dr. To the west is a church and a vacant commercial building which was formerly a Piggly Wiggly. We have heard that a local businessman purchased that site and plans to put a meat market there but we cannot confirm that. To the east is a convenience store and another church. To the south are 2 small retail uses fronting Sherman, then single family behind them. Existiniz Site Conditions Topography: The site is relatively flat but rolls slightly northward from Sherman, approximately 10 feet front to back. Hydrology?: The site appears to drain northward. There are no wetlands, floodplain or flood way. Existing land Uses. See Site history. Existing Circulation: Most of the site is vacant and has no vehicular or pedestrian access and therefore no circulation. The small retail building does have an existing entrance off of Sherman, a small parking lot, and pedestrian access from the parking lot to the bundling. Existing Open Space, Recreation and Preservation Area: As the site is largely undeveloped, there are currently no existing open spaces, or recreation or preservation areas. Existing; Infrastructure and Utilities: The site currently has frontage on Sherman, and has access to all utilities in Sherman. Proposed Site Conditions Proposed Land Uses: Proposed Topography: The site will be developed relatively consistent with the existing topography. Proposed Hydrology: We will be required to detain storm water on site prior to discharge into the drainage system. Proposed land Uses: As stated above, the proposed land use is as a medium - density multifamily project serving students of Texas Woman's University. Proposed Circulation: The proposed project will have at least one vehicular ingress /egress point off of Sherman Drive, and possibly another egress -only point. Circulation within the site will be adequate to access parking for all vehicles — resident, handicap and visitor spaces included. fire access and turn - around capability will be consistent with current City requirements, Pedestrian access will be off of Sherman to the common office /amenity center, and pedestrians will be able to access sidewalks on the interior of the site. Proposed Infrastructure and Utilities: All utilities are currently available to the site and will be utilized. There is existing sewer line running through the site which will need to be relocated. Proposed Open Space, Recreation and Preservation Area The project will consist of sufficient open spaces which will be consistent with current City requirements. Recreation areas provided will included a large courtyard, sport court (provided room is available), and community center which will included an exercise facility, game room, tanning area, kitchen, computer lab and study areas. Residential buildings will be 4 stories and the clubhouse /community center will be one story. The project will be oriented to Sherman Drive and away from the single family neighborhood to the north, meaning that the nearest building to the homes will ber over 100 feet away. The project will be privacy- fenced and also include landscape buffers and screening to absorb any noise and site nuisances, Directional lighting will be utilized to reduce any impact to affected neighboring properties, and sufficient landscaping and screening will be provided to ensure harmony and compatibility with adjacent property. This multifamily use is seen as a good transition to the single family to the north from Sherman, and a better use than some uses which are currently allowed under NRMU zoning without special use permit, such as hotels, bed and breakfasts, laundry facilities, Meeting Balls, schools, or medical centers. Other types of multifamily housing such as elderly housing are already permitted. The project is compatible with surrounding commercial uses on Sherman, which is a large, busy thoroughfare fronted by commercial uses, and will not be injurious to the use of nor diminish the values of surrounding properties. The project should actually enhance the value and potential development of surrounding properties by providing more consumers for the commercial uses already there. The site is currently serviced by public transportation, and we expect the large majority of our tenants, as students of TWU, to walk or bike to class since parking on campus is extremely difficult and expensive. In this way, the proposed use could actually alleviate some traffic pressure currently experienced on University Drive, and at the very least, any increased traffic on Sherman or Bell will be mitigated.' Adequate utilities and access roads already exist at the site, and adequate drainage and detention will provided. Further, the design, location and arrangement of all driveways and parking spaces will provide for safe movement of all vehicular traffic. Adequate