Loading...
HomeMy WebLinkAbout2021-05-25 Agenda and BackupCity Council City of Denton Meeting Agenda City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com Council Work Session Room2:00 PMTuesday, May 25, 2021 WORK SESSION BEGINS AT 2:00 P.M. IN THE COUNCIL WORK SESSION ROOM CITY COUNCIL CONSIDERATION OF THE CONSENT AGENDA AND ITEMS FOR INDIVIDUAL CONSIDERATION WILL BEGIN IMMEDIATELY FOLLOWING THE CLOSED MEETING IN THE COUNCIL WORK SESSION ROOM Note: Mayor Gerard Hudspeth, Mayor Pro Tem Paul Meltzer, and Council Members Vicki Byrd, Brian Beck, Jesse Davis, Alison Maguire, and Deb Armintor will be participating in the work session, closed meeting and meeting via video/teleconference. REGISTRATION GUIDELINES FOR ADDRESSING THE CITY COUNCIL Due to COVID-19 precautions, members of the public will not be able to attend the May 25, 2021 City Council meeting in-person. To accommodate and receive input on agenda items, citizens will be able to participate in one of the following ways (NOTE: Other than public hearings, citizens are only able to comment one time per agenda item; citizens cannot use both methods to comment on a single agenda item. Public comments are not held for work session reports.): • Virtual White Card – On May 21, the agenda was posted online at www.cityofdenton.com/publicmeetings. Once the agenda is posted, a link to the Virtual White Card, an online form, will be made available under the main heading on the webpage. Within this form, citizens may indicate support or opposition and submit a brief comment about a specific agenda item. Comments may be submitted up until the start of the meeting, at which time, the Virtual White Card form will be closed. Similar to when a citizen submits a white card to indicate their position on the item, these comment forms will be sent directly to City Council members and recorded by the City Secretary. City Council Members review comments received in advance of the meeting and take that public input into consideration prior to voting on an agenda item. The Mayor will announce the number of Comment Cards submitted in support or opposition to an item during the public comment period. Comments will not be read during the meeting. The City Secretary will reflect the number of comments submitted in favor/opposition to an item, the registrant’s name, address, and (summary of) comments within the Minutes of the Meeting, as applicable. OR • By phone – Citizens wishing to speak over the phone during this Council meeting, may call (940) 349-7800 beginning 30 minutes prior to the meeting start time. Comments by phone will be accepted until the item is opened for discussion by the Council. When the call is initially received, a staff member will receive the caller’s information and either: 1) offer to call the citizen back when it is time for them to speak, or 2) record the caller’s information, support or opposition, and comment. If the caller chooses to record their support or opposition, rather than speaking during the meeting, the Mayor will announce the number of comments submitted in support or opposition to the item. If the caller wishes to receive a call back, the voice of each caller will be broadcast into the meeting during the public commenting time of their desired agenda item. Individuals will be able to comment once per agenda item, no matter the method. Page 1 Printed on 5/27/2021 1 May 25, 2021City Council Meeting Agenda • At regular meetings only, citizens can speak on any topic that is not on the agenda (Open Microphone). Alert the call taker if you wish to speak under the Open Microphone category. If you would like to give a public report, see the information below. After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, May 25, 2021, at 2:00 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: WORK SESSION 1. Citizen Comments on Consent Agenda Items This section of the agenda allows citizens to speak on any item listed on the Consent Agenda prior to its consideration. Each speaker will be given a total of three (3) minutes to address any item(s). Any person who wishes to address the City Council regarding these items may do so by utilizing the "By Phone" registration process as referenced under the REGISTRATION GUIDELINES FOR ADDRESSING THE CITY COUNCIL detailed at the beginning of this agenda. Registration is required prior to the time the City Council considers this item. Registrants may call in and remain on hold or receive a call back at the time the Work Session is called to Order and are encouraged to ensure they remain accessible to accept the call. 2. Requests for clarification of agenda items listed on this agenda. 3. Work Session Reports Receive a report, hold a discussion, and give staff direction regarding a summary of prior and current federal funding related to COVID-19, an overview of the federal American Rescue Plan (ARP) Act of 2021, and a discussion for recommended goals and proposed uses for ARP funds received by the City of Denton. ID 21-926A. Receive a report, hold a discussion, and give staff direction regarding the role of City Council Committees, membership to subcommittees and other internal/external groups, and their associated nomination/appointment processes. ID 21-866B. Receive a report, hold a discussion, and give staff direction on a policy regarding qualifying expenses for tax exemption of historic sites. ID 21-442C. Receive a report, hold a discussion, and give staff direction on pending City Council requests for: (1)Work session regarding the one-minute pitch process. (2) Work session to discuss using ranked-choice voting for officers of Council, Committee, Commissions, and Boards. (3) A work session on a City initiative to increase COVID vaccine access. ID 21-437D. Following the completion of the Work Session, the City Council will convene in a Closed Meeting to consider specific item(s) 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: Deliberations Regarding Certain Public Power Utilities: Competitive Matters - Under ID 21-1046A. Page 2 Printed on 5/27/2021 2 May 25, 2021City Council Meeting Agenda Texas Government Code Section 551.086; Consultation with Attorneys - Under Texas Government Code, Section 551.071. Receive a presentation from staff regarding public power competitive and financial matters about the risks of wholesale energy supply and risk management plans, hedge plans, and strategies as each relates to the DME electric power and gas portfolio; discuss, deliberate, and provide direction to staff regarding the same. Consultation with the City’s attorneys regarding legal issues associated with the above matters 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. Deliberations Regarding Certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086; Consultation with Attorneys - Under Texas Government Code, Section 551.071. Receive a presentation from staff regarding public power competitive and financial matters about the delivery of power, wholesale energy supply and risk management plans, hedge plans, and strategies as each relates to the DME electric power and gas portfolio and to the February winter storm; discuss, deliberate, and provide direction to staff regarding the same. Consultation with the City’s attorneys regarding legal issues, legal status, legal analysis, and legal strategy associated with the above matters and pending and potential litigation, including release of related confidential information, 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. ID 21-1047B. 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 decision, or vote is taken in the Closed Meeting in accordance with the provisions of Section 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 Texas Government Code, Section 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 Sections 551.071-551.086 of the Texas Open Meetings Act. NOTE: Any item for which a formal action at the Special Called Meeting has been taken by Council may be subject to a request for a motion for reconsideration at any time during the meeting, at the Concluding Items Section, or after the meeting. In order to comply with the Texas Open Meetings Act, a request for a motion for reconsideration made during, at the end of, or after a Council meeting will be placed on the agenda and considered at the next official meeting of the City Council. Following the completion of the Closed Meeting, the City Council will convene in a Special Called Meeting to consider the following items: 1. CONSENT AGENDA Page 3 Printed on 5/27/2021 3 May 25, 2021City Council Meeting Agenda Each of these items is recommended by 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 – F). 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, the Consent Agenda Items 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. Consider approval of the minutes of May 11, 2021.ID 21-974A. Consider adoption of an ordinance of the City of Denton granting the Denton Juneteenth Celebration Committee a noise exception pursuant to Section 17-20 of the City of Denton Code of Ordinances for the Denton Juneteenth Celebration, which will be held on Friday, June 18 through Saturday, June 19, 2021, at Fred Moore Park; granting an increase in sound levels from 70 to 75 dba and a variance in hours of operation for amplified sound levels for an outdoor event; and providing an effective date. ID 21-792B. Consider adoption of an ordinance of the City of Denton approving a City co-sponsorship to the Denton Juneteenth Celebration Committee in an amount not to exceed $26,525.00 of in-kind services and resources for the Denton Juneteenth Celebration, which will be held on Friday, June 18 through Saturday, June 19, 2021, at the Fred Moore Park; and providing an effective date. ID 21-812C. Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or their designee, to execute a contract with Change Healthcare Technology Enabled Services, LLC, for the preparation and submittal of the Texas Ambulance Supplemental Payment Program reimbursement for the Fire Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 7521 - awarded to Change Healthcare Technology Enabled Services, LLC, for a three (3) year, with the option for two (2) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $180,000.00). ID 21-956D. Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or their designee, to execute a contract with Hart Halsey, LLC dba Extra Duty Solutions, for Public Safety Off-Duty Management Software for the Police Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 7597 - awarded to Hart Halsey, LLC dba Extra Duty Solutions, for one (1) year, with the option for four (4) additional one (1) year extensions, in the total five (5) year term). ID 21-957E. Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or their designee, to execute a contract with Russ Bassett Corporation, through the Houston-Galveston Area Council of Governments (H-GAC) Cooperative Purchasing Program Contract Number EC07-20 - 9-1-1 ID 21-968F. Page 4 Printed on 5/27/2021 4 May 25, 2021City Council Meeting Agenda Equipment & Services, for the purchase and installation of eighteen (18) 9-1-1 Public Safety Answering Point (PSAP) Consoles for Public Safety Communications/Technology Services Department; providing for the expenditure of funds therefor; and providing an effective date (File 7685 - awarded to Russ Basset Corporation, in the not-to-exceed amount of $403,022.55). 2. ITEMS FOR INDIVIDUAL CONSIDERATION Consider adoption of an ordinance of the City Council of the City of Denton repealing Ordinance No. 20-420; approving the 2021 Denton Municipal Electric - Energy Risk Management Policy; delegating authority as provided in the 2021 ERMP; authorizing and approving the subsequent execution of such other ancillary and related documents, including, without limitation, contracts, nominations, certificates, assignments, licenses, directions, instruments, confirmations, orders, and statements as are authorized by the 2021 ERMP, which are incident to or related thereto; confirming that the City of Denton, its Mayor, its City Council members, its City Manager, or designees, its City Attorney, or designees, and its City Secretary, or designees, are authorized to perform such acts and obligations as are reasonably required to consummate those future transactions which are provided for and authorized by the 2021 ERMP; finding that the purchase of electricity, natural gas, and related commodities and instruments are exempt from the requirements of competitive bidding; finding that the purchase of electric energy, natural gas and related commodities and instruments made by the city under the terms of the 2021 ERMP are in the public welfare of the citizens and electric ratepayers of the city; authorizing the expenditure of funds therefor; and, providing an effective date. ID 21-765A. Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or their designee, to execute a public works contract with Mountain Cascade of Texas, LLC, for the construction of the Hickory Creek Interceptor, Phase I and II Project; providing for the expenditure of funds therefor; and providing an effective date (IFB 7252 - awarded to Mountain Cascade of Texas, LLC, in the not-to-exceed amount of $7,534,784.25). ID 21-953B. Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or their designee, to execute a contract with Viking Construction, Inc., for Micro Surfacing Services for the Streets Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 7619 - awarded to Viking Construction, Inc., for one (1) year, with the option for three (3) additional one (1) year extensions, in the total four (4) year not-to-exceed amount of $4,400,000.00). ID 21-955C. Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or their designee, to authorize the spend for an insurance binder to Archer Contingent Energy Risk, LLC, for forced outage insurance of the Denton Energy Center for the Summer of 2021; providing for the expenditure of funds therefor; and providing an effective date (RFP 7686 - authorizing the spend for Power Plant Forced Outage Insurance Coverage or Products and awarding such insurance binder to Archer Contingent Energy Risk, LLC, in the Summer 2021 not-to-exceed ID 21-970D. Page 5 Printed on 5/27/2021 5 May 25, 2021City Council Meeting Agenda amount of $975,000.00). Consider approval of a resolution of the City of Denton, Texas approving an application for a partial tax exemption of designated historic sites, in accordance with Chapter 10, Article VI, Sections 10-126 through 10-129 of the Denton Municipal Code of Ordinances, for a Local Historic Landmark, located at 1003 West Oak Street in the Oak-Hickory Historic District (OHH), generally located on the south side of West Oak Street, between Denton Street and Welch Street; providing for severability; and providing an effective date. (HL21-0001a, 1003 W Oak Street - Tax Exemption, Cameron Robertson) HL21-0001aE. Consider approval of a resolution confirming City Council’s prior policy direction on public meetings strategy and transition back to in-person meetings. ID 21-1055F. Consider adoption of an ordinance of the City of Denton repealing and replacing City of Denton Code of Ordinances Section 2-29 (City Council Rules of Procedure); providing for a severability clause; providing for codification; and providing for an effective date. ID 21-1022G. Consider nominations/appointments to the City’s Boards, Commissions, and Committees: Planning & Zoning Commission. ID 21-975H. Consider appointments to City Council Committees, Development Code Review Committee, Dallas Regional Mobility Coalition, Discover Denton Advisory Board, Lake Ray Roberts P&Z Commission, and Denton County Leadership Teams (Behavioral Health, Homelessness, and Workforce Success). ID 21-1009I. 3. 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 topics, above posted. C E R T I F I C A T E I certify that the above notice of meeting was posted on the official website (https://www.cityofdenton.com/en-us/government/open/agendas-minutes) and bulletin board at City Hall, 215 E. McKinney Street, Denton, Texas, on May 21, 2021, in advance of the 72-hour posting deadline, as applicable, and in accordance with Chapter 551 of the Texas Government Code. __________________________________________ CITY SECRETARY Page 6 Printed on 5/27/2021 6 May 25, 2021City Council Meeting Agenda NOTE: THE CITY OF DENTON'S DESIGNATED PUBLIC MEETING FACILITIES ARE ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE ACCOMMODATION, SUCH AS 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 940-349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY-TX SO THAT REASONABLE ACCOMMODATION CAN BE ARRANGED. Page 7 Printed on 5/27/2021 7 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 21-926,Version:1 AGENDA CAPTION Receive a report, hold a discussion, and give staff direction regarding a summary of prior and current federal funding related to COVID-19, an overview of the federal American Rescue Plan (ARP) Act of 2021, and a discussion for recommended goals and proposed uses for ARP funds received by the City of Denton. City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™8 City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Finance ACM/CFO: David Gaines DATE: May 25, 2021 SUBJECT Receive a report, hold a discussion, and give staff direction regarding a summary of prior and current federal funding related to COVID-19, an overview of the federal American Rescue Plan (ARP) Act of 2021, and a discussion for recommended goals and proposed uses for ARP funds received by the City of Denton. BACKGROUND Beginning in December 2019, a novel coronavirus (COVID-19) spread throughout the world and was declared a global pandemic by the World Health Organization. Over the last year, the federal government has approved relief programs aimed at supporting efforts in response to COVID-19. Through the Coronavirus Aid, Relief, and. Economic Security Act (CARES), the City received $7.4 million in funding to address housing support, public safety expenses, and capital needs. An additional $412,869 in relief funding has been received by the Fire, Police, Library, and Airport Departments specific to their operations. On March 11, 2021, the ARP was signed into law providing $1.9 trillion in funding for relief from the COVID-19 public health emergency and its economic impacts. Included is funding for small business and aid to households that will be administered by federal agencies as well as $350 billion for State, local, and Tribal governments. The City of Denton’s allocation under the Act is $26.22 million and Denton County will receive $170.07 million. Eligible uses of funding are outlined in four categories: 1. To respond to the public health emergency or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality; 2. To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers; 3. For the provision of government services to the extent of the reduction in revenue due to the COVID–19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency; and 4. To make necessary investments in water, sewer, or broadband infrastructure. Funds will be distributed by the U.S. Treasury Department in two “tranches”. In the first tranche, 50% of funds will be delivered with the remaining 50% delivered in the second tranche no later than 12 months from the first payment. Funds can be used to cover costs incurred beginning March 3, 2021. All cost must City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 9 be incurred or obligated by December 31, 2024. The period of performance will run until December 31, 2026, at which time all projects must be completed. The required request and documentation for funding was submitted on May 18, 2021. The Treasury Department has 60 days to review and deliver funding. RECOMMENDATION Staff has identified projects eligible under the categories outlined by the Treasury Department. City Council feedback is sought on further prioritization and recommendation of projects allowed under the ARP guidelines. EXHIBITS Exhibit 1 – Agenda Information Sheet Exhibit 2 – Presentation Exhibit 3 – ARP State and Local Fiscal Recovery Funds Information Sheet Exhibit 4 – Coronavirus State and Local Fiscal Relief Fund Interim Final Guidance Respectfully submitted: Cassey Ogden Director of Finance Prepared by: Laura Behrens Grant Administrator 10 Work Session American Rescue Plan (ARP) Act May 25, 2021 1ID#21-926, May 25, 2021 11 Today’s Discussion •Overview of American Rescue Plan (ARP) Act of 2021 •Funding Available to City of Denton •Funding Guidelines and Parameters •Goals for Use of ARP Funds •Proposed Use of ARP Funds •Next Steps 2ID#21-926, May 25, 2021 12 Background –Federal Response •Coronavirus Aid, Relief, and Economic Security (CARES Act) -enacted March 27, 2020 •$2 trillion rescue package •Established Coronavirus Relief Fund for states and local governments; provided direct funding to local governments with populations over 500,000 •Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA) –enacted Dec. 27, 2020 •$907 billion pandemic relief bill •No direct local government assistance •American Rescue Plan Act of 2021 (ARP) –enacted March 11, 2021 •$1.9 trillion pandemic relief bill •Authorized $350 Billion in state and local government fiscal assistance; by direct formula allocation to state, CDBG entitlement cities, and counties 3ID#21-926, May 25, 2021 13 Estimated Direct Aid to Denton & Denton County •City of Denton •Local Fiscal Assistance: $23.29 million in two “tranches” •50% delivered within 60 days of May 18 •50% delivered no later than 1 year after May 18 •HOME Funding: $1,763,622 •Tenant-based rental assistance, housing support, certain shelter activities •Denton County •Local Fiscal Assistance: $172.07 million •Emergency Rental Assistance: $18.25 million 4ID#21-926, May 25, 2021 14 Other Assistance Administered by Federal Agencies 5ID#21-926, May 25, 2021 Small Business Assistance •Restaurant Revitalization Fund Grants $25B •Shuttered Venue Grants $16.125B •Paycheck Protection Program $7.25B •Economic Injury Disaster Loan $15B •Airport Concessions $800M Aid to Households •Child Tax Credit Expansion •Earned Income Tax Credit (EITC) Expansion •Child Care & Dependent Tax Credit Expansion •Increased Affordable Care Act (ACA) Subsidies •Nutrition Assistance •Emergency Broadband Benefit Program •FEMA Funeral Assistance 15 ARP vs. CARES Act CARES -CRF 9 months to spend Funds released at once Revenue replacement not allowed ARP 3+ years to spend Funds released in two tranches Revenue replacement allowed 6ID#21-926, May 25, 2021 16 CARES Act Funding Summary 7 Category Amount Housing Support $803,358 COVID-19 Mitigation (Public Safety)$5,730,667 Capital Expenses $1,085,730 Total $7,619,755 •The City received $7.6 million in CARES Act funding in response to the COVID-19 pandemic through Denton County. •As of December 31, 2020, the City has expensed 100% of the CARES Act Funds and filed the required reports with Denton County. ID#21-926, May 25, 2021 •The City has received an additional $412,869 in funding related to the COVID-19 pandemic from State agencies. Administration of these funds is on-going. 17 Program Agencies Status Amount Eviction Prevention Administered through Denton County to UWDC/Nonprofits Closed $4,400,000 Texas Emergency Rental Assistance Administered through City to UWDC Closed $187,000 Emergency Solution Grant Round 1 Administered through City to Nonprofits Open $1,425,000 Emergency Solution Grant Round 2 Administered through UWDC to Nonprofits Open $2,560,000 Emergency Rental Assistance Administered through Denton County to UWDC/Nonprofits Open $23,000,000 Total $31,572,000 8 Additional Aid to Households Program Agencies Amount Emergency Rental Assistance Round 2 Administered through Denton County to UWDC/Nonprofits $18,250,000 Emergency Housing Vouchers (40)Denton County Housing Authority - Total $18,250,000+ Rent and Utility Assistance –ARP, 2021 Rent and Utility Assistance –CARES Act, 2020 & CAA, 2021 ID#21-926, May 25, 2021 The State of Texas, through Texas Department of Housing & Community Affairs (TDHCA), will have a Homeowners Assistance Program in the amount of $842,214,006. 18 9ID#21-926, May 25, 2021 19 ARP Funding Parameters 10ID#21-926, May 25, 2021 •Respond to COVID-19 or its Economic Impacts •Programs and projects must respond to negative impacts of COVID-19 pandemic, per Treasury guidance. •Replace Revenue lost due to COVID-19 •Revenue shortfalls across general revenue streams, not one particular activity (excludes utility revenue) •Replace lost HOT Funding revenue may be eligible •Provide Premium Pay to Eligible Essential Workers •Invest in Water, Sewer, Storm water and Broadband Infrastructure •Treasury to issue additional guidance 20 Goals for Use of ARP Funding •Prioritize funding for existing programs •Avoid an ongoing financial commitment beyond available funding Create Sustainable Solutions •Focus on solutions that have immediate impact •Target individuals and/or specific economic sectors Address Immediate Needs •Partner with organizations to leverage funding and expertise •Consider one-time projects with high or ongoing positive impacts Achieve Long-Term Benefits 11ID#21-926, May 25, 2021 21 Potential Use of ARP Funding Potential Projects*ARP Category Fiscal Year One-time or Reoccurring Costs Estimated Funding Day Center & Overnight Shelter (Loop 288 Building)Support Public Health Resources FY 2022 One-time $5,000,000 Vaccine Clinic Support Support Public Health Resources FY 2022 One-time $500,000 Temporary Alternative Shelter Support Public Health Resources FY 2022 One-time $500,000 Behavioral Healthcare Services (grant program)Support Public Health Resources FY 2022 One-time $500,000 Emergency Management Program Manager Support Public Health Resources FY 2022 Reoccurring $120,000 Public Communication Software (Code Red replacement)Support Public Health Resources FY 2022 Reoccurring $70,000 Non-Profit Capacity Support (grant program)Address Negative Economic Impacts FY 2022 One-time $500,000 Lease & Rent Relief for Small Businesses (grant program)Address Negative Economic Impacts FY 2022 One-time $2,000,000 Business building health improvements (grant program)Address Negative Economic Impacts FY 2022 One-time $500,000 Arts/Music/Cultural Business Grant Program Address Negative Economic Impacts FY 2022 One-time $500,000 HOT Fund Revenue Replacement Address Negative Economic Impacts FY 2022 One-time $1,000,000 Pecan Creek Phase 3 & 4 Water & Sewer Infrastructure FY 2022 & 2023 One-time $20,300,000 Elm & Locust Street (Water/WW/Drainage)Water, Sewer & Storm Water Infrastructure FY 2022 & 2023 One-time $20,200,000 Storm water Master Plan Storm Water Infrastructure FY 2022 One-time $500,000 Sedimentation Basin Improvement (LLWTP)Water & Sewer Infrastructure FY 2022 One-time $2,700,000 Disinfection System Modifications (LRRWTP)Water & Sewer Infrastructure FY 2022 One-time $5,000,000 12 *Subject to project eligibility ID#21-926, May 25, 2021 22 Considerations •Coordinate with Denton County to avoid duplicating programs •Waiting on County’s program plan •Budget amendment required for appropriation authority •Program administration expenses associated with administering grant programs •Gather public input on community priorities and needs. •Staff plans to bring final recommendations to Council in June. 13ID#21-926, May 25, 2021 23 Questions? 14ID#21-926, May 25, 2021 24 American Rescue Plan Act of 2021 Coronavirus State and Local Fiscal Recovery Funds Fact Sheet Summary The American Rescue Plan Act of 2021 creates new Coronavirus State and Local Fiscal Recovery Funds to keep first responders, frontline health workers, teachers, and other providers of vital services safely on the job as states, local governments, Tribes, and territories roll out vaccines and fight to rebuild Main Street economies. Funds are available until December 31, 2024. Now that the legislation has been cleared by Congress, all matters of execution—including allocations of funding, regulations prescribing eligible uses of payments, and resolving matters of statutory ambiguity—will be determined by the guidance and regulations promulgated by the Secretary of the Treasury, which will be determinative. What follows is a summary of the key aspects of the recovery funds, and describes the intent of the legislation, along with a preliminary understanding of how the Treasury will execute the proposals. • States and the District of Columbia: $195.3 billion o $25.5 billion will be equally divided. o $755 million will be allocated to make the District of Columbia whole after it did not receive a fair allocation under the CARES Act. o The remaining funds will be distributed based on the share of total unemployed workers. o If a state’s combined state and local funding total is less than what they received under the CARES Act, the difference will be allocated to the state (this guarantees a minimum of $1.25 billion for each state). o To the extent practicable, states and the District of Columbia will receive allocations from the Department of Treasury (Treasury) within 60 days of submitting a Certification of Need. o If Treasury decides that a payment to a State requires additional justification, the Secretary could choose to withhold up to 50% of the allocation to each state for up to 12 months from the date the certification of need is received. Such a withholding would not be required, and if the State submits a second certification of need, the Secretary would be required to release the withheld amount by the 12-month deadline. • Local governments: $130.2 billion divided evenly between cities and counties o $65.1 billion will be allocated to metropolitan cities. o $45.57 billion will be allocated to municipalities with populations of generally at least 50,000 using a modified Community Development Block Grant formula and sent directly from Treasury to the city. 25 o $19.53 billion will be allocated to municipalities with populations of generally fewer than 50,000 in states and territories, with allocations capped at 75% of the locality’s most recent budget as of January 27, 2020. Funds will be sent to the state to distribute to the local community based on population within 30 days of receipt unless an extension is granted. Even if granted an extension, States must distribute the funds to the local community not later than 120 days after they receive this funding for distribution or face monetary penalty, and cannot change the allocations or impose additional requirements. o $65.1 billion will be allocated to counties based on population and sent directly from the Department of Treasury to the counties. o Funding will be distributed by Treasury in two tranches—one within 60 days of enactment to the extent practicable, and the second one year after the disbursement of the first tranche. • Territories: $4.5 billion o $2.25 billion will be divided equally. o $2.25 billion will be allocated based on population. o To the extent practicable, territories will receive allocations from Treasury within 60 days of submitting a Certification of Need. o If Treasury decides that a payment to a territory requires additional justification, the Secretary could choose to withhold up to 50% of the allocation to the territory for up to 12 months from the date the certification of need is received. Such a withholding would not be required, and if the Territory submits a second certification of need, the Secretary would be required to release the withheld amount. • Tribes: $20 billion to federally recognized Tribal governments. o $1 billion will be divided equally. o $19 billion will be divided as determined by Treasury, which is expected to engage in Tribal consultation and to make use of data previously collected from Tribes to improve the distribution formula used in the CARES Act. o To the extent practicable, funding will be distributed by Treasury within 60 days of enactment. In addition to these Funds, the law creates a new $10 billion Coronavirus Capital Projects Fund for “critical capital projects directly enabling work, education, and health monitoring, including remote options, in response to the public health emergency with respect to the Coronavirus Disease.” To implement this Fund, Treasury is required to establish a process of applying for grants within 60 days of enactment. The Fund will provide: • $100 million for each state, the District of Columbia, and Puerto Rico; • $100 million split equally between the Virgin Islands, Guam, American Samoa, the Northern Mariana Islands, the Marshall Islands, Micronesia, and Palau; 26 • $100 million split equally between Tribal governments and Hawaii, with each receiving a minimum of $50,000; and • The remaining $4.7 billion will be distributed to states, the District of Columbia, and Puerto Rico as follows: o 50% based on population o 25% based on rural population o 25% based on household income that is below 150% of the poverty line The law also creates an additional $2 billion Local Assistance and Tribal Consistency Fund that will allocate $750 million to eligible revenue sharing counties (defined to include the District of Columbia, Puerto Rico, Guam, and the Virgin Islands) and $250 million to eligible Tribes for any government purpose other than lobbying. These funds will be distributed based on economic conditions of the recipient entities in fiscal years 2022 (beginning October 1, 2021) and 2023 (beginning October 1, 2022). Among other things, this fund is intended to assist counties currently reliant on the Payment in Lieu of Taxes (PILT) and Secure Rural Schools (SRS) programs, among other revenue sharing programs, but based on their real economic conditions rather than historic payments. 27 Frequently Asked Questions How can recipient governments use relief allocations from the State and Local Fiscal Recovery Funds? The Department of Treasury will issue guidance detailing its interpretation and implementation of eligible uses, but the statutory language specifically authorizes use of the funds. Each of the following is a separate allowable use of the funds for the recipient: • To respond to the pandemic or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impacted industries such as tourism, travel, and hospitality; • For premium pay to eligible workers performing essential work (as determined by each recipient government) during the pandemic, providing up to $13 per hour above regular wages; • For the provision of government services to the extent of the reduction in revenue due to the pandemic (relative to revenues collected in the most recent full fiscal year prior to the emergency); • To make necessary investments in water, sewer, or broadband infrastructure; In addition, a recipient may transfer its allocation to a private nonprofit organization, Tribal organization, public benefit corporation involved in the transportation of passengers or cargo, or special-purpose unit of State or local government, if the recipient government so chooses. The recipient entity would need to use the funds consistent with the purposes listed above. The recipient government must send Treasury periodic reports with a detailed accounting of the uses of the funds (States and territories must also provide all modifications to tax revenue sources since March 3, 2020). The language explicitly prohibits funds from being deposited into a pension fund. States and territories are also prohibited from using the funds to offset, either directly or indirectly, a tax cut made since March 3, 2021. While the State and Local Fiscal Recovery Fund eligible uses are broader than those of the CARES Act Coronavirus Relief Fund, guidance previously released for the Coronavirus Relief Fund may provide insight into how Treasury may interpret and implement these American Rescue Plan provisions. How will state and local governments receive the relief allocations? States and territories will receive their allocations within 60 days of submitting to Treasury a certification signed by an authorized officer that the funds are needed to respond to the pandemic and will be used in compliance with the eligible uses. If Treasury decides that a payment to a state requires additional justification, the Secretary could choose to withhold up to 50% of the allocation to each state and territory for up to 12 months from the date the certification of need is 28 received. Such a withholding would not be required, and if the state or territory submits a second certification of need, the Secretary would be required to release the withheld amount by the 12-month deadline. Funding for counties, metropolitan cities, and nonentitlement units of local government (generally those under 50,000 inhabitants) will be separated into two tranches. To the extent practicable, Treasury is required to send out the first tranche (equal to 50% of the recipient’s allocation) within 60 days of enactment, and the second tranche (the remaining 50%) not earlier than one year after the first disbursement. Counties, metropolitan cities, and nonentitlement units of local government are not required to submit a signed certification of need to Treasury. Because it could take a full year for Treasury to calculate and disburse the allocations for nonentitlement units of local government, Treasury is instead required to send the amounts intended for those recipients to each state (including territories) within 60 days. States and territories would then have 30 days to disburse the funds to the nonentitlements based on population. Because of the potential administrative burden of evaluating the eligibility for all of these smaller localities, a state could, if necessary, ask Treasury for up to three extensions for distributing one or more of those allocations. The state or territory would need to justify why the extension is warranted, and would have no authority to change the amount of, or attach additional requirements to, the payments allocated to the intended local government recipients. Why have the allocations on the estimates spreadsheet changed over time? • States: The bill was amended in the Senate to replace the minimum base payment to states of $500 million with a total state- and local-level combined allocation equal to what the states received under the CARES Act, guaranteeing a minimum of $1.25 billion for each state. • Counties: o A correction was made to an error in the way the CDBG allocations were weighted across counties. This resulted in a greater number of urban counties receiving the CDBG markup (up to 14, from 11 previously) and a subsequent reduction in the amounts received by other counties. o A correction was made to a data sorting error that resulted in the wrong population inputs being used for roughly 3% of all counties. • Metropolitan Cities: o A correction was made for an error in the way the CDBG allocations were weighted across metro cities. This resulted in increases in the projected assistance to each metropolitan city by about 9%. o Eligible metropolitan cities that did not receive a FY2020 CDBG award and were therefore left off initial runs were manually identified and added when possible. • Nonentitlement Units of Local Government: The estimates gained more precision over time based on updates to how Treasury will calculate the nonentitlement allocation for each state, as well as a change to the definition of “nonentitlement unit of local government” to more accurately cover active local governments performing the functions of municipalities, as had been the intent. For example, the prior definition would have inadvertently made non-governmental entities eligible for allocations, which while 29 appropriate for the CDBG program, was not the policy intent of the state and local funding in the American Rescue Plan. What will cause final allocations to differ from the estimates spreadsheet? • Interpretation and implementation decisions by the Department of Treasury, including the possibility of using the FY2021 CDBG formula for metro cities or 2020 population data for counties and nonentitlements (that data was not available at the time that the Congressional Research Service’s preliminary estimates were calculated). • The cap on nonentitlement allocations at 75% of the entity’s most recent budget as of January 27, 2020. Congressional Research Service analysts do not have local budget information sufficient to calculate this cap, so it is not reflected in the estimates. • Redistribution of funds from inactive counties to the local governments within the county. • Potential addition of eligible metro cities that did not receive a FY2020 CDBG award and were therefore not included on the spreadsheet. • Projected amounts for nonentitlements may be divided between more than one nonentitlement government to the extent that eligible nonentitlement governments have overlapping populations (for example, residents of a village government and town government in New York). In cases where an eligible government does not appear on this list but another government representing some or all of its population is listed, the total estimate provided represents all of the nonentitlement funding attributable to the government’s underlying population. Treasury guidance on how to distribute amounts for overlapping government will be determinative. What if a city, town, village, or township is not included on the estimates spreadsheet? The updated spreadsheet is not a comprehensive list of eligible nonentitlement units of local government; rather, it uses publicly available data to estimate how Treasury might interpret the law. The legislation defines “nonentitlement unit of local government” as either: (1) Any “municipality” (as defined by the Census) that is a city, county, town, township, parish, village, or other general purpose political subdivision of a State; Guam, the Northern Mariana Islands, the Virgin Islands, and American Samoa, or a general purpose political subdivision thereof; a combination of such political subdivisions that, except as provided in section 5306(d)(4) of this title, is recognized by the Secretary; and the District of Columbia. or, (2) any non-municipality (as defined by the Census) that is a town or township and which: (i) possesses powers and performs functions comparable to these associated with municipalities, 30 (ii) is closely settled, and (iii) contains within its boundaries no incorporated places as defined by the United States Bureau of the Census which have not entered into cooperation agreements with such town or township to undertake or to assist in the undertaking of essential community development and housing assistance activities. The Treasury Department will determine how this will be interpreted and implemented. In cases where an eligible government does not appear on this list but another government representing some or all of its population is listed, the total estimate provided represents all of the nonentitlement funding attributable to the government’s underlying population. Treasury will determine how such amounts are divided among such overlapping units of government. What about cases where a local government appears more than once? The legislation provides for funding to cities (including both metro cities and nonentitlements) and counties to be separate and distinct. In cases where cities are also incorporated as counties, those governments should expect to receive funding both as a city and as a county. However, any case where a local government is listed once as a city – either as both a metro city and a nonentitlement government, or twice as a nonentitlement government – is likely the product of error inherent in the estimating process. For any government that is listed as both a metro city and a nonentitlement government, the metro city estimate is likely to be more accurate. In cases where a government is listed more than once as a nonentitlement, any duplication should be ignored and the estimate should only be counted once, keeping in mind that some states have governments with identical names in different counties. 31 Coronavirus State & Local Fiscal Relief Fund Interim Final Guidance Main Web Site https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal- governments/state-and-local-fiscal-recovery-funds Application Portal Local governments that are direct recipients of funding from the program – counties and metropolitan cities (CDBG-entitlement cities) – should submit their application via the Treasury Department application portal as soon as possible to ensure that they receive their first allocation in a timely manner: https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal- governments/state-and-local-fiscal-recovery-fund/request-funding. Allocations Treasury has posted allocations for states, counties, and metropolitan cities. Treasury has not yet posted funding amounts for non-entitlement units of local government, which will receive their funds as a sub-allocation from the state. • Treasury expects to provide further guidance on distributions to non-entitlement units in the coming days. • Non-entitlement units of local government should note that the law requires states to sub-allocate funds within 30 days of receipt. Overview The 134-page interim final rule provides detail on the scope of the seven eligible uses for the funds that Congress included in the statute. It also provides details on prohibited uses, outlines reporting requirements, and lists specific questions that Treasury would like stakeholders to address in their comments. • Responses to those specific questions and all other comments will be due 60 days after the interim final rule is published in the Federal Register (probably sometime next week so approximately on July 16, 2021.) 32 Coronavirus State & Local Fiscal Relief Fund Interim Final Guidance Page 2 of 10 At the broadest level, the interim final rule aims to provide state, tribal, and local governments with “flexibility to determine how best to use payments from the Fiscal Recovery funds to meet the needs of their communities and populations.” • It goes on to state that “The interim final rule facilitates swift and effective implementation by establishing a framework for determining the types of programs and services that are eligible under the ARPA along with examples that state, tribal, and local governments may consider.” Public Health This category is perhaps the clearest and most flexible of all the eligible uses of Fiscal Recovery Funds, with the interim final rule stating that it “identifies a non-exclusive list of uses that address the COVID-19 public health emergency.” Eligible uses under this category include the following specific items. COVID-19 Containment & Mitigation • Vaccination programs • Medical expenses • Testing and contact tracing • Isolation or quarantine • PPE purchases • Support for vulnerable population to access medical or public health services • Public health surveillance • Enforcement of public health orders • Public communication efforts • Enhancement of healthcare capacity, including alternative care facilities • Support for prevention, mitigation, or other services in congregate facilities and schools • Enhancement of public health data systems • Capital investments in public facilities to meet pandemic operational needs • Ventilation improvements in key settings such as healthcare facilities Behavioral Healthcare Needs Exacerbated by the Pandemic • Mental health treatment • Substance misuse treatment • Other behavioral health services • Hotlines or warmlines • Crisis intervention • Services or outreach to promote access to health and social services Public Health & Safety Staff • Payroll and covered benefit expenses for public health, healthcare, human services, public safety, and similar employees, to the extent that they work on COVID-19 response. (For 33 Coronavirus State & Local Fiscal Relief Fund Interim Final Guidance Page 3 of 10 administrative convenience, the interim final rule allows recipients to consider such employees as entirely devoted to responding to the pandemic.) Address Disparities in Public Health Outcomes • In recognition of the disproportionate impact of the pandemic on low-income communities, the interim final rule presumes that certain types of services and programs performed in Qualified Census Tracts are eligible, including community health workers, public benefits navigators, housing services to support healthy living environments, remediation of lead paint or other lead hazards, and evidence based community violence intervention programs to mitigate the increase in violence during the pandemic. Negative Economic Impacts Eligible uses under this category include: • Job training, • Deposits into state unemployment insurance trust funds, • Aid to households, facing negative economic impacts of the pandemic, including cash transfer “proportional to negative economic impact” (food assistance, rent, mortgage, or utility assistance, counseling and legal aid to prevent eviction or homelessness, emergency burial assistance, home repairs, weatherization, internet access or digital literacy assistance. (The interim guidance allows recipients to presume that a household or population that experienced unemployment or food or housing insecurity or is low- or moderate-income experienced negative economic impacts from the pandemic.), • Expenses to improve the efficacy of economic relief programs, • Loans or grants to small businesses and nonprofits to mitigate pandemic-related financial hardship, • Rehiring state, local, and tribal government staff, and • Aid to impacted industries (travel, tourism, and hospitality) to respond to pandemic- related economic impacts, including mitigation and infection prevention measures to enable safe resumption of business. In recognition of the disproportionate negative economic impacts on certain communities and population, Treasury will presume that certain services are eligible uses, including: • Building stronger communities through investments in housing and neighborhoods in lower-income neighborhoods (homeless services, affordable housing development, housing vouchers, housing counseling, housing navigation to assist with moves to higher opportunity neighborhoods), • Addressing educational disparities (enhanced early learning, assistance to high-poverty school districts, evidence-based education services such as tutoring, summer, after school and other extended learning, evidence-based practices to address social, emotional, and mental health needs of students) • Promoting healthy childhood environments (new or expanded childcare, home visiting programs, enhanced child welfare services) 34 Coronavirus State & Local Fiscal Relief Fund Interim Final Guidance Page 4 of 10 Premium Pay The statute allows recipients to use funds to provide premium pay to eligible workers performing essential work during the COVID-19 public health emergency or to provide grants to third parties to provide premium pay of up to $13 per hour up to $25,000 to such workers. The interim final rule defines eligible workers to include: • Staff at nursing homes, hospitals, and home care settings, • Workers at farms, food production facilities, grocery stores, and restaurants, • Janitors and sanitation workers, • Truck drivers, transit staff, and warehouse workers, • Public health and safety staff, • Childcare workers, educators, and other school staff, and • Social services and human services staff. The final rule allows the chief executive officer of each recipient to add additional sectors to the above list. In addition, the final rule requires that any premium pay program prioritize lower income workers that perform essential work by limiting premium pay to a threshold of 150% of the state average annual wage for all occupations. Revenue Loss Per the statute, the interim final rule allows recipients to use funds to cover revenue loss due to the pandemic, using the most recent fiscal year completed prior to the pandemic as a baseline. The interim final rule allows recipients to calculate revenue loss by comparing actual revenue to what would have been expected to occur absent the pandemic. Recipients can use their average annual revenue growth rate over the three full years prior to the pandemic or 4.1% (the national average of state and local government revenue growth over the three years prior to the pandemic). For administrative convenience, the interim final rule presumes that any diminution of actual revenue relative to the expected trend is due to the pandemic. Recipients may immediately apply funds upon receipt to any 2020 revenue reduction and will have the opportunity to recalculate revenue loss through the end of the program. Local governments had hoped that Treasury would allow the calculation of revenue loss by specific streams of revenue. However, the interim final rule requires recipients to calculate revenue loss across all streams of revenue. It includes intergovernmental transfers between state and local governments but excludes intergovernmental transfers from the federal government. Water, Sewer & Broadband Infrastructure On water and sewer, the interim final rule aligns use of the funds with those of the Drinking Water and Clean Water State Revolving Loan Funds, including projects on privately owned infrastructure. • In response to local government requests, the interim final rule includes stormwater in the broad definition of water and sewer infrastructure. 35 Coronavirus State & Local Fiscal Relief Fund Interim Final Guidance Page 5 of 10 • In addition, the interim final rule specifically encourages investments in lead pipe replacement, consolidation or establishment of water and sewer systems, water and sewer cybersecurity, and projects to address or mitigate climate change, including resilience and green infrastructure. On broadband, the interim final rule allows for investments that are designed to provide services providing speeds of up to 100 Mbps, with a focus on providing or expanding service to unserved and underserved areas, defined as areas that lack access to a wireline connection capable of reliably delivering speeds of 25 Mbps download and 3 Mbps upload. Transfers to Other Entities The statute allows recipients to transfer funds to a private nonprofit organization (as that term is defined in paragraph (17) of section 401 of the McKinney-Vento Homeless Assistance Act (42 USC 11360(17)), a public benefit corporation involved in the transportation of passengers or cargo, or a special purpose unit of state or local government. • The interim final rule clarifies that the statute’s list of transferees is not exclusive. Recipients remain responsible for reporting the use of transferred funds. Non-Entitlement Units of Local Government The statute and interim final rule require the states to sub-allocate funds to non-entitlement units of local governments within 30 days and prohibit the states from imposing any additional requirements on the funds. In addition, the statute and interim final rule require states to limit sub-allocation to more than 75% of a local government’s most recent budget. Timing The statute requires recipients to use funds by December 31, 2024; the interim final rule interprets that to mean that recipients must obligate funds by that date. • The reporting and performance periods for the funds will therefore run through December 31, 2026. Ineligible Uses Per the statute, the interim rule specifically prohibits local governments from using funds to make “extraordinary” contributions to pension funds. • However, the interim rule allows payments into a pension fund as part of regular employee compensation provided with the funds. Other ineligible uses include: • A general, non-broadband, water, sewer, or stormwater infrastructure project unless the project responds to a specific pandemic public health need (such as a vaccine delivery facility), • Contributions to rainy day funds, financial reserves, or similar funds, • Satisfaction of any obligation arising under or pursuant to a settlement agreement, and judgement, consent decree, or judicially confirmed debt restructuring plan except to the 36 Coronavirus State & Local Fiscal Relief Fund Interim Final Guidance Page 6 of 10 extent it requires the provision of services that would respond to the COVID-19 public health emergency). Reporting The interim final rule requires recipients to submit an interim outlining uses through July 31, 2021 by August 31, 2021. • Non-entitlement units of local government are not required to submit an interim report. Recipients will subsequently have to submit quarterly report through the end of the performance period on December 31, 2026, with reports due 30 days after the end of each calendar quarter. • Reports will include financial data, information on contracts and subawards over $50,000, types of projects funded, and other information regarding use of the funds. Recipients with over 250,000 population will also have to submit an annual Recovery Plan Performance report. • The Recovery Plan Performance report will provide the public and Treasury information on the projects that recipients are undertaking with program funding and how they are planning to ensure project outcomes are achieved in an effective, efficient, and equitable manner. • Each jurisdiction will have some flexibility in terms of the form and content of the Recovery Plan Performance report, provided it includes the minimum information required by Treasury. • The initial report will be due August 31, 2021 with subsequent reports due 30 days after the end of the year. Specific Questions Treasury is accepting all comments on the interim final rule but is seeking answers to these specific questions. 1) Are there other types of services or costs that Treasury should consider as eligible uses to respond to the public health impacts of COVID-19? Describe how these respond to the COVID-19 public health emergency. 2) The interim final rule permits coverage of payroll and benefits costs of public health and safety staff primarily dedicated to COVID-19 response, as well as rehiring of public sector staff up to pre-pandemic levels. For how long should these measures remain in place? What other measures or presumptions might Treasury consider to assess the extent to which public sector staff are engaged in COVID-19 response, and therefore reimbursable, in an easily-administrable manner? 3) The interim final rule permits rehiring of public sector staff up to the government’s pre- pandemic staffing level, which is measured based on employment as of January 27, 2020. Does this approach adequately measure the pre-pandemic staffing level in a manner that is both accurate and easily administrable? Why or why not? 37 Coronavirus State & Local Fiscal Relief Fund Interim Final Guidance Page 7 of 10 4) The interim final rule permits deposits to Unemployment Insurance Trust Funds, or using funds to pay back advances, up to the pre-pandemic balance. What, if any, conditions should be considered to ensure that funds repair economic impacts of the pandemic and strengthen unemployment insurance systems? 5) Are there other types of services or costs that Treasury should consider as eligible uses to respond to the negative economic impacts of COVID-19? Describe how these respond to the COVID-19 public health emergency. 6) What other measures, presumptions, or considerations could be used to assess “impacted industries” affected by the COVID-19 public health emergency? 7) What are the advantages and disadvantages of using Qualified Census Tracts and services provided by Tribal governments to delineate where a broader range of eligible uses are presumed to be responsive to the public health and economic impacts of COVID-19? What other measures might Treasury consider? Are there other populations or geographic areas that were disproportionately impacted by the pandemic that should be explicitly included? 8) Are there other services or costs that Treasury should consider as eligible uses to respond to the disproportionate impacts of COVID-19 on low-income populations and communities? Describe how they respond to the COVID-19 public health emergency or its negative economic impacts, including its exacerbation of pre-existing challenges in these areas. 9) The interim final rule includes eligible uses to support affordable housing and stronger neighborhoods in disproportionately impacted communities. Discuss the advantages and disadvantages of explicitly including other uses to support affordable housing and stronger neighborhoods, including rehabilitation of blighted properties or demolition of abandoned or vacant properties. In what ways does, or does not, this potential use address public health or economic impacts of the pandemic? What considerations, if any, could support use of Fiscal Recovery Funds in ways that do not result in resident displacement or loss of affordable housing units? 10) Are there additional sectors beyond those listed in the interim final rule that should be considered essential critical infrastructure sectors? 11) What, if any, additional criteria should Treasury consider to ensure that premium pay responds to essential workers? 12) What consideration, if any, should be given to the criteria on salary threshold, including measure and level, for requiring written justification? 38 Coronavirus State & Local Fiscal Relief Fund Interim Final Guidance Page 8 of 10 13) Are there sources of revenue that either should or should not be included in the interim final rule’s measure of “general revenue” for recipients? If so, discuss why these sources either should or should not be included. 14) In the interim final rule, recipients are expected to calculate the reduction in revenue on an aggregate basis. Discuss the advantages and disadvantages of, and any potential concerns with, this approach, including circumstances in which it could be necessary or appropriate to calculate the reduction in revenue by source. 15) Treasury is considering whether to take into account other factors, including actions taken by the recipient as well as the expiration of the COVID-19 public health emergency, in determining whether to presume that revenue losses are “due to” the COVID-19 public health emergency. Discuss the advantages and disadvantages of this presumption, including when, if ever, during the covered period it would be appropriate to reevaluate the presumption that all losses are attributable to the COVID-19 public health emergency. 16) Do recipients anticipate lagged revenue effects of the public health emergency? If so, when would these lagged effects be expected to occur, and what can Treasury to do support these recipients through its implementation of the program? 17) In the interim final rule, paying interest or principal on government debt is not considered provision of a government service. Discuss the advantages and disadvantages of this approach, including circumstances in which paying interest or principal on government debt could be considered provision of a government service. 18) What are the advantages and disadvantages of aligning eligible uses with the eligible project type requirements of the DWSRF and CWSRF? What other water or sewer project categories, if any, should Treasury consider in addition to DWSRF and CWSRF eligible projects? Should Treasury consider a broader general category of water and sewer projects? 19) What additional water and sewer infrastructure categories, if any, should Treasury consider to address and respond to the needs of unserved, undeserved, or rural communities? How do these projects differ from DWSFR and CWSRF eligible projects? 20) What new categories of water and sewer infrastructure, if any, should Treasury consider to support State, local, and Tribal governments in mitigating the negative impacts of climate change? Discuss emerging technologies and processes that support resiliency of water and sewer infrastructure. Discuss any challenges faced by States and local governments when pursuing or implementing climate resilient infrastructure projects. 21) Infrastructure projects related to dams and reservoirs are generally not eligible under the CWSRF and DWSRF categories. Should Treasury consider expanding eligible infrastructure under the interim final rule to include dam and reservoir projects? Discuss public health, 39 Coronavirus State & Local Fiscal Relief Fund Interim Final Guidance Page 9 of 10 environmental, climate, or equity benefits and costs in expanding the eligibility to include these types of projects. 22) What are the advantages and disadvantages of setting minimum symmetrical download and upload speeds of 100 Mbps? What other minimum standards would be appropriate and why? 23) Would setting such a minimum be impractical for particular types of projects? If so, where and on what basis should those projects be identified? How could such a standard be set while also taking into account the practicality of using this standard in particular types of projects? In addition to topography, geography, and financial factors, what other constraints, if any, are relevant to considering whether an investment is impracticable? 24) What are the advantages and disadvantages of setting a minimum level of service at 100 Mbps download and 20 Mbps upload in projects where it is impracticable to set minimum symmetrical download and upload speeds of 100 Mbps? What are the advantages and disadvantages of setting a scalability requirement in these cases? What other minimum standards would be appropriate and why? 25) What are the advantages and disadvantages of focusing these investments on those without access to a wireline connection that reliably delivers 25 Mbps download by 3 Mbps upload? Would another threshold be appropriate and why? 26) What are the advantages and disadvantages of setting any particular threshold for identifying unserved or underserved areas, minimum speed standards or scalability minimum? Are there other standards that should be set (e.g., latency)? If so, why and how? How can such threshold, standards, or minimum be set in a way that balances the public’s interest in making sure that reliable broadband services meeting the daily needs of all Americans are available throughout the country with the providing recipients flexibility to meet the varied needs of their communities? 27) Beyond a “deposit” and a “payroll contribution,” are there other types of payments into a pension fund that Treasury should consider? Questions 28 through 34 address the prohibition on states using funds to offset tax cuts and therefore do not apply to local governments. 35) What are the advantages and disadvantages of treating the list of transferees in sections 602(c)(3) and 603(c)(3) as nonexclusive, allowing States and localities to transfer funds to entities outside of the list? 36) Are there alternative ways of defining “special-purpose unit of State or local government” and “public benefit corporation” that would better further the aims of the Funds? 40 Coronavirus State & Local Fiscal Relief Fund Interim Final Guidance Page 10 of 10 37) What are alternative ways for States and territories to enforce the 75 percent cap while reducing the administrative burden on them? 38) What criteria should Treasury consider in assessing requests for extensions for further time to distribute NEU payments? 41 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 21-866,Version:1 AGENDA CAPTION Receive a report,hold a discussion,and give staff direction regarding the role of City Council Committees, membership to subcommittees and other internal/external groups,and their associated nomination/appointment processes. City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™42 City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: City Manager’s Office ICM: Sara Hensley DATE: May 25, 2021 SUBJECT Receive a report, hold a discussion, and give staff direction regarding the role of City Council Committees, membership to subcommittees and other internal/external groups, and their associated nomination/ appointment processes. BACKGROUND Members of the City Council serve on designated standing committees and other internal/external boards that provide policy guidance and direction to staff. Some are established by City Council resolution/ordinance, while the external boards have their own legislation as to the composition of their membership. To account for changes in City Council composition resulting from elections, these assignments are reviewed annually to determine any needed adjustments to existing member assignments as well as afford members the opportunity to identify any new committees they may be interested in serving on. Through Informal Staff Report No. 2021-028 provided as part of the May 7, 2021 Friday Report, council members were asked to identify/submit Committees of Interest to the City Secretary’s Office by Monday, May 17, 2021. The attached information provides a narrative of each applicable board/committee, a listing of current assignments/vacancies, as well as Committees of Interest submitted by each council member. While not yet available, the information provided will be updated to include the proposed assignments by Mayor Hudspeth. There are certain external boards/committees that at this point are for discussion purposes only as they have their own nomination/appointment processes. As part of the review process, however, council members were also asked to determine their point of interest for these external boards/committees. That identification gives staff general guidance on how they can proceed to determine proposed assignments at the time the appointment is presented to City Council for formal approval later. City Council will be asked to consider appointments during the Special Called Meeting that follows this work session. Any changes made during the Work Session deliberations will be incorporated into the exhibit for that item. However, for the following boards/committees, members identified within the exhibit will not be part of the approval process, but rather, proposed appointments will be forthcoming at future meetings as applicable for each. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 43 • Community Justice Council [inactive as of 06/03/2019] • Denton County Transportation Authority (DCTA) o NOTE: DCTA reported this appointment expiring November 2021 • Downtown Denton Tax Increment Financing (TIF) reinvestment zone no. 1 • Economic Development Partnership Board • North Texas Commission (NTC) • Regional Transportation Council (RTC) • Tax Increment Reinvestment Zone No. 2 (Westpark TIRZ No. 2) • Texas Municipal Power Agency (TMPA) EXHIBITS Exhibit 1 – Agenda Information Sheet Exhibit 2 – ISR No. 2021-028 – Council Committees Exhibit 3 – Council Committee Narrative Exhibit 4 – Roster - Existing Assignments, Vacancies, COI & Proposed Assignments Exhibit 5 – Presentation Respectfully submitted: Rosa Rios City Secretary 44 Date: May 7, 2021 Report No. 2021-028 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: City Council Committee assignments BACKGROUND: Resolutions establishing City Council Committees provide the following: 1) Members serve at the pleasure of the City Council until successors are appointed by the Mayor and approved by the City Council; 2) The presiding officer of the Committee be chosen annually by the Committee; and 3) Members of the Committee must be current elected City Council Members of the City of Denton. Historically, however, the Mayor has allowed each Council Member to select those committees they wish to serve on. That practice continues with the upcoming 2021-2022 Council Committee assignments. Designated standing, external, and ad-hoc committees assist with the development of policy. The committee assignments are reviewed annually by the City Council to allow the opportunity to adjust if/as necessary. Information provided with this report are as follows:  Attachment 1 - Provides a brief description of each type of committee  Attachment 2 - Provides the listing of current member assignments o The highlighted names are expected vacancies effective immediately following the swearing in of the Council Members-Elect which is scheduled for Tuesday, May 11, 2021. Please review the current assignments and let me know by Monday, May 17, 2021, which committees are of interest to you. The proposed appointment list will be presented for discussion at the May 25th Work Session, with an action item to follow later in the day in the event everything is finalized during the work session. Following a prompt/strict appointment schedule will ensure Council Committees can begin meeting immediately following formal appointments. Council Members-Elect for Districts 1, 2, and 4 are also being provided a copy of this report so they too can begin identifying committees of interest and submit those by the noted due date. ATTACHMENTS Attachment 1 – Council Committee Narrative Attachment 2 – Current Council Committee Assignments STAFF CONTACT: Rosa Rios, City Secretary (940) 349-8309 rosa.rios@cityofdenton.com 147 45 CITY COUNCIL COMMITTEES AGENDA COMMITTEE The Agenda Committee is composed of the Mayor, the Mayor Pro Tem, and the City Manager. The Agenda Committee reviews the City Manager’s proposed City Council agendas as to form and agenda content. AUDIT/FINANCE COMMITTEE The Audit/Finance Committee is composed of three Council Members. The City Manager, or his designee, is an ex-officio member. The duties and purpose of the Committee shall be to assist the Council in fulfilling its organizational oversight responsibilities relating to the audit function, the investment function and any other financial related activities as delegated by the City Council. COMMITTEE ON COMMUNITY ENGAGEMENT The Committee on Citizen Engagement is composed of three Council Members. The City Manager, or his designee, will provide guidance and assistance to the Committee. The duties and purpose of the Committee shall be to provide advice to the Council and/or staff regarding the timely distribution of accurate and complete information to Denton citizens and devise methods of engaging Denton citizens in the various processes of city government. COMMITTEE ON THE ENVIRONMENT The Committee on the Environment is composed of three Council Members. The duties of the Committee shall be to review, discuss, deliberate, and consider environmental issues and resources and make recommendations to the Council. The Committee will also deliberate and make recommendations regarding any other matter delegated to the Committee by the Council. COUNCIL AIRPORT COMMITTEE The Council Airport Committee is composed of three City Council members. The City Manager, or his designee, will provide guidance and assistance as needed. The duties and purpose of the Committee shall be to review, consider and make recommendations to the City Council on: the Airport Business Plan and Airport Master Plan; any airport infrastructure improvement or other major project impacting the airport; the acquisition, review, and consideration of grant funding for the airport; contracts and leases of airport property, including recommending appropriate terms to the City Council; long term financial planning and budgetary issues affecting the airport, and issues raised as a result of interface between citizens, airport tenants, or other interested parties. COUNCIL APPOINTEE PERFORMANCE REVIEW COMMITTEE The Council Appointee Performance Review Committee is composed of three Council Members, with the Director of Human Resources as an ex-officio member. The duties and purpose of the Committee shall be to assist the City Council in performance review of the City Council appointees and to ensure that the appointee’s job descriptions are accurate and properly reflect current job duties in order to make recommendations to the Council to assist the Council in evaluating the job performance of the council appointees. Additionally, the Committee will make recommendations regarding employment agreements, including renewals, of council appointee positions. 