Loading...
HomeMy WebLinkAboutAugust 19, 2014 AgendaCity f Denton City Hall Y 215 E. McKinney St. Denton, Texas 76201 ,la www.cityofdenton.com DENT": Meeting Agenda City Council Tuesday, August 19, 2014 3:00 PM Work Session Room & Council Chambers After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, August 19, 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: 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 August 19, 2014. 3. Work Session Reports A. CAII -0004 Receive a report, hold a discussion, and give staff direction regarding the Denton Plan Update. Attachments: Exhibit 1 - Key Process Points Exhibit 2 - Draft Community Vision Statement Exhibit 3 - Draft Preferred Growth Concept B. SI14 -0002 Receive a report; hold a discussion, and give staff direction regarding offering one year extensions for qualifying properties with Non Annexation Agreements that will expire in early 2015. Attachments: Exhibit 1 - Staff Analysis Exhibit 2- Service Plan for Properties Annexed in 2010 C. ID 14 -0431 Receive a report; hold a discussion, and give staff direction regarding the 2014 -15 Proposed Budget, Capital Improvement Program and Five -Year Financial Forecast. Attachments: Exhibit 1 - Memo with Attachments 14 -15 - August 19 D. HL13 -000IA Receive a report, hold a discussion, and give staff direction regarding an application from the Denton County Historical Commission for the Texas Historical Commission Recorded Texas Historic Landmark Marker for City Hall West. City ofDenton Page 1 Printed on 811512014 City Council Meeting Agenda August 19, 2014 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. 1. Closed Meeting: A. ID 14 -0442 Deliberations regarding Real Property - Under Texas Government Code, Section 551.072; and 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 proposed site for reconstruction of the existing Locust Substation in the general area between the intersection of Locust and E. Daugherty and the intersection of Locust and W. Collins St., in the City of Denton, Denton County, Texas, as part of Denton Municipal Electric's service territory. Consultation with the City's attorneys regarding legal issues associated with the potential proceedings against the real property associated with above described area 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 PUB or 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. (Locust Substation Re- construction- Denton Municipal Electric) [ID14 -0443] B. ID 14 -0444 Deliberations regarding Real Property - Under Texas Government Code, Section 551.072; and 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 potential eminent domain proceedings against certain real property interests located in the M. Forrest Survey, Abstract Number 417, in the City of Denton, Denton County, Texas, being a fee interest in land, regarding a certain 10.372 acre tract of land located generally north of Blagg Road and east of Geesling Road, for the public use of expansion, construction, maintenance, operation, and improvement of electric transmission and distribution lines facilities, and structures, as well as substations. Consultation with the City's attorneys regarding legal issues associated with the potential proceedings against 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 City ofDenton Page 2 Printed on 811512014 City Council Meeting Agenda August 19, 2014 State Bar of Texas, or would jeopardize the City's legal position in any administrative proceeding or potential litigation. (ARCO Substation Re- construction- Denton Municipal Electric) [ID 14 -0397] C. ID 14 -0447 Certain Public Power Utilities: Competitive Matters - Under Texas Government Code, Section 551.086. Receive a presentation from Staff regarding the proposed amendment of the FY 2013 -2014 DME Budget and Annual Program of Services; discuss, deliberate and provide staff with direction. [ID 14 -0446] D. ID 14 -0449 Certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086. Receive competitive public power information and competitive financial information from staff in the form of a proposed operating budget for Denton Municipal Electric ( "DME ") for FY 2014 -2015, including without limitation, revenues, expenses, commodity volumes, and commitments; and discuss, deliberate, consider adoption of the budget and other matters, and provide staff with direction regarding such matters. E. ID 14 -0455 Consultation with Attorneys - Under Texas Government Code, Section 551.071. 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 vested rights; impacts of federal and state law and regulations; impacts of gas well drilling upon protected uses and vice - versa; moratorium on drilling and production; other concerns about municipal regulatory authority or matters relating to enforcement of the Gas Well Ordinance; settlement matters concerning gas well drilling in the City; surface development issues involving surface and mineral estates; and legal matters associated with a citizen's initiative regarding hydraulic fracturing where a public discussion of these legal matters would conflict with the duty of the City's attorneys under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING WILL ONLY BE TAKEN IN AN OPEN MEETING THAT IS HELD IN COMPLIANCE WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH FINAL ACTION, DECISION, OR VOTE IS TAKEN IN THE CLOSED MEETING IN ACCORDANCE WITH THE PROVISIONS OF §551.086 OF THE TEXAS GOVERNMENT CODE (THE `PUBLIC POWER EXCEPTION'). THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A CLOSED MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOV'T. CODE, §551.001, ET SEQ. (THE TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA OR TO RECONVENE IN A CONTINUATION OF THE CLOSED MEETING ON THE CLOSED MEETING ITEMS NOTED ABOVE, IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS ACT, INCLUDING, WITHOUT LIMITATION §551.071 - 551.086 OF THE TEXAS OPEN MEETINGS ACT. City ofDenton Page 3 Printed on 811512014 City Council Meeting Agenda August 19, 2014 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 A. U.S. Flag B. Texas Flag "Honor the Texas Flag — I pledge allegiance to thee, Texas, one state under God, one and indivisible." 2. PROCLAMATIONS /PRESENTATIONS A. ID 14 -0415 Live United Month B. ID 14 -0459 Presentation by Phil Williams, DME General Manager, recognizing the outstanding accomplishments of Denton Municipal Electric's Lineman Rodeo Team at the 18th Annual Texas Lineman's Rodeo. 3. 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 — P). 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 — P 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. ID 14 -0375 Consider adoption of an ordinance authorizing the City Manager to execute an Interlocal Cooperative Purchasing Program Agreement with the City of Bryan, Texas under Section 271.102 of the Local Government Code, to authorize mutual participation in various City of Bryan and City of Denton contracts for the purchase of various goods and services; authorizing the expenditure of funds therefor; and declaring an effective date (File 5580- Cooperative Purchasing Agreement with City of Bryan). Attachments: Exhibit 1 - Ordinance Exhibit 2 - Agreement B. ID 14 -0406 Consider adoption of an ordinance accepting competitive proposals by way of an Interlocal Agreement with the City of Bryan under Section 271.102 of the Local Government Code, for Supplemental Payment Recovery Services for the City of Denton Fire Department; providing for the expenditure of funds therefor; and providing an effective date (File 5613 awarded to MED3000 in the not -to- exceed three (3) year amount of $250,000). City ofDenton Page 4 Printed on 811512014 City Council Meeting Agenda August 19, 2014 Attachments: Exhibit 1- Approval Letter Exhibit 2- Ordinance Exhibit 3- Agreement C. ID 14 -0397 Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager or his designee to execute a Contract of Sale by and between John P. Walker and William A. Martin, as owner(s), and the City of Denton, Texas, as buyer, to acquire fee simple to a 10.372 acre tract being generally situated in the M. Forrest Survey, Abstract Number 417, in the City of Denton, Denton County, Texas to be used and utilized for and in connection with the expansion, construction, maintenance, replacement, augmentation, and improvement of electric transmission and distribution lines, facilities, and structures (herein the "DME Expansion Project ") for the purchase price of Six Hundred Thousand Dollars ($600,000.00), and other consideration, as prescribed in the Contract of Sale as described in the ordinance as attached as Exhibit One; authorizing the expenditure of funds therefor; and providing an effective date. (Denton Municipal Electric ARCO Substation Project) Attachments: Exhibit 1 - Ordinance and Contract D. ID 14 -0432 Consider the adoption of an ordinance of the City of Denton authorizing the City Manager or his designee to execute a contract through the Buy Board Cooperative Purchasing Program for the acquisition nine (9) refuse truck chassis and (5) refuse bodies for the City of Denton Solid Waste Department; and providing and effective date (File 5622- Purchase of nine (9) refuse truck chassis and three (3) refuse bodies from Rush Truck Center, Crane in the amount of $1,600,512.00 and two (2) refuse bodies from McNeilus Truck and Manufacturing Co. in the amount of $166,370.00). The Public Utilities Board recommends approval (5 -0). Attachments: Exhibit 1- Vehicle Summary Exhibit 2- Quotes Exhibit 3- Standardization Memo Exhibit 4 -PUB Minutes Exhibit 5- Ordinance E. ID 14 -0433 Consider adoption of an ordinance of the City of Denton authorizing the City Manager or his designee to execute a contract with the Houston - Galveston Area Council of Governments (H -GAC) for the acquisition of four (4) refuse truck bodies for the City of Denton Solid Waste department; and providing an effective date (File 5621- Purchase of Four (4) Truck Bodies awarded to DaDee Manufacturing, LLC in the amount of $582,721.28). The Public Utilities Board recommends approval (5 -0). Attachments: Exhibit 1- Pricing Sheet Exhibit 2 -Memo Exhibit 3 -PUB Minutes Exhibit 4- Ordinance F. ID 14 -0434 Consider adoption of an ordinance authorizing the City Manager to execute a Personal Services Agreement with Capital Edge Strategies, LLC for consulting City ofDenton Page 5 Printed on 811512014 City Council Meeting Agenda August 19, 2014 services related to assisting the City of Denton in advancing its Federal Legislative Program which includes assisting Council and staff in addressing proposed legislation, and making the City aware of any legislative or administrative initiatives believed to be detrimental to the interests of the City; and providing an effective date (File 5620- awarded to Capital Edge Strategies, LLC in the three (3) year not -to- exceed amount of $162,000). Attachments: Exhibit 1- Ordinance Exhibit 2- Contract G. ID 14 -0435 Consider adoption of an ordinance accepting competitive proposals and awarding a public works contract for the construction of Fire Station No. 2 located at 2209 East McKinney Street, Denton, Texas; providing for the expenditure of funds therefor; and providing an effective date (RFP 5545- awarded to Schmoldt Construction, Inc. in the not -to- exceed amount of $4,575,000. Attachments: Exhibit 1- Ranking Exhibit 2- Pricing Sheet Exhibit 3 -Best and Final Offer Exhibit 4- Estimated Project Budget.pdf Exhibit 5- Signed C7rdinance H. ID 14 -0437 Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving a contract for pavement maintenance at Denton Enterprise Airport using the E -Krete Polymer Concrete Micro - Overlay system, 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 5594 awarded to International Business Consultants Inc. dba IBC Construction Corporation in the three (3) year not -to- exceed amount of $500,000). Attachments: Exhibit 1 - Staff Sole Source Memo Exhibit 2 - Polyco USA Sole Source Exhibit 3 - Ordinance L ID 14 -0438 Consider adoption of an ordinance of the City of Denton authorizing the City Manager or his designee to execute a contract through the State of Texas Smart Buy Program for the purchase of asphalt patching material for the City of Denton Streets Department as awarded by the State of Texas Contract 745 -A1; and providing an effective date (File 5615- awarded to Zack Burkett in the three (3) year not -to- exceed amount of $600,000). Attachments: Exhibit 1 - Contract Exhibit 2 - Ordinance J. ID 14 -0439 Consider adoption of an ordinance of the City of Denton authorizing the City Manager or his designee to execute a contract through the State of Texas for the purchase of recycled copy paper for the City of Denton Distribution Center as awarded by the State of Texas Contract 645 -A1; and providing an effective date (File 5602- Purchase of Recycled Copy Paper for the City of Denton Distribution City ofDenton Page 6 Printed on 811512014 City Council Meeting Agenda August 19, 2014 Center awarded to TIBH Industries, Inc. in the three (3) year not -to- exceed amount of $200,000). Attachments: Exhibit 1 - Contract Exhibit 2 - TIEH Pricing K. ID 14 -0440 Consider adoption of an ordinance approving a sponsorship in an amount not to exceed $4,700.00 of in -kind services and resources for the fourth annual Susan G. Komen North Texas Denton Race for the Cure to be held at C.H. Collins Athletic Complex and Long Road on Saturday, September 27, 2014; and providing an effective date. Attachments: Exhibit 1 - Komen In -Kind Services and Resources 2014 Exhibit 2 - Komen ordinance L. ID 14 -0441 Consider a request for an exception to the Noise Ordinance for the purpose of the fourth annual Susan G. Komen North Texas Denton Race for the Cure to be held at C.H. Collins Athletic Complex and Long Road, on Saturday, September 27, 2014, from 6 a.m. to 11 a.m. Amplified sound is needed for public announcements regarding race times and to play music during the event. The exception is specifically requested to increase sound levels from 70 to 75 decibels. Staff recommends approval of request. Attachments: Exhibit 1 - Letter of Request M. ID 14 -0446 Consider adoption of an ordinance of the City of Denton, Texas amending the Fiscal Year 2013 -2014 Budget and Annual Program of Services of the City of Denton to allow for adjustments to the Electric Fund of six million six hundred and six thousand three hundred and seventy -four dollars ($6,606,374), and the Solid Waste Fund of three hundred ten thousand and six hundred dollars ($310,600); declaring a municipal purpose; providing a severability clause; providing an open meetings clause; and providing for an effective date. The Public Utilities Board recommends approval (5 -0). Attachments: Exhibit 1 - Eudget Amendment Ordinance N. ID 14 -0450 Consider adoption of an ordinance of the City of Denton, Texas approving a Third Amendment to the Meet and Confer Agreement between the City of Denton and the Denton Fire Fighters Association, IAFF Local 1291; and providing an effective date. Attachments: Exhibit 1 - Ordinance Exhibit 2 - Signed Proposal and Tentative Agreement to Implement the Third An Exhibit 3 - 2009 Adopted Meet and Confer Agreement with prior amendments O. ID 14 -0453 Consider adoption of an ordinance of the City of Denton, Texas approving a Second Amendment to the Meet and Confer Agreement between the City of Denton and the Denton Police Officers Association; and providing an effective date. City ofDenton Page 7 Printed on 811512014 4. ITEMS FOR INDIVIDUAL CONSIDERATION A. ID 14 -0448 Consider nominations /appointments to the City's Boards and Commissions: Community Development Advisory Committee; Health & Building Standards Commission; Historic Landmark Commission; Human Services Advisory Committee; Parks, Recreation and Beautification Board; Public Art Committee; Public Utilities Board; Traffic Safety Commission; and Zoning Board of Adjustment. Attachments: Exhibit 1 - Nominations Sheet B. SI14 -0003 Consider appointment of Council Members to serve on the City Council Historic Landmark Committee. Attachments: Exhibit 1 - Resolution 5. PUBLIC HEARINGS A. ID 14 -0408 Hold a public hearing on a proposal to adopt a tax rate of $0.689750 per $100 valuation, which will exceed the lower of the rollback rate or the effective rate. Attachments: Exhibit 1 - Notice of Proposed Tax Rate B. ID 14 -0409 Hold a public hearing and receive citizen input on the FY 2014 -15 Proposed Budget. Attachments: Exhibit 1 - Notice of Public Hearing on Eudget C. CA14 -0001 Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for a Comprehensive Plan Amendment from a "Neighborhood Centers" future land use designation to an "Employment Centers" future land use designation on approximately 2.35 acres of land generally located on the south side of Morse Street, approximately 200 feet west of Woodrow Lane and 425 feet east of Baldwin Street; and providing for a penalty in the maximum amount of $2,000.00 for violations, thereof, severability and an effective date. (CA14 -0001) The Planning and Zoning Commission recommended approval of this request (5 -0). City ofDenton Page 8 Printed on 811512014 City Council Meeting Agenda August 19, 2014 Attachments: Exhibit 3 - Existing Future Land Use Exhibit 5 - Existing Zoning Map Exhibit 6 - Proposed Zoning Map Exhibit 11 - Site Photos E. CA14-0002 Hold u public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for u Comprehensive Plan Amendment from an "Employment Centers" fuu/u: land use designation 10 an "Industrial Centers" fuu/u: land use designation on two 1rudu totaling approximately 131.7ucreu of land. Tract l is generally located on the northwest corner of Western Boulevard and Jim C6riu1ul GO ofDenton Page 9 Printed on 811512014 City Council Meeting Agenda August 19, 2014 Attachments: F. Z14 -0009 Attachments: Road. Tract 21s generally located on the east side of Western Boulevard, approximately 425 feet south of U.S. 380 and 1,700 feet north of Jim Christal Road; and providing for a penalty in the maximum amount of $2,000.00 for violations, thereof, severability and an effective date. (CA14 -0002) The Planning and Zoning Commission recommended approval of this request (5 -0). Exhibit 1 -Staff Analysis Exhibit 2 - Site Location - Aerial Map Exhibit 3 - Future Land Use Existing Exhibit 4 - Future Land Use MaD Probosed Exhibit 11 - Site Photos Exhibit 12 - July 23, 2014, P & Z minutes Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for a zoning change from an Employment Center Commercial (EC -C) zoning district and use classification to an Industrial Center General (IC -G) zoning district and use classification on two tracts totaling approximately 131.7 acres of land. Tract 1 is generally located on the northwest corner of Western Boulevard and Jim Christal Road. Tract 2 is generally located on the east side of Western Boulevard, approximately 425 feet south of U.S. 380 and 1,700 feet north of Jim Christal Road; and providing for a penalty in the maximum amount of $2,000.00 for violations, thereof, severability and an effective date. (Z14 -0009) The Planning and Zoning Commission (P &Z) recommended approval of this request (5 -0). Exhibit 1 - Staff Analysis Exhibit 2 - Site Location-Aerial lMap Exhibit 3 - Future Land Use Map Existing E40bml A - ELJtLjiQ Laod, U5P, bian - Prnnnsgj Exhibit 7 - Airport Industrial Area LExhibit 11 - Site Exhibit 12 - July 23, 2014, P & Z minutes Exhibit 13 - Draft Ordinance City ofDenton Page 10 Printed on 811512014 City Council Meeting Agenda August 19, 2014 G. A14 -0001b Hold the second of two public hearings to consider the adoption of an ordinance of the City of Denton annexing 40.33 acres of land, more or less, generally located on the west side of Cooper Creek Road, approximately 800 feet south of Silver Dome Road, and approximately 1,800 feet north of Mingo Road, more specifically described in Exhibits "A" and `B "; approving a service plan for the subject property and temporarily placing the property in the Rural Residential - 5 (RD -5) zoning district; providing for a correction of the City Map to include the annexed lands; providing for a savings clause and effective date. (A14 -0001) Attachments: Exhibit 1 - Staff Analysis Exhibit 2 - Site Location Aerial Map Exhibit 3 - Zoning Map Exhibit 4 - Future Land Use Map Exhibit 5 - Annexation Schedule Exhibit 6 - Service Analysis Exhibit 7 - Service Plan Exihibit 8 - Draft Ordinance H. ID 14 -0443 Hold a public hearing and consider approval of a resolution approving the site proposed for reconstruction the existing Locust Substation in the general area between the intersection of Locust and E. Daugherty and the intersection of Locust and W. Collins St., in the City of Denton, Denton County, Texas. Attachments: Exhibit 1- Resolution I�A."11111i��b[il 6. 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. City ofDenton Page 11 Printed on 811512014 City Council Meeting Agenda August 19, 2014 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 (TDD) BY CALLING 1- 800 - RELAY -TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. City ofDenton Page 12 Printed on 811512014 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com 1 EN71" N File #: CA11 -0004, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Planning and Development CM/ ACM: John Cabrales, Jr. Date: August 19, 2014 SUBJECT Receive a report, hold a discussion, and give staff direction regarding the Denton Plan Update. BACKGROUND The purpose of this Work Session item is to update the City Council on the status of the Denton Plan Update, brief the new Council members on what has been accomplished since the Kick -off Open House, and to inform the City Council of Community Forum 3 (CF3), which is scheduled in September. At C173, the Denton community will have the opportunity to view the draft Denton Plan 2030 update document and get a chance to discuss the key plan components and strategies that will help realize the community's shared vision for the future as expressed in the draft Community Vision Statement. The Denton Plan Update is in Phase 4 of a five -phase process. Phase 4 is drafting the Denton Plan Update document, which includes identification of integrated goals, policies, and strategies, plus an implementation plan that prioritizes short, medium, and long -term actions. Refer to Exhibit 1 for a list of key process points. The Update began in August 2012 with a Kick -off Open House. At the Open House, approximately 160 citizens participated to formally kick off the process to update the Denton Plan. While the primary purpose was to raise public awareness of the importance of the Update and the various opportunities for citizens to participate and provide input, participants were encouraged to express their "likes" and "dislikes" about Denton on post -it notes attached to display boards. The input received at the Open House set the framework for the upcoming Community Forums. After the Kickoff Open House, the City hosted several Community Forums. The first of three forums, Community Forum (CF I) was held in November 2012 and later again in February 2013. To ensure maximum participation during each month, staff held a series of meetings. In addition to the citywide CFI series of meetings, staff also hosted a series of meetings with UNT and with TWU with over 200 citizens participating. CF 1 also consisted of facilitated small group discussions. The principal goal was to engage the small groups of citizens and encouraging them to express their opinions about Denton in the present and the future through four specific topics: Denton at Present • Strengths: What present characteristics of Denton do we value? What are the qualities that we should City of Denton Page 1 of 7 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: CA11 -0004, Version: 1 retain as the community continues to grow and change? • Weaknesses: What present conditions of our community do we characterize as problems or shortcomings requiring resolution? What deficiencies should we address and change? Denton in the Future • Opportunities: What could we do now that will make our community even better in the future? • Threats / Challenges: What conditions or trends do we see as potentially threatening to our community that we should prepare for or prevent? Participants were divided into small groups with facilitators, and the groups spent 15 to 20 minutes expressing ideas within their groups on each of the four topics and listed their responses on flip charts. Then, they were asked to group similar ideas together and to vote individually for their most important ideas. Essentially the group identified their "top three" ideas for each topic. The number of votes for each idea was recorded on the same flip charts. The hundreds of ideas expressed at CF 1 were very diverse, but the ideas that tended to receive the largest number of "top three" votes revealed broad consensus on key issues, aspirations, and concerns. Using the input provided by the community at CF I, the City began updating Denton's Community Vision Statement. The Community Vision Statement is an expression of the community's collective values and aspirations and a description of what the community wants to become in the future. It answers the question "where do we want to be in 20307 Ultimately, it is the destination and roadmap for Denton Plan 2030. In addition to the input received from the community during CF 1, the following community outreach activities were conducted to solicit input to help draft the Community Vision Statement. • Kickoff Open House • Stakeholder Interviews • DentonPlan203O.com • Informational Community Meetings • Mobile Meetings • EngageDenton.com • Social Media (Facebook and Twitter) • Telephone Survey (300 participants) • Online Survey (175 participants) The CFI meetings concluded in April 2013. It was around this time that the Citizens Advisory Committee (CAC) and the Denton Plan Ambassadors (DPA) program were launched. The CAC is made up of 32 members, appointed by the City Council, to actively participate in the activities and events of the Denton Plan Update process. The primary responsibility of the CAC is to review prepared technical reports and documents and to provide feedback on the goals, recommendations, and strategies that will be developed throughout the Update process. On April 11, 2013, the CAC held their first meeting. Since their first meeting, the CAC has been involved in the review of key components of the Denton Plan Update process. The CAC has reviewed and provided feedback on the draft Community Vision Statement, the Growth Trend Scenario and the Alternative Growth Scenarios, the draft Preferred Growth Concept, and the draft Denton Plan Update document. Their guidance and involvement is vital as we get closer to Phase 5, public hearings and adoption. City of Denton Page 2 of 7 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File M CA11 -0004, Version: 1 The DPA has also been meeting every other month since April 2013. There are currently 40 Denton Plan Ambassadors. The role of DPA is to discuss the current status of the Update, bring feedback to the group and staff for discussion, and take information to the community to keep them engaged and informed. Staff communicates regularly with the DPA regarding the status of the Update process and what the community should know about upcoming Denton Plan 2030 events so that DPA can assist with public outreach efforts. So far, they have provided valuable and useful feedback on several topics, such as existing and potential urban centers in Denton, the Denton brand, and ideas on what Denton's character is, through group exercises and a Special User Group on EngageDenton.com. They have assisted staff in getting word out about upcoming events and participated in the first two Community Forums. In addition, the DPA has reviewed and provided feedback on documents such as the draft Community Vision Statement, the draft Preferred Growth Concept and the draft Denton Plan Update document. Between April and July 2013, the Community Vision Statement was drafted and further refined using input from the CAC, DPA, the Technical Advisory Committee (TAC), City Council, Planning and Zoning Commission, and other Boards and Commissions. Refer to Exhibit 2 for the latest draft of the Community Vision Statement. The draft Community Vision Statement is also available online at DentonPlan203O.com, which is the project's website, dedicated to keep the citizens informed on the Update process. Immediately after the draft Community Vision Statement was vetted through, it was presented to the Denton community at Community Forum 2 (CF2). Similarto CFI, the City hosted a series of meetings for CF2 in Fall 2013. To ensure maximum participation, staff held a series of meetings between October and November, which included two citywide meetings and meetings at UNT and TWU. At CF2 over 100 citizens participated. CF2 gave the community an opportunity to review the draft Community Vision Statement and also to vote on their preferred form of growth for the future of Denton and the priorities and character that they felt were important for growth in an open house format. Each of the meetings was presented in a similar format in order to solicit input that can be compared equally. At CF2, participants visited each of five stations presenting important information, dedicated to an important decision. The following is a brief description of each of the five stations: Station l: Welcome - At this station the community was provided an overview of the Community Forum 2 open house, Community Forum 1, and a summary of the Draft Community Vision Statement. Community participants were given their own copy of the complete draft Community Vision Statement for review. The top five strengths, opportunities, weaknesses, and challenges from Community Forum 1 were listed at the station to provide context. Station 2: Understanding Scenarios - This station gave an introduction to the Growth Trend Scenario (i.e. "business as usual ") and the Alternative Growth Scenarios with illustrations of different densities and descriptions of development types. This information was intended to provide a frame of reference to evaluate the next stations. Station 3: Understanding the Fiscal Picture - This station illustrated the financial structure of the City of Denton and several aspects of the City's budget. Data regarding the City's financials was used to calculate the fiscal impact findings (i.e. cost to the city) for each Growth Scenario. Station 4: Comparing Alternative Scenarios - At this station the community was provided the opportunity for participants to vote on their preferred growth pattern for Denton. The Growth Trend Scenario and three Alternative Growth Scenarios were presented with explanatory text and a table of City of Denton Page 3 of 7 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: CA11 -0004, Version: 1 indicators. Indicators included initial findings on environmental and fiscal impact that helped inform participants' decisions in voting for their Preferred Scenario. The station concluded with a summary table of findings and an evaluation of each against the Community Vision Statement. Community participants were then asked to vote for their first and second choice Growth Scenario for their future Denton. Station 5: Community Character Considerations - This station explored four Community Character Considerations, which are elements impacting the urban environment that go beyond density and land use and may be implemented in any Growth Scenario. The four Considerations were developed from community desires described in the Community Vision Statement. Community participants were asked to vote for their first and second choice Community Character Consideration for their future Denton. The results from the input and feedback received at CF2 is summarized and presented online at DentonPlan203O.com. The input and feedback from CFI, the draft Community Vision Statement, the development of Alternative Scenarios, and the results of Community Forum 2 all contribute to the drafting of the Preferred Growth Concept. The Preferred Growth Concept is a conceptual vision for the form, character, and general location of development in the City that reflects the input and expressed preferences of the community. The Preferred Growth Concept is the future development pattern of the City of Denton over the next 15 to 20 years. Refer to Exhibit 3 for a depiction of the draft Preferred Growth Concept. Participants at CF2 were strongly in support of a Compact Growth pattern for the City and for the clustering of development around key areas (i.e. Centers or Corridors). This general location of new development and areas for intensification will be the basis for the update of the Future Land Use Map that will be included in the Denton Plan Update document. The Compact Growth pattern was further supported by the prioritization of mixed -use development, linking the community through walkable pedestrian networks, the potential for jobs located closer to home, reducing commuting times, and creating balanced, mixed -use neighborhoods. Finally, the community confirmed that maintaining and increasing "Placemaking and Urban Vitality" is an essential attribute of their future Denton. This reinforces the need for maintaining a strong Downtown core and sense of place in existing character areas of Denton. Allowing new development to be complementary to those areas, as well as providing areas of new development that can be centers of the community in the future. The desire for a Compact Growth pattern was further reinforced by the community's voting for multi -modal transportation options, which are more easily accommodated through compact development, as well as protecting environmental resources through the inclusion of green infrastructure elements and conservation areas. These elements will be included through goals and policies in the Denton Plan Update document, as they affect much more than just new growth. Through the placement of land uses, the draft Preferred Growth Concept encourages a shift towards more mixed -use development, bringing together compatible residential, commercial, office, institutional, and other uses within a walkable scale. On January 29, 2014, staff presented to City Council the draft Community Vision Statement and the draft Preferred Growth Concept. At the meeting City Council provided comments on the Vision Statement and the Growth Concept and directed staff to move forward with the Update as presented. With the direction from City Council, utilizing the input and feedback from the community, the draft Community Vision Statement, and the draft Preferred Growth Concept, staff and the consultant team began drafting the Denton Plan Update document. Staff's objective is to improve the understanding and further the implementation of the Denton Plan. As part of City of Denton Page 4 of 7 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: CA11 -0004, Version: 1 drafting the Denton Plan Update document, staff is updating the Future Land Use Map and the Future Land Use designations. The updated Future Land Use Map and Future Land Use designations will reflect existing conditions and expressed community preferences. Refer to Exhibit 4 for a list and description of the City's existing Future Land Use designations. Refer to Exhibit 5 for a list and description of proposed Future Land Use designations. In addition to updating the Future Land Use Map and Future Land Use designations, staff and the consultant team drafted outline for the Denton Plan Update document. The draft outline contains ten Elements, one of which is an Implementation and Monitoring Element. Refer to Exhibit 6 for the draft outline. In April 2014, a draft of the Denton Plan Update document was ready for review by the CAC, TAC, and DPA. Since April the CAC and TAC held nine (9) meetings to review the draft document. The goal of the CAC was to come to a consensus on what is being recommended (goals, policies, and actions), to clarify with staff any questions that the Committee may have, and to provide concise directions to forward to the consultant team if proposed changes are necessary. Similarly, the goal of the TAC was to review the technical recommendations as they related to their specific Department /Division, to clarify with staff any questions that the Committee may have, and to provide concise direction to forward to the consultant team if proposed changes are necessary. The DPA and member of the Planning staff also met several times to review the draft document. After the individual Committees and groups reviewed and provided questions, comments, and direction, a compiled list of the input and feedback received was put together and forwarded to the consultant team to start reviewing and making any revisions accordingly. After the consultant team revises the draft document, a Public Review Draft will be reviewed by staff again and ultimately be available for the public to review prior to CF3. It is anticipated that the Public Review Draft will be available later this month. The Public Review Draft will be available online and also distributed to multiple public buildings for the community to access. At CF3, the Denton community will have the opportunity to further view the Denton Plan 2030 Public Review Draft. Community members will have the chance to discuss the key plan components and strategies that will help realize the community's shared vision for the future as expressed in the draft Community Vision Statement. Community members will have several dates, times, and locations to attend CF3 to choose from. Similar to the previous Community Forums, the City will host a series of meetings for CF3, see below. • Thursday, September 11, 2014, from 6:30 - 8:30 p.m. at the Denton Civic Center, 321 E. McKinney Street. • Friday, September 12, 2014, from 3 - 5 p.m. at the Denton Civic Center, 321 E. McKinney Street. • Saturday, September 13, 2014, from 9 - 1 p.m. at the Community Market, 317 W. Mulberry Street (as part of the Denton Community Market); and also from 10 - 1 p.m. at the Denton Civic Center, 321 E. McKinney Street (as part of Public Safety Day). Following CF3, staff will immediately begin preparing for the public hearing process with the Planning and Zoning Commission and City Council. The projected adoption date of the Denton Plan Update document is tentatively scheduled for Fall 2014. OPTIONS 1. Direct staff to proceed with the Denton Plan Update as presented. 2. Direct staff to proceed with the Denton Plan Update with changes. City of Denton Page 5 of 7 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: CA11 -0004, Version: 1 RECOMMENDATION Staff recommends proceeding with the Denton Plan Update as presented. ESTIMATED SCHEDULE OF PROJECT Tentative adoption of the Denton Plan Update is Fall 2014. PRIOR ACTION /REVIEW (Council, Boards, Commissions) 1. April 12, 2011 - City Council Work Session 2. August 7, 2012 - City Council Work Session 3. August 8, 2012 - Planning and Zoning Commission Work Session 4. October 12, 2012 - Community on Citizen Engagement 5. December 11, 2012 - City Council Work Session 6. January 15, 2013 - Community on Citizen Engagement 7. January 23, 2013 - Planning and Zoning Commission Work Session 8. March 5, 2013 - City Council Work Session 9. October 9, 2013 - Planning and Zoning Commission Work Session 10. January 29, 2014 - City Council Meeting 11. March 18, 2014 - City Council Work Session 12. March 19, 2013 - Planning and Zoning Commission Work Session FISCAL INFORMATION N/A BID INFORMATION N/A EXHIBITS 1. Key Process Points 2. Draft Community Vision Statement 3. Draft Preferred Growth Concept 4. Existing Future Land Use Designations 5. Proposed Future Land Use Designations 6. Draft Denton Plan 2030 Update Outline Respectfully submitted: Brian Lockley, AICP, CPM Director of Planning and Development City of Denton Page 6 of 7 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File M CA11 -0004, Version: 1 Prepared by: Ron Menguita, AICP DRC Administrator City of Denton Page 7 of 7 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl ....... '� '�titillii N � ^�80�IIII umi�i `1 '��IIIII� n � ........... 1plpuuummlUNl ��,rouuououoiupkN� pl�plumumuuulllllluHHhp u uuuuuuuuuuuuuuuuumuumm�m� //GaouimaouumOlfl i�iumuuumuumuuml2l l� �b!�U!uvipmuunml�n� D x ii Exhibit 1 i 11 Key Process Points �� draft uillu p� e/7 ton an The Kickoff Open House introduced the Denton Plan update process to the community and served as a venue for the community to get acquainted with the project team.. Informational Meetings were held to discuss the comprehensive plan update and existing conditions with City staff, and gathered preliminary feedback for the Community Vision Statement. During the Meetings, data and feedback were gathered to begin the update process. Stakeholder Engagement provided a time to discuss the comprehensive plan update and gather feedback from community stakeholders. This was accomplished through stakeholder interviews, Mobile Meetings, Informational Community Meetings, public outreach, and more. Community Forum 1 (Issues and Trends) defined areas of consensus on the important issues facing the City of Denton and on community members'values and aspirations for the future. Community Forum 1 sought ideas on Denton's strengths, weaknesses, opportunities, and challenges. The Community Survey provided statistically valid input from a cross - section of the community to supplement the "self-selected" approach of the first Community Forum and other means of input. During the strategic directions stage, analysis and input will be synthesized into a 4olong -term community vision statement, Goals, and Policy Framework that set the direction for preparation of the full comprehensive plan update. The consultant will draft a Community Vision Statement that articulates community members'goals and aspirations for the future of Denton. The consultant will develop three Alternative Growth Scenarios based on current trends, public input, and the Community Vision Statement. Each scenario will be reviewed and analyzed to examine future growth and land use options, while simultaneously estimating the financial impacts. Community Forum 2 (Vision and Policy Framework) will solicit community member input and build consensus on the Community Vision Statement, Community Character Considerations, and Alternative Growth Scenarios. Consultant will utilize the results of the building consensus exercises from Community Forum 2 to create the Preferred Growth Concept that reflects the desired future pattern of growth and development in Denton. Consultant and staff will develop a complete Comprehensive Plan Document i, Draft, including identification of integrated strategies, plus an implementation strategy that prioritizes short -, mid -, and long -term actions and establishes a monitoring program with indicators and benchmarks to measure plan performance. Community Forum 3 (Draft Plan Review) will receive citizen input and feedback on Upcoming the draft comprehensive plan. Consultant and staff will revise the comprehensive plan document to reflect the results of the draft plan review process. Upcoming The final draft of the comprehensive plan will be scheduled for Public Hearings and Adoption through the Planning and Zoning Commission and City Council. Once the Final Plan Adoption occurs, it will be available in electronic and hard copy Upcoming formats, and the Implementation Strategy will commence. Publ,,1,119 /13 - TDD: 1800) 785 -2989 I� _"tyfod —to ,'m Dii!.WON Exhibit 2 Draft Community Vision Statement Building on the foundation of the 1999 Denton Plan, our Vision of Denton in the year 2030 is one in which we are recognized as a vibrant community of choice. Denton is characterized by its two prosperous state universities, its friendly, small -town character, coupled with its big -city dynamism, its commitment to sustainability, and its culture of innovation, creativity, and authenticity. Our exceptional livability, the diversity of choices available to our people in employment, lifestyle, and neighborhood settings; and our North Texas values and culture define what Denton is and what we have to offer. We have realized our vision by respecting and building on our heritage, leveraging our assets, and making wise choices in guiding sound growth and investment, while balancing priorities for our four Strategic Directions: • The Character of Denton • Our People, Institutions, and Government • The Strength of Our Economy • Sound Growth: Our Form and Function The Character of Denton • Denton is authentic. Our small -town charm and, North Texas heritage are proudly embraced along with positive change, smart and balanced growth, and high - quality development. • Denton is consciously green. We are a leader in our commitment to sustainability and we have a significant tree canopy, a network of parks and greenways, stream corridors, and urban forests. • Denton is safe and livable, a hospitable community of friends and neighbors. • Denton is fertile territory for creativity and innovation in our vibrant music and arts scene, technology, business, and education. Our People, Institutions, and Government • We retain our sense of community and shared values, while welcoming new arrivals and celebrating growing diversity. • We are committed to fairness and equitable access to opportunity in education, community services, jobs, and government representation. • All generations, of both natives and newcomers, are deeply rooted in the community and are actively engaged in its betterment through volunteer participation with faith - based, civic, and /or neighborhood organizations and service on local government boards and commissions. • We cherish our artists and musicians and celebrate our community in local events and festivals that reflect the uniqueness of the community. • The City of Denton is a healthy, family - friendly community which sees its youth as its most valuable resource; a resource worthy of investment in education, healthful recreation, and opportunities for challenging and rewarding employment and engagement in civic affairs. • The City of Denton's institutions of higher learning, UNT and TWU, are partners with government, civic organizations, and local employers in initiatives to foster creativity in the arts, innovation, a strong economy, life -long learning, and the retention of the best and brightest. • The City of Denton government is customer - friendly and prides itself on its transparency and open communication, utilizing modern technology, its efficient provision of public services and facilities, and through its leadership in seeking to realize the Vision of Denton's future. • The City of Denton has integrated, reconciled, and streamlined its plans, process, policies, and regulations for consistency, clarity, and effectiveness. The Strength of Our Economy • We leverage our strategic location, universities, and medical institutions, as a national leader in technological and knowledge -based innovation, allowing us to attract and retain a highly educated and motivated workforce. • We leverage our strategic location and multi -modal accessibility in the Metroplex and capitalize on key assets such as the Denton Enterprise Airport. • We value and support our major manufacturing employers and other responsible corporate citizens to ensure their stability, encourage their commitment to Denton, facilitate their expansion, and leverage their presence by accommodating their suppliers, supporting businesses, and workers. • We support and encourage our entrepreneurs and small businesses with a business - friendly attitude and efficient regulations and permitting. • We market our Denton "brand," our unique, creative atmosphere and small town quality of life, which attracts a highly educated and motivated workforce and gives Denton a competitive advantage in attracting new investment, entities, and well - paying jobs. • We attract corporations and businesses which have a strong sense of corporate responsibility to the environment, the community, and their governance and who take active roles as being excellent corporate citizens. Sound Growth: Strengthening Our Form and Function Throughout Denton we see... • Managed, balanced, and sustainable growth in high - quality, livable urban, suburban, and rural places which offer diverse choices among neighborhood settings while respecting private property rights. • A compact development pattern which includes expanded areas of mixed use, a broad array of housing and retail choices responding to changing demographics and market preferences, and re- investment and infill in underutilized areas of the city. • An efficient transportation system with a safe and well- connected road network which accommodates a wide array of mobility options, including local and commuter rail transit, as well as accommodations for pedestrians and cyclists. • Special attention paid to our major travel corridors (ex. 1 -35, US 380, and Loop 288), both aesthetically and functionally, representing Denton's character, brand, and excellence. • Infrastructure systems which have undergone well - planned, staged expansion to serve and guide the city's growth. • Parks, greenways, stream corridors, tree canopy, and other natural resources integrating into the fabric of the community and contributing to healthy lifestyles. • Environmental stewardship through water conservation, positive contributions to regional air quality, sustainable development practices, green infrastructure, and renewable energy. In the core of Denton we see... • A vibrant Downtown Denton, energized with new housing, shopping, arts, and entertainment, supporting day and nighttime activity and a true urban lifestyle — Denton style. • Established neighborhoods where revitalization and compatible infill development contributes to stable, livable, and historic character, and fosters neighborhood pride and homeownership. • Thriving universities where coordinated planning and collaborations between the City and the academic communities creates mutually beneficial, stable, and healthy neighborhood edges and where the non - academic community benefits from the vast educational and cultural resources in close proximity. In our rural fringe areas of the city and the Extraterritorial Jurisdiction (ETJ) we see... • Contiguous, staged growth which is fiscally and environmentally sound, reduces fragmentation and sprawl, discourages premature development, and conserves the City's future growing room. • Conservation development which retains rural character, protects open space and greenways, enhances development value, and provides greater choices to land owners. • Potential safety and compatibility impacts presented by hazardous activities, such as gas well drilling and production, mitigated to protect neighboring persons and property. Exhibit 3 Derilor"i PhIr"i III II �IZ A 0 �m C IIIIIIIIII Fnwull City "fF)"ot"n ).0 etDegree of of ).OWe',tDeqree of.— Ixw"""i U"e RESIDEN71M. IF MIX""'i U"e NON- RI-SIDENTIAL MIX""'i U"e ow �)erisity Moderate erisit puglli �erisity Co ill ill e r c u a 11 II R e ta p l� oym en it Primarity Residenbat Mixed Use (inct, Residenbat, Mixed Use (inct, Residenbat, Primarity Comm orciat/RoLaR and Primarity Jobs and jobs) Commorciat/RoLaR, and jobs) Offioi:! UH35 "i"O, Ir"Iffly, V h"f (on,,,-W ,�omnlorciat/Romit, 'Oyon-, Apr0ownM, Mo,fc,rlr Mixr,f lAr Apr r,( rb,- (on,,,-W, MN Also (Yg,(" I i3O('dNU,,,d Av (.i", In j ir(" i ( (" NAif I""d Av I)enton IPlan Update I Preferred Concept Workshop I I)ecerylber 12, 2103 Exhibit 4 Existing Future Land Use Designations Residential Land Use Categories Ex'ist'ing V' es'ident'ialll / hnf°illllll Corm at'illb'illl'ity Within established residential areas, new development should respond to existing development with compatible land uses, patterns, and design standards. The plan recommends that 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. Neiglhrlboorllhrood Centers Within the undeveloped urban and urbanizing areas of the city, new neighborhoods may develop in traditional patterns. Mixed -use and mixed housing types will be allowed to develop in a pattern of .neighborhood centers. These are oriented inwardly, focusing on the center of the neighborhood. These neighborhoods will exemplify the interrelationship between quality of development, density, services and provision for adequate facilities. These developments should locate the center of the neighborhood within a five to ten minute walking distance from the edge of the neighborhood. The center contains uses necessary to support the surrounding neighborhood. These support uses could include service - oriented retail such as a small grocery, hair salon, dry cleaner or small professional offices. Residential uses may occur at higher densities with townhomes or residential flats above service oriented uses. Open space occurs in neighborhood centers with park uses including central neighborhood, greens, and floodplain preservation. Civic uses such as fire stations, schools, libraries, and mass transportation nodes are encouraged to be essential elements of neighborhood centers as landmarks that are a focus to the neighborhood. Limited multistory development in the neighborhood may be developed to incorporate shops on the ground floor and offices or residences on the upper floors. Large-Lot V' LUralll Single- family large -lot residential uses will be regulated. Outside of the urbanizing areas the size of the lots will be based on Denton County requirements. The remaining land within these areas would remain as agricultural uses. O'Ch er V' es'ident'ialll Residential uses will occur within the downtown university core, community mixed -use centers, regional mixed -use center, and employment centers. Some areas of the downtown university core may not be appropriate for residential uses. Multistory structures may develop uses other than residential such as office, retail, and service uses. Uses may occur in separate structures but follow a pattern of development that focuses on the mixed -use center. Commercial Land Use Categories Regionalll Mixed-Use Act'iv'ity Center For a regional activity center, the focus area contains the shopping, services, recreation, employment, and institutional facilities supported by and serving an entire region. A regional activity center could include a regional shopping mall, a number of major employers, restaurant and entertainment facilities, a large high school or community college, and high- density housing. A regional activity center is considerably larger and more diverse in its land uses than any other activity center. It includes vertically integrated uses where different uses may occur on each floor of the building. Community Mixed-Use Act'iv'ity Center The focus area of a community activity center contains the shopping, services, recreation, employment, and institutional facilities that are required and supported by the surrounding community. Thus, a community activity center could contain a supermarket, drug store, specialty shops, service stations, one or more large places of worship, a community park, midsize offices, and employers, high- to moderate density housing, and perhaps an elementary or middle school. It includes vertically integrated uses where different uses may occur on each floor of the building. Ne'iglhmllh oorlliood Mixed -Use Act'iv'ity Center The focus area of a neighborhood center contains facilities vital to the day -to -day activity of the neighborhood. A neighborhood center might contain a convenience store, small restaurant, personal service shops, church or synagogue, daycare, individual office space, a small park, and perhaps and elementary school. These diverse facilities are ideally located in close proximity to one another in the center, so that all the essential neighborhood facilities are in one convenient location, accessible in a single stop or by walking or biking. It includes vertically integrated uses where different uses may occur on each floor of the building. Downtown University Core District Specified commercial areas of the downtown university core district should be places of great vitality, with a mix of educational, residential, retail, office, service, government, cultural, and entertainment development. The health and vitality of the area can contribute in a major way to the city, its local and regional image, and quality of life. It is a place where residents can live, work, learn, and play in the same neighborhood. It includes different uses which may occur on each floor of the building. Industrial Land Use Categories VorrdUstor'ialll Centers Industrial centers are intended to provide locations for a variety of work processes and work places such as manufacturing, warehousing and distributing, indoor and outdoor storage, and a wide range of commercial and industrial operations. The industrial centers may also accommodate complementary and supporting uses such as convenience shopping and child -care centers. There will most likely be instances where residential uses will be incompatible with industrial and manufacturing processes used in industrial centers. Adequate public facilities shall be a criterion by which zoning is granted. E.omrmp oyrnent Centers Employment centers are intended to provide locations for a variety of workplaces, including limited light manufacturing uses, research and development activities, corporate facilities, offices, and institutions. Employment centers are also intended to accommodate secondary uses that complement or support the primary workplace uses, such as hotels, restaurants, convenience shopping, and child -care. Adequate public facilities shall be a criterion by which zoning is granted. Exhibit 5 Proposed Future Land Use Designations Residential Land Use Categories V' LUralll Areas (0.2 dLA /ac or °I. Unit per 5 acres) This category includes farms and ranches as the predominant use along with rural (very low density) residential and rural commercial including feed stores, farm equipment, etc. This land use may allow lots as small as one acre under the gross density provision to allow for conservation development which clusters smaller lots while permanently protecting scenic rural open space. This land use may also include single - family homes on large lots, which is suited for areas on the periphery of the city that complement a more suburban type of development. V' es'ident'ialll . - ILow Density "Estate" (up to g dweilliling units Ilpeur, acur'e) This category includes the city's predominantly single - family neighborhoods, with lot sizes ranging from an acre or more in rural fringe areas to 1/3 acre lots throughout many of the City's suburban subdivisions. Compact developments that include clustered, small lots with substantial retained open space are encouraged. V' es'ident'ialll ­- Moderate Density " "Tiradi'doinalll" (6A 2 dw'6l1l'ing Units per acre) This category accommodates single - family detached housing on small lots, typical of Denton's more compact, established single - family neighborhoods and low -rise apartment dwellings and townhomes. This land use is appropriate for areas within the central areas of Denton and transition areas between established single - family neighborhoods and mixed use or commercial areas that can accommodate greater density, or adjacent to corridors. V' es'ident'ialll ­- fflglli/ Urban Density (Over] dw'6l1l'ing Units per acre) This category provides for high- density apartment dwellings, life care, and similar housing types. Creating opportunities for this type of housing will become increasingly important to respond to demographic shifts and related changing housing preferences of retirees and young adults and demand for affordable housing. This is ideally suited near major activity and employment centers and in areas suitable for future transit service. Mixed Use Land Use Categories Downtown Denton This designation applies only in and around Downtown Denton and includes moderate and high density residential, commercial, office, entertainment, and other uses except industrial, tailored to encourage a greater level of activity, while protecting the scale and strengthening the character of Downtown and its historic core. Downtown 'Trans'it'ion Area This designation applies to residential and commercial areas adjacent to the Downtown core that are affected by their proximity to Downtown. This designation serves to create compatible form and uses for the areas that serve to strengthen both the Downtown and adjacent neighborhoods. Reg'ionalll Mixed-Use This designation is aimed at areas that serve as regional destinations within Denton, and includes moderate and high density residential, commercial, office, entertainment and other uses except industrial, at the highest levels of scale and density within the City and with unique development standards tailored to the walkable urban character and day and nighttime activity of an urban center. Major medical /health care institutions and the areas of influence around them are included in this land use category. This land use is located primarily along 1 -35 interchanges to encourage the greatest regional accessibility. Community Mixed-Use This designation is intended to promote a mix of uses, of which various commercial uses remain predominant, but where residential, service, and other uses are complementary. Where applied to established arterial corridors characterized by "strip" commercial uses, the intent is to encourage infill and redevelopment for a more diverse and attractive mix of uses over time. Examples include residential units over commercial uses or a wider array of economically viable uses to replace obsolete uses such as former car sales lots and vacated big box stores. Such areas also may represent opportunities for the introduction of higher density and mixed housing types, without impacting, nearby single - family neighborhoods. N e'igliiborliiood Mixed-Use This designation applies to neighborhoods or districts where the predominant use is residential, but with a mix of compatible housing types and densities along with local- serving, nonresidential retail, service uses. Such use mixes are typically found in in -town neighborhoods that accommodate "corner stores" and other local services. This district is also applied in areas suited to a diverse mix of housing types and densities. Ensuring that buildings are of the appropriate scale and intensity is critical. Business hnnovat'ion This designation is intended for large tracts of land that are appropriate for well - planned, larger scale office and employment parks with supporting uses such as retail, hotels, and residential. Primary uses include office, research and development, and light manufacturing. The primary uses should be developed in a campus -like or corporate park setting with generous, linked open space to maximize value and to promote visual quality and compatibility with the surrounding area. Univ eors'ity'Trans'it'ion Area This land use applies to residential and commercial areas adjacent to University of North Texas (UNT) and Texas Woman's University (TWU) that are affected by their proximity to the university. This district serves to create compatible form and uses for the areas that serve both the university and adjacent neighborhoods. Non - Residential Land Use Categories Coornorn eorc'oialII This designation applies to concentrations of commercial uses, including regional, community, and neighborhood shopping centers and "big box" retail and conventional highway "strip" commercial development. Such properties may not be expected to undergo redevelopment or a change in use over the plan horizon, and the immediate areas in which they are located may not be suitable for the introduction of mixed uses. While some new commercial centers are anticipated, in general new retail and commercial service uses are encouraged within more diversified mixed -use centers rather than as stand -alone shopping centers or expanding highway commercial "strips." Government/ hnSt'itUfionalll This designation applies to government owned land, university and college campuses, and similar large - scale institutional activity centers. VondUstr4 Commerce This designation applies to areas where the predominant use include both light and heavy industrial uses, such as manufacturing, assembly, and fabrication; wholesaling and distribution; and corporate office and technology parks, which may be introduced to replace underutilized, heavy industrial uses. Parllks and Open Spac e This designation applies to existing large scale parks and protected open spaces of citywide significance which are expected to remain as open space in perpetuity. Potential future large -scale park acquisitions, as well as smaller neighborhood parks and recreational uses, are shown on the Parks, Open Space, and Natural Resources map. Exhibit 6 Draft Denton Plan Update Outline I1"1�, eft 11 d,� IFront IMeatter i. Letters from the Mayor and City Manager ii. Acknowledgements iii. TOC iv. List of Figures V. Executive Summary 1.0 Plan (Framework 1.1 Purpose of the Comprehensive Plan: Setting a Course for the Future 1.2 Denton: Past and Present 1.3 Plan Development Process Phase 1 • Informational /Mobile Meetings • Denton Plan203O.com • Engage Denton and Social Media • Citizens Advisory Committee • Technical Advisory Committee • Denton Plan Ambassadors • Kick off Open House Phase 2 • Stakeholder Interviews • Community Forum 1: Issues and Aspirations • Community Surveys • Growth Trend Scenario Phase 3 • Development of the Community Vision Statement • Alternative Growth Scenarios • Community Forum 2: Selecting your Future! • Preferred Growth Concept • Fiscal Impact Analysis Phase 4 • Community Forum 3: Reviewing the Comprehensive Plan Phase 5 • Planning and Zoning Commission and City Council • Public Hearings and Adoption 1.4 Plan Organization • Elements • Themes 2.0 (Land Use 2.1 Overview • Land Use in the Vision Statement 2.2 Existing Land Use • Existing Land Use Table 2.3 Land Use Goals, Policies, and Actions 2.5.1 Grow Compactly 2.5.2 Grow with Purpose 2.5.3 Grow our Assets 2.5.4 Grow Resourcefully 2.5.5 Grow with Character 2.5.6 Grow with Balance 2.4 Future Land Use Map and Land Use Designations • Residential • Rural Areas • Low Density Estate • Moderate Density Traditional • High/ Urban Density • Mixed -Use/ Centers • Downtown Denton • Downtown Transition Area • Regional Mixed Use • Community Mixed Use • Neighborhood Mixed Use • Business Innovation • University Transition Area • Non - Residential • Commercial • Government/ Institutional • Industrial Commerce • Parks and Open Space 3.0 INscall and IEconoirnk Vkallfity 3.1 Overview • Economic Development in the Vision Statement • Discussion of Themes 3.2 Goals and Policies • Economic Diversification • Business attraction • Student Retention • Jobs/ Housing Balance • Fiscal Sustainability 4.0 Corr mu.unky Character 4.1 Overview • Community Character in the Vision Statement 4.2 Placemaking and Urban Vitality • Existing Character Areas in Denton • Public Art • Arts and Culture 4.3 Urban Design and Character • Overview • General Urban Design Principles • Specific Design Guidelines • Residential • Mixed -Use • Non - Residential • Centers • Corridors • Gateways 4.4 Historic Resources • Preservation of Historic Resources • Financial Incentives • Heritage Tourism 5.0 Conservation and lEnvr ronment 5.1 Overview • Conservation and Environment in the Vision Statement 5.2 Parks and Recreation • Goals and Policies 5.3 Open Space, Natural Resources, and Conservation • Goals and Policies 6.0 IMoWlI ty 6.1 Overview • Mobility in the Vision Statement • Discussion of Themes • Sustainability/ Air Quality Goals • Public Health Goals 6.2 Vehicular Circulation • Goals and Policies • Travel Demand Management • Parking Standards • Car Sharing 6.3 Bicycle Circulation • Goals and Policies 6.4 Pedestrian Circulation • Goals and Policies 6.5 Transit Circulation • Goals and Policies 7.0 Housing and N6ghborhoods 7.1 Overview • Housing and Neighborhoods in the Vision Statement 7.2 Housing and Neighborhoods — Existing Conditions • Goals and Policies • Housing Diversity • Affordable Housing • Neighborhood conservation 7.3 Schools and Community Services • Goals and Policies 8.0 Corr mu.unky Health, Safety, and Servkes 8.1 Overview • Community Health, Safety and Services in the Vision Statement 8.2 Planning For Healthy Communities • Goals and Policies 8.3 Hazard Mitigation • Goals and Policies • Gas Wells • Disaster Preparedness 8.4 Emergency Services • Police and Fire 8.5 Social Services and Programs • Goals and Policies • Youth • Seniors • Volunteer Opportunities • Homeless • Environmental Justice 9.0 IFacflhfies and Governance 9.1 Overview • Facilities and Governance in the Vision Statement • Green Infrastructure 9.2 Energy • Goals and Policies 9.3 Water • Goals and Policies 9.4 Wastewater • Goals and Policies 9.5 Stormwater • Goals and Policies 9.6 Solid Waste • Goals and Policies 9.7 Facilities • Goals and Policies 10.0 II mplleirmentatfion and IMonkodng 10.1 Overview 10.2 Principles for Application and Compliance • Legal Authority • Principles 10.3 Adoption, Amendments, Monitoring and Update • Adoption • Amendments • Monitoring and Updating • Action Plan Glossary City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com I N71" N File #: S114 -0002, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Planning and Development CM/ ACM: John Cabrales Date: August 19, 2014 SUBJECT Receive a report; hold a discussion, and give staff direction regarding offering one year extensions for qualifying properties with Non Annexation Agreements that will expire in early 2015. BACKGROUND The Denton Plan, adopted in 1999 called for an aggressive annexation policy. Following this policy, the City of Denton instituted a number of annexations. In 2009, Freese and Nichols was hired to perform an annexation study. In 2010, annexation of large portions of the Extraterritorial Jurisdiction was initiated. As part of the annexations in 2010 the City Council approved several ordinances for Non Annexation Agreements (NAAs) in areas designated as: DH1; DH2; DH3; DH4; DH5; DH11; DI-114; PAA1; PAA2; PAA3; and PAA4. Pursuant to the Texas Local Government Code, properties with agricultural, wildlife management or timberland uses must be offered a NAA. In total 177 agreements were signed for 226 properties. These properties represent about 4,700 acres and, based on the number of residential units shown in Denton County Appraisal District records, contain approximately 95 residential structures with an estimated population of approximately 200 inhabitants. In the adopting NAAs, the subject properties were exempt from annexation for a period of 5 years. These agreements are set to expire on February 9, 2015, and March 2, 2015. The 2010 agreements did not state annexation would be voluntary at the expiration of the agreement; thus, staff is recommending issuing a one - year extension of the agreements that includes language allowing for voluntary annexation in April, 2016, when these agreements expire. This will allow the City to voluntarily annex these properties, completing the goal of closing holes in the city boundary and annexing strategic areas. Some properties will still be subject to annexation in 2015. During staff's review of the properties slated for the one year extensions, it is anticipated that some properties may have either violated the terms of the first NAA or, choose not to sign the extension of the NAA. Properties that violated the agreement may be annexed at any time. Properties that choose not to extend the agreement may be annexed when their current agreement expires in 2015. In order to streamline the process staff recommends annexing both types of properties on the same schedule. Annexations of these properties will begin in January 2015 and conclude in the late spring or early summer of 2015. Exact dates are pending the City Council meeting schedule for 2015. City of Denton Page 1 of 3 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: S114 -0002, Version: There will be some costs associated with the extension of NAA's and the annexations. Because the properties subject to agreements are intermixed with annexed properties, many City services are already being provided or are being provided to adjacent properties, the costs of annexation will be primarily related to notification required by State law and loss of revenue from fire and emergency service agreements with Denton County. There will be costs for preparing, mailing, and filing new agreements. OPTIONS Direct staff to proceed with the extension of the NAA for one year as proposed. RECOMMENDATION Staff recommends to proceed with the annexations as presented. ESTIMATED SCHEDULE OF PROJECT Agreements expire in early 2015. Depending on Council direction staff will immediately begin working to draft, send, and bring back signed non annexation agreements. PRIOR ACTION /REVIEW (Council, Boards, Commissions) July 29, 2014 - City Council work session FISCAL INFORMATION Exact figures are unknown at this time however the costs of annexation will be primarily related to notification required by State law and loss of revenue from fire and emergency service agreements with Denton County. There will also be costs for preparing, mailing, and filing new agreements. BID INFORMATION Not applicable EXHIBITS 1. Staff Analysis 2. Service Plan for Properties Annexed in 2010 3. Map of Non Annexation Agreements 4. Draft Annexation Schedule Respectfully submitted: Brian Lockley, AICP, CPM Director of Planning and Development Prepared by: Michele Berry, AICP City of Denton Page 2 of 3 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: S114 -0002, Version: 1 Associate Planner City of Denton Page 3 of 3 Printed on 8/15/2014 powo and by I ogiFfl ar nvl Exhibit I Staff Analysis CITY OF DENTON DEVELOPMENT REVIEW COMMITTEE STAFF REPORT P &Z Date: N/A TYPE: Report CC Date: August 19, 2014 PROJECT #: SI14 -0002 Project Number: Not applicable Request: Receive a report, hold a discussion, and give staff direction regarding the upcoming expiration of Non - Annexation Agreements. Applicant: Property Owner: Location: Size: Zoning Designation: Future Land Use: Case Planner: DRC Recommendation: Summary of Analysis: In N/A DH 1, DH2, DH3, DH4, DH5, DH 11, DH 14, PAA1, PAA2, PAA3, PAA4. 4,760+ None `Rural Areas' and `Neighborhood Centers' Michele Berry, AICP Continue with Annexation processes. In 2010 staff initiated an aggressive annexation per Element Two of the City's Growth Management Strategies within the Denton Plan (Pages 23) states: "Adopt an aggressive annexation policy in order to manage the density and quality of growth within the current ETJ and maintain the city's existing certificate of convenience and necessity (CCN) ". At that time Freese and Nichols was brought on as a consultant to provide a study of potential annexation areas. Based on their study and researched costs, staff moved forward with annexations based on City Council direction. As a result, over 7,000 acres were annexed or signed non - annexation agreements. Per Tx.LGC §43.035, a municipality is prohibited from annexing land that is appraised for ad valorem tax purposes as agricultural, wild life management or timberland use under Chapter 23 of the Texas Tax Code unless the municipality offers to make a development agreement with the landowner under Tx.LGC §212.172 and the landowner declines to make the agreement. The proffered development agreement may not exceed a total of forty -five (45) years, and must guarantee the continuation of the ETJ status of the qualifying area and authorize the enforcement of all regulations and planning authority of the municipality that do not interfere with the use of the area for agriculture. Id. at §43.035(b). The development agreement restricting the municipality's right to annex all or part of the property is void if the landowner files any type of subdivision plat or related development document for the area regardless of how the area is appraised for ad valorem tax purposes. Id. at §43.035(4). This may require annexation of certain properties even if the general direction from City Council is to extend the agreements. In accordance with Per Tx.LGC §43.035, each owner of property was currently appraised for ad valorem tax purposes as agricultural, wild life management or timberland use under Chapter 23 of the Texas Tax Code was offered a non - annexation development agreement. Neither the agreement nor the annexation will affect the tax exemption status of these properties. As previously stated these agreements will expire on February 9, 2015 and March 2, 2015. Process Offering an extension of the NAAs is required for most properties. The agreements sign in 2010 did not include language to allow for voluntary annexation at the expiration of the term of the agreement. Per the Texas Local Government Code we must offer a Non Annexation Agreement before annexing land with agricultural, wildlife or timberland exemptions. However, we can Total Acres No. Properties with NAA NAA acres No. NAAs DH1 315 4 268 1 DH2 258 23 231 14 DH3 421 18 312 11 DH4 347 18 271 17 DH5 124 11 310 5 DH6 9 0 0 0 DH8 29 0 0 0 Dh10 87 0 0 0 DH11 388 5 83 4 D H 13 16 0 0 0 DH14 30 1 2.5 1 PAA1 1,171 39 842 33 PAA2 1,472 26 491 26 PAA3 1,075 24 873 17 PAA4 1,555 57 1,080 48 Total 7,297 226 4,763.5 177 Per Tx.LGC §43.035, a municipality is prohibited from annexing land that is appraised for ad valorem tax purposes as agricultural, wild life management or timberland use under Chapter 23 of the Texas Tax Code unless the municipality offers to make a development agreement with the landowner under Tx.LGC §212.172 and the landowner declines to make the agreement. The proffered development agreement may not exceed a total of forty -five (45) years, and must guarantee the continuation of the ETJ status of the qualifying area and authorize the enforcement of all regulations and planning authority of the municipality that do not interfere with the use of the area for agriculture. Id. at §43.035(b). The development agreement restricting the municipality's right to annex all or part of the property is void if the landowner files any type of subdivision plat or related development document for the area regardless of how the area is appraised for ad valorem tax purposes. Id. at §43.035(4). This may require annexation of certain properties even if the general direction from City Council is to extend the agreements. In accordance with Per Tx.LGC §43.035, each owner of property was currently appraised for ad valorem tax purposes as agricultural, wild life management or timberland use under Chapter 23 of the Texas Tax Code was offered a non - annexation development agreement. Neither the agreement nor the annexation will affect the tax exemption status of these properties. As previously stated these agreements will expire on February 9, 2015 and March 2, 2015. Process Offering an extension of the NAAs is required for most properties. The agreements sign in 2010 did not include language to allow for voluntary annexation at the expiration of the term of the agreement. Per the Texas Local Government Code we must offer a Non Annexation Agreement before annexing land with agricultural, wildlife or timberland exemptions. However, we can include language that allows for annexation at the expiration of the term of the agreement. Staff recommends extending the NAA's for one year. To extend the non - annexation agreements staff would draft a extension contract and send to all property owners that currently have a Non Annexation Agreement and who still have designation as agriculture, wildlife management, or timberland uses for tax purposes. The agreements would need to be approved by Ordinance prior to their expiration in 2015. Staff has set a goal of having the extensions approved in December, 2014. Some properties may be annexed in 2015. These are properties that either violated the original NAA from 2010 or that choose not to sign the extension of the NAA. Both of these categories of properties can be annexed following the short tract process allowed in the Texas Local Government Code. For properties that choose not to sign the extension, annexation process may start prior to the expiration of the agreements but cannot conclude until after the expiration of the agreements. To streamline the process staff recommends annexing properties that violated the terms of the first NAA at the same time as properties that choose not to extend the NAAs. Combining the process for these properties will reduce the administrative burden and achieve the same result. Staff anticipates send notices of intent to annexation in January 2015 and concluding annexations in late spring /early summer of 2015. The process for annexing will be: 1. Update the Service Plan 2. Send Notices of Intent to Annex 3. 1st Public Hearing 4. 2nd Public Hearing 5. 1st Reading of the Ordinance 6. Publication of the Ordinance 7. 2nd Reading and Adoption of the Ordinance Tx.LGC §43.056 sets forth the requirements for the provision of municipal services. The City must complete a Service Plan for the areas proposed for annexation. The Service Plan must provide for "full municipal services" in the annexed area no later than two and one -half (21/2) years after the effective date of the annexation unless: (1) the City cannot reasonably provide certain services within that period; and (2) the City proposes a schedule for providing the services that extends not longer than four and one -half (41/2) years after the effective date of the annexation. Id. at §43.056(b). Tx.LGC §43.056(c) defines "full municipal services" as "services provided by the annexing municipality within its full - purpose boundaries, including water and wastewater services and excluding gas or electrical service." Immediate Services The City is required to provide the following services to the proposed areas on the effective date of the annexation: (1) police protection; (2) fire protection; (3) emergency medical services; (4) solid waste collection, except as provided by subsection (o). Subsection (o) provides that a municipality is not required to provide collection service to a person who continues to use the collection services of a privately owned collection service; (5) operation and maintenance of water and wastewater facilities in the annexed area that are not within the service area of another water or wastewater utility; (6) operation and maintenance of roads and streets, including road and street lighting; (7) operation and maintenance of parks; and (8) operation and maintenance of any other publicly owned facility, building or service. Service Plan Limitations A Service Plan may not: (1) require the creation of another political subdivision; (2) require a landowner in the area to fund the capital improvements necessary to provide municipal services in a manner inconsistent with Chapter 395 unless otherwise agreed to by the landowner; or (3) provide services in the area in a manner that would have the effect of reducing by more than a negligible amount the level of fire and police protection and emergency medical services provided within the corporate boundaries of the municipality before annexation. Id. at §43.056(f) Before the second (2nd) anniversary of the date an area is included within the corporate boundaries of the City by annexation, the City may not: (1) prohibit the collection of solid waste in the area by a privately owned solid waste management service provider; or (2) impose a fee for solid waste management services on a person who continues to use the services of a privately owned solid waste management service provider. Id. at §43.056(n) The City is not required to provide solid waste collection services to a person who continues to use the services of a privately owned solid waste management service provider. Level of Services The Service Plan may not provide for services in the annexed areas that would reduce the level of fire, police and emergency medical services within the City. Id. at Tx.LGC § 43.056(t)(3). Second, the service plan must provide the annexed areas with a level of services comparable to or superior to the level of services available in other parts of the City with land -uses and population densities similar to those reasonably contemplated or projected in the area. However, if the area had level of services equal to the services provided within the corporate boundaries of the City the Service Plan must maintain that same level of services. Finally, if the annexed area had a level of service for maintaining the infrastructure of the area superior to the level of services provided within the City, the Service Plan must maintain the infrastructure of the annexed area at a level of services that is equal or superior to the level of services previously enjoyed in the annexed area. Id. at Tx.LGC § 43.056(g). Timing of Extending Utilities Tx.LGC §43.056 does not require that the City provide a "uniform level of full municipal services" to each area of the municipality if different characteristics of topography, land use and population density constitute a sufficient basis for providing different levels of service. Id. at §43.056(m). The City is not required to extend its services to a newly annexed area prior to the extension of services to prior existing like areas within the City. Length of Validity of Service Plan A Service Plan is effective for ten (10) years. A person residing or owning land in an annexed area in a municipality with a population of less than 1.6 million such as the City of Denton, may enforce the Service Plan by applying for a writ of mandamus no later than the second (2nd) anniversary of the date the person knew or should have known the municipality was not complying with the Service Plan. Upon application for a writ of mandamus, the City has the burden of proving the services have been provided in accordance with the Service Plan. Id. at Tx.LGC §43.056(1). Fiscal Impacts Based on the 2010 annexation and Non Annexation Agreements filed then, if the City were to annex there would be approximately 4,700 acres, containing 95 residences added to the City. Based on a standards multiplier of 2.1 persons per residence we expect the annexed population to be approximately 200 people. Service would be required for these lands and residents. However, based on the pattern or intermixed annexed and non - annexed properties most services are already being provided in these areas. Fiscal impacts can be expected based of the requirement to provided service and collect tax revenues in annexed areas and are presented by Department below: Department Change in Revenue Change in Cost Net Solid Waste 30,000 30,000 0 Library 0 0 0 Streets 0 0 0 Parks 0 0 0 Water and Wastewater 0 0 0 Fire and Emergency Medical Services - 53,441 164,000 - 217,441 Police 0 0 0 DME 0 1 0 0 General Fund 0 Total Denton Solid Waste staff anticipates these annexations to be neutral in terms of fiscal impacts to their programming. The cost of service is charge as a fee to residents to cover City expenses. Though many of these properties cost more to serve due to their remote location, services are required for neighboring properties annexed and 2010 and trucks are already driving to many of these locations. Denton Solid Waste would offer a two year extension to property owners, giving them two years after the date of annexation to switch from their current provider to Denton Solid Waste. Maximum revenue would be about 30,000 which would cover expenses. Libraries staff do not anticipate revenue loss. However, they may purchase new materials to maintain their current 2 books to 1 person ratio for materials. Streets department does not anticipate any additional cost. City of Denton streets is currently serving most of these areas as the agreement with the County to shared maintenance has expired. Water and Waste Water Utilities do not anticipate any changes to their service area or cost based on annexation. It has not been the policy of the City to extend service for future development but to have the development provide for needed extension of water and waste water service. In addition, the City currently has CCNs that show service area for City utilities and private utilities. Service is provided based on these CCNs and not on City Limits. Some areas in the ETJ are on City of Denton water and sewer. Changing the City Limits would not change the service are for Water and Sewer services. Parks does anticipate increase demand for facilities based on the annexation of these properties. When these areas develop our regulations regarding open space, park fees, park land dedication or fee in -lieu will apply. This should generally meet the needs of new residents in these areas as they are developed. Fire and Emergency Medical Services does anticipate a loss in revenue. City of Denton Fire Department currently has an agreement with Denton County to provide emergency medical and fire services. The county currently pays the City for these services. If the non - annexation areas are brought into the City it would reduce the payment the county makes to the City on an annual basis to ensure County residents are served. The department also expects a change in cost as they will likely need to hire an additional inspector to cover inspections in the newly annexed areas. The cost of this inspector includes salary, training, equipment, and a vehicle. The cost would go down after the first year as training and equipment will have been purchased. Police Department does not anticipate increased cost or services. Police are regularly driving through these areas to service annexed properties and the population increase if annexed in not large enough to require additional staff or equipment. They do not anticipate any additional cost at this time. Denton Municipal Electric also has a prescribed service area that will not be affected by a change in the city limits. Their fees are designed to cover cost of services. DME anticipates no change in revenue or cost. Gas Wells division currently performs annual inspections of gas wells in the ETJ. With the annexation we expect 31 gas wells to come into city limits. Exhibit 2 Service Plan for Properties Annexed in 2010 CITY OF DENTON SERVICE PLAN 2010 Annexation L AREA ANNEXED The areas to be annexed include approximately 7,480 acres of land contained in fifteen (15) areas. Four (4) of the 15 areas are primarily located within the northwestern quadrant of the City of Denton's Extraterritorial Jurisdiction (ETJ), Division 1 and are identified as PAAl, PAA2 South, PAA3 and PAA4. These areas include approximately 5273 acres of land. The remaining eleven (11) areas are unincorporated ETJ pockets and are located within the body of the City of Denton's corporate limits and are identified as DH -1, DH -2, DH -3, DH -4, DH -5, DH -6, DH -8, DH -10, DH -11, DH -13 and DH -14. These areas include approximately 2207 acres of land. The proposed annexation contains multiple owners in 15 distinct areas, as shown on the attached location map. A general description of each area is also attached. II. INTRODUCTION This service plan has been prepared in accordance with the Texas Local Government Code, Sections 43.021; 43.065; and 43.056(b) -(o) (Vernon 2008, as amended). Municipal facilities and services to the annexed areas described above will be provided or made available on behalf of the City of Denton in accordance with the following plan. The City of Denton shall provide the annexed tract the levels of service, infrastructure, and infrastructure maintenance that are comparable to the levels of service, infrastructure, and infrastructure maintenance available in other parts of the City of Denton with similar topography, land use, and population density. III. AD VALOREM (PROPERTY OWNER) TAX SERVICES A. Police Protection Police protection from the City of Denton Police Department shall be provided to the areas annexed at a level consistent with current methods and procedures presently provided to similar areas on the effective date of the ordinance. Some of these services include: 1. Normal patrols and responses; 2. Handling of complaints and incident reports; 3. Special units, such as traffic enforcement, investigations and special weapons; and 4. Coordination with other public safety support agencies. As development commences in these areas, sufficient police protection, including personnel and equipment will be provided to furnish these areas with the level of police services consistent with the characteristics of topography, land utilization and population density of the areas. Upon ultimate development, police protection will be provided at a level consistent with other similarly situated areas within the city limits. B. Fire Protection The Denton Fire Department (DFD) will provide emergency and fire prevention services to the annexation areas. These services include: 1. Fire suppression and rescue; 2. Pre - hospital medical services including triage, treatment and transport by Advanced Life Support (ALS) fire engines, trucks and ambulances; 3. Hazardous materials response and mitigation; 4. Emergency prevention and public education efforts; 5. Technical rescue response; and 6. Construction Plan Review and required inspections. Fire protection from the City of Denton shall be provided to the areas annexed at a level consistent with current methods and procedures presently provided to similar areas of the City of Denton on the effective date of the ordinance. As development commences in these areas, sufficient fire protection, including personnel and equipment will be provided to furnish these areas with the level of services consistent with the characteristics of topography, land utilization and population density of the areas. It is anticipated that fire stations planned to serve areas currently within the City of Denton will be sufficient to serve areas now being considered for annexation. Upon ultimate development, fire protection will be provided at a level consistent with other similarly situated areas within the city limits. C. Emergency Medical Service The Denton Fire Department (DFD) will provide the following emergency and safety services to the annexation areas. These services include: 1. Emergency medical dispatch and pre - arrival First Aid instructions; 2. Pre - hospital emergency Advanced Life Support (ALS) response; and transport; 3. Medical rescue services. Emergency Medical Services (EMS) from the City of Denton shall be provided to the areas annexed at a level consistent with current methods and procedures presently provided to similar areas of the City of Denton on the effective date of the ordinance. As development commences in these areas, sufficient EMS, including personnel and equipment will be provided to furnish these areas with the level of services consistent with the characteristics of topography, land utilization and population density of the areas. 2 Upon ultimate development, EMS will be provided at a level consistent with other similarly situated areas within the city limits. D. Solid Waste Solid Waste and Recycling Collection Services will be provided to the newly annexed property immediately upon the effective date of the annexation at a level consistent with current methods and procedures presently provided to similar areas within the city. Private solid waste collection service providers operating in the affected area immediately prior to annexation and currently providing customers with service, may continue to provide their existing service for up to 2 years in accordance with Texas Local Government Code. E. Wastewater Facilities All the proposed annexation areas are within the City of Denton Sewer Service Area as defined by Certificate of Convenience and Necessity (CCN) Number 20072 as issued by the Texas Commission on Environmental Quality (TCEQ). As development commences in these areas, sanitary sewer mains will be extended in accordance with the provisions of the City's codes, ordinances and regulations. City participation in the costs of these extensions shall be in accordance with applicable City ordinances and regulations. Capacity shall be provided consistent with the characteristics of topography, land utilization, and population density of the areas. Sanitary sewer mains and lift stations installed or improved to City standards within the annexed areas which are located within dedicated easement, rights -of- way, or any other acceptable location approved by the City Engineer, shall be maintained by the City on the effective date of this ordinance. Operation and maintenance of wastewater facilities in the annexed areas that are within the service area of another water utility will be the responsibility of that utility. Operation and maintenance of private wastewater facilities in the annexed area will be the responsibility of the owner. F. Water Facilities PAA1, PAA4, DH -1, DH -2, DH -3, DH -4, DH -5, DH -6, DH -8, DH -10, DH -11, DH -13, and DH -14 annexation areas are within the City of Denton Water Service Area as defined by Certificate of Convenience and Necessity (CCN) Number 10195 as issued by the Texas Commission on Environmental Quality (TCEQ). PAA2S and PAA3 annexation areas lie within the City of Denton Water Service Area as defined by Certificate of Convenience and Necessity (CCN) Number 10195 as issued by the Texas Commission on Environmental Quality (TCEQ). Bolivar Water Supply Corporation is dually certified in portions of this area under CCN Number 11257. Connections to existing City of Denton water distribution mains for water service will be provided in accordance with existing City ordinances and policies. Upon connection to existing distribution mains, water service will be provided at rates established by city ordinance. As new development occurs within these areas, water distribution mains will be extended in accordance with Denton's Codes, ordinances and utility service policies. City participation in the costs of these extensions shall be in accordance with Denton's codes and ordinances. Water service capacity shall be provided consistent with the characteristics of topography, land use and population density of the area. Operation and maintenance of water facilities in the annexed area that are within the service area of another water utility will be the responsibility of that utility. Existing developments, businesses or homes that are on individual water wells or private water systems will be allowed to continue to remain on these systems until a request for water service is made to the City. These requests for service will be handled in accordance with the applicable utility service line extension and connection policies currently in place at the time the request for service is received. G. Roads and Streets Emergency street maintenance shall be provided within the annexation areas on the effective date of the applicable ordinance of acceptance. Routine maintenance will be provided within the annexation areas and will be scheduled as part of the City's annual program and in accordance with the current policies and procedures defined by the ordinance and /or as established by the City Council. Any construction or reconstruction will be considered within the annexation areas on a City wide basis and within the context of the City's CIP and /or yearly fiscal budgetary allotments by the City Council. Roadway signage and associated posts will be replaced in priority of importance starting with regulatory signs, then warning signs, then informational signs and in conformance with fiscal allotments by the City Council. If a sign remains, it will be reviewed and placed on the City's inventory listing for routine replacement. All exiting signs will be reviewed for applicability and based upon an engineering study. New signs will be installed when necessary and based upon an engineering study. Routine maintenance of road /street markings will be placed on a priority listing and scheduled within the yearly budgetary allotments by the City Council. H. Parks, Playmunds, Swimming Pools M Residents within the areas annexed may utilize all existing park and recreation facilities, on the effective date of this ordinance. Fees for such usage shall be in accordance with current fees established by ordinance. As development commences in these areas, additional park and recreation facilities shall be constructed based on park policies defined in the Park Master Plan and as specified in the Park Dedication and Development Ordinance. The general planned locations and classifications of parks will ultimately serve residents from the current City limits and residents from areas being considered for annexation. L Publicly Owned Facilities Any publicly owned facility, building, or service located within the annexed area, and not otherwise owned or maintained by another governmental entity, shall be maintained by the City of Denton on the effective date of the annexation ordinance. J. Other Services Other services that may be provided by the City of Denton, such as municipal and general administration will be made available on the effective date of the annexation. The City of Denton shall provide level of services, infrastructure, and infrastructure maintenance that is comparable to the level of services, infrastructure, and infrastructure maintenance available in other parts of the City of Denton with topography, land use, and population density similar to those reasonably contemplated or projected in the area. III. UNIFORM LEVEL OF SERVICES IS NOT REQUIRED Nothing in this plan shall require the City of Denton to provide a uniform level of full municipal services to each area of the City, including the annexed area, if different characteristics of topography, land use, and population density are considered a sufficient basis for providing different levels of service. IV. TERM This service plan shall be valid for a term of ten (10) years. Renewal of the service plan shall be at the discretion of City Council. V. AMENDMENTS The service plan may be amended if the City Council determines at a public hearing that changed conditions or subsequent occurrences make this service plan unworkable or obsolete. The City Council may amend the service plan to conform to the changed conditions or subsequent occurrences pursuant to Texas Local Government Code, Section 43.056. I Exhibit 3 - Map � gf Non AlUiexation A emeqp Annexation tsounilaries K. :j I ra m Legend N Addresses �MM Non-Annexations w E Of DENr FON Centerline S . . . . . . NAlnninq Dppmllfmln� -US 7,200 DENTON _j I Certified County Parcels 1 � "" "" I=F,,t I Exhibit 4— Draft Annexation Schedule Timeline for 2015 to Extend Non Annexation Agreements and Annex properties that no longer qualify for agreements or choose not to extend the agreement Time Task Status December Create comprehensive list of all properties Complete 2013 /January 2014 and which are eligible for NAA extension and which are not. April -May 2014 Internal Meetings: Complete Department Heads: April 28, 2014 Complete City Manager's Office: May 20th Complete August 19, 2014 Work Session to Obtain City Council Scheduled Direction August 2014 Draft NAA extensions Late August /Early Mail out NAAs with timeline to return September, 2014 /update services plans Late Ensure all agreements are gathered September /Early October, 2014 December, 2014 CC ordinance to extend NAAs on consent agenda January, 2015 Mail notice of intent to annex February -March Public hearings to annex properties 2015 *dates to be established with 2015 calendar March -April 2015 Readings of annexations and final adoption *dates to be established with 2015 calendar City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com l l EN ",I N Legislation Text File #: ID 14 -0431, Version: 1 Agenda Information Sheet DEPARTMENT: Finance ACM: Bryan Langley Date: August 19, 2014 SUBJECT Receive a report; hold a discussion, and give staff direction regarding the 2014 -15 Proposed Budget, Capital Improvement Program and Five -Year Financial Forecast. BACKGROUND The FY 2014 -15 City Manager's Proposed Budget was submitted to the Council on July 25, 2014. Staff provided the City Council with a comprehensive overview of the proposed budget at a Budget Work Session on July 31, 2014. In addition, the City Council held work sessions on the proposed budget on August 5 and August 12. During these meetings, the City Council asked a number of questions and requested a variety of information concerning the proposed budget. In response to the questions, staff provided a memorandum to the City Council on August 12 to detail the questions and answers that staff had compiled. In Exhibit 1, an additional memorandum is provided to summarize the remaining questions and answers that had not been previously provided to the City Council. The purpose of this agenda item is to provide the City Council with an additional opportunity for questions and dialogue. Below is the schedule we will follow to adopt the budget and tax rate: August 19 Public Hearing on Proposed Budget 1" Public Hearing on Tax Rate September 9 2nd Public Hearing on Tax Rate September 16 City Council Adopts Budget and Tax Rate I look forward to discussing the budget materials in detail with you. If you have any questions, or need additional information, please let me know. EXHIBIT 1. Budget Discussion Memorandum City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File M ID 14 -0431, Version: 1 Respectfully Submitted: Chuck Springer, 349 -8260 Director of Finance City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl MEMORANDUM DATE: August 19, 2014 TO: Honorable Mayor and Members of the City Council FROM: Chuck Springer, Director of Finance SUBJECT: City Council Budget Workshop Questions and Responses Information regarding the FY 2014 -15 Proposed Budget and Five Year Forecast was presented to the City Council on July 31 and additional discussion was held on August 5 and August 12. Below is a summary of the questions and requests, from the City Council as I understand them, and the responses compiled to date. 1. Please provide results of the most recent salary survey. The City received initial data from this salary survey conducted by the firm of T. R. Edgar and Associates in July. The final report is anticipated to be completed by the end of August and will be sent to the City Council under separate cover. 2. Please provide information on how much the City saves by being self insured. It is difficult to determine the actual amount of savings the City has realized since moving to self - funding in 2008. Staff enlisted the assistance of Scott Gibbs at McGriff, Seibels, & Williams (McGriff), the City's benefit's consultant, to help estimate this figure. McGriff prepared a chart (Attachment 1) which summarizes the City's actual costs for medical and pharmacy claims, administrative costs, and stop loss insurance costs, and compares that total with a theoretical fully- insured premium. McGriff used a 7% trend factor to increase the fully- insured premium each year. Using 7% is extremely conservative as our high claims cost years in 2008 and 2012 would have resulted in fairly substantial premium increases, while the other years would have been closer to our actual claims trend number of 9 %. Based on McGriff s projections the City has saved $11,994,969 since we moved to a self - funded health plan in 2008. This figure includes a projected savings of $2,872,313 for 2014. 3. Please schedule a work session on reviewing the use of Tree Preservation Funds. The Parks and Recreation Department has recommended using $15,000 of Tree Fund revenue to replace $15,000 in the General Fund Botanical account. These funds would be used to add trees to parks, replace trees in medians, parks, and public buildings that die or are destroyed by vehicles. If the City Council would like to consider the expenditure of additional Tree Fund revenue, the Parks Department would recommend spending Question and Answer Memorandum August 19, 2014 Page 2 of 5 $110,000 to plant and irrigate 215 trees in South Lakes Park. This planting has been requested by the citizens many times and would follow the existing trail to provide shade for the walkers and runners. This item will be discussed further during the August 19th Council meeting. 4. Please provide the proposed Bicycle & Pedestrian Coordinator major job duties. A draft job description for this proposed position is included as Attachment 2. 5. Please provide an update on the Neighborhood Empowerment Grant program and Better Block program. The Neighborhood Empowerment Grant program is managed by Neighborhood Planning within the Planning and Development Department and budgeted for $50,000 for the fiscal year. Currently, five applications have been received, evaluated, and approved for a total of $40,220. Therefore, $9,780 remains for this program year that may paid to qualified neighborhood organizations or groups for neighborhood projects. Staff is preparing an informal staff report on the neighborhood organizations or groups that have received funding through this program along with the neighborhood projects that have been approved. A description of this program is included as Attachment 3. The Better Block project is a planning tool that acts as a living charrette to obtain feedback from the community in real time on the redevelopment of a designated project area. It allows communities to actively engage in the build -out process and looks for innovative solutions to achieve the shared vision of the community. Beyond the temporary improvements that show how a street could be improved, structures redeveloped and repurposed, one of the strongest outcomes of the Better Block project is creating a greater sense of community. The process for selecting a potential location includes significant community feedback to get "buy in" that not only fosters greater involvement but also promotes participation the day of the event. Through this process, the Better Block consultants survey potential areas and present potential program locations to the community. During this process is when the Better Block location is selected and the consultants guide this process with the community to the actual event. Generally, the Better Block program occupies a city street that is between 200 -400 linear feet and contains vacant buildings and /or underutilized buildings and spaces, preferably near a residential neighborhood that has access to public transit and allows for other means of connectivity (i.e., vehicular, bicycle, or pedestrian). The Better Block program differs from the traditional planning process not only in the process for site selection and implementation but also in the level of involvement and degree of private investment. The traditional planning process involves an assessment of existing conditions, then visioning, define goals and objectives, a needs analysis, alternative scenarios, plan development, finally strategies and actions. These actions Question and Answer Memorandum August 19, 2014 Page 3 of 5 surround community involvement that provides feedback at various stages of the process. The site selection is based on initial feedback due to an issue or concern by the community or public officials After researching several locations throughout the City, staff along with the consultants selected the former Piggly Wiggly site, located at 619 East Sherman Drive. On June 28, the Better Block consultants hosted a Better Block event in partnership with the Denton Community Market to redevelop the site by reducing the scale of the structures to create a destination for multiple businesses that the community could embrace. The concept for this event was to reduce the existing scale of the former grocery store by converting parking spaces into a "Main Street" where pedestrians could access multiple shops or store fronts along the eastern edge of the building and enjoy pedestrian amenities such as a splash pool made from hay bales, a water fountain, a stage for live entertainment, and shade covered parklets built from pallets. According to the consultants, the event was attended by an estimated 5,000 individuals. All of the attendees surveyed desired more walkable environments with small local retail options and public amenities. A high percentage of attendees also expressed their desire to see additional redevelopment projects. Staff is in the process of finalizing the report for public view, and will also prepare a detailed Informal Staff Report to discuss the Better Block project. 6. Please provide a financial forecast for the Airport Fund. The Airport Pro Forma, presented as Attachment 4, projects financial performance through the 2018/19 Fiscal Year based upon operation of the Airport Fund as an enterprise fund in conformance with the 2010 Airport Business Plan adopted by the City Council. Revenue and expenditures projected for Fiscal 2015/16 through Fiscal 2018/19 show financial performance at the current level of operations. As the Airport Fund Appropriable Balance continues to diminish, each annual budget will require consideration of funding for proposed operating and capital expenditures that are controllable. Following is a brief explanation of certain line items in the Airport Pro Forma which may be considered in more detail with each fiscal year: 1. Revenues are projected to increase based upon a conservative estimate of Airport Land Lease adjustments and FBO Commissions on fuel sales, with the exception of specific projects that are shown with a detailed increase in lease revenue from investments in property improvements funded by Certificates of Obligation or direct expenditure from the Airport Fund Appropriable Balance. The overall objective of investment in property improvements is to generate lease revenue sufficient to cover annual debt service on borrowed funds plus an operating margin. Minimum investment guidelines have previously been presented to the City Council for discussion and direction to staff. Lease revenue from hangar development and purchase of land to be leased to a current Airport aviation business are shown in Question and Answer Memorandum August 19, 2014 Page 4 of 5 detail for Fiscal 2014/15. Future investment opportunities will be presented to the City Council with financial pro forma to related to development cost and projected revenue. 2. Capital Projects as shown for Fiscal 2015/16 through Fiscal 2018/19 are projected and do not represent specific development opportunities. The total of Capital Projects for these future years is $1,450,000 and this would not be spent without specific City Council approval of a future project. 3. Operating Revenue exceeds Operating Expenses through Fiscal 2018/19. Non - Operating financial activity is projected at an annual loss due to decreasing gas well royalty revenue and transfer expenses which can be reviewed with each annual budget and evaluated regarding the appropriate level of funding. The projection of Gas Well Royalty revenue is conservative, but based upon actual past performance of Airport gas wells. The Airport Pro Forma is presented as a financial management tool to project future performance at current levels of financial activity. All revenue and expense calculations are subject to annual review and budgeting based upon City Council operating policy for Denton Enterprise Airport. 7. Please provide an analysis on Health Inspection workload, similar to the Building Inspection workload presentation. The City has three health inspectors responsible for the inspection of approximately 137 public pools and 638 food establishments. In addition to these regular inspections, the health inspectors perform inspections for beer /wine establishments, final health inspections, temporary food inspections, food handler renewals and perform inspections due to complaints. For FY 2011 -12 health staff performed a total of 3,218 inspections which included 1,269 food establishment inspections. In FY 2012 -13 they performed 3,244 inspections which included 1,283 food establishment inspections. During the peak summer months, community improvement officers perform some pool inspections in order to meet seasonal demands. 8. Please provide a five -year financial forecast for the Tourist and Convention Fund. A five -year financial forecast is presented as Attachment 5. The forecast is based on the recommended FY 2014 -15 budget for this fund. Question and Answer Memorandum August 19, 2014 Page 5 of 5 9. Please explain what expenses can be funded from the Downtown TIRZ. This item will be discussed during the August 19th Council meeting. 10. Please give a breakdown of the supplemental package for the "Tech Denton" Economic Development Initiative. This supplemental package is recommended for funding at $220,000 for FY 2014 -15. It includes the addition of one position at a cost of $93,305. The remaining funds of $126,695 are budgeted for programs, events, marketing and promotions. L V! C i ?` 0 S 4� LL > O p d :Ll 'o U� c LL w d CO m co m v N II O OD O O N Ol C A A H 'f 1 E y E +M f a X m o r N� N O S '. N r N N w r0 w r0 N N M NI....... (O O �' M N v N- e m r cq U m r Ira' N m ;u V fA _,, fA m fA N N cq N M � � V N r m x o r M .. N m IoZ O a O M m V M NI. m T _ "` N N M N c M c A m m er .: rn m m m U N wr:,M1', N NfA � M W r N� ib X N O N N M O �I....... S 4 t? M m m V OD N cV N N m m� r,��N�q �� N N � c N N p (p N � M V � X V V NN O �,,,Nry M OD w N ............. fA O tT 8 O r M m � m O m V_ c m M r O O M A m m c n. of r o U � f;; w NM w o � � N x E °o of m � N V ry m m O V N OI c 4 In r M r N O oo 0....... ..w O N o `n h 4D c M r � p M m � N O m m p M N_ M - M m N N K n M N M m N r V O m N M O pp OO �,V ',i yr. V V A m N O m N (O M O N N p0 ........M N M wqr m M m W m r 0 O m M N M� u�Ntl M mM r U� c y� X K N p O m r m pp Op .... Mr O V N V (O om M O 0........ N N V O M O M (O NI N m m p�j m M N O w r � g o K ro n o0 � M N O OD N M m O M Q NI. ...� N N �w N p Z U m m fA M f;; V �r r c_ E E ! D v a A ':D oNf � O A N E v a a a _ oa y N LL r E E T w> o O O n E 15 'I!D; w E_ X E v a a LL c N A o t�0 N n IA',h U LL U Ol N E O N F O` E O n q v A o A oa'z)v A a c�U .Mz m co m v N II O OD O O N Ol C A A H 'f 1 E y E +M f Attachment 2 City of Denton Job Description Title: Bike and Pedestrian Coordinator Department /Division: Transportation Reports to: Director of Transportation Effective Date: Revision Date: Position ID: Career Ladder: FLSA Designation: Definition: This position is intended to work with advocates, local elected officials, business leaders, media, law enforcement, transit providers, general public and City of Denton staff to build partnerships providing leadership and vision so these groups may embrace and implement facilities and programs that increase the number of residents engaging in active transportation. The position would coordinate with various departments to develop and maintain the bike and pedestrian network through data collection, design, street marking, signage, marketing and educational efforts with the primary goal of encouraging active transportation and improving multi - modal opportunities for the citizens of Denton. Key Responsibilities: • Plans, develops, implements, promotes and monitors the City of Denton Active Transportation Plan (Pedestrian and Bicycle Linkage Component of the Denton Mobility Plan). • Provides centralized coordination of Engineering, Streets, Planning and Development, Parks and Recreation and Transportation for the implementation of the City of Denton Active Transportation Plan. • Researches, plans, develops and coordinates needs with respect to bicycle and pedestrian issues identified in the Comprehensive Plan, Mobility Plan and any additional regulatory planning policy documents. • Develops and implements bicycle and pedestrian related educational and promotional resources, programs, campaigns and events. • Participates in the design and implementation of bicycle and pedestrian facilities. • Coordinates with staff from other City of Denton departments, TxDOT and the North Central Texas Council of Governments. • Identifies, monitors and manages regional, state and federal bike and pedestrian grant opportunities. • Develops grant proposals to advance active transportation initiatives. • Participates in developing program management plans and strategic plans to include program budgeting and financial management. • Plans, develops, coordinates and implements City of Denton Bike Share Program. • Prepares comprehensive reports and assists in the preparation of agenda material for the Denton City Council Mobility Committee and the Traffic Safety Commission. • Assists in developing and managing City of Denton Active Transportation website. 1 Attachment 2 • May represent the City in regional bicycle planning and advocacy discussions. • Prepares purchase orders, work orders and other related materials; schedules meetings, conferences, and maintains project files and records. • Serves as part of various intra -and inter - departmental project planning efforts and teams. • Conducts research assignments of moderate to complex nature. • Verifies billing information, prepares invoice documentation and prepares draw down requests. Additional Duties: • Performs other duties as assigned Physical Requirements: Overall Strength Demands: The following describes the overall strength demand of the functions performed by the incumbent during a typical workday. ❑ Sedentary ❑ Light ® Medium ❑ Heavy ❑ Very Heavy Physical Demand Codes: The following describes if the incumbent is expected to exert the following physical demands during a typical workday and the overall frequency. Codes for "how often ": Y =Yes E = extensive (100 -70 %) N =No M = moderate (60 -30 %) I = infrequent A = almost never (20 -10 %) ( <10 %) Machines, Tools, Equipment and Work Aids: The essential functions of this position require the operation of light vehicles and bicycles, standard office equipment including computers, printers and copiers as well as planning and design software. Environmental Factors: The essential functions of this position are performed in an office environment with on -site visits including conducting traffic studies at various intersections to observe conditions in diverse environmental conditions. Minimum Qualifications / Acceptable Equivalency: • A Bachelor's degree in Urban Planning, Community and Regional Planning, Transportation Planning, Engineering, Public Administration, Management or a related field and three (3) years of progressively responsible experience in planning, traffic management, or project management. OR • A Master's degree in Urban Planning or Community and Regional Planning and one (1) year of progressively responsible experience in planning, traffic management, or project management. 2 Task Code Task Code Task Code Task Code 1. Standing M 6. Pushing /Pulling M 11. Crawling 1 16. Vision Y 2. Sitting M 7. Overhead Work 1 12. Bending M 17. Hearing Y 3. Walking M 8. Fine Dexterity M 13. Twisting 1 18. Talking Y 4. Lifting 1 9. Kneeling A 14. Climbing 1 19. Video Display Y 5. Carrying A 10. Crouching A 15. Balancing M 20. Other Machines, Tools, Equipment and Work Aids: The essential functions of this position require the operation of light vehicles and bicycles, standard office equipment including computers, printers and copiers as well as planning and design software. Environmental Factors: The essential functions of this position are performed in an office environment with on -site visits including conducting traffic studies at various intersections to observe conditions in diverse environmental conditions. Minimum Qualifications / Acceptable Equivalency: • A Bachelor's degree in Urban Planning, Community and Regional Planning, Transportation Planning, Engineering, Public Administration, Management or a related field and three (3) years of progressively responsible experience in planning, traffic management, or project management. OR • A Master's degree in Urban Planning or Community and Regional Planning and one (1) year of progressively responsible experience in planning, traffic management, or project management. 2 Attachment 2 OR • Any combination of related education, experience, certifications and licenses that will result in a candidate successfully performing the essential functions of the job. Core Competencies: • Well- developed knowledge of planning principles and practices • In -depth knowledge of one or more planning specialization, such as economic development, transportation planning, or environmental planning • Group facilitation skills for use with community workshops • Ability to work on several projects or issues simultaneously • Ability to work independently or in a team environment as needed • Ability to form and maintain effective relationships with coworkers and customers • Ability to comprehend, analyze and make decisions from written material • Exceptional organizational and project management skills • Possess effective oral and written communications skills in business English for use in presentations, memorandums, letters, blogs, and marketing materials • Ability to maintain regular and punctual attendance Conditions of Employment: • Must have a valid Class "C" Driver's License and valid state required minimum automobile liability insurance prior to employment (must obtain Texas Class "C" driver's license and state required minimum automobile liability insurance within 30 days of hire per state law) • Must pass a drug test, driver's license check, criminal history background check, and social security number verification check • Must pass a physical examination • Must be able to work outside of regular business hours as required Preferences: • Bilingual in Spanish and English • Prior experience in public education, outreach and community events. • Two (2) years of planning experience in a growing city /county with a population of 90,000 or greater; with at least two (2) years of project management experience. This job description is not an employment agreement, contract agreement, or contract. Management has exclusive right to alter this job description at any time without notice. 3 Attachment 3 The Neighborhood Empowerment Program (NEP) provides matching grant funds to qualified neighborhood organizations or groups for neighborhood projects which promote long term, public benefit to neighborhoods, and to citizens of Denton. Neighborhood projects were funded based on their ability to: • Improve the appearance of the neighborhoods and promote maintenance and enhancement of the neighborhood which will increase the neighborhood's and adjacent neighborhood's property value; • Establish community pride in the neighborhoods by involving neighborhood residents more directly in all phases of the neighborhood development; • Improve public safety by establishing traffic control devices, monuments and other improvements; and • Improve public health by preserving and enhancing the environment promote the public health, welfare and safety. This matching grant consists of four broad categories as described below: ■ Physical improvements to neighborhood entryways, perimeter areas, street borders and medians, parks, playgrounds, tot lots, and other neighborhood amenity areas. Such improvements may include landscaping, tree plantings, signage, equipment, decorative structures, and similar beautification or enhancement projects. Physical improvement Projects must be performed in a public right -of -way or on public property. Projects on property owned by a neighborhood or homeowners association will be considered on a case by case basis, if it is shown to provide a communal benefit to the neighborhood. ■ Public safety programs or initiatives, such as safety training, crime or fire prevention programs, traffic deterrent or calming projects or studies. ■ Cultural, educational, and recreation programs including literacy programs, leadership training, computer labs, after - school enrichment programs, cultural arts programs, and summer camps. ■ Neighborhood master plan or comparable studies that focus on enhancing the neighborhood. These must not contain plans currently being developed by the City. N d 'n 'n 7 - C, C 7 r- O C1 C ° Cl 00 O N C N C1 7 N N M N 7 C V M N 41 C l° l° N l° Cl C C, C, N N~ a C, � vii Nw ° 14 I° O M Cl r- ' Cl ° '! 7 - r- Cl O r- O r- N Cl - O M r- C1 r` C1 M r` M C1 C O � O O r o r N O N O O l° M N 'n � v t 't r` N ~ 7 r Vl Cl M Cl ' N Vl Ql M �° N Vl C O E M Vl O M V I° Cl C c a W c O " a � W a� bA a wwC) 7 M C ~O O N C Cl V C N Cl C M N N C � C, 7 C 06 Ic Ic C N r C M N I° 7 O C r C M Vl C 7 7 C I° N V C Vl M N r- ' - C v� 7 C r N 7 V 7 M V ,cn O C1 V C O O C N N O M M M r- C 7 N Cl C l° C1 C ID ID 7 C N I° Cl C N N C a N O O ., a M O O C W a Cl O O VJ W a O y � r w w m r L �y a W a Io z 2 C7 F 2 Q� H F O O O V C1 Cl O V C` Ic O" C= O 7 7 7 M L �y a W O O p n Cl Cl O Cl r 0 0 0 O M 7 7 L �y a W r L O O M u al ~ 7 7 fn L �y a W I° O O M O O C\ 7 0 O O .p ti f 41 M Vl M O O C\ L a W 7 O O M r O O p y 'y O O CC M r` O Ic N 7 y O N w w M O 0 7 7 O M N C1 7 00 w °o c N •R N � A p a�w v v o a a 'n 'n 7 - C, C 7 r- O C1 C ° Cl 00 O N C N C1 7 N N M N 7 C V M N 41 C l° l° N l° Cl C C, C, N N~ a C, � vii Nw ° 14 I° O M Cl r- ' Cl ° '! 7 - r- Cl O r- O r- N Cl - O M r- C1 r` C1 M r` M C1 C O � O O r o r N O N O O l° M N 'n � v t 't r` N ~ 7 r Vl Cl M Cl ' N Vl Ql M �° N Vl C O E M Vl O M V I° Cl C c a W c O " a � W a� bA a wwC) 7 M C ~O O N C Cl V C N Cl C M N N C � C, 7 C 06 Ic Ic C N r C M N I° 7 O C r C M Vl C 7 7 C I° N V C Vl M N r- ' - C v� 7 C r N 7 V 7 M V ,cn O C1 V C O O C N N O M M M r- C 7 N Cl C l° C1 C ID ID 7 C N I° Cl C N N C 0 0 O r 0 O O O N 69 0 O O O N 69 0 O O N V9 ° ^O � -o w a � w � U � O' o cQ � U N Y (]y Q a cC " 3 U T � a o a a W a c � W a O y � r w w m r g a Io z 2 C7 F 2 Q� H F 0 0 O r 0 O O O N 69 0 O O O N 69 0 O O N V9 ° ^O � -o w a � w � U � O' o cQ � U N Y (]y Q a cC " 3 U V� N b ri c i LL Q VI a c N Q O 3 U W ate+ j 7 Q U u O O O W U - U O U N Q N N f0 N 0 yam„ > 0 CC Q +O+ X N d -O 3 U O O 2 H +' O N a U v v v LL > a U 3 0 c ao = U v v m > 0 tA pp U C X > N O_ O W •c p 0 U 0 O U OC C O W O G N U > +�+ m w 2 Z 2 U 0 H H O Ln O w Ln I, m O M M 0 M O O m o m Ln I, w O W a) O O ' N O m v Lr io O Lo Lo v O Ln v m oo Ln w v r-I Ln m I, W Ln .--� a) N - N Ln .--i a) 0 00 Ln N (n c-I c-I M V1 V> V1 V1 V1 V1 O I, O w O n r-I O -4 N w W O O I, O o0 O r, ZT O O m O O O ' Ln O m Ln Ln w O W co O N O Ln W Lr l0 W l0 O c-I c-i c-i N Ol O ci 00 N W 0 w 00 n N � W N c-I in in V1 V> V> O Ln O W O I- O Ln Ln (n N co O O o0 O r-I m I, r1 I, co -:1- O O O O O io m Ln io io N of co O Ln m m Ln N w I, Ln M W I, (n Ln ci 00 n 00 w 000 I, co M N O O Ln 00 N I� -4 00 W O ' r, ' N 0 Ln Ln ' Ln O O O1 cL6-I n -4 � LLnn Z W w 001 ci 00 w I, N -4 N co c-I a-I a-I o o Ln of Ln I, w Lo of r1 0o o o F� of Ln I� o O (n co O O Ln ' m N Ln Zt N Ln O N N N l0 Ol O1 l0 ci -:F O .--I 00 w 00 co O N N c-I a-I a-I O o o I, o 0 1, N co r, -4 0 0 0 ZT O m I, N W r-I Ln O O O ' I� ci M r� ' n (1 Ln Ln O O .--I m l0 l0 l0 M I- l0 rI Oc-I M Ln ZT 00 r, w m ci O rq co ri c-i c-i M 00 O ZT w W (n Ln M w ' M r-I w m ' M N w W 00 N m Ol -ze -:F c-I Ol I-I M ^ ZT � N N O c-I a-I a-I a-I C CW G T N 16 U Q- N + C W > N M W 0 X d * V W 16 O U N '0 M W M O 00 a N a) 3 '0 N •� p0[ 00 > 3 X m N i N C 7 (n +± W '0 -0 W 0 ++ 3 W ++ U Ly -0 3 >. w Q W C N 0 W ++ V Q ++ U i w N Q- N u x C C C� W y0,, i 16 110 m E O CL .� N N W� N 000 N +' m 'ZI '0 V O 7 O C C C , C W p Q LL y O. O C U O O.0 i Q O Q LL O W £ y -4 Ur 'ZI X V> ++ f0 C C C Q 0 C W W N > >> •� i- O > O O T O W C C C C U Q f0 M 0 W }, CL N O O O 7 O O O C Ln y N LO 0 U' U U U d U H W r-I Q L Q 3F 3F N v v o oo m o oo N Ln Ln O O v `n O 01 F F- 0 000 L Ln m m ` O a m l-0 0 0 �Lrl N ri - to D Do � L Ln of m r-i 0 r c i U U r r, O -1 t ^ W m r m r NW OC } 0 0 LL L LL VI :T n n O O w w Ln I I, O-zt N N (n 00 0 N n 0 n n nj 0 0 ' N 00 w r ' m M M .--I 0 00 W NW c O: e c-I c ci c ci 0 LL 0 VI :T - -:I- O O N N O O O i0 m - -zt co N O O I I, W W m m 00 t to O I, l l a-I ri O O L Ln I I, m O O m -4 0 00 (n Wl0 O O l l0 •� w ^ r w ^ 00 Il N O OC r ri r ri N N } 0 0 LL L LL in m 0 00 n n 0 0 00 c co l0 0 i Q Q l l0 L Ln L L(i f - -0 W W O O 0 00 c co p[ r ri r ri c c-I O LL O f Vf 1 0 00 0 00 0 0o Ln m m w w W W O 0 0 O O N O O r r1 c c-I c c-I s L a LL a > m m L Ln ` `n a-I � � rn Q 2 N Ln m m M M O r N ri r ri LL W W Lfl V VII VI en r O Ol' l l0' l lC C ' C a c N Q O 3 U W ate+ j 7 Q U u O O O W U - U O U N Q N N f0 N 0 yam„ > 0 CC Q +O+ X N d -O 3 U O O 2 H +' O N a U v v v LL > a U 3 0 c ao = U v v m > 0 tA pp U C X > N O_ O W •c p 0 U 0 O U OC C O W O G N U > +�+ m w 2 Z 2 U 0 H H O Ln O w Ln I, m O M M 0 M O O m o m Ln I, w O W a) O O ' N O m v Lr io O Lo Lo v O Ln v m oo Ln w v r-I Ln m I, W Ln .--� a) N - N Ln .--i a) 0 00 Ln N (n c-I c-I M V1 V> V1 V1 V1 V1 O I, O w O n r-I O -4 N w W O O I, O o0 O r, ZT O O m O O O ' Ln O m Ln Ln w O W co O N O Ln W Lr l0 W l0 O c-I c-i c-i N Ol O ci 00 N W 0 w 00 n N � W N c-I in in V1 V> V> O Ln O W O I- O Ln Ln (n N co O O o0 O r-I m I, r1 I, co -:1- O O O O O io m Ln io io N of co O Ln m m Ln N w I, Ln M W I, (n Ln ci 00 n 00 w 000 I, co M N O O Ln 00 N I� -4 00 W O ' r, ' N 0 Ln Ln ' Ln O O O1 cL6-I n -4 � LLnn Z W w 001 ci 00 w I, N -4 N co c-I a-I a-I o o Ln of Ln I, w Lo of r1 0o o o F� of Ln I� o O (n co O O Ln ' m N Ln Zt N Ln O N N N l0 Ol O1 l0 ci -:F O .--I 00 w 00 co O N N c-I a-I a-I O o o I, o 0 1, N co r, -4 0 0 0 ZT O m I, N W r-I Ln O O O ' I� ci M r� ' n (1 Ln Ln O O .--I m l0 l0 l0 M I- l0 rI Oc-I M Ln ZT 00 r, w m ci O rq co ri c-i c-i M 00 O ZT w W (n Ln M w ' M r-I w m ' M N w W 00 N m Ol -ze -:F c-I Ol I-I M ^ ZT � N N O c-I a-I a-I a-I C CW G T N 16 U Q- N + C W > N M W 0 X d * V W 16 O U N '0 M W M O 00 a N a) 3 '0 N •� p0[ 00 > 3 X m N i N C 7 (n +± W '0 -0 W 0 ++ 3 W ++ U Ly -0 3 >. w Q W C N 0 W ++ V Q ++ U i w N Q- N u x C C C� W y0,, i 16 110 m E O CL .� N N W� N 000 N +' m 'ZI '0 V O 7 O C C C , C W p Q LL y O. O C U O O.0 i Q O Q LL O W £ y -4 Ur 'ZI X V> ++ f0 C C C Q 0 C W W N > >> •� i- O > O O T O W C C C C U Q f0 M 0 W }, CL N O O O 7 O O O C Ln y N LO 0 U' U U U d U H W r-I Q L Q 3F 3F O Ln O w Ln I, m O M M 0 M O O m o m Ln I, w O W a) O O ' N O m v Lr io O Lo Lo v O Ln v m oo Ln w v r-I Ln m I, W Ln .--� a) N - N Ln .--i a) 0 00 Ln N (n c-I c-I M V1 V> V1 V1 V1 V1 O I, O w O n r-I O -4 N w W O O I, O o0 O r, ZT O O m O O O ' Ln O m Ln Ln w O W co O N O Ln W Lr l0 W l0 O c-I c-i c-i N Ol O ci 00 N W 0 w 00 n N � W N c-I in in V1 V> V> O Ln O W O I- O Ln Ln (n N co O O o0 O r-I m I, r1 I, co -:1- O O O O O io m Ln io io N of co O Ln m m Ln N w I, Ln M W I, (n Ln ci 00 n 00 w 000 I, co M N O O Ln 00 N I� -4 00 W O ' r, ' N 0 Ln Ln ' Ln O O O1 cL6-I n -4 � LLnn Z W w 001 ci 00 w I, N -4 N co c-I a-I a-I o o Ln of Ln I, w Lo of r1 0o o o F� of Ln I� o O (n co O O Ln ' m N Ln Zt N Ln O N N N l0 Ol O1 l0 ci -:F O .--I 00 w 00 co O N N c-I a-I a-I O o o I, o 0 1, N co r, -4 0 0 0 ZT O m I, N W r-I Ln O O O ' I� ci M r� ' n (1 Ln Ln O O .--I m l0 l0 l0 M I- l0 rI Oc-I M Ln ZT 00 r, w m ci O rq co ri c-i c-i M 00 O ZT w W (n Ln M w ' M r-I w m ' M N w W 00 N m Ol -ze -:F c-I Ol I-I M ^ ZT � N N O c-I a-I a-I a-I C CW G T N 16 U Q- N + C W > N M W 0 X d * V W 16 O U N '0 M W M O 00 a N a) 3 '0 N •� p0[ 00 > 3 X m N i N C 7 (n +± W '0 -0 W 0 ++ 3 W ++ U Ly -0 3 >. w Q W C N 0 W ++ V Q ++ U i w N Q- N u x C C C� W y0,, i 16 110 m E O CL .� N N W� N 000 N +' m 'ZI '0 V O 7 O C C C , C W p Q LL y O. O C U O O.0 i Q O Q LL O W £ y -4 Ur 'ZI X V> ++ f0 C C C Q 0 C W W N > >> •� i- O > O O T O W C C C C U Q f0 M 0 W }, CL N O O O 7 O O O C Ln y N LO 0 U' U U U d U H W r-I Q L Q 3F 3F City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com 1 EN71" N File #: HL13- 0001A, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Planning and Development CM/ ACM: John Cabrales, Jr. Date: August 19, 2014 SUBJECT Receive a report, hold a discussion, and give staff direction regarding an application from the Denton County Historical Commission for the Texas Historical Commission Recorded Texas Historic Landmark Marker for City Hall West. BACKGROUND In July 2013, a representative of the Denton County Historical Commission (DCHC) approached a Historic Landmark Committee (HLC) member and asked for HLC support on a recommendation for a Recorded Texas Historic Landmark (RTHL) designation of City Hall West. The HLC reviewed this item on November 11, 2013, and voted unanimously (8 -0) to recommend approval of a petition by the DCHC to the Texas Historic Commission for a RTHL designation of City Hall West (CHW). On March 5, 2014, the Planning and Zoning Commission voted favorably to recommend CHW for a RTHL designation. Concurrent with the review of this request was the City's review of a proposal to purchase CHW by a private developer. The request for the RTHL designation was to promote and preserve the architectural heritage of the City but may also be used as a means to protect the exterior of the structure out of concern that if CHW was purchased, the new owner would be required to notify the State before making any exterior modifications. City Hall West was designated as a local historic landmark on September 7, 1982, per Ordinance No. 82 -69 (Exhibit 1). Constructed in 1927, the building has been repurposed over time and used by several City departments. It has served as Denton's City Hall, a Fire Station, a Police Department, and now houses the City's Planning and Development Department. Any modifications to the exterior of the structure require approval of a Certificate of Appropriateness by the HLC. On April 8, staff presented this item during Council Work Session (Exhibit 2) to receive direction on this request. Also present at this meeting was Justin Kockritz, of the Texas Historical Commission (THC). Mr. Kockritz discussed the 60 -day notification requirement the property owner is to provide the THC before commencing any exterior modifications. The THC requires applications be submitted 60 days prior to any anticipated renovations. If the proposed renovation is a simple renovation such as an in -kind replacement (replacing like with like), the review time could be as short as a week. However, the first 30 days of the THC review typically consists of an evaluation of the effects the renovation could have on the building. City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: HL13- 0001A, Version: 1 At the end of the first 30 days, the THC will issue a letter that either waives the remaining 30 day review time and approves the request, or asks for more information regarding the proposal which will then be reviewed in the remaining 30 day time frame. If the building in question is one that the THC is unfamiliar with or if the proposed renovations are extensive and will have a profound effect on the integrity of the facade, an additional 30 days may be added to the 60 day time frame. At the conclusion of the meeting, Council suggested staff prepare a memo to the interested developer so there would be no misunderstanding on what was going to be considered (Exhibit 3). After this discussion, negotiations between the developer and City ceased and there have not been any additional negotiations with parties interested in the purchase of CHW. On August 1, 2014 staff prepared an Informal Staff Report to update Council on the status of this request (Exhibit 4). A representative of DCHC contacted Mayor Watts and requested further consideration of this historic designation. Mayor Watts requested that staff bring this item back to the City Council Work Session for further discussion. OPTIONS 1. Direct staff to proceed with this application by bringing forward a resolution for Council consideration. 