parking will be provided, and no off- street parking will be permitted. The proposed use is consistent with the requirements of the Denton Development Code and already allowed by the existing zoning, thus also consistent with the goals, policies and objectives of the Denton Plan. This SUP is addressing the impact of the use, which will be minimal to surrounding properties given the mitigation measures listed herein, the access to a major road such as 'Sherman, the surrounding commercial uses, and the availability of utility infrastructure. We believe this is an appropriate use for this undeveloped site. Given its price, size and proximity to Sherman, it will never be developed as single family homes. Commercial and/or multifamily is the only logical use for this site, and its development as a multifamily project could' also spur enhancement of the surrounding commercial properties, some of which are currently vacant and unused. LEGAL DESCRIPTIONS Tract I Acreage located at 707 E Sherman in Denton, TX, and more specifically described as A0268a J. Carter, Tract 48, Old Dead Tr 1g, and having a Property Tax ID# of 1.45435. Tract 2 Acreage located at 705 E Sherman in Denton, TX, and more specifically described as A0268a J. Carter, Tract. 47, and having a Property Tax lD# of 208147 Tract 3 . Acreage located at 715 E Sherman in Denton, TX, and more specifically described as A0268a J. Carter, Tract 49, and having a Property Tax 1D# of 76388. It R 7k, Exhibit 6 Site Plan Sri 'o —7 "N. Exhibit 6 Site Plan Sri Exhibit 7 Building Elevations CT ..TIFF Exhibit 9 Notification Map and Responses N Legend Neutral Centerline r " S Pd 1� NEI 5 N In Favor ❑ Parcels o eo iaa F i � F��c Public Notification Date: February 28, 2014 200 ft. Legal Notices sent via certified snail: 24 500 ft. Notices sent via regular snail: 79 Number of responses to 200' Legal Notice • In opposition: 0 • In Favor: 3 • Neutral: 1 NOTICE OF PUBLIC HEARING -06 11, The Planning and Zoning Commission of the City of Denton will hold a public hearing on Wednesday, March 19, 2014, and consider making a recommendation to City Council concerning a request for a Specific Use Permit for proposed Multi-family apartment development. The 4.13 acre site is located on the west side of Sherman Drive, west of the intersection of Sherman Drive and Linwood Drive within a Neighborhood Residential Mixed Use (NRMU) zoning district. -reil CVanhew— of Cile Hall located at opinion tip ov 00,11 into -VIYM public, heitring--jIlis in noway.prohOds yW Irom.attending. aud, Par4k4W&gjftjhepubjic hearing.) You may fax it to the number located at the bottom or mail it to the address below or drop it off in-person: Planning and Development Department 221 N, EAm ST Denton, Texas 76201 Ann, Cindy Jackson, Project Manager These forms are used to calculate the percentage of landowners that support and oppose the request. Thp Commission is informed of the percent of responses in support and in opposition- Please circle one: jn favor of request Neutral 16 request Opposed to request f Opp- 7 Reason i Apposition: Signature: Printed name:. A_ rn f A Mailing Address: City, State Zip, I-alephone Number: La__ --411 Physical Address of Property within 200 feet- CITY OF DENTOAF, TEXAS crry HALL WES-r - DvNTON, TrXAG 76201 - 940-349.8541 - (F) 940.3491707 200'P&Z NoWe NOTICE OF PUBLIC HEARING S13-0011 The Planning and Zoning Commission of the City of Denton will hold a public hearing on- Wednesday, March 19, 2014, and consider making a recommendation to City Council concerning a request for a Specific Use Permit for proposed Multi-family apartment development. The 4.13 acre site is located on the west side of Sherman Drive, West of the E of Sherman Drive and Linwood Drive within a Neighborhood Residential Mixed Use (NRMU) zoning district. will start at 6:30 m. in the City Council Chambers of City Hall located at m y 1571 to-F am"IM me numaer 1. 1 K 11.9 11) drop N off in-person: Planning and Development Department 221 N. Elm ST Denton, Texas 76201 Attn: Cindy Jackson, Project Manager Ross "Ms �-aqtwst. The Commission Is oed of the percent of responses in support and In opposition. Please circle one: In favor of request Neutral to request opposed to request Reasons for 0,0069 11 ti o in Printed Namoj' . ..... Mailing Address: I j-, r�_f' city, State Zip: Telephone Number Physical Address of Property within 200 feet: A (7 J, Offy OF DENTON, rEXAS CiTY HALL WEST • DENTON, TEXAS 7620 200'P&2 Wke 7— Y 1 940.349,8541 (f)940.349-7707 NOTICE OF PUBLIC HEARIIMe, S13-0011 The Planning and Zoning Commission of the City of Denton will hold a public hearing on Wednesday, March 19, 2014, and consider making a recommendation to City Council concerning a request for a Specific Use Permit for proposed Multi-family a�partmenl development. The 4.13 