148 46 COMMUNITY PARTNERSHIP COMMITTEE The Hotel Occupancy Tax and Sponsorship Committee is composed of three Council Members. The duties and purpose of the Committee shall be to monitor allocation and use of both the hotel occupancy tax and sponsorship funds, ensuring HOT funds are being used to directly enhance and promote tourism and the hotel/ convention industry, ensuring the sponsorship funds are being used to further a charitable cause, economic or community growth and serve a public purpose in the best interest of the general welfare of the City of Denton, and recommend organizations to receive funding to the City Council. MOBILITY COMMITTEE The Mobility Committee is composed of three Council Members. The duties and purpose of the Committee shall be to review, consider and make recommendations to the City Council regarding any changes to the Mobility Plan, local transportation policy, and any items concerning regional transportation policies and activities. 149 47 EXTERNAL COUNCIL COMMITTEES COMMUNITY JUSTICE COUNCIL [Inactive as of 06/03/2019] The Community Justice Council is established according to Chapter 76 of the Texas Government Code. That Chapter indicates that a Justice Council has to be established as a prerequisite to establishing a community corrections facility. The Community Justice Council provides continuing policy guidance and direction for the development of criminal justice plans and community correction facilities and programs and conditions of community supervision. Among the members of the Justice Council is a council member of the most populous municipality in the County that the facility will serve. Membership: Because Inactive, unable to determine if this must be an elected official; but historically has been an elected official. DISCOVER DENTON ADVISORY BOARD The Discover Denton Advisory Board (initially established as the Convention and Visitors Bureau Advisory Board) was initiated in 1976 by the Denton Chamber of Commerce to promote events and attractions, provide hospitality education, and ensure a positive experience to Denton visitors. It operates via an agreement between the City of Denton and the Denton Chamber of Commerce. The Advisory Board makes recommendations to the Chamber of Commerce Board of Directors. Membership: Must be three (3) elected officials, at least two of whom must also serve on the Community Partnership Committee. DALLAS REGIONAL MOBILITY COALITION The Dallas Regional Mobility Coalition is a transportation advocacy group made up of cities, counties and transportation agencies in a five-county region (Dallas, Denton, Collin, Rockwall and Ellis) with a primary mission to advance critical mobility projects through advocacy efforts with state and federal elected officials and regional transportation agencies. The DRMC is governed by a 27-member board of directors representing cities, counties and transportation agencies in the greater Dallas area. It consists of seven members, one each from the cities of Carrollton, Garland, Grand Prairie, Irving, Mesquite, Plano and Richardson being either the Mayor or another elected official designated by the City Council; four members, designated by the Mayor of Dallas, being either two or three elected officials from the City of Dallas and one or two community leaders who are non-elected officials; four members, one each from Collin, Dallas, Denton, and Ellis County, being either the County Judge or another elected official designated by the County Judge; elected officials from those cities not represented in either of the first two categories; one community leader (non-elected official) appointed by the Dallas County Judge; four ex-officio members being the Texas Department of Transportation District 18 District Engineer, the Executive Director of the Texas Turnpike Authority, the Executive Director of the Dallas Area Rapid Transit Authority, the Staff Director of the Regional Transportation Council; and one business leader (non-elected official) appointed annually by the Legislative Coalition of the Dallas Area Chambers of Commerce. Membership: Must be the Mayor or another elected official. 150 48 DENTON COUNTY BEHAVIORAL HEALTH LEADERSHIP TEAM The Denton County Behavioral Health Leadership Team (DCBHLT) is composed of fifteen to thirty-three members, including one to two appointees from Denton City Council. Per the DCBHLT bylaws, “Cities/Towns should identify a council member, senior staff, executive, or community member” to serve on the team. Appointees shall serve at least one two-year term and attend six meetings in the calendar year. The purpose of the Denton County Behavioral Leadership Team (DCBHLT) is to convene as a policy making team tasked with improving the planning, coordination, oversight, and implementation required to create systems change, for behavioral health services in Denton County. Membership: May be an elected official, senior staff, executive, or community member. DENTON COUNTY HOMELESSNESS LEADERSHIP TEAM The Denton County Homelessness Leadership Team (DCHLT) is composed of seventeen to thirty-eight members, including one to two appointees from the City of Denton. Per the DCHLT bylaws, “Cities/Towns should identify a council member, senior staff, executive, or community member” to serve on the team. The DCHLT shall have one to two appointees from Law Enforcement. A member of city staff serves as an ex-officio member. Appointees shall serve at least one two-year term and attend six meetings in the calendar year. The purpose of the Denton County Homelessness Leadership Team (DCHLT) is to convene as a policy making team tasked with improving the planning, coordination, oversight, and implementation required to create systems change, for housing/homelessness initiatives in Denton County. Membership: May be elected official(s), senior staff, executive, or community member. DENTON COUNTY TRANSPORTATION AUTHORITY BOARD (DCTA) The Denton County Transportation Authority is governed by a five (5) voting-member Board which includes a representative from Denton, Lewisville, Highland Village, and two members from Denton County serving two-year terms. Each member city is permitted to have a primary and alternate representative. Denton County is permitted to have two primary and two alternate representatives. The Board adopts the annual operating budget and is responsible for setting policy. Membership: Elected officials may serve as board members; includes an alternate. Board members must have professional experience in the field of transportation, business, government, engineering or law. DENTON COUNTY WORKFORCE SUCCESS LEADERSHIP TEAM The Denton County Workforce Success Leadership Team (DCWSLT) is composed of twenty-seven to forty-two members, including one appointee from the City of Denton. Per the DCWSLT bylaws, “Cities/Towns should identify a council member, senior staff, executive, or community member” to serve on the team. The DCWSLT shall have one to two appointees from Economic Development Departments. Appointees shall serve at least one two-year term and attend twelve meetings in the calendar year. The purpose of the Denton County Workforce Success Leadership Team (DCWSLT) is to convene as a policy making team tasked with improving the planning, coordination, oversight, and implementation required to create systems change for workforce/employment initiatives in Denton County. Membership: May be an elected official, senior staff, executive, or community member 151 49 LAKE RAY ROBERTS PLANNING AND ZONING COMMISSION The Lake Ray Roberts Planning & Zoning Commission hears requests for zoning changes, special use permits, recreational park permits, sign permits, planned development applications and variances. The Mayor or his/her designee of each city for the territory extraterritorial jurisdiction of which includes any part of the Lake Ray Roberts lake area in the County. Membership: Must be the Mayor NORTH TEXAS COMMISSION The North Texas Commission is a public-private partnership of businesses, cities, counties, chambers of commerce, economic development entities and higher education institutions dedicated to advancing the vibrancy of the North Texas region. The North Texas Commission provides the resources to carry out programs that benefit the entire region and to address regional problems and opportunities. Membership: Prefer it be an elected official (historically the Mayor) otherwise a City employee; can appoint a proxy (historically the City Manager). REGIONAL TRANSPORTATION COUNCIL The North Central Texas Council of Governments has served as the Metropolitan Planning Organization (MPO) for the Dallas-Fort Worth Metropolitan Area. The Regional Transportation Council is the independent transportation policy body of the Metropolitan Planning Organization. The RTC consists of 44 members which include local elected or appointed officials from the metropolitan area and representatives from each of the area's transportation providers. The RTC oversees the metropolitan transportation planning process. Membership: Must be elected officials. TEXAS MUNICIPAL POWER AGENCY The Board of Directors assists in establishing policies, setting regulations, and overseeing the administration and management of the agency as well as approving and auditing the budget. The City of Denton has two representatives serve on the Board of Directors. Membership: Two representatives approved by the City Council who may, but need not necessarily be, members of the City Council and/or the Public Utilities Board. Once appointed by City Council, members may only be removed for cause in accordance with the Denton City Charter, Section 14.16. 152 50 OTHER COUNCIL COMMITTEES AND BOARDS DEVELOPMENT CODE REVIEW COMMITTEE The Development Code Review Committee is composed of three City Council members plus three Planning and Zoning Commissioners. The duties and purpose of the Committee shall be to review all proposed revisions to the Denton Development Code and make recommendation to the City Council regarding the proposed revisions. Membership: Per City ordinance, the Committee shall be comprised of three City Council Members (plus three Planning and Zoning Commissioners). ECONOMIC DEVELOPMENT PARTNERSHIP BOARD The Economic Development Partnership Board consists of twelve members: (1) two members from City Council at the time of their appointment, (2) two members from the Denton Chamber of Commerce Board of Directors at the time of their appointment who reside or work in the City, (3) two members who will be, or must be currently employed by a top 20 City of Denton ad valorem or sales tax payer and who reside or work in the City, (4) the President of UNT or his/her designee who does not have a city residency requirement; (5) the Chancellor and President of TWU or his/her designee who does not have a city residency requirement; (6) a member with knowledge or experience in general aviation-related matters with no financial interest at the Denton Enterprise Airport and who resides or works in the City, (7) a citizen of Denton with specific knowledge, skills and abilities to assist in the functions of the Economic Development Partnership Board; (8) a member nominated by the Denton Black Chamber of Commerce Board of Directors who resides or works in the City; (9) a member nominated by the Denton Hispanic Chamber of commerce who resides or works in the City. The City Manager, or his designee, the President of the Chamber, and the Superintendent of the Denton Independent School District, will serve as ex-officio members of the Board. The Board provides economic development policy guidance and makes recommendations to the City Council and Chamber of Commerce; reviews, considers and makes recommendations to the City Council regarding marketing and branding for the Denton Enterprise Airport; reviews, considers and makes recommendations to the City Council regarding Denton Enterprise Airport incentive policies as assigned by the City Council or requested by the City Manager; and acts as a recommending body to the City Council for specific airport economic development incentives as assigned by the City Council or requested by the City Manager and permitted by City and State law. Membership: Per City ordinance, two members of the Board shall be City Council Members. DOWNTOWN DENTON TAX INCREMENT FINANCING (TIF) REINVESTMENT ZONE NO. 1 The Downtown Denton Tax Increment Financing (TIF) Reinvestment Zone No. 1 Board is composed of seven members: two City Council members, two are either property owners of property located within the Tax Increment Reinvestment Zone or residents whose primary residence is located within the Tax Increment Reinvestment Zone, two are either business owners of businesses located within the Tax Increment Reinvestment Zone or members of the Denton Chamber of Commerce Board of Directors, and one a qualified voter of the City of Denton. 153 51 The Board makes recommendations to the City Council concerning the administration of the Zone; prepares and adopts a project plan and Tax Increment Financing Reinvestment Zone financing plan for the Zone and submits the plans to the City Council for approval; prepares, implements and monitors such project and financing plans for the Tax Increment Financing Reinvestment Zone as the City Council considers advisable including the submission of an annual report on the status of the Zone. Membership: Per City ordinance, two members shall be City Council Members. TAX INCREMENT REINVESTMENT ZONE NO. 2 (WESTPARK TIRZ NO. 2) The Tax Increment Reinvestment Zone Number Two Board consists of fourteen members: twelve members of the Economic Development Partnership Board, one member appointed by the governing body of Denton County, and one member appointed by the “developer”, Rayzor Investments, LLP. The Board makes recommendations to the City Council concerning the administration of the Zone; prepare and adopt a project plan and Tax Increment Reinvestment Zone financing plan for the Zone and submit the plans to the City Council for approval; prepare, implement and monitor such project plan and financing plan for the Zone as the Council considers advisable, including the submission of an annual report on the status of the Zone. Membership: Per City ordinance, board membership consists of members of the EDP Board, of which two members shall be City Council Members. 154 52 COUNCIL COMMITTEE ASSIGNMENTS 2020-2021 Updated May 6, 2021 COMMITTEES CURRENT MEMBERS Agenda Committee Per City ordinance, must be elected officials Hudspeth Davis [City Manager] Audit/Finance Committee Per City resolution, must be elected officials Meltzer Armintor Ryan Committee on Community Engagement Per City resolution, must be elected officials Johnson (Chair) Armintor (Vice Chair) Meltzer Committee on the Environment Per City resolution, must be elected officials Meltzer Baker Davis Council Airport Committee Per City resolution, must be elected officials Meltzer Davis Ryan Council Appointee Performance Review Committee [Inactive] Per City resolution, must be elected officials None. Address appointments if activated. 1Community Partnership Committee Per City resolution, must be elected officials 1Baker 1Johnson Davis Mobility Committee Per City resolution, must be elected officials Armintor Ryan Meltzer BOARD & COMMISSION CURRENT MEMBERS Development Code Review Committee (previously an Ad Hoc Committee) Per City ordinance, must be elected officials (plus three Planning and Zoning Commissioners) Johnson Davis Ryan COMMITTEES CURRENT MEMBERS 2Economic Development Partnership Board Per City ordinance, must be elected officials 2Davis [Term ends 2022] 2Hudspeth [Term ends 2021] Downtown Denton Tax Increment Finance (TIF) Reinvestment Zone No. 1 Per City ordinance, must be elected officials Meltzer [Term ends 2022] Baker [Term ends 2021] 2Tax Increment Reinvestment Zone No. 2 [West Park Tirz No. 2] Per City ordinance, must be elected officials 2Davis [Term ends 2022] 2Hudspeth [Term ends 2021] LEGEND: 1At least two members who serve on the Community Partnership Committee must also serve on the Discover Denton Advisory Board 2All members of the Economic Development Partnership Board must also serve on the Tax Increment Reinvestment Zone No. 2 [West Park Tirz No. 2] Separate appt. process Separate appt. process Separate appt. process Indicates immediate appointment needed after Swearing in of Council Members-Election (May 11, 2021). Terms end August 31, 2021. Need to identify Partial Term & Full Term ending August 31, 2023. 155 53 EXTERNAL CURRENT MEMBERS Lake Ray Roberts P&Z Commission Must be the Mayor Per Local Government Code, Title 7, Subtitle B, Chapter 31, Subchapter F Hudspeth [Term expires June 3, 2021] 1Discover Denton Advisory Board (Previously Convention and Visitors Bureau Advisory Board) Must be 3 elected officials Per Discover Denton Advisory Board – Policy and Guidelines 1Baker 1Johnson Ryan Dallas Regional Mobility Coalition Must be the Mayor or another elected official Per Dallas Regional Mobility Coalition Bylaws Ryan Texas Municipal Power Agency Must be elected official; historically second member from Public Utilities Board Per VATCS, Article 1435a and City Ordinance Chris Watts [Term expires July 18, 2021] Bill Cheek, Jr./Alternate (PUB Member; Term expires July 18, 2022) North Texas Commission Prefer it be an elected official (historically the Mayor) otherwise a City employee; can appoint a proxy (historically the city manager) Per North Texas Commission Bylaws Hudspeth (City Manager – Proxy) Denton County Behavioral Health Leadership Team May be elected official, senior staff, executive, or community member Per Denton County Behavioral Health Leadership Team Bylaws Hudspeth Denton County Homelessness Leadership Team May be elected official(s), senior staff, executive, or community member Per Denton County Homelessness Leadership Team Bylaws Hudspeth Staff Member/City Mgr.’s Office Denton County Workforce Success Leadership Team May be elected official, senior staff, executive, or community member Per Denton County Workforce Success Leadership Team Bylaws Ryan (Term expires 2021] Denton County Transportation Authority (DCTA) May be elected official(s) Per Denton County Transportation Authority Bylaws Chris Watts [Term expires May 20, 2021] Ryan (Alternate) [Term expires May 20, 2021] Regional Transportation Council May be elected official(s) Per Regional Transportation Council Bylaws Ryan (Term ends June 2022] Hudspeth (Alternate) Community Justice Council [Inactive as of 06/03/2019] Pending research on whether member must be an elected official Pending research on legislation as currently inactive None. Address appointment if activated. LEGEND: 1At least two members who serve on the Community Partnership Committee must also serve on the Discover Denton Advisory Board 2All members of the Economic Development Partnership Board must also serve on the Tax Increment Reinvestment Zone No. 2 [West Park Tirz No. 2] Separate appt. process Separate appt. process Separate appt. process Separate appt. process 156 54 CITY COUNCIL COMMITTEES AGENDA COMMITTEE The Agenda Committee is composed of the Mayor, the Mayor Pro Tem, and the City Manager. The Agenda Committee reviews the City Manager’s proposed City Council agendas as to form and agenda content. AUDIT/FINANCE COMMITTEE The Audit/Finance Committee is composed of three Council Members. The City Manager, or his designee, is an ex-officio member. The duties and purpose of the Committee shall be to assist the Council in fulfilling its organizational oversight responsibilities relating to the audit function, the investment function and any other financial related activities as delegated by the City Council. COMMITTEE ON COMMUNITY ENGAGEMENT The Committee on Citizen Engagement is composed of three Council Members. The City Manager, or his designee, will provide guidance and assistance to the Committee. The duties and purpose of the Committee shall be to provide advice to the Council and/or staff regarding the timely distribution of accurate and complete information to Denton citizens and devise methods of engaging Denton citizens in the various processes of city government. COMMITTEE ON THE ENVIRONMENT The Committee on the Environment is composed of three Council Members. The duties of the Committee shall be to review, discuss, deliberate, and consider environmental issues and resources and make recommendations to the Council. The Committee will also deliberate and make recommendations regarding any other matter delegated to the Committee by the Council. COUNCIL AIRPORT COMMITTEE The Council Airport Committee is composed of three City Council members. The City Manager, or his designee, will provide guidance and assistance as needed. The duties and purpose of the Committee shall be to review, consider and make recommendations to the City Council on: the Airport Business Plan and Airport Master Plan; any airport infrastructure improvement or other major project impacting the airport; the acquisition, review, and consideration of grant funding for the airport; contracts and leases of airport property, including recommending appropriate terms to the City Council; long term financial planning and budgetary issues affecting the airport, and issues raised as a result of interface between citizens, airport tenants, or other interested parties. COUNCIL APPOINTEE PERFORMANCE REVIEW COMMITTEE The Council Appointee Performance Review Committee is composed of three Council Members, with the Director of Human Resources as an ex-officio member. The duties and purpose of the Committee shall be to assist the City Council in performance review of the City Council appointees and to ensure that the appointee’s job descriptions are accurate and properly reflect current job duties in order to make recommendations to the Council to assist the Council in evaluating the job performance of the council appointees. Additionally, the Committee will make recommendations regarding employment agreements, including renewals, of council appointee positions. 55 COMMUNITY PARTNERSHIP COMMITTEE The Hotel Occupancy Tax and Sponsorship Committee is composed of three Council Members. The duties and purpose of the Committee shall be to monitor allocation and use of both the hotel occupancy tax and sponsorship funds, ensuring HOT funds are being used to directly enhance and promote tourism and the hotel/ convention industry, ensuring the sponsorship funds are being used to further a charitable cause, economic or community growth and serve a public purpose in the best interest of the general welfare of the City of Denton, and recommend organizations to receive funding to the City Council. MOBILITY COMMITTEE The Mobility Committee is composed of three Council Members. The duties and purpose of the Committee shall be to review, consider and make recommendations to the City Council regarding any changes to the Mobility Plan, local transportation policy, and any items concerning regional transportation policies and activities. 56 EXTERNAL COUNCIL COMMITTEES COMMUNITY JUSTICE COUNCIL [Inactive as of 06/03/2019] The Community Justice Council is established according to Chapter 76 of the Texas Government Code. That Chapter indicates that a Justice Council has to be established as a prerequisite to establishing a community corrections facility. The Community Justice Council provides continuing policy guidance and direction for the development of criminal justice plans and community correction facilities and programs and conditions of community supervision. Among the members of the Justice Council is a council member of the most populous municipality in the County that the facility will serve. Membership: Because Inactive, unable to determine if this must be an elected official; but historically has been an elected official. DISCOVER DENTON ADVISORY BOARD The Discover Denton Advisory Board (initially established as the Convention and Visitors Bureau Advisory Board) was initiated in 1976 by the Denton Chamber of Commerce to promote events and attractions, provide hospitality education, and ensure a positive experience to Denton visitors. It operates via an agreement between the City of Denton and the Denton Chamber of Commerce. The Advisory Board makes recommendations to the Chamber of Commerce Board of Directors. Membership: Must be three (3) elected officials, at least two of whom must also serve on the Community Partnership Committee. DALLAS REGIONAL MOBILITY COALITION The Dallas Regional Mobility Coalition is a transportation advocacy group made up of cities, counties and transportation agencies in a five-county region (Dallas, Denton, Collin, Rockwall and Ellis) with a primary mission to advance critical mobility projects through advocacy efforts with state and federal elected officials and regional transportation agencies. The DRMC is governed by a 27-member board of directors representing cities, counties and transportation agencies in the greater Dallas area. It consists of seven members, one each from the cities of Carrollton, Garland, Grand Prairie, Irving, Mesquite, Plano and Richardson being either the Mayor or another elected official designated by the City Council; four members, designated by the Mayor of Dallas, being either two or three elected officials from the City of Dallas and one or two community leaders who are non-elected officials; four members, one each from Collin, Dallas, Denton, and Ellis County, being either the County Judge or another elected official designated by the County Judge; elected officials from those cities not represented in either of the first two categories; one community leader (non-elected official) appointed by the Dallas County Judge; four ex-officio members being the Texas Department of Transportation District 18 District Engineer, the Executive Director of the Texas Turnpike Authority, the Executive Director of the Dallas Area Rapid Transit Authority, the Staff Director of the Regional Transportation Council; and one business leader (non-elected official) appointed annually by the Legislative Coalition of the Dallas Area Chambers of Commerce. Membership: Must be the Mayor or another elected official. 57 DENTON COUNTY BEHAVIORAL HEALTH LEADERSHIP TEAM The Denton County Behavioral Health Leadership Team (DCBHLT) is composed of fifteen to thirty-three members, including one to two appointees from Denton City Council. Per the DCBHLT bylaws, “Cities/Towns should identify a council member, senior staff, executive, or community member” to serve on the team. Appointees shall serve at least one two-year term and attend six meetings in the calendar year. The purpose of the Denton County Behavioral Leadership Team (DCBHLT) is to convene as a policy making team tasked with improving the planning, coordination, oversight, and implementation required to create systems change, for behavioral health services in Denton County. Membership: May be an elected official, senior staff, executive, or community member. DENTON COUNTY HOMELESSNESS LEADERSHIP TEAM The Denton County Homelessness Leadership Team (DCHLT) is composed of seventeen to thirty-eight members, including one to two appointees from the City of Denton. Per the DCHLT bylaws, “Cities/Towns should identify a council member, senior staff, executive, or community member” to serve on the team. The DCHLT shall have one to two appointees from Law Enforcement. A member of city staff serves as an ex-officio member. Appointees shall serve at least one two-year term and attend six meetings in the calendar year. The purpose of the Denton County Homelessness Leadership Team (DCHLT) is to convene as a policy making team tasked with improving the planning, coordination, oversight, and implementation required to create systems change, for housing/homelessness initiatives in Denton County. Membership: May be elected official(s), senior staff, executive, or community member. DENTON COUNTY TRANSPORTATION AUTHORITY BOARD (DCTA) The Denton County Transportation Authority is governed by a five (5) voting-member Board which includes a representative from Denton, Lewisville, Highland Village, and two members from Denton County serving two-year terms. Each member city is permitted to have a primary and alternate representative. Denton County is permitted to have two primary and two alternate representatives. The Board adopts the annual operating budget and is responsible for setting policy. Membership: Elected officials may serve as board members; includes an alternate. Board members must have professional experience in the field of transportation, business, government, engineering or law. DENTON COUNTY WORKFORCE SUCCESS LEADERSHIP TEAM The Denton County Workforce Success Leadership Team (DCWSLT) is composed of twenty-seven to forty-two members, including one appointee from the City of Denton. Per the DCWSLT bylaws, “Cities/Towns should identify a council member, senior staff, executive, or community member” to serve on the team. The DCWSLT shall have one to two appointees from Economic Development Departments. Appointees shall serve at least one two-year term and attend twelve meetings in the calendar year. The purpose of the Denton County Workforce Success Leadership Team (DCWSLT) is to convene as a policy making team tasked with improving the planning, coordination, oversight, and implementation required to create systems change for workforce/employment initiatives in Denton County. Membership: May be an elected official, senior staff, executive, or community member 58 LAKE RAY ROBERTS PLANNING AND ZONING COMMISSION The Lake Ray Roberts Planning & Zoning Commission hears requests for zoning changes, special use permits, recreational park permits, sign permits, planned development applications and variances. The Mayor or his/her designee of each city for the territory extraterritorial jurisdiction of which includes any part of the Lake Ray Roberts lake area in the County. Membership: Must be the Mayor NORTH TEXAS COMMISSION The North Texas Commission is a public-private partnership of businesses, cities, counties, chambers of commerce, economic development entities and higher education institutions dedicated to advancing the vibrancy of the North Texas region. The North Texas Commission provides the resources to carry out programs that benefit the entire region and to address regional problems and opportunities. Membership: Prefer it be an elected official (historically the Mayor) otherwise a City employee; can appoint a proxy (historically the City Manager). REGIONAL TRANSPORTATION COUNCIL The North Central Texas Council of Governments has served as the Metropolitan Planning Organization (MPO) for the Dallas-Fort Worth Metropolitan Area. The Regional Transportation Council is the independent transportation policy body of the Metropolitan Planning Organization. The RTC consists of 44 members which include local elected or appointed officials from the metropolitan area and representatives from each of the area's transportation providers. The RTC oversees the metropolitan transportation planning process. Membership: Must be elected officials. TEXAS MUNICIPAL POWER AGENCY The Board of Directors assists in establishing policies, setting regulations, and overseeing the administration and management of the agency as well as approving and auditing the budget. The City of Denton has two representatives serve on the Board of Directors. Membership: Two representatives approved by the City Council who may, but need not necessarily be, members of the City Council and/or the Public Utilities Board. Once appointed by City Council, members may only be removed for cause in accordance with the Denton City Charter, Section 14.16. 59 OTHER COUNCIL COMMITTEES AND BOARDS DEVELOPMENT CODE REVIEW COMMITTEE The Development Code Review Committee is composed of three City Council members plus three Planning and Zoning Commissioners. The duties and purpose of the Committee shall be to review all proposed revisions to the Denton Development Code and make recommendation to the City Council regarding the proposed revisions. Membership: Per City ordinance, the Committee shall be comprised of three City Council Members (plus three Planning and Zoning Commissioners). ECONOMIC DEVELOPMENT PARTNERSHIP BOARD The Economic Development Partnership Board consists of twelve members: (1) two members from City Council at the time of their appointment, (2) two members from the Denton Chamber of Commerce Board of Directors at the time of their appointment who reside or work in the City, (3) two members who will be, or must be currently employed by a top 20 City of Denton ad valorem or sales tax payer and who reside or work in the City, (4) the President of UNT or his/her designee who does not have a city residency requirement; (5) the Chancellor and President of TWU or his/her designee who does not have a city residency requirement; (6) a member with knowledge or experience in general aviation-related matters with no financial interest at the Denton Enterprise Airport and who resides or works in the City, (7) a citizen of Denton with specific knowledge, skills and abilities to assist in the functions of the Economic Development Partnership Board; (8) a member nominated by the Denton Black Chamber of Commerce Board of Directors who resides or works in the City; (9) a member nominated by the Denton Hispanic Chamber of commerce who resides or works in the City. The City Manager, or his designee, the President of the Chamber, and the Superintendent of the Denton Independent School District, will serve as ex-officio members of the Board. The Board provides economic development policy guidance and makes recommendations to the City Council and Chamber of Commerce; reviews, considers and makes recommendations to the City Council regarding marketing and branding for the Denton Enterprise Airport; reviews, considers and makes recommendations to the City Council regarding Denton Enterprise Airport incentive policies as assigned by the City Council or requested by the City Manager; and acts as a recommending body to the City Council for specific airport economic development incentives as assigned by the City Council or requested by the City Manager and permitted by City and State law. Membership: Per City ordinance, two members of the Board shall be City Council Members. DOWNTOWN DENTON TAX INCREMENT FINANCING (TIF) REINVESTMENT ZONE NO. 1 The Downtown Denton Tax Increment Financing (TIF) Reinvestment Zone No. 1 Board is composed of seven members: two City Council members, two are either property owners of property located within the Tax Increment Reinvestment Zone or residents whose primary residence is located within the Tax Increment Reinvestment Zone, two are either business owners of businesses located within the Tax Increment Reinvestment Zone or members of the Denton Chamber of Commerce Board of Directors, and one a qualified voter of the City of Denton. 60 The Board makes recommendations to the City Council concerning the administration of the Zone; prepares and adopts a project plan and Tax Increment Financing Reinvestment Zone financing plan for the Zone and submits the plans to the City Council for approval; prepares, implements and monitors such project and financing plans for the Tax Increment Financing Reinvestment Zone as the City Council considers advisable including the submission of an annual report on the status of the Zone. Membership: Per City ordinance, two members shall be City Council Members. TAX INCREMENT REINVESTMENT ZONE NO. 2 (WESTPARK TIRZ NO. 2) The Tax Increment Reinvestment Zone Number Two Board consists of fourteen members: twelve members of the Economic Development Partnership Board, one member appointed by the governing body of Denton County, and one member appointed by the “developer”, Rayzor Investments, LLP. The Board makes recommendations to the City Council concerning the administration of the Zone; prepare and adopt a project plan and Tax Increment Reinvestment Zone financing plan for the Zone and submit the plans to the City Council for approval; prepare, implement and monitor such project plan and financing plan for the Zone as the Council considers advisable, including the submission of an annual report on the status of the Zone. Membership: Per City ordinance, board membership consists of members of the EDP Board, of which two members shall be City Council Members. 61 COMMITTEES OF INTEREST - COUNCIL COMMITTEE ASSIGNMENTS 2021-2022+ Updated May 25, 2021 COMMITTEES CURRENT MEMBERS (VACANCIES) MEMBER SELECTIONS MAYOR PROPOSED APPOINTMENTS (DISCUSS) Agenda Committee Per City ordinance, must be elected officials Hudspeth Meltzer [City Manager] Hudspeth Meltzer [City Manager] Hudspeth Meltzer [City Manager] Audit/Finance Committee Per City resolution, must be elected officials Meltzer Armintor ______ [Formerly Ryan] Meltzer (optional) Armintor _______________________ Meltzer Armintor Byrd Committee on Community Engagement Per City resolution, must be elected officials Armintor Meltzer ______ [Formerly Johnson] Beck (moderate interest) Meltzer (optional) Armintor Byrd Meltzer Armintor Byrd Committee on the Environment Per City resolution, must be elected officials Meltzer Davis ______ [Formerly Baker] Meltzer Beck (high interest) Armintor Davis Meltzer Davis Beck Council Airport Committee Per City resolution, must be elected officials Meltzer Davis ______ [Formerly Ryan] Meltzer (optional) Davis _______________________ Meltzer Davis Beck Council Appointee Performance Review Committee [Inactive] Per City resolution, must be elected officials None. Address appointments if activated. Maguire None. Address appointments if activated. 1Community Partnership Committee Per City resolution, must be elected officials 1______ [Formerly Baker] 1______ [Formerly Johnson] Davis 1Maguire 1Beck (light interest) 1Byrd 1Armintor Davis 1Magurie 1Byrd Davis Mobility Committee Per City resolution, must be elected officials Armintor Meltzer ______ [Formerly Ryan] Beck (moderate interest) Meltzer Maguire Armintor Meltzer Maguire Byrd LEGEND: 1At least two members who serve on the Community Partnership Committee must also serve on the Discover Denton Advisory Board 2All members of the Economic Development Partnership Board must also serve on the Tax Increment Reinvestment Zone No. 2 Board [Westpark TIRZ No. 2] 62 Council Committee Assignments – Proposed Assignments Page 2 of 4 BOARD & COMMISSION CURRENT MEMBERS (VACANCIES) MEMBER SELECTIONS MAYOR PROPOSED APPOINTMENTS (DISCUSS) Development Code Review Committee (previously an Ad Hoc Committee) Per City ordinance, must be three (3) elected officials (plus three (3) Planning and Zoning Commissioners Davis _____ [Formerly Johnson] _____ [Formerly Ryan] Maguire Beck (high interest) Armintor Byrd Davis Davis *Maguire *Byrd COMMUNITY BOARDS CURRENT MEMBERS (VACANCIES) MEMBER SELECTIONS MAYOR PROPOSED APPOINTMENTS (DISCUSS) 2Economic Development Partnership Board Per City ordinance, must be elected officials 2Davis (Term ends 2022) 2Hudspeth (Term ends 2021) 2Davis 2Hudspeth 2Davis (Term ends Sept. 30, 2022) 2Hudspeth (Hudspeth - Term ends Sept. 30, 2021) Downtown Denton TIF Reinvestment Zone No. 1 Board Per City ordinance, must be elected officials Meltzer (Term ends 2022) _____ (Term ends 2021) [Formerly Baker] Meltzer (optional) Beck (moderate interest) Meltzer (Term ends Aug. 31, 2022) Beck (For the Unexpired term ending Aug. 31, 2021 2Tax Increment Reinvestment Zone No. 2 Board [Westpark TIRZ No. 2] Per City ordinance, must be elected officials 2Davis (Term ends 2022) 2Hudspeth (Term ends 2021) 2Hudspeth 2Davis 2Davis (Term ends Sept. 30, 2022) 2Hudspeth (Hudspeth - Term ends Sept. 30, 2021) LEGEND: 1At least two members who serve on the Community Partnership Committee must also serve on the Discover Denton Advisory Board 2All members of the Economic Development Partnership Board must also serve on the Tax Increment Reinvestment Zone No. 2 Board [Westpark TIRZ No. 2] Terms end August 31, 2021. Need to identify Partial Term ending August 31, 2021 & Full Term ending August 31, 2023. Separate appt. process. Separate appt. process. Need to address only the seat expiring in 2021. Separate appt. process. Separate appt. process. Need to address only the Vacant seat expiring in 2021. Separate appt. process. Need to address only the seat expiring in 2021. Separate appt. process. *Appointments will be for the Unexpired Term ending August 31, 2021. Appointments for all three members for the 2021-2023 Term will be presented with the upcoming appointment process. 63 Council Committee Assignment s – Proposed Assignments - Page 3 of 3 EXTERNAL COMMITTEES CURRENT MEMBERS (VACANCIES) MEMBER SELECTIONS MAYOR PROPOSED APPOINTMENTS (DISCUSS) Dallas Regional Mobility Coalition (DRMC) Must be the Mayor or another elected official Per Dallas Regional Mobility Coalition Bylaws ____ [Formerly Ryan] Hudspeth Maguire Beck (light interest) Hudspeth 1Discover Denton Advisory Board (Previously Convention and Visitors Bureau Advisory Board) Must be 3 elected officials Per Discover Denton Advisory Board – Policy and Guidelines 1____ [Formerly Johnson] 1____ [Formerly Baker] ____ [Formerly Ryan] 1Maguire 1Beck (light interest) 1Byrd Meltzer 1Armintor 1Maguire 1Byrd Beck Denton County Transportation Authority (DCTA) May be elected official(s) Per Denton County Transportation Authority Bylaws Chris Watts _____ (Alternate) [Formerly Ryan] [DCTA reports actual terms end November 12, 2021.] Maguire ______________ (Alternate) Chris Watts City Manager (Alternate) [DCTA reports actual terms end November 12, 2021.] Lake Ray Roberts P&Z Commission Must be the Mayor Per Local Government Code, Title 7, Subtitle B, Chapter 31, Subchapter F Hudspeth (Term expires June 3, 2021) Hudspeth Hudspeth (New Term will expire Jan. 31, 2023) North Texas Commission (NTC) Prefer it be an elected official (historically the Mayor) otherwise a City employee; can appoint a proxy (historically the city manager) Per North Texas Commission Bylaws Hudspeth (City Manager – Proxy) Hudspeth (City Manager – Proxy) Hudspeth (City Manager – Proxy) Regional Transportation Council (RTC) Must be elected officials Per Regional Transportation Council Bylaws ____________ [Formerly Ryan; Term ends June 2022] ____________ (Alternate) [Formerly Briggs; Term expires June 2022] Hudspeth Maguire Beck (moderate interest) _______ (Alternate) Maguire Hudspeth (Alternate) (Both for the Unexpired Terms ending June 30, 2022) Texas Municipal Power Agency (TMPA) Not required to be an elected official; historically second member from Public Utilities Board, but not required to be either Per VATCS, Article 1435a and City Ordinance Chris Watts (Term expires July 18, 2021) Bill Cheek, Jr./Alternate (PUB Member; Term expires July 18, 2021) Armintor __________ (Alternate) NOTE: Chris Watts communicated interest to continue on TMPA. Chris Watts (Term expires July 18, 2021; Chris Watts has indicated desire to be reappointed) Bill Cheek, Jr./Alternate (PUB Member; Term expires July 18, 2021) LEGEND: 1At least two members who serve on the Community Partnership Committee must also serve on the Discover Denton Advisory Board 2All members of the Economic Development Partnership Board must also serve on the Tax Increment Reinvestment Zone No. 2 Board [Westpark TIRZ No. 2] Separate appt. process Separate appt. process Separate appt. process Separate appt. process Separate appt. process Separate appt. process. Need to address only the seat expiring in 2021. Separate appt. process Separate appt. process. Formal appointment for new term scheduled for June 8, 2021 Council Meeting. 64 Council Committee Assignments – Proposed Assignments Page 4 of 4 LEADERSHIP TEAMS CURRENT MEMBERS (VACANCIES) MEMBER SELECTIONS MAYOR PROPOSED APPOINTMENTS (DISCUSS) Denton County Behavioral Health Leadership Team May be elected official, senior staff, executive, or community member Per Denton County Behavioral Health Leadership Team Bylaws Hudspeth Hudspeth Armintor Byrd Hudspeth (For a term to expire June 30, 2022] Denton County Homelessness Leadership Team May be elected official(s), senior staff, executive, or community member Per Denton County Homelessness Leadership Team Bylaws Hudspeth Staff Member/City Mgr.’s Office Hudspeth Armintor Byrd Hudspeth City Manager (Both for terms to expire June 30, 2022] Denton County Workforce Success Leadership Team May be elected official, senior staff, executive, or community member Per Denton County Workforce Success Leadership Team Bylaws ______ [Formerly Ryan] (Term expires June 30, 2021] Meltzer Meltzer (For a term to expire June 30, 2022] OTHER CURRENT MEMBERS (VACANCIES) MEMBER SELECTIONS MAYOR PROPOSED APPOINTMENTS (DISCUSS) Community Justice Council [Inactive as of 06/03/2019] Once activated, will return to City Council Pending research on legislation as currently in None. Address appointment if activated. Byrd None. Address appointment if activated. 65 City Council Committees Appointment Process Rosa Rios City Secretary May 25, 2021 File ID 21-866 66 Objective File ID 21-866 •Review City Council Committee responsibilities and general purview •Discuss the relationship of individual Committees to the full City Council •Review the list of current City Council Committees •Discuss the City Council Committee appointment process for 2021-2022 File ID 21-866 2 67 File ID 21-866 •Committee appointments are reviewed annually •Committee members serve at the pleasure of the City Council until successors are appointed by the Mayor and approved by the City Council •Individual City Council Members are asked to identify which specific Committees they wish to join •ISR 2021-028 included as of the May 7, 2021 Friday Report 2021 Committee Appointment Process File ID 21-866 3 68 Oversight and Responsibilities File ID 21-866 •Section 2-29 of the City of Denton Code of Ordinances addresses City Council Rules of Procedure o 2-29(h)(1) states, “The council may, by resolution and as the need arises, authorize the appointment of council committees.Any committee so created shall cease to exist when abolished by resolution of the council.Council committees shall comply with the Texas Open Meetings Act.” o Council Committees typically consist of three City Council Members Committee membership is determined by the Mayor and approved by the City Council Historically, the Mayor has allowed each Council Member to request those committees they wish to serve on Presiding Officer (Chair) of the Committee is chosen annually by the Committee File ID 21-866 4 69 Relationship of Individual Committees to Full City Council File ID 21-866 •Council Committees vet projects and potential policy recommendations prior to information being brought before full City Council o Council Policy remains that any policy item or initiative that would require over 2 hours of staff time must proceed through the Council Request Process •Committees do not speak on behalf of the entire City Council or the community •Endorsement of an issue or policy matter from an individual Committee does not result in an automatic endorsement from the full City Council File ID 21-866 5 70 Current City Council Committees File ID 21-866 Standing Committees 1.Agenda Committee 2.Audit/Finance Committee 3.Committee on Community Engagement 4.Committee on the Environment 5.Council Airport Committee 6.Council Appointee Performance Review Committee •[Inactive; no action taken during 2020 appointment process] 7.Community Partnership Committee1 [Must also serve on the Discover Denton Advisory Board] •Currently no quorum exists so unable to meet 8.Mobility Committee File ID 21-866 6 71 External Committee Appointments File ID 21-866 External Committees 1.Community Justice Council (1 member) 2.Discover Denton Advisory Board1 (3 members) [Must also serve on the Community Partnership Committee] 3.Dallas Regional Mobility Coalition (1 member) 4.Denton County Behavioral Health Leadership Team (1 member preferred) 5.Denton County Homelessness Leadership Team (1 member preferred) 6.Denton County Transportation Authority (1 member, 1 alternate –option for positions to be elected officials) 7.Denton County Workforce Success Leadership Team (1 member preferred) 8.Lake Ray Roberts P&Z Commission (1 member) 9.North Texas Commission (1 member) 10.Regional Transportation Council (1 member, 1 alternate) 11.Texas Municipal Power Agency (2 members) [one historically being a PUB member] 7 72 Other Appointments File ID 21-866 Board & Commission 1.Development Code Review Committee (3 Members of the City Council and 3 Planning and Zoning Commission Members) NOTE: Was previously an Ad Hoc Committee until April 6, 2021 (adoption of Resolution 21-647) Community Boards –Separate appointment process presented to City Council for formal appointment through Economic Development Department 1.Economic Development Partnership Board2 (2 members)[Must also serve on the Tax Increment Reinvestment Zone No. 2 Board] •One seat expires September 30, 2021 2.Downtown TIF No. 1 Board (2 members) •One seat expires August 31, 2021 3.Tax Increment Reinvestment Zone No. 2 Board2 (2 members)[Must also serve on the Economic Development Partnership Board] •One seat expires September 30, 2021 File ID 21-866 8 73 Special Appointment Considerations File ID 21-866 Combined Service 1.Development Code Review Committee 2.Community Partnership Committee 1At least two members who serve on the Community Partnership Committee must also serve on the Discover Denton Advisory Board ------------------------------------------------------------------------------------------------------------------------- 1.Economic Development Partnership Board (2 members) 2.TIRZ No. 2 Board (2 members) 2All members of the Economic Development Partnership Board must also serve on the Tax Increment Reinvestment Zone No. 2 Board File ID 21-866 9 74 Next Steps File ID 21-866 •Discuss Mayor’s proposed assignments •As presented •With changes/adjustments as determined during discussion •Approve City Council Committee appointments during the Special Called Meeting to follow •Can schedule additional discussions/formal action at other meeting if need is determined 10 75 Committees –Existing Assignments, Vacancies, COIs, and Proposed Assignments File ID 21-866 Armintor File ID 21-866 11 76 File ID 21-866 Committees –Existing Assignments, Vacancies, COIs, and Proposed Assignments –Cont’d File ID 21-866 12 77 File ID 21-866 Committees –Existing Assignments, Vacancies, COIs, and Proposed Assignments –Cont’d 13 78 Questions? 14 File ID 21-866 79 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 21-442,Version:1 AGENDA CAPTION Receive a report, hold a discussion, and give staff direction on a policy regarding qualifying expenses for tax exemption of historic sites. City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™80 City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Department of Development Services ICM: Sara Hensley DATE: May 25, 2021 SUBJECT Receive a report, hold a discussion, and give staff direction on a policy regarding qualifying expenses for tax exemption of historic sites. BACKGROUND On May 21, 2019, ID 19-1094 was brought forth to the City Council. Staff stated that they would prepare a future work session item to discuss creating a policy to formalize guidelines beyond the list of improvements provided in Exhibit 4. Presently, the City does not have a defined standard of “qualifying expenses” for improvements and/or restorations to designated historic sites that are considered for a partial tax exemption, in accordance with Chapter 10, Articles VI and VII of the Denton Municipal Code of Ordinances. Articles VI and VII of the Denton Municipal Code of Ordinances also do not have an established deadline of submission. Tax exemption properties that are set to expire are informed in advance of April 30th of their expiration year by the Historic Preservation Officer. Additional notice is not provided. Lastly, the partial tax exemption is only considered for designated historic sites – local historic landmarks and contributing historic district properties – and historically significant sites in Denton’s downtown commercial district. The expansion of the current tax exemption lends itself as an additional incentive to the community to preserve Denton’s unique built fabric and history. CITY COUNCIL DIRECTION 1. Policy direction from City Council regarding eligible permanent improvements and/or restoration of historic properties 2. Establishment of an April 30th deadline to submit tax exemption applications to the Denton Central Appraisal District 3. Expansion of the Current Historic Tax Exemption Ordinance a. Owner Occupied Residences in New Historic Districts b. Heritage Properties c. Neighborhood Stabilization Areas PREVIOUS ACTION/REVIEW • October 20, 1987: City Council passed Ordinance 87-189 • April 21, 1998: City Council passed Ordinance 98-110 • November 17, 2009: City Council passed Ordinance 2009-290 City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 81 • ID 19-1094: City Council informed that Staff would be preparing a future work session to discuss creating a policy to formalize list of improvements provided in Exhibit 4 EXHIBITS: 1. Agenda Information Sheet 2. Texas Tax Code Section 11.24 3. Denton Code of Ordinances Articles VI and VII Historic Tax Exemption 4. Application for Historic Landmark Tax Exemption Authorization 5. Presentation 6. Preliminary Public Input Respectfully submitted: Richard Cannone, AICP Deputy Director Development Services Planning Director Prepared By: Cameron Robertson, AICP Historic Preservation Officer 82 Sec. 11.24. HISTORIC SITES. (a) The governing body of a taxing unit by official action of the body adopted in the manner required by law for official actions may exempt from taxation part or all of the assessed value of a structure or archeological site and the land necessary for access to and use of the structure or archeological site, if the structure or archeological site is: (1) designated as a Recorded Texas Historic Landmark under Chapter 442, Government Code, or a state archeological landmark under Chapter 191, Natural Resources Code, by the Texas Historical Commission; or (2) designated as a historically or archeologically significant site in need of tax relief to encourage its preservation pursuant to an ordinance or other law adopted by the governing body of the taxing unit. (b) The governing body of a taxing unit may not repeal or reduce the amount of an exemption granted under Subsection (a) for a property that otherwise qualifies for the exemption unless: (1) the owner of the property consents to the repeal or reduction; or (2) the taxing unit provides written notice of the repeal or reduction to the owner not later than five years before the date the governing body repeals or reduces the exemption. Acts 1979, 66th Leg., p. 2243, ch. 841, Sec. 1, eff. Jan. 1, 1980. Amended by Acts 1995, 74th Leg., ch. 109, Sec. 21, eff. Aug. 30, 1995. Amended by: Acts 2019, 86th Leg., R.S., Ch. 944 (S.B. 2), Sec. 25, eff. January 1, 2020. 83 Subpart A - CODE OF ORDINANCES Chapter 10 - FINANCE AND TAXATION ARTICLE VI. TAX EXEMPTION FOR DESIGNATED HISTORIC SITES Denton, Texas, Code of Ordinances Created: 2021-05-11 15:24:56 [EST] (Supp. No. 32, Update 1) Page 1 of 7 ARTICLE VI. TAX EXEMPTION FOR DESIGNATED HISTORIC SITES1 Sec. 10-126. Purpose. This article is enacted for the purpose of encouraging the preservation of individually designated historic sites by providing for a reduction of the city's property tax to qualifying properties. (Ord. No. 87-189, § I(22-50), 10-20-87) Sec. 10-127. Definition. As used in this article, "designated historic site" means any structure or archeological site and the land necessary for access to and use of the structure or archeological site, if the structure or archeological site is designated as a historically or archeologically significant site in need of tax relief to encourage its preservation pursuant to an ordinance or other law adopted by the governing body of the unit. (Ord. No. 87-189, § I(22-51), 10-20-87; Ord. No. 2009-290, § 1, 11-17-09) Cross reference(s)—Definitions and rules of construction generally, § 1-2Cross reference(s)—. Sec. 10-128. Partial tax exemption of designated historic sites. (a) Any property which was a designated historic site on the first day of January for any year beginning with 1989 and extending to and including 2008, shall be exempt from real property ad valorem taxes levied by the City of Denton to the extent of fifty (50) percent of the assessed value of the designated historic site. The exemption provided for herein shall apply for a maximum of fifteen (15) successive years, beginning with the first year the property is entitled to the exemption during the specified years and continuing and including each and every year of the fourteen (14) successive years thereafter during which the property is a designated historic site on the first day of January of those fourteen (14) years. (b) Any property which was a designated historic site on the first day of January 2009 shall be exempt from real property ad valorem taxes levied by the City of Denton for tax year 2009 to the extent of fifty (50) percent of the assessed value of the designated historic site. (c) Any property which is designated a historic site after the first day of January 2009 may be exempt from real property ad valorem taxes levied by the City of Denton to the extent of fifty (50) percent of the assessed value of the designated historic site if the property owner demonstrates to city qualifying expenses of ten thousand dollars ($10,000.00) or more for permanent improvements and/or for restoration of said property. The qualifying expenses are limited to two (2) years prior to designation as a historic site. The historical landmark commission must determine whether the qualifying expenses result in a permanent improvement and/or restoration of said property as a condition of receiving the exemption. The exemption provided for herein shall apply for a maximum of ten (10) successive years, beginning with the first year the property is entitled to the exemption during the specified years and continuing and including each and every year of the 1Cross reference(s)—Historic land preservation and historic districts, § 35-211 et seq. 84 Created: 2021-05-11 15:24:56 [EST] (Supp. No. 32, Update 1) Page 2 of 7 nine (9) successive years thereafter during which the property is a designated historic site on the first day of January of those nine (9) successive years. (d) Additional ten (10) year exemptions thereafter will require the property owner to demonstrate to city qualifying expenses of ten thousand dollars ($10,000.00) or more, beyond those demonstrated for the initial or subsequent exemption, for permanent improvements and/or for restoration of said property. The historical landmark commission must determine whether the qualifying expenses result in a permanent improvement and/or restoration of said property as a condition of receiving the exemption. (e) Upon designation as a historic site eligible for a tax exemption or reauthorization of a tax exemption, the director of planning and development shall provide the property owner a certified ordinance or other document that authorizes the tax exemption. To receive the exemption provided herein, a person claiming the exemption must apply for the exemption with the chief appraiser of the Denton Central Appraisal District as provided by state law. Immediately after issuance of a certificate of demolition or removal, the director of planning and development shall notify the chief appraiser of the Denton Central Appraisal District. (Ord. No. 87-189, § I(22-52), 10-20-87; Ord. No. 98-110, § I, 4-21-98; Ord. No. 2009-290, § 1, 11-17-09) Sec. 10-129. Recapture of taxes. (a) If any designated historic site is, within twenty-five (25) years from any year in which the property received a tax exemption under this article: (1) Removed as a designated historic site by ordinance, upon the request of the owner; or (2) Removed as a designated historic site by ordinance after it has been determined to have been totally or partially destroyed or altered by the willful or negligent act of the owner or the owner's agent, in violation of article V of chapter 35 of this Code; an additional tax is imposed, on the effective date of the ordinance providing for its removal as a designated historic site, equal to the difference between the city taxes imposed for each year an exemption was made under this article, and the taxes that would have been imposed had the exemption not been made, plus interest on the additional amount at an annual rate of seven (7) percent, calculated from the dates on which the additional taxes would have become due if not exempted. (b) If, in providing for the removal of a property as a designated historic site because of its being partially or totally destroyed or altered, as provided in subsection (a)(2) of this section, the city council, after receiving the determination of the historic landmark commission and planning and zoning commission, determines, after public hearing for which the owner shall be given notice, that the property was totally or partially destroyed or altered by the willful or negligent act of the owner or his representative, in violation of article V of chapter 35, the additional tax provided for in this section shall be imposed. (c) A tax lien attaches to the property on the date it is removed as a designated historic site to secure payment of the additional tax and interest imposed by this section. The lien exists in favor of the city for which the additional tax is imposed. (d) The city tax assessor and collector shall notify the chief appraiser of the additional tax imposed and shall prepare and deliver a statement to the owner for the additional taxes plus interest as soon as practicable after removal of the property as a designated historic site. The taxes and interest are due and become delinquent and incur penalties and interest as provided by law for ad valorem taxes imposed by the city if not paid before February 1 of the year following the year in which the additional tax is imposed. (Ord. No. 87-189, § I(22-53), 10-20-87) 85 Subpart A - CODE OF ORDINANCES Chapter 10 - FINANCE AND TAXATION ARTICLE VII. TAX EXEMPTION FOR HISTORICALLY SIGNIFICANT SITES Denton, Texas, Code of Ordinances Created: 2021-05-11 15:24:56 [EST] (Supp. No. 32, Update 1) Page 3 of 7 ARTICLE VII. TAX EXEMPTION FOR HISTORICALLY SIGNIFICANT SITES Sec. 10-130. Granting of partial exemption. Any property which is designated as a "historically significant site" pursuant to the terms of this article and which is substantially rehabilitated as provided herein shall have abated any increase in the assessed value for ad valorem tax purposes in excess of the assessed value of the property for the tax year immediately prior to the renovation, for a period of ten (10) years following the completion of the renovation. Only the historic structure and the land reasonably necessary for access to, and use of, the structure shall be subject to the tax abatement. The abatement period shall begin on the first day of the tax year following completion of the rehabilitation project. (Ord. No. 98-116, § I, 4-28-98) Sec. 10-131. Designation of historically significant sites. For the purpose of this article, all structures, residential and commercial, fifty (50) years old or older which are within the boundaries of the downtown commercial district as indicated on attachment "A," which is attached hereto [in Ord. No. 98-116] and made a part hereof for all purposes, are designated as historically significant sites in need of tax relief to encourage their preservation. (Ord. No. 98-116, § I, 4-28-98) Sec. 10-132. Eligibility. To be eligible for a property tax abatement, a property must meet the following requirements: (1) The property must meet the requirements for designation as a historically significant site in need of tax relief as defined in section 10-131 of this article. (2) The property must meet all requirements for application, certification and verification as set forth below. (Ord. No. 98-116, § I, 4-28-98) Sec. 10-133. Application process. Applications for a historically significant site tax exemption pursuant to this article are to be filed with the preservation officer (or such other city official designated by the city manager) of the City of Denton, who shall be the agent for the City of Denton for the purposes of administering this article. Each application must be signed by the owner of the property, be acknowledged before a notary public and shall: (1) State the legal description of the property proposed for certification; (2) Include an affidavit by the owner stating the structure is fifty (50) years old or older and is located within the Downtown Commercial District of the City of Denton, commercial buildings within historic districts, historic conservation districts or any commercial building that the city council deems historic or in need of preservation; 86 Created: 2021-05-11 15:24:56 [EST] (Supp. No. 32, Update 1) Page 4 of 7 (3) Include detailed plans and/or descriptions of the proposed work demonstrating rehabilitation is in accordance with the current property appearance guidelines adopted by ordinance of the city council; (4) Include cost estimates indicating the repair or rehabilitation of the exterior of the building will equal or exceed twenty-five (25) percent of the most recent assessed ad valorem tax valuation of the structure or twenty thousand dollars ($20,000.00), whichever is less. Roof repair or replacement may comprise no more than fifty (50) percent of the minimum threshold amount necessary to qualify for tax abatement; (5) Include a projection of the estimated construction time and predicted completion date of the historic repair or rehabilitation; (6) Authorize the members of the historic landmark commission, the city manager or designee, and elected officials to visit and inspect the property proposed for certification to verify that it is in need of substantial repair or rehabilitation and to verify repair or rehabilitation; (7) Sign an agreement to submit an application for a certificate of appropriateness to determine compliance with property appearance guidelines for any exterior modifications to the property for the duration of the period during which the tax abatement is in effect; (8) Include a tax certificate showing all taxes due upon the property have been paid; and (9) Provide any additional information to the historic landmark commission which the owner or committee deems relevant or useful, such as the history of the structure, access to the structure by the public, or any proposed changes in use of the structure. Each application shall contain sufficient documentation confirming or supporting the information submitted therein. (Ord. No. 98-116, § I, 4-28-98; Ord. No. 2014-125, § 1, 5-6-14) Sec. 10-134. Certification process. Upon receipt of the sworn application, the preservation officer shall forward the application to the historic landmark commission for review. The historic landmark commission shall review the proposed rehabilitation for conformance with the current version of the property appearance guidelines. The historic landmark commission shall recommend to the city council whether the structure shall be eligible for the tax exemption. The commission may recommend approval of the application as submitted, approval with conditions, or denial. The historic landmark commission shall review the application within forty-five (45) days of its submittal to the preservation officer. The written recommendation of the historic landmark commission shall be delivered to the city manager no more than ten (10) days after the commission's decision is rendered. If the decision of the commission is for approval with conditions, and the applicant concurs with such conditions, the above ten (10) days for delivery will not commence until the application is amended to comply with the conditions approved by the commission. Upon receipt of the recommendation of the historic landmark commission, the city manager shall, within a reasonable time, place the matter upon the city council agenda for determination of eligibility. In determining eligibility, the city council shall first determine that all the requirements of this article have been met and that only the historic structure and the land reasonably necessary for access to, and use thereof, is to be provided favorable tax relief as provided in section 10-130 of this article. If eligibility is determined, the council shall authorize the city manager to execute a tax exemption certificate upon verification of completion of repairs or renovation. If required by the Denton County Appraisal District, the city manager or designee shall provide annually a list of structures eligible for tax exemption under this article. (Ord. No. 98-116, § I, 4-28-98) 87 Created: 2021-05-11 15:24:56 [EST] (Supp. No. 32, Update 1) Page 5 of 7 Sec. 10-135. Verification process. Upon completion of the repair or rehabilitation, the certified applicant shall submit to the preservation officer a sworn statement of completion acknowledging that the structure has been substantially repaired or rehabilitated in accordance with the plan approved by the city council. Applicant must also present documentation verifying that the cost of repair or rehabilitation meets or exceeds the amounts established in section 10-133 of this article. The preservation officer or designee, upon receipt of the sworn statement of completion, but no later than thirty (30) days thereafter, shall make an investigation of the property and shall approve or disapprove the fact that the property has been completed as required for certification. If the repair or renovation deviates in any way from the construction plan approved by council, the historic landmark commission shall determine whether or not the modifications are in accordance with the property appearance guidelines. If verification of completion shall be deemed unfavorable, the certified applicant shall be required to complete or correct the repair or rehabilitation in order to obtain the tax exemption provided by this article or appeal the commission's decision to the city council. When the verification of completion receives a favorable review by the preservation officer, or the commission or the council, whichever is applicable, the preservation officer shall notify the city manager in writing of compliance. Thereafter, the city manager shall execute a tax exemption certificate and forward same to the Denton County Appraisal District. (Ord. No. 98-116, § I, 4-28-98) Sec. 10-136. Property appearance guidelines. The property appearance guidelines on file in the office of the preservation officer, the planning department and such other office as the city manager may designate, are hereby approved and incorporated herein and made a part hereof for all purposes. The property appearance guidelines shall be periodically reviewed by the historical landmark commission and desired changes by the commission to such guidelines shall be recommended to the city council. Any changes to the property appearance guidelines shall not be effective until such changes are approved by the city council. The city council may direct the city manager or the preservation officer to propose certain changes to the property appearance guidelines but such changes shall not be adopted by city council without a recommendation from the historic landmark commission. (Ord. No. 98-116, § I, 4-28-98; Ord. No. 2014-125, § 2, 5-6-14) Sec. 10-137. Alteration or destruction. (a) During the exemption period, if the preservation officer or a member of the historic landmark commission has reason to believe that an exempted structure has been altered or totally or partially destroyed by the willful act or negligence of the owner or his representative, the preservation officer shall immediately cause the matter to be scheduled for the earliest possible consideration by the city council. If, after giving notice and hearing to the owner, the city council determines that the exempted structure has been totally or partially destroyed or altered by the willful act or negligence of the owner or his representative, the owner shall immediately repay to the city all of the tax revenues that were not paid because of the exemption plus interest calculated at an annual rate of seven (7) percent. (b) Where an exempted structure is totally or partially destroyed or altered by other than the willful act or negligence of the owner or his representative, the owner shall, whenever feasible, request a building permit to reconstruct the historically significant site in accordance with plans and specifications (plans) that comply with the property appearance guidelines and building and development codes of the city. The cost of renovation is hereby deemed feasible when destruction or alteration is fifty (50) percent or less of the assessed ad valorem tax value of the building without deduction for the abatement hereunder. The plans for 88 Created: 2021-05-11 15:24:56 [EST] (Supp. No. 32, Update 1) Page 6 of 7 the structure must be approved by the preservation officer or designee. If there is any question that the plans do not comply with the property appearance guidelines the historic landmark commission shall determine if such plans are in compliance with such guidelines, A decision by the commission, denying the issuance of the building permit for failure of the plans to comply with the property appearance guidelines, may be appealed by the owner to the city council. If rebuilding activities are not completed within one (1) year of the damage to the structure, the repayment of the tax revenues not paid because of the exemption shall be required as set forth in subsection (a) above, unless city council grants an extension for such permits. (c) If the owner of a damaged historic structure exempted under this article applies for a demolition permit, the building official shall follow the regulations contained in section 35-220 (Demolition or removal of historic landmarks) of the zoning chapter, as amended, in processing such permit. In cases where a demolition permit is issued by the city because renovation is not feasible, repayment of tax revenue is not required. (d) If the owner of a historic structure which is damaged by a willful or negligent act of the owner or his representative has such structure demolished or such structure is not repaired within one (1) year of the damage, such owner will not be eligible for future abatement unless a revised application for such structure is approved by the city council. (Ord. No. 98-116, § I, 4-28-98) Sec. 10-138. Transferability to future owner(s). If the tax exemption certificate executed by the city manager per section 10-135 is timely recorded by the owner of the structure in the deed records of Denton County with the approved application, the tax exemption authorized above shall constitute a covenant running with the land for the ten-year period provided in this article. Should the owner of the structure ever cease to comply with the terms of the application and of this article during such ten-year period, this abatement may be revoked for the years remaining within such ten-year period, upon the finding of such incompliance by the city council, after giving notice and hearing to the owner. The city manager or his designee shall advise the chief appraiser of the Denton County Appraisal District of the revocation of the abatement and shall file an appropriate document in the deed records of Denton County revoking the tax exemption. (Ord. No. 98-116, § I, 4-28-98) Sec. 10-139. Authority of chief appraiser. The chief appraiser for the county appraisal district shall determine that portion of land which is reasonably necessary for access to and use of historic structures for which applications for exemptions are granted and shall assess for taxation all such excess land in the same equal and uniform manner as all other taxable properties in the city. It shall be in the discretion of the chief appraiser as to whether or not owners of historically significant structures under this article must file an application with such appraiser's office annually to obtain the exemption granted above or if one (1) application can be executed by the owner of the historically significant structure to obtain the ten-year historic exemption. (Ord. No. 98-116, § I, 4-28-98) Sec. 10-140. Use in conjunction with other tax incentives. At the discretion of city council, the tax abatement provided in this article may be used in conjunction with tax abatements for historic landmark zoning as provided in article VI chapter 10 of the Denton City Code. The 89 Created: 2021-05-11 15:24:56 [EST] (Supp. No. 32, Update 1) Page 7 of 7 applicant must meet all requirements for each tax abatement separately in order to be considered for both abatements. This tax abatement may be used in conjunction with other types of abatements that may be developed in the future, unless otherwise prohibited by statute or by ordinance. (Ord. No. 98-116, § I, 4-28-98) Sec. 10-141. Definitions. Should the exact meaning of terms contained in this article be in dispute, the meaning of such terms as utilized in the interpretation or definition of such terms in article V "Historic Landmark Preservation and Historic Districts" of chapter 35 (zoning) of the City Code, as amended, or in this chapter shall control. (Ord. No. 98-116, § I, 4-28-98) 90 Development Services 401 N. Elm St., Denton, TX 76201  (940) 349-8541 CITY OF DENTON HISTORIC LANDMARK COMMISSION APPLICATION FOR HISTORIC LANDMARK TAX EXEMPTION AUTHORIZATION Name of owner Address of owner Telephone/Email This application is for property located at: List the completed repairs or maintenance work. Attach all receipts. (Please note all receipts for work completed must total a minimum of $10,000 in order to be considered for the Historic Landmark City Tax Exemption.) Signature of Property Owner Date Return to: Planning Department, 401 N Elm Street, Denton, Texas, 76201 Phone: 940-349-8541 Fax: 940-349-7707 Email: Cameron.Robertson@cityofdenton.com 91 Development Services 401 N. Elm St., Denton, TX 76201  (940) 349-8541 Historic Landmark Tax Exemption Standards Permanent improvement and/or for restoration of said property Including but not limited to the maintenance and repair of the following items: Exterior • Protective treatment (paint, protective coverings or treatment, siding, and metal cladding) • Structural members • Foundations • Exterior walls • Roofs and drainage (roof drains, gutters, and downspouts) Decorative features (cornice, corbels, trim, and decorative features) Overhang extensions (canopies, and metal awnings) • Stairways, decks, porches, or balconies • Chimneys • Handrails and guards • Window, skylight, doors, and door frames Interior • Structural member • Interior surfaces (paint and plaster) • Stairs and walking surfaces • Handrails and guards • Interior doors General • Plumbing (re-piping, water heater, and sanitary sewer) • Mechanical (furnace, heaters, and ventilation) • Electrical (service and re-wiring) • Fire safety (smoke detectors, carbon monoxide detectors) 92 Da Historic Preservation Tax Exemption Ordinance 1 May 25, 2021 City Council Meeting 1 File ID: 21-442 93 Policy Direction from City Council File ID: 21-4425/25/2021 2 1.Policy direction from City Council regarding eligibility: Permanent improvements and/or restoration of historic properties 2.Changes to Ordinance: Submittal Deadline 3.Policy direction regarding the expansion of the program for: Owner Occupied Residences in New Historic Districts Heritage Properties Neighborhood Stabilization Areas Heritage Properties At least 50 years old, but do not qualify for or are not designated a local historic landmark property. These properties hold historical significance in Denton and have had all those facades visible from the right-of-way substantially restored, rehabilitated, or preserved. Neighborhood Stabilization Areas Promote rehabilitation, restoration, and revitalization in areas that retain the historic character of Denton. 