2. Direct staff to postpone action on this request 3. Direct staff to decline participating in the application for the Texas Historical Commission Recorded Texas Historic Landmark Marker ESTIMATED SCHEDULE OF PROJECT The THC will accept the 2015 marker applications from September 1 through November 15, 2014. The next opportunity to submit 2016 marker applications will be Sept. 1 through Nov. 15, 2015. PRIOR ACTION /REVIEW (Council, Boards, Commissions) November 11, 2013 - Historic Landmark Commission voted to recommend approval of the petition. March 5, 2014 - Planning and Zoning Commission voted to forward a favorable recommendation to City Council. April 8, 2014 - City Council Work Session FISCAL INFORMATION To facilitate this request, the City would pay the $100 application fee and the $1800 historic marker costs. EXHIBITS 1. Ordinance No. 82 -69 - designating City Hall West as a local historic landmark 2. April 8, 2014, City Council Work Session Agenda Information Sheet 3. Minutes from April 8, 2014, City Council Work Session 4. Informal Staff Report - August 1, 2014, Report No. 2014 -055 5. Historical Narrative for THC Marker Application Respectfully submitted: Brian Lockley, AICP, CPM Director, Planning and Development Department City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl Exhibit 1 Ordinance No. 82 -69 Local Historic Designation for City Hall West 198L AN ORDINANCE DESIGNATING 221 NORTH ELM STREET IN THE CITY OF DENTON, DENTON COUNTY, TEXAS AS A HISTORIC LANDMARK UNDER. ORDINANCE NO 80 -30 (ARTICLE 28A OF THE COMPREHENSIVE ZONING ORDINANCE''), AND PROVIDING FOR AN EFFECTIVE DATE' WHEREAS, the Historic Landmark Commission and the Planning and Zoning Commission of the City of Denton have recommended that the property herein described be designated as a historic landmark in the City of Denton, NOW, THEREFORE, THE COUNCIL OF' THE CITY OF DENTON, TEXAS, HEREBY ORDAINS The below described property shall he class ifxed as historical zoning Block 15, Original. Town Addition, also known as the Old Municipal Building located at 221 , North Elm Street, Denton, Texas is hereby designated as a 'historic landmark under Ordinance No 80 -30, Article 28A of the Comprehensive Zoning Ordinance of the City of Denton, Texas • The historic landmark designation shall be indicated upon the zoning reap of the City of Denton by the letter "H "', and the Property herein described shall be sub]ect to all of the terms, provisions and requirements of Ordinance No 80-30, Article 28A of the Comprehensive Zoning Ordinance of the City of Denton, Texas This ordinance shall become effective from and after its date of passage PASSED AND APPROVED this the 7th day of September, 1982 r me r' M ATTEST +m APPROVED AS TO LEGAL FORM C J TAYLOR, JR , CITY ATTORNEY' CITY OF DENTON, TEXAS BY ^■ar�im H-25-DENTON HISTORICAL COMMISSION-PAGE ONi_5 Exhibit 2 April 8, 2014, City Council Work Session Agenda Information Sheet AGENDA INFORMATION SHEET AGENDA DATE: April 8, 2014 DIVISION: Planning and Development ACM: John Cabrales, Jr. SUBJECT: HL13 -0001 (221 N. Elm Street) Receive a report, hold a discussion, and give staff direction regarding an application from the Denton County Historical Commission for the Texas Historical Commission Recorded Texas Historic Landmark Marker for City Hall West (CHW). BACKGROUND In July 2013, a representative of the Denton County Historical Commission (DCHC) approached a Historic Landmark Committee (HLC) member and asked for HLC support on a recommendation for a Recorded Texas Historic Landmark (RTHL) designation of City Hall West. The item was placed on the HLC's August, 2013 agenda (Exhibit 5). During that meeting, the item was not voted on because staff informed HLC that the City Council had requested that the HLC postpone consideration of the recommendation for the RTHL until further notice. At that time, there had been significant interest in the purchase of this property by a private developer. On November 11, 2013, the HLC voted unanimously (8 -0) to recommend approval of a petition by the DCHC to the Texas Historic Commission for a RTHL designation of City Hall West, located at 221 N. Elm Street (Exhibit 1). On December 11, 2013, the Planning and Zoning Commission was briefed on this request during Work Session (Exhibit 7) and on March 5, 2014, the Planning and Zoning Commission voted to recommend CHW for a RTHL designation (Exhibit 8). The subject site, known as City Hall West was designated as a local historic landmark on September 7, 1982, per Ordinance No. 82 -69 (Exhibit 3). Constructed in 1927, the building has been repurposed over time and used by several City departments. It has served as Denton's City Hall, a Fire Station, a Police Department, and now houses the City's Planning and Development Department. Impacts of Historic Designations Timelines for approval of Exterior Modifications As a result of the local historic landmark designation, any exterior renovations must first be approved by the HLC through the Certificate of Appropriateness (COA) process (Exhibit 10). Agenda Information Sheet April 8, 2014 Page 2 of 7 The application must include copies of all detailed plans, elevations, perspectives, specifications, and other documents pertaining to the work to the HLC. If the renovations also require a building permit, the building official, will then forward the information and request to the HLC. The HLC will then hold a hearing on the application to determine if the "proposed work ... will not adversely affect any significant architectural or historical feature of the designated historic landmark, and is appropriate and consistent with spirit and purposes" of the originating ordinance. If such findings are made, the HLC will grant a COA and renovations may begin. If, however, the HLC deems the proposed work as adversely affecting or destroying "any significant architectural or historical feature of the designated historic landmark" or as "inappropriate or inconsistent with the spirit and purposes of this article," the applicant is notified and provided "with the changes necessary to secure approval of the application." Recorded Texas Historic Landmark Designation A "RTHL designation helps preserve the state's historically and architecturally significant resources" per the Texas Historical Commission (THC), (ham: / /www.thc.state.tx.us /fags). Bob Brinkman, Coordinator for the THC's Historical Marks Program, provided the following information: "Owners of RTHL- designated structures must give the Texas Historical Commission 60 days notice before any alterations are made to the exterior of the structure (interior changes, normal maintenance and in -kind replacement of materials do not require THC review). The full procedure is described in the Texas Government Code, Section 442.006 (f): "A person may not damage the historical or architectural integrity of a structure the commission has designated as a Recorded Texas Historic Landmark without notifying the commission at least 60 days before the date on which the action causing the damage is to begin. After receiving the notice, the commission may waive the waiting period or, if the commission determines that a longer period will enhance the chance for preservation, it may require an additional waiting period of not longer than 30 days. On the expiration of the time limits imposed by this section, the person may proceed, but must proceed not later than the 180th day after the date on which notice was given or the notice is considered to have expired." Normal maintenance, and interior renovations, are permissible and do not require THC review. Proposed work which would alter historical or architectural integrity of the exterior does require THC review and permission." If CHW is designated as a RTHL, in addition to the current designation as a local historic landmark, approval of any exterior modifications to the building would have to be reviewed and approved by both the THC (state) and the HLC (local). Per Chapter 442, §442.006(f) of the Texas Government Code: Agenda Information Sheet April 8, 2014 Page 3 of 7 (f) A person may not damage the historical or architectural integrity of a structure the commission has designated as a Recorded Texas Historic Landmark without notifying the commission at least 60 days before the date on which the action causing the damage is to begin. After receiving the notice, the commission may waive the waiting period or, if the commission determines that a longer period will enhance the chance for preservation, it may require an additional waiting period of not longer than 30 days. On the expiration of the time limits imposed by this section, the person may proceed, but must proceed not later than the 180th day after the date on which notice was given or the notice is considered to have expired. Normal maintenance and interior renovations are permitted and do not require prior approval from the THC. The Secretary of the Interior's Guidelines for Historic Preservation states that normal maintenance includes treatments such as rust removal, caulking, limited paint removal and re- application of protective coatings, cyclical cleaning or roof gutter systems, or installation of fencing, and alarm systems. Typically in situations where a building has been designated by both the state and the city, the THC would review the proposed renovations and approve them prior to consideration by the HLC. The review comments /approval by the THC would be included in the application reviewed by the HLC. The THC requires applications be submitted 60 days prior to the anticipated renovations. If the proposed renovation is a simple renovation such as an in -kind replacement (replacing like with like), the review time could be as short as a week. Typically however, the first 30 days of the THC review consists of an evaluation of the effects the renovation could have on the building. At the end of the first 30 days, the THC will issue a letter that either waives the remaining 30 day review time and approves the request, or asks for more information regarding the proposal which will then be reviewed in the remaining 30 day time frame. If the building in question is one that the THC is unfamiliar with, or if the proposed renovations are extensive and will have a profound effect on the integrity of the facade, an additional 30 day may be added to the 60 day time frame (Exhibit 9). After the proposed renovations have been reviewed and approved by the THC, they must be reviewed and approved by the HLC through the local COA process, which takes approximately 41 days to complete the local review. Marketability of City Hall West Another factor for consideration in obtaining a RTHL designation is the marketability of CHW. For the past eight (8) months, the City has fielded inquiries from local developers /investors interested in purchasing CHW for redevelopment. In order to determine if the RTHL designation would be beneficial in the marketability of CHW, staff reached out to a few developers to determine, from their perspective, what effect the RTHL designation would have. Agenda Information Sheet April 8, 2014 Page 4 of 7 The results were mixed with emphasis on two issues consistently noted as a positive and a negative. According to the developers /investors questioned, the designation would be viewed positively. Many businesses use the designation as a marketing tool, having an address within an historic structure is a benefit. However, the concern arises from the ability to make improvements to the exterior of the structure that would require State and City approval. They were of the opinion that the timeframes for approval of exterior work would be viewed negatively. Opportunities as a result ofRTHL Designation There are many benefits that can be obtained from obtaining the RTHL designation. Some of the benefits of RTHL designation include: 1. Access to technical preservation assistance through the THC. THC staff can assist in determining appropriate preservation methods which comply with the Secretary of the Interiors Standards for Preservation. 2. Inclusion in the Texas historic Sites Atlas; ht1p://atlas.thc.state.tx.us. 3. Increased property value. Studies have shown that property values can increase up to 20% as a result of historic designation. 4. An increase in "Heritage Tourism ". In 1997, one in ten travelers in Texas was a "heritage traveler" who was primarily interested in visiting historic sites. Heritage travelers typically stay longer, and spend more money than do non - heritage travelers. They are more often from out of state and as such, more likely to pay for lodging rather than stay with relatives. In researching the economic impacts of Heritage Tourism, the Texas Historical Commission reported that in 2002 -2003 Texas was the second most visited state by Heritage Travelers after California. The most significant state grant for rehabilitation of historic structures is through the THC, the Texas Preservation Trust Fund. Unfortunately, the Texas Preservation Trust Fund grant program was suspended by the 82nd Texas Legislature's budget reductions in 2011. Currently there are no funds available for this grant. A new State Tax Credit program was approved by the 83rd Texas Legislature in 2013. The new tax credit is equal to 25 percent of eligible costs and expenses incurred in a certified rehabilitation that totals more than $5,000 was recently approved. The tax credit may be applied against franchise tax obligations beginning Jan. 1, 2015. State historic tax credits can be transferred multiple times. Unused credits can be carried forward on up to five consecutive franchise tax reports. The Texas Historical Commission and the Texas Comptroller of Public Accounts will adopt the rules necessary to implement the new credit. Agenda Information Sheet April 8, 2014 Page 5 of 7 Partial Designation of City Hall West As noted, CHW has been repurposed over the years that have necessitated exterior modifications and changed multiple sides of the structure from the original design and construction. Past maintenance, repairs, and exterior modifications have included the removal of the old Fire Station bay doors on the north side and west side of the building. The roof has been replaced and more recently some windows on the north and south side of the building were replaced. As a result, only the front of the structure, facing Elm Street, has maintained most of the original design. Staff contacted Bob Brinkman with the THC to ascertain if a portion, (i.e., front facade) of the structure could obtain the RTHL designation. Mr. Brinkman advised that designation of part of a building or structure is not permitted by the THC but noted in order to accomplish that task the City could resort to some sort of preservation covenant or easement (facade easement) which would run with the land. He advised that these usually are for periods of 99 years and are convened to some independent body or organization. They operate much like conservation easements applied to protecting large pieces of land from future development. Proposed Capital Expenditures The age of CHW requires continual maintenance and upkeep and a consideration in whether to retain ownership of CHW should include required capital costs and maintenance cost. Facilities Maintenance has prepared a maintenance program for the next seven years to ensure CHW remains a profitable asset to the City. Pending interior improvements will include HVAC, flooring, and routine maintenance. In total these items will cost approximately $317,155. As well, the Planning and Development Department has proposed modifications to the interior lobby of CHW to make the building more conducive to the activities of the public. These modifications are designed to create more of a counter to conduct business and a wait area setting for the public. The cost of these modifications will be approximately $35,000. In total, the approximate cost for the next seven years is $352,155. Private Reinvestment A concern expressed by advocates of the City retaining ownership of CHW is that the exterior structure will be modified to the point of losing its historic integrity and the City will lose a significant piece of history. However, through some research staff identified locations where private reinvestment has occurred with no or minimal significant exterior modifications. Following are a few locations in the downtown: Agenda Information Sheet April 8, 2014 Page 6 of 7 Building Name Address Prior Use Rusty Taco, HSL, Hoochie 210 -214 E Hickory vacant warehouse / cash register store Mellow Mushroom 217 E Hickory Garbage King Warehouse Andaman Thai, Vi ne Wine 221 E Hickory HVAC Contractor Texas Building 100 W Oak executive office suites 75% vacant In preparation for this discussion, staff has reached out to Justin Kockritz, the THC Architect for our region who has agreed to attend the April 8 work session and discuss the pros and cons of a RTHL designation. Justin Kockritz is the North Texas project reviewer for the THC Division of Architecture, and he meets the Secretary of the Interior's Professional Qualifications for architectural history. At the THC, Justin is responsible for reviewing projects under Section 106 of the National Historic Preservation Act, the State Antiquities Code, Recorded Texas Historic Landmark legislation, and for the federal historic rehabilitation tax credit program. Prior to joining the THC, he worked for the North Carolina State Historic Preservation Office and as a contractor for the National Park Service and the U.S. Department of Veterans Affairs in Washington, DC. He has a Master's degree in historic preservation from the University of Maryland, and undergraduate degrees from the University of Texas in urban studies and geography. RECOMMENDATION The Planning and Zoning Commission recommends City Hall West be considered for Recorded Texas Historic Landmark (RTHL) (7 -0). The Historic Landmark Commission recommends City Hall West be considered for Recorded Texas Historic Landmark (RTHL) (8 -0). PREVIOUS CONSIDERATION 1. November 11, 2013 - Historic Landmark Commission (HL13 -0001) 2. September 7, 1982 - City Council approved Historic Landmark Designation of 221 N. Elm Street (Ord. No. 82 -69). Agenda Information Sheet April 8, 2014 Page 7 of 7 EXHIBITS 1. Location Map 2. Zoning Map 3. Ordinance 82 -69 4. HLC Recommendation Letter 5. HLC meeting minutes August 12, 2013 6. HLC meeting minutes November 11, 2013 7. P &Z Work Session meeting minutes December 11, 2013 8. P &Z meeting minutes March 5, 2014 9. RTHL Review Process 10. HLC Review Process 11. Historic Photos of City Hall West Respectfully submitted: Brian Lockley, AICP, CPM Planning and Development, Director Prepared by: Kl� *rL� oul Cindy Jackson, AICP Senior Planner Exhibit 3 CITY OF DENTON CITY COUNCIL MINUTES April 8, 2014 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, April 8, 2014 at 3:00 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 King, Council Member Roden, and Council Member Hawkins. ABSENT: None 1. Receive a report, hold a discussion, and give staff direction regarding an application from the Denton County Historical Commission for the Texas Historical Commission Recorded Texas Historic Landmark Marker for City Hall West. Brian Lockley, Director of Planning and Development, presented the details of the item. His presentation included (1) the effect of historic designation, (2) marketability of City Hall West, (3) opportunities associated with the Recorded Texas Historic Landmark (RTHL) designation, (4) partial designation of City Hall West and (5) proposed capital expenditures. The request for the historical designation was started by a "request for recommendation" from the Denton County Historical Commission. City Hall West was constructed in 1927 and had served as Denton's City Hall, a Fire Station, Theater, a Police Department and now housed the Planning and Development Department. It was designated as a local historic landmark in 1982. Effects for historic designation if proceed with State designation — a certificate of appropriateness would involve exterior work only and would also require a building permit. The Recorded Texas Historic Landmark (RTHL) designation was another process and was subject to numerous regulations. The owner of a RTHL- designated structure must give the Texas Historical Commission 60 days notice before any alterations were made to the exterior of the structure. Interior changes, normal maintenance and in -kind replacement did not require a review. The Texas Historical Commission (THC) had no review authority over most interior changes unless the proposed changes had the potential to affect the exterior of the building or structure. Normal maintenance and interior renovation were permissible and did not require THC review. Proposed work which would alter historical or architectural integrity of the exterior did require THC review and permission. Marketability of CHW - staff reached out to a few developers /investors who noted the designation would be beneficial; however, the timeframes for approval to make exterior improvements would be viewed negatively. Opportunities associated with RTHL designation included (1) recognition that a property was of local, regional or state significance, (2) protection for up to 90 days from exterior alterations, including demolition or relocation and (3) eligibility for state preservation grant funds. Mayor Burroughs asked if work done on the interior had to go through the process. Lockley stated that interior work did not have to go through the process. State Historic Designation Benefits included (1) inclusion in the Texas Historic Sites Atlas, (2) technical preservation assistance through the Texas Historic Commission, (3) increased property value, and (4) promoted tourism. Partial designation of CHW- CHW had been modified over the years to meet the needs of the City. The facade on Elm Street had remained intact so consequently staff contacted THC to determine if a partial designation was an option. Partial designation was not permitted by the THC but the City could approve a facade easement to protect the front of the building. Council Member Gregory stated that one proposal was a citywide study of all of city facilities and determine the needs with growth of staff. He suggested scheduling that first and not do this part until it was known what to do with all facilities John Cabrales, Assistant City Manager, stated that there was a proposal in the next bond package for a needs assessment study for growth. It was not known if the Bond Committee would recommend that package. Their recommendation would be released sometime in June. Council Member Roden asked what would be the point of the historical easement as the building was already protected by the city designation. Lockley stated nothing as it would be just a duplication of the designation already in place. Proposed Capital Expenditures — Factors included the age of CHW which required continual maintenance; Facilities Maintenance had prepared a maintenance program of required capital and maintenance costs for the next seven years; scheduled improvements included HVAC, flooring and routine maintenance. The Planning Department had also proposed modifications to the interior lobby to create a development assistance center to conduct business and a wait area with kiosk for the public. Total building improvements and modifications would be approximately $352,155. Justin Kockritz, Texas Historical Commission, stated that the current legislation for review required the property owner to notify the THC at least 60 days prior to any exterior work. During that period the Commission would assess if the renovations would have any effect on the historical portion of the building. The Commission would be looking at the historical features of the building and would issue a response back to the property owner within 30 days. If there were no concerns or comments needed, the last 30 day period could be waived. If the Commission needed more information it would use all of the extra 30 days. Only in the case of extreme work or demolitions would the process go to the 90 days. Council Member Gregory asked what would happen if a building had significant damage due to a fire or storm and repairs were needed to restore it to the way it was. He questioned what would be the delay with the THC. Kockritz stated that the City could take any immediate action needed to protect life and safety issues. The City would let the Commission know of the problem and they would consult with the City on long term end results. Council Member Roden asked about penalties for not following THC procedures. Kockritz stated that the legislation only required notification. If there was no notification to the Commission a fine would be levied but if the Commission was notified, there would be no fine. The THC comments were just recommendations and after 60 days an entity could do as it wished. Council Member Roden stated that the local designation had more legislation than the THC. Kockritz stated that the THC was merely recommendations and the Commission could not approve or deny the renovations. The biggest opportunity of the RHL designation was the recognition of the property. Kockritz stated that the State would be starting a state tax credit on business franchise liability with the THC designation in 2015. Properties in the National Register get a 20% federal income tax credit. City Hall West was currently not in that designation. Council Member Hawkins asked how the fine was enforced. Kockritz stated that he did not know of a fine done in the last several years. The Commission did not want to go that route if at all possible. Council Member Gregory felt that the tax credits would enhance the marketability for an outside developer. Council Member Roden felt there was some miscommunication to the public regarding the designation. The historic designation became the method of how to preserve the building. He questioned that out of all of the properties that had that sort of designation, how many had private owners. Kockritz stated that there were 3700 in the state and over half were privately owned. Half were individual homes with the remainder small commercial buildings. Council Member Roden stated that the fear was that if the City lost control of the building and it was in the hands of private citizens, it would be doomed to destruction. Kockritz stated that depended entirely on whether the building was privately or publicly owned. It depended on finding the right owner for preservation. Council Member King questioned if public entities had more flexibility for changing alternations to building. Kockritz stated that the Commission looked the same whether a private or public owner. The review would be the same and would only be looking at exterior changes. Council Member Engelbrecht felt that the only teeth would be in a local designation. Kockritz stated that often times the local designation had more teeth than the state designation as the State did not issue permits or approvals. Council Member Engelbrecht suggested identifying in advance what features could not be altered. Kockritz stated that the designation required a good historical narrative of the building and included photos. Those were what would get the building designated plus the report would mention portions that were not historical. Lockley stated that the local designation could define the architectural elements important to preserve. Mayor Burroughs stated that the designation was not a regulatory role and was more of a marketing tool. Mayor Pro Tem Kamp felt it was positive to have the designation and would have more teeth than a local designation. Everyone wanted to save the facade of the building but if the City wanted to own the building, it would have to find the money to do maintenance. But, if the building was privately owned, a developer could refurbish the interior of the building to make it useful. She also saw the benefit of someone keeping it historical and loving the building. Kockritz stated that the City could issue a request for proposal and as an element show that the company had done historical renovations. Council Member Hawkins left the meeting. Beth Stribling, Denton County Historical Chairman, stated that a historical marker was also an educational tool for the public. Lockley asked if Council wanted to proceed with historical marker and the developer negotiations. Mayor Burroughs suggested a memo to the developer so there would be no misunderstanding on what was going to be considered. The memo should go out before the next meeting so the developer could ask questions before the meeting. Council Member Engelbrecht stated that the elements of the facade that were important and significant should be discussed with a developer to get a feel on how they saw those features. Mayor Burroughs felt that was a good point and if that was already defined, it would facilitate discussion. Council Member Gregory suggested broadening that discussion to include the current owners, the public, so that they had a voice in what happened to the building. The Council should listen to what the public had to say regarding the disposition of the building. 2. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an 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. Following the completion of the 2nd Tuesday Session, the City Council convened in a Closed Meeting at 4:10 p.m. to consider the specific item listed below under the Closed Meeting section of this agenda. 1. Closed Meeting: Date: August 1, 2014 Exhibit 4 Report No. 2014 -055 Informal Staff Report - August 1, 2014 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Status of Proposed Registered Texas Historic Landmark (RTHL) designation for City Hall West. BACKGROUND: In July 2013, a representative of the Denton County Historical Commission (DCHC) approached a Historic Landmark Committee (HLC) member and asked for HLC support on a recommendation for a Recorded Texas Historic Landmark (RTHL) designation of City Hall West. The HLC reviewed this item on November 11, 2013, and voted unanimously (8 -0) to recommend approval of a petition by the DCHC to the Texas Historic Commission for a RTHL designation of City Hall West (CHW). On March 5, 2014, the Planning and Zoning Commission voted to recommend CHW for a RTHL designation. Concurrent with the review of this request by these Boards and Commissions was the City's review of a proposal to purchase CHW by a private developer. The request for the RTHL designation was to promote and preserve the architectural heritage of the City but may also be used as a means to protect the exterior of the structure out of concern that if CHW was purchased, the new owner would be required to notify the State before making any modifications. City Hall West was designated as a local historic landmark on September 7, 1982, per Ordinance No. 82 -69 (Exhibit 1). Constructed in 1927, the building has been repurposed over time and used by several City departments. It has served as Denton's City Hall, a Fire Station, a Police Department, and now houses the City's Planning and Development Department. Any modifications to the exterior of the structure require approval of a Certificate of Appropriateness by the HLC. DISCUSSION: On April 8, staff presented this item during Council work session (Exhibit 2) to receive direction on this request. Also present at this meeting was Justin Kockritz, of the Texas Historical Commission. Mr. Kockritz discussed the 60 -day notification requirement the property owner is to provide the THC before commencing any exterior modifications. The THC requires applications be submitted 60 days prior to any anticipated renovations. If the proposed renovation is a simple renovation such as an in -kind replacement (replacing like with like), the review time could be as short as a week. Typically however, the first 30 days of the THC review Date: August 1, 2014 Report No. 2014 -055 consists of an evaluation of the effects the renovation could have on the building. At the end of the first 30 days, the THC will issue a letter that either waives the remaining 30 day review time and approves the request, or asks for more information regarding the proposal which will then be reviewed in the remaining 30 day time frame. If the building in question is one that the THC is unfamiliar with, or if the proposed renovations are extensive and will have a profound effect on the integrity of the facade, an additional 30 day may be added to the 60 day time frame He noted that the review by the THC is a recommendation only and they could not approve or deny any renovations or modifications. He also stated he was also not aware of any fines levied against a property owner that had not met the notification requirements. There are many benefits that can be obtained from obtaining the RTHL designation. Some of the benefits of RTHL designation include: 1. Access to technical preservation assistance through the THC. THC staff can assist in determining appropriate preservation methods which comply with the Secretary of the Interiors Standards for Preservation. 2. Inclusion in the Texas historic Sites Atlas; http:Hatl as. thc. state. tx.us. 3. Increased property value. Studies have shown that property values can increase up to 20% as a result of historic designation. 4. An increase in "Heritage Tourism ". In 1997, one in ten travelers in Texas was a "heritage traveler" who was primarily interested in visiting historic sites. Heritage travelers typically stay longer, and spend more money than do non - heritage travelers. They are more often from out of state and as such, more likely to pay for lodging rather than stay with relatives. In researching the economic impacts of Heritage Tourism, the Texas Historical Commission reported that in 2002 -2003 Texas was the second most visited state by Heritage Travelers after California. CONCLUSION: At the conclusion of the meeting Council suggested staff prepare a memo to the interested developer so there would be no misunderstanding on what was going to be considered (Exhibit 3). After this discussion, negotiations between the developer and City ceased and there have not been any additional negotiations with parties interested in the purchase of CHW. At the request of the Mayor, staff will bring this item back to the August 19, 2014, City Council Work Session for further discussion. Date: August 1, 2014 ATTACHMENT(S): 1. Ordinance No. 82 -69 Local Historic Designation for City Hall West 2. April 8, 2014, City Council Work Session Agenda Information Sheet 3. Minutes from April 8, 2014, City Council Work Session STAFF CONTACT: Brian Lockley, AICP, CPM Director, Planning and Development Department Brian.Lockle ,cityofdenton.com 940 - 349 -8378 Report No. 2014 -055 Exhibit 5 Historical Narrative for THC Marker Application DENTON 1927 CITY HALL 221 North Elm Street Historical Narrative for THC Marker Application By Chuck Voellinger L CONTEXT Denton, Texas is the seat for Denton County, located north of Dallas and Tarrant Counties in North Texas. In the late nineteenth century, Denton had a primarily agriculturally -based economy and with the arrival of the railroad in 1881, grew from a very small town to a regional center for trade and education. The near - simultaneous establishment of two colleges in Denton, the Texas Normal College in 1890 ( now University of North Texas ) and the College of Industrial Arts (now TexasWoman's University) in 1903, signified more growth. At the time the 1927 City Hall was constructed, the following statistics give a picture of the kind of growth Denton was experiencing. Population growth of 114% between 1890 and 1899 was measured for the city, and from 1900 to 1950, the population increased 409% from 4,187 to 28,318.' In the decade when the new city hall was built, Denton experienced 25% growth becoming the 38�h largest city in Texas." With this steady growth, it was decided by government officials that a newer city hall was needed based upon the needs of a growing community, the evidence of deterioration, and cost of maintenance. Interestingly, we will see that the City decided to continue the practice of combining a fire station with other city departments in the new building. In 1894, the Denton City Hall was located in a building that had been built in 1877 for private businesses. According to the Denton Record - Chronicle, the 1877 building was constructed of red brick and located at the corner of Oak and Bolivar Streets."' In 1894 it was sold by G. H. Kimbrough to the City for $1,500.00 for use as a city hall. This structure was beginning to show signs of deterioration and finally a bond election in 1926 helped secure funding for the new facility." The 1877 building was demolished in July of 1931 after being used for several years by the City's united charities.° IL OVERVIEW By the 1920s, it had become apparent to the City of Denton that a newer, more spacious municipal building was needed to replace the structure built in 1877 and used since 1894 as both city hall and the main fire station. A bond election for the new structure for the amount of $100,000.00 was held on November 9, 1926 and passed with a vote of 527 to 429. The breakdown of the bond by building component was as follows: J.F. Johnson, Contractor: $ 87,015.00; Electrical Shop, Denton for wiring: $2,580.00; W.T. Monroe of Greenville for heating and plumbing: $8,775.00. Construction was begun on March 21, 1927 with an expected completion date of January 1, 1928. The prominent Fort Worth architectural firm of Van Slyke and Woodruff was retained to design the building. Elmer Van Slyke was a New York native who moved to Fort Worth in 1913 from Oklahoma City. He began his architectural career in Friendship, N.Y in 1885 after studying under the Button Bros. of New York City. Other notable buildings designed by the firm of Van Slyke and Woodruff in the Dallas -Fort Worth area include: The Ross Avenue Baptist Church and the Oak Cliff Christian Church in Dallas; the TCU Church and gymnasium and The First Christian Church in Fort Worth.°" Several of these structures have received national, state and local historic designation.viii PA The 1927 City Hall (also referred to as the municipal building) has elements of Spanish Colonial style as evidenced by its tiled roof and embellishments that recall similar details in Spanish Missions as found in South Texas. 'X From a Dallas Morning News article, "The new building of white brick with ornamental stone trim, consists of two stories and a basement and is of a modified Spanish type of architecture with varicolored the roof." X The description of the architectural styles employed for its design in the City of Denton 1982 historic designation ordinance states that (in the 1920's), "it was considered necessary that any buildings of any pretention to importance be designed in some recognizable historical style. The Denton city hall maintained its place in the mainstream of urban culture by adopting the style of the Spanish Renaissance, which had considerable vogue in the twenties, especially in the Southwest." X' The exterior of the building is unchanged to date with the exception of window construction, as would be expected for a building of its age. The facade has an "elaborate cast -stone ornament or Spanish Renaissance derivation extending up through the second floor to the open belfry." X11 This belfry was constructed as part of the original plan to include the fire alarm bell that had been used in the prior structure and for the same purpose. The building is a "T" shape with the main city offices located in the side facing Elm Street ( top of the "T ") and the a fire station located in the rear area (the leg of the "T "). This arrangement lasted through the 1970s until a new fire station was built right behind this structure. The fire engine bays were then bricked up. Information from the cornerstone is as follows: E. W. Van Slyke and W. L. Bradshaw, Architects; E. Ross Chamblin, Structural Engineers; J. F. Johnson, General Contractor. Cornerstone laid by: Stanfield Lodge, 4217, AM & FM, May 14, 1927.X"' The location of the new building was to be on the lot formerly occupied by the Lyon & Gray Lumber Co. at 215 North Elm Street.` The new address became 221 N. Elm St and remains so to this day. It is situated on the southwest corner of the intersection of North Elm and McKinney Streets and is located on the original Puchalski land survey for Denton County. The opening ceremonies for the new city hall building occurred on October 8, 1927 with Texas' governor Dan Moody in attendance and making the dedicating speech. In his address Gov. Moody said "Business prosperity, peace at home and social order depend on good government. The responsibility of a citizen toward his government is an individual thing. He owes to his city, town or country or state to give of his best thought and voice to the problems of government. You need not doubt that your influence is felt, regardless of the station you occupy." ` City officials at the time of the dedication included Mayor B.W. McKenzie and the following six commissioners: W.S. Miller, L. Bailey, G. Tom Turner, W. R. Lakey, Claude Castleberry and Francis M. Craddock." Additional festivities included a concert by the Denton Municipal Band and a procession of fire fighting equipment paraded around the square on their way to take up their new quarters complete with sirens blaring. "' Other dignitaries present included State Senator Margie Neal of Carthage, Dallas County Representative Ray Holder of Lancaster and State Representative Fred Minor of Denton."11 During the intervening years, the building was regularly decorated for Christmas and often mentioned in local news. ` Once again, due to the phenomenal growth of Denton since its construction in 1927, the location of City Hall was slated to be relocated to a new building, this time in the form of the current O'Neil Ford - designed Municipal Complex that includes the Civic Center, Municipal Pool, Library renovation and City Hall located several blocks away in Quakertown city park on McKinney Street. After city offices moved into their new location in 1969, The Denton Community Theatre (DCT) moved into the main building in 1970 for their offices and used the auditorium for performances. The Fire Department continued to utilize the :l rear area where they had been since 1927. The new DCT facility was called the "Firehouse Theatre" in honor of the fire department. The first production in the Firehouse Theatre was "The Skin Of Our Teeth" on April 21 -25, 1970 with the final one being "The Sound of Music from July 29 to August 8, 1981, as the DCT had to evacuate the building by Sept. 1 of that year." The City decided to move the Police Department into the vacated space and interior renovation was begun in September 1982 at a cost of $1,150,000.00 with the Department occupying the building in January of 1984."' Currently the building houses the Planning Department, Building Inspections and the Consumer Health Division. "ii In the early 1980s the City took inventory of buildings that met requirements for historic recognition. In 1982 Ordinance No. 80 -30 was passed designating this building as an historic landmark under Article 28A of the Comprehensive Zoning Ordinance of the City of Denton, Texas. "iii III. SIGNIFICANCE The 1927 Municipal Building has been in constant use by the City of Denton since its opening. The exterior of the structure has been well maintained in the intervening 85 years. This building is significant for what it represents about where Denton viewed itself in the Dallas /Ft. Worth area in the early part of the twentieth century. The City hired a prominent regional architect in the person of Mr. Van Slyke to design a municipal building to signify Denton's "arrival" as a major regional center for education and industry. Being located at the edge of the northern boundary of the Denton County Courthouse Square National Historic District, with its 26 contributing buildings and many fine examples of late nineteenth through early twentieth century architecture, places the 1927 City Hall within the larger commercial and governmental history of Denton. In the Historic and Architectural Resources of Denton Texas, 1882 -1949 in the National Register of Historic Places Continuation Sheet, Section F, pages 50 -51: quote: "The Spanish Revival Style of City Hall and Fire Station, Ave B and Elm Street are among the few examples of this revival movement in Denton which became so popular in Texas." No doubt conscious of the beauty of the 1896 Denton County Courthouse a few blocks away on the square, the city fathers wanted a structure that would have the same level of architectural and physical gravity, as well as carrying on the multi -use capability necessary in the daily operation of a growing city. The 1927 Denton City Hall still stands in one of the most historic areas in Denton and continues to represent an important era of the history of this once small town and its citizens. Evan as a small town, the officials and citizens had the vision to recognize the significance of building this architecturally and historically significant building. VI. DOCUMENTATION C.A. Bridges, History ofDenton Texas From Its Beginning to 1960, (Texian Press, Waco, Texas, 1978), p. 250. Bridges, p. 327. 111 "Denton Opens New City Hall." Dallas Morning News, Vol. 43, No. 9; October 9, 1927. '° Dallas Morning News, October 9, 1927. "Denton's Old City Hall Is Being Demolished ", Denton Record Chronicle, July, 7 1931. °' Denton Record Chronicle, October 9, 1927. °" Ellis Arthur Davis and Edwin H. Grobe, editors. The Encyclopedia of Texas, Vol. 1, Book, 1922, ham: / /texashistory.unt.edu /ark: /67531/metgpth41244/ (accessed July 27, 2012). City of Fort Worth, Texas. Historic Schools Survey Report, http: // fortworthtexas .gov /uploadedFiles /Planning /Historic Preservation /Historic %20Schools %2 OSurvey %20report %20web.pdf p. 8, (Accessed July, 2012). 11 'X Texas Historical Commission, Texas Main Street Program, Design Journal, p. 1. X "Denton Opens New City Hall." Dallas Morning News, Vol. 43, No. 9; October 9, 1927. X' Historic Landmark Ordinance, City of Denton, Texas, Pro Ordinance 82 -69 (1982). X" Historic Landmark Ordinance. X "" Historic Landmark Ordinance. X'° Denton City Directory (Retail Merchants Association 1923) p. 101. " Dallas Morning News, Vol. 43, No. 9; October 9, 1927. "' Dallas Morning News, October 9, 1927. "" Dallas Morning News, October 9, 1927. " "' Dallas Morning News, October 9, 1927. X'X Dallas Morning News, 12/11/38; Denton Record - Chronicle, 12/5/68. XX Donna L. Clevinger, PhD, Denton Community Theatre: To The Firehouse And Beyond. (Terrill Wheeler Printing, Inc. Denton, Texas. 1986). p. 13, 14, 108. XXl cDenton's Finest to Hold Open House Sunday ", Denton Record - Chronicle. 1/13/84. p. 7A City of Denton, Texas. http://www.cityofdenton.com/ departments - services /departments -a- f /consumer - health, (accessed Feb 7, 2013). XX"' Historic Landmark Ordinance, City of Denton, Tx, Pro Ordinance 82 -69 (1982). See Addendum for Historical Narrative City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN71"ON Legislation Text File #: ID 14 -0442, Version: 1 Agenda Information Sheet SUBJECT Deliberations regarding Real Property - Under Texas Government Code, Section 551.072; and 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 proposed site for reconstruction of the existing Locust Substation in the general area between the intersection of Locust and E. Daugherty and the intersection of Locust and W. Collins St., in the City of Denton, Denton County, Texas, as part of Denton Municipal Electric's service territory. Consultation with the City's attorneys regarding legal issues associated with the potential proceedings against the real property associated with above described area 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 PUB or 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. (Locust Substation Re- construction- Denton Municipal Electric) [ID14 -0443] City of Denton Page 1 of 1 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com I N71" N Legislation Text File #: ID 14 -0444, Version: 1 Agenda Information Sheet SUBJECT Deliberations regarding Real Property - Under Texas Government Code, Section 551.072; and 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 potential eminent domain proceedings against certain real property interests located in the M. Forrest Survey, Abstract Number 417, in the City of Denton, Denton County, Texas, being a fee interest in land, regarding a certain 10.372 acre tract of land located generally north of Blagg Road and east of Geesling Road, for the public use of expansion, construction, maintenance, operation, and improvement of electric transmission and distribution lines facilities, and structures, as well as substations. Consultation with the City's attorneys regarding legal issues associated with the potential proceedings against 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. (ARCO Substation Re- construction- Denton Municipal Electric) [ID 14 -0397] City of Denton Page 1 of 1 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN71"ON File #: ID 14 -0447, Version: 1 Legislation Text Agenda Information Sheet SUBJECT Certain Public Power Utilities: Competitive Matters - Under Texas Government Code, Section 551.086. Receive a presentation from Staff regarding the proposed amendment of the FY 2013 -2014 DME Budget and Annual Program of Services; discuss, deliberate and provide staff with direction. [ID 14 -0446] City of Denton Page 1 of 1 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN71"ON File #: ID 14 -0449, Version: 1 Legislation Text Agenda Information Sheet SUBJECT Certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086. Receive competitive public power information and competitive financial information from staff in the form of a proposed operating budget for Denton Municipal Electric ( "DME ") for FY 2014 -2015, including without limitation, revenues, expenses, commodity volumes, and commitments; and discuss, deliberate, consider adoption of the budget and other matters, and provide staff with direction regarding such matters. City of Denton Page 1 of 1 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com E 1` File #: ID 14 -0455, Version: 1 Legislation Text Agenda Information Sheet SUBJECT Consultation with Attorneys - Under Texas Government Code, Section 551.071. 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 vested rights; impacts of federal and state law and regulations; impacts of gas well drilling upon protected uses and vice - versa; moratorium on drilling and production; other concerns about municipal regulatory authority or matters relating to enforcement of the Gas Well Ordinance; settlement matters concerning gas well drilling in the City; surface development issues involving surface and mineral estates; and legal matters associated with a citizen's initiative regarding hydraulic fracturing where a public discussion of these legal matters would conflict with the duty of the City's attorneys under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. City of Denton Page 1 of 1 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DENTON Legislation Text File #: ID 14 -0415, Version: 1 Agenda Information Sheet SUBJECT Live United Month City of Denton Page 1 of 1 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN71"ON File #: ID 14 -0459, Version: 1 Legislation Text Agenda Information Sheet SUBJECT Presentation by Phil Williams, DME General Manager, recognizing the outstanding accomplishments of Denton Municipal Electric's Lineman Rodeo Team at the 18' Annual Texas Lineman's Rodeo. City of Denton Page 1 of 1 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN"1, IN File #: ID 14 -0375, Version: 1 Legislation Text AGENDA INFORMATION SHEET DEPARTMENT: Materials Management ACM: Bryan Langley AGENDA DATE: August 19, 2014 SUBJECT Consider adoption of an ordinance authorizing the City Manager to execute an Interlocal Cooperative Purchasing Program Agreement with the City of Bryan, Texas under Section 271.102 of the Local Government Code, to authorize mutual participation in various City of Bryan and City of Denton contracts for the purchase of various goods and services; authorizing the expenditure of funds therefor; and declaring an effective date (File 5580- Cooperative Purchasing Agreement with City of Bryan). FILE INFORMATION Section 271.102 of the Texas Local Government Code, authorizes respective participating governments to enter into agreements for the purchase of goods and services. The attached Agreement is an authorization for the City of Denton to participate in contracts awarded by the City of Bryan and for the City of Bryan to participate in contracts awarded by the City of Denton. The contract will remain in effect until terminated by either party. This Agreement will allow both entities to utilize contracts for goods and services competitively solicited by the other party to the contract. The solicitation process followed by both entities meets all statutory bidding requirements. Upon approval of the Agreement, the City of Denton intends to utilize the City of Bryan's RFP 414 -003 Ambulance Supplemental Payment Program, to obtain Supplemental Payment Recovery Services for the City of Denton Fire Department. The City anticipates that the recovery contract will provide additional net revenue of $750,000 annually. RECOMMENDATION Approve an Interlocal Cooperative Purchasing Program Agreement with the City of Bryan. PRINCIPAL PLACE OF BUSINESS City of Bryan Bryan, TX ESTIMATED SCHEDULE OF PROJECT This Agreement is effective upon approval by both the City of Denton and City of Bryan and will remain in City of Denton Page 1 of 2 Printed on 8/12/2014 pow[ lod by I ogiFfl ar nvl File #: ID 14 -0375, Version: 1 effect until terminated by either party. FISCAL INFORMATION Each future acquisition, based on this Agreement, will follow the City of Denton fiscal verification policy and be charged to the appropriate budget account. EXHIBITS Exhibit l: Ordinance Exhibit 2: Contract Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance For information concerning this acquisition, contact: Elton Brock at 349 -7133. City of Denton Page 2 of 2 Printed on 8/12/2014 pow[ lod by I ogiFfl ar nvl EXHIBIT 1 ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A COOPERATIVE PURCHASING PROGRAM AGREEMENT WITH THE CITY OF BRYAN, TEXAS, UNDER SECTION 271.102 OF THE LOCAL GOVERNMENT CODE, TO AUTHORIZE MUTUAL PARTICIPATION IN VARIOUS CITY OF BRYAN AND CITY OF DENTON CONTRACTS FOR THE PURCHASE OF VARIOUS GOODS AND SERVICES; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND DECLARING AN EFFECTIVE DATE (FILE 5580 - COOPERATIVE PURCHASING AGREEMENT WITH CITY OF BRYAN). THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager, or his designee, is hereby authorized to execute the Cooperative Purchasing Program Agreement with the City of Bryan under Section 271.102 of the Local Government Code, a copy of which is attached hereto and incorporated by reference herein (the "Agreement"). SECTION 2. The City Manager, or his designee, is authorized to expend funds pursuant to the Agreement for the purchase of various goods and services. SECTION 3. The City Council of the City of Denton, Texas, hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 5580 to the City Manager of the City of Denton, Texas, or his designee. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2014. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY :• APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: EXHIBIT 2 INTERLOCAL AGREEMENT BETWEEN THE CITY OF BRYAN AND THE CITY OF DENTON WHEREAS, City of Bryan and the City of Denton desire to enter into this Agreement for the purpose of fulfilling and implementing their respective public and governmental purposes, needs, objectives, programs and services; WHEREAS, the City of Denton is a Home -Rule Municipality organized under the laws of Texas and is authorized to enter into this Agreement; WHEREAS, The City of Bryan and the City of Denton represent that each are independently authorized to perform the functions or services contemplated by this Agreement; WHEREAS, each party has sufficient funds available from current revenues to perform the functions contemplated by this Agreement; WHEREAS, it is deemed in the best interest of all participating governments that said governments do enter into a mutually satisfactory agreement for the purchase of necessary equipment, supplies and services; WHEREAS, the participating governments are of the opinion that cooperation in the purchasing of equipment, supplies and services will be beneficial to the taxpayers of the City of Bryan and the taxpayers of the City of Denton through the efficiencies and potential savings to be realized. NOW THEREFORE, the parties hereto, in consideration of the mutual covenants and conditions contained herein, promise and agree as to each of the other as follows: 1. City of Bryan and City of Denton agents shall be authorized to jointly prepare bid solicitations, proposal solicitations, requests for qualifications and other procurement activity for the purchase of equipment, supplies, services, insurance, high technology, professional services and expenditures that may be exempt from competitive bidding/proposals. 2. The Buyers shall fairly distribute the bid solicitations, proposal solicitations, requests for qualifications and other purchases to be made and the cost of advertising shall be borne equally by each entity, whenever joint purchasing is undertaken. 3. The City of Bryan and City of Denton buyers shall agree on who is responsible for all such administrative duties as may be necessary to lawfully facilitate processing and preparation of any bid solicitations, proposal solicitations and request for qualifications and other procurement activity as may be required for the purchase of any equipment, supplies, services, insurance, high technology, professional services and other EXHIBIT 2 expenditures that may be exempt from competitive bidding/proposals. The City of Bryan and City of Denton shall share equally any and all cash rebates related to any joint purchases pursuant to this Agreement. 4. Each entity shall pay invoices directly to the providers of goods and services that are invoiced and delivered directly to each respective entity. 5. Participation of either entity in any cooperative purchasing activity is strictly voluntary. Nothing in this Agreement shall prevent either entity from purchasing and /or accepting and awarding bids, proposals and contracts subject to this Agreement on its own behalf. 6. Each entity shall ensure that all applicable laws and ordinances have been satisfied. 7. Effective Date and Term. This Agreement shall be effective when signed by the last party who's signing makes the Agreement fully executed and will remain in full force and effect unless terminated in accordance with the provisions of this Agreement. The conditions set forth below shall apply to the initial term and all renewals. Notwithstanding this provision, any party may modify or terminate this Agreement as provided in Paragraph(s) 8 or 9. 8. Modification. The terms and conditions of this Agreement may be modified upon the mutual consent of all parties. Mutual consent will be demonstrated approval of each governing body of each party hereto. No modification to this Agreement shall be effective and binding unless and until it is reduced to writing and signed by duly authorized representatives of all parties. 9. Termination. This Agreement may be terminated at any time by the City of Bryan or the City of Denton, with or without cause, upon thirty (30) days written notice to the other parties in accordance with Paragraph 12 herein. 10. Hold Harmless. To the extent permitted by law the City of Bryan and the City of Denton agree to hold each other harmless from and against any and all claims, losses, damages, causes of action, suits and liabilities of every kind, including all expenses of litigation, court costs and attorney's fees, for injury or death of any person, for damage to any property, or for any breach of contract, arising out of or in connection with the negligence or other wrongful act in the performance of work done by the indemnifying party under this Agreement. 11. Invalidity. If any provision of this Agreement shall be held to be invalid, illegal, or unenforceable by a court or other tribunal of competent jurisdiction, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. The parties shall use their best efforts to replace the respective provision or provisions of this Agreement with legal terms and conditions approximating the original intent of the parties. EXHIBIT 2 12. Written Notice. Unless otherwise specified, written notice shall be deemed to have been duly served if delivered in person or sent by certified mail to the last business address as listed herein. City of Bryan: City of Denton: Purchasing Department City of Bryan 1309 E. MLK. St Bryan, Texas 77803 City of Denton Attn: George Campbell, City Manager City of Denton 215 East McKinney Street Denton, Texas 76205 13. Entire Agreement. It is understood that this Agreement contains the entire agreement between the parties and supercedes any and all prior agreements, arrangements, or understandings between the parties relating to the subject matter. Nor oral understandings, statements, promises, or inducements contrary to the terms of this Agreement exist. This Agreement cannot be changed or terminated orally. No verbal agreement or conversation with any officer, agent, or employee of any party before or after the execution of this Agreement shall affect or modify any of the terms or obligations hereunder. 14. Amendment. No Amendment to this Agreement shall be effective and binding unless and until it is reduced to writing and signed by duly authorized representatives of both parties. 15. Texas Law. This Agreement has been made under and shall be governed by the laws of the State of Texas. 16. Place of Performance. Performance and all matters related thereto shall be in Brazos County, Texas, United States of America. 17. Authority to Enter Contract. Each party has the full power and authority to enter into and perform this Agreement and the person signing this Agreement on behalf of each party has been properly authorized and empowered to enter into this Agreement. The persons executing this Agreement hereby represent that they have authorization to sign on behalf of their respective corporations. 18. Waiver. Failure of any party, at any time, to enforce a provision of this Agreement, shall in no way constitute a waiver of that provision, nor in anyway affect the validity of this Agreement, any part hereof, or the right of either party thereafter to enforce each and every provision hereof. No term of this Agreement shall be deemed waived or breach excused unless the waiver shall be in writing and signed by the party claimed to have waived. Furthermore, any consent to or waiver of a breach will not constitute consent to or waiver of or excuse of any other different or subsequent breach. EXHIBIT 2 19. Agreement Read. The parties acknowledge that they have read, understand and intend to be bound by the terms and conditions of this Agreement. 20. Assignment. This Agreement and the rights and obligations contained herein may not be assigned by any party without the prior written approval of the other parties to this Agreement. 21. Multiple Originals. It is understood and agreed that this Agreement may be executed in a number of identical counterparts, each of which shall be deemed an original for all purposes. CITY OF BRYAN BY: Jason P. Bienski, Mayor DATE: ATTEST: Mary Lynne Statta, City Secretary APPROVED AS TO FORM: Janis Hampton, City Attorney THE CITY OF DENTON BY: George Campbell, City Manager DATE: ATTEST: Jennifer Walters, City Secretary APPROVED AS TO FORM: Anita Burgess, City Attorney City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN"1, IN File #: ID 14 -0406, Version: 1 Legislation Text AGENDA INFORMATION SHEET DEPARTMENT: Materials Management ACM: Bryan Langley AGENDA DATE: August 19, 2014 SUBJECT Consider adoption of an ordinance accepting competitive proposals by way of an Interlocal Agreement with the City of Bryan under Section 271.102 of the Local Government Code, for Supplemental Payment Recovery Services for the City of Denton Fire Department; providing for the expenditure of funds therefor; and providing an effective date (File 5613 awarded to MED3000 in the not -to- exceed three (3) year amount of $250,000). FILE INFORMATION The City of Denton Fire Department currently collects fees for emergency medical services provided. The Department contracts with Intermedix to provide a patient care reporting (PCR) system and billing services. Charges are assessed based on the PCR information documented by paramedics and a fee scheduled adopted by Ordinance 2010 -204. Payments are received from various sources or payor groups such as individual patients, private insurance, and federal insurance. Insurance claims are filed on behalf of patients covered by policies. Any remaining balance after the insurance payment is applied is billed to the patient. Those without insurance are billed directly. The billing process runs through a 180 day cycle of correspondence. Accounts with remaining balances after this time period are reviewed and considered for transfer to a collection agency. Medicare and Medicaid are federally funded insurances that go through the same billing process but have legally mandated rules on payments and collections. Medicare insurance covers an age specific range and the disabled. Medicaid insurance covers low income individuals. Both insurances make payments based on a fee schedule along with a mandatory write -off and adjustments. Claims are filed on supplemental or secondary insurance on behalf of the patient when applicable. By law, Medicaid patients cannot be balanced billed. Due to the set fee schedule, mandatory adjustments, and write -offs, revenue is never fully recovered from Medicare and Medicaid patients. Additionally, revenue is seldom fully recovered from uninsured patients. To assist health care providers recover uncompensated care or loss on Medicaid and uninsured patients, the Texas Health and Human Services Commission (HHSC) developed the Ambulance Services Supplemental Payment Program (ASPP). In 2012, the program was rolled into a larger federally funded program that expanded the eligibility of health care providers. City of Denton Page 1 of 3 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: ID 14 -0406, Version: 1 The revenue potential related to the ASPP can be up to a 59% reimbursement on calculated uncompensated care / loss related to Medicaid and uninsured patients. The calculated uncompensated care / loss amount is determined by prior fiscal year actual accounts and is paid annually in a "lump sum ". The State's fiscal year runs concurrent to the City's. Annual cost reports are due at the end of March each year with reimbursement payments expected the following September. The City of Denton Fire Department has received approval from HHSC to become an approved provider and participate in the Ambulance Services Supplemental Payment Program (Exhibit 1). The Fire Department can now begin tracking the required information for the annual cost reports needed for reimbursement which means that the City can receive reimbursement for the last two months of the current fiscal year. A full fiscal year reimbursement would be realized in 2016 for Fiscal Year 2014 -2015. A contract with MED3000 will assist the Department in maximizing the benefits of the program and ensure compliance with requirements. The firm has fifteen (15) years of experience with state and local governments and nine years direct ambulance experience in Texas, with one team member participating in the development of the ASPP with the State. MED3000 will assist in developing the necessary cost allocation model for reporting purposes. Their services also include preparation and submission of the required annual cost report. MED3000 will help the Department implement procedural safeguards to mitigate audit risk and serve as a guide and representative through the program. RECOMMENDATION Award a contract for Supplemental Payment Recovery Services for the City of Denton Fire Department to MED3000 in the not -to- exceed three (3) year amount of $250,000. PRINCIPAL PLACE OF BUSINESS MED3000 Miamisburg, OH ESTIMATED SCHEDULE OF PROJECT The initial term of this contract expires on December 15, 2016. FISCAL INFORMATION MED3000 will receive a service fee equal to 8% of the supplemental payments recovered. A total of $250,000 in service fees is estimated over the three year contract term. Funding for the expenses will be budgeted in 320001.7866. The annual net revenue from reimbursements is estimated at $750,000. EXHIBITS Exhibit l: Ordinance Exhibit 2: Contract City of Denton Page 2 of 3 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File M ID 14 -0406, Version: 1 Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance For information concerning this acquisition, contact: Chuck Springer at 349 -8260. City of Denton Page 3 of 3 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl EXHIBIT 1 TEXAS HEALTH AND HUMAN SERVICES COMMISSION August 4, 2014 Corrected Copy Sent via Email Ms. Laura Behrens, Fire Marshall Denton Fire Department 332 E. Hickory Street Denton, Texas 76201 Dear Fire Marshall Behrens: KYLE L. JANEK, M.D. EXECUTIVE COMMISSIONER Thank you for your interest in the Ambulance Supplemental Payment Program (ASPP). Denton's Fire Department's application for participation in the cost reconciliation and settlement process for public ambulance providers has been approved. As specified in Title 1 of the Texas Administrative Code, Part 15, Chapter 355, SubChapter J, Division 5, Rule 8081 and Division 31, Rule 8600, a governmental ambulance provider may begin to claim uncompensated care costs related to services provided on or after the first day of the month after the request for eligibility is approved. The effective date of your agencies approval is August 1, 2014. Cost Report (CR) information for Governmental Ambulance Providers will be posted to the Health and Human Services (HHSC) Acute Care website along with the cost report template and the corresponding instructions. Mandatory training attendance will be required for all participating governmental providers and will be provided prior to the cost report due date. Training dates and notices will be posted and will be accessible through the website. You may access and download the information by utilizing the following link: htip://www.hhsc.state.tx.us/rad/acute-care/index.shtml. The list below includes the cost report reporting period and applicable due dates for federal fiscal year (FFY) 2014. Please note the first cost report due is a partial year cost report for June 1, 2014 to September 30, 2014 of FFY 2014. P. O. Box 13247 • Austin, Texas 78711 • 4900 North Lamar, Austin, Texas 78751 • (512) 424 -6500 EXHIBIT 1 Ambulance Services Supplemental Payment Program July 31, 2014 Page 2 Cost Report Reporting Period Federal Fiscal Year FFY Cost Report Due Date (s) 08/01/2014 to 09/30/2014 2014 March 31, 2015 With the approval of the 1115 Waiver, otherwise known as the Texas Healthcare Transformation and Quality Improvement Program (the 1115 transformation waiver) Ambulance providers will be eligible to submit cost reports that include uncompensated care costs. The applicable federal fiscal year ASPP cost report instructions and the cost report template will be available on the HHSC Acute Care Website shortly. Providers will be notified via email once the information is available. If you have any questions, please contact Sandra Brabandt at (512) 730 -7461 or by e -mail at sandra .brabandt(a,hhsc.state.tx.us. Sincerely, 4 X Dan Huggins Director, Acute Care Services Rate Analysis Department cc: File EXHIBIT 2 ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE PROPOSALS BY WAY OF AN INTERLOCAL AGREEMENT WITH THE CITY OF BRYAN UNDER SECTION 271.102 OF THE LOCAL GOVERNMENT CODE, FOR SUPPLEMENTAL PAYMENT RECOVERY SERVICES FOR THE CITY OF DENTON FIRE DEPARTMENT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 5613- AWARDED TO MED3000 IN THE NOT -TO- EXCEED THREE (3) YEAR AMOUNT OF $250,000). THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager, or his designee, is hereby authorized to purchase Supplemental Payment Recovery Services in a three (3) year not -to- exceed amount of $250,000 from MED3000 under competitive proposals received by the City of Bryan in accordance with an Cooperative Purchasing Program Participation Agreement under Section 271.102 of the Local Government Code which is on file in the office of the Purchasing Agent. SECTION 2. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 5613 to the City Manager of the City of Denton, Texas, or his designee. SECTION 3. The City Manager, or his designee, is authorized to expend funds pursuant to the agreement for the purchase of various goods and services. SECTION 4. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2014. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: EXHIBIT 3 STATE OF TEXAS § COUNTY OF DENTON § ATTACHMENT A J'OTJ I AGIZE Ml",'N BEBETWEEN CITY OF 13RYAN AND M F:D3000 dated March 4 2014 ( "Agreement ") This attachment A ( "Attachment ") amends the Agreement identified above including all Exhibits, Schedules, and Attachments thereto, and is made and entered into as of the 19th day of August, 2014 ( "Effective Date ") , by and between the City of Denton, Texas, a Texas municipal corporation, with its principal office at 215 East McKinney Street, Denton, Denton County, Texas 76201, hereinafter called "CITY;" and MED3000, Inc., with its office at 3131 Newmark Newmark Dr., Suite 100, Miamisburg, OH 45342, hereinafter called "CONTRACTOR" each acting herein, by and through their duly authorized officials, officers and representatives. Unless otherwise expressly set forth in this Attachment, the terms and conditions set forth in this Attachment apply only to the CITY and CONTRACTOR with respect to the Services being provided by CONTRACTOR and to CITY shall have no impact on the terms of Services being provided by CONTRACTOR to the City of Bryan under the Agreement. To the extent that this Attachment conflicts with the Agreement, the terms and conditions of this Attachment shall control. Where not in conflict, all applicable terms and conditions set forth in the Agreement are incorporated herein. Add: Article 6.3 — Termination without Cause. Either party shall have the right to terminate the Contract, in whole or in part, without cause any time upon thirty (30) calendar days' prior written notice. Upon receipt of a notice of termination, the CONTRACTOR shall promptly cease all further work pursuant to the Contract, with such exceptions, if any, specified in the notice of termination. The CITY shall pay the CONTRACTOR, to the extent of funds Appropriated or otherwise legally available for such purposes, for all goods delivered and services performed and obligations incurred prior to the date of termination in accordance with the terms hereof. Modify: Section 7.2 Warranties. MED3000 warrants it will perform all Services in accordance with reasonable industry practices. The provisions of this Agreement are intended to state all of the rights and responsibilities between MED3000 and Client, and they take the place of and supersede all warranties, express or implied whether of merchantability, fitness or otherwise. With the exception of the above warranty, MED3000 makes and Client receives no warranty, express or implied. EXHIBIT 3 Modify: Section 7.4.3 Injunctive Relief. The parties agree that the breach, or threatened breach, of any provision of this Section 7.4 may cause irreparable harm without adequate remedy at law. Upon any such breach or threatened breach, a party will be entitled to seek injunctive relief to prevent the other party from commencing or continuing any action constituting such breach, without having to post a bond or other security and without having to prove the inadequacy of other available remedies. Nothing in this Section 7.4. 3 will limit any other remedy available to either party. Modify: Section 7.7. Limitation of Liability. Notwithstanding anything contrary in this Agreement, neither party shall be liable to the other, by reason of any representation or express or implied warranty, condition or other term or any duty at common or civil law, for any special, incidental, indirect, lost profits, consequential or punitive damages however caused and on any theory of liability arising out of or relating to this Agreement. In the event of any breach of this Agreement, however, the non - breaching party is entitled to recover expectation damages from the breaching party, which are defined as the amounts that non - breaching party would have received under the Agreement had the breaching party fully performed pursuant to the terms and conditions of this Agreement. It is further agreed that if a claim or liability should arise from the joint or concurring negligence of both parties hereto, it should be borne by them comparatively in accordance with the laws of the State of Texas. Neither this Section nor any other portion of this agreement shall be construed as, or shall create any, rights for any persons or entities who are not a party to this agreement. Modify Exhibit C — Business Associate Addendum (BAA) Section 5: Term and Termination Add 5.4 Termination without Cause. The Parties acknowledge that the Addendum shall terminate immediately upon the expiration or earlier termination of the Underlying Agreement. Either party shall have the right to terminate the Addendum, in whole or in part, without cause any time upon thirty (30) calendar days' prior written notice provided however that the Parties also terminate the Underlying Agreement simultaneously. Upon receipt of a notice of termination, the CONTRACTOR shall promptly cease all further work pursuant to the Addendum, with such exceptions, if any, specified in the notice of termination. The CITY shall pay the CONTRACTOR, to the extent of funds Appropriated or otherwise legally available for such purposes, for all goods delivered and services performed and obligations incurred prior to the date of termination in accordance with the terms hereof. EXHIBIT 3 IN WITNESS WHEREOF, the parties hereto have executed this Attachment A to be executed by its duly authority CITY Manager, and the CONTRACTOR has executed this Attachment through its duly authorized undersigned officer on this day of 20_. CITY OF DENTON, TEXAS GEORGE C. CAMPBELL, CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY WA APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY WITNESS: t EXHIBIT 3 0 Ambulance Supplemental Payment Program CITY OFBRYAN The Good Lq�, Pwas Style- q EXHIBIT 3 PRIVILEGED AND CONFIDENTIAL Client Name: City of Bryan BUSINESS SUPPORT SERVICES AGREEMENT This Business Support Services Agreement ( "Agreement ") is effective as of the last date in the signature block below (the "Effective Date "), by and between MED3000, Inc., a Delaware corporation, whose mailing address is 680 Andersen Drive, Foster Plaza 10, Pittsburgh, Pennsylvania, 15220 ( "MED3000 "), and the City of Bryan, a Texas home -rule municipal corporation whose mailing address is P.O. Box 1000, Bryan, Texas 77805 -1000 ( "Client"). RECITALS Client operates an Emergency Medical Services Squad ( "EMS Squad ") that provides professional ambulance services. MED3000 is a subsidiary of MED3000 Group, Inc., a Delaware corporation ( "MED3000 Group "), a national healthcare management and technology company. MED3000 is in the business of providing business support services to EMS Squads, provider networks, hospitals, physician groups and other healthcare providers. Client desires to retain MED3000 to provide business support services required by Client in accordance with the terms of this Agreement. STATEMENT OF AGREEMENT In consideration of the promises and mutual covenants contained herein and other valuable consideration, the receipt, adequacy and legal sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound, now agree as follows: Article 1— Obligations of MED3000. Section 1.1. Services. Client retains MED3000 to the services set forth in Exhibits Al attached hereto, as applicable (collectively, the "Services ") to Client. Client agrees that MED3000 is specifically authorized to engage MED3000 Group or one or more of its subsidiaries to perform the Services hereunder at no additional cost to Client. Section 1.2. Liabilities. MED3000 is not responsible for any Client expenses or liabilities except as specifically provided for in this Agreement. Client is responsible for paying all expenses and liabilities relating to Client as specifically provided for in this Agreement or approved in an authorized writing in advance. Section 1.3. Authority. Client grants MED3000 the authority and power to carry out its obligations under this Agreement. MED3000 shall provide the Services in accordance with applicable legal and regulatory requirements throughout the term of this Agreement. Section 1.4. Limitations. MED3000 shall employ or retain such personnel /employees as it deems necessary to perform the Services. Client recognizes that the Services provided by such personnel /employees may be part -time in nature and that the personnel /employees serving in these capacities may serve in other capacities as well. MED3000 may propose that certain titles be conferred upon the employees in performing the duties under this Agreement. MED3000 Bryan TX BSSA - Execution Copy.docx Page 1 of 18 EXHIBIT 3 PRIVILEGED AND CONFIDENTIAL Client Name: City of Bryan retains the right to replace any personnel /employee who is performing Services hereunder with another person without causing a breach or termination of this Agreement. MED3000 may subcontract certain Services to support its provision of the Services under this Agreement, including but not limited to electronic data interchange and printing of statements, without Client's approval; The Client shall receive advanced written notice in the event MED3000 subcontracts out the billing and reimbursement management Services. Article 2 - Obligations of Client. Section 2.1. Agent. Client appoints MED3000 as its lawful attorney -in -fact solely for the purpose of carrying out MED3000's obligations set forth in this Agreement. Notwithstanding anything to the contrary herein, the parties understand, acknowledge, and agree that neither MED3000 nor any affiliate or agent of MED3000 has the ability to (a) receive payments of benefits assigned to Client directly from any payor pursuant to a power -of- attorney (as defined in Section 3060.10(A) of Medicare Carrier's Manual) or any other arrangement, or (b) transfer any payment of benefits assigned to Client to MED3000, its affiliates, or agents without the payment first passing through the Client's control. Section 2.2. Professional Services. Notwithstanding the authority granted to MED3000 herein, Client shall retain the authority to render Emergency Medical Services ( "EMS ") and direct the medical and ethical aspects of Client's EMS practices and shall retain control of all business affairs that may not legally be carried on by persons other than those duly licensed to practice medicine or surgery in the state or states where such persons practice. Furthermore, the parties acknowledge that only Client may render EMS to its patients through its employees and contractors who are duly licensed or otherwise legally authorized to render professional EMS within the state or states in which such persons practice. MED3000 agrees that it shall not act pursuant to this Agreement in a manner that interferes with the professional judgment of Client's EMS personnel. Article 3 - Mutual Obligations. Section 3.1. Cooperation. Client's EMS personnel shall execute all documents and take all actions necessary to allow MED3000 to perform its duties under this Agreement. Section 3.2. Business Associate. In compliance with their respective legal duties regarding the privacy and security of protected health information, MED3000 and Client agree to the obligations set forth in Exhibit C attached hereto. Article 4 — Compensation. Section 4.1. Service Fees. Client shall pay MED3000 service fees as set forth in Exhibit B, attached hereto, for the Services provided in accordance with this Agreement. Section 4.2. Reimbursement. Client shall reimburse MED3000 for any additional expenses that MED3000 incurs in connection with this Agreement when explicitly approved in an authorized writing in advance. Bryan TX BSSA - Execution Copy.docx Page 2 of 18 EXHIBIT 3 PRIVILEGED AND CONFIDENTIAL Client Name: City of Bryan Section 4.3. Payment. Section 4.3.1. Invoice. MED3000 shall provide Client with an annual invoice indicating the total amounts collected and paid into Client's depository account in the previous year and the amount of service fees due to MED3000 based on the actual amounts collected. Client shall pay the service fee to MED3000 within thirty (30) days from the date of receipt of the invoice. Section 4.3.2. Disputed Amounts or Invoices. Client agrees to notify MED3000 of any disagreement with respect to billing within thirty (30) days of receiving the monthly invoice. If Client and MED3000 are unable to resolve the dispute before the date the service fees are due to MED3000, Client shall forward to MED3000 the undisputed amount and the disputed amount shall be placed by Client into an escrow account until the dispute is resolved. If the parties are unable to resolve the dispute within sixty (60) days from the date the service fees are due to MED3000, MED3000 may suspend its obligations hereunder upon thirty (30) days written notice to Client. Article 5 — Term. Section 5.1. Term. The initial term of this Agreement shall commence on December 15, 2013 and shall terminate thirty -six (36) months thereafter. Unless earlier terminated as provided for in this Agreement, the term of this Agreement shall automatically extend for up to five (5) additional one (1) year terms, unless either party delivers to the other party, not less than thirty (30) days prior to the expiration of the preceding term, written notice of that party's intent not to extend the term of this Agreement. Article 6 — Termination. Section 6.1. Termination. MED3000 or Client may terminate this Agreement after timely notice to the other party, if the other party: (a) materially breaches this Agreement and fails to remedy, or fails to commence reasonable efforts to remedy, such breach within sixty (60) days after receiving notice of the breach from the terminating party, (b) infringes the terminating party's intellectual property rights and fails to remedy, or fails to commence reasonable efforts to remedy, such breach within ten days after receiving notice of the breach from the terminating party, (c) materially breaches this Agreement in a manner that cannot be remedied, or (d) commences dissolution proceedings or ceases to operate in the ordinary course of business. Except as otherwise provided above, termination of this Agreement will not affect the parties' rights and obligations under any other agreement executed by the parties prior or subsequent to such termination, and all such other agreements will remain in full force and effect unless and until their respective expiration or termination in accordance with their contractual terms. Section 6.2. Effect of Termination. In the event of termination of this Agreement in accordance with Section 6 or non - renewal, all rights, duties and obligations of both parties shall cease effect as of the date of termination, except as otherwise provided in this Section 6.2. Within ten (10) business days following termination, MED3000 will deliver to Client a copy of the most current Bryan TX BSSA - Execution Copy.docx Page 3 of 18 EXHIBIT 3 PRIVILEGED AND CONFIDENTIAL Client Name: City of Bryan file backup in a printed and/or electronic media copy as agreed upon in writing by both parties, after payment of all outstanding invoices by Client. Client shall be responsible for the programming, debugging, testing, computer operations, and alternative media costs if a file is requested in a format other than the industry standard formats (i.e. ASCI or comma delimited). Client shall also be responsible for the shipping cost of Client's billing records in MED3000's possession after termination that are forwarded to any destination other than Client's address. Furthermore, following the termination of this Agreement and the expiration of the Post - Termination Period, the parties shall remain bound by the restrictions set forth in Section 7. Section 7 - Relationship of Parties. Section 7.1. Independent Contractor. Each party is an independent contractor of the other party. This Agreement will not be construed as constituting a relationship of employment, agency, partnership, joint venture or any other form of legal association. Neither party has any power to bind the other party or to assume or to create any obligation or responsibility on behalf of the other party or in the other party's name. Section 7.2. Warranties. MED3000 warrants it will perform all Services in accordance with reasonable industry practices. The provisions of this Agreement are intended to state all of the rights and responsibilities between MED3000 and Client, and they take the place of and supersede all warranties, express or implied whether of merchantability, fitness or otherwise. With the exception of the above warranty, MED3000 makes and Client receives no warranty, express or implied. All warranties of merchantability and fitness for a particular purpose are hereby expressly excluded. Section 7.3. Computer Systems. All programs, documentation, specifications, tapes, instruction manuals and similar material developed or used by MED3000 in connection with this Agreement (collectively, "Computer Systems ") are and shall remain the sole and exclusive property of MED3000. Nothing in this Agreement shall be construed as a license or transfer of such Computer Systems to Client. Upon termination of this Agreement for any reason, MED3000 shall have the right to retain all such Computer Systems and Client shall, upon the request of MED3000, deliver all such Computer Systems in its possession to MED3000. MED3000 shall use commercially reasonable efforts to cooperate in supplying source data to Client in the event Client transfers its business support function to another contractor. Section 7.4. Confidentiality. 7.4.1. Use and Disclosure of Confidential Information. Each party may disclose to the other party Confidential Information. Except as expressly permitted by this Agreement, neither party will: (a) disclose the other party's Confidential Information except (i) to its employees or contractors who have a need to know and are bound by confidentiality terms no less restrictive than those contained in this Section 7.4., or (ii) to the extent required by law following prompt notice of such obligation to the other party, or (b) use the other party's Confidential Information for any purpose other than performing its obligations under this Agreement. Each party will use all reasonable care in handling and securing the other party's Confidential Information and will employ all security measures used for its own proprietary Bryan TX BSSA - Execution Copy.docx Page 4 of 18 EXHIBIT 3 PRIVILEGED AND CONFIDENTIAL Client Name: City of Bryan information of similar nature. Following the termination of this Agreement, each party will, upon written request, return or destroy all of the other party's tangible Confidential Information in its possession and will promptly certify in writing to the other party that it has done so. 7.4.2. Period of Confidentiality. The restrictions on use, disclosure and reproduction of Confidential Information set forth in Section 7.4 will, with respect to Confidential Information that constitutes a "trade secret" (as that term is defined under applicable law), be perpetual, and will, with respect to other Confidential Information, remain in full force and effect during the term of this Agreement and for three years following the termination of this Agreement. 7.4.3. Iniunctive Relief. The parties agree that the breach, or threatened breach, of any provision of this Section 7.4 may cause irreparable harm without adequate remedy at law. Upon any such breach or threatened breach, a party will be entitled to injunctive relief to prevent the other party from commencing or continuing any action constituting such breach, without having to post a bond or other security and without having to prove the inadequacy of other available remedies. Nothing in this Section 7.4.3 will limit any other remedy available to either party. 7.4.4. Retained Rights. Client's rights in the Services will be limited to those expressly granted in this Agreement. MED3000 and its suppliers reserve all intellectual property rights not expressly granted to Client. All changes, modifications, improvements or new modules made or developed with regard to the Services, whether or not (a) made or developed at Client's request, (b) made or developed in cooperation with Client, or (c) made or developed by Client, will be solely owned by MED3000 or its suppliers. MED3000 retains title to all material, originated or prepared for the Client under this Agreement. Client is granted a license to use such materials in accordance with this Agreement. Section 7.5. Covenant not to Employ. During the term of the Agreement, and until the two -year anniversary date of the effective date of termination of this Agreement, Client covenants and agrees it will not, without the advance written consent of MED3000, directly or indirectly, (i) induce or attempt to induce any MED3000 employee to terminate employment with MED3000; (ii) hire or participate in the hiring or interviewing of any MED3000 employee; (iii) provide names or other information about any MED3000 employee for the purpose of assisting others to hire such employee; nor (iv) provide Confidential Information to a MED3000 employee about MED3000 or any entity affiliated with MED3000 for the purpose of assisting that MED3000 employee in finding employment with such entity for EMS billing services. For purposes of this paragraph, a MED3000 employee means any person who is a current MED3000 employee or was employed by MED3000 within one (1) year of the date of any action that alleges a violation of this Section 7.5. Section 7.6. Records. If required by Section 952 of the Omnibus Reconciliation Act of 1980, 42 U.S.C. Section 1395x(I)(i)(ii), for a period of four years after the Services are furnished, the parties agree that they, and each subcontractor who provides Services under this Agreement, will make available, upon the written request of the Secretary of Health and Human Services, the Bryan TX BSSA - Execution Copy.docx Page 5 of 18 EXHIBIT 3 PRIVILEGED AND CONFIDENTIAL Client Name: City of Bryan Comptroller General, or their representatives, this Agreement and such books, documents, and records as may be necessary to verify the nature and extent of any combination of Services and Products with an aggregate value or cost of $10,000 or more over a twelve month period. Section 7.7. Limitation of Liability. CLIENT AGREES THAT MED3000 SHALL NOT BE LIABLE FOR ANY CLAIMS OR DAMAGES CAUSED IN WHOLE OR IN PART BY FACTORS NOT WITHIN THE DIRECT CONTROL OF MED3000, INCLUDING BUT NOT LIMITED TO THE FAILURE OF THIRD PARTY SERVICE PROVIDERS TO ADEQUATELY PROVIDE THE SERVICES. MED3000 SHALL HAVE NO LIABILITY TO CLIENT OR ANY THIRD PARTY FOR SPECIAL, INDIRECT, CONSEQUENTIAL, EXEMPLARY, OR INCIDENTAL DAMAGES OR FOR ANY DAMAGES WHATSOEVER RESULTING FROM LOSS OF USE OR PROFITS, ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH THIS AGREEMENT, EVEN IF IT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, IN NO EVENT SHALL MED3000 BE LIABLE IN THE AGGREGATE FOR ANY CLAIMS OR DAMAGES IN AN AMOUNT EXCEEDING THE AMOUNTS PAID BY CLIENT FOR SERVICES HEREUNDER DURING THE ONE (1) MONTH IMMEDIATELY PRECEDING SUCH CLAIM OR DAMAGES. Section 7.8. Exclusivity. During the term of this Agreement Client shall not directly or indirectly contact an entity or person for the purpose of soliciting such entity or person to enter into a contract or arrange to receive any of the Services as set forth in this Agreement or any services substantially similar to the Services from any entity or person other than MED3000 unless agreed upon in writing by MED3000, except that Client shall be entitled to solicit bids from other suppliers of Services within 180 days of expiration of any term of this Agreement. This section does not apply to primary billing for EMS services or for debt collection services for invoices that have been written off. Section 8 — Miscellaneous. Section 8.1. Notices. All notices relating to the parties' legal rights and remedies under this Agreement will be provided in writing and will reference this Agreement. Such notices will be deemed given if sent by: (a) postage prepaid registered or certified U.S. Post mail, then five working days after sending; or (b) commercial courier, then at the time of receipt confirmed by the recipient to the courier on delivery. All notices to Client will be sent to its address set forth on the cover page hereto, or to such other address as may be designated by Client by notice to MED3000. Section 8.2. Force Majeure. Except as otherwise provided, neither party will be responsible for or in breach due to delays or failures to perform resulting either directly or indirectly from any cause beyond the control of the delaying or non - performing party, including but not limited to, acts of God, fires, floods, strikes, lockouts, labor controversies (beyond the control of the delaying or non - performing party), civil disturbances, acts of war, governmental restrictions, shortages or inability to obtain adequate supplies or transportation or transmission facilities (beyond the control of the delaying or non - performing party), or other similar circumstances. In the event of delay in performance due to any such cause, the time for performance will be Bryan TX BSSA - Execution Copy.docx Page 6 of 18 EXHIBIT 3 PRIVILEGED AND CONFIDENTIAL Client Name: City of Bryan extended for a period of time reasonably necessary to overcome the effect of such delay. Section 8.3. Conflicts. The provisions of this Agreement shall govern when there is any conflict with the provisions of any purchase order or other document of Client relating to the Services. Section 8.4. Governing Law. This Agreement, and all rights and obligations of the parties hereunder, shall be construed and governed by the laws of the State of Texas, without regard to its conflicts of laws provisions. Section 8.5. Severability. If any part of a provision of this Agreement is found illegal or unenforceable, it will be enforced to the maximum extent permissible, and the legality and enforceability of the remainder of that provision and all other provisions of this Agreement and will not be affected. Section 8.6. Descriptive Headings and Subheadings. Both parties understand that the headings and subheadings used in this Agreement are for descriptive and /or informational purposes only. Section 8.7. Waiver. No consent or waiver, whether expressed or implied, by either party to or of any breach under this Agreement shall be construed as a consent or waiver to or of any breach of the same or any other obligation. Section 8.8. Final Understanding and Modifications. This Agreement represents the entire and integrated agreement of the parties, and supersedes all prior negotiations, representations, and /or agreements, whether written or oral. Section 8.9 Assignment and Subcontracts. Client may assign this Agreement with at least 60 days' prior written notice to MED3000, so long as Client remains secondarily liable for any and all executory obligations under this Agreement. MED3000 may, upon notice to Client, assign this Agreement to any MED3000 affiliate for any reason, or to any other entity as the result of a transfer of all or substantially all of MED3000's assets or capital stock or of any other corporate reorganization. MED3000 may subcontract its obligations under this Agreement. Section 8.10. Amendments; Waiver. This Agreement may not be modified, nor shall any provision hereof be waived or amended, except by written addendum to this Agreement, duly signed by authorized representatives of the parties. Section 8.11. No Third Party Beneficiaries. Nothing express or implied in this Agreement is intended to confer, nor shall anything herein confer, upon any person other than the parties and the respective successors or assigns of the parties, any rights, remedies, obligations or liabilities whatsoever. Section 8.12. Compliance with Law. The obligations of MED3000 pursuant to this Agreement shall be subject to any limitations or restrictions which may be imposed by law or regulation, and MED3000 may suspend any or all obligations hereunder in the event that it reasonably determines, upon advice of counsel, that the performance of any obligation pursuant to this Agreement may contravene applicable law or regulation, the effect of which would be to have a Bryan TX BSSA - Execution Copy.docx Page 7 of 18 EXHIBIT 3 PRIVILEGED AND CONFIDENTIAL Client Name: City of Bryan material adverse effect on the business, financial condition, or operations of MED3000 or any subsidiary or affiliate of MED3000 Group. Section 8.13. Material Changes; Periodic Review. Notwithstanding anything to the contrary in this Agreement, in the event (i) a significant change or amendment to any regulation, law, policy or procedure, (ii) any legal or ethical rule or regulation is promulgated or modified, or (iii) any administrative ruling or judicial interpretation is issued or modified that prohibits any act or course of conduct contemplated by this Agreement, or which materially and adversely affects the ability of MED3000 to provide Services hereunder or imposes onerous financial or other burdens on MED3000's provision of Services hereunder, an amendment or modification to this Agreement shall be negotiated in good faith. To the maximum extent possible, any such amendment shall preserve the underlying economic and financial arrangements between Client and MED3000. Section 8.14. Agreement Construction. This Agreement shall not be presumptively construed for or against either party. The parties may execute this Agreement in one or more counterparts, each of which will be deemed an original and one and the same instrument. [remainder of page intentionally left blank] Bryan TX BSSA - Execution Copy.docx Page 8 of 18 EXHIBIT 3 PRIVILEGED AND CONFIDENTIAL Client Name: City of Bryan IN WITNESS WHEREOF the parties hereto have caused this Business Support Services Agreement to be executed by their respective duly authorized representatives on the date first above written. MED3000, Inc. Address: 680 And#rsen Drive, Foster Signed Name City of Bryan, Texas Address: 0 300 S. -texas Avenue IS CALoe VP1 0PSG *T10V%S Title Date Sig Jason Bienski Mayor ,1 - 4 -- t '�' Date ATTEST: Mary Lynne raffia, City Secretary Approved As To Form: J6Ws K. Hampton, City Attorney Bryan TX BSSA - Execution ('opy.docx Page 9 of 18 EXHIBIT 3 PRIVILEGED AND CONFIDENTIAL Client Name: City of Bryan BUSINESS SUPPORT SERVICES AGREEMENT EXHIBIT A -1 SUPPLEMENTAL PAYMENT RECOVERY ASSISTANCE SERVICES Description of Services. As part of the MED3000's Supplemental Payment Assistance Services, MED3000's responsibilities under this Agreement will include: (a) Advising and assisting Client with enrolling in the Texas Medicaid Supplemental Payment Program; (b) Assisting Client with enrolling in the Texas Ambulance Supplemental Payment Program ( "ASPP "); (c) Managing the program applications and required cost reports for Client in accordance with the ASPP; (d) Managing the ASPP pre -cost report submittal process for Client, which may also include: *Developing and submitting the Provider Approval materials to the Texas Health and Human Services Commission ( "HHSC ") on behalf of Client; *Receiving the Provider Approval from HHSC for Client's participation in the ASPP, *Developing and submitting the Cost Allocation Model and Report to HHSC on behalf of Client for review as part of the ASPP; •Changing and finalizing the Cost Allocation Model during HHSC's review of the Cost Allocation Model and Report, to meet HHSC's requirements to move forward with the cost report submittal. (e) Assisting Client in developing cost models for EMS transports for submission to ASPP; (f) Assisting Client with submitting other annual reports as my required by the ASPP. (g) Ensuring that cost report preparer(s) engaged on behalf of Client by MED3000 are certified in accordance with all applicable rules, laws and regulations. (h) Ensuring that it utilizes separate staff for all billing and cost report preparation services provided to Client. 2. Client Responsibilities. Client acknowledges and understands that inaccurate or false data submissions, even advertent ones, can lead to a false claim charge or Medicaid program exclusion. Therefore, Client agrees that it will use best efforts to: (a) Ensure the accuracy of all cost report data provided by Client to MED3000 and provide written certification of the accuracy of such data to MED3000 and all applicable governmental agencies; (b) Make its internal practices, books and records relating to all cost report data provided to MED3000 by Client available to MED3000 to ensure the accuracy of all such data; Bryan TX BSSA - Execution Copy.docx Page 10 of 18 EXHIBIT 3 PRIVILEGED AND CONFIDENTIAL Client Name: City of Bryan (c) Comply with MED3000 policies and procedures for the documentation of all cost report data as established and provided to Client by MED3000 from time to time; and (d) Provide MED3000 with the following as part of Client's request for Supplemental Payment: • An organizational chart of Client's agency; • An organizational chart of Client's ambulance department; • Identification of the specific geographic service area covered by Client's ambulance department; • Copies of job descriptions for all staff employed within Client's ambulance department and an estimated percentage of time spent working for Client's ambulance department and for other departments of Client's agency; • Primary contact person for Client's agency; and • A signed letter documenting the governmental provider's voluntary contribution of non - federal funds. Bryan TX BSSA - Execution Copy.docx Page 11 of 18 EXHIBIT 3 PRIVILEGED AND CONFIDENTIAL Client Name: City of Bryan TO BUSINESS SUPPORT SERVICES AGREEMENT EXHIBIT B FEES /COSTS For Supplemental Payment Recovery Assistance Services rendered under Exhibit A -1, Client will pay MED3000 a service fee equal to 8 % of the Supplemental Payments recovered by MED3000 on behalf of Client, in accordance with Section 4 of the Agreement. Supplemental Payments shall include any payments for ambulance services, including all nonemergency and emergency patient transports that are reimbursed by Texas Medicaid to Client. 2. All service fees are exclusive of all federal, state and local taxes, including sales taxes, assessed on or due in respect of any Services performed by MED3000 under the Agreement, for which taxes Client shall be solely responsible. Client shall reimburse MED3000 for all those costs and expenses of Client paid by MED3000 or any subsidiary or affiliate of MED3000 Group on behalf of Client in connection with the provision of Services hereunder, provided that MED3000 shall first attempt to obtain any exemption available due to Client's being a tax - exempt organization. Client will assist MED3000 in obtaining any such exemption. There will be a charge to the Client for requests, including but not limited to, requests for special programming and non - standard reports. The cost for such requests will be determined on an individual basis and shall be reimbursed in accordance with Section 4.2 of the Agreement. Any request from the Client that may result in charges must be made in writing. For any request that results in charges of $25,000.00 or less, the written request may be approved by the City Manager. The City Council must approve any request that may result in charges over $25,000.00. Bryan TX BSSA - Execution Copy.docx Page 12 of 18 EXHIBIT 3 PRIVILEGED AND CONFIDENTIAL Client Name: City of Bryan EXHIBIT C BUSINESS ASSOCIATE ADDENDUM ( "BAA ") SECTION 1: DEFINITIONS "Breach" will have the same meaning given to such term in 45 C.F.R. § 164.402. "Designated Record Set" will have the same meaning as the term "designated record set" in 45 C.F.R. § 164.501. "Electronic Protected Health Information" or "Electronic PHP' will have the meaning given to such term under the Privacy Rule and the Security Rule, including, but not limited to, 45 C.F.R. § 160.103, as applied to the information that MED3000 creates, receives, maintains or transmits from or on behalf of Client. "Individual" will have the same meaning as the term "individual" in 45 C.F.R. § 160.103 and will include a person who qualifies as a personal representative in accordance with 45 C.F.R. § 164.502(g). "Privacy Rule" will mean the Standards for Privacy of Individually Identifiable Health Information at 45 C.F.R. Part 160 and Part 164, Subparts A and E. "Protected Health Information" or "PHP' will have the same meaning as the term "protected health information" in 45 C.F.R. § 160.103, as applied to the information created, received, maintained or transmitted by MED3000 from or on behalf of Client. "Required by Law" will have the same meaning as the term "required by law" in 45 C.F.R. § 164.103. "Secretary" will mean the Secretary of the Department of Health and Human Services or his or her designee. "Security Incident" will have the meaning given to such term in 45 C.F.R. § 164.304. "Security Rule" will mean the Security Standards at 45 C.F.R. Part 160 and Part 164, Subparts A and C. "Unsecured PHI" will have the same meaning given to such term under 45 C.F.R. § 164.402, and guidance promulgated thereunder. Capitalized Terms. Capitalized terms used in this Addendum and not otherwise defined herein will have the meanings set forth in the Privacy Rule, the Security Rule, and the HIPAA Final Rule, which definitions are incorporated in this Addendum by reference. Bryan TX BSSA - Execution Copy.docx Page 13 of 18 EXHIBIT 3 PRIVILEGED AND CONFIDENTIAL Client Name: City of Bryan SECTION 2: PERMITTED USES AND DISCLOSURES OF PHI 2.1 Uses and Disclosures of PHI Pursuant to the Underlying Agreement. Except as otherwise limited in this Addendum, MED3000 may use or disclose PHI to perform functions, activities or services for, or on behalf of, Client as specified in an existing written agreement (the "Underlying Agreement "), provided that such use or disclosure would not violate the Privacy Rule if done by Client. 2.2 Permitted Uses of PHI by MED3000. Except as otherwise limited in this Addendum, MED3000 may use PHI for the proper management and administration of MED3000 or to carry out the legal responsibilities of MED3000. 2.3 Permitted Disclosures of PHI by MED3000. Except as otherwise limited in this Addendum, MED3000 may disclose PHI for the proper management and administration of MED3000, provided that the disclosures are Required by Law, or MED3000 obtains reasonable assurances from the person to whom the information is disclosed that it will remain confidential and will be used or further disclosed only as Required by Law or for the purpose for which it was disclosed to the person (which purpose must be consistent with the limitations imposed upon MED3000 pursuant to this Addendum), and that the person agrees to notify MED3000 of any instances of which it is aware in which the confidentiality of the information has been breached. MED3000 may disclose PHI to report violations of law to appropriate federal and state authorities, consistent with 45 C.F.R. § 164.5020)(1). 2.4 Data Aggregation. Except as otherwise limited in this Addendum, MED3000 may use PHI to provide Data Aggregation services for the Health Care Operations of the Client as permitted by 45 C.F.R. § 164.504(e)(2)(i)(B). 2.5 De- identified Data. MED3000 may de- identify PHI in accordance with the standards set forth in 45 C.F.R. § 164.514(b) and may use or disclose such de- identified data unless prohibited by applicable law. SECTION 3: OBLIGATIONS OF MED3000 3.1 Appropriate Safeguards. MED3000 will use appropriate safeguards and will, after the compliance date of the HIPAA Final Rule, comply with the Security Rule with respect to Electronic PHI, to prevent use or disclosure of such information other than as provided for by the Underlying Agreement and this Addendum. Except as expressly provided in the Underlying Agreement or this Addendum, MED3000 will not assume any obligations of Client under the Privacy Rule. To the extent that MED3000 is to carry out any of Client's obligations under the Privacy Rule as expressly provided in the Underlying Agreement or this Addendum, MED3000 will comply with the requirements of the Privacy Rule that apply to Client in the performance of such obligations. 3.2 Reporting of Improper Use or Disclosure Security Incident or Breach. MED3000 will report to Client any use or disclosure of PHI not permitted under this Addendum, Breach of Unsecured PHI or any Security Incident, without unreasonable delay, and in any event no more Bryan TX BSSA - Execution Copy.docx Page 14 of 18 EXHIBIT 3 PRIVILEGED AND CONFIDENTIAL Client Name: City of Bryan than thirty (30) days following discovery; provided, however, that the Parties acknowledge and agree that this Section constitutes notice by MED3000 to Client of the ongoing existence and occurrence of attempted but Unsuccessful Security Incidents (as defined below). "Unsuccessful Security Incidents" will include, but not be limited to, pings and other broadcast attacks on MED3000's firewall, port scans, unsuccessful log -on attempts, denials of service and any combination of the above, so long as no such incident results in unauthorized access, use or disclosure of PHI. MED3000's notification to Client of a Breach will include: (i) the identification of each individual whose Unsecured PHI has been, or is reasonably believed by MED3000 to have been, accessed, acquired or disclosed during the Breach; and (ii) any particulars regarding the Breach that Client would need to include in its notification, as such particulars are identified in 45 C.F.R. § 164.404. 3.3 MED3000's Agents. In accordance with 45 C.F.R. § 164.502(e)(1)(ii) and 45 C.F.R. § 164.308(b)(2), as applicable, MED3000 will enter into a written agreement with any agent or subcontractor that creates, receives, maintains or transmits PHI on behalf of MED3000 for services provided to Client, providing that the agent agrees to restrictions and conditions that are substantially similar to those that apply through this Addendum to MED3000 with respect to such PHI. 3.4 Access to PHI. The Parties do not intend for MED3000 to maintain any PHI in a Designated Record Set for Client. To the extent MED3000 possesses PHI in a Designated Record Set, MED3000 agrees to make such information available to Client pursuant to 45 C.F.R. § 164.524, within ten (10) business days of MED3000's receipt of a written request from Client; provided, however, that MED3000 is not required to provide such access where the PHI contained in a Designated Record Set is duplicative of the PHI contained in a Designated Record Set possessed by Client. If an Individual makes a request for access pursuant to 45 C.F.R. § 164.524 directly to MED3000, or inquires about his or her right to access, MED3000 will either forward such request to Client or direct the Individual to Client. 3.5 Amendment of PHI. The Parties do not intend for MED3000 to maintain any PHI in a Designated Record Set for Client. To the extent MED3000 possesses PHI in a Designated Record Set, MED3000 agrees to make such information available to Client for amendment pursuant to 45 C.F.R. § 164.526 within twenty (20) business days of MED3000's receipt of a written request from Client. If an Individual submits a written request for amendment pursuant to 45 C.F.R. § 164.526 directly to MED3000, or inquires about his or her right to amendment, MED3000 will either forward such request to Client or direct the Individual to Client. 3.6 Documentation of Disclosures. MED3000 agrees to document such disclosures of PHI and information related to such disclosures as would be required for Client to respond to a request by an Individual for an accounting of disclosures of PHI in accordance with 45 C.F.R. § 164.528. MED3000 will document, at a minimum, the following information ( "Disclosure Information "): (a) the date of the disclosure; (b) the name and, if known, the address of the recipient of the PHI; (c) a brief description of the PHI disclosed; (d) the purpose of the disclosure that includes an explanation of the basis for such disclosure; and (e) any additional information required under the HITECH Act and any implementing regulations. Bryan TX BSSA - Execution Copy.docx Page 15 of 18 EXHIBIT 3 PRIVILEGED AND CONFIDENTIAL Client Name: City of Bryan 3.7 Accounting of Disclosures. MED3000 agrees to provide to Client, within twenty (20) business days of MED3000's receipt of a written request from Client, information collected in accordance with Section 3.6 of this Addendum, to permit Client to respond to a request by an Individual for an accounting of disclosures of PHI in accordance with 45 C.F.R. § 164.528. If an Individual submits a written request for an accounting of disclosures of PHI pursuant to 45 C.F.R. § 164.528 directly to MED3000, or inquires about his or her right to an accounting, MED3000 will direct the Individual to Client. 3.8 Governmental Access to Records. MED3000 will make its internal practices, books and records relating to the use and disclosure of PHI received from, or created or received by MED3000 on behalf of, Client available to the Secretary for purposes of the Secretary determining Client's compliance with the Privacy Rule and the Security Rule. 3.9 Mitigation. To the extent practicable, MED3000 will cooperate with Client's efforts to mitigate a harmful effect that is known to MED3000 of a use or disclosure of PHI by MED3000 that is not permitted by this Addendum. 3.10 Minimum Necessary. MED3000 will request, use and disclose the minimum amount of PHI necessary to accomplish the purpose of the request, use or disclosure, in accordance with 45 C.F.R. § 164.514(d), and any amendments thereto. 3.11 HIPAA Final Rule Applicability. MED3000 acknowledges that enactment of the HITECH Act, as implemented by the HIPAA Final Rule, amended certain provisions of HIPAA in ways that now directly regulate, or will on future dates directly regulate, MED3000 under the Privacy Rule and Security Rule. MED3000 agrees, as of the compliance date of the HIPAA Final Rule, to comply with applicable requirements imposed under the HIPAA Final Rule, including any amendments thereto. SECTION 4: OBLIGATIONS OF CLIENT 4.1 Notice of Privacy Practices. Client will notify MED3000 of any limitation(s) in its notice of privacy practices in accordance with 45 C.F.R. § 164.520, to the extent that such limitation may affect MED3000's use or disclosure of PHI. Client will provide such notice no later than fifteen (15) days prior to the effective date of the limitation. 4.2 Notification of Changes Regarding, Individual Permission. Client will obtain any consent or authorization that may be required by the Privacy Rule, or applicable state law, prior to furnishing MED3000 with PHI. Client will notify MED3000 of any changes in, or revocation of, permission by an Individual to use or disclose PHI, to the extent that such changes may affect MED3000's use or disclosure of PHI. Client will provide such notice no later than fifteen (15) days prior to the effective date of the change. 4.3 Notification of Restrictions to Use or Disclosure of PHI. Client will notify MED3000 of any restriction to the use or disclosure of PHI that Client has agreed to in accordance with 45 C.F.R. § 164.522, to the extent that such restriction may affect MED3000's use or disclosure of PHI. Client will provide such notice no later than fifteen (15) days prior to the effective date of Bryan TX BSSA - Execution Copy.docx Page 16 of 18 EXHIBIT 3 PRIVILEGED AND CONFIDENTIAL Client Name: City of Bryan the restriction. If MED3000 reasonably believes that any restriction agreed to by Client pursuant to this Section may materially impair MED3000's ability to perform its obligations under the Underlying Agreement or this Addendum, the Parties will mutually agree upon any necessary modification of MED3000's obligations under such agreements. 4.4 Permissible Requests b Cy lient. Client will not request MED3000 to use or disclose PHI in any manner that would not be permissible under the Privacy Rule, the Security Rule or the HITECH Act if done by Client, except as permitted pursuant to the provisions of Sections 2.2, 2.3, 2.4 and 2.5 of this Addendum. SECTION 5: TERM AND TERMINATION 5.1 Term. The term of this Addendum will commence as of the Effective Date, and will terminate when all of the PHI provided by Client to MED3000, or created or received by MED3000 on behalf of Client, is destroyed or returned to Client. If it is infeasible to return or destroy PHI, MED3000 will extend the protections to such information, in accordance with Section 5.3. 5.2 Termination for Cause. Upon either Party's knowledge of a material breach by the other Party of this Addendum, such Party may terminate this Addendum immediately if cure is not possible. Otherwise, the non - breaching party will provide written notice to the breaching Party detailing the nature of the breach and providing an opportunity to cure the breach within thirty (30) business days. Upon the expiration of such thirty (30) day cure period, the non - breaching Party may terminate this Addendum if the breaching party does not cure the breach or if cure is not possible. If termination is not feasible, the non - breaching party may report the breach or violation to the Secretary. 5.3 Effect of Termination. 5.3.1 Except as provided in Section 5.3.2, upon termination of the Underlying Agreement or this Addendum for any reason, MED3000 will return or destroy all PHI received from Client, or created or received by MED3000 on behalf of Client, at Client's expense, and will retain no copies of the PHI. This provision will apply to PHI that is in the possession of subcontractors or agents of MED3000. 5.3.2 If it is infeasible for MED3000 to return or destroy the PHI upon termination of the Underlying Agreement or this Addendum, MED3000 will: (a) extend the protections of this Addendum to such PHI and (b) limit further uses and disclosures of such PHI to those purposes that make the return or destruction infeasible, for so long as MED3000 maintains such PHI. SECTION 6: COOPERATION IN INVESTIGATIONS The Parties acknowledge that certain breaches or violations of this Addendum may result in litigation or investigations pursued by federal or state governmental authorities of the United States resulting in civil liability or criminal penalties. Each Party will cooperate in good faith in all respects with the other Party in connection with any request by a federal or state Bryan TX BSSA - Execution Copy.docx Page 17 of 18 EXHIBIT 3 PRIVILEGED AND CONFIDENTIAL Client Name: City of Bryan governmental authority for additional information and documents or any governmental investigation, complaint, action or other inquiry. SECTION 7: SURVIVAL The respective rights and obligations of MED3000 under Section 5.3 of this Addendum will survive the termination of this Addendum and the Underlying Agreement. SECTION 8: AMENDMENT This Addendum may be modified, or any rights under it waived, only by a written document executed by the authorized representatives of both Parties. In addition, if any relevant provision of the Privacy Rule, the Security Rule or the HIPAA Final Rule is amended in a manner that changes the obligations of MED3000 or Client that are embodied in terms of this Addendum, then the Parties agree to negotiate in good faith appropriate non - financial terms or amendments to this Addendum to give effect to such revised obligations. SECTION 9: EFFECT OF ADDENDUM In the event of any inconsistency between the provisions of this Addendum and the Underlying Agreement, the provisions of this Addendum will control. In the event that a court or regulatory agency with authority over MED3000 or Client interprets the mandatory provisions of the Privacy Rule, the Security Rule or the HIPAA Final Rule, in a way that is inconsistent with the provisions of this Addendum, such interpretation will control. Where provisions of this Addendum are different from those mandated in the Privacy Rule, the Security Rule, or the HIPAA Final Rule, but are nonetheless permitted by such rules as interpreted by courts or agencies, the provisions of this Addendum will control. Bryan TX BSSA - Execution Copy.docx Page 18 of 18 EXHIBIT 3 REQUEST FOR PROPOSAL Ambulance Supplemental Payment Program CITY ©F BRIAN The Good Life, Texas Style' RFP # 14 -003 DUE DATE: October 24, 2013 @ 2:00 P.M. C.S.T. CITY OF BRYAN Purchasing Department 1309 E. Martin Luther King St. Bryan, TX 77803 979 - 209 -5500 www.bryantx.gov ATTACHMENT A [(PART 01 THE AGREEMENT) Disclosure Requirements Chapter 176 of the Texas Local Government Code mandates the public disclosure of certain information concerning persons doing business or seeking to do business with the City of Bryan, including affiliations and business and financial relationships such persons may have with City of Bryan officers. An explanation of the requirements of Chapter 176, applicable forms and a complete text of the new law are available at: http: / /tlo2.tic.state.tx.us /statutes /ig.toc.htm . If you are unable to obtain such information online, please contact the City of Bryan Purchasing Department, 1309 E. MLK St., Bryan, Texas 77803 or call (979)209 -5500. BY DOING BUSINESS OR SEEKING TO DO BUSINESS WITH THE CITY OF BRYAN, YOU ACKNOWLEDGE THAT YOU HAVE BEEN NOTIFIED OF THE REQUIREMENTS OF CHAPTER 176 OF THE TEXAS LOCAL GOVERNMENT CODE AND THAT YOU ARE SOLELY RESPONSIBLE FOR COMPLYING WITH THEM. RFP # 14 -003 - Page 1 of 23 EXHIBIT 3 A. z CONTENTS................................................................................................................... ............................... 2 INTRODUCTION......................................................................................................... ............................... 3 SCHEDULEOF EVENTS ............................................................................................. ..............................4 DEFINITIONS, TERMS AND CONDITIONS ............................................................. ..............................5 GENERALINFORMATION ........................................................................................ .............................10 INTENTAND SCOPE OF WORK ............................................................................... .............................11 SPECIALPROVISIONS ............................................................................................... .............................12 FORMATREQUIREMENT ......................................................................................... .............................13 EVALUATIONFACTORS ........................................................................................... .............................15 CERTIFICATION AND AUTHORIZATION .............................................................. ................... ..........16 SAMPLECONTRACT ................................................................................................. .............................17 EXHIBIT`B" .............................................................................................................. ............................... 23 RFP # 14 - 003 - Page 2 of 23 EXHIBIT 3 RFP# 14 -003 Ambulance Supplemental Payment Program The City of Bryan, Fire and Finance Departments ( "City "), is seeking Proposal(s) from qualified Service Providers to prepare a cost allocation report in order to participate in the Ambulance Supplemental Payment Program from the Texas Health and Human Services Commission. This supplemental payment program allows approved governmental ambulance providers to submit an annual cost report and receive supplemental payments up to reconciled cost in accordance with State and Federal rules for services provided on or after August 1, 2009. The supplemental payments are based only for Medicaid and uninsured patients. Currently the state allows governmental ambulance service providers to participate in Texas Ambulance Supplemental Payment Program. It is the intent of the City of Bryan to select a single provider to accomplish services outlined in this Request for Proposal. Electronic or Sealed proposals will be accepted until 2:00 p.m. CST on September 24, 2013 and should be addressed to: City of Bryan - Purchasing Department Attn: Susan Chmelar, Buyer 1309 E. Martin Luther King St. Bryan, TX 77803 schmelar @bryantx.gov You may upload one (1) electronic or sealed proposal in the format prescribed herein on our website at http://brazosbid.cstx.gov/. If you choose to respond in writing, one (1) original, three (3) copies and one (1) electronic version (CD or jump drive) of the proposal must be returned in a sealed envelope bearing the RFP name, RFP number, and the name and address of the respondent on the outside of the envelope. Response packages will be accepted until 2:00 p.m. CST on September 24, 2013 and should be addressed as shown above. The City believes that the data contained in this RFP is sufficient; however, requests for additional information will be considered depending on the RFP time frame and the availability of the requested information. In order to ensure a fair and objective RFP process and evaluation, all questions and inquiries related to this Request for Proposal shall be addressed in writing via the Brazos Valley Online Bidding System (hqp: //brazosbid.cstx.gov/). The deadline for written questions and inquiries is October 15, 2013 @ 10:00 a.m. CST. Contact with any City of Bryan employee or official is prohibited without prior written consent from the Purchasing Department or designee. Service Providers contacting any employee(s) or official(s) without prior written consent risk elimination of their proposal from further consideration. The RFP is on file and may be examined at the Purchasing Department Office at 1309 E. Martin Luther King Jr. Street, Bryan, Texas. Documents may be obtained by prospective providers by downloading athttp://www.biazosbid.estx.gov. If you do not have computer accessibility, you may obtain a hard copy by calling 979 - 209 -5555. RFP # 14 - 003 - Page 3 of 23 EXHIBIT 3 Schedule of Events The tentative schedule for this Request for Proposal is as follows: Release and Distribute RFP to Service Providers September 24, 2013 Deadline for Questions and Inquiries October 15, 2013 @ 10:00 a.m. Proposal Submission Deadline October 24, 2013 @ 2:00 p.m. Contract Evaluations/Negotiations November 15, 2013 Earliest Award by City December 6, 2013 RFP # 14 - 003 - Page 4 of 23 EXHIBIT 3 t Definitions In order to simplify the language throughout this request for qualification, the following definitions shall apply: CITY OF BRYAN /CITY— A home rule Municipal Corporation of the State of Texas. CITY COUNCIL — The elected officials of the City of Bryan, Texas, given the authority to exercise such powers and jurisdiction of all City business as conferred by the State Constitution and Laws. CONTRACT — An agreement between the City and a Supplier to furnish supplies or services over a designated period of time during which repeated purchases are made of the commodity or service specified. COOPERATIVE AGREEMENT — Any governmental entity(s) that has entered into a joint interlocal purchasing cooperative agreement with the City of Bryan, Texas. SERVICE PROVIDER/OFFEROR/VENDOR/FIRM — Organization offering a proposal in response to this RFP. PARTICIPATING ENTITIES — The City of Bryan and any other local entity who may elect to participate in the future. RFP— Request for Proposal Proposals The submitted proposal(s) must be received by the Purchasing Department prior to the time and date specified herein. The mere fact that the proposal was dispatched will not be considered; the Service Provider must ensure that the proposal is actually delivered and received on time. Proposals received after the date and time specified shall be returned unopened and will be considered void and unacceptable. The City of Bryan is not responsible for lateness of mail carrier, etc., and time /date stamp in the Purchasing Department shall be the official time of receipt. Proposals cannot be altered or amended after the closing date. Alterations made before closing must be initialed by Service Provider guaranteeing authenticity. Proposals may not be withdrawn after proposal closing date and Service Provider so agrees upon submittal of their proposal. Proposals will be publicly acknowledged in the Purchasing Department's Conference Room at 1309 E. Martin Luther King St, Bryan, TX 77803 at 2:00 p.m. on the date previously specified. Service Providers, their representative(s), and interested persons may be present. The proposals received will be publicly opened but not read aloud. Proposal must be submitted as instructed in the Introduction on page three (3). RFP # 14 - 003 - Page 5 of 23 EXHIBIT 3 By submitting a proposal, the Service Provider certifies that he has fully read and understands this "Request for Proposal" and has full knowledge of the scope, quantity, and quality of the services to be furnished and intends to adhere to the provisions described herein. Failure to do so will be at the Service Providers own risk, and he cannot secure relief on pleas or error. Neither law nor regulations make allowance for error of omission or commission on the part of the Service Provider. Any proposal which does not contain all of the information requested in this RFP will be considered incomplete and may be rejected by the City of Bryan. The City of Bryan by statue is exempt from State Sales Tax and Federal Excise Tax, and the proposal price shall not include taxes. The Service Provider shall furnish any additional information as the City of Bryan may require. The City of Bryan reserves the right to make investigation of the qualifications of the Service Provider(s) as they deem appropriate. This proposal, when properly accepted by the City of Bryan, shall constitute a contract equally binding between the successful Service Provider and the City of Bryan. No different or additional terms, including the Service Providers' subscriber agreement, will become part of this Contract with the exception of a Change Order. This Request for Proposal does not commit the City of Bryan to award a contract, to pay any cost incurred in the preparation of a proposal, or to procure or contract for services. Successful Service Provider agrees to extend prices and terms to all entities that has entered or will enter into joint purchasing inter -local cooperation agreement(s) with the City of Bryan. Reservations The City of Bryan reserves the right to accept or reject any or all proposals as a result of this request, to negotiate with all qualified sources, or to cancel, in part or in its entirety, this Request for Proposal if found in the best interest of the City of Bryan. All proposals become the property of the City of Bryan. The City of Bryan reserves the right to waive any informalities and technicalities and to accept the offer considered most advantageous in order to obtain the best value for the City. Causes for rejection of a proposal may include but shall not be limited to the Service Provider's current violation of any City ordinance, the Service Provider's current inability to satisfactorily perform the work or service, or the Service Provider's previous failure to properly and timely perform its obligations under a contract with the City. Service Provider's may be disqualified and rejection of proposals may be recommended for any (but not limited to) of the following causes: 1) Failure to use the proposal forms furnished by the City; 2) Lack of signature by an authorized representative on the Certification form; 3) Failure to properly complete the proposal; 4) Evidence of collusion among proposers; 5) Omission of uncertified personal or company check as a proposal guarantee (if Bid Bond required); or 6) Any alteration of the language contained within the RFP forms. City of Bryan reserved the right to waive any minor informality or irregularity. RFP # 14 - 003 - Page 6 of 23 EXHIBIT 3 The City reserves the right to retain all proposals submitted and to use any idea in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the Service Provider of the terms and conditions contained in this request for proposals, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City of Bryan and the Service Provider selected. The City of Bryan may conduct reference checks as needed to evaluate proposals. The City may contact those listed, and inclusion of this listing in your proposal is agreement that the City may contact the named reference. The City reserves the right to contact other companies or individuals that can provide information to the City that will assist the City in evaluating the capability of the Service Provider. Reimbursements There is no expressed or implied obligation for the City of Bryan to reimburse responding Service Providers for any expenses incurred in preparing proposals in response to this Request for Proposal, and the City of Bryan will not reimburse responding Service Providers for these expenses, nor will they pay any subsequent costs associated with the provision of any additional information or presentation, or to procure a contract for these services. Certification RFPs must be completed and submitted as required in this document. Certification form must be fully completed. Failure to submit the certification form within the sealed RFP will result in the RFP being rejected as non - responsive. By submitting a RFP, the Service Provider certifies that he has fully read and understands this "Request for Proposals" and has full knowledge of the scope, quantity, and quality of the services to be furnished and intends to adhere to the provisions described herein. Failure to do so will be at the Service Provider's own risk, and he cannot secure relief on pleas or error. Neither law nor regulations make allowance for error of omission or commission on part of Service Provider. Communication The City of Bryan shall not be responsible for any verbal communication between any employee of the City or City Official and any potential Service Provider Only written and properly submitted proposals will be considered. Negotiations During the evaluation process, City of Bryan reserves the right, where it may serve the City of Bryan's best interest, to request additional information or clarifications from proposers. At the discretion of the City, all Service Provider(s) reasonably susceptible of being selected based on criteria set forth in this RFP, may be requested to make oral presentations. Each proposal must designate the person(s) who will be responsible for answering technical and contractual questions. Preliminary negotiations may be conducted with responsible Service Provider(s) who submit proposals that are reasonably susceptible of being selected. At the discretion of the City, all Service Provider(s) reasonably susceptible of being selected based on criteria set forth in this RFP may be given an opportunity to make a presentation and/or interview with the Selection Committee. RFP 4 14 - 003 - Page 7 of 23 EXHIBIT 3 Service Provider(s) will be ranked in order of preference and final contract negotiations will begin with the top ranked Service Provider. Should negotiations with the highest ranked Service Provider fail to yield a contract, or if the Service Provider is unable to execute said contract, negotiations will be formally ended and then commence with the second highest ranked Service Provider, etc. Cooperative Agreements Successful Service Provider agrees to extend prices and terms to all governmental entities having entered, or future entities, into interlocal cooperation agreements with the City of Bryan. Disclosure At the public opening, there will be no disclosure of contents to competing Service Providers, and all proposals will be kept confidential during the negotiation process. Except for trade secrets and confidential information which the Service Provider identifies as proprietary, all proposals will be open for public inspection after the contract award. Proprietary information must clearly be identified by typing the word "CONFIDENTIAL" in bold fourteen (14) point font on the bottom margin and indicate what information is protected. If Proposal Results in a Contract, the Following Terms and Conditions Will Apply: Proposers should be aware that the RFP and the contents of the successful proposal will become a part of any subsequent contractual document that may arise from this RFP. In case of discrepancy between the RFP and the Service Provider's proposal, the RFP will rule. Award of the contract shall be based on demonstrated competence and qualifications, so long as the professional fees are consistent with, and not higher than the published recommended practices and fees of the various professional associations and do not exceed any maximums provided by state law. The contract will remain firm for a minimum twenty four (24) month period from the date of contract award. The City of Bryan reserves the right to extend this contract for three (3) additional one -year periods upon mutual agreement of all parties. Contracts can be cancelled, without penalty, with thirty (30) days written notice of cancellation by the City of Bryan. The opportunity for City of Bryan to enter into contract with the successful Provider(s) will remain open for a period of ninety (90) days from the date and time of the proposal submission deadline date, with the same terms, conditions and negotiated fee schedule. The City of Bryan will not accept any contract terms that require pre - payment for services, supplies or equipment. Limited exceptions may be considered for operating leases or software maintenance and support agreements. Software maintenance and support fees may not be assessed for any system that is not installed, operational and available for use by the City of Bryan. No oral statement of any person shall modify or otherwise change, or affect the terms, conditions, or specifications stated in the resulting contract. All Change Orders to the contract will be made in writing by the Purchasing Department for the City of Bryan. RFP # 14 - 003 - Page 8 of 23 EXHIBIT 3 Should there be a change in ownership or management, the Contract shall be cancelled unless a mutual agreement is reached with the new owner or manager to continue the contract with its present provisions and prices. This Contract is nontransferable by either party. Payment will be made in accordance with a negotiated fee schedule. All invoicing shall be submitted in duplicate to the City of Bryan. If invoices are subject to cash discount, discount period is to be taken from the date of completion of order or date of receipt of invoice, whichever occurs last regardless of whether or not correct discount terms appear on invoice. All invoices are to be paid in full within 30 days after satisfactory delivery of services and billing. No public official or City employee shall enter into a contract with the City that violates Local Government Code, Section 171.003. The Service Provider will be required to comply with all provisions of the President's Executive Order No. 11246 as of September 24, 1965. Service Providers are advised that all contracts are subject to all legal requirements provided in the City Charter and applicable City Ordinances, State, and Federal Statutes. This Request for Proposal includes the City's Standard Form of Agreement (Exhibit A). The Provider should review this agreement thoroughly. If Provider has any exceptions to the standard terms and conditions, Provider must identify any provision they are not prepared to satisfy in their proposal submission. The enclosed "Certification Authorization Acknowledgment" Form must be properly executed and provided with the sealed proposal indicating the Provider's willingness to execute the City's Standard Form of Agreement Contract. The City of Bryan operates and is funded on a fiscal year basis; accordingly, the City of Bryan reserves the right to terminate, without liability, any contract for which funding is not available. Renewal of contract will be in accordance with Local Government Code 271.903 concerning non - appropriation of funds for multi -year contracts. Addenda In the event of a needed change in the published RFP documents, it is understood that all the foregoing terms and conditions and all performance requirements will apply to any published addendum. All published addenda shall be signed and included with your response package as acknowledgement of the addendum. Providers are responsible for obtaining all published addenda from the City of Bryan on -line bid system at http: / /www.brazosbid.cstx.gov or from the City of Bryan Purchasing office. The City assumes no responsibility for the Providers failure to obtain and/or properly submit any addendum. Failure to acknowledge and submit any addendum may be cause for the proposal to be rejected. The City's decision to accept or reject any particular proposal due to a failure to acknowledge and submit addenda shall be final. RFP # 14 - 003 - Page 9 of 23 EXHIBIT 3 Background The City of Bryan is located in Central Texas between Austin and Houston. The City of Bryan was incorporated in 1872. The original square -mile town site now consists of more than 43.4 square miles. The 2009 population estimate for Bryan is 74,654. The City of Bryan is a home -rule city that operates under the Council- Manager form of government. The City provides a full range of municipal services as prescribed by statute or charter. These services include police, fire and emergency medical services, parks and recreational facilities, library services, street maintenance and construction, public improvements, general administrative services and electrical, water, sewer, and sanitation systems. City Charter, Council minutes, Budget information, maps and a wealth of miscellaneous information about the City of Bryan can be found online at www.bryantx.gov. The City of Bryan currently utilizes Digitech Computer, Inc. for our ambulance billing services. Our rates have been established by City Ordinance through the City Council. LISTED BELOW ARE QUESTIONS /ANSWERS TO CLAIRIFY POTENTION NEEDED INFORMATION: 1. Who will responsible for the accuracy of any cost figures provided to the contractor for cost report submittal purposes to Medicaid. Answer: The City will provide in good faith all numbers requested by the contractor for the preparation and submittal of the cost report. 