acre site is located on the west side of Sherman Drive, west of the intersection of Sherman Drive and Linwood Drive within a Neighborhood Residential Mixed Use (NRMU) zoning district. lip opinion to be taken into account, retu n t rm w1in your comments prior 5 e 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 mail it to the address below or drop it off in-person: Planning and Development Department 221 N. Elm ST Denton, Texas 76201 Attn. Cindy Jackson, Project Manager 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. Please circle one., In favor of request eutral to request Opposed to request Reasons for Opposition: signature: J" el Printed Name: Mailing Address� City, State Zip: 1' 2-1 2 Telephone Number: Physical Address of Property within 200 feet: CITY OF DENTON, TEXAS CITY HALL WEST - DENTON, TEXAS 76201 • 940,349.8541 - (F) 940.3491707 200'P&Z Notre NOTICE OF PUBLIC HEARING S1 3-0011 The Planning and Zoning Commission of the City of Denton will hold m public hearing on Wednesday, March 13. 2014, and consider making o recommendation to City Council concerning a request for a Specific Use Permit for proposed Multi-family apartment development. The 4.13 acre site is located on the west side ofSherman Drive, west ofthe intersection of Sherman Drive and Linwood Drive within a Neighborhood Residential Mixed Use (NRMU) zoning district. The public hearing will start at 6.30 p,m. in the City Council Chambers of City Hall located at 215E. McKinney Street, Denton, Texas. Bauauae you own property within two hundred (200) feet o/ the subject property, the Planning and Zoning Commission would like k, hear how you feet about this request and invites you to attend the public hearing. p|oose, 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 number located at the bottom or mail it to the address below or drop it off in-person: Planning and Development Department 221 M. Elm ST Denton, Texas 7620 Attn: Cindy Jackson, Project Manager These forms are used to calculate me percentage uf landowners and oppose the request. The Commission is informed of the percent of responses in support and in opposition. Please circle one: Neutral mrequest Opposed mrequest Reasons for Opposition. Mailing Address: City, State Zip, ci Telephone NUn Physical Address of Property within 200 feet: � CITY OF DENTON, TEXAS CITY HALL WEST - DENTON, TEXAS 76201 940 349,8541 (F) 940.3497707 Exhibit 10 Site Photos Exhibit 11 March 19, 2014 Draft Planning and Zoning Commission Minutes C. Hold a public hearing and consider making a recommendation to City Council regarding an Alternative Environmentally Sensitive Area Plan. The 3.71 acre site is located at the northeast corner of E. University Drive (U.S. 380) and Loop 288 within an Employment Center Industrial (EC-1) zoning district. (ADP13 -0004 Loop 288 & University Dr., Cindy Jackson Lockley introduced Marohnic. Marohnic stated a handout was provided during the Work Session in regards to this item. The applicant is proposing an Alternative Environmentally Sensitive Area Plan to accommodate a future commercial development. The subject site is 3.71 acres, of which 2.67 acres are encumbered by 100 -year floodplain, with nested riparian buffer. This leaves approximately 1.014 acres unencumbered. The applicant proposes to reclaim the floodplain with fill material to increase the development area and potential of the property. The property is zoned Employment Center - Industrial zoning district. Marohnic provided a Federal Emergency Management Agency floodplain map; this included the 500 -year floodplain, 100 -year floodplain, and floodway. Marohnic provided an Environmentally Sensitive Area (ESA) map that included where the riparian buffer and undeveloped floodplain are located. Based on the Denton Development Code (DDC) the applicant's proposal will involve disturbances outside of the riparian buffer but within the fringe of the undeveloped floodplain. Staff sent 18 Public Hearing Notices to property owners within 200 feet of the subject site and 32 courtesy notices to property owners within 500 feet of the subject site. At this time staff has received 8 returned notices in opposition of this request, and one returned request in favor. The Development Review Committee recommends denial of this request. However, should this Commission decide to recommend approval of this request; staff recommends four conditions, which are listed in the staff backup. Taylor questioned the intended development for this site; Marohnic stated for future commercial uses. The applicant didn't want the information to be provided in the staff backup because they didn't want the proposal to be binding. Bentley stated those houses surrounding the property were annexed into the City not too long ago, there are primarily single - family in that area. Bentley