94 Current Tax Exemption Properties 3 Expired 2015-2017 (5 properties) Expires 2021 (12 properties) Expires 2023-2026 (10 properties) Expires 2027-2031 (8 properties) TOTAL: 30 properties File ID: 21-4425/25/2021 95 4 Current Tax Exemption Property Examples 305 Mounts Avenue 1108 W Congress Street 607 East College Street Photos/Map Source: Google 123 N Elm Street 1 2 3 4 1 2 3 4 File ID: 21-4425/25/2021 96 Policy Direction File ID: 21-4425/25/2021 5 Current Regulations A.Code of Ordinances 1.HLC approves the improvements and/or restoration 1.Current issue is that there is no defined standard 2.City Council authorizes the partial tax exemption B.Texas Tax Code Section 11.24 1.Designated as a historically or archeologically significant site in need of tax relief to encourage its preservation pursuant to an ordinance or other law adopted by the governing body of the taxing unit Discussion Should there be a defined standard? 97 “Historic Landmark Tax Exemption Standards” 6 IMPROVEMENT and/or RESTORATION of multiple facets of a property that includes, but is not limited to the maintenance and repair of the following: EXTERIOR*INTERIOR GENERAL Protective Treatment Structural Members Plumbing Structural Members Interior Surfaces (Paint and Plaster)Mechanical Foundations Stairs and Walking Surfaces Electrical Exterior Walls Handrails and Guards Fire Safety Decorative Features Interior Doors Overhang Extensions * Also includes: Roofs and drainage, chimneys, handrails and guards, architectural features (e.g. porches, door frames, etc.) File ID: 21-4425/25/2021 98 Best Practice Cities 7 Some of the cities whose historic tax exemption standards and guidelines were reviewed Austin Dallas Houston San Antonio Grapevine El Paso Plano McAllen Fort Worth McKinney Brownsville Waco File ID: 21-4425/25/2021 99 Staff Recommendation File ID: 21-4425/25/2021 8 Staff Recommends •Establishing deadline to coincide with DCAD •DCAD: General deadline for filing an exemption application is before May 1 •Defining what is an improvement and/or restoration to a historic property •Establish defined standards that serve to extend the life of the building LOCAL TAX EXEMPTION STANDARDS •All Structural Components •Foundation Work •Exterior Envelope of the Building(s) Structure •Siding Work •Door & Windows •Roof Work •Decorative Detailing (ex. Trim and Cornice) •Interior work •Restoration of original features •Molding •Detailing (Handrails, Hardware, Lighting, etc.) •Cabinets •Wall & Ceiling •Flooring •Electrical •Plumbing •HVAC system work 100 City of San Antonio, Texas Best Practices -Owner Occupied Residences in New Historic District 9File ID: 21-4425/25/2021 •All residential properties occupied by the property owner in newly designated local historic districts at the time of designation receive a 20% exemption on their City property taxes for 10 years. The exemption can be extended for an additional five (5) years for a total of 15 years for owners who remain in the same house for the entire period of the exemption. Photos Source: Google Proposed Buena Vista Historic District 101 Where could this additional incentive be utilized in Denton? 10File ID: 21-4425/25/2021 •Owner Occupied Residences in New Historic Districts •Idiots Hill Neighborhood •SE Denton Neighborhood •Southridge Neighborhood 102 City of McAllen, Texas Best Practices -Heritage Properties 11File ID: 21-4425/25/2021 •Heritage Properties •At least 50 years old, but do not qualify for or is not designated a landmark property, but have had all of the facade facing any street it abuts substantially restored, rehabilitated, or preserved; or •Is less than 50 years old and has been substantially restored, rehabilitated, or preserved. •Owner may apply for an ad valorem tax exemption for ten (10) years equal to 100 percent of any increase in the assessed value of the qualified building and/or structure and land at the time the designation application was filed or at the time the property was designated. Map Source: Google 103 Where could this additional incentive be utilized in Denton? 12File ID: 21-4425/25/2021 •Heritage Properties •Properties throughout Denton that are at least 50 years old, that do not qualify for our local Historic Landmark Designation or are not designated a local Historic Landmark. These properties hold historical significance in Denton and have had all those facades visible from the right-of-way substantially restored, rehabilitated, or preserved. Photos Source: Google Peoples Funeral Home at 1122 E Mulberry Street1007 Oakland Street 104 City of Austin, Texas Best Practices –Neighborhood Stabilization Areas 13File ID: 21-4425/25/2021 Property Type Minimum Expenditure* Duration of Abatement How Often May Abatement be Granted Homestead in Revitalization Area 10% of pre- rehabilitation value of structure 10 years Every 15 years Income-producing in Revitalization Area 30% of pre- rehabilitation value of structure 10 years Every 15 years * At least 5% of the pre-rehabilitation value of the structure (“the improvement”) must be spent on exterior work. The pre-rehabilitation value is determined by the most recent appraisal value of the property by the Travis Central Appraisal District before an abatement application is submitted.Map Source: Google 105 Where could this additional incentive be utilized in Denton? 14File ID: 21-4425/25/2021 •Neighborhood Stabilization Areas •Promote rehabilitation, restoration, and revitalization in areas that retain the historic character of Denton •Opportunity to work with other departments, such as Community Development and Economic Development 2020 Median Household Income 106 15 Recommended Updates to the Ordinance File ID: 21-4425/25/2021 Provide Clarity and Ease to the Historic Tax Exemption Process •April 30th deadline to submit Tax Exemption Applications for Designated Historic Sites and Historically Significant Sites to the Denton Central Appraisal District •Define what is an improvement and/or restoration to a historic property 107 16 City Council Direction File ID: 21-4425/25/2021 Policy direction from City Council regarding eligible permanent improvements and/or restoration of historic properties Establish April 30th deadline to submit Tax Exemption Applications to the Denton Central Appraisal District Expansion of the Current Historic Tax Exemption Ordinance Owner Occupied Residences in New Historic Districts Heritage Properties Neighborhood Stabilization Areas 108 17 Questions? File ID: 21-4425/25/2021 109 1 Robertson, Cameron M. From:Robertson, Cameron M. Sent:Thursday, May 20, 2021 2:39 PM To:Randy Hunt Subject:RE: Incentives - details! Good afternoon Randy, Thank you for sharing your concerns. Please note that this is a preliminary work session. The presentation for Tuesday is to gain direction from City Council on the policy ideas, and to determine if they would like to move forward with further policy research. As stated in previous emails, I look forward to working together to make Denton a vibrant and thriving community, and thank you again for passing your incentive ideas along. The feedback we have received to date will be included in Staff’s upcoming work session with City Council. Best, Cameron From: Randy Hunt <historicdentoninc@gmail.com> Sent: Thursday, May 20, 2021 9:10 AM To: Robertson, Cameron M. <Cameron.Robertson@cityofdenton.com> Subject: Re: Incentives - details! This message has originated from an External Source. Please be cautious regarding links and attachments. How do you plan to present next week when there has been no open communication? Are you to let me know what you are to present prior to talking to the Council members which we elect? Please review these two articles that received high recognition: https://dentonrc.com/opinion/will-the-city-of-denton-ever-embrace-transparency/article_27235356-1196-57e3-a40e- 322450aaddaa.html https://dentonrc.com/opinion/columnists/annetta-ramsay-history-matters/article_bcd91fa8-c8fa-5e61-94f2- 75d231b76b95.html My expectations for someone new to the city is to be inclusive and transparent. In the case of Roman, he was involved by a rush a few people who wanted control of all decisions made by the city for their status quo - and he thought this handful of people represented neighborhoods because this is what they told him. Without any transparency, is appears that you have decided that you have enough information to make decisions for residents of Denton? When has any letter or communication been made with the owners which you are about to represent? I know you work for a department that disrespects neighborhood in preference to developers; however, this cannot justify that you have not share any information about what you plan to present - which directly affects people/residents/owners who have lived here for decades and which have been adversely affected by decisions from your department that lack any transparency. The Oak-Gateway SAP began as the first time that a large group of equally represent people were collected to talk and resolve issues - but Scott McDonald quickly shut this down after he replaced the only Director of you department that we respected. 110 2 Do not follow the same route as Roman. Let us know what you are to present prior to you now scheduled presentation to Council. There is still opportunity to create collaboration - if you agree to transparency and collaboration. On Thu, May 13, 2021 at 9:41 AM Randy Hunt <historicdentoninc@gmail.com> wrote: Quick bullet points for an incentive driven motivation of historic preservation. If you use this information for your presentation to the city, please provide attribution to Historic Denton, Inc. You can reference this story as proof: https://dentonrc.com/business/see-the-older-denton-house-thats-getting-national-attention/article_d25174a3-927e- 5214-af8e-d10d12f33be5.html Premise: Incentives are to target homeowners who declare Homestead tax exemption status as recorded in DCAD. This also removes evaluation of which houses are eligible and focuses attention to owners who do not gain financially from rental income of their homes. Income producing buildings return investments to owners annually and can qualify for the state and federal 45% incentive for rehabilitation. Homeowners cannot gain this support. There is little to limited incentives to recognize the actual people doing the historic preservation in Denton, a house at a time without cost to the city. These historic preservation efforts gain the attention of DCAD and the property tax values for homeowners goes up without any incentives offered to recognize their efforts! Incentives work and create Strong Neighborhoods: * Unless an income producing house has a City HL marker, there should be no financial incentives. This resolves a huge issue created the last time Council was approached about incentives when the claim was that they wanted to control the number of incentives, or limit them to only buildings within a historic district. * Keep the base of 50% property tax reduction to all owners (businesses, homes, rentals, etc.) who gain a city HL marker. This increases your efforts to illustrate wide historic preservation support. It also includes owners who do not live within a historic district. BUT, add a restriction that if an owner razes their building, then the last 10 years of property tax reduction must be paid in full. Need to avoid landlords who want to take advantage of money without the responsibility for historic preservation of their properties. * For homeowners (non income producing building owners) within a National Register or City historic district, all homeowners should gain a base 25% property tax reduction incentive, or the 50% base if it holds a city HL marker. This also eliminates the review of every 10 year review, for it is the building that needs the incentive without regard to the ownership. The current 10 year limit is bogus, created by a council of men who did not want to recognize owners who were not developers. * For homeowners within a National Register historic district with a house that has been determined by THC as contributing, add another 25% property tax reduction incentive. * For homeowners within a National Register historic district with a house that has been determined by THC with High contributing status, add another 25% property tax reduction incentive. 111 3 Last - review the historic benefit property tax reduction in Collin County which is most comparable to Denton County. There is a 100% property tax reduction for historic properties which includes County, City and ISD property taxes. Thanks, Randy 112 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 21-437,Version:1 AGENDA CAPTION Receive a report, hold a discussion, and give staff direction on pending City Council requests for: (1)Work session regarding the one-minute pitch process. (2)Work session to discuss using ranked-choice voting for officers of Council, Committee, Commissions, and Boards. (3)A work session on a City initiative to increase COVID vaccine access. City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™113 City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: City Manager’s Office ICM: Sara Hensley DATE: May 25, 2021 SUBJECT Receive a report, hold a discussion, and give staff direction on pending City Council requests for: (1) Work session regarding the one-minute pitch process. (2) Work session to discuss using ranked-choice voting for officers of Council, Committee, Commissions, and Boards. (3) A work session on a City initiative to increase COVID vaccine access. BACKGROUND During the annual City Council retreat on Saturday, August 17, 2019, the City Council agreed to a process to ensure there is a consensus of the City Council regarding the use of staff time when responding to requests from elected officials that anticipate taking more than two hours to complete or if there is a City Council policy decision to be made. The process developed during the retreat was further discussed and formally adopted at the August 27, 2019 City Council meeting (Exhibit 2). Staff will review one outstanding request for information per elected official during each work session. The weekly work session process will include staff introducing the requested topic followed by the requesting elected official having up to one minute to describe and justify their request. Remaining elected officials will then have up to one minute to provide feedback and indicate their support for the use of staff time to respond to the request. Staff will respond to all requests where a consensus of at least four elected officials is established. Responses will be provided in the requested format including Informal Staff Reports, Legal Status Reports, City Council work session topics, or ordinances and resolutions to be considered on future City Council agendas. The following item will be discussed during this work session: 1. Work session regarding the one-minute pitch process. a. Requestor: Council Member Armintor b. Council Member Request: “I would like to make a one-minute pitch to replace 1-minute pitches with a system whereby Councilmembers submit any work session and 2+hr information requests to staff weekly, biweekly, or monthly, and staff publishes them in the Friday report (along with any remaining one-minute pitch requests still in the queue from the old system). Councilmembers then either (a) indicate to staff individually by email which requests they support to move forward, or (b) have a work session discussion to decide which work session and information requests they would like to see move forward. Requests with the interest of two or more councilmembers automatically move forward. That way even councilmembers in the City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 114 minority can bring work session request and information requests forward that represent their constituents, as long as there is at least one other councilmember who supports their request.” c. Staff Information: During the annual City Council retreat on Saturday, August 17, 2019, Council discussed how to utilize and prioritize staff’s time when responding to requests for information from individual Council Members. Staff communicated the challenges of having no structure, including that the list of individual requests grew (lengthening the time to respond to requests), and some requests required a substantial amount of staff time for an individual request, which redirected staff from other priorities established by the body of Council. The result of those conversations on how to best manage and prioritize staff time was the “one-minute pitch” process adopted by the City Council on August 27, 2019 through Ordinance No. 19-2026 (Exhibit 2). The process requires requests for information that will take over 2-hours of staff time, or is a policy or work session request, to be presented in one-minute by the requesting Elected Official during a standing work session item. The remaining Elected Officials then have one-minute each to respond to the request and indicate their support. Staff will then take action on all requests where a consensus of Council (four members) have indicated support. One of the goals of the one-minute pitch process is to ensure that requests that will use large amounts of staff resources are supported by the Council as a body, rather than an individual Council Member. It allows the Council Member to transparently make their request, and receive feedback, in an open meeting where staff can receive direction from the body to proceed with the request. If the Council would like to move forward with a work session, staff can prepare information and potential alternatives for how staff can receive direction and priorities from Council, including those alternatives proposed by Council Member Armintor, for discussion. Staff anticipates that preparing for the work session would use 10-20 hours of staff time. d. Date requested: May 2, 2021 e. Format for response: Work Session 2. Work session to discuss using ranked-choice voting for officers of Council, Committee, Commissions, and Boards. a. Requestor: Council Member Beck b. Council Member Request: “The Denton Charter Article II,. Sections 2.07, and 2.08.c as well as other applicable local and state code describe that for the most part, council sets its own rules for how the council and most committees, commissions, and boards nominate officers. Most nominations for these officers (e.g. a commission chair or the council's mayor pro tem) follow what Robert's Rules of Order would characterize as floor nominations from members. However, at this point Denton procedure generally veers from Robert's Rules. For example, multiple nominees are generally not always considered and balloting of the members from amongst all nominees is not used. I request any needed staff report and a work session to discuss amending our rules and regulations to adopt full open nominations followed by a variant of rank-choice (or automatic runoff) voting from amongst all nominees until such time as a majority choice is selected. As an example, a suggested procedure might be: 1) NOMINATIONS: all nominations from the floor are first accepted along with any optional justification from the nominating member. 1.a) immediately upon receiving a nomination the acting chair 115 determines if the nominee is amenable to nomination, where this step may be skipped if the member nominated themselves. 1.b) (as needed) staff identifies if the nominee is eligible and conveys this to the acting chair. 1.b.1) if a nominee is ineligible, their nomination may be discounted by the chair and may not be put into nomination but another member. 1.c) all members including the chair are afforded the chance to nominate or second a nomination along with any optional justification. 2) RANK-CHOICE VOTE: After all valid nominations are determined, an open ballot is held in which each member ranks their choices from amongst the nominees. 2a) if no nominee receives a simply majority, the lowest vote count nominee is eliminated and votes for them are automatically transferred to the next higher rank of each member-voter; often referred to as an automatic runoff. In this way, we more closely adopt the will of the member body rather than first to be recognized by the acting chair. For most officer positions across council, commissions, and boards this will be substantially identical to the status quo and will thus result in no hardship on council, board members, or staff.” c. Staff Information: In the ranked-choice voting system, also known as “instant-runoff voting,” voters rank all the candidates for a given office by their preference – first choice, second choice, etc. The votes are first tallied based on the first choice on every ballot. If no single candidate wins a first-round majority of the votes, then the candidate with the lowest number of votes is eliminated and another round of vote tallying commences. If a voter’s first choice is eliminated, then the vote goes to the second choice and so on. Eventually, one candidate receives a majority (over 50 percent) and wins the election. • If the City Council would like to implement such a system for all officers, there are some items, including but not limited to what is listed below, that should be considered regarding logistics, transparency, and rapport among volunteer members: • Constructing a ballot and tabulation process that complies with the Texas Open Meeting Act (TOMA) requirements; • Time to train staff liaisons and members for the consistent implementation of the process across 30 committees, boards, and commissions; • Potential of creating animosity and damaging rapport between volunteer advisory board members when ranking, and being ranked by, the other board members; • Potential difficulty or apprehension for a new member to a Board or Commission to participate in a ranked-choice voting system; • Procuring, implementing, and using a software that can be displayed to ensure manual process mistakes are eliminated; • Developing protocols for any members who do not wish to identify a second, third, etc. choice. (i.e. – avoiding a stalemate); • Developing any changes to the B&C Handbook may be necessary to clearly outline the process. d. Date requested: May 16, 2021 e. Format for response: Work Session 3. A work session on a City initiative to increase COVID vaccine access. a. Requestor: Council Member Maguire 116 b. Council Member Request: “In early 2021, the most efficient way to distribute COVID vaccines was through hubs like the DCPH clinic at TMS. For efficiency, these hubs had to implement some barriers to vaccination, such as requiring an appointment, requiring patients to find transportation, and requiring photo ID. Most residents who were willing and able to overcome these barriers have been vaccinated. Unfortunately, we are still a long way from herd immunity, and executive orders have made it difficult to protect public health by requiring masks. It is more urgent than ever that we reach out to unvaccinated residents and remove as many barriers as possible. I am requesting a work session on a City initiative to increase COVID vaccine access. Steps to be discussed can include but are not limited to: • Expanding the partnership between the City of Denton and Denton County Public Health. • Not requiring ID or appointments. • Onsite vaccinations and incentives for city employees. • Onsite clinics at Denton’s largest workplaces. • Sunday clinics at churches. • Clinics at locations where unhoused Dentonites tend to gather, such as Our Daily Bread, the Monsignor King Center, and City parks. • A mobile vaccination bus. • A door-to-door campaign encouraging and facilitating vaccination. • Employing Spanish speakers to knock doors in neighborhoods with large Spanish speaking populations. • Partnering with Denton ISD to offer vaccines to students, parents, and employees at their home campus on school days. • Partnering with our colleges and universities to offer vaccines to students and employees on campus.” c. Staff Information: COVID-19 vaccinations are available for people 12 years of age and older through Denton County Public Health (DCPH). As of May 17, 2021, DCPH has issued 203,734 first doses of the COVID-19 vaccine, and 189,237 of the second dose. Since DCPH started administering the vaccine, the City of Denton Fire Department (DFD) has partnered with the County to assist administering the vaccines. Until early May, DCPH administered the vaccine using Texas Motor Speedway (TMS) as a major hub. People would make their reservations online, and travel to the speedway to receive their shots. Beginning in early May, DCPH has now moved to smaller, more localized vaccine events in an attempt to reach populations that could not travel to the TMS or find an appointment time that was convenient, including vaccination clinics at Our Daily Bread and The Salvation Army (in Lewisville) on April 30 and May 21, and are planning a follow up clinic on June 11. The clinic on May 21 provided second doses to those who were vaccinated on April 30 and first doses as well. The June 11 clinic will provide second doses for those vaccinated on May 21. The City worked with local resources to already have all interested City employees receive the vaccination and is also looking at ways to have an incentive through our wellness program for those employees that have been vaccinated. The City of Denton is committed to continuing the partnership with DCPH to administer the vaccines. The Fire Department has outlined their coordination efforts, and other information regarding their role administering the COVID-19 vaccine, in Informal Staff Report 2021-032 (Exhibit 3) from May 21, 2021. 117 If City Council would like to pursue options contained within Council Member Maguire’s request, staff recommends asking for a work session that includes DCPH. During this work session, the City Council, City staff, and DCPH staff could discuss these and other potential options, staffing and resource requirements, budget considerations, and potential funding sources including the American Rescue Plan. Depending on the scope of the presentation, staff estimates that preparing for a work session would take between 10 and 20 hours. d. Date requested: May 20, 2021 e. Format for response: Work Session EXHIBITS Exhibit 1 – Agenda Information Sheet Exhibit 2 – Ordinance No. 19-2026 Exhibit 3 – Informal Staff Report No. 2021-032 Fire Department COVID Vaccinations Exhibit 4 – Presentation Respectfully Submitted: Stuart Birdseye Assistant to the City Manager 118 1 • 1 # • • 1 ' " : ' • R „ .1 1 l .. .' , . • ', M R . , ' ! . # ......., ' [ '.. . ': r - .... . 1 . #' . • .. ! . .. . `. • ... .. ...., ,. • - . + ... .,. ,.. R + . ' '. ' . . f` r * ' " • . . . . * * .• . _ . # . w f#•. ' " + '! ' . I , '! -, * • - ' ' . ., . •# # - .' . ! r *r i 1 • •,,. ' ••' '# . • 1''• ' 1 # . -, s . " . ' " !!' ' ' #' ' /' •' . ' _ •' ! i '' . - r "'•' # . . . a} Definitions. 1 . •- .• i . ! • ",." . . : .' . 1 # " , I . ! # ' . . • !' ' . w ' ' '' '•' • "" ' ""• " + " r • !"+ • • " ' ,' • # • ! /• j reporting ta, the City Manager or City Attorney. 119 b) City Council Requests for Information from City Staff. 1) All City Council requests for information from City Staff, must be submitted to the City Manager's Office via email and include at a minimum, the following details: a, Request Type; b. Purpase; c. Time Sensitivity; and d. Preferred Respanse Format. 2) The City Manager's Office and/or the City Attorney's Office will estimate the amaunt af time required to respond ta each request. 3) Requests estimated to take more than a total of twa hours to complete will be brought forward within the next 30 calendar days, to a City Council wark session to seek cansensus from the full City Council regarding the use af City Staff time to fulfill the request. Requests for information referred to a work session will fallow the procedures provided in sub-section (b) of Sectian 2-30. c) City Cauncil Requests for Informatian Referred to a Work Session. 1) A standing work session item will be added to each City Council agenda for City Council requests ta be cansidered. a. The requesting Council Member will be required ta pravide a clear, written explanation describing the reason for the informatian requested. This description will be included as an attachment ta the work session agenda materials and must he provided to the City Secretary in time to fully camply with Texas Open Meeting Act requirements. 2) During the work session, the requesting Cauncil Member will have a maximum af one minute to describe and justify their request. a. Remaining Cauncil Members will then have a maximum of one minute each to provide feedback and indicate their support for the use of City Staff time to respond ta the request, 3} City Staff will respond to all requests where a consensus of at least four elected officials is established. Each elected official will alsa have the option to request City Staff respond to a maximum of two requests per quarter where a consensus is not met, pravided each request in this category is not estimated to take mare than a total of ten City Staff hours to complete, Ta the extent possible, responses will be make in the requested format including Informal Staff Reports, Legal Status Reports, City Council work session topics, or ardinances and resalutians ta be cansidered on future City Council agendas. SECTION 2. This ordinance shall become effective immediately upon its passage and approval. 120 S„ECTION 3, To the extent not otherwise provided, this ordinance shall repeal every prior ordinance in conflict herewith, but only insofar as the portion of such ordinance shall be in conflict; and as to all other sections of the ordinance not in direct conflict herewith, this ordinance shall be and is hereby made cumulative except as to such prior ordinances or portions thereof as are expressly repealed hereby. 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. ro ordinance was made by ' ° m Y ; ' ° The motion to app ve this and seconded by '' m , the ordinance was r,a.l anda z r•r y t 7 a l>r ir r N ..,. b Mayor Chris Watts: Gerard Hudspeth, District 1 Keely Briggs, District 2: Jesse Davis, District 3: John Ryan, District 4: Deb Armintor, At Large Place 5: Paul Meltzer, At Large Place 6: Aye Nay Abstain Absent PASSED AND APPROVED this the °,, day of , , _ t 2019, n. --,, w , ; C i' I: WATTS, MAYOR ATTEST: ROSA RIOS, CITY SECRETARY BY° ' 6 . .,.o . w. , . ... ... ,,, APPROVED AS TO LEGAL FORM: AARON C.. ITY A"1 l! ;' y B Y: " „ . r r i ' y r>,, " " 4 r r , r , " G y 9 d 9 r 5i tl . 1, s ' w ,,.„d, y, i w , J' 121 Date: May 21, 2021 Report No. 2021-032 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Denton Fire Department COVID-19 Update EXECUTIVE SUMMARY: The Denton Fire Department (DFD) has been extremely involved locally and with the State with COVID-19 testing even before the vaccines were available. Through the testing processes and lessons learned, we quickly discovered that Denton County Public Health (DCPH) had a great plan and process in place. They were coordinating on implementing a mass vaccination plan into action once the vaccines became available. As the COVID Vaccination Provider Program registration/sign-ups began, well before any vaccines were approved for emergency use, the DFD were in discussions with DCPH about hosting vaccine clinics within the City of Denton. We were fortunate that UNT (Discovery Park) and then Denton ISD (CH Collins) had prime locations for mass drive thru vaccination sites. DCPH had a superb model for mass vaccinations which was so efficient that even the CH Collins was quickly outgrown. At that point the mass vaccination clinics were moved to Texas Motor Speedway to accommodate larger daily and weekly volumes. The Denton Fire Department has been involved with every mass vaccination clinic in the COD and at TMS since the inception of the vaccination clinics through DCPH. This model has delivered over 350,000 doses and counting. Last week the TMS site was closed since the number of individuals requesting to be vaccinated has dropped dramatically. The site has now temporarily relocated back to CH Collins this week for 2 vaccine clinics on Wednesday with approximately 500 doses and Thursday with approximately 3000 doses. These clinics have several 2nd dose recipients since the overall number of new individuals signing up to request a vaccination has dwindled down to almost non-existent except for the newly approved 12-18-year-old age group. DISCUSSION: Why is the City of Denton not a COVID-19 Vaccine Provider? During the early stages of COVID-19 and throughout the process, the DFD did investigate in becoming a registered COVID-19 Vaccine Provider. Ultimately the decision was made to not become a provider for several reasons. Two of the key reasons included: 1- The storage of the vaccines. To properly secure and store vaccines for on-going vaccination clinics requires specialized refrigeration and, in some cases, ultra-cold freezers that the COD currently does not have and would have had to acquire. 2-The DFD was building a great partnership with DCPH and felt confident that they would be able to meet our expectations for ensuring that vaccinations are readily available to our Citizens. Current COVID Vaccination Clinics: 122 Date: May 21, 2021 Report No. 2021-032 As mentioned previously, DCPH has administered over 350,000 COVID-19 vaccination doses at over 40 COVID-19 clinics. While most doses were administered at the mass hub site that they established at Texas Motor Speedway, they have also administered approximately 10,000-20,000 in the COD at CH Collins. DCPH’s model in COVID-19 vaccinating is one of the model programs in the United States and we are proud to have been partnering with them from the very beginning on this project. This week alone they scheduled 2 clinics at CH Collins with the first one being on Wednesday and the second on Thursday. While these clinics were scheduled for a lot of 2nd dose recipients, they are also open for 1st doses also. DCPH virtually does not have a waiting list at all anymore. In fact, individuals without an appointment can literally pull up to the shot clinic today and get an instant appointment by registering on the DCPH website. DCPH prefers photo id but it is not required; some type of ID is required to assist in reporting/recording the vaccine in the statewide database; ID type is a very general category—work/school ID, bills with mailing address, school record, etc. DCPH has already scheduled another drive-up clinic for next week in-case additional individuals would like to be vaccinated. Some Additional Clinics that are On-Going through DCPH: Going forward DCPH is already scheduling vaccine clinics at schools over the next few months along with any additional clinics as needs are identified. Additionally, DCPH has also established a “HomeBound” vaccination program. Since several County Fire Departments had been heavily involved with Texas Motor Speedway and local Clinics within their own Cities, Denton County Emergency Service District #1 (Argyle FD) has been tasked with this program. Currently this program is averaging 5-8 “Home Visits” throughout Denton County twice a week. These clinics focus on individuals that are homebound and have no other means of going to a traditional vaccination clinic. The DFD will continue to support DCPH COVID-19 vaccination clinics in the COD and we have also offered to assist ESD1 with their homebound missions within the COD. Other Clinics within the COD: The DFD has also been involved with the Texas Department of Emergency Management (TDEM) in their vaccination efforts for several months now. The most notable program within the COD that we have been assisting them on is their “SNF” (Skilled Nursing Facilities) missions. TDEM has been tasked with ensuring that all residents and staff in Skilled Nursing Facilities are offered and administered COVID-19 vaccines. This project throughout that state have taken a considerable amount of time and coordination and is ending this week (The last COD facility was finished last week). Another program going on in the State with Texas Military and TDEM is the new “Call Center Connect” (CCC) Program in which any group of 10 or more can call 844-90-TEXAS to schedule a visit from a mobile COVID-19 vaccination team. Additionally, a quick search of pharmacies within the COD revealed that individuals can pretty much receive a COVID-19 vaccination virtually any day of the week within the COD. 123 Date: May 21, 2021 Report No. 2021-032 Can the DFD arrange for groups to be vaccinated? Yes, through our various partnerships we can find a provider (either DCPH or TDEM) to administer COVID-19 vaccine doses to groups. We are also finalizing the logistics in which the FD would utilize a van as a “Mini Mobile Clinic” within the COD. With this van, we can go out and register individuals through the DCPH website and then have FD members administer the doses. With this model DCPH will still be the provider and record keeper, but the DFD will be the primary party in identifying groups/individuals and administering the COVID-19 vaccines. How is the City assisting to reach individuals experiencing homelessness? As reported in the May 7 Friday report, City staff from Community Services partnered with DCPH and the United Way of Denton County (UWDC) to coordinate vaccine clinics for people experiencing homelessness. On Friday, April 30, DCPH provided forty-four (44) vaccines at Our Daily Bread and twenty-seven (27) vaccines at the Salvation Army in Lewisville. UWDC partnered with each respective agency to pre-register individuals, and DCPH provided onsite registration to individuals who arrived the day of the clinics. This was DCPH’s first attempt at decentralizing their vaccine administration process and a successful attempt to target vulnerable populations. Staff will continue to collaborate with community partners to coordinate vaccine administration to vulnerable groups. CONCLUSION: We expect there to be changes in the future and will continue to be flexible and adapt to meet the needs of the COD. Individuals wanting to still receive a COVID-19 vaccine have several options readily available within the COD to receive a free vaccination. There will likely continue to be small surges in individuals wishing to be vaccinated as additional age groups open as we are currently seeing with the 12-18-year-old age group with Pfizer. We will continue to work with our partner agencies to make sure our citizens are being offered vaccines in a timely manner. DCPH has developed a great model in administering vaccines to our residents and we are proud to be assisting them in whatever capacity is needed now and, in the future, as we continue through this process. STAFF CONTACT: Kenneth Hedges, Fire Chief 124 City Council Pending Requests for Information City Council Meeting May 25, 2021 125 Work Session Process •Up to seven requests will be reviewed per meeting (one per Council Member) •Staff will introduce each request •The elected official that made the request will have up to one minute to describe and justify their request •Remaining elected officials will then have up to one minute to provide feedback and indicate their support for the use of staff time to respond to the request •Staff will respond to all requests where a consensus of Council is established Legistar ID: 21-437 May 25, 2021 2 126 Item 1 Work session regarding the one-minute pitch process. Requestor: Council Member Armintor Council Member Request: “I would like to make a one-minute pitch to replace 1-minute pitches with a system whereby Councilmembers submit any work session and 2+hr information requests to staff weekly, biweekly, or monthly, and staff publishes them in the Friday report (along with any remaining one-minute pitch requests still in the queue from the old system). Councilmembers then either (a) indicate to staff individually by email which requests they support to move forward, or (b) have a work session discussion to decide which work session and information requests they would like to see move forward. Requests with the interest of two or more councilmembers automatically move forward. That way even councilmembers in the minority can bring work session request and information requests forward that represent their constituents, as long as there is at least one other councilmember who supports their request.” 3Legistar ID: 21-437 May 25, 2021 127 Item 1Work session regarding the one-minute pitch process. Staff Information: During the annual City Council retreat on Saturday, August 17, 2019, Council discussed how to utilize and prioritize staff’s time when responding to requests for information from individual Council Members. Staff communicated the challenges of having no structure, including that the list of individual requests grew (lengthening the time to respond to requests), and some requests required a substantial amount of staff time for an individual request, which redirected staff from other priorities established by the body of Council. The result of those conversations on how to best manage and prioritize staff time was the “one-minute pitch” process adopted by the City Council on August 27, 2019 through Ordinance No. 19-2026 (Exhibit 2). The process requires requests for information that will take over 2-hours of staff time, or is a policy or work session request, to be presented in one- minute by the requesting Elected Official during a standing work session item. The remaining Elected Officials then have one-minute each to respond to the request and indicate their support. Staff will then take action on all requests where a consensus of Council (four members) have indicated support. One of the goals of the one-minute pitch process is to ensure that requests that will use large amounts of staff resources are supported by the Council as a body, rather than an individual Council Member. It allows the Council Member to transparently make their request, and receive feedback, in an open meeting where staff can receive direction from the body to proceed with the request. If the Council would like to move forward with a work session, staff can prepare information and potential alternatives for how staff can receive direction and priorities from Council, including those alternatives proposed by Council Member Armintor, for discussion. Staff anticipates that preparing for the work session would use 10-20 hours of staff time. Requested Format for Response: Work Session 4Legistar ID: 21-437 May 25, 2021 128 Item 2Work session to discuss using ranked-choice voting for officers of Council, Committee, Commissions, and Boards. Requestor: Council Member Beck Council Member Request: “The Denton Charter Article II,. Sections 2.07, and 2.08.c as well as other applicable local and state code describe that for the most part, council sets its own rules for how the council and most committees, commissions, and boards nominate officers. Most nominations for these officers (e.g. a commission chair or the council's mayor pro tem) follow what Robert's Rules of Order would characterize as floor nominations from members. However, at this point Denton procedure generally veers from Robert's Rules. For example, multiple nominees are generally not always considered and balloting of the members from amongst all nominees is not used. I request any needed staff report and a work session to discuss amending our rules and regulations to adopt full open nominations followed by a variant of rank-choice (or automatic runoff) voting from amongst all nominees until such time as a majority choice is selected. As an example, a suggested procedure might be: 1) NOMINATIONS: all nominations from the floor are first accepted along with any optional justification from the nominating member. 1.a) immediately upon receiving a nomination the acting chair determines if the nominee is amenable to nomination, where this step may be skipped if the member nominated themselves. 1.b) (as needed) staff identifies if the nominee is eligible and conveys this to the acting chair. 1.b.1) if a nominee is ineligible, their nomination may be discounted by the chair and may not be put into nomination but another member. 1.c) all members including the chair are afforded the chance to nominate or second a nomination along with any optional justification. 2) RANK-CHOICE VOTE: After all valid nominations are determined, an open ballot is held in which each member ranks their choices from amongst the nominees. 2a) if no nominee receives a simply majority, the lowest vote count nominee is eliminated and votes for them are automatically transferred to the next higher rank of each member-voter; often referred to as an automatic runoff. In this way, we more closely adopt the will of the member body rather than first to be recognized by the acting chair. For most officer positions across council, commissions, and boards this will be substantially identical to the status quo and will thus result in no hardship on council, board members, or staff.” 5Legistar ID: 21-437 May 25, 2021 129 Item 2 Work session to discuss using ranked-choice voting for officers of Council, Committee, Commissions, and Boards. Staff Information: In the ranked-choice voting system, also known as “instant-runoff voting,” voters rank all the candidates for a given office by their preference –first choice, second choice, etc. The votes are first tallied based on the first choice on every ballot. If no single candidate wins a first-round majority of the votes, then the candidate with the lowest number of votes is eliminated and another round of vote tallying commences. If a voter’s first choice is eliminated, then the vote goes to the second choice and so on. Eventually, one candidate receives a majority (over 50 percent) and wins the election. If the City Council would like to implement such a system for all officers, there are some items, including but not limited to what is listed below, that should be considered regarding logistics, transparency, and rapport among volunteer members: • Constructing a ballot and tabulation process that complies with the Texas Open Meeting Act (TOMA) requirements; • Time to train staff liaisons and members for the consistent implementation of the process across 30 committees, boards, and commissions; • Potential of creating animosity and damaging rapport between volunteer advisory board members when ranking, and being ranked by, the other board members; • Potential difficulty or apprehension for a new member to a Board or Commission to participate in a ranked-choice voting system; • Procuring, implementing, and using a software that can be displayed to ensure manual process mistakes are eliminated; • Developing protocols for any members who do not wish to identify a second, third, etc. choice. (i.e. –avoiding a stalemate); • Developing any changes to the B&C Handbook may be necessary to clearly outline the process. Requested Format for Response: Work Session 6Legistar ID: 21-437 May 25, 2021 130 Item 3A work session on a City initiative to increase COVID vaccine access. Requestor: Council Member Maguire Council Member Request: “In early 2021, the most efficient way to distribute COVID vaccines was through hubs like the DCPH clinic at TMS. For efficiency, these hubs had to implement some barriers to vaccination, such as requiring an appointment, requiringpatients to find transportation, and requiring photo ID. Most residents who were willing and able to overcome these barriers have been vaccinated. Unfortunately, we are still a long way from herd immunity, and executive orders have made it difficult to protect public health by requiring masks. It is more urgent than ever that we reach out to unvaccinated residents and remove as many barriers as possible. I am requesting a work session on a City initiative to increase COVID vaccine access. Steps to be discussed can include but are not limited to: -Expanding the partnership between the City of Denton and Denton County Public Health.-Not requiring ID or appointments.-Onsite vaccinations and incentives for city employees.-Onsite clinics at Denton’s largest workplaces.-Sunday clinics at churches.-Clinics at locations where unhoused Dentonites tend to gather, such as Our Daily Bread, the Monsignor King Center, and City parks.-A mobile vaccination bus.-A door-to-door campaign encouraging and facilitating vaccination.-Employing Spanish speakers to knock doors in neighborhoods with large Spanish speaking populations.-Partnering with Denton ISD to offer vaccines to students, parents, and employees at their home campus on school days.-Partnering with our colleges and universities to offer vaccines to students and employees on campus.” In this way, we more closely adopt the will of the member body rather than first to be recognized by the acting chair. For most officer positions across council, commissions, and boards this will be substantially identical to the status quo and will thus result in no hardship on council, board members, or staff.” 7Legistar ID: 21-437 May 25, 2021 131 Item 3 A work session on a City initiative to increase COVID vaccine access. Staff Information: COVID-19 vaccinations are available for people 12 years of age and older through Denton County Public Health (DCPH). As of May 17, 2021, DCPH has issued 203,734 first doses of the COVID-19 vaccine, and 189,237 of the second dose. Since DCPH started administering the vaccine, the City of Denton Fire Department (DFD) has partnered with the County to assist administering the vaccines. Until early May, DCPH administered the vaccine using Texas Motor Speedway (TMS) as a major hub. People would make their reservations online, and travel to the speedway to receive their shots. Beginning in early May, DCPH has now moved to smaller, more localized vaccine events in an attempt to reach populations that could not travel to the TMS or find an appointment time that was convenient, including vaccination clinics at Our Daily Bread and The Salvation Army (in Lewisville) on April 30 and May 21, and are planning a follow up clinic on June 11. The clinic on May 21 provided second doses to those who were vaccinated on April 30 and first doses as well. The June 11 clinic will provide second doses for those vaccinated on May 21. The City worked with local resources to already have all interested City employees receive the vaccination and is also looking at ways to have an incentive through our wellness program for those employees that have been vaccinated. The City of Denton is committed to continuing the partnership with DCPH to administer the vaccines. The Fire Department has outlined their coordination efforts, and other information regarding their role administering the COVID-19 vaccine, in Informal Staff Report 2021-032 (Exhibit 3) from May 21, 2021. If City Council would like to pursue options contained within Council Member Maguire’s request, staff recommends asking for a work session that includes DCPH. During this work session, the City Council, City staff, and DCPH staff could discuss these and otherpotential options, staffing and resource requirements, budget considerations, and potential funding sources including the American Rescue Plan. Depending on the scope of the presentation, staff estimates that preparing for a work session would take between 10and 20 hours. Requested Format for Response: Work Session 8Legistar ID: 21-437 May 25, 2021 132 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 21-1046,Version:1 AGENDA CAPTION Deliberations Regarding Certain Public Power Utilities:Competitive Matters -Under Texas Government Code Section 551.086; Consultation with Attorneys - Under Texas Government Code, Section 551.071. Receive a presentation from staff regarding public power competitive and financial matters about the risks of wholesale energy supply and risk management plans,hedge plans,and strategies as each relates to the DME electric power and gas portfolio;discuss,deliberate,and provide direction to staff regarding the same. Consultation with the City’s attorneys regarding legal issues associated with the above matters where a public discussion of these legal matters would conflict with the duty of the City’s attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas, or would jeopardize the City’s legal position in any administrative proceeding or potential litigation. City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™133 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 21-1047,Version:1 AGENDA CAPTION Deliberations Regarding Certain Public Power Utilities:Competitive Matters -Under Texas Government Code Section 551.086; Consultation with Attorneys - Under Texas Government Code, Section 551.071. Receive a presentation from staff regarding public power competitive and financial matters about the delivery of power,wholesale energy supply and risk management plans,hedge plans,and strategies as each relates to the DME electric power and gas portfolio and to the February winter storm;discuss,deliberate,and provide direction to staff regarding the same.Consultation with the City’s attorneys regarding legal issues,legal status, legal analysis,and legal strategy associated with the above matters and pending and potential litigation, including release of related confidential information,where a public discussion of these legal matters would conflict with the duty of the City’s attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas,or would jeopardize the City’s legal position in any administrative proceeding or potential litigation. City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™134 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 21-974,Version:1 AGENDA CAPTION Consider approval of the minutes of May 11, 2021. City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™135 City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: ICM: DATE: City Secretary’s Office Sara Hensley May 25, 2021 SUBJECT Consider the approval of the minutes for May 11, 2021. BACKGROUND The minutes drafts are provided for review and formal approval by the City Council. EXHIBITS Exhibit 1 - AIS Exhibit 2 - May 11, 2021 Minutes Draft Respectfully submitted: Rosa Rios City Secretary City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 136 CITY OF DENTON CITY COUNCIL MINUTES May 11, 2021 After determining that a quorum was present, the City Council of the City of Denton, Texas convened in a Special Called Meeting on Tuesday, May 11, 2021, at 3:07 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas. PRESENT: Mayor Hudspeth, Mayor Pro Tem Davis and Council Members Birdia Johnson, Connie Baker, John Ryan, Deb Armintor, and Paul Meltzer ABSENT: None Also present were Interim City Manager Sara Hensley and City Attorney Aaron Leal. Note: Mayor Gerard Hudspeth, Mayor Pro Tem Jesse Davis and Council Members Birdia Johnson, Connie Baker, John Ryan, Deb Armintor, and Paul Meltzer participated in the meeting via video/teleconference under the provisions allowed by the Texas Government Code Section 551.127 The posted agenda noted the registration process for public participation at this virtual meeting. While citizen commentary received via the online registration process was not read, each member of the City Council received each registration as it was submitted. SPECIAL CALLED MEETING 1. ITEMS FOR INDIVIDUAL CONSIDERATION NOTE: Council Members-Elect were issued their Certificate of Election, Statement of Officer, and Oaths of Office in the Council Chamber. A. ID 21-741 Consider adoption of an ordinance canvassing the returns and declaring the results of the Regular Municipal Election to elect four City Council Members to Districts 1, 2, 3, and 4 of the City Council of the City of Denton, held on May 1, 2021; declaring that all candidates received the majority of votes cast for their respective District with no Runoff Election being necessary; and providing an effective date. ASSIGNED ORDINANCE NO. 21-741 All members of the City Council received the comment as submitted and had the opportunity to review all submissions prior to the start of the meeting and consider such comment when voting on the item. The summary of public commentary/registrations are noted in Exhibit A. This item was presented and no discussion followed. The election results reported the following. As a result, each candidate qualified for election to the noted District. With the following candidates having received over 50% of total votes cast in the respective District, a runoff election was not necessary. District 1 Vicki Byrd Elected District 2 Brian Beck Elected District 3 Jesse Davis Elected District 4 Alison Maguire Elected 137 City of Denton City Council Minutes May 11, 2021 Page 2 Council Member Meltzer moved to adopt the item as presented. Motion seconded by Council Member Armintor. Motion carried. AYES (6): Mayor Hudspeth and Council Members Johnson, Baker, Ryan, Armintor, and Meltzer NAYS (0): None ABSENT WHEN VOTE TAKEN (1): Mayor Pro Tem Davis The meeting was recessed to transition from the Council Work Session Room to the Council Chamber at 3:14 p.m. and reconvened at 3:19 p.m. B. ID 21-742 Issue the following to newly Elected Council Members: • Certificate of Election • Statement of Officer • Oaths of Office Mayor Hudspeth presented the newly elected members noted below with a Certificate of Election, after which City Secretary Rios administered the Statement of Officer and Oaths of Office to each. District 1 Vicki Byrd District 2 Brian Beck District 3 Jesse Davis District 4 Alison Maguire The meeting was recessed to transition from the Council Chamber to the Council Work Session Room at 3:30 p.m. and reconvened at 3:37 p.m. C. ID 21-743 Proclamations in appreciation of service to the City of Denton as a City Council Member for the following: [The remainder of this page intentionally left blank.] 138 City of Denton City Council Minutes May 11, 2021 Page 3 • Birdia Johnson - PRESENTED 139 City of Denton City Council Minutes May 11, 2021 Page 4 • Connie Baker - PRESENTED 140 City of Denton City Council Minutes May 11, 2021 Page 5 • John Ryan - PRESENTED 141 City of Denton City Council Minutes May 11, 2021 Page 6 D. ID 21-744 Election of Mayor Pro Tem. The item was presented and discussion followed. Mayor Hudspeth opened the nominations process. Council Member Maguire nominated Council Member Meltzer to serve as Mayor Pro Tem. Motion seconded by Council Member Beck. There being no further nominations, Mayor Hudspeth closed the nomination process. Following discussion, Council Member Beck offered a friendly amendment to Council Member Maguire’s motion to suspend the rules and utilize a “straight” vote process. Council Member Maguire accepted the friendly amendment. Mayor Hudspeth called a voice vote on the motion to elect Council Member Meltzer as Mayor Pro Tem. The motion carried unanimously. 2. RECESS OF SPECIAL CALLED MEETING The meeting was recessed at 4:03 p.m. and was reconvened following the Close Meeting. WORK SESSION After determining that a quorum was present, the City Council of the City of Denton, Texas convened in a Work Session on Tuesday, May 11, 2021, at 4:03 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas. PRESENT: Mayor Gerard Hudspeth, Mayor Pro Tem Paul Meltzer and Council Members Vicki Byrd, Brian Beck, Jesse Davis, Alison Maguire, and Deb Armintor ABSENT: None Also present were Interim City Manager Sara Hensley and City Attorney Aaron Leal. Note: Mayor Gerard Hudspeth, Mayor Pro Tem Paul Meltzer and Council Members Vicki Byrd, Brian Beck, Jesse Davis, Alison Maguire, Jesse Davis, and Deb Armintor participated in the work session, closed meeting and meeting via video/teleconference under the provisions allowed by the Texas Government Code Section 551.127 The posted agenda noted the registration process for public participation at this virtual meeting. However, there were no online registrations or call ins on any items on the agenda. 142 City of Denton City Council Minutes May 11, 2021 Page 7 1. Citizen Comments on Consent Agenda Items None 2. Requests for clarification of agenda items listed on this agenda. • Clarification was requested on the following item: o Council Member Maguire: Item 1.C (21-847) • The following item was pulled for Individual Consideration: o None 3. Work Session Reports A. ID 21-635 Receive a report, hold a discussion, and give staff direction regarding an update to the City of Denton’s COVID-19 response, including providing direction on public meetings. The item was presented and discussion followed. Following discussion, City Council consensus was to proceed with the hybrid model as presented and follow up at a future meeting as to budgetary implications regarding closed captioning, Spanish translation, live/closed captioning, creating other zoom meetings, and expenses involved with board members not attending. The work session was recessed for a short break at 5:26 p.m. and reconvened at 5:48 p.m. B. ID 21-555 Receive a report, hold a discussion, and give staff direction regarding the trails concept map for future identification, renovation, and expansion of facilities and trails. The item was presented and discussion followed. Following discussion, City Council consensus was to proceed with connectivity as featured/presented, continue with feedback, identify heritage trees, and share with the Public Art Committee for informational purposes. C. ID 21-912 Receive a report, hold a discussion, and give staff direction regarding updating the existing "Denton Municipal Electric - Energy Risk Management Policy." The item was presented and discussion followed. Following discussion, City Council consensus was to proceed with staff recommendation as presented. 143 City of Denton City Council Minutes May 11, 2021 Page 8 D. ID 21-435 Receive a report, hold a discussion, and give staff direction on pending City Council requests for: 1) Discussion regarding the Public Improvement District (PID) policy to better define Economic Development and to discuss residential requirements. 2) Entering a letter of opposition for SB29, SB 1646 and HB 1399. • Item 21-435 (1) Discussion regarding the Public Improvement District (PID) policy to better define Economic Development and to discuss residential requirements o Consensus for a future work session. • Item 21-435 (2) Entering a letter of opposition for SB29, SB 1646 and HB 1399. o Consensus for a future work session The work session ended at 7:00 p.m. CLOSED MEETING 1. The City Council convened into a Closed Meeting at 7:00 p.m. consistent with Chapter 551 of the Texas Government Code, as amended, or as otherwise allowed by law, as follows. A. ID 21-704 Deliberations Regarding Certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086; Consultation with Attorneys - Under Texas Government Code, Section 551.071. Receive a presentation from staff regarding public power competitive and financial matters about the risks of wholesale energy supply and risk management plans, hedge plans, and strategies as each relates to the DME electric power and gas portfolio; discuss, deliberate, and provide direction to staff regarding the same. Consultation with the City’s attorneys regarding legal issues associated with the above matters 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. DELIBERATED B. ID 21-925 Deliberations regarding Real Property - Under Texas Government Code Section 551.072; Consultation with Attorneys - Under Texas Government Code Section 551.071. Receive information from staff, discuss, deliberate, and provide staff with direction pertaining to the potential sale of City-owned real property situated in the Robert Beaumont Survey, Abstract No. 31 and the William Neill Survey, Abstract No. 971, City of Denton, Denton County, Texas, located at 414 West Parkway Street, where a public deliberation of such potential sale would have a detrimental effect on the City’s position in negotiations with a third party. Consultation with the City’s attorneys regarding legal issues associated with the potential sale involving 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 otherwise compromise the City’s legal position in any negotiations. DELIBERATED 144 City of Denton City Council Minutes May 11, 2021 Page 9 C. ID 21-928 Deliberations regarding Personnel Matters - Under Texas Government Code 551.074; and Consultation with Attorneys - Under Texas Government Code 551.071. Continue deliberations and discussions on the appointment, employment, duties, and retirement of the City Attorney, including the appointment and compensation of an interim City Attorney; consultation with the City’s attorneys regarding associated legal issues where public discussion associated with 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. DELIBERATED The item related to Individual Consideration Item 3.C (ID 21-929), scheduled for consideration at the Special Called Meeting to follow later in the day. D. ID 21-941 Deliberations regarding Personnel Matters - Under Texas Government Code Section 551.074. Deliberate and discuss the performance, employment, and duties of the Interim City Manager. DELIBERATED The closed meeting started at 7:10 p.m. and ended at 9:25 p.m. No votes or actions were taken during the closed meeting. SPECIAL CALLED MEETING - CONTINUED After determining that a quorum was present, the City Council of the City of Denton, Texas reconvened the Special Called Meeting on Tuesday, May 11, 2021, at 9:31 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas. PRESENT: Mayor Gerard Hudspeth, Mayor Pro Tem Paul Meltzer and Council Members Vicki Byrd, Brian Beck, Jesse Davis, Alison Maguire, and Deb Armintor ABSENT: None Note: Mayor Gerard Hudspeth, Mayor Pro Tem Paul Meltzer and Council Members Vicki Byrd, Brian Beck, Jesse Davis, Alison Maguire, and Deb Armintor participated in the work session, closed meeting and meeting via video/teleconference under the provisions allowed by the Texas Government Code Section 551.127 The posted agenda noted the registration process for public participation at this virtual meeting. However, there were no online registrations or call ins on any items on the agenda. 