2. In the event of a State or Federal audit of the cost report that results in a payback, which parry (City or Service Provider) is ultimately responsible for that payback? Answer: The City is ultimately responsible for that payback. However, the payback may result in a fee adjustment to the Service Provider. 3. We are a third -party ambulance billing company and are familiar with the ambulance supplemental pay program. We want to clarify if this bid is for the supplemental pay program only, or is it also for billing ambulance claims. Answer: Ambulance Supplemental Payment Program only. 4. If the bid is for the ambulance supplemental pay program only, how will the winning company be paid? Will it be on a percentage collected or a percentage billed. Answer: The respondent is responsible to address the fee structure pertaining to the service including commission and/or fees within their proposal document. RFP # 14 - 003 - Page 10 of 23 EXHIBIT 3 The City of Bryan is requesting proposals for an Ambulance Supplemental Payment Program and associated services in accordance with the requirements specified herein and including all provisions set forth in the accompanying documentation. It is the City of Bryan intent to contract with one (1) service provider for this service, and any associated service(s), equipment or technologies. OVERVIEW Ambulance Supplemental Payment Program is a federally approved program designed to provide additional reimbursement to governmental providers that serve Medicaid, Medicaid Managed Care, and the Uninsured fee for service patients. The City of Bryan Fire Department would be eligible for a portion of the variance between the cost of providing ambulance services to Medicaid and Uninsured patients, and what Medicaid pays. The City of Bryan Emergency Medical Services (EMS) provides ambulance service through its 911 dispatched ambulance services based on 911 dispatched calls. Included in this request for proposals (RFP) are minimum general criteria, scope of services, evaluation criteria, qualifications and technical requirements and pricing proposal definition. Any solution offered must, at a minimum, achieve the following fundamental objectives. • Comply fully with current local, state and federal laws and statutes. • Maximize revenue for the City and in line with the cost reporting procedures of the Texas Health and Human Services Commission. SCOPE The City of Bryan EMS responds to over 7400 calls and transports over 5400 patients yearly. The City operated a fleet of 4 full time ambulances and 5 engines. All ambulances are staffed and equipped for advance life support. Historical billed and collection data: Billed Medicaid Uninsured Collected Medicaid Uninsured $7,525,333 $1,323,589 $1,843,318 1 $598,842 $512.612 $86,230 *as of 12/l/2011- 07/31/2013 Transport Mix, defined as the percentage of dollars billed and collected to each of the following payer groups 12/1/2011 - 07/31/2013, is as follows: Billed Collected Medicare -- 44% Medicare -- 53% Medicaid -- 18% Medicaid -- 18% Commercial Insurance -- 14% Commercial Insurance -- 26% Uninsured Accounts -- 24% Uninsured Accounts -- 3% Rate Structure and Mileage Charges are as follows: RFP # 14-003 -Page 11 of 23 EXHIBIT 3 Transport Within the Bryan/CS City Limits Outside the Bryan/CS City Limits BLS $750 plus $12 /loaded mile $750 plus $15 /loaded mile ALS1 $850 plus $12/loaded mile $850 plus $15 /loaded mile ALS2 $950 plus $12 /loaded mile $950 plus $15/loaded mile Selection Process A selection committee composed of Randy McGregor/ Fire Chief and Cory Matthews/ EMS Chief and any other persons they may identify shall review all proposals. Selection shall be based on the responsible Service Provider(s) whose proposal is determined to be the best value to the City of Bryan, considering the relative importance of the evaluation criteria listed herein. The City of Bryan reserves the right to award contracts to one or more Service Provider(s) submitting the best overall proposal that is deemed to best represent the desires and needs of the City of Bryan; however, it is the City of Bryan's desire to contract with only one Service Provider for all services outlined in the RFP. Oral Presentations After all proposals have been evaluated, the selection committee may require representatives of one or more of the respondents to appear and make presentations to the selection committee for the purpose of making a final evaluation and recommendation for contract award. However, the City, may in its sole discretion, award a contract without presentations, based solely on information supplied in the proposal responses. News Releases /Publicity News releases, publicity releases, or advertisements relating to this engagement or the tasks or projects associated with this engagement shall not be made without prior written approval from the City. RFP # 14 - 003 - Page 12 of 23 EXHIBIT 3 Requirements: The following instructions describe the form in which proposals must be submitted. Responses to the following items will be used for proposal evaluation. Proposals which do not contain responses to each of the requirement items will be considered incomplete and may be rejected by the City of Bryan. Proposal documents should provide a straightforward, concise description of the Service Provider's capabilities to satisfy the requirements of this RFP. Emphasis should be on completeness, clarity of content, and conveyance of the information requested by the City of Bryan. The requirements stated do not preclude Service Providers herein from furnishing additional reports, functions, and costs as deemed appropriate. Bid Submission: Upload one (1) electronic proposal in the format prescribed herein on our website at http: /Ibrazosbid.cstx.pov/ . Or, if you choose to respond in writing, one (1) original, three (3) copies and one (1) electronic version (CD -ROM) of the proposal should be returned in a sealed envelope /package bearing the RFP name, RFP number and name and address of the respondent on the outside of the delivery package. To facilitate the review of the responses, Providers shall follow the described proposal format: TAB A Qualifications and Experience 1. Briefly introduce your Firm, providing a summary of the administration, organization and staffing of your Firm, including multiple offices, if applicable. Provide an organizational chart indicating the positions and names of the core management team which will undertake this engagement. 2. If your Firm has multiple office locations, specify which location you propose to service our account. 3. Specify current work load, flexibility of scheduling, size of collection staff, location where work/research will primarily be performed. 4. Describe the experience of the Firm in the last thirty six (36) months in performing services in similar size and scope. Particular emphasis will be placed on Providers that have performed Ambulance Supplemental Payment Programs for municipalities. 5. Identify the project manager and each individual who will work as part of this engagement. Include resumes for each person to be assigned. Include any professional designations and affiliations, certifications and licenses, etc. 6. Describe the organization of the proposed team, detailing the level of involvement, field of expertise, and estimated hours for each member of the team. 7. Describe what municipal staff support you anticipate for the project. 8. Identify the number and type of Ambulance Supplemental Payment Programs presently being conducted by the Firm. 9. Address any performance related litigation that your Firm may be, or has been, involved in over the last five (5) years. RFP # 14 - 003 - Page 13 of 23 EXHIBIT 3 10. Identify if your Firm has had any contracts terminated due to non- performance over the last five (5) years. 11. Identify adverse actions sanctioned by any regulatory authorities over the last five (5) years. TAB B Rates and Expenses 1. Provide a proposed fee schedule. Express your administrative fee in lump sum not -to- exceed maximum amount or a percentage of the monies collected and a separate price for travel and related expenses. 2. Indicate your specific expectations concerning reimbursement for travel, per diem expenses, printing, video conferences, and other incidental expenses for the Service Provider. 3. Service Provider shall incur no travel or related expenses chargeable to the City without prior approval by an authorized City representative. 4. Related expenses chargeable to the City, such as supplies, printing, binders, etc. shall be passed through at Service Provider's cost. Related expenses shall not include postage, copies, telephone toll charges, or other charges incurred in the normal course of business and shall not be charged. 5. Expenses not specifically listed will not be considered reimbursable. TAB C Project time -line 1. Proposals must include a time -line that includes as a minimum, each decision point and milestones for each step of the process. 2. Proposals must provide chronological time -line of each task or event and the estimated time required to complete the engagement. TAB D Methodology including technical approach and understanding of the scope of the project. 1. Proposals must indicate a clear understanding of the scope of the work, including a detailed project plan for this engagement outlying major tasks and responsibilities, time frames, and staff assigned for each category of the scope of work identified above. 2. Proposals shall identify progress reports that will be made available during the process and key decision points. 3. Proposals shall clearly distinguish the Providers' duties and responsibilities and those of the City. Absence of this distinction shall mean the Provider is assuming full responsibility for all tasks. TAB E References Provide references for similarly successful projects from three government agencies, including the name of the agency, contact name, telephone, fax and email address. TAB F Certification page, acknowledgement of any Addenda issued and a statement of willingness to sign the City's Standard Form of Agreement. RFP # 14 - 003 - Page 14 of 23 EXHIBIT 3 The City of Bryan will review all proposals to determine compliance with the requirements as specified in the RFP. Only proposals which, in the opinion of the Selection Committee, meet the requirements of the RFP will be further evaluated. Proposals that pass the preliminary review will be evaluated on how well the proposal meets the needs of the City of Bryan as described in the Service Provider's response to each requirement listed in the RFP. The Selection Committee will review all written proposals that meet the minimum requirements and will select what it deems to be the top two to four proposals for further review. It is important that the responses be clear and complete so that the Selection Committee can adequately understand all aspects of the proposals. Evaluation Factors After receipt of proposals, the City of Bryan will use the following criteria in the selection process: 45% Rates and expenses 25% Qualifications and experience 20% Project design and methodology including technical approach and understanding of the scope of the project. 10% References RFP # 14 - 003 - Page 15 of 23 EXHIBIT 3 CERTIFICATION and AUTHORIZATION: The undersigned certifies that they have fully read RFP # 14 -003 and understands this 'Request for Proposal' and has full knowledge of the scope, quantity, and quality of the services to be furnished and intends to adhere to the provisions described herein. The undersigned also affirms that they are duly authorized to submit this proposal, that this proposal has not been prepared in collusion with any other Service Provider, and that the contents of this proposal have not been communicated to any other Service Provider prior to the official opening of this proposal. Additionally, the undersigned affirms that the Service Provider is willing to sign the enclosed Exhibit A, Standard Form of Agreement Contract. Signed By: Title: Typed Name: Company Name: Phone No.: Fax No.: Email: Bid Address: Order Address: Remit Address: Federal Tax ID No.: Date: P.O. Box or Street City State Zip P.O. Box or Street City State Zip P.O. Box or Street City State Zip END OF RFP #14 -003 RFP # 14 - 003 - Page 16 of 23 This Contract, dated , 2013, is between the City of Bryan, a Texas home -rule municipal corporation, (the City) and (the Service Provider), whereby the Service Provider agrees to provide the City with certain services as described herein and the City agrees to pay the Service Provider for those services. 1. Scope of Services In consideration of the compensation stated in Paragraph 2, the Service Provider agrees to provide the City with the services as described in Exhibit A — RFP #14 -003 and Exhibit B — Insert Firms Name - Proposal to the City of Bryan which is incorporated herein by W eference for all purposes, and which services may be more generally described as follows: "AMBULANCE SUPPLEMENTAI 2. Payment In consideration of the Service and conditions of this Contracts the Cit; Exhibit A r<d Eibit B �; 3. Exhibit npliance with all terms to the terms set forth in A. , All;" and"%services provided under this Contract must be completed as outlined in B. Time is of the essence of this Contract. The Service Provider shall be prepared to provide the professional services in the most expedient and efficient manner possible in order to complete the work by the project timeline specified in Exhibit A and Exhibit B. 4. Warranty, Indemnification, & Release A. As an experienced and qualified Service Provider, the Service Provider warrants that the information provided by the Service Provider reflects high professional and industry standards, procedures, and performances. The Service Provider warrants that the performance of all services under this Contract will be pursuant to a high standard of performance in the profession. The Service Provider warrants that the Service Provider will exercise diligence and due care and perform in a good and workmanlike manner all of the services pursuant to this Contract. Approval of the City shall not constitute, or be deemed, a release of the responsibility and liability of the Service Provider, its employees, agents, or associates for the exercise of skill and diligence to promote the accuracy and competency of their services, or any document, nor shall the City's approval be deemed to be the assumption of responsibility by the City for any defect or error in the aforesaid documents prepared by the Service Provider, its employees, associates, agents, or subcontractors. B. The Service Provider shall promptly correct any defective services or documents furnished by the Service Provider at no cost to the City. The City's approval, acceptance, use of, or payment for, all or any part of the Service Provider's services hereunder or of the scope of work itself shall in no way alter the Service Provider's obligations or the City's rights hereunder. RFP # 14 -003 - Page 17 of 23 EXHIBIT 3 C. In all activities or services performed hereunder, the Service Provider is an independent contractor and not an agent or employee of the City. The Service Provider and its employees are not the agents, servants, or employees of the City. As an independent contractor, the Service Provider shall be responsible for the professional services and the final work product contemplated under this Contract. Except for materials furnished by the City, the Service Provider shall supply all materials, equipment, and labor required for the professional services to be provided under this Contract. The Service Provider shall have ultimate control over the execution of the professional services. The Service Provider shall have the sole obligation to employ, direct, control, supervise, manage, discharge, and compensate all of its employees or subcontractors, and the City shall have no control of or supervision over the employees of the Service Provider or any of the Service Provider's subcontractors. D. It is expressly understood and agreed that the City shall not be liable or responsible for the negligence of the Service Provider, its officers, employees, agents, subcontractors, invitees, licensees, and other persons.. E. Responsibility for damage claims (indemnification): Service Provider shall defend, indemnify and save harmless the City and all its officers, agents,, and employees from all `` suits, actions, or claims of any character, name and description brought for or on account of any injuries or damages received or sustained by any person 01*rsons or property resulting from the Service Provider's negligent performance of the,work, or by 'or on account of any` claims or amounts recovered under the Worker's Compensation Law or any other law,'' ordinance, order or decree, and his sureties shall be held 'until such suitor suits, action or actions, claim or claims for injury or damages as 'aforesaid shall have been settled and 'satisfactory evidence to the effect furnished the City. The Service Provider shall defend' ,'indemn fY and save'harmless the City, its officers, agents and employees in accordance' with this indemnification clause only for that portion of the damage caused by Service Provider's negligence. F. Release. The Service Provider releases, relinquishes, and discharges the City, its officers, agents, and 'employees from all claims, demands, and causes of action of every kind and character, including the cost of defense thereof, for any injury to, sickness or death of the Service Provider or its employees and any loss of or damage to any property of the Service Provider or its employees that is caused by or alleged to be caused by, arises out of, or is in connection with the Service Provider's negligent performance of the work. Both the City and the Service Provider expressly intend that this release shall apply regardless of whether said claims, demands, and causes of action are covered, in whole or in part, by insurance. 5. Service Provider's Insurance The Service Provider agrees to maintain, on a primary basis, for the duration of this contract the insurance coverage and limits as described below. The Service Provider must deliver to the City a certificate(s) of insurance evidencing that such policies are in full force and effect with verification within five (5) business days of notification of the City's intent to award a contract. Failure to meet the insurance requirements and provide the required certificate(s) and any necessary endorsements within five (5) business days may cause the proposal to be rejected. The City reserves the right to obtain complete, certified copies of all required insurance policies at any time. RFP # 14 -003 - Page 18 of 23 EXHIBIT 3 The requirements as to types and limits, as well as the City's review or acceptance of insurance coverage to be maintained by the Service Provider, is not intended to nor shall in any manner limit or qualify the liabilities and obligations assumed by the Service Provider under the Agreement. WORKERS' COMPENSATION INSURANCE & EMPLOYERS' LIABILITY INSURANCE — Statutory • $500,0001$500,0001$500,000 Service Provider agrees to maintain Worker's Compensation Insurance • Employers Liability. In the event any work is sublet, the Service Provider shall require the subcontractor similarly to provide the same coverage and shall himself acquire evidence of such coverage on behalf of the subcontractor. Waiver of subrogation in favor of the City required. This requirement may be waived with satisfactory evidence that the contractor is sole proprietor(s) or if the Service Provider will not be handling money on behalf of the City or conducting work on city premises. COMMERCIAL GENERAL LIABILITY INSURANCE — Limit of liability not less than $1,000,000 per occurrence Service Provider agrees to maintain a standard ISO version Commercial General Liability occurrence form, or its equivalent providing coverage for, but not limited to, Bodily,'Injury and Property Damage, Premises /Operations, Products /Completed Operations, Independent Contractors. Additiitnal insured endorsement required. This requirement may be waived with satisfactory evidence that the service Provider will not be handling money on behalf of the city or conducting work o� cityprPmase. UMBRELLA or EXCESS LIABILITY Service Provider may satisfy the minimum liability limits required for Commercial General Liability under an Umbrella or Excess Liability policy. The annual aggregate limit shall not be less than the highest "each occurrence" limit. Service Provider agrees to endorse City as an additional insured, unless the Certificate states the Umbrella or Excess Liability provides coverage on a pure "True Follow Form" basis. SERVICE PROVIDER'S INSURANCE TO BE PRIMARY Service Provider's insurance shall be deemed primary with respect to any insurance or self - insurance carried by the City for liability arising out of operations under the contract. DEDUCTIBLES COINSURANCE PENALTIES & SELF - INSURED RETENTION Service Provider shall agree to be fully and solely responsible for any costs or expenses as a result of a coverage deductible, coinsurance penalty, or self - insured retention; including any loss not covered because of the operation of such deductible, coinsurance penalty, or self- insured retention. RIGHT TO REVIEW AND ADJUST The City reserves the right to review these requirements and to modify insurance coverage and their limits when deemed necessary and prudent. Furthermore, the City reserves the right, but not the obligation, to review and reject any insurer providing coverage because of poor financial condition. RFP 4 14 -003 - Page 19 of 23 EXHIBIT 3 SUBCONTRACTOR'S INSURANCE Service Provider shall agree to cause each subcontractor employed by Service Provider to purchase and maintain insurance of the type specified, provided the Service Provider's insurance does not afford coverage on behalf of the subcontractor. CERTIFICATE OF INSURANCE Service Provider shall furnish the City with a certificate(s) of insurance, executed by a duly authorized representative of each insurer, showing compliance with the insurance requirements. The certificate must be from a company with an A.M. Best rating of "A -VII" or better and/or otherwise acceptable to the City. Certificates must be submitted using the ACORD form and all endorsements must be included with the submittal. The certificate(s) shall contain a provision that coverage under such policies shall not be cancelled or non - renewed until at least thirty (30) days prior written notice, or ten (10) days' notice for cancellation due to non - payment of premiums, is given the City of Bryan. 6. notice. immedia the term calendar day's written der shall cease work rily performed prior to B. If, through any cause, the Service Provider fails to fulfill its obligations under this Contract, or if the Service Provider violates any of the agreements of this Contract, the City has the right to terminate this Contract by giving the Service Provider five (5) calendar days written notice. The Service Provider will be compensated for the services satisfactorily performed before the termination date. C. No term or provision of this Contract shall be construed to relieve the Service Provider of liability to the City for damages sustained by the City because of any breach of contract by the Service Provider. The City may withhold payments to the Service Provider for the purpose of setoff until the exact amount of damages due the City from the Service Provider is determined and paid. RFP # 14 -003 - Page 20 of 23 EXHIBIT 3 7. Miscellaneous Terms A. This Contract has been made under and shall be governed by the laws of the State of Texas. The parties agree that performance and all matters related thereto shall be in Brazos County, Texas. B. Notices shall be mailed to the addresses designated herein or as may be designated in writing by the parties from time to time and shall be deemed received when sent postage prepaid U.S. Mail to the following addresses: The City of Bryan: Attn: Risk Management P.O. Box 1000 Bryan, Texas 77805 The Service Provider: C. No waiver by either party hereto of any term or condition of this deemed or construed to be a waiver of any other term or condition or subsequent waiv or condition. D. This Contract represents the entire and i Service Provider and supersedes all prior contracts, negc written or oral. This Contract may only be amended by parties. E. This Contract and Service Provider withot7 t the!vior by the may not be assigned by the F. The Service,"Provid& , its agents, employees, and subcontractors must comply with all applicable federal and state lads, the charter and ordinances of the City of Bryan, and with all applicable rules and regulations, promulgated by local, state, and national boards, bureaus, and agencies. The Service Provider must obtain all necessary permits and licenses required in completing the work and providing the services required by this Contract. G. Reimbursable or other miscellaneous expenses incurred by the Service Provider shall be included in the contract price; additional payment for such expenses will not be considered. H. The parties acknowledge that they have read, understood, and intend to be bound by the terms and conditions of this Contract. RFP # 14 -003 - Page 21 of 23 APPROVED AS TO FORM: Janis Hampton, City Attorney Date: CITY OF BRYAN: APPROVED FOR PROCESSING: Date: Jason Bienski, City Manager Date: ATTEST: Mary L. Stratta, City Secretary Date: (SERVI( EXHIBIT 3 SERVICE PROVIDJ STATE OF TEXAS § COUNTY OF § Date: Name: ACKNOWLEDGEMENT This instrument was acknowledged before me on the _ on behalf of day of , 2013, by Notary Public in and for the State of Texas RFP # 14 -003 - Page 22 of 23 EXHIBIT 3 SERVICE PROVIDER'S - Proposal to the City of Bryan RFP 4 14 -003 - Page 23 of 23 EXHIBIT 3 EXHIBIT 3 ATTACHMENT B (PART 01 THE AGREEMENT) Response to Solicitation 3801 -13 City of Bryan, Texas Ambulance Supplemental Payment Program MED3000, Inc. 3131 Newmark Dr. Suite 100 Miamisburg, OH 45342 Steve Culham; EMS Marketing Manager (937) 291 -2882 November 24, 2013 CITY OF BRYAN T$r Cowl Lijc, Texas SfYle:` t • • EXHIBIT 3 VA 1 • ! _1 A October 24, 2013 City of Bryan -- Purchasing Department Attn: Ms. Susan Chmelar, Buyer 1309 E. Martin Luther King St. Bryan, TX 77803 Dear Ms. Chmelar and Members of the City of Bryan Selection Committee: MED3000 is pleased to submit our proposal in response to your solicitation for Ambulance Supplemental Payment Program, RFP# 14 -003. Please accept our proposal. Our Fire /EMS client base of over 160 accounts generates over 700,000 annual EMS transport billables, making MED3000 one of the leading EMS revenue recovery companies in America. This proposal is a firm offer and will remain so for at least 180 days from its due date. MED3000 understands in full all requirements of your RFP, and our response specifically meets your requirements. We will comply with all provisions set forth in this response to the RFP. All persons, companies, and parties associated with this proposal are named in this proposal, and we make this offer without collusion with any other person or entity. MED3000, now part of McKesson, has over twenty years of EMS billing and medical billing experience. We specialize in EMS billing, municipality cost recovery, and medical revenue management. MED3000 possesses both the trained personnel and expertise required to improve all aspects of EMS billing and claims management for the City of Bryan. You can expect the highest level of service and excellent billing results from MED3000. We welcome the opportunity to provide you with additional information in an oral interview with our experienced team. Please contact me if you need further information or to schedule a time for oral presentations: 937 - 660 -7002 or genn _goodpaster @MED3000.com. I look forward to hearing from you. Respectfully submitted, Glenn Goodpaster Senior Vice - President MED3000 Now Part of McKesson Business Performance Services office: 937.660.7002 3131 NEWMARK DR. / MIAMISBURG, OH 45342 PHONE 937 -291 -7850 / FAX 937 - 291 -2971 / www.mckesson- med3000.com EXHIBIT 3 Table of Contents M S 0"L E S S 0 N 1 -12 13 14 -17 18 -34 35 -36 37 Cover Letter Tab A Qualifications and Experience Tab B Rate and Expenses Tab C Project Timeline Tab D Methodology Tab E References Tab F Certification, Acknowledgement, and Statement of Willingness Tab G Attachments • McKesson / MED3000 Organizational Chart • Project Qualifications • Resumes • Team Organizational Chart • Bryan Certification Page • Business Support Services Agreement M S 0"L E S S 0 N 1 -12 13 14 -17 18 -34 35 -36 37 EXHIBIT 3 MWESSON / ri mc�oo Comprehensive Revenue Recovery Solutions Response to Request for Proposal 14 -003 Ambulance Supplemental Payment Program City of Bryan TAB A: Qualifications and Experience I. Briefly Introduce Your Firm McKesson / MED3000 is excited about the opportunity to provide Ambulance Supplemental Payment Program Services to the City of Bryan, as detailed in Request for Proposal # 14 -003. At McKesson / MED3000, we offer Fire and EMS providers cost - effective solutions to maximize revenues through our array of technology and consulting services. We see the City of Bryan as a unique ambulance services provider which needs the experience we at McKesson / MED3000 have to ensure you optimize revenue and mitigate risks associated with the Texas Ambulance Supplemental Payment Program (ASPP). McKesson / MED3000 has put together a team that understands the great potential the ASPP brings to providers like the City of Bryan to generate an estimated $835,000 in additional annual revenue. However, with that potential comes complexities and risk the City of Bryan must address. Our team has put together the most experienced group to not only optimize revenue, but to design and implement conservative approaches to cost determinations and cost reporting to mitigate potential audit risks. With the ASPP program changes that took place in 2012 and 2013, it will be critical for the City of Bryan to work with a firm that has a solid understanding of the program along with the knowledge of the latest developments coming from the Texas Health and Human Services Commission (HHSC) and the Centers for Medicare and Medicaid Services (CMS). The McKesson I MED3000 Team has that understanding and knowledge. McKesson / MED3000 provides EMS revenue recovery services to over 160 EMS clients in 15 states, including Texas. Processing over 700,000 annual billables, and having experience with 10 Texas providers on ASPP services, McKesson / MED3000 possesses the expert personnel and EMS revenue recovery experience required to optimize revenue for you as part of the ASPP. The McKesson / MED3000 organization has an EMS division that provides an array of healthcare delivery and consulting services for America's EMS industry as depicted in the organizational chart located in TAB G. Attachments of this response. McKesson / MED3000 has 3 EMS offices located in the United States as well as 13 additional healthcare centers t city of Bryan October 24, 2013 McKesson / MED3000 Response to RFP ## 14 -003 EXHIBIT 3 MSKESSON / �maaa Comprehensive Revenue Recovery Solutions across America, including one in Plano. The MED3000 EMS division will be leading this effort with the City of Bryan, and Glenn Goodpaster will be the project director for the McKesson / MED3000 Team. Please see section 1'5. Identify the Project Manager and Each Individual Who Will Work as Part of this Engagement — The McKesson / MED3000 Team" for a project team organizational chart and description of the additional team members. 2. Specify Which Location You Propose to Service Our Account McKesson / MED3000 will be servicing this account from our Miamisburg, Ohio, and our Project Manager's (Kevin Coyle of Revenue Optimization Solutions, LLC) Round Rock, Texas, offices. Please see section "5. Identify the Project Manager and Each Individual Who Will Work as Part of this Engagement — The McKesson / MED3000 Team" for details on the structure of the McKesson / MED3000 Team. 3. Specify Current Work Load The McKesson / MED3000 Team has dedicated staff to work on this ASPP project for the City of Bryan. Our team has the experience the City of Bryan needs to become approved, do the modeling, and prepare the cost reports as part of the ASPP, and there will not be any issues with existing workloads that would delay any part of this project. Please see section "5. Identify the Project Manager and Each Individual Who Will Work as Part of this Engagement — The McKesson / MED3000 Team" for additional information on the McKesson / MED3000 Team. You will see our team has the experts you need to get you up and running as quickly as possible. Our team has the flexibility to work around your schedule for both in- person and conference call meetings. In addition, with the proximity of our project manager in Round Rock, Texas, we can be on -site in short notice if there is ever a need for an ad -hoc meeting with city staff or council members. As we detail in section "5. Identify the Project Manager and Each Individual Who Will Work as Part of this Engagement — The McKesson / MED3000 Team" our project team consists of five staff that will be working on this project throughout this engagement. McKesson / MED3000 is committed to providing the City of Bryan with experienced staff that has the array of specialties needed to optimize revenue and mitigate the audit risk associated with the ASPP. The McKesson / MED3000 Team consists of experienced staff with backgrounds in all aspects of the ASPP including provider approvals and EMS credentialing, cost modeling and fire department finances, ambulance service delivery, and cost reporting. The McKesson / MED3000 Team will perform the majority of the work for this engagement from our Project Manager's location in Round Rock. City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -043 EXHIBIT 3 M5KESS0N / nn �3000 Comprehensive Revenue Recovery Solutions 4. Describe the Experience of the Firm in the Last Thirty -Six Month in Performing- Services in Similar Size and Scope The McKesson / MED3000 Team brings together unsurpassed experience in the ASPP services the City of Bryan needs to implement this project in a manner that that will optimize revenue and mitigate the audit risks associated with the program. As our most recent clients to sign -on for our ASPP services will state, the Mesquite Fire Department and the Lancaster Fire Department were impressed with the ASPP service offerings and experience that the McKesson / MED3000 Team brings to the table. Currently, McKesson / MED3000 provides revenue cycle management services to over 160 EMS clients. While not all of them are using our ASPP service offering, the knowledge of working within the ambulance services community is an invaluable value -add for the City of Bryan as you look to implement a compliant program that maximizes revenue and mitigates audit risk. The McKesson / MED3000 Team client portfolio ranges in size from large communities generating in excess of 50,000 annual transports, to small cities and county departments that transport fewer than 1,000 patients on an annual basis. We are familiar with all kinds of providers and for the Bryan Fire Department that transports over 5,400 patients annually, the McKesson / MED3000 Team is very familiar with the services, costing, and challenges facing a department of your size. No matter the size or structure of the client, the McKesson / MED3000 Team provides consistent and comprehensive professional services to each and every client. In addition, Kevin Coyle, the project manager for the McKesson / MED3000 Team has unparalleled skills and expertise to provide the ASPP provider approval, cost allocation modeling, and cost reporting services Bryan needs to optimize revenue and build in safeguards to mitigate audit risks for this engagement. He brings to the McKesson / MED3000 Team significant experience with provider approvals, developing cost allocation models, preparing cost reports, and providing audit support for ambulance services providers in Texas and around the country. Below is a listing of the EMS /ambulance services providers for which the McKesson / MED3000 Team has experience in Texas and that our Project Manager has in Texas over the last thirty -six months. • Houston Fire Department (2010 — 2013) • Dallas Fire - Rescue Department (2011 — 2013) • San Antonio Fire Department (2010 — 2013) • Montgomery County Hospital District (2008 — 2013) • Galveston County Health District (2009 — 2013) • Area Metropolitan Ambulance Authority (MedStar- Tarrant County, TX) (2009 — 2013) • Austin - Travis County Emergency Medical Services Department (2005 — 2012) • Mesquite Fire Department (2013) • Lancaster Fire Department (2013) • New Braunfels Fire Department (2013) 3 1 city of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSON / iv r%= a0 0 Comprehensive Revenue Recovery Solutions In addition, below are the providers outside of Texas for which the McKesson / MED3000 Team's Project Manager Kevin Coyle has experience providing similar services to those required of the City of Bryan. • District of Columbia, Fire and Emergency Medical Services Department (2012 — 2013) • Boston Public Health Commission — Boston EMS (2010 — 2013) • City of Oceanside (CA) Fire Department (2011 — 2012) • Texas Health and Human Services Commission (Medicaid Agency) (2005 — 2013) • Massachusetts Executive Office of Health and Human Services (Medicaid Agency) (2000 —2013) • Richmond (VA) Ambulance Authority (2006 - 2009) Furthermore, the McKesson / MED3000 Team has deep subject matter expertise in the Medicaid arena and team members have worked closely with several State Medicaid Agencies to design, gain approval for, and implement Medicaid supplemental payment programs. Kevin Coyle, the project manager for the McKesson / MED3000 Team has worked closely with the Texas Health and Human Services Commission (HHSC) since 2005 on the design, federal approval for, implementation, and the maintenance of the Texas ASPP. These relationships forged over time allow the McKesson / MED3000 Team to know the contacts that will help resolve issues, or if there are questions, whom to contact to get the answer. This kind of insight is beneficial as Bryan implements the ASPP. There are several other State Medicaid Agencies for which the McKesson / MED3000 Team's Project Manager Kevin Coyle has experience over the years providing similar Medicaid supplemental payment program services, as identified below. While each state has a slightly different program from the Texas ASPP, the same overall approach, methodology, approval process, and implementation is in use, and the experiences gained from this work are invaluable to the services the City of Bryan needs to optimize revenue and mitigate the audit risks associated with the ASPP. • State of Texas Health and Human Services Commission (2003 — 2013) • Commonwealth of Massachusetts Executive Office of Health and Human Services (2001 —2013) • State of North Carolina Division of Public Health (2000 — 2013) • State of Louisiana Department of Health and Hospitals (2003 - 2011) • District of Columbia, Department of Health Care Finance (Medicaid Agency) (2012 — 2013) • State of California, Department of Health Care Services (Medicaid Agency) (2011 — 2012) • State of Oklahoma, Oklahoma Health Care Authority (Medicaid Agency) (2013) 4 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14003 EXHIBIT 3 M5KESS0N/ E%3ooca Comprehensive Revenue Recovery Solutions Please see TAB G. Attachments for detailed Project Qualifications on the local governmental ambulance services providers identified above; however, the McKesson / MED3000 Team can provide additional details on any of the above listed clients, upon request. 5. Identify the Project Manager and Each Individual Who Will Work as Part of this Enuanement - The McKesson / MED3000 Team McKesson / MED3000 has assembled a team to take on the administrative burden, provide the subject matter expertise, and ensure compliance with state and federal regulatory requirements related to the ASPP. The McKesson / MED3000 Team understands the great potential the ASPP brings to the City of Bryan and how critical it will be for Bryan to work with a firm that has a solid understanding of the ASPP. McKesson / MED3000 is offering Bryan our unsurpassed experience with the ASPP through a unique service offering that we know will exceed your expectations to optimize revenue and mitigate the audit risks associated with the program. McKesson / MED3000 is excited about this opportunity to provide these services to Bryan and we know you will be as satisfied with the McKesson / MED3000 ASPP services as the Mesquite and Lancaster Fire Departments, our most recent clients where we have begun providing very similar ASPP services. Below are the team members that will be working on this engagement. Glenn Goodpaster The McKesson / MED3000 Team is being led by Glenn Goodpaster, CPA. Mr. Goodpaster is the Senior Vice President of EMS at McKesson and is responsible for the overall development of business strategies with EMS operations for McKesson / MED3000 EMS. In addition to his duties with McKesson / MED3000, Glenn also serves on the Board of Directors for a surgery center located in Cincinnati, Ohio. Prior to joining McKesson / MED3000 EMS, Glenn was President of Professional Management Services, a medical practice management firm. Glenn has a BSBA from the University of Cincinnati and received his CPA in 1985. Mr. Goodpaster will be taking on the Project Director role for this engagement with the City of Bryan. Kevin Coyle McKesson / MED3000 has also brought to the team Kevin Coyle from Revenue Optimization Solutions, LLC (RevOPS). Mr. Coyle joined the McKesson / MED3000 Team for this scope of work with the City of Bryan and he will serve as the Project Manager and will be working on all aspects of the project. Mr. Coyle is the founder and President of RevOPS in Round Rock, Texas, and, prior to starting his firm in April of 2013, he worked with Public Consulting Group (PCG). Kevin has fifteen years of experience assisting state and local governments improve financial performance, most notably in the areas of revenue enhancement, cost allocation, and S 1 city of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSON / n � :5000 Comprehensive Revenue Recovery Solutions cost reporting. Mr. Coyle is one of the state's foremost experts on the ASPP and his experience includes being the lead consultant for the design, approval, and implementation of the ASPP at the statewide level in Texas. Kevin was instrumental in preparing the necessary information and providing the Medicaid subject matter expertise that paved the way for the successful approval and implementation of the ASPP for all providers in Texas. Mr. Coyle has worked closely with large and small ambulance services providers across Texas, and with the Texas Health and Human Services Commission (HHSC) on this program since it all began back in 2005. Over the past thirteen years, Mr. Coyle has been working with emergency medical /ambulance services, hospitals, and public health providers in Texas, California, the District of Columbia, North Carolina, Louisiana, and Massachusetts to enhance financial strength and improve program performance. Since 2004, Mr. Coyle's focus has been on developing several supplemental payment/UPL initiatives for emergency medical /ambulance services providers, fire departments, and public health agencies in Texas, the District of Columbia, North Carolina, California, and Massachusetts. In 2005, Mr. Coyle was the lead consultant working with the Austin - Travis County EMS Department and the Texas Health and Human Services Commission (HHSC) to design, gain approval for, and implement the Texas ASPP. Since 2005, Mr. Coyle has worked with ten Texas ambulance services providers and HHSC to get the providers approved, conduct cost allocation modeling, and prepare cost reports for the ASPP, as well as working with state Medicaid Agencies and providers in Massachusetts and California to implement similar programs. Mr. Coyle also has extensive experience working with cost allocation models and cost allocation plans. As part of his experience with ambulance services providers and public health agencies in Texas, the District of Columbia, Massachusetts, and North Carolina, he has developed numerous cost allocation plans and Allocation Reports for use in identifying appropriate medical services costs related to ambulance services providers. Mr. Coyle has also developed federal Medicaid compliant Full and Indirect Cost Allocation Plans for Harris County Texas, and the Louisiana Department of Health and Hospitals (the State Medicaid Agency). Mr. Coyle has a Masters Degree in Public Policy from Duke University's Sanford School of Public Policy, and maintains the necessary HHSC Cost Reporting certification to prepare and submit ASPP cost reports. Mr. Coyle also has the Medicaid 2 CFR 225 (OMB A -87) certification to prepare Medicaid compliant cost allocation plans and models, and has a NASBA/GASB compliant certification in Government Accounting and Reporting. Mr. Coyle is in the process of receiving certification in Government Auditing Standards. Kern Estep Ms. Estep will be on the Provider Approval Team working with Mr. Coyle to prepare the necessary documentation so the City of Bryan can be approved for the ASPP as quickly as possible. 6 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSON / M r L.�3000 Comprehensive Revenue Recovery Solutions Ms. Estep is responsible for the credentialing department and joined MED3000 as a Credentialing Specialist in August of 2010. Ms. Estep was promoted to Credentialing Supervisor in June of 2012. Prior to joining MED3000, Ms. Estep worked as a Credentialing Coordinator for an EDS /Physician and EMS /Fire Billing Company. Overall, she has twelve years of experience in the medical profession and is an invaluable resource when it comes to providing and packaging the information necessary for the ASPP Provider Approval phase of the project. Jason Bonham Mr. Bonham will be on the Cost Modeling and Cost Reporting Teams working with Mr. Coyle to analyze cost and billing information and to prepare the necessary deliverables associated with the Cost Modeling and Cost Reporting phases of the project. Mr. Bonham is McKesson / MED3000's Southwest Regional Manager overseeing the clients in Texas. Mr. Bonham began working in EMS in 1991 when he volunteered as a Firefighter in San Leon, Texas. He served as an officer and became the first person to graduate from a formal firefighting academy. In 1997 Mr. Bonham moved to Austin and spent nearly ten years with the Austin Travis County Emergency Medical Services Department and fulfilled the roll of Field Training Officer. Mr. Bonham's experience as a paramedic, firefighter, and head of McKesson / MED3000's Southwest office will allow our team to efficiently identify allowable costs for cost modeling and cost reporting purposes. Mr. Bonham will also be able to bring the service perspective to the analysis to help identify what costs are related to medical service delivery. Carl Reedy Mr. Reedy will be on the Cost Modeling and Cost Reporting Teams working with Mr. Coyle to analyze cost and service delivery information and to prepare the necessary deliverables associated with the Cost Modeling and Cost Reporting phases of the project. Mr. Reedy, a Regional Manager, joined MED3000 team in 2005 having spent the previous three years as a division president for an Ohio -based billing company. Prior to Mr. Reedy's billing industry tenure, he spent over 30 years in the Ohio fire service, most of those with the City of Huber Heights, Ohio. Mr. Reedy began his career in Huber Heights in 1977 and rose through the ranks until he was named Chief in 1998. During his fire service career, Mr. Reedy was an innovator in regional Fire /EMS response and was heavily involved in EMS having maintained State of Ohio paramedic and ACLS certifications. He also is a recognized fire service consultant in Ohio and, as Fire Chief, was a pioneer in establishing EMS billing in West Central Ohio. Mr. Reedy's experience as a fire chief will help the McKesson / MED3000 Team analyze the costs and service level information for inclusion in the Cost Modeling and Cost Reporting phases of the project. % 1City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 ME-KESSON / E Dacioo Comprehensive Revenue Recovery Solutions As identified in the RFP, please see TAB G. Attachments for the Resume of the project manager. The McKesson / MED3000 Team can provide the resumes for any of the other team members identified above, upon request. 6. Describe the Organization of the Proposed Team We have included our Team Organizational Chart in TAB G. Attachments. As you study our Organizational Chart, you will recognize that the McKesson / MED3000 Team is structured in a way to provide Bryan with the experts you need for the ASPP, while giving you a responsive team structure to provide exceptional customer service, and the ability to address any issues that may arise. Please see section "5. Identify the Project Manager and Each Individual Who Will Work as Part of this Engagement - The McKesson / MED3000 Team" for more details on the field of expertise of each team member. Mr. Goodpaster will be taking on the Project Director role for this engagement with the City of Bryan. Mr. Goodpaster will be overseeing all aspects of the project and staff, and he will be using his skills in project management and accounting to make sure deliverables are on time, comply with state, federal and accounting rules and regulations, and that the project and deliverables exceed expectations. Over the course of an average fiscal year, Mr. Goodpaster will be spending an estimated 100 hours on this engagement. Mr. Coyle will serve as the Project Manager and Team Lead for the ASPP services with the City of Bryan. Mr. Coyle will be managing the daily operations of the project to make sure the analysis and development of all deliverables meets the high expectations of McKesson / MED3000 and exceeds the expectations of the City of Bryan. Mr. Coyle will also be using his subject matter expertise in provider approvals, cost allocation modeling, and cost reporting to lead the McKesson / MED3000 Team's Provider Approval, Cost Allocation Modeling, Cost Reporting, and audit support phases of this project while working with McKesson staff on the development of deliverables. Over the course of an average fiscal year, Kevin will be spending an estimated 250 hours on this engagement. Mr. Coyle's complete resume can be found in TAB G. Attachments. Ms. Estep will be on the Provider Approval Team working with Mr. Coyle to prepare the necessary documentation so Bryan can be approved for the ASPP as quickly as possible. Ms. Estep's experience with ambulance provider credentialing and Medicare /Medicaid requirements will be invaluable to the McKesson / MED3000 Team to make sure Bryan complies with state and federal requirements. Over the course of an average fiscal year, Ms Estep will be spending an estimated 50 hours on this engagement. 8 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MWESSON E'a3coc>c> Comprehensive Revenue Recovery Solutions Mr. Bonham will be on the Cost Modeling and Cost Reporting Teams working with Mr. Coyle to analyze cost and billing information and to prepare the necessary deliverables associated with the Cost Modeling and Cost Reporting phases of the project. Jason's years of experience as a paramedic and with McKesson / MED3000 in revenue cycle management will help our team develop the conservative models and prepare the necessary cost reports to optimize revenue and mitigate audit risk for the City of Bryan. Over the course of an average fiscal year, Mr. Bonham will be spending an estimated 60 hours on this project. Mr. Reedy will be on the Cost Modeling and Cost Reporting Teams working with Mr. Coyle to analyze cost and service delivery information and to prepare the necessary deliverables associated with the Cost Modeling and Cost Reporting phases of the project. Carl's background and expertise as a fire chief will help increase the knowledge and understanding of the McKesson / MED3000 Team when it comes to cost allocations and reporting of allowable costs and charges in an all- hazards type fire /ambulance model as employed by the City of Bryan. Over the course of an average fiscal year, Mr. Reedy will be spending an estimated 60 hours on this project. 7. Describe What Municipal Staff Support You Anticipate for the Project The McKesson / MED3000 Team will shoulder much of the administrative burden associated with the Provider Approval, and ongoing Cost Allocation Modeling, and Cost Reporting processes of the ASPP project, as detailed in TAB D. Methodology. However, the nature of the ASPP project and the information required to optimize revenues and mitigate audit risk will require some non - dedicated support from City of Bryan staff. The McKesson / MED3000 Team structures our ASPP services so there will be no need to hire any additional project management, or other staff to manage this project. Our experience tells us that City staff will be able to incorporate the ASPP requirements into your regular schedules with only minor inconveniences for meetings, data gathering, and deliverable reviews. The McKesson / MED3000 Team sees City staff involvement and support in the following areas. Proiect Management The McKesson / MED3000 Team believes it is important for the City of Bryan to understand the different aspects of the ASPP and what is going on during each step of the project. Therefore, the McKesson / MED3000 Team will conduct regular status meetings with City of Bryan project management team to keep everyone informed of the status of the project, deliverable timelines, and any issues that may arise. These structured status meetings will take place at convenient times for City staff, and the McKesson / MED3000 Team will direct the meetings. Participation from City project management staff will be encouraged and the McKesson / MED3000 Team recommends having these project management meetings on a monthly basis, with interim status meetings as requested by the City of Bryan to meet the needs of other City stakeholders such as the City Manager, City Council, etc. The McKesson / 9 Uty of Bryan -_ -- October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 M5KESS0N / NI b3O►+C 0 Comprehensive Revenue Recovery Solutions MED3000 Team will work with the City of Bryan project management team to schedule these meetings. Data Gathering The McKesson / MED3000 Team will also need assistance from City staff to obtain the data items necessary for the Provider Approval, Cost Allocation Modeling, and Cost Reporting phases of the project. The McKesson / MED3000 Team anticipates working primarily with the Fire Department to get the information that we need; however, we will also need to gather information from the Fiscal Services Department to obtain expenditure and other financial information to complete the Cost Allocation Modeling and Cost Reporting phases of the project. Some of the information that we will be gathering during the course of the project includes, but is not limited to: • City Organizational Information • City /Departmental Financial Information - Revenues /Expenditures • Staffing Information • City -wide Indirect Costs • Payments and Revenue Details • Computer Aided Dispatch Reports The McKesson / MED3000 Team typically sees the data gathering as being minimally time consuming for City staff. There may be the occasion that there is some back and forth necessary for data explanation, but the McKesson / MED3000 Team is seasoned enough to understand data extracts from multiple sources and we can utilize what is typically produced from your system to minimize the need to create special reports or extracts for the purposes of this project. Please see TAB D. Methodology for more details on the specific data items that the McKesson / MED3000 Team will be using during this project. Deliverable Reviews Once the McKesson / MED3000 Team obtains the data from City staff, our team will analyze that information and prepare the necessary drafts and deliverables for the ASPP. However, before sending any deliverables to the State for approval, the McKesson / MED3000 Team will review those items with Bryan's project management team and make changes, as necessary. It will be important for the City of Bryan project management team to take part in the review of all deliverables before they are sent to the State so you understand how all the pieces of the project fit together and to let the McKesson / MED3000 Team know if our analysis or findings do not meet your expectations. The McKesson / MED3000 Team makes sure that you are fully aware of all aspects of this project, and we are committed to make sure that nothing will go to the State until it meets your expectations and receives your signoff. 1 0 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 M5KESS0N / Eb3000 Comprehensive Revenue Recovery Solutions The review of deliverables, models, and cost reports typically consumes the most time from City project management staff; however, over the course of a given fiscal year, the time commitment is minimal. There will be times where there may be more of a time commitment such as the review the Provider Information Report for the Provider Approval process, Cost Allocation Model, or Cost Report, but the McKesson / MED3000 Team can structure that in a way to fit your schedules, or be incorporated into already scheduled status meetings to help minimize the time commitment. 8. Identify the Number and Type of Ambulance Supplemental Payment Proarams Presently Being Conducted by the Firm Members of the McKesson / MED3000 Team are currently providing ASPP services to three clients in Texas. All three of those clients are fire departments that have a similar structure to the Bryan Fire Department. In addition, the McKesson / MED3000 Team is proposing our ASPP services to an additional seven ambulance services providers / fire departments, and we anticipate many of them coming on board in the very near future. 9. Address any Performance Related Litigation MED3000 is a wholly owned subsidiary of McKesson Corporation. McKesson Corporation is a publicly traded company. Information about McKesson Corporation, including information about material litigation or regulatory investigations, is available in the annual and quarterly reports that are filed with the Securities and Exchange Commission. The annual and quarterly reports are available at www.mckesson.com under the Investors link. There are no past or present performance related litigation matters related to our ASPP services. 10. Identify if Your Firm has had any Contracts Terminated MED3000 is a wholly owned subsidiary of McKesson Corporation. McKesson Corporation is a publicly traded company. Information about McKesson Corporation, including information about material litigation or regulatory investigations, is available in the annual and quarterly reports that are filed with the Securities and Exchange Commission. The annual and quarterly reports are available at www.mckesson.com under the Investors link. No contracts have been terminated related to our ASPP services. 11. Identify Adverse Actions MED3000 is a wholly owned subsidiary of McKesson Corporation. McKesson Corporation is a publicly traded company. Information about McKesson Corporation, including information about 1 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSON / M i�3000 Comprehensive Revenue Recovery Solutions material litigation or regulatory investigations, is available in the annual and quarterly reports that are filed with the Securities and Exchange Commission. The annual and quarterly reports are available at www.mckesson.com under the Investors link. No adverse actions have ever been identified or acted upon related to our ASPP services. 12 Ulty at tsryan October 24, 2013 McKesson / MED3000 Response to RPP # 14 -003 EXHIBIT 3 ME-KESSON / X33000 Comprehensive Revenue Recovery Solutions TAB B: Rate and Expenses 1. Provide a Proposed Fee Schedule For the City of Bryan, the McKesson / MED3000 is proposing two options for pricing for services detailed in this Response: Option 1 The McKesson / MED3000 Team will provide all- inclusive services as outlined in this response for a ten - thousand dollar ($10,000) one -time payment due at the time of Cost Allocation Model delivery and review by HHSC, plus five percent (5 %) of the revenue received /realize by the City of Bryan from the ASPP, for the duration of any Agreement between the City of Bryan and McKesson / MED3000. Option 2 TheMcKesson / MED3000 Team will provide all- inclusive services as outlined in this response, for eight percent (8 %) of the revenue received /realized by the City of Bryan from the ASPP for the duration of any Agreement between the City of Bryan and McKesson / MED3000. In both options, the percentage rates are applied to the revenues that are derived from the Texas Ambulance Supplemental Payment Program received by the City of Bryan as a result of the Cost Reports submitted to the State by the McKesson / MED3000 Team, on behalf of the City. Unless otherwise defined, we include no additional start -up or continuing charges /costs. 2. Indicate Your Specific Expectations Concerning Reimbursement for Expenses The McKesson / MED3000 Team will not be charging for any additional or related expenses. 3. - 5. Under TAB B in the RFP (p 14 of 231 The McKesson / MED3000 Team agrees to the stipulations detailed under items 3. — 5. of TAB B on page 14 of the RFP. The McKesson / MED3000 Team will NOT be charging for any additional or related expenses. 13 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSON / M �►moaC> Comprehensive Revenue Recovery Solutions TAB C: Project Timeline On the following pages, the McKesson / MED3000 Team includes a detailed timeline that includes each decision point and milestone for the ASPP project, along with the chronological timeline of each task and how long it will take to complete each task. Please note that in an effort to consolidate the number of pages, the project timeline references only the key chronological dates along the top, but that will provide you with the information you need to determine the length of time for task completion. For example, the Data Gathering as part of the Project Kickoff begins on December 9 and ends on December 20, or nine business days after the Kickoff meeting. As specified in the RFP, the timeline begins immediately after the contract award by the City of Bryan on December 6, 2013. The McKesson / MED3000 Team can alter the timeline easily to accommodate any scheduling changes by the City. The McKesson / MED3000 is basing the timeline on eight years of experience providing ASPP services to ambulance providers in Texas. Our team is confident that we will be able to meet all the deliverable and milestone deadlines presented in the accompanying timeline. Please see TAB D. Methodology for a detailed description of each phase and task identified in the Project Timeline. 14 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 McKesson / MED3000 Ambulance Supplemental Payment Program Services Project Work plan for the City of Bryan T- 1. Provider Approval .. . , I -------------------- X I //1, .Phe ./_ _ _ Have Kick Data gathering 11M •��� �� a3ikc------------------- Prepare draft "Provider Informatic, Review Vrovider Information Re Revise "Provider I nformation Bel SubWt "Provider information R Answer rsa�er^. Obtain Bryan Rre Department Approval 2. Cost Allocation Modeling Develop allocation stics for model Review all Infornnartion with Bryan Rre Department and City of Bryan (Deliverable) •._ I Incorporate Items and methodologies nto draft model �������� ��������� Present-�MB!Yan Rre Department and Orty of Bryan (Deliverable) EXHIBIT 3 McKesson / MED30W Ambulance Supplemental Payment Program Services EXHIBIT 3 McKesson / MED3000 Ambulance Supplemental Payment Program Services Project Work Plan for the City of Bryan EXHIBIT 3 WKESSON Comprehensive Revenue Recovery Solutions / • To optimize revenue and mitigate audit risk associated with the ASPP, the City of Bryan needs the skills and experience the McKesson / MED3000 Team brings to this engagement from working with fire departments in Texas on ASPP implementations, and the knowledge and experience of working with Medicaid agencies at the state and federal levels. Our team understands that the ASPP is rightfully complex to implement correctly, and it will not be as easy as some may imply. The McKesson / MED3000 Team will undertake the following work steps /scope of work so Bryan can realize the revenue associated with the ASPP as quickly as possible. The McKesson / MED3000 Team will provide the experience you need to optimize revenue, mitigate the risk of audit findings, and address some of the unique challenges that you will face during project implementation. Each phase and task identified below corresponds to the items detailed in TAB C. Project Timeline. The information below will help provide additional information on each phase of the project that the McKesson I MED3000 Team will undertake with the City of Bryan. The first part of the ASPP project will include kicking off the project and developing the documentation necessary for the City of Bryan / Bryan Fire Department to become an approved provider in the ASPP. The speed by which the McKesson / MED3000 Team can get Bryan approved in the program will allow Bryan to account for the maximum number of months in the first cost reporting period, thus optimizing revenue under the program. The following tasks will accomplish that goal. A. Proiect Kickoff The McKesson / MED3000 Team will begin the ASPP work with a project kickoff that will allow our team to talk with the City of Bryan project management team and discuss expectations and approaches for the project. The kickoff will take place immediately after contract signing to review timing issues, communications protocols, potential obstacles and solutions, and the data items necessary for the ASPP. The McKesson / MED3000 Team will review a data request with the City during the kickoff that will include, in part, the following items: •Financials - Revenues /Expenditures •Staffing Information *City-wide Indirect Costs Ty of Bryan ober 24, 2013 Kesson / MED3000 • Charges and Charge Master *Payments and Revenue Details • Statistical Information Response to RFP # 14 -003 EXHIBIT 3 MSKESSON / r= �3oOp Comprehensive Revenue Recovery solutions The data gathered during this part of the project will allow our team to finalize the "Provider Information Report" for the Provider Approval phase of the project, and begin the Cost Allocation Modeling phase of the project. B. Prepare Documentation and Gain Approval The next step will include preparing the documentation necessary for the City of Bryan / Bryan Fire Department to become an approved provider as part of the Texas ASPP. This will include the McKesson / MED3000 Team preparing an organizational analysis, fiscal impact analysis, and preparation of the "Provider Information Report" for submittal to HHSC. The McKesson / MED3000 Team will analyze the data that we are able to obtain from public sources as well as the information from the data gathering that we discussed during the kickoff. Our team will package this information into a "Provider Information Report" and will provide a draft to the City of Bryan for review within 2 -3 weeks of project start. After reviewing this document with the City of Bryan, the McKesson / MED3000 Team will make changes and submit the report to HHSC. During HHSC's review of the Provider Information Report, the McKesson / MED3000 Team will provide the subject matter expertise to answer questions from HHSC and help expedite the approval. We will take the lead in drafting all responses to HHSC and will present those drafts to the City of Bryan for review before submitting them to HHSC on behalf of the City. The McKesson / MED3000 Team will shoulder the administrative burden and act as the go- between during the approval process with HHSC. Provider Information Report The Provider Information Report will be a compilation of information that will give HHSC a good understanding of the City of Bryan, and how the Bryan Fire Department operates. The Provider Information Report will include organizational, financial, and service delivery information, and will contain other characteristics of the Bryan Fire Department including, service area, station locations, kinds of apparatus, and an overall description of the credentialing and deployment of personnel. The report will also contain a fiscal impact prepared by the McKesson / MED3000 Team that will show the revenue potential to Bryan, and the categories of costs that will be used in accordance with 2 CFR 225 and 1 TAC 355.101 -111. The McKesson / MED3000 Team will make sure the Provider Information Report addresses the items identified in the Texas Administrative Code (1 TAC §355.8600(c)(2)(A)) the meet the minimum requirements for provider approval in the Texas ASPP: overview of the governmental agency; complete organizational chart of the governmental agency; organizational chart of provider within the governmental agency; city of uryan October 24, 2013 McKesson / MED3000 Response to RFP # 14• -003 EXHIBIT 3 ME-KESSON / M E ".�:5<>C!O Comprehensive Revenue Recovery Solutions (iv.) identification of the specific geographic service area covered by the provider; (v.)copies of all job descriptions for staff types or job categories of staff who work for the ambulance services provider and an estimated percentage of time spent working for the provider and for other departments of the governmental agency; (vi.) primary contact person for the governmental agency that can respond to questions about the ambulance services provider; and, (vii.) letter describing the voluntary nature of the City's participation in the program. All of this will culminate in a Provider Information Report and the approval of the City of Bryan / Bryan Fire Department to participate in the ASPP. It is important to note that the Provider Approval process only happens one time. This will not be a recurring requirement for the City of Bryan. Value Added Services — Retroactive Opportuni As part of the Provider Approval phase of the project, the McKesson / MED3000 Team will explore the possibility of the City of Bryan being eligible for retroactive payments under the ASPP. The ASPP was derived as a prospective opportunity for ambulance services providers, such that you would be eligible to account for costs, charges, and statistics from the date of approval going forward. However, there has been precedent set whereby a provider was able to go back over a year prior to the approval date, and account for costs, charges, and statistics. There is some state language related to the current ambulance payment rule (1 TAC 355.8600), and with the current Medicaid 1115 Waiver that may open the door for Bryan to be eligible for a retroactive opportunity dating back to July 2012, or before. The McKesson / MED3000 Team is very familiar with the retroactive opportunity and we will review this with the City of Bryan and then pursue this with HHSC, if appropriate. This additional opportunity has moderate potential for being successful (estimating it at less than 50 %), but the McKesson / MED3000 Team will vet this fully with the City of Bryan and work together to determine the appropriate course of action. Whether or not Bryan decides to pursue this opportunity, it will not affect the time frame of this work step. Time Frames for Tasks Within Provider Approval Phase of Proiect The McKesson / MED3000 Team has built its project work plan based on a December 9, 2013, kickoff meeting; however, that date can be changed to fit the City's schedule. The data analysis used in the development of the Provider Information Report begins on December 10, 2013, with the data gathering related to this phase of the project finishing on December 20, 2013. 20 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSON / ER mc>00 Comprehensive Revenue Recovery Solutions The McKesson / MED3000 Team will begin work on the Provider Information Report immediately after the project kickoff and it culminates with a draft report for the City's review by December 27, 2013. Taking into account the potential for vacations at the end of December, the McKesson / MED3000 Team will be able to submit the Provider Information Report to HHSC by December 31, 2013. From there, we will answer any questions from HHSC and we estimate that we will have the approval from HHSC by January 17, 2014. Please see TAB C. Project Timeline for more dates related to this phase of the project. Staff Assigned: The McKesson / MED3000 Team members that will be participating in the Provider Approval phase of the project include Glenn Goodpaster, Kevin Coyle, Kerr! Estep, and Jason Bonham. Progress Reports: The McKesson / MED3000 Team will work with the City of Bryan to establish regular status meeting dates /times during the kickoff meeting that will serve the entire ASPP project. The McKesson / MED3000 Team recommends that regular status meetings take place at least monthly. That would mean the McKesson / MED3000 and City of Bryan teams would meet on or about January 15, 2013 for the first status meeting. All of the McKesson / MED3000 status meetings will include a status report in MSPowerPoint format that will detail the progress of each Phase and Task within the Project Timeline, as well as identify any issues that may arise during the course of the project that may delay or alter the timeline. In addition, the McKesson / MED3000 Team will want to meet specifically with Bryan to review the draft Provider Information Report on or about December 27. This can be scheduled as a conference call to accommodate vacation schedules, if that is appropriate. The McKesson / MED3000 Team will also be able to work with the City of Bryan throughout this, and other phases of the project to present updates to the City Manager and /or City Council, or other interested parties to keep them informed on the progress of this initiative, as necessary. Duties and Responsibilities of the City of Bryan: During the Provider Approval phase of the project, the McKesson / MED3000 Team will expect the City of Bryan to attend the kickoff meeting and to gather the data items that our team cannot obtain through publically available sources. The City of Bryan will also be expected to attend the meetings either in person or via conference call during this phase of the project plan. The City of Bryan will need to review the draft and final Provider Information Report and provide feedback to the McKesson / MED3000 Team related to the report's content. Finally, the 21 arty of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSON/M E 3C>o > Comprehensive Revenue Recovery Solutions McKesson / MED3000 Team will need to have the City of Bryan review our responses to any questions HHSC may have related to the approval process before we submit them to the State. Arguably, the most important aspect of the ASPP is the Cost Allocation Modeling phase of the project. Because the ASPP falls under federal Medicaid rules and regulations, there will be additional scrutiny from state and federal agencies. This part of the project is where you need seasoned professionals in the areas of Medicaid cost determination and cost allocation to navigate the complex worlds of state and federal Medicaid rules and regulations. Without a firm that has the Medicaid, and ASPP modeling background, the City of Bryan will undoubtedly set itself up for sub - optimal revenue generation, or worse — an audit finding, payback, and /or provider number revocation from CMS. This phase of the project is where the McKesson / MED3000 Team's expertise will be on full display to develop the allocation models necessary to optimize revenue under the ASPP. Given the state's cost -to- charge limitations for the ASPP cost report, it will be important for Bryan to have a vendor that understands the allowable expenditures, charges, and revenues under federal Medicaid regulations and state TAC rules. It will be imperative to incorporate multiple allowable allocation methodologies to optimize the amount of medical - related and subsequently Medicaid /Uninsured - related costs /charges across all cost centers for the City. It is also during the modeling that the McKesson / MED3000 Team will incorporate audit risk mitigation strategies to make sure Bryan is in compliance with federal and state rules, while optimizing revenue. This phase will also be the time to establish the annual processes needed to generate the information for use in cost reporting. The McKesson / MED3000 Team has the experience to know how to build those models that incorporate both revenue optimization and risk mitigation strategies. The City of Bryan should not buy into any discussions about how the ASPP is an "easy" project to implement because the eight years of experience on our project team tells us otherwise. The ASPP is part of a $15 billion Medicaid appropriation to Texas and, because of that and the complexities associated with the cost determinations and allocations, state and federal auditors are going to be looking very closely at this program. It will pay huge dividends to have the unsurpassed expertise of the McKesson / MED3000 Team to make sure cost determinations are appropriate according to state and federal regulations, and that allocation methods will meet state and federal audit scrutiny. Bryan will also want to go with a firm that has a project manager with at least a background and certification in the development of 2 CFR 225 (OMB Circular A- 87) compliant cost allocation plans, and in determining Medicaid - eligible expenditures as part of Medicaid cost allocation initiatives. The McKesson / MED3000 Team has that experience and certification dating back twelve years and we are prepared to undertake the following steps during the cost allocation modeling phase of the project. 22 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSOIN / E i3mC►oo Comprehensive Revenue Recovery Solutions A. Analyze Expenditures Charges and Revenue As the McKesson / MED3000 Team obtains the data items identified during the Kickoff, we will analyze the information and begin the modeling to optimize revenue and mitigate the audit risk. The analysis of the expenditures, charges, revenue, and statistical data will take place in conjunction with the data analysis in Phase 1, but will continue into January of 2014 when the McKesson / MED3000 Team reviews all the analysis and statistics with the City. Below are the areas of focus for the data analysis within the Cost Allocation Modeling phase of the project. Expenditures and Statistics The McKesson / MED3000 Team will analyze current departmental (Fire Department) expenditures by account code to determine the extent to which the operational and other costs can be discretely associated with medical service delivery. The McKesson / MED3000 Team will review all costs for "allowability" with 2 CFR 225 and 1 TAC 355.101 -111, and will discuss any ambiguous or questionable items with Bryan. The McKesson / MED3000 Team will also review City -wide costs that are associated with the Fire Department and /or ambulance services for inclusion in the cost allocation model. Identifying all City -wide related costs from city cost allocation plans and /or other financial reports will help determine if the following costs can be included in the Bryan model: • Depreciation • Retiree benefits • Legal Services • City Information Technology • City Communications • Other City Central Services The McKesson / MED3000 Team will then assess the need for allocation methodologies using statistical information for those accounts where a discrete accounting of costs to medical service delivery is not feasible. This step in the project will begin January 6, 2014. In those instances where allocation statistics are necessary, the McKesson / MED3000 Team will propose allocation methodologies that meet federal Centers for Medicare and Medicaid Services (CMS) Division of Cost Allocation (DCA) guidelines. In addition, the McKesson / MED3000 Team will look at those allocations from optimization and audit risk mitigation perspectives. Multiple allocation methods are allowable for many cost centers; however, using one that Bryan can easily replicate, is from a trusted and auditable source, and will optimize revenue is the goal. Some possible allocation statistics include, but are not limited to: FA • Staff Counts • Expenditures • Transactions • Computer Aided Dispatch Time • Patient Mix • Charges %_ny or t:sryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSON / nn -.210:5000 Comprehensive Revenue Recovery Solutions • Worked with the ATCEMS legal teams to draft necessary memoranda of agreement (MOA/MOU), and other contractual language that will allow for realization of the Medicaid supplemental payments from HHSC. • Identified and analyzed appropriate costs, and all relevant statistical and financial data for Cost Allocation Modeling purposes. • Prepared cost reports for ATCEMS for submittal to HHSC that comply with 2 CFR 225 (OMB Circular A -87). • The cost reporting work focused specifically on compliance and audit risk minimization. CITY OF HOUSTON HOUSTON FIRE DEPARTMENT Ambulance Supplemental Payment Program Services 2010-2013 Scope of Work: Kevin Coyle, of Revenue Optimization Solutions (RevOPS), while in the employ of PCG, provided the Houston Fire Department (HFD) with Medicaid supplemental payment program services to design, gain approval for, and implement an EMS Medicaid supplemental payment program for EMS /ambulance related costs. Mr. Coyle analyzed the feasibility of a Medicaid supplemental payment program for the Fire Department including the amount of revenue resulting from this program. He worked closely with HFD to identify 2 CFR 225 eligible costs and to develop appropriate allocation methodologies for cost centers that support both fire and EMS operations. Kevin also worked with HFD to account for all department -wide costs and then allocate costs, either directly or through allocation methods, into EMS or fire cost centers. Mr. Coyle also worked with the Fire Department to draft and prepare the necessary materials that allowed approval by the State Medicaid Agency (Texas Health and Human Services Commission (HHSC)). In addition, he provided the necessary supporting information and materials that HHSC needed for the federal approval process with the Centers for Medicare and Medicaid Services (CMS), and helped coordinate several calls as part of the Medicaid State Plan Amendment process. Kevin also reviewed cost, charge, reimbursement, and other information necessary to prepare and submit the Medicaid cost report to help the Houston Fire Department realize the additional Medicaid revenue as part of this project. Deliverables /Key Achievements: • Analyzed the feasibility of a Medicaid supplemental payment program for the Fire Department including the amount of revenue resulting from this program. 41 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSON E ua000 Comprehensive Revenue Recovery Solutions Project Qualifications CITY OF AUSTIN AUSTIN - TRAVIS COUNTY EMERGENCY MEDICAL SERVICES Ambulance Supplemental Payment Program Services 2005-2013 Scope of Work: Kevin Coyle, of Revenue Optimization Solutions (RevOPS), while in the employ of PCG, provided Medicaid Ambulance Supplemental Payment Program services to the City of Austin's Emergency Medical Services department. Mr. Coyle worked with the Austin - Travis County Emergency Medical Services Department (ATCEMS) to design, gain approval for, and implement the first Ambulance Supplemental Payment Program for ambulance services providers in Texas. Kevin worked with ATCEMS to analyze the appropriate upper limit and amount of revenue to be generated from a Medicaid supplemental payment program. He also designed the cost report that is currently being used as the template for all other ambulance services providers in the state as part of the work with ATCEMS. Mr. Coyle worked with ATCEMS and the Texas Medicaid Agency (HHSC) to develop an appropriate distribution method for payments from the state to ATCEMS. As the first provider approved in Texas, ATCEMS relied heavily on Mr. Coyle to provide significant information to HHSC as part of the HHSC approval, Medicaid State Plan Amendment, and federal Centers for Medicare and Medicaid Services (CMS) approval processes. Kevin was instrumental in preparing the necessary information and providing the Medicaid subject matter expertise that paved the way for the successful approval and implementation of the Texas Ambulance Supplemental Payment Program (ASPP) for ATCEMS and all other providers in Texas. Mr. Coyle worked closely with ATCEMS and HHSC to prepare the state administrative rules necessary for implementation in Texas and Kevin continues to provide subject matter expertise to HHSC. Deliverables /Key Achievements: • Drafted the Medicaid State Plan Amendment (SPA) and public notice on behalf of HHSC so the Texas ASPP could be established and reviewed by CMS. • Designed reimbursement models based on commercial, Medicaid, costs, and Medicare cost -to- charge methodologies and presented them to HHSC for review and approval. • Designed and gained approval for a cost report that adheres to all state and federal rules for cost accounting, cost allocation, and reporting (2 CFR 225; OMB Circular A -87, etc.), and is now the standard for all providers to use across Texas. 40 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 Glenn Goodpaster Senior VP 9 i ✓I Jackte Herrera I Cheryl Mikesell y 't Steve Culham ' Carl Ready # t� EMS Marketing t 3i Knsts Lee I t ,. Jason Bonham ! Regional 3 Dayton Office s Manager x t �� Regional er Mana g Manager i 31ry, Operations Director r� Regional Manager *{ 11 Mana erg .. rwa'Api(�. '' m .spt` Pi± m�. i .t:l�i:n.,..%4 � i rYYi :,.,�b✓�.i'1 APai� v0.e rt;�Yf .t tw",d� 0. ydw..,., ,, 'iM ciid ;'.,i�': ro,f�t 1'` _.t. i'YSX ?Team Supervisor t tN Team Supervisor { Team Supervisor Team Supervisor West Lawn Team Supervisor; Supervisor Supervisor ; Supervisor re 5 iIi '' ?� Data Posting �; Data Erdry , Posting Data Entry, Posting I AIR FTE s 4 Data Entry Posting and MR FTE s S> '- AtR, y` and AlR FTE's and �5�1 and EXHIBIT 3 MSKESSON / E%3C>c)0 Comprehensive Revenue Recovery Solutions TAB G: Attachments The following attachments are included in this section: • McKesson / MED3000 Organizational Chart (p.39) • Project Qualifications (p. 40) • Resumes (p. 50) • Team Organizational Chart (p. 58) • Bryan Certification Page (p. 59) • Business Support Services Agreement (p. 60) 38 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSON / M� VaC>0C> Comprehensive Revenue Recovery Solutions TAB F: Certification, Acknowledgement, and Statement of Willingness Certification Please find our signed certification page in TAB G. Attachments. Acknowledaement of Addenda As of October 23, 2013, no addenda for this solicitation have been issued by the City of Bryan. Statement of Willingness In regards to a Statement of Willingness, our response is the following: Notwithstanding anything else in this RFP, the Terms and Conditions of the Request for Proposal will be agreed to by McKesson / MED3000, if selected Vendor of Choice, to the extent that they are not additional to or in conflict with the terms and conditions of the Business Support Services Agreement ( "BSSA ") attached hereto; however, we agree to entertain negotiations on those terms additional to and /or in conflict with the BSSA. The company's legal staff will evaluate each requirement during contract negotiations and will make every effort to develop mutually agreeable terms with the City of Bryan, Texas (the "City "). 37 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 is EXHIBIT 3 - - MSKESS0N Ea3000 Comprehensive Revenue Recovery Solutions References for McKesson / MED3000: Chief Mark Kerby City of Mesquite 1515 N. Galloway St. Mesquite, TX 75941 Office (972) 216 -6267 Fax (972) 329 -8315 mkerbv[c-mesauitefire orq Interim Chief Sam Rohde Duncanville Fire Department 1530 S. Main St. Duncanville, TX 75137 Office (972) 780 -4926 Fax (972) 780 -4928 srohde anci.duncanville.tx us Chief John Ballard Cedar Hill Fire Department 1212 W. Beltline Rd. Cedar Hill, TX 75104 Office (972) 291 -1011 Fax (972) 291 -3473 iohn. bal Iard0D-cedarhilltx. com 36 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESS0N / M :3©c.>o Comprehensive Revenue Recovery Solutions TAB E: References Below the McKesson / MED3000 Team provides references for similarly successful projects. We encourage you to contact each reference. References for Kevin Coyle — McKesson I MED3000 Team Project Manager: Brett Allen Chief Financial Officer Montgomery County Hospital District 1400 South Loop 336 West Conroe, TX 77304 (936)523 -1138 ballenca-mchd- tx.orq Fax (936)523 -5094 (Mr. Coyle provided ASPP services while in the employ of PCG.) Joyce Brown Director of Administration MedStar — Are Metropolitan Ambulance Authority 551 E. Berry Street Fort Worth, TX 76110 (817)923 -3700 ibrowna- medstar911.org Fax (817)632 -0537 (Mr. Coyle provided ASPP services while in the employ of PCG.) Sonja D. Otero Manager, Finance and Administration City of Houston Fire Department EMS Headquarters 600 Jefferson St., 8th Floor Houston, TX 77002 (832)394 -6830 Sonia. OteroO—houstontx.aov Fax (832)394 -6891 (Mr. Coyle provided ASPP services while in the employ of PCG.) 35 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSON / M 0 L.�3C3C'>o Comprehensive Revenue Recovery So/utions of service. As other firms have clients across a spectrum of healthcare providers and product lines, and must meet those demands across multiple states, the McKesson / MED3000 Team will be able to focus specifically on optimizing revenue and mitigating audit risk for the City of Bryan as part of the ASPP. 34 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSON / M 3C>Qco Comprehensive Revenue Recovery Solutions prepared for that, and given our experience with the ASPP, other similar programs around the country, and our conservative approaches to cost allocation modeling and cost reporting, the City of Bryan should have minimal anxiety in the event an audit occurs. The McKesson / MED3000 Team will shoulder the administrative burden and lead the response effort during each audit/review. As with other aspects of the project, the McKesson / MED3000 Team will review everything with the City of Bryan before filing any responses with auditors. Project Management The McKesson / MED3000 Team is committed to keeping clients informed about all aspects of the project and views client relationships and customer service as essential to this project. The McKesson / MED3000 Team will work hard to establish a good working relationship with the City of Bryan and, as part of that, we recommend having regular status meetings. The McKesson / MED3000 Team, would like to have regular meetings at the beginning of this project so we can move quickly with the Provider Approval and Cost Allocation Modeling phases. This would include monthly formal status meetings where our teams would meet in person, along with less formal bi- weekly, or as needed status meetings via conference call. As the flow of the project slows a bit after Provider Approval and Cost Allocation Modeling, we can move to less frequent meetings until the cost reporting process picks up. All of the McKesson / MED3000 status meetings will include a status report in MSPowerPoint format that will detail the progress of each Phase and Task within the Project Timeline, as well as identify any issues that may arise during the course of the project that may delay or alter the timeline. Customer Service The McKesson / MED3000 Team believes we will provide the City of Bryan with the most experience and best service in the marketplace. We will provide Bryan with all of the services you need to optimize revenue and mitigate the audit risks associated with the ASPP. Our team's experience in getting fire departments /ambulance services providers up and running, and generating revenue under the ASPP is unsurpassed. We have the experienced team members that helped create the rules and methodologies that are in place today under the program, and we will use that expertise to optimize revenue for Bryan. The McKesson / MED3000 Team is committed to providing a level of customer service that other firms cannot match. We have Texas -based team members, and a Texas -based Project Manager focusing solely on the ASPP to make sure the City of Bryan receives a superior level 33 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MS ESSON / 0 :5c>C>a Comprehensive Revenue Recovery solutions Cost Report Payment From HHSC HHSC has committed to making payments on each cost report by August 31 of the year following the end of the cost reporting period. That will mean the City of Bryan can expect its first payment from HHSC by August 31, 2015, for the IFFY 2014 Cost Report that was submitted by March 31, 2015. Bryan can then expect annual ASPP payments from HHSC by August 31. Maintenance of the Model As stated previously, the maintenance of the Cost Allocation Model and determination if a formal change needs to be submitted to HHSC runs annually from July — November. It is important to spend this time making sure the Cost Allocation Model assumptions still hold, and if not, then make the necessary changes and submit a new model to HHSC for review. Cost Reporting Phase The Cost Reporting phase of the ASPP project runs annually from November — March 31. While that may seem like a great deal of time, it goes by quickly with the holidays. It will be important to meet the deadlines in this phase of the project to guarantee submittal to HHSC by March 31. HHSC Desk Reviews HHSC is currently conducting its desk reviews from March 31 — July 31. The McKesson / MED3000 Team will make sure we answer any HHSC questions expeditiously during this time to expedite the cost report payment. As part of the overall approach to the City of Bryan's ASPP project, the McKesson / MED3000 Team offers several other services that will provide great value to the City. Audit Support As part of our ASPP services, the McKesson / MED3000 Team will provide Medicaid and cost reporting subject matter expertise during any HHSC, federal, and City reviews /audits of the cost reports or ASPP project in general. The McKesson / MED3000 Team is committed to providing the Medicaid and cost reporting subject matter expertise during these times of scrutiny and we will shoulder the administrative burden and lead the response effort during any review /audit. The McKesson / MED3000 Team understands that given the amount of money associated with the ASPP, that additional scrutiny will happen. The McKesson / MED3000 Team is 32 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 i EXHIBIT 3 MWESSON / E 3000 Comprehensive Revenue Recovery Solutions The McKesson / MED3000 Team will begin the protocol development on February 16, 2015 and have a draft document for the City of Bryan to review by May 30, 2015. The final protocols will be ready for the City by June 30, 2015. As stated previously, the McKesson / MED3000 Team will shoulder the administrative burden related to the HHSC Cost Report Review, which starts on March 31, 2015, and ends July 31, 2015. Please see TAB C. Project Timeline for more dates related to this phase of the project. Staff Assigned: The McKesson / MED3000 Team members that will be participating in the Cost Reporting phase of the project include Glenn Goodpaster, Kevin Coyle, Jason Bonham, and Carl Reedy. Progress Reports: The McKesson / MED3000 and City of Bryan teams will meet monthly during this phase of the project for formal status meetings. In addition, the McKesson / MED3000 Team will want to meet with the City to discuss progress and review the draft and final Cost Report, and Protocol document. In addition, the McKesson / MED3000 Team will schedule additional progress meetings to address any questions or concerns that arise from the HHSC desk reviews. Duties and Responsibilities of the City of Bryan: The City of Bryan will be expected to attend the scheduled meetings throughout this phase. In addition, the City will need to review the McKesson / MED3000 draft and final Cost Report, and protocol documents and provide feedback related to these deliverables. Finally, the McKesson / MED3000 Team will need to have the City of Bryan review our responses to any questions HHSC may have related to the desk review process before we submit them to the State. As the project moves beyond the IFFY 2014 Cost Report, it will be important to keep in mind the following dates related to the ASPP. 31 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSON / F El mc: oa a Comprehensive Revenue Recovery Solutions submit revisions to HHSC, as necessary, to prevent any potential revenue loss to the City of Bryan. The McKesson / MED3000 Team will work to develop a draft Cost Report by the beginning of February so there is plenty of time to review the information with Bryan to make sure everyone understands the methodologies in the report. After the initial review, the McKesson / MED3000 Team will incorporate changes and have a final draft to Bryan for review by early March so there is plenty of time to submit the final Cost Report to HHSC by the March 31, 2015, deadline. B. Protocols As with the Cost Allocation Modeling phase of the project, the McKesson / MED3000 Team will establish protocols and processes that Bryan will need to incorporate annually to generate the Cost Report. This will include the specific reports used for reporting purposes, and the supporting documentation requirements in the event of an audit. This phase will put in place the checks and balances needed to make sure the City of Bryan complies with State and Federal cost reporting rules. The McKesson / MED3000 Team will review and finalize these protocols with the City to make sure all parties understand what is needed to prepare the annual reports. C. HHSC Cost Report Review — FFY 2014 Cost Report After the FFY 2014 Cost Report is submitted, HHSC moves quickly into their "desk review" process. This is where the State will review the City of Bryan's Cost Report and ask questions about the information contained within the report. It will be important for the City of Bryan to have the McKesson / MED3000 Team's experience in dealing with the desk review process so Bryan can minimize the back - and -forth with HHSC, and expedite the revenue payment process. The McKesson / MED3000 Team will act as the go- between and manage the desk review answers. As with the other phases of the project, our team will review everything with, and receive approval from the City before any correspondence with HHSC. Time Frames for Tasks Within Cost Reporting Phase of Proiect The Cost Reporting phase of the project begins on November 3, 2014 with the gathering of the expenditure, charge, revenue, and statistical information for the FFY 2014 Cost Report. The McKesson / MED3000 Team will prepare a draft Cost Report for review by the City of Bryan by February 6, 2015 with a final Cost Report for review by March 20, 2015. The final Cost Report for FFY 2014 will be submitted to HHSC by March 31, 2015. 30 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSO N / E :5000 Comprehensive Revenue Recovery Solutions Duties and Responsibilities of the City of Bryan: The McKesson / MED3000 Team expects that the City of Bryan will attend the scheduled meetings throughout this phase. In addition, the City will also review the McKesson / MED3000 data analysis, initial model, and draft Allocation Report, and provide feedback related to these deliverables. Finally, the McKesson / MED3000 Team will need to have the City of Bryan review our responses to any questions HHSC may have related to the Cost Allocation Modeling phase before we submit them to the State. The McKesson / MED3000 Team will manage the cost reporting process for the City of Bryan as it relates to the gathering and analysis of the necessary expenditure, charge, payment, and statistical information. The McKesson / MED3000 Team will prepare draft reports for review with the City and we will review any questionable cost centers before finalizing and submitting a cost report to HHSC. The McKesson / MED3000 Team will use the allocations from our Cost Allocation Modeling phase to build a cost report that focuses on compliance and audit risk mitigation, taking into account 2 CFR 225, 1 TAC 15 355.101 -111, government accounting standards, and other regulations. A. Preparation and Submittal — FFY 2014 Cost Report Each year during the Cost Reporting phase of the project, the McKesson / MED3000 Team will work with the City of Bryan to submit a cost report that complies with Federal and State rules. The cost reporting process will begin in November of each year and will conclude with the cost report submittal to HHSC by March 31 of the following year. The first cost report that the City of Bryan will submit, will be for federal fiscal year (FFY) 2014, unless the McKesson / MED3000 Team is able to obtain approval for retroactive claiming. The cost reporting process will begin with the gathering and analysis of the necessary expenditure, charge, payment, and statistical information from fiscal year 2014. The McKesson / MED3000 Team will then flag all questionable cost centers and will review those items with Bryan. The McKesson / MED3000 Team will use the allocations from our modeling to build a cost report that focuses on compliance and audit risk mitigation. As the McKesson / MED3000 Team puts together the supporting documentation for the Cost Report, it will be important to adapt to cost, charge, payment, or statistical changes, and incorporate them into our Cost Allocation Model and Cost Report. The McKesson / MED3000 Team has the required HHSC cost report certification to be able to adapt to these changes and 29 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 ME-KESSON / M E L�3 ©t�C7 Comprehensive Revenue Recovery Solutions The cost allocation Model Development task starts on January 20, 2014 and will utilize the analysis from the previous task in the development of the initial model. The McKesson / MED3000 Team will present the initial model to the City of Bryan on February 24, 2014, with the final model ready by March 3, 2014. From there, the McKesson / MED3000 Team will begin creating the draft Allocation Report on February 10, 2014, with the draft presented to the City on March 17, 2014, and final Allocation Report sent to HHSC on April 7, 2014. Finally, the assessment and maintenance of the allocation model begins on July 6, 2014 and ends on November 3, 2014. While this will not be a very time intensive part of the overall ASPP Project, it will still be necessary to make sure the McKesson / MED3000 and City of Bryan teams are addressing any needs that arise with the ASPP. Please see TAB C. Project Timeline for more dates related to this phase of the project. Staff Assianed: The McKesson / MED3000 Team members that will be participating in the Cost Allocation Modeling phase of the project include Glenn Goodpaster, Kevin Coyle, Jason Bonham, and Carl Reedy. Progress Reports: The McKesson / MED3000 and City of Bryan teams will meet monthly during this phase of the project for formal status meetings. In addition, the McKesson / MED3000 Team will want to meet with the City to discuss progress and review the allocation statistics and methodologies for the model, present the initial model to the City of Bryan, and to review the draft and final Allocation Report. These meetings would preferably be in person, but our team can schedule them as conference calls to accommodate schedules. If there is a need to update the model in the summer /fall of 2014, there will be additional in- person meetings to review the progress and deliverables associated with the Maintenance of the Model. 2$ 1City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 M5KESS0N nnF_M3C>00 Comprehensive Revenue Recovery Solutions C. Allocation Report Once the modeling is complete, the McKesson / MED3000 Team will use our experience to prepare an Allocation Report for submittal to HHSC that will include the allocations that the City of Bryan plans to use during the cost reporting process. Submitting the Allocation Report to HHSC at this time allows HHSC to question any methodologies, and the City to respond to those questions prior to the cost report submittal. HHSC recommends doing this prior to the cost report deadline as a way to reduce the chance of a denial of specific costs and limiting the negative impacts on reimbursement to Bryan brought about by the exclusion of costs, charges, or other cost reporting items. Submitting this report will also prevent unnecessary delays in the reimbursement to the City of Bryan. D. Maintenance of the Model As stated previously, the development of the Cost Allocation Model during the first cost reporting cycle is going to be more resource- intensive than in other years. The McKesson / MED3000 Team understands this; however, after the first cost reporting cycle, the McKesson / MED3000 Team and the City of Bryan will still need to do an annual review, update, and re- modeling to make sure prior assumptions still hold. Many times there are new cost centers or organizational changes that affect allocations and cost determinations. In addition, the availability of cost allocation statistics may change and that may precipitate the need to update the allocations and Allocation Report. If there is a need to change the assumptions in the cost allocation model, the McKesson / MED3000 Team will revise the model and submit it to HHSC for review. As stated previously, we will be the point for any questions that may arise from HHSC during the review of the model. During the Cost Allocation Modeling in additional years, the McKesson / MED3000 Team will be documenting the internal procedures that Bryan needs to maintain the models for cost reporting purposes. In addition, the McKesson / MED3000 Team will work with the City to develop internal audit/review support materials, guidelines, and protocols in the event of audit. This includes maintaining the proper supporting materials for the cost reports. Time Frames for Tasks Within Cost Allocation Modeling Phase of Project The Cost Allocation Modeling phase of the project begins in conjunction with the data analysis for the Provider Approval phase of the project on December 10, 2013, and ends with a meeting with the City to review the expenditures, charges, revenues, and statistics on February 7, 2014. This time frame takes into account vacations that may occur during December and January. 27 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 WKESSOIN / M E L�m►oC:�U Comprehensive Revenue Recovery solutions which it is realized. The McKesson / MED3000 Team will make sure that the City of Bryan is not hamstrung by those kinds of misinterpretations of state and federal regulations when implementing the ASPP. Having the experience of the McKesson / MED3000 Team in working with Medicaid supplemental payment programs around the country for over twelve years and directly on the ASPP since its inception eight years ago affords us the knowledge to make the case against these unnecessary burdens. Another area of challenge will be any DSRIP program, Homeland Security, or Community Development Block Grant (CDBG) revenue that the Fire Department may be receiving related to community paramedic programs, apparatus grants, community initiatives, etc. It will be important to have the experience of the McKesson / MED3000 Team to make sure Bryan is accounting for these revenues appropriately so there is an absolute delineation between those funds and what is allowable under the ASPP. B. Model Development The next step is for the McKesson / MED3000 Team to develop the cost allocation model that incorporates different scenarios based on the expenditures, charges, payments, and statistical analysis identified above. The platform on which to develop the models will be a mock cost report. Being able to see how each aspect of a cost determination, allocation, or payment impacts reimbursement to the City of Bryan will be important as the McKesson / MED3000 Team and the City finalize methodologies to implement during the cost reporting process. HHSC is using a cost -to- charge methodology for the ASPP; however, within those constructs, the McKesson / MED3000 Team model will incorporate multiple allowable allocation methodologies to optimize the amount of medical - related and subsequently Medicaid /Uninsured - related costs across all cost centers within the City's financials. The models will also incorporate audit risk mitigation strategies to make sure Bryan is in compliance with State and Federal rules, including, but not limited to: • 1 TAC 15 355.101 -111 •1 TAC 15 355.8201 • 1 TAC 15 354.1111, 1113, 1115 •42 CFR 433.50 -51, 56 1 TAC 15 355.8065 -8066, 8081 •42 CFR 447.300 et al •1 TAC 15 355.8600 •2 CFR 225 et al The McKesson / MED3000 Team will present a detailed analysis of the initial Cost Allocation Model to the City of Bryan, and based on overall risk tolerances, we will provide a recommendation as to which approach will be best, and refine the model accordingly. 26 %.ny or tsryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MWESSON / n3000 Comprehensive Revenue Recovery Solutions this portion of the model thoroughly with Bryan to make sure it is in line with risk tolerances and expectations, as well as with state and federal regulations. Unique Challenges and Solutions The amount of billed charges to Uninsured will be a risk area and a focal point in the event of an audit. The City of Bryan will need the experience of the McKesson / MED3000 Team to conduct a thorough analysis of the Uninsured charges to make sure we are only reporting appropriate amounts. The McKesson i MED3000 Team will use its unsurpassed national networks and experience to build in and implement audit risk mitigation strategies to make sure only appropriate charges are included in the cost allocation model and subsequent cost report. To include all charges associated with the Uninsured accounts will lead to a certain review by HHSC. The McKesson / MED3000 Team's experience with dozens of other ambulance services providers in Texas and around the country analyzing this very issue will allow the City to implement approaches that will prevent undue audit scrutiny. Payments and Revenues The McKesson / MED3000 Team will analyze payment information from Medicaid and those without third party insurance. The State is transferring a good amount of audit risk to the providers in regards to Medicaid managed care and the Uninsured, as each provider must report all payments from those payers without a State verification. The McKesson / MED3000 Team modeling will take this into account and will provide for multiple scenarios to mitigate the audit risk in these areas. Finally, all other revenue sources need to be identified for modeling purposes and cost reporting. The McKesson / MED3000 Team and Bryan will need to identify revenue from Federal Homeland Security or other grants, as well as payments from the indigent health care program, if appropriate. It will also be critical to spend time reviewing the costs and revenues for any Delivery System Reform Incentive Payment (DSRIP) programs in which the City of Bryan is participating for proper accounting in the model and subsequent cost report. This is a big area of concern with the State, and is something that the McKesson / MED3000 Team will address. Unique Challenges and Solutions The payments and revenues are sometimes tricky when dealing with HHSC and Medicaid supplemental payment programs like the ASPP. It will be important for the City of Bryan to make sure they are using a firm with the experience like the McKesson / MED3000 Team to make sure you are not unduly burdened by misinterpretations of federal regulations or the imposition of state rules where federal rules clearly apply. There have been some instances in the past where providers have been advised that the revenue from the ASPP can only be used for certain purposes or that it must be accounted for as an offset to expenditures in the year in 25 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MWESSON / E13t>oo Comprehensive Revenue Recovery Solutions Unique Challenges and Solutions Fire -based EMS /ambulance services providers present unique challenges related to cost determination and allocations. As a fire -based provider of ambulance medical services, the City of Bryan will want to make sure it is able to account for all appropriate and allowable costs, or full costs, associated with Medicaid and Uninsured medical service delivery. By accounting for the full cost of providing medical services, Bryan will be in an optimal financial position because costs of providing medical services will be higher than the current charges. However, to get to that point, the City will need the experience that the McKesson / MED3000 Team brings from Medicaid, and DCA cost allocation methodologies and regulations. For example, being able to account for the medical service delivery costs associated with the firefighters that provide pre - hospital stabilization services on paramedic engines, or other apparatus before the ambulance arrives is an area that will need several allocations and statistics to determine appropriate costs that will pass state and federal scrutiny. The McKesson / MED3000 Team has the experience to do this from working with fire departments in Houston, Dallas, San Antonio, Washington DC, Boston, and elsewhere, and we will make sure to use this experience so Bryan is able to optimize costs. In addition, there are strict federal parameters on allowable City -wide indirect costs, but the McKesson / MED3000 Team's experience in preparing indirect cost rates and indirect cost allocation plans for the likes of Harris County will be extremely beneficial to make sure the City of Bryan is following the state and federal rules as detailed in 1 TAC 15 355.101 -111 and 2 CFR 225 et al, respectively. Our experience will allow us to comb through the City's financials and where necessary, identify appropriate allocation methods to develop a complete cost picture related to medical service delivery. Charges As part of the data analysis for the Cost Allocation Modeling phase of the project, the McKesson / MED3000 Team will review aggregate and detailed ambulance services charge information by payer type. Being able to review aggregate charges by payer will allow for the development of appropriate payer mix statistics. Furthermore, a detailed analysis of charges associated with Medicaid and for the Uninsured (those without third party insurance) will be necessary to build a proper model. The analysis of the charges will also allow the McKesson / MED3000 Team to build safeguards into the model to mitigate audit risk. Since there are certain federal rules related to charges associated with what Medicaid would otherwise pay, it will be important to spend time reviewing charges and developing protocols for modeling and cost reporting purposes. The charges, especially for the Uninsured, are one of the areas with a high risk for audit findings. The McKesson / MED3000 Team has unsurpassed experience in this area and we will review r 24 %,ILY or oryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 M5KESS0N E j�►3ooa Comprehensive Revenue Recovery Solutions • Prepared a Provider information Report for HHSC that contained, in part, an organizational analysis and fiscal impact study, in order to have HFD become an approved provider under an EMS Medicaid supplemental payment program. • Provided the necessary supporting information and materials that HHSC needed for the federal approval process with CMS, and helped coordinate several calls as part of the Medicaid State Plan Amendment process. • Identified and analyzed appropriate costs, financial statements and statistical information and developed state and federally compliant cost report that adheres to 2 CFR 225 (OMB Circular A -87). • Submitted cost reports to HHSC. CITY OF DALLAS DALLAS FIRE - RESCUE DEPARTMENT Ambulance Supplemental Payment Program Services 2011-2013 Scope of Work: Kevin Coyle, of RevOPS, while in the employ of PCG, provided Medicaid Supplemental Payment Program services to the Dallas Fire - Rescue Department (DFR) so they could become an approved provider in the Texas Ambulance Supplemental Payment Program. Mr. Coyle also designed and implemented a Cost Allocation Model to help account for the costs and charges between medical and fire operations since DFR operates under an all- hazards medical model. Kevin worked with DFR to analyze the applicability of the Medicaid Supplemental Payment Program for the City, and determined the appropriate upper limits and amount of potential federal revenue associated with this program. He developed a Provider Information Report for DFR and submitted that to HHSC for approval in the Texas Ambulance Supplemental Payment Program (ASPP). Mr. Coyle reviewed and allocated 2 CFR 225 (OMB Circular A -87) eligible costs for modeling purposes, and worked with the City and DFR to identify indirect costs that could be included into the cost reporting process. He reviewed expenditure, charge, revenue, and other information necessary to prepare and submit appropriate approval, allocation methodologies, and models to HHSC. Deliverables /Key Achievements: Prepared the Provider Information Report for DFR so they could become an approved provider in the ASPP. • Worked with the Fire Department to design an appropriate cost allocation model to segregate the fire suppression related costs from the fire medical related costs. 42 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MWESSON / ivy E -D:5a0 0 Comprehensive Revenue Recovery Solutions • Prepared state and federally compliant (2 CFR 225 (OMB Circular A -87), 42 CFR 433 et al, etc.) cost report that will be the mechanism by which DFR receives the additional federal revenue. • Identified and analyzed appropriate costs, financial statements and statistical information for the cost report, and submitted the cost reports. CITY OF SAN ANTONIO SAN ANTONIO FIRE DEPARTMENT Ambulance Supplemental Payment Program Services 2010-2013 Scope of Work: Kevin Coyle, of RevOPS, while in the employ of PCG, provided Medicaid Supplemental Payment Program services to the San Antonio Fire Department (SAFD) to allow them to generate additional Medicaid funding through a federally approved supplemental payment program. Mr. Coyle worked with SAFD to analyze the applicability of the Medicaid Supplemental Payment Program for San Antonio and determined the appropriate upper limits and amount of potential federal revenue associated with this program. Kevin worked with the Fire Department to design an appropriate cost allocation methodology to segregate the fire suppression related costs from the fire medical related costs. He also designed the cost report that will be the mechanism by which the Fire Department receives the additional federal revenue. Mr. Coyle worked with the Fire Department to provide HHSC with the materials necessary to approve San Antonio as provider under the Texas Ambulance Supplemental Payment Program (ASPP). Kevin also sent numerous responses to HHSC as part of the Medicaid State Plan approval process with the Centers for Medicare and Medicaid Services (CMS). He also reviewed and allocated 2 CFR 225 (OMB Circular A -87) eligible costs for modeling purposes, and prepared the annual cost report. Deliverables /Key Achievements: • Worked with the Fire Department to analyze the applicability of the Medicaid Supplemental Payment Program to San Antonio and determined the appropriate upper limits and amount of potential federal revenue associated with this program. • Worked with the Fire Department to design an appropriate cost allocation methodology to segregate the fire suppression related costs from the fire medical related costs. • Designed state and federally compliant (2 CFR 225 (OMB Circular A -87), 42 CFR 433 et al, etc.) cost report that will be the mechanism by which the Fire Department receives the additional federal revenue. 43 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 I EXHIBIT 3 MWESSON / M c �m000 Comprehensive Revenue Recovery Solutions • Worked with the Fire Department to provide the State Medicaid Agency (Texas Health and Human Services Commission (HHSC)) with the materials necessary for to approve San Antonio as provider under the Texas Ambulance Supplemental Payment Program. • Identified and analyzed appropriate costs, financial statements and statistical information for the cost report, and submitted the cost reports. MONTGOMERY COUNTY HOSPITAL DISTRICT Ambulance Supplemental Payment Program Services 2008-2013 Scope of Work: Kevin Coyle, of RevOPS, while in the employ of PCG, worked with the Montgomery County Hospital District (MCHD) to design, gain approval for, and implement the Texas Ambulance Supplemental Payment Program (ASPP). Mr. Coyle assessed multiple supplemental payment methodologies, determining reimbursement amount, identifying 2 CFR 225 eligible costs, determining appropriate cost allocation, and prepared a cost report to present to HHSC to become an approved provider under the State's ASPP. Kevin worked closely with MCHD on allocations across divisions and taking into consideration the costs associated with MCHD's indigent health care program. He worked with MCHD staff to identify direct and indirect costs to EMS given the unique relationship of the ambulance services being part of the greater hospital district. Mr. Coyle worked closely to identify service level detail, and transport information in order to develop an appropriate Cost Allocation Model and Cost Report. Deliverables /Key Achievements: • Prepared a Provider Information Report for HHSC that contained an organizational analysis and fiscal impact study, in order to have MCHD become an approved provider under the ASPP. • Identified and analyzed appropriate costs, financial statements and statistical information for inclusion in the Cost Allocation Modeling phase of the project. • Prepared and submitted cost reports for the ASPP. GALVESTON COUNTY HEALTH DISTRICT GALVESTON AREA AMBULANCE AUTHORITY Ambulance Supplemental Payment Program Services 2009-2013 Scope of Work: 44 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSON / M —Fb:5 Coo Comprehensive Revenue Recovery Solutions Kevin Coyle, of RevOPS, while in the employ of PCG, worked with the Galveston County Health District (GCHD) to design, gain approval for, and implement the Texas Ambulance Supplemental Payment Program. Mr. Coyle assessed multiple supplemental payment methodologies, determined the amount of reimbursement, identified 2 CFR 225 eligible costs, determined appropriate cost allocation methods, and prepared an organizational analysis, fiscal impact study, and cost report for HHSC. Kevin worked closely with GCHD staff on the HHSC approval, cost determinations for EMS vs. Health District cost centers, and in determining appropriate allocation methodologies, given the ambulance services being provided as a subset of overall health district services. Deliverables /Key Achievements: • Prepared and submitted Provider Information Report for HHSC that contained an organizational analysis and fiscal impact study, in order to have GCHD become an approved provider under the Texas ASPP. • Developed Cost Allocation Model and analyzed appropriate costs, financials and statistical information. • Prepared and submitted GCHD's cost reports. AREA METROPOLITAN AMBULANCE AUTHORITY — MEDSTAR (Tarrant Co., TX) Ambulance Supplemental Payment Program Services 2009-2013 Scope of Work: Kevin Coyle, of RevOPS, while in the employ of PCG, worked with MedStar to design, gain approval for, and implement an EMS Medicaid supplemental payment program for ambulance related costs. Mr. Coyle assessed multiple supplemental payment methodologies, developed cost allocation models, determined payment amount, identified eligible costs, determined appropriate cost allocations, and prepared cost reports to submit to the Texas Health and Human Services Commission (HHSC) — which is the state Medicaid agency. Mr. Coyle worked closely with MedStar on the Provider Information Report and approval process with HHSC and to develop a Cost Allocation Model that would accurately identify direct and indirect costs to ambulance service delivery. He analyzed patient level and service level detail, third party payments, and transport information in the development of that model, and subsequently used that model for cost reporting purposes. Deliverables /Key Achievements: • Prepared the Provider Information Report and submitted it to HHSC for approval in the ASPP. 45 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 ME-KESSON / M E 34oQ Comprehensive Revenue Recovery Solutions • Identified and analyzed appropriate costs, financial statements and statistical information in the development of the Cost Allocation Model for the ASPP. • Submitted the cost reports for MedStar as part of the ASPP services. CITY OF NEW BRAUNFELS NEW BRAUNFELS FIRE DEPARTMENT Ambulance Supplemental Payment Program Services 2013 Scope of Work: Revenue Optimization Solutions (RevOPS), and Kevin Coyle is beginning work with the New Braunfels Fire Department (NBFD) to provide Provider Approval, Cost Allocation Modeling, and Cost Reporting services as part of the Texas Ambulance Supplemental Payment Program (ASPP). RevOPS is working with NBFD so they can become an approved provider in the ASPP with and anticipated approval in November 2013. RevOPS is also providing cost allocation modeling, and cost reporting services to help optimize revenue and mitigate audit risk from ASPP. RevOPS is shouldering the administrative duties related to the provider approval, and taking the lead in answering any questions from the Texas Medicaid Agency (Health and Human Services Commission (HHSC)) related to NBFD's eligibility for the ASPP. RevOPS is implementing conservative approaches in the cost allocation modeling and cost reporting phases of project. Will work closely with NBFD to identify 2 CFR 225 eligible costs and to develop appropriate allocation methodologies for cost centers that support both fire and EMS operations. Deliverables /Key Achievements: • Preparing the Provider Information Report and submitting it to HHSC for approval in the ASPP. • Identifying and analyzing appropriate costs, financial expenditures, and statistical information in the development of the Cost Allocation Model for the ASPP. • Submitting the cost reports for NBFD as part of the ASPP services. CITY OF MESQUITE MESQUITE FIRE DEPARTMENT Ambulance Supplemental Payment Program Services 2013 46 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MWESSON / nnoR�3000 Comprehensive Revenue Recovery Solutions Scope of Work: McKesson / MED3000 and Kevin Coyle, of RevOPS, are beginning work with the Mesquite Fire Department (MFD) to implement and manage the City's ASPP project. McKesson / MED3000 is leading the City's efforts to become an approved provider in the ASPP and conducting the modeling and cost reporting associated with the program. Anticipated ASPP approval for MFD in November 2013. McKesson / MED3000 are leading the approval, cost allocation modeling, and cost reporting aspects of the project. The project will include the implementation of audit risk mitigation strategies given the added HHSC scrutiny of ambulance services providers in the greater Dallas area. Will work closely with MFD and city finance staff on the project. Deliverables /Key Achievements: • Preparing the Provider Information Report and submitting it to HHSC for approval in the ASPP. • Identifying and analyzing appropriate costs, financial expenditures, and statistical information in the development of the Cost Allocation Model for the ASPP. • Submitting the cost reports as part of the ASPP services. CITY OF LANCASTER LANCASTER FIRE DEPARTMENT Ambulance Supplemental Payment Program Services 2013 Scope of Work: McKesson / MED3000 and Kevin Coyle, of RevOPS, are beginning work with Lancaster Fire Department (LFD) to implement and manage the City's ASPP project. McKesson / MED3000 is leading the approval, cost allocation modeling, and cost reporting aspects of the project taking into consideration the somewhat unique mutual aid transports with sister cities in southern Dallas County. McKesson / MED3000 anticipates ASPP approval in November 2013. Utilizing dispatch and staffing complements to develop a model to calculate charges that are more accurate. The project will include the implementation of audit risk mitigation strategies given the added HHSC scrutiny of ambulance services providers in the greater Dallas area. Will work closely with LFD and city finance staff on the project. Deliverables /Key Achievements: • Preparing the Provider Information Report and submitting it to HHSC for approval in the ASPP. 47 1 City of Bryan October 24, 2013 McKesson I MED3000 Response to RFP # 14 -003 EXHIBIT 3 ME- KESSON / M: Dmc>o a Comprehensive Revenue Recovery Solutions • Identifying and analyzing appropriate costs, financial expenditures, and statistical information in the development of the Cost Allocation Model for the ASPP. • Submitting the cost reports as part of the ASPP services. CITY OF BOSTON BOSTON PUBLIC HEALTH COMMISSION EMS and Public Health Medicaid Supplemental Payment Program 2010-2013 Scope of Work: Kevin Coyle, of RevOPS, while in the employ of PCG, worked with the Boston Public Health Commission (BPHC) to design, gain approval for, and implement a Medicaid supplemental payment programs for ambulance related costs under the Boston EMS division. Mr. Coyle assessed multiple supplemental payment methodologies for Boston EMS and BPHC clinics. Kevin worked with BPHC to determine amount of payment, 2 CFR 225 eligible costs, appropriate cost allocations, and prepared an organizational analysis, fiscal impact study, and designed a draft cost report to present to the Massachusetts Executive Office of Health and Human Services (EOHHS) to become an approved provider under EMS Medicaid supplemental payment programs. Mr. Coyle worked closely with BPHC- Boston EMS to develop appropriate allocation methodologies for all allowable cost centers. Deliverables /Key Achievements: • Prepared documentation and worked with BPHC to implement the EMS and Public Health supplemental payment program. • Identified and analyzed appropriate costs, and all relevant statistical and financial data for the supplemental payment program. CITY OF RICHMOND RICHMOND AMBULANCE AUTHORITY Ambulance Supplemental Payment Program Services 2006-2009 Scope of Work: Kevin Coyle, of RevOPS, while in the employ of PCG, worked with the Richmond Ambulance Authority (RAA) to design and implement an EMS supplemental payment program. Mr. Coyle worked closely with RAA to determine the most appropriate upper limit, calculate the amount of 48 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSON M i�►:5aaa Comprehensive Revenue Recovery Solutions the supplemental payment. Kevin and RAA presented information for approval to the Commonwealth of Virginia, but the Commonwealth wanted RAA to be a lead agency for all EMS providers in the state. RAA opted not to move forward with the EMS Medicaid supplemental payment program until such a time when they did not need to coordinate the efforts of all providers in Virginia. Deliverables /Key Achievements: • Conducted an organizational assessment and fiscal impact study for RAA. • Worked closely with the RAA management team to identify direct and indirect costs to RAA, patient level and service level detail, commercial carrier payments, and trip information. • Designed reimbursement models based on commercial, Medicaid, and Medicare carriers. • Calculated the appropriate UPL for services and presenting revenue opportunities based on the different models to RAA. • Worked with RAA to design and implement an approach to take with the Virginia Department of Medical Assistance Services to gain approval for this project. • Drafted the Medicaid State Plan Amendment (SPA) to focus this opportunity on RAA. • Drafted the public notice about the change in payment methodologies. 49 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESS©N / M b--soo 1 Comprehensive Revenue Recovery Solutions McKesson / MED3000 Resumes KEVIN S. COYLE, MPP, CGAR President Revenue Optimization Solutions, LLC (2013) RELEVANT PROJECT EXPERIENCE , City of New Braunfels New Braunfels Fire Department 2013 Ambulance Supplemental Payment Program Beginning work with the New Braunfels Fire Department (NBFD). Working with NBFD so they can become an approved provider in the Texas Ambulance Supplemental Payment Program (ASPP). Anticipated approval in November 2013. Also providing cost allocation modeling, and cost reporting services to help optimize revenue and mitigate audit risk from ASPP. Shouldering the administrative duties related to the provider approval, and taking the lead in answering any questions from the Texas Medicaid Agency (Health and Human Services Commission (HHSC)) related to NBFD's eligibility for the ASPP. Implementing conservative approaches in the cost allocation modeling and cost reporting phases of project. Will work closely with NBFD to identify 2 CFR 225 eligible costs and to develop appropriate allocation methodologies for cost centers that support both fire and EMS operations. City of Mesquite Mesquite Fire Department 2013 Ambulance Supplemental Payment Program In conjunction with McKesson / MED3000, beginning work with Mesquite Fire Department (MFD) to implement and manage the City's ASPP project. Leading the City's efforts to become an approved provider in the ASPP and conducting the modeling and cost reporting associated with the program. Anticipated ASPP approval for MFD in November 2013. Leading the approval, cost allocation modeling, and cost reporting aspects of the project. The project will include the implementation of audit risk mitigation strategies given the added HHSC scrutiny of ambulance services providers in the greater Dallas area. Will work closely with MFD and city finance staff on the project. 50 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSON M�r=3aaa Comprehensive Revenue Recovery Solutions City of Lancaster Lancaster Fire Department 2013 Ambulance Supplemental Payment Program In conjunction with McKesson / MED3000, beginning work with the Lancaster Fire Department (LFD) to manage the department's ASPP project. Leading the approval, cost allocation modeling, and cost reporting aspects of the project taking into consideration the somewhat unique mutual aid transports with sister cities in southern Dallas County. LFD anticipates ASPP approval in November 2013. Utilizing dispatch and staffing complements to develop a model to calculate charges that are more accurate. Washington County Washington County Emergency Medical Services Department 2013 Ambulance Supplemental Payment Program Beginning work with Washington County EMS (in Brenham) to get them approved for the ASPP, and to design and implement cost allocation modeling and cost reporting aspects of the ASPP. As a third service provider, will look at multiple cost centers outside of the department to make sure all allocable costs are included in the cost allocation model from both city and county accounts. Will work closely with Washington County EMS and County finance staff to implement this project. Anticipated ASPP provider approval in November 2013. City of Austin Austin /Travis County Emergency Medical Services Department 2005 -2012 Ambulance Supplemental Payment Program Worked with Austin / Travis County EMS (ATCEMS) while at Public Consulting Group, Inc. (PCG) to design, gain approval for, and implement the ASPP. This work paved the way for not only ATCEMS, but for all other providers in Texas to generate additional revenue. ATCEMS was the first ambulance services provider in Texas to be eligible to take advantage of this supplemental payment opportunity to generate additional Medicaid revenue, and was the lead consultant working with HHSC to identify and analyze appropriate costs, determine appropriate reimbursement methodologies, calculate appropriate limits to reimbursement, design program rules, and develop a cost report for use in the ASPP. Worked with HHSC to submit State Plan Amendment data, and provided expertise during the questioning from the Centers for Medicare and Medicaid Services (CMS). 51 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 M5KESS0N / M c Dm00C> Comprehensive Revenue Recovery Solutions Montgomery County Hospital District 2008-2013 Ambulance Supplemental Payment Program While at PCG, worked with the Montgomery County Hospital District (MCHD), in Conroe, to design, gain approval for, and implement processes and strategies to optimize revenue as part of the ASPP. Assessed multiple supplemental payment methodologies, determined reimbursement amounts, identified 2 CFR 225 eligible costs, and determined appropriate cost allocations to optimize revenue for MCHD. Also prepared fiscal impact and organizational analyses, and a draft cost report to present to HHSC as part of the approval process. Worked closely with MCHD on allocations across divisions while taking into account the indigent health care program. Area Metropolitan Ambulance Authority — MedStar (Tarrant County, TX) 2009-2013 Ambulance Supplemental Payment Program Worked with MedStar while at PCG to design, gain approval for, and implement the ASPP for ambulance related costs. MedStar is a governmental entity that operates like a private provider; therefore, there were unique issues surrounding participation in the ASPP. Assessed multiple supplemental payment methodologies, identified eligible costs, determined appropriate cost allocations, and prepared an organizational analysis, fiscal impact study, and draft cost report for HHSC so MedStar could become an approved provider under the ASPP. Worked closely with MedStar and HHSC on the organization's approval, and in analyzing service level detail, third party payments, and transport information to optimize the program for MedStar. City of San Antonio San Antonio Fire Department 2010-2013 Ambulance Supplemental Payment Program Under the employ of PCG, worked with the San Antonio Fire Department (SAFD) to design, gain approval for, and implement the ASPP for the City. Worked closely with SAFD to identify 2 CFR 225 eligible costs and to develop appropriate allocation methodologies for cost centers that support both fire and EMS operations. Also worked with SAFD to account for all department - wide costs and then allocate costs, either directly or through allocation methods, into medical or fire cost centers. Worked with SAFD to design an appropriate cost allocation methodology to segregate the fire suppression related costs from the fire medical related costs. From there, determined the amount of pre - hospital stabilization costs within the department for inclusion in annual cost report. 