stated maybe the zoning district applied wasn't the right zoning district to have been applied to the site. Lee Allison, Allison Engineering, 4401 N- I35, Suite 102, Denton, Texas Allison stated, William Cudd, the property owner is present as well. There seems to be some irregularities in the staff backup. The primary focus at this time for the property owner is to fill the land and not worry about the use at this time. This project has been in process since March 2013. Allison stated a floodplain model had been completed and a concept plan has been developed. There are some project issues which are: the spread of water, firm boundary, and coordination of parameters before preparing a Conditional Letter of Map Revision. This may result in adjusting the wall by one or two feet fewer. Allison stated the floodplain limits are unrealistic. Strange questioned if this variance request is for the fill only; Allison stated correct. Bentley questioned if any vegetation would be disturbed. Allison stated the vegetation is far to the left of the wall. It is five foot outside the stream buffer. Lockley stated the site plan provided is for illustration purposes, until the applicant can determine how much fill can be added. Schaake opened the Public Hearing. Howard Taylor, 213 Willow Stone, Denton, Texas Taylor stated he didn't want to speak on this item; he is here to gather more information for this request. Helen Reed, 3104 Twilight Drive, Denton, Texas Reed stated they were blindsided by this request. Reed stated their neighborhood is very close to one another. There is a lot of back up traffic that occurs on University Drive (Hwy 380). There is a lot of through traffic in the neighborhood that tries to bypass the traffic on University Drive. This site is within the floodplain, the site flooded approximately 10 years prior. Trevor Hesleett, 3103 Morningside Drive, Denton, Texas Hesleett stated the noise and pollution from the neighboring QuickTrip gas station has caused a lot of issues for them as well as the lights from QuickTrip shine through his house windows at all hours. Hesleett stated any additions to the area are going to cause more noise throughout the area. Hesleett recommended having the site zoned single - family. Sarai Hesleett, 3103 Morningside Drive, Denton, Texas Hesleett stated her house faces the vacant acres. If anything is added onto those acres her house will have to face the back of that development. There shouldn't be industrial uses added into the residential area that exists. Hesleett stated she would like to see a park or community garden added. William Cudd, 3504 Falcon Ct, Denton, Texas Cudd stated he would like to express his apologizes to the property owners if they felt left out in the process. There aren't a lot of services in the area and he would like to develop some services for those property owners to utilize. Cudd stated he doesn't want to see a gas station developed on that space. Rosemary Lawyer, 3309 Broken Bow, Denton, Texas Lawyer apologized to the property owners for not receiving any feedback from herself and Cudd. Lawyer added she supports the neighbors and agrees to their not being industrial uses developed on the site. Lawyer suggested a bank or equal use that the property owners could utilize. There was no one else to speak on this item. Schaake closed the Public Hearing. Bentley stated the staff report is inconsistent in three locations. Bentley questioned a larger scale or volume development on the industrial use; Marohnic stated yes, on the 1.4 acres it is allowed. Conner questioned how long the subject site has been zoned industrial; Marohnic stated since 2002. Taylor stated this area is a strange area, residential was supposed to be done away with in this area. Taylor stated he doesn't feel this issue could be resolved during this meeting. Taylor questioned postponing this request to be potentially rezoned to something with neighborhood resource category. Marohnic stated to possibly be rezoned to a more residential friendly area. Taylor stated correct; Taylor stated he hates to delay this request. Marohnic stated staff would be willing to continue to work with the developer. Allison stated this is not industrial zoning, it is Employment Center Industrial. Allison stated this isn't a zoning request. Allison informed the developer ahead of time that a neighborhood meeting was not needed since it was not a zoning case. Allison stated maybe continuing it would be sufficient; it would allow time to meet with the neighborhood. The developer doesn't want to start the zoning process. Bentley stated he supports the applicant, at this time in the process it is only to find out how much land can be reclaimed. Bentley stated he doesn't feel the land is large enough for a catastrophic use. Lockley stated