145 City of Denton City Council Minutes May 11, 2021 Page 10 1. CONSENT AGENDA The Consent Agenda consisted of Items 1.A-E. No items were pulled for Individual Consideration. Council Member Davis moved to adopt the Consent Agenda as presented. Motion seconded by Mayor Pro Tem Meltzer. Motion carried. AYES (7): Mayor Hudspeth, Mayor Pro Tem Meltzer and Council Members Byrd, Beck, Davis, Maguire, and Armintor NAYS (0): None A. ID 21-811 Consider the approval of the minutes for April 27 and May 3, 2021. APPROVED B. ID 21-846 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the approval of a fifth amendment to a Professional Services Agreement between the City of Denton and Teague Nall and Perkins, Inc., amending the contract approved by City Council on May 8, 2018, in the not-to-exceed amount of $300,050.00; amended by Amendment No. 1, approved by the City Manager; Amendment No. 2, approved by City Council on September 24, 2019, Amendment No. 3, approved by Purchasing, Amendment No. 4, approved by Purchasing; said fifth amendment to provide a conceptual site plan to include additional engineering, parking plan, and landscape design for the City of Denton Service Center Complex; providing for the expenditure of funds therefor; and providing an effective date (File 6581 - providing for an additional fifth amendment expenditure amount not-to-exceed $49,500.00, with the total contract amount not-to-exceed $513,490.00). ASSIGNED ORDINANCE NO. 21-846 C. ID 21-847 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the approval of Change Order No. 3 to the contract between the City of Denton and Quality Excavation, LLC, for the 2019 Street Reconstruction project for the City of Denton with geographical limits as follows: Hercules Lane from Locust Street to Stuart Road, Scripture Street from Thomas Street to Jagoe Street, Thomas Street from West Oak Street to Panhandle Street, and Windsor Drive from North Locust Street to Armstrong Street; providing for the expenditure of funds therefor; and providing an effective date (IFB 7237 - Change Order No. 3 in the not-to-exceed amount of $514,642.84 for a total contract award aggregated to $11,902,878.28). ASSIGNED ORDINANCE NO. 21-847 D. ID 21-848 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or their designee, to execute a contract with Green Frog Systems, Inc., through the Buy Board Cooperative Purchasing Network Contract # 592-19, for the purchase of lighting equipment for the trails located within Quakertown Park and Carl Young Sr. Park for the Parks and Recreation Department; 146 City of Denton City Council Minutes May 11, 2021 Page 11 providing for the expenditure of funds therefor; and providing an effective date (File 7644 - awarded to Green Frog Systems, Inc., with a term ending October 1, 2022, in the not-to-exceed amount of $171,488.00). ASSIGNED ORDINANCE NO. 21-848 E. ID 21-849 Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or their designee, to execute a contract with EZ Dock of Texas, L.P., through the Buy Board Cooperative Purchasing Network Contract # 592-19, for the replacement of the South Lakes Fishing Dock for the Parks and Recreation Department; providing for the expenditure of funds therefor; and providing an effective date (File 7663 - awarded to EZ Dock of Texas, L.P., in the not-to-exceed amount of $69,544.40). ASSIGNED ORDINANCE NO. 21-849 2. ITEM(S) FOR INDIVIDUAL CONSIDERATION - CONSIDERATION OF THE USE OF EMINENT DOMAIN TO CONDEMN REAL PROPERTY INTERESTS A. ID 21-739 Consider adoption of an ordinance of the City of Denton determining the public use, need, and necessity for the acquisition of various electric easements, generally located along Bernard Street, between West Highland Street and Collins Street, situated in the Alexander Hill Survey, Abstract 623 and the M.E.P. and P.R.R. Company Survey, Abstract 925, all in the city and county of Denton, Texas, and more particularly described in the attached Exhibit A (collectively, the "Property Interests"); authorizing the Interim City Manager and the City Attorney, or their respective designees, to acquire the Property Interests by agreement, if possible, including making all offers required by law; authorizing the use of the power of eminent domain to condemn the Property Interests if agreement cannot be reached; authorizing the City Attorney, or their designee, to file eminent domain proceedings, if necessary; authorizing the expenditure of funding; making findings; providing a savings clause; and providing an effective date. ASSIGNED ORDINANCE NO. 21-739 There were no online registrations or call-ins on the item. The item was presented and discussion followed. Following discussion, Mayor Pro Tem Meltzer moved that the City of Denton, after having made the offers required by State law, use the power of eminent domain, if needed, to acquire various electric easements situated in the Alexander Hill Survey, Abstract 623 and the M.E.P. and P.R.R. Company Survey, Abstract 925, all in the City of Denton, Denton County, Texas, and more particularly described on Exhibit A to the ordinance now under consideration and on the screen to be displayed to the audience, all of which are for a valid public use necessary for the expansion, construction, maintenance, and operation of the Hickory to Locust electric transmission line, to serve the public and citizens of the City of Denton. 147 City of Denton City Council Minutes May 11, 2021 Page 12 Each page of Exhibit A of the proposed ordinance was shown online prior to a second to the motion being called. Motion seconded by Council Member Davis. Motion carried. AYES (7): Mayor Hudspeth, Mayor Pro Tem Meltzer and Council Members Byrd, Beck, Davis, Maguire, and Armintor NAYS (0): None 3. ITEMS FOR INDIVIDUAL CONSIDERATION - CONTINUED A. ID 20-2530 Consider adoption of an ordinance approving an economic development agreement under Chapter 380 of the Local Government Code to promote economic development and to stimulate business activity and economic growth of the City of Denton, between the City of Denton and Ranchland Foods, LLC, regarding the expansion of operations and increase in the number of high wage or knowledge-based jobs in the City of Denton; authorizing the expenditure of funds therefor; and providing an effective date. The Economic Development Partnership Board recommends approval (8-0). ASSIGNED ORDINANCE NO. 20-2530 There were no online registrations or call-ins on the item. The item was presented and discussion followed. Following discussion, Mayor Pro Tem Meltzer moved to adopt the item as presented. Motion seconded by Council Member Maguire. Motion carried. AYES (7): Mayor Hudspeth, Mayor Pro Tem Meltzer and Council Members Byrd, Beck, Davis, Maguire, and Armintor NAYS (0): None B. ID 20-2551 Consider approval of a resolution of the City Council of the City of Denton nominating Ranchland Foods, LLC, to the Office of the Governor Economic Development and Tourism through the Economic Development Bank as an Enterprise Project; and providing an effective date. The Economic Development Partnership Board recommends approval (8-0). ASSIGNED RESOLUTION NO. 20-2551 There were no online registrations or call-ins on the item. The item was presented and discussion followed. Following discussion, Council Member Davis moved to adopt the item as presented. Motion seconded by Council Member Armintor. Motion carried. AYES (7): Mayor Hudspeth, Mayor Pro Tem Meltzer and Council Members Byrd, Beck, Davis, Maguire, and Armintor NAYS (0): None 148 City of Denton City Council Minutes May 11, 2021 Page 13 C. ID 21-929 Consider approval of a resolution of the City Council of the City of Denton, Texas, appointing an Interim City Attorney; setting forth the terms of the appointment; setting forth the interim city attorney’s salary; and providing an effective date. ASSIGNED RESOLUTION NO. 21-929 The item was discussed, in part, under Closed Meeting Item 1.C (ID 21-928) pursuant to Texas Government Code Sections 551.074 (Personnel Matter) and 551.071 (Consultation with Attorney) deliberated earlier in the day. There were no online registrations or call-ins on the item. The item was presented and discussion followed. Following discussion, Council Member Davis moved to adopt the item as presented. Motion seconded by Council Member Beck. Motion carried. AYES (7): Mayor Hudspeth, Mayor Pro Tem Meltzer and Council Members Byrd, Beck, Davis, Maguire, and Armintor NAYS (0): None 4. CONCLUDING ITEMS Council Members expressed items of interest. With no further business, the meeting was adjourned at 10:33 p.m. ____________________________________ ____________________________________ GERARD HUDSPETH ZOLAINA PARKER MAYOR DEPUTY CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON, TEXAS MINUTES APPROVED ON: ____________________________________ 149 Name Last Address City Agenda Item Position Method Comments Jerry Drake PO Box 2852 Denton 21-741 Support Online Congratulations to all newlyelected Council members;thank you tothose Councilmemberswhopreviously served the City in those positions;and best wishes to departing City Attorney Aaron Leal,as each of youcontinue your lives in service to the public May 11, 2021 City Council Special Called Meeting - EXHIBIT A Speaker Commentaries/RegistrationsOnline, Email, Phone NOTE: Comments for those citizens addressing the City Council are an abbreviated summary. Information contained within this exhibit includes only commentary for Open Microphone, Consent, Individual Consideration and Public Hearing Items. 150 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 21-792,Version:1 AGENDA CAPTION Consider adoption of an ordinance of the City of Denton granting the Denton Juneteenth Celebration Committee a noise exception pursuant to Section 17-20 of the City of Denton Code of Ordinances for the Denton Juneteenth Celebration, which will be held on Friday, June 18 through Saturday, June 19, 2021, at Fred Moore Park; granting an increase in sound levels from 70 to 75 dba and a variance in hours of operation for amplified sound levels for an outdoor event; and providing an effective date. City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™151 City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com AGENDA INFORMATION SHEET DEPARTMENT: Parks and Recreation DCM: David Gaines, Interim Deputy City Manager DATE: May 25, 2021 SUBJECT Consider adoption of an ordinance of the City of Denton granting the Denton Juneteenth Celebration Committee a noise exception pursuant to Section 17-20 of the City of Denton Code of Ordinances for the Denton Juneteenth Celebration, which will be held on Friday, June 18 through Saturday, June 19, 2021 at Fred Moore Park; granting an increase in sound levels from 70 to 75 dba and a variance in hours of operation for amplified sound levels for an outdoor event; and providing an effective date. BACKGROUND The 51st Annual Denton Juneteenth Celebration is organized by a non-profit volunteer committee that serves to actively preserve and promote the broad spectrum of African American heritage through educational and cultural activities that benefit the community. This free festival will include food, vendors, a virtual talent show, poetry slam, softball tournament, virtual freedom run, live parade, “Freedom to Grow” Hometown Heroes Recognition, virtual reading, children’s games, and live music entertainment. Event organizers anticipate 3,300 in attendance over the course of the two days. The Denton Juneteenth Celebration Committee requests an exception to the noise ordinance in sound levels from 70 to 75 dba and a variance in hours of operation for amplified sound levels on Friday, June 18, 2021 from 7:00 p.m. to 11:30 p.m. and Saturday, June 19, 2021 from 8:00 a.m. to midnight, at Fred Moore Park. On June 4, 2019, City Council approved an exception to the noise ordinance for the Denton Juneteenth Celebration under Ordinance 19-1187. RECOMMENDATION Staff recommends approval, as the event organizers have consistently demonstrated an ability to responsibly operate the Denton Juneteenth Celebration at Fred Moore Park at amplified sounds levels within the public interest and without materially disturbing persons of ordinary sensibilities in the immediate vicinity. ESTIMATED SCHEDULE OF PROJECT N/A OPERATIONAL IMPACT N/A FISCAL INFORMATION N/A 152 EXHIBITS Exhibit 1 – Agenda Information Sheet Exhibit 2 – Ordinance Respectfully submitted: Gary Packan, Parks and Recreation Prepared by: Jennifer Eusse, Special Event Supervisor, Parks and Recreation 153 ORDINANCE NO. _________ AN ORDINANCE OF THE CITY OF DENTON GRANTING THE DENTON JUNETEENTH CELEBRATION COMMITTEE A NOISE EXCEPTION PURSUANT TO SECTION 17-20 OF THE CITY OF DENTON CODE OF ORDINANCES FOR THE DENTON JUNETEENTH CELEBRATION, WHICH WILL BE HELD ON FRIDAY, JUNE 18 THROUGH SATURDAY, JUNE 19, 2021, AT FRED MOORE PARK; GRANTING AN INCREASE IN SOUND LEVELS FROM 70 TO 75 DBA AND A VARIANCE IN HOURS OF OPERATION FOR AMPLIFIED SOUND LEVELS FOR AN OUTDOOR EVENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, pursuant to Section 17-20 of the Code of Ordinances of the City of Denton, Denton Juneteenth Celebration Committee has made an application to the City Council for an exception to the provision restricting amplified sound levels for an outdoor event, in connection with the Denton Juneteenth Celebration, from the limitations imposed by Section 17-20 of the Code of Ordinances of the City of Denton, granting an increase in sound levels from 70 to 75 dba and a variance in hours of operation for amplified sound levels for an outdoor event on Friday, June 18, 2021, from 7:00 p.m. to 11:30 p.m. and Saturday, June 19, 2021, from 8:00 a.m. to midnight; and WHEREAS, upon prior application and approval by the City Council of the City of Denton, the Denton Juneteenth Celebration Committee has consistently demonstrated an ability to responsibly operate the Denton Juneteenth Celebration at Fred Moore Park, at amplified sound levels restricted in Section 17-20 of the Code of Ordinances of the City of Denton within the public interest, and without materially disturbing persons of ordinary sensibilities in the immediate vicinity thereof; and WHEREAS, based upon past history, the City Council of the City of Denton finds that granting a noise exception for this event, subject to the restrictions contained herein, would serve the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. Pursuant to Section 17-20 of the Code of Ordinances, Denton Juneteenth Celebration Committee is hereby granted an exception to said section's amplified sound prohibition subject to the following restrictions: 1. This exception to the limitations imposed by Section 17-20 of the Code of Ordinances of the City of Denton is granted only in connection with the operation of the Denton Juneteenth Celebration at Fred Moore Park. 2. Denton Juneteenth Celebration Committee agrees to take full responsibility for ensuring that the conditions of this exception are met and to take all reasonable measures necessary to avoid disturbing persons of ordinary sensibilities in the immediate vicinity of the event. 3 Denton Juneteenth Celebration Committee agrees to cease using amplified loudspeakers on Friday, June 18, 2021 at 11:30 p.m., and on Saturday, June 19, 2021 at midnight. 154 4. Under no circumstances shall the Denton Juneteenth Celebration Committee employ the use of amplified loudspeakers past 11:30 p.m. on Friday, June 18, or past midnight on Saturday, June 19. 5. Under no circumstances shall the Denton Juneteenth Celebration Committee employ the use of amplified loudspeakers that exceeds 75 dba for an outdoor event when measured from the perimeter of the source as measured by an approved measuring instrument. 6. This Ordinance confers no personal or property rights and may be amended, modified, suspended, or revoked in whole or in part at the will of the City Council of the City of Denton, without any advance warning, hearing, or compensation, for any reason at all, or for no reason. 7. This Ordinance shall be strictly construed as an exception granted pursuant to Section 17- 20 of the Code of Ordinances of the City of Denton. The City of Denton expressly reserves unto itself and all other persons any and all legal remedies, both civil and criminal, relating to excessive noise in connection with this annual event, and hereby disclaims any promissory, or equitable estoppel which might in any way impede the pursuit of such remedies by any person. SECTION 2. This Ordinance shall be effective immediately upon its passage and approval. The motion to approve this Ordinance was made by __________________________ and seconded by _________________________________. This Ordinance was passed and approved by the following vote [___ - ___]: Aye Nay Abstain Absent Mayor Gerard Hudspeth: ______ ______ ______ ______ Vicki Byrd, District 1: ______ ______ ______ ______ Brian Beck, District 2: ______ ______ ______ ______ Jesse L. Davis, District 3: ______ ______ ______ ______ Alison Maguire, District 4: ______ ______ ______ ______ Deb Armintor, At Large Place 5: ______ ______ ______ ______ Paul Meltzer, At Large Place 6: ______ ______ ______ ______ 155 PASSED AND APPROVED this the _________ day of ___________________, 2021. __________________________________ GERARD HUDSPETH, MAYOR ATTEST: ROSA RIOS, CITY SECRETARY BY: ________________________________ APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY BY: _____________________________________ 156 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 21-812,Version:1 AGENDA CAPTION Consider adoption of an ordinance of the City of Denton approving a City co-sponsorship to the Denton Juneteenth Celebration Committee in an amount not to exceed $26,525.00 of in-kind services and resources for the Denton Juneteenth Celebration, which will be held on Friday, June 18 through Saturday, June 19, 2021, at the Fred Moore Park; and providing an effective date. City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™157 City of Denton City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com AGENDA INFORMATION SHEET DEPARTMENT: Parks and Recreation DCM: David Gaines, Interim Deputy City Manager DATE: May 25, 2021 SUBJECT Consider adoption of an ordinance of the City of Denton approving a City co-sponsorship to the Denton Juneteenth Celebration Committee in an amount not to exceed $26,525.00 of in-kind services and resources for the Denton Juneteenth Celebration, which will be held on Friday, June 18 through Saturday, June 19, 2021 at the Fred Moore Park; and providing an effective date. BACKGROUND The 51st Annual Denton Juneteenth Celebration is organized by a non-profit volunteer committee that serves to actively preserve and promote the broad spectrum of African American heritage through educational and cultural activities that benefit the community. This event will be held at Fred Moore Park on Friday, June 18 from 7:00 p.m. to 10:00 p.m., and Saturday, June 19 from 8:00 a.m. to 10:00 p.m. This free festival will include food, vendors, a virtual talent show, poetry slam, softball tournament, virtual freedom run, live parade, “Freedom to Grow” Hometown Heroes Recognition, virtual reading, children’s games, and live music entertainment. Event organizers anticipate 3,300 in attendance over the course of the two days. The Denton Juneteenth Celebration Committee is requesting the City of Denton participate as a co-sponsor for in-kind services and resources for security, park maintenance support, Fire/EMS, use of Fred Moore Park and the Denton Civic Center parking lot, and use of city-owned flagpole for display of the Juneteenth flag. In exchange for the support, the City of Denton will be recognized as an event co-sponsor at a level equal to the combined value of in-kind services and waived fees. On June 16, 2020, City Council authorized a co-sponsorship not to exceed $3,310 under ordinance 20- 1149. In addition, on June 4, 2019, City Council authorized a co-sponsorship not to exceed $18,167 of in- kind services and resources. RECOMMENDATION Staff recommends approval and finds that the co-sponsorship of the Juneteenth Celebration serves a municipal and public purpose and is in the public’s interest. ESTIMATED SCHEDULE OF PROJECT N/A OPERATIONAL IMPACT N/A FISCAL INFORMATION The following table represent the value of fees waived not to exceed $26,525. 158 Parks and Recreation Department $1,425 Value based on rental fees for Fred Moore Park $100 Value based on cost of supplies needed to provide in-kind services $3,800 Value based on expenses for overtime personnel hours Police Department $18,200 Value based on expenses for regular and overtime personnel hours Fire Department $3,000 Value based on Fire/EMS services Including this event, the City Council will have authorized a total of $26,525 in co-sponsorship support for one community event in the current fiscal year. A provision added to the co-sponsorship letter alerts event organizers of their responsibility for damages caused to City property beyond normal wear and tear during the hosting of their events. All co- sponsorships where City facilities or services are requested for free or at a reduced rate require City Council approval. EXHIBITS Exhibit 1 – Agenda Information Sheet Exhibit 2 – Ordinance Respectfully submitted: Gary Packan, Parks and Recreation Prepared by: Jennifer Eusse, Special Event Supervisor, Parks and Recreation 159 ORDINANCE NO. ______________ AN ORDINANCE OF THE CITY OF DENTON APPROVING A CITY CO-SPONSORSHIP TO THE DENTON JUNETEENTH CELEBRATION COMMITTEE IN AN AMOUNT NOT TO EXCEED $26,525.00 OF IN-KIND SERVICES AND RESOURCES FOR THE DENTON JUNETEENTH CELEBRATION, WHICH WILL BE HELD ON FRIDAY, JUNE 18 THROUGH SATURDAY, JUNE 19, 2021, AT THE FRED MOORE PARK; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Denton Juneteenth Celebration Committee is requesting the City of Denton to participate as a co-sponsor for in-kind services and resources for the Annual Juneteenth Celebration (“the Event”), which will be held on Friday, June 18 through Saturday, June 19, 2021, at Fred Moore Park; and WHEREAS, the purpose of the Event is to actively preserve and promote the broad spectrum of the African American heritage through educational and cultural activities that include games and live music; and WHEREAS, the City of Denton has previously co-sponsored up to $15,150.00 of in-kind services and resources for the Event which included staff, equipment, supplies, security, park maintenance support, and use of Fred Moore Park for the two-day event; and WHEREAS, the Committee is currently requesting the City to co-sponsor up to $26,525.00 of in-kind services and resources for the Event, which will include park rental, use of the Denton Civic Center parking lot and city-owned flagpole, security, Fire/EMS, park maintenance staff, and supplies; and WHEREAS, in exchange for support, the City of Denton will be considered an event co-sponsor of the Juneteenth Celebration at a co-sponsorship level equal to the total value of in-kind services and resources provided herein; and WHEREAS, the City Council of the City of Denton finds that the co-sponsorship of the Juneteenth Celebration serves a municipal and public purpose, and is in the public’s interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this Ordinance are incorporated herein by reference. SECTION 2. The City Council of the City of Denton finds that it is in the public’s interest and benefit to the citizens of the City of Denton to participate as a co-sponsor at a level not to exceed $26,525.00 for in-kind services and resources, which include park rental, use of the Denton Civic Center parking lot and city-owned flagpole, security, Fire/EMS, park maintenance staff and supplies, of the Juneteenth Celebration which will be held on Friday, June 18 through 160 Saturday, June 19, 2021, at Fred Moore Park and that said participation as a co-sponsor is hereby approved. SECTION 3. This Ordinance shall be effective immediately upon its passage and approval. The motion to approve this Ordinance was made by __________________________ and seconded by _________________________________. This Ordinance was passed and approved by the following vote [___ - ___]: Aye Nay Abstain Absent Mayor Gerard Hudspeth: ______ ______ ______ ______ Vicki Byrd, District 1: ______ ______ ______ ______ Brian Beck, District 2: ______ ______ ______ ______ Jesse L. Davis, District 3: ______ ______ ______ ______ Alison Maguire, District 4: ______ ______ ______ ______ Deb Armintor, At Large Place 5: ______ ______ ______ ______ Paul Meltzer, At Large Place 6: ______ ______ ______ ______ PASSED AND APPROVED this the _________ day of ___________________, 2021. __________________________________ GERARD HUDSPETH, MAYOR ATTEST: ROSA RIOS, CITY SECRETARY BY: ________________________________ APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY BY: ___________________________________________ 161 162 Director Gary Packan Parks & Recreation April 30, 2021 163 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 21-956,Version:1 AGENDA CAPTION Consider adoption of an ordinance of the City of Denton,a Texas home-rule municipal corporation,authorizing the City Manager,or their designee,to execute a contract with Change Healthcare Technology Enabled Services,LLC,for the preparation and submittal of the Texas Ambulance Supplemental Payment Program reimbursement for the Fire Department;providing for the expenditure of funds therefor;and providing an effective date (RFP 7521 -awarded to Change Healthcare Technology Enabled Services,LLC,for a three (3) year,with the option for two (2)additional one (1)year extensions,in the total five (5)year not-to-exceed amount of $180,000.00). City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™164 City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: May 25, 2021 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or their designee, to execute a contract with Change Healthcare Technology Enabled Services, LLC, for the preparation and submittal of the Texas Ambulance Supplemental Payment Program reimbursement for the Fire Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 7521 – awarded to Change Healthcare Technology Enabled Services, LLC, for a three (3) year, with the option for two (2) additional one (1) year extensions, in the total five (5) not-to-exceed amount of $180,000.00). INFORMATION/BACKGROUND The City of Denton requested proposals for the preparation and submittal of the Texas Ambulance Supplemental Payment Program (TASPP) and associated services. Previously, the City of Denton was part of an interlocal contract with the City of Bryan and used Revenue Optimization Solutions, LLC, part of the Change Healthcare Team, to prepare and submit the TASPP submission. The TASPP 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 Denton Fire Department is eligible for a portion of the variance between the cost of providing ambulance services to Medicaid and uninsured patients, and what Medicaid pays. The annual reimbursement to the City is an average of $717,483. For supplemental payment recovery preparation and submission services, the City will pay a service fee equal to 4.0% of the reimbursement, which is 4% lower than the prior contract. Based on a historical spend and future projections the recommended not to exceed (NTE) for this contract is $180,000 for a total potential five (5) year contract. Participation in the TASPP will not be an option if the City of Denton is unable to establish a contract. This means a missed cost recovery opportunity for the general fund. Requests for Proposals was sent to 122 prospective suppliers, including 3 Denton firms, of this item. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. One (1) proposal was received and evaluated based upon published criteria including delivery, compliance with specifications, experience, and price. Based upon this evaluation, Change Healthcare Technology Enabled Services, LLC was ranked the highest and determined to be the best value for the City. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 165 NIGP Code Used for Solicitation: 946-(Service Only)-Financial Services Notifications sent for Solicitation sent in IonWave: 122 Number of Suppliers that viewed Solicitation in IonWave: 7 HUB-Historically Underutilized Business Invitations sent out: 5 SBE-Small Business Enterprise Invitations sent out: 30 Responses from Solicitation: 1 RECOMMENDATION Award a contract with Change Healthcare Technology Enabled Services, LLC, for the preparation and submittal of the Texas Ambulance Supplemental Payment Program reimbursement for the Fire Department, in a three (3) year, with the option for two (2) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $180,000.00. PRINCIPAL PLACE OF BUSINESS Change Healthcare Technology Enabled Services, LLC Alpharetta, GA ESTIMATED SCHEDULE OF PROJECT This is a three (3) 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 These services will be funded from Fire Department Operating Funds based on the reimbursement amount. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: LLC Members Exhibit 3: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Lindsey Garrison, 940-349-8844. Legal point of contact: Marcella Lunn at 940-349-8333. 166 167 ORDINANCE NO. _________ AN ORDINANCE OF THE CITY OF DENTON, A TEXAS HOME-RULE MUNICIPAL CORPORATION, AUTHORIZING THE CITY MANAGER, OR THEIR DESIGNEE, TO EXECUTE A CONTRACT WITH CHANGE HEALTHCARE TECHNOLOGY ENABLED SERVICES, LLC, FOR THE PREPARATION AND SUBMITTAL OF THE TEXAS AMBULANCE SUPPLEMENTAL PAYMENT PROGRAM REIMBURSEMENT FOR THE FIRE DEPARTMENT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (RFP 7521 AWARDED TO CHANGE HEALTHCARE TECHNOLOGY ENABLED SERVICES, LLC, FOR A THREE (3) YEAR, WITH THE OPTION FOR TWO (2) ADDITIONAL ONE (1) YEAR EXTENSIONS, IN THE TOTAL FIVE (5) YEAR NOT-TO-EXCEED AMOUNT OF $180,000.00). WHEREAS, the City has solicited, received, and evaluated competitive proposals for the Texas Ambulance Supplemental Payment Program; and WHEREAS, the City Manager, or a designated employee, has received, reviewed, and recommended that the herein described proposals are the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies, or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The items in the following numbered request for proposal for materials, equipment, supplies, ffice of the Purchasing Agent, are hereby accepted and approved as being the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals. RFP NUMBER CONTRACTOR AMOUNT 7521 Change Healthcare Technology $180,000.00 Enabled Services, LLC SECTION 2. That by the acceptance and approval of the above numbered items of the submitted proposals, the City accepts the offer of the persons submitting the proposals for such items and agrees to purchase the materials, equipment, supplies, or services in accordance with the terms, specifications, standards, quantities, and for the specified sums contained in the Proposal Invitations, Proposals, and related documents. SECTION 3. That should the City and person submitting approved and accepted items wish 168 to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the proposals, the City Manager, or their 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, standards, quantities, and specified sums contained in the Proposal and related documents herein approved and accepted. SECTION 4. The City Council of the City of Denton, hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under this ordinance to the City Manager of the City of Denton, or their 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. The motion to approve this ordinance was made by __________________________ and seconded by _________________________________. The ordinance was passed and approved by the following vote [___ - ___]: Aye Nay Abstain Absent Mayor Gerard Hudspeth: ______ ______ ______ ______ Vicki Byrd, District 1: ______ ______ ______ ______ Brian Beck, District 2: ______ ______ ______ ______ Jesse Davis, District 3: ______ ______ ______ ______ Alison Maguire, District 4: ______ ______ ______ ______ Deb Armintor, At Large Place 5: ______ ______ ______ ______ Paul Meltzer, At Large Place 6: ______ ______ ______ ______ PASSED AND APPROVED this the _______ day of ___________________________, 2021. __________________________________ GERARD HUDSPETH, MAYOR 169 ATTEST: ROSA RIOS, CITY SECRETARY BY: __________________________________ APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY BY: _________________________________ 170 Docusign City Council Transmittal Coversheet File Name Purchasing Contact City Council Target Date Piggy Back Option Contract Expiration Ordinance DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 Texas Ambulance Supplemental Payment Program (TASPP) 7521 Gabby Leeper Not Applicable RFP 171 Client: Denton Fire Department Contract Number: RMS162298 Page 1 of 19 MASTER SERVICES AGREEMENT This MASTER SERVICES AGREEMENT (this “MA”) is effective the latest date in the signature block below (the “Effective Date”) between Change Healthcare Technology Enabled Services, LLC (“Service Provider”) and City of Denton, Texas (“Client”), consisting of the MA Terms and Conditions and all Exhibits, Schedules, and Amendments. This MA governs all the Services described on a Service Schedule that is included in this MA during the term. Subject to the terms and conditions of this MA, Client agrees to purchase from Service Provider, and Service Provider agrees to provide Client with, the service(s) listed in the table below (individually, a “Service” and collectively, the “Services”). The description of each Service provided under this MA and any additional terms and conditions relating to such Service are set forth in the Service Schedule referenced in the table below and attached hereto. SERVICES SERVICE SCHEDULE Supplemental Payment Recovery Assistance Services (for Texas) Service Schedule 1 This MA is executed by an authorized representative of each party. CITY OF DENTON, TEXAS CHANGE HEALTHCARE TECHNOLOGY ENABLED SERVICES, LLC By:By: Printed Name: Printed Name: Title:Title: Date:Date: Tax ID: Client: 332 E. Hickory Street Denton, Texas 76201 Attention: Purchasing Manager With a copy to the City Attorney’s Office at 215 E. McKinney St., Denton, Texas 76201 Service Provider: 5995 Windward Parkway Alpharetta, Georgia 30005 Attention: President With a copy to the General Counsel at the same address yes no invoices sent to above address If no, list invoice address below: ATTEST: Rosa Rios, CITY SECRETARY 215 E. McKinney Street Denton, TX 76201 Attention: Aris Saucedo APPROVED AS TO LEGAL FORM: aris.saucedo@cityofdenton.com AARON LEAL, CITY ATTORNEY ________________________________ SIGNATURE PRINTED NAME _________________________________ TITLE DEPARTMENT THIS AGREEMENT HAS BEEN BOTH REVIEWED AND APPROVED as to financial and operational obligations and business terms. DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 SVP Revenue Cycle Management Services Jeffrey J. Wescott 4/30/2021 Fire Chief Fire Kenneth Hedges 172 Client: Denton Fire Department Contract Number: RMS162298 Page 2 of 19 MA TERMS AND CONDITIONS 1. TERM 1.1. This MA will begin on the Effective Date and continues until termination or expiration of each Schedule or amendment attached hereunder, unless earlier terminated as set forth herein. 1.2. Further, this MA will remain in force so long as there is an active Service Schedule(s). 2. SERVICES 2.1. Responsibilities. 2.1.1. Service Provider will perform the Services set forth on the applicable Service Schedule(s) on behalf of Client. 2.1.2. Service Provider agrees to perform the Services in accordance with all material applicable laws, rules and regulations, including applicable third-party payer policies and procedures. 2.1.3. Client will provide Service Provider with the necessary data in the proper format to enable Service Provider to properly furnish the Services and any information set forth in the Service Schedule(s) on a timely basis and in a format reasonably acceptable to Service Provider (the “Client Responsibilities”). Client authorizes, to the extent necessary, and directs Service Provider to release any or all necessary data and information (including, without limitation, “Individually Identifiable Health Information” as such term is defined in 45 C.F.R. § 160.103) received by Service Provider. Further, Client shall obtain all necessary consents and agreement from patients to ensure that Service Provider can comply with all applicable federal and state laws and regulations in providing the Services including, but not limited to, HIPAA (as defined herein), and the Telephone Consumer Protection Act (47 U.S.C. Section 227) and related regulations, as well as similar state laws and regulations governing telephone communications with consumers. Client shall ensure that all information it provides to Service Provider may be used by Service Provider for telephone contacts, including obtaining and maintaining a record of the consent Client has obtained from patients to receive telephone contacts from or on behalf of Client. 2.2. Operating Procedures. 2.2.1. Client acknowledges (i) that the Services or obligations of Service Provider hereunder may be dependent on Client providing access to data, information, or assistance to Service Provider from time-to-time (collectively, "Cooperation"); and (ii) that such Cooperation may be essential to the performance of the Services by Service Provider. The parties agree that any delay or failure by Service Provider to provide the Services hereunder which is caused by Client's failure to provide timely Cooperation, as reasonably requested by Service Provider, shall not be deemed a breach of Service Provider’s performance obligations under this MA. Therefore, Client hereby acknowledges that such variables are specifically excluded from Service Provider’s liability under this MA. 2.2.2. Client acknowledges that Service Provider has every incentive to perform the Services in a timely and proficient manner, but the timing and amount of collections generated by the Services are subject to numerous variables beyond Service Provider’s control including, without limitation, (i) the inability of third parties or systems to accurately process data, (ii) the transmission of inaccurate, incomplete or duplicate data to Service Provider, (iii) untimely reimbursements or payer bankruptcies, (iv) late charge documentation submissions by Client, or (v) managed care contract disputes between payers and Client. Therefore, Client hereby DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 173 Client: Denton Fire Department Contract Number: RMS162298 Page 3 of 19 acknowledges that such variables are specifically excluded from Service Provider’s liability under this MA. 2.2.3. Service Provider will be the sole provider of the Services to Client. 3. PAYMENT 3.1. Lockbox. Intentionally Omitted. 3.2. Invoicing Terms. Beginning on the Commencement Date (as defined in each Service Schedule), Client will pay all fees and other charges in U.S. dollars within 30 days of receipt of the invoice. Prior to the Commencement Date, Client further agrees to establish an automatic electronic funds debit arrangement for paying Service Provider’s invoices. 3.3. Late Payments. Service Provider may charge Client interest on any overdue fees, charges, or expenses at a rate equal to the lesser of 1.5% per month or the highest rate permitted by law. Client will reimburse Service Provider for all reasonable costs and expenses incurred (including reasonable attorneys’ fees) in collecting any overdue amounts. 3.4. Suspension of the Services. Service Provider reserves the right to suspend performance of the Services (i) for nonpayment of sums owed to Service Provider that are 31 days or more past due, where such breach is not cured within fifteen (15) days after notice to Client, or (ii) if such suspension is necessary to comply with applicable law or order of any governmental authority. 3.5. Fee Change. Either party may request a fee change in the event of a material change in legislation, Client’s business or other market conditions which result in a material change in either the cost associated with Service Provider’s provision of the Services or Service Provider’s anticipated revenues under this MA. In addition, Service Provider may request a fee change in the event (i) Client fails to disclose to Service Provider information relating to Client's practice, which information, if disclosed prior to the Effective Date, would have led Service Provider to propose a higher fee or (ii) any of the information provided by Client to Service Provider upon which the practice assumptions set forth in any applicable Service Schedule are based, is or becomes inaccurate. In the event either party requests a change in the Fee, the requesting party will provide the non-requesting party with ninety (90) days’ prior written notice (the “Notice Period”) of the requested change (the “Notice”) and such fee change will be effective at the end of the Notice Period. If the non-requesting party provides the requesting party written notice during any such Notice Period that any such fee change request is unacceptable to the non-requesting party, the MA will terminate at the end of the Notice Period and the Fee in place at that time will remain in effect until the end of the Workout Period, if any. 4. GENERAL TERMS 4.1. Confidentiality and Proprietary Rights. 4.1.1. Use and Disclosure of Confidential Information. Each party may disclose to the other party confidential information. Except as expressly permitted by this MA, neither party will: (i) disclose the other party’s confidential information except (a) 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 MA, or (b) to the extent required by law following prompt notice of such obligation to the other party, or (ii) use the other party’s confidential information for any purpose other than performing its obligations under this MA. Service Provider understands that this Agreement is subject to the Texas Open Records Act and that certain information may be subject to release in accordance with the provisions of the Act. Client will not disclose nor cause its employees, agents and representatives to disclose to anyone Service Provider’s business practices, trade secrets or Confidential Information, except as legally required. 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. Notwithstanding the foregoing, Client agrees that Service Provider may de-identify Client information consistent with DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 174 Client: Denton Fire Department Contract Number: RMS162298 Page 4 of 19 the HIPAA Privacy Rule and use Client information and data from transactions received or created by Service Provider for statistical compilations or reports, research and for other purposes (the “Uses”). Such Uses shall be the sole and exclusive property of Service Provider. 4.1.2. Use and Disclosure of Billing Software. (a) Client agrees that the software Service Provider uses to perform the Services (the “Billing System”) is proprietary and confidential and that Service Provider is the sole owner or licensee of the Billing System. All report formats and reports generated by the Billing System are produced and will be made available to Client for internal operational purposes only. (b) Client will not disclose or cause its employees, agents and representatives to disclose to anyone the Billing System or any information it receives about the Billing System, except as legally required. (c) Access to Software. If Service Provider grants Client or its employees or agents “read-only” or “direct access” to the Billing System or other software provided by Service Provider by any means, Client agrees to the End User Terms and Conditions set forth in Exhibit C to this MA. 4.1.3. Period of Confidentiality. The restrictions on use, disclosure and reproduction of confidential information set forth in Section 4.1, which are a “trade secret” (as that term is defined under applicable law) will be perpetual, and with respect to other confidential information such restrictions will remain in full force and effect during the term of this MA and for three years following the termination of this MA. Following the termination of this MA, 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. 4.1.4. Injunctive Relief. The parties agree that the breach, or threatened breach, of any provision of this Section 4.1 may cause irreparable harm without adequate remedy at law. Upon any such breach or threatened breach, the breached 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 4.1.4 will limit any other remedy available to either party. 4.1.5. Retained Rights. Client’s rights in the Services will be limited to those expressly granted in this MA. Service Provider 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 (i) made or developed at Client’s request, (ii) made or developed in cooperation with Client, or (iii) made or developed by Client, will be solely owned by Service Provider or its suppliers. Service Provider retains title to all material, originated or prepared for Client under this MA. Client is granted a license to use such materials in accordance with this MA. For purposes of clarification, all data used in the reports prepared by Service Provider in the performance of Services or Client, and all rights and interests therein, shall be the sole property of Client. The form of the reports, work product, including processes and templates used to prepare such reports shall be the sole property of Service Provider. 4.2. Termination. 4.2.1. Termination for Default. Either party may terminate this MA by providing 30 days prior written notice of termination to the other party, if the other party (i) materially breaches this MA and fails to remedy or commence reasonable efforts to remedy such breach within 15 days, and materially cure within 45 days, after receiving notice of the breach from the terminating party, (ii) materially breaches this MA in such a DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 175 Client: Denton Fire Department Contract Number: RMS162298 Page 5 of 19 way that cannot be remedied, (iii) commences dissolution proceedings or (iv) ceases to operate in the ordinary course of business. 4.2.2. Intentionally Omitted. 4.2.3. Termination by Service Provider. (a) Service Provider may immediately terminate this MA without incurring any liability to Client if Service Provider does not receive the clean test file or completed implementation discovery packet within three months of the Commencement Date of a Service Schedule and Client will pay Service Provider for all expenses incurred prior to the termination date; or (b) If Service Provider uses third-party software to provide the Services, Client agrees to execute additional documents other than the MA, including but not limited to nondisclosure or proprietary material documentation that is reasonably required by Service Provider or any other third-party software licensor. If Client is unwilling to sign such additional documentation, Service Provider may terminate this MA 90 days after Service Provider presented the documentation to Client. 4.2.5. 4.2.4. Termination by Client. Client may terminate this MA immediately if Service Provider fails to cure any material breach of the “Business Associate Agreement” (set forth on Exhibit A to this MA) within 30 days of Service Providers receipt of written notice from Client specifying the breach. Service Provider acknowledges and agrees that the awarding or continuation of this MA is dependent upon the availability of funding. The Client’s payment obligations are payable only and solely from funds appropriated and available for this MA. To the extent known to Client, Client will provide Service Provider a minimum of 30 days’ written notice prior to termination of funding, thereafter,the absence of appropriated or other lawfully available funds shall render the MA null and void to the extent funds are not appropriated or available. Client shall be responsible for all services provided through the date of termination.Termination Procedures – Service Provider Billing System. Intentionally Omitted. 4.2.6. Survival of Provisions. Those provisions of this MA that, by their nature, are intended to survive termination or expiration of this MA will remain in full force and effect, including, without limitation, the following Sections of this MA: 3 (Payment), 4.1 (Confidentiality), 4.3 (Limitation of Liability), 4.5 (Civil Monetary Fine or Penalty), 4.6 (Audits), 4.7 (Warranties), and 4.10 – 4.26 (Governing Law – Entire Agreement). 4.3. Limitation of Liability. 4.3.1. Total Damages. Service Provider’s total cumulative liability in connection with, or related to this MA will be limited to the sum of fees paid by Client to Service Provider during the 12-month period preceding the date of the claim, as applicable, whether based on breach of contract, warranty, tort, product liability, or otherwise. Service Provider will have no liability for systems beyond the control of Service Provider. 4.3.2. Exclusion of Damages. IN NO EVENT WILL SERVICE PROVIDER BE LIABLE TO CLIENT UNDER, IN CONNECTION WITH, OR RELATED TO THIS MA FOR ANY SPECIAL, INCIDENTAL, INDIRECT, OR CONSEQUENTIAL DAMAGES, INCLUDING, BUT NOT LIMITED TO, LOST PROFITS OR LOSS OF GOODWILL, WHETHER BASED ON BREACH OF CONTRACT, WARRANTY, TORT, PRODUCT LIABILITY, OR OTHERWISE, AND WHETHER OR NOT SERVICE PROVIDER HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. SERVICE PROVIDER UNDERSTANDS AND ACKNOWLEDGES THAT THE CLIENT SHALL HAVE NO LIABILITY TO SERVICE PROVIDER BEYOND THE TYPE OR AMOUNT OF DAMAGES THAT IS PROVIDED BY AND CONSISTENT DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 176 Client: Denton Fire Department Contract Number: RMS162298 Page 6 of 19 WITH THE PROVISIONS OF § 271.153 OF THE TEXAS LOCAL GOVERNMENT CODE. 4.3.3. Material Consideration. THE PARTIES ACKNOWLEDGE THAT THE FOREGOING LIMITATIONS ARE A MATERIAL CONDITION FOR THEIR ENTRY INTO THIS MA. 4.4. Internet Disclaimer. CERTAIN PRODUCTS AND SERVICES PROVIDED BY SERVICE PROVIDER UTILIZE THE INTERNET. SERVICE PROVIDER DOES NOT WARRANT THAT SUCH SERVICES WILL BE UNINTERRUPTED, ERROR-FREE, OR COMPLETELY SECURE. SERVICE PROVIDER DOES NOT AND CANNOT CONTROL THE FLOW OF DATA TO OR FROM SERVICE PROVIDER’S OR CLIENT’S NETWORK AND OTHER PORTIONS OF THE INTERNET. SUCH FLOW DEPENDS IN LARGE PART ON THE INTERNET SERVICES PROVIDED OR CONTROLLED BY THIRD PARTIES. ACTIONS OR INACTIONS OF SUCH THIRD PARTIES CAN IMPAIR OR DISRUPT CLIENT’S CONNECTIONS TO THE INTERNET (OR PORTIONS THEREOF). ACCORDINGLY, SERVICE PROVIDER DISCLAIMS ANY AND ALL LIABILITY RESULTING FROM OR RELATED TO THE ABOVE EVENTS. 4.5. Civil Monetary Fine or Penalty. Service Provider will pay any civil or monetary fine or penalty and interest (but not overpayments) assessed against Client by Medicare, Medicaid or other third-party health insurance provider arising out of Service Provider’s sole negligence or willful misconduct in the performance of its obligations under this MA. Overpayments received by Client are the sole responsibility of Client. 4.6. Audits. 4.6.1. Internal Audit by Client. Client may use its own internal resources (“Internal Auditors”) to perform audits of Service Provider’s accuracy and correctness of the accounting and internal controls performed and maintained by Service Provider. Service Provider will provide the Internal Auditors with information that the Internal Auditor determines to be reasonably necessary to perform and complete the audit procedures. Client agrees that an audit conducted under this section will be conducted at such times and in a manner that avoids undue disruption of Service Provider’s operations. 4.6.2. Third-Party Audit by Client. Client may engage, at its own expense, independent, external, third-party auditors (“Third-Party Auditors”) to perform audits of Service Provider’s accuracy and correctness of the accounting and internal control performed and maintained by Service Provider. If Client engages Third-Party Auditors, who perform, or are associated with a group who performs, billing and accounts receivable management services substantially similar to any of the Services identified on any Service Schedule to this MA, such Third-Party Auditors may not visit Service Provider’s processing facility or audit the actual billing and collection process. Service Provider will provide the information that the Third-Party Auditors determine to be reasonably necessary to perform and complete all audit procedures. The Third-Party Auditors shall execute Service Provider’s “Confidentiality Agreement”, substantially in the form attached hereto as Exhibit B, prior to the start of the audit. Client agrees that an audit conducted under this section will be conducted at such times and in a manner that avoids undue disruption of Service Provider’s operations. 4.6.3. Books and Records. If required by Section 952 of the Omnibus Reconciliation Act of 1980, 42 U.S.C. Section 1395x(v)(I)(i) and (ii), for a period of four years after the Services are furnished, the parties agree to make available, upon the written request of the Secretary of Health and Human Services, the Comptroller General, or their representatives, this MA and such books, documents, and records as may be DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 177 Client: Denton Fire Department Contract Number: RMS162298 Page 7 of 19 necessary to verify the nature and extent of the Services with a value or cost of $10,000 or more over a twelve month period. 4.7. Warranties 4.7.1. Service Provider. (a) Prior to the Commencement Date. Unless Service Provider provided Services prior to the Commencement Date of any Service Schedule, Client will be responsible for all matters related to Client's practice prior to the Commencement Date, including, but not limited to, Client's billings, collections, third party reimbursements, accounts receivable and credit balances. (b) Disclaimer of Warranties. Service Provider disclaims any warranties or representations pertaining to the timing and amount of collections generated by the Services. Client acknowledges and agrees that Client is solely responsible for refunding any overpayments and processing any unclaimed property payments. Service Provider will provide Client with written notice of unresolved credit balances of which Service Provider becomes aware (such as overpayments or unclaimed property). 4.7.2. Client. (a) Charges and Information. (i) Client represents and warrants that it will forward to Service Provider (pursuant to the applicable Service Schedule[s]) only charges for which Client is entitled to bill. Client agrees to monitor and to refrain from knowingly submitting false or inaccurate information, charges, documentation or records to Service Provider and to ensure that the documentation provided by Client or an agent of Client to Service Provider supports the medical services provided by Client. Client acknowledges and agrees it has an obligation to report and correct any credible evidence of deficiencies on the part of Client. Client also acknowledges that Service Provider does not make a determination of medical necessity for any claims. (ii) Client acknowledges and agrees that Service Provider is not a collection agency. Client represents and warrants that any debt or account referred to Service Provider pursuant to this MA is not in default or delinquent or has not been written off as bad debt. If any accounts are found to be written off, in default or otherwise delinquent, Client agrees to immediately recall those accounts from Service Provider’s responsibility under this MA. (b) Release of Information. Client represents and warrants that Client has obtained a release of information and insurance assignment of benefits from all individuals for whom Client is submitting charges to Service Provider for the provision of the Services and will immediately notify Service Provider if such release of information and insurance assignment of benefits is changed or revoked or if such individual refused/failed to execute such documents. Client further agrees to provide a copy of such signed documents upon Service Provider's request. The term “individuals” in this Section refers to the individual physicians/practitioners, or group members, on whose behalf the Client is directing Service Provider to submit claims. 4.8. Business Associate. The parties agree to the obligations set forth in Exhibit A. 4.9. Exclusion From Federal Healthcare Programs. Each party warrants that it is not currently listed by a Federal agency as excluded, debarred, or otherwise ineligible for participation in any Federal health care program. Each party agrees that it will not employ, contract with, or otherwise use the services of any individual whom it knows or should have known, after DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 178 Client: Denton Fire Department Contract Number: RMS162298 Page 8 of 19 reasonable inquiry, (i) has been convicted of a criminal offense related to health care (unless the individual has been reinstated to participation in Medicare and all other Federal health care programs after being excluded because of the conviction), or (ii) is currently listed by a Federal agency as excluded, debarred, or otherwise ineligible for participation in any Federal health care program. Each party agrees that it will immediately notify the other in the event that it, or any person in its employ, has been excluded, debarred, or has otherwise become ineligible for participation in any Federal health care program. Each party agrees to continue to make reasonable inquiry regarding the status of its employees and independent contractors on a regular basis by reviewing the General Services Administration’s List of Parties Excluded from Federal Programs and the HHS/OIG List of Excluded Individuals/Entities. 4.10. Governing Law. This MA is governed by and will be construed in accordance with the laws of the State of Texas, exclusive of its rules governing choice of law and conflict of laws and any version of the Uniform Commercial Code. 4.11. Claims Period. Any action relating to this MA and any claim for damages, including, but not limited to, a claim for recurring damages arising out of the same cause or event, other than collection of outstanding payments, must be commenced within one year after the date upon which the cause of action occurred. 4.12. Assignment and Subcontracts. Neither party will assign this MA without the prior written consent of the other party, which will not be unreasonably withheld, delayed or conditioned. Service Provider may, upon notice to Client, assign this MA to any affiliate or to any entity resulting from the transfer of all or substantially all of Service Provider’s assets or capital stock or from any other corporate reorganization. Service Provider may subcontract its obligations under this MA with notice to and the consent of the Client. 4.13. Severability. If any part of a provision of this MA 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 MA will not be affected. 4.14. Notices. All notices relating to the parties’ legal rights and remedies under this MA will be provided in writing and will reference this MA. Such notices will be deemed given if sent by: (i) postage prepaid registered or certified U.S. Post mail, then five working days after sending; or (ii) commercial courier, then at the time of receipt confirmed by the recipient to the courier on delivery. All notices to a party will be sent to its address set forth on the cover page hereto, or to such other address as may be designated by that party by notice to the sending party. 4.15. Waiver. Failure to exercise or enforce any right under this MA will not act as a waiver of such right. 4.16. Force Majeure. Except for the obligation to pay money, a party will not be liable to the other party for any failure for performance under the MA should it be prevented from performance by an act of war, order of legal authority, act of God, or other unavoidable cause not attributable to the fault or negligence of Client or Service Provider. In the event of an occurrence under this Section, Service Provider will be excused from any further performance or observance of the requirements so affected for as long as such circumstances prevail and Service Provider continues to use commercially reasonable efforts to recommence performance or observance whenever and to whatever extent possible without delay. Service Provider shall immediately notify the Client Procurement Manager by telephone (to be confirmed in writing) and describe at a reasonable level of detail the circumstances causing the non-performance or delay in performance. 4.17. Amendment. This MA may be modified, or any rights under it waived, only by a written document executed by the authorized representatives of both parties. To avoid doubt, this MA may not be amended via electronic mail or other electronic messaging service. 4.18. No Third-Party Beneficiaries. Except as specifically set forth in a Service Schedule, nothing in this MA will confer any right, remedy, or obligation upon anyone other than Client and Service Provider. DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 179 Client: Denton Fire Department Contract Number: RMS162298 Page 9 of 19 4.19. Relationship of Parties. Each party is an independent contractor of the other party. This MA 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. 4.20. Non-solicitation of Employees. During the term of this MA and for a period of 12 months following the termination of this MA, each party agrees not to employ, contract with for services, solicit for employment on its own behalf or on behalf of any third party, or have ownership in any entity which employs or solicits for employment, any individual who (i) was an employee of the other or its parent, affiliates or subsidiaries at any time during the preceding 12 months and (ii) was materially involved in the provision or receipt of the Services hereunder without the prior written consent of the other party. Notwithstanding the foregoing, upon any termination of this MA, Client may rehire any individual who was employed by Client on the Effective Date, and who was hired by Service Provider on or after such date. Each party agrees that the other party does not have an adequate remedy at law to protect its rights under this Section and agrees that the non-defaulting party will have the right to injunctive relief from any violation or threatened violation of this Section. 4.21. Publicity. The parties may publicly announce that they have entered into this MA and describe their relationship in general terms, excluding financial terms. The parties will not make any other public announcement or press release regarding this MA or any activities performed hereunder without the prior written consent of the other party. 4.22. Construction of this MA. This MA will not be presumptively construed for or against either party. Section titles are for convenience only. As used in this MA, “will” means “shall,” and “include” means “includes without limitation.” The parties may execute this MA in one or more counterparts, each of which will be deemed an original and one and the same instrument. 4.23. Conflict Between MA and Schedules. In the event of any conflict or inconsistency in the interpretation of this MA (including its Service Schedules and all Amendments executed hereunder), such conflict or inconsistency will be resolved by giving precedence according to the following order: (a) the Amendment, (b) the Service Schedule, (c) the MA Terms and Conditions and Exhibits, (d) Documents Incorporated by Reference. 4.24. Section Headings. The Section headings used herein are for convenience only and shall not be used in the interpretation of this MA. 4.25. Authority. Service Provider and Client represent and warrant that they have the full power and authority to enter into this MA, that there are no restrictions or limitations on their ability to perform this MA, and that the person executing this MA has the full power and authority to do so. 4.26. Entire Agreement. This MA, including Service Schedules, Exhibits, Amendments, and Documents Incorporated by Reference, is the complete and exclusive agreement between the parties with respect to the subject matter hereof, superseding and replacing all prior agreements, communications, and understandings (written and oral) regarding its subject matter. DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 180 Client: Denton Fire Department Contract Number: RMS162298 Page 10 of 19 EXHIBIT A BUSINESS ASSOCIATE AGREEMENT This Business Associate Agreement (“Agreement”) is entered into by and between Service Provider (“Business Associate”)and Client (“Covered Entity”). Business Associate and Covered Entity may be individually referred to as a “Party” and, collectively, the “Parties” in this Agreement. This Agreement shall be incorporated into and made part of the Underlying Agreement (as defined below). STATEMENT OF PURPOSE Pursuant to the Underlying Agreement, Business Associate provides services to Covered Entity and Covered Entity discloses certain information, including PHI (as defined below), to Business Associate. The purpose of this Agreement is to protect the privacy and provide for the security of such PHI in compliance with the Privacy Rule and Security Rule. SECTION 1: DEFINITIONS “Electronic Protected Health Information” or “Electronic PHI” 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 Business Associate creates, receives, maintains or transmits from or on behalf of Covered Entity. “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 “PHI” 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 Business Associate from or on behalf of Covered Entity. “Security Rule” will mean the Security Standards at 45 C.F.R. Part 160 and Part 164, Subparts A and C “Underlying Agreement” will mean the applicable written services agreement(s) between Covered Entity and Business Associate under which Covered Entity may disclose PHI to Business Associate. Capitalized Terms. Capitalized terms used in this Agreement and not otherwise defined herein will have the meanings set forth in the Privacy Rule and the Security Rule which definitions are incorporated in this Agreement by reference. 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 Agreement, Business Associate may use or disclose PHI to perform functions, activities or services for, or on behalf of, Covered Entity as specified in the Underlying Agreement, provided that such use or disclosure would not violate the Privacy Rule if done by Covered Entity. 2.2 Permitted Uses of PHI by Business Associate. Except as otherwise limited in this Agreement, Business Associate may use PHI for the proper management and administration of Business Associate or to carry out the legal responsibilities of Business Associate. 2.3 Permitted Disclosures of PHI by Business Associate. Except as otherwise limited in this Agreement, Business Associate may disclose PHI for the proper management and administration of Business Associate, provided that the disclosures are Required by Law, or Business Associate 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 Business Associate pursuant to this Agreement), and that the person agrees to notify Business Associate of any instances in which it is aware that the confidentiality of the information has been breached. DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 181 Client: Denton Fire Department Contract Number: RMS162298 Page 11 of 19 2.4 Data Aggregation. Except as otherwise limited in this Agreement, Business Associate may use PHI to provide Data Aggregation services for the Health Care Operations of the Covered Entity as permitted by 45 C.F.R. § 164.504(e)(2)(i)(B). 2.5 De-identified Data. Business Associate 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 BUSINESS ASSOCIATE 3.1 Appropriate Safeguards. Business Associate will use appropriate administrative, physical, and technical safeguards to 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 Agreement. Except as expressly provided in the Underlying Agreement or this Agreement, Business Associate will not assume any obligations of Covered Entity under the Privacy Rule. To the extent that Business Associate is to carry out any of Covered Entity’s obligations under the Privacy Rule, Business Associate will comply with the requirements of the Privacy Rule that apply to Covered Entity in the performance of such obligations. 3.2 Reporting of Improper Use or Disclosure, Security Incident or Breach. Business Associate will report to Covered Entity any use or disclosure of PHI not permitted under this Agreement, Breach of Unsecured PHI or any Security Incident, without unreasonable delay, and in any event no more than fourteen (14) days following discovery; provided, however, that the Parties acknowledge and agree that this Section constitutes notice by Business Associate to Covered Entity 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 Business Associate’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. Business Associate’s notification to Covered Entity of a Breach will comply with the requirements set forth in 45 C.F.R. § 164.404. 3.3 Business Associate’s Agents. Business Associate will enter into a written agreement with any agent or subcontractor that creates, receives, maintains or transmits PHI on behalf of Business Associate for services provided to Covered Entity, providing that the agent agrees to restrictions and conditions that are no less restrictive than those that apply through this Agreement to Business Associate with respect to such PHI. 3.4 Access to PHI. To the extent Business Associate agrees in the Underlying Agreement to maintain any PHI in a Designated Record Set, Business Associate agrees to make such information available to Covered Entity pursuant to 45 C.F.R. § 164.524, within ten (10) business days of Business Associate’s receipt of a written request from Covered Entity; provided, however, that Business Associate 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 Covered Entity. 3.5 Amendment of PHI. To the extent Business Associate agrees in the Underlying Agreement to maintain any PHI in a Designated Record Set, Business Associate agrees to make such information available to Covered Entity for amendment pursuant to 45 C.F.R. § 164.526 within ten (10) business days of Business Associate’s receipt of a written request from Covered Entity. 3.6 Documentation of Disclosures. Business Associate will document disclosures of PHI and information related to such disclosures as would be required for Covered Entity to respond to a request by an Individual for an accounting of disclosures of PHI in accordance with 45 C.F.R. § 164.528. 3.7 Accounting of Disclosures. Business Associate will provide to Covered Entity, within twenty (20) business days of Business Associate’s receipt of a written request from Covered Entity, information collected in accordance with Section 3.6 of this Agreement, to permit Covered Entity to respond to a request by an Individual for an accounting of disclosures of PHI in accordance with 45 C.F.R. § 164.528. 3.8 Governmental Access to Records. Business Associate will make its internal practices, books and records relating to the use and disclosure of PHI received from, or created or received by Business Associate DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 182 Client: Denton Fire Department Contract Number: RMS162298 Page 12 of 19 on behalf of, Covered Entity available to the Secretary for purposes of the Secretary determining compliance with the Privacy Rule and the Security Rule. 3.9 Mitigation. To the extent practicable, Business Associate will cooperate with Covered Entity’s efforts to mitigate a harmful effect that is known to Business Associate of a use or disclosure of PHI by Business Associate that is not permitted by this Agreement. 3.10 Minimum Necessary. Business Associate 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. SECTION 4: CHANGES TO PHI AUTHORIZATIONS Covered Entity will notify Business Associate fifteen (15) days, if practicable, prior to the effective date of (1) any limitation(s) in its notice of privacy practices in accordance with 45 C.F.R. § 164.520, (2) any changes in, or revocation of, permission by an Individual to use or disclose PHI, or (3) any restriction to the use or disclosure of PHI that Covered Entity has agreed to in accordance with 45 C.F.R. § 164.522. Covered Entity will make such notification to the extent that such limitation, restriction, or change may affect Business Associate’s use or disclosure of PHI. SECTION 5: TERM AND TERMINATION 5.1 Term. The term of this Agreement will commence as of the Commencement Date. The Agreement term will be for three (3) years, with the option for two (2) additional, automatic, one (1) year extensions, in a total five (5) year period. 5.2 Termination for Cause. Upon either Party’s knowledge of a material breach by the other Party of this Agreement, such Party may terminate this Agreement 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 Agreement and the affected underlying product or service if the breaching party does not cure the breach or if cure is not possible. 5.3 Effect of Termination. 5.3.1 Except as provided in Section 5.3.2, upon termination of the Underlying Agreement or this Agreement for any reason, Business Associate will return or destroy all PHI received from Covered Entity, or created or received by Business Associate on behalf of Covered Entity, at Covered Entity’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 Business Associate. 