52 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSON / M r= :5c>oo Comprehensive Revenue Recovery Solutions City of Houston Houston Fire Department 2010-2013 Ambulance Supplemental Payment Program Provided the Houston Fire Department (HFD) with Medicaid supplemental payment program services while at PCG, to help HFD receive enhanced Medicaid funding from the Texas ASPP. Services included designing, gaining approval for, and implementing an appropriate ASPP for HFD. Analyzed the feasibility of the ASPP for HFD, drafted and prepared the necessary materials for the approval process with HHSC, and provided the necessary supporting information and materials that HHSC needed for the approval process. Reviewed expenditure, charge, revenue, and other information, and prepared appropriate allocation methodologies for HHSC's approval. Worked closely with HFD to identify 2 CFR 225 eligible costs and to develop appropriate allocations for cost centers that support both fire and EMS operations. Galveston County Health District 2010-2013 Ambulance Supplemental Payment Program Worked with the Galveston County Health District (GCHD) while at PCG to design and implement a viable ASPP for the County. Assessed multiple supplemental payment methodologies, determined the amount of reimbursement, identified 2 CFR 225 eligible costs, determined appropriate cost allocation methods, and prepared the organizational analysis, fiscal impact study, and draft cost report to present to HHSC so GCHD could become an approved provider under the ASPP. Worked closely with GCHD staff on the HHSC approval, cost determination for EMS vs. Health District, and on determining appropriate allocation methodologies. City of Dallas Dallas Fire Rescue Department 2011-2013 Ambulance Supplemental Payment Program Provided the Dallas Fire- Rescue Department (DFR) with supplemental payment program services while with PCG. Designed, gained approval for, and implemented the ASPP for DFR. Helped DFR design models that accounted for 2 CFR 225 eligible costs and to develop appropriate allocation methodologies for cost centers that support both fire and EMS operations. Worked with the City and DFR to identify indirect costs that could be included into the cost reporting process. Reviewed expenditure, charge, revenue, and other information necessary to prepare and submit appropriate approval, allocation methodologies, and models to HHSC. 53 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MWESSON / "VI E D:5aoo Comprehensive Revenue Recovery Solutions City of Boston Boston Public Health Commission 2000-2013 Medicaid Supplemental Payment Program While at PCG, worked with the Boston Public Health Commission (BPHC) to design and gain approval for a Medicaid supplemental payment program for ambulance related costs under the Boston EMS division. Assessed multiple supplemental payment methodologies for Boston EMS and worked with BPHC to determine the amount of payment, 2 CFR 225 eligible costs, and appropriate cost allocations. Also designed a draft cost report to present to the Massachusetts Executive Office of Health and Human Services ( EOHHS). Worked closely with EOHHS and BPHC to obtain approval for BPHC and other ambulance services providers in Massachusetts to implement an EMS supplemental payment program. District of Columbia Department of Health Care Finance & Fire and Emergency Medical Services 2012-2013 Rate and Supplemental Payment Services Worked with the Department of Health Care Finance (DHCF- Medicaid Agency) while at PCG, to develop prospective rates for the Fire and Emergency Medical Services Department (F &EMS). Developed rate model to review over $200 million in expenditures and identify 2 CFR 225 eligible costs from the Department and the District, and allocated those costs to the specific services provided by F &EMS to develop rates that the Department will charge for services. Developed cost allocation methods that properly represent the level of effort of F &EMS personnel providing services, given the unique nature of service delivery for F &EMS. The final rates represent cost -based principals that will allow F &EMS to recover more of the cost of doing business within the District. Harris County Harris County Auditor's Office 2006-2012 Cost Allocation Plan Review and Preparation Led PCG's efforts to assist Harris County (TX) review cost allocation methodologies, and prepare annual Full Cost and 2 CFR 225 cost allocation plans. The project entailed reviewing over $2 billion in central services agency costs and allocating appropriate costs to programmatic areas and end users. Also reviewed elements of cost from all County departments in an effort to identify potential opportunities for Harris County to improve rate structures for departments. Worked closely with the Harris County Auditor's Office, Management Services, and other central service agencies. 54 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSON / in3000 Comprehensive Revenue Recovery Solutions State of Louisiana Department of Health and Hospitals 2007-2010 Cost Allocation Plan Services While at PCG, worked with the Department of Health and Hospitals (Medicaid Agency) to review and rewrite the department's cost allocation plan. Led interviews of all offices and units in DHH to review functions and current methods of cost allocation. Assisted DHH with determining the appropriateness of each method, developing changes and modifications, and making changes to internal practices to support new allocation methods. Also assisted DHH with the negotiation of the plan. Los Angeles County Department of Public Health, Substance Abuse Prevention and Control 2010-2011 Cost Analysis and Rate Study Worked with Los Angeles County Substance Abuse Prevention and Control (SAPC) while at PCG to identify and allocate appropriate costs as part of a rate study that addresses: 1) The actual costs associated with providing adult outpatient and residential substance abuse program services within the County; 2) Rates for adult outpatient and residential substance abuse services, and, 3) Service descriptions for SAPC. Developed a comprehensive plan leveraging a web -based cost reporting tool to analyze data. State of New Mexico Department of Human Services, Medical Assistance Division 2013 Medicaid Audit Services While at PCG, was a lead Medicaid auditor for the Division of Medical Assistance (MAD) looking into billing irregularities with behavioral health providers in central and southern New Mexico. Managed audit teams looking at billing, financial, and patient care records to determine if fraud existed. Areas of review included provider billing systems, processes for billing entry and coding, staff credentialing, accounting processes and entry, oversight and control, and patient record maintenance. State of Utah Executive Appropriations Committee 2010-2011 Feasibility Study and Cost Analysis Conducted a feasibility study while at PCG to determine if a private entity could operate a forensic unit within the state hospital, or two semi - secure units within the state developmental center. Conducted a cost analysis of all units to develop baselines and comparative models. 55 City of Bryan 1. October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESS0N / M a L :5aoo Comprehensive Revenue Recovery Solutions Also developed per diem rates for specific components of cost for modeling purposes and feasibility analysis. Worked closely with facilities on cost identification and baseline model development. State of Texas Health and Human Services Commission and State Comptroller 2004-2008 Statewide Revenue Maximization Project While at PCG, identified and implemented revenue enhancement initiatives across all health and human services agencies. Primary focus was on improving cost reimbursement and financial strength of state and local public health, mental health, and hospital organizations. State of North Carolina Division of Public Health 2003-2012 Revenue Enhancement Services Designed and implemented a statewide Medicaid Administrative Claiming program for the Division of Public Health while at PCG. Designed and implemented the program for eighty -five county -based local public health departments. Also worked with the local health departments so they understood cost reporting processes, claiming methodologies, and cost reporting guidelines. Worked with the Medicaid agency to gain approval for allowable activities that improved revenue generation. PRO ESSIONAI_ �KGROUND. Public Consulting Group - 2000 — 2013 Austin, Texas Senior Consultant Was the lead consultant on multiple revenue enhancement projects at PCG and developed the firm's ambulance services product line before leaving to start my own firm in 2013. Developed subject matter expertise in ambulance services revenue enhancement and Medicaid reimbursement initiatives, including Medicaid supplemental payment programs. Was the lead consultant working with clients to develop the methodologies and rules with the Texas Medicaid agency for the Texas Ambulance Supplemental Payment Program. City of Newton Department of Planning and Development -1998 - 2000 Newton, Massachusetts Community Development Planner 56 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 EXHIBIT 3 MSKESSON / M E :!soo s Comprehensive Revenue Recovery Solutions Assisted in the implementation and administration of the City's federally funded Community Development Block Grant (CDBG) Program prior to working at PCG. Conducted cost/benefit analysis in relation to the overall grant before recommending project hierarchy. PUBLICATIONS Medical Transportation Program Business Process Review Final Report. With Miranda Hoff, and Kandice Marquardt. Prepared for Texas Health and Human Services Commission. August 2009. The report is published at http://www.hhsc.state.tx.us/reports/Aug252009—MTPReport.pdf. Service Delivery Design Report. With Cathy Anderson and Mark Patton. Prepared for Texas Department of Aging and Disability Services. April 2006. EDUCATION Duke University Sanford School of Public Policy Master's Degree in Public Policy (MPP) Villanova University Bachelor of Science in Economics PROFESSIONAL ASSOCIATIONS Texas Municipal League —Associate Member Healthcare Financial Management Assoc. (HFMA) — Member CERTIFICATIONS Certificate in Developing Indirect Cost Rate Proposal and Cost Allocation Plan under OMB Circular A -87 (2 CFR 225). 2001 — present. Training Certification from Texas HHSC to prepare Texas Ambulance Supplemental Payment Program cost reports. 2012 — present. Certificate in Government Accounting and Reporting. NASBA/GASB Compliant. 2013 — present. Certificate in Government Auditing Standards. NASBA/GASB Compliant. (In process). 57 1 City of Bryan October 24, 2013 McKesson / MED3000 Response to RFP # 14 -003 Kerri Estop Credentialing Supervisor MED3000 Credentialing Team EXHIBIT 3 Bryan ASPP Team Glenn Goodpaster Senior VP . .......... Carl Reedy Regional Manager Jason Bonham Texas Regional Manager Kevin Coyle Bryan Project Manager EXHIBIT 3 CERTIFICATION and AUTHORIZATION: The undersigned certifies that they have fully read RFP # 14 -003 and understands this "Request for Proposal" and has full knowledge of the scope, quantity, and quality of the services to be furnished and intends to adhere to the provisions described herein. The undersigned also affirms that they are duly authorized to submit this proposal, that this proposal has not been prepared in collusion with any other Service Provider, and that the contents of this proposal have not been communicated to any other Service Provider prior to the official opening of this proposal. Additionally, the undersigned affirms that the Service Provider is willing to sign the enclosed Exhibit A, Standard Form of Agreement Contract. Signed By: Title: lj t`'taA*C- ;V1 t1 *w *-5t,r- Typed Name: �jk ..1 l•o w.. Company Name: to t3 00 b Phone No.: 't3 %- Z`11- ZT %2 Fax No.: 93"7 Z9'1 Email: S�tve- _.Cu11�.,,w� h,E►�3o��.ecw� Bid Address: Sv aN,— l o v H S -' P.O. Box or Street City State Zip Order Address: -J c P.O. Box or Street City State Zip Remit Address: �w P.O. Box or Street City State Zip Federal Tax ID No.: 23 - zci 3CV%LA -% Date: 10 121 END OF RFP #14 -003 RFP # 14 - 003 - Page 16 of 23 EXHIBIT 3 BUSINESS SUPPORT SERVICES AGREEMENT This Business Support Services Agreement ( "Agreement') is effective as of the last date in the signature block below (the "Effective Date "), by and between MED3000, Inc., a Delaware corporation, whose mailing address is 680 Andersen Drive, Foster Plaza 10, Pittsburgh, Pennsylvania, 15220 ( "MED3000 "), and whose mailing address is ( "Client "). RECITALS Client operates an Emergency Medical Services Squad ( "EMS Squad") that provides professional ambulance services. MED3000 is a subsidiary of MED3000 Group, Inc., a Delaware corporation ( "MED3000 Group "), a national healthcare management and technology company. MED3000 is in the business of providing business support services to EMS Squads, provider networks, hospitals, physician groups and other healthcare providers. Client desires to retain MED3000 to provide business support services required by Client in accordance with the terms of this Agreement. STATEMENT OF AGREEMENT In consideration of the promises and mutual covenants contained herein and other valuable consideration, the receipt, adequacy and legal sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound, now agree as follows: Article 1— Obligations of MED3000. Section 1.1. Services. Client retains MED3000 to provide business support, billing, and reimbursement management services set forth on Exhibit A attached hereto (collectively, the "Services ") to Client. Client agrees that MED3000 is specifically authorized to engage MED3000 Group or one or more of its subsidiaries to perform the Services hereunder at no additional cost to Client. Section 1.2. Liabilities. MED3000 is not responsible for any Client expenses or liabilities except as specifically provided for in this Agreement. Client is responsible for paying all expenses and liabilities relating to Client. Section 1.3. Authority. Client grants MED3000 the authority and power to carry out its obligations under this Agreement. NMD3000 shall provide the Services in accordance with applicable legal and regulatory requirements throughout the term of this Agreement. Section 1.4. Limitations. MED3000 shall employ or retain such personnel /employees as it deems necessary to perform the Services. Client recognizes that the Services provided by such personnel /employees may be part-time in nature and that the personnel /employees serving in these capacities may serve in other capacities as well. MED3000 may propose that certain titles be conferred upon the employees in performing the duties under this Agreement. MED3000 retains the right to replace any personnel/employee who is performing Services hereunder with another person without causing a breach or termination of this Agreement. EXHIBIT 3 MED3000 may subcontract certain Services to support its provision of the Services under this Agreement, including but not limited to electronic data interchange and printing of statements, without Client's approval; The Client shall receive advanced written notice in the event MED3000 subcontracts out the billing and reimbursement management Services. Article 2 - Obligations of Client. Section 2.1. Agent. Client appoints MED3000 as its lawful attorney -in -fact solely for the purpose of carrying out MED3000's obligations set forth in this Agreement. Notwithstanding anything to the contrary herein, the parties understand, acknowledge, and agree that neither MED3000 nor any affiliate or agent of MED3000 has the ability to (a) receive payments of benefits assigned to Client directly from any payor pursuant to a power -of- attorney (as defined in Section 3060.10(A) of Medicare Carrier's Manual) or any other arrangement, or (b) transfer any payment of benefits assigned to Client to MED3000, its affiliates, or agents without the payment first passing through the Client's control. Section 2.2. Professional Services. Notwithstanding the authority granted to MED3000 herein, Client shall retain the authority to render Emergency Medical Services ( "EMS ") and direct the medical and ethical aspects of Client's EMS practices and shall retain control of all business affairs that may not legally be carried on by persons other than those duly licensed to practice medicine or surgery in the state or states where such persons practice. Furthermore, the parties acknowledge that only Client may render EMS to its patients through its employees and contractors who are duly licensed or otherwise legally authorized to render professional EMS within the state or states in which such persons practice. MED3000 agrees that it shall not act pursuant to this Agreement in a manner that interferes with the professional judgment of Client's EMS personnel. Article 3 - Mutual Obligations. Section 3.1. Cooperation. Client's EMS personnel shall execute all documents and take all actions necessary to allow MED3000 to perform its duties under this Agreement. Section 3.2. Business Associate. In compliance with their respective legal duties regarding the privacy and security of protected health information, MED3000 and Client agree to the obligations set forth in Exhibit C attached hereto. Article 4 — Compensation. Section 4.1. Service Fees. Client shall pay MED3000 service fees as set forth in Exhibit B, attached hereto, for the Services provided in accordance with this Agreement. Section 4.2. Reimbursement. Client shall reimburse MED3000 for any additional expenses not contemplated under the terms of this Agreement that MED3000 incurs in connection with the request of Client. EXHIBIT 3 Section 4.3. Payment. Section 4.3.1. Monthly Invoice. MED3OOO shall provide Client with a monthly invoice indicating the total amounts collected and paid into Client's depository account in the previous month and the amount of service fees due to MED3OOO based on the actual amounts collected. Client shall pay the service fee to MED3OOO within thirty (30) days from the date of receipt of the invoice. Section 4.3.2. Sus2�jnsion of Services. MED3OOO reserves the right to suspend provision of its Services (a) 15 days after notice to Client of nonpayment of any fees owed to MED3OOO under this Agreement that are 30 days or more past due, where such breach remains uncured, (b) if MED3000 determines in its reasonable discretion that such suspension is necessary to comply with any applicable law, regulation or order of any governmental authority, or (c) immediately if MED3OOO determines in its reasonable business judgment that the performance, integrity or security of a MED3000 Service is being adversely impacted or in danger of being compromised, as a result of Client's access. Article 5 – Term. Section 5.1. Term. The initial term of this Agreement shall commence on this day of , 20_ and shall terminate on this day of 20—. Unless earlier terminated as provided for in this Agreement, the term of this Agreement shall automatically extend for additional one (1) year terms, unless either party delivers to the other party, not less than ninety (90) days prior to the expiration of the preceding term, written notice of that party's intent not to extend the term of this Agreement. Article 6 – Termination. Section 6.1. Termination. MED3OOO or Client may terminate this Agreement after timely notice to the other party, if the other party: (a) materially breaches this Agreement and fails to remedy, or fails to commence reasonable efforts to remedy, such breach within 60 days after receiving notice of the breach from the terminating party, (b) infringes the terminating party's intellectual property rights and fails to remedy, or fails to commence reasonable efforts to remedy, such breach within ten days after receiving notice of the breach from the terminating party, (c) materially breaches this Agreement in a manner that cannot be remedied, or (d) commences dissolution proceedings or ceases to operate in the ordinary course of business. In the event that MED3OOO is permitted to terminate this Agreement, MED3OOO may, at its sole option, elect to terminate any combination of other then - effective agreement with Client. Except as otherwise provided above, termination of this Agreement will not affect the parties' rights and obligations under any other agreement executed by the parties prior or subsequent to such termination, and all such other agreements will remain in full force and effect unless and until their respective expiration or termination in accordance with their contractual terms. Section 6.2. Effect of Termination. In the event of termination of this Agreement in accordance with Section 6 or non - renewal, all rights, duties and obligations of both parties shall cease effect as of the date of termination, except as otherwise provided in this Section 6.2. Upon termination, Client shall allow MED3OOO to continue providing Services for ninety (90) days following the EXHIBIT 3 effective date of termination (the "Post- Termination Period "). During the Post - Termination Period, MED3000 shall continue to receive service fees in the manner set forth in Section 4. After the expiration of the Post - Termination Period, MED3000 will deliver to Client a copy of the most current file backup in a printed and/or electronic media copy as agreed upon in writing by both parties, after payment of all outstanding invoices by Client. Client shall be responsible for the programming, debugging, testing, computer operations, and alternative media costs if a file is requested in a format other than the industry standard formats (i.e. ASCI or comma delimited). Client shall also be responsible for the shipping cost of Client's billing records in MED3000's possession at the end of the Post - Termination Period that are forwarded to any destination other than Client's address. Furthermore, following the termination of this Agreement and the expiration of the Post - Termination Period, the parties shall remain bound by the restrictions set forth in Section 7. Section 7 - Relationship of Parties. Section 7.1. Independent Contractor. Each party is an independent contractor of the other party. This Agreement will not be construed as constituting a relationship of employment, agency, partnership, joint venture or any other form of legal association. Neither party has any power to bind the other party or to assume or to create any obligation or responsibility on behalf of the other party or in the other party's name. Section 7.2. Warranties. MED3000 warrants it will perform all Services in accordance with reasonable industry practices. The provisions of this Agreement are intended to state all of the rights and responsibilities between MED3000 and Client, and they take the place of and supersede all warranties, express or implied whether of merchantability, fitness or otherwise. With the exception of the above warranty, MED3000 makes and Client receives no warranty, express or implied. All warranties of merchantability and fitness for a particular purpose are hereby expressly excluded. Section 7.3. Computer Systems. All programs, documentation, specifications, tapes, instruction manuals and similar material developed or used by MED3000 in connection with this Agreement (collectively, "Computer Systems ") are and shall remain the sole and exclusive property of MED3000. Nothing in this Agreement shall be construed as a license or transfer of such Computer Systems to Client. Upon termination of this Agreement for any reason, MED3000 shall have the right to retain all such Computer Systems and Client shall, upon the request of MED3000, deliver all such Computer Systems in its possession to MED3000. MED3000 shall use commercially reasonable efforts to cooperate in supplying source data to Client in the event Client transfers its business support function to another contractor. Section 7.4. Confidentiality 7.4.1. Use and Disclosure of Confidential Information. Each party may disclose to the other party Confidential Information. Except as expressly permitted by this Agreement, neither party will: (a) disclose the other party's Confidential Information except (i) to its employees or contractors who have a need to know and are bound by confidentiality terms no less restrictive than those contained in this Section 7.4., or (ii) to the extent required by law EXHIBIT 3 following prompt notice of such obligation to the other parry, or (b) use the other party's Confidential Information for any purpose other than performing its obligations under this Agreement. Each party will use all reasonable care in handling and securing the other party's Confidential Information and will employ all security measures used for its own proprietary information of similar nature. Following the termination of this Agreement, each party will, upon written request, return or destroy all of the other party's tangible Confidential Information in its possession and will promptly certify in writing to the other party that it has done so. 7.4.2. Period of Confidentiality. The restrictions on use, disclosure and reproduction of Confidential Information set forth in Section 7.4 will, with respect to Confidential Information that constitutes a "trade secret" (as that term is defined under applicable law), be perpetual, and will, with respect to other Confidential Information, remain in full force and effect during the term of this Agreement and for three years following the termination of this Agreement. 7.4.3. In Relief. The parties agree that the breach, or threatened breach, of any provision of this Section 7.4 may cause irreparable harm without adequate remedy at law. Upon any such breach or threatened breach, a party will be entitled to injunctive relief to prevent the other party from commencing or continuing any action constituting such breach, without having to post a bond or other security and without having to prove the inadequacy of other available remedies. Nothing in this Section 7.4.3 will limit any other remedy available to either party. 7.4.4. Retained Rights. Client's rights in the Services will be limited to those expressly granted in this Agreement. MED3000 and its suppliers reserve all intellectual property rights not expressly granted to Client. All changes, modifications, improvements or new modules made or developed with regard to the Services, whether or not (a) made or developed at Client's request, (b) made or developed in cooperation with Client, or (c) made or developed by Client, will be solely owned by MED3000 or its suppliers. MED3000 retains title to all material, originated or prepared for the Client under this Agreement. Client is granted a license to use such materials in accordance with this Agreement. Section 7.5. Covenant not to Employ. During the term of the Agreement, and until the two year anniversary date of the effective date of termination of this Agreement, Client covenants and agrees it will not, without the advance written consent of MED3000, directly or indirectly, (i) induce or attempt to induce any MED3000 employee to terminate employment with MED3000; (ii) hire or participate in the hiring or interviewing of any MED3000 employee; (iii) provide names or other information about any MED3000 employee for the purpose of assisting others to hire such employee; nor (iv) provide Confidential Information to a MED3000 employee about MED3000 or any entity affiliated with MED3000 for the purpose of assisting that MED3000 employee in finding employment with such entity for EMS billing services. For purposes of this paragraph, a MED3000 employee means any person who is a current MED3000 employee or was employed by MED3000 within one (1) year of the date of any action that alleges a violation of this Section 7.5. EXHIBIT 3 Section 7.6. Records. If required by Section 952 of the Omnibus Reconciliation Act of 1980, 42 U.S.C. Section 1395x(I)(i)(ii), for a period of four years after the Services are furnished, the parties agree that they, and each subcontractor who provides Services under this Agreement, will make available, upon the written request of the Secretary of Health and Human Services, the Comptroller General, or their representatives, this Agreement and such books, documents, and records as may be necessary to verify the nature and extent of any combination of Services and Products with an aggregate value or cost of $10,000 or more over a twelve month period. Section 7.7. Limitation of Liability. CLIENT AGREES THAT MED30O0 SHALL NOT BE LIABLE FOR ANY CLAIMS OR DAMAGES CAUSED IN WHOLE OR IN PART BY FACTORS NOT WITHIN THE DIRECT CONTROL OF MED3O0O, INCLUDING BUT NOT LIMITED TO THE FAILURE OF THIRD PARTY SERVICE PROVIDERS TO ADEQUATELY PROVIDE THE SERVICES. MED3O0O SHALL HAVE NO LIABILITY TO CLIENT OR ANY THIRD PARTY FOR SPECIAL, INDIRECT, CONSEQUENTIAL, EXEMPLARY, OR INCIDENTAL DAMAGES OR FOR ANY DAMAGES WHATSOEVER RESULTING FROM LOSS OF USE OR PROFITS, ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH THIS AGREEMENT, EVEN IF IT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT, IN NO EVENT SHALL MED3O00 BE LIABLE IN THE AGGREGATE FOR ANY CLAIMS OR DAMAGES IN AN AMOUNT EXCEEDING THE AMOUNTS PAID BY CLIENT FOR SERVICES HEREUNDER DURING THE TWELVE (12) MONTHS IMMEDIATELY PRECEDING SUCH CLAIM OR DAMAGES. Section 7.8. Exclusivity. During the term of this Agreement Client shall not directly or indirectly contact an entity or person for the purpose of soliciting such entity or person to enter into a contract or arrange to receive any of the Services as set forth in this Agreement or any services substantially similar to the Services from any entity or person other than MED3000 unless agreed upon in writing by MED30O0, except that Client shall be entitled to solicit bids from other suppliers of Services within 180 days of expiration of any term of this Agreement. Section 8 — Miscellaneous. Section 8.1. Notices. All notices relating to the parties' legal rights and remedies under this Agreement will be provided in writing and will reference this Agreement. Such notices will be deemed given if sent by: (a) postage prepaid registered or certified U.S. Post mail, then five working days after sending; or (b) commercial courier, then at the time of receipt confirmed by the recipient to the courier on delivery. All notices to Client will be sent to its address set forth on the cover page hereto, or to such other address as may be designated by Client by notice to MED3000. Section 8.2. Force Maieure. Except as otherwise provided, neither party will be responsible for or in breach due to delays or failures to perform resulting either directly or indirectly from any cause beyond the control of the delaying or non - performing party, including but not limited to, acts of God, fires, floods, strikes, lockouts, labor controversies (beyond the control of the delaying or non - performing party), civil disturbances, acts of war, governmental restrictions, EXHIBIT 3 shortages or inability to obtain adequate supplies or transportation or transmission facilities (beyond the control of the delaying or non - performing party), or other similar circumstances. In the event of delay in performance due to any such cause, the time for performance will be extended for a period of time reasonably necessary to overcome the effect of such delay. Section 8.3. Conflicts. The provisions of this Agreement shall govern when there is any conflict with the provisions of any purchase order or other document of Client relating to the Services. Section 8.4. Governing Law. This Agreement, and all rights and obligations of the parties hereunder, shall be construed and governed by the laws of the State of Georgia, without regard to its conflicts of laws provisions. Section 8.5. Severability. If any part of a provision of this Agreement is found illegal or unenforceable, it will be enforced to the maximum extent permissible, and the legality and enforceability of the remainder of that provision and all other provisions of this Agreement and will not be affected. Section 8.6. Descriptive Headings and Subheadings. Both parties understand that the headings and subheadings used in this Agreement are for descriptive and/or informational purposes only. Section 8.7. Waiver. No consent or waiver, whether expressed or implied, by either party to or of any breach under this Agreement shall be construed as a consent or waiver to or of any breach of the same or any other obligation. Section 8.8. Final Understanding and Modifications. This Agreement represents the entire and integrated agreement of the parties, and supersedes all prior negotiations, representations, and/or agreements, whether written or oral. Section 8.9 Assignment and Subcontracts. Client may assign this Agreement with at least 60 days' prior written notice to MED3000, so long as Client remains secondarily liable for any and all executory obligations under this Agreement. MED3000 may, upon notice to Client, assign this Agreement to any MED3000 affiliate for any reason, or to any other entity as the result of a transfer of all or substantially all of MED3000's assets or capital stock or of any other corporate reorganization. MED3000 may subcontract its obligations under this Agreement. Section 8.10. Amendments, Waiver. This Agreement may not be modified, nor shall any provision hereof be waived or amended, except by written addendum to this Agreement, duly signed by authorized representatives of the parties. Section 8.11. No Third Party Beneficiaries. Nothing express or implied in this Agreement is intended to confer, nor shall anything herein confer, upon any person other than the parties and the respective successors or assigns of the parties, any rights, remedies, obligations or liabilities whatsoever. Section 8.12. Compliance with Law. The obligations of MED3000 pursuant to this Agreement EXHIBIT 3 shall be subject to any limitations or restrictions which may be imposed by law or regulation, and MED3000 may suspend any or all obligations hereunder in the event that it reasonably determines, upon advice of counsel, that the performance of any obligation pursuant to this Agreement may contravene applicable law or regulation, the effect of which would be to have a material adverse effect on the business, financial condition, or operations of MED3000 or any subsidiary or affiliate of MED3000 Group. Section 8.13. Material Changes; Periodic Review. Notwithstanding anything to the contrary in this Agreement, in the event (i) a significant change or amendment to any regulation, law, policy or procedure, (ii) any legal or ethical rule or regulation is promulgated or modified, or (iii) any administrative ruling or judicial interpretation is issued or modified that prohibits any act or course of conduct contemplated by this Agreement, or which materially and adversely affects the ability of MED3000 to provide Services hereunder or imposes onerous financial or other burdens on MED3000's provision of Services hereunder, an amendment or modification to this Agreement shall be negotiated in good faith. To the maximum extent possible, any such amendment shall preserve the underlying economic and financial arrangements between Client and MED3000. Section 8.14. Agreement Construction. This Agreement shall not be presumptively construed for or against either parry. The parties may execute this Agreement in one or more counterparts, each of which will be deemed an original and one and the same instrument. [remainder of page intentionally left blank] EXHIBIT 3 IN WITNESS WHEREOF the parties hereto have caused this Business Support Services Agreement to be executed by their respective duly authorized representatives on the date first above written. MED3000, Inc. Address: 680 Andersen Drive, Foster Plaza 10 Pittsburgh, PA 15220 (Client) Address: Signed Signed Name Name Title Title Date Date EXHIBIT 3 BUSINESS SUPPORT SERVICES AGREEMENT EXHIBIT A OPERATING POLICIES MED3000 shall have managerial responsibilities over all business support services as they relate to the billing of EMS provided by Client, subject to Client's ultimate control. In order for MED3000 to provide the necessary business support services on behalf of Client, the following operating policies shall be used with respect to Client's Emergency Medical Services Squad: Billing Responsibilities. MED3000 shall be responsible for billing for all EMS provided by Client. MED3000 shall be responsible for implementing and providing the on -going support needed to support the billing and collection activities required by Client. MED3000 shall provide those billing and collection services that are customarily necessary for an EMS Squad, including but not limited, to the following items: 1. Process all demographic and charge information entered into the billing system based on the information provided by Client, including the schedule of EMS fees; 2. Process all required insurance forms whether submitted electronically or on hard copy. Insurance claims shall be submitted at least weekly based on the availability of information received from the Client; 3. Provide all HCFA -1500 universal claim forms needed to submit claims for EMS services provided by the Client; 4. Print and mail patient statements for accounts with patient balances greater than $5.00. Mail up to three (3) statements according to the schedule set forth by the Client, to patients for fees not reimbursed by third -party payments including deductibles, co- payments and non - covered services for which the Client maintains appropriate waiver documentation. Client shall specify if residents receive a balance due statement and if unpaid patient balance due amounts are written -off or forwarded to a collection agency for further activity. 5. Receive from Client's lockbox, notification of payment and original remittance advices, and all other billing correspondence, as appropriate; 6. Enter all remittance information, including, contractual adjustments for third -parry payers with which the Client participates (based upon an approved list provided by the Client), and submit secondary insurance claims as necessary; 7. For a period of one year, maintain a paper or electronic copy of explanation of benefit statements ( "EOBs ") received from third -party payers. At the end of one year, all EOBs will be returned to Client when requested or may be destroyed by MED3000; EXHIBIT 3 Evaluate appropriate documentation of any request by a patient, third -party, or referring physician for an adjustment to a patient's bill, and coordinate findings with Client; 9. Follow coding and billing standards as established by organizations recognized as experts in coding and billing including, but not limited to, the American Medical Association (AMA); 10. Recommend and assist Client in establishing fees for new services; 11. Provide perpetual updates to master Current Procedural Terminology (CPT) coding and descriptions, and maintain current database of ICD -9 codes and edits; and 12. Assist with designing for the Client all necessary forms, fee slips, insurance authorizations, etc., for processing. Costs of actual forms, etc. will be the responsibility of Client. Collection Responsibilities . In undertaking these responsibilities, MED3OOO shall: 1. Answer all patient and third -party payer inquiries. In some cases, additional data will be requested from Client. Responses to all patient inquiries shall be made within twenty -four (24) hours whenever possible; 2. Pay for all telephone costs for patient and third -party payer inquiries and follow -up; 3. Pursue balances with any third -party payer as follows: A. Monitor the balances and follow -up either in writing or by telephone, as appropriate, when payments are overdue. B. Monitor all payments received against anticipated payments. Discrepancies noted shall be reviewed and, when appropriate, contact will be made by telephone, in writing, or in person with the third -party payer to request claim review. C. Monitor payment patterns for each third -parry payer at least monthly to identify any third -party payer with large amounts of pending open claims. Appropriate action shall be taken with the third -party payer to expedite prompt payment. D. In the event any claim is denied by any third -party payer for reasons other than a patient's insured status, MED3OOO shall use its commercially reasonable efforts to re- submit a clean claim in a timely manner. In the event a claim is denied as a result of improper coding or other act attributable to MED3OOO, MED3OOO shall pursue a timely appeal of the denied claim. E. Follow up with the third -party payer on assigned claims based upon the appropriate strategy for working with such third -party payer. 4. Pursue balances with patients by attaching notes on statements at pre - determined intervals using language approved by Client; and EXHIBIT 3 5. Amounts due from a third -party or patient, that have not been collected after the activities described above and that have aged greater than 120 days, will be considered uncollectable. MED3000 will provide pertinent demographic and transactional detail to the Client identifying uncollectable accounts monthly. Unless otherwise instructed by the client, MED3000 will write -off the identified accounts as bad debts and will cease collection efforts associated with those accounts. Credentialing Responsibilities with Third -Party Payers. MED3000 shall be responsible for: 1. Completing all necessary paperwork and submitting applications to establish provider numbers with third -party payers for new paramedics and Emergency Medical Technicians ( "EMTs "). MED3000 has no control and cannot be held responsible for the individual timeframes or actual acceptance by payers. MED3000 will assist in follow -up activities to gain approval; and 2. Providing necessary credentialing information to new payers or updates to existing payers. Reporting Responsibilities. MED3000 shall be responsible for making periodic reports to Client on the current status of all active patient accounts. In undertaking these responsibilities, MED3000 shall: 1. Produce monthly activity and summary reports as follows: A. Fire/EMS Executive Summary - of the EMS for current month and year to date produced by: (i) Number of transports and gross charges /receipts by level of service delivered; (ii) Drop off location; and (iii)Payer Category Analysis. B. Financial Summary - of charges, write -offs and payments of the EMS for current month and year to date analyzed by: (i) Current charges and payments received; (ii) Payer Category Analysis; and (iii) Summary aging of accounts receivable and adjustments and write -offs. 2. Provide off -site back up of all active data files; and 3. Provide additional reports reasonably requested by the Client. Implementation. MED3000 shall be responsible for implementing the billing and collection services on behalf of Client. In undertaking such implementation, MED3000 shall: 1. Assign an account manager to Client who shall be responsible for the following: EXHIBIT 3 A. Act as primary contact with the personnel of Client; B. Serve as the liaison with the MED3000 employees assigned to perform services for Client; C. Communicate regularly with the key management of Client to review all activities with respect to the billing and collection services; D. Work closely with Client to ensure a smooth transition and implementation; E. Review all participating insurance agreements; and F. Establish a schedule of implementation. 2. Review both its procedures and the procedures of Client and recommend and implement approved changes for improvements of collections; and 3. Maintain knowledge about prevalent government and third -party payer regulations and guidelines to assist Client in conformance with such regulations. Responsibilities of Client. In order for MED3000 to undertake the billing and collection services, Client shall: 1. Subject to the terms of the Agreement, appoint MED3000 as its lawful attorney -in -fact for the sole purpose of billing and collecting, in the name of Client and on Client's behalf, from patients, insurance companies, Medicare, Medicaid and all other third -party payers, all charges resulting from the provision of equipment, devices and supplies provided to patients and for all services rendered to patients, including, but not limited to, technical and ancillary services and all professional medical service or EMS provided by Client. 2. Cause the personnel of Client to timely submit to MED3000 the name of the patient when available, a paper copy of the Patient Care Report or an electronic extract when available, the date of service, a description of the nature, and the extent of services provided and any supporting medical information necessary to obtain payment or reimbursement. MED3000 shall rely on the truth and accuracy of such information and shall not in any event be required to verify medical treatment information submitted to MED3000 by the Client. Furthermore, Client shall use its best efforts to procure all necessary consents to all assignments and obtain all other approvals, consents, and signatures necessary for MED3000 to collect payment for reimbursement on behalf of Client; 3. Assist MED3000 with establishing dialog with transport hospitals means to gather patient demographic and insurance data from transport hospitals when requested, or provide copies of the hospital face sheet if other means of capturing this data are not available. 4. Be solely responsible for securing or causing to be secured from or on behalf of patients EXHIBIT 3 whose accounts are covered under this Agreement, any and all necessary consents for the release of information to third parties as contemplated by this Agreement, and any and all necessary assignments of insurance benefits and benefits due from and rights to payment or reimbursement by any other third party. Client shall notify MED3000 in the event that assignment was not obtained; 5. Supply complete and accurate patient charge information; 6. Provide to MED3000 a schedule of professional fees charged for services rendered by Client's EMS Squad. MED3000 shall make revisions to the fee schedule from time to time upon at least 10 days prior written notice from Client to the effective date of any such revision. MED3000 shall continue to bill at the rates then in effect until receipt of such notice. Fee schedule revisions must include an effective date for the new charges; 7. Establish adequate controls to assure that all charges are captured, batched and reconciled with batch totals; 8. Provide all input forms; 9. Provide medical expertise regarding reimbursement of medically necessary services of Client arising from third -party payer disputes or patient inquiries; 10. Be responsible for all medical decisions concerning patient care; and 11. When refunds are necessary, write a check to MED3000's refund account for refunds to be sent to the patient or third -party payer based upon information provided by MED3000. EXHIBIT 3 TO BUSINESS SUPPORT SERVICES AGREEMENT EXHIBIT B FEES /COSTS 1. For business support services rendered under this Agreement MED3000 shall be paid a service fee equal to _% of the net revenue of Client, in accordance with Section 4 of the Agreement. Net revenue shall mean cash receipts arising from the provision of patient services and related activities less refunds. In the event that the total revenue for MED3000 in a month does not exceed $500.00, MED3000 shall be paid a minimum service fee of $500.00 for that month. 2. MED3000 shall be paid an initial set -up fee of $0.00 to establish the computer database, notify carriers of address change, complete authorizations for electronic filing, and other miscellaneous services. 3. All service fees are exclusive of all federal, state and local taxes, including sales taxes, assessed on or due in respect of any Services performed by MED3000 under the Agreement, for which taxes Client shall be solely responsible. Client shall reimburse MED3000 for all those costs and expenses of Client paid by MED3000 or any subsidiary or affiliate of MED3000 Group on behalf of Client in connection with the provision of Services hereunder. 4. There will be a charge to the Client for requests, including but not limited to, requests for special programming and non - standard reports. The cost for such requests will be determined on an individual basis and shall be reimbursed in accordance with Section 4.2 of the Agreement. EXHIBIT 3 EXHIBIT C BUSINESS ASSOCIATE AGREEMENT ( "BAA ") SECTION 1: DEFINITIONS "Breach" shall have the same meaning given to such term in 42 U.S.C. § 17921(1) and 45 C.F.R. § 164.402. "Designated Record Set" shall have the same meaning as the term "designated record set" in 45 C.F.R. § 164.501. "Electronic Health Record" shall have same meaning given to such term in 42 U.S.C. § 17921(5). "Electronic Protected Health Information" or "Electronic PHI" shall have the meaning given to such term under the Privacy Rule and the Security Rule, including, but not limited to, 45 C.F.R. § 160.103, as applied to the information that MED3000 creates, receives, maintains or transmits from or on behalf of Client. "Individual" shall have the same meaning as the term "individual" in 45 C.F.R. § 160.103 and shall include a person who qualifies as a personal representative in accordance with 45 C.F.R. § 164.502(g). "Privacy Rule" shall mean the Standards for Privacy of Individually Identifiable Health Information at 45 C.F.R. Parts 160 and 162 and Part 164, Subparts A and E. "Protected Health Information" or "PHI" shall have the same meaning as the term "protected health information" in 45 C.F.R. § 160.103, as applied to the information created or received by MED3000 from or on behalf of Client. "Required by Law" shall have the same meaning as the term "required by law" in 45 C.F.R. § 164.103. "Secretary" shall mean the Secretary of the Department of Health and Human Services or his or her designee. "Security Incident" shall have the meaning given to such term in 45 C.F.R. § 164.304, but shall not include, (a) unsuccessful attempts to penetrate computer networks or servers maintained by MED3000 and (b) immaterial incidents that occur on a routine basis, such as general "pinging" or "denial of service" attacks. "Security Rule" shall mean the Security Standards at 45 C.F.R. Parts 160 and 162 and Part 164, Subparts A and C. "Unsecured PHI" shall have the same meaning given to such term under 42 U.S.C. § 17931(h), and guidance promulgated thereunder. EXHIBIT 3 Capitalized Terms. Capitalized terms used in this BAA and not otherwise defined herein shall have the meanings set forth in the Privacy Rule, the Security Rule, and the HITECH Act, which definitions are incorporated in this BAA by reference. SECTION 2: PERMITTED USES AND DISCLOSURES OF PHI 2.1 Uses and Disclosures of PHI Pursuant to Agreement. Except as otherwise limited in this BAA, MED3000 may use or disclose PHI to perform functions, activities or services for, or on behalf of, Client as specified in the Agreement, provided that such use or disclosure would not violate the Privacy Rule if done by Client. 2.2 Permitted Uses of PHI by MED3000. Except as otherwise limited in this BAA, MED3000 may use PHI for the proper management and administration of MED3000 or to carry out the legal responsibilities of MED3000. 2.3 Permitted Disclosures of PHI by MED3000. Except as otherwise limited in this BAA, MED3000 may disclose PHI for the proper management and administration of MED3000, provided that the disclosures are Required by Law, or MED3000 obtains reasonable assurances from the person to whom the information is disclosed that it will remain confidential and will be used or further disclosed only as Required by Law or for the purpose for which it was disclosed to the person (which purpose must be consistent with the limitations imposed upon MED3000 pursuant to this BAA), and that the person agrees to notify MED3000 of any instances of which it is aware in which the confidentiality of the information has been breached. MED3000 may use PHI to report violations of law to appropriate federal and state authorities, consistent with 45 C.F.R. § 164.5020)(1). 2.4 Data Aggre ag tion. Except as otherwise limited in this BAA, MED3000 may use PHI to provide Data Aggregation services as permitted by 45 C.F.R. § 164.504(e)(2)(i)(B), including use of PHI for statistical compilations, reports, research and all other purposes allowed under applicable law. 2.5 De- identified Data. MED3000 may create de- identified PHI in accordance with the standards set forth in 45 C.F.R. § 164.514(b) and may use or disclose such de- identified data for any purpose. 2.6 Disclosure Pursuant to Authorization. Without limiting the generality of the foregoing, MED3000 reserves the right at its sole discretion to disclose an Individual's PHI in response to and in accordance with a valid authorization executed by such individual that meets the requirements set forth in the Privacy Rule. SECTION 3: OBLIGATIONS OF MED3000 3.1 Appropriate Safeguards. 3.1.1 Privacy of PHI. MED3000 will develop, implement, maintain, and use appropriate safeguards to prevent use or disclosure of PHI other than as provided for by the Agreement and this BAA. The safeguards must reasonably protect PHI from any intentional or EXHIBIT 3 unintentional use or disclosure in violation of the Privacy Rule and this BAA, and limit incidental uses or disclosures made pursuant to a use or disclosure otherwise permitted by this BAA. 3.1.2. Security of PHI. MED3000 will develop, implement, maintain, and use appropriate administrative, physical and technical safeguards that reasonably and appropriately protect the confidentiality, integrity and availability of Electronic PHI, as required by the Security Rule. Commencing on February 17, 2010, MED3000 will comply with the provisions of 45 C.F.R. §§ 164.308, 164.310, 164.312 and 164.316 relating to implementation of administrative, physical and technical safeguards with respect to Electronic PHI in the same manner that such provisions apply to a HIPAA covered entity. MED3000 will also comply with any additional security requirements contained in the HITECH Act that are applicable to a business associate. 3.2 Reporting of f Improper Use or Disclosure, Security Incident or Breach. MED3000 will report to Client any use or disclosure of PHI not provided for by the Agreement of which it becomes aware. MED3000 will report to Client any Security Incident of which it becomes aware. MED3000 will notify Client of any Breach of Unsecured PHI as soon as practicable, and no later than 30 days after discovery of such Breach. MED3000's notification to Client of a Breach will include: (a) the identification of each individual whose Unsecured PHI has been, or is reasonably believed by MED3000 to have been, accessed, acquired or disclosed during the Breach; and (b) any particulars regarding the Breach that Client would need to include in its notification, as such particulars are identified in 42 U.S.C. § 17932 and 45 C.F.R. § 164.404. 3.3 MED3000's Aizents. MED3000 will ensure that any agent or subcontractor to whom it provides PHI received from, or created or received by WD3000 on behalf of Client, agrees to restrictions and conditions that are substantially similar to those that apply through this BAA to MED3000 with respect to such PHI. MED3000 will ensure that any agent, including a subcontractor, to whom it provides Electronic PHI agrees to implement reasonable and appropriate safeguards to protect such information. 3.4 Access to PHI. The parties do not intend for MED3000 to maintain any PHI in a Designated Record Set for Client. To the extent MED3000 possesses PHI in a Designated Record Set, MED3000 agrees to make such information available to Client pursuant to 45 C.F.R. § 164.524 and 42 U.S.C. § 17935(e)(1), as applicable, within ten business days of MED3000's receipt of a written request from Client; provided, however, that MED3000 is not required to provide such access where the PHI contained in a Designated Record Set is duplicative of the PHI contained in a Designated Record Set possessed by Client. If an Individual makes a request for access pursuant to 45 C.F.R. § 164.524 directly to MED3000, or inquires about his or her right to access, MED3000 will direct the Individual to Client. 3.5 Amendment of PHI. The parties do not intend for MED3000 to maintain any PHI in a Designated Record Set for Client. To the extent MED3000 possesses PHI in a Designated Record Set, MED3000 agrees to make such information available to Client for amendment pursuant to 45 C.F.R. § 164.526 within 20 business days of MED3000's receipt of a written request from Client. If an Individual submits a written request for amendment pursuant to 45 EXHIBIT 3 C.F.R. § 164.526 directly to MED3OOO, or inquires about his or her right to amendment, MED3OOO will direct the Individual to Client. 3.6 Documentation of Disclosures. MED3OOO agrees to document such disclosures of PHI and information related to such disclosures as would be required for Client to respond to a request by an Individual for an accounting of disclosures of PHI in accordance with 45 C.F.R. § 164.528, and 42 U.S.C. § 17935(c), as applicable. MED3OOO will document, at a minimum, the following information ( "Disclosure Information "): (a) the date of the disclosure; (b) the name and, if known, the address of the recipient of the PHI; (c) a brief description of the PHI disclosed; (d) the purpose of the disclosure that includes an explanation of the basis for such disclosure; and (e) any additional information required under the HITECH Act and any implementing regulations. 3.7 Accounting of Disclosures. MED3OOO agrees to provide to Client, within 20 business days of MED3OOO's receipt of a written request from Client, information collected in accordance with Section 3.6 of this BAA, to permit Client to respond to a request by an Individual for an accounting of disclosures of PHI in accordance with 45 C.F.R. § 164.528, and 42 U.S.C. § 17935(c), as applicable. 3.8 Governmental Access to Records. MED3OOO will make its internal practices, books and records relating to the use and disclosure of PHI received from, or created or received by MED3OOO on behalf of, Client available to the Secretary for purposes of the Secretary determining Client's compliance with the Privacy Rule and the Security Rule. 3.9 Miti ag tion. To the extent practicable, MED3OOO will cooperate with Client's efforts to mitigate a harmful effect that is known to MED3OOO of a use or disclosure of PHI not provided for in this BAA. 3.10 Minimum Necessary. MED3OOO will request, use and disclose the minimum amount of PHI necessary to accomplish the purpose of the request, use or disclosure, in accordance with 42 U.S.C. § 17935(b) and regulations promulgated thereunder. 3.11 Limitation on Marketing. MED3OOO may use and disclose PHI for marketing purposes only as expressly directed by Client, and in accordance with 42 U.S.C. § 17936(a). MED3OOO will not use or disclose PHI for fundraising purposes. 3.12 Limitation on Sale of Electronic Health Records and PHI. MED3OOO will comply with the prohibition on the sale of Electronic Health Records and PHI set forth in 42 U.S.C. § 17935(d). 3.13 HITECH Act Applicability. MED3OOO acknowledges that enactment of the HITECH Act amended certain provisions of HIPAA in ways that now directly regulate, or will on future dates directly regulate, WD3OOO under the Privacy Rule and Security Rule. To the extent not referenced or incorporated herein, requirements applicable to MED3OOO under the HITECH Act are hereby incorporated by reference into this BAA. MED3OOO agrees to comply with applicable requirements imposed under the HITECH Act, as of the effective date of each such EXHIBIT 3 requirement. SECTION 4: OBLIGATIONS OF CLIENT 4.1 Notice of Privacy Practices. Client will notify MED3000 of any limitation(s) in its notice of privacy practices in accordance with 45 C.F.R. § 164.520, to the extent that such limitation may affect MED3000's use or disclosure of PHI. Client will provide such notice no later than 15 days prior to the effective date of the limitation. 4.2 Notification of Changes Regarding Individual Permission. Client will notify MED3000 of any changes in, or revocation of, permission by an Individual to use or disclose PHI, to the extent that such changes may affect MED3000's use or disclosure of PHI. Client will provide such notice no later than 15 days prior to the effective date of the change. Client will obtain any consent or authorization that may be required by the Privacy Rule, or applicable state law, prior to furnishing MED3000 with PHI. 4.3 Notification of Restrictions to Use or Disclosure of PHI. Client will notify MED3000 of any restriction to the use or disclosure of PHI that Client has agreed to in accordance with 45 C.F.R. § 164.522 or 42 U.S.C. § 17935(a), to the extent that such restriction may affect MED3000's use or disclosure of PHI. Client will provide such notice no later than 15 days prior to the effective date of the restriction. If NMD3000 reasonably believes that any restriction agreed to by Client pursuant to this Section may materially impair MED3000's ability to perform its obligations under the Agreement or this BAA, the parties will mutually agree upon any necessary modification of MED3000's obligations under such agreements. 4.4 Permissible Requests by Client. Client will not request NMD3000 to use or disclose PHI in any manner that would not be permissible under the Privacy Rule, the Security Rule or the HITECH Act if done by Client, except as permitted pursuant to the provisions of Sections 2.2, 2.3, 2.4, 2.5 and 2.6 of this BAA. SECTION 5: TERM AND TERMINATION 5.1 Term. The term of this BAA will commence as of the Effective Date, and will terminate when all of the PHI provided by Client to MED3000, or created or received by MED3000 on behalf of Client, is destroyed or returned to Client or, if it is infeasible to return or destroy PHI, protections are extended to such information, in accordance with Section 5.3. 5.2 Termination for Cause. Upon either party's knowledge of a material breach by the other party of this BAA, such parry will provide written notice to the breaching party detailing the nature of the breach and providing an opportunity to cure the breach within 30 business days. Upon the expiration of such 30 day cure period, the non - breaching party may terminate this BAA and, at its election, the Agreement, if cure is not possible. EXHIBIT 3 5.3 Effect of Termination. 5.3.1 Except as provided in Section 5.3.2, upon termination of the Agreement or this BAA for any reason, MED3000 will return or destroy all PHI received from Client, or created or received by MED3000 on behalf of Client, and will retain no copies of the PHI. This provision will apply to PHI that is in the possession of subcontractors or agents of MED3000. 5.3.2 If it is infeasible for MED3000 to return or destroy the PHI upon termination of the Agreement or this BAA, MED3000 will: (a) extend the protections of this BAA to such PHI; (b) limit further uses and disclosures of such PHI to those purposes that make the return or destruction infeasible, for so long as MED3000 maintains such PHI; and (c) never disclose such PHI to another MED3000 client or third party unless such information has been de- identified in accordance with the standards set forth in 45 C.F.R. § 164.514(b). SECTION 6: SURVIVAL The respective rights and obligations of MED3000 under Section 5.3 of this BAA will survive the termination of the BAA and the Agreement. SECTION 7: EFFECT OF BAA In the event of any inconsistency between the provisions of this BAA and the Agreement, the provisions of the BAA will control. In the event of inconsistency between the provisions of this BAA and mandatory provisions of the Privacy Rule, the Security Rule or the HITECH Act, as amended, or their interpretation by any court or regulatory agency with authority over MED3000 or Client, such interpretation will control; provided, however, that if any relevant provision of the Privacy Rule, the Security Rule or the HITECH Act is amended in a manner that changes the obligations of MED3000 or Client that are embodied in terms of this BAA, then the parties agree to negotiate in good faith appropriate non - financial terms or amendments to this BAA to give effect to such revised obligations. Where provisions of the BAA are different from those mandated in the Privacy Rule, the Security Rule, or the HITECH Act, but are nonetheless permitted by such rules as interpreted by courts or agencies, the provisions of the BAA will control. EXHIBIT 3 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com EN"1, IN File #: ID 14 -0397, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Denton Municipal Electric (DME) CM/ ACM: Howard Martin, 940 - 349 -8232 DATE: August 19, 2014 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager or his designee to execute a Contract of Sale by and between John P. Walker and William A. Martin, as owner(s), and the City of Denton, Texas, as buyer, to acquire fee simple to a 10.372 acre tract being generally situated in the M. Forrest Survey, Abstract Number 417, in the City of Denton, Denton County, Texas to be used and utilized for and in connection with the expansion, construction, maintenance, replacement, augmentation, and improvement of electric transmission and distribution lines, facilities, and structures (herein the "DME Expansion Project ") for the purchase price of Six Hundred Thousand Dollars ($600,000.00), and other consideration, as prescribed in the Contract of Sale as described in the ordinance as attached as Exhibit One; authorizing the expenditure of funds therefor; and providing an effective date. (Denton Municipal Electric ARCO Substation Project) BACKGROUND The DME Capital Improvement Plan includes the reconstruction of the Arco Substation. On January 13, 2014, the Public Utility Board and the City Council approved the proposed site selection. Further, the PUB and City Council approved the procurement of the site via purchase offer on March 24 and April 1, 2014 (respectively) for $575,000. Per these authorizations, the City of Denton has presented the initial and final offers to the property owner(s) and the owners have responded with the current counter -offer of $600,000. The owners have also added additional consideration by supplying the City authorization for it to pursue a Special Use Permit. OPTIONS 1. Recommend approval of the land purchase and ordinance for $600,000. 2. Do not recommend approval of the land purchase and ordinance and provide staff with further direction. RECOMMENDATION DME recommends that the City Council recommend approval of the land purchase contract and authorizing an accompanying ordinance. ESTIMATED SCHEDULE OF PROJECT City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: ID 14 -0397, Version: 1 Winter 2014- Spring 2016 PRIOR ACTION /REVIEW (Council, Boards, Commissions) The Public Utilities Board and City Council approved site selection on January 13, 2014, approved procurement via contract on March 24, 2014, and has authorized eminent domain proceedings on May 19, 2014. The City Council approved procuring via contract negotiation on April 1, 2014 and via eminent domain on June 3, 2014. On August 11, 2014, the City of Denton Public Utilities Board recommended approval of the land purchase for $600,000 as provided in the attached exhibit "1 ". FISCAL INFORMATION The overall 69kV Transmission Line Rebuild project 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 (ERGOT). The purchase price of $221,527.26 plus closing costs as prescribed in the Agreement are to be funded through these funding sources. BID INFORMATION N/A EXHIBITS 1. Ordinance and Contract Respectfully submitted: Phil Williams General Manager, DME Prepared by: Smith L. Day Compliance Manager, DME City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl ORDINANCE NO. 2014- AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE A CONTRACT OF SALE (HEREIN SO CALLED), AS ATTACHED HERETO AND MADE A PART HEREOF AS EXHIBIT "C ", BY AND BETWEEN JOHN POWELL WALKER AND WILLIAM A. MARTIN (THE "OWNER ") AND THE CITY OF DENTON (THE "CITY "), REGARDING THE SALE BY OWNER AND PURCHASE BY THE CITY OF A FEE INTEREST IN LAND CONSISTING OF 10.372 ACRES BEING SITUATED IN THE M. FORREST SURVEY, ABSTRACT NO. 417, CITY OF DENTON, DENTON COUNTY, TEXAS, LOCATED GENERALLY NORTH OF BLAGG ROAD AND EAST OF GEESLING ROAD AND BEING MORE PARTICULARLY DESCRIBED AND DEPICTED ON EXHIBITS "A" AND `B ", RESPECTIVELY, ATTACHED HERETO AND MADE A PART HEREOF, 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 "), FOR THE PURCHASE PRICE OF SIX HUNDRED THOUSAND AND NO /100 US DOLLARS ($600,000.00), AS PRESCRIBED IN THE CONTRACT OF SALE; AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE AND DELIVER ANY AND ALL OTHER DOCUMENTS NECESSARY TO ACCOMPLISH CLOSING OF THE TRANSACTION CONTEMPLATED BY THE CONTRACT OF SALE; AUTHORIZING THE EXPENDITURE OF FUNDS, THEREFORE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, after due consideration of the public interest and necessity and the public use and benefit to accrue to the City of Denton, Texas; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager, or his designee, is hereby authorized (a) to execute for and on behalf of the City (i) the Contract of Sale, by and between the City and Owner, in the form attached hereto and made a part hereof as Exhibit "C" with a purchase price of SIX HUNDRED THOUSAND AND NO /100 US DOLLARS ($600,000.00), as prescribed in the Contract of Sale, and (ii) any other documents necessary for closing the transaction contemplated by the Contract of Sale, including documents to close the transaction with the Owner's: (1) successors in interest; or (2) any other owners of other property interests in the Property; and (b) to make expenditures in accordance with the terms of the Contract of Sale. SECTION 2. 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 holdings 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 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2014. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY IM APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: 2 LEGEND POWER & LIGHT COMPANY fled Juns 22. 1056. recorded h PROPERTY LINE - - ADJACENT PROPERTY LINE - - - - - - - - - - EASEMENT LINE --a -- o- e---a- CHAIN LINK FENCE OHE ELECTRIC LINE C.M. CONTROL MONUMENT IPF IRON PIPE FOUND IRF IRON ROD FOUND CiRF CAPPED IRON ROD FOUND O IRON ROD FOUND (AS NOTED) ® 5/8 CAPPED IRON ROD STAMPED (TNP) SET o FENCE CORNER POST [ J DEED CALL .P.R. REAL PROPERTY RECORDS -V- SIGN TELEPHONE UTILITY / POWER POLE E GUY WIRE ELECTRIC TOWER STRUCTURE /• /. EDGE OF ASPHALT TITLE RESOURCES GUARANTY COMPANY OF NO. 140067 EFFECTIVE DATE MAY 10, 2014 COMYnMENT DATE JUNE O2, 2014 THIS TRACT Is SUBJECT Tor THE FOLLOWING BLANKET EASSM( : tQQ�� Easement executed byy E E GEE RM end wife, MYRTLE DEi91J10 at d to LONE STAR Kl\4 COMPANY fled May 9, 1957. noedad In Valme 420. Pogo 20% Dead Records of Denton Canty, Tema (location and width undelkned} THE F01101NING SCHEDULE B ITEMS DO Nor AFFECT TONS TRACT: Joh. Easement executed MRS. J.T. BOTtORFF at d to LONE STAR QAS COMPANY fled 1916. reaadd In Va u no 146. Pogo 41$ Deed Records of County. Texas. JOL Easement emaa sd by SIJ GEESLM to LONE STAR GAS COMPANY fled A. 6. 1923,. hoarded In Volume 167. Pope 626. Deed Records of Do ton Canty. TONOS. 101 Easement executed by SIM GEES LING to TEXAS POWER t LIGHT COMPANY fled December 1. 1924. recorded in Volume 190. Pogo 7A Deed Records of Denton County. Team tok Dominant allocated by CHARLES HOFFMAN to TEXAS PURER Ift & LIGHT COMPANY filled Pope 4% Deed Reoxdrmof Denton OcunlhA Tum lu Vdume tOL Easement wesated Is LL GEEPJ W to LONE STAR OAS ed COMPANY fl .ANN 12. 1920, rwomded In Volume 208, Page 447, Deed Rewards of Dental Canty. Tema. ton. Easement emsouted by ox. RUSSELL at d to TOM POWER k UONT COMPANY fled April 17. 1937. reoaded In Volume 268. Pops 215. Dead Ilesads of Denton Gamily. Tema. STATE OF TEXAS COUNTY OF DENTON LEGAL DESCRIPTION - 10.372 ACRES ALL OF THAT CERTAIN LOT, TRACT OR PARCEL OF LAND SITUATED IN THE MOREAU FORREST SURVEY, ABSTRACT NUMBER 417, DENTON COUNTY, TEXAS, BEING A PORTION OF THAT CERTAIN CALLED 97.277 ACRE TRACT CONVEYED TO JOHN POWELL WALKER, ET AL AS RECORDED IN DOCUMENT NUMBER 93- 0034125 OF THE REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNINGot a 1/2 inch iron pipe found in the east line of Geesling Rood at a westerly exterior comer of the said Walker tract, some being the southwest comer of o called 1.043 acre tract of land as described in a deed to Lynell Cawood, as recorded In Document Number 95- 0034882 of the said Real Property Records for the northwest comer of the herein described tract, from which a 1/2 inch copped iron rod found for the Northwest corner of said 1.043 acre tract bears North 02'41'52" East, [N 03'10'00" El a distance of 135.91 feet [135.65 feetl THENCE South 87.5322" East, [S 89'54'18" E] with the common line of said Walker tract and said Cawood tract, passing a 3/8 inch iron rod found at the southeast corner of said Cawood tract at a distance of 336.47 feet [337.00 feetl and continuing for a total distance of 715.70 feet to a 5/8 inch capped Iron rod set and stomped "TNP" for the northeast corner hereof; THENCE South 01'56'26' West, a distance of 652.34 feet, to a 5/8 inch copped iron rod set and stamped "TNP ", for the southeast corner hereof, some being the northeast comer of a called 3.02 acre tract of land as described In a deed to Texas Municipal Power Agency as recorded in Volume 1149, Page 494 of the Deed Records of Denton County, Texas, from which a 1/2 Iron rod found for the most easterly southeast corner of said 3.02 acre tract bears South 48'0531" West, [S 46'13'51" W'1 a distance of 45.07 feet [45.10 feetl THENCE North 88'07'46" West, [N 89'59'49' W] with the common line of said Walker tract and said 3.02 acre tract a distance of 549.48 feet [549.5 feetl to a 5/8 inch capped iron rod set and stamped "TNP ", at on ongle point of said Walker tract; THENCE North 38'36'05" West, [N 40'27'41" W] continuing with said common line, o distance of 255.79 feet [255.0 feetl to a 5/8 inch capped iron rod set and stamped "TNP', same being the northwest corner of said 3.02 acre tract, and the westerly southwest comer of said Walker tract and lying in the east line of Geesiing Rood; THENCE North 01'56'46" East, [N 00100'11' W] along the common line of said Walker tract and the east line of said Geesling Road, a distance of 460.75 feet [459.04 feetl to the POINT OF BEGINNING and containing 10.372 acres of land more or less. This description is based on the Land Title Survey and Plat made by Todd B. Turner, R.P.L.S. No. 4859 on June 04, 2014. SURVEY NOTES: 1.) Bear res of lima shown swoon refer to Grid North at two Texas coordinate system ef 1889 (North Gntml Zonal MM(COe189e) Epoch 2002.00) as derived locally from Western Data System Continuously Operating Reference Stations (a=) via Real Tian Kinematic (RTE() methods. M average combination Factor of 0.890869888 was used to scale surface distances to grid. All distances sham hereon Papreant grid values. E.) The utilities clown on this survey are based upon the avallable information and •11410 boat*$" Of visible above grand workings provided by TNP WE DEPT. TNP hued solely On the 00"MrStiOn of the various utility companies and any information they moo svailablo. Underground facilities have not been field verified. There my be additional utilities that TNP has not been advised of. 8.) See shoot g of 2 for survey plat. 4.) This survey was prepared with benefit of that certain Title Oomitmnt OF NO. 196907, effective date of May 19, 0014, provided by Title Resource 9oarenty Copsnyr. For eeaments, rights-of-way ad /or other matters of record that my affect this treat, the surveyor Palled solely on said Title Commits M. CERTIFICATE too. Easement ateaded by C.M. WEST and wft MIS. MI BRED To: John Powell Walker et al, Title Resources Guaranty Company and the City of Denton, Texas: BEST to TEXAS POW k LIGHT COMPANY fled March 23. 11980. raeedd in VkMn,o 356, Pogo' Dead Regards of Denton Tea Canty. t I, Todd B. Tumor, Registered Professional Land Surveyor, State of Texas, do hereby certify that this survey substantially complies with the currant Texas Society of Professional Surveyors top. Eomernent executed by MARY CEESUNG at d to TEXAS stand or and Specifications a Category 1A, Condition II survey. POWER & LIGHT COMPANY fled Juns 22. 1056. recorded h Volume 422, Pogo 419. Dad Records of Denton Canty. Teat .. tor. Fawned executed by E.E. GEESIHNG and wife. MYRTLE GEEMM to TEXAS POWER k LIGHT COMPANY fled September �� ............ 1r ,.• \ S E'•.�. f. 14 1904, reoedad In Vbimmhe 513. Pogo 526. Dead Records of Denton ConNntyL Tela t : ri,G O .Vp toe Easement watad b JA H. RUSSELL. JL. TRUSTEE to Todd B. Turner, RPLS TEXAS POW • LIGHT COMPANY fled Mara, 21. 1960, law Firm Registration Number 10011601 �� „•,,,,,,,,,,,,,;,,• TODD B. TURNER in Volume tool, pope M. Deed Record. of Denton Cantu Original Survey Date: February 27, 2013 ..% .....................%.. Texas. Revision Date: June 04, 2014 - Update Survey , 0 4859 IOL Easement awardad to OOSERV GAS, LTD„ by pdgernent and Address Schedule B items Cause No. ED- 2000 -00334. In the Probate CNA of Pp ••'•• Ff S 5 ;o •yOQ` 9N0 under Denton Canty, Tees. Exlllbit "A" �c,11C Teague nail 8 parkins tnpis Feesad6 tm DON eq 705 wawtss ph NMI oSL BO26 f rwrw.naw,e.e.. to Ordinance LAND TITLE SURVEY 10.372 ACRES BEING SITUATED IN THE M. FORREST SURVEY, ABSTRACT NO. 417 SHEET 1 OF 2 CITY OF DENTON, DENTON COUNTY. TEXAS 1 I DPD, UP DOC. NO. 2003 - 194876 i�+l R.P.R. i CALLED D.C.T. 20.00 AC I 1� 11 f � 10. � TEXAS MUNICIPAL POI AGENCY VOL 1149, P0. 494 I R.P.R.D.GT. 1 CAUiD 3.02 AC I I � c� 1/2 aRF l i See shoot 1 of 2 for legal description and notes. LAND TITLE SURVEY [N Oe3e'40' WW-- 54A0'Jf.l2� E ibit "s" to N 66.07' 46' 649.48 i�TM u LYNELL CAWOOD 10.372 ACRES DOG Na 95-0034852 rdinance VOL 3275, P0. 676 R.P.R.D.C.T.� CALLED 0.40 AC I W W R.P.R.D.GT. CALLED 1.043 ACRE SHEET 2 OF 2 I N g 1 F 05� FFBPEOQII '_° 0 I ♦Q Q REMAINDER OF o w so 120 k� JOHN VI 277 ACRE LKE TRACT JOHN POaEIl WALKER et d = DOG N0. 93- 0034125 SCALE: 1' 120' F 1 1 x [S OOSS'le• E - 337.0'] Q }ice r� R.PRD.C.T. B F 9 !7.59'22' E - 716.70' TIE GEESL NG I PROPERTY TRUST. GEESLNG GASSAMAY I COMM. INC. DOG N0. � � A11P 2005 -50246 R.P.R.D.C.T. PoaPM# CALLED 43.049 AC I I — — 10.872 ACRES a� I j PART OF oa la 1 W I CALLED 87.277 ACRE TRACT 20R.P.. -R D.C.T..6 I g ; JOHN POWELL WAMR d al CALLED 2 OO Ac DOC. NO. 93-0034125 1 R.P.R.O.C.T. la n co Mow" PONEII LOW APPMAIMIE 48/61 OF ° ' TEXAS Po" a 11011 Ca. 01 FAaff -ar- y 3 I VOL 2K PO. 2P6 Cam amid m) N Mil �'! r n r, r } LC {.ter IM, CORE, T �C) 7 US J ZV L ° I 1,1; �� e I AZZZ ICfi0 417 � ° 1 I DPD, UP DOC. NO. 2003 - 194876 i�+l R.P.R. i CALLED D.C.T. 20.00 AC I 1� 11 f � 10. � TEXAS MUNICIPAL POI AGENCY VOL 1149, P0. 494 I R.P.R.D.GT. 1 CAUiD 3.02 AC I I � c� 1/2 aRF l i \ TEXAS MUNICIPAL \ \. POWER AGENCY VOL 1027, PG 165 ♦ R.P.R.D.GT. CALLED 1.424 AC W Al AI ♦\ \ \ \ �a1E \ AFCA \ Axwu7AMAllb AIY05 OASd 0 4 tS 6/ 1 I I V8 o� I n n4 I o. p�gd I I A1E III o OF A o [N Oe3e'40' WW-- 54A0'Jf.l2� I Pte' N 66.07' 46' 649.48 i�TM u O a a YA�IIIR11� CITY OF DENTON VOL 3275, P0. 676 R.P.R.D.C.T.� CALLED 0.40 AC LIGHT COMPANY VOL 1027, PG 163 \ R.P.R.D.GT. CALLED 2.430 AC \ TEXAS MUNICIPAL \ \. POWER AGENCY VOL 1027, PG 165 ♦ R.P.R.D.GT. CALLED 1.424 AC W Al AI ♦\ \ \ \ �a1E \ AFCA \ Axwu7AMAllb AIY05 OASd 0 4 tS 6/ 1 I I V8 o� I n n4 I o. p�gd I I 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 Buyer, as defined herein (the "Effective Date "), by and between JOHN POWELL WALKER and WILLIAM A. MARTIN (referred to herein as "Seller ") and the City of Denton, Texas, a Home Rule Municipal Corporation of Denton County, Texas (referred to herein as "Buyer "). RECITALS WHEREAS, Seller owns that certain tract of land being more particularly described on Exhibit "A" and depicted on Exhibit `B" attached hereto and made a part hereof for all purposes, being located in Denton County, Texas (the "Land "); and WHEREAS, Seller agrees to sell to Buyer, under threat of eminent domain, and Buyer desires to buy from Seller, the Land, together with any and all rights or interests of Seller in and to adjacent streets, alleys and rights of way and together with all and singular the improvements and fixtures thereon and all other rights and appurtenances to the Land (collectively, the "Property"). ARTICLE I SALE OF PROPERTY For the consideration hereinafter set forth, and upon the terms, conditions and provisions herein contained, and subject to the reservations herein, Seller agrees to sell and convey to Buyer, and Buyer agrees to purchase from Seller, the Property. Seller shall reserve, for themselves, their heirs, devisees, successors and assigns all oil, gas and other minerals in, on and under and that may be produced from the Property. Seller, their heirs, 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 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 is the sum of Six Hundred Thousand and No /100 Dollars ($600,000.00) (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 Contract of Sale Page 2 of 23 addition to, and independent of any other consideration or payment provided in this Contract, is non - refundable, and shall be retained by Seller notwithstanding any other provision of this Contract. ARTICLE III FEASIBILITY REVIEW PERIOD 3.01 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 not later than Monday, October 8, 2014 (the "Absolute Review Period "), based on such tests, examinations, studies, investigations and inspections of the Property the Buyer deems necessary or desirable, including but not limited, to reports, studies or inspections related to title and survey matters, soil conditions and to determine the existence of any environmental hazards or conditions, performed at Buyer's sole cost, that Buyer finds the Property suitable for Buyer's purposes. Buyer may, at any time prior to Monday, October 8, 2014, end the Absolute Review Period and proceed to Closing. Buyer is granted the right to conduct engineering studies of the Property, and to conduct a physical inspection of the Property, including inspections that invade the surface and subsurface of the Property. If Buyer determines, in its sole judgment, that the Property is 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 III, Section 3.01, 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 IV REPRESENTATIONS. WARRANTIES. COVENANTS AND AGREEMENTS 4.01 Representations of Seller. Seller represents to Buyer as of the Effective Date and as of the Closing Date, except where specific reference is made to another date, that: (a) Seller has no knowledge of other parties in possession of the Property or any part thereof, and no party has been granted any license, lease or other right related to the use or possession of the Property, or any part thereof. (b) The Seller has the full right, power, and authority to sell and convey the Property as provided in this Contract and to carry out Seller's obligations hereunder. (c) The Seller has not received notice of, and has no other knowledge or information Contract of Sale Page 3 of 23 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 other than an Eminent Domain proceeding styled: City of Denton, Texas v. John Powell Walker and William A. Martin, Cause No. CV- 2014 — 01215 in the County Court at Law No. 2 of Denton County, Texas. (d) 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. (e) The Seller is not a "foreign person" as defined in Section 1445 of the Internal Revenue Code of 1986, as amended. (f) The Seller shall not have caused any liens or claims resulting from labor or materials furnished to the Property under any written or oral contracts arising or entered into prior to Closing. (g) 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 that will not be fully performed on or before the Closing or would be binding on Buyer or the Property after the date of Closing. (ii) Advise the Buyer promptly of any additional litigation, arbitration, or administrative hearing concerning or affecting the Property. (iii) Not take, or omit to take, any action that would result in a violation of the representations, warranties, covenants, and agreements of Seller. (iv) Not sell, assign, lease or convey any right, title or interest whatsoever in or to the Property, or create, grant or permit to be attached or perfected, any lien, encumbrance, or charge thereon which will not be terminated, released or discharged on or before Closing. (h) As long as Seller is not required to perform any affirmative act (other than signing any authorization or application), incur any cost or expense, or otherwise approve of a final plat, final zoning change, or other authorization which becomes final at or prior to Closing, Seller shall execute necessary preliminary authorizations provided by the City to the Seller required for any City initiated permitting, planning or zoning applications during the executory contract period, involving Contract of Sale Page 4 of 23 the Property. Such authorization has been executed and is attached to this Agreement as Exhibit "C ". 4.02 Warranty of Buyer; Waiver of Reliance; and "AS IS" Property Condition. Buyer represents and warrants to Seller that it has made, or will make prior to Closing, an independent inspection and evaluation of the Property and acknowledges that Seller has made no statements or representations concerning the present or future value of the Property, or the condition, including the environmental condition, of the Property. Except as otherwise specifically set forth in the deed concerning Seller's special warranty of title, SELLER MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESSED, STATUTORY, OR IMPLIED, AS TO THE VALUE, QUALITY, QUANTITY, PHYSICAL AND ENVIRONMENTAL CONDITION OF THE PROPERTY AND /OR MATERIALS CONTAINED OR LOCATED IN, ON OR UNDER THE PROPERTY, THE NATURE OF THE PAST OR HISTORIC USE OF THE PROPERTY, AND /OR MERCHANTABILITY, SUITIBILITY OR FITNESS FOR PURPOSE OR USE, OR HABITABILITY OF ANY OF THE PROPERTY OR THAT ANY IMPROVEMENTS HAVE BEEN CONSTRUCTED IN A GOOD AND WORKMANLIKE MANNER. Except as otherwise specifically set forth in the deed, Buyer further acknowledges that it has relied solely upon its independent evaluation and examination of the Property, and public records relating to the Property and the independent evaluations and studies based thereon and it is not relying in whole or in part upon any oral or written statements made or information or documentation provided by, or upon any warranty or representation (either express or implied) of any type or nature furnished by Seller, Seller's representatives, Seller's agents, Seller's Brokers or Real Estate Salespersons, Seller's employees, Seller's attorneys, Seller's partners, any director, shareholder, or officer of Seller, Seller's affiliates, or any of Seller's predecessors in interest, successors and/or assigns, regarding the Property or any portion thereof. Seller makes no warranty or representation as to the accuracy, completeness or usefulness of any information furnished to Buyer, if any, whether furnished by Seller or any third party. Seller assumes no liability for the accuracy, completeness or usefulness of any material furnished by Seller, if any, and/or any other person or party. Reliance on any material so furnished is expressly disclaimed by Buyer, and shall not give rise to any cause, claim or action against Seller. Buyer acknowledges that it is being given and on the Closing Date has had a reasonable period of time prior thereto to inspect, determine and evaluate whether Buyer wishes to close the purchase of the Property without any warranty, representation, or inducement on the part of the Seller whatsoever, except as otherwise specifically set forth in the deed which Seller shall sign at closing, a form of which is attached as Attachment 1 to this Agreement. WAIVER OF CONSUMER RIGHTS: Buyer hereby represents that it is represented by legal counsel in purchasing the Property from the Seller, and that the Buyer hereby expressly waives all of its rights under the Deceptive Trade Practices - Consumer Protection Act, Section 17.41 et seq., Texas Business and Commerce Code, a law that gives consumers specific rights and protections. Following a consultation with an attorney of the Buyer's own selection, the Buyer Contract of Sale Page 5 of 23 hereby voluntarily consents to this waiver as evidenced by the signature of Buyer below. It is acknowledged by both the Seller and the Buyer that in addition to the foregoing, it is the intent of this agreement to release the Seller from any and all responsibility for the design, construction, repair, or maintenance of improvements located on the Property. After Closing it is the intent of the Buyer to completely demolish and destroy and of the dwelling improvements located on the Property and represents that any dwellings or other improvements located on the Property have a zero, if not negative value to the Buyer, and that no part of the consideration is being paid for any such improvements. This Section shall survive the closing or earlier termination of this Contract and shall not be merged into the deed at Closing. 4.03 Survival Beyond Closing. Notwithstanding anything to the contrary contained in this Contract, the representations, warranties, covenants and agreements of Buyer and Seller contained in this Contract shall survive the Closing, and shall not, in any circumstance, be merged with the Deed Without Warranty, as described in Article VI, Section 6.02(a). ARTICLE V CONDITIONS PRECEDENT TO PERFORMANCE 5.01 Performance of Seller's Obligations. Buyer is not obligated to perform under this Contract unless, within the designated time periods, 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 5.02 Breach of Seller's Representations, Warranties, Covenants and Agreements. Buyer is not obligated to perform under this Contract unless all representations, 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. 5.03 Adverse Change. Buyer is not obligated to perform under this Contract, if on the date of Closing, any portion of the Property 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, or any part thereof, has been materially or adversely impaired in any manner. 5.04 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 is unsuitable to or for Buyer's purposes. 5.05 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 Contract of Sale Page 6 of 23 the waived condition precedent. 5.06 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 VI CLOSING 6.01 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 on or before Wednesday, October 10, 2014 unless otherwise mutually agreed upon by Buyer and Seller. 6.02 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 Deed Without Warranty, substantially in the form as attached hereto as Attachment 1, subject only to the Permitted Exceptions, if any, duly executed by Seller and acknowledged; (ii) Other items reasonably requested by the Title Company as administrative requirements for consummating the Closing; provided that Seller shall be under no duty to make any covenants, warranties, representations, or agreements to the Buyer or Title Company which are not expressly set out herein. (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 Contract of Sale Page 7 of 23 requirements for consummating the Closing. 6.03 Adjustments at Closing. Notwithstanding anything to the contrary contained in this Contract and without limiting the general application of the provisions of Section 4.03, above, the provisions of this Article VI, Section 6.03 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 i.) the percentage of property taken from the parent tract, and ii.) 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. 6.04 Possession at Closing. Possession of the Property shall be delivered to Buyer at Closing. 6.05 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 borne by Buyer. ARTICLE VII DEFAULTS AND REMEDIES 7.01 Seller's Defaults and Buyer's Remedies. (a) Seller's Defaults. Seller is in default under this Contract on the occurrence of any one or more of the following events: (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, Contract of Sale Page 8 of 23 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 VI, Section 6.02(a) of this Contract for any reason other than a default by Buyer or termination of this Contract by Buyer pursuant to the terms hereof prior to Closing. (b) Buyer's Remedies. If Seller is in default under this Contract, Buyer as Buyer's sole and exclusive remedies for the default, may, at Buyer's sole option, do any of the following: (i) Terminate this Contract by written notice delivered to Seller in which event the Buyer shall be entitled to a return of the Earnest Money, and Seller shall, promptly on written request from Buyer, execute and deliver any documents necessary to cause the Title Company to return to Buyer the Earnest Money; (ii) Enforce specific performance of this Contract against Seller, requiring Seller to convey the Property to Buyer subject to no liens, encumbrances, exceptions, and conditions other than those shown on the Title Commitment, whereupon Buyer shall waive title objections, if any, and accept such title without reduction in Purchase Price on account of title defects and shall be entitled to assert any rights for damages based on Seller's representations, warranties and obligations that are not waived by Buyer by its acceptance of Seller's title; and (iii) Seek other recourse or relief as may be available to Buyer at or by law, equity, contract or otherwise. 7.02 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 VI, Section 6.02(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: (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 Contract of Sale Page 9 of 23 (ii) Enforce specific performance of this Contract against Buyer. ARTICLE VIII MISCELLANEOUS 8.01 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: JOHN POWELL WALKER and WILLIAM A. MARTIN City of Denton Paul Williamson Real Estate and Capital Support Telecopy 901 -A Texas Street Denton, Texas 76209 Telecopy: (940) 349 -8951 Copies to: For Seller: For Buyer: Scott W. Hickey Kelsey, Kelsey & Hickey, PLLC P.O. Box 918 Denton, Texas 76202 Telecopy: Telecopy: (940) 387 -9553 8.02 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. 8.03 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 may be amended or supplemented only in writing executed by the party against whom enforcement is sought. Contract of Sale Page 10 of 23 8.04 Parties Bound. This Contract is binding upon and inures to the benefit of Seller and Buyer, and their respective successors 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. 8.05 Risk of Loss. If any damage or destruction to the Property 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, 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 the Property, 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 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, 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 VI, 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. 8.06 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 transaction contemplated hereby. Notwithstanding anything to the contrary contained in this Contract and without limiting the general application of the provisions of Section 4.02, above, the provisions of this Article VIII, Section 8.06 shall survive Closing. 8.07 Time is of the Essence. It is expressly agreed between Buyer and Seller that time is of the essence with respect to this Contract. 8.08 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 11 of 23 8.09 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. 8.10 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. 8.11 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. 8.12 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. 8.13 §1031 OR §1033 EXCHANGE. It is the Seller's intent to possibly effectuate an exchange under either §1031 or §1033 of the Internal Revenue Code. In the event the Seller decides to effectuate a §1031 or §1033 exchange, Buyer agrees to cooperate with the Seller in effecting such an exchange, including revising certain portions of this Contract as they relate to the receipt of the proceeds from this sale and the timing of the Closing Date. 8.14 Additional Consideration. As additional consideration for Sellers conveyance of the Property to Buyer, Buyer shall install a masonry screening wall around Buyer's facilities with landscaping around the perimeter of the said wall. Said masonry screening wall shall be substantially similar to that which is depicted in the attached Exhibit "D" and shall be constructed by the later of, a.) six months after the date of closing; or b.) three months after Buyer, its successors or assigns complete the construction of its facilities on the Property. SELLER: JOHN POWELL WALKER WILLIAM A. MARTIN Executed by Seller on the day of , 2014. Contract of Sale Page 12 of 23 08/05/2014 08:52 L'AUBERGE DEL MAR 4 912146514330 Executed by ScUcr on the -� Ir— day of 12014. COWCwt of Sale, Pale 13 of 19 aIZ3o�.Jrsrn_sa�miozrorr31 u N0.747 9002 BUYER: Im GEORGE C. CAMPBELL, CITY MANAGER Executed by Buyer on the day of 92014. ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: SCOTT W. HICKEY, KELSEY, KELSEY & HICKEY, PLLC 1 Contract of Sale Page 13 of 23 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 14 of 23 LEGEND THENCE North 38'36'05' West, [N 40'27'41' W] continuing with said common line, a distance EFFECTIVIE ONINTI ENT DATE- AM = 2014 PROPERTY LINE - - ADJACENT PROPERTY LINE - - - - - - - - - - EASEMENT LINE �� -+--e- CHAIN LINK FENCE OHE ELECTRIC LINE C.M. CONTROL MONUMENT IpF IRON PIPE FOUND IRF IRON ROD FOUND CiRF CAPPED IRON ROD FOUND O IRON ROD FOUND (AS NOTED) A 5/8 CAPPED IRON ROD STAMPED (TNP) SET o IFENCE CORNER POST [) DEED CALL R.P.R. REAL PROPERTY RECORDS v SIGN © TELEPHONE UTILITY f POWER POLE E GUY WARE ® ELECTRIC TOWER STRUCTURE "'"' j"yIft- EDGE OF ASPHALT STATE OF TEXAS COUNTY OF DENTON LEGAL DESCRIPTION - 10.372 ACRES ALL OF THAT CERTAIN LOT, TRACT OR PARCEL OF LAND SITUATED IN THE MOREAU FORREST SURVEY, ABSTRACT NUMBER 417, DENTON COUNTY, TEXAS, BEING A PORTION OF THAT CERTAIN CALLED 97.277 ACRE TRACT CONVEYED TO JOHN POWELL WALKER, ET AL AS RECORDED IN DOCUMENT NUMBER 93- 0034125 OF THE REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING at a 1/2 inch iron pipe found in the east line of Geesling Road at a westerly exterior comer of the said Walker tract, some being the southwest comer of a coiled 1.043 acre tract of land as described in a deed to Lynell Cawood, as recorded in Document Number 95- 0034882 of the said Real Property Records for the northwest comer of the herein described tract, from which a 1/2 inch capped iron rod found for the Northwest corner of said 1.043 acre tract bears North 02'41'52` East, [N 03'10'00° El a distance of 135.91 feet [135.65 feet] THENCE South 87'5322' East, [S 89.54'18' E] with the common line of said Walker tract and acid Cawood tract, passing o 3/8 inch iron rod found at the southeast comer of said Cawood tract at a distance of 336.47 feet [337.00 feet] and continuing for a total distance of 715.70 feet to a 5/8 inch capped iron rod set and stamped "TNP' for the northeast corner hereof; THENCE South 01'56'26' West, a distance of 652.34 feet, to 0 5/8 inch capped iron rod set and stomped "TNP', for the southeast comer hereof, some being the northeast comer of a called 3.02 acre tract of land as described in a deed to Texas Municipal Power Agency as recorded in Volume 1149, Page 494 of the Deed Records of Denton County, Texas, from which a 1/2 iron rod found for the most easterly southeast comer of said 3.02 acre tract bears South 48'05'31' West, [S 46'13'51" Wl a distance of 45.07 feet [45.10 feet] THENCE North 88'07'46' West, [N 89'59'49" W] with the common line of sold Walker tract and said 3.02 acre tract a distance of 549.48 feet [549.5 feetl to a 5/8 inch capped iron rod set and stomped 'TNP', at an ongle point of sold Walker tract; TITLE RESOURCES GUARANTY COMPANY OF N0. 145067 THENCE North 38'36'05' West, [N 40'27'41' W] continuing with said common line, a distance EFFECTIVIE ONINTI ENT DATE- AM = 2014 of 255.79 feet [255.0 feet] to a 5/8 inch capped iron rod set and stomped 'TNP', some m I In vdam. 157, Pepe COMPANY 6. Volume Jua a 1 being the northwest corner of said 3.02 acre tract, and the westerly southwest comer of said THIS TAT S TO THE FOLLOWING BLANGEET Walker tract and lying in the east line of Geesiing Rood; 1p�, Eeewne d executed A.E.E. GEESINRG and wlk MYRTLE aEEsERO t d to LANE s>Yi GAS COMPANY filed May S. 1957, THENCE North 01'56'46' East, [N 00'00'11' W] along the common line of said Walker tract reoelded In Volume ome 429, Pape 2wi Deed Records of Denton cwjft Texoa p--a eb rdeWn and the east fine of said Geesling Road, a distance of 460.75 feet [459.04 feet] to the LIGHT COMPANY filed December 1. 1924. recorded In Volume POINT OF BEGINNING and containing 10.372 acres of land more or less. THE FOLLOWERS SCHIS)ULE a n:Ma OO ROT AFFECT THIS TRACT. 2.) The utilities shown on this survey are based upon the available information sed 'field locates* of visible fah. Easement wasted br MIRE. J.T. BOTTORPF at d to LANE This description is based on the Land Title Survey and Plat made by Todd B. Tumor, R.P.L.S. srAR on COMPANY aw May 27, taro noordsd h Va. 149 No. 4859 on June 04, 2014. Pape 411 Weed III se of Dint -n C aunty, Te=a elEtvEr NOTES: IOL L-fille executed by SNI t0 STAR OAS r n Volume 355.. Page D�eedReReco�efCenier, County, Tom, I, Todd B. Turner, Registered Professional Land Surveyor, State of Texas, do hereby certify that m I In vdam. 157, Pepe COMPANY 6. Volume Jua a 1 1.) EwUW or 1LIM shoal harem rotor to Grid North of the Texas COordlntte Wines of ted0 (worth Central Umi 11A Dee R m Aryl, Td f12a Deed Reewda of DeMwl fbinty TeNa dons � cf locally Continuously Volume 42Z Page 41% Deed Reeorde of Denton County, Texas. (GORE) Re200111.00) l Tiin Kinema tic ti enspe coal motion Poster of 0909" was used to 101 Eamn wrt executed by SIM GEESLING to TEXAS POWER * scale surface distance* to grid. All distances shawl hereon represent grid values. LIGHT COMPANY filed December 1. 1924. recorded In Volume t 5 T ERFO 196. Pogo 70. Geed Records M Denton Ccunty6 Texas. 2.) The utilities shown on this survey are based upon the available information sed 'field locates* of visible Las Easement wrested by JAMES K RUSSELL. JR. TRUSTEE to Todd B. Turner. RPLS show ground mahtnings provided by TNP BUE DEPT. TRIP roiled solely on the cooperation of the various utility M E-eemwnt commuted by CHARLES HO"MAN to TEXAS POWER companies and any Snformation they made available. underground facilities have not been field verified. There may t LIGHT COMPANY fled December 2.3. 1924, reoortled In Volume be additional utilities that TNP Ms not been Advised of. 19%Pope SO, Deed Records of Dalton County, Tema Survey t o 4859 IOL Easement -waded to OOSERV GAS, LTD„ by }ldpwmwnt and Address Schedule B items uldser Comma No. ED -2000- 00334. In the Pral Court of 9.) Sea sheet 2 of 2 for survey plat. iOL Easement wasted by E.E. GEE9JiG to LONE STAR GAS q . ..... COMPANY Sled N. 1Z 1926, raoarded h Y.W. 205, Page 4.) This survey was prepared with benefit of that certain Title Commitment OF NO. IOSW7, effective date of May 13, 447. Deed Reowda of Dwntan County, Tema.. 2014, provided by Title Resources auarnty COMM. For easements, rights -of -soy, and /or other matters of record that may affect this tract, the surveyor relied solely on NO Title Commitment. ion. Ecommo t executed by O.V. RUSSELL at d to TEXAS POWER 10.372 ACRES & LIGHT COMPANY filed April 17. 1937. ram In Volme 265. SURVEYOR'S CERTIFICATE Pope 215. Deed Reswde of Denton County, Texas. M. FORREST SURVEY, ABSTRACT x0.417 tow Easement executed by C.M. WEST and wills, MRS. MILDRED To: John Powell Walker at al, Title Resources Guaranty Company and the City of Denton, Texas: rd d � r n Volume 355.. Page D�eedReReco�efCenier, County, Tom, I, Todd B. Turner, Registered Professional Land Surveyor, State of Texas, do hereby certify that this survey substantially complies with the current Texas Society of Professional Surveyors top Eoeemwnt executed by MARY GEESUNG et d to TEXAS and 0cifications a Category POWER 3 LK14T COMPANY fled June 2Z 1956. recorded in 1A, Condition II survey. Volume 42Z Page 41% Deed Reeorde of Denton County, Texas. tor. Easement executed by EE GEESLING and wtk MYRTLE :;3 0 F �• F GEESLING to 70M POWER a LIGHT COMPANY fled September is 1964, h Page 529. Deed RecaMe t 5 T ERFO recorded Volume 513, of Dalton County, Texas. �P•F.G 9 Las Easement wrested by JAMES K RUSSELL. JR. TRUSTEE to Todd B. Turner. RPLS � ..:......................... TEXAS POWER • LIGHT COMPANY fled Mad n 21, 1960, recorded Firm Registration Number 10011601 TODD B TURNER In Vcllme 1007. Pope 909, Deed Reoerds of Denton County, Original Survey Date: February 27, 2013 ..w .....................V.. Te1as. Revision Date: June 04, 2014 - Update Survey t o 4859 IOL Easement -waded to OOSERV GAS, LTD„ by }ldpwmwnt and Address Schedule B items uldser Comma No. ED -2000- 00334. In the Pral Court of •%CipE S 5 t 0�'V O� as Dentan County, Town, Exhibit "A" to q . ..... S Contract of Sale LAND TITLE SURVEY AAW teague nail & perkins Page 15 of 23 10.372 ACRES iS17 COMM Fleet DAve, suEe sEO Contract of Sale tnp BEING SITUATED IN THE M1177p.wma7ao6 iwoafaw177p1 940.281.9o24ex M. FORREST SURVEY, ABSTRACT x0.417 "'"' j"yIft- CITY OF DENTON, SHEET 1 OF 2 2014 COMMIT era NA:1 Ann n+�s era ALL its ate DENTON COUNTY. TEXAS ��• utF _ _ — — NDTE: see eneel 1 of z for local description and notes. LAND TITLE SURVEY - - - I LYNELL CAW000 E ibit "B" to 10.372 ACRES ooc N0. 95- 0034862 Co ract of Sale 1W W R.P ' R. D. C. T. y 1� CALLED 1.043 ACRE 1 ��� SHEET 2 OF 2 a tt I * Q� REMAINDER OF CALLED 97.277 ACRE TRACT 0 ao so 120 Z. �c, JOHN POWELL WALKER et d I !4, ,`"7' DOC. N0, 93-0034125 SCALE- 1 • .120' POINT OF 1 = Is ee�'1e- E - 337.0'] Q +i r R.P.R.D.GT. BEGINNING �. 7/2- PF C.M. 8 87.69'22' E - 715.70' THE GEESLNC 1 PROPERTY TRUST. 1 GEESLaR. CASSAWAY ,N0 COUNTY. NC. DOC. NM 2005 -50246 RP.R.D.GT. AL40 mv CALLED 43.049 AC i I 10.372 ACRES 1 " PART OF °3- Na W ' CALLED 97.277 ACRE TRACT z�.D•M. 1 I: CALLED 20.00 Ac JOHN P0INELL WAL91:R et al I DOC. NO. 93-0034125 ►6 = a R.P.R.O.C.T. 1 a 1 APPF40MAIE ODf ULICM OF TEW .D.at a Lon CO. Olt NpR- or -11b1Y 3 1 2K m2" (VADI 1 N 0IOUNI D) nn N I w /iicJ ?- Al,C A,; f 7 I A= g I o \'Q' Tb O. �ipalK OF O 1� do 4 sr�, pry � , •y 301. Nee � w s49.31 TM 1 cA ;� - 649.48' Mp o EA2tA� 1 Q \\ \ \ or Q.Y t!w► .ea enON er. OPO. LIP /LJ�C7��J 2003-194878 3- C \ ~ \ ( = WL J2F DEN. N R.P.R.0.0.T. R.P.R. D.C.T. _ CALLED 20.00 AC I OF \ CALLED 0640 AC TEXAS POWER PG 163 COMPANY 1 VOL 1 \\ R.P.R.0.0.T. I I -WAY CALLED 2430 AC r01• "14 3466. 10' SRAWL 1N \ \ \\ TEXAS MLN11C1PAL TO iQ 1 u POWER AGENCY VOL 1027. PQ 165 n a¢ \ \ R.P.R.D.C.T. 1 $� I nu \ CALLED 1.424 AC TEXAS MUMCPAL POWER pr \ �\ aa�a tp'�y I N od 1 ICY p; ,w VOL 1149, PG 494 CALLED 3.02 AC AFKA AM \ \\ \ \\ tl I • ONE aNE� --.—aE Ic Ew 1 - do O"K 1 MLM _ \ Contract $! S\ ' AV aQ 1/2 CW \ _ ► �tWt /MMe July 3, 2014 Exhibit "C" to Contract of Sale I RE: Proposed DME Substation A 10.372 -acre tract situated in a 97.277 -acre tract conveyed to ,John Powell Walker, etal as described in Doc. No. 93- 0034125 of the Real Property Records of Denton County, Texas. To Whom It May Concern: As the owner of the referenced 97.277 -acre tract, located on Geesling Road, I hereby authorize Denton Municipal Electric to submit applications to the City of Denton for planning purposes for the proposed electric substation, including applications for a Specific Use Permit, plats and permits necessary for the proposed project. i V' Name Date Page 17 of 23 Contract of Sale Exhibit "C to Contract of Sale July 3, 2014 RE: Proposed DME Substation A 10.372 -acre tract situated in a 97.277 -acre tract conveyed to John Powell Walker, eta] as described in Doc. No. 93- 0034125 of the Real Property Records of Denton Co", Texas. To Whom It May Concern: As the owner of the referenced 97277 -acre tract, located on Geesling Road, 1 hereby authorize Denton Municipal Electric to submit applications to the City of Denton for planning purposes for the proposed electric substation, including applications for a Specific Use Permit, plats and permits necessary for the proposed project. Date Page 18 of 23 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 THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. DEED WITHOUT WARRANTY THE STATE OF TEXAS § COUNTY OF DENTON § WHEREAS, the City of Denton is authorized under the Texas Local Government Code Chapter 251 to purchase land and such other property rights deemed necessary or convenient. NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS: That John Powell Walker of Cleveland County, Oklahoma and William A. Martin of Dallas County, Texas, hereinafter referred to as Grantors, whether one or more, for and in consideration of the sum of Ten Dollars ($10.00) and other food and valuable consideration. The consideration recited herein represents a settlement and compromise by all parties as to the value of the property herein conveyed in order to avoid formal Eminent Domain proceedings and the added expenses of litigation, to Grantors in hand paid by the City of Denton, hereinafter sometimes referred to as Grantee, receipt of which is hereby acknowledged, and for which no lien is retained, either expressed or implied, have this day Sold and by these presents do Grant, Bargain, Sell and Convey unto the City of Denton all that certain tract or parcel of land lying and being situated in the County of Denton, State of Texas, more particularly described in Exhibit "A," which is attached hereto and incorporated herein for any and all purposes. Grantors reserve all of the oil, gas and other minerals in and under the land herein conveyed but waive all rights of ingress and egress to the surface thereof for the purpose of exploring, developing, mining or drilling for same; however, nothing in this reservation shall affect the title and rights of the Grantee, its successors and assigns, to take and use all other minerals and materials thereon, therein and thereunder. This conveyance is made by Grantors and accepted by the City of Denton subject to the following: 1. Visible and apparent easements not appearing of record. Contract of Sale Page 20 of 23 2. Any discrepancies, conflicts, or shortages in area or boundary lines or any encroachments or any overlapping of improvements which a current survey would show. 3. Easements, restrictions, covenants, conditions, oil and gas leases, mineral severances, and encumbrances for taxes and assessments (other than liens and conveyances) presently of record in the Official Public Records of Denton County, Texas, that affect the property, but only to the extent that said items are still valid and in force and effect at this time. TO HAVE AND TO HOLD the property herein conveyed, together with all and singular the rights and appurtenances thereto in anywise belonging unto said Grantee, its successors and assigns forever, without express or implied warranty. All warranties that might arise by common law as well as the warranties in Section 5.023 of the Texas Property Code (or its successor) are excluded. IN WITNESS WHEREOF, the instrument is executed on the day of , 2014. By: Printed Name: John Powell Walker Acknowledgment THE STATE OF § COUNTY OF § This instrument was acknowledged before me on 2014, by John Powell Walker. Notary Public State of Printed Name: My Commission Expires: Contract of Sale Page 21 of 23 By: Printed Name: William A. Martin THE STATE OF TEXAS § COUNTY OF § This instrument was acknowledged before me on 2014, by William A. Martin. Upon Filing Return To: The City of Denton - Engineering Attn: Paul Williamson 901 -A Texas Street Denton, TX 76209 Notary Public State of Printed Name: My Commission Expires: Send Tax Billing Statements To: The City of Denton Attn: Finance Department 215 East McKinney Street Denton, Texas 76201 Contract of Sale Page 22 of 23 LEGEND LAND TITLE SURVEY PROPERTY LINE - - ADJACENT PROPERTY LINE - - - - - - - - - - EASEMENT LINE - e-•-e- o- CHAIN LINK FENCE OHE ELECTRIC LINE C.M. CONTROL MONUMENT )PF IRON PIPE FOUND IRF IRON ROD FOUND CIRF CAPPED IRON ROD FOUND O IRON ROD FOUND (AS NOTED) ® 5/8 CAPPED IRON ROD STAMPED (TNP) SET o FENCE CORNER POST [ ] DEED CALL R.P.R.1 REAL PROPERTY RECORDS -a- SIGN © TELEPHONE UTILITY / POWER POLE E GUY MARE ® ELECTRIC TOWER STRUCTURE EDGE OF ASPHALT TIRE 00a6STMEHY NDTFS: STATE OF TEXAS COUNTY OF DENTON LEGAL DESCRIPTION - 10.372 ACRES ALL OF THAT CERTAIN LOT, TRACT OR PARCEL OF LAND SITUATED IN THE MOREAU FORREST SURVEY, ABSTRACT NUMBER 417, DENTON COUNTY, TEXAS, BEING A PORTION OF THAT CERTAIN CALLED 97.277 ACRE TRACT CONVEYED TO JOHN POWELL WALKER, ET AL AS RECORDED IN DOCUMENT NUMBER 93- 0034125 OF THE REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNINGat a 1/2 inch iron pipe found in the east line of Geesling Road at a westerly exterior comer of the said Walker tract, some being the southwest comer of a called 1.043 acre tract of land as described in a deed to Lynell Cawood, as recorded in Document Number 95- 0034882 of the said Real Property Records for the northwest corner of the herein described tract, from which a 1/2 inch capped iron rod found for the Northwest corner of said 1.043 acre tract bears North 02.41'52" East, [N 03'10'00" El a distance of 135.91 feet [135.65 feet! THENCE South 8753'22" East, [S 89'54'18" E] with the common line of said Walker tract and said Cawood tract, passing a 3/8 inch iron rod found at the southeast corner of said Cawood tract at a distance of 336.47 feet [337.00 feetj and continuing for a total distance of 715.70 feet to a 5/8 inch capped iron rod set and stamped "TNP' for the northeast corner hereof; THENCE South 01'56'26" West, a distance of 652.34 feet, to a 5/8 inch capped iron rod set and stamped "TNP ", for the southeast comer hereof, some being the northeast comer of a tolled 3.02 acre tract of land as described in a deed to Texas Municipal Power Agency as recorded in Volume 1149. Page 494 of the Deed Records of Denton County, Texas, from which a i/2 iron rod found for the most easterly southeast comer of said 3.02 acre tract bears South 48'05'31" West, [S 46'13'51" Wl a distance of 45.07 feet [45.10 feet! THENCE North 88'07'46" West, [N 89'59'49" W] with the common line of said Walker tract and said 3.02 acre tract a distance of 549.48 feet [549.5 feetl to a 5/8 inch capped iron rod set and stamped "TNP ", at an angle point of said Walker tract; MU RESOURCES GUARANTY COMPANY GF NO. 145067 THENCE North 38'36'05" West, [N 40'27'41" W] continuing with said common line, a distance EFFECTItE DATE MAY 10. 2014 of 255.79 feet [255.0 feetj to a 5/8 inch copped iron rod set and stamped "TNP ", some OOIApT1E1tT DATE: ,TINE 02. 2014 being the northwest comer of said 3.02 acre tract, and the westerly southwest comer of said THIS TRACT ISSUB ;ECrroTM FOLLOWING eiArea:TEASaWxrs Walker tract and lying in the east line of Geesling Road; 1p�, F.ee�wnent executed b E.E. GEESUNG and wft MYRTLE 1LF Sato at d to Low SVAAR GAS COMPANY Reid May 9. 1957, THENCE North 01'56'46" East, [N 00'00'11" W] along the common line of sold Walker tract "scolded In vallow 429. Pape gas. Deed Records of Denton and the east line of said Geesling Road, a distance of 460.75 feet [459.04 feetj to the county' Tom 0ocation and WAth unaeflr*4 POINT OF BEGINNING and containing 10.372 acres of land more or less. THE FOLLOWING SCHEDULE s ITEMS DO NOT AFFECT THIS TRACr tall. Easement ewlauted MRS. J.T. BDTTORFF et d to LANE STAR OAS COMPANY flea May Z7. 191s. noordW In Vdume /4s, Pop 412. Dead Reowde of Dwtton Countx Taos. 1OL Ecowneat executed b1 917 GEESLN/0 to LONE STAR OAS COMPANY Sed Am 6. 1 ' In 626, Deed Rsoa A of nettle f pmnnty, Tom VaNmne 107. Prise 101 Eaeemeot smuted by SIM LEESL ING to TEXAS POWER A LIGHT COMPANY GW Decernbeir 19% Page Deed Records of Den 9 in Vduhe tonCCounty. Two& r LIGHT MANY fled D�iownber 23. 11924, raOOrded in Vdume 196. Pope e0, Deed Reowde of Denton Cour ft Taros. tOL FaserHlerlt warted by EE.ed M �� 205. � GAS COMPANY fled June 12. 1926 447. Deed Records of DwAm Canty. Taws. ton. Eamnerd swwted by O.V. RUSSELL at Of to TEXAS POWER ♦ LIGHT COMPANY fled April 17. 1937. reowded In Vouane 25% Pope 215. Deed Records of Denton County. Taws. This description is based on the Land Title Survey and Plot made by Todd B. Tumor, R.P.L.S. No. 4859 on June 04, 2014. SURVEY NOTES: 1.) searLlpe of lines Shown hereon refer to Grid North of the T7wu CaoroLlate system Of 19" (Nerd) central zone; NMD59(CC 111) fah 4002.00) as derived locally from Western Data Systems Continuously Openr -inb Reference stations (011116) via Real Time Kinematic (RTK) methods. An average Combination Factor Of 0.9008== wrs used tO scale surface distances to grid. All distance$ sham hereon represent grid values. 2.) The utilities shown on this survey are based upon the available information and 'field locate* of visible above grouts markings provided by TIP SUE DEPT. TNP relied solely on the cooperation Of the various utility companies and any Llforatlm they sede available. Underground facilities have not been field verified. There may be additional utilities that TNP has trot been advised of. 5.) See shoat 2 of 2 for survey PLIt. 4.) This survey was prepared with benefit of that Certain Title Commitmsot BF NO. 196507, effective ate of may is, 2014, provided by Title ResecrOn Guaranty Company- For sasements, rights -of -ray and /or Other mttera of record that may affect this tract, the surveyor railed salsly on said Title Commitment. CERTIFICATE too. easonent sombild by c.M. WEST and wH% MRS. M6LDRED To: John Powell Walker at al, Title Resources Guaranty Company and the City of Denton, Texas: WEST to TEXAS POWER t LIGHT COMPANY filed March 23. 1950, qty. T vahnl7 356 Pog7 609, 07ad Records of Denton 1, Todd B. Tumor, Registered Professional Land Surveyor, State of Texas, do hereby certify that lap. Eaeemwlt waled by MARY GEESUNG et a to TEXAS this survey substantially complies with the current Texas Society of Professional Surveyors POWER b LIGHT COMPANY 1MA G 22. less recorded in stondor and ecifieations a Category 1A, Condition II survey. VaNlme 42$ Page 419, Deed Records of Denton County. Taws. O F tar. E sernalt executed by E.E. GEtSUNG and wife. MYRTLE % 6fESLN10 to TEXAS POWER • LIGHT COMPANY fled Septwnbw •,•••••••• 16, 19641 cod In Vbumne 513. Pogo 526. Deed Records of /`Q`,�.GL STEW• "•.;1 Denton Canty, Two ��� •'9tl1 toe. Eaarnent sweated by JAMES H. RUSSEU..:L. TRUSTEE to Todd B. Turner, RPLS 7E AS POWER R LIGHT COMPANY filed Mardi 21, 19ga raoarded Firm Registration Number 10011601 TODD S. TURNER in Voila" 1007. Pose Dee, Deed Records of Denton Canty. Original Survey Date: February 27, 2013 ..% ..................... V.. Texas. Revision Date: June 04, 2014 - Update Survey �.q 4859 10L Easement awarded to COSERV CAS, LTD., b judgwnent and Address Schedule B items 6 %. PEW undew Case Ns, ED- 262000 -- 00334. In the Probate Court of .......... • • O Denton Canty, Taws, Exhibit "A" to Clio !league nail parkins 1517f11 d 5 A'6' e 410 tnp 1,111le44 Ymw 76211040.341,11177 ph 940.455ei he . vwvwlepMeae1 Deed Without Warranty LAND TITLE SURVEY 10.372 ACRES Page 23 of 23 Contract of Sale BEING SITUATED IN THE M. FORREST SURVEY, ABSTRACT NO. 417 CITY OF DENTON, SHEET 1 OF 2 DENTON COUNTY. TEXAS City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN"1 ON File #: ID 14 -0432, Version: 1 Legislation Text AGENDA INFORMATION SHEET DEPARTMENT: Materials Management ACM: Bryan Langley AGENDA DATE: August 19, 2014 SUBJECT Consider the adoption of an ordinance of the City of Denton authorizing the City Manager or his designee to execute a contract through the Buy Board Cooperative Purchasing Program for the acquisition nine (9) refuse truck chassis and (5) refuse bodies for the City of Denton Solid Waste Department; and providing and effective date (File 5622- Purchase of nine (9) refuse truck chassis and three (3) refuse bodies from Rush Truck Center, Crane in the amount of $1,600,512.00 and two (2) refuse bodies from McNeilus Truck and Manufacturing Co. in the amount of $166,370.00). The Public Utilities Board recommends approval (5 -0). FILE INFORMATION This item is for the purchase of nine (9) refuse truck chassis and five (5) refuse truck bodies. The chassis are Peterbilt Models 320, 567, 337. The bodies are a Galbreath Model AF -OR -174 roll off body, CH8000R container handler body, and Southwestern Equipment Company Model Champion commercial side load body. All nine (9) chassis and three (3) bodies will be purchased from Rush Truck Center, Crane for $1,600,512.00 through Buy Board Purchasing Program contract 4430 -13. Two (2) McNeilus Model 2511 rear load bodies will be purchased from McNeilus for $166,370.00 through Buy Board contract 4425 -13. The three (3) Peterbilt Model 320 chassis will be powered by diesel fuel and the remaining six (6) will be powered by Compressed Natural Gas. All of these chassis and bodies but one will be replacements for 2004 -2007 year model refuse trucks that have met the Fleet Department's replacement criteria based on age, maintenance cost, and mileage. The one (1) commercial side loader is an addition that was approved through the 2013 -2014 Fiscal Year Budget. PRIOR ACTION /REVIEW (COUNCIL, BOARDS, COMMISSIONS) On August 11, 2014, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. RECOMMENDATION Award the purchase of nine (9) refuse truck chassis and three (3) refuse bodies from Rush Truck Center, Crane in the amount of $1,600,512.00 and two (2) refuse bodies from McNeilus Truck and Manufacturing Co. in the amount of $166,370.00 for a total award of $1,766,882.00. City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: ID 14 -0432, Version: 1 PRINCIPAL PLACE OF BUSINESS Rush Truck Center, Crane McNeilus Truck and Manufacturing Co. Irving, Texas Villa Rica, Georgia ESTIMATED SCHEDULE OF PROJECT The purchase and installation of the refuse bodies on the chassis will occur within 180 days of purchase order issuance. FISCAL INFORMATION This item will be funded from department operating accounts shown on Exhibit 1. Requisition# 120277 to Rush Truck Center, Crane in the amount of $1,600,512.00 and Requisition# 120274 to McNeilus Truck and Manufacturing Co. in the amount of $166,370.00 have been entered in the Purchasing software system. EXHIBITS Exhibit 1: Vehicle Replacement List Exhibit 2: Quotes for chassis and bodies Exhibit 3: Standardization Memos Exhibit 4: Public Utilities Board Minutes Exhibit 5: Ordinance Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance For information concerning this acquisition, contact: Terry Kader at 349 -8729. City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl i.q 1LL� L� IMryF� F+�I Iry V W .L •N N N N N N N N N N N N - 3 0 N 0 N 0 N 0 N 0 N 0 N 0 N 0 N 0 N O N O N O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O m m m m m m m m m m m Ln Ln Ln Ln Ln Ln Ln Ln Ln Ln Ln c Ln m Ln m Ln m Ln m Ln m Ln m Ln m Ln m Ln m Ln m Ln m 3 ti ti ti ti ti ti ti ti ti ti ti u a Ln Ln �o Ln Ln Ln Ln �o a Ln a rn rn rn rn rn rn rn rn rn rn rn o N ti N a N a N m N rn N N N m N �o N o N ti N O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O V1 V1 In V1 O O rV N W to W to c-I c m ti to a -zt O n Lr n v1 to m 14 Lr W ti W ti r� m n m cy v1 00 00 rn rn m ti to n n n n n n n n m O O m m m m l0 W to �o O O l0 kD N N N N N N N N N k rl N to I� N N N r C 3 O ti m O ti In to O r, ti m c a t Ln Ln ��� r a s Ln Ln Ln Ln Ln Ln Ln Ln Ln Ln Ln Ln Ln Ln Ln v w E w E w E w E w E w E w E w E w E w E w E w V w U w U w U w U w U w U w U w U 0 w U w U f6 f0 f0 f0 f0 f0 f0 f0 f0 f0 f0 Q Q Q Q Q Q Q Q Q-a Q Q Q V � � V i O n n in m p x W- Q Q Ln Ln Q O in in V 0 2 2 in in J Q Q Q Q Q 2 2 p p m p p Q O m O m 3 Q Q CD F Q Q LL z p p 0 0 Q Q O O LL n n J J 00 o O<, z z w - Z O H O H T w w 0 0>> O w w F K K K V Q Q LL LL V K K C V Q O 3 u F m rn o ti N m a n o m rn L u a a a a a a a a a Q m a m a Q Z s Z t w ti ti ti ti ti ti ti ti ti F O ti ti F O " u, 3 Q > Y p p O O O C m w m to > V > � K m m EXHIBIT 2 Rush Truck Center, Crane 7f" PO Box 200105 San Antonio, TX 78220 Its �I "� 877 - 661 -4511 Denton, City of 901 -B Texas St Denton, TX 76201 -4354 940 - 349 -7100 Terry Kader Quote 1. SW1438,SW1439 Customer Proposal Letter Terry Kader, thank you for the opportunity to earn your business. We look forward to working with you on your business needs. Please accept the following proposal. VEHICLE Make Peterbilt Model 567 Year 2015 Stock Number To Be Determined Additional Vehicle and Accessories Description To be delivered on or about 11/28/2014 New 2015 Peterbilt model 567SB X12 -GAS engine, Allison trans, 20 front 46 rear Painted Sirus White Effect. Includes 80 gallon DGE fuel system. Engine warranty 5/300 included Allison 5yr warranty. Peterbilt Chassis warranty 2/200. ship to McNeilus for REL mount, return to CVS for post PDI and delivery.. Available on BuyBoard Contract #430 -13 Quantity Truck Price per Unit F.E.T. (Factory & Dealer Paid) Net Sales Price Optional Extended Warranty(ies) State Sales Tax Documentary Fee Administration Fee Vehicle Inventory Tax Additional Taxes Tire Recycling Program Battery Disposal Fee Out of State Vehicle Fee Rebate(s) Total Sales Price (Including Rebate(s)) $187.028.00 $0.00 ....... $187,028.00 $5,607.00 $50.00 Total $374,056.00 $0.00 $374.056.00 $11.214.00 $100.00 $192,685.00 $385,370.00 Trade Allowance (see DISCLAIMER Below) $000 Sales Representative Hal Hc)llr)wav signature printed name Purchaser signature printed name title date Accepted by Sales Manager or General Manager g signature printed name Quote good until 11/30/2014 Note: The above Customer Proposal is a quotation only, Sale terms subject to approval of Sales Manager of Dealer. DISCLAIMER: Any order based on this Proposal subject to Customer executing Dealer's standard form Retail Purchase Order incorporating above terms. Any docurnerelary fees, slate tax, title, registration and license fees subject to adjustment and change„ Actual F.C,T. to be paid by Dealer, subject to adjustment, Any F,E.T.. variance will be responsibility of Dealer,. Manufacturer has reserved the right to change the price to Dealer of any vehicle not currently in Dealer's stock, without notice to Dealer. If Quoted Vehicle(s) not currently in Dealer's stock, Dealer reserves right to change Quotation Total to reflect any price increases from Manufacturer, This Proposal is based upon Dealer's current and expected inventory, which is subject to change, Dealer not obligated to relain any specific vehicles in stock, rior maintain any specific inventory level. Dealer shall riot be obligated to fulfill Proposal in event quoted vehicles) not in stock or available within requested delivery schedule at time Proposal accepted, Dealer shall not be liable for any delay in providing or inability to provide Quoted Vehicle(s), where such inability or delay is due, in whole or in part, to any cause beyond his reasonable control of Dealer or is without the gross negligence or intended misconduct of Dealer„ Above listed Trade Value based upon current appraisal of Trade Vehicle(s), Dealer may adjust Trade Value of Trade Vehicle(s) to reflect changes in condition and /or mileage of Trade VohicBe(rip between date of cun011I and acce[nTwo 01 Chu; tlra,opowoil by cu icinmr, Printed on 8/7/2014 at 2:46 PM. Denton, City of 901 -B Texas St Denton, TX 76201 -4354 940 - 349 -7100 Terry Kader Rush Truck Center, Crane PC Box 200105 San Antonio, TX 78220 877 - 661 -4511 EXHIBIT 2 Quote 2 SW1440 Customer Proposal Letter Terry Kader, thank you for the opportunity to earn your business. We look forward to working with you on your business needs. Please accept the following proposal. VEHI IL.. Make Peterbilt Model 567 Year 2015 Stock Number To Be Determined Additional Vehicle and Accessories Description To be delivered on or about 11/30/2014 New 2015 Peterbilt model 567SB X12 -G GAS engine, for Roll -off complete unit, Allison trans, 20 front 46 rear Painted Sirus White Effect. Includes 80 gallon DGE fuel system. Engine warranty 51300 included Allison 5yr warranty. Peterbilt Chassis warranty 2/200. Includes roll -off mounted at CVS, Denton Available on BuyBoard Contract #430 -13 Quantity 1 Truck Price per Unit $226,254.00 F.E.T. (Factory & Dealer Paid) $0.00 Net Sales Price _ $226.254.00 Optional Extended Warranty(ies) $5.607.00 State Sales Tax Documentary Fee $50.00 Administration Fee Vehicle Inventory Tax Additional Taxes Tire Recycling Program Battery Disposal Fee Out of State Vehicle Fee Rebate(s) Total Sales Price (Including Rebate(s)) $231,911.00 Total 26,254.00 $0.00 $226,254.00 $5,607.00 $50.00 $231,911.00 Trade Allowance (see DISCLAIMER Below) $0.00 Sales Ro resentabve p I -lM HolGowa, signature printed name Purchaser signature printed name title date Accepted by Sales Manager or General Manager g signature printed name Quote good until 11/30/2014 Note: The above Customer Proposal is a quotation only. Sale terms subject to approval of Sales Manager of Dealer. DISCLAIMER: Any order based on this Proposal subject to Customer executing Dealer's standard forrn Retail Purchase Order incorporating above terms. Any documentary fees, state tax, title, registration and license fees subject to adjustment and change. Actual F,E.T, to be paid by Dealer, subject to adjustment. Any F.E,T,. variance will be responsibility of Dealer. Manufacturer has reserved the right to change the price to Dealer of any vehicle not currently in Dealer's stock, without notice to Dealer. If Quoted Vehicle(s) not currently in Dealer's stock, Dealer reserves right to change Quotation Total to reflect any price increases from Manufacturer, This Proposal is based upon Dealer's current and expected inventory, which is subject to change,. Dealer not obligated to retain any specific: vehicles in stock, nor maintain any specific inventory level, Dealer shall not be obligated to fulfill Proposal in event quoted vehicle(s) not in stock or available within requested delivery schedule at time Proposal accepted, Dealer shall not be liable for any delay in providing or inability to provide Quoted Vehicle(s), where such inability or delay is due, in whole or in part, to any cause beyond the reasonable control of Dealer or is without the gross negligence or intended misconduct of Dealer. Above listed Trade Value based upon current appraisal of Trade Vehicle(s). Dealer may adjust Trade Value of Trade Vehicle(s) to reflect changes in condition and /or mileaoe of Trade Vehicle(s) between date of current appraisal and acceptance of this Proposal by Custorner, Printed on 8/4/2014 at 4:39 PM.. Denton, City of 9O1'B Texas {U Denton, TX702O14354 940'348'7100 Terry Kader EXHIBIT 2 Terry Kadar, thank you for the oppOronitytmemrm Your business. VVe look fonwerdbz working With YOU On Your bVSineSS needs. Please accept the following proposal. Make Peterbilt k8o Year 2015 Stock Number To Be Determined Additional Vehicle and Accessories Description Tbbe delivered ono/about 1180/2014 New 2015 Peterbilt model 337 for Contailer Handler and Delivery unit Includes Wastecluip CH8000-R, Work Lights, high visibility package, tower and bumper strobes. I Bx1 8x36 Tool Box installed in Denton- Peterbilt factory warranty 3/200, PX7 warranty 5/200 engine and aftertreatment. Allison 5yr warranty. Available onouyeoard #*30-13 Quantity Total Truck Price per Unit F£T. (Factory & Dealer Paid) Net Sales Price Optional Extended Wanunty(ioe) State Sales Tax Documentary Fee Administration Fee Vehicle Inventory Tax Additional Taxes Tire Recycling Program Battery Disposal Fee Out of State Vehicle Fee Rebate(s) Total Sales Price (Including Rebate(s)) Trade Allowance (see DISCLAIMER Below) Sales Representative °on°m," pumxomo, $117.191.00 $117,101.00 � M General ManmVe �� �� prirAed twirrm Quote good until 11130/2014 Note: The above Customer Proposal is a quotation only. Sale terms subject to approval of Sales Manager of Dealer. subrre;�mnusmrm'j MCUling Dcarror'�;m=dord Conn wal iluy&wseardev rlconwyra�[Jrrg cib=��s Any df,�[ inui"iriv»ees,»ia�e iax, eiie, regisIrvalron and o=o°"N='uw"m*"a*^^"""'""rl change, **"WpFzm^°wvubyoek/=".moc.to°d "*°="� Any p,cr vroamwroor,nsw"wuHy"/v""m'war"au"ro,'m* reserved m"'wmwm.ing°tire IpIrimwm=uma oy VeNclu =^"".~w,moeAiw s sIroGik, wfthow norice ra Deriier vq=�edvehm"*/ not =",w^lymm�ev',r`ic"*o=m Iem"° flgmm change o"mwwrmwmIemuany price mueas=».~w="m"m= rw"^"po=/mho=*.r="mmwrs cumW and wp"c/edm=m/u".°:wn/"mw^**change on"wm*omkp"mdm,eu/" any ,pecift vumc!"=*°Irock. nor mpmamany nramkmvexor, m"rwm"w.o( be otAgaied W wWl Roposrfl /n nwrW cuded °mm°w not m Mock °"vaii4bmwimmrenuem° o°m°nmx=dumwwmpm,WSwucc"w"du=ior shall not im wm=m.ai.'dercay*vm..omu^,/nrwx/y* provide ox)wdmmicr*"). where such m^^o'.'u,*eay/^ due, mwhoI"fmm part, m='w""nuuy""^m°,°°mo"m"=°ommo°i/ero,-/"wim=�m"gross neqiiqan�e or irqerdr,-r minconduc� or Dearer Above noeo Tradu Vorue I,,awd up(.m wront opprar5ar of �Iado Vehd,4s), Dealer may adjust Twie, Vaiu or Trode Vehidu(s) �rr refler.,r charq(�% in condi�,on Demon, City of QD1-BTexas St Denton, TX7u2O1-4354 940-349-7 100 Terry Kader Rus hTruck Center, Crane po Box 000105 San Antonio, Tx/uxxn EXHIBIT 2 Terry Kader, thank you for the opportunity to earn your business. We look forward to working with you on your business needs, Please accept the following proposal. VEHIC'' Make Peterbilt Model 320 Year 2015 Stock Number To Be Determined Add�ona|Vehidoand Accessories Description Tbbo delivered nnorabout 11 /30/2014 New uo1opetemxnounxx1n Diesel for xoL ay, Allison. potemm2moo chassis warranty, Cummins mxoo Plan 1 Engine and mxrumatoen|warranty momdou. Includes Body Quote from SEC for a Commercial Side Load body from BuyBoard contract 425-13 Entire unit available ^neuyaoamQuote 430'13 Includes mmm and Dual Ao Installed mPhoenix. Quantity To4o| � Truck Price per Unit / F£T,(Fmctory & Dealer Paid) Net Sales Price Optional Extended Wannmy(|ao) | State Sales Tax Documentary Fee | Administration Fee � Vehicle Inventory Tax Additional Taxes Tire Recycling Program � Battery Disposal Fee Out of State Vehicle Fee Rebate(s) Total Sales Price (Including RebateN) 67.00 $156,467.00 Trade Allowance (voo DISCLAIMER Below) Sales Representative Hal Hollowav pnnN"=iln° punmenor *«=*rA prinum==" w° d"m Accepted oySales Manager or General Manager "w=m� printed name Quote good until 11/3Uoo14 wm*�rw"uvvvuvymmo,pmnn� |i,unumm/onvo|�som�nnasvNemmanpmv |mov|ovmanuoo,o,00um: - - MER Arry or&v based on fl' is ��m������"���.p���"��*������������� levwwrm"v'gum)6m=*.m�'=*w=qm^purd,er0mpaW bynea[�n'"^�'"vum°w"15t"lor^mrr c If' va,lam,��°mbe .��`�amo�° u="um==^=°se°ndm°*mmu=w m~ ,""".mo°u",°'�,'lnvvo^w°~*curre"�v /"o"uk,"°=1k, w[m.o` mmxm, xu"m�m*m"w"C�[ MlIrly',11iryao~**m°*'u"*pr w'sw~°",mhilmmNinw=o"m"uOrt`wWlm,"am='prl= ^=m=ufa� Vol , I his P!CJp0srA*r'&�nd"���������Q1'JVer[J'fyy=h7�h ��' mlh�ovlw.�hl�nqe D'r'fl=no ".O*p��dmFe��������"�� ^l kwul mealw.^"o.~'wumwu"^*wmuProp.^a/*~ve"*.md"+[cl**"m*^wA of mv"°"*uo°on�lry"u�*mn�'Jv=°'rep°al"="nm*m=/~,shm"mr'! hrrm°ro� 'my ^m�mp~vidmo Oil mabfm to pi "* "m°wovmm�*��°=* wwola, m°ho°orm part, *=v��nus"^ey=w*°rk��'L°=�°un^moiro°���°m"° "i°wori° °/"w.u"vru*^or*"m"m°"�o, ^lho)=N�'wd 11 -;H" Value, ir""Ismupon (:u.='°pri wr=m"+"/m9�°, me'rllm,"ita/°wwrn"w"*"m"mn°diwwu~wmwo=,*=m"s /"u,."fio"" � ap"m= ul� Glurlon ao, � Printed on 8/1/2014 at 4:01 PM i Denton, City of 1901-B Texas St Denton, TX 76201-4354 940-349-7100 Terry Kader Rush Truck Center, Crane PO Box 200105 San Antonio, TX 78220 877 - 661 -4511 EXHIBIT 2 Quote 5 SW1443 MUM= 'Terry Kader, thank you for the opportunity to earn your business. We look forward to working with you on your business needs, Please accept the followin�,,,j proposal, VE111CLE Make Peterbilt Model 320 Year 2015 Stock Number To Be Determined Additional Vehicle and Accessories Description To be delivered on or about 11/30/2014,,.,,.,.- New 2015 Petebilt 320RH ISL-G for ASL, includes 5yr Allison, Peterbilt 21200 chassis warranty, Cummins 51300 Plan I Engine and aftertreatment warranty included. Includes foam and Dual AC installed in Phoenix. Quantity Total Truck Price per Unit 4. $147,640.00 F.E.T. (Factory & Dealer Paid) . . ......... ... Net Sales Price $147640,00 $147 640 .................. ......... . ...... . ................. . ........... --- Optional Extended Warranty(ies) $ &00 State Sales Tax .......... . . . .......... Documentary Fee n sso n It 0.00 . . . . . . . . . . 150.00 Administration Fee Vehicle Inventory Tax Additional Taxes Tire Recycling Program .... ..... . Battery Disposal Fee Out of State Vehicle Fee Rebate(s) Total Sales Price (Including Rebate(s)) $157,048.00 $157,048.00 Trade Allowance (see DISCLAIMER Below) Soli es knpwsentrJflve Hal Hollowav Purchaser ---- - ----- . .... ...... Accepted by Sales Manager or LL General Manager sIgnature printed name Quote good until 11/3012014 Note: The above customer Proposal Is a quotation only. sale terms subject to approval of Sales Manager of Dealer. ISC� AINWR� Any oi dw hiseld On lhk P" raws,�[ subll?�A to ClAsljomer 110,Ww hill dard form R,�t&� I 'Imdhane Oakir Ill uv Pop i�*vN gbove Wi v(ce la bemo of ony V.JrJJC:I,; Yo currmn(ly In r7enial'& olock, Y?0,vQA nolkx, Dwflw ff QuoWd Vnh:dn(s) not Eawendy In Dealor's ,Iock, D '�,Mer mwirves I 'Ogg W Owrw ', C)uo4."Ucn r olai] I alh�d viny prl- Irl"4(w,G5 krjlu: WrK01",y;hPml- NNS PIQ1,103,11 IS I r,[ r1rid cxrleclx,�d nveWoi W, %,fi!dI 6�� 61,bIec� t, chnmva', DnnIor DO vuga cn, Co mi.alrii anv spvg;[�IC In Slol,"J,, Ar[y Dealer shhll nwbv rAPIkUaIl,n1 t0 khIN1 P olpns,A In spank 0.m av,,Il ably wlr .fl I! n I eque"AW do I Ivn I, Y -,nadiii I o oll (jaw Proposal oiccopllad, Deq7cln shflk I[ mll L I{alilo iQrnnydelay III pwvkfirq or InalARY I,,, p ov[de QLIOVO %➢uw iu1,rch lwtlblutyov dolay Vs khm, CYO NV. hoh, or Iv INO, W Any cmme Wyond Ilk gensonabIu axMlArol op DcAo oe lsw6flmut she 9yor's rlo,gkeuarxx, P., rn[�,�xmdifnV of Deale( AL,ovall lled qpo!, lo TroIo loy mlusl, liad , V Iu,, cf"0.uwfe viullicll,.Itp� vllaivjed. In QC111'Ho" a I u I Uou uvrolllernye. or I padc�, vclkVsi botween dwe 0 curto! A op I: III P � lll�'S IluorwsiT by Cwslnnnw W... ... .... ........ .. Printed on 8/1/2014 at 2:01 PM, ENTERS] Denton, City of 901 -B Texas St Denton, TX 76201 -4354 940 - 349 -7100 Terry Kader Rush Truck Center, Crane PO Box 200105 San Antonio, TX 78220 877- 661 -4511 EXHIBIT 2 Quote 6 SW1444 , SW1445 Customer Proposal Letter Terry Kader, thank you for the opportunity to earn your business. We look forward to working with you on your business needs. Please accept the following proposal. ' EMIC :, Make Peterbilt Model 320 Year 2015 Stock Number To Be Determined Additional Vehicle and Accessories Description To be delivered on or about 11/30/2014 New 2015 Petebilt 320LH ISL -G for CFL, includes 5yr Allison, Peterbilt 2/200 chassis warranty, Cummins 5/300 Plan 1 Engine and aftertreatment warranty included. Includes foam and Dual AC installed in Phoenix, Quantity Truck Price per Unit F.E.T. (Factory & Dealer Paid) Net Sales Price Optional Extended Warranty(ies) State Sales Tax Documentary Fee Administration Fee Vehicle Inventory Tax Additional Taxes Tire Recycling Program Battery Disposal Fee Out of State Vehicle Fee Rebate(s) Total Sales Price (Including Rebate(s)) Trade Allowance (see DISCLAIMER Below) Sales Representative signature Purchaser signature title Accepted by Sales Manager or General Manager Signature $148,171.0 $0.00 $148,171 00 $9,358.00 50.00 $157,579.00 Hal Holloway printed name MmIam printed name Tota 1 $296,342.00 $0.00 $296,342.00 $18.716.00 $100.00 $315,158.00 '0.00 Quote good until 11/30/2014 Note: The above Customer Proposal is a quotation only. Sale terms subject to approval of Sales Manager of Dealer. w DISCLAIMER: Any order based on Phis Proposal subject to Custorner executing Dealers standard form Retail Purchase Order incorporating above terms,. Any documentary fees, stale lax, title, registration and license fees subject to adjustment and change., Actual F.E.T. to be paid by Dealer, subject to adjustment. Any F.E.L. variance will be responsibility of Dealer. Manufacturer has reserved the right to change the price to Dealer of any vehicle riot currently in Dealer's stock, without notice to Dealer, It Quoted Vehicle(s) riot currently in Dealer's stock, Dealer reserves right to change Quotation Total to reflect any price increases from Manufacturer.. This Proposal is based upon Dealer's current and expected inventory, which is subject to change.. Deafer not obligated to retain any specific vehicles in stock, nor maintain any specific inventory level. Dealer shall not be obligated to fulfill Proposal in event quoted vehole(s) riot in stock or available within requested delivery schedule at time Proposal accepted, Dealer shall not be liable for any delay in providing or inability to provide Quoted Vehicle(s), where such inability or delay is due, in whole or in part, to any cause beyond the reasonable control of Dealer or is without the gross negligence or intended misconduct of Dealer,. Above listed Trade Value based upon current appraisal of Trade Vehicle(s)., Dealer may adjust Trade Value of Trade Vehicle(s) to reflect changes in condition andfor mileage of Trade Vehicle(s) between date of current appraisal and acceptance of this Proposal by Customer, Printed on 8/7/2014 at 2:19 PK I Rush Truck Center, Crane PO Box 200105 San Antonio, TX 78220 877 -661 -4511 Denton, City of 901 -B Texas St Denton, TX 76201 -4354 X940- 349 -7100 Terry Kader EXHIBIT 2 Terry Kader, thank you for the opportunity to earn your business. We look forward to working with you on your business needs. Please accept the following proposal. VEHICLE Make erbilt rbil _wti w_,ww Year v2015 www Stock Number To Be Determined Model 320 e Additional Vehicle and Accessories Description To be delivered on or about 11/30/2014 New 2015 Petebilt 320RH X12 Diesel includes a Champion Commercial Side Load body per quote from SEC. Syr Allison, Peterbilt 2/200 chassis warranty, Cummins 51300 Plan 1 Engine and aftertreatrnent warranty included Includes Body Quote from SEC for a Commercial Side Load body from BuyBoard contract 425 -13 Entire unit available on BuyBoard Quote 430 -13 Includes foam and Dual AC installed in Phoenix. Quantity 1 Truck Price per Unit $232,284.00 F.E.T. (Factory & Dealer Paid) —1049-0 Net Sales Price ,3�2 284 00 Optional Extended Warranty(ies) 5 033.00 State Sales Tax Documentary Fee $50.00 Administration Fee _ Vehicle Inventory Tax Additional Taxes Tire Recycling Program Battery Disposal Fee Out of State Vehicle Fee Rebate(s) Total Sales Price (Including Rebate(s)) $237,367.00 Sales Representative Purchaser Accepted by Sales Manager or General Manager sIgna(uie Hal Hnllnwav p nnGQ?d I uvne printed name Total $232,284.00 $232,284.00 �_-- .$5,033.00:w $50.00 $237,367.00 Quote good until 10/31/2014 Note: The above Customer Proposal Is a quotation only. Sale terms subject to approval of Sales Manager of Dealer. yYISW A,OP,91'JRy Any evsn9ev IMS, J II "Ioro'Sae: ea „lniucW Vo a.., Wrannr aa'xe up`aiq Unamraary , VarrMauf `Q:in Pta , %4 Purdi.asa Omer [ricurlacWi ng antneao Vgnou. Amy docuuiaunIary feel,, .,t<nlrov laaN, Urti o, i e giedita,wn avid lIrc n. "'w yves, ar,l:.r,u to c..p a: UrnnmtrW Ar, J c,rrnrg o Asa,kAd I .Ci: r. Can III paid by b a:yp¢. r, " "W'Jevd of andJUSI:rmarq Any V L "II, val lor" re va 01 II raaclpons[hifl y^ eP „isv.uhm. I'dar..afo+ „dU,,&I )u I!5 a.Tarun�a�c0 WVuaa rR$V h(a c6,.