based on the comments these are issues to discuss in the future. Lockley reminded the Commission this is for an ESA. Schaake questioned Lockley on his recommendation. Lockley stated if this Commission proceeds with the ESA with a condition on the fill amount; then the land use can be discussed later with City Council. Marohnic reminded the Commission staff is recommending denial; however should this Commission choose to approve this request there are conditions to be included. Conner stated the applicant wants to improve the property. The other discussions could be held at a later date, and should not hold up this request. Bentley stated he doesn't feel this could be resolved during this meeting. There does need to be development on the property; however, there are concerns from the neighbors. Bentley suggested postponing this request to the April 9, 2014 meeting. Schaake suggested staff initiate a zoning request. Lockley stated part of the request could be made to recommend a staff initiated rezoning. Lockley stated staff would look at a zoning class and compatibility that would be the best for the area. Lockley stated they could move forward with the variance and staff works with the initiated zoning. Taylor questioned if the applicant would like to move forward with the variance with restrictions or postpone this request to the April 9, 2014 meeting. Allison questioned what restrictions. Allison added the option is still available to develop the site as it is today. Taylor stated the revision to Condition four (4), hold a neighborhood meeting before City Council, and staff initiated rezoning. Commissioner Devin Taylor motioned, Commissioner Brian Bentley seconded to postpone this meeting to a date certain of April 9, 2014, applicant to hold a neighborhood meeting, and staff initiated rezoning. Motion carried (6 -0). Bentley requested an overlay map to be provided at the April 9, 2014 meeting. Allison confirmed. Schaake questioned if this item will have to be renoticed. Lockley stated no, because it has been postponed. Exhibit 12 Ordinance s tIqgahow W\s I 1 .00 11 uirivmt l5 n fists demAdocx ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A SPECIFIC USIA PERMIT TO ALLOW A MULTIFAMILY APARTMENT DEVELOPMENT ON APPROXIMATELY 4.13 ACRES OF LAND, GENE RALLY LOCATED ON THE" WEST SIDE OF SHERMAN DRIVE, WESTOF -ITIE INTERSECTION OF SllERmAN DRIVE AN].) LINWOOD DRIVE, IN THE, CITY OF DEN ON. DENTON COUNTY. TI-I-XAS; PROVIDING FOR A PENALTY IN ']'HE MAXIMUM AMOUNT OF $2,000,00 FOR VIOLATIONS THEREOF; PROVIDING A SEVERABILITY CLAUSE" AND AN EFFE,CTIVE DATE. (S13-0011) WHEREAS, Hammond Jones Development has applied for a Specific Use Permit to allow a multifamily development on approximately 4.13 acres of land within a Neighborhood Residential Mixed Use (NRMU) zoning classification and use designation, legally described in Exhibit "A" attached hereto and incorporated herein by reference (herein the "Property"), and WHEREAS, on March 19, 2014, the Planning and Zoning Commission concluded a public hearing as required by law, and recommended denial of the requested change in Slaccific Use Permit based on the following Findings: 1, The proposed change is not consistent with the Comprehensive Plan-, and 2. The proposed size of the development and the height of the buildings are not consistent with the surrounding neighborhood. WHEREAS, on April 15, 2014, the City Council concluded a public hearing as required by law, and affirms the recommendation and findings of the Planning and Zoning Commission in denying this request; and; NOW, THEREFORE, THE COUNCIL OF `THE CITY OF DENTON 111"REBY ORDAINS: SECTION 1. The findings and recitations contained in the pmarnble of this ordinance are incorporated herein by reference. SECTION 2. A Specific Use Permit to allow a multifamily development on the Property is hereby denied. SFCTION 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. SECTION 5. That this ordinance shall become effective fourteen (14) days from the date of its Imsage, 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. 13ASSED AND APPROVI'.�',D this (lie day of 2014, MARK A. BURROUGHS, MAYOR ATTEST"� JENNIFER WALTERS, CITY SECRETARY BY: APPROVED ASTO LI.`,1GAL FORM: ANITA BURGESS, CITY ATTORNEY 1A BY: z Exhibit A Tract I Acreage localud it 707 E' Sherman in Dentonj'X, and more sjveificttlly descrihed as A0268a J. Camr, Tract 48, Old Dead °}`r I g, and having a Propeny Tax ID4 of 145415- Tract 2 Acreage located at 705 F" Sherman in Denton,'I'X, and morespceifically described as A0268a J. Carm-, Tract 47, and having at Pcoperty Tax ID .4 of '1108147. Trial 3 Acieagc located al 715 1: Sherman in DenInn, IX ind more specifically described as A0268a J. Cart(:-, Tract 49. and havinig. a Propet Fax IN! of 76388- Exhibit B SITE PLAN g;q ZI I