5.3.2 If it is infeasible for Business Associate to return or destroy the PHI upon termination of the Underlying Agreement or this Agreement, Business Associate will: (a) extend the protections of this Agreement 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 Business Associate maintains such PHI. 5.3.3 The respective rights and obligations of Business Associate under Section 5.3 of this Agreement will survive the termination of this Agreement and the Underlying Agreement. SECTION 6: COOPERATION IN INVESTIGATIONS The Parties acknowledge that certain breaches or violations of this Agreement 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 DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 183 Client: Denton Fire Department Contract Number: RMS162298 Page 13 of 19 connection with any request by a federal or state governmental authority for additional information and documents or any governmental investigation, complaint, action or other inquiry. SECTION 7: COMPLIANCE WITH LAW Business Associate will comply with all applicable federal privacy and security laws governing PHI, as they may be amended from time to time. SECTION 8: AMENDMENT This Agreement 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 or the Security Rule is amended in a manner that changes the obligations of Business Associate or Covered Entity that are embodied in terms of this Agreement, then the Parties agree to negotiate in good faith appropriate non-financial terms or amendments to this Agreement to give effect to such revised obligations. SECTION 9: GENERAL This Agreement is governed by, and will be construed in accordance with, the laws of the State that govern the Underlying Agreement. Covered Entity will not assign this Agreement without the prior written consent of Business Associate, which will not be unreasonably withheld. All notices relating to the Parties’ legal rights and remedies under this Agreement will be provided in writing to a Party, will be sent to its address set forth in the Underlying Agreement, or to such other address as may be designated by that Party by notice to the sending Party, and will reference this Agreement. Nothing in this Agreement will confer any right, remedy, or obligation upon anyone other than Covered Entity and Business Associate. DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 184 Client: Denton Fire Department Contract Number: RMS162298 Page 14 of 19 EXHIBIT B CONFIDENTIALITY AGREEMENT Service Provider and City of Denton, Texas (the “Client”) have entered into an agreement whereby Service Provider provides certain services (the “Services”) to Client (the “Master Services Agreement”). Client has entered into a contractual relationship with _____[insert name of person/entity performing the audit]____ (“Recipient”) and instructs Service Provider to allow Recipient to review certain information in Service Provider’s possession regarding Client’s business and accounts receivable billing and collections performed by Service Provider (the “Client Proprietary Information”). Therefore, in consideration of the mutual covenants and conditions contained in this Confidentiality Agreement (the “Confidentiality Agreement”), Recipient and Client agree as follows: A. During the course of Recipient’s examination and review of Client Proprietary Information, Recipient may be exposed to or review certain proprietary information regarding Service Provider (“Service Provider Proprietary Information”). Service Provider Proprietary Information refers to any and all data and information relating to the business of Service Provider which has value to Service Provider and is not generally known by its competitors or the public, including, without limitation, financial information, inventions, methods, techniques, actual or potential customers and suppliers, the Master Services Agreement, Service Provider’s business practices or other trade secrets or confidential information of Service Provider, all report formats, and existing and future products and computer systems and software. Recipient acknowledges and agrees that all Service Provider Proprietary Information and all physical embodiments thereof are confidential to Service Provider and are and will remain the sole and exclusive property of Service Provider. All Service Provider Proprietary Information acquired by Recipient will be kept strictly confidential and will not be disclosed to any other person or entity (including any entity affiliated with or any division of Recipient). B. Service Provider Proprietary Information does not include information which (i) is publicly known or which becomes publicly known through no act or failure to act on the part of Recipient; (ii) is lawfully obtained by Recipient from any third party entitled to disclose such information; (iii) is in the lawful possession of Recipient prior to such information having been disclosed to Recipient by Service Provider; or (iv) is independently developed by Recipient. C. Recipient further agrees that during Recipient’s engagement by Client and for a period of one (1) year following any termination of Recipient’s engagement for whatever reason, Recipient will not, directly or indirectly, on Recipient’s own behalf or in the service of, or on behalf of any other individual or entity, divert, solicit or hire away, or attempt to divert, solicit or hire away, to or for any individual or entity, any person employed by Service Provider, whether or not such employee is a full-time employee, temporary employee, leased employee or independent contractor of Service Provider, whether or not such employee is employed pursuant to written agreement and whether or not such employee is employed for a determined period or at-will. D. Recipient acknowledges that great loss and irreparable damage would be suffered by Service Provider if Recipient should breach or violate the terms of this Confidentiality Agreement. In the event Recipient breaches or violates this Confidentiality Agreement, Recipient agrees that Service Provider would not have an adequate remedy at law and, therefore, that Service Provider would be entitled to a temporary restraining order and permanent injunction to prevent a breach of any of the terms or provisions contained in this Confidentiality Agreement, in addition to any monetary damages that may be available at law or equity. Recipient’s obligations under this Confidentiality Agreement will survive indefinitely. E. Recipient represents and warrants that (i) it has the full power and authority to enter into this Confidentiality Agreement, and (ii) the person executing this Confidentiality Agreement has the full power and authority to do so. IN WITNESS WHEREOF, Recipient has signed this Confidentiality Agreement as of the date below written. RECIPIENT: __________________________ CLIENT: CITY OF DENTON, TEXAS By: ___________________________________ By:_________________________________ Print Name: ____________________________ Print Name:__________________________ Title: _________________________________ Title:________________________________ Date: _________________________________ Date:_______________________________ SAMPLE (No Signature Required) SAMPLE (No Signature Required) DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 185 Client: Denton Fire Department Contract Number: RMS162298 Page 15 of 19 EXHIBIT C END USER TERMS AND CONDITIONS I. Client acknowledges and agrees that all Services, computer software, programs, specifications and designs, documentation, manuals, methodologies, processes, and other materials, information, and the content of the foregoing accessed by Client that is provided by or on behalf of Service Provider or its licensors, and any copies thereof, (the “Service Provider Proprietary and Confidential Information”) are the proprietary, confidential and trade secret information of Service Provider, or its licensors, and shall remain so; and that such Service Provider Proprietary and Confidential Information may be utilized by Client only to facilitate its use of the Services in accordance with the terms of this Exhibit and the MA. Client agrees, and will cause its employees, agents and representatives to agree, that it/they (i) shall not copy, modify, change, disassemble, or reverse engineer any Service Provider Proprietary and Confidential Information, and (ii) shall not disclose Service Provider Proprietary and Confidential Information, except as legally required. Data from transactions received or created by Service Provider may be utilized by Service Provider for data aggregation and/or statistical compilations or reports, research, and for other purposes (the “Uses”) so long as such Uses are in compliance with all applicable laws and patient identifying information is de-identified consistent with the HIPAA Privacy Rule, and such Uses shall be the sole and exclusive property of Service Provider. The parties agree not to disclose the terms of this Exhibit, either party’s business practices or other trade secrets or confidential and trade secret information of the other party or its licensors, except as legally required. II. Client agrees, and shall cause its employees, agents and representatives to agree, that it/they shall not: (a) transmit or share identification and/or password codes to persons other than the Authorized Users for whom such codes were generated; (b) permit Authorized Users to share identification and/or password codes with others; (c) permit the identification and/or password codes from being cached in proxy servers and accessed by individuals who are not Authorized Users; (d) permit access to the Software through a single identification and/or password code being made available to multiple users on a network; or (e) attempt or permit any person without valid identification and/or password codes to attempt to access the Software. Client agrees that (w) the Software embodies valuable and proprietary trade secrets of Service Provider andor its licensors, (x) the identification and password codes issued by Service Provider hereunder constitute valuable confidential information, which is proprietary to Service Provider, (y) any reports, report formats, documents, ideas or other discoveries made or developed by Client during its use of the Software may be utilized by Client only at Client facility where it is installed, only to facilitate its use of the Services hereunder in accordance with the terms of this Exhibit and the MA, only in accordance with user instructions and specifications provided by Service Provider and shall not be given or sold to or used on behalf of any third-party, and any reports, report formats, documents, ideas or other discoveries shall remain the sole and exclusive property of Service Provider, and (z) Client agrees, and will cause its employees, agents, subcontractors and representatives to agree, that it/they shall not copy, modify, change, disassemble, or reverse engineer any part or aspect of the Software. III. The Software shall be in machine-readable object code and may only be utilized at Client facility where it is installed, solely for Client transactions for which Service Provider is to perform the Services, and only in accordance with user instructions and specifications provided by Service Provider. Client shall obtain and maintain, at no cost or expense to Service Provider, the software/hardware required by Client to access the Software and acknowledges that Service Provider recommends no specific manufacturer and/or software that complies with its specifications. As between Service Provider and Client, all such Software is acknowledged to be subject to Section V of this Exhibit and the MA. SERVICE PROVIDER MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESSED OR IMPLIED, WITH RESPECT TO THE SOFTWARE AND DISCLAIMS ALL OTHER WARRANTIES, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY AND/OR FITNESS FOR A PARTICULAR PURPOSE. IV. Client users shall access the Software through a combination of user names and passwords as necessary to provide appropriate security. Client shall be solely responsible for assigning user names and passwords to its users and for strictly maintaining the confidentiality of such user names DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 186 Client: Denton Fire Department Contract Number: RMS162298 Page 16 of 19 and passwords. Client shall ensure that all of its users comply with all of the terms and conditions of this Exhibit and the MA. Client shall not permit any person or entity, other than its designated users, to use or gain access to the Services and shall provide reasonable safeguards to protect against unauthorized usage of or access to the Services. V. Client shall not use the Software in any manner, or in connection with any Client specific materials that (i) infringes upon or violates any intellectual property right of any third-party, (ii) constitutes a defamation, libel, invasion of privacy, or violation of any right of publicity or other third-party right or is threatening, harassing or malicious, or (iii) violates any applicable international, federal, state or local law, rule, legislation, regulation or ordinance, including without limitation, the Communications Decency Act of 1996, as amended, and will not initiate or otherwise pursue development efforts that attempt to duplicate or re-create any functionality, processes or business model concepts included in the Software. VI. Service Provider reserves the right to substitute alternative products providing equivalent core functionality to the Software. VII. Upon Client’s ceasing use of the Software, the termination of this Exhibit and the MA, or Service Provider’s written request, Client shall cease using all Service Provider provided Software and related materials and promptly return same to Service Provider at Client's expense. Client shall certify to Service Provider in writing that all copies (in any form or media) of the materials received, whether or not modified or incorporated into other materials, have been destroyed or returned to Service Provider. Termination of this Exhibit and the MA or any license shall not relieve Client's obligation to pay all fees incurred prior to such termination and shall not limit either party from pursuing any other remedies available to it. VIII. Each party agrees that the other party and/or its licensors do not have an adequate remedy at law to protect their respective rights under this Exhibit and will have the right to seek injunctive relief from any violation or threatened violation of this Exhibit with respect to their respective rights. DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 187 Client: Denton Fire Department Contract Number: RMS162298 page 17 of 19 SERVICE SCHEDULE 1 SUPPLEMENTAL PAYMENT RECOVERY ASSISTANCE SERVICES (FOR TEXAS) The MA Terms and Conditions and this Service Schedule apply to all services rendered by Service Provider under this Service Schedule. 1. TERM 1.1. Initial Term of Schedule. The initial term of this Service Schedule is three years (the “Schedule Term”) beginning upon the Effective Date or as otherwise mutually agreed-upon by the parties (the “Commencement Date”), with the option for two (2) additional, automatic, one (1) year extensions, in a total five (5) year period. Service Provider’s or Client’s request to not renew the contract must be submitted in writing at least 60 days prior to the contract renewal date for each year. At the sole option of Client, this Service Schedule may be further extended as needed, not to exceed a total of six (6) months. 2. SCOPE OF SERVICES 2.1. Scope. Service Provider will provide supplemental payment assistant services as specified below based on information provided by Client for emergency and non-emergency transport services rendered by Client in accordance with the terms of the MA and this Service Schedule. 2.2. Responsibilities. Each party agrees to perform its respective responsibilities identified below in a timely and diligent manner. Client acknowledges and agrees that Service Provider’s performance of the Services described herein is dependent upon Client’s performance of its responsibilities as set forth in this Service Schedule. 2.2.1. Service Provider Responsibilities. As part of the Service Provider’s Supplemental Payment Assistance Services, Service Provider’s responsibilities under this Service Schedule will include: (a) Advising and assisting Client with enrolling in the Texas Ambulance Supplemental Payment Program (hereinafter referred to as the “TASPP”); (b) Managing the program applications and required cost reports for Client in accordance with the TASPP; (c) Managing the TASPP 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 TASPP, • Developing and submitting the Cost Allocation Model and Report to HHSC on behalf of Client for review as part of the TASPP; • 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. (d) Assisting Client in developing cost models for emergency and non-emergency transports for submission to TASPP; (e) Assisting Client with submitting other annual reports as my required by the TASPP; (f) Ensuring that cost report preparer(s) engaged on behalf of Client by Service Provider are certified in accordance with all applicable rules, laws and regulations; and (g) Ensuring that it utilizes separate staff for all billing and cost report preparation services provided to Client. (h) Medicare Ground Ambulance Data Collection. 1. Kickoff Meeting/Conference Calls/WebEx. Service Provider will conduct a project kickoff meeting with Client to review the data requirements, DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 188 Client: Denton Fire Department Contract Number: RMS162298 page 18 of 19 supporting documentation, and due dates for the Medicare Data Collection report. Meetings will be conducted via in-person, conference call, or WebEx. 2. Data Collection Management. Service Provider will work with Client to gather the necessary information for the Medicare Data Collection System and make sure Client meets all deadlines for data delivery to Service Provider. Service Provider will provide necessary technical assistance with financial, statistical, billing, and utilization information to meet Medicare reporting standards. 3. Data Analysis. Service Provider will analyze the provider data, develop necessary calculations, and provide data outputs that meet the prescribed Medicare Data Collection reporting requirements. 4. Supporting Documentation Development. Service Provider will prepare a Microsoft Excel-based support file that will show how all answers included in the Medicare Data Collection System were derived. This supporting documentation can be used as the basis for answering any initial Medicare/Centers for Medicare and Medicaid Services (CMS) questions pertaining to the information included in the Medicare Data Collection System. While Medicare/CMS is currently stating that the data will not be audited, Medicare/CMS reserve the right to question any information included in the Medicare Data Collection System and request supporting documentation for that information. 5. Draft Report Review. Service Provider will conduct a Draft Report Review meeting with Client to review the draft information that will go into the Medicare Data Collection System. Service Provider will review all answers that will go into the Medicare Data Collection System and adjust analysis, outputs, or answers as necessary. Meetings will be conducted via in- person, conference call, or WebEx. 6. Medicare Data Collection System Submittal Management. Service Provider will manage to the submittal of the information into the Medicare Data Collection System. This may include providing the answers to all questions to Client so that Client can enter the information on its own, or it may include the direct entry of the data into the system by Service Provider. This will depend on how Medicare/CMS setup the system, and if Medicare/CMS will allow providers to give access to contracted report preparers. 7. Medicare Data Collection Follow-Up. Service Provider will provide follow- up services related to its MDC reporting services, including managing the question and answer process with Medicare/CMS. 2.2.2. Client Responsibilities. Client acknowledges and understands that inaccurate or false data submissions, even inadvertent 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 Service Provider and provide written certification of the accuracy of such data to Service Provider and all applicable governmental agencies; (b) Make its internal practices, books and records relating to all cost report data provided to Service Provider by Client available to Service Provider to ensure the accuracy of all such data; (c) Comply with Service Provider policies and procedures for the documentation of all cost report data as established and provided to Client by Service Provider from time to time; and DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 189 Client: Denton Fire Department Contract Number: RMS162298 page 19 of 19 (d) Provide Service Provider 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 emergency and non-emergency transport department and an estimated percentage of time spent working for Client’s emergency and non- emergency transport 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. 3. SERVICE FEES 3.1. For Supplemental Payment Recovery Assistance Services, Client will pay Service Provider a service fee equal to 4.0%* of the Supplemental Payments recovered by Service Provider on behalf of Client. Supplemental Payments shall include any payments from Texas Medicaid to Client related to the TASPP. * In the event that charging a percentage of payments recovered for the Services described herein is determined to be out of compliance with federal or state laws or regulations, Service Provider may amend the MA to set forth a different payment arrangement. The parties acknowledge and agree that such amendment does not waive the obligation to pay determined fees. 3.4. 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 Service Provider under this MA, for which taxes Client shall be solely responsible. Client shall reimburse Service Provider for all those costs and expenses of Client paid by Service Provider or any subsidiary or affiliate of Service Provider on behalf of Client in connection with the provision of Services hereunder. 3.5. Client acknowledges and agrees that Service Provider shall be entitled to receive service fees for Services provided by Service Provider under this MA even after expiration or earlier termination of this MA, provided that Service Provider provided such services on or before the date of expiration or termination of this MA. 4. INDEMNFICATION To the extent allowed by the laws of the State of Texas and without waiving any applicable immunity, Client is responsible for all claims, damages, or losses arising directly and solely as a result of a breach of any representation, warranty, covenant or obligation of Client pertaining to the TASPP; and any alleged negligent act or omission or intentional misconduct of Client or Client’s employees or agents or subcontractors related to any of Client’s obligations pertaining to the TASPP; provided that such obligation is limited to Client’s proportionate fault. DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 190 Exhibit CONFLICT OF INTEREST QUESTIONNAIRE - FORM CIQ For vendor or other person doing business with local governmental entity This questionnaire reflects changes made to the law by H.B. 23, 84th Leg., Regular Session. This questionnaire is being filed in accordance with Chapter 176, Local Government Code, by a vendor who has a business relationship as defined by Section 176.001(1-a) with a local governmental entity and the vendor meets requirements under Section 176.006(a). By law this questionnaire must be filed with the records administrator of the local government entity not later than the 7th business day after the date the vendor becomes aware of facts that require the statement to be filed. See Section 176.006(a-1), Local Government Code. A vendor commits an offense if the vendor knowingly violates Section 176.006, Local Government Code. An offense under this section is a misdemeanor. 1 Name of vendor who has a business relationship with local governmental entity. 2 Check this box if you are filing an update to a previously filed questionnaire. (The law requires that you file an updated completed questionnaire with the appropriate filing authority not later than the 7th business day after the date on which you became aware that the originally filed questionnaire was incomplete or inaccurate.) 3 Name of local government officer about whom the information in this section is being disclosed. Name of Officer This section, (item 3 including subparts A, B, C & D), must be completed for each officer with whom the vendor has an employment or other business relationship as defined by Section 176.001(1-a), Local Government Code. Attach additional pages to this Form CIQ as necessary. A. Is the local government officer named in this section receiving or likely to receive taxable income, other than investment income, from the vendor? Yes No B. Is the vendor receiving or likely to receive taxable income, other than investment income, from or at the direction of the local government officer named in this section AND the taxable income is not received from the local governmental entity? Yes No C. Is the filer of this questionnaire employed by a corporation or other business entity with respect to which the local government officer serves as an officer or director, or holds an ownership of one percent or more? Yes No D. Describe each employment or business and family relationship with the local government officer named in this section. 4 I have no Conflict of Interest to disclose. 5 Signature of vendor doing business with the governmental entity Date DocuSign Envelope ID: 8BE9BDEA-6A27-4C0B-A271-BAD1F6C3BCB2 Change Healthcare Technology Enabled Services, LLC CIQ 4/30/2021 X 191 Certificate Of Completion Envelope Id: 8BE9BDEA6A274C0BA271BAD1F6C3BCB2 Status: Sent Subject: Please DocuSign: City Council Contract 7521 TASPP Source Envelope: Document Pages: 21 Signatures: 4 Envelope Originator: Certificate Pages: 6 Initials: 1 Gabby Leeper AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-06:00) Central Time (US & Canada) 901B Texas Street Denton, TX 76209 Gabby.Leeper@cityofdenton.com IP Address: 198.49.140.104 Record Tracking Status: Original 4/27/2021 11:45:17 AM Holder: Gabby Leeper Gabby.Leeper@cityofdenton.com Location: DocuSign Signer Events Signature Timestamp Gabby Leeper gabby.leeper@cityofdenton.com Buyer City of Denton Security Level: Email, Account Authentication (None) Completed Using IP Address: 198.49.140.104 Sent: 4/27/2021 12:28:43 PM Viewed: 4/27/2021 12:28:50 PM Signed: 4/27/2021 12:31:43 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Lori Hewell lori.hewell@cityofdenton.com Purchasing Manager City of Denton Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 198.49.140.104 Sent: 4/27/2021 12:31:45 PM Viewed: 4/27/2021 5:57:30 PM Signed: 4/27/2021 5:59:17 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Marcella Lunn marcella.lunn@cityofdenton.com Deputy City Attorney City of Denton Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 68.185.202.16 Sent: 4/27/2021 5:59:20 PM Viewed: 4/28/2021 1:46:42 PM Signed: 4/28/2021 1:50:48 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Jeffrey J. Wescott TES_ServicesContracts@changehealthcare.com SVP Revenue Cycle Management Services Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 104.129.204.79 Sent: 4/28/2021 1:50:50 PM Viewed: 4/28/2021 2:45:13 PM Signed: 4/30/2021 10:01:53 AM Electronic Record and Signature Disclosure: Accepted: 4/28/2021 2:45:13 PM ID: 3ba5298e-33a2-4bec-ba16-f505707fcb52 192 Signer Events Signature Timestamp Kenneth Hedges Kenneth.Hedges@cityofdenton.com Fire Chief Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 198.49.140.10 Sent: 4/30/2021 10:01:55 AM Viewed: 4/30/2021 11:41:06 AM Signed: 4/30/2021 11:41:26 AM Electronic Record and Signature Disclosure: Accepted: 4/30/2021 11:41:06 AM ID: 03a8e95a-fc43-4660-bfc0-d38612db93d8 Cheyenne Defee cheyenne.defee@cityofdenton.com Contract Administrator City of Denton Security Level: Email, Account Authentication (None) Sent: 4/30/2021 11:41:29 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Sara Hensley sara.hensley@cityofdenton.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Rosa Rios rosa.rios@cityofdenton.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Accepted: 4/28/2021 10:43:28 AM ID: d27d63bf-b64d-49ec-bdc3-f66149f56cec In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Cheyenne Defee cheyenne.defee@cityofdenton.com Contract Administrator City of Denton Security Level: Email, Account Authentication (None) Sent: 4/27/2021 12:31:45 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Sherri Thurman sherri.thurman@cityofdenton.com City of Denton Security Level: Email, Account Authentication (None) Sent: 4/30/2021 11:41:28 AM 193 Carbon Copy Events Status Timestamp Electronic Record and Signature Disclosure: Not Offered via DocuSign Gretna Jones gretna.jones@cityofdenton.com Legal Secretary City of Denton Security Level: Email, Account Authentication (None) Sent: 4/30/2021 11:41:29 AM Viewed: 4/30/2021 11:50:11 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign City Secretary Office citysecretary@cityofdenton.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Lindsey Garrison Lindsey.Garrison@cityofdenton.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 4/27/2021 12:28:44 PM Payment Events Status Timestamps Electronic Record and Signature Disclosure 194 ELECTRONIC RECORD AND SIGNATURE DISCLOSURE From time to time, City of Denton (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through your DocuSign, Inc. (DocuSign) Express user account. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to these terms and conditions, please confirm your agreement by clicking the 'I agree' button at the bottom of this document. Getting paper copies At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. For such copies, as long as you are an authorized user of the DocuSign system you will have the ability to download and print any documents we send to you through your DocuSign user account for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below. Withdrawing your consent If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below. Consequences of changing your mind If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. To indicate to us that you are changing your mind, you must withdraw your consent using the DocuSign 'Withdraw Consent' form on the signing page of your DocuSign account. This will indicate to us that you have withdrawn your consent to receive required notices and disclosures electronically from us and you will no longer be able to use your DocuSign Express user account to receive required notices and consents electronically from us or to sign electronically documents from us. All notices and disclosures will be sent to you electronically Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through your DocuSign user account all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us. Electronic Record and Signature Disclosure created on: 7/21/2017 3:59:03 PM Parties agreed to: Jeffrey J. Wescott, Kenneth Hedges, Rosa Rios 195 How to contact City of Denton: You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows: To contact us by email send messages to: purchasing@cityofdenton.com To advise City of Denton of your new e-mail address To let us know of a change in your e-mail address where we should send notices and disclosures electronically to you, you must send an email message to us at melissa.kraft@cityofdenton.com and in the body of such request you must state: your previous e-mail address, your new e-mail address. We do not require any other information from you to change your email address.. In addition, you must notify DocuSign, Inc to arrange for your new email address to be reflected in your DocuSign account by following the process for changing e-mail in DocuSign. To request paper copies from City of Denton To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, you must send us an e-mail to purchasing@cityofdenton.com and in the body of such request you must state your e-mail address, full name, US Postal address, and telephone number. We will bill you for any fees at that time, if any. To withdraw your consent with City of Denton To inform us that you no longer want to receive future notices and disclosures in electronic format you may: i. decline to sign a document from within your DocuSign account, and on the subsequent page, select the check-box indicating you wish to withdraw your consent, or you may; ii. send us an e-mail to purchasing@cityofdenton.com and in the body of such request you must state your e-mail, full name, IS Postal Address, telephone number, and account number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process.. Required hardware and software Operating Systems: Windows2000? or WindowsXP? Browsers (for SENDERS): Internet Explorer 6.0? or above Browsers (for SIGNERS): Internet Explorer 6.0?, Mozilla FireFox 1.0, NetScape 7.2 (or above) Email: Access to a valid email account Screen Resolution: 800 x 600 minimum Enabled Security Settings: •Allow per session cookies •Users accessing the internet behind a Proxy Server must enable HTTP 1.1 settings via proxy connection ** These minimum requirements are subject to change. If these requirements change, we will provide you with an email message at the email address we have on file for you at that time providing you with the revised hardware and software requirements, at which time you will have the right to withdraw your consent. 196 Acknowledging your access and consent to receive materials electronically To confirm to us that you can access this information electronically, which will be similar to other electronic notices and disclosures that we will provide to you, please verify that you were able to read this electronic disclosure and that you also were able to print on paper or electronically save this page for your future reference and access or that you were able to e-mail this disclosure and consent to an address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving notices and disclosures exclusively in electronic format on the terms and conditions described above, please let us know by clicking the 'I agree' button below. By checking the 'I Agree' box, I confirm that: • I can access and read this Electronic CONSENT TO ELECTRONIC RECEIPT OF ELECTRONIC RECORD AND SIGNATURE DISCLOSURES document; and • I can print on paper the disclosure or save or send the disclosure to a place where I can print it, for future reference and access; and • Until or unless I notify City of Denton as described above, I consent to receive from exclusively through electronic means all notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to me by City of Denton during the course of my relationship with you. 197 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 21-957,Version:1 AGENDA CAPTION Consider adoption of an ordinance of the City of Denton,a Texas home-rule municipal corporation,authorizing the City Manager,or their designee,to execute a contract with Hart Halsey,LLC dba Extra Duty Solutions,for Public Safety Off-Duty Management Software for the Police Department;providing for the expenditure of funds therefor;and providing an effective date (RFP 7597 -awarded to Hart Halsey,LLC dba Extra Duty Solutions,for one (1)year,with the option for four (4)additional one (1)year extensions,in the total five (5) year term). City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™198 City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: May 25, 2021 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or their designee, to execute a contract with Hart Halsey, LLC dba Extra Duty Solutions, for Public Safety Off-Duty Management Software for the Police Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 7597 – awarded to Hart Halsey, LLC dba Extra Duty Solutions, for one (1) year, with the option for four (4) additional one (1) year extensions, in the total five (5) year term). INFORMATION/BACKGROUND Police Officers frequently work off-duty jobs in the community for various private events (security at hospitals, churches, special events, etc). The following chart shows the approximate hours worked by Denton Officers in the past three years. Year PD Private Events (in hours) PD OT Special Events (in hours) 2018 2,500 3,500 2019 5,300 3,100 2020 2,500 500 Currently, the police department has an officer that works full time as the special events coordinator. Their duties expanded during the onset of the COVID-19 pandemic to include emergency management coordination. In 2019, officers worked a combined 8,400 hours for private events and City-sponsored special events that paid the City for the officers' time. The special events coordinator schedules and manages all assignment hours through the City’s electronic timekeeping and payroll software. In addition to managing the requests and tracking of time, the coordinator works on payment collection, when payment isn’t made in a timely manner. Prior to COVID-19, managing the department’s off-duty activities took the majority of the special events coordinator’s time. The proposed selected vendor will take over the primary, function of administering the department’s off-duty program, with the Police Department having overall control and oversight for the program. Extra Duty Solutions will handle all administrative functions, including intake of calls/online requests for officers. Vendors will be able to access and request an officer 24/7 along with the ability to make any City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 199 changes to their request. Additionally, Extra Duty Solutions provides comprehensive insurance policies for both the officers and vendors that hire them, which in turn helps reduce potential risks the City may carry. The vendor will also provide an application that will post off-duty jobs for the officers which provide tracking and oversight, such as limiting the number of hours an officer can work off-duty to help prevent burnout and increase officer safety. As noted, using this off-duty management vendor is no cost to the officers, department, or City. The vendor charges an administrative fee that will be paid by the end-user requesting police services. The selected vendor will charge 10.5% based on the officer’s pay and 7% based on police vehicle usage. As an example, for an off-duty assignment that pays an officer $45/hr, the off-duty vendor will charge $49.725/hr with $4.725 going to the off-duty vendor and $45 going to the officer. Request for Proposals was sent to 744 prospective suppliers, including 49 Denton firms. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. Seven (7) proposals were received, references were checked, and proposals were evaluated based upon published criteria including compliance with specifications, probable performance, and price. Best and Final Offers (BAFO) were requested from the top firm. Based upon this evaluation, Hart Halsey, LLC dba Extra Duty Solutions was ranked the highest and determined to be the best value for the City. NIGP Code Used for Solicitation: 208-Computer Software for Microcomputers (Preprogrammed); 920- (Service Only)-Data Processing, Computer, Programming, & Software Services; 961-(Service Only)-Misc. Services, No. 1 (Not Otherwise Classified) Notifications sent for Solicitation sent in IonWave: 744 Number of Suppliers that viewed Solicitation in IonWave: 24 HUB-Historically Underutilized Business Invitations sent out: 62 SBE-Small Business Enterprise Invitations sent out: 352 Responses from Solicitation: 7 RECOMMENDATION Award a contract with Hart Halsey, LLC dba Extra Duty Solutions, for Public Safety Off-Duty Management Software for the Police Department, in a one (1) year, with the option for four (4) additional one (1) year extensions, in the total five (5) year term. PRINCIPAL PLACE OF BUSINESS Hart Halsey, LLC dba Extra Duty Solutions Shelton, CT ESTIMATED SCHEDULE OF PROJECT This is an initial one (1) year contract with options to extend the contract for four (4) additional one (1) year periods, with all terms and conditions remaining the same. FISCAL INFORMATION This contract creates no financial obligations for the City of Denton. 200 EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Pricing Evaluation Exhibit 3: LLC Members Exhibit 4: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Preston Pohler, 940-349-7956. Legal point of contact: Marcella Lunn at 940-349-8333. 201 Hart Halsey, LLC dba Extra Duty Solutions Off Duty Management Inc. POWERDETAILS, LLC. RollKall Technologies LLC Kommander Software, LLC Shelton, CT Katy, TX Orlando, FL Irving, TX Inverness, FL Item #Standard Criteria 1 Compliance with Specifications - 50%46.67 43.33 36.67 36.67 30.00 2 Probable Performance - 25%21.67 16.67 18.33 20.00 15.00 3 Price, Total Cost of Ownership - 25%24.06 22.90 25.00 21.78 24.94 92.39 82.90 80.00 78.45 69.94Total Score: Exhibit 2 RFP 7597 - Pricing Evaluation for Public Safety Off-Duty Management Software Respondent's Business Name: Principal Place of Business (City and State): 202 203 ORDINANCE NO. _________ AN ORDINANCE OF THE CITY OF DENTON, A TEXAS HOME-RULE MUNICIPAL CORPORATION, AUTHORIZING THE CITY MANAGER, OR THEIR DESIGNEE, TO EXECUTE A CONTRACT WITH HART HALSEY, LLC DBA EXTRA DUTY SOLUTIONS, FOR PUBLIC SAFETY OFF-DUTY MANAGEMENT SOFTWARE FOR THE POLICE DEPARTMENT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (RFP 7597 – AWARDED TO HART HALSEY, LLC DBA EXTRA DUTY SOLUTIONS, FOR ONE (1) YEAR, WITH THE OPTION FOR FOUR (4) ADDITIONAL ONE (1) YEAR EXTENSIONS, IN THE TOTAL FIVE (5) YEAR TERM). WHEREAS, the City has solicited, received, and evaluated competitive proposals for public safety off-duty management software for the Police Department; and WHEREAS, the City Manager, or a designated employee, has received, reviewed, and recommended that the herein described proposals are the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies, or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The items in the following numbered request for proposal for materials, equipment, supplies, or services shown in the “Request Proposals” on file in the office of the Purchasing Agent, are hereby accepted and approved as being the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals. RFP NUMBER CONTRACTOR 7597 Hart Halsey, LLC dba Extra Duty Solutions SECTION 2. That by the acceptance and approval of the above numbered items of the submitted proposals, the City accepts the offer of the persons submitting the proposals for such items and agrees to purchase the materials, equipment, supplies, or services in accordance with the terms, specifications, standards, quantities, and for the specified sums contained in the Proposal Invitations, Proposals, and related documents. SECTION 3. That should the City and person submitting approved and accepted items wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the proposals, the City Manager, or their designated representative, is hereby authorized to execute the 204 written contract which shall be attached hereto; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities, and specified sums contained in the Proposal and related documents herein approved and accepted. SECTION 4. The City Council of the City of Denton, hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under this ordinance to the City Manager of the City of Denton, or their 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. The motion to approve this ordinance was made by __________________________ and seconded by _________________________________. The ordinance was passed and approved by the following vote [___ - ___]: Aye Nay Abstain Absent Mayor Gerard Hudspeth: ______ ______ ______ ______ Vicki Byrd, District 1: ______ ______ ______ ______ Brian Beck, District 2: ______ ______ ______ ______ Jesse Davis, District 3: ______ ______ ______ ______ Alison Maguire, District 4: ______ ______ ______ ______ Deb Armintor, At Large Place 5: ______ ______ ______ ______ Paul Meltzer, At Large Place 6: ______ ______ ______ ______ PASSED AND APPROVED this the _______ day of ___________________________, 2021. __________________________________ GERARD HUDSPETH, MAYOR 205 ATTEST: ROSA RIOS, CITY SECRETARY BY: __________________________________ APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY BY: _________________________________ 206 Docusign City Council Transmittal Coversheet File Name Purchasing Contact City Council Target Date Piggy Back Option Contract Expiration Ordinance DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 RFP Ginny Brummett Yes Off Duty Management 7597 207 Contract # 7597 CONTRACT BY AND BETWEEN CITY OF DENTON, TEXAS AND HART HALSEY LLC, DBA EXTRA DUTY SOLUTIONS RFP 7597 THIS CONTRACT is made and entered into this date ______________________, by and between HART HALSEY, LLC DBA EXTRA DUTY SOLUTIONS a CONNECTICUT limited liability company, whose address is 1 WATERVIEW DRIVE, SUITE 101, SHELTON, CONNECTICUT 06484, hereinafter referred to as "Contractor," and the CITY OF DENTON, TEXAS, a home rule municipal corporation, hereinafter referred to as "City," to be effective upon approval of the Denton City Council and subsequent execution of this Contract by the Denton City Manager or his duly authorized designee. For and in consideration of the covenants and agreements contained herein, and for the mutual benefits to be obtained hereby, the parties agree as follows: SCOPE OF SERVICES Contractor shall provide products and/or services in accordance with the City’s document RFP 7597-OFF DUTY MANAGEMENT, a copy of which is on file at the office of Purchasing Agent and incorporated herein for all purposes. The Contract consists of this written agreement and the following items which are attached hereto and incorporated herein by reference: (a) Special Terms and Conditions (Exhibit “A”); (b) City of Denton’s RFP 7597 (Exhibit “B” on File at the Office of the Purchasing Agent); (c) City of Denton Standard Terms and Conditions (Exhibit “C”); (d) Insurance Requirements (Exhibit “D”); (e) Certificate of Interested Parties Electronic Filing (Exhibit "E"); (f) Contractor’s Proposal (Exhibit "F"); (g) Form CIQ – Conflict of Interest Questionnaire (Exhibit "G"); These documents make up the Contract documents and what is called for by one shall be as binding as if called for by all. In the event of an inconsistency or conflict in any of the provisions of the Contract Documents, the inconsistency or conflict shall be resolved by giving precedence first to the written agreement then to the contract documents in the order in which they are listed above. These documents shall be referred to collectively as “Contract Documents.” Prohibition on Contracts with Companies Boycotting Israel Contractor acknowledges that in accordance with Chapter 2270 of the Texas Government Code, City is prohibited from entering into a contract with a company for goods or services unless the contract contains a written verification from the company that it: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the contract. The terms “boycott Israel” and “company” shall have the meanings ascribed to those terms in Section 808.001 of the Texas Government Code. By signing this agreement, Contractor certifies that Contractor’s signature provides written verification to the City that Contractor: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the agreement. Failure to meet or maintain the requirements under this provision will be considered a material breach. DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 208 Contract # 7597 Prohibition On Contracts With Companies Doing Business with Iran, Sudan, or a Foreign Terrorist Organization Section 2252 of the Texas Government Code restricts CITY from contracting with companies that do business with Iran, Sudan, or a foreign terrorist organization. By signing this agreement, Contractor certifies that Contractor’s signature provides written verification to the City that Contractor, pursuant to Chapter 2252, is not ineligible to enter into this agreement and will not become ineligible to receive payments under this agreement by doing business with Iran, Sudan, or a foreign terrorist organization. Failure to meet or maintain the requirements under this provision will be considered a material breach. The parties agree to transact business electronically. Any statutory requirements that certain terms be in writing will be satisfied using electronic documents and signing. Electronic signing of this document will be deemed an original for all legal purposes. IN WITNESS WHEREOF, the parties of these presents have executed this agreement in the year and day first above written. CONTRACTOR BY:______________________________ AUTHORIZED SIGNATURE Printed Name:_____________________ Title:____________________________ __________________________________ PHONE NUMBER _________________________________ EMAIL ADDRESS ___________________________________ TEXAS ETHICS COMMISSION 1295 CERTIFICATE NUMBER CITY OF DENTON, TEXAS BY: _____________________________ ATTEST: ROSA RIOS, CITY SECRETARY BY: _______________________________ APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY BY: _______________________________ THIS AGREEMENT HAS BEEN BOTH REVIEWED AND APPROVED as to financial and operational obligations and business terms. _______________ ________________ SIGNATURE PRINTED NAME __________________________________ TITLE __________________________________ DEPARTMENT DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 rmilliman@extradutysolutions.com rmilliman@extradutysolutions.com CEO 203-216-9742 Rich Milliman Denton Police Department Chief of Police Frank Dixon 209 Contract # 7597 Exhibit A Special Terms and Conditions 1. Contract Terms The contract term will be one (1) year, effective from date of award. The City and the Supplier shall have the option to renew this contract for an additional four (4) one-year periods. The Contract shall commence upon the issuance of a Notice of Award by the City of Denton and shall automatically renew each year, from the date of award by City Council. The Supplier’s request to not renew the contract must be submitted in writing to the Purchasing Manager at least 60 days prior to the contract renewal date for each year. At the sole option of the City of Denton, the Contract may be further extended as needed, not to exceed a total of six (6) months. 2. Price Escalation and De-escalation On Supplier’s request in the form stated herein, the City will implement an escalation/de-escalation price adjustment annually based on these special terms. Any request for price adjustment must be based on the, U.S Department of Labor, Bureau of Labor Statistics, Producer Price Index (PPI) or the manufacturer published pricing list. The maximum escalation will not exceed +/- 8% for any individual year. The escalation will be determined annually at the renewal date. The price will be increased or decreased based upon the annual percentage change in the PPI or the percentage change in the manufacturer’s price list. Should the PPI or manufacturer price list change exceed a minimum threshold value of +/-1%, then the stated eligible bid prices shall be adjusted in accordance with the percent change not to exceed the 8% limit per year. The supplier should provide documentation as percentage of each cost associated with the unit prices quoted for consideration. Request must be submitted in writing with supporting evidence for need of such increase to the Purchasing Manager at least 60 days prior to contract expiration of each year. Respondent must also provide supporting documentation as justification for the request. If no request is made, then it will be assumed that the current contract price will be in effect. Upon receipt of such request, the City of Denton reserves the right to either: accept the escalation as competitive with the general market price at the time, and become effective upon the renewal date of the contract award or reject the increases within 30 calendar days after receipt of a properly submitted request. If a properly submitted increase is rejected, the Contractor may request cancellation of such items from the Contract by giving the City of Denton written notice. Cancellation will not go into effect for 15 calendar days after a determination has been issued. DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 210 Contract # 7597 Pre-price increase prices must be honored on orders dated up to the official date of the City of Denton approval and/or cancellation. The request can be sent by e-mail to: purchasing@cityofdenton.com noting the solicitation number. The City of Denton reserves the right to accept, reject, or negotiate the proposed price changes. 3. Performance Liquidated Damages The Contractor shall incur contractual payment losses, as initiated by the City for performance that falls short of specified performance standards as outlined below:  Delivery beyond contracted lead times  Performance below contracted levels (services only) The Contractor shall be assessed a one (1%) percent fee each month when any one of the performance standards outlined above are not met in full. The Contractor shall be assessed a two (2%) percent profit fee each month when any two (2) or more performance standards outlined above are not met in full. At the end of each month, the City will review the monthly reports and determine the percentage of penalty to be assessed to the Contractor’s monthly profit margin. DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 211 Contract # 7597 Exhibit C Standard Purchase Terms and Conditions These standard Terms and Conditions and the Terms and Conditions, Specifications, Drawings and other requirements included in the City of Denton’s contract are applicable to contracts/purchase orders issued by the City of Denton hereinafter referred to as the City or Buyer and the Seller or respondent herein after referred to as Contractor or Supplier. Any deviations must be in writing and signed by a representative of the City’s Procurement Department and the Supplier. No Terms and Conditions contained in the seller’s proposal response, invoice or statement shall serve to modify the terms set forth herein. If there is a conflict between the provisions on the face of the contract/purchase order these written provisions will take precedence. The Contractor agrees that the contract shall be governed by the following terms and conditions, unless exceptions are duly noted and fully negotiated. Unless otherwise specified in the contract, Sections 3, 4, 5, 6, 7, 8, 20, 21, and 36 shall apply only to a solicitation to purchase goods, and sections 9, 10, 11, 22 and 32 shall apply only to a solicitation to purchase services to be performed principally at the City’s premises or on public rights-of-way. 1. CONTRACTOR’S OBLIGATIONS. The Contractor shall fully and timely provide all deliverables described in the Solicitation and in the Contractor’s Offer in strict accordance with the terms, covenants, and conditions of the Contract and all applicable Federal, State, and local laws, rules, and regulations. 2. EFFECTIVE DATE/TERM. Unless otherwise specified in the Solicitation, this Contract shall be effective as of the date the contract is signed by the City, and shall continue in effect until all obligations are performed in accordance with the Contract. 3. CONTRACTOR TO PACKAGE DELIVERABLES: The Contractor will package deliverables in accordance with good commercial practice and shall include a packing list showing the description of each item, the quantity and unit price unless otherwise provided in the Specifications or Supplemental Terms and Conditions, each shipping container shall be clearly and permanently marked as follows: (a) The Contractor's name and address, (b) the City’s name, address and purchase order or purchase release number and the price agreement number if applicable, (c) Container number and total number of containers, e.g. box 1 of 4 boxes, and (d) the number of the container bearing the packing list. The Contractor shall bear cost of packaging. Deliverables shall be suitably packed to secure lowest transportation costs and to conform to all the requirements of common carriers and any applicable specification. The City's count or weight shall be final and conclusive on shipments not accompanied by packing lists. 4. SHIPMENT UNDER RESERVATION PROHIBITED: The Contractor is not authorized to ship the deliverables under reservation and no tender of a bill of lading will operate as a tender of deliverables. 5. TITLE & RISK OF LOSS: Title to and risk of loss of the deliverables shall pass to the City only when the City actually receives and accepts the deliverables. 6. DELIVERY TERMS AND TRANSPORTATION CHARGES: Deliverables shall be DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 212 Contract # 7597 shipped F.O.B. point of delivery unless otherwise specified in the Supplemental Terms and Conditions. Unless otherwise stated in the Offer, the Contractor’s price shall be deemed to include all delivery and transportation charges. The City shall have the right to designate what method of transportation shall be used to ship the deliverables. The place of delivery shall be that set forth the purchase order. 7. RIGHT OF INSPECTION AND REJECTION: The City expressly reserves all rights under law, including, but not limited to the Uniform Commercial Code, to inspect the deliverables at delivery before accepting them, and to reject defective or non-conforming deliverables. If the City has the right to inspect the Contractor’s, or the Contractor’s Subcontractor’s, facilities, or the deliverables at the Contractor’s, or the Contractor’s Subcontractor’s, premises, the Contractor shall furnish, or cause to be furnished, without additional charge, all reasonable facilities and assistance to the City to facilitate such inspection. 8. NO REPLACEMENT OF DEFECTIVE TENDER: Every tender or delivery of deliverables must fully comply with all provisions of the Contract as to time of delivery, quality, and quantity. Any non-complying tender shall constitute a breach and the Contractor shall not have the right to substitute a conforming tender; provided, where the time for performance has not yet expired, the Contractor may notify the City of the intention to cure and may then make a conforming tender within the time allotted in the contract. 9. PLACE AND CONDITION OF WORK: The City shall provide the Contractor access to the sites where the Contractor is to perform the services as required in order for the Contractor to perform the services in a timely and efficient manner, in accordance with and subject to the applicable security laws, rules, and regulations. The Contractor acknowledges that it has satisfied itself as to the nature of the City’s service requirements and specifications, the location and essential characteristics of the work sites, the quality and quantity of materials, equipment, labor and facilities necessary to perform the services, and any other condition or state of fact which could in any way affect performance of the Contractor’s obligations under the contract. The Contractor hereby releases and holds the City harmless from and against any liability or claim for damages of any kind or nature if the actual site or service conditions differ from expected conditions. The contractor shall, at all times, exercise reasonable precautions for the safety of their employees, City Staff, participants and others on or near the City’s facilities. 10. WORKFORCE A. The Contractor shall employ only orderly and competent workers, skilled in the performance of the services which they will perform under the Contract. B. The Contractor, its employees, subcontractors, and subcontractor's employees may not while engaged in participating or responding to a solicitation or while in the course and scope of delivering goods or services under a City of Denton contract or on the City's property . i. use or possess a firearm, including a concealed handgun that is licensed under state law, except as required by the terms of the contract; or ii. use or possess alcoholic or other intoxicating beverages, illegal drugs or controlled substances, nor may such workers be intoxicated, or under the influence of alcohol or drugs, on the job. C. If the City or the City's representative notifies the Contractor that any worker is incompetent, disorderly or disobedient, has knowingly or repeatedly violated safety regulations, has possessed DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 213 Contract # 7597 any firearms, or has possessed or was under the influence of alcohol or drugs on the job, the Contractor shall immediately remove such worker from Contract services, and may not employ such worker again on Contract services without the City's prior written consent. Immigration: The Contractor represents and warrants that it shall comply with the requirements of the Immigration Reform and Control Act of 1986 and 1990 regarding employment verification and retention of verification forms for any individuals hired on or after November 6, 1986, who will perform any labor or services under the Contract and the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (“IIRIRA) enacted on September 30, 1996. 11. COMPLIANCE WITH HEALTH, SAFETY, AND ENVIRONMENTAL REGULATIONS: The Contractor, it’s Subcontractors, and their respective employees, shall comply fully with all applicable federal, state, and local health, safety, and environmental laws, ordinances, rules and regulations in the performance of the services, including but not limited to those promulgated by the City and by the Occupational Safety and Health Administration (OSHA). In case of conflict, the most stringent safety requirement shall govern. The Contractor shall indemnify and hold the City harmless from and against all claims, demands, suits, actions, judgments, fines, penalties and liability of every kind arising from the breach of the Contractor’s obligations under this paragraph. Environmental Protection: The Respondent shall be in compliance with all applicable standards, orders, or regulations issued pursuant to the mandates of the Clean Air Act (42 U.S.C. §7401 et seq.) and the Federal Water Pollution Control Act, as amended, (33 U.S.C. §1251 et seq.). 12. INVOICES: A. The Contractor shall submit separate invoices in duplicate on each purchase order or purchase release after each delivery. If partial shipments or deliveries are authorized by the City, a separate invoice must be sent for each shipment or delivery made. B. Proper Invoices must include a unique invoice number, the purchase order or delivery order number and the master agreement number if applicable, the Department’s Name, and the name of the point of contact for the Department. Invoices shall be itemized and transportation charges, if any, shall be listed separately. A copy of the bill of lading and the freight waybill, when applicable, shall be attached to the invoice. The Contractor’s name, remittance address and, if applicable, the tax identification number on the invoice must exactly match the information in the Vendor’s registration with the City. Unless otherwise instructed in writing, the City may rely on the remittance address specified on the Contractor’s invoice. C. Invoices for labor shall include a copy of all time-sheets with trade labor rate and deliverables order number clearly identified. Invoices shall also include a tabulation of work-hours at the appropriate rates and grouped by work order number. Time billed for labor shall be limited to hours actually worked at the work site. D. Unless otherwise expressly authorized in the Contract, the Contractor shall pass through all Subcontract and other authorized expenses at actual cost without markup. E. Federal excise taxes, State taxes, or City sales taxes must not be included in the invoiced amount. The City will furnish a tax exemption certificate upon request. 13. PAYMENT: A. All proper invoices need to be sent to Accounts Payable. Approved invoices will be paid within thirty (30) calendar days of the City’s receipt of the deliverables or of the invoice being received DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 214 Contract # 7597 in Accounts Payable, whichever is later. B. If payment is not timely made, (per paragraph A); interest shall accrue on the unpaid balance at the lesser of the rate specified in Texas Government Code Section 2251.025 or the maximum lawful rate; except, if payment is not timely made for a reason for which the City may withhold payment hereunder, interest shall not accrue until ten (10) calendar days after the grounds for withholding payment have been resolved. C. If partial shipments or deliveries are authorized by the City, the Contractor will be paid for the partial shipment or delivery, as stated above, provided that the invoice matches the shipment or delivery. D. The City may withhold or set off the entire payment or part of any payment otherwise due the Contractor to such extent as may be necessary on account of: i. delivery of defective or non-conforming deliverables by the Contractor; ii. third party claims, which are not covered by the insurance which the Contractor is required to provide, are filed or reasonable evidence indicating probable filing of such claims; iii. failure of the Contractor to pay Subcontractors, or for labor, materials or equipment; iv. damage to the property of the City or the City’s agents, employees or contractors, which is not covered by insurance required to be provided by the Contractor; v. reasonable evidence that the Contractor’s obligations will not be completed within the time specified in the Contract, and that the unpaid balance would not be adequate to cover actual or damages for the anticipated delay; vi. failure of the Contractor to submit proper invoices with purchase order number, with all required attachments and supporting documentation; or vii. failure of the Contractor to comply with any material provision of the Contract Documents. E. Notice is hereby given that any awarded firm who is in arrears to the City of Denton for delinquent taxes, the City may offset indebtedness owed the City through payment withholding. F. Payment will be made by check unless the parties mutually agree to payment by credit card or electronic transfer of funds. The Contractor agrees that there shall be no additional charges, surcharges, or penalties to the City for payments made by credit card or electronic funds transfer. G. The awarding or continuation of this contract is dependent upon the availability of funding. The City’s payment obligations are payable only and solely from funds Appropriated and available for this contract. The absence of Appropriated or other lawfully available funds shall render the Contract null and void to the extent funds are not Appropriated or available and any deliverables delivered but unpaid shall be returned to the Contractor. The City shall provide the Contractor written notice of the failure of the City to make an adequate Appropriation for any fiscal year to pay the amounts due under the Contract, or the reduction of any Appropriation to an amount insufficient to permit the City to pay its obligations under the Contract. In the event of none or inadequate appropriation of funds, there will be no penalty nor removal fees charged to the City. 14. TRAVEL EXPENSES: All travel, lodging and per diem expenses in connection with the Contract shall be paid by the Contractor, unless otherwise stated in the contract terms. During the term of this contract, the contractor shall bill and the City shall reimburse contractor for all reasonable and approved out of pocket expenses which are incurred in the connection with the performance of duties hereunder. Notwithstanding the foregoing, expenses for the time spent by the contractor in traveling to and from City facilities shall not be reimbursed, unless otherwise negotiated. DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 215 Contract # 7597 15. FINAL PAYMENT AND CLOSE-OUT: A. If a DBE/MBE/WBE Program Plan is agreed to and the Contractor has identified Subcontractors, the Contractor is required to submit a Contract Close-Out MBE/WBE Compliance Report to the Purchasing Manager no later than the 15th calendar day after completion of all work under the contract. Final payment, retainage, or both may be withheld if the Contractor is not in compliance with the requirements as accepted by the City. B. The making and acceptance of final payment will constitute: i. a waiver of all claims by the City against the Contractor, except claims (1) which have been previously asserted in writing and not yet settled, (2) arising from defective work appearing after final inspection, (3) arising from failure of the Contractor to comply with the Contract or the terms of any warranty specified herein, (4) arising from the Contractor’s continuing obligations under the Contract, including but not limited to indemnity and warranty obligations, or (5) arising under the City’s right to audit; and ii. a waiver of all claims by the Contractor against the City other than those previously asserted in writing and not yet settled. 16. SPECIAL TOOLS & TEST EQUIPMENT: If the price stated on the Offer includes the cost of any special tooling or special test equipment fabricated or required by the Contractor for the purpose of filling this order, such special tooling equipment and any process sheets related thereto shall become the property of the City and shall be identified by the Contractor as such. 17. RIGHT TO AUDIT: A. The City shall have the right to audit and make copies of the books, records and computations pertaining to the Contract. The Contractor shall retain such books, records, documents and other evidence pertaining to the Contract period and five years thereafter, except if an audit is in progress or audit findings are yet unresolved, in which case records shall be kept until all audit tasks are completed and resolved. These books, records, documents and other evidence shall be available, within ten (10) business days of written request. Further, the Contractor shall also require all Subcontractors, material suppliers, and other payees to retain all books, records, documents and other evidence pertaining to the Contract, and to allow the City similar access to those documents. All books and records will be made available within a 50 mile radius of the City of Denton. The cost of the audit will be borne by the City unless the audit reveals an overpayment of 1% or greater. If an overpayment of 1% or greater occurs, the reasonable cost of the audit, including any travel costs, must be borne by the Contractor which must be payable within five (5) business days of receipt of an invoice. B. Failure to comply with the provisions of this section shall be a material breach of the Contract and shall constitute, in the City’s sole discretion, grounds for termination thereof. Each of the terms “books”, “records”, “documents” and “other evidence”, as used above, shall be construed to include drafts and electronic files, even if such drafts or electronic files are subsequently used to generate or prepare a final printed document. 18. SUBCONTRACTORS: A. If the Contractor identified Subcontractors in a DBE/MBE/WBE agreed to Plan, the Contractor shall comply with all requirements approved by the City. The Contractor shall not initially employ any Subcontractor except as provided in the Contractor’s Plan. The Contractor shall not substitute any Subcontractor identified in the Plan, unless the substitute has been accepted by the City in writing. No acceptance by the City of any Subcontractor shall constitute a waiver of any rights or remedies of the City with respect to defective deliverables provided by a Subcontractor. If a Plan has been approved, the Contractor is additionally required to submit a monthly Subcontract DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 216 Contract # 7597 Awards and Expenditures Report to the Procurement Manager, no later than the tenth calendar day of each month. B. Work performed for the Contractor by a Subcontractor shall be pursuant to a written contract between the Contractor and Subcontractor. The terms of the subcontract may not conflict with the terms of the Contract, and shall contain provisions that: i. require that all deliverables to be provided by the Subcontractor be provided in strict accordance with the provisions, specifications and terms of the Contract; ii. prohibit the Subcontractor from further subcontracting any portion of the Contract without the prior written consent of the City and the Contractor. The City may require, as a condition to such further subcontracting, that the Subcontractor post a payment bond in form, substance and amount acceptable to the City; iii. require Subcontractors to submit all invoices and applications for payments, including any claims for additional payments, damages or otherwise, to the Contractor in sufficient time to enable the Contractor to include same with its invoice or application for payment to the City in accordance with the terms of the Contract; iv. require that all Subcontractors obtain and maintain, throughout the term of their contract, insurance in the type and amounts specified for the Contractor, with the City being a named insured as its interest shall appear; and v. require that the Subcontractor indemnify and hold the City harmless to the same extent as the Contractor is required to indemnify the City. C. The Contractor shall be fully responsible to the City for all acts and omissions of the Subcontractors just as the Contractor is responsible for the Contractor's own acts and omissions. Nothing in the Contract shall create for the benefit of any such Subcontractor any contractual relationship between the City and any such Subcontractor, nor shall it create any obligation on the part of the City to pay or to see to the payment of any moneys due any such Subcontractor except as may otherwise be required by law. D. The Contractor shall pay each Subcontractor its appropriate share of payments made to the Contractor not later than ten (10) calendar days after receipt of payment from the City. 19. WARRANTY-PRICE: A. The Contractor warrants the prices quoted in the Offer are no higher than the Contractor's current prices on orders by others for like deliverables under similar terms of purchase. B. The Contractor certifies that the prices in the Offer have been arrived at independently without consultation, communication, or agreement for the purpose of restricting competition, as to any matter relating to such fees with any other firm or with any competitor. C. In addition to any other remedy available, the City may deduct from any amounts owed to the Contractor, or otherwise recover, any amounts paid for items in excess of the Contractor's current prices on orders by others for like deliverables under similar terms of purchase. 