�du¢gprs IhI,a pi kce duo fva.orssr art'nly cu.uearotIy✓ iru r7e.,al¢ 6IPC'k' w. I,hOW no ko taa Dealur In w:'R)I:nd vv Idea sr roA Gurne wly in Deane-'s Mock, Do ah'r wouI rnas rd¢' N 1.0 d io ngo Qucfttw� fot"11 In rnflllnIt'my price ncl'evam'wvo frornr h4 m r; lww- U,[:i If , ma it s,A Gas hw wd aeppun PIa.aYa,. nn cm runr and eXJi)f,CI1Erd I W@ LDry Whoh fl; ea„UerA ten ::heap g f eaalc�.r nuI "IAIrgPaIokd b uitl'ain any f,pu, ^A'Ic varynr.le..., 4n .Muck' nor ownl[,tln ony "Pe +;iric, i mayllaa,y Dove” a Wor s al hart he ob qM, -rat to fUl'111 I uxdn,aoal ' 4 a=voxrr0 quu[e i n . hOd, 4,sw IwI, [Ni s.l.ara:Ik of fhvxlv!Ullo wnN r u vaq ,eoed m wi, y er.1 Ildde a0 Idrroj P': t.l'am"A cr.rc.gplr ^d IIJaa?w SI7 all '100, ho fualhkl lavr tarry rpa0[ay In pp -dwq mr rnaluu.l:y h frovidu C;waaok 9 vollckq"''(' aasrw av .;ardn unsmPhCy am d' Lag a'Aue, In w ok, or Yn y.ud' VG army ...aai.,s, hmy(..uad IIJR s¢wai:er.rru Islas coo of 0 V eaalei an Ba w bflmi.a( IPw pyrenneea rrugl'iylaomc,, or ovt ,rude c”. rrrh,'rrra0rr¢.° of Ue,,Avi m' h ovv Holed Ii add 1faz0m gaeved upoin m orurl oI` 0 auk, ved hIdp(sr 0(,a4 a4 umsay adpu&e O fadga 4"as0iuu uA` ratio V lwdc(nty fez 1 ¢vp evcY a,:Pr uuau.,: l In e:rurrehdon „,m fti nrrrleag,v of q.aadu bS'tVbt{ran alma, rr rsa mwsr l'opynrtl sol1j iy ru:, dryaln,Pncv 0 Ifaan l`'aro9sM Ja0 by Chnpeaovnur. 9ho. &y „xr bly�Cl l:. EXHIBIT 2 Quote 8 SW1438, SW1439 To: City of Denton 901 -B Texas St Denton, TX 76209_USA Attn: Terry Kader Delivery Point: 0 0 Standard Equipment: Commerical Intertech Pump and Valves D.O.T. Reflective Tape Tailgate Safety Prop Options Included in Price: Access Door Ladder, Fold -Up with Shut Down Assist Lights, Backup Camera Ball Valve Shutoff (yellow handle) on Tank Broom Holder, Tailgate, Curbside Cart Tipper Model: McNeilus SSPIII (2) CNG Defueling Hose, 20 ft., Shipped Loose CNG Filler (MTM) on Front Bumper, Streetside CNG Low Fuel Indicator and Buzzer in Cab CNG /LNG Handling Provision Decals: (3) Slow Down to Get Around Fender Lights, Rear Facing Fire Extinguisher in Cab, 5 lb, Fire Extinguisher, 20 lb„ Curbside, Scabbard Mount Five Year Cylinder Warranty Hopper Liner, 3/16 inch AR200 Hopper Work Lights: 2 Hydraulic Tank Inside Body Install 69 DGE frame mount system. ETO includes box and all hardware Manual Linkage, Curbside and Streetside Methane Detector in Cab (MTM) Monitor Mount Center Overhead Mudflaps, Front: Black w /McNeilus Logo Power Distribution Module, Chassis Frame, Streetside Rear -to -Cab Buzzer, Curbside Safety Triangle Kit in Cab Shovel Holder, Tailgate, Curbside Smart Lights, (4), 4" on Tailgate Third Eye, 7" Color 2 port, 2 Cameras, W/A Toolbox, 24Hx28Wx18D Steel Chassis: CT - Peterbilt 365 CNG (Provided By Cust Unit Price: $ Federal Excise Tax: $ - Freight: $ Total Unit Price: $ 83,185 Quantity: 2 Extended Price: $ 166,370 Buy Board Contract# 425 -13 Rosenboom Cylinders Body Access Door Smart Pak 3 cubic yard hopper Aeroquip Hoses L.E.D. Lights quantfty Discount Pwiring leerludees all appf cable dlscowils doe quantity quoted ChanW,,i of quantity ordered rrray leskA t in revisk l of prl'tce Freight Chargos, Fsekght charge is esluriated based upoau foul cxisl at the time of quotalian. The charge is subjew' In change at ttte fute a of delivery. HI)pirug wrarlgen of (wteen applicable) are rr1ade"rol the conveeaenco of the custorner Shcem• assumes no rosvlon bity for the oryratpinerol In leonsport. S ocificottons Atli st ectfla atusans are subject to change without notice. Several factors beyond the control or lhr, Ov assis OEM or McNeilus may result in the substitution of components of equal or greater quality. Special Options Special options are subject to Engineering application approval. Taxes No state or local taxes are included in the prices quoted herein. Any applicable state and local taxes must be added to these prices and paid directly by the purchaser. Terms & Conditions This quotation assumes and is subject to the standard terms and conditions of London Machinery, McNeilus Truck and Manufacturing Co. and Oshkosh Corporation, including limitations of warranty. Payment Terms Due upon receipt. This quotation is valid until 08/30/2014. Any order is contingent upon acceptance by McNeilus Companies, Inc. By signing and returning this document, you are indicating that you have read and approved the above specification. Date(s) chassis will arrive at McNeilus Authorized Signature Date EXHIBIT 3 MEMORANDUM DATE: October 24, 2013 TO: Elton Brock FROM: Terry Kader Fleet Services Superintendent CC: Antonio Puente SUBJECT: Peterbilt Truck Chassis Fleet Services is recommending the purchase of Peterbilt chassis for fleet replacements whenever an available model fits our replacement specifications based on fleet standardization. Fleet standardization minimizes costs and improves efficiencies relating to technician training, diagnostic software, required specialty tools and stocking of replacement parts. Also, we are currently already set up as a warranty provider for the Peterbilt trucks through the Rush Truck Center network. As an approved warranty provider, we perform repairs that are covered under warranty, reducing downtime and costs associated with transportation of these trucks to the Rush shop. I believe the purchase of the appropriate Peterbilt Truck Chassis is the best value and I am requesting authorization to make this purchase based on fleet standardization. Regards, Terry Kader Fleet Services Superintendent From: Kader. Terry To: Brock. Elton D Cc: Puente. Antonio; Rosendahl. Charles Subject: McNeilus Rear Load Refuse Bodies Date: Monday, August 04, 2014 9:52:28 AM Elton, The City has purchased rear load refuse bodies from McNeilus Manufacturing for many years due to competitive pricing, reliability, and a local product support group. McNeilus rear load refuse bodies have proven themselves in City of Denton service. I respectfully request authorization to purchase McNeilus rear load refuse bodies for any future refuse body replacements or additions whenever an available model meets our specifications. I believe this to be the best value currently for the City based on past experience and fleet standardization. Fleet standardization minimizes costs and improves efficiencies relating to technician training, diagnostic software, specialty tools and equipment and stocking of replacement parts for rear load refuse bodies. Regards, Terry 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 EXHIBIT 4 DRAFT MINUTES PUBLIC UTILITIES BOARD August 11, 2014 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas is present, the August 11, 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, Barbara Russell and Lilia Bynum Ex Officio Members: George Campbell City Manager and Howard Martin, ACM Utilities Absent: OPEN MEETING: Vice Chair Billy Cheek CONSENT AGENDA: 1. Consider the recommendation of an ordinance of the City of Denton authorizing the City Manager or his designee to execute a contract through the Buyboard Cooperative Purchasing Program for the acquisition nine (9) refuse truck chassis and (5) refuse bodies for Solid Waste Department; and providing and effective date (File 5622- Purchase of nine (9) refuse truck chassis and three (3) refuse bodies from Rush Truck Center for $1,683,360.00 and two (2) refuse bodies from McNeilus for $243,242.00). Using the revised prices for item #1 File 5622- Purchase of nine (9) refuse truck chassis and three (3) refuse bodies from Rush Truck Center for $1,600,512.00 and two (2) refuse bodies from McNeilus for $166,370.00 Motion was made to approve item 1 by Board Member Gallivan with the second by Board Member Russell. The vote was 5 -0 approved. Adjournment 9:57 a.m. EXHIBIT 5 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A CONTRACT THROUGH THE BUY BOARD COOPERATIVE PURCHASING PROGRAM FOR THE ACQUISITION OF NINE (9) REFUSE TRUCK CHASSIS AND (5) REFUSE BODIES FOR THE CITY OF DENTON SOLID WASTE DEPARTMENT; AND PROVIDING AND EFFECTIVE DATE (FILE 5622 - PURCHASE OF NINE (9) REFUSE TRUCK CHASSIS AND THREE (3) REFUSE BODIES FROM RUSH TRUCK CENTER, CRANE IN THE AMOUNT OF $1,600,512.00 AND TWO (2) REFUSE BODIES FROM MCNEIL,US TRUCK AND MANUFACTURING CO. IN THE AMOUNT OF $166,370.00). WHEREAS, pursuant to Ordinance 2005 -034, the Buy Board Cooperative Purchasing Network has solicited, received, and tabulated competitive bids for the purchase of necessary materials, equipment, supplies, or services in accordance with the procedures of state law on behalf of the City of Denton; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described materials, equipment, supplies, or services can be purchased by the City through the Buy Board Cooperative Purchasing Network programs at less cost than the City would expend if bidding these items individually; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies, or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The items shown in the "File Number" referenced herein and on file in office of the Purchasing Agent, are hereby accepted and approved as being the lowest responsible bids for such items: FILE NUMBER VENDOR AMOUNT 5622 Rush Truck Center, Crane $1,600,512 5622 McNeilus Truck and Manufacturing Co. $ 166,370 SECTION 2. By the acceptance and approval of the items set forth in the referenced file number, the City accepts the offer of the persons submitting the bids to the Buy Board Cooperative Purchasing Network for such items and agrees to purchase the materials, equipment, supplies, or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the Buy Board Cooperative Purchasing Network and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the referenced file number wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the Buy Board Cooperative Purchasing Network, the City EXHIBIT 5 Manager or his designated representative is hereby authorized to execute the written contract which shall be attached hereto; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the Buy Board Cooperative Purchasing Network, and related documents herein approved and accepted. SECTION 4. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 5622 to the City Manager of the City of Denton, Texas, or his designee. SECTION 5. By the acceptance and approval of the items set forth in the referenced file number, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approval purchase orders or pursuant to a written contract made pursuant thereto as authorized herein SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this day of , 2014. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY ffiffi APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN"1 ON File #: ID 14 -0433, Version: 1 Legislation Text AGENDA INFORMATION SHEET DEPARTMENT: Materials Management ACM: Bryan Langley AGENDA DATE: August 19, 2014 SUBJECT Consider adoption of an ordinance of the City of Denton authorizing the City Manager or his designee to execute a contract with the Houston - Galveston Area Council of Governments (H -GAC) for the acquisition of four (4) refuse truck bodies for the City of Denton Solid Waste department; and providing an effective date (File 5621- Purchase of Four (4) Truck Bodies awarded to DaDee Manufacturing, LLC in the amount of $582,721.28). The Public Utilities Board recommends approval (5 -0). FILE INFORMATION This item is for the purchase of four (4) refuse bodies. Two (2) DaDee Model Scorpion automated side load bodies and two (2) DaDee Model Mantis automated front load bodies will be purchased through the Houston - Galveston Area Council of Governments (H -GAC) Cooperative Purchasing Program contract number RH08 -14 (Exhibit 1). These bodies will be replacements for 2006 and 2007 year model units that have met the Fleet Services replacement criteria based on age, maintenance cost, and mileage. The new refuse bodies will be mounted on Peterbilt chassis that are being purchased from Rush Truck Center, Crane through the Buy Board Cooperative Purchasing Program. The City of Denton is standardizing to DaDee Manufacturing for automated side load and front load bodies. This will allow the Fleet staff to minimize costs and improve efficiencies relating to technician training, diagnostic software, specialty tools and equipment, and stocking of replacement parts. This equipment is not available from local vendors. PRIOR ACTION /REVIEW (COUNCIL, BOARDS, COMMISSIONS) On August 11, 2014, the Public Utilities Board recommended approval to forward this item to the City Council for consideration. RECOMMENDATION Award the purchase of four (4) DaDee Manufacturing refuse bodies to DaDee Manufacturing, LLC in the amount of $582,721.28. City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: ID 14 -0433, Version: 1 PRINCIPAL PLACE OF BUSINESS DaDee Manufacturing, LLC Phoenix, Arizona ESTIMATED SCHEDULE OF PROJECT The installation of the refuse bodies on the Peterbilt chassis will occur within 180 days of purchase order issuance. FISCAL INFORMATION This item will be funded from the fc Body Description Side Loader- 31 Yard Tandem Axel Side Loader- 40 Yard Roof Mount Front Loader- 40 Yard Full Eject Front Loader- 40 Yard Full eject llowing operating accounts: Account 4 660118595.1355.30100 660119595.1355.30100 660122595.1355.30100 660123595.1355.30100 Requisition 4 120246 has entered in the Purchasing software system. EXHIBITS Exhibit 1: Quotes for Bodies Exhibit 2: Standardization Memo Exhibit 3: Public Utilities Board Minutes Exhibit 4: Ordinance Amount $103,067.82 $150,317.82 $164,667.82 $164,667.82 Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance For information concerning this acquisition, contact: Terry Kader at 349 -8729. City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl EXHIBIT I SW1442 CONTRACT PRICING WORKSHEET Contract Date : RH08-14 08/01/2014 HGACBuy 'e Prepared- For Standard Equipment Purchases No.: Worksheet is prepared by Contractor and given to End User. If a PO is issued, both documents MUST be faxed to H-GAC 713-993-4548. Therefore please type or print legibly. Buying :City of Denton, Texas Agency� Contractor: MaDee Manufacturing, LLC Contact Charlie Rdal-A Person. osen Prepared ;Paul Campbell By: ]Phone: '940-349-8422 Phone- ::602-276-4390 (800) 940-7467 Fair Fax: :602-275-5470 F.. 11: 'ctiarles.rosendW@cityofdenton.com Ernoll! '.pcainpbell@dadcctnfg.com Produl t Code CB07 F--Z D- 1pfim, ::DaDee Manufacturing. Scorpion Automated Side Loader 31 Yd Tandem Axle Chassis ........ ... .... ... ......... 100,10 ... .... ......... a.- Publis , id.0 s -1-ndudo A OPO Cvde in 40'.' -10* n P. sheet4thece on scripp.ut :i�ppl, b4.sU Qp s: fi m,�fii6b 'subinitted andp*44n:C-.6ntmct&i bid.) ji9p : 0@ op.. 9— Description Cost Description Cost LTKl Three Light Flashing Kit on Tailgate tied to Brakes Soo T03 SPECIAL Powder Coat Matcb 1800 �THO I Tool Holder (Broom, Shovel, Rake) 150 �FF,X2 20 LB Fire Extinguisher & Mtg Bracket 225 IRK Triangle Reflector Kit& Bracket 75 Subtotal From Additional Sheet(s):: Subtotal 275 .. ... ..... ... ... '�'Vu P bilihid:Option s.. 10 to h6lbtv AM' 0�a !P'ual O eceNsary 4, i� (N W'Vn' u- ...... --- ---- .......... Description Cost Description Cost 18 x 18 x 24 Tool Box 700 Pair Tow Hooks 200 0032-30-1060 Oil Tank Breather 35.94 0001-01-1738 Loader Arm Service Prop 425 0032-37-0912 Return Filter Element 156.88 CAM Additional Color Camera and Cable 500 Subtotal From Additional Sheet(s): Subtotal C: Total cost of Unpublished Options (C) cannot exceed 25% of the total of the Base Unit: For this transaction the percentage i 2 Price plus Published Options (A+B). N. 13 4it: h e 0e: UY01 h era iii hargesm :T 4o- "Ago DU—c6ui :E 4 t' —C'9. - Quantity Ordered: 1 X Subtotal ofA17011 104867-82 11 = Subtotal D: E 104867.82 . ... ... . . ....... . . ...... U00 /.. MV0114004s'Ch4r, . j go ... ... Description cost Description Cost Freight $3,500 per unit 3,500,00 Discount to honor previous contract pricing -5,300 Subtotal E: -1800 '�F.T Mitc.hmv: , j"' ' +r} ;: 103067.82 ota ..:Pip ce F77 ... ,qW1 4 4 � CONTRACT PRICING WORKSHEET 11 Contract Date jL RH08-14 8/1 /20 1 ffmcfty For Standard Equipment Purchases Prepared: This Worksheet is prepared by Contractor and given to End User. If a PO is issued, both documents MUST be faxed to H-GAC 713-993-4548. Therefore please type or print legibly. Buying t :City of Denton, Texas Contractor: -:Da Dee Manufacturing, LLC Agency: Contact Prepared Person; iCliarlieRosendahl %*: *Paul Campbell Phone: :940-349-8422 Phone: ':602-276-4390 (800) 940-7467 Fax. Fax: -6,02-275-5470 Email: cliarles.rosendahl@cityofdenton.com Email: pcampbelJ@dadeernfg.com Product CB12 IF Description: DaDee Manufacturing - Sc ox-pion Automated Side Loader 32 YD CNG Roof Mount Code: IfI6 H",G'A-C- C'6 6' ita'd' 102700 Description Cost Description Cost LTK1 Three Light Flashing Kit on Tailgate tied to Brakes 500 PT03 SPECIAL Powder Coat Match 1800 CNG Compressed natural Gas Tank System and Mounting 47,250,00 ................................ TH01 Tool Holder (Broom, Shovel, Rake) 150 FEX2 20 LB Fire Extinguisher & Mtg Bracket 225 TRY, Triangle Reflector Kit & Bracket 75 Subtotal From Additional Sheet(s). —Subtotal B;� 50000 11 7777771 Description Cost Description Cost Pair Tow Hooks 200 18 x 18 x 24 Tool Box 700 0032-30-1060 Oil Tank Breather 35,94 0001-01-1738 Loader Arm Service Prop 425 0032-37-0912 Return Filter Element 156.88 CAM1 Additional Color Camera and Cable 50� Subtotal From Additional Sheet(s): ............ . .. . . .. . Subtotal C: 2017.84 cost of Unpublished Options (C) cannot exceed 25% of the total of the Base Unit : For this transaction the percentage is: 1 % Price phis Published Options (A +B). 11 ' Total Subtotal E: 9=11 TLI7,12 __j SW1444 & SW1445 CONTRACT PRICING WORKSHEET I Contract Date RB08-14 8/l/20 For Standard Equipment Purchases Prepared: This Worksheet is prepared by Contractor and given to End User. If a PO is issued, both documents MUST be faxed to H-GAC 713-993-4548. Therefore please type or print legibly. Buving ;City of Denton, Texas Contractor: -' MaDee Manufacturing, LLC Agency- Contact Prepared Rosendalil Person, Paul Campbell ... . . .... .. ... Phone: t940-249-8422 Phone: -602-2764390 (800) 940-7467 Fw" Fax. '602-275-5470 Email: 'cliaries.roseiidahl@cityofdeDton.coi-n Email. -peampbell@dadeenifg.com Product AB-02 1[ DZiptiow . D e, Manufacturing: Mantis Automated Front Loader: 40-Yd Fall Eject - CNG Saddle Mount W Description Cost Description Cost PT03 SPECIAL Powder Coat Match 1,800 CNG1 CNG Tank and Mounting 47,250 FEX1 10 Lb Fire Extinguisher roc Mtg Bracket 150 FEX2 20 Lb Fire Extinguisher & Mtg Bracket 225 TRK Triangle Reflector Kit & Gracket 75 0 LT 5 oo K 1 Three Light Flashing Kit on Tailgate Tied to Brakes '0 S CAMI Additional Standard Color Camera & Cable 500, Subtotal From Additional Sheet(s): Sub o4*:t-T6­U'bI' hed, M­: :it�s'.W1Uch,:.W.emn"q'tsmb ift d'and: 'ii ed.ifi-Cbqtractors�bidJ .. .: p_.�A _�4e� 1 ­ ­1. .— ...­ ­- 9 wcv . q . I � , " _._ .... ....... . .. ..... . .... Description Cost Description Cost TB36 18 x IS x 36 Too[ Box (Mtd on Tailgate 800 Pair Tow Hooks 200 SCALE Cleral Scale System 3,000 0032-37-1060 Oil Tank Breather 35.94 METHANE Detector 1,200 0032-37-0912 Return Filter Element 156.88 Cab Spot Mirrors 125 WRH5 5-Yr Hydraulic Cylinder Warranty 6,750 Subtotal From Additional She subtotal C: =12267.82 Check: Total cost of Unpublished Options (C) cannot exceed 25% of the total of the Base Unit: Price plus Published Options (A +B). For this transaction the percentage is- Quantity Ordered: L2 JJ X Subtotal of A + B + C- IL 1 6 7.8 2 J1 —_ 11 Subtotal D. 322335.641 rvan+cers 1. :Frelght f I st a liarkes Description Cost Description cost Freight $3,500 per unit 7,0001 OTE. CNG System is 90 DGE Saddle Mount Subtotal E: 329335 EXHIBIT 2 From: Kader. Terry To: Brock. Elton D Cc: Puente. Antonio; Rosendahl. Charles Subject: Dadee Manufacturing Refuse Bodies Date: Monday, August 04, 2014 9:52:22 AM Elton, The City began purchasing automated side load refuse bodies from DaDee Manufacturing in 2012. These were specified due to claims of lower maintenance cost, ease of service and reduced downtime due to failures. The Scorpion branded automated side load refuse bodies have proven themselves in City of Denton service and DaDee Manufacturing continues to innovate with a newly designed "Mantis' front load refuse body. I respectfully request authorization to purchase "Scorpion" brand automated side load and "Mantis" brand front load refuse bodies produced by DaDee Manufacturing for any future refuse body replacements or additions whenever an available model meets our specifications. I believe this to be the best value for the City based on fleet standardization. Fleet standardization minimizes costs and improves efficiencies relating to technician training, diagnostic software, specialty tools and equipment and stocking of replacement parts. We are currently set up as an approved warranty provider for the Scorpion refuse bodies through DaDee Manufacturing. As a warranty provider, downtime and transportation costs associated with warranty repairs are reduced as they are performed in our shop. Regards, Terry 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 EXHIBIT 3 DRAFT MINUTES PUBLIC UTILITIES BOARD August 11, 2014 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas is present, the August 11, 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, Barbara Russell and Lilia Bynum Ex Officio Members: George Campbell City Manager and Howard Martin, ACM Utilities Absent: OPEN MEETING: Vice Chair Billy Cheek CONSENT AGENDA: 2. Consider the recommendation of an ordinance of the City of Denton authorizing the City Manager or his designee to execute a contract through the Houston - Galveston Area Council of Governments (H -GAC) Cooperative Purchasing Program for the acquisition four (4) refuse bodies for Solid Waste Department; and providing and effective date (File 5621 - Purchase of four (4) refuse bodies from DaDee Manufacturing for $582,721.28). 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 9:57 a.m. EXHIBIT 4 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A CONTRACT WITH THE HOUSTON - GALVESTON AREA COUNCIL OF GOVERNMENTS (H -GAC) FOR THE ACQUISITION OF FOUR (4) REFUSE TRUCK BODIES FOR THE CITY OF DENTON SOLID WASTE DEPARTMENT; AND PROVIDING AN EFFECTIVE DATE (FILE 5621- PURCHASE OF FOUR (4) TRUCK BODIES AWARDED TO DADEE MANUFACTURING, LLC IN THE AMOUNT OF $582,721.28). WHEREAS, pursuant to Ordinance 95 -107, the Houston - Galveston Area Council of Government (H -GAC) has solicited, received, and tabulated competitive bids for the purchase of necessary materials, equipment, supplies, or services in accordance with the procedures of state law on behalf of the City of Denton; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described materials, equipment, supplies, or services can be purchased by the City through the Houston - Galveston Area Council of Government (H -GAC) programs at less cost than the City would expend if bidding these items individually; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies, or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered file for materials, equipment, supplies, or services, are hereby approved. FILE NUMBER VENDOR AMOUNT 5621 DaDee Manufacturing, LLC $582,721.28 SECTION 2. By the acceptance and approval of the above numbered items set forth in the referenced file, the City accepts the offer of the persons submitting the bids to the H -GAC for such items and agrees to purchase the materials, equipment, supplies, or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the H -GAC, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by H -GAC, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to H -GAC, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. EXHIBIT 4 SECTION 4. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 5621 to the City Manager of the City of Denton, Texas, or his designee. SECTION 5. By the acceptance and approval of the above enumerated items, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this day of , 2014. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN"1, IN File #: ID 14 -0434, Version: 1 Legislation Text AGENDA INFORMATION SHEET DEPARTMENT: Materials Management ACM: Bryan Langley AGENDA DATE: August 19, 2014 SUBJECT Consider adoption of an ordinance authorizing the City Manager to execute a Personal Services Agreement with Capital Edge Strategies, LLC for consulting services related to assisting the City of Denton in advancing its Federal Legislative Program which includes assisting Council and staff in addressing proposed legislation, and making the City aware of any legislative or administrative initiatives believed to be detrimental to the interests of the City; and providing an effective date (File 5620- awarded to Capital Edge Strategies, LLC in the three (3) year not -to- exceed amount of $162,000). FILE INFORMATION Capital Edge Strategies, LLC (Capital Edge) representatives maintain regular and consistent communication with Denton's federal delegation in Washington, DC. Many issues have the potential to impact the City's operations and revenue sources that require in -depth technical and institutional knowledge. Possessing this knowledge, Capital Edge monitors Congressional proposals and advises the Mayor, City Council, and staff, on recommended actions as necessary. In addition, the firm provides regular updates to council in the weekly Washington Report, and provides annual comprehensive briefings to Council. The City has contracted with Capital Edge since 1998. In accordance with Texas Local Government Code 252.022, the procurement of professional services is exempt from the requirement of competition based selection. The City of Denton has previous successful experience with the recommended firm, and has elected to not seek qualification based competition for these identified services. RECOMMENDATION Award a contract for legislative consulting services to Capital Edge Strategies, LLC in the three (3) year not -to- exceed amount of $162,000. PRINCIPAL PLACE OF BUSINESS Capital Edge Strategies, LLC Washington, D.C. City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File M ID 14 -0434, Version: 1 ESTIMATED SCHEDULE OF PROJECT The initial contract period will be October 1, 2014- September 30, 2015. This is a one (1) year contract with options to extend the contract for two (2) additional one (1) year periods, with all terms and conditions remaining the same. FISCAL INFORMATION This contract will be funded from operating account 160099.7850. EXHIBITS Exhibit l: Ordinance Exhibit 2: Agreement With Proposal of Services Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance For information concerning this acquisition, contact: Lindsey Baker at 349 -8234. City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl EXHIBIT 1 ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A PERSONAL SERVICES AGREEMENT WITH CAPITAL EDGE STRATEGIES, LLC FOR CONSULTING SERVICES RELATED TO ASSISTING THE CITY OF DENTON IN ADVANCING ITS FEDERAL LEGISLATIVE PROGRAM WHICH INCLUDES ASSISTING COUNCIL AND STAFF IN ADDRESSING PROPOSED LEGISLATION, AND MAKING THE CITY AWARE OF ANY LEGISLATIVE OR ADMINISTRATIVE INITIATIVES BELIEVED TO BE DETRIMENTAL TO THE INTERESTS OF THE CITY; AND PROVIDING AN EFFECTIVE DATE (FILE 5620- AWARDED TO CAPITAL EDGE STRATEGIES, LLC IN THE THREE (3) YEAR NOT -TO- EXCEED AMOUNT OF $162,000). WHEREAS, the professional services provider (the "Provider) mentioned in this ordinance is being selected as the most highly qualified on the basis of its demonstrated competence and qualifications to perform the proposed professional services; and WHEREAS, the fees under the proposed contract are fair and reasonable and are consistent with and not higher than the recommended practices and fees published by the professional associations applicable to the Provider's profession and such fees do not exceed the maximum provided by law; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager is hereby authorized to enter into a professional service contract with Capital Edge Strategies, LLC, to provide professional legislative consulting services for the City of Denton, a copy of which is attached hereto and incorporated by reference herein. SECTION 2. The City Manager is authorized to expend funds as required by the attached contract. SECTION 3. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 5620 to the City Manager of the City of Denton, Texas, or his designee. SECTION 4. The findings in the preamble of this ordinance are incorporated herein by reference. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2014 CHRIS WATTS, MAYOR EXHIBIT 1 ATTEST: JENNIFER WALTERS, CITY SECRETARY :• APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: EXHIBIT 2 PERSONAL SERVICES AGREEMENT Between the City of Denton, Texas State of Texas, County of Denton and CapitalEdge Strategies, LLC Washington, D.C. WHEREAS, the City of Denton, ( "City "), in consultation with other major cities in Texas, has determined that there is a need for jointly sponsored Washington representation; and WHEREAS, this need is particularly pressing in relation to: 1. information about legislative and executive action on issues of common interest, 2. transmitting City positions on these issues to the Congressional delegation and to the Administration, and I obtaining individual City service to pursue defined projects or individual legislative priorities; and WHEREAS, CapitalEdge Strategies, due to the concurrent participation of other Texas cities has unique qualifications and experience that no other person can offer the city during this period of time; and WHEREAS, CapitalEdge Strategies is known to the cities of Austin, Arlington and of Dallas (collectively, the "Cities "), and is capable of and willing to undertake such representation in Washington as a personal services contract exempt from competitive bidding in accordance with Section 252.022 (a) of the Texas Local Government Code; NOW, THEREFORE, the City of Denton, in association with and recognizing the concurrent participation of the Cities, enters into this personal services agreement with CapitalEdge Strategies, LLC ( "Consultant "). I. OBLIGATIONS OF THE CONSULTANT A. The Consultant will operate a unit to act as a Washington office for the Cities and head this unit and as Washington Assistant to the Cities. The Consultant will furnish requisite staff, office space, utilities, furnishings, and equipment, secretarial services, common -use office supplies and services, and general administrative support. 1 EXHIBIT 2 B. The Consultant will consult with the "Committee" (see Section IIE) to determine issues of specific interest to the Cities and to determine policies and positions which the Cities as a group hold and wish to be pursued. In cases in which the City positions differ from or conflict with the Cities' group position, the Consultant will consult with the City and the Committee to determine the proper course of action. C. Information. 1, The Consultant will provide regular information on Washington issues and events of interest to the Cities. This will be done by: a) a regular "Washington Report," b) written reports, bulletins, and memoranda on developments regarding Texas - specific issues, and C) direct phone contact. 2. The Consultant will present federal affairs briefings for the Cities at times and places specified by the Committee. D. Congressional Relations. The Consultant will establish and maintain on a regular basis contact with the Texas Senators and the Cities' delegation in the House of Representatives. E. Administrative Relations, . The Consultant will advise and consult on behalf of the City with the White House and the following federal agencies or departments: Commerce, SBA, Treasury, HUD, Labor, HHS, DOT, EPA, Interior, Justice, DOE, and such other agencies, departments and commissions as may be necessary to the performance of Washington service to the City. H. OBLIGATIONS OF THE CITY A. The City will contract with the Consultant for specified services for a period of three years, commencing October 1, 2014 and ending September 30, 2017. The initial contract term will be one (1) year. The City and Consultant shall have the option to renew this contract for an additional two (2) one -year periods and shall automatically renew each year, from the date of award by City Council, unless either party notifies the other 30 days prior to the scheduled renewal date. B. The cost of this Contract is $54,000 annually which will be paid monthly in advance as a retainer of $4,500.00 per month. 2 EXHIBIT 2 C. The Committee, 1. The City will appoint a member to a Committee of the Cities associated in this effort. The Committee will appoint its own chairperson and determine the times and places of its meetings. The functions of the Committee are: a) to determine common positions on federal issues which the Consultant is to pursue on behalf of the Cities. b) to discuss apparent conflicts or differences on issues or projects which may arise among the Cities and to resolve them in terms of a course of action for the Consultant. C) to monitor the function and operation of the Washington office to determine if it is fulfilling the goals and objectives for which it was designed. d) to authorize travel and other reimbursable expenses to be incurred for the common purposes of the Cities. D. General. 1. The City will inform the Consultant of the person(s) authorized to request services and to serve as the chief contact. 2. The City will supply the Consultant with a summary of the federal programs in which the City is participating and other information necessary to an understanding of the City's purposes in relation to the federal government. III. THE CITY AND THE CONSULTANT AGREE THAT CERTAIN EXCLUSIONS SHALL APPLY. The Consultant will not: A. Directly or indirectly participate in or intervene in any political campaign on behalf of or in opposition to any candidate for city office. B. Will not represent the interests of local constituents in pursuit of federal business. C. By virtue of this agreement, represent other local agencies in the City except those which are instrumentalities or agencies of the City. D. Perform any legal, engineering, accounting, or other similar professional services. N EXHIBIT 2 IV. THE CITY AND THE CONSULTANT AGREE A. Either party may terminate this agreement at any time by giving the other at least thirty days' written notice. B. This agreement shall take effect on October 1, 2014„ V. PROFESSIONAL COMPETENCY A. The Consultant agrees that in the performance of these personal services, Consultant shall be responsible to the level of competency and shall use the same degree of skill and care presently maintained by other practicing professionals performing the same or similar types of work. For the purpose of this Agreement, the key person who will be performing most of the work hereunder shall be Ralph Garboushian. However, nothing herein shall limit Consultant from using other qualified and competent members of his firm to perform the services required herein so long as they are working in a support role to Mr. Garboushian. B. The City shall be able to make copies of any reports and documents prepared or obtained under the terms of this Agreement. The City shall be able to use copies of these reports and documents without restriction on their use and without further compensation to Consultant. VI. ESTABLISHMENT AND MAINTENANCE OF RECORDS Full and accurate records shall be maintained by the Consultant at its place of business with respect to all matters covered by this Agreement. Such records shall be maintained for a period of at least three years after receipt of final payment under this Agreement. VII. AUDITS AND INSPECTION At any time during normal business hours and upon reasonable notice to the Consultant, there shall be made available to the City all of the Consultant's records with respect to all matters covered by this Agreement. The Consultant shall permit the City to audit, examine, and make excerpts or transcripts from such records, and to make audits of contracts, invoices, materials, and other data relating to all matters covered by this Agreement. VIII. INDEMNITY AND INDEPENDENT CONTRACTOR RELATIONSHIP A, The Consultant shall perform all services as an independent contractor not under the direct supervision and control of the City. Nothing herein shall be construed 4 EXHIBIT 2 as creating a relationship of employer and employee between the parties. The City and Consultant agree to cooperate in the defense of claims, actions, suits, or proceedings of any kind brought by a third party which may result from or directly or indirectly arise from any negligence and /or errors or omissions on the part of the Consultant or from any breach of the Consultant's obligations under this Agreement. In the event of any litigation or claim under this Agreement in which the City is joined as a party, Consultant shall provide suitable counsel to defend City and Consultant against such claim, provided the Consultant shall have the right to proceed with the competent counsel of its own choosing. The Consultant agrees to defend, indemnify, and hold harmless the City and all of its officers, agents, servants, and employees against any all such claims to the extent of coverage by Consultant's commercial liability policy. The Consultant agrees to pay all expenses, including, but not limited to attorney's fees, and satisfy all judgments which may be incurred or rendered against the Consultant's commercial liability insurance policy. Nothing herein constitutes a waiver of any rights or remedies the City may have to pursue under either law or equity, including, without limitation, a cause of action for specific performance or for damages, a loss to the City resulting from Consultant's negligent errors or omissions, or breach of contract, and all such rights and remedies are expressly reserved. C. Consultant shall maintain and shall be caused to be in force at all times during the term of this Agreement, a legally binding policy of commercial liability insurance, with a rating of at least A- with Best Rated Carriers. Such coverage shall cover any claim hereunder occasioned by the Consultant's negligent professional act and /or error or omission, in an amount not less than $500,000 combined single limit coverage occurrence. In the event of change or cancellation of the policy by the insurer, the Consultant hereby covenants to forthwith advise the City thereof, and in such event, the consultant shall, prior to the effective date of change or cancellation, serve substitute policies furnishing the same coverage. The Consultant shall provide a copy of such policy or the declarations page of the policy or a certificate of insurance, whichever is reasonably satisfactory, to the City through its City Manager simultaneously with the execution of this Agreement. IX. COMPLIANCE WITH LAWS The consultant shall comply with all applicable laws. X. GOVERNING LAW This agreement shall be governed by the laws of the State of Texas, venue and jurisdiction of any suit or cause of action arising under this agreement shall lie exclusively in a court of competent jurisdiction sitting in Denton County, Texas. 5 EXHIBIT 2 In witness hereof, the City of Denton, Texas, has caused this agreement to be executed by its duly authorized City Manager and Consultant has executed this agreement through its duly authorized President, dated this day of 2014. FOR THE CITY OF DENTON, TEXAS George C. Campbell City Manager Attest: Jennifer Walters City Secr w R, alph Garboushian _...._.... CapitalEdge Strategies, LLC 1212 New York Ave, NW Washington, DC 20005 202 - 842 -5430 Federal Employer ID #: 27- 0248027 Approved to legal form: By: _.. Anita Burgess City Attorney n Proposal of Services City of Denton CapitalEdge Strategies, LLC CapitalEdge Strategies, LLC (CES) proposes to continue representing the City of Denton (City) in Washington, DC, as part of the Texas Cities Legislative Coalition (TCLC). TCLC consists of the cities of Arlington, Austin, Dallas and Denton, which jointly conduct Washington advocacy efforts. TCLC has been operating since 1986 to give Texas cities a stronger voice in Washington. The Denton contract administrator will be a member of TCLC Committee and participate as an equal member in its decisions. CES will provide the City of Denton with a full scope of lobbying and related services in Washington, DC. In addition, the City would be provided a fully- equipped Washington Office, blocks from the White House and minutes from Capitol Hill. This office would be available for use by visiting City officials. CES operates on the premise that the City's officials are the very best advocates for the City's cause. The City's leadership determines policy positions. CES facilitates their efforts and becomes part of the local management team moving the strategic plan forward. Information Services CES provides a steady flow of information to our clients about issues of importance to cities. We believe that it is imperative that City officials are informed of developments in a particular area as they occur. We focus on the bottom line, looking for the impact of federal policy on City revenue and operations. In addition to the relationships we have developed in federal agencies and on Capitol Hill, we regularly read and review a wide array of resource materials. In these times of government reinvention and reengineering and partisan rhetoric, information from the nation's capital is frequently confusing. We sort through all of the conflicting communications to help the City chart its course. Information services include:. Weekly Report The cornerstone of our information services is the Washington Report.. which is a weekly compilation of Washington events which affect Texas municipalities. It is published each week that Congress is in session. Issues covered in the Washington Report include Budget EXHIBIT 2 and Appropriations, Housing and Community Development, Transportation, Environmental Issues, Public Safety, Taxes, Telecommunications and Human Services. In addition, the report contains a list of grant opportunities and regulatory notices of interest to local governments issued that week. Direct Contact Ongoing contact with the City's Office of Intergovernmental Relations (OIR) Director, as well as other persons authorized to request service and exchange information, will be established and maintained on at least a weekly basis and often on a daily basis. This ongoing two -way contact with one key senior staff member is critical to successful operations. It keeps the City's Washington agenda current and helps us know what the City's policies and priorities are as well as local dynamics that may affect our strategy. Memoranda Memoranda on issues of concern to Denton will be researched and prepared by CES. These memoranda will be of two sorts: those on issues or programs of interest to all of the Texas cities and those responding to a specific concern of Denton, as requested by City staff. Visits to Denton Planned trips to Denton to meet with elected officials, senior City staff, and department heads are also important to tailoring the information services provided. Such trips afford an opportunity to discuss and plan responses and strategies to federal local initiatives. They are a primary means for identifying legislative and grant opportunity targets. Under the TCLC contract, trips are organized at the request of the City. Federal Legislative Briefings Briefings will be provided at the request of Denton and the other Texas cities. TCLC practice has been to provide federal issues briefings at annual meetings of the National League of Cities, and, if requested, at meetings of the US Conference of Mayors. Individual TCLC cities, including Denton, also periodically arrange for briefings of their Council Legislative Committees and /or senior staff and department heads. Lobbying and Advocacy Services CES's information services are the foundation of the lobbying services which we provide. CES will provide Denton with congressional relations assistance and will maintain regular contact with the Texas Senators and Denton's Representative in the House of Representatives. Rapport with many members of the Texas Congressional delegation and their staffs are on -going and strong. CES has direct contact with legislators and also supplies information to appropriate staff and orients them to the City's perspective on key issues. In addition to this communication, CES drafts " ;'aj'e 0 l EXHIBIT 2 letters and arranges visits or telephone calls for local elected officials to make the City's timely case on an issue. CES will also provide consulting assistance to Denton regarding relations with the executive branch. "Working the Administration" on an issue or a project can be critical not only to successful grant - getting but also legislative victories. CES will advise and consult on behalf of the City with the White House and key officials at departments and agencies of the Executive Branch, including but not limited to the following: Commerce, Homeland Security, Treasury, HUD, Labor, HHS, DOT, EPA, Interior, Justice, and Energy. CES will initiate and pursue research, reports, meetings, consultation, and other activities on behalf of the City on identified priority issues or projects and will respond to requests for similar actions from the City throughout the year. In addition, from time to time it is important to "lobby the lobbyists" and foster the City's relationships with national local government membership organizations such as the U.S. Conference of Mayors (USCM), the National League of Cities (NLC), the International City Management Association (ICMA), the American Public Power Association (APPA), and the National Community Development Association (NCDA). There are times when CES brings an issue of importance to a client city to the attention of one of these organizations in an attempt to make it part of its policies. In that regard, CES regularly attends weekly meetings at USCM with other city lobbyists in Washington to discuss and exchange information that is of particular interest to urban America. CES also generates and /or participates in coalitions of these interest groups and others to coordinate efforts to gain passage of major legislation. In addition, when it is to the City's advantage, we collaborate with other Texas and regional organizations represented in Washington. Building a coalition is a primary way of making things happen in Congress and CES is adept at it. Visits to Washington CES will help Denton plan and implement visits of City officials to Washington. These trips are a key part of the advocacy process. CES believes that City officials are the most effective lobbyists and makes every effort to facilitate their efforts, assure their timeliness and effectiveness, and follow- through. CES identifies key issue areas or projects and sets target dates for Washington meetings to advance these interests. Pa g w o 1 3 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN"1, IN File #: ID 14 -0435, Version: 1 Legislation Text AGENDA INFORMATION SHEET DEPARTMENT: Materials Management ACM: Bryan Langley AGENDA DATE: August 19, 2014 SUBJECT Consider adoption of an ordinance accepting competitive proposals and awarding a public works contract for the construction of Fire Station No. 2 located at 2209 East McKinney Street, Denton, Texas; providing for the expenditure of funds therefor; and providing an effective date (RFP 5545- awarded to Schmoldt Construction, Inc. in the not -to- exceed amount of $4,575,000. RFP INFORMATION This RFP is for the construction of the City of Denton Fire Station No. 2. The project will require new construction to existing real property and will include the turn -key construction of a 14,040 square foot four (4) bay fire station which will be built to obtain Silver Leadership In Energy and Environmental Design (LEED) certification. Phases I and II will include the removal of two (2) existing buildings located on the property and the demolition of the existing Fire Station No. 2. Requests for Proposals were sent to 1132 prospective contractors. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. Ten (10) proposals were received (Exhibit 2- Pricing Sheet). A Best and Final Offer (BAFO) was conducted with no change in the overall pricing, but Schmoldt Construction, Inc. is offering a Prompt Payment Discount of up to I% for invoices paid within 10 days of receipt by the City of Denton (Exhibit 3 -BAFO and Evaluation Scoring). This could potentially result in a savings of $45,755. The proposals were evaluated based upon published criteria including performance, delivery, acceptance of standard terms and conditions, and price. Based upon this evaluation, Schmoldt Construction, Inc. meets all requirements and is determined to be the best value for the City (Exhibit 1- Ranking Sheet). RECOMMENDATION Award the construction of Fire Station No. 2 to Schmoldt Construction, Inc. in the not -to- exceed amount of $4,575,000. PRINCIPAL PLACE OF BUSINESS Schmoldt Construction, Inc. Celina, TX City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: ID 14 -0435, Version: 1 ESTIMATED SCHEDULE OF PROJECT The construction of the fire station is estimated to be completed within 331 working days of issuance of Notice to Proceed. FISCAL INFORMATION This project will be funded from 2013 -2015 Certificates of Obligation. Requisition 4120247 using account# 100173409.1365.40100 has been entered in the Purchasing software system. Exhibit 4 provides a breakdown of the funding and overall projected expenditures that are associated with this project. EXHIBITS Exhibit l: Evaluation /Ranking Sheet Exhibit 2: Pricing Sheet Exhibit 3: Best and final Offer Exhibit 4: Project Scope Exhibit 5: Ordinance Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance For information concerning this acquisition, contact: Dean Hartley at 349 -8243. City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl nn W rrd O ids O V O O i O O U b�A � U N v� ct O ct 78 O N ct 78 v� 8 O rrd O ids O V O O i N v� ct O ct 78 O N ct 78 v� 8 O U ct O � c H w O R20 Rio O\ F- RCl) O\ RCl) w w U U C C J Q J Q W W w O O O O i o W O i o W Y/ N v, L E v, L • �C H 0 o H 0 O U d N E p N E o O h \ U O C N '6 (6 o y N '6 (6 0 "O O CL x LLJ L" On O j N o • j N o Df Q 1� a) CL Of 1� N w w CL No CL No ° O ° O\ O 0 o U In o U a O d p o o 0 o 0 0 0 0 W� a o 0 0 O � a w a w kn o o kn w o OW a Ono OW 0 W OW O o o W y O O 0 w '� a y A OW H H �Q H w � Cc Cl) N F- cc Cl) N w w U U C C 'L o J Q J Q W W O w - O U O 0 - O O i o � W O i N �_ N LO v ~ O YC ~ O U U �Eo o a A a�� w a a °' N a 0 U U U) U a+ O O LO Y/ Q Q W W y O O O ai > '� ° T ', ° N CL D N CL v Y W W -Fu CL � o � m 4 � ° N VO C V O CLOO _ U 3 - _ U 3 a O a O °O °o 0 0 0 °o CD ) U O O O O O U O O O O O a O O O O O O a v'� kn 00 O O O kn 00 oc O O O LC O O O 69 R F/3 R Ff3 uj 69 F/3 kn Ff3 U U 04 04 o04 o 04 04 u 04 u a C z = .0 O .. a C = .0 ^O .. w o w o 0 a oW O o a o O 0 W z o W z w oW a �A oW ^� oW H W Rio 0o Rio R� o RC o� W W W o0 U U C C o 'L J Q J Q W W O O Y I Y LO ~U ~ 0 °� H N E p Q N E p tll U tll U � •i.i O O N v I O L ,^ Y/ d Q x 7 Q x 7 W a W C. C O 0 C N O °o j.N o � � j.N o w w 0 No 00 ° No `O N o (ii 0 N o IL O d O M O O O M l� r O O O r 00 pp O O O pp U U cn cn w o a w o a 0 W OW O o o W y O O 0 a W A a W A OW OW � y T T T a ^� �� W A 'O 'O 'O O W O m C� N '_" o ^O OW VV i, a � cC cC cC O V V 40 �--i Y O > > > O Y O > > > p H �Q H w R �. R 7 C 7 C H R y H R Cl) W W U U C N 'L o C N 'L o J Q J Q W W O O W E N Ln �. Z E N LO �. O F O p U U H U U p +•• o NE O O o NE O d a 0� A a 0� N A a o a O V O N N C N N C U O N'� U N O N LO f' Q Q W .C. W � � O O FTC N N N D N CL D W W Q Q M No 00 ° No ai0c° r.j roc° ry U U 3 a O a O rrj O O O rrj � 00 00 O O O 00 N N O O O N m M O O O M v v C U U w o a w o a 0 W OW O o o W y O O 0 a w A a w A OW OW ^� �� O � W O m C6 N '_" o ^O OW VV �Q H w M RRO RRO � RCl) F- RCl) w w U U C N 'D o C N 'D o J Q J Q W W O w - O U O 0 - O U M LO V� w U) � � ~ ~ H U H U A N o O N o N a` a�� O O �U O N a d / d N C U O N C U O O C N ° +• C � o '� U 'O (6 V O ~ w �,� c ~ w �,� CL ° C.) ° ts j N o N Ln • O j N o N Lo CL Df Q Z, W W O M ° No ° No �o�° 6oc: a O a O O O o 0 0 C M o 0 o M U U M O O O 01 aA O O O aA � b O O O b M O O O M C O O O p U U cn cn Ha w o a aOno Ha w 40 o a a 0 W OW O o o W y O O 0 w w a A OW a A OW ^� � O m C� N '_" o ^O OW VV z � O FBI � �I b N C � O � N Pr N r bD � i O d � O O O O 0 0 0 0 0 0 0 0 0 0 0 O O 7 M N N oo N 7 0o O M O oo O Vi Vi al O A U � y Z ^' .� ✓� 'O F. 7 N Vi .y O �O �O O oo al 7 Vi N N N al N al Z 0 0 U G O O O O a 69 69 69 69 69 69 69 69 69 69 69 69 69 69 69 69 69 O O O O O O O X 0 0 0 0 0 0 0 0 0 O O N � O O O O O O 0 0 0 0 0 0 0 0 0 O O O r1C N O O O O 0 0 0 0 0 0 0 0 7 Vi �O 0o O O O O 0 0 0 0 0 0 0 0 0 Vi 7 U U ss ss ss ss ss � ss ss ss ss ss ss ss ss ss ss ss o 0 0 0 � ;� M o v, o N000000000 o v, Z ✓� 'O F. V N 7 Vi al 7 7 M 7 0o N 7 N 0 00 .y i � �, U Q �U � 69 � 69 69 69 � 69 69 69 69 69 69 69 69 69 69 69 O O '� y � � .� ✓� 'O F. N � O � � oo M o0 7 00 00 7 Vi Vi O M o0 o 0 0 U .a ss ss ss ss ss � ss ss ss ss ss ss ss ss ss ss ss p -o � o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 � � � �, 00 0 0 00000000000 0 0 0 �.-. p � o .. 00 00 0 0 0 0 00000000000 00000000000 0 0 0 0 �o O O 00000000000 O O . o m N N v 1 ; v; v; N a o 0 0 o m r-: v, oo m m" r- .� 0 U Qo . 0 0 0 U ss ss ss ss ss ss ss ss ss ss ss ss ss ss ss ss ss � � 0 0 0 0 � °' "� ° o 7 N o Z bq m �O m oo M �O al vi oo l °i �O . •• U ,C '� Y3 � 69 69 69 � 69 69 69 69 69 69 69 69 69 69 69 C 7 .� O O N oo O O O O O O O O M O O �O O O Vi O M O 7 7 0o Vi M A U Z U� ✓� � � 7 �O --i N N Vi O O M N N Vi N N 7 0 M O � � icy �^ O O 69 69 69 69 69 69 69 69 69 69 69 69 69 69 69 69 69' 0 O O O O O O 0 0 0 0 0 0 0 a U O O N Vi O O O O M O �O O O O oo al 7 lO 0o O O l� ag N .y 7 W O ass a ss ass ass ass a � ss ass a ss `�' 0 � 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o N N o0 .� wwNO V,v,ov,Nww w o� ✓� a N °° M� N �° WG o N omo N N N o o y o 0 0 a ss a ss ass ass ass ass ass a ss 0� ,3 � -o 0 0 0 0 00 0 0 00000000000 0 O `� l C O\ O � r U � o0 00 U Yi Yi Yi Yi Yi Yi Yi Yi Yi Yi Yi Yi Yi Yi Yi Yi Yi N lid 6 U '6 � i' '6 O � � .0 A GC •p C � C GC W "' y O m P. P. 0. C C b N C � O � N Pr N r bD � i O d � EXHIBIT 3 RFP # 5545 - Best and Final Offer Pricing DATE: 8/7/ 14 Description: Fire Station No. 2 No. Qty. DESCRIPTION INIITAL PRICING BEST AND FINAL OFFER Respondent's Name: Schmoldt Construction Schmoldt Construction Principle Place of Business: Celina, TX Celina, TX Aknowledged Addendum 1 and 2 and 3 Yes Yes 2 Type of Entity Corporation Corporation 3 Total working days for substantial completion 313 313 3a Completion date if deadline cannot be met Dec. 31 2015 Dec. 31 2015 4 Total working days for project start 12 12 5 Base Bid 4,575,000.00 4,575,000.00 6 General Conditions $207,000.00 $207,000.00 7 Mobilization & Demobilization for Project $30,000.00 $30,000.00 8 Bonds (Labor and Materials & Performance) $50,000.00 $50,000.00 9 Earthwork $169,823.00 $169,823.00 10 Site Utilities $164,792.00 $164,792.00 11 Storm Drainage $20,000.00 $20,000.00 12 Building Concrete $667,000.00 $667,000.00 13 Masonry $590,000.00 $590,000.00 14 Light Gauge Framing $80,000.00 $80,000.00 15 Glass & Glazing $45,700.00 $45,700.00 16 Finish Carpentry/Millwork $95,000.00 $95,000.00 17 Drywall $205,000.00 $205,000.00 18 Plumbing $189,700.00 $189,700.00 19 Mechanical $245,000.00 $245,000.00 20 Electrical $567,000.00 $567,000.00 21 22 All other Construction Items not noted above $1,248,985.00 $1,248,985.00 Total Base Bid $ 4,575,000.00 $ 4,575,000.00 Payment Term Discounts Payment terms for the City of Denton are typically 30 days. Please indicate the additional discount extended to each month) Invoice Paid in 20 days 0.05% 0.05% Invoice Paid in 15 days 1.00% 1.00% Invoice Paid in 10 days 1.00% 1.00% *Prices shall be bid FOB Destination *In case of calculation error, unit pricing shall prevail Exhibit 4 Fire Station #2 Budget Source of Revenue 2013 CO's $ 1,000,000 2014 CO's $ 4,300,000 2015 CO's $ 800,000 $ 6,100,000 Expenditures Design $ 555,500 Land $ 285,713 Construction $ 4,575,000 Furiture, Fixture, Equipment & Other misc cost $ 683,787 Total $ 6,100,000 SAMaterials Management \PRCH \Agenda \Agenda 2013 - 2014 \August 19, 2014 \5545- Construction of Fire Station 2 \Exhibit 4- Estimated Project Budget.xls Printed 8/15/2014 SAMaterials Management \PRCH \Agenda \Agenda 2013 - 2014 \August 19, 2014 \5545- Construction of Fire Station 2 \Exhibit 4- Estimated Project Budget.xls Printed 8/15/2014 EXHIBIT 5 ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE PROPOSALS AND AWARDING A PUBLIC WORKS CONTRACT FOR THE CONSTRUCTION OF FIRE STATION NO. 2 LOCATED AT 2209 EAST MCKINNEY STREET, DENTON, TEXAS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (RFP 5545- AWARDED TO SCHMOLDT CONSTRUCTION, INC. IN THE AMOUNT OF $4,575,000. WHEREAS, the City has solicited, received and tabulated competitive proposals for the construction of public works or improvements in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and recommended that the herein described proposal is the highest scored proposal for the construction of the public works or improvements described in the Request for Proposal (RFP) document and plans and specifications therein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following competitive proposal for the construction of public works or improvements, as described in the "Request for Proposals" or plans and specifications on file in the Office of the City's Purchasing Agent filed according to the RFP number assigned hereto, are hereby accepted and approved: RFP NUMBER CONTRACTOR AMOUNT 5545 Schmoldt Construction, Inc. $4,575,000 SECTION 2. The acceptance and approval of the above competitive proposals shall not constitute a contract between the City and the person submitting the proposal for construction of such public works or improvements herein accepted and approved, until such person shall comply with all requirements specified in the Notice to Proposers including the timely execution of a written contract and furnishing of performance and payment bonds, and insurance certificate after notification of the award. SECTION 3. The City Manager is hereby authorized to execute all necessary written contracts for the performance of the construction of the public works or improvements in accordance with the proposals accepted and approved herein, provided that such contracts are made in accordance with the Notice to Proposers and Request for Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein. EXHIBIT 5 SECTION 4. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under RFP 5545 to the City Manager of the City of Denton, Texas, or his designee. SECTION 5. Upon acceptance and approval of the above competitive proposals and the execution of contracts for the public works and improvements as authorized herein, the City Council hereby authorizes the expenditure of funds in the manner and in the amount as specified in such approved proposals and authorized contracts executed pursuant thereto. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2014. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN"1, IN File #: ID 14 -0437, Version: 1 Legislation Text AGENDA INFORMATION SHEET DEPARTMENT: Materials Management ACM: Bryan Langley AGENDA DATE: August 19, 2014 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving a contract for pavement maintenance at Denton Enterprise Airport using the E -Krete Polymer Concrete Micro - Overlay system, 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 5594 awarded to International Business Consultants Inc. dba IBC Construction Corporation in the three (3) year not -to- exceed amount of $500,000). FILE INFORMATION The Denton Enterprise Airport currently has a three -year schedule for pavement maintenance of its airport roads, taxi lanes, and aircraft parking aprons. Staff evaluated several options for performing this maintenance and determined that the use of a traditional slurry seal was not cost effective due to its short lifespan and its inability to resist aviation fuels and oils. Additionally, full reconstruction of the paved areas is not an option due to limited funds and the amount of pavement to be rehabilitated. Therefore, the E -Krete Polymer Concrete Micro - Overlay system was determined to be the best utilization for the Airport. The ability to use the E -Krete product will allow the Airport to address pavement issues with a mid to long term solution at a cost that is significantly less than full reconstruction. Although other products exist that provide pavement sealing and a similar wear - ability warranty, Airport staff has determined that these products cannot provide two key requirements: E -Krete is applied with a patented flooding squeegee method that provides a uniform thickness of 1/16 -1/4 inch, depending on the pavement condition. This application cannot be reproduced with a spray -on method. • E -Krete has a similar color to concrete and produces a cooler surface than other asphalt sealers. The color can be adjusted to match existing color pavements allowing for a uniform look. City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: ID 14 -0437, Version: 1 The E -Krete product is a proprietary mix that is only provided by PolyCon USA and their authorized installer, IBC Construction Corporation. Chapter 252.022 of the Texas Local Government Code exempts from the competitive bid process, those supplies and resources protected by copyright or patent and available from only one source. RECOMMENDATION Award a contract for pavement maintenance at Denton Enterprise Airport with International Business Consultants Inc. dba IBC Construction Corporation in the three (3) year not -to- exceed amount of $500,000). PRINCIPAL PLACE OF BUSINESS International Business Consultants Inc. dba IBC Construction Corporation Jackson, MS 39213 ESTIMATED SCHEDULE OF PROJECT This project will begin upon Council approval and is anticipated to be completed in the following phases and estimated dollar amounts: • Year 1 - Taxilane, Road, and Apron Areas - $275,000 • Year 2 - Taxilane and Road Areas - $150,000 • Year 3 - Taxilane and Road Areas - $75,000 FISCAL INFORMATION This item will be funded from the approved budget for the Airport Paving Program- Denton Enterprise Airport Account 200033565.1365.40100. Purchase Orders will be issued as maintenance is needed. EXHIBITS Exhibit 1: Sole Source Memo Exhibit 2: PolyCon USA Letter Exhibit 3: Ordinance Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance For information concerning this acquisition, contact Quentin Hix at 349 -7744. City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl EXHIBIT 1 MEMORANDUM DATE: May 2, 2014 TO: Elton Brock, Purchasing Manager FROM: Patrick Carreno, Airport Operations Manager " SUBJECT: Sole Source Justification — E -Krete Overlay The Airport has evaluated a cost effective solution for Airport roads, taxilanes, and aircraft parking aprons, the maintenance of which is the responsibility of the City of Denton. The use of a traditional slurry seal was eliminated due to the short lifespan and inability to resist aviation fuels and oils. Additionally, full reconstruction of the paved areas is not an option due to limited funds and the amount of pavement to be rehabilitated. The E -Krete Polymer Concrete Micro - Overlay was determined to be the best fit for the Airport. The E -Krete product is a proprietary mix that is only provided by PolyCon USA and their authorized installer, IBC Construction Corporation. Although other products exist that provide pavement sealing and a similar wear - ability warranty, the Airport has determined that these products cannot provide two key requirements: 1. E -Krete is applied with a patented flooding squeegee method that provides a uniform thickness of 1/16 -1/4 inch, depending on the pavement condition. This application cannot be reproduced with a spray -on method. 2. E -Krete has a similar color to concrete and produces a cooler surface than other asphalt sealers. The color can be adjusted to match existing color pavements allowing for a uniform look. The ability to use the E -Krete product will allow the Airport to address pavement issues with a mid -long term solution at a cost that is significantly less than full reconstruction. Because of these reasons, the Airport would like permission to negotiate an agreement with, IBC Construction Corporation independently, allowing the company to install their product for the maintenance of asphalt surfaces on Airport property. This process would be presented to the City Council for approval using the proper procedures. Attachments 1. Uniqueness of E -Krete Products "Dedicated to Quality Service" www.cityofdenton.com Listed below are some of the attributes and properties of E -Krete products that are unique and not available from any other source: • E -Krete products are proprietary, highly engineered and formulated and backed up with patents, trademarks and trade secrets. E -Krete (PolyCon USA) has not licensed anyone in the U.S. to manufacture its products. • E -Krete Overlay (PCMO) is squeegee applied utilizing proprietary equipment, designed and patented by PolyCon USA. The two compartment, flexible, squeegee sled is proprietary, patented and PolyCon has not licensed anyone to manufacture or use this flex -sled design. • E -Krete Overlay (PCMO) is considered a micro- overlay utilizing a proprietary mix of polymers, cement, aggregates and some other secret ingredients. The exact formulation of this mix is a trade secret, patented, trademarked and licensed to no one. • E -Krete Solar Reflective (SR) Overlay is unique to the pavement industry providing a "cool surface" typically 15 ° -300 F lower than asphalt. This is also backed up with testing and patents. • E -Krete Overlay is the only product on the market in which the friction level can be adjusted to suit the customers' requirements. E -Krete holds its friction number over time better than asphalt. • E -Krete is the only pavement product of its kind that has been tested on a Nationally recognized asphalt pavement test track (there are only a few in the Country) to prove its capabilities. During a 2 -year continuance test at NCAT, E -Krete Overlay was subjected to over 5,000,000 EVALS which is a simulated equivalent of over 10 years of interstate heavy traffic. No delamination failures were observed during the test. • E -Krete Overlay eliminates the potential of raveling aggregates being released as FOD's as all the exposed aggregates are locked in place by the Overlay. This is a unique feature of E -Krete as compared to asphalt in which case the raveling of aggregate increase with time. • E -Krete Overlay is impervious of aviation fluids and oils and will soften from these fluids as asphalt and other paving products do. • E -Krete is the only Overlay product that preserves and restores asphalt which is long - lasting and the only company with a history of installations to prove it. • E -Krete is the only Product on the market that has many airport installations that have been in service for over 10 years and have required little or no maintenance. 701 S. Royal St., Suite D • P.O. Box 42 • Mobile, AL 36601 • 251 - 431 -8050 • www.polyconusa.com EXHIBIT 3 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR, AUTHORIZING, AND APPROVING A CONTRACT FOR PAVEMENT MAINTENANCE AT DENTON ENTERPRISE AIRPORT USING THE E -KRETE POLYMER CONCRETE MICRO - OVERLAY SYSTEM, 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 5594 AWARDED TO INTERNATIONAL BUSINESS CONSULTANTS INC. DBA IBC CONSTRUCTION CORPORATION IN THE THREE (3) YEAR NOT -TO- EXCEED AMOUNT OF $500,000). 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, are hereby approved: FILE NUMBER VENDOR AMOUNT 5594 International Business Consultants Inc. $500,000 dba IBC Construction Corporation 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 EXHIBIT 3 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 5594 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. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY IC APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY IC • City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN"1 ON File #: ID 14 -0438, Version: 1 Legislation Text AGENDA INFORMATION SHEET DEPARTMENT: Materials Management ACM: Bryan Langley AGENDA DATE: August 19, 2014 SUBJECT Consider adoption of an ordinance of the City of Denton authorizing the City Manager or his designee to execute a contract through the State of Texas Smart Buy Program for the purchase of asphalt patching material for the City of Denton Streets Department as awarded by the State of Texas Contract 745 -A1; and providing an effective date (File 5615- awarded to Zack Burkett in the three (3) year not -to- exceed amount of $600,000). FILE INFORMATION This contract will be used by the Streets Department to purchase cold mix asphalt to be utilized by City crews in the maintenance of City streets (pothole repair). The cold asphalt mix can be used as an emergency repair or a permanent fix depending on the size of the hole. Due to an increased staffing level in the Streets Department, a significantly higher number of repairs are estimated to be completed in the next fiscal year. Therefore, the annual estimated cost for the patching material is estimated to be $200,000. This product will be purchased from State of Texas Smart Buy Program Contract 745 -A1 awarded though a competitive process. The unit price amount is $95 /ton with a delivery fee of $19 /ton for a total per ton cost of $114. The contract awarded to Zack Burkett is valid until August 31, 2017. RECOMMENDATION Award the purchase of asphalt patching material to Zack Burkett in the three (3) year not -to- exceed amount of $600,000. PRINCIPAL PLACE OF BUSINESS Zack Burkett Graham, Texas ESTIMATED SCHEDULE OF PROJECT The contract period with the State of Texas expires on August 31, 2017. The State of Texas also has two (2) one -year renewal options through August 31, 2019. City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: ID 14 -0438, Version: 1 FISCAL INFORMATION The asphalt patching material will be funded from Street Maintenance operating account 285801.6516.40100. Purchase orders will be issued on an as needed basis. EXHIBITS Exhibit 1: State of Texas Contract 745 -A1 Exhibit 2: Ordinance Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance For information concerning this acquisition, contact: Keith Gabbard at 349 -7144. City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl Contract Details EXHIBIT I (http://www.window.state.tx.us/) iuIrilI�� il "U kit J Cllr, 1vi471�Ylu Ib n «L ��oJ„ oiiU ar, Search: Page 1 of 13 items Contract Details: # 745 -A1 Number 745 -A1 Description Aggregate, Asphaltic Category TxSmartBuy Type Term Start Date 6/27/2012 End Date 8/31/2017 http: / /www.txsmartbuy.com/ 8/5/2014 Contract Details EXHIBIT 1 Page 2 of 13 Overview SPECIAL NOTE: CUSTOMERS SHOULD NOTIFY THE TPASS CONTRACT MANAGEMENT IF A PRIMARY CONTRACTOR IS UNABLE TO PROVIDE ANY MATERIALS UNDER THIS CONTRACT. THIS CONTRACT CONSISTS OF EIGHT (8) LEVELS OF AWARDS: FIRST, SECOND, THIRD, FOURTH, FIFTH, SIXTH, SEVENTH AND EIGHTH. THE FIRST LEVEL PRIMARY CONTRACTOR SHOULD BE USED TO MEET THE REQUIREMENTS OF THE CUSTOMER. SECONDARY AND TERTIARY CONTRACTORS SHOULD ONLY BE USED IN INSTANCES WHERE: (1) THE PRIMARY CONTRACTOR IS UNABLE TO FULLFILL THE ORDER; OR, (2) A SECONDARY OR TERTIARY VENDOR WOULD BE CONSIDERED "BEST VALUE" PURCHASING FROM OTHER THAN PRIMARY CONTRACTOR: DUE TO THE UNPREDICTABILITY OF TRAVEL DISTANCES TO CONSTRUCTION PROJECTS, CUSTOMERS WILL HAVE THE OPTION OF UTILIZING A SECONDARY OR TERTIARY VENDOR IF THEY CAN PROVIDE EVIDENCE THAT DOING SO WOULD BE CONSIDERED A BEST VALUE ACQUISITION. IN DETERMINING BEST VALUE, THE CUSTOMER MUST CONSIDER MATERIAL PRICE, DELIVERY PRICE AND TOTAL DISTANCE TO THE WORKSITE FOR SPECIFIC PROJECTS AND STOCKPILES. THE CUSTOMER IS REQUIRED TO PROVIDE A WRITTEN JUSTIFICATION DETAILING WHY THE PRIMARY CONTRACTOR WAS NOT UTILIZED. A COPY OF THE EXPLANATION, AND /OR BEST VALUE DETERMINATION IF APPLICABLE, SHOULD BE KEPT IN THE CUSTOMER'S PROCUREMENT FOLDER FOR FUTURE AUDITING PURPOSES. IF THE PRIMARY CONTRACTOR IS NOT ABLE TO DELIVER A CUSTOMER'S ORDER, THEY ARE REQUIRED TO PROVIDE WRITTEN NOTICE TO THE CUSTOMER AND CPA WITHIN 24 HOURS AFTER RECIEPT OF PURCHASE ORDER. THEY MUST STATE THE REASONS FOR THEIR INABILITY TO DELIVER. CPA WILL REVIEW THE CONTRACTOR'S REASON AND WILL RESPOND TO BOTH THE CUSTOMER AND THE CONTRACTOR ON HOW TO PROCEED. Purchase PCC C Category Code (Agencies Only) Optional Renewal September 1, 2017 through August 31, 2018 Terms September 1, 2018 through August 31, 2019 Purchase Orders Only purchase orders issued through TxSmartBuy are eligible for contract pricing. The Contractor will not ship any products or provide related services until receipt of a Purchase Order generated by the TxSmartBuy system. NIGP Code(s) 745 -01 745 -02 745 -04 745 -06 745 -08 745 -10 745 -14 745 -21 745 -49 745 -65 745 -67 745 -77 745 -80 745 -87 http: / /www.txsmartbuy.com/ 8/5/2014 Contract Details EXHIBIT 1 Page 3 of 13 CPA Contract Questions regarding contract management issues, price changes, amendments or Management other post -award concerns should be directed to: TPASS Contract Management Office (TCMO) Texas Comptroller of Public Accounts (CPA) Fax: (512) 936 -0040 Email:tpass_cmo @cpa.state.tx.us ( mailto :tpass_cmo @cpa.state.tx.us) http: / /www.txsmartbuy.com/ 8/5/2014 Contract Details EXHIBIT 1 Page 4 of 13 Contract SPECIAL NOTE: CUSTOMERS SHOULD NOTIFY THE TPASS CONTRACT Specifics /Notes MANAGEMENT IF A PRIMARY CONTRACTOR IS UNABLE TO PROVIDE ANY MATERIALS UNDER THIS CONTRACT. THIS CONTRACT CONSISTS OF EIGHT (8) LEVELS OF AWARDS: FIRST, SECOND, THIRD, FOURTH, FIFTH, SIXTH, SEVENTH AND EIGHTH. THE FIRST LEVEL PRIMARY CONTRACTOR SHOULD BE USED TO MEET THE REQUIREMENTS.OF THE CUSTOMER. SECONDARY AND TERTIARY CONTRACTORS SHOULD ONLY BE USED IN INSTANCES WHERE: (1) THE PRIMARY CONTRACTOR IS UNABLE TO FULLFILL THE ORDER; OR, (2) A SECONDARY OR TERTIARY VENDOR WOULD BE CONSIDERED "BEST VALUE ", PURCHASING FROM OTHER THAN PRIMARY CONTRACTOR: DUE TO THE UNPREDICTABILITY OF TRAVEL DISTANCES TO CONSTRUCTION PROJECTS, CUSTOMERS WILL HAVE THE OPTION OF UTILIZING A SECONDARY OR TERTIARY VENDOR IF THEY CAN PROVIDE EVIDENCE THAT DOING SO WOULD BE CONSIDERED A BEST VALUE ACQUISITION. IN DETERMINING BEST VALUE, THE CUSTOMER MUST CONSIDER MATERIAL PRICE, DELIVERY PRICE AND TOTAL DISTANCE TO THE WORKSITE FOR SPECIFIC PROJECTS AND STOCKPILES. THE CUSTOMER IS REQUIRED TO PROVIDE A WRITTEN JUSTIFICATION DETAILING WHY THE PRIMARY CONTRACTOR WAS NOT UTILIZED. A COPY OF THE EXPLANATION, AND /OR BEST VALUE DETERMINATION IF APPLICABLE, SHOULD BE KEPT IN THE CUSTOMER'S PROCUREMENT FOLDER FOR FUTURE AUDITING PURPOSES. IF THE PRIMARY CONTRACTOR IS NOT ABLE TO DELIVER A CUSTOMER'S ORDER, THEY ARE REQUIRED TO PROVIDE WRITTEN NOTICE TO THE CUSTOMER AND CPA WITHIN 24 HOURS AFTER RECIEPT OF PURCHASE ORDER. THEY MUST STATE THE REASONS FOR THEIR INABILITY TO DELIVER. CPA WILL REVIEW THE CONTRACTOR'S REASON AND WILL RESPOND TO BOTH THE CUSTOMER AND THE CONTRACTOR ON HOW TO PROCEED. DELIVERY DAYS ARO: This contract does not include specific ARO. Customers should schedule shipments with the vendor before a purchase order is created. DELIVERY REQUIREMENTS: Normal delivery time for most Customers is Monday through Friday 8:00 a.m. through 4:00 p.m. (CT) except for State and /or Federal holidays. Delivery destinations will be indicated on each purchase order. Customers will provide all contact information for each delivery site at the time of the order. Extensions of delivery may be granted on a case -by -case basis by the Customer, upon written request by the Contractor. Written requests for delivery extensions shall include customer's requisition /purchase order numbers, and time frame in number of days for extension, and must precede the late delivery of the material. NOTE: Providing material that does not meet specifications does not constitute delivery. STORAGE AND HANDLING INSTRUCTIONS: Contractor shall provide any special storage and handling instructions required based upon composition or characteristics specific to the material upon delivery of such materials to the Customer. INSPECTION INFORMATION: The materials ordered will be subject to testing upon receipt. Inspection of delivered materials will be in accordance with Texas Department of Transportation (TxDOT) Specifications for each type of material listed in Section J. Products shall be new, unused, of current production, and in first class condition, including containers suitable for shipment and storage, unless otherwise specified. In compliance with Item 520 "Weighing and Measurement Equipment" and 520.2, the vendor shall provide scales, scale installations, and measuring equipment meeting the requirements of NIST Handbook 44, except that the accuracy must be 0.4% of the material being weighed and measured. http: / /www.txsmartbuy.com/ 8/5/2014 Contract Details EXHIBIT 1 Page 5 of 13 Certifications: Contractors are required to assure that all materials from Texas mines comply with the Surface Mining and Reclamation Act of 1975 (Sand, Gravel, Aggregates and other Minerals) and are from a source listed by the Department of Conservation or are in a class that is not subject to these requirements. SPECIFICATIONS: The link below will provide detail information for each Road Aggregate type referenced throughout these instructions. Specification Information (XLS) (http: / /www. window. state .tx.us /procurement/tools /745 - 750 -a 1 -rd -matl- specs - asphaltic.xls) DEMURRAGE CHARGE: The Contractor's driver shall report to the Customer's representative at the time of the arrival at the FOB location and obtain a signature documenting the date and time. Written documentation of arrival shall be used when calculating demurrage charges and included with any invoice charging demurrage time. Trucks may be held up to two hours at the job site at no additional expenses to the Customers. The demurrage charge may be invoiced based on pricing on each line item listed on the term contract. The demurrage charge shall be invoiced in 15 minute increments. Demurrage charges may begin two hours after truck arrival at the job site or scheduled delivery time, whichever is later. If the Contractor failed to quote a demurrage charge, the Contractor may not invoice for demurrage during the contract period. MATERIAL PICKUP BY CUSTOMER: A Customer may order material at the contract price for pickup at the producer's plant or pit for loading into their own transport vehicles. Pick up will be during normal operating hours. The Contractor will be responsible for dispensing material safely into Customer's transport vehicle. In no instance will the Contractor require the Customer to self -load materials. Customers will order material from the Contractor that provides the best overall value for the State for specific projects. Best value will be determined by considering the price of the material and the impact of transportation by state forces, base on a round trip travel distance to /from the Contractor's location to the work site. Customers will document the best value determination in each procurement file. TEMPORARY STOCK -IN- PLACE: Customers may request the Contractor to produce material and stockpile it at the Contractor's location for pick -up by Customer at an agreed upon future date. Customer will inspect and /or test, and initiate payment when notified by Contractor that the material has been produced. When Contractor accepts a stock in place order, Contractor shall not invoice any additional fees for stockpiling. MINIMUM HAUL DISTANCE: Contractors will be allowed to invoice Customers for a minimum of ten (10) hauling miles for deliveries shorter than that distance. If requested by the Contractor, the Customer shall make these distance corrections on the original PO or through a Purchase Order Change Notice (POCN) in TxSmartBuy by entering a quantity of ten (10) times the material quantity on the delivery line item. Customers should also include the actual haul distance in the notes section of the PO. LATE DELIVERY REMEDY: A late delivery fee may be levied by the Customer for specific material only when Customer communicates the date, time, location and on- time delivery provision to the Contractor and the specifics are clearly indicated on the purchase order. The Customer must provide at least five (5) days advance notice from the scheduled delivery date. The Customer has the option to deduct any accumulated late delivery fees prior to payment of an invoice, by reducing invoice total at time of payment. The Customer has the option to charge the Contractor a remedy of five (5) percent of purchase order value for every two hours beyond the confirmed delivery date and time with a cap of fifteen (15) percent of the total purchase order value. It will be the Customer's responsibility to contact the Contractor to establish delivery dates and times. The late fee applies ONLY when Contractor has not requested and received prior written approval from Customer to make delivery at other than the required date and time on the purchase order and the Customer has met the notification requirements of this Section. http: / /www.txsmartbuy.com/ 8/5/2014 Contract Details EXHIBIT 1 Page 6 of 13 The late delivery fee will only apply to deliveries made to actual roadway operations. Deliveries to stockyards will not be assessed a late delivery fee. Notes: Providing material that does not meet specification requirements does not constitute delivery, and the late fee may continue to accrue until the Contractor delivers materials in full compliance with the specifications to Customer's delivery location. 1. CONTRACTOR'S DELIVERY REMEDY: The Contractor has the option to invoice and charge the customer the full delivery cost of a one -way delivery for any purchase order cancelled (at no fault of the Contractor) after on -time delivery has been made. 2. RAIL DELIVERY INSTRUCTIONS: An order to be transported by rail must be at least 4,560 tons or 40 car loads, whichever is less, unless Customer and Contractor agree to other minimum quantities. The Contractor shall keep records on tare weight, gross weight, and net weight on each load of the same type of mixture. The Contractor shall furnish accurate railroad bill of ladings, and provide certified weights to verify the accuracy and sensitivity of the scales for weighing. Contractors shall not offer delivery by railcar to a location for which the Contractor does not have access to certified scales to weigh each car at both loading and delivery points. When delivering by rail, truck scale weighs at destination will be an acceptable alternative to rail weights. Rail shipments may be reweighed on a certified rail scale at or near the destination or the net material may be determined as it is being unloaded. For rail shipments the tolerance will be 0.8 percent of the gross weight if reweighted on rail scales and 1 percent of net weight if unloaded and reweighed on vehicle scales. TxSmartBuy Note: Rail delivery cost is already included in the cost of that material in TxSmartBuy. Purchasers will still need to add truck delivery from the final rail destination to the final destination of the material to the purchase order. Expedited Following the contract award, additional products or services of the same general Payment category that could have been encompassed in the award of this contract, and that Discount are not already on the contract, may be added. Customers are encouraged to request additional items by contacting the TPASS Contract Management Office. Adding New Following the contract award, additional products or services of the same general Products to the category that could have been encompassed in the award of this contract, and that Contract are not already on the contract, may be added. TPASS customers are encouraged to request additional items by contacting the TPASS Contract Management Office. Delivery Delays If delay is foreseen, Contractor shall give written notice to the Customer and must by Contractor keep Customer advised at all times of status of order. Default in promised Delivery Days After Receipt of Order (ARO) without accepted reasons or failure to meet specifications authorizes the Customer to purchase goods and services of this contract elsewhere and charge any increased costs for the goods and services, including the cost of re- soliciting, to the Contractor. Failure to pay a damage assessment is cause for contract cancellation and /or debarment or removal of the contractor, as applicable, from the State Centralized Master Bidders List (CMBL). http: / /www.txsmartbuy.com/ 8/5/2014 Contract Details EXHIBIT 1 Page 7 of 13 Compliant Delivery does not occur until the Contractor delivers products, materials or services in Products by full compliance with the specifications to Customer F.O.B. destination, unless delivery Contractor is specifically accepted, in whole or in part, by the Customer. Providing products, materials or services which do not meet all specification requirements does not constitute delivery. Customer reserves the right to require new delivery or a refund in the event that materials or products not meeting specifications are discovered after payment has been made. Purchase Order The Customer may request that a Contractor cancel a specific line item or an entire Cancellation purchase order. There shall be no fees charged for cancellation of an item and /or order prior to shipment by the Contractor. The cancellation must be processed through the TxSmartBuy system. Restocking Fee The Customer may request that a Contractor accept return of products already for Returned delivered. If the return is required through no fault of the Contractor, the Contractor Products may request a reasonable restocking charge. The Customer may pay a restocking charge if the CPA or Customer determines that the charge is justifiable. As a guideline, such charges shall not exceed 10 %. Substitutions During the Contract term, the Contractor shall not substitute a product or brand unless the Contractor has obtained prior written approval from the CPA Contract Manager in coordination with the Customer. The Contractor must have written confirmation from the CPA Contract Manager of the substitution before making delivery. Contractor The Texas Procurement and Support Services (TPASS), a division of the Comptroller Performance of Public Accounts (CPA), administers a vendor performance program for use by all customers per Texas Government Code (TGC), §2262.055, and 34 Texas Administrative Code (TAC), §20.108. The Vendor Performance relies on the customer's participation in gathering information on vendor performance. State agency customers shall report vendor performance on purchases over $25,000 from contracts administered by CPA, or any other purchase over $25,000 made through delegated authority granted by CPA (TAC 20.108), or purchases exempt from CPA procurement rules and procedures. State agencies are additionally encouraged to report vendor performance on purchases under $25,000. Vendor Performance shall be reported through the CPA VENDOR PERFORMANCE TRACKING SYSTEM (hftp: / /www. window. state.tx. us/ procurement /prog /vendor performance /). The purpose of the Vendor Performance Tracking System is to: * Identify vendors that have exceptional performance * Aid purchasers in making a best value determination based on vendor past performance • Protect the state from vendors with unethical business practices • Provide performance scores in four measurable categories for the CMBL vendors • Track vendor performance for delegated and exempt purchases Contractors Information http: / /www.txsmartbuy.com/ 8/5/2014 Contract Details EXHIBIT 1 Contractor: Unique Paving Materials Corp. Contact Name: LEE REBER Contractor: Uretek Usa Inc. Contact Name: Norberto Laureano 1y /IIMK- W- 1:10 *1K Contractor: Volcanic Stone Contact Name: Dorothie Getman Email: volcanicstone @nts- online.net Phone: (806) 935 -6966 Address: Dorothie Getman Volcanic Stone 1557 Fm 2203 Dumas TX 79029 Contractor: Vulcan Construction Materials Lp Contact Name: PAT WOOTON Contractor: Waller County Asphalt, Inc. Contact Name: Jennifer Graham Contractor: Wenzel Wenzel & Assoc Inc HUB Eligibility: WO HUB Gender: F Contractor: West Texas Paving, Inc Contact Name: DARRELL JARNAGIN VID:17522854052 Contractor: West Texas Rumble Strip Contact Name: Alisa Parrott Email: Alisa.Parrott @Yahoo.Com Phone: (325) 766 -3401 Address: Alisa Parrott West Texas Rumble Strip 600 Front St. Roscoe TX 79545 Contractor: Western Emulsions, Inc. Contact Name: Rusty Smallwood Contractor: Wright Asphalt Products Co Contact Name: Brian (Keith) Contractor: Zack Burkett Co Contact Name: Kathy May Page 12 of 13 tfN � t �. k t G fC t 47TT �I16i " 1 N �o ,N E �IMOIMMI http: / /www.txsmartbuy.com/ 8/5/2014 EXHIBIT 2 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A CONTRACT THROUGH THE STATE OF TEXAS SMART BUY PROGRAM FOR THE PURCHASE OF ASPHALT PATCHING MATERIAL FOR THE CITY OF DENTON STREET DEPARTMENT AS AWARDED BY THE STATE OF TEXAS CONTRACT 745 -A1; AND PROVIDING AN EFFECTIVE DATE (FILE 5615- AWARDED TO ZACK BURKETT IN THE THREE (3) YEAR NOT -TO- EXCEED AMOUNT OF $600,000). WHEREAS, pursuant to Resolution 92 -019, the State of Texas has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of state law on behalf of the City of Denton; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described materials, equipment, supplies or services can be purchased by the City through the State of Texas Procurement programs at less cost than the City would expend if bidding these items individually; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered purchase order for materials, equipment, supplies, or services, shown in the File Number listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMBER VENDOR AMOUNT 5615 Zack Burkett $600,000 SECTION 2. By the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the State of Texas, the City Manager or his designated representative is hereby authorized to execute the written contract which shall be attached hereto; provided that the EXHIBIT 2 written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the State of Texas, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 5615 to the City Manager of the City of Denton, Texas, or his designee. SECTION 5. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this day of , 2014. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN"1, IN File #: ID 14 -0439, Version: 1 Legislation Text AGENDA INFORMATION SHEET DEPARTMENT: Materials Management ACM: Bryan Langley AGENDA DATE: August 19, 2014 SUBJECT Consider adoption of an ordinance of the City of Denton authorizing the City Manager or his designee to execute a contract through the State of Texas for the purchase of recycled copy paper for the City of Denton Distribution Center as awarded by the State of Texas Contract 645 -A1; and providing an effective date (File 5602- Purchase of Recycled Copy Paper for the City of Denton Distribution Center awarded to TIBH Industries, Inc. in the three (3) year not -to- exceed amount of $200,000). FILE INFORMATION This item is for the purchase of recycled copy paper which will be stocked in the City's Distribution Center for use by all City Departments. The purchase and use of recycled paper supports the City's sustainability efforts. The City of Denton is utilizing the State of Texas Contract 645 -A1 awarded through a competitive process to order recycled copy paper through TIBH Industries, Inc. TIBH Industries, Inc. ( <http: / /tibh.org /index.th)>) was identified as a resource that has effectively delivered services and commodities to many cities, counties and government entities. TIBH Industries, Inc. serves as a catalyst in Texas for employment opportunities for people with disabilities, through its' statutory authorization as the State of Texas Central Non - Profit Agency. The program was first initiated in 1978, authorized by the Texas Legislature through Texas Human Resources Code, Title 8, Chapter 122, as a State of Texas set -aside program, which exempts government entities from competitive requirements. This statute also established the requirement for the State of Texas to maintain a state -wide contract for all government entities to access these types of services. RECOMMENDATION Award a contract through the State of Texas Contract 645 -A1 for the supply of recycled copy paper from TIBH Industries, Inc., in the three (3) year not -to- exceed amount of $200,000. PRINCIPAL PLACE OF BUSINESS TIBH Industries, Inc. Austin, TX City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: ID 14 -0439, Version: 1 ESTIMATED SCHEDULE OF PROJECT The State of Texas contract term ends on 12/31/2099. This approval request is for a three (3) year period ending August 19, 2017. FISCAL INFORMATION The paper will be funded out of the Distribution Center Working Capital account and charged back to the using department. EXHIBITS Exhibit l: State of Texas Contract 645 -A1 Exhibit 2: TIBH Industries, Inc. Pricing for Recycled Copy Paper Exhibit 3: Ordinance Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance For information concerning this acquisition, contact: Elton Brock at 349 -7133. City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl CPA Term Contract 645 -A1 -PAPER - TIBH EXHIBIT 1 -,C,',',,)Wind,owonStat Goverm."nent 5uias nom' s , Page 1 of 2 NOTE: The products listed are for use by eligible State of Texas entities ONLY and are not for personal purchase or purchase by commercial entities. _ ........... ...,. ... .... r..., .. All Term Contracts TxSmartBuy Term "Green" Items Managed & CCG „ Travel Contracts Emergency Mgmt Search for Contracts Enter keywords or NIGP codes to find state contracts: Contract Terms and Instructions 645 -A 1 -PAPER - TIBH Start Date: 02/2002 End Date: 12/2099 SPECIAL INSTRUCTIONS AND CONDITIONS A. CONTRACT NO: 645 -A I PAPER — RECYCLED - TIBH B. HOW TO ORDER: Enter requisition(s) into the TxSmartBuy on -line ordering system. Only purchase orders issued through TxSmartBuy are eligible for contract pricing. Search for TIBH items by clicking on the Visit Site link in TxSmartBuy. You will be redirected to the TIBII Punchout site. When all items have been added to the cart, you will click the Return to Marketplace Home button in order to proceed with checkout. Orders must be processed through TxSmartBuy. The Contractor agrees not to ship any materials until issuance of a Purchase Order through TxSmartBuy by the State Agency, Higher Education, or Cooperative member. C. TERM OF CONTRACT: February 1, 2002 through December 31, 2099 D. DELIVERY DAYS ARO: 20 days after receipt of order (ARO). Special mill and truck load orders must be delivered within 60 days ARO. A Special Mill Order is defined as an order for an unusually large quantity, over and above the normal stocking level. TIBH will be responsible for notifying customers of mill orders. E. FREIGHT: Freight is added when less than $250 of paper is ordered. Inside delivery is charged based on the following: $5.00 per CWT with a minimum of $30.00 per order Other premium type deliveries will be added to invoice. F. TIBH CONTACT: Questions concerning technical specifications should be directed to 512- 451 -8145 G. CONTRACTOR PERFORMANCE: The Comptroller of Public Accounts (CPA) administers a vendor performance program for use by all ordering entities per Texas Government Code, Title 10, Subtitle D, Section 2155.077. The Vendor Performance and Debarment Program relies on the ordering entity's participation in gathering information on vendor performance. Ordering Entities shall report vendor perforntancc on purchases over $25,000 from contracts administered by the commission or any other purchase over $25,000 made through delegated authority granted by CPA (TAC 20.108). Agencies are additionally encouraged to report vendor performance on purchases under $25,000. Vendor Performance shall be reported through the CPA VENDOR PERFORMANCE TRACKING SYSTEM. tile:/// S:IMaterials %20ManagementIPRCHI Agenda/ Agenda %202013- 2014 /August %2019,... 8/1/2014 CPA Term Contract 645 -A1 -PAPER - TIBII EXHIBIT 1 The purpose ofthe Vendor Performance Tracking System is to: Identity vendors that have exceptional performance. Aid purchasers in making a best value determination based on vendor past performance. Protect the state from vendors with unethical business practices. Provide performance scores in four measurable categories for the CMBL vendors. Track vendor performance for delegated and exempt purchases. Page 2 of 2 file: / / /S: /Materials %20Management /PRCH /Agenda /Agenda %202013- 2014 /August %2019,... 8/1/2014 EXHIBIT 2 I NO 1, T R IIII IIII City of Denton Mrs. Jody Word Buyer 901B Texas Street Denton, TX 76209 July 10, 2014 Re: Copy Paper Dear Mrs. Word, Thank you for the opportunity. The City of Denton is Zone 4. The price for recycled copy paper is $35.23 per case (Copy Paper, No. 4 Recycled — 8 %" x 11 "). A truckload of State Use copy paper is 800 -880 cases. The commodity code is: 64521210167. Sincerely, Erynn Harrison TIBH Industries Inc. Regional Marketing Manager /Products North Texas (817)589 -0776 g.Liqr.E� r...q .N......p. 1060 West Pipeline Road, Suite 102 Hurst, Texas 76053 tel 817.589.0776 www.tibh.org EXHIBIT 3 ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A CONTRACT THROUGH THE STATE OF TEXAS FOR THE PURCHASE OF RECYCLED COPY PAPER FOR THE CITY OF DENTON DISTRIBUTION CENTER AS AWARDED BY THE STATE OF TEXAS CONTRACT 645 -A1; AND PROVIDING AN EFFECTIVE DATE (FILE 5602- PURCHASE OF RECYCLED COPY PAPER FOR THE CITY OF DENTON DISTRIBUTION CENTER AWARDED TO TIBH INDUSTRIES, INC. IN THE THREE (3) YEAR NOT -TO- EXCEED AMOUNT OF $200,000). WHEREAS, pursuant to Resolution 92 -019, the State of Texas has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of state law on behalf of the City of Denton; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described materials, equipment, supplies or services can be purchased by the City through the State of Texas Procurement programs at less cost than the City would expend if bidding these items individually; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered purchase order for materials, equipment, supplies, or services, shown in the File Number listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMBER VENDOR AMOUNT 5602 TIBH Industries, Inc. $200,000 SECTION 2. By the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the State of Texas, the City Manager or his designated representative EXHIBIT 3 is hereby authorized to execute the written contract which shall be attached hereto; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the State of Texas, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. The City Council of the City of Denton, Texas hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under File 5602 to the City Manager of the City of Denton, Texas, or his designee. SECTION 5. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this day of 2014. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY :• APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com I ENI" N Legislation Text File #: ID 14 -0440, Version: 1 AGENDA DATE: DEPARTMENT: ACM: SUBJECT C'T AGENDA INFORMATION SHEET August 19, 2014 Parks and Recreation Department John Cabrales Consider adoption of an ordinance approving a sponsorship in an amount not to exceed $4,700.00 of in -kind services and resources for the fourth annual Susan G. Komen North Texas Denton Race for the Cure to be held at C.H. Collins Athletic Complex and Long Road on Saturday, September 27, 2014; and providing an effective date. BACKGROUND The Susan G. Komen North Texas Denton Race for the Cure is requesting the City to participate as a sponsor. The City sponsored up to $10,000 of in -kind services and resources for the past two years which included Police overtime, rental of South Lakes Park, rental of tables and chairs, and barricades for street closures. In return, the City was recognized as a Diamond level sponsor, consistent with the value of in -kind services. In addition to $10,000 from the General Fund, Komen received $10,000 in Hotel/Motel Occupancy Tax (HOT) funds. The Denton Race for the Cure is organized by Susan G. Komen of North Texas and various volunteers. The 2013 attendance was approximately 1,555. This year, the event will be held at C.H. Collins Athletic Complex and the Denton Independent School District facilities on Long Road. Since the event willnot be taking place in a park, fewer street closures and police officers willbe needed resulting in a reduced request for in -kind services. PRIOR ACTION /REVIEW This is the fourth Susan G. Komen North Texas Denton Race for the Cure and for the past two years City Council has provided up to $10,000 sponsorship in in -kind services and resources. In 2011, the event was held on the University of North Texas Campus and no in -kind services were provided by the City. FISCAL INFORMATION An estimated cost to provide the requested in -kind services and resources is $4,700. The total cost of this sponsorship and HOT Funds is $14,700, 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 2. Proposed Ordinance Respectfully submitted: Emerson Vorel Director of Parks and Recreation City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: ID 14 -0440, Version: 1 Prepared by: Janie McLeod Community Events Coordinator City of Denton Page 2 of 2 Printed on 8/15/2014 powo and by I ogiFfl ar nvl Exhibit 1 In -Kind Services and Resources for 2013 Proposed In -Kind Services and Resources for 2014 Susan G. Komen Race for the Cure 2013 Held in South Lakes Park City In -Kind City Police Equipment & Waived HOT Total Costs Contribution Personnel Overtime Supplies Fees Funds* Parks & Reg. Time Park Rental Parks & 0 $3,100 0 $3,100 Recreation $1,616 $1,632 $1,907 $1,800 $5,323 Police $4,581 $4,581 Total In -Kin 0 $1,632 $3,100 0 $4,732 Services $1,616 $4,581 $1,907 $1,800 $9,904. HOT Funds $10,000 $10,000 Grand $1,632 $3,100 $0 $10,000 $14,732 Total $1,616 $4,581 $1,907 $1,800 $10,000 $19,904 Estimated 2014 Held at C.H. Collins Athletic Stadium City In -Kind City Police Equipment & Waived HOT Total Costs Contribution Personnel Overtime Supplies Fees Funds* Parks & Recreation 0 $3,100 0 $3,100 Police 0 $1,632 0 $1,632 Total In- Kind 0 $1,632 $3,100 0 $4,732 Services HOT Funds $10,000 $10,000 Grand Total $1,632 $3,100 $0 $10,000 $14,732 * HOT funds are approved in a separate budget. HOT Funds were included to show the total of the City's contribution to Susan G Komen North Texas Denton Race for the Cure. The proposed in -kind services for 2014 are less than 2013 due to the change in event location and the reduced number of street closures and security needed. S:\Lega1\0ur Documents�Ordinances \14\komensponsorshipl4.doc ORDINANCE NO. Exhibit 2 AN ORDINANCE APPROVING A SPONSORSHIP IN AN AMOUNT NOT TO EXCEED $4,700.00 OF IN -KIND SERVICES AND RESOURCES FOR THE FOURTH ANNUAL SUSAN G. KOMEN NORTH TEXAS DENTON RACE FOR THE CURE, TO BE HELD AT C.H. COLLINS ATHLETIC COMPLEX AND LONG ROAD ON SATURDAY, SEPTEMBER 27,2014; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Susan G. Komen North Texas Race for the Cure, is requesting the City of Denton to participate as a sponsor, for the event to be held at C.H. Collins Athletic Complex and Long Road on September 27, 2014; and WHEREAS, the City of Denton has sponsored up to $10,000.00 of in -kind services for the 2012 and 2013 events which included Police, rental of South Lakes Park, tables and chairs, and the provision of barricades for street closures; 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 of benefit to the citizens of the City of Denton to participate as a sponsor at a level not to exceed $4,000.00 of in- kind services for the event to be held at C.H. Collins Athletic Complex and Long Road on September 27,2014; 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 of benefit to the citizens of the City of Denton to participate as a sponsor at a level not to exceed $4,700.00 of in- kind services, including but not limited to Police support and the provision of barricades and resources 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. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN", IN File #: ID 14 -0441, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Parks and Recreation CM/ ACM: John C. Cabrales, Jr. Date: August 19, 2014 SUBJECT Consider a request for an exception to the Noise Ordinance for the purpose of the fourth annual Susan G. Komen North Texas Denton Race for the Cure to be held at C.H. Collins Athletic Complex and Long Road, on Saturday, September 27, 2014, from 6 a.m. to 11 a.m. Amplified sound is needed for public announcements regarding race times and to play music during the event. The exception is specifically requested to increase sound levels from 70 to 75 decibels. Staff recommends approval of request. BACKGROUND This year's race is expected to attract 1,500 to 2,000 attendees from Denton County and the surrounding seven counties served by Susan G. Komen in North Texas. Amplified music will be playing to welcome participants during registration and announcements would be made from the stage prior to race start times and during the celebration of the cancer survivors and attendees. The proposed timeline for the run /walk activities has the race day registration opening at 6 a.m. and the Survivor Celebration ending at approximately 10:15 a.m. PRIOR ACTION /REVIEW (Council, Boards, Commissions) City Council approved last year's request for a variance to the noise ordinance for the Susan G. Komen Race North Texas Denton Race for the Cure. FISCAL INFORMATION None RXATRTTC Letter of Request Respectfully submitted: Emerson Vorel Director City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: ID 14 -0441, Version: 1 Prepared by: Janie McLeod Community Events Coordinator City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl Exhibit I susanG Romen . . . . . . . NORTH rEXAS MRIMIM Janie McLeod, Community Event Director City of Denton Parks & Recreation Department 601 E. Hickory, Suite B Denton, TX 76205 Dear Janie, As discussed, the 2014 Komen North Texas Denton Race for the Cure will take place on Saturday, September 27th at C.H. Collins Athletic Complex (1500 Long Rd, Denton, TX 76207). Race Day registration opens at Gam and event activities will end at approximately 11am. Please consider this request for an exception to the City of Denton noise ordinances. The exception to the ordinance is for 75 decibels for the event noted below: ,Septemiber 27, 2014 — 6:00am-Ilam C.H. Collins Athletic Complex - 1500 Long Rd, Denton, TX 7621 RmBfflww�- 0: 972 378 4808, Option 3 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com l l EN ",I N Legislation Text File #: ID 14 -0446, Version: 1 Agenda Information Sheet DEPARTMENT: Finance CM/ ACM: Bryan Langley Date: August 19, 2014 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas amending the Fiscal Year 2013 -2014 Budget and Annual Program of Services of the City of Denton to allow for adjustments to the Electric Fund of six million six hundred and six thousand three hundred and seventy -four dollars ($6,606,374), and the Solid Waste Fund of three hundred ten thousand and six hundred dollars ($310,600); declaring a municipal purpose; providing a severability clause; providing an open meetings clause; and providing for an effective date. The Public Utilities Board recommends approval (5 -0). BACKGROUND City staff is proposing to amend the City's FY 2013 -14 Budget and Annual Program of Services as follows: • Increase the Electric Fund budget by $6,606,374 for Purchased Power due to energy costs being higher than anticipated in the budget. These costs will be offset by increased revenues from corresponding energy charges. • Increasing the Solid Waste Fund budget by $310,600 to transfer revenues from the sale of a 2006 Caterpillar Scraper to its motor pool replacement fund. The Solid Waste Fund received higher than anticipated revenue from the sale of this equipment, and due to accounting principles, these revenues must be recognized in the operating fund and then be transferred to the motor pool replacement fund. There is no net impact to the Solid Waste Fund since the increased revenues offset increased expenditures. RECOMMENDATION Staff recommends adoption of the ordinance PRIOR ACTION /REVIEW (Council, Boards, Commissions) On August 11, 2014 the Public Utilities Board gave staff approval to forward the budget amendments to the City Council for consideration. FISCAL INFORMATION City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File M ID 14 -0446, Version: 1 This ordinance will amend the FY 2013 -14 Budget and Annual Program of Services to allow for an adjustment to the Electric Fund of $6,606,374, increasing appropriations from $168,359,750 to $174,966,124 and increase appropriations for the Solid Waste Fund of $310,600 from $26,312,990 to $26,623,590. EXHIBITS 1. Ordinance Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance Prepared by: Antonio Puente, Jr. Assistant Director of Finance City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl Exhibit 1 ORDINANCE NO. 2014- AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING THE FISCAL YEAR 2013 -14 BUDGET AND ANNUAL PROGRAM OF SERVICES OF THE CITY OF DENTON TO ALLOW FOR ADJUSTMENTS TO THE ELECTRIC FUND OF SIX MILLION SIX HUNDRED AND SIX THOUSAND THREE HUNDRED AND SEVENTY -FOUR DOLLARS ($6,606,374), AND THE SOLID WASTE FUND OF THREE HUNDRED TEN THOUSAND AND SIX HUNDRED DOLLARS ($310,600); DECLARING A MUNICIPAL PURPOSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR AN OPEN MEETINGS CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, pursuant to Ordinance No. 2013 -227, the City Council of Denton, Texas, approved the Fiscal Year 2013 -2014 Budget and Annual Program of Services (the "Budget "); and WHEREAS, pursuant to Ordinance No. 2013 -337, the City Council of Denton, Texas, approved a budget amendment to the Fiscal Year 2013 -2014 Budget and Annual Program of Services; and WHEREAS, pursuant to Ordinance No. 2014 -091, the City Council of Denton, Texas, approved a budget amendment to the Fiscal Year 2013 -2014 Budget and Annual Program of Services; and WHEREAS, the City of Denton's Electric Fund needs to increase its expenditure appropriation in order to meet increased purchased power costs; and WHEREAS, the City of Denton's Solid Waste Fund needs to increase its expenditure appropriation in order to transfer revenues from the sale of a 2006 Caterpillar Scraper to its motor pool replacement fund; and WHEREAS, the City Council finds that this Budget Amendment serves an important municipal purpose as eligible items for expenditure in the current Budget, consistent with Section 102.010 of the Texas Local Government Code and other applicable laws; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings set forth in the above preamble to this Ordinance are true and correct and are hereby adopted. SECTION 2. The Fiscal Year 2013 -2014 Budget and Annual Program of Services is hereby amended by the City Council as follows: to allow for an adjustment to the Electric Fund of $6,606,374 increasing appropriations from $168,359,750 to $174,966,124; and increasing the Solid Waste Fund appropriation by $310,600 from $26,312,990 to $26,623,590. Exhibit 1 SECTION 3. This Ordinance shall be filed with the City Secretary, who is directed to attach a copy of this Ordinance to the Fiscal Year 2013 -2014 Budget and Annual Program of Services. SECTION 4. This Ordinance was approved by at least five members of the City Council as required by Section 8.08 of the City Charter. SECTION 5. If any section, subsection, paragraph, sentence, clause, phrase, or word in this Ordinance, or the application thereof to any person or under any 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 such invalidity. SECTION 6. It is officially found and determined that the meeting at which this Ordinance was passed was open to the public as required by law, and the public notice of the time, place and purpose of this meeting was given as required by law. 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 M. APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY 1"9P Page 2 CHRIS WATTS, MAYOR City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com 1 N71" N File #: ID 14 -0450, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: City Manager's Office CM/ ACM: Jon Fortune Date: August 19, 2014 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas approving a Third Amendment to the Meet and Confer Agreement between the City of Denton and the Denton Fire Fighters Association, IAFF Local 1291; and providing an effective date. BACKGROUND House bills 304 and 2892 granted certain municipalities the option to meet and confer with fire and /or police associations and became affective in September 2005. While the bills do not require cities to engage in a meet and confer process, it gives the legislative authority to voluntarily meet with labor associations and discuss issues of importance to both parties. Cities are not required to negotiate specific issues such as wages or other conditions for employment, but may do so if desired. In November 2005, the Denton Fire Fighters Association (DFFA) petitioned the City Council to act as the sole and exclusive bargaining agent for sworn, civil service employees of the Denton Fire Department. Following formal recognition in 2005, the City entered into a three -year Meet and Confer Agreement (Agreement) with the DFFA that became effective in October, 2006. Negotiation for this first Agreement allowed for honest and open communication between management and labor that resulted in an improved labor /management relationship; a defined market based pay philosophy; and improved hiring, promotion and disciplinary processes. The Agreement has provided for more flexibility outside of the statutory structure of current Civil Service Law. In June 2009, the DFFA and management met again to negotiate a second Agreement that became effective in October, 2009. The 2009 Agreement was originally scheduled to expire on September 30, 2012, but the parties agreed to the first amendment to extend the term through the end of this fiscal year (September 30, 2014). In February 2013, the DFFA and management agreed to the second amendment which updated Article 2 of the Base Agreement (2009) to address the process to fill the Assistant /Deputy Fire Marshal position. Anticipating the expiration of the first amendment, both the DFFA and management met on August 12, 2014 to discuss an additional one -year extension through September 2015. At the meeting, both DFFA and management tentatively agreed to the extension. The DFFA has presented the tentative extension to their membership which they ratified on August 11, 2014. City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: ID 14 -0450, Version: 1 The attached ordinance allows for the approval of the amendment to the current Meet and Confer Agreement extending it by one year through September 30, 2015 and includes updates to the articles that have time sensitive references. No terms have been changed other than to provide for the extension of the Agreement. RECOMMENDATION Staff recommends approval of the ordinance to extend the Agreement through September 30, 2015. PRIOR ACTION /REVIEW (Council, Boards, Commissions) September 22, 2009 - City Council Approval of 2009 Meet and Confer Agreement August 7, 2012 - City Council Approval of first amendment to the 2009 Meet and Confer Agreement February 16, 2013 - City Council Approval of the second amendment to the 2009 Meet and Confer Agreement FISCAL INFORMATION The impact of the proposed amendment has been included in the Proposed 2014 -15 Annual Program of Services. EXHIBITS 1. Ordinance 2. Signed Proposal and Tentative Agreement to Implement the Third Amendment. 3. 2009 Adopted Meet and Confer Agreement with prior amendments. Respectfully submitted: Jon Fortune Assistant City Manager City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl sAlegal \our documents \ordinances \14 \fire meet and confer 3rd amendment.dOe ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING A THIRD AMENDMENT TO THE MEET AND CONFER AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON FIRE FIGHTERS ASSOCIATION, IAFF LOCAL 1291; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton ( "City ") lawfully approved a Meet and Confer Agreement ( "Base Agreement ") between the City and the Denton Fire Fighters Association, IAFF Local 1291 ( "Association ") on September 22, 2009; and WHEREAS, under the terms of the Base Agreement, the Base Agreement may be amended by mutual written amendment; and WHEREAS, the City and the Association have mutually agreed in writing through a document entitled "Third Amendment to Meet and Confer Agreement" to amend and extend the Base Agreement for one additional Fiscal Year 2014 -2015; and WHEREAS, the City finds that is in the best interest of the citizenry to accept the Third Amendment to Meet and Confer Agreement; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The Third Amendment to the Meet and Confer Agreement is approved hereby and the City Manager, or his designee, is hereby authorized to execute a Third Amendment to the Meet and Confer Agreement between the City and the Denton Fire Fighters Association, IAFF Local 1291 in substantially the same form and content of the Third Amendment to the agreement attached hereto and made a part of this ordinance for all purposes. SECTION 2. This ordinance shall be effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2014. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY sAlegal \our documents \ordinances \14 \fire meet and confer 3rd amendment.dOc APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: �� THIRD AMENDMENT TO MEET AND CONFER AGREEMENT THIS THIRD AMENDMENT TO THE MEET AND CONFER AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON FIRE FIGHTERS ASSOCIATION, IAFF Local 1291 effective the 1 st day of October, 2009, ( "Base Agreement ") by and between The Denton Fire Fighters Association, IAFF Local 1291 and the City of Denton, Texas, a Texas Municipal Corporation, 215 East McKinney, Denton, Texas 76201, hereinafter referred to as "City" and the "Association" and the City and the Association collectively referred to as the "Parties." RECITALS Whereas the Parties entered a Meet and Confer Agreement effective October 1, 2009 referred to as the "Base Agreement" which continues in effect and continues to reflect the intent and desire of Parties; Whereas the Base Agreement was set to expire September 30, 2012, but the Parties Amended the Meet and Confer Agreement in their First Amendment effective August 7, 2012, amending Article 14 and Article 9 which continues the Base Agreement in effect and continues to reflect the intent and desire of the Parties; Whereas the Parties subsequently entered a Second Amendment effective February 16, 2013 amending Article 2 which continues the Base Agreement and continues to reflect the intent and desire of the Parties; Whereas the First Amendment will expire September 30, 2014, and the Parties desire to extend the Base Agreement and its amendments by amending Article 14 in the Base Agreement to provide for an additional one (1) year for Fiscal Year 2014 -2015; Whereas Article 14 of the Base Agreement provides for extension by written mutual agreement and Article 15, Section 1 of the Base Agreement provides for amendment, the Parties mutually intend to amend and hereby mutually agree to amend the Base Agreement as follows; TERMS of AGREEMENT SECTION 1. Amendment Continuing Contract. Article 14 TERM OF AGREEMENT of the Base Agreement is hereby amended to read as follows: ARTICLE 14 TERM OF AGREEMENT This Agreement shall have an effective date of October 1, 2009, and shall remain in full force and effect through September 30, 2015. The Parties hereby extend all the remaining sections, paragraphs, sentences, clauses, and phrases of the Base Agreement and Second Amendment and shall remain in full force and effect except those more specifically amended below. SECTION 2. Amendment To Section 3(a) and Section 4 of Article 9 To Extend Compensation Provisions. ARTICLE 9 Section 3(a) and Section 4 of the Base Agreement are hereby amended to read as follows: Section 3 (a) Compensation for the ranks of Fire Fighter, Fire Driver, Fire Captain, and Fire Battalion Chief shall be proposed on the basis of the following calculations: The recommended base pay scale shall continue to be calculated by the salary survey conducted each May, utilizing the average minimum and maximum base salary for each rank of the 12 comparator cities as specified in this contract, plus five percent (5 %). The recommendation will propose that the minimum and maximum base pay for each rank, will receive an increase (should an increase be required) to match the survey average plus five percent (5 %). The steps between the minimum and maximum steps will be recalculated to maintain equal separation between any new minimum and maximum steps. Section 4. Funding Obligations Depending upon the financial forecasts, the City may implement the compensation recommendations in section 3 between the first pay period of the fiscal year and the first pay period of April of each fiscal year. The City presently intends to continue this Agreement each fiscal year through its term, to pay all payments due, and to fully and promptly perform the obligations of the City under this Agreement. All obligations of the City shall be paid only out of current revenues or any other funds lawfully available for those obligations, including tax revenues reasonably anticipated at equal or higher total gross amounts as were collected in fiscal year 2013 -2014, and appropriated for such purpose by the City Council, in compliance with the Texas Constitution, Article XI, Sections 5 and 7. Following the adoption of the annual budget that may establish a pay increase, should the City Council find it fiscally necessary to reduce base pay for non -civil service City employees, or implement other cost saving measures such as mandatory furloughs or a reduction -in- force, the increase recommended under this Article may be reduced accordingly. 2 The foregoing instrument has been duly negotiated, reviewed and approved by each of the signatories indicated below: THE DENTON FIRE FIGHTERS ASSOCIATION, IAFF Local 1291 (Ratified by the DFFA Membership on of , 2014) PRESIDENT, DENTON FIREFIGHTERS ASSOCIATION By: SECRETARY, DENTON FIRE FIGHTERS ASSOCIATION CITY OF DENTON, TEXAS (Approved by Denton City Council on of 2014) BY: Dated: GEORGE C. CAMPBELL CITY MANAGER BY: Dated: JENNIFER WALTERS CITY SECRETARY BY: ROSS CHADWICK ACTING FIRE CHIEF APPROVED AS TO LEGAL FORM: BY: ANITA BURGESS CITY ATTORNEY 3 PROPOSAL and TENTATIVE AGREEMENT for CONSIDERATION on August 2014 THIRD AMENDMENT TO MEET AND CONFER AGREEMENT THIS THIRD AMENDMENT TO THE MEET AND CONFER AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON FIRE FIGHTERS ASSOCIATION, IAFF Local 1291 effective the 1st day of October, 2009, ( "Base Agreement ") by and between The Denton Fire Fighters Association, IAFF Local 1291 and the City of Denton, Texas, a Texas Municipal Corporation, 215 East McKinney, Denton, Texas 76201, hereinafter referred to as "City" and the "Association" and the City and the Association collectively referred to as the "Parties." RECITALS Whereas the Parties entered a Meet and Confer Agreement effective October 1, 2009 referred to as the "Base Agreement" which continues in effect and continues to reflect the intent and desire of Parties; Whereas the Base Agreement was set to expire September 30, 2012, but the Parties Amended the Meet and Confer Agreement in their First Amendment effective August 7, 2012, amending Article 14 and Article 9 which continues the Base Agreement in effect and continues to reflect the intent and desire of the Parties; Whereas the Parties subsequently entered a Second Amendment effective February 16, 2013 amending Article 2 which continues the Base Agreement and continues to reflect the intent and desire of the Parties; Whereas the First Amendment will expire September 30, 2014, and the Parties desire to extend the Base Agreement and its amendments by amending Article 14 in the Base Agreement to provide for an additional one (1) year for Fiscal Year 2014 -2015; Whereas Article 14 of the Base Agreement provides for extension by written mutual agreement and Article 15, Section 1 of the Base Agreement provides for amendment, the Parties mutually intend to amend and hereby mutually agree to amend the Base Agreement as follows; TERMS of AGREEMENT SECTION 1. Amendment Continuing Contract. Article 14 TERM OF AGREEMENT of the Base Agreement is hereby amended to read as follows: ARTICLE .14mTERM OF AGREEMENT This Agreement shall have an effective date of October 1, 2009, and shall remain in full force and effect through September 30, 2015. The Parties hereby extend all the remaining sections, paragraphs, sentences, clauses, and phrases of the Base Agreement and Second Amendment and shall remain in full force and effect except those more specifically amended below. SECTION 2. Amendment To. Section 3(a) and Section 4 of Article 9 To Extend Compensation Provisions. ARTICLE 9 Section 3(a) and Section 4 of the Base Agreement are hereby amended to read as follows: Section 3 (a) Compensation for the ranks of Fire Fighter, Fire Driver, Fire Captain, and Fire Battalion Chief shall be proposed on the basis of the following calculations: The recommended base pay scale shall continue to be calculated by the salary survey conducted each May, utilizing the average minimum and maximum base salary for each rank of the 12 comparator cities as specified in this contract, plus five percent (5 %). The recommendation will propose that the minimum and maximum base pay for each rank, will receive an increase (should an increase be required) to match the survey average plus five percent (5 %). The steps between the minimum and maximum steps will be recalculated to maintain equal separation between any new minimum and maximum steps. Section 4. Funding Obligations Depending upon the financial forecasts, the City may implement the compensation recommendations in section 3 between the first pay period of the fiscal year and the first pay period of April of each fiscal year. The City presently intends to continue this Agreement each fiscal year through its term, to pay all payments due, and to fully and promptly perform the obligations of the City under this Agreement. All obligations of the City shall be paid only out of current revenues or any other funds lawfully available for those obligations, including tax revenues reasonably anticipated at equal or higher total gross amounts as were collected in fiscal year 2013 -2014, and appropriated for such purpose by the City Council, in compliance with the Texas Constitution, Article XI, Sections 5 and 7. Following the adoption of the annual budget that may establish a pay increase, should the City Council find it fiscally necessary to reduce base pay for non -civil service City employees, or implement other cost saving measures such as mandatory furloughs or a reduction -in- force, the increase recommended under this Article may be reduced accordingly. 2 Date:. .., �/-�//-?....� y SAOur Drc nialtSXO dinuneaMGre mat A Mifff ®Srca LdW ORDINANCE NO. 2aX -2-60 AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING THE MEET AND CONFER AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON FIRE FIGHTERS ASSOCIATION; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager, or his designee, is hereby authorized to execute the Meet and Confer Agreement between the City and the Denton Fire Fighters Association in substantially the form of the agreement attached hereto and made a part of this ordinance for all purposes (the "Agreement "). SECTION 2 approval. This ordinance shall become effective immediately upon its passage and PASSED AND APPROVED this the ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPR ED AS VO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 22- day of 2009„ \ y D MARK A. $URROUGHS, MAYOR Meet and Confer Agreement Between The City of Denton and Denton Fire Fighters Association, IAFF Local 1291 Fiscal Years 2009 -2010; 2010 -2011 and 2011 -2012 TABLE OF CONTENTS Definitions— ...».»,...»...».... w.,»..»_..». »........... » ............... —.— ... » ».. ».,.............,....... .........,.... Article1— Recognition .. »....... ......... » » ». » ».................................. » „ ». », ».........» ........» ................ 2 Article 2 — Transition for Certain Civil Service and Appointed Positions ...... ................ ».,....... ».. ». 3 Article3 — Labor/Management Relations .... ........................... »... ... ».............. ........ ,....., 11 Article 4 — Hiring Process .............................................................. ... »,»......................... » » » »........... 12 Article5 — Promotions ,.....»......................» ,»...» ................. ..............................» »,.........»..17 Article6 — Nepotism ............................................. ............................... __ ......................... —.»,...... 20 Article7 — Safety and Health .......................»..........,»».. ........................ » » » ».,» ................. », » », »,. 21 Article8 — Discipline ................ ......................................... »»» ».......,...... » ...........,.. ». .........,» ».. 22 Article9 — Compensation ..................... ............. ».. ........» .... .....................-- ........ « . ,........... 23 Article10 — Pension ............................................................ ............................. ». .. », »................... ».. 25 Article 11— Deferred Compensation Plan ...................................................... ..... »...,..................... 26 Article 12 — Association Business Leave ............................................».»»,»»»».. ..................,.,.. »... ». ». 27 Article 13 — Contract Interpretation Dispute Resolution Procedure .............. .................». ».. »..,,...» 29 Article 14 — Term of Agreement .................................................................... ............................... 33 Article 15 — Savings Clause Preemption Provision and Complete Agreement Clause ................ 34 Exhibit A — Panel of Arbitrators ......... » »,. »,. »... » »..., » ............. ........................... . ...... ».» ........... 36 ExhibitB .... » » ...... ......... . »................ .......,.........» ....... », ....... » » ».... .... .. ..........., ».................. 37 ii DEFINITIONS 1. "Agreement" means this Meet and Confer Agreement entered between the City of Denton and Denton Fire Fighters Association, IAFF Local 1291. 2. "Association" means the Denton Fire Fighters Association, IAFF Local 1291, its elected leaders and its collective membership. 3. "City" means the City of Denton, its mayor, city council members, city manager, fire chief and those persons designated by the City of Denton to manage the city and its fire department. 4. The term "commission" means the Denton Fire Fighters' and Police Officers' Civil Service Commission. 5. The term "days" refers to calendar days unless otherwise specified. 6. The term "Department" or "Fire Department" means the Denton Fire Department. 7. The term "Department head" or "Fire Chief' means the Fire Chief of the Denton Fire Department, designee, interim, or an acting Chief of the Denton Fire Department. 8. The tern "director" means the director of the Denton Fire Fighters' and Police Officers' Civil Service Commission. 9. The term "Local Rule" means the Local Rules and Regulations of the Denton Fire Fighters' and Police Officers' Civil Service Commission. 10. The term "Firefighter" means a member of the Denton Fire Department who was appointed in substantial compliance with Chapter 143 of the Texas Local Government Code who is entitled to civil service status under section 143.005 of the Texas Local Government Code and excludes persons attaining civil service status under article 2. 11. "Parties" or "parties" means the City of Denton and the Denton Fire Fighters Association, IAFF Local 1291 and "Party" or "party" means either the City of Denton or the Denton Fire Fighters Association, IAFF Local 1291. ARTICLE 1 RECOGNITION The CITY OF DENTON recognizes the DENTON FIRE FIGHTERS ASSOCIATION, IAFF LOCAL NO.1291, as the sole and exclusive bargaining agent for the covered Firefighters described in the petition for recognition, excluding the head of the fire department and excluding the employees exempt under Subsection (b), in accordance with subchapter C of Chapter 142 of the Texas Local Government Code. 0a ARTICLE 2 TRANSITION FOR CERTAIN CIVIL SERVICE AND APPOINTED POSITIONS Section 1. Intent. In the Parties' prior agreement, effective October 1, 2006, (the "2006 -2009 Agreement ") the Parties agreed to reclassify certain non -civil service civilian positions in the Fire Prevention Division and Administration Division to civil service for certain civil service benefits and protocols under Chapter 143 of the Texas Local Government Code to create a more unified Department incorporating Operations, Administration and Fire Prevention. To further that transition and that goal, the Parties agree to reclassify certain existing civil service positions in the Fire Prevention Division and Administration Division. The Parties intend for any variation of civil service provisions by this Agreement to also apply to the reclassified positions affected by Article 2 in the 2006- 2009 Agreement and this article unless provided otherwise by the Agreement. Section 2. Employees Affected and Civil Service Status in 2006 -2009 Agreement and this Agreement. (A) The former non -civil service positions affected by Article 2 of the 2006 -2009 Agreement included the following positions: • Public Education Officer, • Fire Inspector, • Senior Fire Inspector, • Fire Protection Engineer Associate, • Assistant Fire Marshal, • Fire Marshal, • Fire Recruitment Management Analyst and • Emergency Management Program Manager. A Fire Department employee who served in one of these positions was not required to take a competitive examination to remain in the employee's position if the employee was appointed to that position before October 1, 2006. (B) At the time of the effective date of the 2006 -2009 Agreement, the former non -civil service employees affected by former article 2 automatically waived into and qualified for the provisions of civil service status under Chapter 143 concerning classification status, disciplinary action, appeals, protocols, sick leave, on duty injury leave, and other such provisions, with the exception of those provisions relating to promotions or transfers and except as otherwise provided in the 2006 -2009 Agreement. (C) The civil service positions affected by this article include the following: • Fire Inspector Specialist, • Fire Protection Engineer Associate, • Assistant Fire Marshal, • Fire Marshal, 3 • Fire Recruitment Management Analyst and • Emergency Management Program Manager. Section 3. New Fire Prevention Division Titles and Ranks. (A) Fire Inspector Specialist I. Pursuant to the terms of the 2006 -2009 Agreement, the Public Education Officer, Fire Inspector and Senior Fire Inspector were replaced with a Fire Inspector Specialist classification. The Fire Inspector Specialist shall be reclassified to a Fire Inspector Specialist I at the current Firefighter base pay and applicable step plus $300 assignment pay per month. The applicable step determination will be based on the time in rank of Fire Inspector Specialist and Fire Inspector Specialist I. Incumbents in the Fire Inspector Specialist classification will automatically be reclassified into the classification of Fire Inspector Specialist I on the effective date of this Agreement. (B) Fire Inspector Specialist II. A new supervisory Fire Prevention position shall be established with the classification of Fire Inspector Specialist II with a salary at the current Driver base pay and applicable step plus $400 assignment pay per month. (C) Fire Protection Engineer Associate. (1) Classification. Pursuant to the 2006 -2009 Agreement, the Fire Protection Engineer Associate was classified in place. This classification will continue but will be eliminated when vacated and replaced with the classification of Fire Protection Specialist. (2) Base Salary for Fire Protection Engineer Associate. The recommended base salary percentage increase for the Fire Protection Engineer Associate shall be calculated by taking the average percentage increase, excluding step increases, for contract year for the ranks of Fire Fighter, Fire Driver, Fire Captain, and Fire Battalion Chief. (3) Assignment Pay. The Fire Protection Engineer Associate shall receive $400 per month assignment pay. The replacement classification of Fire Protection Specialist shall receive $500 per month assignment pay. (D) Assistant Fire Marshal. (1) Classification. Pursuant to the 2006 -2009 Agreement, the Assistant Fire Marshal was classified in place. This classification will continue but will be eliminated when vacated and replaced with the classification of Deputy Fire Marshal. (2) Base Salary for Assistant Fire Marshal The recommended base salary percentage increase for Assistant Fire Marshal shall be calculated by taking the average percentage increase, excluding step increases, for the contract year for the ranks of Fire Fighter, Fire Driver, Fire Captain, and Fire Battalion Chief. 4 (3) Assignment Pay. The Assistant Fire Marshal shall receive $500 per month assignment pay. The replacement classification of Deputy Fire Marshal shall receive $600 per month assignment pay. (E) Future Job Descriptions for Fire Inspector Specialist I, Fire Inspector Specialist II, Fire Protection Specialist and Deputy Fire Marshal. The joint Labor/Management Committee will develop job descriptions including minimum and preferred qualifications for the positions of Fire Inspector Specialist I, Fire Inspector Specialist II, Fire Protection Specialist and Deputy Fire Marshal and make a recommendation to the Department head. The Department head will determine whether to adopt the recommendation and will determine minimum and preferred qualifications for this position. (F) Filling Fire Prevention Division Vacancies. (1) Vacancies in the Fire Prevention Division will be filled in a manner determined by the Department head and in accordance with this subsection of the article. This excludes the appointed positions in section 5 of the article. The process by which the vacancies are filled is not restricted by article 5, the promotions article in this Agreement, or restricted by Chapter 143 of the Texas Local Government Code. (2) Firefighters may voluntarily transfer to the Fire Prevention Division to fill vacancies according to the eligibility outlined in subsection 3 below provided: (a) he /she meets the requirements of the job description for the position he /she is applying for, and (b) he /she is recommended by the Fire Marshal and approved by the Department head. (3) Firefighters transferring under this section retain their pay grade and benefits and, in addition, receive any assignment pay for the applicable Fire Prevention Division position. Transfers to the Fire Prevention Division shall not be for promotional purposes under Civil Service rules. Therefore, Firefighters transferring into the Fire Prevention Division may only transfer to an equivalent rank as follows: Fire Inspector Specialist I = Fire Fighter Fire Inspector Specialist II = Driver Fire Protection Specialist = Captain Deputy Fire Marshal = Battalion Chief (4) Firefighters transferring to the Fire Prevention Division must complete the assignment for a minimum of two years. This assignment may be shortened or lengthened by mutual agreement of the Firefighter and the Fire Marshal and approved by the Department head. At the expiration of the two -year assignment, the Firefighter may transfer back to Operations. (5) An exception to the two year assignment shall be for promotions. A Firefighter assigned to the Fire Prevention Division shall be entitled to take an Operations 5 promotional examination if otherwise eligible. The Firefighter may promote out of the Fire Prevention Division back into the Operations Division. (6) If no qualified volunteers from the Operations Division apply for a Fire Prevention Division transfer position, the Department head will make an assignment to that position from the Operations Division. The assignment will not be for longer than two years. The assignment may be shortened by mutual agreement of the Firefighter, with the recommendation of the Fire Marshal and approval of the Department head. (7) No Probationary firefighters will be assigned to the Fire Prevention Division. (8) The Fire Marshal, with the approval of the Department head, may appoint a current member of the Fire Prevention Division to the vacant new position, provided he /she meets the requirements of the job description. Current members appointed in such a manner will enter the position at the applicable civil service rate for that rank and follow the steps in that classification. He /she will receive any applicable assignment pay for the position he /she fills. (9) A vacancy in the former Fire Prevention Division positions of Fire Protection Engineer Associate and Assistant Fire Marshal will not be filled. The position will be replaced with the corresponding new classification of either Fire Protection Specialist or Deputy Fire Marshal and the prior position eliminated. Section 4. Fire Recruitment Management Analyst. (A) Classification. Pursuant to the 2006 -2009 Agreement, the position of Fire Recruitment Management Analyst was classified in place. This classification will continue but will be eliminated when vacated and replaced with a Fire Recruitment Captain. Base pay for Fire Recruitment Captain at that point will be equivalent to Fire Captain. The joint Labor/Management Committee will develop and recommend a job description to the Department head including minimum and preferred qualifications for the new civil service position. The Department head will determine whether to adopt the recommendation and will determine minimum and preferred qualifications for this position. (B) Base Salary for Fire Recruitment Management Analyst. The base salary for Fire Recruitment Management Analyst shall be calculated to be equivalent to the rank of Fire Captain at the first step. (C) Assignment Pay. The Fire Recruitment Management Analyst shall receive $500 per month assignment pay. Z Section 5. Fire Marshal and Emergency Management Program Manager. (A) Fire Marshal and Emergency Management Program Manager By Appointment. The positions of Fire Marshal and Emergency Management Program Manager shall continue to be appointed by the Department head and shall not be filled by promotional examination. A person appointed under this section serves at the pleasure of the Department head. (B) Fire Marshal Classification. The Fire Marshal shall continue to be classified in place. (C) Emergency Management Program Manager. The Emergency Management Program Manager shall continue to be classified in place. (D) Base Pay Prior to a Vacancy Occurring. The base pay for Fire Marshal and Emergency Management Program Manager, prior to a vacancy occurring in each respective position, will be determined by the Department head based on market comparisons in accordance with City of Denton policy. (E) Upon the Vacancy in the Current Positions of Fire Marshal and Emergency Management Program Manager. (1) Determination of Job Descriptions and Base Pay. When a vacancy occurs in either of the current positions of Fire Marshal or Emergency Management Program Manager, the base pay and minimum and preferred qualifications for that position from the time of vacancy will be made by recommendation by the joint Labor/Management Committee to the Department head. The Department head will determine whether to adopt the recommendation and ultimately will determine minimum and preferred qualifications and base pay for that position. (2) Vacancy To Be Filled by Appointment by the Department Bead. Vacancies in the positions of Fire Marshal or Emergency Management Program Manager shall be filled by appointment by the Department head. Appointments for Fire Marshal or Emergency Management Program Manager will be made by the Department head from within the Department, following the procedure outlined below. If no suitable candidate from within the Department exists, the Department head may appoint a person from outside the Department Procedure. 