20. WARRANTY – TITLE: The Contractor warrants that it has good and indefeasible title to all deliverables furnished under the Contract, and that the deliverables are free and clear of all liens, claims, security interests and encumbrances. The Contractor shall indemnify and hold the City harmless from and against all adverse title claims to the deliverables. 21. WARRANTY – DELIVERABLES: The Contractor warrants and represents that all deliverables sold the City under the Contract shall be free from defects in design, workmanship or manufacture, and conform in all material respects to the specifications, drawings, and descriptions in the Solicitation, to any samples furnished by the Contractor, to the terms, covenants and DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 217 Contract # 7597 conditions of the Contract, and to all applicable State, Federal or local laws, rules, and regulations, and industry codes and standards. Unless otherwise stated in the Solicitation, the deliverables shall be new or recycled merchandise, and not used or reconditioned. A. Recycled deliverables shall be clearly identified as such. B. The Contractor may not limit, exclude or disclaim the foregoing warranty or any warranty implied by law; and any attempt to do so shall be without force or effect. C. Unless otherwise specified in the Contract, the warranty period shall be at least one year from the date of acceptance of the deliverables or from the date of acceptance of any replacement deliverables. If during the warranty period, one or more of the above warranties are breached, the Contractor shall promptly upon receipt of demand either repair the non-conforming deliverables, or replace the non-conforming deliverables with fully conforming deliverables, at the City’s option and at no additional cost to the City. All costs incidental to such repair or replacement, including but not limited to, any packaging and shipping costs shall be borne exclusively by the Contractor. The City shall endeavor to give the Contractor written notice of the breach of warranty within thirty (30) calendar days of discovery of the breach of warranty, but failure to give timely notice shall not impair the City’s rights under this section. D. If the Contractor is unable or unwilling to repair or replace defective or non-conforming deliverables as required by the City, then in addition to any other available remedy, the City may reduce the quantity of deliverables it may be required to purchase under the Contract from the Contractor, and purchase conforming deliverables from other sources. In such event, the Contractor shall pay to the City upon demand the increased cost, if any, incurred by the City to procure such deliverables from another source. E. If the Contractor is not the manufacturer, and the deliverables are covered by a separate manufacturer’s warranty, the Contractor shall transfer and assign such manufacturer’s warranty to the City. If for any reason the manufacturer’s warranty cannot be fully transferred to the City, the Contractor shall assist and cooperate with the City to the fullest extent to enforce such manufacturer’s warranty for the benefit of the City. 22. WARRANTY – SERVICES: The Contractor warrants and represents that all services to be provided the City under the Contract will be fully and timely performed in a good and workmanlike manner in accordance with generally accepted industry standards and practices, the terms, conditions, and covenants of the Contract, and all applicable Federal, State and local laws, rules or regulations. A. The Contractor may not limit, exclude or disclaim the foregoing warranty or any warranty implied by law, and any attempt to do so shall be without force or effect. B. Unless otherwise specified in the Contract, the warranty period shall be at least one year from the Acceptance Date. If during the warranty period, one or more of the above warranties are breached, the Contractor shall promptly upon receipt of demand perform the services again in accordance with above standard at no additional cost to the City. All costs incidental to such additional performance shall be borne by the Contractor. The City shall endeavor to give the Contractor written notice of the breach of warranty within thirty (30) calendar days of discovery of the breach warranty, but failure to give timely notice shall not impair the City’s rights under this section. C. If the Contractor is unable or unwilling to perform its services in accordance with the above standard as required by the City, then in addition to any other available remedy, the City may reduce the amount of services it may be required to purchase under the Contract from the Contractor, and purchase conforming services from other sources. In such event, the Contractor shall pay to the City upon demand the increased cost, if any, incurred by the City to procure such DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 218 Contract # 7597 services from another source. 23. ACCEPTANCE OF INCOMPLETE OR NON-CONFORMING DELIVERABLES: If, instead of requiring immediate correction or removal and replacement of defective or non- conforming deliverables, the City prefers to accept it, the City may do so. The Contractor shall pay all claims, costs, losses and damages attributable to the City’s evaluation of and determination to accept such defective or non-conforming deliverables. If any such acceptance occurs prior to final payment, the City may deduct such amounts as are necessary to compensate the City for the diminished value of the defective or non-conforming deliverables. If the acceptance occurs after final payment, such amount will be refunded to the City by the Contractor. 24. RIGHT TO ASSURANCE: Whenever one party to the Contract in good faith has reason to question the other party’s intent to perform, demand may be made to the other party for written assurance of the intent to perform. In the event that no assurance is given within the time specified after demand is made, the demanding party may treat this failure as an anticipatory repudiation of the Contract. 25. STOP WORK NOTICE: The City may issue an immediate Stop Work Notice in the event the Contractor is observed performing in a manner that is in violation of Federal, State, or local guidelines, or in a manner that is determined by the City to be unsafe to either life or property. Upon notification, the Contractor will cease all work until notified by the City that the violation or unsafe condition has been corrected. The Contractor shall be liable for all costs incurred by the City as a result of the issuance of such Stop Work Notice. 26. DEFAULT: The Contractor shall be in default under the Contract if the Contractor (a) fails to fully, timely and faithfully perform any of its material obligations under the Contract, (b) fails to provide adequate assurance of performance under Paragraph 24, (c) becomes insolvent or seeks relief under the bankruptcy laws of the United States or (d) makes a material misrepresentation in Contractor’s Offer, or in any report or deliverable required to be submitted by the Contractor to the City. 27. TERMINATION FOR CAUSE: In the event of a default by the Contractor, the City shall have the right to terminate the Contract for cause, by written notice effective ten (10) calendar days, unless otherwise specified, after the date of such notice, unless the Contractor, within such ten (10) day period, cures such default, or provides evidence sufficient to prove to the City’s reasonable satisfaction that such default does not, in fact, exist. In addition to any other remedy available under law or in equity, the City shall be entitled to recover all actual damages, costs, losses and expenses, incurred by the City as a result of the Contractor’s default, including, without limitation, cost of cover, reasonable attorneys’ fees, court costs, and prejudgment and post-judgment interest at the maximum lawful rate. Additionally, in the event of a default by the Contractor, the City may remove the Contractor from the City’s vendor list for three (3) years and any Offer submitted by the Contractor may be disqualified for up to three (3) years. All rights and remedies under the Contract are cumulative and are not exclusive of any other right or remedy provided by law. 28. TERMINATION WITHOUT CAUSE: The City 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 DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 219 Contract # 7597 the date of termination in accordance with the terms hereof. 29. FRAUD: Fraudulent statements by the Contractor on any Offer or in any report or deliverable required to be submitted by the Contractor to the City shall be grounds for the termination of the Contract for cause by the City and may result in legal action. 30. DELAYS: A. The City may delay scheduled delivery or other due dates by written notice to the Contractor if the City deems it is in its best interest. If such delay causes an increase in the cost of the work under the Contract, the City and the Contractor shall negotiate an equitable adjustment for costs incurred by the Contractor in the Contract price and execute an amendment to the Contract. The Contractor must assert its right to an adjustment within thirty (30) calendar days from the date of receipt of the notice of delay. Failure to agree on any adjusted price shall be handled under the Dispute Resolution process specified in paragraph 49. However, nothing in this provision shall excuse the Contractor from delaying the delivery as notified. B. Neither party shall be liable for any default or delay in the performance of its obligations under this Contract if, while and to the extent such default or delay is caused by acts of God, fire, riots, civil commotion, labor disruptions, sabotage, sovereign conduct, or any other cause beyond the reasonable control of such Party. In the event of default or delay in contract performance due to any of the foregoing causes, then the time for completion of the services will be extended; provided, however, in such an event, a conference will be held within three (3) business days to establish a mutually agreeable period of time reasonably necessary to overcome the effect of such failure to perform. 31. INDEMNITY: A. Definitions: i. "Indemnified Claims" shall include any and all claims, demands, suits, causes of action, judgments and liability of every character, type or description, including all reasonable costs and expenses of litigation, mediation or other alternate dispute resolution mechanism, including attorney and other professional fees for: (1) damage to or loss of the property of any person (including, but not limited to the City, the Contractor, their respective agents, officers, employees and subcontractors; the officers, agents, and employees of such subcontractors; and third parties); and/or (2) death, bodily injury, illness, disease, worker's compensation, loss of services, or loss of income or wages to any person (including but not limited to the agents, officers and employees of the City, the Contractor, the Contractor’s subcontractors, and third parties), ii. "Fault" shall include the sale of defective or non-conforming deliverables, negligence, willful misconduct or a breach of any legally imposed strict liability standard. B. THE CONTRACTOR SHALL DEFEND (AT THE OPTION OF THE CITY), INDEMNIFY, AND HOLD THE CITY, ITS SUCCESSORS, ASSIGNS, OFFICERS, EMPLOYEES AND ELECTED OFFICIALS HARMLESS FROM AND AGAINST ALL INDEMNIFIED CLAIMS DIRECTLY ARISING OUT OF, INCIDENT TO, CONCERNING OR RESULTING FROM THE FAULT OF THE CONTRACTOR, OR THE CONTRACTOR'S AGENTS, EMPLOYEES OR SUBCONTRACTORS, IN THE PERFORMANCE OF THE CONTRACTOR’S OBLIGATIONS UNDER THE CONTRACT. NOTHING HEREIN SHALL BE DEEMED TO LIMIT THE RIGHTS OF THE CITY OR THE CONTRACTOR (INCLUDING, BUT NOT LIMITED TO, THE DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 220 Contract # 7597 RIGHT TO SEEK CONTRIBUTION) AGAINST ANY THIRD PARTY WHO MAY BE LIABLE FOR AN INDEMNIFIED CLAIM. 32. INSURANCE: The following insurance requirements are applicable, in addition to the specific insurance requirements detailed in Appendix A for services only. The successful firm shall procure and maintain insurance of the types and in the minimum amounts acceptable to the City of Denton. The insurance shall be written by a company licensed to do business in the State of Texas and satisfactory to the City of Denton. A. General Requirements: i. The Contractor shall at a minimum carry insurance in the types and amounts indicated and agreed to, as submitted to the City and approved by the City within the procurement process, for the duration of the Contract, including extension options and hold over periods, and during any warranty period. ii. The Contractor shall provide Certificates of Insurance with the coverage’s and endorsements required to the City as verification of coverage prior to contract execution and within fourteen (14) calendar days after written request from the City. Failure to provide the required Certificate of Insurance may subject the Offer to disqualification from consideration for award. The Contractor must also forward a Certificate of Insurance to the City whenever a previously identified policy period has expired, or an extension option or hold over period is exercised, as verification of continuing coverage. iii. The Contractor shall not commence work until the required insurance is obtained and until such insurance has been reviewed by the City. Approval of insurance by the City shall not relieve or decrease the liability of the Contractor hereunder and shall not be construed to be a limitation of liability on the part of the Contractor. iv. The Contractor must submit certificates of insurance to the City for all subcontractors prior to the subcontractors commencing work on the project. v. The Contractor’s and all subcontractors’ insurance coverage shall be written by companies licensed to do business in the State of Texas at the time the policies are issued and shall be written by companies with A.M. Best ratings of A- VII or better. The City will accept workers’ compensation coverage written by the Texas Workers’ Compensation Insurance Fund. vi. All endorsements naming the City as additional insured, waivers, and notices of cancellation endorsements as well as the Certificate of Insurance shall contain the solicitation number and the following information: City of Denton Materials Management Department 901B Texas Street Denton, Texas 76209 vii. The “other” insurance clause shall not apply to the City where the City is an additional insured shown on any policy. It is intended that policies required in the Contract, covering both the City and the Contractor, shall be considered primary coverage as applicable. viii. If insurance policies are not written for amounts agreed to with the City, the Contractor shall carry Umbrella or Excess Liability Insurance for any differences in amounts specified. If Excess Liability Insurance is provided, it shall follow the form of the primary coverage. ix. The City shall be entitled, upon request, at an agreed upon location, and without expense, to review certified copies of policies and endorsements thereto and may make any reasonable requests for deletion or revision or modification of particular policy terms, conditions, limitations, or exclusions except where policy provisions are established by law DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 221 Contract # 7597 or regulations binding upon either of the parties hereto or the underwriter on any such policies. x. The City reserves the right to review the insurance requirements set forth during the effective period of the Contract and to make reasonable adjustments to insurance coverage, limits, and exclusions when deemed necessary and prudent by the City based upon changes in statutory law, court decisions, the claims history of the industry or financial condition of the insurance company as well as the Contractor. xi. The Contractor shall not cause any insurance to be canceled nor permit any insurance to lapse during the term of the Contract or as required in the Contract. xii. The Contractor shall be responsible for premiums, deductibles and self-insured retentions, if any, stated in policies. All deductibles or self-insured retentions shall be disclosed on the Certificate of Insurance. xiii. The Contractor shall endeavor to provide the City thirty (30) calendar days’ written notice of erosion of the aggregate limits below occurrence limits for all applicable coverage’s indicated within the Contract. xiv. The insurance coverage’s specified in within the solicitation and requirements are required minimums and are not intended to limit the responsibility or liability of the Contractor. B. Specific Coverage Requirements: Specific insurance requirements are contained in the solicitation instrument. 33. CLAIMS: If any claim, demand, suit, or other action is asserted against the Contractor which arises under or concerns the Contract, or which could have a material adverse effect on the Contractor’s ability to perform thereunder, the Contractor shall give written notice thereof to the City within ten (10) calendar days after receipt of notice by the Contractor. Such notice to the City shall state the date of notification of any such claim, demand, suit, or other action; the names and addresses of the claimant(s); the basis thereof; and the name of each person against whom such claim is being asserted. Such notice shall be delivered personally or by mail and shall be sent to the City and to the Denton City Attorney. Personal delivery to the City Attorney shall be to City Hall, 215 East McKinney Street, Denton, Texas 76201. 34. NOTICES: Unless otherwise specified, all notices, requests, or other communications required or appropriate to be given under the Contract shall be in writing and shall be deemed delivered three (3) business days after postmarked if sent by U.S. Postal Service Certified or Registered Mail, Return Receipt Requested. Notices delivered by other means shall be deemed delivered upon receipt by the addressee. Routine communications may be made by first class mail, telefax, or other commercially accepted means. Notices to the Contractor shall be sent to the address specified in the Contractor’s Offer, or at such other address as a party may notify the other in writing. Notices to the City shall be addressed to the City at 901B Texas Street, Denton, Texas 76209 and marked to the attention of the Purchasing Manager. 35. RIGHTS TO BID, PROPOSAL AND CONTRACTUAL MATERIAL: All material submitted by the Contractor to the City shall become property of the City upon receipt. Any portions of such material claimed by the Contractor to be proprietary must be clearly marked as such. Determination of the public nature of the material is subject to the Texas Public Information Act, Chapter 552, and Texas Government Code. 36. NO WARRANTY BY CITY AGAINST INFRINGEMENTS: The Contractor represents DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 222 Contract # 7597 and warrants to the City that: (i) the Contractor shall provide the City good and indefeasible title to the deliverables and (ii) the deliverables supplied by the Contractor in accordance with the specifications in the Contract will not infringe, directly or contributorily, any patent, trademark, copyright, trade secret, or any other intellectual property right of any kind of any third party; that no claims have been made by any person or entity with respect to the ownership or operation of the deliverables and the Contractor does not know of any valid basis for any such claims. The Contractor shall, at its sole expense, defend, indemnify, and hold the City harmless from and against all liability, damages, and costs (including court costs and reasonable fees of attorneys and other professionals) arising out of or resulting from: (i) any claim that the City’s exercise anywhere in the world of the rights associated with the City’s’ ownership, and if applicable, license rights, and its use of the deliverables infringes the intellectual property rights of any third party; or (ii) the Contractor’s breach of any of Contractor’s representations or warranties stated in this Contract. In the event of any such claim, the City shall have the right to monitor such claim or at its option engage its own separate counsel to act as co-counsel on the City’s behalf. Further, Contractor agrees that the City’s specifications regarding the deliverables shall in no way diminish Contractor’s warranties or obligations under this paragraph and the City makes no warranty that the production, development, or delivery of such deliverables will not impact such warranties of Contractor. 37. CONFIDENTIALITY: In order to provide the deliverables to the City, Contractor may require access to certain of the City’s and/or its licensors’ confidential information (including inventions, employee information, trade secrets, confidential know-how, confidential business information, and other information which the City or its licensors consider confidential) (collectively, “Confidential Information”). Contractor acknowledges and agrees that the Confidential Information is the valuable property of the City and/or its licensors and any unauthorized use, disclosure, dissemination, or other release of the Confidential Information will substantially injure the City and/or its licensors. The Contractor (including its employees, subcontractors, agents, or representatives) agrees that it will maintain the Confidential Information in strict confidence and shall not disclose, disseminate, copy, divulge, recreate, or otherwise use the Confidential Information without the prior written consent of the City or in a manner not expressly permitted under this Agreement, unless the Confidential Information is required to be disclosed by law or an order of any court or other governmental authority with proper jurisdiction, provided the Contractor promptly notifies the City before disclosing such information so as to permit the City reasonable time to seek an appropriate protective order. The Contractor agrees to use protective measures no less stringent than the Contractor uses within its own business to protect its own most valuable information, which protective measures shall under all circumstances be at least reasonable measures to ensure the continued confidentiality of the Confidential Information. 38. OWNERSHIP AND USE OF DELIVERABLES: The City shall own all rights, titles, and interests throughout the world in and to the deliverables. A. Patents. As to any patentable subject matter contained in the deliverables, the Contractor agrees to disclose such patentable subject matter to the City. Further, if requested by the City, the Contractor agrees to assign and, if necessary, cause each of its employees to assign the entire right, title, and interest to specific inventions under such patentable subject matter to the City and to execute, acknowledge, and deliver and, if necessary, cause each of its employees to execute, acknowledge, and deliver an assignment of letters patent, in a form to be reasonably approved by the City, to the City upon request by the City. B. Copyrights. As to any deliverables containing copyrightable subject matter, the Contractor DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 223 Contract # 7597 agrees that upon their creation, such deliverables shall be considered as work made-for-hire by the Contractor for the City and the City shall own all copyrights in and to such deliverables, provided however, that nothing in this Paragraph 38 shall negate the City’s sole or joint ownership of any such deliverables arising by virtue of the City’s sole or joint authorship of such deliverables. Should by operation of law, such deliverables not be considered works made-for-hire, the Contractor hereby assigns to the City (and agrees to cause each of its employees providing services to the City hereunder to execute, acknowledge, and deliver an assignment to the City of) all worldwide right, title, and interest in and to such deliverables. With respect to such work made- for-hire, the Contractor agrees to execute, acknowledge, and deliver and cause each of its employees providing services to the City hereunder to execute, acknowledge, and deliver a work-made-for-hire agreement, in a form to be reasonably approved by the City, to the City upon delivery of such deliverables to the City or at such other time as the City may request. C. Additional Assignments. The Contractor further agrees to, and if applicable, cause each of its employees to, execute, acknowledge, and deliver all applications, specifications, oaths, assignments, and all other instruments which the City might reasonably deem necessary in order to apply for and obtain copyright protection, mask work registration, trademark registration and/or protection, letters patent, or any similar rights in any and all countries and in order to assign and convey to the City, its successors, assigns and nominees, the sole and exclusive right, title, and interest in and to the deliverables. The Contractor’s obligations to execute, acknowledge, and deliver (or cause to be executed, acknowledged, and delivered) instruments or papers such as those described in this Paragraph 38 a., b., and c. shall continue after the termination of this Contract with respect to such deliverables. In the event the City should not seek to obtain copyright protection, mask work registration or patent protection for any of the deliverables, but should desire to keep the same secret, the Contractor agrees to treat the same as Confidential Information under the terms of Paragraph 37 above. 39. PUBLICATIONS: All published material and written reports submitted under the Contract must be originally developed material unless otherwise specifically provided in the Contract. When material not originally developed is included in a report in any form, the source shall be identified. 40. ADVERTISING: The Contractor shall not advertise or publish, without the City’s prior consent, the fact that the City has entered into the Contract, except to the extent required by law. 41. NO CONTINGENT FEES: The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure the Contract upon any agreement or understanding for commission, percentage, brokerage, or contingent fee, excepting bona fide employees of bona fide established commercial or selling agencies maintained by the Contractor for the purpose of securing business. For breach or violation of this warranty, the City shall have the right, in addition to any other remedy available, to cancel the Contract without liability and to deduct from any amounts owed to the Contractor, or otherwise recover, the full amount of such commission, percentage, brokerage or contingent fee. 42. GRATUITIES: The City may, by written notice to the Contractor, cancel the Contract without liability if it is determined by the City that gratuities were offered or given by the Contractor or any agent or representative of the Contractor to any officer or employee of the City of Denton with a view toward securing the Contract or securing favorable treatment with respect to the awarding DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 224 Contract # 7597 or amending or the making of any determinations with respect to the performing of such contract. In the event the Contract is canceled by the City pursuant to this provision, the City shall be entitled, in addition to any other rights and remedies, to recover or withhold the amount of the cost incurred by the Contractor in providing such gratuities. 43. PROHIBITION AGAINST PERSONAL INTEREST IN CONTRACTS: No officer, employee, independent consultant, or elected official of the City who is involved in the development, evaluation, or decision-making process of the performance of any solicitation shall have a financial interest, direct or indirect, in the Contract resulting from that solicitation solicitation as defined in the City’s Ethic Ordinance 18-757 and in the City Charter chapter 2 article XI(Ethics). Any willful violation of this section shall constitute impropriety in office, and any officer or employee guilty thereof shall be subject to disciplinary action up to and including dismissal. Any violation of this provision, with the knowledge, expressed or implied, of the Contractor shall render the Contract voidable by the City. The Contractor shall complete and submit the City’s Conflict of Interest Questionnaire. 44. INDEPENDENT CONTRACTOR: The Contract shall not be construed as creating an employer/employee relationship, a partnership, or a joint venture. The Contractor’s services shall be those of an independent contractor. The Contractor agrees and understands that the Contract does not grant any rights or privileges established for employees of the City of Denton, Texas for the purposes of income tax, withholding, social security taxes, vacation or sick leave benefits, worker’s compensation, or any other City employee benefit. The City shall not have supervision and control of the Contractor or any employee of the Contractor, and it is expressly understood that Contractor shall perform the services hereunder according to the attached specifications at the general direction of the City Manager of the City of Denton, Texas, or his designee under this agreement. The contractor is expressly free to advertise and perform services for other parties while performing services for the City. 45. ASSIGNMENT-DELEGATION: The Contract shall be binding upon and ensure to the benefit of the City and the Contractor and their respective successors and assigns, provided however, that no right or interest in the Contract shall be assigned and no obligation shall be delegated by the Contractor without the prior written consent of the City. Any attempted assignment or delegation by the Contractor shall be void unless made in conformity with this paragraph. The Contract is not intended to confer rights or benefits on any person, firm or entity not a party hereto; it being the intention of the parties that there are no third party beneficiaries to the Contract. The Vendor shall notify the City’s Purchasing Manager, in writing, of a company name, ownership, or address change for the purpose of maintaining updated City records. The president of the company or authorized official must sign the letter. A letter indicating changes in a company name or ownership must be accompanied with supporting legal documentation such as an updated W-9, documents filed with the state indicating such change, copy of the board of director’s resolution approving the action, or an executed merger or acquisition agreement. Failure to do so may adversely impact future invoice payments. 46. WAIVER: No claim or right arising out of a breach of the Contract can be discharged in whole or in part by a waiver or renunciation of the claim or right unless the waiver or renunciation is supported by consideration and is in writing signed by the aggrieved party. No waiver by either DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 225 Contract # 7597 the Contractor or the City of any one or more events of default by the other party shall operate as, or be construed to be, a permanent waiver of any rights or obligations under the Contract, or an express or implied acceptance of any other existing or future default or defaults, whether of a similar or different character. 47. MODIFICATIONS: The Contract can be modified or amended only by a writing signed by both parties. No pre-printed or similar terms on any the Contractor invoice, order or other document shall have any force or effect to change the terms, covenants, and conditions of the Contract. 48. INTERPRETATION: The Contract is intended by the parties as a final, complete and exclusive statement of the terms of their agreement. No course of prior dealing between the parties or course of performance or usage of the trade shall be relevant to supplement or explain any term used in the Contract. Although the Contract may have been substantially drafted by one party, it is the intent of the parties that all provisions be construed in a manner to be fair to both parties, reading no provisions more strictly against one party or the other. Whenever a term defined by the Uniform Commercial Code, as enacted by the State of Texas, is used in the Contract, the UCC definition shall control, unless otherwise defined in the Contract. 49. DISPUTE RESOLUTION: A. If a dispute arises out of or relates to the Contract, or the breach thereof, the parties agree to negotiate prior to prosecuting a suit for damages. However, this section does not prohibit the filing of a lawsuit to toll the running of a statute of limitations or to seek injunctive relief. Either party may make a written request for a meeting between representatives of each party within fourteen (14) calendar days after receipt of the request or such later period as agreed by the parties. Each party shall include, at a minimum, one (1) senior level individual with decision-making authority regarding the dispute. The purpose of this and any subsequent meeting is to attempt in good faith to negotiate a resolution of the dispute. If, within thirty (30) calendar days after such meeting, the parties have not succeeded in negotiating a resolution of the dispute, they will proceed directly to mediation as described below. Negotiation may be waived by a written agreement signed by both parties, in which event the parties may proceed directly to mediation as described below. B. If the efforts to resolve the dispute through negotiation fail, or the parties waive the negotiation process, the parties may select, within thirty (30) calendar days, a mediator trained in mediation skills to assist with resolution of the dispute. Should they choose this option; the City and the Contractor agree to act in good faith in the selection of the mediator and to give consideration to qualified individuals nominated to act as mediator. Nothing in the Contract prevents the parties from relying on the skills of a person who is trained in the subject matter of the dispute or a contract interpretation expert. If the parties fail to agree on a mediator within thirty (30) calendar days of initiation of the mediation process, the mediator shall be selected by the Denton County Alternative Dispute Resolution Program (DCAP). The parties agree to participate in mediation in good faith for up to thirty (30) calendar days from the date of the first mediation session. The City and the Contractor will share the mediator’s fees equally and the parties will bear their own costs of participation such as fees for any consultants or attorneys they may utilize to represent them or otherwise assist them in the mediation. 50. JURISDICTION AND VENUE: The Contract is made under and shall be governed by the laws of the State of Texas, including, when applicable, the Uniform Commercial Code as adopted in Texas, V.T.C.A., Bus. & Comm. Code, Chapter 1, excluding any rule or principle that would DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 226 Contract # 7597 refer to and apply the substantive law of another state or jurisdiction. All issues arising from this Contract shall be resolved in the courts of Denton County, Texas and the parties agree to submit to the exclusive personal jurisdiction of such courts. The foregoing, however, shall not be construed or interpreted to limit or restrict the right or ability of the City to seek and secure injunctive relief from any competent authority as contemplated herein. 51. INVALIDITY: The invalidity, illegality, or unenforceability of any provision of the Contract shall in no way affect the validity or enforceability of any other portion or provision of the Contract. Any void provision shall be deemed severed from the Contract and the balance of the Contract shall be construed and enforced as if the Contract did not contain the particular portion or provision held to be void. The parties further agree to reform the Contract to replace any stricken provision with a valid provision that comes as close as possible to the intent of the stricken provision. The provisions of this section shall not prevent this entire Contract from being void should a provision which is the essence of the Contract be determined to be void. 52. HOLIDAYS: The following holidays are observed by the City: New Year’s Day (observed) MLK Day Memorial Day 4th of July Labor Day Thanksgiving Day Day After Thanksgiving Christmas Eve (observed) Christmas Day (observed) New Year’s Day (observed) If a Legal Holiday falls on Saturday, it will be observed on the preceding Friday. If a Legal Holiday falls on Sunday, it will be observed on the following Monday. Normal hours of operation shall be between 8:00 am and 4:00 pm, Monday through Friday, excluding City of Denton Holidays. Any scheduled deliveries or work performance not within the normal hours of operation must be approved by the City Manager of Denton, Texas or his authorized designee. 53. SURVIVABILITY OF OBLIGATIONS: All provisions of the Contract that impose continuing obligations on the parties, including but not limited to the warranty, indemnity, and confidentiality obligations of the parties, shall survive the expiration or termination of the Contract. 54. NON-SUSPENSION OR DEBARMENT CERTIFICATION: The City of Denton is prohibited from contracting with or making prime or sub-awards to parties that are suspended or debarred or whose principals are suspended or debarred from Federal, State, or City of Denton Contracts. By accepting a Contract with the City, the Vendor certifies that its firm and its principals are not currently suspended or debarred from doing business with the Federal Government, as indicated by the General Services Administration List of Parties Excluded from Federal Procurement and Non-Procurement Programs, the State of Texas, or the City of Denton. 55. EQUAL OPPORTUNITY A. Equal Employment Opportunity: No Offeror, or Offeror’s agent, shall engage in any discriminatory employment practice. No person shall, on the grounds of race, sex, sexual DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 227 Contract # 7597 orientation, age, disability, creed, color, genetic testing, or national origin, be refused the benefits of, or be otherwise subjected to discrimination under any activities resulting from this RFQ. B. Americans with Disabilities Act (ADA) Compliance: No Offeror, or Offeror’s agent, shall engage in any discriminatory employment practice against individuals with disabilities as defined in the ADA. 56. BUY AMERICAN ACT-SUPPLIES (Applicable to certain federally funded requirements) The following federally funded requirements are applicable. A. Definitions. As used in this paragraph – i. "Component" means an article, material, or supply incorporated directly into an end product. ii. "Cost of components" means - (1) For components purchased by the Contractor, the acquisition cost, including transportation costs to the place of incorporation into the end product (whether or not such costs are paid to a domestic firm), and any applicable duty (whether or not a duty-free entry certificate is issued); or (2) For components manufactured by the Contractor, all costs associated with the manufacture of the component, including transportation costs as described in paragraph (1) of this definition, plus allocable overhead costs, but excluding profit. Cost of components does not include any costs associated with the manufacture of the end product. iii. "Domestic end product" means- (1) An unmanufactured end product mined or produced in the United States; or (2) An end product manufactured in the United States, if the cost of its components mined, produced, or manufactured in the United States exceeds 50 percent of the cost of all its components. Components of foreign origin of the same class or kind as those that the agency determines are not mined, produced, or manufactured in sufficient and reasonably available commercial quantities of a satisfactory quality are treated as domestic. Scrap generated, collected, and prepared for processing in the United States is considered domestic. iv. "End product" means those articles, materials, and supplies to be acquired under the contract for public use. v. "Foreign end product" means an end product other than a domestic end product. vi. "United States" means the 50 States, the District of Columbia, and outlying areas. B. The Buy American Act (41 U.S.C. 10a - 10d) provides a preference for domestic end products for supplies acquired for use in the United States. C. The City does not maintain a list of foreign articles that will be treated as domestic for this Contract; but will consider for approval foreign articles as domestic for this product if the articles are on a list approved by another Governmental Agency. The Offeror shall submit documentation with their Offer demonstrating that the article is on an approved Governmental list. D. The Contractor shall deliver only domestic end products except to the extent that it specified delivery of foreign end products in the provision of the Solicitation entitled "Buy American Act Certificate". 57. RIGHT TO INFORMATION: The City of Denton reserves the right to use any and all information presented in any response to this contract, whether amended or not, except as prohibited by law. Selection of rejection of the submittal does not affect this right. 58. LICENSE FEES OR TAXES: Provided the solicitation requires an awarded contractor or supplier to be licensed by the State of Texas, any and all fees and taxes are the responsibility of the respondent. DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 228 Contract # 7597 59. PREVAILING WAGE RATES: The contractor shall comply with prevailing wage rates as defined by the United States Department of Labor Davis-Bacon Wage Determination at http://www.dol.gov/whd/contracts/dbra.htm and at the Wage Determinations website www.wdol.gov for Denton County, Texas (WD-2509). 60. COMPLIANCE WITH ALL STATE, FEDERAL, AND LOCAL LAWS: The contractor or supplier shall comply with all State, Federal, and Local laws and requirements. The Respondent must comply with all applicable laws at all times, including, without limitation, the following: (i) §36.02 of the Texas Penal Code, which prohibits bribery; (ii) §36.09 of the Texas Penal Code, which prohibits the offering or conferring of benefits to public servants. The Respondent shall give all notices and comply with all laws and regulations applicable to furnishing and performance of the Contract. 61. FEDERAL, STATE, AND LOCAL REQUIREMENTS: Respondent shall demonstrate on-site compliance with the Federal Tax Reform Act of 1986, Section 1706, amending Section 530 of the Revenue Act of 1978, dealing with issuance of Form W-2's to common law employees. Respondent is responsible for both federal and State unemployment insurance coverage and standard Workers’ Compensation insurance coverage. Respondent shall ensure compliance with all federal and State tax laws and withholding requirements. The City of Denton shall not be liable to Respondent or its employees for any Unemployment or Workers' Compensation coverage, or federal or State withholding requirements. Contractor shall indemnify the City of Denton and shall pay all costs, penalties, or losses resulting from Respondent's omission or breach of this Section. 62. DRUG FREE WORKPLACE: The contractor shall comply with the applicable provisions of the Drug-Free Work Place Act of 1988 (Public Law 100-690, Title V, Subtitle D; 41 U.S.C. 701 ET SEQ.) and maintain a drug-free work environment; and the final rule, government-wide requirements for drug-free work place (grants), issued by the Office of Management and Budget and the Department of Defense (32 CFR Part 280, Subpart F) to implement the provisions of the Drug-Free Work Place Act of 1988 is incorporated by reference and the contractor shall comply with the relevant provisions thereof, including any amendments to the final rule that may hereafter be issued. 63. RESPONDENT LIABILITY FOR DAMAGE TO GOVERNMENT PROPERTY: The Respondent shall be liable for all damages to government-owned, leased, or occupied property and equipment caused by the Respondent and its employees, agents, subcontractors, and suppliers, including any delivery or cartage company, in connection with any performance pursuant to the Contract. The Respondent shall notify the City of Denton Procurement Manager in writing of any such damage within one (1) calendar day. 64. FORCE MAJEURE: The City of Denton, any Customer, and the Respondent shall not be responsible for performance under the Contract should it be prevented from performance by an act of war, order of legal authority, act of God, or other unavoidable cause not attributable to the fault or negligence of the City of Denton. In the event of an occurrence under this Section, the Respondent will be excused from any further performance or observance of the requirements so affected for as long as such circumstances prevail and the Respondent continues to use commercially reasonable efforts to recommence performance or observance whenever and to whatever extent possible without delay. The Respondent shall immediately notify the City of Denton Procurement Manager by telephone (to be confirmed in writing within five (5) calendar DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 229 Contract # 7597 days of the inception of such occurrence) and describe at a reasonable level of detail the circumstances causing the non-performance or delay in performance. 65. NON-WAIVER OF RIGHTS: Failure of a Party to require performance by another Party under the Contract will not affect the right of such Party to require performance in the future. No delay, failure, or waiver of either Party’s exercise or partial exercise of any right or remedy under the Contract shall operate to limit, impair, preclude, cancel, waive or otherwise affect such right or remedy. A waiver by a Party of any breach of any term of the Contract will not be construed as a waiver of any continuing or succeeding breach. 66. NO WAIVER OF SOVEREIGN IMMUNITY: The Parties expressly agree that no provision of the Contract is in any way intended to constitute a waiver by the City of Denton of any immunities from suit or from liability that the City of Denton may have by operation of law. 67. RECORDS RETENTION: The Respondent shall retain all financial records, supporting documents, statistical records, and any other records or books relating to the performances called for in the Contract. The Respondent shall retain all such records for a period of four (4) years after the expiration of the Contract, or until the CPA or State Auditor's Office is satisfied that all audit and litigation matters are resolved, whichever period is longer. The Respondent shall grant access to all books, records and documents pertinent to the Contract to the CPA, the State Auditor of Texas, and any federal governmental entity that has authority to review records due to federal funds being spent under the Contract. Should a conflict arise between any of the contract documents, it shall be resolved with the following order of precedence (if applicable). In any event, the final negotiated contract shall take precedence over any and all contract documents to the extent of such conflict. 1. Final negotiated contract 2. RFP/Bid documents 3. City’s standard terms and conditions 4. Purchase order 5. Supplier terms and conditions Exhibit D INSURANCE REQUIREMENTS AND WORKERS’ COMPENSATION REQUIREMENTS Upon contract execution, all insurance requirements shall become contractual obligations, which the successful contractor shall have a duty to maintain throughout the course of this contract. STANDARD PROVISIONS: Without limiting any of the other obligations or liabilities of the Contractor, the Contractor shall provide and maintain until the contracted work has been completed and accepted by the City of Denton, Owner, the minimum insurance coverage as indicated hereinafter. Contractor shall file with the Purchasing Department satisfactory certificates of insurance including any applicable addendum or endorsements, containing the contract number and title of the project. Contractor may, upon written request to the Purchasing Department, DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 230 Contract # 7597 ask for clarification of any insurance requirements at any time; however, Contractor shall not commence any work or deliver any material until he or she receives notification that the contract has been accepted, approved, and signed by the City of Denton. All insurance policies proposed or obtained in satisfaction of these requirements shall comply with the following general specifications, and shall be maintained in compliance with these general specifications throughout the duration of the Contract, or longer, if so noted:  Each policy shall be issued by a company authorized to do business in the State of Texas with an A.M. Best Company rating of at least A or better.  Any deductibles or self-insured retentions shall be declared in the proposal. If requested by the City, the insurer shall reduce or eliminate such deductibles or self-insured retentions with respect to the City, its officials, agents, employees and volunteers; or, the contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.  Liability policies shall be endorsed to provide the following:  Name as Additional Insured the City of Denton, its Officials, Agents, Employees and volunteers.  That such insurance is primary to any other insurance available to the Additional Insured with respect to claims covered under the policy and that this insurance applies separately to each insured against whom claim is made or suit is brought. The inclusion of more than one insured shall not operate to increase the insurer's limit of liability.  Provide a Waiver of Subrogation in favor of the City of Denton, its officials, agents, employees, and volunteers.  Cancellation: City requires 30 day written notice should any of the policies described on the certificate be cancelled or materially changed before the expiration date.  Should any of the required insurance be provided under a claims made form, Contractor shall maintain such coverage continuously throughout the term of this contract and, without lapse, for a period of three years beyond the contract expiration, such that occurrences arising during the contract term which give rise to claims made after expiration of the contract shall be covered.  Should any of the required insurance be provided under a form of coverage that includes a general annual aggregate limit providing for claims investigation or legal defense costs to be included in the general annual aggregate limit, the Contractor shall either double the occurrence limits or obtain Owners and Contractors Protective Liability Insurance.  Should any required insurance lapse during the contract term, requests for payments originating after such lapse shall not be processed until the City receives satisfactory evidence of reinstated coverage as required by this contract, effective as of the lapse date. If insurance is not reinstated, City may, at its sole option, terminate this agreement effective on the date of the lapse. DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 231 Contract # 7597  Contractors insurance shall be primary on any claim arising out of contractor’s activities including the activities of Contractors subcontractors or assignees. Any applicable coverages carried by the City will only be considered once all other coverages have been exhausted including contractors insurance, bonds, and insurance carried by subcontractors or assignees. SPECIFIC ADDITIONAL INSURANCE REQUIREMENTS: All insurance policies proposed or obtained in satisfaction of this Contract shall additionally comply with the following marked specifications, and shall be maintained in compliance with these additional specifications throughout the duration of the Contract, or longer, if so noted: [X] A. General Liability Insurance: General Liability insurance with combined single limits of not less than $1,000,000.00 shall be provided and maintained by the Contractor. The policy shall be written on an occurrence basis either in a single policy or in a combination of underlying and umbrella or excess policies. If the Commercial General Liability form (ISO Form CG 0001 current edition) is used:  Coverage A shall include premises, operations, products, and completed operations, independent contractors, contractual liability covering this contract and broad form property damage coverage.  Coverage B shall include personal injury.  Coverage C, medical payments, is not required. If the Comprehensive General Liability form (ISO Form GL 0002 Current Edition and ISO Form GL 0404) is used, it shall include at least:  Bodily injury and Property Damage Liability for premises, operations, products and completed operations, independent contractors and property damage resulting from explosion, collapse or underground (XCU) exposures.  Broad form contractual liability (preferably by endorsement) covering this contract, personal injury liability and broad form property damage liability. [X] Automobile Liability Insurance: Contractor shall provide Commercial Automobile Liability insurance with Combined Single Limits (CSL) of not less than $500,000 either in a single policy or in a combination of basic and umbrella or excess policies. The policy will include bodily injury and property damage liability arising out of the operation, maintenance and use of all automobiles and mobile equipment used in conjunction with this contract. Satisfaction of the above requirement shall be in the form of a policy endorsement for:  any auto, or DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 232 Contract # 7597  all owned hired and non-owned autos. [X] Workers’ Compensation Insurance Contractor shall purchase and maintain Workers’ Compensation insurance which, in addition to meeting the minimum statutory requirements for issuance of such insurance, has Employer's Liability limits of at least $100,000 for each accident, $100,000 per each employee, and a $500,000 policy limit for occupational disease. The City need not be named as an "Additional Insured" but the insurer shall agree to waive all rights of subrogation against the City, its officials, agents, employees and volunteers for any work performed for the City by the Named Insured. For building or construction projects, the Contractor shall comply with the provisions of Attachment 1 in accordance with §406.096 of the Texas Labor Code and rule 28TAC 110.110 of the Texas Workers’ Compensation Commission (TWCC). [ ] Owner's and Contractor's Protective Liability Insurance The Contractor shall obtain, pay for and maintain at all times during the prosecution of the work under this contract, an Owner's and Contractor's Protective Liability insurance policy naming the City as insured for property damage and bodily injury which may arise in the prosecution of the work or Contractor's operations under this contract. Coverage shall be on an “occurrence" basis and the policy shall be issued by the same insurance company that carries the Contractor's liability insurance. Policy limits will be at least $500,000.00 combined bodily injury and property damage per occurrence with a $1,000,000.00 aggregate. [ ] Fire Damage Legal Liability Insurance Coverage is required if Broad form General Liability is not provided or is unavailable to the contractor or if a contractor leases or rents a portion of a City building. Limits of not less than each occurrence are required. [ ] Professional Liability Insurance Professional liability insurance with limits not less than $1,000,000.00 per claim with respect to negligent acts, errors or omissions in connection with professional services is required under this Agreement. [ ] Builders' Risk Insurance Builders' Risk Insurance, on an All-Risk form for 100% of the completed value shall be provided. Such policy shall include as "Named Insured" the City of Denton and all subcontractors as their interests may appear. [ ] Environmental Liability Insurance Environmental liability insurance for $1,000,000 to cover all hazards contemplated by this contract. DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 233 Contract # 7597 [ ] Riggers Insurance The Contractor shall provide coverage for Rigger’s Liability. Said coverage may be provided by a Rigger’s Liability endorsement on the existing CGL coverage; through and Installation Floater covering rigging contractors; or through ISO form IH 00 91 12 11, Rigger’s Liability Coverage form. Said coverage shall mirror the limits provided by the CGL coverage [ x] Commercial Crime Provides coverage for the theft or disappearance of cash or checks, robbery inside/outside the premises, burglary of the premises, and employee fidelity. The employee fidelity portion of this coverage should be written on a “blanket” basis to cover all employees, including new hires. This type insurance should be required if the contractor has access to City funds. Limits of not less than $1,000,000.00 each occurrence are required. [ ] Additional Insurance Other insurance may be required on an individual basis for extra hazardous contracts and specific service agreements. If such additional insurance is required for a specific contract, that requirement will be described in the "Specific Conditions" of the contract specifications. DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 234 Contract # 7597 ATTACHMENT 1 [] Workers’ Compensation Coverage for Building or Construction Projects for Governmental Entities A. Definitions: Certificate of coverage ("certificate")-A copy of a certificate of insurance, a certificate of authority to self-insure issued by the commission, or a coverage agreement (TWCC-81, TWCC-82, TWCC-83, or TWCC-84), showing statutory workers' compensation insurance coverage for the person's or entity's employees providing services on a project, for the duration of the project. Duration of the project - includes the time from the beginning of the work on the project until the contractor's/person's work on the project has been completed and accepted by the governmental entity. Persons providing services on the project ("subcontractor" in §406.096) - includes all persons or entities performing all or part of the services the contractor has undertaken to perform on the project, regardless of whether that person contracted directly with the contractor and regardless of whether that person has employees. This includes, without limitation, independent contractors, subcontractors, leasing companies, motor carriers, owner- operators, employees of any such entity, or employees of any entity which furnishes persons to provide services on the project. "Services" include, without limitation, providing, hauling, or delivering equipment or materials, or providing labor, transportation, or other service related to a project. "Services" does not include activities unrelated to the project, such as food/beverage vendors, office supply deliveries, and delivery of portable toilets. B. The contractor shall provide coverage, based on proper reporting of classification codes and payroll amounts and filing of any overage agreements, which meets the statutory requirements of Texas Labor Code, Section 401.011(44) for all employees of the Contractor providing services on the project, for the duration of the project. C. The Contractor must provide a certificate of coverage to the governmental entity prior to being awarded the contract. D. If the coverage period shown on the contractor's current certificate of coverage ends during the duration of the project, the contractor must, prior to the end of the coverage period, file a new certificate of coverage with the governmental entity showing that coverage has been extended. E. The contractor shall obtain from each person providing services on a project, and provide to the governmental entity: 1. a certificate of coverage, prior to that person beginning work on the DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 235 Contract # 7597 project, so the governmental entity will have on file certificates of coverage showing coverage for all persons providing services on the project; and 2. no later than seven days after receipt by the contractor, a new certificate of coverage showing extension of coverage, if the coverage period shown on the current certificate of coverage ends during the duration of the project. F. The contractor shall retain all required certificates of coverage for the duration of the project and for one year thereafter. G. The contractor shall notify the governmental entity in writing by certified mail or personal delivery, within 10 days after the contractor knew or should have known, of any change that materially affects the provision of coverage of any person providing services on the project. H. The contractor shall post on each project site a notice, in the text, form and manner prescribed by the Texas Workers' Compensation Commission, informing all persons providing services on the project that they are required to be covered, and stating how a person may verify coverage and report lack of coverage. I. The contractor shall contractually require each person with whom it contracts to provide services on a project, to: 1. provide coverage, based on proper reporting of classification codes and payroll amounts and filing of any coverage agreements, which meets the statutory requirements of Texas Labor Code, Section 401.011(44) for all of its employees providing services on the project, for the duration of the project; 2. provide to the contractor, prior to that person beginning work on the project, a certificate of coverage showing that coverage is being provided for all employees of the person providing services on the project, for the duration of the project; 3. provide the contractor, prior to the end of the coverage period, a new certificate of coverage showing extension of coverage, if the coverage period shown on the current certificate of coverage ends during the duration of the project; 4. obtain from each other person with whom it contracts, and provide to the contractor: a. a certificate of coverage, prior to the other person beginning work on the project; and DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 236 Contract # 7597 b. a new certificate of coverage showing extension of coverage, prior to the end of the coverage period, if the coverage period shown on the current certificate of coverage ends during the duration of the project; 5. retain all required certificates of coverage on file for the duration of the project and for one year thereafter; 6. notify the governmental entity in writing by certified mail or personal delivery, within 10 days after the person knew or should have known, of any change that materially affects the provision of coverage of any person providing services on the project; and 7. Contractually require each person with whom it contracts, to perform as required by paragraphs (1) - (7), with the certificates of coverage to be provided to the person for whom they are providing services. J. By signing this contract or providing or causing to be provided a certificate of coverage, the contractor is representing to the governmental entity that all employees of the contractor who will provide services on the project will be covered by workers' compensation coverage for the duration of the project, that the coverage will be based on proper reporting of classification codes and payroll amounts, and that all coverage agreements will be filed with the appropriate insurance carrier or, in the case of a self-insured, with the commission's Division of Self-Insurance Regulation. Providing false or misleading information may subject the contractor to administrative penalties, criminal penalties, civil penalties, or other civil actions. K. The contractor’s failure to comply with any of these provisions is a breach of contract by the contractor which entitles the governmental entity to declare the contract void if the contractor does not remedy the breach within ten days after receipt of notice of breach from the governmental entity. DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 237 Contract # 7597 Exhibit E Certificate of Interested Parties Electronic Filing In 2015, the Texas Legislature adopted House Bill 1295, which added section 2252.908 of the Government Code. The law states that the City may not enter into this contract unless the Contractor submits a disclosure of interested parties (Form 1295) to the City at the time the Contractor submits the signed contract. The Texas Ethics Commission has adopted rules requiring the business entity to file Form 1295 electronically with the Commission. Contractor will be required to furnish a Certificate of Interest Parties before the contract is awarded, in accordance with Government Code 2252.908. The contractor shall: 1. Log onto the State Ethics Commission Website at : https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm 2. Register utilizing the tutorial provided by the State 3. Print a copy of the completed Form 1295 4. Enter the Certificate Number on page 2 of this contract. 5. Complete and sign the Form 1295 6. Email the form to purchasing@cityofdenton.com with the contract number in the subject line. (EX: Contract 1234 – Form 1295) The City must acknowledge the receipt of the filed Form 1295 not later than the 30th day after Council award. Once a Form 1295 is acknowledged, it will be posted to the Texas Ethics Commission’s website within seven business days. DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 238 Exhibit F Price Sheet  Pricing Aspect: Extra Duty Administration: Cost to City of Denton $0.00 Cost to End User:    % fee on officer pay 10%    % fee on cruiser costs 7%    % fee on card payments 3%    Fee on other payment methods $0.00 On‐Duty Scheduling Software:    Addt'l % fee to vendors… 0.50%    OR annual fee to Denton $4,500 DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 239 Exhibit CONFLICT OF INTEREST QUESTIONNAIRE - FORM CIQ For vendor or other person doing business with local governmental entity This questionnaire reflects changes made to the law by H.B. 23, 84th Leg., Regular Session. This questionnaire is being filed in accordance with Chapter 176, Local Government Code, by a vendor who has a business relationship as defined by Section 176.001(1-a) with a local governmental entity and the vendor meets requirements under Section 176.006(a). By law this questionnaire must be filed with the records administrator of the local government entity not later than the 7th business day after the date the vendor becomes aware of facts that require the statement to be filed. See Section 176.006(a-1), Local Government Code. A vendor commits an offense if the vendor knowingly violates Section 176.006, Local Government Code. An offense under this section is a misdemeanor. 1 Name of vendor who has a business relationship with local governmental entity. 2 Check this box if you are filing an update to a previously filed questionnaire. (The law requires that you file an updated completed questionnaire with the appropriate filing authority not later than the 7th business day after the date on which you became aware that the originally filed questionnaire was incomplete or inaccurate.) 3 Name of local government officer about whom the information in this section is being disclosed. Name of Officer This section, (item 3 including subparts A, B, C & D), must be completed for each officer with whom the vendor has an employment or other business relationship as defined by Section 176.001(1-a), Local Government Code. Attach additional pages to this Form CIQ as necessary. A. Is the local government officer named in this section receiving or likely to receive taxable income, other than investment income, from the vendor? Yes No B. Is the vendor receiving or likely to receive taxable income, other than investment income, from or at the direction of the local government officer named in this section AND the taxable income is not received from the local governmental entity? Yes No C. Is the filer of this questionnaire employed by a corporation or other business entity with respect to which the local government officer serves as an officer or director, or holds an ownership of one percent or more? Yes No D. Describe each employment or business and family relationship with the local government officer named in this section. 4 I have no Conflict of Interest to disclose. 5 Signature of vendor doing business with the governmental entity Date DocuSign Envelope ID: F7515943-CAC5-4ADF-A8F9-72186E3D7801 G HART HALSEY, LLC DBA EXTRA DUTY SOLUTIONS 5/1/2021 240 Certificate Of Completion Envelope Id: F7515943CAC54ADFA8F972186E3D7801 Status: Sent Subject: Please DocuSign: City Council Contract 7597-Off Duty Management Source Envelope: Document Pages: 34 Signatures: 4 Envelope Originator: Certificate Pages: 6 Initials: 1 Ginny Brummett AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-06:00) Central Time (US & Canada) 901B Texas Street Denton, TX 76209 Ginny.Brummett@cityofdenton.com IP Address: 198.49.140.104 Record Tracking Status: Original 4/29/2021 10:27:46 AM Holder: Ginny Brummett Ginny.Brummett@cityofdenton.com Location: DocuSign Signer Events Signature Timestamp Ginny Brummett ginny.brummett@cityofdenton.com Buyer City of Denton Security Level: Email, Account Authentication (None) Completed Using IP Address: 198.49.140.104 Sent: 4/29/2021 1:14:25 PM Viewed: 4/29/2021 1:18:13 PM Signed: 4/29/2021 1:27:54 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Lori Hewell lori.hewell@cityofdenton.com Purchasing Manager City of Denton Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 198.49.140.104 Sent: 4/29/2021 1:27:56 PM Viewed: 4/30/2021 8:36:23 AM Signed: 4/30/2021 8:37:18 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Marcella Lunn marcella.lunn@cityofdenton.com Deputy City Attorney City of Denton Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 198.49.140.104 Sent: 4/30/2021 8:37:20 AM Viewed: 4/30/2021 9:16:57 AM Signed: 4/30/2021 11:01:29 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Rich Milliman rmilliman@extradutysolutions.com CEO Hart Halsey LLC DBA Extra Duty Solutions Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 47.20.133.85 Sent: 4/30/2021 11:01:32 AM Viewed: 4/30/2021 11:15:52 AM Signed: 5/1/2021 11:55:55 AM Electronic Record and Signature Disclosure: Accepted: 4/30/2021 11:15:52 AM ID: 6c907699-c506-40dc-b1dd-9e7272723483 241 Signer Events Signature Timestamp Frank Dixon Frank.Dixon@cityofdenton.com Chief of Police Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 107.77.199.156 Signed using mobile Sent: 5/1/2021 11:55:59 AM Viewed: 5/2/2021 11:01:40 AM Signed: 5/2/2021 11:07:41 AM Electronic Record and Signature Disclosure: Accepted: 5/2/2021 11:01:40 AM ID: ecfec2aa-daa0-4be1-9cb7-ace8ba690112 Cheyenne Defee cheyenne.defee@cityofdenton.com Contract Administrator City of Denton Security Level: Email, Account Authentication (None) Sent: 5/2/2021 11:07:44 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Sara Hensley sara.hensley@cityofdenton.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Rosa Rios rosa.rios@cityofdenton.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Accepted: 4/28/2021 10:43:28 AM ID: d27d63bf-b64d-49ec-bdc3-f66149f56cec In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Cheyenne Defee cheyenne.defee@cityofdenton.com Contract Administrator City of Denton Security Level: Email, Account Authentication (None) Sent: 4/29/2021 1:27:56 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Sherri Thurman sherri.thurman@cityofdenton.com City of Denton Security Level: Email, Account Authentication (None) Sent: 5/2/2021 11:07:43 AM 242 Carbon Copy Events Status Timestamp Electronic Record and Signature Disclosure: Not Offered via DocuSign Gretna Jones gretna.jones@cityofdenton.com Legal Secretary City of Denton Security Level: Email, Account Authentication (None) Sent: 5/2/2021 11:07:43 AM Viewed: 5/4/2021 4:34:02 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign City Secretary Office citysecretary@cityofdenton.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Preston Pohler Preston.Pohler@cityofdenton.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 4/29/2021 1:14:25 PM Payment Events Status Timestamps Electronic Record and Signature Disclosure 243 ELECTRONIC RECORD AND SIGNATURE DISCLOSURE From time to time, City of Denton (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through your DocuSign, Inc. (DocuSign) Express user account. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to these terms and conditions, please confirm your agreement by clicking the 'I agree' button at the bottom of this document. Getting paper copies At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. For such copies, as long as you are an authorized user of the DocuSign system you will have the ability to download and print any documents we send to you through your DocuSign user account for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below. Withdrawing your consent If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below. Consequences of changing your mind If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. To indicate to us that you are changing your mind, you must withdraw your consent using the DocuSign 'Withdraw Consent' form on the signing page of your DocuSign account. This will indicate to us that you have withdrawn your consent to receive required notices and disclosures electronically from us and you will no longer be able to use your DocuSign Express user account to receive required notices and consents electronically from us or to sign electronically documents from us. All notices and disclosures will be sent to you electronically Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through your DocuSign user account all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us. Electronic Record and Signature Disclosure created on: 7/21/2017 3:59:03 PM Parties agreed to: Rich Milliman, Frank Dixon, Rosa Rios 244 How to contact City of Denton: You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows: To contact us by email send messages to: purchasing@cityofdenton.com To advise City of Denton of your new e-mail address To let us know of a change in your e-mail address where we should send notices and disclosures electronically to you, you must send an email message to us at melissa.kraft@cityofdenton.com and in the body of such request you must state: your previous e-mail address, your new e-mail address. We do not require any other information from you to change your email address.. In addition, you must notify DocuSign, Inc to arrange for your new email address to be reflected in your DocuSign account by following the process for changing e-mail in DocuSign. To request paper copies from City of Denton To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, you must send us an e-mail to purchasing@cityofdenton.com and in the body of such request you must state your e-mail address, full name, US Postal address, and telephone number. We will bill you for any fees at that time, if any. To withdraw your consent with City of Denton To inform us that you no longer want to receive future notices and disclosures in electronic format you may: i. decline to sign a document from within your DocuSign account, and on the subsequent page, select the check-box indicating you wish to withdraw your consent, or you may; ii. send us an e-mail to purchasing@cityofdenton.com and in the body of such request you must state your e-mail, full name, IS Postal Address, telephone number, and account number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process.. Required hardware and software Operating Systems: Windows2000? or WindowsXP? Browsers (for SENDERS): Internet Explorer 6.0? or above Browsers (for SIGNERS): Internet Explorer 6.0?, Mozilla FireFox 1.0, NetScape 7.2 (or above) Email: Access to a valid email account Screen Resolution: 800 x 600 minimum Enabled Security Settings: •Allow per session cookies •Users accessing the internet behind a Proxy Server must enable HTTP 1.1 settings via proxy connection ** These minimum requirements are subject to change. If these requirements change, we will provide you with an email message at the email address we have on file for you at that time providing you with the revised hardware and software requirements, at which time you will have the right to withdraw your consent. 245 Acknowledging your access and consent to receive materials electronically To confirm to us that you can access this information electronically, which will be similar to other electronic notices and disclosures that we will provide to you, please verify that you were able to read this electronic disclosure and that you also were able to print on paper or electronically save this page for your future reference and access or that you were able to e-mail this disclosure and consent to an address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving notices and disclosures exclusively in electronic format on the terms and conditions described above, please let us know by clicking the 'I agree' button below. By checking the 'I Agree' box, I confirm that: • I can access and read this Electronic CONSENT TO ELECTRONIC RECEIPT OF ELECTRONIC RECORD AND SIGNATURE DISCLOSURES document; and • I can print on paper the disclosure or save or send the disclosure to a place where I can print it, for future reference and access; and • Until or unless I notify City of Denton as described above, I consent to receive from exclusively through electronic means all notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to me by City of Denton during the course of my relationship with you. 246 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 21-968,Version:1 AGENDA CAPTION Consider adoption of an ordinance of the City of Denton,a Texas home-rule municipal corporation,authorizing the City Manager,or their designee,to execute a contract with Russ Bassett Corporation,through the Houston- Galveston Area Council of Governments (H-GAC)Cooperative Purchasing Program Contract Number EC07- 20 -9-1-1 Equipment &Services,for the purchase and installation of eighteen (18)9-1-1 Public Safety Answering Point (PSAP)Consoles for Public Safety Communications/Technology Services Department; providing for the expenditure of funds therefor;and providing an effective date (File 7685 -awarded to Russ Basset Corporation, in the not-to-exceed amount of $403,022.55). City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™247 City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: May 25, 2021 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or their designee, to execute a contract with Russ Bassett Corporation, through the Houston-Galveston Area Council of Governments (H-GAC) Cooperative Purchasing Program Contract Number EC07-20 – 9-1-1 Equipment & Services, for the purchase and installation of eighteen (18) 9-1-1 Public Safety Answering Point (PSAP) Consoles for the Public Safety Communications/Technology Services Department; providing for the expenditure of funds therefor; and providing an effective date (File 7685 – awarded to Russ Basset Corporation, in the not-to-exceed amount of $403,022.55). INFORMATION/BACKGROUND The City’s current Public Safety project consists of the renovation of the existing headquarters building to bring it up to industry standards and accommodate a more efficient layout, including a new substation to address the identified need in that location, and an indoor firing range to allow the City the proper training of the public safety staff. These projects were part of the recent bond passed November 5, 2019. This contract includes the purchase and installation services of eighteen (18) 9-1-1 emergency Public Safety Answering Point (PSAP) consoles, as part of the renovation of Denton Police Headquarters and Public Safety Dispatch Area. This purchase provides the necessary console furniture for Public Safety Communications (Dispatch) to provide emergency dispatch services for Denton Police, Denton Fire/EMS, Denton Animal Services, Little Elm Police, and Little Elm Fire/EMS. This one-time purchase equips the Center with the consoles necessary for current operations, training of personnel, and allows for future growth through the next 10 years. Pricing obtained through the H-GAC Cooperative Purchasing Network has been competitively bid and meets the statutory requirements of Texas Local Government Code 271.102. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On June 6, 1995, Council approved the interlocal agreement with the H-GAC Cooperative Purchasing Network (Ordinance 1995-107). City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 248 RECOMMENDATION Award a contract with Russ Basset Corporation, for the purchase and installation of eighteen (18) 9-1-1 Public Safety Answering Point (PSAP) Consoles for Public Safety Communications/Technology Services Department, in a not-to-exceed amount of $403,022.55. PRINCIPAL PLACE OF BUSINESS Russ Basset Corporation Whittier, CA ESTIMATED SCHEDULE OF PROJECT This project will be started upon approval with a completion date by December 20, 2021. FISCAL INFORMATION These items/services will be funded from General Obligation Bond Funds. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Suzanne Kaletta, 940-349-7904. Legal point of contact: Marcella Lunn at 940-349-8333. 249 ORDINANCE NO. ___________ AN ORDINANCE OF THE CITY OF DENTON, A TEXAS HOME-RULE MUNICIPAL CORPORATION, AUTHORIZING THE CITY MANAGER, OR THEIR DESIGNEE, TO EXECUTE A CONTRACT WITH RUSS BASSETT CORPORATION, THROUGH THE HOUSTON-GALVESTON AREA COUNCIL OF GOVERNMENTS (H-GAC) COOPERATIVE PURCHASING PROGRAM CONTRACT NUMBER EC07-20 - 9-1-1 EQUIPMENT & SERVICES, FOR THE PURCHASE AND INSTALLATION OF EIGHTEEN (18) 9-1-1 PUBLIC SAFETY ANSWERING POINT (PSAP) CONSOLES FOR THE PUBLIC SAFETY COMMUNICATIONS/TECHNOLOGY SERVICES DEPARTMENT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 7685 – AWARDED TO RUSS BASSET CORPORATION, IN THE NOT-TO- EXCEED AMOUNT OF $403,022.55). WHEREAS, pursuant to Ordinance 1995-107, the Houston-Galveston Area Council of Governments (H-GAC) Cooperative Purchasing Program 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 Governments (H-GAC) Cooperative Purchasing Program 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 7685 Russ Bassett Corporation $403,022.55 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 Houston-Galveston Area Council of Governments (H-GAC) Cooperative Purchasing Program 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 Houston-Galveston Area Council of Governments (H-GAC) Cooperative Purchasing Program, and the purchase orders issued by the City. 250 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 Houston-Galveston Area Council of Governments (H- GAC) Cooperative Purchasing Program, the City 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 Houston-Galveston Area Council of Governments (H- GAC) Cooperative Purchasing Program, 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 this ordinance 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 approved 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. The motion to approve this ordinance was made by __________________________ and seconded by _________________________________. The ordinance was passed and approved by the following vote [___ - ___]: Aye Nay Abstain Absent Mayor Gerard Hudspeth: ______ ______ ______ ______ Vicki Byrd, District 1: ______ ______ ______ ______ Brian Beck, District 2: ______ ______ ______ ______ Jesse Davis, District 3: ______ ______ ______ ______ Alison Maguire, District 4: ______ ______ ______ ______ Deb Armintor, At Large Place 5: ______ ______ ______ ______ Paul Meltzer, At Large Place 6: ______ ______ ______ ______ PASSED AND APPROVED this the _______ day of ___________________________, 2021. __________________________________ GERARD HUDSPETH, MAYOR 251 ATTEST: ROSA RIOS, CITY SECRETARY BY: __________________________________ APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY BY: _________________________________ 252 Docusign City Council Transmittal Coversheet File Name Purchasing Contact City Council Target Date Piggy Back Option Contract Expiration Ordinance DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 Not Applicable COOP Cori Power 7685 Public Safety Answering Point (PSAP) Consoles 253 File #7685 CONTRACT BY AND BETWEEN CITY OF DENTON, TEXAS AND RUSS BASSETT CORPORATION (File # 7685) THIS CONTRACT is made and entered into this date _______________________, by and between Russ Bassett Corporation, a California Corporation, whose address is 8189 Byron Road, Whittier, CA 90606, hereinafter referred to as "Supplier," and the CITY OF DENTON, TEXAS, a home rule municipal corporation, hereinafter referred to as "City," to be effective upon approval of the Denton City Council and subsequent execution of this Contract by the Denton City Manager or his duly authorized designee. For and in consideration of the covenants and agreements contained herein, and for the mutual benefits to be obtained hereby, the parties agree as follows: SCOPE OF SERVICES Supplier shall provide products in accordance with the Supplier’s quote, a copy of which is attached hereto and incorporated herein for all purposes as Exhibit “C”. The Contract consists of this written agreement and the following items which are attached hereto, or on file, and incorporated herein by reference: (a) Special Terms and Conditions (Exhibit “A”); (b) Houston-Galveston Area Council (H-GAC) Cooperative Purchasing Contract #EC07-20 with Russ Bassett Corporation, (Exhibit “B” on file at the office of the Purchasing Agent); (c) Russ Bassett Corporation quote (Exhibit “C”); (d) City of Denton Standard Terms and Conditions (Exhibit “D”); (e) Certificate of Interested Parties Electronic Filing (Exhibit “E”); (f) Insurance Requirements (Exhibit “F”); (g) Form CIQ – Conflict of Interest Questionnaire (Exhibit "G") These documents make up the Contract documents and what is called for by one shall be as binding as if called for by all. In the event of an inconsistency or conflict in any of the provisions of the Contract documents, the inconsistency or conflict shall be resolved by giving precedence first to the written agreement then to the contract documents in the order in which they are listed above. These documents shall be referred to collectively as “Contract Documents.” Prohibition on Contracts with Companies Boycotting Israel Supplier acknowledges that in accordance with Chapter 2270 of the Texas Government Code, City is prohibited from entering into a contract with a company for goods or services unless the contract contains a written verification from the company that it: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the contract. The terms “boycott Israel” and “company” shall have the meanings ascribed to those terms in Section 808.001 of the Texas Government Code. By signing this agreement, Supplier certifies that Supplier’s signature provides written verification to the City that Supplier: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the agreement. Failure to meet or maintain the requirements under this provision will be considered a material breach. Prohibition On Contracts With Companies Doing Business with Iran, Sudan, or a Foreign Terrorist Organization Section 2252 of the Texas Government Code restricts CITY from contracting with companies that do business with Iran, Sudan, or a foreign terrorist organization. By signing this agreement, Supplier certifies that Supplier’s signature provides written verification to the City that Supplier, pursuant to Chapter DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 254 File #7685 2252, is not ineligible to enter into this agreement and will not become ineligible to receive payments under this agreement by doing business with Iran, Sudan, or a foreign terrorist organization. Failure to meet or maintain the requirements under this provision will be considered a material breach. The parties agree to transact business electronically. Any statutory requirements that certain terms be in writing will be satisfied using electronic documents and signing. Electronic signing of this document will be deemed an original for all legal purposes. IN WITNESS WHEREOF, the parties of these presents have executed this agreement in the year and day first above written. SUPPLIER BY: ______________________________ AUTHORIZED SIGNATURE Printed Name:_____________________ Title:____________________________ __________________________________ PHONE NUMBER _________________________________ EMAIL ADDRESS ___________________________________ TEXAS ETHICS COMMISSION 1295 CERTIFICATE NUMBER CITY OF DENTON, TEXAS BY: ________________________________ ATTEST: ROSA RIOS, CITY SECRETARY BY: _______________________________ APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY BY: _______________________________ THIS AGREEMENT HAS BEEN BOTH REVIEWED AND APPROVED as to financial and operational obligations and business terms. _______________ ________________ SIGNATURE PRINTED NAME __________________________________ TITLE __________________________________ DEPARTMENT DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 2021-748091 Executive Vice President 5624472224 Peter Fink pfink@russbassett.com Technology Services Chief Technology Officer Leisha Meine 255 File #7685 Exhibit A Special Terms and Conditions 1. Contract Term The contract will be effective from date of award or notice to proceed with a purchase order as determined by the City of Denton Purchasing Department. 2. Total Contract Amount The contract total shall not exceed $403,022.55. Pricing shall be per Exhibit C attached. DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 256 Quotation PROJECT #:DC-28032-01 Option:1 REVISION:C PROJECT NAME:Denton Public Safety Building QUOTE DATE:3/1/2021 SALES EXECUTIVE:Donna Pair EXPIRATION DATE:5/30/2021 ADDRESS:8189 Byron Rd Whittier, CA 90606 CUSTOMER:City of Denton PHONE:(252) 314-1492 CONTACT:Suzanne Kaletta EMAIL:dpair@russbassett.com ADDRESS:610 East Suite E Hickory Street Denton, TX 76205 PHONE:(940) 349-7200 FAX: 10450 EMAIL:suzanne.kaletta@cityofdenton.com QTY PART NUMBER DESCRIPTION PRICE EXTENDED AREA:1 16 Consoles AREA 1 TOTAL:293,041.10$ 16 1 FSA-CT-84 Flex Sit-Stand, 90º Corner, 84W, Single Lift, Adj. Array, Tech Storage 8,267.00$ 4,546.85$ 72,749.60$ 10 1 FCF-42-T-SSF Flex Sit-Stand Corner Filler, 42H, Tech Storage, Fabric 1,000.00$ 550.00$ 5,500.00$ 10 1 FSW-07-1842-EMT-SWN Flex Wall, 07D, 18L x 42H, Empty Side A, Slatwall Side B 615.00$ 338.25$ 3,382.50$ 1 1 FSW-07-1842-SWN-SWN Flex Wall, 07D, 18L x 42H, Slatwall Side A, Slatwall Side B 865.00$ 475.75$ 475.75$ 2 1 FSW-07-2442-EMT-SWN Flex Wall, 07D, 24L x 42H, Empty Side A, Slatwall Side B 635.00$ 349.25$ 698.50$ 18 1 FSW-07-3042-EMT-EMT Flex Wall, 07D, 30L x 42H, Empty Side A, Empty Side B 405.00$ 222.75$ 4,009.50$ 2 1 FSW-07-3042-EMT-SWN Flex Wall, 07D, 30L x 42H, Empty Side A, Slatwall Side B 655.00$ 360.25$ 720.50$ 8 1 FSW-07-3642-EMT-SWN Flex Wall, 07D, 36L x 42H, Empty Side A, Slatwall Side B 675.00$ 371.25$ 2,970.00$ 4 1 FSW-07-4242-EMT-SWN Flex Wall, 07D, 42L x 42H, Empty Side A, Slatwall Side B 695.00$ 382.25$ 1,529.00$ 28 1 FSW-07-5442-EMT-SSF Flex Wall, 07D, 54L x 42H, Empty Side A, Sit-Stand Fabric Side B 765.00$ 420.75$ 11,781.00$ 2 1 FSW-07-5442-SSF-SSF Flex Wall, 07D, 54L x 42H, Sit-Stand Fabric Side A, Sit-Stand Fabric Side B 1,045.00$ 574.75$ 1,149.50$ 6 1 FSW-07-CC42-EMT-SSF Flex Wall, 07D, 42.3L x 42H, Empty Side A, Sit-Stand Fabric Side B 725.00$ 398.75$ 2,392.50$ 1 1 FTC-0718-GL-BL-S Flex Top Cap, 7D x 18W, Blue Lit Glass W/ Logo, Square 1,690.00$ 929.50$ 929.50$ 10 1 FTC-0718-V-S Flex Top Cap, 7D x 18W, Vented, Square 190.00$ 104.50$ 1,045.00$ 4 1 FTC-0736-V-S Flex Top Cap, 7D x 36W, Vented, Square 220.00$ 121.00$ 484.00$ 2 1 FTC-0742-V-S Flex Top Cap, 7D x 42W, Vented, Square 230.00$ 126.50$ 253.00$ 1 1 FTC-0754-GL-BL-S Flex Top Cap, 7D x 54W, Blue Lit Glass W/ Logo, Square 1,810.00$ 995.50$ 995.50$ 11 1 FTC-0754-V-S Flex Top Cap, 7D x 54W, Vented, Square 250.00$ 137.50$ 1,512.50$ 1 1 FTC-0760-V-S Flex Top Cap, 7D x 60W, Vented, Square 260.00$ 143.00$ 143.00$ 2 1 FTC-0766-V-S Flex Top Cap, 7D x 66W, Vented, Square 270.00$ 148.50$ 297.00$ 2 1 FTC-0772-V-S Flex Top Cap, 7D x 72W, Vented, Square 280.00$ 154.00$ 308.00$ 18 1 FTC-0784-V-S Flex Top Cap, 7D x 84W, Vented, Square 300.00$ 165.00$ 2,970.00$ 5 1 FTC-07CC-V-S Flex Top Cap, 7D x 42.3W, Vented, Square 230.00$ 126.50$ 632.50$ 1 1 FTC-07CC-GL-BL-S Flex Top Cap, 7D x 42.3W, Blue Lit Glass W/ Logo, Square 1,770.00$ 973.50$ 973.50$ 8 1 FBP-1842-VPS Flex Back Panel, 18W x 42H, Vented, Powder, Square 365.00$ 200.75$ 1,606.00$ 2 1 FBP-2442-VPS Flex Back Panel, 24W x 42H, Vented, Powder, Square 375.00$ 206.25$ 412.50$ 16 1 FBP-3042-VPS Flex Back Panel, 30W x 42H, Vented, Powder, Square 385.00$ 211.75$ 3,388.00$ 8 1 FBP-3642-VPS Flex Back Panel, 36W x 42H, Vented, Powder, Square 395.00$ 217.25$ 1,738.00$ 4 1 FBP-4242-VPS Flex Back Panel, 42W x 42H, Vented, Powder, Square 405.00$ 222.75$ 891.00$ 26 1 FBP-5442-VPS Flex Back Panel, 54W x 42H, Vented, Powder, Square 425.00$ 233.75$ 6,077.50$ 6 1 FBP-CC42-VPS Flex Back Panel, 42.3W x 42H, Vented, Powder, Square 405.00$ 222.75$ 1,336.50$ 12 1 FCC-07L-4542-EPS Flex Corner Connector, 7D, 45º L-Type, 42H, Exterior, Powder, Square 410.00$ 225.50$ 2,706.00$ 6 1 FCC-07L-9042-EPS Flex Corner Connector, 7D, 90º L-Type, 42H, Exterior, Powder, Square 460.00$ 253.00$ 1,518.00$ Russ Bassett Corporation 8189 Byron Road Whittier, CA 90606 Tel: 800.350.2445 Fax: 562.698.8972 www.russbassett.com EXHIBIT C DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 257 Quotation PROJECT #:DC-28032-01 Option:1 REVISION:C PROJECT NAME:Denton Public Safety Building Russ Bassett Corporation 8189 Byron Road Whittier, CA 90606 Tel: 800.350.2445 Fax: 562.698.8972 www.russbassett.com QTY 1 PART NUMBER DESCRIPTION PRICE EXTENDED 2 1 FCC-07T-9042-EPS Flex Corner Connector, 7D, 90º T-Type, 42H, Exterior, Powder, Square 460.00$ 253.00$ 506.00$ 12 1 FWS-FRE-3618-E Work Surface, Rectangle, 36D x 18L, Endure 685.00$ 376.75$ 4,521.00$ 4 1 FWS-FRE-3636-E Work Surface, Rectangle, 36D x 36L, Endure 910.00$ 500.50$ 2,002.00$ 2 1 FWS-FRE-3642-E Work Surface, Rectangle, 36D x 42L, Endure 985.00$ 541.75$ 1,083.50$ 1 1 FWS-FRE-3660-E Work Surface, Rectangle, 36D x 60L, Endure 1,210.00$ 665.50$ 665.50$ 2 1 FWS-FRE-3666-E Work Surface, Rectangle, 36D x 66L, Endure 1,285.00$ 706.75$ 1,413.50$ 2 1 FWS-FRE-3672-E Work Surface, Rectangle, 36D x 72L, Endure 1,360.00$ 748.00$ 1,496.00$ 16 1 FWS-SCA-3684-N-E Work Surface, 90º Corner Sit-Stand, Single Lift Array, 36D x 84L, Endure 1,710.00$ 940.50$ 15,048.00$ 2 1 FEC-AAC-0742-L-S Flex Left End Cap, Corner, Array Sit-Stand, 7" Wall, 42"H, Square 625.00$ 343.75$ 687.50$ 2 1 FEC-AAC-0742-R-S Flex Right End Cap, Corner, Array Sit-Stand, 7" Wall, 42"H, Square 625.00$ 343.75$ 687.50$ 14 1 FEC-FH-0742-S Flex End Cap, Fixed Height, 7" Wall, 42"H, Square 400.00$ 220.00$ 3,080.00$ 2 1 FPC-3624-LD-S-N Flex Closed Storage Pedestal, 36D x 24W, Left Swing, Square, No Lock 545.00$ 299.75$ 599.50$ 3 1 FPC-3624-RD-S-N Flex Closed Storage Pedestal, 36D x 24W, Right Swing, Square, No Lock 545.00$ 299.75$ 899.25$ 2 1 FPC-3636-PD-S-N Flex Closed Storage Pedestal, 36D x 36W, Pair of Doors, Square, No Lock 680.00$ 374.00$ 748.00$ 6 1 FPP-3618-BCL-S-N Flex Drawer Pedestal, 36D x 18W, Box/Closed, Left Swing, Square, No Lock 605.00$ 332.75$ 1,996.50$ 8 1 FPP-3618-BCR-S-N Flex Drawer Pedestal, 36D x 18W, Box/Closed, Right Swing, Square, No Lock 605.00$ 332.75$ 2,662.00$ 1 1 FPP-3624-BCL-S-N Flex Drawer Pedestal, 36D x 24W, Box/Closed, Left Swing, Square, No Lock 635.00$ 349.25$ 349.25$ 1 1 FPP-3624-BCR-S-N Flex Drawer Pedestal, 36D x 24W, Box/Closed, Right Swing, Square, No Lock 635.00$ 349.25$ 349.25$ 9 1 FPT-361828-LD-S-N-S Flex Technology Pedestal, 36D x 18W x 28H, Left Swing, Square, No Lock, Slide-Out 930.00$ 511.50$ 4,603.50$ 7 1 FPT-361828-RD-S-N-S Flex Technology Pedestal, 36D x 18W x 28H, Right Swing, Square, No Lock, Slide-Out 930.00$ 511.50$ 3,580.50$ 16 1 DAC-PCS-FLX-A Flex Personal Comfort System, Heat & Air, Array Console 2,175.00$ 1,196.25$ 19,140.00$ 16 1 DAC-SW-SANSTN Slatwall Sanitation Station 290.00$ 159.50$ 2,552.00$ 16 1 DAC-SW-WIPES-425 Slatwall Disinfecting Wipes Holder, 4.25" Diameter 195.00$ 107.25$ 1,716.00$ 16 1 DAC-AMB-PWR Ambient Light Power Supply W/ Splitter 50.00$ 27.50$ 440.00$ 67 1 DAC-BOND-JMPR-10AWG-14Bonding Jumper Cable, 10 AWG, 14"30.00$ 16.50$ 1,105.50$ 160 1 DAC-CO-USB USB-A 3.0 Keystone - Coupler (Includes 15' Extension)60.00$ 33.00$ 5,280.00$ 16 1 DAC-DTC-ADA Desktop Contoller, ADA 90.00$ 49.50$ 792.00$ 64 1 DAC-MM-11-SW-PM Monitor Mount, 1-Over-1, Slatwall, Pole Mount 850.00$ 467.50$ 29,920.00$ 16 1 DAC-MM-11-SW-PM-EX Monitor Mount, 1-Over-1, Slatwall, Pole Mount, Ext 950.00$ 522.50$ 8,360.00$ 16 1 WAC-AMB-AR-C-78-B Ambient Light, Array, 90-Crnr, 78”, Blue 400.00$ 220.00$ 3,520.00$ 16 1 WAC-DASH-1P2U Dash Cartridge, 1 Power / 2 Power-only USB 325.00$ 178.75$ 2,860.00$ 16 1 WAC-DASH-AMB-DIMMERDash Cartridge, Ambient Dimmer 300.00$ 165.00$ 2,640.00$ 16 1 WAC-DASH-TL-GSNK Dash Cartridge, Gooseneck Light 460.00$ 253.00$ 4,048.00$ 16 1 WAC-DTB-14 14 Port Data Termination Bracket, Universal 120.00$ 66.00$ 1,056.00$ 16 1 WAC-FWL-AR-B Footwell Light, Array Console, Blue 150.00$ 82.50$ 1,320.00$ 16 1 WAC-GRND-BUS-4x12 Isolated Copper Ground Bus Bar, 4x12 600.00$ 330.00$ 5,280.00$ 32 1 WAC-IV-RMK-1 1U Internal Vertical Rack Kit 140.00$ 77.00$ 2,464.00$ 16 1 NSP-R56CONSOLE-CMPR56 CONSOLE COMPLIANCE KIT 1,330.00$ 731.50$ 11,704.00$ 10 1 NSP-R56CORNR-FLLR-CMPR56 CORNER FILLER KIT 300.00$ 165.00$ 1,650.00$ 16 1 DAC-PSTRIP-06-15A-R56 SPD, Power Strip, Surface Mount, 6 Outlet, 15A, R56 300.00$ 165.00$ 2,640.00$ DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 258 Quotation PROJECT #:DC-28032-01 Option:1 REVISION:C PROJECT NAME:Denton Public Safety Building Russ Bassett Corporation 8189 Byron Road Whittier, CA 90606 Tel: 800.350.2445 Fax: 562.698.8972 www.russbassett.com QTY 1 PART NUMBER DESCRIPTION PRICE EXTENDED AREA:2 STORAGE AREA 2 TOTAL:3,113.00$ 4 2 DEF-BFT-2430-SD Buffet Storage Cabinet, 24"D x 30"W x 36"H, 2 Drawer, 2 Door 950.00$ 522.50$ 2,090.00$ 2 2 DEF-STG-TOP-2460-G-S Storage Top, 24"D x 60"W, Grommet, Strata Edge 930.00$ 511.50$ 1,023.00$ -$ -$ Product Total:296,154.10$ Price does not include applicable sales tax Freight Services:18,750.00$ Russ Bassett Installation Services:44,000.00$ Total Due 358,904.10$ Cooperative Purchasing Vehicle: HGACBuy Contract EC07-20 (9-1-1 Equipment & Services) DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 259 Quotation PROJECT #:DC-28032-01 Option:1 REVISION:C PROJECT NAME:Denton Public Safety Building Russ Bassett Corporation 8189 Byron Road Whittier, CA 90606 Tel: 800.350.2445 Fax: 562.698.8972 www.russbassett.com Drawings Any drawing submitted to the Client under this Quotation must be signed-off as "approved for manufacture" and returned with applicable purchase order. Drawing REVISION level must match Quote REVISION level. Delivery & Installation A signed, completed delivery and installation checklist and purchase order is required to prevent any issues at time of delivery and installation. Any unique requirements encountered at time of delivery and installation not covered on the installation checklist will be invoiced at cost in addition to the charges quoted herein. Russ Bassett ships your products using our "Safe Ship" program. The program simply states that we guarantee your products will arrive damage free anywhere in the 48 contiguous United States. If damage should occur, notify customer service and Russ Bassett will rush a replacement part or unit and pick up the damaged product. Due to the custom nature of our products, Russ Bassett recommends using only Certified Russ Bassett Installers. Purchase Order Send to:Russ Bassett Corporation Fax to:(562) 698-8972 Attn: Customer Service 8189 Byron Road Whittier, CA 90606 Purchase orders must include the following information to process with Russ Bassett: Sold to, Ship to, Order Date, Requested Delivery/Install Date, PO Number, Quantity, Full Model Numbers & Total. All purchase orders must also accompany the following documents to be considered a complete order: Signed drawing noting console and work surface colors and/or cabinet color, signed quotation, & installation checklist. Quote is Valid for 90 days from date of issue; and, may only be extended in writing by Russ Bassett. Payment Terms Standard payment terms subject to approved credit. 20% due 30 days after receipt of order 30% due 30 days after product delivery to site 40% due after substantial installation completion 10% due 30 days after final sign-off Lead-time For the products covered under this proposal is ten (10) to twelve (12) weeks AAO (After Acceptance of Order). Incomplete Purchase Orders may delay the ship date; actual date will be confirmed on written Order Acknowledgement. DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 260 Quotation PROJECT #:DC-28032-01 Option:1 REVISION:C PROJECT NAME:Denton Public Safety Building Russ Bassett Corporation 8189 Byron Road Whittier, CA 90606 Tel: 800.350.2445 Fax: 562.698.8972 www.russbassett.com Warranty Change Order & Cancellation Policy Buyer's Delay Acceptance Signature Authorized Signature Print Name of Authorized Signature Print Title Print Company Name P.O. Number Date of Authorization Russ Bassett only builds products to order, based on bonified purchase orders and deploys manufacturing resources necessary to meet scheduled delivery requirements outlined in the order. The company realizes projects get delayed. Upon request, Russ Bassett may provide storage for the first 30 days from the original ship date at no cost. In extreme cases, the Russ Bassett Sales Executive may request the President to approve extending the grace period for an additional 30 days. In all cases, unless approved by the President, the customer is to be invoiced for the full product total on the original ship date. Storage fees are outlined below: Storage after 30 days will only be approved, provided 90% of the initial invoice has been paid, allowing 10% hold-back till final project acceptance. Storage fees will be invoiced monthly and must be paid promptly to keep benefits intact. Storage period Fees Up to 30 day delay No cost as a courtesy 31 to 90-day delay 1% of product total per month 91 to 150-day delay 2% of product total per month 151 to 180-day delay 4% of product total per month Storage is not offered after 180 days. Storage arrangements may be canceled at any time for non-payment. The customer may choose to arrange their own storage. In that case, claims for product damage will become the responsibility of the customer and their storage agent. Any cancellation requests must be submitted in writing and approved by an officer of Russ Bassett. Upon acceptance of canceled order, a cancellation charge of 25% of the contract amount will be incurred over and above the cost of materials produced or in production, labor or other services performed, freight, taxes and any other out of pocket expenses also incurred by Russ Bassett. Changes to an order, once it has been processed, can be very disruptive and costly. Once an order has been started in manufacturing, usually within 4 weeks of the scheduled ship date, it is not possible to make changes. Any requests for changes to the design or scope of work shall be made in writing. RBC will notify Buyer if it is possible to accommodate the change requests. If there is still time to accommodate the change requests, RBC will provide a quotation covering the cost and lead-time impact of the change. If these impacts are acceptable to Buyer, RBC will produce changed drawings for review and approval. No change will be made without sign-off of the updated quote and drawing by Buyer. Russ Bassett warrants, to the original Buyer, that all products will be free from defects in material and workmanship for 10 full years. In mission critical, 24/7/365 environments, quickly resolving a product issue is of top priority for both the Buyer and Russ Bassett. Prompt execution of this warranty requires cooperation. With guidance from Russ Bassett, Buyer agrees to perform basic troubleshooting tasks to determine the nature of the defect and to self-correct before on-site assistance can be provided. For simple replacements, the part will be quickly shipped directly to Buyer. If the problem requires on-site assistance, Russ Bassett will come out during normal work hours to resolve the issue. If the defect is found to have resulted from circumstances outside of the warranty coverage, and/or Buyer imposes conditions or restrictions that increases the service cost, Buyer agrees to reimburse Russ Bassett for any resulting additional expense. Buyer also agrees to properly dispose of the old parts and packing material. The few circumstances where this warranty against defects would not apply include normal wear and tear, damage, misuse, modifications, consumable items or product shipped outside the U.S. Repairs, substitute products or replacements, of equal or higher value, used to resolve a warranty claim will in no way extend the applicable warranty period applied to the original product. Product repair or replacement is Buyer’s exclusive remedy for all product defects covered under this non-transferable warranty. Russ Bassett makes no other express or implied warranties to any product except as stated above and makes no warranty of Russ Bassett product fitness except for use as standard console furniture. DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 261 Quotation PROJECT #:DC-28032-01 Option:1 REVISION:C_2 PROJECT NAME:Denton Public Safety Building QUOTE DATE:3/1/2021 SALES EXECUTIVE:Donna Pair EXPIRATION DATE:5/30/2021 ADDRESS:8189 Byron Rd Whittier, CA 90606 CUSTOMER:City of Denton PHONE:(252) 314-1492 CONTACT:Suzanne Kaletta EMAIL:dpair@russbassett.com ADDRESS:610 East Suite E Hickory Street Denton, TX 76205 PHONE:(940) 349-7200 FAX: 10450 EMAIL:suzanne.kaletta@cityofdenton.com QTY PART NUMBER DESCRIPTION PRICE EXTENDED AREA:1 Consoles 9 & 10 AREA 1 TOTAL:34,418.45$ 2 1 FSA-CT-84 Flex Sit-Stand, 90º Corner, 84W, Single Lift, Adj. Array, Tech Storage 8,267.00$ 4,546.85$ 9,093.70$ 2 1 FCF-42-T-SSF Flex Sit-Stand Corner Filler, 42H, Tech Storage, Fabric 1,000.00$ 550.00$ 1,100.00$ 3 1 FSW-07-1842-SWN-SWN Flex Wall, 07D, 18L x 42H, Slatwall Side A, Slatwall Side B 865.00$ 475.75$ 1,427.25$ 3 1 FSW-07-3042-EMT-EMT Flex Wall, 07D, 30L x 42H, Empty Side A, Empty Side B 405.00$ 222.75$ 668.25$ 3 1 FSW-07-5442-SSF-SSF Flex Wall, 07D, 54L x 42H, Sit-Stand Fabric Side A, Sit-Stand Fabric Side B 1,045.00$ 574.75$ 1,724.25$ 3 1 FTC-0718-V-S Flex Top Cap, 7D x 18W, Vented, Square 190.00$ 104.50$ 313.50$ 3 1 FTC-0784-V-S Flex Top Cap, 7D x 84W, Vented, Square 300.00$ 165.00$ 495.00$ 4 1 FWS-FRE-3618-E Work Surface, Rectangle, 36D x 18L, Endure 685.00$ 376.75$ 1,507.00$ 2 1 FWS-SCA-3684-N-E Work Surface, 90º Corner Sit-Stand, Single Lift Array, 36D x 84L, Endure 1,710.00$ 940.50$ 1,881.00$ 1 1 FCC-07X-9042-MTS Flex Corner Connector, 7D, 90º X-Type, 42H, Empty, Square 300.00$ 165.00$ 165.00$ 3 1 FEC-FH-0742-S Flex End Cap, Fixed Height, 7" Wall, 42"H, Square 400.00$ 220.00$ 660.00$ 1 1 FPP-3618-BCL-S-N Flex Drawer Pedestal, 36D x 18W, Box/Closed, Left Swing, Square, No Lock 605.00$ 332.75$ 332.75$ 1 1 FPP-3618-BCR-S-N Flex Drawer Pedestal, 36D x 18W, Box/Closed, Right Swing, Square, No Lock 605.00$ 332.75$ 332.75$ 1 1 FPT-361828-LD-S-N-S Flex Technology Pedestal, 36D x 18W x 28H, Left Swing, Square, No Lock, Slide-Out 930.00$ 511.50$ 511.50$ 1 1 FPT-361828-RD-S-N-S Flex Technology Pedestal, 36D x 18W x 28H, Right Swing, Square, No Lock, Slide-Out 930.00$ 511.50$ 511.50$ 2 1 DAC-PCS-FLX-A Flex Personal Comfort System, Heat & Air, Array Console 2,175.00$ 1,196.25$ 2,392.50$ 2 1 DAC-SW-SANSTN Slatwall Sanitation Station 290.00$ 159.50$ 319.00$ 2 1 DAC-SW-WIPES-425 Slatwall Disinfecting Wipes Holder, 4.25" Diameter 195.00$ 107.25$ 214.50$ 2 1 DAC-AMB-PWR Ambient Light Power Supply W/ Splitter 80.00$ 44.00$ 88.00$ 7 1 DAC-BOND-JMPR-10AWG-14Bonding Jumper Cable, 10 AWG, 14"30.00$ 16.50$ 115.50$ 20 1 DAC-CO-USB USB-A 3.0 Keystone - Coupler (Includes 15' Extension)60.00$ 33.00$ 660.00$ 2 1 DAC-DTC-ADA Desktop Contoller, ADA 90.00$ 49.50$ 99.00$ 8 1 DAC-MM-11-SW-PM Monitor Mount, 1-Over-1, Slatwall, Pole Mount 850.00$ 467.50$ 3,740.00$ 2 1 DAC-MM-11-SW-PM-EX Monitor Mount, 1-Over-1, Slatwall, Pole Mount, Ext 950.00$ 522.50$ 1,045.00$ 2 1 WAC-AMB-AR-C-78-B Ambient Light, Array, 90-Crnr, 78”, Blue 400.00$ 220.00$ 440.00$ 2 1 WAC-DASH-1P2U Dash Cartridge, 1 Power / 2 Power-only USB 325.00$ 178.75$ 357.50$ 2 1 WAC-DASH-AMB-DIMMERDash Cartridge, Ambient Dimmer 300.00$ 165.00$ 330.00$ 2 1 WAC-DASH-TL-GSNK Dash Cartridge, Gooseneck Light 460.00$ 253.00$ 506.00$ 2 1 WAC-DTB-14 14 Port Data Termination Bracket, Universal 120.00$ 66.00$ 132.00$ 2 1 WAC-FWL-AR-B Footwell Light, Array Console, Blue 150.00$ 82.50$ 165.00$ 2 1 WAC-GRND-BUS-4x12 Isolated Copper Ground Bus Bar, 4x12 600.00$ 330.00$ 660.00$ 4 1 WAC-IV-RMK-1 1U Internal Vertical Rack Kit 140.00$ 77.00$ 308.00$ 2 1 DAC-PSTRIP-06-15A-R56 SPD, Power Strip, Surface Mount, 6 Outlet, 15A, R56 300.00$ 165.00$ 330.00$ Russ Bassett Corporation 8189 Byron Road Whittier, CA 90606 Tel: 800.350.2445 Fax: 562.698.8972 www.russbassett.com DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 262 Quotation PROJECT #:DC-28032-01 Option:1 REVISION:C_2 PROJECT NAME:Denton Public Safety Building Russ Bassett Corporation 8189 Byron Road Whittier, CA 90606 Tel: 800.350.2445 Fax: 562.698.8972 www.russbassett.com QTY 1 PART NUMBER DESCRIPTION PRICE EXTENDED 2 1 NSP-R56-CMP R56 COMP. CONSOLE KIT 1,630.00$ 896.50$ 1,793.00$ -$ -$ Product Total:34,418.45$ Price does not include applicable sales tax Freight Services:4,500.00$ Russ Bassett Installation Services:5,200.00$ Total Due 44,118.45$ Cooperative Purchasing Vehicle: HGACBuy Contract EC07-20 (9-1-1 Equipment & Services) DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 263 Quotation PROJECT #:DC-28032-01 Option:1 REVISION:C_2 PROJECT NAME:Denton Public Safety Building Russ Bassett Corporation 8189 Byron Road Whittier, CA 90606 Tel: 800.350.2445 Fax: 562.698.8972 www.russbassett.com Drawings Any drawing submitted to the Client under this Quotation must be signed-off as "approved for manufacture" and returned with applicable purchase order. Drawing REVISION level must match Quote REVISION level. Delivery & Installation A signed, completed delivery and installation checklist and purchase order is required to prevent any issues at time of delivery and installation. Any unique requirements encountered at time of delivery and installation not covered on the installation checklist will be invoiced at cost in addition to the charges quoted herein. Russ Bassett ships your products using our "Safe Ship" program. The program simply states that we guarantee your products will arrive damage free anywhere in the 48 contiguous United States. If damage should occur, notify customer service and Russ Bassett will rush a replacement part or unit and pick up the damaged product. Due to the custom nature of our products, Russ Bassett recommends using only Certified Russ Bassett Installers. Purchase Order Send to:Russ Bassett Corporation Fax to:(562) 698-8972 Attn: Customer Service 8189 Byron Road Whittier, CA 90606 Purchase orders must include the following information to process with Russ Bassett: Sold to, Ship to, Order Date, Requested Delivery/Install Date, PO Number, Quantity, Full Model Numbers & Total. All purchase orders must also accompany the following documents to be considered a complete order: Signed drawing noting console and work surface colors and/or cabinet color, signed quotation, & installation checklist. Quote is Valid for 90 days from date of issue; and, may only be extended in writing by Russ Bassett. Payment Terms Standard payment terms subject to approved credit. 90% due 30 days after product shipment 10% due 30 days after final sign-off Lead-time For the products covered under this proposal is ten (10) to twelve (12) weeks AAO (After Acceptance of Order). Incomplete Purchase Orders may delay the ship date; actual date will be confirmed on written Order Acknowledgement. DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 264 Quotation PROJECT #:DC-28032-01 Option:1 REVISION:C_2 PROJECT NAME:Denton Public Safety Building Russ Bassett Corporation 8189 Byron Road Whittier, CA 90606 Tel: 800.350.2445 Fax: 562.698.8972 www.russbassett.com Warranty Change Order & Cancellation Policy Buyer's Delay Acceptance Signature Authorized Signature Print Name of Authorized Signature Print Title Print Company Name P.O. Number Date of Authorization Russ Bassett only builds products to order, based on bonified purchase orders and deploys manufacturing resources necessary to meet scheduled delivery requirements outlined in the order. The company realizes projects get delayed. Upon request, Russ Bassett may provide storage for the first 30 days from the original ship date at no cost. In extreme cases, the Russ Bassett Sales Executive may request the President to approve extending the grace period for an additional 30 days. In all cases, unless approved by the President, the customer is to be invoiced for the full product total on the original ship date. Storage fees are outlined below: Storage after 30 days will only be approved, provided 90% of the initial invoice has been paid, allowing 10% hold-back till final project acceptance. Storage fees will be invoiced monthly and must be paid promptly to keep benefits intact. Storage period Fees Up to 30 day delay No cost as a courtesy 31 to 90-day delay 1% of product total per month 91 to 150-day delay 2% of product total per month 151 to 180-day delay 4% of product total per month Storage is not offered after 180 days. Storage arrangements may be canceled at any time for non-payment. The customer may choose to arrange their own storage. In that case, claims for product damage will become the responsibility of the customer and their storage agent. Any cancellation requests must be submitted in writing and approved by an officer of Russ Bassett. Upon acceptance of canceled order, a cancellation charge of 25% of the contract amount will be incurred over and above the cost of materials produced or in production, labor or other services performed, freight, taxes and any other out of pocket expenses also incurred by Russ Bassett. Changes to an order, once it has been processed, can be very disruptive and costly. Once an order has been started in manufacturing, usually within 4 weeks of the scheduled ship date, it is not possible to make changes. Any requests for changes to the design or scope of work shall be made in writing. RBC will notify Buyer if it is possible to accommodate the change requests. If there is still time to accommodate the change requests, RBC will provide a quotation covering the cost and lead-time impact of the change. If these impacts are acceptable to Buyer, RBC will produce changed drawings for review and approval. No change will be made without sign-off of the updated quote and drawing by Buyer. Russ Bassett warrants, to the original Buyer, that all products will be free from defects in material and workmanship for 10 full years. In mission critical, 24/7/365 environments, quickly resolving a product issue is of top priority for both the Buyer and Russ Bassett. Prompt execution of this warranty requires cooperation. With guidance from Russ Bassett, Buyer agrees to perform basic troubleshooting tasks to determine the nature of the defect and to self-correct before on-site assistance can be provided. For simple replacements, the part will be quickly shipped directly to Buyer. If the problem requires on-site assistance, Russ Bassett will come out during normal work hours to resolve the issue. If the defect is found to have resulted from circumstances outside of the warranty coverage, and/or Buyer imposes conditions or restrictions that increases the service cost, Buyer agrees to reimburse Russ Bassett for any resulting additional expense. Buyer also agrees to properly dispose of the old parts and packing material. The few circumstances where this warranty against defects would not apply include normal wear and tear, damage, misuse, modifications, consumable items or product shipped outside the U.S. Repairs, substitute products or replacements, of equal or higher value, used to resolve a warranty claim will in no way extend the applicable warranty period applied to the original product. Product repair or replacement is Buyer’s exclusive remedy for all product defects covered under this non-transferable warranty. Russ Bassett makes no other express or implied warranties to any product except as stated above and makes no warranty of Russ Bassett product fitness except for use as standard console furniture. DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 265 File #7685 Exhibit D City of Denton Standard Purchase Terms and Conditions These standard Terms and Conditions and the Terms and Conditions, Specifications, Drawings and other requirements included in the City of Denton’s contract are applicable to contracts/purchase orders issued by the City of Denton hereinafter referred to as the City or Buyer and the Seller or respondent herein after referred to as Contractor or Supplier. Any deviations must be in writing and signed by a representative of the City’s Procurement Department and the Supplier. No Terms and Conditions contained in the seller’s proposal response, invoice or statement shall serve to modify the terms set forth herein. If there is a conflict between the provisions on the face of the contract/purchase order these written provisions will take precedence. The Contractor agrees that the contract shall be governed by the following terms and conditions, unless exceptions are duly noted and fully negotiated. Unless otherwise specified in the contract, Sections 3, 4, 5, 6, 7, 8, 20, 21, and 36 shall apply only to a solicitation to purchase goods, and sections 9, 10, 11, 22 and 32 shall apply only to a solicitation to purchase services to be performed principally at the City’s premises or on public rights-of-way. 1. CONTRACTOR’S OBLIGATIONS. The Contractor shall fully and timely provide all deliverables described in the Solicitation and in the Contractor’s Offer in strict accordance with the terms, covenants, and conditions of the Contract and all applicable Federal, State, and local laws, rules, and regulations. 2. EFFECTIVE DATE/TERM. Unless otherwise specified in the Solicitation, this Contract shall be effective as of the date the contract is signed by the City, and shall continue in effect until all obligations are performed in accordance with the Contract. 3. CONTRACTOR TO PACKAGE DELIVERABLES: The Contractor will package deliverables in accordance with good commercial practice and shall include a packing list showing the description of each item, the quantity and unit price unless otherwise provided in the Specifications or Supplemental Terms and Conditions, each shipping container shall be clearly and permanently marked as follows: (a) The Contractor's name and address, (b) the City’s name, address and purchase order or purchase release number and the price agreement number if applicable, (c) Container number and total number of containers, e.g. box 1 of 4 boxes, and (d) the number of the container bearing the packing list. The Contractor shall bear cost of packaging. Deliverables shall be suitably packed to secure lowest transportation costs and to conform to all the requirements of common carriers and any applicable specification. The City's count or weight shall be final and conclusive on shipments not accompanied by packing lists. 4. SHIPMENT UNDER RESERVATION PROHIBITED: The Contractor is not authorized to ship the deliverables under reservation and no tender of a bill of lading will operate as a tender of deliverables. 5. TITLE & RISK OF LOSS: Title to and risk of loss of the deliverables shall pass to the City only when the City actually receives and accepts the deliverables. 6. DELIVERY TERMS AND TRANSPORTATION CHARGES: Deliverables shall be shipped F.O.B. point of delivery unless otherwise specified in the Supplemental Terms and Conditions. Unless otherwise stated in the Offer, the Contractor’s price shall be deemed to include all delivery and transportation charges. The City shall have the right to designate what method of transportation shall be used to ship the deliverables. The place of delivery shall be that set forth the purchase order. 7. RIGHT OF INSPECTION AND REJECTION: The City expressly reserves all rights under law, DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 266 File #7685 including, but not limited to the Uniform Commercial Code, to inspect the deliverables at delivery before accepting them, and to reject defective or non-conforming deliverables. If the City has the right to inspect the Contractor’s, or the Contractor’s Subcontractor’s, facilities, or the deliverables at the Contractor’s, or the Contractor’s Subcontractor’s, premises, the Contractor shall furnish, or cause to be furnished, without additional charge, all reasonable facilities and assistance to the City to facilitate such inspection. 8. NO REPLACEMENT OF DEFECTIVE TENDER: Every tender or delivery of deliverables must fully comply with all provisions of the Contract as to time of delivery, quality, and quantity. Any non- complying tender shall constitute a breach and the Contractor shall not have the right to substitute a conforming tender; provided, where the time for performance has not yet expired, the Contractor may notify the City of the intention to cure and may then make a conforming tender within the time allotted in the contract. 9. PLACE AND CONDITION OF WORK: The City shall provide the Contractor access to the sites where the Contractor is to perform the services as required in order for the Contractor to perform the services in a timely and efficient manner, in accordance with and subject to the applicable security laws, rules, and regulations. The Contractor acknowledges that it has satisfied itself as to the nature of the City’s service requirements and specifications, the location and essential characteristics of the work sites, the quality and quantity of materials, equipment, labor and facilities necessary to perform the services, and any other condition or state of fact which could in any way affect performance of the Contractor’s obligations under the contract. The Contractor hereby releases and holds the City harmless from and against any liability or claim for damages of any kind or nature if the actual site or service conditions differ from expected conditions. The contractor shall, at all times, exercise reasonable precautions for the safety of their employees, City Staff, participants and others on or near the City’s facilities. 10. WORKFORCE A. The Contractor shall employ only orderly and competent workers, skilled in the performance of the services which they will perform under the Contract. B. The Contractor, its employees, subcontractors, and subcontractor's employees may not while engaged in participating or responding to a solicitation or while in the course and scope of delivering goods or services under a City of Denton contract or on the City's property . i. use or possess a firearm, including a concealed handgun that is licensed under state law, except as required by the terms of the contract; or ii. use or possess alcoholic or other intoxicating beverages, illegal drugs or controlled substances, nor may such workers be intoxicated, or under the influence of alcohol or drugs, on the job. C. If the City or the City's representative notifies the Contractor that any worker is incompetent, disorderly or disobedient, has knowingly or repeatedly violated safety regulations, has possessed any firearms, or has possessed or was under the influence of alcohol or drugs on the job, the Contractor shall immediately remove such worker from Contract services, and may not employ such worker again on Contract services without the City's prior written consent. Immigration: The Contractor represents and warrants that it shall comply with the requirements of the Immigration Reform and Control Act of 1986 and 1990 regarding employment verification and retention of verification forms for any individuals hired on or after November 6, 1986, who will perform any labor or services under the Contract and the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (“IIRIRA) enacted on September 30, 1996. 11. COMPLIANCE WITH HEALTH, SAFETY, AND ENVIRONMENTAL REGULATIONS: The Contractor, it’s Subcontractors, and their respective employees, shall comply fully with all applicable federal, state, and local health, safety, and environmental laws, ordinances, rules and regulations in the performance of the services, including but not limited to those promulgated by the City and by the DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 267 File #7685 Occupational Safety and Health Administration (OSHA). In case of conflict, the most stringent safety requirement shall govern. The Contractor shall indemnify and hold the City harmless from and against all claims, demands, suits, actions, judgments, fines, penalties and liability of every kind arising from the breach of the Contractor’s obligations under this paragraph. Environmental Protection: The Respondent shall be in compliance with all applicable standards, orders, or regulations issued pursuant to the mandates of the Clean Air Act (42 U.S.C. §7401 et seq.) and the Federal Water Pollution Control Act, as amended, (33 U.S.C. §1251 et seq.). 12. INVOICES: A. The Contractor shall submit separate invoices in duplicate on each purchase order or purchase release after each delivery. If partial shipments or deliveries are authorized by the City, a separate invoice must be sent for each shipment or delivery made. B. Proper Invoices must include a unique invoice number, the purchase order or delivery order number and the master agreement number if applicable, the Department’s Name, and the name of the point of contact for the Department. Invoices shall be itemized and transportation charges, if any, shall be listed separately. A copy of the bill of lading and the freight waybill, when applicable, shall be attached to the invoice. The Contractor’s name, remittance address and, if applicable, the tax identification number on the invoice must exactly match the information in the Vendor’s registration with the City. Unless otherwise instructed in writing, the City may rely on the remittance address specified on the Contractor’s invoice. C. Invoices for labor shall include a copy of all time-sheets with trade labor rate and deliverables order number clearly identified. Invoices shall also include a tabulation of work-hours at the appropriate rates and grouped by work order number. Time billed for labor shall be limited to hours actually worked at the work site. D. Unless otherwise expressly authorized in the Contract, the Contractor shall pass through all Subcontract and other authorized expenses at actual cost without markup. E. Federal excise taxes, State taxes, or City sales taxes must not be included in the invoiced amount. The City will furnish a tax exemption certificate upon request. 13. PAYMENT: A. All proper invoices need to be sent to Accounts Payable. Approved invoices will be paid within thirty (30) calendar days of the City’s receipt of the deliverables or of the invoice being received in Accounts Payable, whichever is later. B. If payment is not timely made, (per paragraph A); interest shall accrue on the unpaid balance at the lesser of the rate specified in Texas Government Code Section 2251.025 or the maximum lawful rate; except, if payment is not timely made for a reason for which the City may withhold payment hereunder, interest shall not accrue until ten (10) calendar days after the grounds for withholding payment have been resolved. C. If partial shipments or deliveries are authorized by the City, the Contractor will be paid for the partial shipment or delivery, as stated above, provided that the invoice matches the shipment or delivery. D. The City may withhold or set off the entire payment or part of any payment otherwise due the Contractor to such extent as may be necessary on account of: i. delivery of defective or non-conforming deliverables by the Contractor; ii. third party claims, which are not covered by the insurance which the Contractor is required to provide, are filed or reasonable evidence indicating probable filing of such claims; iii. failure of the Contractor to pay Subcontractors, or for labor, materials or equipment; iv. damage to the property of the City or the City’s agents, employees or contractors, which is not covered by insurance required to be provided by the Contractor; v. reasonable evidence that the Contractor’s obligations will not be completed within the time specified in the Contract, and that the unpaid balance would not be adequate to cover actual DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 268 File #7685 or damages for the anticipated delay; vi. failure of the Contractor to submit proper invoices with purchase order number, with all required attachments and supporting documentation; or vii. failure of the Contractor to comply with any material provision of the Contract Documents. E. Notice is hereby given that any awarded firm who is in arrears to the City of Denton for delinquent taxes, the City may offset indebtedness owed the City through payment withholding. F. Payment will be made by check unless the parties mutually agree to payment by credit card or electronic transfer of funds. The Contractor agrees that there shall be no additional charges, surcharges, or penalties to the City for payments made by credit card or electronic funds transfer. G. The awarding or continuation of this contract is dependent upon the availability of funding. The City’s payment obligations are payable only and solely from funds Appropriated and available for this contract. The absence of Appropriated or other lawfully available funds shall render the Contract null and void to the extent funds are not Appropriated or available and any deliverables delivered but unpaid shall be returned to the Contractor. The City shall provide the Contractor written notice of the failure of the City to make an adequate Appropriation for any fiscal year to pay the amounts due under the Contract, or the reduction of any Appropriation to an amount insufficient to permit the City to pay its obligations under the Contract. In the event of none or inadequate appropriation of funds, there will be no penalty nor removal fees charged to the City. 14. TRAVEL EXPENSES: All travel, lodging and per diem expenses in connection with the Contract shall be paid by the Contractor, unless otherwise stated in the contract terms. During the term of this contract, the contractor shall bill and the City shall reimburse contractor for all reasonable and approved out of pocket expenses which are incurred in the connection with the performance of duties hereunder. Notwithstanding the foregoing, expenses for the time spent by the contractor in traveling to and from City facilities shall not be reimbursed, unless otherwise negotiated. 15. FINAL PAYMENT AND CLOSE-OUT: A. If a DBE/MBE/WBE Program Plan is agreed to and the Contractor has identified Subcontractors, the Contractor is required to submit a Contract Close-Out MBE/WBE Compliance Report to the Purchasing Manager no later than the 15th calendar day after completion of all work under the contract. Final payment, retainage, or both may be withheld if the Contractor is not in compliance with the requirements as accepted by the City. B. The making and acceptance of final payment will constitute: i. a waiver of all claims by the City against the Contractor, except claims (1) which have been previously asserted in writing and not yet settled, (2) arising from defective work appearing after final inspection, (3) arising from failure of the Contractor to comply with the Contract or the terms of any warranty specified herein, (4) arising from the Contractor’s continuing obligations under the Contract, including but not limited to indemnity and warranty obligations, or (5) arising under the City’s right to audit; and ii. a waiver of all claims by the Contractor against the City other than those previously asserted in writing and not yet settled. 16. SPECIAL TOOLS & TEST EQUIPMENT: If the price stated on the Offer includes the cost of any special tooling or special test equipment fabricated or required by the Contractor for the purpose of filling this order, such special tooling equipment and any process sheets related thereto shall become the property of the City and shall be identified by the Contractor as such. 17. RIGHT TO AUDIT: A. The City shall have the right to audit and make copies of the books, records and computations pertaining to the Contract. The Contractor shall retain such books, records, documents and other evidence pertaining to the Contract period and five years thereafter, except if an audit is in progress or audit findings are yet unresolved, in which case records shall be kept until all audit tasks are completed and resolved. These books, records, documents and other evidence shall be available, within ten (10) business days of written DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 269 File #7685 request. Further, the Contractor shall also require all Subcontractors, material suppliers, and other payees to retain all books, records, documents and other evidence pertaining to the Contract, and to allow the City similar access to those documents. All books and records will be made available within a 50 mile radius of the City of Denton. The cost of the audit will be borne by the City unless the audit reveals an overpayment of 1% or greater. If an overpayment of 1% or greater occurs, the reasonable cost of the audit, including any travel costs, must be borne by the Contractor which must be payable within five (5) business days of receipt of an invoice. B. Failure to comply with the provisions of this section shall be a material breach of the Contract and shall constitute, in the City’s sole discretion, grounds for termination thereof. Each of the terms “books”, “records”, “documents” and “other evidence”, as used above, shall be construed to include drafts and electronic files, even if such drafts or electronic files are subsequently used to generate or prepare a final printed document. 18. SUBCONTRACTORS: A. If the Contractor identified Subcontractors in a DBE/MBE/WBE agreed to Plan, the Contractor shall comply with all requirements approved by the City. The Contractor shall not initially employ any Subcontractor except as provided in the Contractor’s Plan. The Contractor shall not substitute any Subcontractor identified in the Plan, unless the substitute has been accepted by the City in writing. No acceptance by the City of any Subcontractor shall constitute a waiver of any rights or remedies of the City with respect to defective deliverables provided by a Subcontractor. If a Plan has been approved, the Contractor is additionally required to submit a monthly Subcontract Awards and Expenditures Report to the Procurement Manager, no later than the tenth calendar day of each month. B. Work performed for the Contractor by a Subcontractor shall be pursuant to a written contract between the Contractor and Subcontractor. The terms of the subcontract may not conflict with the terms of the Contract, and shall contain provisions that: i. require that all deliverables to be provided by the Subcontractor be provided in strict accordance with the provisions, specifications and terms of the Contract; ii. prohibit the Subcontractor from further subcontracting any portion of the Contract without the prior written consent of the City and the Contractor. The City may require, as a condition to such further subcontracting, that the Subcontractor post a payment bond in form, substance and amount acceptable to the City; iii. require Subcontractors to submit all invoices and applications for payments, including any claims for additional payments, damages or otherwise, to the Contractor in sufficient time to enable the Contractor to include same with its invoice or application for payment to the City in accordance with the terms of the Contract; iv. require that all Subcontractors obtain and maintain, throughout the term of their contract, insurance in the type and amounts specified for the Contractor, with the City being a named insured as its interest shall appear; and v. require that the Subcontractor indemnify and hold the City harmless to the same extent as the Contractor is required to indemnify the City. C. The Contractor shall be fully responsible to the City for all acts and omissions of the Subcontractors just as the Contractor is responsible for the Contractor's own acts and omissions. Nothing in the Contract shall create for the benefit of any such Subcontractor any contractual relationship between the City and any such Subcontractor, nor shall it create any obligation on the part of the City to pay or to see to the payment of any moneys due any such Subcontractor except as may otherwise be required by law. D. The Contractor shall pay each Subcontractor its appropriate share of payments made to the Contractor not later than ten (10) calendar days after receipt of payment from the City. 19. WARRANTY-PRICE: A. The Contractor warrants the prices quoted in the Offer are no higher than the Contractor's current prices on orders by others for like deliverables under similar terms of purchase. B. The Contractor certifies that the prices in the Offer have been arrived at independently without DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 270 File #7685 consultation, communication, or agreement for the purpose of restricting competition, as to any matter relating to such fees with any other firm or with any competitor. C. In addition to any other remedy available, the City may deduct from any amounts owed to the Contractor, or otherwise recover, any amounts paid for items in excess of the Contractor's current prices on orders by others for like deliverables under similar terms of purchase. 20. WARRANTY – TITLE: The Contractor warrants that it has good and indefeasible title to all deliverables furnished under the Contract, and that the deliverables are free and clear of all liens, claims, security interests and encumbrances. The Contractor shall indemnify and hold the City harmless from and against all adverse title claims to the deliverables. 21. WARRANTY – DELIVERABLES: The Contractor warrants and represents that all deliverables sold the City under the Contract shall be free from defects in design, workmanship or manufacture, and conform in all material respects to the specifications, drawings, and descriptions in the Solicitation, to any samples furnished by the Contractor, to the terms, covenants and conditions of the Contract, and to all applicable State, Federal or local laws, rules, and regulations, and industry codes and standards. Unless otherwise stated in the Solicitation, the deliverables shall be new or recycled merchandise, and not used or reconditioned. A. Recycled deliverables shall be clearly identified as such. B. The Contractor may not limit, exclude or disclaim the foregoing warranty or any warranty implied by law; and any attempt to do so shall be without force or effect. C. Unless otherwise specified in the Contract, the warranty period shall be at least one year from the date of acceptance of the deliverables or from the date of acceptance of any replacement deliverables. If during the warranty period, one or more of the above warranties are breached, the Contractor shall promptly upon receipt of demand either repair the non-conforming deliverables, or replace the non-conforming deliverables with fully conforming deliverables, at the City’s option and at no additional cost to the City. All costs incidental to such repair or replacement, including but not limited to, any packaging and shipping costs shall be borne exclusively by the Contractor. The City shall endeavor to give the Contractor written notice of the breach of warranty within thirty (30) calendar days of discovery of the breach of warranty, but failure to give timely notice shall not impair the City’s rights under this section. D. If the Contractor is unable or unwilling to repair or replace defective or non-conforming deliverables as required by the City, then in addition to any other available remedy, the City may reduce the quantity of deliverables it may be required to purchase under the Contract from the Contractor, and purchase conforming deliverables from other sources. In such event, the Contractor shall pay to the City upon demand the increased cost, if any, incurred by the City to procure such deliverables from another source. E. If the Contractor is not the manufacturer, and the deliverables are covered by a separate manufacturer’s warranty, the Contractor shall transfer and assign such manufacturer’s warranty to the City. If for any reason the manufacturer’s warranty cannot be fully transferred to the City, the Contractor shall assist and cooperate with the City to the fullest extent to enforce such manufacturer’s warranty for the benefit of the City. 22. WARRANTY – SERVICES: The Contractor warrants and represents that all services to be provided the City under the Contract will be fully and timely performed in a good and workmanlike manner in accordance with generally accepted industry standards and practices, the terms, conditions, and covenants of the Contract, and all applicable Federal, State and local laws, rules or regulations. A. The Contractor may not limit, exclude or disclaim the foregoing warranty or any warranty implied by law, and any attempt to do so shall be without force or effect. B. Unless otherwise specified in the Contract, the warranty period shall be at least one year from the Acceptance Date. If during the warranty period, one or more of the above warranties are breached, the Contractor shall promptly upon receipt of demand perform the services again in accordance with above standard at no additional cost to the City. All costs incidental to such additional performance shall be borne by the Contractor. The City shall endeavor to give the Contractor written notice of the breach of warranty within thirty (30) calendar days of discovery of the breach warranty, but failure to give timely notice shall DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 271 File #7685 not impair the City’s rights under this section. C. If the Contractor is unable or unwilling to perform its services in accordance with the above standard as required by the City, then in addition to any other available remedy, the City may reduce the amount of services it may be required to purchase under the Contract from the Contractor, and purchase conforming services from other sources. In such event, the Contractor shall pay to the City upon demand the increased cost, if any, incurred by the City to procure such services from another source. 23. ACCEPTANCE OF INCOMPLETE OR NON-CONFORMING DELIVERABLES: If, instead of requiring immediate correction or removal and replacement of defective or non-conforming deliverables, the City prefers to accept it, the City may do so. The Contractor shall pay all claims, costs, losses and damages attributable to the City’s evaluation of and determination to accept such defective or non- conforming deliverables. If any such acceptance occurs prior to final payment, the City may deduct such amounts as are necessary to compensate the City for the diminished value of the defective or non- conforming deliverables. If the acceptance occurs after final payment, such amount will be refunded to the City by the Contractor. 24. RIGHT TO ASSURANCE: Whenever one party to the Contract in good faith has reason to question the other party’s intent to perform, demand may be made to the other party for written assurance of the intent to perform. In the event that no assurance is given within the time specified after demand is made, the demanding party may treat this failure as an anticipatory repudiation of the Contract. 25. STOP WORK NOTICE: The City may issue an immediate Stop Work Notice in the event the Contractor is observed performing in a manner that is in violation of Federal, State, or local guidelines, or in a manner that is determined by the City to be unsafe to either life or property. Upon notification, the Contractor will cease all work until notified by the City that the violation or unsafe condition has been corrected. The Contractor shall be liable for all costs incurred by the City as a result of the issuance of such Stop Work Notice. 26. DEFAULT: The Contractor shall be in default under the Contract if the Contractor (a) fails to fully, timely and faithfully perform any of its material obligations under the Contract, (b) fails to provide adequate assurance of performance under Paragraph 24, (c) becomes insolvent or seeks relief under the bankruptcy laws of the United States or (d) makes a material misrepresentation in Contractor’s Offer, or in any report or deliverable required to be submitted by the Contractor to the City. 27. TERMINATION FOR CAUSE: In the event of a default by the Contractor, the City shall have the right to terminate the Contract for cause, by written notice effective ten (10) calendar days, unless otherwise specified, after the date of such notice, unless the Contractor, within such ten (10) day period, cures such default, or provides evidence sufficient to prove to the City’s reasonable satisfaction that such default does not, in fact, exist. In addition to any other remedy available under law or in equity, the City shall be entitled to recover all actual damages, costs, losses and expenses, incurred by the City as a result of the Contractor’s default, including, without limitation, cost of cover, reasonable attorneys’ fees, court costs, and prejudgment and post-judgment interest at the maximum lawful rate. Additionally, in the event of a default by the Contractor, the City may remove the Contractor from the City’s vendor list for three (3) years and any Offer submitted by the Contractor may be disqualified for up to three (3) years. All rights and remedies under the Contract are cumulative and are not exclusive of any other right or remedy provided by law. 28. TERMINATION WITHOUT CAUSE: The City 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 DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 272 File #7685 hereof. 29. FRAUD: Fraudulent statements by the Contractor on any Offer or in any report or deliverable required to be submitted by the Contractor to the City shall be grounds for the termination of the Contract for cause by the City and may result in legal action. 