1. Job Announcement for potential candidate(s) within the Department I Candidate(s) submit a letter of interest and resume to the Department head 3. Application review for minimum and preferred qualifications by the Department head 4. Department head's interview 7 5. Appointment from within the Department or proceed to external process if no suitable internal applicant 6. External Job Announcement 7. Candidate(s) submit an application and resume to Human Resources 8. Application review for minimum and preferred qualifications by the Department head 9. Department head's interview 10. Potential appointment from external candidates or repost externally (3) Review of Non - Selection by Internal Candidate. In the event that an internal candidate applies and proceeds through step 4, but is not selected and the Department head proceeds to the external process, that candidate may seek review of the non - selection. The internal candidate may seek review by providing a written statement to the Department head within ten (10) calendar days from the date of the notification of non - selection stating the basis for review. The review process shall be as follows: (a) The joint Labor/Management Committee shall review the Department head's decision and make a non - binding recommendation in writing to the Department head within five (5) business days from the date that the candidate seeks review. (b) The Department head shall review the recommendation by the joint Labor/Management Committee and determine whether or not to reconsider the decision within ten (10) calendar days from the date of the recommendation. (c) The internal candidate may seek review of the non - selection to the commission by submitting a request in writing to the director within five (5) business days from the date of determination by the Department head of sustaining the non - selection. The commission shall have ten (10) business days to conduct a hearing and render a decision sustaining or overruling the Department head's decision to seek an external candidate. The standard of review by the commission is whether the Department head's decision is arbitrary and capricious. The commission's decision shall be final and binding with no right of appeal to an arbitrator or district court. (d) Deadlines in this article may be extended by mutual agreement by the internal candidate seeking review and the Department head. (F) Internal Appointment. In the event that an internal Firefighter or newly classified employee under this article fills the vacancy, only subsections 143.014(g) and 143.014(h) of 143.014 of the Texas Local Government Code shall apply. 0 (G) External Appointment. In the event that an external candidate fills the vacancy, only subsection 143.014(h) of 143.014 of the Texas Local Government Code shall apply after a twelve (12) month probationary period applicable to an external appointment, except that the provision relating to being restored to the same classification or its equivalent shall not apply. Section 6. Transfer. (A) Restrictions. The reclassified employees under former article 2 in the 2006-2009 Agreement and under this article may not transfer out of their currently assigned Division into any other classified civil service position in another Division in the Department. Reclassified Prevention Division employees under former article 2 in the 2006 -2009 Agreement and under this article are eligible to promote within their currently assigned Division. (B) Effect of Transfer. Operations Division Firefighters who transfer to the Fire Prevention Division or Administration Division are eligible to take the Operations Division's promotional examinations, provided they meet the requirements for the promotional examination under Chapter 143 of the Texas Local Government Code and any pre - requisites for promotion as determined under article 5 of this Agreement. It is the intent of the Parties that, when transfer processes between Divisions are outlined by recommendation by the joint Labor/Management Committee and determined by the Department head, a Firefighter does not gain rank or lose rank by transferring between Divisions. Section 7. Commission's Role. The commission may adopt rules under this article providing for the efficient administration of this article. Section 8. Statutory Override. To the extent this article continues to reclassify former civilian positions of Public Education Officer, Fire Inspector, and Senior Fire Inspector; and current positions of Fire Inspector Specialist I, Fire Inspector Specialist II, Fire Protection Engineer Associate, Assistant Fire Marshal, Fire Marshal, Fire Recruitment Management Analyst and Emergency Management Program Manager to civil service positions this article overrides section 143.003(4) and section 143.003(4)(A). This article is the exclusive process and provision by which the former positions of Public Education Officer, Fire Inspector, and Senior Fire Inspector; and current positions of Fire Inspector Specialist I, Fire Inspector Specialist II, Fire Protection Engineer Associate, Assistant Fire Marshal, Fire Marshal, Fire Recruitment Management Analyst and Emergency Management Program Manager are afforded civil service status. Unless otherwise provided in this article, this article overrides sections 143.014, 143.015 to the extent limited in section 5 of this article, 143.026, 143.028, 143.029, 143.030, 143.032, 143.033, 143.034, 143.036 (except the definition of vacancy) and 143.085 of the Texas Local Government Code. The overrides E to Chapter 143 of the Texas Local Government Code also apply to this article and to the reclassified positions of Public Education Officer, Fire Inspector, Senior Fire Inspector, Fire Inspector Specialist I, Fire Inspector Specialist II, Fire Protection Engineer Associate, Assistant Fire Marshal, Fire Marshal, Fire Recruitment Management Analyst and Emergency Management Program. 10 ARTICLE 3 LABOR/MANAGEMENT RELATIONS Each Party shall designate three (3) representatives to serve on a joint Labor/Management Committee ( "Committee "). This Committee shall meet quarterly at agreeable times and places to discuss matters of mutual concern. Such discussion shall not be tantamount to, or an extension of, the bargaining process, but shall be for the purpose of encouraging productive relations between the parties and the improvement of the fire services to the community. A minimum of two (2) members from each party must be present for a meeting to be held. The Department head will make reasonable efforts to accommodate requests by Association members to attend if they are on duty. Both parties understand and agree that Committee meetings are not required on any issue, except where provided for in Articles 2, 4, 5 and 7 of this Agreement, and are not a condition nor limitation on the management rights to make and enforce policies, rules, regulation, or operational decisions. The work of the Committee shall be conducted on City time without loss of pay by Committee members; except that meetings which are scheduled at times when Association members who are not on duty, such members shall attend on their own time without compensation. 11 ARTICLE 4 HIRING PROCESS Section 1. Intent In adopting this article, the Parties agreed to implement a hiring system for beginning positions in the Department that provided for selection based upon the determination by an Oral Interview Board and the Chief s Interview. The parties believe a determination by the Oral Interview Board and Chief s Interview for beginning positions improved the selection process and provided applicants a fair opportunity to demonstrate skills and abilities that serve as additional good indicators that they would perform well in the Department. Section 2. Adoption and Publication of Rules Any Local Rules that may be adopted by the commission shall be in conformity with the provisions of this article. Section 3. Written Examination and Commission List (a) Establishment of Date of Written Examination in 2011 Until 2011, the commission shall give new examinations at the times the commission considers necessary to provide required staffing. Entrance examinations will be held on the second Saturday in January beginning in January 2011. The actual date of the examination may be rescheduled in the event of circumstances beyond the City's control including but not limited to extraordinary weather events or other emergencies. (b) Written Examination and Military Points The written examination under Chapter 143 of the Texas Local Government Code shall be administered and the minimum passing grade on the written examination is 70 percent. An additional five (5) points shall be added to the examination grade of an applicant who served a minimum of 180 active days in the United States armed forces, received an honorable discharge, and made a passing grade on the examination. In the event a tie should occur, the process to break a tie will follow the Department Hiring Guideline. A passing grade on the written examination may permit the applicant to proceed to the next step(s) in the hiring process. The grade on the written examination will not serve as the grade for ranking on the eligibility list; however, the written examination grade, plus any applicable military points, will determine the ranking for a Commission List from which applicants proceed through the remainder of the hiring process. (c) Commission List In this article "Commission List" shall mean the list of applicants who made a passing grade on the written examination ranked from highest to lowest including any applicable 12 military points and shall not mean the eligibility list from which an applicant may be appointed. When a vacancy occurs in a beginning position in the Fire Department, the Department head shall request in writing from the director the names of suitable persons from the Commission List outlined in subsection (a) above. The director shall certify and provide to the Department head all of the names of such applicants on the Commission List. From the Commission List of names, the Department head shall identify a number of applicants, based on the determination of the Department head related to the number of vacancies, with the highest ranking to proceed through the process. Section 4. Background Check and Physical Ability Test (a) Background Check After the Department head determines an applicant to be eligible to proceed through the process by the Department head, the applicant will proceed through the Background Check in accordance with the Department's Hiring Guidelines. If an applicant passes the Background Check, then the applicant shall proceed to the Physical Ability Test. If an applicant does not pass the Background Check, the applicant will be disqualified from any further consideration in the hiring process. (b) Physical Ability Test From the list of names of applicants who passed the background check, the Department head shall identify the fifteen (15) applicants with the highest ranking on the Commission List to proceed to the Physical Ability Test in accordance with the Department's Hiring Guidelines. If an applicant passes the Physical Ability Test, then the applicant will be considered to proceed to the Oral Interview Board. If an applicant does not pass the Physical Ability Test, the applicant will be disqualified from any further consideration in the hiring process. All applicants who have passed the Background Check and Physical Ability Test shall proceed to the next step in the process. If less than three (3) applicants pass the Background Check and Physical Ability Test, the Department head shall identify the nbxt fifteen (15) applicants with the highest ranking on the Commission List (or those remaining on the Commission List if less than fifteen (15)) to proceed to the Physical Ability Test in accordance with the Department's Hiring Guidelines. (c) Selection of Candidates To Proceed to Oral Interview Board From the list of names of applicants who passed the Physical Ability Test, those applicants shall proceed to the next step in the process. In the event those applicant names are exhausted after the completion of the Oral Interview Board and Chief s Interview, then the Department head shall proceed under section 4(b) of this article to identify the next fifteen (15) applicants with the highest ranking on the Commission List to proceed to the Physical Ability Test in accordance with the Department's Hiring Guidelines. 13 Section 5. Oral Interview Board (a) Oral Interview Board The joint Labor /Management Committee shall establish an Oral Interview Board made up of four (4) members with four (4) alternate members. Three (3) of those members and three (3) of the alternate members shall come from the Department. One (1) of those members and one (1) of the alternate members shall be a citizen member from the City of Denton chosen by the Department head. It is understood that all members and alternate members of the Oral Interview Board will receive appropriate training to conduct interviews. (b) Interview The Oral Interview Board will interview eligible applicants determined by the preceding steps in this. article. Each member of the Oral Interview Board will assign an applicant a score from zero (0) to one hundred (100) points. The average of those four (4) scores will be calculated and will be the final Oral Interview Board score for each eligible applicant. If an applicant obtains a final Oral Interview Board score of seventy (70) points or more, an applicant will proceed to the Chiefs Interview. If an applicant does not pass with a score of seventy (70) points or more, the applicant will be disqualified from any further consideration in the hiring process. Section 6. Chief's Interview The Fire Chief will interview eligible applicants determined by the preceding steps in this article. The Fire Chief shall invite the Deputy Fire Chief and/or one or more Battalion Chief(s) to attend the Fire Chiefs Interview for all eligible applicants. The Chief will assign an applicant a score from zero (0) to one hundred (100) points. Any input from the Deputy Fire Chief or Battalion Chief will be included in the Chief s score. This score will be the final Chiefs Interview score for each eligible applicant. If an applicant does not pass with a score of seventy (70) points or more, the applicant will be disqualified from any further consideration in this hiring process. Section 7. Eligibility List The overall score to be placed on the eligibility list for each eligible applicant shall be computed by taking the applicant's final Oral Interview Board score and multiply the score by .70 to the account for seventy percent (70 %) of the applicant's final overall score; and adding the applicant's final Chiefs Interview score and multiply that score by 14 .30 to account for thirty percent (30 %) of the applicant's final overall score (see below). (4 Oral Interview Board Scores divided by 4 = final Oral Interview Board Score) x 70% (final Chief s Interview score) x 30% applicant's final overall score When a vacancy occurs, the Department head shall appoint the eligible suitable applicant having the highest final overall score on the eligibility list unless the Department head has a valid reason for not appointing the person. Each hiring eligibility list remains in existence for one (1) year after the written examination unless exhausted. All applicants may be subject to a polygraph examination at the Department head's discretion. Section 8. Effect of an Eligibility List Currently In Existence and Eligibility List Created Under this Agreement A hiring eligibility list in existence at the time of the adoption of this Agreement shall continue in effect until January 11, 2011, unless exhausted. Any hiring eligibility list created under this article will take effect upon the expiration of any applicable pre- existing list. Section 9. Probationary period Unless already certified as both a firefighter by the Texas Commission on Fire Protection and a paramedic by the Texas Department of State Health Services, a person appointed to a beginning position in the Department must serve a probationary period of up to eighteen (18) months beginning on that person's date of employment as a Fire Fighter, or trainee. A person appointed to a beginning position in the Department who is certified as both a fire fighter and a paramedic shall serve a probationary period of twelve (12) months. Section 10. Disqualification In the event an applicant is disqualified at any point in the hiring process, the Department head shall clearly set forth in writing the good and sufficient reason why a person was disqualified. Section 11. Statutory Override This article supercedes the following sections of the Texas Local Government Code to the extent the article may be in conflict with any of these sections: section 143.025(a) to account for an Oral Interview Board and Chief s Interview only to be administered to certain applicants that meet the hiring process criteria under the rules implemented in accordance with this article and to establish the eligibility list based on the Oral Interview Board and Chief s Interview as outlined in this article; section 143.025(b) to base the 15 eligibility list on the Oral Interview Board and Chief s Interview final overall score as outlined in this article; sections 143.025(c), 143.025(d) and 143.025(e) to provide for the Oral Interview Board and Chiefs Interview to interview applicants outside the presence of other applicants and at different times; section 143.025(h) to extend the effective date of the eligibility list from examination date to examination date; section 143.025(1) to provide for an Oral Interview Board and Chiefs Interview in the grading process and for establishment of an eligibility list as outlined in this article; sections 143.026(a), 143.026(b), 143.026(c) and 143.026(d) to allow the creation of various lists in the hiring process as outlined in this article, to allow for appointment and disqualification by the Department head, to account for the Oral Interview Board and Chief s Interview final overall score as a basis for the applicant's selection, and to eliminate the requirement of filing reasons of a pass over with the commission; and section 143.027 regarding probationary period. This article fiuther preempts, to the extent of any conflict, all contrary state statutes, local ordinances, executive orders, civil service provisions, or rules adopted by the Department head or head of the City or by a division or agent of City, such as the commission. 16 ARTICLE 5 PROMOTIONS Section 1. Intent In adopting this article, the parties agreed to implement changes to the promotional process for the Department by establishing pre - requisites that qualify a candidate to take a promotional written examination. The parties believe that establishing pre - requisites for promotional written examinations will improve the promotional process and will provide promotional candidates a fair opportunity to meet pre - requisites that serve as additional good indicators that they will perform well in the positions to which they seek to be promoted. This article excludes the positions addressed in article 2. Section 2. Definitions (a) In this article "written examination" means the written examination provided for promotions under Chapter 143 of the Texas Local Government Code. (b) In this article, "pre- requisites" means the minimum qualifications and conditions required of candidates for eligibility to take a Chapter 143 written examination for promotion within the Department. Section 3. Role of Commission Any Local Rules that may be adopted by the commission shall be in conformity with the provisions of this article. Section 4. Minimum Qualifications (a) The Driver pre - requisites determined under the parties' prior agreement attached as Exhibit B will continue to apply. (b) For promotion to the ranks of Captain and Battalion Chief, within ninety (90) days of the execution of this Agreement, the joint Labor/ Management Committee appointed as provided in article 3 will recommend pre - requisites for taking promotional written examinations prior to the posting of the Position Opportunity Announcement publication each year. The Department head will determine whether to adopt the recommended pre - requisites. In the event the pre - requisites are adopted by the Department head, the pre - requisites will be effective twelve (12) months after their posting in the Position Opportunity Announcement publication. (c) In the event pre - requisites are not recommended by the expiration of the ninety (90) day time period, the Department head may extend the time period at his/her discretion or may proceed with the then existing qualifications. In this circumstance, the Department head may request a report from the joint 17 Labor/Management Committee outlining the pre - requisites developed at that point. Section 5. Evaluation The joint Labor/Management Committee will establish a system within the joint Labor/ Management Committee to evaluate the promotional process and the pre - requisites established. The joint Labor/Management Committee shall prepare a written evaluation for the Department head within sixty (60) days after the administration of each written examination. Section 6. Date of Written Examinations and Rescheduling (a) Battalion Chief Written examinations for the rank of Battalion Chief will be held on the second Tuesday of January after the effective date of the Agreement. (b) Captain Written examinations for the rank of Captain will be held on the second Tuesday of February after the effective date of the Agreement. (c) Driver Written examinations for the rank of Driver will be held on the first Tuesday of March after the effective date of the Agreement. (d) Rescheduling of Written Examinations The actual date of the examinations may be rescheduled after the examination dates in this section in the event of circumstances beyond the City's control including but not limited to extraordinary weather events or other emergencies. In the event of a rescheduling, no further notice of the examination is required other than the new time, place and date of the rescheduled examinations, notwithstanding section 143.029 of the Texas Local Government Code. Meeting the scheduled examination dates outlined or provided for in this section, or rescheduling those dates pursuant to this subsection, precludes any liability for back pay or retroactive seniority for that position or any lower position. Section 7. Exceptions to Minimum Promotion and Rank Differential Pay Should the difference between the maximum step for a rank and minimum step of the next higher rank fall below 3.0 %, then a Firefighter who is promoted or receives rank differential pay to that next higher rank shall be compensated at the second step pay. For a Firefighter being promoted in this manner, then that Firefighter shall continue to receive 18 the second step pay for four years from the promotion date before receiving another step pay in that rank. Section 8. Eligibility List When a vacancy occurs in a nonentry position that is not appointed by the Department head, the director, on request by the Department head, shall certify to the Department head the names of the eligibility list. This section of the article shall supercede Section 143.036(b) of the Local Government Code to the extent that Section requires the certification of persons on the eligibility list to be certified three (3) persons at a time. This section of the article is intended to omit the administrative process of providing three (3) names at a time and instead provide a process where all names of the persons on the eligibility list are certified and provided at once when filling a vacancy for a nonentry position in the Fire Department. Section 9. Statutory Override This article supercedes the following sections of the Texas Local Government Code: section 143.029 to override posting rules in the event an examination is rescheduled; sections 143.030(b) and (c) to alter pre - requisites for promotions; section 143.030(d), sections 143.032(a), 143.032(b), 143.032(c), and 143.032(d) to provide for pre - requisites for the promotional process as determined by the Department head to the extent any of those pre - requisites may be deemed to conflict with these sections; section 143.036(a) to provide for the promotional process in accordance with this article and to the extent any provisions of this article may be deemed to conflict with this section; and 143.036(h) for the promotional eligibility list to remain in existence until the date of the next promotional examination for that rank. This article further preempts, to the extent of any conflict, all contrary state statutes, local ordinances, executive orders, civil service provisions, or rules adopted by the Department head or head of the City or by a division or agent of the City, such as the commission. 19 ARTICLE 6 NEPOTISM Section 1. Purpose The Denton Fire Department through employment, promotion, or transfer of relatives, will not contribute to the creation of any inequity or impropriety among its members. The purpose of this procedure is to communicate a Department policy regarding employment and supervisory relationships among family members. Section 2. Definition and Scope of Application During the term of this Agreement, the parties agree that the definition of "relative" shall meet the same definition of "familial relationship" provided by current City Policy Reference Number 102.08 dated September 3, 2002, and agree this article applies to a Firefighter as defined in this Agreement or a position reclassified in Article 2. Section 3. Appointment of Relatives to City Employment Members of the Department assigned to positions that make appointments, conduct interviews, promote, etc. cannot participate and must disqualify themselves if a relative is a candidate. In addition, members shall notify the Fire Chief in writing to disclose the relationship or interest involved. Section 4. Immediate Supervisory Relationships Members shall not directly supervise a relative. Direct or immediate supervision includes participation in a hiring decision, promotional decision, disciplinary decision, or preparing or influencing a performance evaluation of a relative. In a Battalion, relatives shall not be assigned to the same shift. Temporary shift swaps or overtime assignments are permitted, provided there is no immediate supervisory relationship. At the discretion of the Incident Commander, the prohibition on the immediate supervisory relationship of relatives during emergency operations is put aside. Irrespective of the immediate supervisory relationship, members shall not participate in a decision involving the financial interest of a relative, including hiring, promotion, discipline and pay increases. In addition, members shall not attempt to influence others in a financial interest of a relative. Section 5. Changes or Amendments During Term of Agreement It is understood that during the term of this agreement, if either party requests in writing a meeting concerning changes or amendments to the definition of the term "relative," the parties shall meet within ten calendar days to discuss such changes or amendments. Changes made to section 2 are not subject to ratification by the Association or the City Council. 20 ARTICLE 7 SAFETY AND HEALTH It is the desire of the City and the Association to maintain the highest standards of safety and health in the Fire Department. The City and Association agree to use NFPA 1583, NFPA 1582 and the IAFF /IAFC Joint Wellness Fitness Initiative as a guideline for the implementation of policy regarding health and safety issues in the Department over time. The parties agree that the Wellness Committee will continue to work on implementing the requirements of rule 435.21 of the Texas Commission on Fire Protection. To that end, each Firefighter will undergo a physical during the term of this Agreement. Those Firefighters designated as priority according to NFPA guidelines shall undergo at least two physicals during the term of this Agreement. Physicals shall be conducted by an entity recommended by the Wellness Committee, approved by the joint Labor Management Committee, and approved by the Department head. In furtherance of the parties' desired goals, the parties will explore the feasibility of a position in the Department that would serve as a safety and wellness officer prior to the expiration of the Agreement. 21 ARTICLE 8 DISCIPLINE Section 1. Written Statement If the Department head suspends a Firefighter, a copy of the statement giving the reasons for the suspension shall immediately be delivered in person to the suspended Firefighter and filed with the director within 120 hours. This statement shall only be delivered to the commission if the Firefighter chooses to appeal to the commission under section 143.052(d). In instances where the Firefighter chooses to appeal to the commission, the written statement will be forwarded to the commission within 120 hours from the time the Firefighter notifies the director in writing of his/her choice to appeal to the commission. Section 2. Time to Investigate Charges In the original written statement and charges and in any disciplinary suspension hearing conducted under this Agreement or Chapter 143, the Department head shall have 180 days to investigate and take disciplinary action from the date the Department head discovers an act, provided that the Department head may not complain of or take disciplinary action for an act (not related to criminal activity) that occurred more than one year before the date of disciplinary action. Section 3. Statutory Override Section 1 of the article supercedes section 143.052(c) of the Texas Local Government Code requiring a statement to be forwarded to the commission within 120 hours of the suspension. Section 1 also supercedes section 143.052(e) of the Texas Local Government Code only in that, in instances where the Firefighter does not choose to appeal to the commission, the written statement will not be forwarded to the commission. Section 2 of the article shall supercede the first sentence of section 143.052(h) of the Texas Local Government Code. Nothing in this article affects the remainder of section 143.052(h) or affects section 143.056 of the Texas Local Government Code. 22 ARTICLE 9 COMPENSATION Section 1. Base Pay Philosophy It is the desire of the City to recognize that the employees of the City of Denton Fire Department perform their responsibilities at a level that is above the typical metroplex fire agency. As such, it is the desire of the City to maintain a pay philosophy that exceeds the average metroplex pay for fire fighters as reflected in Section 3(a). The parties recognize the financial limitations facing the City due to this challenging economic period. Sections 3(c) -(d) of this article reflect the parties' intent to address the current economic period and are not intended to serve as precedent in future agreements. Section 2. Comparator Cities Arlington, Carrollton, Dallas, Fort Worth, Frisco, Garland, Irving, Lewisville, McKinney, Mesquite, Plano and Richardson shall continue to be used as comparator cities for the salary survey to be conducted each year of this contract. The City and Association shall convene a Labor/Management Pay Subcommittee to perform a survey in May 2010 and May 2011 upon which consideration for the proposed base salary adjustments for the following fiscal years shall be calculated. Based on the survey information of the comparator cities, the average of base pay for minimums and maximums for each rank shall be calculated and proposed for approval as a part of the budget process. Proposed increases may be limited to the average base pay percentage increase for non -civil service City employees approved by the City Council in the annual budget. Section 3. Compensation Proposal Calculation (a) Compensation for the ranks of Fire Fighter, Fire Driver, Fire Captain, and Fire Battalion Chief shall be proposed on the basis of the following calculations: The recommended base pay scale shall continue to be calculated by the salary survey conducted May 2010 and 2011, utilizing the average minimum and maximum base salary for each rank of the 12 comparator cities as specified in this contract, plus five percent (5 %). The recommendation will propose that the minimum and maximum base pay for each rank, will receive an increase (should an increase be required) to match the survey average plus five percent (5 %). The steps between the minimum and maximum steps will be recalculated to maintain equal separation between any new minimum and maximum steps. (b) The salary subcommittee shall prepare a report to the City Manager to be forwarded to the City Council at the time the proposed budget is submitted to the City Council that will show the cost of implementing the pay increase as calculated above compared to the cost to pay Firefighters the same percentage increase as non -civil service employees. 23 (c) Increases recommended in subsection 3(a) may be limited to the average base pay increase budgeted for non -civil service City employees. Should the City Council approve a budget that does not include base pay increases for non -civil service employees, the ranks of Fire Fighter, Fire Driver, Fire Captain, and Fire Battalion Chief shall not receive any base pay increase regardless of the calculated amount necessary to reach minimum and maximum rates plus 5 %. (d) Should the City Council approve a budget that includes lump sum pay increases instead of an increase to base pay to non -civil service City employees, the ranks of Fire Fighter, Fire Driver, Fire Captain, and Fire Battalion Chief will receive a lump sum payment instead of an increase for non -civil service employees. Section 4. Funding Obligations Depending upon the financial forecasts, the City may implement the compensation recommendations in section 3 between the first pay period of the fiscal year and the first pay period of April of each fiscal year. The City presently intends to continue this Agreement each fiscal year through its term, to pay all payments due, and to fully and promptly perform the obligations of the City under this Agreement. All obligations of the City shall be paid only out of current revenues or any other funds lawfully available for those obligations, including tax revenues reasonably anticipated at equal or higher total gross amounts as were collected in fiscal year 2008 -2009, and appropriated for such purpose by the City Council, in compliance with the Texas Constitution, Article XI, Sections 5 and 7. Following the adoption of the annual budget that may establish a pay increase, should the City Council find it fiscally necessary to reduce base pay for non -civil service City employees, or implement other cost saving measures such as mandatory furloughs or a reduction -in -force, the increases recommended under this Article may be reduced accordingly. 24 ARTICLE 10 PENSION As of January 1, 2010 and each successive year of the Agreement, the City shall apply the same contribution level, including any increase or decrease, toward the Firemen's Retirement and Relief Fund to match the City's actual contribution rate to the Texas Municipal Retirement System for that calendar year. During the term of this Agreement, the City may commission a study by an actuarial firm to evaluate the Firemen's Retirement and Relief Fund and the Texas Municipal Retirement System when compared to each other. The City may proceed with the study once the Firemen's Retirement and Relief Fund completes its next actuarial study. 25 ARTICLE 11 DEFERRED COMPENSATION PLAN Section 1. Optional Retirement Program The City will continue to make available the IAFF Financial Corporation 457 Plan ( "IAFF Plan ") as one of the options that a civil service employee in the Department may elect. A civil service employee in the Department electing to participate in the IAFF Plan assumes full responsibility for tax or penalty provisions as applicable under federal, state or local law. 26 ARTICLE 12 ASSOCIATION BUSINESS LEAVE Section 1. Association Business Leave Authorized Association Representatives who are on duty shall be permitted to have paid time off, designated as Association Business Leave (ABL), to conduct Association business under the conditions specified in this article provided that the ABL does not impact the mission of Department including operations, staffing, training or other scheduled Department functions. Section 2. Permitted Uses of ABL ABL may be used for activities that directly support the mission of the Department or the Association, or are deemed mutually beneficial to both the Department and Association, but do not otherwise violate the specific terms of this article. It is specifically understood and agreed that no paid time off shall be utilized for political lobbying at the local, state, or national level. The Department head will make reasonable scheduling adjustments and accommodations pursuant to ABL requests to allow authorized Association Representative to participate on behalf of the Association to attend scheduled Meet and Confer negotiating sessions, sub - committee meetings, and joint Labor/Management Committee sessions between the Association and the City. The Association President or his/her designee may be granted reasonable time off pursuant to an ABL request during working hours to investigate and process grievances, to attend Civil Service, Arbitration, or Court Hearings and to represent Association employees in disciplinary action provided that the President or his/her designee shall request permission from his Battalion Chief. Whenever possible, notification is to be made prior to or at the beginning of a shift. The officers of the Association may be granted ABL for membership meetings of the Association that take place when such officers are scheduled to be on duty. This leave with pay shall be limited to one (1) meeting per month not to exceed two (2) hours per meeting. ABL may be granted up to two (2) Association representatives to attend the TSAFF or IAFF convention, TSAFF Leadership Conference. TSAFF Service Training Class, IAFF Affiliate Leadership Training Seminar, or the IAFF Human Relations Conference. The Association shall endeavor to conduct all necessary Association business during the non - working time to the greatest number of Firefighters required for such business to the greatest extent possible. 27 Section 3. Written Request Required All requests for ABL must be in writing and submitted at least three (3) days in advance to Fire Administration but requests should be made as soon as possible. To be considered timely, the request must be received in person, by fax, or by e-mail by noon of the day notice is due. Section 4. Approval of ABL Requests The Department head or the Department head's designee will review timely ABL requests to determine approval based on operations, staffing, training or other scheduled Department functions. 28 ARTICLE 13 CONTRACT INTERPRETATION DISPUTE RESOLUTION PROCEDURE Section 1. Scope of Procedure The City and Association recognize that from time to time disagreements between the Parties may arise as to the application or interpretation of this Agreement. The Parties therefore agree that the purpose of this dispute resolution procedure is to provide a just and equitable method for resolving disagreements between the Parties regarding the application or interpretation of the provisions of this Agreement. Matters involving the interpretation, application, or alleged violations of a specified provision of this Meet and Confer Agreement shall be subject to this dispute resolution procedure. Any matters for which the right of appeal is afforded by Subchapter D of Chapter 143 of the Texas Local Government Code are excepted from the scope of this article. Section 2. Application of Procedure If the Association has a dispute with the City regarding this Agreement, the Association should reduce the dispute to writing and deliver it to the City's designated representative, who shall be its Department head or designee. A Firefighter or newly classified employee under Article 2 in the Department may not file a request for contract dispute resolution directly with the City; all resolution requests must be approved and come from the Association Grievance Committee. Each dispute shall be submitted on a form similar to the one attached as an exhibit to this Agreement, and must include, at minimum, the following information: (1) a brief statement of the dispute and the facts or events on which it is based; (2) the sections(s) of the Agreement alleged to have been violated; (3) the remedy or adjustment sought; and (4) the bargaining unit member's signature or, if filed by the Association, the signature of the Association Grievance Committee chairman or Association President. Any claim or dispute by an employee or group of employees under this Agreement which includes a claim for pay or benefits for any past pay periods must be filed by the employee with the Association within thirty (30) days of the date when the employee knew or reasonably should have known of the claim. 29 Disputes by the Association, Firefighter, or a newly classified employee under Article 2 shall proceed along the following steps: Step 1. An aggrieved Firefighter or newly classified employee under Article 2 must initiate a dispute with the Association Grievance Committee within thirty (30) calendar days of the date upon which the Firefighter or newly classified employee knew of or should have known of the facts giving rise to the dispute. A copy of notice or receipt of the dispute shall be forwarded to the Department head by the Association Grievance Committee within (3) business days of the receipt of the dispute. The Association Grievance Committee shall within their sole discretion determine if a dispute exists. If the Association Grievance Committee determines that no dispute exists, it shall notify the Department head in writing that no further proceedings will be necessary. If the Association Grievance Committee determines that the dispute is valid, it shall within fifteen (15) business days after receipt of the dispute, proceed to Step 2 of the procedure. Step 2. Any dispute found to be valid by the Association Grievance Committee shall be submitted to the Department head within five (5) business days of the Step 1 decision. After receipt of the dispute, the Department head shall within thirty (30) days submit his response in writing to the Association Grievance Committee. The Department head may require by policy for submission of contract disputes within the Chain of command, but shall have a duty to determine the matter within thirty (30) days of its receipt from the Association. Step 3. If the dispute is not resolved in Step 2, the Association Grievance Committee may advance the dispute in writing to the City Manager or designee within ten (10) business days from receipt of the Step 2 decision by the Department head. The City Manager or designated representative shall review the matter and render a decision in writing to the Association Grievance Committee within ten (10) business days of the receipt of the dispute. The City Manager or designee may, at his or her discretion, conduct a conference to further explore the merits of the dispute and to explore resolution options. Step 4. If the dispute is not resolved in either Step 3, either Party shall have the right to seek mediation of the dispute by requesting same in writing within ten (10) business days. The mediation will proceed before either a mediator with the Federal Mediation and Conciliation Service or before a mutually agreed mediator. The mediation shall be held in available facilities of the City of Denton. Step 5. If the dispute is not resolved at Step 4, the Association shall have ten (10) business days from the date of mediation to determine whether it will pursue the dispute under this article through arbitration. Under this step, the Association must deliver a letter indicating its selection for arbitration to the Department head. 30 Section 3. Arbitration Option The Parties have agreed that all disputes under this Agreement, which concern the application and interpretation of this Agreement, shall be submitted to final and binding arbitration, and the Parties except from this Agreement disputes involving statutory application and interpretation for rights and claims not arising under sections 142 or 143 of the Texas Local Government Code. The terms of the Agreement, and any factual issues which are determinative in applying the Agreement, shall be the sole province of the designated arbitrator, and his or her decision shall be final. However, the City will only agree to arbitration on the condition that legal issues which are determinative in any contract dispute are subject to judicial review. This additional exception to the Parties' arbitration Agreement is a narrow one, as reflected by the bargaining history. This contract represents an agreement to submit disputes to arbitration within its scope, and otherwise preserves the existing jurisdiction of Texas Courts over any contract rights and claims not exclusively committed to arbitration. The Parties have agreed that questions of law, which involve either the interpretation and application of state statutes or the application of legal principles from Texas appellate court opinions (or the failure to properly apply such legal principles or opinions) to controversies under this article shall be submitted initially to arbitration, but that either party shall have a limited right of appeal from an arbitration award in the Courts solely for the purpose of reviewing disputed issues of law. No such appeal from arbitration shall include review of any factual determinations by the arbitrator, including credibility of witnesses or weight of the evidence. If an appeal from arbitration based on erroneous application of the law is not successful, the appealing Party shall bear all costs of such appeal. If a dispute is submitted to arbitration, within seven (7) calendar days, the Department head and/or City and the Association shall select an arbitrator by alternately striking names from the Parties' pre - determined panel of six (6) qualified neutral arbitrators. The Association shall strike the first name under this article with the first dispute brought under this article. Thereafter, the first strike shall alternate between the Parties. The panel list is attached as Exhibit "A" to this Agreement. Should any panel member subsequently refuse or be unable to continue to serve on the panel, the Parties may mutually agree to his replacement from a mutually accepted list of three arbitrators. In the event the parties cannot mutually agree to a replacement, the remaining members of the panel will continue to serve for the duration of the Agreement. The arbitration should be held at the earliest available date, but may be continued for good cause shown or upon mutual agreement. The hearing shall be held in available facilities of the City of Denton and shall be conducted informally, without strict evidentiary or procedural rules. The conduct of the hearing shall be governed by the standard rules of the American Arbitration Association. The arbitrator shall consider and decide only the issue(s) in the dispute statement or submitted in writing by agreement of the Parties. The hearing shall be concluded as 31 expeditiously as possible and the arbitrator's written decision shall be based on a preponderance of evidence within thirty (30) days after close of the hearing. Section 4. Decision Final and Binding If arbitration is selected, the Parties specifically agree that the arbitrator's authority shall be strictly limited to interpreting and applying the explicit provisions of this Agreement. The arbitrator shall not have authority to modify the Agreement or create additional provisions not included in the Agreement. The Parties agree that neither the City nor the Association shall have ex parte communications with the arbitrator concerning any matter involved in the dispute submitted to the arbitrator. Each Party shall be responsible for its own expenses in preparing for and representing itself at arbitration, but the fees of the arbitrator shall be borne equally by the Parties. The written decision of the arbitrator shall be final and binding on both Parties and may not be appealed by either Party, except for any decision procured by fraud or collusion, or which exceeds the arbitrator's jurisdiction or which is based on legal conclusions or interpretations which are clearly contract to existing law. Section 5. Mutual Extension All deadlines within this article may be extended by mutual agreement by the Parties. Section 6. Grievances of Non - Association Members Grievances of Non - Association members must follow the same procedure outlined by this article. However, should the grievance of a Non - Association member require that Association resources be used, the Non - Association member will be required to pay all expenses incurred while pursuing final disposition of their grievance. These shall include cost for payment of Arbitrator fees, counsel fees and any other fees directly related to the grievance. All disciplinary grievances shall follow procedure as outlined in chapter 143 of Local government Code. Notwithstanding the above any non - Association member may unilaterally utilize the appeal procedures for disciplinary actions as provided under such Chapter 143. 32 ARTICLE 14 TERM OF AGREEMENT This Agreement shall have an effective date of October 1, 2009, and shall remain in full force and effect through September 30, 2012, and may be mutually extended by both Parties. 33 ARTICLE 15 SAVINGS CLAUSE, PREEMPTION PROVISION, AND COMPLETE AGREEMENT CLAUSE Section 1. Savings Clause If any provision of this Agreement is rendered invalid by a court of competent jurisdiction, such invalidity shall not affect any other provision of this Agreement, which shall continue to be in full force and effect for the duration of the Agreement, and the Parties shall meet as soon as possible to agree on a substitute provision. However, if the Parties are unable to agree within thirty (30) days following commencement of the initial meeting, then the matter shall be postponed until Meet and Confer negotiations are resumed. This deadline may be extended by mutual agreement by the Parties. To this end, the provisions of this Agreement are severable. This Agreement may be amended by written mutual agreement. Section 2. Preemption Provision The provisions of this Agreement shall supercede the provisions of any statute, Executive Order, local ordinance, or rule, which are in conflict herewith, including for example and not by way of limitation, the contrary provisions of Chapter 143; Ordinances of the City of Denton, Texas; and Local Rules and Regulations of the Firefighter's Civil Service Commission for the City of Denton, Texas. This preemption provision is authorized by section 142.117 of the Texas Local Government Code, and the Parties have expressly agreed that each and every provision involving or creating such a conflict shall have the effect of superceding the statutory standard or result which would otherwise obtain, in the absence of this Agreement. This provision is of the essence to the bargain and Agreement, which has been reached. Section 3. Complete Agreement Clause The Parties agree that each has had full and unrestricted right and opportunity to make, advance and discuss all matters properly within the meet and confer process. This Agreement constitutes the full and complete Agreement of the Parties and there are no others, oral or written, except as specified in this Agreement. However, to the extent it may be shown to be necessary to go outside the four corners of the Agreement, the Negotiation History Document drafted by the Pay Subcommittee may be utilized to show the intent of the Parties. 34 SIGNATURE & EXECUTION PAGE THE FOREGOING INSTRUMENT AS BEEN DULY NEGOTIATED, REVIEWED, AND APPROVED BY EACH OF THE SIGNATORIES INDICATED BELOW: • _. _p4.jj.A Dated: _A)- APPROVED: APPROVED AS TO FORM: ROSS CHADWICK HN KNI+ /f FIRE CHIEF DEPUTY CITY ATTORNEY By: Dated: 'tom 4i7., bw l 30, ;F.0611 JAS S. BALLARD SECRETARY 35 Norman Bennett Otis King Francis Quinn Bill Detwiler Donald Goodman John Barnard EXHIBIT A PANEL OF ARBITRATORS 36 EXHIBIT B Eligibility to take the Denton Fire Department Promotional Examination for Fire Driver Classification 1. In order to be eligible to take the promotional examination for the Denton Fire Department Driver classification, a candidate must have accomplished the following: a) Serve three years in the Denton Fire Department classification of Fire Fighter. b) Successfully complete the Denton Fire Department Driver School at least once. The Driver School shall be conducted at least every two years. c) Hold current certification by the Texas Commission on Fire Protection as a Driver /Operator. d) Hold current certification by the Texas Department of State Health Services as a Paramedic. e) Successful completion of an annual Driver Skills Test. 2. The Denton Fire Department Driver Skills Test is a Pass/Fail check off sheet to help determine the operational competence of a promotional candidate. a) The Driver Skills Test remains in effect for twelve months from successful completion. b) Successful completion of the Denton Fire Department Driver School includes a Driver Skills Test. c) The Driver Skills Test may be administered by Station Captains or officers in the Training division. 37 sAlegallour documentslordinances112Wre meet and confer ordinance 2012 ord,doc ORDINANCE NO. 2012-157 AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING A FIRST AMENDMENT TO THE MEET AND CONFER AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON FIRE FIGHTERS ASSOCIATION, IAFF LOCAL 1291; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton ( "City ") lawfully approved a Meet and Confer Agreement ( "Base Agreement ") between the City and the Denton Fire Fighters Association, IAFF Local 1291 ( "Association ") on September 22, 2009; and WHEREAS, said Base Agreement has the effective dates of October 1, 2009, through September 30, 2012; and WHEREAS, under the terms of the Base Agreement, the Base Agreement may be amended by mutual written amendment; and WHEREAS, the City and the Association have mutually agreed in writing through a document entitled "First Amendment to Meet and Confer Agreement" to amend and extend the Base Agreement for Fiscal Years 2012 -2013 and 2013 -2014 with the option to terminate the Base Agreement by mutual agreement prior to commencement of Fiscal Year 2013 -2014; and WHEREAS, the City and the Association have mutually agreed in the First Amendment to Meet and Confer Agreement to amend Article 9, Section 3 regarding compensation calculations for Fire Fighter, Fire Driver, Fire Captain, and Fire Battalion Chief; and WHEREAS, the City and the Association have mutually agreed in the First Amendment to Meet and Confer Agreement to amend Article 9, Section 4 regarding funding obligations; and WHEREAS, the City finds that is in the best interest of the citizenry to accept the First Amendment to Meet and Confer Agreement; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The First Amendment to the Meet and Confer Agreement is approved hereby and the City Manager, or his designee, is hereby authorized to execute a First Amendment to the Meet and Confer Agreement between the City and the Denton Fire Fighters Association, IAFF Local 1291 in substantially the same form and content of the First Amendment to the agreement attached hereto and made a part of this ordinance for all purposes. SECTION 2. This ordinance shall be effective immediately upon its passage and approval. sAlegahour documentslordinancesUMiire meet and confer ordinance 2012 ord.doc PASSED AND APPROVED this the day of .................m_� 2012. ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: I It FIRST AMENDMENT TO MEET AND CONFER AGREEMENT THIS FIRST AMENDMENT TO THE MEET AND CONFER AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON FIRE FIGHTERS ASSOCIATION, IAFF Local 1291 effective the 1st day of October, 2009, ( "Base Agreement ") by and between The Denton Fire Fighters Association, IAFF Local 1291 and the City of Denton, Texas, a Texas Municipal Corporation, 215 East McKinney, Denton, Texas 76201, hereinafter referred to as "City" and the "Association" and the City and the Association collectively referred to as the "Parties." RECITALS SECTION 1. Whereas the Parties entered a Meet and Confer Agreement effective October 1, 2009 referred to as the "Base Agreement" which continues in effect and continues to reflect the intent and desire of Parties; SECTION 2. Whereas the Base Agreement will expire September 30, 2012, and the Parties desire to extend the Base Agreement by amending Article 14 in the Base Agreement to provide for an additional two (2) years for Fiscal Years 2012 -2013 and 2013 -2014 with the option to terminate the Base Agreement by mutual agreement prior to the commencement of Fiscal Year 2013 -2014; SECTION 3. Whereas the Parties intend to update Article 9 as part of their Amendment; SECTION 4. Whereas Article 14 of the Base Agreement provides for extension by written mutual agreement and Article 15, Section 1 of the Base Agreement provides for amendment, the Parties mutually intend to amend and hereby mutually agree to amend the Base Agreement as follows: TERMS of AGREEMENT SECTION 1. Amendment Continuing Contract. Article 14 TERM OF AGREEMENT of the Base Agreement is hereby amended to read as follows: ARTICLE 14 TERM OF AGREEMENT This Agreement shall have an effective date of October 1, 2009, and shall remain in full force and effect through September 30, 2014, The Parties hereby extend all the remaining sections, paragraphs, sentences, clauses, and phrases of the Base Agreement and shall remain in full force and effect except those more specifically amended below. However, this Agreement may be reviewed by the Parties and may be terminated by mutual agreement of the Parties as of September 30, 2013. If the Association or City intends to exercise the option to terminate by mutual agreement, it must notify the other Party in writing by May 31, 2013, of its request to terminate. SECTION 2. Amendment To Section 3(a) and Section 4 of Article 9 To Extend Compensation Provisions. ARTICLE 9 Section 3(a) and Section 4 of the Base Agreement are hereby amended to read as follows: Section 3 (a) Compensation for the ranks of Fire Fighter, Fire Driver, Fire Captain, and Fire Battalion Chief shall be proposed on the basis of the following calculations: The recommended base pay scale shall continue to be calculated by the salary survey conducted each May, utilizing the average minimum and maximum base salary for each rank of the 12 comparator cities as specified in this contract, plus five percent (5 %). The recommendation will propose that the minimum and maximum base pay for each rank, will receive an increase (should an increase be required) to match the survey average plus five percent (5 %). The steps between the minimum and maximum steps will be recalculated to maintain equal separation between any new minimum and maximum steps. Section 4. Funding Obligations Depending upon the financial forecasts, the City may implement the compensation recommendations in section 3 between the first pay period of the fiscal year and the first pay period of April of each fiscal year. The City presently intends to continue this Agreement each fiscal year through its term, to pay all payments due, and to fully and promptly perform the obligations of the City under this Agreement. All obligations of the City shall be paid only out of current revenues or any other funds lawfully available for those obligations, including tax revenues reasonably anticipated at equal or higher total gross amounts as were collected in fiscal year 2011 -2012, and appropriated for such purpose by the City Council, in compliance with the Texas Constitution, Article XI, Sections 5 and 7. Following the adoption of the annual budget that may establish a pay increase, should the City Council find it fiscally necessary to reduce base pay for non -civil service City employees, or implement other cost saving measures such as mandatory furloughs or a reduction -in- force, the increase recommended under this Article may be reduced accordingly. 4 The foregoing instrument has been duly negotiated, reviewed and approved by each of the signatories indicated below: THE DENTON FIRE FIGHTERS AS (Ratified by the DFFA Mernbershjp of 1111 �, 91 fl IO F�F Local 12 2012) SOCIATION ARY, DENTON FIREFIGHTERS ASSOCIATION CITY OF DENTON, TEXAS (Approved by Denton City Council on of 2012) BY: _ Dated: .�, lz 43RG r�A—Y--1, P EI I. CITY MANAGER 4 A BY: Dated: "I d AL�"l E� S `ITY SEC 2TARY r BY: ROSS CHADWICK FIRE CHIEF APPROVED AS TO LEGAL FORM: BY:"" ,4W1—'LA BURG f 3S M CITY ATTORNEY 3 Z:\0rdinnnces%13%Sewnd Amendment to Fire MC Contf3CLduc ORDINANCE NO, 2013 -015 AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING A SECOND AMENDMENT TO THE MEET AND CONFER AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON FIRE FIGHTERS ASSOCIATION, IAFF LOCAL 1291 AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on August 7, 2012, the City Council passed Ordinance No. 2012 -157, adopting and approving a First Amendment to the Meet and Confer Agreement Between the City of Denton and the Denton Fire Fighters Association, IAFF 1291; and WHEREAS, since the passage of Ordinance No. 2012 -157, the Fire Department has determined that this ordinance needs to be amended to replace the Assistant Fire Marshal position with the Deputy Fire Marshal position; set base salary, assignment pay and pay steps for the Deputy Fire Marshal position; and provide for pay steps for the position of Fire Recruitment management Analyst all effective February 16, 2013; and WHEREAS, the City and the Association have mutually agreed in writing through a document entitled "Second Amendment to Meet and Confer Agreement" to amend Article 2 of the Base Agreement as part of this Second Amendment to eliminate requiring a vacancy to occur in the position of Assistant Fire Marshal to trigger its elimination and replacement with the new position of Deputy Fire Marshal effective February 16, 2013; and WHEREAS, the parties intend to amend the Base Agreement to provide that the base salary for the new position of Deputy Fire Marshal shall be equal to the base salary of a Battalion Chief, shall receive assignment pay, and shall be eligible for step pay effective February 16, 2013; and WHEREAS, the parties agree that the salary of Fire Recruitment Management Analyst will continue to be at the Fire Captain rank but agree it will not be restricted to the first step only in the pay plan, but the current incumbent will be placed in Step 2 effective February 16, 2013, and will be allowed to proceed through the step pay plan equivalent to a the Fire Captain with the accumulation of * time in rank for the Fire Recruitment Management Analyst position commencing April 2006 for this position only; and WHEREAS, the City Council finds that is in the best interest of the citizenry to accept the Second Amendment to Meet and Confer Agreement; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The Second Amendment to the Meet and Confer Agreement is approved hereby and the City Manager, or his designee, is hereby authorized to execute a Second Amendment to the Meet and Confer Agreement between the City and the Denton Fire Fighters Association, IAFF Local 1291 to be effective February 16, 2013, in substantially the same form and content of the Second Amendment to the agreement attached hereto and made a part of this ordinance for all purposes. Page 1 Z: \0rd1nence3 \13\Second Amendment to Aire MC Contrect.doc SECTION 2. This ordinance shall be effective immediately upon its passage and approval. PASSED AND APPROVED this the f`? day of 2013. APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Page 2 MARK A;,._'PVMOUG I J, MAYOR SECOND AMENDMENT TO MEET AND CONFER AGREEMENT THIS SECOND AMENDMENT TO THE MEET AND CONFER AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON FIRE FIGHTERS ASSOCIATION, IAFF Local 1291 effective the 1st day of October, 2009, ( "Base Agreement ") by and between The Denton Fire Fighters Association, IAFF Local 1291 and the City of Denton, Texas, a Texas Municipal Corporation, 215 East McKinney, Denton, Texas 76201, hereinafter referred to as "City" and the "Association" and the City and the Association collectively referred to as the "Parties." RECITALS Whereas, the Parties entered a Meet and Confer Agreement effective October 1, 2009 referred to as the "Base Agreement" which currently remains in effect and continues to reflect the intent and desire of Parties; and Whereas, the Base Agreement was set to expire September 30, 2012, but the Parties Amended the Meet and Confer Agreement effective August 7, 2012, amending Article 14 and Article 9 which continues the Base Agreement in effect and continues to reflect the intent and desire of the Parties; and Whereas, Article 15, Section 1 of the Base Agreement provides for amendment; and Whereas, the Parties intend to amend Article 2 of the Base Agreement as part of this Second Amendment to eliminate requiring a vacancy to occur in the position of Assistant Fire Marshal to trigger its elimination and replacement with the new position of Deputy Fire Marshal; and Whereas, the Parties intend to amend the Base Agreement to provide that the base salary for the new position of Deputy Fire Marshal will be equal to the base salary of a Battalion Chief, and shall be equivalent in eligibility for step increases; and Whereas, the Parties agree that the salary of Fire Recruitment Management Analyst will continue to be at the Fire Captain rank but agree it will not be restricted to the first step only in the pay plan. The Parties further agree the current incumbent will be placed in Step 2 as of February 16, 2013, and will be allowed to proceed through the step pay plan equivalent to a the Fire Captain with the accumulation of time in rank for the incumbent commencing April 2006 for this position only; and Whereas, the Parties agree the amendment will become effective the first day of the pay period following approval of this agreement by the City Council on February 16, 2013; and Whereas, the Parties mutually intend to amend and hereby mutually agree to amend the Base Agreement as follows: TERMS of AGREEMENT SECTION 1. Amendment eliminating requirement that a vacancy occur to trigger the elimination of the position of Assistant Fire Marshal and create the position of Deputy Fire Marshal. Article 2 titled "TRANSITION FOR CERTAIN CIVIL SERVICE AND APPOINTED POSITIONS" of the Base Agreement is hereby amended in Section 3(D) to read as follows: Section 3. New Fire Prevention Division Titles and Ranks. (D) Assistant Fire Marshal Position Replaced by Deputy Fire Marshal Position. (1) Classification. Pursuant to the 2006 -2009 Agreement, the Assistant Fire Marshal was classified in place. This classification is now hereby eliminated and replaced with the classification of Deputy Fire Marshal. The Deputy Fire Marshal position will be filled by the Department head according to section 3 F(1) of Article 2. The Parties agree there is no entitlement to filling the position of Assistant Fire Marshal as it is now eliminated and that no violations exist under law or under the Base Agreement and none will be asserted. (2) Base Salary for Deputy Fire Marshal. The base salary for Deputy Fire Marshal shall be equivalent to the Battalion Chief s base salary and shall be equivalent in eligibility for step increases. (3) Assignment Pay. The Deputy Fire Marshal shall receive $600 per month assignment pay. SECTION 2. Amendment removing limitation on Fire Recruitment Management Analyst Step Plan. Article 2 titled "TRANSITION FOR CERTAIN CIVIL SERVICE AND APPOINTED POSITIONS" of the Base Agreement is hereby amended in Section 4(B) to read as follows: Section 4. Fire Recruitment Management Analyst. (B) Base Salary for Fire Recruitment Management Analyst. The base salary for Fire Recruitment Management Analyst shall be calculated to be equivalent to the rank of Fire Captain and shall commence at the first step and proceed through the pay steps. The current incumbent only shall be placed in the step plan at step 2 as of February 16, 2013, and is eligible to proceed through the step plan with the accumulation of time in rank for the incumbent commencing April 2006 for this position only. The foregoing instrument has been duly negotiated, reviewed and approved by each of the signatories indicated below: THE DENTON FIRE FIGHTERS ASSOCIATION I FF Local 1291 (Ratified by the DFFA Membership on i , V �, 2013) 0 ASSOCIATION SECRETARY, DENTON FIRE FIGHTERS ASSOCIATION BY: L IF � WA SLR " . I'Y SE -� TARY BY: ROSS CHADWICK FIRE CHIEF ;PPFOVED AS TO LEGAL FORM: BY: ANITA BURGESS CITY ATTORNEY Dated: * 5L City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com 1 N71" N File #: ID 14 -0453, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: City Manager's Office CM/ ACM: Jon Fortune Date: August 19, 2014 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas approving a Second Amendment to the Meet and Confer Agreement between the City of Denton and the Denton Police Officers Association; and providing an effective date. BACKGROUND House bills 304 and 2892 granted certain municipalities the option to meet and confer with fire and /or police associations and became affective in September 2005. While the bills do not require cities to engage in a meet and confer process, it gives the legislative authority to voluntarily meet with labor associations and discuss issues of importance to both parties. Cities are not required to negotiate specific issues such as wages or other conditions for employment, but may do so if desired. In November 2005, the Denton Police Officers Association (DPOA) petitioned the City Council to act as the sole and exclusive bargaining agent for sworn, civil service employees of the Denton Police Department. Following formal recognition in 2005, the City entered into a three -year Meet and Confer Agreement (Agreement) with the DPOA that became effective in October, 2006. Negotiation for this first Agreement allowed for honest and open communication between management and labor that resulted in an improved labor /management relationship; a defined market based pay philosophy; and improved hiring, promotion and disciplinary processes. The Agreement has provided for more flexibility outside of the statutory structure of current Civil Service Law. In June 2009, the DPOA and management met again to negotiate a second Agreement that became effective in October, 2009. The 2009 Agreement was originally scheduled to expire on September 30, 2012, but the parties agreed to the first amendment to extend the term through the end of this fiscal year (September 30, 2014). Anticipating the expiration of the first amendment, both the DPOA and management met on August 11, 2014 to discuss an additional one -year extension through September 2015. At the meeting, both DPOA and management tentatively agreed to the extension. The DPOA has presented the tentative extension to their membership and the outcome of their vote is expected by Monday, August, 18. Staff will provide the City Council the results of the final vote once it has been received. The attached ordinance allows for the approval of the amendment to the current Meet and Confer Agreement extending it by one year through September 30, 2015 and includes updates to the articles that have time City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: ID 14 -0453, Version: 1 sensitive references. No terms have been changed other than to provide for the extension of the Agreement. RECOMMENDATION Staff recommends approval of the ordinance to extend the Agreement through September 30, 2015. PRIOR ACTION /REVIEW (Council, Boards, Commissions) September 22, 2009 - City Council Approval of 2009 Meet and Confer Agreement. July 17, 2012 - City Council Approval of First Amendment to the 2009 Meet and Confer Agreement. FISCAL INFORMATION The impact of the proposed amendment has been included in the Proposed 2014 -15 Annual Program of Services. EXHIBITS 1. Ordinance 2. Signed Proposal and Tentative Agreement to Implement the Second Amendment 3. 2009 Adopted Meet and Confer Agreement with prior amendments. Respectfully submitted: Jon Fortune Assistant City Manager City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl sAlegal \our documents \ordinances \14 \police meet & confer 2nd amenament.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING A SECOND AMENDMENT TO THE MEET AND CONFER AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON POLICE OFFICERS ASSOCIATION AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton ( "City ") lawfully approved a Meet and Confer Agreement (`Base Agreement ") between the City and the Denton Police Officers Association ( "Association ") on September 22, 2009; and WHEREAS, under the terms of the Base Agreement, the Base Agreement may be amended by mutual written amendment; and WHEREAS, the City and the Association have mutually agreed in writing through a document entitled "Second Amendment to Meet and Confer Agreement" to amend and extend the Base Agreement for one additional Fiscal Year 2014 -2015; and WHEREAS, the City finds that is in the best interest of the citizenry to accept the Second Amendment to Meet and Confer Agreement; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The Second Amendment to the Meet and Confer Agreement is approved hereby and the City Manager, or his designee, is hereby authorized to execute a Second Amendment to the Meet and Confer Agreement between the City and the Denton Police Officers Association in substantially the same form and content of the Second Amendment to the agreement attached hereto and made a part of this ordinance for all purposes. SECTION 2. This ordinance shall be effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2014. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY s:Alegal \our documents \ordinances \l4 \police meet & confer 2nd amendment.doc APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY:, SECOND AMENDMENT TO MEET AND CONFER AGREEMENT THIS SECOND AMENDMENT TO THE MEET AND CONFER AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON POLICE OFFICERS ASSOCIATION effective the I st day of October, 2009, ( "Base Agreement ") by and between The Denton Police Officers Association ( "DPOA ") and the City of Denton, Texas, a Texas Municipal Corporation, 215 East McKinney, Denton, Texas 76201, hereinafter referred to as "City" and the DPOA and the City collectively referred to as the "Parties." RECITALS Whereas the Parties entered a Meet and Confer Agreement effective October 1, 2009 referred to as the "Base Agreement" which continues in effect and continues to reflect the intent and desire of Parties; Whereas the Base Agreement would have expired September 30, 2012, but the Parties amended the Meet and Confer Agreement in their First Amendment effective July 17, 2012, amending Article 12 and Article 9 which continues the Base Agreement in effect and continues to reflect the intent and desire of the Parties; Whereas the First Amendment will expire September 30, 2014, and the Parties desire to extend the Base Agreement by amending Articles 12 and update Articles 7 and 9 in the Base Agreement to provide for one (1) additional year for Fiscal Year 2014 -2015; Whereas Article 13 Section 1 of the Base Agreement provides for amendment by written mutual agreement and the Parties mutually intend to amend and hereby mutually agree to amend the Base Agreement as follows: TERMS of AGREEMENT SECTION 1. Amendment Continuing Contract. Article 12 TERM OF AGREEMENT, of the Base Agreement is hereby amended to read as follows: ARTICLE 12 TERM OF AGREEMENT This Agreement shall have an effective date of October 1, 2009, and shall remain in full force and effect through September 30, 2015. The Parties hereby extend all the remaining sections, paragraphs, sentences, clauses, and phrases of the Base Agreement and shall remain in full force and effect except those more specifically amended below. SECTION 2. Amendment To Article 7 Sections 3(a) and 4 To Extend Compensation Provisions. ARTICLE 7 Section 3(a) and Section 4 of the Base Agreement are hereby amended to read as follows: Section 3 (a) The compensation for Police Officer /Recruit, Sergeant, Lieutenant and Captain shall be proposed on the basis of the following calculations: The recommended monthly base pay scale shall be calculated by the salary survey conducted in May 2014, utilizing the average minimum base salary and the average maximum base salary for each rank of the twelve (12) comparator cities as specified in this contract, plus five percent (5 %). The recommendation will propose that the minimum and maximum base pay for each rank will receive an increase (should an increase be required) to match the survey average plus five percent (5 %). The steps between the minimum and maximum steps will be recalculated to maintain equal separation between any new minimum and maximum steps. Section 4. Funding Obligations Depending upon the financial forecasts, the City may implement the compensation recommendations in section 3 between the first pay period of October and the first pay period of April of each fiscal year. The City presently intends to continue this Agreement each fiscal year through its term, to pay all payments due, and to fully and promptly perform the obligations of the City under this Agreement. All obligations of the City shall be paid only out of current revenues or any other funds lawfully available for those obligations, including tax revenues reasonably anticipated at equal or higher total gross amounts as were collected in fiscal year 2013 -2014, and appropriate for such purpose by the City Council, in compliance with the Texas Constitution, Article XI, Sections 5 and 7. Following the adoption of the annual budget that may establish a pay increase, should the City Council find it fiscally necessary to reduce base pay for non -civil service City employees, or implement other cost saving measures such as mandatory furloughs or a reduction -in- force, the increase recommended under this Article shall be reduced. SECTION 3. Amendment To Section 3 of Article 9 Assignment Pay. ARTICLE 9 Section 3 of the Base Agreement is hereby amended to read as follows: Section 3. Investigative Services Bureau, Traffic Enforcement Unit, Administrative Services, Canine Officers, and Hostage Negotiators. Each Officer on a callout list approved by the Department head who is assigned to the Investigative Services Bureau, Traffic Enforcement Unit, Administrative Services, Canine Officers, and Hostage Negotiators shall continue to be granted pay for Fiscal Year 2014 -2015 at $100 per month. 2 The foregoing instrument has been duly negotiated, reviewed and approved by each of the signatories indicated below: THE DENTON POLICE OFFICERS ASSOCIATION (Ratified by the DPOA Membership on of , 2014) ME BE PRESIDENT, DENTON POLICE OFFICERS ASSOCIATION SECRETARY, DENTON POLICE OFFICERS ASSOCIATION CITY OF DENTON, TEXAS (Approved by Denton City Council on of 2014) BY: Dated: GEORGE C. CAMPBELL CITY MANAGER BY: Dated: JENNIFER WALTERS CITY SECRETARY BY: LEE HOWELL CHIEF OF POLICE APPROVED AS TO LEGAL FORM: BY: ANITA BURGESS CITY ATTORNEY 3 1 h 1 U' DI By W.11101 1 of !tWiNtj DI �Dlkl I ON THIS SECOND AMENDMENT TO THE MEET AND CONFER AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON POLICE OFFICERS ASSOCIATION effective the 1 st day of October, 2009, ( "Base Agreement ") by and between The Denton Police Officers Association ( "DPOA ") and the City of Denton, Texas, a Texas Municipal Corporation, 215 East McKinney, Denton, Texas 76201, hereinafter referred to as "City" and the DPOA and the City collectively referred to as the "Parties." RECITALS Whereas the Parties entered a Meet and Confer Agreement effective October 1, 2009 referred to as the "Base Agreement" which continues in effect and continues to reflect the intent and desire of Parties; Whereas the Base Agreement would have expired September 30, 2012, but the Parties amended the Meet and Confer Agreement in their First Amendment effective July 17, 2012, amending Article 12 and Article 9 which continues the Base Agreement in effect and continues to reflect the intent and desire of the Parties; Whereas the First Amendment will expire September 30, 2014, and the Parties desire to extend the Base Agreement by amending Articles 12 and update Articles 7 and 9 in the Base Agreement to provide for one (1) additional year for Fiscal Year 2014 -2015; Whereas Article 13 Section 1 of the Base Agreement provides for amendment by written mutual agreement and the Parties mutually intend to amend and hereby mutually agree to amend the Base Agreement as follows: TERMS of AGREEMENT Article 12 TERM OF AGREEMENT, of the Base Agreement is hereby amended to read as follows: ARTIC1,F1 12 TERM OF AQ14I 1EM1 ,..NT This Agreement shall have an effective date of October 1, 2009, and shall remain in full force and effect through September 30, 2015. The Parties hereby extend all the remaining sections, paragraphs, sentences, clauses, and phrases of the Base Agreement and shall remain in full force and effect except those more specifically amended below. SECTION 2. Amendment To Article 7 Sections 3(a) and 4 To Extend Compensation Provisions. ARTICLE 7 Section 3(a) and Section 4 of the Base Agreement are hereby amended to read as follows: Section 3 (a) The compensation for Police Officer /Recruit, Sergeant, Lieutenant and Captain shall be proposed on the basis of the following calculations: The recommended monthly base pay scale shall be calculated by the salary survey conducted in May 2014, utilizing the average minimum base salary and the average maximum base salary for each rank of the twelve (12) comparator cities as specified in this contract, plus five percent (5 %). The recommendation will propose that the minimum and maximum base pay for each rank will receive an increase (should an increase be required) to match the survey average plus five percent (5 %). The steps between the minimum and maximum steps will be recalculated to maintain equal separation between any new minimum and maximum steps. Section 4. Funding Obligations Depending upon the financial forecasts, the City may implement the compensation recommendations in section 3 between the first pay period of October and the first pay period of April of each fiscal year. The City presently intends to continue this Agreement each fiscal year through its term, to pay all payments due, and to fully and promptly perform the obligations of the City under this Agreement. All obligations of the City shall be paid only out of current revenues or any other funds lawfully available for those obligations, including tax revenues reasonably anticipated at equal or higher total gross amounts as were collected in fiscal year 2013 -2014, and appropriate for such purpose by the City Council, in compliance with the Texas Constitution, Article XI, Sections 5 and 7. Following the adoption of the annual budget that may establish a pay increase, should the City Council find it fiscally necessary to reduce base pay for non -civil service City employees, or implement other cost saving measures such as mandatory furloughs or a reduction -in- force, the increase recommended under this Article shall be reduced. SECTION 3. Amendment To Section 3 of Article 9 Assignment Pay. ARTICLE 9 Section 3 of the Base Agreement is hereby amended to read as follows: Section 3. Investigative Services Bureau, Traffic Enforcement Unit, Administrative Services, Canine Officers, and Hostage Negotiators. Each Officer on a callout list approved by the Department head who is assigned to the Investigative Services Bureau, Traffic Enforcement Unit, Administrative Services, 2 Canine Officers, and Hostage Negotiators shall continue to be granted pay for Fiscal Year 2014-2015 at $ 100 per month. Date: Jam, I. I IN CITY FOR THE ASSOCIATION S:%Our DxuoimuN0rd1nmca109\po1icc men & wnfa ugrmneoedm ORDINANCE NO. ZDO9 Z3/ AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING THE MEET AND CONFER AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON POLICE OFFICERS ASSOCIATION; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager, or his designee, is hereby authorized to execute the Meet and Confer Agreement between the City and the Denton Police Officers Association in substantially the form of the agreement attached hereto and made a part of this ordinance for all purposes (the "Agreement "). SECTION 2. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the 2�z��day of the ' 2009, MARK A.-BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY. APPI� VEL1 Aw IO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: r,� - Meet and Confer Agreement Between The City of Denton and Denton Police Officers Association Fiscal Years 2009 -2010; 2010 -2011 and 2011 -2012 TABLE OF CONTENTS Definitions...... .. ............................... , ........... -- .......................... ,......... „......... .,,,... ....... ...., .....1 Article 1— Authority and Recognition ................................. ..................... ... .. .., ,,,.........2 Article2 — Hiring ............................................................................................... ..............................3 ..............................6 Article3 — Promotion ......................................................................................... Article 4 — Appointment of Personnel .......:...................................................... .............................10 Article5 — Discipline ........................................................................................ .............................11 Article 6 — Change in Shift Assignment ........................................................... .............................12 Article7 — Compensation ................................................................................. .............................13 Article8 — Court Time and Call Back ............................................................. .............................15 Article 9 — Assignment Pay ............................................... — ............. .............. , ............ ......... ....,.,,16 Article 10 — Civil Service Commission ........... . .................... ............................ ......... .........17 Article 11 — Contract Interpretation Dispute Resolution Procedure ................. .............................18 Article12 —Term of Agreement .... ......... ............. ,......... „.........- .......... ........... ..,,....,.......22 Article 13 — Savings Clause and Preemption Provision..... .. - ...... «.......,,« . «..•.,.. _ . 23 Arbitrators .........25 Exhibit A — Panel of ............ ........ ......... ...................... .... ........ — ,........ ii 1. "Agreement" means the Meet and Confer Agreement entered between the Denton Police Officers Association and the City of Denton. 2. "Association" means the Denton Police Officers Association, its elected leaders and its collective membership. 3. "City" means the City of Denton, its mayor, city council members, city manager, police chief and those persons designated by the City of Denton to manage the city and its police department. 4. The term "commission" means the Denton Fire Fighters' and Police Officers' Civil Service Commission. 5. The term "days" refers to calendar days unless otherwise specified. 6. The term "Department" means the Denton Police Department. 7. The term "Department head" means the Chief of the Denton Police Department, designee, or an acting Chief of the Denton Police Department. 8. The term "director" means the director of the Denton Fire Fighters' and Police Officers' Civil Service Commission. 9. The term "Local Rule" means the Local Rules and Regulations of the Denton Fire Fighters' and Police Officers' Civil Service Commission. 10. The term "Officer" means a member of the Denton Police Department who was appointed in substantial compliance with Chapter 143 of the Texas Local Government Code who is entitled to civil service status under section 143.005 of the Texas Local Government Code. 11. "Parties" means the City of Denton and the Denton Police Officers Association. 1 ARTICLE 1 AUTHORITY AND RECOGNITION The City of Denton recognizes the Denton Police Officers Association as the sole and exclusive bargaining agent for the covered Police Department police officers described in the petition for recognition, excluding the head of the law enforcement agency and excluding the employees exempt under subsection (b) of section 142.05 of the Texas Local Government Code, in accordance with subchapter B of Chapter 142 of the Texas Local Government Code and the petition. It is intended to include all permanent paid employees of the Police Department who have been hired in substantial compliance with provisions of Chapter 143 of the Texas Local Goverrahent Code but does not include civilians or other employees. It is not intended to deny local control by the City except as provided by this Agreement under section 142.059 of the Texas Local Government Code. In consideration of this authority, the Denton Police Officers Association agrees to act impartially and without discrimination on behalf of all affected police officers, irrespective of their membership status in the Denton Police Officers Association. 2 ARTICLE 2 HIRING Section'1. Department List In this Article "Department List" shall mean the list of applicants who made a passing grade on the written examination ranked from highest to lowest including any applicable military points, and tiebreakers applied to a passing grade, and shall not mean the eligibility list from which an applicant may be appointed. Section 2. Application of Certifications a. From the Department List, the Department head or designee shall identify the persons with a score of 90 -105 and identify those persons as Group A. Within Group A, the Department head or designee shall identify the persons holding a Texas Peace Officer Certification in the following rank order highest to lower: Master Peace Officer Certificate, Advanced Peace Officer Certificate, Intermediate Peace Officer Certificate and Basic Peace Officer Certificate above those without a Texas Peace Officer Certification within Group A on the Department List. b. From the Department List, the Department head or designee shall identify the persons with a score of 80 -89 and identify those persons as Group B. Within Group B, the Department head or designee shall identify the persons with a Texas Peace Officer Certification and rank those persons ;according to the level of their Texas Peace Officer Certification in the following rank order highest to lowest: Master Peace Officer Certificate, Advanced Peace Officer Certificate, Intermediate Peace Officer Certificate and Basic Peace Officer Certificate above those without a Texas Peace Officer Certification within Group B on the Department List. c. From the Department List, the Department head or designee shall identify the persons with a score of 70 -79 and identify those persons as Group C. Within Group C, the Department head or designee shall identify the persons with a Texas Peace Officer Certification and rank those persons according to the level of their Texas Peace Officer Certification in the following rank order highest to lowest: Master Peace Officer Certificate, Advanced Peace Officer Certificate, Intermediate Peace Officer Certificate and Basic Peace Officer Certificate above those without a Texas Peace Officer Certification within Group C on the Department List. d. Once the Department head or designee completes the ranking according the certification under this section, the list will be referred to as the "certification list" and will be forwarded to the commission. The director shall certify the list, making it the "eligibility list," and shall provide to the municipality's Department head, or designee, the names of the persons on the eligibility list. Section 3. Selection for Beginning Positions a. From those persons holding a Texas Peace Officer Certification ranked within Group A, the Department head shall appoint the person highest on the eligibility list if that person has otherwise satisfied all of the requirements for eligibility for a beginning position in the Police Department unless passed over under section 143.026 of the Texas Local Government Code. The Department head or designee shall process in descending order the remainder of persons holding a Texas Peace Officer Certification for any additional beginning positions to be filled. b. Once the remainder of the persons holding a Texas Peace Officer Certification in Group A is exhausted, the remainder of the persons in Group A shall be processed if there are additional beginning positions to be filled. The remainder of persons in Group A that do not hold a Texas Peace Officer Certification will be processed in descending order based upon their rank on the eligibility list. c. If there are additional beginning positions to be filled after steps a and b are completed above, from those persons holding a Texas Peace Officer Certification ranked with Group B, the Department head shall appoint the person highest on the eligibility list if that person has otherwise satisfied all of the requirements for eligibility for a beginning position in the Police Department unless passed over under section 143.026 of the Texas Local Government Code. The Department head or designee shall process in descending order the remainder of persons holding a Texas Peace Officer Certification for any additional beginning positions to be filled. d. Once the remainder of the persons holding a Texas Peace Officer Certification in Group B is exhausted, the remainder of the persons in Group B shall be processed if there are additional beginning positions to be filled. The remainder of persons in Group B that do not hold a Texas Peace Officer Certification will be processed in descending order based upon their rank on the eligibility list. e. If there are additional beginning positions to be filled after steps c and d are completed above, from those persons holding a Texas Peace Officer Certification ranked within Group C, the Department head shall appoint the person highest on the list if that person has otherwise satisfied all of the requirements for eligibility for a beginning position in the Police Department unless passed over under section 143.026 of the Texas Local Government Code. The Department head or designee shall process in descending order the remainder of persons holding a Texas Peace Officer Certification for any additional beginning positions to be filled. f. Once the remainder of the persons holding a Texas Peace Officer Certification in Group C is exhausted, the remainder of the persons in Group C shall be processed if there are additional beginning positions to be filled. The remainder of persons in Group C that do not hold a Texas Peace Officer Certification will be processed in descending order based upon their rank on the eligibility list. Section 4. Commission Rules and Statutory Override a. The commission shall adopt Local Rules in accordance with this article. b. Sections 1, 2 and 3 of this article shall supercede section 143.025 of the Texas Local Government Code to allow for the creation of the eligibility list to be based upon Texas Peace Officer Certifications after passing the written examination in accordance with this article, and 4 section 143.026 to provide for appointment and notification of a pass -over by the Department head using the process outlined in Sections 1, 2 and 3 of this article. Section 5. Probationary Period A person appointed to a beginning position in the Police Department must serve a probationary period of 18 months beginning on that person's date of employment as a police officer, or academy trainee. This section of the article shall supercede Sections 143.027(a) and 143.027(b) of the Local Government Code. 5 ARTICLE 3 PROMOTION Section 1. Promotions to Sergeant Rank An Officer is not eligible for promotion to Sergeant rank unless the Officer has served in the Department in the next lower rank for at least three years immediately before the examination date. This section supercedes section 143.031 of the Texas Local Government Code to increase the requisite time of service to a three year pre - requisite in the next lower rank before taking the Sergeant promotional examination. Section 2. Promotions to Lieutenant Rank a. Intent. In adopting this article, the Parties agree to implement a promotional system for Lieutenant rank using a Records Review in addition to the written examination. The Parties believe a Records Review added to the selection process for the Lieutenant rank will improve the selection process and provide promotional candidates a fair opportunity to display skills and abilities that serve as additional good indicators that they will perform well in the position of Lieutenant. b. Adoption and Publication of Rules. The commission shall adopt Local Rules in accordance with this article. C. Records Review. A maximum of twenty points of a promotional candidate's score will be based on the Records Review of a candidate's Records Evaluation Book. Prior to the administration of the written examination, the Records Review will be scored by evaluators selected by the promotional candidates. At a meeting prior to the Records Review, the candidates will be required to meet for the purpose of selecting evaluators consisting of 1 Captain and 2 Lieutenants. The names of the potential evaluators from the Department will be provided to the candidates based on the evaluators' willingness to participate and no scheduling conflicts. The evaluators will be selected by the candidates by a simple majority vote. In the event of a tie, the evaluator with the most seniority in rank within the Department will be selected. The evaluators will score the Records Review as outlined below. The candidates will receive a copy of their respective score sheets prior to the administration of the written examination. 1. Formal Education Q points possible) A maximum of 3 points can be earned in this section. Enrollment and/or course work in a degree program will not be credited in this section. Points are not cumulative and multiple degrees will not affect the score. Only the highest degree earned will be credited. All education must be verified. The degree shall be from an accredited learning institution of higher education recognized by the State Board of Education in the State in which the college resides and accredited by the Southern Association of Colleges and Schools or a similar regional association recognized by the United States Department of Education. 3 I point: Associates Degree OR 60 semester OR 90 quarter hours, or 2 points: Bachelor's Degree, or 3 points: Graduate Degree 2. Certifications (2 points possible) A maximum of 2 points can be earned in this section. Points are not cumulative and multiple certifications will not affect the score. 1 point: Advanced TCLEOSE Peace Officer Certificate, or 2 points: Master TCLEOSE Peace Officer Certificate 3. Evaluations/Training (9 points Dossiblel A maximum of 9 points can be eam..ed in this section, 6 points based on a review of the candidate's past three years' performance evaluations (2 points per year) and 3 points based on the candidate's training. If a performance evaluation does not exist for one of those years, the candidate will receive the 2 points for that year. The evaluators will evaluate whether a candidate's performance evaluations and listed training demonstrate an ongoing commitment to improvement of self and, in turn, the Department. 4. Discipline (6 points possible) Each candidate will start with 6 points, and the following points may then be deducted: 1, point for each Written Reprimand over the last 3 years designated from the listed date of examination, and 4 points for each Suspension over the last 3 years designated from the listed date of examination, and 6 points for each involuntary Demotion over the last 3 years designated form the listed date of examination. A score that calculates to less than zero will be counted as "zero." d. Written Examination. A maximum of eighty points of a promotional candidate's score will be based on the multiple choice score of the written examination. e. Selection for the Lieutenant Rank. The promotional candidate's multiple choice score will be the candidate's raw score. All candidates who receive a raw score of at least 56 points will be considered to have passed the written examination. Upon passing the written examination, the candidate's raw score, plus Records Review score, plus any seniority points will constitute the candidate's total score and candidates will be ranked on the eligibility list and corresponding certified list according to the candidate's total score. The candidate is entitled to receive one point for each year of continuous service as a classified police officer in the Department, with a maximum of 10 points. The Department head shall appoint the eligible promotional candidate having the highest grade on the eligibility list unless the ' Department head has a valid reason for not Appointing the person. A vacancy shall be filled within 60 days, if an eligibility list is in existence, or 90 days, if an eligibility list does not exist, after the date the vacancy occurs. 7 f. Military Duty. The commission may adopt rules providing for the efficient administration of tests for promotional candidates for Lieutenant rank who are members of the armed forces serving on active military duty as provided by section 143.032(b)(1)(2) of the Texas Local Government Code. g. Appeal or Grievance. A promotional candidate may appeal the multiple choice portion of the written examination under section 143.034 of the Texas Local Government Code but may not appeal or dispute the Records Review component of the promotional process before an administrative or judicial body. Likewise no grievance under this Agreement may be filed concerning the Records Review. The invalidation of any question or component of the written examination shall not invalidate the remainder of the promotional process. h. Statutory Override. Sections 2(a) -(g) of the article supercede the following sections of the Texas Local Government Code: section 143.032(a) to provide for the scoring of the Records Review created under this article, section 143.032(c) to allow for the Records Review process and allow for clarifying questions to be asked in the Records Review process, section 143.032(f) to expand the preparation and composition allowances to include the Records Review and to provide for more time for scoring, section 143.032(g) to allow the Department head's participation in preparing the Records Review of the promotional process, section 143.033(a) to provide for scoring of the Records Review outside the presence of the promotional candidates, section 143.033(c) to provide for the creation of the eligibility list based on both multiple choice and Records Review and for the potential score to be based on less than 100 points in the event a question is invalidated, section 143.033(d) to provide for more time to post the grades of the eligibility list, and section 143.034(a) to limit appeal of the Records Review component of the promotional process. Section 3. Eligibility List Forwarded at One Time for Nonentry Positions a. Intent. This section of the article is intended to omit the administrative process of Oro�iding three names at a time and instead provide a process where all names of the persons on the eligibility list are certified and provided at once when filling a vacancy for a nonentry position in the Department. b. Process. When a vacancy occurs in a nonentry position that is not appointed by the Department head, the director, on request by the Department head or designee, shall certify to the Department head the names of the eligibility list. C. Statutory Override. Sections 3(a) -(c) of the article supercede section 143.036 of the Texas Local Government Code to allow for the entire eligibility list to be forwarded at once. Section 4. Review by Labor /Management Committee Within 60 days from the date of the certification of the eligibility list, the Labor Management Committee'will review the score sheets and Records Evaluation Books submitted as part of the Records Review process. Each Party shall designate three (3) representatives to serve on the joint Labor/Management Committee. A minimum of two (2) members from each Party must be present for a meeting to be held. The Labor/Management Committee will review and report their findings to the Department head. 9 ARTICLE 4 APPOINTMENT OF PERSONNEL All positions above Lieutenant may be filled by appointment by the Department head pursuant to the process provided for in Section 143.014 of the Texas Local Government Code. This article supersedes section 143.014(b) and section 143.014(c) of the Texas Local Government Code. 10 ARTICLE 5 DISCIPLINE Section 1. Limitations on Acts Not Related to Criminal Activity and Time To Investigate Charges In the original written statement and charges and in any disciplinary hearing conducted under this Agreement or Chapter 143, the Department Head has 240 days from the date the act (not related to criminal activity) occurred to discover the act. The Department Head shall have 180 days from the date of discovery, as set forth in the preceding sentence, to investigate and take disciplinary action for the act (not related to criminal activity). This section shall supercede the first sentence of section 143.052(h) of the Texas Local Government Code. Nothing in these sections affects the remainder of section 143.052(h) or affects section 143.056 of the Texas Local Government Code. Section 2. Alternative Discipline Officers suspended up to a maximum of five (5) working days, at the Department Head's discretion, may forfeit either accumulated vacation, compensatory or sick time equal to the suspension to serve the suspension with no loss of paid salary. The officer shall have ten (10) calendar days from receipt of notice of the suspension to decide whether or not he or she wishes to forfeit accumulated leave or exercise his or her appeal rights pursuant to Chapter 143 Local Government Code. No appeal to the Commission or to arbitration may be instituted on suspensions where the officer has forfeited accumulated vacation, compensatory or sick time pursuant to the terms of this section. The forfeited vacation, compensatory, or sick time will not constitute hours worked. This section supercedes section 143.052 and section 143.053 of the Texas Local Government Code to the extent either of those sections do not allow for the process outlined in this section. Section 3. Written Statement If the Department head suspends an Officer, a copy of the statement giving the reasons for the suspension shall be delivered in person by the Department head, or his/her designee, to the suspended Officer. The Department head will file the written statement with the commission director within 120 hours after the hour of suspension which will deem the statement to be filed for purposes of section 143.052. Unless the Officer appeals the suspension to the commission, the Parties agree the director will not forward the written statement to the commission. This section of the article shall supercede section 143.052(c) of the Texas Local Government Code in that filing with the director will satisfy 143.052(c). This section also shall supercede 143.052(c) requiring delivery of the statement specifically by the Department head to the officer. This section sup! rcedes section 143.052(e) of the Texas Local Government Code in that, in instances where the Officer does not choose to appeal to the commission, the written statement will only be filed with the director and not forwarded to the commission. ARTICLE 6 CHANGE IN SHIFT ASSIGNMENT The City reserves the exclusive right to determine procedures, timing and standards for all employee transfers and reassignments; provided, however, Officers shall receive at least 14 calendar days advance notice of transfer or reassignment that result in working different hours of a shift schedule. An Officer may voluntarily waive the requirement to an advance notice. In the event of an emergency the Department head or designee may require an Officer to work at any given time without the requirement of notice given to an Officer. An emergency is an unexpected happening; or event or an unforeseen situation or crisis that calls for immediate action and requires the Department head to order a Officer to work a shift other than the Officer's normal schieduled shift assignment. 12 ARTICLE 7 COMPENSATION Section 1. Base Pay Philosophy It is the desire of the City to recognize that the employees of the City of Denton Police Department perform their responsibilities at a level that is above the typical metroplex Police agency. As such, it is the desire of the City to maintain a pay philosophy that exceeds the average metroplex pay for Police officers while at the same time recognizing the financial limitations facing the City due to this challenging economic period. Section 2. Comparator Cities Arlington, Carrollton, Dallas, Fort Worth, Frisco, Garland, Irving, Lewisville, McKinney, Mesquite, Plano and Richardson shall continue to be used as comparator cities for the salary survey to be conducted each year of this contract. The City and Association shall convene a Labor /Management Pay Subcommittee to perform a survey in May 2010and May 2011 upon which consideration for the proposed base salary adjustments for the following fiscal years shall be calculated. Based on the survey information of the comparator cities, the average of base pay for minimums and maximums for each rank shall be calculated and proposed for approval as a part of the budget process. Proposed increases may be limited to the average base pay percentage increase for non -civil service City employees approved by the City Council in the annual budget. Section 3. Compensation Proposal Calculation (a) The compensation for Police Officer/Recruit, Sergeant, Lieutenant and Captain shall be proposed on the basis of the following calculations: The recommended monthly base pay scale shall be calculated by the salary survey conducted in May 2010 and 2011, utilizing the average minimum base salary and the average maximum base salary for each rank of the twelve (12) comparator cities as specified in this contract, plus five percent (5 %). The recommendation will propose that the minimum and maximum base pay for each rank will receive an increase (should an increase be required) to match the survey average plus five percent (5 %). The steps between the minimum and maximum steps will be recalculated to maintain equal separation between any new minimum and maximum steps. (b) Increases recommended in subsection 3(a) shall be equivalent to the average base pay increase budgeted for non -civil service City employees. Should the City Council approve a budget that does not include base pay increases for non -civil service employees, the ranks of Police Officer /Recruit, Sergeant, Lieutenant and Captain shall not receive any base pay increase regardless of the calculated amount necessary to reach minimum and maximum rates plus five percent (5 %0. (c) Should the City Council approve a budget that includes lump sum pay increases instead of an increase to base pay to non -civil service City employees, the ranks of Police Officer /Recruit, 13 Sergeant, Lieutenant and Captain will receive a lump sum payment equal to the average lump sum increase for non -civil service employees instead of an increase to base pay. Section 4. Funding Obligations Depending upon the financial forecasts, the City may implement the compensation recommendations in section 3 between the first pay period of October and the first pay period of April of each fiscal year. The City presently intends to continue this Agreement each fiscal year through its term, to pay all payments due, and to fully and promptly perform the obligations of the City under this Agreement. All obligations of the City shall be paid only out of current revenues or any other funds lawfully available for those obligations, including tax revenues reasonably anticipated at equal or higher total gross amounts as were collected in fiscal year 2008 -2009, and appropriated for such purpose by the City Council, in compliance with the Texas Constitution, Article XI, Sections 5 and 7. Following the adoption of the annual budget that may establish a pay increase, should the City Council find it fiscally necessary to reduce base pay for non -civil service City employees, or implement other cost saving measures such as mandatory furloughs or a reduction -in- force, the increase recommended under this Article shall be reduced. 14 ti :I ARTICLE S COURT TIME AND CALL BACK Officers while off duty who are called back to duty shall be paid a minimum of two (2) hours or actual time worked, whichever is greater. Officers while off duty who are subpoenaed to give testimony in court about events arising out of their employment shall be paid a minimum of three (3) hours or actual time worked, whichever is greater. Any hours meeting established criteria for overtime compensation will be paid at one and a half (1 -1/2 times) the officer's regular rate of pay. 15 ARTICLE 9 ASSIGNMENT PAY Section 1. Field Training Officer Pay Each Officer assigned as a Field Training Officer shall be granted pay of $100.00 per month. Section 2. Tactical Team Pay Each Officer assigned to the Tactical Team shall be granted pay of $100.00 per month. Section 3. Investigative Services Bureau, Traffic Enforcement Unit, Administrative Service§, Canine Officers, and hostage Negotiators Each Officer on a callout list approved by the Department head who is assigned to the Investigative Services Bureau, Traffic Enforcement Unit, Administrative Services, Canine Officers, and Hostage Negotiators shall be granted pay, effective the first pay period of each fiscal year, as follows: Fiscal Year 2009 -2010: $50.00 per month; Fiscal Year 2010 -2011: $75.00 per month; and Fiscal Year 2011 -2012: $100 per month. 16 ARTICLE 10 CIVIL SERVICE COMMISSION Section 1. Commission It is the desire of the City and the Association to broaden the criteria qualifying persons eligible to serve on the commission. As a result, a person may be appointed to the commission who has held public office within the preceding three years provided that the public office held by the person was not an elected office. This article supercedes section 143.006(c)(5) of the Texas Local Government Code. 17 ARTICLE 1�1 CONTRACT INTERPRETATION DISPUTE RESOLUTION PROCEDURE Section 1. Scope of Procedure The City and Association recognize that from time to time disagreements between the Parties may arise as to the application or interpretation of this Agreement. The Parties therefore agree that the purpose of this dispute resolution procedure is to provide a just and equitable method for resolving disagreements between the Parties regarding the application or interpretation of the provisions of this Agreement. Matters involving the interpretation, application, or alleged violations of a specified provision of this Meet and Confer Agreement shall be subject to this dispute resolution procedure. Any matters for which the right of appeal is afforded by Subchapter D of Chapter 143 of the Texas Local Government Code are excepted from the scope of this Article. Section 2. Application of Procedure If the Association has a dispute with the City regarding this Agreement, the Association should reduce the dispute to writing and deliver it to the City's designated representative, who shall be is Department head or designee. An Officer may not file a request for contract dispute resolution directly with the City; all resolution requests must be approved and come from the Association Grievance Committee. Each dispute shall be submitted on a form similar to the one attached as an exhibit to this Agreement, and must include, at minimum, the following information: (1) a brief statement of the dispute and facts or events on which it is based; (2) the section(s) of the Agreement alleged to have been violated; (3) the remedy or adjustment sought and; (4) the bargaining unit member's signature or, if filed by the Association, the signature of the Association Grievance Committee chairman or Association President. Any claini or dispute by an employee or group of employees under this Agreement which includes a claim for pay or benefits for any past pay periods must be fled by the employee with the Association within thirty (30) days of the date when the employee knew or reasonably should have known of the claim. Disputes by the Association or an Officer shall proceed along the following steps: Step 1. An aggrieved Officer must initiate a dispute with the Association Grievance Committee within thirty (30) calendar days of the date upon which the Officer know of or should have known of the facts giving rise to the dispute. A copy of notice or receipt of the dispute shall be forwarded to the Department head by the Association Grievance Committee within (3) business 18 days of the receipt of the dispute. The Association Grievance Committee shall within their sole discretion determine if a dispute exists. If the Association Grievance Committee determines that no dispute exists, it shall notify the Department head in writing that no further proceedings will be necessary. If the Association Grievance Committee determines that the dispute is valid, it shall within fifteen (15) business days after receipt of the dispute, proceed to Step 2 of the procedure: Step 2. Any dispute found to be valid by the Association Grievance Committee shall be submitted to the Department head within five (5) business days of the Step 1 decision. After receipt of the dispute, the Department head shall within thirty (30) days submit his response in writing to the Association Grievance Committee. The Department head may require by policy for submission of contract disputes within the Chain of command, but shall have a duty to determine the matter within thirty (30) days of its receipt from the Association. Step 3. If the dispute is not resolved in Step 2, the Association Grievance Committee may advance the dispute in writing to the City Manager or designee within ten (10) business days from receipt of the Step 2 decision by the Department head. The City Manager or designated representative shall review the matter and render a decision in writing to the Association Grievance Committee within ten (10) business days of the receipt of the dispute. The City Manager or designee may, at his or her discretion, conduct a conference to further explore the merits of the dispute and to explore resolution options. Step 4. , If the dispute is not resolved in either Step 3, either Party shall have the right to seek mediation of the dispute by requesting same in writing within ten (10) business days. The mediation will proceed before either a mediator with the Federal Mediation and Conciliation Service or before a mutually agreed mediator. The mediation shall be held in available facilities of the City of Denton. Step 5. If the dispute is not resolve at Step 4, the Association shall have ten (10) business days from the date of mediation to determine whether it will pursue the dispute under this article through arbitration. Under this step, the Association must deliver a letter indicating its selection for arbitration to the Department head. Section 3. Arbitration Opinion The Parties have agreed that all disputes under this Agreement, which concern the application and interpretation of this Agreement, shall be submitted to final and binding arbitration, and the Parties except form this Agreement disputes involving statutory application and interpretation for rights and claims not arising under sections 142 or 143 of the Texas Local Government Code. The terms of the Agreement, and any factual issues which are determinative in applying the Agreement, shall be the sole province of the designated arbitration, and his or her decision shall be final. However, the City will only agree to arbitration on the condition that legal issues which are determinative in any contract dispute are subject to judicial review. This additional exception to the Parties' arbitration Agreement is a narrow one, as reflected by the bargaining 19 history. This contract represents an agreement to submit disputes to arbitration within its scope, and otherwise preserves the existing jurisdiction of Texas Courts over any contract rights and claims not exclusively committed to arbitration. The Parties have agreed that questions of law, which involve either the interpretation and application of state statues or the application of legal principles from Texas appellate court opinions (or the failure to properly apply such legal principles or opinions) to controversies under this article shall be submitted initially to arbitration, but that either party shall have a limited right of appeal from an arbitration award in the Courts solely for the purpose of reviewing disputed issues of law. No such appeal from arbitration shall include review of any factual determinations by the arbitrator, including credibility of witnesses or weight of the evidence. If an appeal from arbitration based on erroneous application of the law is not successful, the appealing Party shall bear all costs of such appeal. If a dispute is submitted to arbitration, within seven (7) calendar days, the Department head and/or City and the Association shall select an arbitrator by alternately striking names from the Parties" Pre- determined panel of six (6) qualified neutral arbitrators. The Association shall strike the first name under this article with the first dispute brought under this article„ Thereafter, the first strike shall alternate between the Parties. The panel list is attached as Exhibit "A " to this Agreement. Should any panel member subsequently refuse or be unable to continue to serve on the panel, the Parties may mutually agree to his replacement form a mutually accepted list of three (3) arbitrators. In the event the Parties cannot mutually agree to a replacement, the remaining members of the panel will continue to serve for the duration of the Agreement. The arbitration should be held at the earliest available date, but may be continued for good cause shown or upon mutual agreement. The hearing shall be held in available facilities of the City of Denton and shall be conducted informally, without strict evidentiary or procedural rules. The conduct of the hearing shall be governed by the standard rules of the American Arbitration Association. The arbitrator shall consider and decide only the issue(s) in the dispute statement or submitted in writing by agreement of the Parties. The 'hearing shall be concluded as expeditiously as possible and the arbitrator's written decision shall be based on a preponderance of evidence within thirty (30) days after close of the hearing. Section A.'becision Final and Binding If arbitration is selected, the Parties specifically agree that the arbitrator's authority shall he strictly limited to interpreting and applying the explicit provisions of this Agreement. The arbitrator shall not have authority to modify the agreement or create additional provisions not included in the Agreement. The Parties agree that neither the City nor the Association shall have ,x parte communications with the arbitrator concerning any matter involved in the dispute submitted to the arbitrator. Each Party shall be responsible for its own expenses in preparing for and representing itself at arbitration, but the fees of the arbitrator shall be borne equally by the Parties. The written decision of the arbitrator shall be final and binding on both Parties and may not be appealed by either Party, except for any decision procured by fraud or collusion, or which 20 exceeds the arbitrator's jurisdiction or which is based on legal conclusions or interpretations which are clearly contract to existing law. Section 5. Mutual Extension All deadlines within this article may be extended by mutual agreement by the Parties. 21 ARTICLE 12 TERM OF AGREEMENT This Agreement shall have an effective date of October 1, 2009, and shall remain in full force and effect through September 30, 2012. 22 ARTICLE 13 SAVINGS CLAUSE AND PREEMPTION PROVISION Section 1. If any provision of this Agreement is rendered invalid by a court of competent jurisdiction, such invalidity shall not affect any other provision of this Agreement, which shall continue to be in full force and effect for the duration of the Agreement, and the Parties shall meet as soon as possible to agree on a substitute provision. However, if the Parties are unable to agree within thirty (30) days following commencement of the initial meeting, then the matter shall be postponed until Meet and Confer negotiations are resumed. To this end, the provisions of this Agreement are severable. This Agreement may be amended by written mutual agreement. Section 2. The provisions of this Agreement shall supercede the provisions of any statute, Executive Order, local ordinance, or rule, which are in conflict herewith, including for example and not by way of limitation, the contrary provisions of Chapter 143; Ordinances of the City of Denton, Texas; and Local Rules and Regulations of the Civil Service Commission for the City of Denton, Texas. This preemption provision is authorized by section 142.067 of the Texas Local Government Code, and the Parties have expressly agreed that each and every provision involving or creating such a conflict shall have the effect of superceding the statutory standard or result which would otherwise obtain, in the absence of this Agreement. This provision is of the essence to the bargain and Agreement, which has been reached. Section 3.' Complete Agreement Clause The Parties agree that each has had full and unrestricted right and opportunity to make, advance and discuss all matters properly within the meet and confer process. This Agreement constitutes the full and complete Agreement of the Parties and there are no others, oral or written, except as specified in this Agreement. However, to the extent it may be shown to be necessary to go outside the four corners of the Agreement, the Negotiation History Document may be utilized to show the intent of the Parties. 23 SIGNATURE & EXECUTION PAGE THE FOREGOING INSTRUMENT AS BEEN DULY NEGOTIATED, REVIEWED, AND APPROVED BY EACH OF THE SIGNATORIES INDICATED BELOW: THE CITY OF DENTON, TEXAS (Approved by Denton City Council on - o 2009). APPROVED: By: TR —ENS PRESIDENT, DENTON POLICE OFFICERS ASSOCIATION . By; Dated: .._...._:.. s V YINIA W. NICHOLS SECRETARY, DENTON POLICE OFFICERS ASSOCIATION 24 Norman Bennett Otis King Francis Quinn Bill Detwiler Donald Goodman John Barnard EXHIBIT A PANEL OF ARBITRATORS 9R sAlegallour documemslordinances1121po1ice meet & confer 1st amendment.doe ORDINANCE NO. 2012-151 AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING A FIRST AMENDMENT TO THE MEET AND CONFER AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON POLICE OFFICERS ASSOCIATION AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton ( "City ") lawfully approved a Meet and Confer Agreement ( "Base Agreement ") between the City and the Denton Police Officers Association ( "Association ") on September 22, 2009; and WHEREAS, said Base Agreement has the effective dates of October 1, 2009, through September 30, 2012; and WHEREAS, under the terms of the Base Agreement, the Base Agreement may be amended by mutual written amendment; and WHEREAS, the City and the Association have mutually agreed in writing through a document entitled "First Amendment to Meet and Confer Agreement" to amend and extend the Base Agreement for Fiscal Years 2012 -2013 and 2013 -2014 with the option to terminate the Base Agreement by mutual agreement prior to commencement of Fiscal Year 2013 -2014; and WHEREAS, the City and the Association have mutually agreed in the First Amendment to Meet and Confer Agreement to amend Article 7, Section 3(A) pertaining to compensation calculations for Police Officer/Recruit, Sergeant, Lieutenant, and Captain; and WHEREAS, the City and the Association have mutually agreed in the First Amendment to Meet and Confer Agreement to amend Article 7, Section 4 pertaining to funding obligations; and WHEREAS, the City and the Association have mutually agreed in the First Amendment to Meet and Confer Agreement to amend Article 9, Section 3 regarding Assignment Pay; and WHEREAS, the City finds that is in the best interest of the citizenry to accept the First Amendment to Meet and Confer Agreement; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION_ _ 1. The First Amendment to the Meet and Confer Agreement is approved hereby and the City Manager, or his designee, is hereby authorized to execute a First Amendment to the Meet and Confer Agreement between the City and the Denton Police Officers Association in substantially the same form and content of the First Amendment to the agreement attached hereto and made a part of this ordinance for all purposes. SECTION 2. This ordinance shall be effective immediately upon its passage and approval. sAlegal\our documents\ordinances\12 \police meet & confer 1st antendment.doc r1 PASSED AND APPROVED this the I �h — - day of (")M&— , 2012, MARK A. BU OUG S, M _.._. AYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY :. APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY FIRST AMENDMENT TO MEET AND CONFER AGREEMENT THIS FIRST AMENDMENT TO THE MEET AND CONFER AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON POLICE OFFICERS ASSOCIATION effective the 1st day of October, 2009, ( "Base Agreement ") by and between The Denton Police Officers Association ( "DPOA ") and the City of Denton, Texas, a Texas Municipal Corporation, 215 East McKinney, Denton, Texas 76201, hereinafter referred to as "City" and the DPOA and the City collectively referred to as the "Parties." RECITALS SECTION 1. Whereas the Parties entered a Meet and Confer Agreement effective October 1, 2009 referred to as the "Base Agreement" which continues in effect and continues to reflect the intent and desire of Parties; SECTION 2. Whereas the Base Agreement will expire September 30, 2012, and the Parties desire to extend the Base Agreement by amending Article 12 in the Base Agreement to provide for an additional two (2) years for Fiscal Years 2012 -2013 and 2013 -2014 with the option to terminate the Base Agreement by mutual agreement prior to the commencement of Fiscal Year 2013 -2014; SECTION 3. Whereas the Parties intend to update Articles 7 and 9 as part of their Amendment; SECTION 4. Whereas Article 13 Section 1 of the Base Agreement provides for amendment by written mutual agreement and the Parties mutually intend to amend and hereby mutually agree to amend the Base Agreement as follows: TERMS of AGREEMENT SECTION 1. Amendment Continuing Contract. Article 12 TERM OF AGREEMENT, of the Base Agreement is hereby amended to read as follows: ARTICLE 12 TERM OF AGREEMENT This Agreement shall have an effective date of October 1, 2009, and shall remain in full force and effect through September 30, 2014. The Parties hereby extend all the remaining sections, paragraphs, sentences, clauses, and phrases of the Base Agreement and shall remain in full force and effect except those more specifically amended below. However, this Agreement may be reviewed by the Parties and may be terminated by mutual agreement of the Parties as of September 30, 2013. If the DPOA or City intends to exercise the option to terminate by mutual agreement, it must notify the other Party in writing by May 31, 2013, of its request to terminate. SECTION 2. Amendment To Article 7 Sections 3(a) and 4 To Extend Compensation Provisions. ARTICLE 7 Section 3(a) and Section 4 of the Base Agreement are hereby amended to read as follows: Section 3(a). The compensation for Police officer/Recruit, Sergeant, Lieutenant and Captain shall be proposed on the basis of the following calculations: The recommended monthly base pay scale shall be calculated by the salary survey conducted in May 2012, and 2013, utilizing the average minimum base salary and the average maximum base salary for each rank of the twelve (12) comparator cities as specified in this contract, plus five percent (5 %). The recommendation will propose that the minimum and maximum base pay for each rank will receive an increase (should an increase be required) to match the survey average plus five percent (5 %). The steps between the minimum and maximum steps will be recalculated to maintain equal separation between any new minimum and maximum steps. Section 4. Funding Obligations Depending upon the financial forecasts, the City may implement the compensation recommendations in section 3 between the first pay period of October and the first pay period of April of each fiscal year. The City presently intends to continue this Agreement each fiscal year through its term, to pay all payments due, and to fully and promptly perform the obligations of the City under this Agreement. All obligations of the City shall be paid only out of current revenues or any other funds lawfully available for those obligations, including tax revenues reasonably anticipated at equal or higher total gross amounts as were collected in fiscal year 2011 -2012, and appropriate for such purpose by the City Council, in compliance with the Texas Constitution, Article XI, Sections 5 and 7. Following the adoption of the annual budget that may establish a pay increase, should the City Council find it fiscally necessary to reduce base pay for non -civil service City employees, or implement other cost saving measures such as mandatory furloughs or a reduction -in- farce, the increase recommended under this Article shall be reduced, SECTION 3. Amendment To Section 3 of Article 9 Assignment Pay. ARTICLE 9 Section 3 of the Base Agreement is hereby amended to read as follows: Section 3. Investigative Services Bureau, Traffic Enforcement Unit, Administrative Services, Canine Officers, and Hostage Negotiators. Each Officer on a callout list approved by the Department head who is assigned to the Investigative Services Bureau, Traffic Enforcement Unit, Administrative Services, 2 Canine Officers, and Hostage Negotiators shall continue to be granted pay for Fiscal Year 2012 -2013 and Fiscal Year 2013 -2014 at $100 per month. The foregoing instrument has been duly negotiated, reviewed and approved by each of the signatories indicated below: THE DENTON POLICE OFFICERS ASSOCIATION (Ratified by the DPOA Membership on 13 of Z 2012) 0 FFICERS ASSOCIATION CITY OF DENTON, TEXAS (Approved by Denton City Council on 7 t of m X012) BY: �� GEO GE C, CAMPBEIA, CITY MANAGER BY; 1 'Y �E TARYRS BY: VEE � L How ALL CHIEF OF POLICE APPROVED AS TO LEGAL FORM: BY: 5L 1 "I"A I�11R 11ISS CITY ATTORNEY Dated: �L Dated; City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com 1 EN71" N File #: ID 14 -0457, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Economic Development CM/ ACM: John Cabrales, Jr. Date: August 19, 2014 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas approving the Project and Financing Plan for Tax Increment Reinvestment Zone Number Three ( "Convention Center TIRZ "); making certain findings and other matters related thereto; and providing an effective date. BACKGROUND On June 17, 2014, the City Council of Denton, Texas passed Ordinance No. 2014 -191, which established Tax Increment Reinvestment Zone Number Three (Convention Center TIRZ) and created the Convention Center TIRZ Board as authorized by Chapter 311 of the Texas Tax Code; and established a Preliminary Project Plan for the Convention Center TIRZ as authorized by section 311.011 of the Texas Tax Code. On August 12, 2014 the Board of Directors of Convention Center TIRZ recommended approval of the Preliminary Project and Financing Plan, with an amendment. The amendment to the Plan allows for an alternative scenario if either Denton County or the Denton Independent School District (DISD) chooses not to participate. While Denton County and the DISD have yet not indicated they will participate, approval of the Plan is a necessary step to seek those taxing jurisdictions' participation. The Preliminary Project and Finance Plan states that: • The Board shall prepare and adopt a Preliminary Project and Finance Plan and submit the plan to the governing body that created the zone; • The Plan must be as consistent as possible with the preliminary plans developed for the zone before the creation of the board; • The Board may adopt amendments to the Preliminary Project and Finance Plan, as approved by an Ordinance by the Denton City Council; • The Denton City Council has the final authority on projects. If approved by Council, the Project and Finance Plan will be submitted to the State Comptroller, as outlined in Section 311.016 of the Texas Code. The Preliminary Project and Finance Plan was established following specific assumptions about the size and cost of the convention center. If subsequent review by the City Council results in either of these variables changing substantially, it may be necessary to amend the financing plan accordingly. City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File M ID 14 -0457, Version: 1 ESTIMATED SCHEDULE FOR PROJECT The duration of Convention Center TIRZ is 30 years, or at an earlier time designated by subsequent Ordinance of the City Council in the event that the City determines that the Zone should be terminated due to insufficient private investment or other good cause. PRIOR ACTION /REVIEW The Convention Center TIRZ Board reviewed the Preliminary Project and Financing Plan and recommended approval (7 -0), with the above referenced amendment. FISCAL INFORMATION It is estimated that the TIRZ would generate approximately $13,673,693. The City, County and DISD would contribute an estimated $7,420,856, $2,298,992 and $3,953,845 into the TIRZ fund, respectively. The County and DISD are still considering participation so the total amount generated may vary depending on final participation decisions. If neither the County or DISD participates, the City would contribute an estimated $7,420,856. EXHIBITS Exhibit 1 - Project and Finance Plan Ordinance Exhibit 2 - Preliminary Project and Finance Plan (will be forwarded as a hard copy under separate cover) Exhibit 3 - Ordinance 2014 -191 Respectfully submitted: Aimee Bissett Economic Development Director Prepared by: Erica Sullivan Economic Development Analyst City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS. APPROVING THE PROJECT AND FINANCING PLAN FOR TAX INCREMENT REINVESTMENT ZONE NUMBER THREE ( "CONVENTION CENTER TIRZ "); MAKING CERTAIN FINDINGS AND OTHER MATTERS RELATED THERETO; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on the 17th day of June 2014, the City Council of Denton, Texas (the "City ") established the Tax Increment Reinvestment Zone Number Three (Convention Center TIRZ) (the "Zone "); as authorized by Chapter 311 of the Texas Tax Code (the "Act ") and pursuant to Ordinance No. 2014 -191, adopted by the City Council of the City of Denton, Texas. WHEREAS, as authorized by section 311.010 of the act on August 12, 2014 the board of directors of the Zone voted to approve the project and financing plan, which is attached hereto as Exhibit "A" and recommended the Project and Financing Plan be approved by the City Council; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. Findings. That the City Council hereby makes the following findings of fact: 1.1 The statements and facts set forth in the recitals of this Ordinance are true and correct. 1.2 That the Plan includes all information required by Sections 311.003(b) and (c) of the Act. 1.3 That the Plan is feasible and the project plan conforms to the City's master plan. SECTION 2. Approval of Plan. The City Council of the City of Denton, Texas, hereby approves said Project Plan for the Convention Center TIRZ, which is attached and made part by reference herein. SECTION 3. Severability. That if any portion, section or part of a section of this Ordinance is subsequently declared invalid, inoperative or void for any reason by a court of competent jurisdiction, the remaining portions, sections or parts of sections of this Ordinance shall be and remain in full force and effect and shall not in any way be impaired or affected by such decision, opinion or judgment. SECTION 4. Effective Date This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 2014. ATTEST: JENNIFER WALTERS, CITY SECRETARY I APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY IC CHRIS WATTS, MAYOR 2 of 2 s: \legal \our documents \ordinances \14 \denton tirz 3 creation ordinance v 6.docx AN ORDINANCE DESIGNATING AND DESCRIBING THE BOUNDARIES OF A TAX INCREMENT REINVESTMENT ZONE THREE, CITY OF DENTON, TEXAS ("CONVENTION CENTER TIRZ "); ESTABLISHING THE DURATION OF THE ZONE; ESTABLISHING A TAX INCREMENT FUND; ESTABLISHING A BOARD OF DIRECTORS FOR THE TAX INCREMENT REINVESTMENT ZONE; MAKING CERTAIN FINDINGS AND OTHER MATTERS RELATED THERETO; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton, Texas, (the "City "), desires to promote the development of a certain contiguous area within the City of Denton by the creation of a Tax Increment Financing Reinvestment Zone, as authorized by the Tax Increment Financing Act, Chapter 311 of the Texas Tax Code, Vernon's Texas Codes Annotated (the "Act "); and WHEREAS, the City has called a public hearing to hear the public comments on the creation of the proposed Tax Increment Reinvestment Zone and its benefits to the City and the property in the proposed Tax Increment Reinvestment Zone; and WHEREAS, notice of such public hearing was published in the Denton Record - Chronicle, a daily paper of general circulation in the City, such publication date being not later than seven (7) days prior to the date of the public hearing; and WHEREAS, such hearing was convened at the time and place mentioned in the published notice, on the 17th day of June 2014, at 6:30 p.m., in Council Chambers of the City of Denton, Texas; and WHEREAS, the City, at such hearing, invited any interested person, or his /her representative, to appear and speak for or against the creation of the Tax Increment Reinvestment Zone Three, the duration of the Tax Increment Reinvestment Zone, the boundaries of the proposed Tax Increment Reinvestment Zone, whether all or part of the territory which is described in Exhibit "A" attached hereto and depicted on the map attached hereto as Exhibit "B" should be included in such proposed Tax Increment Reinvestment Zone, the concept of tax increment financing and the appointment of a board of directors of the proposed Tax Increment Reinvestment Zone; and WHEREAS, all owners of property located within the proposed Tax Increment Reinvestment Zone and all other taxing units and other interested persons were given a reasonable opportunity at such public hearing to protest the creation of the proposed Tax Increment Reinvestment Zone and \or the inclusion of their property in such ; Tax Increment Reinvestment Zone; and WHEREAS, the proponents of the Tax Increment Reinvestment Zone offered evidence, both oral and documentary, in favor of all of the foregoing matters relating to the creation of the Tax Increment Reinvestment Zone, and opponents of the Tax Increment Reinvestment Zone sAlegal\our documents\ordinances\14\denton tirz 3 creation ordinance v 6.docx were given the opportunity to appear to contest creation of the zone, after which the hearing was closed; and WHEREAS, the City Council finds, as evidenced by the development history of said area, that the area encompassing the Tax Increment Financing Reinvestment Zone would not develop absent the creation of the said zone and its inclusion therein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That the facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct. SECTION 2. The City Council, after conducting such hearing and having heard such evidence and testimony, has made the following findings and determinations based on the evidence and testimony presented to it: (a) The public hearing on adoption of the Tax Increment Financing Reinvestment Zone has been properly called, held and conducted and that notice of such hearing has been published as required by law. (b) Creation of the proposed Tax Increment Reinvestment Zone with boundaries as described in Exhibits "A" and "B" will result in benefits to the City, its residents, and property owners, in general, and to the property, residents and property owners in the Tax Increment Reinvestment Zone. (c) That the Tax Increment Reinvestment Zone, as defined in Exhibits "A" and "B", meets the criteria for the creation of a Tax Increment Financing Reinvestment Zone set forth in the Act by, including but not limited to: (i) It is a contiguous geographic area located wholly within the corporate limits of the City. (ii) It substantially impairs or arrests the sound growth of the municipality creating the zone or constitutes an economic or social liability in its present condition and use because of the presence of. a. The area has a predominance of defective or inadequate sidewalks or street layout; and/or b. Predominately open or undeveloped and, because of obsolete platting, deterioration of structures or site improvements, or other factors; and/or c. Faulty lot layout in relation to size, adequacy, accessibility or usefulness. (d) That 30 percent or less of the property in the proposed Tax Increment Financing Reinvestment Zone, excluding property that is publicly owned, is used for Page 2 9rdinance C7esinatirE TI #3 City of Denton Texas sAlegal\our documents\ordinances\14\denton tirz 3 creation ordinance v 6.docx residential purposes, which is defined in the Act as any property occupied by a house which has less than five living units. (e) That the total appraised value of all taxable real property in the proposed Tax Increment Financing Reinvestment Zone according to the most recent appraisal rolls of the City, together with the total appraised value of taxable real property in all other existing Tax Increment Reinvestment Zones within the City, according to the most recent appraisal rolls of the City, does not exceed 25 percent of the current total appraised value of taxable real property in the City and in the industrial districts created by the City, if any. (f) That the improvements in the Tax Increment Reinvestment Zone will significantly enhance the value of all taxable real property in the Tax Increment Financing Reinvestment Zone. (g) The development or redevelopment of the property in the proposed Tax Increment Financing Reinvestment Zone will not occur solely through private investment in the reasonable foreseeable future. SECTION 3. That the City hereby creates a Tax Increment Reinvestment Zone Three over the area described in Exhibit "A," attached hereto and depicted in the map attached hereto as Exhibit "B," and such Tax Increment Reinvestment Zone shall hereafter be identified as Tax Increment Reinvestment Zone Number Three, City of Denton, Texas (the "Zone" or "Reinvestment Zone"). SECTION 4. There is hereby established a board of directors for the Zone that shall consist of up to eleven (11) members. The board of directors of Tax Increment Reinvestment Zone Number Three shall be appointed as follows: a) Nine (9) of the up to eleven (11) board members shall be appointed by the City Council of the City. Board membership shall consist of the nine (9) members of the Economic Development Partnership Board ("EDP"). Each taxing unit other than the City that contributes incremental taxes to the TIF Fund may, but is not required to, appoint one member to the Board. After each taxing unit other than the City designates to the City either the name of the member that the taxing unit wishes to appoint or the fact that the taxing unit wishes to waive its right to appoint a member, the City Council shall appoint whatever number of members are necessary to fill the remaining positions on the Board. Nine (9) of the up to eleven (11) member board shall be appointed by the City Council as provided here within sixty (60) days of the passage of this ordinance or within a reasonable time thereafter. All members appointed to the board shall meet the eligibility requirements set forth in the Act. b) The terms of the board members shall be two-year terms; the nine members appointed by City Council will serve terms concurrent with their EDP terms. A board member may serve no more than three consecutive terms. Page 3 !2rd ina ..ge Dc s i n tdng 11 Z fl 3 C i ty..2f. De n to - nFex as sAlegahour documents\ordinances\14\denton tirz 3 creation ordinance v 6.doex C) The board of directors shall make recommendations to the City Council concerning the administration of the Zone. It shall prepare and adopt a project plan and Tax Increment Reinvestment Zone financing plan for the Zone and must submit such plans to the City Council for its approval. The board of directors shall possess all powers necessary to prepare, implement and monitor such project plan and financing plan for the Tax Increment Reinvestment Zone as the City Council considers advisable, including the submission of an annual report on the status of the Zone. Any powers not herein delegated to the board of directors are specifically reserved to the City Council. SECTION 5. That the Zone shall take effect immediately upon passage of this ordinance, and the termination of the Zone shall occur on December 31, 2044, or at an earlier time designated by subsequent ordinance of the City Council in the event the City determines that the Zone should be terminated due to insufficient private investment, accelerated private investment or other good cause, or at such time as all project costs and tax increment bonds, if any, and the interest thereon, have been paid in full. SEC'1`JON 6. The Tax Increment Base for the Zone, as defined by Section 311.012(c), Texas Tax Code, shall be the total appraised value of all real property in the Zone taxable by a taxing unit for the year 2014, which is the year in which the Zone was designated as a reinvestment zone. SECTION 7. That there is hereby created and established a Tax Increment Fund for the Zone which may be divided into such subaccounts as may be authorized by subsequent resolution or ordinance, into which all Tax Increments, less any of the amounts not required to be paid into the Tax Increment Fund pursuant to the Act, are to be deposited. The Tax Increment Fund and any subaccounts are to be maintained in an account at the City Treasurer's affiliated depository bank of the City and shall be secured in the manner prescribed by law for funds of Texas cities. In addition, all revenues from the sale of any tax increment bonds and notes hereafter issued by the City, revenues from the sale of any property acquired as part of the tax increment financing plan and other revenues to be dedicated to and used in the Zone shall be deposited into such fund or subaccount from which money will be disbursed to pay project costs for the Zone or to satisfy the claims of holders of tax increment bonds or notes issued for the Zone. SECTION 8. The Tax Increment Fund shall consist of (i) the percentage of the tax increment, as defined by Section 311.012(a), Texas Tax Code, that each taxing unit which levies real property taxes in the Zone, other than the City, may elect to dedicate to the Tax Increment Fund under an agreement with the City authorized by Section 311.013(f), Texas Tax Code, plus (ii) one hundred percent (100%) of the City's portion of the tax increment, as defined by section 311.012(a), Texas Tax Code, subject to any binding agreement executed at any time by the City that pledges a portion of such tax increment or an amount of other legally available funds whose calculation is based on receipt of any portion of such tax increment. Page 4 Ordinance Des.i. FJ-RZ 43 City of De,!21 n,...Texas City .......................... sAlegaftour documents\ordinances\14\denton tirz 3 creation ordinance v 6.docx SECTION 9. If any section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. SECT_ ION 10. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the I day of ,is 2014. CHRIS WATTS, MAY, R ATTEST: JENNIFER WALTERS, C JTY SECRETARY M AIIPRO/ED AS S) LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Ordinance Designating TIRZ #3 City of Denton, Texas s: \legal \our documents \ordinances \14 \denton tirz 3 creation ordinance v 6.docx Ordinance Desi�natm T1RZ #3 Gtv of Denton, Texas s:\Iegal\our documents\ordinances\14\denton tirz 3 creation ordinance v 6.docx am Ordinance Designqtm -TIR7 #3 City of Denton `Texas, r a N rr ra a.. sg jw fir; P 4� g @�+ ci o i G $ kat�rta � �a Re � rt 6�ri a r % - i� z� ie'•I� � r � � +d' [ £ B J (➢ �� F B � J .. f Al r @ s �' r � , •. =354 7 I f " �u f A + % �iYi tj r f r s R �• f i r r { r I h °u E B � �7 6 E &p 0 N City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com I N71" N File #: ID 14 -0448, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: City Manager's Office CM/ ACM: Bryan Langley Date: August 19, 2014 SUBJECT Consider nominations /appointments to the City's Boards and Commissions: Community Development Advisory Committee; Health & Building Standards Commission; Historic Landmark Commission; Human Services Advisory Committee; Parks, Recreation and Beautification Board; Public Art Committee; Public Utilities Board; Traffic Safety Commission; and Zoning Board of Adjustment. BACKGROUND Attached are the vacancies for Boards and Commissions that require nominations. 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 Exhibits Exhibit 1 - Nominations Sheet City of Denton Page 1 of 1 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl BOARD AND COMMISSION NOMINATIONS Board Council Member Nomination Community Development Advisory Crate. Johnson All -Roden nomination All -Roden nomination Additional nomination-Ryan Lindsey Crockarell (N) Taylor Barnes (N) Codie Cause N Health & Building Standards Commission Alternate Alternate Historic Landmark Commission All - Hawkins nomination Scott Campbell (R) Human Services Advisory Committee Johnson All Parks, Recreation & Beautification Board Ryan Public Art Committee Watts Public Utilities Board Watts Traffic Safety Commission Ryan Zoning Board of Adjustment Alternate 2 -Ryan nomination Alternate 3 Gerard Hudspeth R - Reappointment N - New Nomination City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN"1 ON File #: S114 -0003, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Planning and Development CM/ ACM: John Cabrales, Jr. Date: August 19, 2014 SUBJECT Consider appointment of Council Members to serve on the City Council Historic Landmark Committee. BACKGROUND On August 12, 2014, City Council of the City of Denton, Texas, adopted a resolution creating an Ad Hoc City Council Committee, called the City Council Historic Landmark Committee, to interface with the Historic Landmark Commission (HLC) and review the operations, procedures, powers, duties, policies and regulations related to historic landmark preservation and historic districts in the City. The Committee shall be composed of three (3) members of the City Council to be appointed by the Mayor and approved by the City Council. The Committee members shall serve at the pleasure of the City Council and shall review, consider and make recommendations to the City Council as to any necessary changes related to historic preservation. The purpose of this agenda item is to appoint members of the City Council to the Historic Landmark Committee in order to commence the respective duties and purpose. Upon completion of the assigned tasks, the City Council Historic Landmark Committee shall be dissolved without further action of the City Council. PRIOR ACTION /REVIEW (Council, Boards, Commissions) April 15, 2014 - City Council Work Session July 29, 2014 - City Council Work Session August 12, 2014 - City Council Meeting FISCAL INFORMATION Not Applicable RXATRTTC Resolution creating an Ad Hoc City Council Committee City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: S114 -0003, Version: 1 Prepared by and respectfully submitted: Brian Lockley, AICP, CPM Director of Planning and Development City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl s:Alegal \our documents \resolutions \14\resolution creating ad hoc council committee on hlc matters (2).docx Exhibit 1 Resolution creating an Ad Hoc City Council Committee RESOLUTION NO. A RESOLUTION CREATING AN AD HOC CITY COUNCIL COMMITTEE TO INTERFACE WITH THE HISTORIC LANDMARK COMMISSION AND REVIEW TTIE OPERATIONS, PROCEDURES, POWERS, DUTIES, POLICIES AND REGULATIONS RELATED TO HISTORIC LANDMARK PRESERVATION AND HISTORIC DISTRICTS IN THE CITY OF DENTON, TEXAS AND TO ADVISE THE CITY COUNCIL WITH REGARD TO THESE MATTERS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of Denton places the highest value on the preservation of the City's precious historic landmarks and districts; and WHEREAS, the City Council recognizes fully the contribution historic preservation makes to the City's culture, heritage, and identity; and WHEREAS, the City has been well served by the selfless devotion of its Historic Landmark Commission since its inception; and WHEREAS, the City Council desires to continue the City's traditions of historic preservation and strengthen the processes and regulations making such preservation possible; and WHEREAS, the City Council of Denton has determined that it would be advisable to create an ad hoc City Council Committee to provide recommendations to the City Council and an interface with the Historic Landmark Commission; and WHEREAS, the City Council of Denton has determined that it is advisable that the ad hoc City Council Committee shall be dissolved upon the completion of the work as outlined below; NOW, THEREFORE, THE CITY COUNCIL OF "THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council hereby establishes an ad hoc committee to be called the City Council Historic Landmark Committee. The Committee shall be composed of three (3) members of the City Council to be appointed by the Mayor and approved by the City Council. The City Manager, or his or her designee, will provide guidance and assistance to the Committee and be responsible for insuring that records are maintained in accordance with the requirements of the City Secretary's Office. The Committee members shall serve at the pleasure of the City Council until successors are duly appointed by the Mayor and approved by the Denton City Council. The presiding officer of the Committee shall be chosen annually by the Committee. Members of the Committee must be current elected City Council members of the City of Denton, Texas. SECTION 2. The duties and purpose of the Committee shall be to review, consider and make recommendations to the City Council as to any necessary changes with regard to the operations, procedures, powers, duties, policies, and regulations related to the Historic Landmark s:Alegal \our documents \resolutions \14 \resolution creating ad hoc council committee on hlc matters (2).docx Commission and historic landmark preservation and historic districts in the City of Denton. The Committee shall proceed with its assigned duties in collaboration with the Historic Landmark Commission. SECTION 3. Upon completion of the assigned tasks, the City Council Historic Landmark Committee shall be dissolved without further action of the City Council. SECTION 4. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2014 CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY i APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY r r( ` City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com 1E "1" 1N File #: ID 14 -0408, Version: 1 DEPARTMENT: CM/ ACM: Date: Finance Bryan Langley August 19, 2014 Legislation Text Agenda Information Sheet SUBJECT Hold a public hearing on a proposal to adopt a tax rate of $0.689750 per $100 valuation, which will exceed the lower of the rollback rate or the effective rate. BACKGROUND The Texas Constitution and Texas Property Tax Code require taxing units to comply with specific guidelines in adopting tax rates. The guidelines are related to a concept known as truth -in- taxation. This concept is a way to make taxpayers aware of tax rate proposals and allow tax payers in certain circumstances, to roll back or limit a tax increase. The truth -in- taxation guidelines require taxing entities to calculate and publish their effective and rollback tax rates (Exhibit 1 - Notice of Proposed Tax Rate). The effective rate is the calculated rate that would provide the taxing unit approximately the same amount of revenue it received in the previous year on properties taxed in both years. This rate excludes taxes on properties no longer in the taxing unit and also excludes any growth due to new property values. The City of Denton's 2014 effective rate is $0.639997/$100 valuation. The rollback rate divides the total property tax revenue into support for maintenance and operations (M &O) taxes and debt service taxes. It provides approximately the same amount of revenue as in the previous year for maintenance and operations expenses, plus an extra eight percent, and the necessary debt service tax rate. If a taxing unit adopts a tax rate higher than the rollback rate, the voters have the option to petition for an election to limit the size of the tax increase. The City of Denton's 2014 rollback rate is $0.696756/$100 valuation. The City Manager's FY 2014 -15 Proposed Annual Program of Services recommends a tax rate of $0.689750 per $100 of valuation, and this rate is $0.049753 above the effective rate. It is important to note that the City of Denton's proposed tax rate is recommended to remain unchanged. No tax rate increase is recommended for FY 2014 -15. However, because the City of Denton's proposed tax rate exceeds the effective tax rate, two public hearings are required to take place prior to the budget adoption. In compliance with state law, staff published the Notice of Proposed Tax Rate in the Friday, August 8, 2014, issue of the Denton Record Chronicle. In addition to the newspaper publications, the notice will be posted on the City's Web site, <htlp: / /www.cilyofdenton.com> and the public access channel. City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: ID 14 -0408, Version: 1 ESTIMATED SCHEDULE OF PROJECT September 9, 2014 Hold Second Required Public Hearing on Tax Rate September 16, 2014 Adopt Tax Rate and Approve FY 2014 -15 Annual Program of Services PRIOR ACTION /REVIEW (Council, Boards, Commissions) On August 12, 2014, the City Council discussed the proposed budget in work session. On August 5, 2014, the City Council discussed the proposed budget and voted to place a proposal on the September 16, 2014 City Council agenda to approve a tax rate above the effective rate. On July 31, 2014, the City Council was provided with detailed information regarding the FY 2014 -15 Proposed Annual Program of Services including the proposed tax rate. On July 25, 2014, the City Manager's FY 2014 -15 Proposed Annual Program of Services, was provided to the City Council. FISCAL INFORMATION In the FY 2014 -15 Proposed Budget, a tax rate of $0.689750 per $100 valuation is recommended. FXU RITC 1. Notice of Proposed Tax Rate Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance Prepared by: Antonio Puente, Jr. Assistant Director of Finance City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl Exhibit 1 NOTICE OF 2014 TAX YEAR PROPOSED PROPERTY TAX RATE FOR CITY OF DENTON A tax rate of $0.689750 per $100 valuation has been proposed for adoption by the governing body of the City of Denton. This tax rate exceeds the lower of the effective or rollback tax rate, and state law requires that two public hearings be held by the governing body before adopting the proposed tax rate. PROPOSED TAX RATE PRECEDING YEAR'S TAX RATE EFFECTIVE TAX RATE ROLLBACK TAX RATE $0.689750 per $100 $0.689750 per $100 $0.639997 per $100 $0.696756 per $100 The effective tax rate is the total tax rate needed to raise the same amount of property tax revenue for the City of Denton from the same properties in both the 2013 tax year and the 2014 tax year. The rollback tax rate is the highest tax rate the City of Denton may adopt before voters are entitled to petition for an election to limit the rate that may be approved to the rollback rate. � •c � 1 0 : i r:�: � : � � � �. �i � :i o ►::� � : �:v � •� � � : r � ::: r:� : i � w : � : r:� � : � �:v � : � x �:� : c � o w:� � � :�:� s :: � � w : c � � �. �� property tax amount = ( rate ) x ( taxable value of your ) / 100 For assistance or detailed information about tax calculations, please contact: Michelle French Denton County Tax Assessor - Collector 1505 E. McKinney Street, Denton, TX, 76209 940 - 349 -3500 Property.Tax @dentoncounty.com http://tax.dentoncounty.com You are urged to attend and express your views at the following public hearings on the proposed tax rate: First Hearing: 6:30 p.m. on August 19, 2014 at City Hall, 215 E. McKinney St., Denton, TX, 76201 Second Hearing: 6:30 p.m. on September 9, 2014 at City Hall, 215 E. McKinney St., Denton, TX, 76201 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com 11EN"1, IN File #: ID 14 -0409, Version: 1 DEPARTMENT: CM/ ACM: Date: Finance Bryan Langley August 19, 2014 Legislation Text Agenda Information Sheet SUBJECT Hold a public hearing and receive citizen input on the FY 2014 -15 Proposed Budget. BACKGROUND The City Charter and State Law require that prior to budget adoption, a public hearing be conducted to allow citizens the opportunity to provide input on the Proposed Budget. The required notice of the public hearing was published August 8, 2014, in the Denton Record Chronicle. The notice is also posted on the City's Web site <http: / /www.cityofdenton.com> and on the public access channel. A copy of the published notice is provided for reference. PRIOR ACTION /REVIEW (Council, Boards, Commissions) The FY 2014 -15 Proposed Budget was submitted to the City Council on July 25, 2014. A City Council Budget Workshop was held on July 31, 2014, and the City Council also discussed the Proposed Budget at their August 5 and August 12 meetings. Copies of the Proposed Budget are available to the public at any City of Denton library branch, and an electronic copy of the document is available on -line through the City's Website, <htlp: / /www.cilyofdenton.com >. FISCAL INFORMATION The 2014 -15 Proposed Budget totals $908,269,746 in estimated resources and $907,776,543 in estimated expenditures. EXHIBITS 1. Notice of Public Hearing on Budget Respectfully submitted: Chuck Springer, 349 -8260 Director of Finance City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File M ID 14 -0409, Version: 1 Prepared by: Antonio Puente, Jr. Assistant Director of Finance City of Denton Page 2 of 2 Printed on 8/15/2014 powo and by I ogiFfl ar nvl Exhibit 1 NOTICE OF PUBLIC HEARING ON BUDGET The City Council for the City of Denton, Texas, will hold a public hearing on the Fiscal Year 2014 -15 Annual Program of Services (Budget), on Tuesday, August 19, 2014 at 6:30 p.m. in the City Council Chambers at City Hall, located at 215 East McKinney Street in Denton, Texas, 76201. The meeting will be held for the purpose of receiving community input on the Budget. THIS BUDGET WILL RAISE MORE PROPERTY TAXES THAN LAST YEAR'S BUDGET BY $596419834 OR 11.72% AND OF THAT AMOUNT $192929895 IS TAX REVENUE TO BE RAISED FROM NEW PROPERTY ADDED TO THE TAX ROLL THIS YEAR. All interested citizens are encouraged to attend and express their views. City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com I EN ",I N File #: CA14 -0001, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Planning and Development CMIACM: John Cabrales, Jr. Date: August 19, 2014 SUBJECT Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for a Comprehensive Plan Amendment from a "Neighborhood Centers" future land use designation to an "Employment Centers" future land use designation on approximately 2.35 acres of land generally located on the south side of Morse Street, approximately 200 feet west of Woodrow Lane and 425 feet east of Baldwin Street; and providing for a penalty in the maximum amount of $2,000.00 for violations, thereof, severability and an effective date. (CA14 -0001) The Planning and Zoning Commission recommended approval of this request (5 -0). BACKGROUND The subject property is an approximately 2.35 acre parcel of land located near the intersection of Morse Street and Woodrow Lane. This property has been historically zoned for single - family residential since its incorporation into the city limits in the 1950s; however, commercial and industrial growth to the north, east, and south have encroached over the decades. The applicant, Lee Allison, is requesting to change the future land use designation to "Employment Centers" to facilitate a rezoning to Employment Centers Industrial (EC- I). In addition to the future land use designation change request, the applicant has also submitted a zoning change request (Z14- 0004). The zoning change request is to change the zoning from NR -4 to EC -I. The future land use designation request must be approved prior to considering the zoning change request. According to the applicant, if both requests are approved this would allow the existing business to the east along Woodrow Lane room to expand towards the west. Staff sent 17 certified notices of the public hearing to property owners within 200 feet of the subject property and 70 courtesy notices to residents within 500 feet of the property. As of this writing, staff has received three responses in favor of the request. The applicant also held a neighborhood meeting at which two residents attended. Discussion at the meeting primarily centered on the applicant's intent for the property. OPTIONS 1. Approve as submitted. 2. Approve subject to conditions. 3. Deny. 4. Postpone consideration. 5. Table the item. City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: CA14 -0001, Version: 1 RECOMMENDATION The Planning and Zoning Commission recommends approval of this request (5 -0). The Development Review Committee recommends approval of this request. ESTIMATED SCHEDULE OF PROJECT Not Applicable. PRIOR ACTION /REVIEW (Council, Boards, Commissions) At the July 23, 2014, meeting, the Planning and Zoning Commission recommended approval of this request. FISCAL INFORMATION Not Applicable. BID INFORMATION Not Applicable. EXHIBITS 1. Staff Analysis 2. Site Location /Aerial Map 3. Future Land Use Map - Existing 4. Future Land Use Map - Proposed 5. Zoning Map - Existing 6. Zoning Map - Proposed 7. Light Industrial Around Subject Property 8. North Texas Research Park Employment Center 9. Applicant Narrative CPA 10. Notification Information Map 11. Site Photos 12. Planning & Zoning Commission, July 23, 2013, Draft Minutes 13. Draft Ordinance Respectfully submitted: Brian Lockley, AICP, CPM Director, Planning and Development Prepared by: Michael J. Bell Associate Planner City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl Exhibit 1 Staff Analysis CITY OF DENTON DEVELOPMENT REVIEW COMMITTEE STAFF REPORT P &Z Date: July 23, 2014 TYPE: Denton Plan Amendment CC Date: August 19, 2014 PROJECT #: CA14 -0001 Project Number: CA14 -0001 Request: To change the future land use designation of a 2.38 acre property from "Existing Land Use" to "Employment Center." This request is in conjunction with a rezoning from Neighborhood Residential 4 (NR -4) to Employment Center Industrial (EC -I). Applicant: Lee Allison Allison Engineering Group 4401 N I -35, Suite 102 Denton, TX 76207 Property Owner: Location: Size: Zoning Designation: Future Land Use: Case Planner: DRC Recommendation: Summary of Analysis: Mark & Mary Beth Marshall 6489 Stags Leap Road Sanger, TX 76266 On the south side of Morse Street, approximately 200 feet west of Woodrow Lane and 425 east of Baldwin Street. 2.38+ Neighborhood Residential 4 (NR -4) Existing Land Use Michael J. Bell The Development Review Committee (DRC) recommends approval of CA14 -0001. According to the future land use map of the Denton Plan, the subject property is currently designated as "Existing Land Use." As part of the 1999 Denton Plan, this designation was primarily applied to portions of the city with established, residential land use patterns. Changing the future land use designation of these areas should require an extra level of scrutiny to ensure no negative impacts are placed upon surrounding neighborhoods. To provide context of the requested change, a brief history of zoning in the area is necessary (see Exhibit 7). The lot at 1800 Morse St., similar to adjacent properties to the west, is a deep and narrow remnant of the area's rural past. These residential lots were subdivided into their current configurations by the Blagg family in 1950 and were located at the far southeast edge of the city limits in 1960. Aerial photographs of the immediate area suggest it remained largely rural until the area to the south around Shady Oaks Drive and Woodrow Lane began developing with light industrial uses in the 1960s. The areas to the north and east of the property quickly followed with light industrial zoning in the 1970s and 1980s. Over time these industrial properties collectively combined to create what the 1999 Denton Plan refers to as The North Texas Research Park Employment Center. In 1995, the property immediately adjacent to the east was rezoned from single - family to light industrial and subdivided for commercial uses. At that time, city leaders appeared cautious of the compatibility of light industrial uses next to the existing single - family and applied conditions to the zoning that prohibited certain uses, restricted access to Morse Street and buffered along the western property line. These protection measures are in still in place, but the conditions of the zoning were removed with city -wide rezoning in 2002. As a result of these changes over time, the subject property has become encompassed by light industrial to the north, east. This may have contributed to the house on the subject property and the house owned by Denton Housing Authority becoming unoccupied. In 2001, the Denton Housing Authority purchased the two properties immediately to the west of the subject property. Plans for the property are unknown at this time. These factors indicate the property is an area in transition and is not suitable for "vigorous preservation and protection" as required by its "Existing Land Use" future land use designation. The likely future of this property is either it's assembled with properties to the west in order to create a new single - family subdivision or it's assembled with the surrounding North Texas Research Park Employment Center. Staff is supportive of its incorporation into the Employment Center for the following reasons: 1. The property is adjacent to Employment Center to the north, east, and south. The industrial lots along Woodrow Lane are some of the smallest lot depths in the entire North Texas Research Park Employment Center and would benefit from room to expand. Should these lots expand onto the subject property, A Type -D buffer (30 ft. planted strip with trees and shrubs) would be required along the western property line adjacent to the remaining NR -4. This buffer was not a code requirement at the time of their rezoning in 1995, and would address the buffering concerns the City Council originally conditioned in the 1995 rezoning. Additionally, expansion of the structure may trigger additional compliance with existing regulations, such as parking lot landscaping, tree canopy coverage, building standards, etc., under the Expansion Applicability Table in Subchapter 35.13.3 of the Denton Development Code (DDC). 2. If the property were to remain Existing Land Use, it would likely become sandwiched between the future Denton Housing Authority project and existing commercial uses to the east. This configuration would no longer be conducive to maximizing its potential of eight single - family dwelling units. The 2013 taxable value of the properties along Woodrow zoned Employment Center Industrial (EC -I) in comparison with the property value of the subject property zoned Neighborhood Residential 4 (NR -4) shows there is greater potential value in its transition to Employment Center rather preservation of its existing use: Address Zoning Acreage Taxable Value City Property Tax City Sales Tax 1800 Morse St. NR -4 2.38 $74,036 $510.66 N/A 892 -1008 Woodrow Ln. EC -I 2.00 $1,349,991 $9,312.92 Per Subchapter 35.3.3.13.3 of the Denton Development Code, Denton Plan amendments shall address the impact of the proposed change on the following: 1. The existing land use pattern surrounding the property and the possible impact on existing or future development or uses that in accordance with existing regulations. The existing land use pattern surrounding the property predominantly consists of Employment Center uses. Approval of the proposed amendment would incorporate this property into the North Texas Research Park Employment Center that currently borders the property to the north, east, and south. To the west are two large -lot, single - family residential properties located between the site and the Willowcreek subdivision. These properties are owned by the Denton Housing Authority and would benefit from the Type -D buffer required for an industrial use. 2. The possible creation of an isolated district unrelated to adjacent and nearby districts; Approval of the proposed amendment would incorporate this property into the North Texas Research Park Employment Center that currently borders the property to the north, east, and south. No isolated districts would result. 3. The population density in order to facilitate the adequate provision of transportation, water, sewer, schools, parks, public convenience, and other public requirements; The proposed amendment would have little effect on the current population density in the area and the City as a whole. Water, wastewater, sewer, and other public requirements are currently available to the site. Potential expansion of the commercial business to the east may trigger them to wholly or partially conform to current regulations. 4. The cost to the City and other governmental entities in providing, improving, increasing, or maintaining public utilities, schools, streets, and other public safety measures. Development of the site would not create significant increases in the cost to maintain public assets. S. The possible impact on the environment, including but not limited to, drainage, soil erosion and sedimentation, flooding, air quality and water quality. Platting of the property to facilitate commercial development would require drainage, erosion, and flooding controls. The small size of the amendment request would likely net negligible changes to air and water quality. There are no Environmentally Sensitive Areas on or near the site. 6. Whether there are substantial reasons why the property cannot be used in according with existing zoning or that property by the future land use map; and The subject property and two properties immediately to the west contain single - family residences on deep, rectangular lots. Development of single - family subdivisions at the maximum permitted density would require land assembly and would likely result in a small, isolated subdivision adjacent to the commercial properties. 7. The action shall be made with reasonable consideration of the character of the district and its peculiar suitability for particular uses, and with a view of conserving the value of buildings and encouraging the most appropriate use of land throughout the City. The property in its current configuration is unlikely to develop with any uses other than an individual, single - family residence. It may be better utilized to facilitate the expansion of the neighboring employment center and the potential benefits it provides to the surrounding community. Findings of Fact 1. The request is for a Comprehensive Plan Amendment from "Neighborhood Center" to "Employment Center" future land use designation and a Zoning Amendment from a Neighborhood Residential 4 (NR -4) to an Employment Center Industrial (EC -I) zoning district on approximately 2.38 acres. 2. Project History: 1. The property was zoned NR -4 under city -wide rezoning in 2002. 2. Prior to the 2002 city -wide rezoning, the site was zoned Single - family 7 (SF -7). 3. Denton Plan: 1. The Future Land Use Category of the property is "Existing Land Use." The applicant proposes to amend the future land use category to "Employment Centers" to facilitate a rezoning from NR -4 to EC -I. 2. According to the Denton Plan, within established residential areas, new development should respond to existing development with compatible land uses, patterns, and design standards. The plan recommends that existing neighborhoods within the city be vigorously protected and preserved. 3. According to the Denton Plan, Employment Centers are intended to provide locations for a variety of workplaces, including limited light manufacturing uses, research and development activities, corporate facilities, offices, and institutions. Employment centers are also intended to accommodate secondary uses that complement or support the primary workplace uses, such as hotels, restaurants, convenience shopping, and child -care. 4. According to the Denton Plan, Employment Centers are also intended to: a) Encourage the development of office and business workplaces in close proximity to housing, civic, and recreational uses; b) Promote excellence in the design and construction of buildings, outdoor spaces, transportation facilities, and streetscapes; C) Direct the development of workplaces consistent with the availability of public facilities and services; and, d) Continue the vitality and quality of life in adjacent neighborhoods 5. The site is within the North Texas Research Park Employment Center. The Denton Plan defines this center as the area past Woodrow Lane on the west and past Mayhill on the east, with Spencer Road as the southern boundary, and the floodplain between Loop 288 and Woodrow as the northern boundary. 11 Existing Site Conditions: 1. The site is currently developed with a single - family residence. Adjacent land uses include a single - family residence to the west and commercial uses to the east and south. The property across Morse Street to the north is also developed with commercial uses. 2. City -wide there are approximately 4,870.8 acres located within an NR -4 zoning district and approximately 1,217.3 acres are zoned EC -I. 3. Adjacent zoning districts include NR -4 to the west and the EC -I to the north, east, and south. 4. Land uses within 1/4 mile radius of the site include approximately 156.71 acres; of which 79.69 acres are commercial, 31.15 are residential, 14.6 are undeveloped, 14.23 acres are institutional, 10.95 are industrial, 4.18 are transportation, and 1.88 acres are other land uses. 5. Development of the site with commercial or institutional uses would require a Type -C buffer along the property's western property line to buffer the existing single - family house. A Type -C buffer includes a 15 ft. planted strip with a combination of six evergreen and deciduous trees and 25 shrubs per 100 linear - feet. 6. Development of the site with industrial uses would require a Type -D buffer along the property's western property line to buffer the existing single - family house and Type -B buffers along the property's eastern and southern property lines to buffer the existing commercial uses. A Type -D buffer includes a 30 ft. planted strip that includes a combination of eight evergreen and deciduous trees and 20 shrubs per 100 linear -feet. A Type -B buffer includes a 10 ft. planted strip that includes a combination of five evergreen and deciduous trees and 30 shrubs per 100 linear feet. 7. There are no Environmentally Sensitive Areas (ESA) on site. 5. Infrastructure: 1. The site is not platted. Preliminary and final platting is required prior to any additions /improvements to the property and prior to the issuance of building permits. 2. Water is available by connecting to an existing 6 -inch main along Morse Street. The City plans to replace the existing 6 -in. main along Morse Street with a new 12 -inch main by summer 2014. 3. Sewer is available via connecting to the existing 8 -inch gravity main along Woodrow Lane and the 8 -inch gravity main along Morse Street. 4. Morse Drive is classified as a Commercial Mixed Use Collector with an ultimate right -of -way of 73 ft. Dedication of right -of -way may be required prior to any development. Construction of 8 ft. sidewalks will be required along Morse Street. 6. An overall grading and drainage study is required. Offsite drainage construction may also be required. 7. Electric service will be provided by Denton Municipal Electric (DME). Development Review Committee Based upon the information provided by the applicant and a recent site visit, the Development Review Committee finds that the request IS CONSISTENT with the surrounding land uses and general character of the area, IS CONSISTENT with the Denton Plan, and IS CONSISTENT with the Denton Development Code. 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 ofDenton, shall be considered to be binding upon the applicant, provided such comments are not at variance with the Denton Plan, Denton Development Code or other development regulations in effect at the time of development. Surrounding Zoning Designations and Current Land Use Activity: Northwest: North: Northeast: Neighborhood Residential 4 (NR -4) Employment Center Employment Center (Residential/Single- Family) Industrial (EC -I) Industrial (EC -I) (Commercial) (Commercial) West: East: Neighborhood Residential 4 (NR -4) Employment Center (Residential/Single- Family) Industrial (EC-1) (Commercial) Southwest: South: Southeast: Employment Center Employment Center Employment Center Industrial (EC -I) Industrial (EC -I) Industrial (EC -I) (Commercial) (Commercial) (Commercial) Source: City of Denton Geographical Information System and site visit by City staff Summary of Surrounding Zoning Designations and Current Land Use Activity: The subject property is currently zoned NR -4 and is developed with a single - family residence. Surrounding zoning districts include NR -4 to west and EC -I to the north, east, and south. Land uses within 1/4 mile radius of the site include approximately 156.71 acres; of which 79.69 acres are commercial, 31.15 are residential, 14.6 are undeveloped, 14.23 acres are institutional, 10.95 are industrial, 4.18 are transportation, and 1.88 acres are other land uses. Comprehensive Plan: The future land use designation of the property is "Existing Land Use." The goal of this category in the Denton Plan is to vigorously protect and preserve existing neighborhoods. This property is not part of an existing neighborhood, but rather a remnant of the area's agricultural past. A single - family home exists on the property but is currently vacant and in poor repair. A change from "Existing Land Use" to "Employment Center" would likely facilitate the expansion of light manufacturing and other commercial uses onto the property. According to the Denton Plan, Employment Centers are intended to provide locations for a variety of workplaces, including limited light manufacturing uses. This would provide workplaces and employment services in close proximity to other existing neighborhoods to the west. Nearest Fire, and EMS Station: Name of Station Approximate Distance From Fire /EMS I Station 1, 332 E. Hickory St. f 1.61 mi. Source: City of Denton GIS, Fire Department, and EMS Water and Wastewater Demand and Capacity: A. Estimated Demand: Subject Property Estimated Im act Analysis 2.38 f acres Proposed Demand Adequate to Serve (Yes or No) Potable Water 4 (peak) Yes Consumption (GPD) Wastewater 4 (peak) Yes Generation (GPD) B. Available Capacity: Water is available from existing 6 -inch water mains along Morse Street and Woodrow Lane. These mains have adequate available capacity to serve the proposed future land use designation and corresponding zoning change. Sewer is available via an existing 8 -inch gravity main along Woodrow Lane and the existing 8 -inch gravity main along Morse Street. C. CIP Planned Improvements: The City of Denton CIP plans to replace the existing 6 -inch water main along Morse Street in 2014. Roadways /Transportation Network: A. Estimated Demand: Subject Property Estimated Im act Analysis 2.38 f acres Proposed Demand Adequate to Serve (Yes or No) Average Annual 1,442 Yes Daily Trips (AADT) PM Peak Hour Trips 144 Yes B. Available Capacity: Morse Street has the capacity to accommodate this development. C. Roadway Conditions: Morse Street is classified as an improved perimeter street. D. CIP Planned Improvements: Morse Street will be reconstructed in conjunction with the CIP project to replace the 6 -inch water main. Environmental Conditions: A. There are no Environmentally Sensitive Areas on site. Park Facilities: Martin Luther King Park is 1,034 linear feet to the northwest. It is a 5 acre park that offers 1 Recreation Center, 1 Backstop, 2 Bleachers, 4 Benches, 1 Bicycle Rack, 2 Drinking Fountains, 1 Multi- purpose Turf Fields, 99 Parking Spaces, 4 Picnic Tables, 1 Playgrounds, Security Lighting, 2 Soccer / Rugby Goals, and 2 Shade Structures. Woodrow Open Space is an 8.8 acre undeveloped land holding 1,340 linear north of this parcel. Fred Moore Park is 10 acre park 2,850 linear feet northwest of this property and it hosts:) Annex building, 1 Backstops, 2 Basketball Multipurpose courts , 6 Bleachers,) Bridge, 6 Benches, 1 Restroom Buildings, 1 Outdoor Stage, 2 Drinking Fountains, 3 Grills, 31 Parking Spaces, 20 Picnic Tables, 2 Playgrounds, Security Lighting, 2 Pavilions, 1 Swing Courts, 0.83 miles of Concrete Trails. Carl Young is 3,171 northwest of the property. It is a 9.8 acre park with the following amenities: 1 Basketball Multipurpose court, 2 Benches. 1 Drinking Fountains, 2 Soccer / Rugby Goals, 1 Playground and 1 swing, and 0.29miles of Concrete Trails. Mack Park is 4,070 linear feet to the north. This park is a 21.626 acre park that has 3 Baseball Fields, 1Basketball Multipurpose court( Bicycle polo — yes bicycle polo court), 11 Bleachers, 3 Benches, 2 Concession / Restroom Buildings, 2 Drinking Fountains,) Grill, 191 Parking Spaces, 9 Picnic Tables, 2 Playgrounds, Security Lighting, 1 Pavilion, and 1 Swing. I Exhibit 11 Site Photos Facing south from Morse Street towards subject property. Facing south from Morse Street towards subject property. Facing north from subject property across Morse Street. Building adjacent to the east of the subject property. Exhibit 12 July 23, 2014, P &Z Minutes 5. PUBLIC HEARING: Lockley stated items 5A and 5B would be heard together as one item. The items would be voted on separately. Lockley introduced Bell. This request is to consider making a recommendation to City Council regarding a change in the future land use designation of 2.38 acres from Existing Land Use to Employment Center. This request is also to consider making a recommendation to City Council regarding a rezoning of the same 2.38 acres from Neighborhood Residential -4 to Employment Center Industrial. The subject site is located on the south side of Morse Street approximately 200 feet west of Woodrow Lane and east of Baldwin Street. The purpose of the change would be to allow westward expansion of existing businesses located along Woodrow Lane. The site is historically zoned for single - family. The adjacent properties to the north, east, and south have been rezoned to allow light industrial uses over time. The adjacent properties to the west remain single - family zoning. Bell stated staff has made three major determinations: 1. There is adequate public infrastructure capacity to serve the site. 2. However, the unique circumstances of the site make it Neighborhood Centers an inappropriate future land use designation. And 3. Community Mixed Use Center is the most appropriate future land use designation. Staff sent out 17 Public Hearing notices to property owners within 200 feet of the subject site, and 70 courtesy notices to property owners within 500 feet of the subject site. At this time staff has received two returned responses in favor of this request. Staff recommends approval of this request. Bell stated the applicant is present. Conner questioned if the house on the subject site would be removed. Bell stated the applicant can answer that question. Lee Allison, Allison Engineering Group, 44011-35 4102, Denton, Texas Allison stated Mark Marshall, the property owner is also present, and Scott Richer. Allison stated they are trying to acquire the site get the property zoned, replat the property to allow the existing sites to extend to the west. There would be a buffer on the back side of the buildings. This would require a 30 foot buffer. This would give the property owners the opportunity to expand their businesses. Allison stated the property owners would be able to remain at their buildings since they have already invested so much into their properties. The property to the west of the subject site is owned by the Housing Authority. A neighborhood meeting was held, and the Housing Authority was present. The applicant is hoping the expansions could provide upgrades to the aesthetics. Allison thanked the Commission. Allison added the house on the site would be removed. Taylor questioned if the owners at Woodrow Lane and Morse Street are multiple owners. Allison stated those are all multiple owners. Taylor questioned the requirement of a drive -way on Morse Street. Earl Escobar stated yes, this would be a requirement. Escobar stated Morse Street would be a mixed -use collector street. At this time the street is currently a residential connector. Taylor questioned if a 500 foot distance requirement would be required from the existing intersection. Escobar stated it depends on the development. Upon the development of the subject site it would require access onto Morse Street. Schaake opened the Public Hearing for Agenda Items 5A and 5B. There was no one to speak on the item. Schaake closed the Public Hearings. Commissioner Thom Reece Motioned, Commissioner Frank Conner seconded to approve Agenda Item 5A as staff submitted. Motion approved (5 -0). B. Hold a public hearinz and consider making a recommendation to City Council regarding a rezoning of approximately 2.38 acres from Neighborhood Residential 4 (NR -41 to Employment Center Industrial (EC -1). The subject property is eg nerally located on the south side of Morse Street, approximately 200 feet west of Woodrow Lane and 425 east of Baldwin Street. The site is located within a Neighborhood Residential 4 (NR -4) zoninu district. Z14 -0004, Marshall Properly, Mike Bell) Agenda Item 5B was heard with Agenda Item 5A. Schaake opened the Public Hearing for Agenda Item 5B. There was no one to speak on this item. Schaake closed the Public Hearing. Commissioner Devin Taylor motioned, Commissioner Frank Conner seconded to approve Agenda Item 5B as staff submitted. Motion approved (5 -0). s:Uegahour documents \ordinances \14 \ca14- OOOI.docx Exhibit 13 Draft Ordinance AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A COMPREHENSIVE PLAN AMENDMENT FROM A "NEIGHBORHOOD CENTERS" FUTURE LAND USE DESIGNATION TO AN "EMPLOYMENT CENTERS" FUTURE LAND USE DESIGNATION ON APPROXIMATELY 2.35 ACRES OF LAND GENERALLY LOCATED ON THE SOUTH SIDE OF MORSE STREET, APPROXIMATELY 200 FEET WEST OF WOODROW LANE AND 425 FEET EAST OF BALDWIN STREET; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; PROVIDING A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. (CA14 -0001) WHEREAS, Lee Allison (Allison Engineering Group) has applied for a Comprehensive Plan Amendment to change the future land use designation from "Neighborhood Centers" to "Employment Centers" on approximately 2.35 acres of land legally described in Exhibit "A ", attached hereto and incorporated herein by reference (hereinafter, the "Property "); and WHEREAS, on July 23, 2014, the Planning and Zoning Commission concluded a public hearing as required by law, and recommended approval of the Comprehensive Plan Amendment; and WHEREAS, on August 19, 2014, the City Council concluded a public hearing as required by law, and finds that the request meets and complies with all substantive and procedural standards set for in Section 35.3.3 of the Denton Development Code, and is consistent with the Denton Plan and the Denton Development Code; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference and found to be true. SECTION 2. The future land use designation for the Property is hereby changed from "Neighborhood Center" to "Employment Center." Notwithstanding the attached real property description, the property being re- designated includes all property to the centerline of all adjacent street rights -of -way. SECTION 3. The City's official future land use map is amended to show the change in future land use designation. SECTION 4. 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 the provisions or applications, and to this end the provisions of this ordinance are severable. sAlegal \our documents \ordinances \14 \ca14- OOOl.docx SECTION 5. 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 6. This ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record - Chronicle, a daily newspaper published in the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this the day of , 2014 CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY r; BY: sAlegal \our documents \ordinances \14 \cal4- OOOl.docx Exhibit A Legal Description STATE OF TEXAS COUNTY OF DENTON BEING ALL THAT CERTAIN TRACT OR PARCEL OF LAND SITUATED IN THE WILLIAM R. TEAGUE SURVEY, ABSTRACT NUMBER 1266, CITY OF DENTON, DENTON COUNTY, TEXAS AND BEING ALL OF A TRACT OF LAND DESCRIBED IN A DEED FROM ETHEL BLAGG TO PAUL BLAGG, IRENE MCNETT AND J.W. BLAGG, SR. AS RECORDED, DENTON COUNTY, TEXAS AND SUBJECT TRACT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT A 3" METAL FENCE POST FOUND ON THE SOUTH LINE OF MORSE STREET FOR THE NORTHEAST CORNER OF A CALLED 5.105 ACRE TRACT OF LAND DESCRIBED IN A DEED TO DENTON HOUSING AUTHORITY, AS RECORDED IN VOLUME 4840, PAGE 1039, REAL PROPERTY RECORDS AND THE NORTHWEST CORNER OF THE HEREIN DESCRIBED TRACT; THENCE SOUTH 68 DEGREES 52 MINUTES 43 SECONDS EAST WITH THE SOUTH LINE OF SAID MORSE STREET AND THE NORTH LINE OF SAID BLAGG TRACT A DISTANCE OF 161.90 FEET TO A' /2" IRON ROD FOUND FOR THE NORTHEAST CORNER THEREOF AND THE NORTHWEST CORNER OF A 0.054 ACRE R.O.W. DEDICATION AS SHOWN ON WOODROW LANE BUSINESS PARK, AN ADDITION TO THE CITY OF DENTON AS RECORDED BY A PLAT THEREOF IN CABINET M, PAGE 5, PLAT RECORDS IN SAID COUNTY; THENCE SOUTH 00 DEGREES 53 MINUTES 10 SECONDS WEST WITH THE WEST LINE THEREOF AND THE EAST LINE OF SAID BLAGG TRACT PASSING AT 19.07 FEET A Y2" IRON ROD FOUND FOR THE NORTHWEST CORNER OF LOT 7, BLOCK A, OF SAID ADDITION AND CONTINUING ALONG SAID COURSE ALONG OR NEAR A FENCE LINE A TOTAL DISTANCE OF 647.69 FEET TO A CAPPED IRON ROD FOUND FOR THE SOUTHWEST CORNER OF LOT I, BLOCK A, OF SAID ADDITION ON THE NORTH LINE OF A LOT A, BLOCK ONE OF WOODROW LANE ADDITION, RECORDED IN CABINET D, PAGE 203, PLAT RECORDS AND THE SOUTHEAST CORNER OF SAID BLAGG TRACT; THENCE SOUTH 89 DEGREES 50 MINUTES 15 SECONDS WEST ALONG OR NEAR A FENCE LINE WITH THE SOUTH LINE THEREOF AND THE NORTH LINE OF SAID LOT A, A DISTANCE OF 150.40 FEET TO A' /2" IRON ROD FOUND IN A TREE FOR THE SOUTHWEST CORNER OF SAID BLAGG TRACT AND THE SOUTHEAST CORNER OF SAID 5.105 ACRE TRACT; THENCE NORTH 00 DEGREES 45 MINUTES 41 SECONDS EAST ALONG OR NEAR A FENCE LINE WITH THE EAST LINE THEREOF AND THE WEST LINE OF SAID BLAGG TRACT A DISTANCE OF 706.44 FEET TO PLACE OF BEGINNING ENCLOSING 2.35 ACRES OF LAND, MORE OR LESS. Exhibit 2 Site Location/Aerial Map Legend Site r Of DENFON Streets q4 Dppmtfmlni 0 30 so 120 DENTON Feet Exhibit 3 Future Land Use Designation - Existing 869 820 O V �� 1815 O 901 O O 1700 - 905 .:..1706 �. - - - -- 909 913 892 917> 921 925, Existing Land Use 896 929 1001 900 SITE 1710 Employment Center 923 1005'` 904 1009 O 1013' 1000 ° O O �. 1017 1004 2401 1021: 1008 1100 -1112 1751 1116 -1124 2001 � Legend Q Site w*E Existing Land Use S � �- Of Ill��lh�llllllllllllllllllllllll����iiiiiiiiiiiiiii�����lllllllll @Il�lllllllllllllllllllltl��� yIIIIII�IpI F�XOkllbg0Mq X4,4 q �,�N��9ArfifYtli:Mnb -(AS Employment Center 0 30 60 120 .w. eo,� a�., �,� �.NW�,�.. . Exhibit 4 Future Land Use Map - Proposed Legend N Site r Of ce Employment Center DENFON qM Dppmtflwn� -(AS Existing Land Use 0 30 60 120 DENTON Feet Exhibit 5 Zoning Map - Existing Legend A",", 0 Site EC-1 W E u o mo Of � I��Ih�llllllllllllllllllll�lllllllllllllllllllllllll illlllllll @Il�lllllllllllllllllllltlll p o, y� X W W q, pp q� V N R -4 EC —C 0 30 s JT IIIII,� Feet .NIIIW� Exhibit 6 Zoning Map - Proposed Legend v Q Site EC-1 mo Of � DENFON I�Ilhllllllllllllllllllll�ll������iiiiiiiiiiiiiii��������lllllllll @Il�lllllllllllllllililltl�i� EC -C VIII NR-4 0 0 s 120 ��� Exhibit 7 Light Industiral Around Subject Property Legend 1969 1983 1970 111111 1995 w E °° ��a DENFON �Ilhllllllllllllllllllll�llllllllllllllllllll �lllllllll�llllllllllllllllllll 1114 1979 Illlllllllllllllllllllllllllllllll 2002 9 � �� w- Nrkubv' iiMV XdN q',�N�'p'J�tlw'QuYtliv7rb {. -US 1973 0 65 130 26Feet m .. Exhibit 8 North Texas Research Park Employment Center Legend Site r Of DENFON NTRP Employment Center mo 0 ass 970 1,940 DEN TON Feet HIS01 1 Y M-t) Exhibit 9 Applicant Narrative www.ac-grp.cong 4401 K 1- , StAte 102 - Denton, TX 76207- ff 1ce- 940.380.9453 - TBPE Firm #!: F.7898 ,41 lriI3, 201-4 City olDenton Planning Department City I tall West 221 N Flin St. DQntork. I exas 76201 Re: Compreliensive Plan Cliange Application Woodrov,v L.ane Business Park Fxpansi,on I SW C ornor of Woodrow Lane mid Morse Street Pro-ject Narrative AD,') P CI( "11401 Cireetings: We are reCILICSting that the C'ompreflensive Plan be modified to diange the FLItUre I and Use fi-om Existing to Employment Center, 'I'lic site Is located directly behind 7 lots on W4.)odrowr Laric arid soutil, of, Morse stiv�el, The 7 lots are zoned EC-I and are all developed, The site is owned by Mark atid Mar�y Bedi Marsliall, Mark also owns the lot on the hard corner. 'I'lic 6 C011tigUOUq IVOI)CAY MMICB ter the South llwe expressed as desire to purchase property 1"rorli Mark and / �,,,iry Beth and to, expand their sites to the WeSt IIA0,-Uld iIICJLJSiVC 0FflIC site under consideration. The property useq oil the north, east and s0t](tl "JI-e 111J11j)10)r'mei-n C'enlers. Fhe property use on the west vacant and Is toned NR-4. 1here is as sinole family lionae oil this tracl r1kal, will be lt� demolished oi convened to ernf)loyment use. The single property inimediately lo lhe west consists of` 2,45 acres, accommodates one single 1"amily residerice and is mviled IIV IIIC I)CM011 HOUShIg Authorjol% The )HA also owns another 16 acres to the )vest. 0Tie w1ableadvamage of'diangirqg the comprehensive jflan and zoning is fliat any irriprovemerits '10 tile expanded sites will require the appropriate landscape buGers between the zoning di.MI-iCIS/1,411d LISCS. The existinp, buildings were construcled bel'orc such landscape bul'Yers Nv• -e MrJUiNd and would only, be required it the buildings were SUbstantillrlhll exlmndcd, Cvlorse Street aj)pears to be constructed to its planned section. Allison Engineering Group, Iric. PLImling CrmylmunUses - Designing div Systernsl hat �*,rvel'hern Pilo, rMC-/Owqi is" A I I " Access will be one drive on Morse Street and the existing, drlves from Woodrow Lane, I-Ile site sh.�q)es froai F" to W at a amde ofabout 4.5�,�'O, It has a nouribic amotint ofirccs, The site is served by existing 6 in is water and 8 Inch saintary scwvcr lines in Nvoudl'inv I 11-1c and Morse Street. Utility service is anticipated to be accomplished hy extending [he: existing sei°vices to the expanded sites tca the west. A storm sewer will [)e necessary to carry storm I'lows front the soudi to thie north, to Morse Stret,;t aild then to the existilig improved channel lo the west, The exIS611g SyStC111 a111-lst be evahmted to determ ine its capacity and the need for deleation. The proposed land use is for Entploymeni Centel's (p)artictdarkr the expansion of existing businesses). A concept site plan is included Nvith the application. The applicant desires to develop the site M pi Malliler a',' generally depicted in the concept site l)lan. 0 Solid waste will utiliz.0 1,11C CNislinu cofledio'-)11 ► Electric will be via the DME, + I he site is not encumbered by a FFINA [I'loodplain or all FISA, 4 Each itevv site will be subJect to the Expansion Apj-,illcahllit; Table 11' iind wilen they exp,and. We kw k forvvard to [lie ITC report mid working together to help determine om effective p-cwQss l"or the developuicia oftfiQ site Respect fLd ly SUbmilled., 411b` tm Etj-i'neeri 11 Pto 6'j oul"), life ra Lee K. Allison, P.E- FN S 11 E' Page 2 ad 2 Allison E'nyineerinq Group, Inc. .. . .. . ............... . . . . P[Mlflill)j" COMHMT6fiCS Designing Ow Symons Thm Servi,, "Flwm P, hmw is 41) 1 "'I'm 'haH 'Ion-''( City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com I EN ",I N File #: Z14 -0004, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Planning and Development CMIACM: John Cabrales, Jr. Date: August 19, 2014 SUBJECT Hold a public hearing and consider adoption of an ordinance, of the City of Denton, Texas, providing for a zoning change from a Neighborhood Residential 4 (NR -4) zoning district and use classification to an Employment Center Industrial (EC -I) zoning district and use classification on approximately 2.35 acres of land generally located on the south side of Morse Street, approximately 200 feet west of Woodrow Lane and 425 feet east of Baldwin Street; and providing for a penalty in the maximum amount of $2,000.00 for violations, thereof, severability and an effective date. (Z14 -0004) The Planning and Zoning Commission recommended approval of this request (5 -0). BACKGROUND The subject property is an approximately 2.35 acre parcel of land located near the intersection of Morse Street and Woodrow Lane. This property has been historically zoned for single - family residential since its incorporation into the city limits in the 1950s; however, commercial and industrial growth to the north, east, and south have encroached over the decades. The applicant, Lee Allison, is requesting to change the zoning from NR -4 to EC -I. In addition to the zoning change request, the applicant has also submitted a future land use designation change request (CA 14- 0001). The future land use designation change request is to change the future land use designation from "Existing Land Use" to "Employment Centers." The future land use designation request must be approved prior to considering the zoning change request. According to the applicant, if both requests are approved, this would potentially allow the existing businesses along Woodrow Lane to the east of the subject property, the room to expand toward the west. Staff sent 17 certified notices of the public hearing to property owners within 200 feet of the subject property and 70 courtesy notices to residents within 500 feet of the property. As of this writing, staff has received three responses in favor of the request. The applicant also held a neighborhood meeting at which two residents attended. Discussion at the meeting primarily centered on the applicant's intent for the property. OPTIONS 1. Approve as submitted. 2. Approve subject to conditions. 3. Deny. City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: Z14 -0004, Version: 1 4. Postpone consideration. 5. Table item. RECOMMENDATION The Planning and Zoning Commission recommends approval of this request (5 -0). The Development Review Committee recommends approval of this request. ESTIMATED SCHEDULE OF PROJECT Not Applicable. PRIOR ACTION /REVIEW (Council, Boards, Commissions) July 23, 2014 - The Planning and Zoning Commission recommended approval of this request. FISCAL INFORMATION Not Applicable. BID INFORMATION Not Applicable. EXHIBITS 1. Staff Analysis 2. Site Location /Aerial Map 3. Future Land Use Map - Existing 4. Future Land Use Map - Proposed 5. Zoning Map - Existing 6. Zoning Map - Proposed 7. Light Industrial Around Subject Property 8. North Texas Research Park Employment Center 9. Applicant Narrative 10. Notification Information Map 11. Site Photos 12. July 23, 2014, P &Z Minutes 13. Draft Ordinance Respectfully submitted: Brian Lockley, AICP, CPM Director, Planning and Development Prepared by: Michael J. Bell Associate Planner City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl Exhibit 1 Staff Analysis CITY OF DENTON DEVELOPMENT REVIEW COMMITTEE STAFF REPORT P &Z Date: July 23, 2014 TYPE: Rezoning CC Date: August 19, 2014 PROJECT #: Z14 -0004 Project Number: Z14 -0004 Request: To change the zoning of a 2.35 acre property from Neighborhood Residential 4 (NR -4) to Employment Center Industrial (EC -I). This request is in conjunction with a change of future land use designation from "Neighborhood Center" to "Employment Center." Applicant: Lee Allison Allison Engineering Group 4401 N I -35, Suite 102 Denton, TX 76207 Property Owner: Mark & Mary Beth Marshall 6489 Stags Leap Road Sanger, TX 76266 Location: On the south side of Morse Street, approximately 200 feet west of Woodrow Lane and 425 east of Baldwin Street. Size: 2.38+ Zoning Designation: Neighborhood Residential 4 (NR -4) Future Land Use: Existing Land Use Case Planner: Michael J. Bell DRC Recommendation: The Development Review Committee (DRC) recommends approval of Z14 -0004. According to the future land use map of the Denton Plan, the subject property is currently designated as "Existing Land Use." As part of the 1999 Denton Plan, this designation was primarily applied to portions of the city with established, residential land use patterns. Changing the future land use designation of these areas should require an extra level of scrutiny to ensure no negative impacts are placed upon surrounding neighborhoods. To provide context of the requested change, a brief history of zoning in the area is necessary (see Exhibit 7). The lot at 1800 Morse St., similar to adjacent properties to the west, is a deep and narrow remnant of the area's rural past. These residential lots were subdivided into their current configurations by the Blagg family in 1950 and were located at the far southeast edge of the city limits in 1960. Aerial photographs of the immediate area suggest it remained largely rural until the area to the south around Shady Oaks Drive and Woodrow Lane began developing with light industrial uses in the 1960s. The areas to the north and east of the property quickly followed with light industrial zoning in the 1970s and 1980s. Over time these industrial properties collectively combined to create what the 1999 Denton Plan refers to as The North Texas Research Park Employment Center. In 1995, the property immediately adjacent to the east was rezoned from single - family to light industrial and subdivided for commercial uses. At that time, city leaders appeared cautious of the compatibility of light industrial uses next to the existing single - family and applied conditions to the zoning that prohibited certain uses, restricted access to Morse Street and buffered along the western property line. These protection measures are in still in place, but the conditions of the zoning were removed with city -wide rezoning in 2002. As a result of these changes over time, the original large -lot properties in this area have become encompassed by light industrial to the north, east, and south and by traditional subdivisions to the west. This may have contributed to the house on the subject property and the house owned by Denton Housing Authority becoming unoccupied. In 2001, the Denton Housing Authority purchased the two properties immediately to the west of the subject property. Plans for the property are unknown at this time. These factors indicate the property is an area in transition and is not suitable for "vigorous preservation and protection" as required by its "Existing Land Use" future land use designation. The likely future of this property is either it's assembled with properties to the west in order to create a new single - family subdivision or it's assembled with the surrounding North Texas Research Park Employment Center. Staff is supportive of its incorporation into the Employment Center for the following reasons: 1. The property is adjacent to Employment Center to the north, east, and south. The industrial lots along Woodrow Lane are some of the smallest lot depths in the entire North Texas Research Park Employment Center and would benefit from room to expand. Should these lots expand onto the subject property, A Type -D buffer (30 ft. planted strip with trees and shrubs) would be required along the western property line adjacent to the remaining NR -4. This buffer was not a code requirement at the time of their rezoning in 1995, and would address the buffering concerns the City Council originally conditioned in the 1995 rezoning. Additionally, expansion of the structure may trigger additional compliance with existing regulations, such as parking lot landscaping, tree canopy coverage, building standards, etc., under the Expansion Applicability Table in Subchapter 35.13.3 of the Denton Development Code (DDC). 2. If the property were to remain Existing Land Use, it would likely become sandwiched between the future Denton Housing Authority project and existing commercial uses to the east. This configuration would no longer be conducive to maximizing its potential of eight single - family dwelling units. 3. The 2013 taxable value of the properties along Woodrow zoned Employment Center Industrial (EC -I) in comparison with the property value of the subject property zoned Neighborhood Residential 4 (NR -4) shows there is greater potential value in its transition to Employment Center rather preservation of its existing use: Address Zoning Acreage Taxable Value City Property Tax City Sales Tax 1800 Morse St. NR -4 2.38 $74,036 $510.66 N/A 892 -1008 Woodrow Ln. EC -I 2.00 $1,349,991 $9,312.92 Per Subchapter 35.3.4.13 of the Denton Development Code, Zoning Amendments may be approved when the following standards are met: 1. The proposed rezoning conforms to the Future Land Use element of The Denton Plan. If CA14- 0001for the change in future land use designation to "Employment Center" is approved by City Council, the proposed zoning of EC -I would conform to the Future Land Use Map and goals of the North Texas Research Center. 2. The proposed rezoning facilitates the adequate provision of transportation, water, sewers, schools, parks, and other public requirements of public convenience.; Adequate public infrastructure and other requirements of public convenience are available to serve the subject property. Findings of Fact 1. The request is for a Comprehensive Plan Amendment from "Neighborhood Center" to "Employment Center" future land use designation and a Zoning Amendment from a Neighborhood Residential 4 (NR -4) to an Employment Center Industrial (EC -I) zoning district on approximately 2.38 acres. 2. Project History: 1. The property was zoned NR -4 under city -wide rezoning in 2002. 2. Prior to the 2002 city -wide rezoning, the site was zoned Single - family 7 (SF -7). 3. Denton Plan: 1. The Future Land Use Category of the property is "Existing Land Use." The applicant proposes to amend the future land use category to "Employment Centers" to facilitate a rezoning from NR -4 to EC -I. 2. According to the Denton Plan, within established residential areas, new development should respond to existing development with compatible land uses, patterns, and design standards. The plan recommends that existing neighborhoods within the city be vigorously protected and preserved. 3. According to the Denton Plan, Employment Centers are intended to provide locations for a variety of workplaces, including limited light manufacturing uses, research and development activities, corporate facilities, offices, and institutions. Employment centers are also intended to accommodate secondary uses that complement or support the primary workplace uses, such as hotels, restaurants, convenience shopping, and child -care. 4. According to the Denton Plan, Employment Centers are also intended to: a) Encourage the development of office and business workplaces in close proximity to housing, civic, and recreational uses; b) Promote excellence in the design and construction of buildings, outdoor spaces, transportation facilities, and streetscapes; C) Direct the development of workplaces consistent with the availability of public facilities and services; and, d) Continue the vitality and quality of life in adjacent neighborhoods 5. The site is within the North Texas Research Park Employment Center. The Denton Plan defines this center as the area past Woodrow Lane on the west and past Mayhill on the east, with Spencer Road as the southern boundary, and the floodplain between Loop 288 and Woodrow as the northern boundary. 11 Existing Site Conditions: 1. The site is currently developed with a single - family residence. Adjacent land uses include a single - family residence to the west and commercial uses to the east and south. The property across Morse Street to the north is also developed with commercial uses. 2. City -wide there are approximately 4,870.8 acres located within an NR -4 zoning district and approximately 1,217.3 acres are zoned EC -I. 3. Adjacent zoning districts include NR -4 to the west and the EC -I to the north, east, and south. 4. Land uses within 1/4 mile radius of the site include approximately 156.71 acres; of which 79.69 acres are commercial, 31.15 are residential, 14.6 are undeveloped, 14.23 acres are institutional, 10.95 are industrial, 4.18 are transportation, and 1.88 acres are other land uses. 5. Development of the site with commercial or institutional uses would require a Type -C buffer along the property's western property line to buffer the existing single - family house. A Type -C buffer includes a 15 ft. planted strip with a combination of six evergreen and deciduous trees and 25 shrubs per 100 linear - feet. 6. Development of the site with industrial uses would require a Type -D buffer along the property's western property line to buffer the existing single - family house and Type -B buffers along the property's eastern and southern property lines to buffer the existing commercial uses. A Type -D buffer includes a 30 ft. planted strip that includes a combination of eight evergreen and deciduous trees and 20 shrubs per 100 linear -feet. A Type -B buffer includes a 10 ft. planted strip that includes a combination of five evergreen and deciduous trees and 30 shrubs per 100 linear feet. 7. There are no Environmentally Sensitive Areas (ESA) on site. 5. Infrastructure: 1. The site is not platted. Preliminary and final platting is required prior to any additions /improvements to the property and prior to the issuance of building permits. 2. Water is available by connecting to an existing 6 -inch main along Morse Street. The City plans to replace the existing 6 -in. main along Morse Street with a new 12 -inch main by summer 2014. 3. Sewer is available via connecting to the existing 8 -inch gravity main along Woodrow Lane and the 8 -inch gravity main along Morse Street. 4. Morse Drive is classified as a Commercial Mixed Use Collector with an ultimate right -of -way of 73 ft. Dedication of right -of -way may be required prior to any development. Construction of 8 ft. sidewalks will be required along Morse Street. 6. An overall grading and drainage study is required. Offsite drainage construction may also be required. 7. Electric service will be provided by Denton Municipal Electric (DME). Development Review Committee Based upon the information provided by the applicant and a recent site visit, the Development Review Committee finds that the request IS CONSISTENT with the surrounding land uses and general character of the area, IS CONSISTENT with the Denton Plan, and IS CONSISTENT with the Denton Development Code. 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 ofDenton, shall be considered to be binding upon the applicant, provided such comments are not at variance with the Denton Plan, Denton Development Code or other development regulations in effect at the time of development. Surrounding Zoning Designations and Current Land Use Activity: Northwest: North: Northeast: Neighborhood Residential 4 (NR -4) Employment Center Employment Center (Residential/Single- Family) Industrial (EC -I) Industrial (EC -I) (Commercial) (Commercial) West: East: Neighborhood Residential 4 (NR -4) Employment Center (Residential/Single- Family) Industrial (EC-1) (Commercial) Southwest: South: Southeast: Employment Center Employment Center Employment Center Industrial (EC -I) Industrial (EC -I) Industrial (EC -I) (Commercial) (Commercial) (Commercial) Source: City of Denton Geographical Information System and site visit by City staff Summary of Surrounding Zoning Designations and Current Land Use Activity: The subject property is currently zoned NR -4 and is developed with a single - family residence. Surrounding zoning districts include NR -4 to west and EC -I to the north, east, and south. Land uses within 1/4 mile radius of the site include approximately 156.71 acres; of which 79.69 acres are commercial, 31.15 are residential, 14.6 are undeveloped, 14.23 acres are institutional, 10.95 are industrial, 4.18 are transportation, and 1.88 acres are other land uses. Categories Residential Land Use Agriculture P (Proposed) P Livestock L(7) L(7) Single Family Dwellings P N Accessory Dwelling Units SUP N Attached Single Family Dwellings SUP N Dwellings Above Businesses N N Live /Work Units N N Duplexes L(3) N Community Homes For the Disabled P N Group Homes N N Multi - Family Dwellings N N Fraternity or Sorority House N N Dormitory N N Manufactured Housing Developments N N Commercial Land Use Categories Home Occupation P (Proposed) N Sale of Products Grown on Site N N Hotels N P Motels N N Bed and Breakfast N N Retail Sales and Service N L(18) Movie Theaters N N Restaurant or Private Club N P Drive - through Facility N P Professional Services and Offices N P Quick Vehicle Servicing N P Vehicle Repair N P Auto and RV Sales N P Laundry Facilities N P Equestrian Facilities N N Outdoor Recreation P N Indoor Recreation N P Conference /Convention Centers N SUP Major Event Entertainment N P Commercial Parking Lots N P Administrative or Research Facilities N P Broadcasting of Production Studio N P Sexually Oriented Business N N Temporary Uses L(38) L(38) Industrial Land Use Categories Printing / Publishing N (Proposed) P Bakeries N P Manufacture of Non - odoriferous Foods N P Feed Lots N N Food Processing N N Light Manufacturing N P Heavy Manufacturing N N Wholesale Sales N P Wholesale Nurseries N L(32) Distribution Center /Warehouse, General N L(34) Warehouse, Retail N L(34) Self- service Storage N P Construction Materials Sales N P Junk Yards and Auto Wrecking N N Wrecker Services and Impound Lots N SUP L(29) Kennels N P Veterinary Clinics N P Sanitary Landfills, Commercial Incinerators, Transfer Stations N N Gas Wells SUP L(27) Limitations L(1) = Accessory dwelling units are permitted, subject to the following additional criteria: 1. The proposal must conform with the overall maximum lot coverage and setback requirements of the underlying zone. 2. The maximum number of accessory dwelling units shall not exceed 1 per lot. 3. The maximum gross habitable floor area (GHFA) of the accessory residential structure shall not exceed 50% of the GHFA of the primary residence on the lot, and shall not exceed 1000 sq. ft. GHFA unless the lot meets the requirements of L(1).5. 4. One additional parking space shall be provided that conforms to the off - street parking provisions of this Chapter. 5. The maximum gross habitable floor area (GHFA) of the accessory residential structure shall not exceed 50% of the GHFA of the primary residence on the lot, where the lot size is equal to or greater than ten acres in size. An SUP is not required for such an accessory residential structure where the lot size is equal to or greater than ten acres. Institutional Land Use Categories Basic Utilities L(25) (Proposed) P Community Service N P Parks and Open Space P P Churches P P Semi - public, Halls, Clubs, and Lodges SUP P Business / Trade School N P Adult or Child Day Care SUP P Kindergarten, Elementary School SUP N Middle School N N High School N N Colleges N P Hospital N N Elderly Housing N N Medical Centers N N Cemeteries N N Mortuaries N P WECS (Free- standing Monopole Support Structure) SUP SUP WECS (Building- mounted) SUP SUP Limitations L(1) = Accessory dwelling units are permitted, subject to the following additional criteria: 1. The proposal must conform with the overall maximum lot coverage and setback requirements of the underlying zone. 2. The maximum number of accessory dwelling units shall not exceed 1 per lot. 3. The maximum gross habitable floor area (GHFA) of the accessory residential structure shall not exceed 50% of the GHFA of the primary residence on the lot, and shall not exceed 1000 sq. ft. GHFA unless the lot meets the requirements of L(1).5. 4. One additional parking space shall be provided that conforms to the off - street parking provisions of this Chapter. 5. The maximum gross habitable floor area (GHFA) of the accessory residential structure shall not exceed 50% of the GHFA of the primary residence on the lot, where the lot size is equal to or greater than ten acres in size. An SUP is not required for such an accessory residential structure where the lot size is equal to or greater than ten acres. L(3) = In part of a subdivision of 2 acres or more, up to 2 units may be attached by a common wall if the lots which contain the attached structures do not abut the perimeter lot lines of a subdivision, the individual common wall units are on separate lots designed to be sold individually, and they comply with the Subchapter 13. Additionally, units must have the appearance of a single family residence from the street. L(7)= Limited to two (2) animals on parcels one (1) to three (3) acres in size. Additional animals may be added at a rate of one per each acre over three. L(18) = Uses are permitted only in association with Gas Stations and are limited to no more than 5,000 square feet of gross floor area except adjacent to I -35 then uses are limited to 10,000 square feet of gross floor area. L(25) = If proposed use is within 200 feet of a residential zone, approval is subject to a Specific Use Permit. L(27) = Must comply with the provisions of Subchapter 19, Gas Well Drilling and Production. L(29) = Wrecker Services and Impound Lots must comply with the following provisions: 1. The subject lot shall comply with the provisions of the Texas Administrative Code, regarding Vehicle Storage Facilities. 2. Lot Screening: All stored vehicles shall be opaquely screened from all rights -of -way and residential uses and zoning districts. 3. Parking and vehicle storage areas associated with wrecker services and impound lots activities are not allowed within undeveloped floodplain, water - related habitat, and riparian buffer environmentally sensitive areas (ESA). 4. Best management practices addressing storm water quality must be implemented and maintained on site. Management practices must attain the pollutant removal capabilities recommended for parking areas in the Integrated Storm Water Management (iSWM) manual, as published by the North Central Texas Council of Governments, or similar practices consistent with low impact development (LID) approaches. L (32) = Not allowed to locate adjacent to an arterial and within 1,000 feet as measured from the nearest property line of a sexually oriented business to the nearest property line of any other sexually oriented business, adult or child daycare, any elderly housing facility, hospital, any residential use, public open space. L (34) = Permitted with no more than 150,000 gross square feet and 8 truck docks. All docks or loading bays shall be to the rear or side of the structure and not viewable from the street. The buffering standards for outdoor storage shall apply, both to any outdoor storage activity and to the loading docks. L(38) = Must meet the requirements of Section 35.12.9. General Regulations NR-4 EC-1 ... Minimum lot area (square feet) 7,000 2,500 Minimum lot width 50 feet 50 feet Minimum lot depth 80 feet 50 feet Minimum front yard setback 20 feet 10 feet Minimum side yard 6 feet None Minimum side yard adjacent to a street 10 feet 10 feet 30 ft., plus 1 foot for each Minimum yard abutting a single - family N/A foot of use or district building height about 30 ft. Minimum rear yard 10 feet None Maximum lot coverage 60% 85% Maximum FAR None 0.75 Minimum landscaped area 40% 15% Maximum building height 40 feet 65 feet Maximum WECS height 55 feet 75 feet Comprehensive Plan: The future land use designation of the property is "Existing Land Use." The goal of this category in the Denton Plan is to vigorously protect and preserve existing neighborhoods. This property is not part of an existing neighborhood, but rather a remnant of the area's agricultural past. A single - family home exists on the property but is currently vacant and in poor repair. A change from "Existing Land Use" to "Employment Center" would likely facilitate the expansion of light manufacturing and other commercial uses onto the property. According to the Denton Plan, Employment Centers are intended to provide locations for a variety of workplaces, including limited light manufacturing uses. This would provide workplaces and employment services in close proximity to other existing neighborhoods to the west. Nearest Fire, and EMS Station: Name of Station I Approximate Distance From Fire /EMS I Station 1, 332 E. Hickory St. f 1.61 mi. Source: City of Denton GIS, Fire Department, and EMS Water and Wastewater Demand and Capacity: A. Estimated Demand: Subject Property Estimated Im act Analysis 2.38 f acres Proposed Demand Adequate to Serve (Yes or No) Potable Water 4 (peak) Yes Consumption (GPD) Wastewater 4 (peak) Yes Generation (GPD) B. Available Capacity: Water is available from existing 6 -inch water mains along Morse Street and Woodrow Lane. These mains have adequate available capacity to serve the proposed future land use designation and corresponding zoning change. Sewer is available via an existing 8 -inch gravity main along Woodrow Lane and the existing 8 -inch gravity main along Morse Street. C. CIP Planned Improvements: The City of Denton CIP plans to replace the existing 6 -inch water main along Morse Street in 2014. Roadways /Transportation Network: A. Estimated Demand: Subject Property Estimated Im act Analysis 2.38 f acres Proposed Demand Adequate to Serve (Yes or No) Average Annual 1,442 Yes Daily Trips (AADT) PM Peak Hour Trips 144 Yes B. Available Capacity: Morse Street has the capacity to accommodate this development. C. Roadway Conditions: Morse Street is classified as an improved perimeter street. D. CIP Planned Improvements: Morse Street will be reconstructed in conjunction with the CIP project to replace the 6 -inch water main. Environmental Conditions: A. There are no Environmentally Sensitive Areas on site. Park Facilities: Martin Luther King Park is 1,034 linear feet to the northwest. It is a 5 acre park that offers 1 Recreation Center, 1 Backstop, 2 Bleachers, 4 Benches, 1 Bicycle Rack, 2 Drinking Fountains, 1 Multi- purpose Turf Fields, 99 Parking Spaces, 4 Picnic Tables, 1 Playgrounds, Security Lighting, 2 Soccer / Rugby Goals, and 2 Shade Structures. Woodrow Open Space is an 8.8 acre undeveloped land holding 1,340 linear north of this parcel. Fred Moore Park is 10 acre park 2,850 linear feet northwest of this property and it hosts: ) Annex building, 1 Backstops, 2 Basketball Multipurpose courts , 6 Bleachers,) Bridge, 6 Benches, 1 Restroom Buildings, 1 Outdoor Stage, 2 Drinking Fountains, 3 Grills, 31 Parking Spaces, 20 Picnic Tables, 2 Playgrounds, Security Lighting, 2 Pavilions, 1 Swing Courts, 0.83 miles of Concrete Trails. Carl Young is 3,171 northwest of the property. It is a 9.8 acre park with the following amenities: 1 Basketball Multipurpose court, 2 Benches. 1 Drinking Fountains, 2 Soccer / Rugby Goals, 1 Playground and 1 swing, and 0.29miles of Concrete Trails. Mack Park is 4,070 linear feet to the north. This park is a 21.626 acre park that has 3 Baseball Fields, 113asketball Multipurpose court( Bicycle polo — yes bicycle polo court), 11 Bleachers, 3 Benches, 2 Concession / Restroom Buildings, 2 Drinking Fountains,) Grill, 191 Parking Spaces, 9 Picnic Tables, 2 Playgrounds, Security Lighting, 1 Pavilion, and 1 Swing. I Exhibit 11 Site Photos Facing south from Morse Street towards subject property. Facing south from Morse Street towards subject property. Facing north from subject property across Morse Street. Building adjacent to the east of the subject property. Exhibit 12 July 23, 2014, P &Z Minutes 5. PUBLIC HEARING: Lockley stated items 5A and 5B would be heard together as one item. The items would be voted on separately. Lockley introduced Bell. This request is to consider making a recommendation to City Council regarding a change in the future land use designation of 2.38 acres from Existing Land Use to Employment Center. This request is also to consider making a recommendation to City Council regarding a rezoning of the same 2.38 acres from Neighborhood Residential -4 to Employment Center Industrial. The subject site is located on the south side of Morse Street approximately 200 feet west of Woodrow Lane and east of Baldwin Street. The purpose of the change would be to allow westward expansion of existing businesses located along Woodrow Lane. The site is historically zoned for single - family. The adjacent properties to the north, east, and south have been rezoned to allow light industrial uses over time. The adjacent properties to the west remain single - family zoning. Bell stated staff has made three major determinations: 1. There is adequate public infrastructure capacity to serve the site. 2. However, the unique circumstances of the site make it Neighborhood Centers an inappropriate future land use designation. And 3. Community Mixed Use Center is the most appropriate future land use designation. Staff sent out 17 Public Hearing notices to property owners within 200 feet of the subject site, and 70 courtesy notices to property owners within 500 feet of the subject site. At this time staff has received two returned responses in favor of this request. Staff recommends approval of this request. Bell stated the applicant is present. Conner questioned if the house on the subject site would be removed. Bell stated the applicant can answer that question. Lee Allison, Allison Engineering Group, 44011-35 4102, Denton, Texas Allison stated Mark Marshall, the property owner is also present, and Scott Richer. Allison stated they are trying to acquire the site get the property zoned, replat the property to allow the existing sites to extend to the west. There would be a buffer on the back side of the buildings. This would require a 30 foot buffer. This would give the property owners the opportunity to expand their businesses. Allison stated the property owners would be able to remain at their buildings since they have already invested so much into their properties. The property to the west of the subject site is owned by the Housing Authority. A neighborhood meeting was held, and the Housing Authority was present. The applicant is hoping the expansions could provide upgrades to the aesthetics. Allison thanked the Commission. Allison added the house on the site would be removed. Taylor questioned if the owners at Woodrow Lane and Morse Street are multiple owners. Allison stated those are all multiple owners. Taylor questioned the requirement of a drive -way on Morse Street. Earl Escobar stated yes, this would be a requirement. Escobar stated Morse Street would be a mixed -use collector street. At this time the street is currently a residential connector. Taylor questioned if a 500 foot distance requirement would be required from the existing intersection. Escobar stated it depends on the development. Upon the development of the subject site it would require access onto Morse Street. Schaake opened the Public Hearing for Agenda Items 5A and 5B. There was no one to speak on the item. Schaake closed the Public Hearings. Commissioner Thom Reece Motioned, Commissioner Frank Conner seconded to approve Agenda Item 5A as staff submitted. Motion approved (5 -0). B. Hold a public hearinz and consider making a recommendation to City Council regarding a rezoning of approximately 2.38 acres from Neighborhood Residential 4 (NR -41 to Employment Center Industrial (EC -1). The subject property is eg nerally located on the south side of Morse Street, approximately 200 feet west of Woodrow Lane and 425 east of Baldwin Street. The site is located within a Neighborhood Residential 4 (NR -4) zoninu district. Z14 -0004, Marshall Properly, Mike Bell) Agenda Item 5B was heard with Agenda Item 5A. Schaake opened the Public Hearing for Agenda Item 5B. There was no one to speak on this item. Schaake closed the Public Hearing. Commissioner Devin Taylor motioned, Commissioner Frank Conner seconded to approve Agenda Item 5B as staff submitted. Motion approved (5 -0). sAlegal \our documents \ordinances \14\zl4- 0004.docx Exhibit 13 Draft Ordinance ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE FROM A NEIGHBORHOOD RESIDENTIAL 4 (NR -4) ZONING DISTRICT AND USE CLASSIFICATION TO AN EMPLOYMENT CENTER INDUSTRIAL (EC -I) ZONING DISTRCT AND USE CLASSIFICATION ON APPROXIMATELY 2.35 ACRES OF LAND GENERALLY LOCATED ON THE SOUTH SIDE OF MORSE STREET, APPROXIMATELY 200 FEET WEST OF WOODROW LANE AND 425 FEET EAST OF BALDWIN STREET; AND PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; PROVIDING A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. (Z14 -0004) WHEREAS, Lee Allison (Allison Engineering Group) has applied for a zoning change on approximately 2.35 acres of land legally described in Exhibit "A ", attached hereto and incorporated herein by reference (hereinafter, the "Property ") from a Neighborhood Center 4 (NR -4) zoning district and use classification to an Employment Center Industrial (EC -I) zoning district and use classification; and WHEREAS, on July 23, 2014, the Planning and Zoning Commission concluded a public hearing as required by law, and recommended approval (5 -0) of the change in zoning district and use classification; and WHEREAS, on August 19, 2014, the City Council concluded a public hearing as required by law, and finds that the request meets and complies with all substantive and procedural standards set for in Section 35.3.4 of the Denton Development Code, and is consistent with the Denton Plan and the Denton Development Code; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference and found to be true. SECTION 2. The zoning district and use classification for the Property is hereby changed from Neighborhood Center 4 (NR -4) to Employment Center Industrial (EC -I). Notwithstanding the attached real property description, the property being re- designated includes all property to the centerline of all adjacent street rights -of -way. SECTION 3. The City's official zoning map is amended to show the change in the zoning district and use classification. s:Uegahour documents \ordinances \14\z14- 0004.docx SECTION 4. 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 the provisions or applications, and to this end the provisions of this ordinance are severable. SECTION 5. 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 6. This ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record - Chronicle, a daily newspaper published in the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this the day of , 2014. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY IS _• APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: sAlegal \our documents \ordinances \14\z14- 0004.docx Exhibit A Legal Description STATE OF TEXAS COUNTY OF DENTON BEING ALL THAT CERTAIN TRACT OR PARCEL OF LAND SITUATED IN THE WILLIAM R. TEAGUE SURVEY, ABSTRACT NUMBER 1266, CITY OF DENTON, DENTON COUNTY, TEXAS AND BEING ALL OF A TRACT OF LAND DESCRIBED IN A DEED FROM ETHEL BLAGG TO PAUL BLAGG, IRENE MCNETT AND J.W. BLAGG, SR. AS RECORDED, DENTON COUNTY, TEXAS AND SUBJECT TRACT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT A 3" METAL FENCE POST FOUND ON THE SOUTH LINE OF MORSE STREET FOR THE NORTHEAST CORNER OF A CALLED 5.105 ACRE TRACT OF LAND DESCRIBED IN A DEED TO DENTON HOUSING AUTHORITY, AS RECORDED IN VOLUME 4840, PAGE 1039, REAL PROPERTY RECORDS AND THE NORTHWEST CORNER OF THE HEREIN DESCRIBED TRACT; THENCE SOUTH 68 DEGREES 52 MINUTES 43 SECONDS EAST WITH THE SOUTH LINE OF SAID MORSE STREET AND THE NORTH LINE OF SAID BLAGG TRACT A DISTANCE OF 161.90 FEET TO A' /2" IRON ROD FOUND FOR THE NORTHEAST CORNER THEREOF AND THE NORTHWEST CORNER OF A 0.054 ACRE R.O.W. DEDICATION AS SHOWN ON WOODROW LANE BUSINESS PARK, AN ADDITION TO THE CITY OF DENTON AS RECORDED BY A PLAT THEREOF IN CABINET M, PAGE 5, PLAT RECORDS IN SAID COUNTY; THENCE SOUTH 00 DEGREES 53 MINUTES 10 SECONDS WEST WITH THE WEST LINE THEREOF AND THE EAST LINE OF SAID BLAGG TRACT PASSING AT 19.07 FEET A Y2 IRON ROD FOUND FOR THE NORTHWEST CORNER OF LOT 7, BLOCK A, OF SAID ADDITION AND CONTINUING ALONG SAID COURSE ALONG OR NEAR A FENCE LINE A TOTAL DISTANCE OF 647.69 FEET TO A CAPPED IRON ROD FOUND FOR THE SOUTHWEST CORNER OF LOT I, BLOCK A, OF SAID ADDITION ON THE NORTH LINE OF A LOT A, BLOCK ONE OF WOODROW LANE ADDITION, RECORDED IN CABINET D, PAGE 203, PLAT RECORDS AND THE SOUTHEAST CORNER OF SAID BLAGG TRACT; THENCE SOUTH 89 DEGREES 50 MINUTES 15 SECONDS WEST ALONG OR NEAR A FENCE LINE WITH THE SOUTH LINE THEREOF AND THE NORTH LINE OF SAID LOT A, A DISTANCE OF 150.40 FEET TO A' /2" IRON ROD FOUND IN A TREE FOR THE SOUTHWEST CORNER OF SAID BLAGG TRACT AND THE SOUTHEAST CORNER OF SAID 5.105 ACRE TRACT; THENCE NORTH 00 DEGREES 45 MINUTES 41 SECONDS EAST ALONG OR NEAR A FENCE LINE WITH THE EAST LINE THEREOF AND THE WEST LINE OF SAID BLAGG TRACT A DISTANCE OF 706.44 FEET TO PLACE OF BEGINNING ENCLOSING 2.35 ACRES OF LAND, MORE OR LESS. Exhibit 2 Site Location/Aerial Map Legend Site r Of DENFON Streets q4 Dppmtfmlni 0 30 so 120 DENTON Feet Exhibit 3 Future Land Use Designation - Existing 869 820 O V �� 1815 O 901 O O 1700 - 905 .:..1706 �. - - - -- 909 913 892 917> 921 925, Existing Land Use 896 929 1001 900 SITE 1710 Employment Center 923 1005'` 904 1009 O 1013' 1000 ° O O �. 1017 1004 2401 1021: 1008 1100 -1112 1751 1116 -1124 2001 � Legend Q Site w*E Existing Land Use S � �- Of Ill��lh�llllllllllllllllllllllll����iiiiiiiiiiiiiii�����lllllllll @Il�lllllllllllllllllllltl��� yIIIIII�IpI F�XOkllbg0Mq X4,4 q �,�N��9ArfifYtli:Mnb -(AS Employment Center 0 30 60 120 .w. eo,� a�., �,� �.NW�,�.. . Exhibit 4 Future Land Use Map - Proposed Legend N Site r Of ce Employment Center DENFON qM Dppmtflwn� -(AS Existing Land Use 0 30 60 120 DENTON Feet Exhibit 5 Zoning Map - Existing Legend A",", 0 Site EC-1 W E u o mo Of � I��Ih�llllllllllllllllllll�lllllllllllllllllllllllll illlllllll @Il�lllllllllllllllllllltlll p o, y� X W W q, pp q� V N R -4 EC —C 0 30 s JT IIIII,� Feet .NIIIW� Exhibit 6 Zoning Map - Proposed Legend v Q Site EC-1 mo Of � DENFON I�Ilhllllllllllllllllllll�ll������iiiiiiiiiiiiiii��������lllllllll @Il�lllllllllllllllililltl�i� EC -C VIII NR-4 0 0 s 120 ��� Exhibit 7 Light Industiral Around Subject Property Legend 1969 1983 1970 111111 1995 w E °° ��a DENFON �Ilhllllllllllllllllllll�llllllllllllllllllll �lllllllll�llllllllllllllllllll 1114 1979 Illlllllllllllllllllllllllllllllll 2002 9 � �� w- Nrkubv' iiMV XdN q',�N�'p'J�tlw'QuYtliv7rb {. -US 1973 0 65 130 26Feet m .. Exhibit 8 North Texas Research Park Employment Center Legend Site r Of DENFON NTRP Employment Center mo 0 ass 970 1,940 DEN TON Feet Exhibit 9 Applicant Narrative In,g rc wmw.ae-,qrp. coin 4401 N. k35, Suite 102 - Denton, TX 76207- Office: 940.380.9453 - 1'BPE Firm #: F-,7898 February 26, 2014 City of Denton Planning Department City flail West 221 N Elm St. Denton, Texas 76201 Re: Zoning Change Application Woodrow Lane Business Park Expansion SW Corner of Woodrow Lane and Morse Street Project Narrative AEG A: C0,1401 Greetings: We are requesting that the zoning for this site be changed to EC-1 from NR-4. The site is located directly behind 7 lots oil Woodrow Lane and south of Morse Street. The 7 lots are zoned EC-1 and are all developed. The site is owned by Mark and Mary Beth Marshall. Mark also owns the lot on the hard corner. The 6 contiguous property owners to the south have expressed a desire to purchase property from Mark and Mary Beth and to expand their sites to the west into and inclusive of the site under consideration. The property uses on the north, east and south are Employment Centers. The property use on the west vacant and is zoned NR-4. There is a single family home on this tract that will be demolished or converted to employment use. The single property immediately to the west consists of 2.45 acres, accommodates one single family residence and is owned by the Denton Housing Authority. The DHA also owns another 2.6 acres to the west. Morse Street appears to be constructed to its planned section. Access will be one drive on Morse Street and the existing drives frorn, Woodrow Lane. The site slopes from E to W at a. grade of about 4.5%. It has a notable amount of trees. The site is served by existing 6 inch water and 8 inch sanitary sewer lines in Woodrow Lane and Morse Street. Utility service is anticipated to be accomplished by extending the existing services to the expanded sites to the west. Page I of Allison L.'figineering Groulp, Inc. Nanning COMMUtlitiCS - Designing the SysternsThat serve 'n,( m P P)-o/„ (" v" ( ( 1 / P , )/ I bnholl A' mg ( m )/rIhmwo/ ( onMWIV lei 0i / 0 ", . '/ Is/ / \(p) I? MV— 0, A storm sewer will be necessary to carry storm flows fi -om the south to the north, to Morse Street and then to the existing improved channel to the west. The existing system must be evaluated to determine its capacity and the need for detention. The proposed land use is for Employment Centers (particularly the expansion of existing businesses). A concept site plan is included with the application. The applicant desires to develop the site in a manner as generally depicted in the concept site plan. * Solid waste will utilize the existing collection systems. * Electric will be via the LIME. * The site is not encumbered by a FE A, Floodplain or an ESA. Each new site will be subject to the Expansion Applicability Table if and when they expand. We look forward to the DRC report and working together to help determine an effective process for the development of the site. Respectfully submitted, Allison Digineering Group, Ine. Lee K. Allison, P.E., FNSPE Page 2 of 2 Allison Engineering Group, h7c. Planning Cominunities - F)esiglfi ng i lie systurns That Serve Then) r, 't ( , ec i" (r , I I J I ! I Jura / r 7, : C. ( " ", I ) ! , I � ) ) I 11 ( I I r ) � i I I I ) I i , / , ) , ,I, , , : I ( , (� j � ; ) I f � J 1'i � , , � , , 1� I : j � ) ! " ,_(10,. City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com I EN" " N File #: CA14 -0002, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Planning and Development CM/ ACM: John Cabrales, Jr. Date: August 19, 2014 SUBJECT Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for a Comprehensive Plan Amendment from an "Employment Centers" future land use designation to an "Industrial Centers" future land use designation on two tracts totaling approximately 131.7 acres of land. Tract 1 is generally located on the northwest corner of Western Boulevard and Jim Christal Road. Tract 2 is generally located on the east side of Western Boulevard, approximately 425 feet south of U.S. 380 and 1,700 feet north of Jim Christal Road; and providing for a penalty in the maximum amount of $2,000.00 for violations, thereof, severability and an effective date. (CA 14-0002) The Planning and Zoning Commission recommended approval of this request (5 -0). BACKGROUND The applicant is requesting a change to the future land use designation of two tracts along Western Boulevard from "Employment Centers" to "Industrial Centers." While similar, the primary difference between these two designations in the 1999 Denton Plan is the types of businesses they were designed to promote: Employment Centers are intended to provide locations for a variety of workplaces, including limited light manufacturing uses, research and development activities, corporate facilities, offices, and institutions. They are also intended to accommodate secondary uses that complement or support the primary workplace uses, such as hotels, restaurants, convenience shopping, and child -care. Industrial Centers are intended to provide locations for a variety of work processes and work places such as manufacturing, warehousing and distributing, indoor and outdoor storage, and a wide range of commercial and industrial operations. The industrial centers may also accommodate secondary and complementary uses such as convenience shopping and child -care centers. The applicant, Steven Homeyer, is requesting to change the future land use designation to "Industrial Centers" to facilitate a rezoning to Industrial Center General (IC -G). In addition, to the future land use designation change request, the applicant has also submitted a zoning change request (Z14- 0009). The zoning change request is to change the zoning from EC -C to IC -G. The future land use designation request must be approved prior to considering the zoning change request. According to the applicant, if both requests are approved this would allow the construction of a distribution center and warehouse distribution development. City of Denton Page 1 of 3 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: CA14 -0002, Version: 1 Staff is supportive of the proposed future land use designation change as it complies with goals and objectives of the Denton Plan outlined in the staff analysis and the City's intent for the Western Boulevard corridor. The purpose of Western Boulevard construction was to facilitate industrial growth in the western portion of the City. Staff sent 19 certified notices of the public hearing to property owners within 200 feet of the subject property and 24 courtesy notices to residents within 500 feet of the property. As of this writing, staff has received one response in favor of the request. OPTIONS 1. Approve as submitted. 2. Approve subject to conditions. 3. Deny. 4. Postpone consideration. 5. Table item. RECOMMENDATION The Planning and Zoning Commission recommends approval of this request (5 -0). The Development Review Committee recommends approval of this request. ESTIMATED SCHEDULE OF PROJECT Not Applicable. PRIOR ACTION /REVIEW (Council, Boards, Commissions) July 23, 2014 - The Planning and Zoning Commission recommended approval of this request. FISCAL INFORMATION Not Applicable. BID INFORMATION Not Applicable. F XHTRIT C 1. Staff Analysis 2. Site Location /Aerial Map 3. Future Land Use Map - Existing 4. Future Land Use Map - Proposed 5. Zoning Map - Existing 6. Zoning Map - Proposed 7. Airport Industrial Area City of Denton Page 2 of 3 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: CA14 -0002, Version: 1 8. FEMA /ESA Map 9. Letter From Applicant 10. Notification Information Map 11. Site Photos 12. July 23, 2014 P &Z Minutes 13. Draft Ordinance Respectfully submitted: Brian Lockley, AICP, CPM Director, Planning and Development Department Prepared by: Michael J. Bell Associate Planner City of Denton Page 3 of 3 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl Exhibit 1 Staff Analysis CITY OF DENTON DEVELOPMENT REVIEW COMMITTEE STAFF REPORT P &Z Date: July 23, 2014 TYPE: Denton Plan Amendment CC Date: August 19, 2014 PROJECT #: CA14 -0002 Project Number: CA 14-0002 Request: To change the future land use designation of two tracts equaling approximately 131.7 acres from "Employment Centers" to "Industrial Centers." This request is in conjunction with a rezoning from Employment Center Commercial (EC -C) to Industrial Center General (IC -G). Applicant: Steven Homeyer Homeyer Engineering, Inc. P.O. Box 294527 Lewisville, TX 75029 Property Owner: Wallace Davis, Jr. 14 Ashmere Ct. Dallas, TX 75225 Location: Tract 1 is located at the northwest corner of Western Boulevard and Jim Christal Rd. Tract 2 is located on the east side of Western Boulevard, approximately 425 feet south of U.S. 380 and 1,700 feet north of Jim Christal Rd. Size: Zoning Designation: Future Land Use: Case Planner: DRC Recommendation: Summary of Analysis: 131.7+ Employment Center Commercial (EC -C) Employment Centers Michael J. Bell The Development Review Committee (DRC) recommends approval of CA 14 -0002. The applicant is requesting to change the future land use designation of two tracts along Western Boulevard from "Employment Centers" to "Industrial Centers." While similar, the primary difference between these two designations in the 1999 Denton Plan is the types of businesses they were designed to promote: • Employment Centers are intended to provide locations for a variety of workplaces, including limited light manufacturing uses, research and development activities, corporate facilities, offices, and institutions. They are also intended to accommodate secondary uses that complement or support the primary workplace uses, such as hotels, restaurants, convenience shopping, and child -care. • Industrial Centers are intended to provide locations for a variety of work processes and work places such as manufacturing, warehousing and distributing, indoor and outdoor storage, and a wide range of commercial and industrial operations. The industrial centers may also accommodate secondary and complementary uses such as convenience shopping and child -care centers. Per Subchapter 35.3.3.B.3 of the Denton Development Code, Denton Plan amendments shall address the impact of the proposed change on the following: 1. The existing land use pattern surrounding the property and the possible impact on existing or future development or uses that in accordance with existing regulations. The existing land use pattern surrounding the properties to the west and south predominantly consists of undeveloped land and gas wells. These properties were once a single tract, but were divided by the construction of Western Boulevard in 2009. The purpose of constructing Western Boulevard was to facilitate industrial growth in the western portion of the city. A change to Industrial Centers would help achieve that growth. To the east of the properties is the Selwyn College Preparatory School, located on the site since 1961. To the north is a mix of commercial, institutional, and one single - family residence. Development of industrial uses on the subject property would require the applicable buffers to mitigate any potential nuisances created. The most intense industrial uses, such as heavy manufacturing, junk yards, landfills, commercial incinerators, and transfer stations would require further scrutiny through a Specific Use Permit. 2. The possible creation of an isolated district unrelated to adjacent and nearby districts; Approval of the request would incorporate these properties into the Industrial Centers that to the west, south, and east. An isolated Employment Centers district would be created to the southeast of the property. The applicant contacted this property owner for their consideration of joining the change in future land use designation. According to the applicant they were supportive, but unwilling to join in the application. 3. The population density in order to facilitate the adequate provision of transportation, water, sewer, schools, parks, public convenience, and other public requirements. The proposed amendment would facilitate the development of light industrial, distribution, warehousing, and supporting commercial uses to the west side of town providing employment opportunities to the residents of Denton. Water, wastewater, sewer, and other public requirements are currently available to the site and will be improved upon during development. The City has targeted the airport industrial area for investment in public infrastructure to support jobs and economic growth in Denton. 4. The cost to the City and other governmental entities in providing, improving, increasing, or maintaining public utilities, schools, streets, and other public safety measures. Development of the site would increase the cost of maintain utilities and streets in the area; however, Western Boulevard was recently constructed to facilitate economic and industrial growth in this area of the city. 5. The possible impact on the environment, including but not limited to, drainage, soil erosion and sedimentation, flooding, air quality and water quality. Platting of the property to facilitate commercial development would require drainage, erosion, and flooding controls of the Denton Development Code. 6. Whether there are substantial reasons why the property cannot be used in according with existing zoning or that property by the future land use map. The properties' current zoning designation of EC -C does not permit the type of distribution center development intended by the applicant. A change to "Industrial Centers" future land use designation would facilitate a rezoning to IC -G necessary to allow large - scale, distribution uses that are intended for the area. In addition, a rezoning to IC -G would allow distribution centers without limitations on size and the number of loading docks. 7. The action shall be made with reasonable consideration of the character of the district and its peculiar suitability for particular uses, and with a view of conserving the value of buildings and encouraging the most appropriate use of land throughout the City. The area of the city around Denton Enterprise Airport is primarily an Industrial Centers. The vision for this area is to encourage regional workplaces that take advantage of the city's airport and convenient access to I -35W to Fort Worth, I -35E to Dallas, and I -35N to Oklahoma City. The City has made investments into this area to attract large -scale industrial uses in this area. The proposed future land use designation and zoning change request would help facilitate those investments. Findings of Fact The request is for a Comprehensive Plan Amendment from "Employment Centers" to "Industrial Centers" future land use designation on approximately 131.7 acres. 2. Project History: The property was zoned Employment Center Commercial (EC -C) under city -wide rezoning in 2002. 2. Prior to the 2002 city -wide rezoning, the site was zoned Agricultural (A). 3. Denton Plan: The Future Land Use Category of the property is "Employment Centers." The applicant proposes to amend the future land use designation to "Industrial Centers" to facilitate a rezoning from EC -C to Industrial Center General (IC -G). 2. According to the Denton Plan, Employment Centers are intended to provide locations for a variety of workplaces, including limited light manufacturing uses, research and development activities, corporate facilities, offices, and institutions. They are also intended to accommodate secondary uses that complement or support the primary workplace uses, such as hotels, restaurants, convenience shopping, and child -care. According to the Denton Plan, Employment Centers are also intended to: a) Encourage the development of office and business workplaces in close proximity to housing, civic, and recreational uses; b) Promote excellence in the design and construction of buildings, outdoor spaces, transportation facilities, and streetscapes; C) Direct the development of workplaces consistent with the availability of public facilities and services; and, d) Continue the vitality and quality of life in adjacent neighborhoods. 4. Industrial Centers are intended to provide locations for a variety of work processes and work places such as manufacturing, warehousing and distributing, indoor and outdoor storage, and a wide range of commercial and industrial operations. The industrial centers may also accommodate secondary and complementary uses such as convenience shopping and child -care centers. 4. Existing Site Conditions: Tract I on the west side of Western Boulevard is undeveloped. Tract 2 is mostly partially undeveloped and partially developed with a gas well. Adjacent land uses include a prep school to the east, church and commercial uses to the north, a single - family residence to the northwest, and undeveloped to the west, south, and southeast. 2. Adjacent zoning districts include Industrial Center Employment (IC -E) to the west, IC -G to the south and southeast, Neighborhood Residential 2 (NR -2) to the east, and EC -I to the north. 3. Land uses within 1/4 mile radius of the site include approximately 445.44 acres; of which 312.72 are agricultural, 71.96 are institutional, 38.91 are residential, and 19.56 are commercial. 4. Development of the site with industrial uses would require a combination of Type -B and Type -D buffers along the property's northern and eastern property lines to buffer the adjacent uses. A Type -D buffer includes a 30 ft. planted strip that includes a combination of eight evergreen and deciduous trees and 20 shrubs per 100 linear -feet. A Type -B buffer includes a 10 ft. planted strip that includes a combination of five evergreen and deciduous trees and 30 shrubs per 100 linear feet. 5. The property contains Environmentally Sensitive Area Stream Buffers and FEMA floodplain. Compliance with Subchapter 17 of the Denton Development Code (DDC) and other applicable regulations will be required. 5. Infrastructure: 1. The site is currently platted with a gas well plat. An amending gas well plat will be required to shrink the plat size to allow surface development. A Preliminary and Final Plat will then be required prior to any additions /improvements to the property and prior to the issuance of building permits. 2. The water and sewer mains constructed along and through these properties shall conform to the layouts done as part of the Rayzor Westpark TIRZ study. Per that study, the following mains shall be constructed (at a minimum): a) 16 -inch water main along Western Boulevard, from the existing 20 -inch main along U.S. 380 to Jim Christal Road, thence eastward to applicant's east property line. b) 12 -inch gravity sewer main along Jim Christal Road from the existing 10- inch near applicant's west property line to Western Boulevard. C) 8 -inch gravity sewer line from Western Boulevard to applicant's east property line. 3. Western Boulevard is in process of being widened to a four -lane, divided Primary Arterial. 4. Construction of 5 ft. sidewalks will be required along Western Boulevard. Electric service will be provided by Denton Municipal Electric (DME). A main line overhead circuit will be required along Western Boulevard will be required to serve future development. Development Review Committee Based upon the information provided by the applicant and a recent site visit, the Development Review Committee finds that the request IS CONSISTENT with the surrounding land uses and general character of the area, IS CONSISTENT with the Denton Plan, and IS CONSISTENT with the Denton Development Code. 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 ofDenton, shall be considered to be binding upon the applicant, provided such comments are not at variance with the Denton Plan, Denton Development Code or other development regulations in effect at the time of development. Surrounding Zoning Designations and Current Land Use Activity: Northwest: North: Northeast: Industrial Center Employment Center Neighborhood Residential (NR -2) Employment (IC -E) Commercial (EC -C) l (Institutional/School) (Undevelope) (Commercial/Institutional) West: East: Industrial Center Neighborhood Residential 2 (NR -2) Employment (IC -E) (institutional/School) (Undeveloped /Gas Wells) Southwest: South: Southeast: Industrial Center General (IC -G) Industrial Center General (IC -G) Industrial Center General (IC -G) (Undeveloped /Gas Wells) (Undeveloped /Gas Wells) (Undeveloped /Gas Wells) Source: City of Denton Geographical Information System and site visit by City staff Summary of Surrounding Zoning Designations and Current Land Use Activity: The subject properties are currently zoned EC -C. Tract I is undeveloped. Tract 2 is partially undeveloped and partially developed with a gas well. Surrounding zoning districts include EC -C to the north, IC -E to the west, IC -G to the south and southeast, and NR -2 to the east. Land uses within 1/4 mile radius of the site include approximately 445.44 acres; of which 312.72 are agricultural, 71.96 are institutional, 38.91 are residential, and 19.56 are commercial. Comprehensive Plan: The future land use designation of the property is "Employment Centers." Employment Centers are intended to provide light manufacturing, research, office, and supportive commercial uses. The proposed change to Industrial Centers would change the vision of the properties to one of more intense manufacturing, distribution, and warehouse workplaces and would incorporate these properties into the Industrial Centers that centers around the Denton Enterprise Airport. Nearest Fire, and EMS Station: Name of Station Approximate Distance From Fire /EMS I Station 5, 2230 W. Windsor f 3.62 mi. Source: City of Denton GIS, Fire Department, and EMS Water and Wastewater Demand and Capacity: A. Estimated Demand: Subject Property Estimated Im act Analysis 131.7 f acres Proposed Demand Adequate to Serve (Yes or No Potable Water 696 (peak) Yes (pending exactions by Consumption (GPD) applicant listed below) Wastewater 627 (peak) Yes (pending exactions by Generation (GPD) applicant listed below) B. Available Capacity: The water and sewer mains constructed along and through these properties shall conform to the layouts done as part of the Rayzor Westpark TIRZ study. Per that study, the following mains shall be constructed (at a minimum): 16 -inch water main along Western Boulevard, from the existing 20 -inch main along U.S. 380 to Jim Christal Road, thence eastward to applicant's east property line. 12 -inch gravity sewer main along Jim Christal Road from the existing 10 -inch near applicant's west property line to Western Boulevard. 8 -inch gravity sewer line from Western Boulevard to applicant's east property line. C. CIP Planned Improvements: None. Roadways /Transportation Network: A. Estimated Demand: Subject Property Estimated Impact Analysis 2.38 f acres Proposed Demand Adequate to Serve (Yes or No) Average Annual 8,311 Yes Daily Trips (AADT) PM Peak Hour Trips 1,142 Yes B. Available Capacity: Western Boulevard has the capacity to accommodate this change in future land use designation. C. Roadway Conditions: Western Blvd. is classified as a partially improved Primary Major Arterial. It is currently a 2- lane roadway. Any development would require Western Blvd. to be widened along its frontage. D. CIP Planned Improvements: There are no City of Denton CIP projects in this area. TxDOT is currently widening U.S. 380 to the north. Environmental Conditions: A. The site contains FEMA floodplain and ESA Stream Buffers. Refer to Exhibit 8 for a map of Environmental Conditions. Park Facilities: Owsley Park is a 0.5 acre park located in the vicinity of UNT it hosts 1 Basketball Multipurpose court, 3 Benches, 1 Drinking Fountain, 2 Grills, on street parking, 8 Picnic Tables, 1 Playground, Security Lighting, 1 Pavilion. McKenna Park is an 18 acre park near Texas Health Hospital that includes 1 Basketball Multipurpose court, 6 Benches, 1 Drinking Fountain, 6 Grills, 14 Parking Spaces, 32 Picnic Tables, 1 Playground, Security Lighting, 3 Pavilions, 1 Swing. North Lakes Park is a 357 acre destination park at Bonnie Brae and Windsor. It includes 1 Annex building, 8 Backstops, 1 Basketball Multipurpose court, 40 Bleachers, Multiple bridges, 41 Benches, 4 concession / restroom buildings, an 18 hole Disc Golf course, 8 Drinking Fountains, 1 Driving Range, 1 Fishing Pier, 3 Football Fields,4 Grills, 2 Lakes, over 300 Parking Spaces, 8 Picnic Tables, 3 Playgrounds, Security Lighting,3 Pavilions, 1 Radio Control Aircraft Runway, 1 Rugby Field, 1 Sand Volleyball court,? Shade Structures, 9 Tennis Courts, 1.32 miles of Concrete Trails, 0.85 miles of Soft Surface Trails. Exhibit 10 Notification Information Map LEGEND SITE W_* E 200 ft. Buffer Boundary Of r DENFON C= 500 ft. Buffer Boundary s q4 DPPArtlflwn� -(AS 0 165 330 �0 Feet DENTON j I EMM In Favor j F I Exhibit 11 Site Photos Looping east from Western Boulevard towards Tract 2. Looping west from Western Boulevard towards Tract 1. Facing southeast from Western Boulevard towards well site. Looking south towards the intersection Western Blvd. and Jim Christal Rd. Exhibit 12 July 23, 2014, P &Z Minutes C. Hold a public hearing and consider making a recommendation to City Council regarding a rezoning of two tracts totaling approximately 131.7 acres from Employment Center Commercial (EC -C) to Industrial Center General (IC -G). Tract 1 is generally nerally located at the northwest corner of Western Boulevard and Jim Christal Road. Tract 2 is generally nerally located on the east side of Western Boulevard, aproximately 425 south of U.S. 380 and 1,700 feet north of Jim Christal Road. The site is located within an Employment Center Commercial (EC -C) zoning district. (Z14 -0009, Western Boulevard, Mike Bell) Lockley stated Agenda Items 5C and 5D would be heard as one presentation. The Agenda Items would be voted on separately. Agenda Item 5D would need to be voted on first. Lockley introduced Bell; Lockley stated Agenda Items 5C and 5D would be heard together as one presentation. Agenda Item 5D would need to be voted on prior to the vote of Agenda Item 5C. Bell stated this request is to consider making a recommendation to City Council regarding a change in future land use designation of 131.7 acres from Employment Centers to Industrial Centers. This request is also to consider making a recommendation to City Council regarding a rezoning of the same 131.7 acres from Employment Center Commercial (EC -C) to Industrial Center General (IC -G). Tract 1 is generally located on the northwest corner of Western Boulevard and Jim Christal Road. Tract 2 is generally located on the east side of Western Boulevard, approximately 425 feet south of U.S. Highway 380 and 1,700 feet north of Jim Christal Road. Bell stated Western Boulevard was installed by the City to promote industrial development around the airport. A majority of the surrounding properties are zoned for industrial uses since 2002. Staff has made three major determinations: 1. There is adequate public infrastructure capacity to serve the site. 2. However, the unique circumstances of the site make it Neighborhood Centers an inappropriate future land use designation. And 3. Community Mixed Use Center is the most appropriate future land use designation. Staff sent out 19 Public Hearing notices to property owners within 200 feet of the subject site, and 24 courtesy notices to property owners within 500 feet of the subject site. At this time staff has received one returned response in favor of this request. The Development Review Committee recommends approval of this request. Taylor questioned the buffering requirements. Bell stated they are currently based on institutional uses, which would be Type E buffer. Bell stated Tract 1 is adjacent to single - family residential, which would be a 30 foot buffer. Bell stated the applicant is present. Steve Homeyer, Homeyer Engineering Group, 206 Elm Street, Lewisville, Texas This is a small area the City is looking to try to get this type of development in. The first building would be approximately 170,000 square foot. There would be screening along the property lines. The south buildings, which are buildings two (2) and three (3), would be build in separate phases. This would be based on how the first development takes. Homeyer stated they would be utilizing landscaping for mitigation. The applicant provided conceptual plans to the Commissioners. The dock doors would be placed at the rear of the development and the interior of the development. This would prevent them from being visible from the adjacent properties. There was no further discussion. Schaake stated the proposed development is well put together. Schaake opened the Public Hearing for Agenda Items 5C and 5D. There was no one to speak on the items. Schaake closed the Public Hearing Items. Commissioner Thom Reece motioned, Commissioner Frank Conner seconded to vote first on Agenda Item 5D. Motion approved (5 -0). Agenda Item 5C was heard with Agenda Item 5D. Schaake opened the Public Hearing; there was no one to speak on the item. Schaake closed the Public Hearing. Commissioner Thom Reece motioned, Commissioner Frank Conner seconded to approve Agenda Item 5C. Motion approved (5 -0). s:Alegal\our documents \ordinances \14 \ca14- 0002.docx Exhibit 13 Draft Ordinance ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A COMPREHENSIVE PLAN AMENDMENT FROM AN "EMPLOYMENT CENTERS" FUTURE LAND USE DESIGNATION TO AN "INDUSTRIAL CENTERS" FUTURE LAND USE DESIGNATION ON TWO TRACTS TOTALING APPROXIMATELY 131.7 ACRES OF LAND; TRACT 1 IS GENERALLY LOCATED ON THE NORTHWEST CORNER OF WESTERN BOULEVARD AND JIM CHRISTAL ROAD. TRACT 2 IS GENERALLY LOCATED ON THE EAST SIDE OF WESTERN BOULEVARD, APPROXIMATELY 425 FEET SOUTH OF U.S. 380 AND 1,700 FEET NORTH OF JIM CHRISTAL RAOD; AND PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; PROVIDING A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. (CA14 -0002) WHEREAS, Steven Homeyer ( Homeyer Engineering, Inc.) has applied for a Comprehensive Plan Amendment to change the future land use designation from "Employment Centers" to "Industrial Centers" on two tracts totaling approximately 131.7 acres of land with Tract 1 legally described in Exhibit "A ", attached hereto and incorporated herein by reference, and Tract 2 legally described in Exhibit "B ", attached hereto and incorporated herein by reference (hereinafter, the "Properties "); and WHEREAS, on July 23, 2014, the Planning and Zoning Commission concluded a public hearing as required by law, and recommended approval of the Comprehensive Plan Amendment; and WHEREAS, on August 19, 2014, the City Council concluded a public hearing as required by law, and finds that the request meets and complies with all substantive and procedural standards set for in Section 35.3.3 of the Denton Development Code, and is consistent with the Denton Plan and the Denton Development Code; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference and found to be true. SECTION 2. The future land use designations for the Properties are hereby changed from "Employment Centers" to "Industrial Centers ". Notwithstanding the attached real property descriptions, the properties being re- designated include all property to the centerline of all adjacent street rights -of -way. SECTION 3. The City's official future land use map is amended to show the change in future land use designations. sAlegal\our documents \ordinances \14 \ca14- 0002.docx SECTION 4. 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 the provisions or applications, and to this end the provisions of this ordinance are severable. SECTION 5. 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 6. This ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record - Chronicle, a daily newspaper published in the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this the day of 52014. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY M. APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY U�_ s: \legal \our documents \ordinances \14 \cal4- 0002.docx Exhibit A Tract 1 Legal Description FIELD NOTES to all that certain tract of land situated in the William Bryan Survey Abstract Number 148, in Denton County, Texas, and being a part of a called 160 acre tract of land described in a deed from Wallace E. Davis et ux to Dianne Davis Atkinson et ux and Wallace E. Davis Jr. et ux as recorded in Volume 612 Page 430 of Deed Records, Denton County, Texas, the subject tract being more particularly described as follows: BEGINNING for the Northeast corner of the tract being described herein at a capped iron rod set at the intersection of the West line of Western Boulevard as defined by the Street Right -of -Way Donation Deed recorded in Instrument Number 2005 -69877 Real Property Records, Denton County, Texas, and the North line of said Atkinson & Davis tract; THENCE with the East line of the herein described tract and the West line of said Boulevard along or near a fence the following 11 courses and distances: 1)South 00 degrees 11 minutes 55 seconds East a distance of 139.63 feet to a capped iron rod set at the beginning of a curve to the left having a radius of 867.50 feet and a chord bearing of South 20 degrees 47 minutes 58 seconds East and a distance of 610.47 feet; 2) Southeasterly with the arc of said curve an arc distance of 623.82 feet to a capped iron rod found stamped "Arthur Surveying" for the end of said curve; 3) South 41 degrees 24 minutes 01 seconds East a distance of 250.38 feet to a capped iron rod found stamped "Arthur Surveying" at the beginning of a curve to the right having a radius of 882.49 feet and a chord bearing of South 20 degrees 07 minutes 20 second East and a distance of 640.51 feet; 4) Southeasterly with the arc of said curve an arc distance of 655.47 feet to a capped iron rod found stamped "Arthur Surveying" for the end of said curve; 5) South 01 degrees 09 minutes 21 seconds West a distance of 362.01 feet to a capped iron rod set for an angle point in said line; 6) South 05 degrees 26 minutes 28 seconds West a distance of 100.30 feet to a capped iron rod found stamped "Arthur Surveying'; 7) South 01 degrees 09 minutes 04 seconds West a distance of 300.09 feet to capped iron rod found stamped "Arthur Surveying'; 8) South 03 degrees 07 minutes 33 seconds East a distance of 100.25 feet to a capped iron rod found stamped "Arthur Surveying'; sllegakour documents \ordinances \14 \cai4- 0002.docx 9) South 01 degrees 09 minutes 24 seconds West a distance of 947.71 feet to capped iron rod set for an angle point in said line; 10) South 08 degrees 16 minutes 51 seconds West a distance of 100.78 feet to a capped iron rod set for and angle point in said line 11) South 01 degrees 09 minutes 21 seconds West a distance of 54.41 feet to a capped iron rod set for the most Easterly Southeast corner of the herein described tract at the North corner of a tract of land described in a deed as a Right of Way Donation to the City of Denton as recorded in County Clerk Number 2007 -81318 of the Real Property Records, Denton County, Texas; THENCE South 45 degrees 38 minutes 46 seconds West with the Northwesterly line thereof along or near a fence a distance of 77.85 feet to a capped iron rod set for an angle point in said line; THENCE South 10 degrees 19 minutes 24 seconds West continuing with said line a distance of 2.31 feet to a capped iron rod set on the North side of said road; THENCE South 89 degrees 59 minutes 19 seconds West with the North side of said road along or near a fence a distance of 1354.83 feet to a capped iron rod set in the West line of said Atkinson & Davis tract; THENCE North 00 degrees 32 minutes 15 seconds East with the West line of said Atkinson & Davis tract a distance of 3533.12 feet to a capped iron rod set for the Northwest comer of said Atkinson & Davis tract; THENCE South 89 degrees 06 minutes 19 seconds East with the North line of said Atkinson & Davis tract along or near a fence a distance of 826.80 feet to the PLACE OF BEGINNING and enclosing 104.75 acres of land more or less. sAlegal \our documents \ordinances \14 \ca14- 0002.docx Exhibit B Tract 2 Legal Description FIELD NOTES to all that certain tract of land situated in the William Bryan Survey Abstract Number 148, in Denton County, Texas, and being a part of a called 160 acre tract of land described in a deed from Wallace E. Davis et ux to Dianne Davis Atkinson et ux and Wallace E. Davis Jr. et ux as recorded in Volume 612 Page 430 of Deed Records, Denton County, Texas, the subject tract being more particularly described as follows: BEGINNING for the Northwest corner of the tract being described herein at a capped iron rod set at the intersection of the East line of Western Boulevard and the North line of said Atkinson & Davis tract; THENCE South 89 degrees 06 minutes 18 seconds East with the North line thereof along or near a fence a distance of 1009.87 feet to a point for the Northeast comer of said Atkinson & Davis tract and the Northeast corner of the herein described tract, from which a 6 " wood fence post bears South 44 degrees 36 minutes 10 seconds West 0.80 feet and the Southeast comer of Lot One Block One of Bethel Temple Parsonage Addition, Cabinet F Page 117 P.R.D.C.T. bears South 84 degrees 42 minutes 20 seconds East 31.92 feet; said corner also being in the West line of a tract of land described in a deed to The Selwyn School as recorded in Volume 511 Page 178 Deed Records, Denton County, Texas; THENCE South 00 degrees 32 minutes 15 seconds West with the East line of said Atkinson & Davis tract and the West line of said Selwyn School along or near a fence a distance of 1787.22 feet to a point for the Northeast corner of a tract of land described in a deed to Rayzor Investments, Ltd., as recorded in County Clerks File Number 2012 - 144836, Real Property Records, Denton County, Texas; THENCE South 89 degrees 03 minutes 10 seconds West with the North line thereof a distance of 389.05 feet to a point for the Northwest corner of said Rayzor tract and being in the East line of Western Boulevard for the Southwest corner of the herein described tract; THENCE along the following 10 courses and distances with the West line of the herein described tract and the East line of said road: 1) North 07 degrees 22 minutes 30 seconds West a distance of 47.63 feet to a point; 2) North 01 degrees 09 minutes 21 seconds East a distance of 262.01 feet to a point at the beginning of a curve to the left having a radius of 1017.50 feet and a chord bearing of North 20 degrees 07 minutes 20 seconds West; sAegahour documents \ordinances \14 \ca14- 0002.docx 3) Northwesterly with the arc of said curve a distance of 755.74 feet to a capped iron rod set; 4) North 41 degrees 24 minutes 01 seconds West a distance of 250.38 feet to a capped iron rod set at the beginning of a curve to the right having a radius of 732.50 feet and a chord bearing of North 20 degrees 47 minutes 58 seconds West; 5) Northwesterly with the arc of said curve a distance of 526.75 feet to a capped iron rod set; THENCE North 00 degrees 12 minutes 01 seconds West a distance of 137.05 feet to the PLACE OF BEGINNING and enclosing 26.95 acres of land more or less. Exhibit 2 Site Location/Aerial Map Legend SITE FAN irr r DENFON q4 Dppmtfmln� Streets 0 175 350 700 DEN TON Feet Exhibit 3 Future Land Use Map - Existing Legend N SITE 60MM _* Industrial Center W E Of r DENFON Employment Center S q4 DPP Existing Land Use 0 175 350 700 DENTON Feet Exhibit 4 Future Land Use Map - Proposed Legend SITE 60MM .'q Industrial Center r DENFON Employment Center -(AS 0 170 �0 �0 DENTON Existing Land Use Feet I I I I I Exhibit 5 Zoning Map - Existing Legend N SITE IC -E NR -2 IC -G ��_ % ////// ETJ EC -C of o, &�Nirr v� »v'xa' q';ria^w Quvo�:,:rroi.idA ro��•�, NRMU -12 0 „s 350 ,00 DENTON Feer Exhibit 6 Zoning Map - Proposed Legend SITE IC-E .'q NR-2 IC-G DENTON X/M, E T J EC-C -(AS "'", " 0 170 �0 �0 DENTON NRMU-12 Feet I I I I Exhibit 7 Airport Industrial Area Legend SITE DENTON Airport Industrial Zone Of q4 Dppmtfmln{ 0 625 1,250 2,500 DENTON Feet Exhibit 8 FEMA/ESA Map Legend =SITE Zone X�0.2% Annual Chance Flood W_* E Zone X 1 % Annual Chance, Less Than 1 Sq Mi Drainage r Z neA-1 1 % Annual Chance, No BFE Determined Of DENFON U)NOMM Zone AE -1 %Annual Chance, BFE Determined Zone Nannh q4 DPPArfiflwni -US Flood,ay 0 175 350 700 DENTON "t Exhibit 9 Applicant Narrative <0 HOMEYER CIVIL ENGINEERING RLATTING SITE& LAND RLANN ING WIPUIRMOR 011 Ms. Nikole Chew-Jones City • Denton 221 N. Elm Street Denton, Texas 76201 RE: Comprehensive Plan Amendment Submittal 4390 Jim Christal Road, Denton, Texas Tracts • & 39A, William Bryan Survey, Abstract 148 Property Tax ID Numbers 36672 & 562191 Dear Ms. Chew-Jones: On behalf of our client, Homeyer Engineering, Inc. (HEI) is submitting a comprehensive plan amendment request for the property referenced above. The subject property is currently undeveloped with the exception of two existing gas well pad sites. In addition, the subject property is currently zoned Employment Center Commercial (EC-C). The proposed zoning classification is Industrial Center General (IC-G) to allow for distribution center and warehouse distribution uses. P.O OX 29452✓ * LEWISVILLE,T)< 75029 Comprehensive Plan Amendment Submittal 4390 Jim Christal Road, Denton, Texas Tracts 39 & 39A, William Bryan Survey, Abstract 148 Property Tax ID Numbers 36672 & 562191 Page 2 and fire protection. Electric lines are located along the University Drive right -of -way and will need to be extended into the subject property. If the zoning change request is approved by the City of Denton, the proposed plan is to construct a distribution center and warehouse distribution development. The proposed vehicular access will be distributed to University Drive and Jim Christal Road via Western Boulevard. In addition, the proposed development will construct detention facilities to capture and regulate stormwater flows from the site in accordance with the City of Denton's Development Code. As stated above, the proposed development will install proposed water and sewer lines through the subject property for utility service. Solid waste service will be provided in the form of on -site dumpsters. This service will be coordinated with the City of Denton. Since this proposed zoning change request is similar to the current zoning, there should not be any significant impacts to the adjacent properties. The proposed development will be constructed in accordance with the City of Denton's development and building regulations. As a result, any concerns regarding noise, odors, fumes, lighting, landscaping and screening should be effectively mitigated. I would like to thank you in advance for your consideration of this request and would respectfully ask that you support our application for a comprehensive plan amendment request. If you have any questions, please feel free to contact me at 972 - 906 -9985. Sincerely, HOMEYER ENGINEERING, INC. TBPE Film 1341iration No. F -8440 Steven R. Hom�yer, P.E. President xc: Project File City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com I EN" " N File #: Z14 -0009, Version: Legislation Text Agenda Information Sheet DEPARTMENT: Planning and Development CM/ACM: John Cabrales, Jr. Date: August 19, 2014 SUBJECT Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for a zoning change from an Employment Center Commercial (EC -C) zoning district and use classification to an Industrial Center General (IC -G) zoning district and use classification on two tracts totaling approximately 131.7 acres of land. Tract 1 is generally located on the northwest corner of Western Boulevard and Jim Christal Road. Tract 2 is generally located on the east side of Western Boulevard, approximately 425 feet south of U.S. 380 and 1,700 feet north of Jim Christal Road; and providing for a penalty in the maximum amount of $2,000.00 for violations, thereof, severability and an effective date. (Z14 -0009) The Planning and Zoning Commission (P &Z) recommended approval of this request (5 -0). BACKGROUND The applicant is requesting to rezone two properties along Western Boulevard from EC -C to IC -G in conjunction with a change in future land use designation from "Employment Centers" to "Industrial Centers" (CA14- 0002). The applicant has expressed intent to develop the property with a Warehouse /Distribution Center use, which is not currently permitted in the EC -C zoning district. A change to Employment Center Industrial (EC -I) zoning would permit this use without the need for a change in future land use designation, but with limitations on floor area square footage and the number of loading docks. The applicant's proposed development would require more floor area and loading docks than this limitation would allow. Staff sent 19 certified notices of the public hearing to property owners within 200 feet of the subject property and 24 courtesy notices to residents within 500 feet of the property. As of this writing, staff has received one response in favor to the request. OPTIONS 1. Approve as submitted. 2. Approve subject to conditions. 3. Deny. 4. Postpone consideration. 5. Table item. RECOMMENDATION City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: Z14 -0009, Version: 1 The Planning and Zoning Commission recommends approval of this request (5 -0). The Development Review Committee recommends approval of this request. ESTIMATED SCHEDULE OF PROJECT Not Applicable. PRIOR ACTION /REVIEW (Council, Boards, Commissions) July 23, 2014 - The Planning and Zoning Commission recommended approval of this request. FISCAL INFORMATION Not Applicable. BID INFORMATION Not Applicable. EXHIBITS 1. Staff Analysis 2. Site Location/Aerial Map 3. Future Land Use Map - Existing 4. Future Land Use Map - Proposed 5. Zoning Map - Existing 6. Zoning Map - Proposed 7. Airport Industrial Area 8. FEMA/ESA Map 9. Applicant Narrative 10. Notification Information Map 11. Site Photos 12. July 23, 2014 P &Z Minutes 13. Draft Ordinance Respectfully submitted: Brian Lockley, AICP, CPM Director, Planning and Development Prepared by: Michael J. Bell Associate Planner City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl Exhibit 1 Staff Analysis CITY OF DENTON DEVELOPMENT REVIEW COMMITTEE STAFF REPORT P &Z Date: July 23, 2014 TYPE: Rezoning CC Date: August 19, 2014 PROJECT #: Z14 -0009 Project Number: Z14 -0009 Request: To rezone two tracts equaling approximately 131.7 acres from Employment Center Commercial (EC -C) to Industrial Center General (IC -G). This request is in conjunction with a change of future land use designation from "Employment Centers" to "Industrial Centers." Applicant: Steven Homeyer Homeyer Engineering, Inc. P.O. Box 294527 Lewisville, TX 75029 Property Owner: Wallace Davis, Jr. 14 Ashmere Ct. Dallas, TX 75225 Location: Tract 1 is located at the northwest corner of Western Boulevard and Jim Christal Rd. Tract 2 is located on the east side of Western Boulevard, approximately 425 feet south of U.S. 380 and 1,700 feet north of Jim Christal Rd. Size: 131.7+ Zoning Designation: Employment Center Commercial (EC -C) Future Land Use: Employment Centers Case Planner: Michael J. Bell DRC Recommendation: The Development Review Committee (DRC) recommends approval of Z14 -0009. The applicant is requesting to rezone two properties along Western Boulevard from EC -C to IC- G in conjunction with a change in future land use designation from "Employment Centers" to "Industrial Centers." The applicant has expressed intent to develop the property with a Warehouse /Distribution Center use, which is not currently permitted in the EC -C zoning district. A change to Employment Center Industrial (EC -I) zoning would permit this use without the need for a change in future land use designation, but with limitations on floor area square footage and the number of loading docks. The applicant's proposed development would require more floor area and loading docks than this limitation would allow. The City constructed Western Boulevard in 2009 with the goal of fostering industrial growth in the western portions of Denton. Additionally, a Tax Increment Reinvestment Zone (TIRZ) was established south of the subject property to support this goal. While this area is not within the TIRZ, the extension of Western Boulevard north of Jim Christal to U.S. 380 provides opportunity for enhanced, industrial development on these properties. Staff is supportive of the proposed zoning change as it complies with goals and objectives of the Denton Plan. Per Subchapter 35.3.4.13 of the Denton Development Code, Zoning Amendments may be approved when the following standards are met: 1. The proposed rezoning conforms to the Future Land Use element of The Denton Plan. If CA14- 0002for the change in future land use designation to "Industrial Centers" is approved by City Council, the proposed zoning of IC -G would conform to the Future Land Use Map. 2. The proposed rezoning facilitates the adequate provision of transportation, water, sewers, schools, parks, and other public requirements of public convenience.; Platting of the property to facilitate commercial development would require the adequate provision of transportation and public utilities on site. These public improvements would be supportive of the City's goals for the Western Boulevard /Airport Industrial Area. Findings of Fact The request is for a rezoning from Employment Center Commercial (EC -C) to Industrial Center General (IC -G) on approximately 131.7 acres. 2. Project History: The property was zoned Employment Center Commercial (EC -C) under city -wide rezoning in 2002. 2. Prior to the 2002 city -wide rezoning, the site was zoned Agricultural (A). 3. Denton Plan: The Future Land Use Category of the property is "Employment Centers." The applicant proposes to amend the future land use category to "Industrial Centers" to facilitate a rezoning from EC -C to Industrial Center General (IC -G). 2. According to the Denton Plan, Employment Centers are intended to provide locations for a variety of workplaces, including limited light manufacturing uses, research and development activities, corporate facilities, offices, and institutions. They are also intended to accommodate secondary uses that complement or support the primary workplace uses, such as hotels, restaurants, convenience shopping, and child -care. According to the Denton Plan, Employment Centers are also intended to: a) Encourage the development of office and business workplaces in close proximity to housing, civic, and recreational uses; b) Promote excellence in the design and construction of buildings, outdoor spaces, transportation facilities, and streetscapes; C) Direct the development of workplaces consistent with the availability of public facilities and services; and, d) Continue the vitality and quality of life in adjacent neighborhoods. 4. Industrial Centers are intended to provide locations for a variety of work processes and work places such as manufacturing, warehousing and distributing, indoor and outdoor storage, and a wide range of commercial and industrial operations. The industrial centers may also accommodate secondary and complementary uses such as convenience shopping and child -care centers. 4. Existing Site Conditions: Tract 1 on the west side of Western Boulevard is undeveloped. Tract 2 is mostly partially undeveloped and partially developed with a gas well. Adjacent land uses include a prep school to the east, church and commercial uses to the north, a single - family residence to the northwest, and undeveloped to the west, south, and southeast. 2. Adjacent zoning districts include Industrial Center Employment (IC -E) to the west, IC -G to the south and southeast, Neighborhood Residential 2 (NR -2) to the east, and EC -I to the north. 3. Land uses within 1/4 mile radius of the site include approximately 445.44 acres; of which 312.72 are agricultural, 71.96 are institutional, 38.91 are residential, and 19.56 are commercial. 4. Development of the site with industrial uses would require a combination of Type -B and Type -D buffers along the property's northern and eastern property lines to buffer the adjacent uses. A Type -D buffer includes a 30 ft. planted strip that includes a combination of eight evergreen and deciduous trees and 20 shrubs per 100 linear -feet. A Type -B buffer includes a 10 ft. planted strip that includes a combination of five evergreen and deciduous trees and 30 shrubs per 100 linear feet. 5. The property contains Environmentally Sensitive Area Stream Buffers and FEMA floodplain. Compliance with Subchapter 17 of the Denton Development Code (DDC) and other applicable regulations will be required. 5. Infrastructure: 1. The site is currently platted with a gas well plat. An amending gas well plat will be required to shrink the plat size to allow surface development. A Preliminary and Final Plat will then be required prior to any additions /improvements to the property and prior to the issuance of building permits. 2. The water and sewer mains constructed along and through these properties shall conform to the layouts done as part of the Rayzor Westpark TIRZ study. Per that study, the following mains shall be constructed (at a minimum): a) 16 -inch water main along Western Boulevard, from the existing 20 -inch main along U.S. 380 to Jim Christal Road, thence eastward to applicant's east property line. b) 12 -inch gravity sewer main along Jim Christal Road from the existing 10- inch near applicant's west property line to Western Boulevard. C) 8 -inch gravity sewer line from Western Boulevard to applicant's east property line. 3. Western Boulevard is in process of being widened to a four -lane, divided primary arterial. 4. Construction of 5 ft. sidewalks will be required along Western Boulevard. Electric service will be provided by Denton Municipal Electric (DME). A main line overhead circuit will be required along Western Boulevard will be required to serve future development. Development Review Committee Based upon the information provided by the applicant and a recent site visit, the Development Review Committee finds that the request IS CONSISTENT with the surrounding land uses and general character of the area, IS CONSISTENT with the Denton Plan, and IS CONSISTENT with the Denton Development Code. 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 ofDenton, shall be considered to be binding upon the applicant, provided such comments are not at variance with the Denton Plan, Denton Development Code or other development regulations in effect at the time of development. Surrounding Zoning Designations and Current Land Use Activity: Northwest: North: Northeast: Industrial Center Employment Center Neighborhood Residential (NR -2) Employment (IC -E) Commercial (EC -C) l (Institutional/School) (Undevelope) (Commercial/Institutional) West: East: Industrial Center Neighborhood Residential 2 (NR -2) Employment (IC -E) � i (InstitutionallSchool) (Undeveloped /Gas Wells) Southwest: South: Southeast: Industrial Center General (IC -G) Industrial Center General (IC -G) Industrial Center General (IC -G) (Undeveloped /Gas Wells) (Undeveloped /Gas Wells) (Undeveloped /Gas Wells) Source: City of Denton Geographical Information System and site visit by City staff Summary of Surrounding Zoning Designations and Current Land Use Activity: The subject properties are currently zoned EC -C. Tract I is undeveloped. Tract 2 is partially undeveloped and partially developed with a gas well. Surrounding zoning districts include EC -C to the north, IC -E to the west, IC -G to the south and southeast, and NR -2 to the east. Land uses within 1/4 mile radius of the site include approximately 445.44 acres; of which 312.72 are agricultural, 71.96 are institutional, 38.91 are residential, and 19.56 are commercial. Residential Land Use Categories Agriculture P (Proposed) P Livestock L(7) L(7) Single Family Dwellings N N Accessory Dwelling Units N N Attached Single Family Dwellings N N Dwellings Above Businesses N N Live /Work Units N N Duplexes N N Community Homes For the Disabled N N Group Homes N N Multi - Family Dwellings N N Fraternity or Sorority House N N Dormitory N N Manufactured Housing Developments N N Commercial Land Use Categories Home Occupation N (Proposed) N Sale of Products Grown on Site N N Hotels P N Motels P N Bed and Breakfast N N Retail Sales and Service P L(18) Movie Theaters N N Restaurant or Private Club P L(22) Drive - through Facility P L(14) Professional Services and Offices P P Quick Vehicle Servicing P P Vehicle Repair P P Auto and RV Sales P P Laundry Facilities P P Equestrian Facilities N N Outdoor Recreation P N Indoor Recreation P N Conference /Convention Centers P N Major Event Entertainment P N Commercial Parking Lots P P Administrative or Research Facilities P P Broadcasting of Production Studio P P Sexually Oriented Business N SUP / L(32) Temporary Uses L(38) L(38) Industrial Land Use Categories Printing / Publishing P (Proposed) L(25) Bakeries P P Manufacture of Non - odoriferous Foods P P Feed Lots N N Food Processing N P Light Manufacturing P P Heavy Manufacturing N SUP Wholesale Sales P P Wholesale Nurseries N P Distribution Center /Warehouse, General N P Warehouse, Retail L(34) SUP Self- service Storage P P Construction Materials Sales N P Junk Yards and Auto Wrecking N SUP Wrecker Services and Impound Lots SUP L(29) Kennels P N Veterinary Clinics P N Sanitary Landfills, Commercial Incinerators, Transfer Stations N SUP Gas Wells L(27) L(27) Limitations L(7)= Limited to two (2) animals on parcels one (1) to three (3) acres in size. Additional animals may be added at a rate of one per each acre over three. L(14) = Uses are limited to no more than 10,000 square feet of gross floor area. L(18) = Uses are permitted only in association with Gas Stations and are limited to no more than 5,000 square feet of gross floor area except adjacent to I -35 then uses are limited to 10,000 square feet of gross floor area. L(22) = Uses are permitted only in association with Gas Stations and are limited to no more than 25 seats except adjacent to I -35 then the number of seats is limited to 50. Institutional Land Use Categories Basic Utilities P (Proposed) P Community Service P P Parks and Open Space P P Churches P P Semi - public, Halls, Clubs, and Lodges P P Business / Trade School P P Adult or Child Day Care P N Kindergarten, Elementary School N N Middle School N N High School N N Colleges P N Hospital P N Elderly Housing P N Medical Centers P N Cemeteries N N Mortuaries P N WECS (Free- standing Monopole Support Structure) SUP SUP WECS (Building- mounted) SUP SUP Limitations L(7)= Limited to two (2) animals on parcels one (1) to three (3) acres in size. Additional animals may be added at a rate of one per each acre over three. L(14) = Uses are limited to no more than 10,000 square feet of gross floor area. L(18) = Uses are permitted only in association with Gas Stations and are limited to no more than 5,000 square feet of gross floor area except adjacent to I -35 then uses are limited to 10,000 square feet of gross floor area. L(22) = Uses are permitted only in association with Gas Stations and are limited to no more than 25 seats except adjacent to I -35 then the number of seats is limited to 50. L(27) = Must comply with the provisions of Subchapter 19, Gas Well Drilling and Production. L(29) = Wrecker Services and Impound Lots must comply with the following provisions: 1. The subject lot shall comply with the provisions of the Texas Administrative Code, regarding Vehicle Storage Facilities. 2. Lot Screening: All stored vehicles shall be opaquely screened from all rights -of -way and residential uses and zoning districts. 3. Parking and vehicle storage areas associated with wrecker services and impound lots activities are not allowed within undeveloped floodplain, water - related habitat, and riparian buffer environmentally sensitive areas (ESA). 4. Best management practices addressing storm water quality must be implemented and maintained on site. Management practices must attain the pollutant removal capabilities recommended for parking areas in the Integrated Storm Water Management (iSWM) manual, as published by the North Central Texas Council of Governments, or similar practices consistent with low impact development (LID) approaches. L (32) = Not allowed to locate adjacent to an arterial and within 1,000 feet as measured from the nearest property line of a sexually oriented business to the nearest property line of any other sexually oriented business, adult or child daycare, any elderly housing facility, hospital, any residential use, public open space. L (34) = Permitted with no more than 150,000 gross square feet and 8 truck docks. All docks or loading bays shall be to the rear or side of the structure and not viewable from the street. The buffering standards for outdoor storage shall apply, both to any outdoor storage activity and to the loading docks. L(38) = Must meet the requirements of Section 35.12.9. General Regulations EC-C IC-G ... Minimum lot area (square feet) 2,900 5,000 Minimum lot width 20 feet 50 feet Minimum lot depth 50 feet 50 feet Minimum front yard setback None 10 feet Minimum side yard None 6 feet Minimum side yard adjacent to a street None 10 feet 30 ft., plus 1 30 ft., plus 1 foot for each foot for each Minimum yard abutting a single - family foot of foot of use or district building building height about height about 30 ft. 30 ft. Maximum lot coverage 80% 90% Maximum FAR 1.5 2.0 Minimum landscaped area 20% 10% Maximum building height 100 feet 140 feet Maximum WECS height 110 feet 150 feet Comprehensive Plan: The future land use designation of the property is "Employment Centers." Employment Centers are intended to provide light manufacturing, research, office, and supportive commercial uses. The proposed change to Industrial Centers would change the vision of the properties to one of more intense manufacturing, distribution, and warehouse workplaces and would incorporate these properties into the Industrial Centers that centers around the Denton Enterprise Airport. Nearest Fire, and EMS Station: Name of Station I Approximate Distance From Fire /EMS I Station 5, 2230 W. Windsor f 3.62 mi. Source: City of Denton GIS, Fire Department, and EMS Water and Wastewater Demand and Capacity: A. Estimated Demand: Subject Property Estimated Im act Analysis Adequate to Serve 131.7 f acres Proposed Demand (Yes or No) Subject Property Estimated Im act Analysis 131.7 f acres Proposed Demand Adequate to Serve (Yes or No) Potable Water 696 (peak) Yes (pending exactions by Consumption (GPD) applicant listed below) Wastewater 627 (peak) Yes (pending exactions by Generation (GPD) applicant listed below) B. Available Capacity: The water and sewer mains constructed along and through these properties shall conform to the layouts done as part of the Rayzor Westpark TIRZ study. Per that study, the following mains shall be constructed (at a minimum): 16 -inch water main along Western Boulevard, from the existing 20 -inch main along U.S. 380 to Jim Christal Road, thence eastward to applicant's east property line. 12 -inch gravity sewer main along Jim Christal Road from the existing 10 -inch near applicant's west property line to Western Boulevard. 8 -inch gravity sewer line from Western Boulevard to applicant's east property line. C. CIP Planned Improvements: None. Roadways /Transportation Network: A. Estimated Demand: Subject Property Estimated Im act Analysis 2.38 f acres Proposed Demand Adequate to Serve (Yes or No) Average Annual 8,311 Yes Daily Trips (AADT) PM Peak Hour Trips 1,142 Yes B. Available Capacity: Western Boulevard has the capacity to accommodate this change in future land use designation. C. Roadway Conditions: Western Blvd. is classified as a partially improved Primary Major Arterial. It is currently a 2- lane roadway. Any development would require Western Blvd. to be widened along its frontage. D. CIP Planned Improvements: There are no City of Denton CIP projects in this area. TxDOT is currently widening U.S. 380 to the north. Environmental Conditions: A. The site contains FEMA floodplain and ESA Stream Buffers. Refer to Exhibit 8 for a map of Environmental Conditions. Park Facilities: Owsley Park is a 0.5 acre park located in the vicinity of UNT it hosts 1 Basketball Multipurpose court, 3 Benches, 1 Drinking Fountain, 2 Grills, on street parking, 8 Picnic Tables, 1 Playground, Security Lighting, 1 Pavilion. McKenna Park is an 18 acre park near Texas Health Hospital that includes 1 Basketball Multipurpose court, 6 Benches, 1 Drinking Fountain, 6 Grills, 14 Parking Spaces, 32 Picnic Tables, 1 Playground, Security Lighting, 3 Pavilions, 1 Swing. North Lakes Park is a 357 acre destination park at Bonnie Brae and Windsor. It includes 1 Annex building, 8 Backstops, 1 Basketball Multipurpose court, 40 Bleachers, Multiple bridges, 41 Benches, 4 concession / restroom buildings, an 18 hole Disc Golf course, 8 Drinking Fountains, 1 Driving Range, 1 Fishing Pier, 3 Football Fields,4 Grills, 2 Lakes, over 300 Parking Spaces, 8 Picnic Tables, 3 Playgrounds, Security Lighting,3 Pavilions, 1 Radio Control Aircraft Runway, 1 Rugby Field, 1 Sand Volleyball court,? Shade Structures, 9 Tennis Courts, 1.32 miles of Concrete Trails, 0.85 miles of Soft Surface Trails. Exhibit 11 Site Photos Looping east from Western Boulevard towards Tract 2. Looping west from Western Boulevard towards Tract 1. Facing southeast from Western Boulevard towards well site. Looking south towards the intersection Western Blvd. and Jim Christal Rd. Exhibit 12 July 23, 2014, P &Z Minutes C. Hold a public hearing and consider making a recommendation to City Council regarding a rezoning of two tracts totaling approximately 131.7 acres from Employment Center Commercial (EC -C) to Industrial Center General (IC -G). Tract 1 is generally nerally located at the northwest corner of Western Boulevard and Jim Christal Road. Tract 2 is generally nerally located on the east side of Western Boulevard, aproximately 425 south of U.S. 380 and 1,700 feet north of Jim Christal Road. The site is located within an Employment Center Commercial (EC -C) zoning district. (Z14 -0009, Western Boulevard, Mike Bell) Lockley stated Agenda Items 5C and 5D would be heard as one presentation. The Agenda Items would be voted on separately. Agenda Item 5D would need to be voted on first. Lockley introduced Bell; Lockley stated Agenda Items 5C and 5D would be heard together as one presentation. Agenda Item 5D would need to be voted on prior to the vote of Agenda Item 5C. Bell stated this request is to consider making a recommendation to City Council regarding a change in future land use designation of 131.7 acres from Employment Centers to Industrial Centers. This request is also to consider making a recommendation to City Council regarding a rezoning of the same 131.7 acres from Employment Center Commercial (EC -C) to Industrial Center General (IC -G). Tract 1 is generally located on the northwest corner of Western Boulevard and Jim Christal Road. Tract 2 is generally located on the east side of Western Boulevard, approximately 425 feet south of U.S. Highway 380 and 1,700 feet north of Jim Christal Road. Bell stated Western Boulevard was installed by the City to promote industrial development around the airport. A majority of the surrounding properties are zoned for industrial uses since 2002. Staff has made three major determinations: 1. There is adequate public infrastructure capacity to serve the site. 2. However, the unique circumstances of the site make it Neighborhood Centers an inappropriate future land use designation. And 3. Community Mixed Use Center is the most appropriate future land use designation. Staff sent out 19 Public Hearing notices to property owners within 200 feet of the subject site, and 24 courtesy notices to property owners within 500 feet of the subject site. At this time staff has received one returned response in favor of this request. The Development Review Committee recommends approval of this request. Taylor questioned the buffering requirements. Bell stated they are currently based on institutional uses, which would be Type E buffer. Bell stated Tract 1 is adjacent to single - family residential, which would be a 30 foot buffer. Bell stated the applicant is present. Steve Homeyer, Homeyer Engineering Group, 206 Elm Street, Lewisville, Texas This is a small area the City is looking to try to get this type of development in. The first building would be approximately 170,000 square foot. There would be screening along the property lines. The south buildings, which are buildings two (2) and three (3), would be build in separate phases. This would be based on how the first development takes. Homeyer stated they would be utilizing landscaping for mitigation. The applicant provided conceptual plans to the Commissioners. The dock doors would be placed at the rear of the development and the interior of the development. This would prevent them from being visible from the adjacent properties. There was no further discussion. Schaake stated the proposed development is well put together. Schaake opened the Public Hearing for Agenda Items 5C and 5D. There was no one to speak on the items. Schaake closed the Public Hearing Items. Commissioner Thom Reece motioned, Commissioner Frank Conner seconded to vote first on Agenda Item 5D. Motion approved (5 -0). Agenda Item 5C was heard with Agenda Item 5D. Schaake opened the Public Hearing; there was no one to speak on the item. Schaake closed the Public Hearing. Commissioner Thom Reece motioned, Commissioner Frank Conner seconded to approve Agenda Item 5C. Motion approved (5 -0). sAlegal \our documents \ordinances \14\z14- 0009.docx Exhibit 13 Draft Ordinance ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE FROM AN EMPLOYMENT CENTER COMMERCIAL (EC -C) ZONING DISTRICT AND USE CLASSIFICATION TO A INDUSTIRAL CENTER GENERAL (IC -G) ZONING DISTRCT AND USE CLASSIFICATION ON TWO TRACTS TOTALING APPROXIMATELY 131.7 ACRES OF LAND; TRACT 1 IS GENERALLY LOCATED ON THE NORTHWEST CORNER OF WESTERN BOULEVARD AND JIM CHRISTAL ROAD. TRACT 2 IS GENERALLY LOCATED ON THE EAST SIDE OF WESTERN BOULEVARD, APPROXIMATELY 425 FEET SOUTH OF U.S. 380 AND 1,700 FEET NORTH OF JIM CHRISTAL RAOD; AND PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF; PROVIDING A SEVERABILITY CLAUSE AND AN EFFECTIVE DATE. (Z14 -0009) WHEREAS, Steven Homeyer ( Homeyer Engineering, Inc.) has applied for a zoning change on two tracts of land totaling approximately 131.7 acres of land with Tract 1 legally described in Exhibit "A ", attached hereto and incorporated herein by reference, and Tract 2 legally described in Exhibit "B ", attached hereto and incorporated herein by reference (hereinafter, the "Properties ") from an Employment Center Commercial (EC -C) zoning district and use classification to an Industrial Center General (IC -G) zoning district and use classification; and WHEREAS, on July 23, 2014, the Planning and Zoning Commission concluded a public hearing as required by law, and recommended approval (5 -0) of the change in zoning district and use classification; and WHEREAS, on August 19, 2014, the City Council concluded a public hearing as required by law, and find that the request meets and complies with all substantive and procedural standards set for in Section 35.3.4 of the Denton Development Code, and is consistent with the Denton Plan and the Denton Development Code; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference and found to be true. SECTION 2. The zoning district and use classification for the Properties is hereby changed from Employment Center Commercial (EC -C) to Industrial Center General (IC -G). Notwithstanding the attached real property descriptions, the properties being rezoned include all properties to the centerline of all adjacent street rights -of -way. SECTION 3. The City's official zoning map is amended to show the change in the zoning district and use classification. sAlegal \our documents \ordinances \14\x14- 0009.docx SECTION 4. 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 the provisions or applications, and to this end the provisions of this ordinance are severable. SECTION 5. 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 6. This ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordinance to be published twice in the Denton Record - Chronicle, a daily newspaper published in the City of Denton, Texas, within ten (10) days of the date of its passage. PASSED AND APPROVED this the day of , 2014. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY C APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY ,jfJrI BY:L �...`,.. s: \legal \our documents \ordinances \14\z14- 0009.docx Exhibit A Tract 1 Legal Description TRACT 1 FIELD NOTES to all that certain tract of land situated in the William Bryan Survey Abstract Number 148, in Denton County, Texas, and being a part of a called 160 acre tract of land described in a deed from Wallace E. Davis et ux to Dianne Davis Atkinson et ux and Wallace E. Davis Jr. et ux as recorded in Volume 612 Page 430 of Deed Records, Denton County, Texas, the subject tract being more particularly described as follows: BEGINNING for the Northeast corner of the tract being described herein at a capped iron rod set at the intersection of the West line of Western Boulevard as defined by the Street Right -of -Way Donation Deed recorded in Instrument Number 2005 -69877 Real Property Records, Denton County, Texas, and the North line of said Atkinson & Davis tract; THENCE with the East line of the herein described tract and the West line of said Boulevard along or near a fence the following 11 courses and distances: 1)South 00 degrees 11 minutes 55 seconds East a distance of 139.63 feet to a capped iron rod set at the beginning of a curve to the left having a radius of 867.50 feet and a chord bearing of South 20 degrees 47 minutes 58 seconds East and a distance of 610.47 feet; 2) Southeasterly with the arc of said curve an arc distance of 623.82 feet to a capped iron rod found stamped "Arthur Surveying" for the end of said curve; 3) South 41 degrees 24 minutes 01 seconds East a distance of 250.38 feet to a capped iron rod found stamped "Arthur Surveying" at the beginning of a curve to the right having a radius of 882.49 feet and a chord bearing of South 20 degrees 07 minutes 20 second East and a distance of 640.51 feet; 4) Southeasterly with the arc of said curve an arc distance of 655.47 feet to a capped iron rod found stamped "Arthur Surveying" for the end of said curve; 5) South 01 degrees 09 minutes 21 seconds West a distance of 362.01 feet to a capped iron rod set for an angle point in said line; 6) South 05 degrees 26 minutes 28 seconds West a distance of 100.30 feet to a capped iron rod found stamped "Arthur Surveying'; 7) South 01 degrees 09 minutes 04 seconds West a distance of 300.09 feet to capped iron rod found stamped "Arthur Surveying'; 8) South 03 degrees 07 minutes 33 seconds East a distance of 100.25 feet to a capped iron rod found stamped "Arthur Surveying'; s: \legal \our documents \ordinances \14\z14- 0009.docx 9) South 01 degrees 09 minutes 24 seconds West a distance of 947.71 feet to capped iron rod set for an angle point in said line; 10) South 08 degrees 16 minutes 51 seconds West a distance of 100.78 feet to a capped iron rod set for and angle point in said line 11) South 01 degrees 09 minutes 21 seconds West a distance of 54.41 feet to a capped iron rod set for the most Easterly Southeast corner of the herein described tract at the North corner of a tract of land described in a deed as a Right of Way Donation to the City of Denton as recorded in County Clerk Number 2007 -81318 of the Real Property Records, Denton County, Texas; THENCE South 45 degrees 38 minutes 46 seconds West with the Northwesterly line thereof along or near a fence a distance of 77.85 feet to a capped iron rod set for an angle point in said line; THENCE South 10 degrees 19 minutes 24 seconds West continuing with said line a distance of 2.31 feet to a capped iron rod set on the North side of said road; THENCE South 89 degrees 59 minutes 19 seconds West with the North side of said road along or near a fence a distance of 1354.83 feet to a capped iron rod set in the West line of said Atkinson & Davis tract; THENCE North 00 degrees 32 minutes 15 seconds East with the West line of said Atkinson & Davis tract a distance of 3533.12 feet to a capped iron rod set for the Northwest corner of said Atkinson & Davis tract; THENCE South 89 degrees 06 minutes 19 seconds East with the North line of said Atkinson & Davis tract along or near a fence a distance of 826.80 feet to the PLACE OF BEGINNING and enclosing 104.75 acres of land more or less. s: \legal \our documents \ordinances \14\zl4- 0009.docx Exhibit B Tract 2 Legal Description FIELD NOTES to all that certain tract of land situated in the William Bryan Survey Abstract Number 148, in Denton County, Texas, and being a part of a called 160 acre tract of land described in a deed from Wallace E. Davis et ux to Dianne Davis Atkinson et ux and Wallace E. Davis Jr. et ux as recorded in Volume 612 Page 430 of Deed Records, Denton County, Texas, the subject tract being more particularly described as follows: BEGINNING for the Northwest corner of the tract being described herein at a capped iron rod set at the intersection of the East line of Western Boulevard and the North line of said Atkinson & Davis tract; THENCE South 89 degrees 06 minutes 18 seconds East with the North line thereof along or near a fence a distance of 1009.87 feet to a point for the Northeast corner of said Atkinson & Davis tract and the Northeast corner of the herein described tract, from which a 6 " wood fence post bears South 44 degrees 36 minutes 10 seconds West 0.80 feet and the Southeast corner of Lot One Block One of Bethel Temple Parsonage Addition, Cabinet F Page 117 P.R.D.C.T. bears South 84 degrees 42 minutes 20 seconds East 31.92 feet; said corner also being in the West line of a tract of land described in a deed to The Selwyn School as recorded in Volume 511 Page 178 Deed Records, Denton County, Texas; THENCE South 00 degrees 32 minutes 15 seconds West with the East line of said Atkinson & Davis tract and the West line of said Selwyn School along or near a fence a distance of 1787.22 feet to a point for the Northeast corner of a tract of land described in a deed to Rayzor Investments, Ltd., as recorded in County Clerks File Number 2012 - 144836, Real Property Records, Denton County, Texas; THENCE South 89 degrees 03 minutes 10 seconds West with the North line thereof a distance of 389.05 feet to a point for the Northwest corner of said Rayzor tract and being in the East line of Western Boulevard for the Southwest corner of the herein described tract; THENCE along the following 10 courses and distances with the West line of the herein described tract and the East line of said road: 1) North 07 degrees 22 minutes 30 seconds West a distance of 47.63 feet to a point; 2) North 01 degrees 09 minutes 21 seconds East a distance of 262.01 feet to a point at the beginning of a curve to the left having a radius of 1017.50 feet and a chord bearing of North 20 degrees 07 minutes 20 seconds West; s: \legahour documents \ordinances \14\714- 0009.docx 3) Northwesterly with the arc of said curve a distance of 755.74 feet to a capped iron rod set; 4) North 41 degrees 24 minutes 01 seconds West a distance of 250.38 feet to a capped iron rod set at the beginning of a curve to the right having a radius of 732.50 feet and a chord bearing of North 20 degrees 47 minutes 58 seconds West; 5) Northwesterly with the arc of said curve a distance of 526.75 feet to a capped iron rod set; THENCE North 00 degrees 12 minutes 01 seconds West a distance of 137.05 feet to the PLACE OF BEGINNING and enclosing 26.95 acres of land more or less. Exhibit 2 Site Location/Aerial Map Legend SITE FAN irr r DENFON q4 Dppmtfmln� Streets 0 175 350 700 DEN TON Feet Exhibit 3 Future Land Use Map - Existing Legend N SITE 60MM _* Industrial Center W E Of r DENFON Employment Center S q4 DPP Existing Land Use 0 175 350 700 DENTON Feet Exhibit 4 Future Land Use Map - Proposed Legend SITE 60MM .'q Industrial Center r DENFON Employment Center -(AS 0 170 �0 �0 DENTON Existing Land Use Feet I I I I I Exhibit 5 Zoning Map - Existing Legend N SITE IC -E NR -2 IC -G ��_ % ////// ETJ EC -C of o, &�Nirr v� »v'xa' q';ria^w Quvo�:,:rroi.idA ro��•�, NRMU -12 0 „s 350 ,00 DENTON Feer Exhibit 6 Zoning Map - Proposed Legend SITE IC-E .'q NR-2 IC-G DENTON X/M, E T J EC-C -(AS "'", " 0 170 �0 �0 DENTON NRMU-12 Feet I I I I Exhibit 7 Airport Industrial Area Legend SITE DENTON Airport Industrial Zone Of q4 Dppmtfmln{ 0 625 1,250 2,500 DENTON Feet Exhibit 8 FEMA/ESA Map Legend =SITE Zone X�0.2% Annual Chance Flood W_* E Zone X 1 % Annual Chance, Less Than 1 Sq Mi Drainage r Z neA-1 1 % Annual Chance, No BFE Determined Of DENFON U)NOMM Zone AE -1 %Annual Chance, BFE Determined Zone Nannh q4 DPPArfiflwni -US Flood,ay 0 175 350 700 DENTON "t Exhibit 9 Applicant Narrative <0 HOMEYER CIVIL ENGINEERING RLATTING SITE& LAND RLANN ING WIPUIRMOR 011 Ms. Nikole Chew-Jones City • Denton 221 N. Elm Street Denton, Texas 76201 RE: Comprehensive Plan Amendment Submittal 4390 Jim Christal Road, Denton, Texas Tracts • & 39A, William Bryan Survey, Abstract 148 Property Tax ID Numbers 36672 & 562191 Dear Ms. Chew-Jones: On behalf of our client, Homeyer Engineering, Inc. (HEI) is submitting a comprehensive plan amendment request for the property referenced above. The subject property is currently undeveloped with the exception of two existing gas well pad sites. In addition, the subject property is currently zoned Employment Center Commercial (EC-C). The proposed zoning classification is Industrial Center General (IC-G) to allow for distribution center and warehouse distribution uses. P.O OX 29452✓ * LEWISVILLE,T)< 75029 Comprehensive Plan Amendment Submittal 4390 Jim Christal Road, Denton, Texas Tracts 39 & 39A, William Bryan Survey, Abstract 148 Property Tax ID Numbers 36672 & 562191 Page 2 and fire protection. Electric lines are located along the University Drive right -of -way and will need to be extended into the subject property. If the zoning change request is approved by the City of Denton, the proposed plan is to construct a distribution center and warehouse distribution development. The proposed vehicular access will be distributed to University Drive and Jim Christal Road via Western Boulevard. In addition, the proposed development will construct detention facilities to capture and regulate stormwater flows from the site in accordance with the City of Denton's Development Code. As stated above, the proposed development will install proposed water and sewer lines through the subject property for utility service. Solid waste service will be provided in the form of on -site dumpsters. This service will be coordinated with the City of Denton. Since this proposed zoning change request is similar to the current zoning, there should not be any significant impacts to the adjacent properties. The proposed development will be constructed in accordance with the City of Denton's development and building regulations. As a result, any concerns regarding noise, odors, fumes, lighting, landscaping and screening should be effectively mitigated. I would like to thank you in advance for your consideration of this request and would respectfully ask that you support our application for a comprehensive plan amendment request. If you have any questions, please feel free to contact me at 972 - 906 -9985. Sincerely, HOMEYER ENGINEERING, INC. TBPE Film 1341iration No. F -8440 Steven R. Hom�yer, P.E. President xc: Project File City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com 1 EN71" N File #: Al 4-0001 b, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Planning and Development CM/ ACM: John Cabrales, Jr. Date: August 19, 2014 SUBJECT Hold the second of two public hearings to consider the adoption of an ordinance of the City of Denton annexing 40.33 acres of land, more or less, generally located on the west side of Cooper Creek Road, approximately 800 feet south of Silver Dome Road, and approximately 1,800 feet north of Mingo Road, more specifically described in Exhibits "A" and "B "; approving a service plan for the subject property and temporarily placing the property in the Rural Residential - 5 (RD -5) zoning district; providing for a correction of the City Map to include the annexed lands; providing for a savings clause and effective date. (A14 -0001) BACKGROUND Randall Smith is the authorized representative of Charles Byrom, the property owner, for this annexation request. The subject property is approximately 40.33 acres and is adjacent to current city limits on its north, west, and south boundaries. The adjacent zoning districts are Neighborhood Residential 4 (NR -4) to the north and west and Neighborhood Residential 6 (NR -6) to the south (see Exhibit 3). The Future Land Use Map in The Denton Plan designates the subject property as a Neighborhood Center (see Exhibit 4). The developer desires to build a single family subdivision across this entire subject site and is requesting the annexation for this purpose. The petition to be annexed was approved by City Council on May 6, 2014. As a result, staff has prepared a service plan and scheduled the annexation proceedings for this property. The proposed annexation request complies with annexation requirements, and this is the second of two public hearings required for the request. The first public hearing was held on August 5, 2014, and no comments were received. Annexation Requirements: Annexation should be considered when a property is located within the designated urbanizing area, is expected to accommodate urban growth in the next 20 years, and if the annexation is contiguous to existing city limits, city roads and rights -of -way. In addition, The Denton Plan calls for proactive annexation of land in the southern ETJ and other urbanizing areas that become attractive for urban development, due to close proximity to areas being subdivided. The tract of land being proposed is located in Denton's ETJ Division 1, it is considered an urbanizing area per The Denton Plan, and is adjacent to the city limits. The subject site is not City of Denton Page 1 of 4 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File M Al 4-0001 b, Version: 1 platted, and any subsequent subdivision or reconfiguration of this tract will be subject to the City's subdivision regulations. The developer plans to subdivide the immediately adjacent land to the north, west, and south within the city limits for residential development. This request is exempt from a municipal annexation plan per the Texas Local Government Code. Tx.LGC §43.061 establishes the standards by which municipalities must abide regarding annexation of areas exempted from the municipal annexation plan requirement. The following is a description of the steps that must be followed during the annexation procedure for areas exempt from an annexation plan: 1. Provide written notice of intent to property owners, DISD, railroads and public and private entities, if required; 2. Preparation of the Service Plan; 3. Notice of the hearings is published in the Denton Record - Chronicle and posted on the ity's Internet website; 4. City Council holds two public hearings on or after the 40' day, but before the 20' day before the date of the institution of proceedings (Ordinance Readings), at which all interested persons are heard; 5. City Council holds first Reading of the Annexation Ordinance; 6. City Council holds second Reading of the Annexation Ordinance and passes the ordinance; 7. Proper post- annexation preclearance and notice is completed. A schedule of these steps is included in Exhibit 5. Written Notice Requirement: Before the 30 1 day, before the date of the first hearing required under Section 43.063, a municipality shall give written notice of its intent to annex the area to the following: (1) Each property owner in the affected area, as indicated by the appraisal records furnished by the appraisal district for each county in which the affected area is located: (2) Each public entity, as defined by Tx.LGC §43.053, or private entity that provides services in the area proposed for annexation; and (3) Each railroad company that serves the municipality and is on the municipality's tax roll if the company's right -of -way is in the area proposed for annexation. A "public entity" includes a municipality, county, fire protection service provider, including a volunteer fire department, emergency medical services provider, including a volunteer emergency medical services provider, or a special district, as that term is defined by Tx.LGC §43.052. Id. at Tx.LGC §43.053(a). The City must also provide the written notice to all school districts located in an area to be annexed within the period prescribed for publishing of the first public hearing. The notice must include any financial impact on the district that may result from the annexation and the city's proposal to limit the effects of that financial impact. (Id. at Tx.LGC §43.905) Posting Requirement: In addition to the above written notice requirement, since the City has an internet website, the City is required to post notice of the hearings on the municipality's internet website and publish notice of the hearings in a newspaper of general circulation in the municipality and in the area proposed for annexation. Service Plan City of Denton Page 2 of 4 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: Al 4-0001 b, Version: 1 Tx.LGC § 43.065 sets forth the requirements relating to scheduling for the provision of municipal services for areas exempted from a municipal annexation plan. As such, a service inventory and service plan was prepared for the subject site of the proposed annexation request (A14- 0001). The service analysis is attached as Exhibit 6, and the service plan is attached as Exhibit 7. Notices were sent as required by State Law. In addition, notices were sent to property owners within 200 feet and residents within 500 feet. At the time of drafting this staff report, no responses were received. OPTIONS 1. Proceed with the annexation. 2. Amend the land area proposed for annexation. 3. Amend the Service Plan. 4. Discontinue annexation. RECOMMENDATION The Development Review Committee recommends APPROVAL of the proposed annexation request (A14- 0001). ESTIMATED SCHEDULE OF PROJECT Please see Exhibit 4 for a full PRIOR ACTION /REVIEW (Council, Boards, Commissions) City Council May 6, 2014 A14 -0001 Petition for Annexation, 7 -0 City Council August 5, 2014 A14 -0001 1" Public Hearing for Annexation FISCAL INFORMATION None at this time. FXHTRIT C 1. Staff Analysis 2. Site Location Aerial Map 3. Zoning Map 4. Future Land Use Map 5. Annexation Schedule 6. Service Analysis 7. Service Plan 8. Draft Ordinance Respectfully submitted: Brian Lockley, AICP, CPM Planning Director City of Denton Page 3 of 4 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: Al 4-0001 b, Version: 1 Prepared by: Michele Berry, AICP Associate Planner City of Denton Page 4 of 4 Printed on 8/15/2014 powo and by I ogiFfl ar nvl Exhibit I Staff Analysis CITY OF DENTON DEVELOPMENT REVIEW COMMITTEE STAFF REPORT P &Z Date: N/A TYPE: Annexation CC Date: August 19, 2014 PROJECT #: A14 -0001 Project Number: A14 -0001 Request: A petition to be annexed by the City of Denton Applicant: Randall Smith, 5428 Lake Victoria Ct. Flower Mound, TX 75022 Property Owner: Charles Byrom, Estate of C.L. Byrom, P.O. Box 603 Sanger, TX 76266 Location: The property is generally located northeast of the city limits, on the west side of Cooper Creek Road, approximately 1,200 feet north of Fishtrap Road and 800 feet south of Silver Dome Road. Size: Zoning Designation: Future Land Use: Case Planner: DRC Recommendation: Summary of Analysis: 40.33+ N/A Neighborhood Center Michele Berry The Development Review Committee recommends APPROVAL of A 14 -0001. The request is to grant a petition to annex to a property owner in the City of Denton Extra - Territorial Jurisdiction (ETJ). The proposed annexation would allow the developer to develop both the subject property and the adjacent properties that are within the city limits as a single - family subdivision. If annexed, the developer intends to bring forward a zoning case to establish the initial zoning on the property. The initial zoning cannot begin until the property in within the city limits since the City does not have zoning jurisdiction in the ETJ. Annexation should be considered when a property is located within the designated urbanizing area; is expected to accommodate urban growth in the next twenty years; and if the annexation is contiguous to existing city limits, city roads and rights -of -way. In addition, The Denton Plan calls for proactive annexation of land in the southern ETJ and other urbanizing areas that become attractive for urban development, due to close proximity to areas being subdivided. The tract of land being proposed is located in Denton's ETJ Division 1, it is considered an urbanizing area per The Denton Plan, and is adjacent to city limits. The subject site is not platted, and any subsequent subdivision or reconfiguration of this tract will be subject to the City's subdivision regulations. The developer plans to subdivide the immediately adjacent land to the north, west, and south within city limits for residential development. The annexation process is regulated by the Texas State Local Government Code. Per Section 43.028 of the Texas Local Government Code municipalities may annex by petition of property owners if the land is: (1) That is one half mile or less in width; (2) That is contiguous to the annexing municipality; and (3) That is vacant and without residents or on which fewer than three qualified voters reside. The 40.33 acre subject property meets all three of the above - referenced criteria. The petition to be annexed was approved by City Council on May 6, 2014. As a result, staff has prepared a service plan and scheduled the annexation proceedings for this property. Development Review Committee Based upon the information provided by the applicant, the Development Review Committee finds that with the recommended conditions the request IS CONSISTENT with the surrounding land uses and general character of the area, IS CONSISTENT with the Denton Plan, and IS CONSISTENT with the Denton Development Code. Based upon the findings -of -fact, the Development Review Committee (DRC) recommends APPROVAL of A14 -0001. 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: North: Northeast: NR -4 NR -4 ETJ Farm and ranch improvements Farm and ranch improvements Farm and ranch improvements West: Subject Property: East: NR -4 ETJ ETJ Acreage with or without ag. Farm and ranch improvements Farm and ranch improvements Southwest: South: Southeast: NR -6 NR -6 ETJ Acreage with or without ag. Acreage with or without ag. Acreage with or without ag. Source: City of Denton Geographical Information System and site visit by Cio) staff The developer intends to zone the property to match the surrounding properties that are within the City, Neighborhood Residential 4 (NR -4) and Neighborhood Residential 6 (NR -6), once the property is annexed. Summary of Surrounding Zoning Designations and Current Land Use Activity: Immediately surrounding the property is acreage with or without agricultural use and farm and ranch improvements. However, approximately 1,000 feet to the northwest is the Deer Forest Subdivision. In addition, a pre - application conference for a residential subdivision has been submitted for the area to the north, east, and south. This area was previously in a General Development Plan and is currently zoned NR -4 and NR -6. Comprehensive Plan: A. Consistency with Goals, Objectives and Strategies The Growth Management component of the Denton Plan designates this property as "Urbanizing Extraterritorial Jurisdiction." The Denton Plan also indicates this area is future residential on the Growth Management Plan. This project is consistent with The Denton Plan. It is proposing development in an area designated as urbanizing in the Growth Management Plan. Furthermore, the type of development proposed is residential and the area is designated a neighborhood center per the Future Land Use Map. B. Land Use Analysis The request is compatible with existing land uses and land use goals in The Denton Plan. The Denton Plan calls for annexation of approximately 15,000 additional acres for single - family uses. Since 1999, the City has annexed approximately 20,827 acres. A large portion of this area is the Greenbelt Corridor, which is anticipated to be preserved as open space. Other portions of the land that has been annexed will be developed with commercial or industrial uses The developer is pursuing the proposed annexation to create a residential subdivision. The annexed area will be part of a larger residential development by this developer. The developer anticipates residential development under the NR -4 and NR -6 zoning districts. This is compatible with the zoning adjacent to this property. In addition, there is an elementary school to the northwest and several churches serving as community focal points. By annexing the property, the City can ensure that its development regulations apply. The development would need to meet all City codes and criteria. The City has little control over the uses permitted, design, or standards if left in the ETJ, but the property can still be developed without being annexed or zoned. In addition, the property is located in an area surrounded by the City of Denton (See Exhibit 2). Nearest Elementary, Middle, and High School Name of School Approximate Distance From Subject Property Hodge Elementary 1,300± feet Strickland Middle 2.4± miles Ryan High School 2.1± miles Source: Denton Independent School District Nearest Fire, and EMS Station Name of Station Approximate Distance From Subject Fire Station 4 1 12,400± feet Source: City of Denton GIS, Fire Department, and EMS Water and Wastewater Demand and Capacity: The developer is required to extend services to serve the proposed property. There are adequate sewer and water services in the general area that will need to be extended with development, per City policy. Water is available by connecting to, and extending a main from, either the existing 12 -inch main at the Kings Row /Farris Road intersection, the existing 12 -inch main at the Cooper Creek Road/Mingo Road intersection, or one of the existing 12 -inch stubs off the 30 -inch main along Loop 288. Sewer is available via the existing 10 -inch gravity main along Cooper Creek Road. Roadways /Transportation Network: Cooper Creek Road is adjacent to the eastern boundary of the subject property and is classified as a Collector Road, not yet built to class standard per the Mobility Plan. Per the Denton Development Code (DDC) the developer may be required to make the required improvements to the road. Cooper Creek Road is maintained by the County, but since we are annexing the road, in addition to the property, it will put additional responsibility on the City to maintain the road. Per the Denton Mobility Plan, Windsor Street is a Secondary Major Arterial that will be extended to the subject property and along its northern edge. The developer will be required to dedicate this right -of -way, and make improvements per the regulations in the DDC. Right -of- way dedication is required through the Subdivision Ordinance which applies to properties in the city limits and in the ETJ. Environmental Conditions: A. Surface Water: There are no streams or areas of floodplain on site. B. Environmentally Sensitive Areas: The subject property is not encroaching into environmentally sensitive areas (ESAs) Electric: There are existing Denton Municipal Electric (DME) electric lines along the property frontage on Cooper Creek Road. Park Facilities: A. Name of park facilities currently serving this area: • Clear Creek Natural Heritage Center, approximately 6,800 feet to the northeast • Cooper Creek Open Space, approximately 5,400 feet to the south • Avondale Park, approximately 6,500 feet to the west Legend N Subject Property w E Citylimits 0 320 640 1,280 DEN Exhibit 5 Annexation Schedule A14 -0001 Annexation Tues., May 6, 2014 City Council hears petition to Annex Tues., August 5, 2014 City Council conducts first public hearing. • Public notice must be no less than 10 days and no more than 20 days before public hearing. ❑ Service Plan prepared and available for public review. Tues., August 19, 2014 City Council conducts second public hearing. • Public notice must be no less than 10 days and no more than 20 days before public hearing. Tues., September 9, 2014 City Council by a four -fifths vote institutes annexation proceedings. First reading of annexation ordinance. • Action must be more than 20 days after the second public hearing but less than 40 days from the first public hearing. Sun., September 14, 2014 Ordinance published • The ordinance cannot be acted upon until at least 30 days after publication. Tues., October 21, 2014 City Council by a four -fifths vote takes final action. Second reading and adoption of the annexation ordinance. • Council action must be more than 30 days after publication of ordinance and less than 90 days after council institutes annexation proceedings (adopts ordinance on 1st reading). The second reading of the ordinance could be held any time between October 14, 2014 and December 12, 2014. Annexations must be rigidly coordinated in conjunction with the City Council public hearing schedule due to specific timing mandates established by Texas State Law. The Texas Local Government Code requires that City Council institute annexation proceedings (1st Reading of the Ordinance) more than 20 days after the second City Council public hearing but less than 40 days from the first City Council public hearing. Exhibit 6 Service Analysis A14 -0001 Size - 40.33 acres Location - Northeast of Loop 288 and Mingo Road Proposed Use and Zoning - Single Family Residential, NR -4 and NR -6. Approximately 200 residential units anticipated, 420 -540 new residents 3. Improvements to the bend in Cooper Creek Road. 4. Ensuring staff student crossing to the adjacent elementary school Are any of these improvements presently scheduled to be done at state or federal expense? If yes, please identify facility and anticipated date improvements will begin. None of these projects are scheduled to be done at state or federal expense. Please list any drainage improvements that may require local funding, and include estimated cost (If no specific improvements can be determined, please make general comments regarding drainage.) Drainage will need to be provided per the standard regulations in the Denton Development Code and Denton Code of Ordinances. There are not major concerns with drainage at this time. Will additional equipment and facilities be needed as a specific result of this annexation and development? If yes, what types? Additional facilities are needed to promote the grow of the area. The developer will need to address the crossing of Windsor over Loop 288. However other improvements will not be provided at this time. Please comment on the cumulative impact of annexation and development: It has already been noted that while the specific area to be annexed does not necessitate the above traffic improvements, they will be requires for build -out of the general area per the existing zoning. Estimated average response time for this area based on current department conditions: Priority 5 minutes Non - Priority 16 minutes Average 8:19 minutes Appropriate average response time in the City based on current department conditions: Priority 5 minutes Non - Priority 16 minutes Average 8:19 minutes If annexed and developed as proposed will additional personnel be needed as a specific result of this proposal? If yes, how many and what type? No Will a police substation or other facility be needed to serve this area as a result of annexation and development? If yes, when should the new facilities be operational? No Please comment on the cumulative impact of annexation and development. This development is within the boundary of a current police district and will not require additional resources. At what population level would another police facility be required? N/A Is there an accepted facility /equipment to population ratio that can be used for planning purposes? NO Is there an accepted officer to population ratio that can be used for planning purposes? 1 full -time officer per 2,000 new residents. Fire Station that will serve area, name and distance from the property: Station 4, which is 2.5 to 3 miles away from the subject property. Estimated response time: 8 minutes Appropriate response time in the City: 5 minutes Are there currently plans to expand services in the area: There are plans in the CIP to relocate and rebuild Station 4. If annexed, will there be requested in the next CIP facilities to provided service to this area? No. Total estimate for funding equipment, employees and /or facilities needed to serve the area based on the annexation and the proposed development? N/A Please comment on the cumulative impact of annexation and development. At what population would another fire station be required? Based on current population and growth, a fire station is needed to serve the south east portion of the City. Is there an accepted facility /equipment to population ratio that can be used for planning purposes? Is there an accepted fire fighter to population ratio that can be used for planning purposes? The current Strategic Plan, the Department utilized a widely accepted planning tool based on workload for future planning. Please see the attached document for further details. EMS Staff: Laura Behrens Phone: 940 349 -7381 (Note: Please see § 43.053 (t) below for information to be provided) Average dispatch and delivery time: 8 minutes Schedule of equipment, including vehicle: There is currently an engine at Fire Station 4 that will serve as the first responder. Summary of operating and capital expenditures: Based on the projected residential growth, a medic unit would need to be added to Station 4. Currently, the closest front line medic unit would come from Station 1 or Station 5. The cost of adding a new medic crew is estimated at $870,000. This would include 6 new FTE's, an ambulance, equipment, training, and supplies. Additional Comments: With additional growth in the northeast direction is may be desirable to add a ambulance to Fire Station 4 with its relocation and reconstruction. Changes in the connectivity to the loop will influence the preferred location of the new station. While this annexation does not create the entire need for these services, it is part of the overall growth in this sector of the City that does require additional services. Is residential solid wastes service available to the proposed area? Yes. What is the estimated cost to provide this area with solid waste service? Please separate equipment from personnel. Residential refuse and recycling carts are provided for weekly collections, ranging in price from $25.00 - $30.90 per month depending on cart size selected. What is the typical revenue collected per household? $26.00 per month for standard carts. Will additional equipment be needed to serve this area if annexed and developed? If yes, please list type and cost. Additional carts will be required, which will come from current inventory. Each cart is purchased for approximately $50.00. Will additional employees be needed to serve this area if annexed and developed? If yes, please list type and cost. No. Please comment on the cumulative impact of annexation and development: Solid Waste services can be provided by added these sites to existing routes. At what population level would additional equipment be required? Not applicable. Is there an acceptable equipment to population ratio that can be used for planning purposes? No Is there an acceptable employee to population ratio that can be used for planning purposes? No PARKS Staff: Jim Mays Phone: 940 - 349 -7465 (Note: Please see § 43.053 (t) below for information to be provided) What neighborhood park and recreation facilities are currently serving this area or are capable of serving this area if annexed and /or developed? There are no current park facilities that would serve this area. The developer would need to dedicate park land or fees in lieu of parkland as is required by the Denton Development Code. The area is near the Clear Creek nature Preserve but this a regional draw park and does not provide the amenities of a neighborhood park to meet local needs. What projects and or equipment will be needed to adequately serve this area is annexed? Requirements from the Denton Development Code are based on providing and maintaining adequate services. The Park Land Dedication Ordinance applies to developments with residential subdivisions of five (5) dwelling units or more. The Park Land Dedication and Park Development Fees are based on a formula of 2.5 x the number of residential units x 1.8 for multifamily or 2.8 for single family divided by 1000. This figure equals the number of acres that will need to be donated to the city for green space, or a settlement of cash in lieu of land in the amount comparable to that of the appraised valuation of the land developed. A Park Development Fee will be assessed at time of obtaining building permits equal to $187 per multifamily residential unit or $291 per single family unit. Contact Jim Mays in Parks Planning at 940 - 349 -7465 for more details. Education services currently provided by: Strickland Middle School, Ryan High School, Hodge Elementary School. Expected student generation: Elementary — 80 students Middle — 34 students High — 36 students If annexed can anticipated service demands be met with using existing materials, facilities and personnel? If not, what will be required? Yes, the annexed area service demands can be met with existing resources. Estimate additional funding needed based on proposed annexation and development No additional funding needed based on this annexation Will projected school taxes from this development provide that additional funding? Residential homes will pay taxes for schools, though they are generally also the heaviest users of school facilities. Please comment on the cumulative impact of annexation and development: As growth continues in Denton ISD area the School District will continue to respond to this growth. The Planning department continues to inform of the school district of incoming residential development proj ects. What is the distance to, location of, and size of the nearest City of Denton electric Line? There are existing overhead DME electric lines on Cooper Creek Road. What type of line and facilities would be required to serve this area? In addition to the existing lines the developer will need to pay for installation of all needed lines and equipment per the DME Electric Service Standards. Are any new facilities proposed for construction to serve this area? In addition to the existing electric lines, new electric utitlity infrastructure to provide electric service to the development will be installed per Denton Municipal Electric Service Standards. Are there any potential responsibilities if this area is annexed? No. Please comment on the cumulative impact of annexation and development: At what population would additional service be required? Service extensions are provided per Denton Municipal Electric Services Standards. Is there an accepted facility /equipment to population ratio that can be used for planning purposes? No. Is there an accepted employee to population ratio that can be used for planning purposes? No. Exhibit 7 Service Plan 2014 Annexation A14 -0001 L AREA ANNEXED The area to be annexed includes approximately 40.33 acres of land contained within the northeastern quadrant of the City of Denton's Extraterritorial Jurisdiction (ETJ), Division 1. The proposed annexation contains one owner and no residents. II. INTRODUCTION This service plan has been prepared in accordance with the Texas Local Government Code, Sections 43.021; 43.065; and 43.056(b) -(o) (Vernon 2008, as amended). Municipal facilities and services to the annexed areas described above will be provided or made available on behalf of the City of Denton in accordance with the following plan. The City of Denton shall provide the annexed tract the levels of service, infrastructure, and infrastructure maintenance that are comparable to the levels of service, infrastructure, and infrastructure maintenance available in other parts of the City of Denton with similar topography, land use, and population density. III. AD VALOREM (PROPERTY OWNER) TAX SERVICES A. Police Protection Police protection from the City of Denton Police Department shall be provided to the areas annexed at a level consistent with current methods and procedures presently provided to similar areas on the effective date of the ordinance. Some of these services include: 1. Normal patrols and responses; 2. Handling of complaints and incident reports; 3. Special units, such as traffic enforcement, investigations and special weapons; and 4. Coordination with other public safety support agencies. As development commences in these areas, sufficient police protection, including personnel and equipment will be provided to furnish these areas with the level of police services consistent with the characteristics of topography, land utilization and population density of the areas. Upon ultimate development, police protection will be provided at a level consistent with other similarly situated areas within the city limits. B. Fire Protection The Denton Fire Department (DFD) will provide emergency and fire prevention services to the annexation areas. These services include: 1 I . Fire suppression and rescue; 2. Pre - hospital medical services including triage, treatment and transport by Advanced Life Support (ALS) fire engines, trucks and ambulances; 3. Hazardous materials response and mitigation; 4. Emergency prevention and public education efforts; 5. Technical rescue response; and 6. Construction Plan Review and required inspections. Fire protection from the City of Denton shall be provided to the areas annexed at a level consistent with current methods and procedures presently provided to similar areas of the City of Denton on the effective date of the ordinance. As development commences in these areas, sufficient fire protection, including personnel and equipment will be provided to furnish these areas with the level of services consistent with the characteristics of topography, land utilization and population density of the areas. It is anticipated that fire stations planned to serve areas currently within the City of Denton will be sufficient to serve areas now being considered for annexation. Upon ultimate development, fire protection will be provided at a level consistent with other similarly situated areas within the city limits. C. Emergency Medical Service The Denton Fire Department (DFD) will provide the following emergency and safety services to the annexation areas. These services include: 1. Emergency medical dispatch and pre - arrival First Aid instructions; 2. Pre - hospital emergency Advanced Life Support (ALS) response; and transport; 3. Medical rescue services. Emergency Medical Services (EMS) from the City of Denton shall be provided to the areas annexed at a level consistent with current methods and procedures presently provided to similar areas of the City of Denton on the effective date of the ordinance. As development commences in these areas, sufficient EMS, including personnel and equipment will be provided to furnish these areas with the level of services consistent with the characteristics of topography, land utilization and population density of the areas. Upon ultimate development, EMS will be provided at a level consistent with other similarly situated areas within the city limits. D. Solid Waste 2 Solid Waste and Recycling Collection Services will be provided to the newly annexed property immediately upon the effective date of the annexation at a level consistent with current methods and procedures presently provided to similar areas within the city. Private solid waste collection service providers operating in the affected area immediately prior to annexation and currently providing customers with service, may continue to provide their existing service for up to 2 years in accordance with Texas Local Government Code. E. Wastewater Facilities The proposed annexation area is within the City of Denton Sewer Service Area as defined by Certificate of Convenience and Necessity (CCN) Number 20072 as issued by the Texas Commission on Environmental Quality (TCEQ). As development commences in these areas, sanitary sewer mains will be extended in accordance with the provisions of the City's codes, ordinances and regulations. City participation in the costs of these extensions shall be in accordance with applicable City ordinances and regulations. Capacity shall be provided consistent with the characteristics of topography, land utilization, and population density of the areas. Sanitary sewer mains and lift stations installed or improved to City standards within the annexed areas which are located within dedicated easement, rights -of- way, or any other acceptable location approved by the City Engineer, shall be maintained by the City on the effective date of this ordinance. Operation and maintenance of wastewater facilities in the annexed areas that are within the service area of another water utility will be the responsibility of that utility. Operation and maintenance of private wastewater facilities in the annexed area will be the responsibility of the owner. F. Water Facilities The proposed annexation area is within the City of Denton Water Service Area as defined by Certificate of Convenience and Necessity (CCN) Number 10195 as issued by the Texas Commission on Environmental Quality (TCEQ). Connections to existing City of Denton water distribution mains for water service will be provided in accordance with existing City ordinances and policies. Upon connection to existing distribution mains, water service will be provided at rates established by city ordinance. As new development occurs within these areas, water distribution mains will be extended in accordance with Denton's Codes, ordinances and utility service policies. City participation in the costs of these extensions shall be in accordance with Denton's codes and ordinances. Water service capacity shall be provided consistent with the characteristics of topography, land use and population density of the area. 3 Operation and maintenance of water facilities in the annexed area that are within the service area of another water utility will be the responsibility of that utility. Existing developments, businesses or homes that are on individual water wells or private water systems will be allowed to continue to remain on these systems until a request for water service is made to the City. These requests for service will be handled in accordance with the applicable utility service line extension and connection policies currently in place at the time the request for service is received. G. Roads and Streets Emergency street maintenance shall be provided within the annexation areas on the effective date of the applicable ordinance of acceptance. Routine maintenance will be provided within the annexation areas and will be scheduled as part of the City's annual program and in accordance with the current policies and procedures defined by the ordinance and /or as established by the City Council. Any construction or reconstruction will be considered within the annexation areas on a City wide basis and within the context of the City's CIP and /or yearly fiscal budgetary allotments by the City Council. Roadway signage and associated posts will be replaced in priority of importance starting with regulatory signs, then warning signs, then informational signs and in conformance with fiscal allotments by the City Council. All exiting signs will be reviewed for applicability and based upon an engineering study. New signs will be installed when necessary and based upon an engineering study. Routine maintenance of road /street markings will be placed on a priority listing and scheduled within the yearly budgetary allotments by the City Council. H. Parks, Playgrounds, Swimming Pools Residents within the areas annexed may utilize all existing park and recreation facilities, on the effective date of this ordinance. Fees for such usage shall be in accordance with current fees established by ordinance. As development commences in these areas, additional park and recreation facilities shall be constructed based on park policies defined in the Park Master Plan and as specified in the Park Dedication and Development Ordinance. The general planned locations and classifications of parks will ultimately serve residents from the current City limits and residents from areas being considered for annexation. L Publicly Owned Facilities Any publicly owned facility, building, or service located within the annexed area, and not otherwise owned or maintained by another governmental entity, shall be 0 maintained by the City of Denton on the effective date of the annexation ordinance. J. Other Services Other services that may be provided by the City of Denton, such as municipal and general administration will be made available on the effective date of the annexation. The City of Denton shall provide level of services, infrastructure, and infrastructure maintenance that is comparable to the level of services, infrastructure, and infrastructure maintenance available in other parts of the City of Denton with topography, land use, and population density similar to those reasonably contemplated or projected in the area. III. UNIFORM LEVEL OF SERVICES IS NOT REQUIRED Nothing in this plan shall require the City of Denton to provide a uniform level of full municipal services to each area of the City, including the annexed area, if different characteristics of topography, land use, and population density are considered a sufficient basis for providing different levels of service. IV. TERM This service plan shall be valid for a term of ten (10) years. Renewal of the service plan shall be at the discretion of City Council. V. AMENDMENTS The service plan may be amended if the City Council determines at a public hearing that changed conditions or subsequent occurrences make this service plan unworkable or obsolete. The City Council may amend the service plan to conform to the changed conditions or subsequent occurrences pursuant to Texas Local Government Code, Section 43.056. 5 Exhibit 8 Draft Ordinance s: \legal \our documents \ordinances \14 \a14- 0001.docx ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON ANNEXING 40.33 ACRES OF LAND, MORE OR LESS, GENERALLY LOCATED ON THE WEST SIDE OF COOPER CREEK ROAD, APPROXIMATELY 800 FEET SOUTH OF SILVER DOME ROAD AND APPROXIMATELY 1,800 FEET NORTH OF MINGO ROAD MORE SPECIFICALLY DESCRIBED AND DEPICTED IN EXHIBITS "A" AND "B "; APPROVING A SERVICE PLAN FOR THE SUBJECT PROPERTY AND TEMPORARILY PLACING THE PROPERTY IN THE RURAL RESIDENTIAL — 5 (RD -5) ZONING DISTRICT; PROVIDING FOR A CORRECTION OF THE CITY MAP TO INCLUDE THE ANNEXED LANDS; PROVIDING FOR A SAVINGS CLAUSE AND AN EFFECTIVE DATE. WHEREAS, the property owner, Charles Byrom, has petitioned for annexation of the subject property described and depicted in Exhibits "A" and "B ", attached hereto and incorporated herein by reference and; WHEREAS, the property meets criteria of Section 43.028 of the Texas Local Government Code related to petitions for annexation, and; WHEREAS, the City Council accepted the petition to annex and directed staff to proceed with preparing a service plan and annexation of the property after hearing the arguments for and against annexation on May 6, 2014, and; WHEREAS, staff prepared an inventory of existing service and a service plan for the subject property and the service plan is attached as Exhibit "C ", and; WHEREAS, letters of intent to annex were sent to property owners and public and private entities that provide services for the area as required by Section 43.062 of the Texas Local Government Code on July 3, 2014, and; WHEREAS, two public hearing were held with the City Council on August 5, 2014 and August 19, 2014 which were noticed in accordance with Section 43.063, Subchapter C -1, of the Texas Local Government Code, and ; WHEREAS, the City Council found the proposed annexation to be in keeping with The Denton Plan and the generally orderly growth of the City, and; WHEREAS, annexation proceedings were instituted for the property described herein at the City Council Meeting on September 9, 2014, and; WHEREAS, this ordinance has been published in full one time in the official newspaper of the City of Denton after annexation proceedings were instituted and thirty days prior to City Council taking final action, as required by the City Charter; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The land described and depicted in Exhibits "A" and "B ", attached hereto and incorporated herein by reference, is annexed to the City of Denton, Texas and the official maps of the City of Denton shall be updated to reflect this annexation. Exhibit 8 Draft Ordinance SECTION 2. The service plan attached as Exhibit "C" and incorporated herein by reference, which provides for the extension of municipal services to the annexed property, is approved as a part of this ordinance. SECTION 3. The property annexed herein is temporarily designated as a Rural Residential 5 (RD -5) zoning district until such time as the property is officially zoned. SECTION 4. Should any part of this ordinance be held illegal for any reason, the holding shall not affect the remaining portions of this ordinance and the City Council hereby declares it to be its purpose to annex to the City of Denton all of the real property described and depicted in Exhibits "A" and "B" regardless of whether any other part of the described property is hereby effectively annexed to the City if any part of the real property annexed is already within the limits of any other city, town or village, or is not within the City of Denton's jurisdiction to annex, the same is hereby excluded from the territory annexed as fully as if the excluded area were expressly described in this ordinance. SECTION 5. This ordinance shall be effective immediately upon its passage. PASSED AND APPROVED this the day of )2014. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: ° �/ Exhibit 8 Draft Ordinance EXHIBIT A Being all that certain tract of land situated in the Thomas H. Living Survey, Abstract Number 729, Denton County, Texas and being all of a tract of land described in the deed to C.L. Byrom and wife, Anita Byrom as recorded in Volume 308, Page 264 of the Deed Records of said County, the subject tract as recognized and occupied on the ground being more particularly described as follows: BEGINNING at a'/2' iron rod found in the East Line of a tract of land described in a deed to Windsor Oaks Residential Trust #59 as recorded in Document Number 2005- 103733, Real Property records of said County. Also being in the South line of a tract of land described in a deed to Edward F. Wolski as recorded in Document Number 2004- 152076, Real Property Records of said County, and the Northwest corner of said Byrom tract; Thence South 88 degrees 42 minutes 55 seconds East with the North line thereof along and near a fence a distance of 1217.92 feet to a bent 1/2" iron rod found in a road under apparent public use posted as Cooper Creek Road for the Northeast corner of said Byrom tract; Thence South 02 degrees 45 minutes 58 seconds West with the East line thereof, along or near the centerline of said road a distance of 1456.94 feet to a 5/8" iron rod found for the Southeast corner of said Byrom tract; Thence North 87 degrees 26 minutes 28 seconds West with the South line thereof, along and near a fence, a distance of 1216.50 feet to a' /2' iron rod found for the Southwest corner of said Byrom tract; Thence North 02 degrees 43 minutes 30 seconds East with the West line thereof, along and near a fence, a distance of 1429.86 feet to the place of beginning and enclosing 40.33 Acres, more or less. Exhibit Draft Ordinance EXHIBIT S —�� _��� „m E, a .»� .. � � . �§ \ - \Q /� �\ ° a �~ . � �y ! . ' z y: nr, ...... . i{/. i ®! : q! _ - - -- g \ � \ \g /,. )_ ƒ \\G) Exhibit 8 Draft Ordinance EXHIBIT C CITY OF DENTON SERVICE PLAN 2014 Annexation A14 -0001 I. AREA ANNEXED The area to be annexed includes approximately 40.33 acres of land contained within the northeastern quadrant of the City of Denton's Extraterritorial Jurisdiction (ETJ), Division 1. The proposed annexation contains one owner and no residents. II. INTRODUCTION This service plan has been prepared in accordance with the Texas Local Government Code, Sections 43.021; 43.065; and 43.056(b) -(o) (Vernon 2008, as amended). Municipal facilities and services to the annexed areas described above will be provided or made available on behalf of the City of Denton in accordance with the following plan. The City of Denton shall provide the annexed tract the levels of service, infrastructure, and infrastructure maintenance that are comparable to the levels of service, infrastructure, and infrastructure maintenance available in other parts of the City of Denton with similar topography, land use, and population density. III. AD VALOREM (PROPERTY OWNER) TAX SERVICES A. Police Protection Police protection from the City of Denton Police Department shall be provided to the areas annexed at a level consistent with current methods and procedures presently provided to similar areas on the effective date of the ordinance. Some of these services include: 1. Normal patrols and responses; 2. Handling of complaints and incident reports; 3. Special units, such as traffic enforcement, investigations and special weapons; and 4. Coordination with other public safety support agencies. As development commences in these areas, sufficient police protection, including personnel and equipment will be provided to furnish these areas with the level of police services consistent with the characteristics of topography, land utilization and population density of the areas. Upon ultimate development, police protection will be provided at a level consistent with other similarly situated areas within the city limits. B. Fire Protection The Denton Fire Department (DFD) will provide emergency and fire prevention services to the annexation areas. These services include: 1. Fire suppression and rescue; Exhibit 8 Draft Ordinance 2. Pre- hospital medical services including triage, treatment and transport by Advanced Life Support (ALS) fire engines, trucks and ambulances; 3. Hazardous materials response and mitigation; 4. Emergency prevention and public education efforts; 5. Technical rescue response; and 6. Construction Plan Review and required inspections. Fire protection from the City of Denton shall be provided to the areas annexed at a level consistent with current methods and procedures presently provided to similar areas of the City of Denton on the effective date of the ordinance. As development commences in these areas, sufficient fire protection, including personnel and equipment will be provided to furnish these areas with the level of services consistent with the characteristics of topography, land utilization and population density of the areas. It is anticipated that fire stations planned to serve areas currently within the City of Denton will be sufficient to serve areas now being considered for annexation. Upon ultimate development, fire protection will be provided at a level consistent with other similarly situated areas within the city limits. C. Emer2ency Medical Service The Denton Fire Department (DFD) will provide the following emergency and safety services to the annexation areas. These services include: 1. Emergency medical dispatch and pre - arrival First Aid instructions; 2. Pre - hospital emergency Advanced Life Support (ALS) response; and transport; 3. Medical rescue services. Emergency Medical Services (EMS) from the City of Denton shall be provided to the areas annexed at a level consistent with current methods and procedures presently provided to similar areas of the City of Denton on the effective date of the ordinance. As development commences in these areas, sufficient EMS, including personnel and equipment will be provided to furnish these areas with the level of services consistent with the characteristics of topography, land utilization and population density of the areas. Upon ultimate development, EMS will be provided at a level consistent with other similarly situated areas within the city limits. D. Solid Waste Solid Waste and Recycling Collection Services will be provided to the newly annexed property immediately upon the effective date of the annexation at a level consistent with current methods and procedures presently provided to similar areas within the city. Private solid waste collection service providers operating in the affected area immediately prior to annexation and currently providing customers with service, may continue to provide their existing service for up to 2 years in accordance with Texas Local Government Code. E. Wastewater Facilities Exhibit 8 Draft Ordinance The proposed annexation area is within the City of Denton Sewer Service Area as defined by Certificate of Convenience and Necessity (CCN) Number 20072 as issued by the Texas Commission on Environmental Quality (TCEQ). As development commences in these areas, sanitary sewer mains will be extended in accordance with the provisions of the City's codes, ordinances and regulations. City participation in the costs of these extensions shall be in accordance with applicable City ordinances and regulations. Capacity shall be provided consistent with the characteristics of topography, land utilization, and population density of the areas. Sanitary sewer mains and lift stations installed or improved to City standards within the annexed areas which are located within dedicated easement, rights -of- way, or any other acceptable location approved by the City Engineer, shall be maintained by the City on the effective date of this ordinance. Operation and maintenance of wastewater facilities in the annexed areas that are within the service area of another water utility will be the responsibility of that utility. Operation and maintenance of private wastewater facilities in the annexed area will be the responsibility of the owner. F. Water Facilities The proposed annexation area is within the City of Denton Water Service Area as defined by Certificate of Convenience and Necessity (CCN) Number 10195 as issued by the Texas Commission on Environmental Quality (TCEQ). Connections to existing City of Denton water distribution mains for water service will be provided in accordance with existing City ordinances and policies. Upon connection to existing distribution mains, water service will be provided at rates established by city ordinance. As new development occurs within these areas, water distribution mains will be extended in accordance with Denton's Codes, ordinances and utility service policies. City participation in the costs of these extensions shall be in accordance with Denton's codes and ordinances. Water service capacity shall be provided consistent with the characteristics of topography, land use and population density of the area. Operation and maintenance of water facilities in the annexed area that are within the service area of another water utility will be the responsibility of that utility. Existing developments, businesses or homes that are on individual water wells or private water systems will be allowed to continue to remain on these systems until a request for water service is made to the City. These requests for service will be handled in accordance with the applicable utility service line extension and connection policies currently in place at the time the request for service is received. G. Roads and Streets Emergency street maintenance shall be provided within the annexation areas on the effective date of the applicable ordinance of acceptance. Routine maintenance will be provided within the annexation areas and will be scheduled as part of the City's annual Exhibit 8 Draft Ordinance program and in accordance with the current policies and procedures defined by the ordinance and /or as established by the City Council. Any construction or reconstruction will be considered within the annexation areas on a City wide basis and within the context of the City's CIP and /or yearly fiscal budgetary allotments by the City Council. Roadway signage and associated posts will be replaced in priority of importance starting with regulatory signs, then warning signs, then informational signs and in conformance with fiscal allotments by the City Council. All exiting signs will be reviewed for applicability and based upon an engineering study. New signs will be installed when necessary and based upon an engineering study. Routine maintenance of road /street markings will be placed on a priority listing and scheduled within the yearly budgetary allotments by the City Council. H. Parks, Playgrounds, Swimming Pools Residents within the areas annexed may utilize all existing park and recreation facilities, on the effective date of this ordinance. Fees for such usage shall be in accordance with current fees established by ordinance. As development commences in these areas, additional park and recreation facilities shall be constructed based on park policies defined in the Park Master Plan and as specified in the Park Dedication and Development Ordinance. The general planned locations and classifications of parks will ultimately serve residents from the current City limits and residents from areas being considered for annexation. I. Publicly Owned Facilities Any publicly owned facility, building, or service located within the annexed area, and not otherwise owned or maintained by another governmental entity, shall be maintained by the City of Denton on the effective date of the annexation ordinance. J. Other Services Other services that may be provided by the City of Denton, such as municipal and general administration will be made available on the effective date of the annexation. The City of Denton shall provide level of services, infrastructure, and infrastructure maintenance that is comparable to the level of services, infrastructure, and infrastructure maintenance available in other parts of the City of Denton with topography, land use, and population density similar to those reasonably contemplated or projected in the area. III. UNIFORM LEVEL OF SERVICES IS NOT REQUIRED Nothing in this plan shall require the City of Denton to provide a uniform level of full municipal services to each area of the City, including the annexed area, if different characteristics of topography, land use, and population density are considered a sufficient basis for providing different levels of service. IV. TERM This service plan shall be valid for a term of ten (10) years. Renewal of the service plan shall be at the discretion of City Council. V. AMENDMENTS The service plan may be amended if the City Council determines at a public hearing that changed conditions or subsequent occurrences make this service plan unworkable or obsolete. The City Council Exhibit 8 Draft Ordinance may amend the service plan to conform to the changed conditions or subsequent occurrences pursuant to Texas Local Government Code, Section 43.056. City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN"1, IN File #: ID 14 -0443, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Denton Municipal Electric CM/ ACM: Howard Martin, 940 - 349 -8232 DATE: August 19, 2014 SUBJECT Hold a public hearing and consider approval of a resolution approving the site proposed for reconstruction the existing Locust Substation in the general area between the intersection of Locust and E. Daugherty and the intersection of Locust and W. Collins St., in the City of Denton, Denton County, Texas. BACKGROUND The Denton Municipal Electric (DME) Capital Improvement Plan includes a project to reconstruct Locust Substation. The existing station capacity is inadequate for expected future load. Also, DME is working toward conversion of the 69KV transmission system to 138KV. Since this station is rated at 69KV it will need to be rebuilt to 138KV requirements. Rebuilding on the existing site is not feasible because of the space required for 138KV equipment. Exhibit 2 is a "Project Information" sheet that provides a project description, a discussion of need, and information on site selection. DME held an open house to inform the community regarding the siting of the proposed Locust Substation reconstruction and received feedback. The meeting was held at the Civic Center in Denton on the evening of October 16, 2013. Exhibit 7 "Open House Report" provides details on attendance and comments received. This information for this Open House included the siting of the Locust substation. OPTIONS 1. Recommend approval to reconstruct Locust Substation site on site "Option 4." 2. Do not recommend approval of substation site "Option 4" and direct that other actions be taken. RECOMMENDATION In light of information received during the October 16th open house, the feedback received from the Public Utilities Board Public Hearing, and the unanimous 6 -0 vote from the PUB on July 28, 2014, DME recommends that the Denton City Council adopt a resolution approving "Option 4" as the site to reconstruct the Locust Substation. ESTIMATED SCHEDULE OF PROJECT (Contingent on site selection) PRIOR ACTION /REVIEW (Council, Boards, Commissions) The Public Utilities Board and City Council were informed of this October 16th open house via email on City of Denton Page 1 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl File #: ID 14 -0443, Version: 1 October 8, 2013. The PUB held a public hearing on July 28, 2014 and selected "Option 4" by unanimous (6 -0) decision. FISCAL INFORMATION The overall 69kV Transmission Line Rebuild project 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 (ERGOT). The purchase price of $221,527.26 plus closing costs as prescribed in the Agreement are to be funded through these funding sources. BID INFORMATION N/A EXHIBITS 1. Resolution 2. Project Information 3. System Map 4. Location Map 5. Site Options Map 6. Substation Reconstruction Map 7. Open House Report 8. Sign in sheet from the October 16 Open House. 9. Comment sheets from the October 16 Open House. 10. PUB Public Hearing Draft Minutes Respectfully submitted: Phil Williams General Manager, DME Prepared by: Smith L. Day Compliance Manager, DME City of Denton Page 2 of 2 Printed on 8/15/2014 pow[ lod by I ogiFfl ar nvl s: \legal \our documents \resolutions \14 \locust substation resolution.docx EXHIBIT I RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON REGARDING THE PROPOSED SITE FOR RECONSTRUCTION OF THE CURRENT LOCUST SUBSTATION IN THE GENERAL AREA BETWEEN THE INTERSECTION OF LOCUST ST. AND E. DAUGHERTY ST. AND THE INTERSECTION OF LOCUST ST. AND W. COLLINS ST., IN THE CITY OF DENTON, DENTON COUNTY, TEXAS, AS PART OF DENTON MUNICIPAL ELECTRIC'S SERVICE TERRITORY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton's electric department, Denton Municipal Electric ( "DME "), has previously announced that in order to serve future load and needs of its customers the necessity exists for the reconstruction of the current Locust Substation in the general area between the intersection of Locust St. and E. Daugherty St. and the intersection of Locust St. and W. Collins St. in the central area of DME's certificated service territory; and WHEREAS, DME has diligently examined a number of possible locations in the central part of the City, near the present Locust Substation, in order to determine an appropriate site for reconstruction of the substation and has considered the impact on homeowners, displacement of residents, cost of easements, transmission line construction costs, engineering factors, and other relevant factors to the extent reasonably possible; and WHEREAS, DME staff then conducted an open house, with advanced notices being mailed to landowners who own property within 500 feet of the potential sites, in order to inform the public regarding the sites for the proposed Locust Substation reconstruction and receive public input on the same; and WHEREAS, after the open house, the City's Public Utility Board ( "PUB "), during a regularly scheduled open meeting, held a public hearing to allow further public input before making a recommendation to the City Council for the location of the Locust Substation reconstruction; and WHEREAS, the PUB, after considering all public comment and the recommendations of DME staff, recommended to City Council by a vote of 6 -0 that "Option 4" be selected as the site for the Locust Substation reconstruction; and WHEREAS, the City Council, after considering all of the facts and circumstances, is of the opinion, and the City Council finds, that "Option 4" is a feasible site option for the Locust Substation reconstruction; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council approves "Option 4" as the site for Denton Municipal Electric's Locust Substation reconstruction and the same is depicted as "Option 4" on the attached map marked as Exhibit "1" and directs DME to acquire the site designated as "Option 4" in substantial compliance with what is shown on the attached map. SECTION 2. The recitals set forth in the preamble to this resolution are hereby incorporated in, and are made a part of this resolution for all purposes. SECTION 3. This resolution shall take effect immediately from and after its adoption. PASSED AND APPROVED this the day of , 2014. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY EN APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Exhibit 2 Project Information Project Information Locust Substation Reconstruction Description of the Proiect Denton Municipal Electric City of Denton 1659 Spencer Road Denton, TX 76205 August 19, 2014 Denton Municipal Electric (DME) has identified several projects that are critical to maintaining reliability and allowing Denton to continue to grow. Reconstruction of the Locust Substation is one project that is necessary. Information on the project is presented herein (see attached map for project location options). The project will consist of the following: ■ Construction of a new substation. ■ Rerouting of transmission and distribution lines into the new substation. ■ Retiring the equipment in the existing station. Four site alternatives have been considered for reconstruction of the station. ■ Reconstruction on the existing site. ■ Reconstruction on the existing site with expansion onto the property to the south. • Reconstruction on an open site north of the existing substation (southwest of the intersection of South Locust and West Collins). • Reconstruction on an open site to the east of the existing substation (north of East Daugherty Street and east of the railroad track that is along Locust Street). A map is attached that shows location options that have been identified at this time. A substation location could be chosen that is different from those locations shown on the map. All new facilities will be owned and operated by DME. Why is the proiect needed? State and federal laws mandate specific and well defined performance requirements for utility systems. DME must comply with these requirements not only to ensure regulatory compliance, but more importantly, to maintain the best reliability of electric service to our customers. Annual studies are completed to determine whether or not each transmission line segment and substation section provide the performance required by the rules. If performance deficiencies are identified, projects must be defined and constructed that resolve the deficit. In determining a Project Information Locust Substation Reconstruction August 19, 2014 solution for a deficiency, alternatives are considered that take into account benefits, impacts, and costs. In the case of Locust Substation, there are three primary reasons that the station must be rebuilt. First, the capacities of the electrical bus (conductors), circuit breakers, and switches in the station are no longer adequate for the electrical flow that the station could experience. Second, DME is working toward conversion of the 69,000 volt (69kV) transmission system to 138,000 volts (138kV) in the 2018 timeframe. The existing station is only rated for Proiect Alternatives DME has investigated four alternatives for reconstruction of the Locust Substation. Two were considered that would use the existing site. Two were considered that would use new sites. The attached map shows the four options. After evaluation, it has been determined that it will not be possible to reconstruct the station on the existing site without extended outages that would have to last for many months at a time. The existing station equipment and foundations would have to be removed to make room for reconstruction because of conflicts between the new installation and the existing. Lengthy outages and the associated loss of capacity to serve the central area of the city during h 1 a bl 1 ris k L 03t; outages resu t m unacept e re ty a+..� arri.rruuuru s. Consequently, DME is opposed to use of the existing site for the reconstruction (Options 1 or 2). Rebuilding the Locust substation on a new site will allow complete construction and testing of the new substation while leaving the existing substation in service with its full capability available. Construction of and transition to the new substation would then require only minimum outages. The Site Selection Process The analysis phase of project development only identifies that a project is needed, what the project should accomplish, and a potential area for the needed project. It does not mandate the 2 LOCATION MAP ULG4L,L1. s. Consequently, DME is opposed to use of the existing site for the reconstruction (Options 1 or 2). Rebuilding the Locust substation on a new site will allow complete construction and testing of the new substation while leaving the existing substation in service with its full capability available. Construction of and transition to the new substation would then require only minimum outages. The Site Selection Process The analysis phase of project development only identifies that a project is needed, what the project should accomplish, and a potential area for the needed project. It does not mandate the 2 Project Information August 19, 2014 Locust Substation Reconstruction use of a specific site. The site selection process, which includes requesting public input, is employed to assist with determining the location for the new substation. Alternatives have been identified for the substation reconstruction and are depicted on the attached map. Identification of these sites is the starting point for the selection process. This open house is intended to communicate the need for the project and to provide an opportunity for individuals to learn about the project and make comments. Potentially affected land owners and those within 500 feet of any of the alternative sites have been notified by mail of the project and the public open house. The City Council has approved the substation site selection process. This process presents the public with several opportunities to provide input. The first step is for DME to conduct an open house where information is made available on the proposed project, questions may be asked, recommendations can be made, and written or verbal comments may be provided. Interested individuals may also contact DME at any time. Contact information for DME is provided below and on the comment form handed out at the open house. After all comments received at the open house for a project are compiled, DME will consider all comments, complete additional reviews as appropriate, and will provide a recommendation to the Public Utilities Board (PUB). During its consideration of DME's proposal, the PUB will conduct a public hearing and direct DME to take additional actions or recommend a site for consideration by the City Council. During its consideration of the PUB's findings, the City Council will again conduct a public hearing to receive comments from interested residents. Ultimately, the City Council will select the site for the proposed substation. DME will provide notice by mail for the open house and for the PUB and City Council public hearings. DME's contact for questions: Brian Daskam Energy Services Development Officer Phone: (940) 349 -7567 Email: Brian.Daskam @cityofdenton.com Timeline for the Proposed Facilities Following approval by the City Council of the proposed site, DME will undertake procurement of land for the proposed facilities. The time required for purchase of the land is unknown at this time. Design of the station will begin as soon as practical after it appears that land issues will be settled. DME would hope to have the new station in service before the summer of 2016. Procurement of Land and Easements Land and easement procurement processes are governed by state laws and local ordinances such as Senate Bill 18. Once the City Council has approved the substation site, the procurement process will follow these requirements. The City will pay fair market prices for land and land rights. Fair market value is determined by conducting market studies and appraisals. Attachment: Location Map Exhibit 3 System Map Brazos138kV Denton Nort..... h Substation �IIII North Lakes Kings Row1,,,i Substation ° Substation Oncor 138kV (to Krugerville) �IBonnie Brae Arco °i Substation Substation Jim Christal (Future) Substation Oncor 345kV ❑ Krum Tap Switch Hickory (to Jacksboro ) � Substation (Oncor) R. D. Wells Interchange Industrial Woodrow Substatio Locust a Substation= Substation ° Spencer Spencer Switch Interchange .........Denton "... West " ���������������������������������������������������������������������������� Pockrus Interchange Substation Fort Worth Substation Corinth Substation (Oncor) Teasley Substation Argyle Switch (Oncor) TMPA 345kV (to Roanoke) N wte s 1 mile Municipal Denton Municipal Electric ❑ Substation Interchange DME 69KV SUBSTATIONS & TRANSMISSION DME 138KV ONCOR 138KV January 201 1 ONCOR 345KV TMPA 138KV TMPA 345KV BRAZOS 138KV . . .. .. . . ..... .... W, . ... ... . ..... . .. Exhibit 4 I S Location Map YA "A q r; R, o I'D 0 I'D z Egan S t 411 2 I P "w'k w �Jy St Denton Dzik 51 Oak S t W H��,cljwiry W Mull-,mry St E Sy E F"rM Q F%"'," "u W H�gllfland S� Vl[zqw I zaa Q, fro 01, 0 L,Iimdsey St ,-WImood " "Pp V0,10(ovevvc,od St In m,,,at P 1 " P ua Legend Locust Substation Proposed Sites EDOption I EDOption 2 momuuuuuuuuuuuuuum Option 3 Option 4 Transmission Overhead Line 69kV Substation = Substation tn Pol Q I "s, 131: ua Ft L 'Nf,ellrry lr Ni Ilea C I ClIll, s P"'i r ""[ t -. M 1( fX Il �j 4lb V. 01 CC 6L Ilk M C. . ... A IIM 0, 'UL I R I NION Locust Substation M J N I � I R R [ E C T C S L"evict Locust Substation R9)0 rl, NeArkAbolm sovilmolwy .Skodbojiql Proroety Reconstruction ,MTON I m I w I c I P A L 'I, tmmm ELECTRIC DENTON ■2 y ♦■■+ ■0 's Cl) W v y o o 0 J 10 Exhibit 7 Open House Report Locust Substation Open House Report The Open House for the Locust substation siting was held on the evening of October 16, 2013 at the Civic Center at 321 E. McKinney St., Denton Texas 76201 from 6 p.m. to 8 p.m. This information for this Open House included the siting of the Locust substation. • 106 Open House notices mailed out • 16 people signed in at the meeting • 14 people filled out comment cards at the meeting • 7 people filled out comments with responses pertaining to the location of Locust substation. A summary of those comments is below. 0 3 comments in favor of option 3 0 3 comments in favor of option 4 0 1 comment in opposition to option 2 0 2 comments in opposition to option 3 e-1 N M d' Ln w I n 00 01 a�-I 1 Exhibit 9 Comment Sheets Locust Substation Expansion Proiect Questionnaire October 16, 2013 Thank you for attending this Public Open House Meeting. We do not have a presentation planned for this meeting, and you are invited to come and go at your convenience. We would like to hear your comments on the planned Locust Substation expansion. Please take a few minutes to answer the following questions and then return this form to us this evening. Your completed questionnaire will help DME understand public interests and concerns about the Locust Substation Expansion Project. 1. Are you a resident in the area of the planned project? Yes ❑ No 2. If not, please indicate your affiliation ❑ Agency ❑ Developer > Landowner ❑ Other 3. Do you understand why the substation expansion is needed? Yes ❑ No Do you have comments on the purpose and need of the project? 4. Were the exhibits and information presented helpful for your understanding of the project? IC Yes ❑ No How could we improve this effort? 5. Do you believe all relevant factors are being considered? t.1k 5 ag -<- 6. Do you have comments or special concerns that you would like the project team to know about or to take into consideration? Wa lv / A hive /'►1Y b�5.�ir�5 5 //v%GAuoevN 441— o c� 7. Please provide your name and mailing add r ss phonal : Name: �IGjRR.� Lt) 1P &( 5 L'�•e551< Address: tz/0 500,4 —6GUSw City, State: Do /✓70 /i 7 K Zip Code: -7b v20 1 ,MTON I c, I P A L Locust Substation Expansion Proiect Ul® ... R I C Questionnaire October 16, 2013 Thank you for attending this Public Open House Meeting. We do not have a presentation planned for this meeting, and you are invited to come and go at your convenience. We would like to hear your comments on the planned Locust Substation expansion. Please take a few minutes to answer the following questions and then return this form to us this evening. Your completed questionnaire will help DME understand public interests and concerns about the Locust Substation Expansion Project. 1. Are you a resident in the area of the planned project? Yes ❑ No 2. If not, please indicate your affiliation ❑ Agency ❑ Developer tz Landowner ❑ Other 3. Do you understand why the substation expansion is needed? Yes ❑ No w of the project? Y p � � � ose an nee Do you gave comments on the purpose _ / k 4. Were the exhibits and information presented helpful for your understanding of the project? Yes Li No How could we improve this effort? t- � r S, Do you ilieve all relevant factors are being nsirlelrl�' „ C, 6 4-c ��r to take into consideration? p ern that you the protect to know about or y at would like � tea 6. Do you have comments or special c (/ �' .., � � 7', Please pray de your r ame and marlin address (optional): r Nan'e: . Address: 2 6 Q U 6 1' ' . T City, State: 06rt,4 �,t60' d Zip Code: t TON Locust • • • . • Project ILECTRIC Questionnaire October 1 Thank you for attending this Public Open House Meeting. We do not have a presentation planned for this meeting, and you are invited to come and go at your convenience. We would like to hear your comments on the planned Locust Substation expansion. Please take a few minutes to answer the following questions and then return this form to us this evening. Your completed questionnaire will help DME understand public interests and concerns about the Locust Substation Expansion Project. 1. Are you a resident in the area of the planned project? A Yes ❑ No 2. If not, please indicate your affiliation ❑ Agency ❑ Developer ❑ Landowner ❑ Other 3, Do you understand why the substation expansion is needed? 1< Yes ❑ No Do you have comments on the purpose and need of the project? 4. Were the exhibits and information presented helpful for your understanding of the project? Yes ❑ No How could we improve this effort? 5. Do Y ou believe all relevant factors are being considered? 6. Do you have comments or special concerns that you would like the project team to know about or to take Into consideration? ... A a„ �TM 7, Please provide your name and mailing address (optional): i... ` Name: �jif� 7) Address: 100(e S . Lau -e5t` 5 City, State:Du- 6n , 7T6 7� �t Zip Code: rl& �10 A u I P AN Locust Substation Expansion Project Questionnaire October 16, 2013 Thank you for attending this Public Open House Meeting. We do not have a presentation planned for this meeting, and you are invited to come and go at your convenience. We would like to hear your comments on the planned Locust Substation expansion. Please take a few minutes to answer the following questions and then return this form to us this evening. Your completed questionnaire will help DME understand public interests and concerns about the Locust Substation Expansion Project. I. A you a resident in the area of the planned project? Yes ❑ No 2. If not, please indicate your affiliation ❑ Agency ❑ Developer ❑ Landowner ❑ Other 3. D you understand why the substation expansion is needed? Yes ❑ No Do you have comments on the purpose and need of the project? 4. W re the exhibits and information presented helpful for your understanding of the project? Yes ❑ No How could we improve this effort? 5. Do you believe all relevant factors are being considered? 6, Do you have comments or special concerns that you would like the project team to know about or to take into consideration? � �...... �.,.. 7. Please provide your name and mailing address (optional) Name: Address: City, State:. Zip Code: ,,,(. Locust Substation Expansion Project ocus b "'�� 11 k I� I"� i I L p t Questionnaire October 16, 2013 Thank you for attending this Public Open House Meeting. We do not have a presentation planned for this meeting, and you are invited to come and go at your convenience. We would like to hear your comments on the planned Locust Substation expansion. Please take a few minutes to answer the following questions and then return this form to us this evening. Your completed questionnaire will help DME understand public interests and concerns about the Locust Substation Expansion Project. 1. :Ar7fou a resident in the area of the planned project? Yes ❑ No 2. If not, please indicate your affiliation ❑ Agency ❑ Developer ❑ Landowner ❑ Other 3. Do ou understand why the substation expansion is needed? Yes ❑ No Do you have comments on the purpose and need of the project? 4. Wrthe exhibits and information presented helpful for your understanding of the project? Yes ❑ No How could we improve this effort? 5. Do you believe all relevant factors are being considered? -- TTL'449C--' c 16C4--) �- 6. Do you have comments or special concerns that you would like the project team to know about or to take into consideration? 3 QJ 0 LU 1) ":5 �Iu -1 X µ 7. Please provide your° name and marling address (optional): Name: GJ ' Address: t ( °a City, State: Ass ,/I j,," Zip Code:fr «jam . I l� gf �� 4 R"O 9 I � `IP' p d���p ,r 4,t lit"C. ". Locust Substation Expansion Project it I uC'� IV � II p � Questionnaire October 16, 2013 Thank you for attending this Public Open House Meeting. We do not have a presentation planned for this meeting, and you are invited to come and go at your convenience. We would like to hear your comments on the planned Locust Substation expansion. Please take a few minutes to answer the following questions and then return this form to us this evening. Your completed questionnaire will help DME understand public interests and concerns about the Locust Substation Expansion Project. 1. Are you a resident in the area of the planned project? ❑ Yes No 2. If not, please indicate your affiliation ❑ Agency ❑ Developer ° Landowner ❑ Other 3. Do you understand why the substation expansion is needed? Yes ❑ No Do you have comments on the purpose and need of the project? 4. Were the exhibits and information presented helpful for your understanding of the project? Yes ❑ No How could we improve this effort? 5. Do you believe all relevant factors are being considered? 6. Do you have comments or special concerns that you would like the project team to know about or to take into consideration? T. Please provide your name and mailing address (optional): Name J Address. 30"1 City, State: Zip Code: . 3V Date: October, 0 , : 1 a mmmm �. 1. I' f_ of f 1 1 i 9 However, I would be wng to sale the North side of my property which runs along the railroV A; ck and parallel to Locust Street and faces Collins Street. This is the only viable option at this time for your New Substation. I have a few question of my own for you at this time... 1. How much land do you feet this New Substation would require? 2. At what time frame are you working with? 3. How would we come up with a fair price? There is no other piece of property in downtown Denton area like this? Thank you, John R. Lott Pecan Grove Office Park, LLC. 0 o tz 0 I no t CD CD ON lol . .......... tl N'Al fa j Nutt P5 ilk x r #� ° r AA,1 M n CD! 00 Sa CA) Pi M. Sy"a VoLm9a �Wwftwlswd J-97"NALMHHMM ........ ...... . -AO7&r 1107 roAfv7d flip, �WtAmKpan q='lZWff--" '� I v ME AF0WaaVLL07 T POB S 88'20 39"E T E COLLINS STREET 8 ay a kn 17D S 88'25'21 "E 4497' 0) CURVE DATA: L= 821.11 R=15955.07' CH=N 23'29'26"E',' ""' 820.97: DELTA=02'56'55' N &60, cl Iwul 7. I00 ul a� Ganas S 88'56'36"E x w '.g. " 29.02' N- L Ji l=J to 000 tv JT lb w"'JIT", '2,!'24"W 4,"z' ryd ful; 6'5935"W 657.61P A LOAUGHEVY STREET AuphaH Surtact IN Locust Substation Expansion Project VII I MVI I� II i. p 1 ELECTRIC Questionnaire October 16, 2013 Thank you for attending this Public Open House Meeting. We do not have a presentation planned for this meeting, and you are invited to come and go at your convenience. We would like to hear your comments on the planned Locust Substation expansion. Please take a few minutes to answer the following questions and then return this form to us this evening. Your completed questionnaire will help DME understand public interests and concerns about the Locust Substation Expansion Project. 1. Are you a resident in the area of the planned project? ❑ Yes V No 2. If not, please indicate your affiliation ❑ Agency ❑ Developer 4/ Landowner 12Z V- i Zq Oya,jr ❑ Other 3. Do you understand why the substation expansion is needed? V Yes ❑ No Do you have comments on the purpose and need of the project? 4. Were the exhibits and information presented helpful for your understanding of the project? Y Yes ❑ No How could we improve this effort? 5. Do you believe all relevant factors are being considered? 6. Do you have comments or special concerns that you would like the project team to know about or to take into consideration? 1 F 574,- 3 Is unto 7 +h; (Av po la Ylea d 4o b IA Cs F Lo k- (-As ass -s&GO 61 ) ►�ee,.� , .'°I� xilla )- warrs� 7. Please provide your name and mailing address (optional): Name: T)A V%p µpQ-TV iC- Address: k1624 CkuyL4-%'i I I DA - City, State: Zip Code: t, "i I D� � 1. Locust Substation Expansion Proiect Questionnaire October 16, 2013 Thank you for attending this Public Open House Meeting. We do not have a presentation planned for this meeting, and you are invited to come and go at your convenience. We would like to hear your comments on the planned Locust Substation expansion. Please take a few minutes to answer the following questions and then return this form to us this evening. Your completed questionnaire will help DME understand public interests and concerns about the Locust Substation Expansion Project. 1. Are you a resident in the area of the planned project? Yes ❑ No 2. If not, please indicate your affiliation ❑ Agency ❑ Developer Landowner ❑ Other 3. Do OU understand why the substation expansion is needed? Yes ❑ No Do you have comments on the purpose and need of the project? 4. Were the exhibits and information presented helpful for your understanding of the project? Yes ❑ No How could we improve this effort? 5. Do you believe all relevant factors are being considered? 6. Do you have comments or special concerns that you would like the project team to know about or to take into consideration? I OL /A 7. Please provide your name and ( alling address (optional): Name: 1/"i" Address: City, State: " � wdt - 7")e' 1762-5-1 Zip Code: "PHTON 0 i I � Locust Substation Expansion Proiect Questionnaire October 16, 2013 Thank you for attending this Public Open House Meeting. We do not have a presentation planned for this meeting, and you are invited to come and go at your convenience. We would like to hear your comments on the planned Locust Substation expansion. Please take a few minutes to answer the following questions and then return this form to us this evening. Your completed questionnaire will help DME understand public interests and concerns about the Locust Substation Expansion Project. ., Are you a resident in the area of the planned project? Yes ❑ No 2. If not, please indicate your affiliation ❑ Agency ❑ Developer Landowner ❑ Other Do you understand why the substation expansion is needed? Yes ❑ No Do you have comments on the purpose and need of the project? Were the exhibits and information presented helpful for your understanding of the project? ° ",C) Yes ❑ No How could we improve this effort? 5. Do you believe all relevant factors are being considered ?mm.. 6. Do you have comments or special concerns that you would like the project team to know about or to take into consideration? 7. Please provide your name and mailing address (optional): Name: ( . j "L' (wt . � l N e, ( Address: � , e. ... .. -I �-- City, State: '". r'\' Zip Coder r ;; "OkNTON I i L Locust Substation Expansion Proiect Questionnaire October 16, 2013 Thank you for attending this Public Open House Meeting. We do not have a presentation planned for this meeting, and a are invited to come and go at your convenience. We would like to hear your comments on the planned I_oc st Substation expansion. Please take a few minutes to answer the following questions and then return this 'orm to us this evening. Your completed questionnaire will help DME understand public interests and concern about the Locust Substation Expansion Project. 1. Ar you a resident in the area of the planned project? Yes ❑ No 2.. If not, plea , fnr icate your affiliation ❑ ,fig 'y ❑ eveloper Landowner ❑ Other 3. Do understand why the substation expansion is needed? Yes ❑ No Do you have comments on the purpose and need of the project? 4. We " exhibits and information presented helpful for your understanding of the project? Yes ❑ No How could we improve this effort? 5. Do you believe all relevant factors are being considered? W, " Do y i have comments or special concerns that you would like the project team to know about or to take into cons ide r�aro�ww J)pr 7. Please provi e your name and mailing address (optional): Name Address k,� tv, . City; State:; r Zip Code: � � U'ITO mJ u I IP A N Locust Substation Expansion Project L I C T R I C Questionnaire October 16, 2013 Thank you for attending this Public Open House Meeting. We do not have a presentation planned for this meeting, and you are invited to come and go at your convenience. We would like to hear your comments on the planned Locust Substation expansion. Please take a few minutes to answer the following questions and then return this form to us this evening. Your completed questionnaire will help DME understand public interests and concerns about the Locust Substation Expansion Project. 1. Are you a resident in the area of the planned project? Yes ❑ No 2. If not, please indicate your affiliation ❑ Agency ❑ Developer ❑ Landowner ❑ Other 3. Do you understand why the substation expansion is needed? X Yes ❑ No Do you have comments on the purpose and need of the project? 4. Were the exhibits and information presented helpful for your understanding of the project? KYes ❑ No How could we improve this effort? 5. Do you believe all relevant factors are being considered? FFr Yc- q 6. Do you have comments or special concerns that you would like the project team to know about or to take into consideration? t1v 7. Please provide your name and mailing address (optional): Name:Af f �� Address: 1 n City, State: I� 60 r► t %�'� I` L/ d - Zip Code: y ,R 'TO u I I P A q Locust Substation Expansion Project Questionnaire October 16, 2013 Thank you for attending this Public Open House Meeting. We do not have a presentation planned for this meeting, and you are invited to come and go at your convenience. We would like to hear your comments on the planned Locust Substation expansion. Please take a few minutes to answer the following questions and then return this form to us this evening. Your completed questionnaire will help DME understand public interests and concerns about the Locust Substation Expansion Project. 1. Are you a resident in the area of the planned project? id Yes ❑ No 2. If not, please indicate your affiliation ❑ Agency ❑ Developer ❑ Landowner ❑ Other 3. Do you understand why the substation expansion is needed? M Yes ❑ No Do you have comments on the purpose and need of the project? 4. Were the exhibits and information presented helpful for your understanding of the project? qu Yes ❑ No How could we improve this effort? 5. Do you believe all relevant factors are being considered? 1 v e`e-4 m 0 rc ► -� }rv► • 6a i x e, 1`j-2 i S S l� `� ✓ 6. Do you have comments or special concerns that you would like the project team to know about or to take into consideration? P1C4<-e V4 ��y Me- L) k A,11 -C-uL 1 - re VY\Cc -i Ny S. 7. Please provide your name and mailing address (optional):. Name: 0 o A(` Address: l -3 � Le /Lk\4 r +) e 5 f- City, State: (?JM-eri Zip Code: t-, ZD 1 J� m A TON Locust Substation Expansion Proiect Questionnaire October 16, 2013 Thank you for attending this Public Open House Meeting. We do not have a presentation planned for this meeting, and you are invited to come and go at your convenience. We would like to hear your comments on the planned Locust Substation expansion. Please take a few minutes to answer the following questions and then return this form to us this evening. Your completed questionnaire will help DME understand public interests and concerns about the Locust Substation Expansion Project. 1. Are you a resident in the area of the planned project? U Yes ❑ No 2. If not, please indicate your affiliation • Agency • Developer • Landowner ❑ Other 3. Do you understand why the substation expansion is needed? im Yes ❑ No Do you have comments on the purpose and need of the project? 4. Were the exhibits and information presented helpful for your understanding of the project? m Yes ❑ No How could we improve this effort? 5. Do you believe all relevant fa Mors are being considered b 6. Do You have comments or special concerns that you would like the project tearn to know about or to take v')e into consideration? U ryry�(� 1 6�, a '� �'k 7. Please provide your na me and maAng address �(optional)� Name: 4 N Address, 2, City, State; Zip Code: G' ,Uo;N'TO N I i O � �l Locust Substation Expansion Project Questionnaire October 16, 2013 Thank you for attending this Public Open House Meeting. We do not have a presentation planned for this meeting, and you are invited to come and go at your convenience. We would like to hear your comments on the planned Locust Substation expansion. Please take a few minutes to answer the following questions and then return this form to us this evening. Your completed questionnaire will help DME understand public interests and concerns about the Locust Substation Expansion Project. 1. Are you a resident in the area of the planned project? ❑ Yes No 2. If not, please indicate your affiliation ❑ Agency • Developer • Landowner Other 3. Do you understand why the substation expansion is needed? Yes ❑ No Do you have comments on the purpose and need of the project? 4. Were the exhibits and information presented helpful for your understanding of the project? 0,,,„ Yes ❑ No How could we improve this effort? 5. Do you believe all relevant factors are being considered? 6. Do you have comments or special concerns that you would like the project team to know about or to take into consideration? 7. Please provide your name and mailing address (optional): Name: Address: City, State;, Zip Code: EXHIBIT 10 DRAFT MINUTES PUBLIC UTILITIES BOARD July 28, 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, July 28, 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 Lilia Bynum Ex Officio Members: George Campbell City Manager and Howard Martin, ACM Utilities PUBLIC MEETING: Hold a public hearing and consider making a recommendation of approval to the City Council regarding the proposed site for reconstruction of the existing Locust Substation in the general area between the intersection of Locust and E. Daugherty and the intersection of Locust and W. Collins St., in the City of Denton, Denton County, Texas, as part of Denton Municipal Electric's service territory; discuss, deliberate, provide staff with direction, and make a recommendation. Brent Heath, Exec Mgr of Energy Delivery, gave a brief presentation on the item. Stated this item is the Locust Street Substation reconstruction from 69kW to 138kW. There was an open house public meeting in October 2013. There were 100 notices mailed out to individuals that have electric meters, or own property within 500 feet of any of the four possible sites. There were 16 people that signed in at the meeting. Most of the feedback that was voiced was in favor of sites three and four. There were some comments that opposed sites two and three. At the meeting DME realized there were some preliminary developments that have already been started on site three. Staff also learned on site four there was a property owner that appeared to want to sell his property. Considering the information received at the October 16, 2013 meeting, DME staff recommends using option 4 (site 4). Chair Smith asked the total site acreages for option 4. Chuck Sears answered it is close to five acres. Board Member Robinson asked what will happen to the existing substation site. Heath answered it currently serves about 7,700 from the center of Denton. It will have to remain intact until the new substation is built and on line. Once that happens it is yet to be determined what will be done with the property, it could be available. Gallivan asked if the building that is on the current site will be demolished. Heath answered it is currently the control house that the electrical circuits are in and would not be needed in the future. Sears added that currently there is communication infrastructure in that building as well. At this point it will need to remain. Heath stated that building is where UNT's internet comes in to serve the city. It will have to remain until it is relocated. Draft Minutes of the Public Utilities Board Meeting July 28, 2014 Page 2 of 2 Smith asked if there is cooperation from the owners for site four. Nikki Costanza, The Norfleet Group, stated it is her understanding that the northern portion had been in proceedings and gone into bankruptcy but now that has been settled. The land owner has entered into an agreement with both the bank and the contractor. The property has been removed from the bankruptcy proceedings. She is unsure what the position is of the land owner. Smith asked if a deal cannot be had for option 4 what is the next best option. Heath stated that site 4 is the best from all the studies and the pre - application that has been done with the city planning department and drainage studies. Site 4 is the best option of the rest of the options. Russell asked if it is vacant. Williams answered there is one residence in the very north west corner. Gallivan stated at the October meeting there was no objections to option 4, are there objections now. Heath answered not that he is aware of Bynum asked about the residential areas on site 4. Sears answered there is a garage and doesn't look like anything except storage. Chair Smith opened the public meeting for citizens to speak. 1. Tim Beaty — Lien holder of a portion of site 4 facing Collins Street. Spoke in support of option 4 2. Richard Woods — Owns property on site 4. Spoke in support of option 4 3. Kent Key — Owns property on Murtle Street that backs up to site 4. Spoke in support of option 4 but would like to know when the existing site 1 would be available for him to expand. Heath answered it could be a possibility for Mr. Key to expand southward. Timeline looks like about three years. 4. Alejandro Garcia— Owner of site 4 - Spoke in opposition of option 4. 5. Tomosa Garcia — Spoke in opposition of option 4. Would like safety information long term and short term issues. There were no other speakers. Cheek asked if the Garcia's were notified of the October Meeting, they stated they were not. Brian Daskam told about the process of notification. Chair Smith stated that this item will go on the City Council for final approval. Board Member Gallivan motioned to recommend approval on option 4; the second was from Board Member Russell. Vote 6 -0 approved. Adjournment — 10:40am