30. DELAYS: A. The City may delay scheduled delivery or other due dates by written notice to the Contractor if the City deems it is in its best interest. If such delay causes an increase in the cost of the work under the Contract, the City and the Contractor shall negotiate an equitable adjustment for costs incurred by the Contractor in the Contract price and execute an amendment to the Contract. The Contractor must assert its right to an adjustment within thirty (30) calendar days from the date of receipt of the notice of delay. Failure to agree on any adjusted price shall be handled under the Dispute Resolution process specified in paragraph 49. However, nothing in this provision shall excuse the Contractor from delaying the delivery as notified. B. Neither party shall be liable for any default or delay in the performance of its obligations under this Contract if, while and to the extent such default or delay is caused by acts of God, fire, riots, civil commotion, labor disruptions, sabotage, sovereign conduct, or any other cause beyond the reasonable control of such Party. In the event of default or delay in contract performance due to any of the foregoing causes, then the time for completion of the services will be extended; provided, however, in such an event, a conference will be held within three (3) business days to establish a mutually agreeable period of time reasonably necessary to overcome the effect of such failure to perform. 31. INDEMNITY: A. Definitions: i. "Indemnified Claims" shall include any and all claims, demands, suits, causes of action, judgments and liability of every character, type or description, including all reasonable costs and expenses of litigation, mediation or other alternate dispute resolution mechanism, including attorney and other professional fees for: (1) damage to or loss of the property of any person (including, but not limited to the City, the Contractor, their respective agents, officers, employees and subcontractors; the officers, agents, and employees of such subcontractors; and third parties); and/or (2) death, bodily injury, illness, disease, worker's compensation, loss of services, or loss of income or wages to any person (including but not limited to the agents, officers and employees of the City, the Contractor, the Contractor’s subcontractors, and third parties), ii. "Fault" shall include the sale of defective or non-conforming deliverables, negligence, willful misconduct or a breach of any legally imposed strict liability standard. B. THE CONTRACTOR SHALL DEFEND (AT THE OPTION OF THE CITY), INDEMNIFY, AND HOLD THE CITY, ITS SUCCESSORS, ASSIGNS, OFFICERS, EMPLOYEES AND ELECTED OFFICIALS HARMLESS FROM AND AGAINST ALL INDEMNIFIED CLAIMS DIRECTLY ARISING OUT OF, INCIDENT TO, CONCERNING OR RESULTING FROM THE FAULT OF THE CONTRACTOR, OR THE CONTRACTOR'S AGENTS, EMPLOYEES OR SUBCONTRACTORS, IN THE PERFORMANCE OF THE CONTRACTOR’S OBLIGATIONS UNDER THE CONTRACT. NOTHING HEREIN SHALL BE DEEMED TO LIMIT THE RIGHTS OF THE CITY OR THE CONTRACTOR (INCLUDING, BUT NOT LIMITED TO, THE RIGHT TO SEEK CONTRIBUTION) AGAINST ANY THIRD PARTY WHO MAY BE LIABLE FOR AN INDEMNIFIED CLAIM. 32. INSURANCE: The following insurance requirements are applicable, in addition to the specific insurance requirements detailed in Appendix A for services only. The successful firm shall procure and maintain insurance of the types and in the minimum amounts acceptable to the City of Denton. The insurance shall be written by a company licensed to do business in the State of Texas and satisfactory to the City of Denton. DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 273 File #7685 A. General Requirements: i. The Contractor shall at a minimum carry insurance in the types and amounts indicated and agreed to, as submitted to the City and approved by the City within the procurement process, for the duration of the Contract, including extension options and hold over periods, and during any warranty period. ii. The Contractor shall provide Certificates of Insurance with the coverage’s and endorsements required to the City as verification of coverage prior to contract execution and within fourteen (14) calendar days after written request from the City. Failure to provide the required Certificate of Insurance may subject the Offer to disqualification from consideration for award. The Contractor must also forward a Certificate of Insurance to the City whenever a previously identified policy period has expired, or an extension option or hold over period is exercised, as verification of continuing coverage. iii. The Contractor shall not commence work until the required insurance is obtained and until such insurance has been reviewed by the City. Approval of insurance by the City shall not relieve or decrease the liability of the Contractor hereunder and shall not be construed to be a limitation of liability on the part of the Contractor. iv. The Contractor must submit certificates of insurance to the City for all subcontractors prior to the subcontractors commencing work on the project. v. The Contractor’s and all subcontractors’ insurance coverage shall be written by companies licensed to do business in the State of Texas at the time the policies are issued and shall be written by companies with A.M. Best ratings of A- VII or better. The City will accept workers’ compensation coverage written by the Texas Workers’ Compensation Insurance Fund. vi. All endorsements naming the City as additional insured, waivers, and notices of cancellation endorsements as well as the Certificate of Insurance shall contain the solicitation number and the following information: City of Denton Materials Management Department 901B Texas Street Denton, Texas 76209 vii. The “other” insurance clause shall not apply to the City where the City is an additional insured shown on any policy. It is intended that policies required in the Contract, covering both the City and the Contractor, shall be considered primary coverage as applicable. viii. If insurance policies are not written for amounts agreed to with the City, the Contractor shall carry Umbrella or Excess Liability Insurance for any differences in amounts specified. If Excess Liability Insurance is provided, it shall follow the form of the primary coverage. ix. The City shall be entitled, upon request, at an agreed upon location, and without expense, to review certified copies of policies and endorsements thereto and may make any reasonable requests for deletion or revision or modification of particular policy terms, conditions, limitations, or exclusions except where policy provisions are established by law or regulations binding upon either of the parties hereto or the underwriter on any such policies. x. The City reserves the right to review the insurance requirements set forth during the effective period of the Contract and to make reasonable adjustments to insurance coverage, limits, and exclusions when deemed necessary and prudent by the City based upon changes in statutory law, court decisions, the claims history of the industry or financial condition of the insurance company as well as the Contractor. xi. The Contractor shall not cause any insurance to be canceled nor permit any insurance to lapse during the term of the Contract or as required in the Contract. xii. The Contractor shall be responsible for premiums, deductibles and self-insured retentions, if any, stated in policies. All deductibles or self-insured retentions shall be disclosed on the Certificate of Insurance. DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 274 File #7685 xiii. The Contractor shall endeavor to provide the City thirty (30) calendar days’ written notice of erosion of the aggregate limits below occurrence limits for all applicable coverage’s indicated within the Contract. xiv. The insurance coverage’s specified in within the solicitation and requirements are required minimums and are not intended to limit the responsibility or liability of the Contractor. B. Specific Coverage Requirements: Specific insurance requirements are contained in the solicitation instrument. 33. CLAIMS: If any claim, demand, suit, or other action is asserted against the Contractor which arises under or concerns the Contract, or which could have a material adverse effect on the Contractor’s ability to perform thereunder, the Contractor shall give written notice thereof to the City within ten (10) calendar days after receipt of notice by the Contractor. Such notice to the City shall state the date of notification of any such claim, demand, suit, or other action; the names and addresses of the claimant(s); the basis thereof; and the name of each person against whom such claim is being asserted. Such notice shall be delivered personally or by mail and shall be sent to the City and to the Denton City Attorney. Personal delivery to the City Attorney shall be to City Hall, 215 East McKinney Street, Denton, Texas 76201. 34. NOTICES: Unless otherwise specified, all notices, requests, or other communications required or appropriate to be given under the Contract shall be in writing and shall be deemed delivered three (3) business days after postmarked if sent by U.S. Postal Service Certified or Registered Mail, Return Receipt Requested. Notices delivered by other means shall be deemed delivered upon receipt by the addressee. Routine communications may be made by first class mail, telefax, or other commercially accepted means. Notices to the Contractor shall be sent to the address specified in the Contractor’s Offer, or at such other address as a party may notify the other in writing. Notices to the City shall be addressed to the City at 901B Texas Street, Denton, Texas 76209 and marked to the attention of the Purchasing Manager. 35. RIGHTS TO BID, PROPOSAL AND CONTRACTUAL MATERIAL: All material submitted by the Contractor to the City shall become property of the City upon receipt. Any portions of such material claimed by the Contractor to be proprietary must be clearly marked as such. Determination of the public nature of the material is subject to the Texas Public Information Act, Chapter 552, and Texas Government Code. 36. NO WARRANTY BY CITY AGAINST INFRINGEMENTS: The Contractor represents and warrants to the City that: (i) the Contractor shall provide the City good and indefeasible title to the deliverables and (ii) the deliverables supplied by the Contractor in accordance with the specifications in the Contract will not infringe, directly or contributorily, any patent, trademark, copyright, trade secret, or any other intellectual property right of any kind of any third party; that no claims have been made by any person or entity with respect to the ownership or operation of the deliverables and the Contractor does not know of any valid basis for any such claims. The Contractor shall, at its sole expense, defend, indemnify, and hold the City harmless from and against all liability, damages, and costs (including court costs and reasonable fees of attorneys and other professionals) arising out of or resulting from: (i) any claim that the City’s exercise anywhere in the world of the rights associated with the City’s’ ownership, and if applicable, license rights, and its use of the deliverables infringes the intellectual property rights of any third party; or (ii) the Contractor’s breach of any of Contractor’s representations or warranties stated in this Contract. In the event of any such claim, the City shall have the right to monitor such claim or at its option engage its own separate counsel to act as co-counsel on the City’s behalf. Further, Contractor agrees that the City’s specifications regarding the deliverables shall in no way diminish Contractor’s warranties or obligations under this paragraph and the City makes no warranty that the production, development, or delivery of such deliverables will not impact such warranties of Contractor. 37. CONFIDENTIALITY: In order to provide the deliverables to the City, Contractor may require access to certain of the City’s and/or its licensors’ confidential information (including inventions, employee DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 275 File #7685 information, trade secrets, confidential know-how, confidential business information, and other information which the City or its licensors consider confidential) (collectively, “Confidential Information”). Contractor acknowledges and agrees that the Confidential Information is the valuable property of the City and/or its licensors and any unauthorized use, disclosure, dissemination, or other release of the Confidential Information will substantially injure the City and/or its licensors. The Contractor (including its employees, subcontractors, agents, or representatives) agrees that it will maintain the Confidential Information in strict confidence and shall not disclose, disseminate, copy, divulge, recreate, or otherwise use the Confidential Information without the prior written consent of the City or in a manner not expressly permitted under this Agreement, unless the Confidential Information is required to be disclosed by law or an order of any court or other governmental authority with proper jurisdiction, provided the Contractor promptly notifies the City before disclosing such information so as to permit the City reasonable time to seek an appropriate protective order. The Contractor agrees to use protective measures no less stringent than the Contractor uses within its own business to protect its own most valuable information, which protective measures shall under all circumstances be at least reasonable measures to ensure the continued confidentiality of the Confidential Information. 38. OWNERSHIP AND USE OF DELIVERABLES: The City shall own all rights, titles, and interests throughout the world in and to the deliverables. A. Patents. As to any patentable subject matter contained in the deliverables, the Contractor agrees to disclose such patentable subject matter to the City. Further, if requested by the City, the Contractor agrees to assign and, if necessary, cause each of its employees to assign the entire right, title, and interest to specific inventions under such patentable subject matter to the City and to execute, acknowledge, and deliver and, if necessary, cause each of its employees to execute, acknowledge, and deliver an assignment of letters patent, in a form to be reasonably approved by the City, to the City upon request by the City. B. Copyrights. As to any deliverables containing copyrightable subject matter, the Contractor agrees that upon their creation, such deliverables shall be considered as work made-for-hire by the Contractor for the City and the City shall own all copyrights in and to such deliverables, provided however, that nothing in this Paragraph 38 shall negate the City’s sole or joint ownership of any such deliverables arising by virtue of the City’s sole or joint authorship of such deliverables. Should by operation of law, such deliverables not be considered works made-for-hire, the Contractor hereby assigns to the City (and agrees to cause each of its employees providing services to the City hereunder to execute, acknowledge, and deliver an assignment to the City of) all worldwide right, title, and interest in and to such deliverables. With respect to such work made-for-hire, the Contractor agrees to execute, acknowledge, and deliver and cause each of its employees providing services to the City hereunder to execute, acknowledge, and deliver a work-made-for-hire agreement, in a form to be reasonably approved by the City, to the City upon delivery of such deliverables to the City or at such other time as the City may request. C. Additional Assignments. The Contractor further agrees to, and if applicable, cause each of its employees to, execute, acknowledge, and deliver all applications, specifications, oaths, assignments, and all other instruments which the City might reasonably deem necessary in order to apply for and obtain copyright protection, mask work registration, trademark registration and/or protection, letters patent, or any similar rights in any and all countries and in order to assign and convey to the City, its successors, assigns and nominees, the sole and exclusive right, title, and interest in and to the deliverables. The Contractor’s obligations to execute, acknowledge, and deliver (or cause to be executed, acknowledged, and delivered) instruments or papers such as those described in this Paragraph 38 a., b., and c. shall continue after the termination of this Contract with respect to such deliverables. In the event the City should not seek to obtain copyright protection, mask work registration or patent protection for any of the deliverables, but should desire to keep the same secret, the Contractor agrees to treat the same as Confidential Information under the terms of Paragraph 37 above. 39. PUBLICATIONS: All published material and written reports submitted under the Contract must be originally developed material unless otherwise specifically provided in the Contract. When material not originally developed is included in a report in any form, the source shall be identified. DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 276 File #7685 40. ADVERTISING: The Contractor shall not advertise or publish, without the City’s prior consent, the fact that the City has entered into the Contract, except to the extent required by law. 41. NO CONTINGENT FEES: The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure the Contract upon any agreement or understanding for commission, percentage, brokerage, or contingent fee, excepting bona fide employees of bona fide established commercial or selling agencies maintained by the Contractor for the purpose of securing business. For breach or violation of this warranty, the City shall have the right, in addition to any other remedy available, to cancel the Contract without liability and to deduct from any amounts owed to the Contractor, or otherwise recover, the full amount of such commission, percentage, brokerage or contingent fee. 42. GRATUITIES: The City may, by written notice to the Contractor, cancel the Contract without liability if it is determined by the City that gratuities were offered or given by the Contractor or any agent or representative of the Contractor to any officer or employee of the City of Denton with a view toward securing the Contract or securing favorable treatment with respect to the awarding or amending or the making of any determinations with respect to the performing of such contract. In the event the Contract is canceled by the City pursuant to this provision, the City shall be entitled, in addition to any other rights and remedies, to recover or withhold the amount of the cost incurred by the Contractor in providing such gratuities. 43. PROHIBITION AGAINST PERSONAL INTEREST IN CONTRACTS: No officer, employee, independent consultant, or elected official of the City who is involved in the development, evaluation, or decision-making process of the performance of any solicitation shall have a financial interest, direct or indirect, in the Contract resulting from that solicitation. Any willful violation of this section shall constitute impropriety in office, and any officer or employee guilty thereof shall be subject to disciplinary action up to and including dismissal. Any violation of this provision, with the knowledge, expressed or implied, of the Contractor shall render the Contract voidable by the City. The Contractor shall complete and submit the City’s Conflict of Interest Questionnaire. 44. INDEPENDENT CONTRACTOR: The Contract shall not be construed as creating an employer/employee relationship, a partnership, or a joint venture. The Contractor’s services shall be those of an independent contractor. The Contractor agrees and understands that the Contract does not grant any rights or privileges established for employees of the City of Denton, Texas for the purposes of income tax, withholding, social security taxes, vacation or sick leave benefits, worker’s compensation, or any other City employee benefit. The City shall not have supervision and control of the Contractor or any employee of the Contractor, and it is expressly understood that Contractor shall perform the services hereunder according to the attached specifications at the general direction of the City Manager of the City of Denton, Texas, or his designee under this agreement. The contractor is expressly free to advertise and perform services for other parties while performing services for the City. 45. ASSIGNMENT-DELEGATION: The Contract shall be binding upon and ensure to the benefit of the City and the Contractor and their respective successors and assigns, provided however, that no right or interest in the Contract shall be assigned and no obligation shall be delegated by the Contractor without the prior written consent of the City. Any attempted assignment or delegation by the Contractor shall be void unless made in conformity with this paragraph. The Contract is not intended to confer rights or benefits on any person, firm or entity not a party hereto; it being the intention of the parties that there are no third party beneficiaries to the Contract. The Vendor shall notify the City’s Purchasing Manager, in writing, of a company name, ownership, or address change for the purpose of maintaining updated City records. The president of the company or authorized official must sign the letter. A letter indicating changes in a company name or ownership must be accompanied with supporting legal documentation such as an updated W-9, documents filed with the DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 277 File #7685 state indicating such change, copy of the board of director’s resolution approving the action, or an executed merger or acquisition agreement. Failure to do so may adversely impact future invoice payments. 46. WAIVER: No claim or right arising out of a breach of the Contract can be discharged in whole or in part by a waiver or renunciation of the claim or right unless the waiver or renunciation is supported by consideration and is in writing signed by the aggrieved party. No waiver by either the Contractor or the City of any one or more events of default by the other party shall operate as, or be construed to be, a permanent waiver of any rights or obligations under the Contract, or an express or implied acceptance of any other existing or future default or defaults, whether of a similar or different character. 47. MODIFICATIONS: The Contract can be modified or amended only by a writing signed by both parties. No pre-printed or similar terms on any the Contractor invoice, order or other document shall have any force or effect to change the terms, covenants, and conditions of the Contract. 48. INTERPRETATION: The Contract is intended by the parties as a final, complete and exclusive statement of the terms of their agreement. No course of prior dealing between the parties or course of performance or usage of the trade shall be relevant to supplement or explain any term used in the Contract. Although the Contract may have been substantially drafted by one party, it is the intent of the parties that all provisions be construed in a manner to be fair to both parties, reading no provisions more strictly against one party or the other. Whenever a term defined by the Uniform Commercial Code, as enacted by the State of Texas, is used in the Contract, the UCC definition shall control, unless otherwise defined in the Contract. 49. DISPUTE RESOLUTION: A. If a dispute arises out of or relates to the Contract, or the breach thereof, the parties agree to negotiate prior to prosecuting a suit for damages. However, this section does not prohibit the filing of a lawsuit to toll the running of a statute of limitations or to seek injunctive relief. Either party may make a written request for a meeting between representatives of each party within fourteen (14) calendar days after receipt of the request or such later period as agreed by the parties. Each party shall include, at a minimum, one (1) senior level individual with decision-making authority regarding the dispute. The purpose of this and any subsequent meeting is to attempt in good faith to negotiate a resolution of the dispute. If, within thirty (30) calendar days after such meeting, the parties have not succeeded in negotiating a resolution of the dispute, they will proceed directly to mediation as described below. Negotiation may be waived by a written agreement signed by both parties, in which event the parties may proceed directly to mediation as described below. B. If the efforts to resolve the dispute through negotiation fail, or the parties waive the negotiation process, the parties may select, within thirty (30) calendar days, a mediator trained in mediation skills to assist with resolution of the dispute. Should they choose this option; the City and the Contractor agree to act in good faith in the selection of the mediator and to give consideration to qualified individuals nominated to act as mediator. Nothing in the Contract prevents the parties from relying on the skills of a person who is trained in the subject matter of the dispute or a contract interpretation expert. If the parties fail to agree on a mediator within thirty (30) calendar days of initiation of the mediation process, the mediator shall be selected by the Denton County Alternative Dispute Resolution Program (DCAP). The parties agree to participate in mediation in good faith for up to thirty (30) calendar days from the date of the first mediation session. The City and the Contractor will share the mediator’s fees equally and the parties will bear their own costs of participation such as fees for any consultants or attorneys they may utilize to represent them or otherwise assist them in the mediation. 50. JURISDICTION AND VENUE: The Contract is made under and shall be governed by the laws of the State of Texas, including, when applicable, the Uniform Commercial Code as adopted in Texas, V.T.C.A., Bus. & Comm. Code, Chapter 1, excluding any rule or principle that would refer to and apply the substantive law of another state or jurisdiction. All issues arising from this Contract shall be resolved in the courts of Denton County, Texas and the parties agree to submit to the exclusive personal jurisdiction of DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 278 File #7685 such courts. The foregoing, however, shall not be construed or interpreted to limit or restrict the right or ability of the City to seek and secure injunctive relief from any competent authority as contemplated herein. 51. INVALIDITY: The invalidity, illegality, or unenforceability of any provision of the Contract shall in no way affect the validity or enforceability of any other portion or provision of the Contract. Any void provision shall be deemed severed from the Contract and the balance of the Contract shall be construed and enforced as if the Contract did not contain the particular portion or provision held to be void. The parties further agree to reform the Contract to replace any stricken provision with a valid provision that comes as close as possible to the intent of the stricken provision. The provisions of this section shall not prevent this entire Contract from being void should a provision which is the essence of the Contract be determined to be void. 52. HOLIDAYS: The following holidays are observed by the City: New Year’s Day (observed) MLK Day Memorial Day 4th of July Labor Day Thanksgiving Day Day After Thanksgiving Christmas Eve (observed) Christmas Day (observed) New Year’s Day (observed) If a Legal Holiday falls on Saturday, it will be observed on the preceding Friday. If a Legal Holiday falls on Sunday, it will be observed on the following Monday. Normal hours of operation shall be between 8:00 am and 4:00 pm, Monday through Friday, excluding City of Denton Holidays. Any scheduled deliveries or work performance not within the normal hours of operation must be approved by the City Manager of Denton, Texas or his authorized designee. 53. SURVIVABILITY OF OBLIGATIONS: All provisions of the Contract that impose continuing obligations on the parties, including but not limited to the warranty, indemnity, and confidentiality obligations of the parties, shall survive the expiration or termination of the Contract. 54. NON-SUSPENSION OR DEBARMENT CERTIFICATION: The City of Denton is prohibited from contracting with or making prime or sub-awards to parties that are suspended or debarred or whose principals are suspended or debarred from Federal, State, or City of Denton Contracts. By accepting a Contract with the City, the Vendor certifies that its firm and its principals are not currently suspended or debarred from doing business with the Federal Government, as indicated by the General Services Administration List of Parties Excluded from Federal Procurement and Non-Procurement Programs, the State of Texas, or the City of Denton. 55. EQUAL OPPORTUNITY A. Equal Employment Opportunity: No Offeror, or Offeror’s agent, shall engage in any discriminatory employment practice. No person shall, on the grounds of race, sex, sexual orientation, age, disability, creed, color, genetic testing, or national origin, be refused the benefits of, or be otherwise subjected to discrimination under any activities resulting from this RFQ. B. Americans with Disabilities Act (ADA) Compliance: No Offeror, or Offeror’s agent, shall engage in any discriminatory employment practice against individuals with disabilities as defined in the ADA. DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 279 File #7685 56. BUY AMERICAN ACT-SUPPLIES (Applicable to certain federally funded requirements) The following federally funded requirements are applicable. A. Definitions. As used in this paragraph – i. "Component" means an article, material, or supply incorporated directly into an end product. ii. "Cost of components" means - (1) For components purchased by the Contractor, the acquisition cost, including transportation costs to the place of incorporation into the end product (whether or not such costs are paid to a domestic firm), and any applicable duty (whether or not a duty-free entry certificate is issued); or (2) For components manufactured by the Contractor, all costs associated with the manufacture of the component, including transportation costs as described in paragraph (1) of this definition, plus allocable overhead costs, but excluding profit. Cost of components does not include any costs associated with the manufacture of the end product. iii. "Domestic end product" means- (1) An unmanufactured end product mined or produced in the United States; or (2) An end product manufactured in the United States, if the cost of its components mined, produced, or manufactured in the United States exceeds 50 percent of the cost of all its components. Components of foreign origin of the same class or kind as those that the agency determines are not mined, produced, or manufactured in sufficient and reasonably available commercial quantities of a satisfactory quality are treated as domestic. Scrap generated, collected, and prepared for processing in the United States is considered domestic. iv. "End product" means those articles, materials, and supplies to be acquired under the contract for public use. v. "Foreign end product" means an end product other than a domestic end product. vi. "United States" means the 50 States, the District of Columbia, and outlying areas. B. The Buy American Act (41 U.S.C. 10a - 10d) provides a preference for domestic end products for supplies acquired for use in the United States. C. The City does not maintain a list of foreign articles that will be treated as domestic for this Contract; but will consider for approval foreign articles as domestic for this product if the articles are on a list approved by another Governmental Agency. The Offeror shall submit documentation with their Offer demonstrating that the article is on an approved Governmental list. D. The Contractor shall deliver only domestic end products except to the extent that it specified delivery of foreign end products in the provision of the Solicitation entitled "Buy American Act Certificate". 57. RIGHT TO INFORMATION: The City of Denton reserves the right to use any and all information presented in any response to this contract, whether amended or not, except as prohibited by law. Selection of rejection of the submittal does not affect this right. 58. LICENSE FEES OR TAXES: Provided the solicitation requires an awarded contractor or supplier to be licensed by the State of Texas, any and all fees and taxes are the responsibility of the respondent. 59. PREVAILING WAGE RATES: The contractor shall comply with prevailing wage rates as defined by the United States Department of Labor Davis-Bacon Wage Determination at http://www.dol.gov/whd/contracts/dbra.htm and at the Wage Determinations website www.wdol.gov for Denton County, Texas (WD-2509). 60. COMPLIANCE WITH ALL STATE, FEDERAL, AND LOCAL LAWS: The contractor or supplier shall comply with all State, Federal, and Local laws and requirements. The Respondent must comply with all applicable laws at all times, including, without limitation, the following: (i) §36.02 of the Texas Penal Code, which prohibits bribery; (ii) §36.09 of the Texas Penal Code, which prohibits the offering or conferring of benefits to public servants. The Respondent shall give all notices and comply with all laws and regulations applicable to furnishing and performance of the Contract. DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 280 File #7685 61. FEDERAL, STATE, AND LOCAL REQUIREMENTS: Respondent shall demonstrate on-site compliance with the Federal Tax Reform Act of 1986, Section 1706, amending Section 530 of the Revenue Act of 1978, dealing with issuance of Form W-2's to common law employees. Respondent is responsible for both federal and State unemployment insurance coverage and standard Workers’ Compensation insurance coverage. Respondent shall ensure compliance with all federal and State tax laws and withholding requirements. The City of Denton shall not be liable to Respondent or its employees for any Unemployment or Workers' Compensation coverage, or federal or State withholding requirements. Contractor shall indemnify the City of Denton and shall pay all costs, penalties, or losses resulting from Respondent's omission or breach of this Section. 62. DRUG FREE WORKPLACE: The contractor shall comply with the applicable provisions of the Drug-Free Work Place Act of 1988 (Public Law 100-690, Title V, Subtitle D; 41 U.S.C. 701 ET SEQ.) and maintain a drug-free work environment; and the final rule, government-wide requirements for drug-free work place (grants), issued by the Office of Management and Budget and the Department of Defense (32 CFR Part 280, Subpart F) to implement the provisions of the Drug-Free Work Place Act of 1988 is incorporated by reference and the contractor shall comply with the relevant provisions thereof, including any amendments to the final rule that may hereafter be issued. 63. RESPONDENT LIABILITY FOR DAMAGE TO GOVERNMENT PROPERTY: The Respondent shall be liable for all damages to government-owned, leased, or occupied property and equipment caused by the Respondent and its employees, agents, subcontractors, and suppliers, including any delivery or cartage company, in connection with any performance pursuant to the Contract. The Respondent shall notify the City of Denton Procurement Manager in writing of any such damage within one (1) calendar day. 64. FORCE MAJEURE: The City of Denton, any Customer, and the Respondent shall not be responsible for performance under the Contract should it be prevented from performance by an act of war, order of legal authority, act of God, or other unavoidable cause not attributable to the fault or negligence of the City of Denton. In the event of an occurrence under this Section, the Respondent will be excused from any further performance or observance of the requirements so affected for as long as such circumstances prevail and the Respondent continues to use commercially reasonable efforts to recommence performance or observance whenever and to whatever extent possible without delay. The Respondent shall immediately notify the City of Denton Procurement Manager by telephone (to be confirmed in writing within five (5) calendar days of the inception of such occurrence) and describe at a reasonable level of detail the circumstances causing the non-performance or delay in performance. 65. NON-WAIVER OF RIGHTS: Failure of a Party to require performance by another Party under the Contract will not affect the right of such Party to require performance in the future. No delay, failure, or waiver of either Party’s exercise or partial exercise of any right or remedy under the Contract shall operate to limit, impair, preclude, cancel, waive or otherwise affect such right or remedy. A waiver by a Party of any breach of any term of the Contract will not be construed as a waiver of any continuing or succeeding breach. 66. NO WAIVER OF SOVEREIGN IMMUNITY: The Parties expressly agree that no provision of the Contract is in any way intended to constitute a waiver by the City of Denton of any immunities from suit or from liability that the City of Denton may have by operation of law. 67. RECORDS RETENTION: The Respondent shall retain all financial records, supporting documents, statistical records, and any other records or books relating to the performances called for in the Contract. The Respondent shall retain all such records for a period of four (4) years after the expiration of the Contract, or until the CPA or State Auditor's Office is satisfied that all audit and litigation matters are resolved, whichever period is longer. The Respondent shall grant access to all books, records and DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 281 File #7685 documents pertinent to the Contract to the CPA, the State Auditor of Texas, and any federal governmental entity that has authority to review records due to federal funds being spent under the Contract. Should a conflict arise between any of the contract documents, it shall be resolved with the following order of precedence (if applicable). In any event, the final negotiated contract shall take precedence over any and all contract documents to the extent of such conflict. 1. Final negotiated contract 2. City’s standard terms and conditions 3. Purchase order 4. Supplier terms and conditions DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 282 File #7685 Exhibit E Certificate of Interested Parties Electronic Filing In 2015, the Texas Legislature adopted House Bill 1295, which added section 2252.908 of the Government Code. The law states that the City may not enter into this contract unless the Contractor submits a disclosure of interested parties (Form 1295) to the City at the time the Contractor submits the signed contract. The Texas Ethics Commission has adopted rules requiring the business entity to file Form 1295 electronically with the Commission. Contractor will be required to furnish a Certificate of Interest Parties before the contract is awarded, in accordance with Government Code 2252.908. The contractor shall: 1. Log onto the State Ethics Commission Website at : https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm 2. Register utilizing the tutorial provided by the State 3. Print a copy of the completed Form 1295 4. Enter the Certificate Number on page 2 of this contract. 5. Complete and sign the Form 1295 6. Email the form to purchasing@cityofdenton.com with the contract number in the subject line. (EX: Contract 1234 – Form 1295) The City must acknowledge the receipt of the filed Form 1295 not later than the 30th day after Council award. Once a Form 1295 is acknowledged, it will be posted to the Texas Ethics Commission’s website within seven business days. DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 283 File #7685 Exhibit F INSURANCE REQUIREMENTS AND WORKERS’ COMPENSATION REQUIREMENTS Upon contract execution, all insurance requirements shall become contractual obligations, which the successful contractor shall have a duty to maintain throughout the course of this contract. STANDARD PROVISIONS: Without limiting any of the other obligations or liabilities of the Contractor, the Contractor shall provide and maintain until the contracted work has been completed and accepted by the City of Denton, Owner, the minimum insurance coverage as indicated hereinafter. Contractor shall file with the Purchasing Department satisfactory certificates of insurance including any applicable addendum or endorsements, containing the contract number and title of the project. Contractor may, upon written request to the Purchasing Department, ask for clarification of any insurance requirements at any time; however, Contractor shall not commence any work or deliver any material until he or she receives notification that the contract has been accepted, approved, and signed by the City of Denton. All insurance policies proposed or obtained in satisfaction of these requirements shall comply with the following general specifications, and shall be maintained in compliance with these general specifications throughout the duration of the Contract, or longer, if so noted: • Each policy shall be issued by a company authorized to do business in the State of Texas with an A.M. Best Company rating of at least A or better. • Any deductibles or self-insured retentions shall be declared in the proposal. If requested by the City, the insurer shall reduce or eliminate such deductibles or self-insured retentions with respect to the City, its officials, agents, employees and volunteers; or, the contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. • Liability policies shall be endorsed to provide the following: ▪ Name as Additional Insured the City of Denton, its Officials, Agents, Employees and volunteers. ▪ That such insurance is primary to any other insurance available to the Additional Insured with respect to claims covered under the policy and that this insurance applies separately to each insured against whom claim is made or suit is brought. The inclusion of more than one insured shall not operate to increase the insurer's limit of liability. ▪ Provide a Waiver of Subrogation in favor of the City of Denton, its officials, agents, employees, and volunteers. • Cancellation: City requires 30 day written notice should any of the policies described on the certificate be cancelled or materially changed before the expiration date. • Should any of the required insurance be provided under a claims made form, Contractor shall maintain such coverage continuously throughout the term of this contract and, without lapse, for a period of three years beyond the contract expiration, such that occurrences arising during the DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 284 File #7685 contract term which give rise to claims made after expiration of the contract shall be covered. • Should any of the required insurance be provided under a form of coverage that includes a general annual aggregate limit providing for claims investigation or legal defense costs to be included in the general annual aggregate limit, the Contractor shall either double the occurrence limits or obtain Owners and Contractors Protective Liability Insurance. • Should any required insurance lapse during the contract term, requests for payments originating after such lapse shall not be processed until the City receives satisfactory evidence of reinstated coverage as required by this contract, effective as of the lapse date. If insurance is not reinstated, City may, at its sole option, terminate this agreement effective on the date of the lapse. SPECIFIC ADDITIONAL INSURANCE REQUIREMENTS: All insurance policies proposed or obtained in satisfaction of this Contract shall additionally comply with the following marked specifications, and shall be maintained in compliance with these additional specifications throughout the duration of the Contract, or longer, if so noted: [X] A. General Liability Insurance: General Liability insurance with combined single limits of not less than $1,000,000.00 shall be provided and maintained by the Contractor. The policy shall be written on an occurrence basis either in a single policy or in a combination of underlying and umbrella or excess policies. If the Commercial General Liability form (ISO Form CG 0001 current edition) is used: • Coverage A shall include premises, operations, products, and completed operations, independent contractors, contractual liability covering this contract and broad form property damage coverage. • Coverage B shall include personal injury. • Coverage C, medical payments, is not required. If the Comprehensive General Liability form (ISO Form GL 0002 Current Edition and ISO Form GL 0404) is used, it shall include at least: • Bodily injury and Property Damage Liability for premises, operations, products and completed operations, independent contractors and property damage resulting from explosion, collapse or underground (XCU) exposures. • Broad form contractual liability (preferably by endorsement) covering this contract, personal injury liability and broad form property damage liability. [X] Automobile Liability Insurance: Contractor shall provide Commercial Automobile Liability insurance with Combined Single Limits (CSL) of not less than $500,000 either in a single policy or in a combination of basic and umbrella or excess policies. The policy will include bodily injury and property damage liability arising out of the operation, maintenance and use of all automobiles and mobile equipment used in conjunction DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 285 File #7685 with this contract. Satisfaction of the above requirement shall be in the form of a policy endorsement for: • any auto, or • all owned hired and non-owned autos. [X] Workers’ Compensation Insurance Contractor shall purchase and maintain Workers’ Compensation insurance which, in addition to meeting the minimum statutory requirements for issuance of such insurance, has Employer's Liability limits of at least $100,000 for each accident, $100,000 per each employee, and a $500,000 policy limit for occupational disease. The City need not be named as an "Additional Insured" but the insurer shall agree to waive all rights of subrogation against the City, its officials, agents, employees and volunteers for any work performed for the City by the Named Insured. For building or construction projects, the Contractor shall comply with the provisions of Attachment 1 in accordance with §406.096 of the Texas Labor Code and rule 28TAC 110.110 of the Texas Workers’ Compensation Commission (TWCC). [ ] Owner's and Contractor's Protective Liability Insurance The Contractor shall obtain, pay for and maintain at all times during the prosecution of the work under this contract, an Owner's and Contractor's Protective Liability insurance policy naming the City as insured for property damage and bodily injury which may arise in the prosecution of the work or Contractor's operations under this contract. Coverage shall be on an “occurrence" basis and the policy shall be issued by the same insurance company that carries the Contractor's liability insurance. Policy limits will be at least $500,000.00 combined bodily injury and property damage per occurrence with a $1,000,000.00 aggregate. [ ] Fire Damage Legal Liability Insurance Coverage is required if Broad form General Liability is not provided or is unavailable to the contractor or if a contractor leases or rents a portion of a City building. Limits of not less than each occurrence are required. [ ] Professional Liability Insurance Professional liability insurance with limits not less than $1,000,000.00 per claim with respect to negligent acts, errors or omissions in connection with professional services is required under this Agreement. [ ] Builders' Risk Insurance Builders' Risk Insurance, on an All-Risk form for 100% of the completed value shall be provided. Such policy shall include as "Named Insured" the City of Denton and all subcontractors as their interests may appear. [ ] Environmental Liability Insurance Environmental liability insurance for $1,000,000 to cover all hazards contemplated by this contract. DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 286 File #7685 [ ] Riggers Insurance The Contractor shall provide coverage for Rigger’s Liability. Said coverage may be provided by a Rigger’s Liability endorsement on the existing CGL coverage; through and Installation Floater covering rigging contractors; or through ISO form IH 00 91 12 11, Rigger’s Liability Coverage form. Said coverage shall mirror the limits provided by the CGL coverage [ ] Commercial Crime Provides coverage for the theft or disappearance of cash or checks, robbery inside/outside the premises, burglary of the premises, and employee fidelity. The employee fidelity portion of this coverage should be written on a “blanket” basis to cover all employees, including new hires. This type insurance should be required if the contractor has access to City funds. Limits of not less than $ each occurrence are required. [ ] Additional Insurance Other insurance may be required on an individual basis for extra hazardous contracts and specific service agreements. If such additional insurance is required for a specific contract, that requirement will be described in the "Specific Conditions" of the contract specifications. DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 287 File #7685 ATTACHMENT 1 [ ] Workers’ Compensation Coverage for Building or Construction Projects for Governmental Entities A. Definitions: Certificate of coverage ("certificate")-A copy of a certificate of insurance, a certificate of authority to self-insure issued by the commission, or a coverage agreement (TWCC-81, TWCC-82, TWCC-83, or TWCC-84), showing statutory workers' compensation insurance coverage for the person's or entity's employees providing services on a project, for the duration of the project. Duration of the project - includes the time from the beginning of the work on the project until the contractor's/person's work on the project has been completed and accepted by the governmental entity. Persons providing services on the project ("subcontractor" in §406.096) - includes all persons or entities performing all or part of the services the contractor has undertaken to perform on the project, regardless of whether that person contracted directly with the contractor and regardless of whether that person has employees. This includes, without limitation, independent contractors, subcontractors, leasing companies, motor carriers, owner-operators, employees of any such entity, or employees of any entity which furnishes persons to provide services on the project. "Services" include, without limitation, providing, hauling, or delivering equipment or materials, or providing labor, transportation, or other service related to a project. "Services" does not include activities unrelated to the project, such as food/beverage vendors, office supply deliveries, and delivery of portable toilets. B. The contractor shall provide coverage, based on proper reporting of classification codes and payroll amounts and filing of any overage agreements, which meets the statutory requirements of Texas Labor Code, Section 401.011(44) for all employees of the Contractor providing services on the project, for the duration of the project. C. The Contractor must provide a certificate of coverage to the governmental entity prior to being awarded the contract. D. If the coverage period shown on the contractor's current certificate of coverage ends during the duration of the project, the contractor must, prior to the end of the coverage period, file a new certificate of coverage with the governmental entity showing that coverage has been extended. E. The contractor shall obtain from each person providing services on a project, and provide to the governmental entity: 1. a certificate of coverage, prior to that person beginning work on the project, so the governmental entity will have on file certificates of coverage showing coverage for all persons providing services on the project; and 2. no later than seven days after receipt by the contractor, a new certificate of coverage showing extension of coverage, if the coverage period shown on the current certificate of coverage ends during the duration of the project. DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 288 File #7685 F. The contractor shall retain all required certificates of coverage for the duration of the project and for one year thereafter. G. The contractor shall notify the governmental entity in writing by certified mail or personal delivery, within 10 days after the contractor knew or should have known, of any change that materially affects the provision of coverage of any person providing services on the project. H. The contractor shall post on each project site a notice, in the text, form and manner prescribed by the Texas Workers' Compensation Commission, informing all persons providing services on the project that they are required to be covered, and stating how a person may verify coverage and report lack of coverage. I. The contractor shall contractually require each person with whom it contracts to provide services on a project, to: 1. provide coverage, based on proper reporting of classification codes and payroll amounts and filing of any coverage agreements, which meets the statutory requirements of Texas Labor Code, Section 401.011(44) for all of its employees providing services on the project, for the duration of the project; 2. provide to the contractor, prior to that person beginning work on the project, a certificate of coverage showing that coverage is being provided for all employees of the person providing services on the project, for the duration of the project; 3. provide the contractor, prior to the end of the coverage period, a new certificate of coverage showing extension of coverage, if the coverage period shown on the current certificate of coverage ends during the duration of the project; 4. obtain from each other person with whom it contracts, and provide to the contractor: a. a certificate of coverage, prior to the other person beginning work on the project; and b. a new certificate of coverage showing extension of coverage, prior to the end of the coverage period, if the coverage period shown on the current certificate of coverage ends during the duration of the project; 5. retain all required certificates of coverage on file for the duration of the project and for one year thereafter; 6. notify the governmental entity in writing by certified mail or personal delivery, within 10 days after the person knew or should have known, of any change that materially affects the provision of coverage of any person providing services on the project; and 7. Contractually require each person with whom it contracts, to perform as required by paragraphs (1) - (7), with the certificates of coverage to be provided to the person for whom they are providing services. J. By signing this contract or providing or causing to be provided a certificate of coverage, the contractor is representing to the governmental entity that all employees of the contractor who will provide services on the project will be covered by workers' compensation coverage for the duration of the project, that the coverage will be based on proper reporting of classification codes and payroll amounts, and that all coverage agreements will be filed with the appropriate DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 289 File #7685 insurance carrier or, in the case of a self-insured, with the commission's Division of Self- Insurance Regulation. Providing false or misleading information may subject the contractor to administrative penalties, criminal penalties, civil penalties, or other civil actions. K. The contractor’s failure to comply with any of these provisions is a breach of contract by the contractor which entitles the governmental entity to declare the contract void if the contractor does not remedy the breach within ten days after receipt of notice of breach from the governmental entity. DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 290 Exhibit CONFLICT OF INTEREST QUESTIONNAIRE - FORM CIQ For vendor or other person doing business with local governmental entity This questionnaire reflects changes made to the law by H.B. 23, 84th Leg., Regular Session. This questionnaire is being filed in accordance with Chapter 176, Local Government Code, by a vendor who has a business relationship as defined by Section 176.001(1-a) with a local governmental entity and the vendor meets requirements under Section 176.006(a). By law this questionnaire must be filed with the records administrator of the local government entity not later than the 7th business day after the date the vendor becomes aware of facts that require the statement to be filed. See Section 176.006(a-1), Local Government Code. A vendor commits an offense if the vendor knowingly violates Section 176.006, Local Government Code. An offense under this section is a misdemeanor. 1 Name of vendor who has a business relationship with local governmental entity. 2 Check this box if you are filing an update to a previously filed questionnaire. (The law requires that you file an updated completed questionnaire with the appropriate filing authority not later than the 7th business day after the date on which you became aware that the originally filed questionnaire was incomplete or inaccurate.) 3 Name of local government officer about whom the information in this section is being disclosed. Name of Officer This section, (item 3 including subparts A, B, C & D), must be completed for each officer with whom the vendor has an employment or other business relationship as defined by Section 176.001(1-a), Local Government Code. Attach additional pages to this Form CIQ as necessary. A. Is the local government officer named in this section receiving or likely to receive taxable income, other than investment income, from the vendor? Yes No B. Is the vendor receiving or likely to receive taxable income, other than investment income, from or at the direction of the local government officer named in this section AND the taxable income is not received from the local governmental entity? Yes No C. Is the filer of this questionnaire employed by a corporation or other business entity with respect to which the local government officer serves as an officer or director, or holds an ownership of one percent or more? Yes No D. Describe each employment or business and family relationship with the local government officer named in this section. 4 I have no Conflict of Interest to disclose. 5 Signature of vendor doing business with the governmental entity Date DocuSign Envelope ID: 1BA2F48E-0840-45F1-A156-C35E777E5FC6 G Russ Bassett Corporation 5/7/2021 291 Certificate Of Completion Envelope Id: 1BA2F48E084045F1A156C35E777E5FC6 Status: Sent Subject: Please DocuSign: City Council Contract 7685 - PSAP Consoles (HGAC Co-op) Source Envelope: Document Pages: 39 Signatures: 4 Envelope Originator: Certificate Pages: 6 Initials: 1 Cori Power AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-06:00) Central Time (US & Canada) 901B Texas Street Denton, TX 76209 cori.power@cityofdenton.com IP Address: 198.49.140.104 Record Tracking Status: Original 5/5/2021 4:02:47 PM Holder: Cori Power cori.power@cityofdenton.com Location: DocuSign Signer Events Signature Timestamp Cori Power cori.power@cityofdenton.com Senior Buyer City of Denton Security Level: Email, Account Authentication (None) Completed Using IP Address: 198.49.140.104 Sent: 5/5/2021 4:05:45 PM Viewed: 5/5/2021 4:06:09 PM Signed: 5/5/2021 4:07:48 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Lori Hewell lori.hewell@cityofdenton.com Purchasing Manager City of Denton Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 198.49.140.10 Sent: 5/5/2021 4:07:50 PM Viewed: 5/5/2021 4:18:41 PM Signed: 5/5/2021 4:19:54 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Marcella Lunn marcella.lunn@cityofdenton.com Deputy City Attorney City of Denton Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 198.49.140.104 Sent: 5/5/2021 4:19:57 PM Viewed: 5/6/2021 12:51:16 PM Signed: 5/6/2021 12:52:31 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Peter Fink pfink@russbassett.com Executive Vice President Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 68.228.71.42 Sent: 5/6/2021 12:52:33 PM Viewed: 5/7/2021 12:05:44 AM Signed: 5/7/2021 1:43:57 PM Electronic Record and Signature Disclosure: Accepted: 5/7/2021 12:05:44 AM ID: f78610c2-a098-4788-81cb-d5c6afbaae56 292 Signer Events Signature Timestamp Leisha Meine Leisha.Meine@cityofdenton.com Chief Technology Officer City of Denton Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 76.185.7.136 Sent: 5/7/2021 1:44:00 PM Viewed: 5/7/2021 1:44:53 PM Signed: 5/7/2021 1:47:47 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Cheyenne Defee cheyenne.defee@cityofdenton.com Contract Administrator City of Denton Security Level: Email, Account Authentication (None) Sent: 5/7/2021 1:47:50 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Sara Hensley sara.hensley@cityofdenton.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Rosa Rios rosa.rios@cityofdenton.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Accepted: 5/7/2021 8:59:04 AM ID: bf1f8f32-ff5a-448f-8860-82ed1880c35e In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Cheyenne Defee cheyenne.defee@cityofdenton.com Contract Administrator City of Denton Security Level: Email, Account Authentication (None) Sent: 5/5/2021 4:07:50 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Gretna Jones gretna.jones@cityofdenton.com Legal Secretary City of Denton Security Level: Email, Account Authentication (None) Sent: 5/7/2021 1:47:50 PM Viewed: 5/10/2021 9:16:01 AM 293 Carbon Copy Events Status Timestamp Electronic Record and Signature Disclosure: Not Offered via DocuSign City Secretary Office citysecretary@cityofdenton.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Suzanne Kaletta Suzanne.Kaletta@cityofdenton.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 5/5/2021 4:05:45 PM Payment Events Status Timestamps Electronic Record and Signature Disclosure 294 ELECTRONIC RECORD AND SIGNATURE DISCLOSURE From time to time, City of Denton (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through your DocuSign, Inc. (DocuSign) Express user account. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to these terms and conditions, please confirm your agreement by clicking the 'I agree' button at the bottom of this document. Getting paper copies At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. For such copies, as long as you are an authorized user of the DocuSign system you will have the ability to download and print any documents we send to you through your DocuSign user account for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below. Withdrawing your consent If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below. Consequences of changing your mind If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. To indicate to us that you are changing your mind, you must withdraw your consent using the DocuSign 'Withdraw Consent' form on the signing page of your DocuSign account. This will indicate to us that you have withdrawn your consent to receive required notices and disclosures electronically from us and you will no longer be able to use your DocuSign Express user account to receive required notices and consents electronically from us or to sign electronically documents from us. All notices and disclosures will be sent to you electronically Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through your DocuSign user account all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us. Electronic Record and Signature Disclosure created on: 7/21/2017 3:59:03 PM Parties agreed to: Peter Fink, Rosa Rios 295 How to contact City of Denton: You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows: To contact us by email send messages to: purchasing@cityofdenton.com To advise City of Denton of your new e-mail address To let us know of a change in your e-mail address where we should send notices and disclosures electronically to you, you must send an email message to us at melissa.kraft@cityofdenton.com and in the body of such request you must state: your previous e-mail address, your new e-mail address. We do not require any other information from you to change your email address.. In addition, you must notify DocuSign, Inc to arrange for your new email address to be reflected in your DocuSign account by following the process for changing e-mail in DocuSign. To request paper copies from City of Denton To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, you must send us an e-mail to purchasing@cityofdenton.com and in the body of such request you must state your e-mail address, full name, US Postal address, and telephone number. We will bill you for any fees at that time, if any. To withdraw your consent with City of Denton To inform us that you no longer want to receive future notices and disclosures in electronic format you may: i. decline to sign a document from within your DocuSign account, and on the subsequent page, select the check-box indicating you wish to withdraw your consent, or you may; ii. send us an e-mail to purchasing@cityofdenton.com and in the body of such request you must state your e-mail, full name, IS Postal Address, telephone number, and account number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process.. Required hardware and software Operating Systems: Windows2000? or WindowsXP? Browsers (for SENDERS): Internet Explorer 6.0? or above Browsers (for SIGNERS): Internet Explorer 6.0?, Mozilla FireFox 1.0, NetScape 7.2 (or above) Email: Access to a valid email account Screen Resolution: 800 x 600 minimum Enabled Security Settings: •Allow per session cookies •Users accessing the internet behind a Proxy Server must enable HTTP 1.1 settings via proxy connection ** These minimum requirements are subject to change. If these requirements change, we will provide you with an email message at the email address we have on file for you at that time providing you with the revised hardware and software requirements, at which time you will have the right to withdraw your consent. 296 Acknowledging your access and consent to receive materials electronically To confirm to us that you can access this information electronically, which will be similar to other electronic notices and disclosures that we will provide to you, please verify that you were able to read this electronic disclosure and that you also were able to print on paper or electronically save this page for your future reference and access or that you were able to e-mail this disclosure and consent to an address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving notices and disclosures exclusively in electronic format on the terms and conditions described above, please let us know by clicking the 'I agree' button below. By checking the 'I Agree' box, I confirm that: • I can access and read this Electronic CONSENT TO ELECTRONIC RECEIPT OF ELECTRONIC RECORD AND SIGNATURE DISCLOSURES document; and • I can print on paper the disclosure or save or send the disclosure to a place where I can print it, for future reference and access; and • Until or unless I notify City of Denton as described above, I consent to receive from exclusively through electronic means all notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to me by City of Denton during the course of my relationship with you. 297 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 21-765,Version:1 AGENDA CAPTION Consider adoption of an ordinance of the City Council of the City of Denton repealing Ordinance No.20-420; approving the 2021 Denton Municipal Electric -Energy Risk Management Policy;delegating authority as provided in the 2021 ERMP;authorizing and approving the subsequent execution of such other ancillary and related documents,including,without limitation,contracts,nominations,certificates,assignments,licenses, directions,instruments,confirmations,orders,and statements as are authorized by the 2021 ERMP,which are incident to or related thereto;confirming that the City of Denton,its Mayor,its City Council members,its City Manager,or designees,its City Attorney,or designees,and its City Secretary,or designees,are authorized to perform such acts and obligations as are reasonably required to consummate those future transactions which are provided for and authorized by the 2021 ERMP;finding that the purchase of electricity,natural gas,and related commodities and instruments are exempt from the requirements of competitive bidding;finding that the purchase of electric energy,natural gas and related commodities and instruments made by the city under the terms of the 2021 ERMP are in the public welfare of the citizens and electric ratepayers of the city;authorizing the expenditure of funds therefor; and, providing an effective date. City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™298 City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Denton Municipal Electric GM: Antonio Puente, Jr. DATE: March 25, 2021 SUBJECT Consider adoption of an Ordinance of the City Council of the City of Denton repealing Ordinance NO. 20- 420; approving the 2021 Denton Municipal Electric – Energy Risk Management Policy; delegating authority as provided in the 2021 ERMP; authorizing and approving the subsequent execution of such other ancillary and related documents, including, without limitation, contracts, nominations, certificates, assignments, licenses, directions, instruments, confirmations, orders, and statements as are authorized by the 2021 ERMP, which are incident to or related thereto; confirming that the City of Denton, its Mayor, its City Council members, its City Manager, or designees, its City Attorney, or designees, and its City Secretary, or designees, are authorized to perform such acts and obligations as are reasonably required to consummate those future transactions which are provided for and authorized by the 2021 ERMP; finding that the purchase of electricity, natural gas, and related commodities and instruments are exempt from the requirements of competitive bidding; finding that the purchase of electric energy, natural gas and related commodities and instruments made by the city under the terms of the 2021 ERMP are in the public welfare of the citizens and electric ratepayers of the city; authorizing the expenditure of funds therefor; and, providing an effective date. INFORMATION/BACKGROUND The current DME Energy Risk Management Policy (“Policy”), approved by the City Council on March 17, 2020 by City Ordinance 20-420, provided an updated framework under which DME’s Energy Management Organization (EMO) manages DME’s energy portfolio on a day to day basis, including control structures and protocols that provide for 1) segregation of duties and delegation of authority, 2) governance and oversight processes, 3) rigorous management reporting and 4) strict adherence to authorized hedging products and transaction limits. The 2020 Policy calls for a review by the DME Risk Committee and presenting any recommended changes (if any) through the city processes for eventual approval and adoption by ordinance, of the City Council on an annual basis. In the forthcoming proposed update, DME and the Risk Committee recommend the Policy updates as described below: Transaction Limits- Updated for Power, Gas and Renewable Energy Credits (“RECs”), This change in the Risk Policy will accord the contemporaneous changes to the Hedge Plan. Denton Energy Center Operating Insurance- Deleted this class of approved transactions for DME to purchase. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 299 Minor clarifications, refinements, and updates- Adds timelines for reporting notifications of when certain portfolio risk exposure thresholds are exceeded (Appendix B.3) EXHIBITS 1. Exhibit 1- Agenda Information Sheet 2. Exhibit 2- Risk Policy Presentation 3. Exhibit 3- Ordinance Respectfully submitted: Antonio Puente. Jr. DME General Manager Prepared by: Philip DiPastena, Senior Risk Control Analyst 300 5/19/2021 1 Denton Municipal Electric ID 21-765 May 25, 2021 Energy Risk Management Policy – 2021 Update 2021 version of the Risk policy was introduced and explained in a Work Session report on May 11, 2021. Annual updates to the Policy are routine and done with the goal of improvement and reaction to changing market conditions. The purpose of the Policy is to provide a governance structure that creates roles and responsibilities within the organization along with a plan to manage risks. 2 Approval Recommendation ID 21-765 1 2 301 5/19/2021 2 2021 Policy Changes Largely Driven by the need to be consistent with the recommended Hedge Plan changes to address new market realities exposed by winter storm Uri. Organizational/execution responsibility changes Increased term of hedge transaction to address market liquidity limitations Conforming changes to the hedge plan (confidential due to market sensitivity) Removal of outage insurance from EMO authorized products per recommendation of City Risk and Legal. Procurement Department responsibility 3 Smith Day May 25, 2021 4 Questions 3 4 302 1 ORDINANCE NO. _ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON REPEALING ORDINANCE NO. 20-420; APPROVING THE 2021 DENTON MUNICIPAL ELECTRIC- ENERGY RISK MANAGEMENT POLICY; DELEGATING AUTHORITY AS PROVIDED IN THE 2021 ERMP; AUTHORIZING AND APPROVING THE SUBSEQUENT EXECUTION OF SUCH OTHER ANCILLARY AND RELATED DOCUMENTS, INCLUDING, WITHOUT LIMITATION, CONTRACTS, NOMINATIONS, CERTIFICATES, ASSIGNMENTS, LICENSES, DIRECTIONS, INSTRUMENTS, CONFIRMATIONS, ORDERS, AND STATEMENTS AS ARE AUTHORIZED BY THE 2021 ERMP, WHICH ARE INCIDENT TO OR RELATED THERETO; CONFIRMING THAT THE CITY OF DENTON, ITS MAYOR, ITS CITY COUNCIL MEMBERS, ITS CITY MANAGER, OR DESIGNEES, ITS CITY ATTORNEY, OR DESIGNEES, AND ITS CITY SECRETARY, OR DESIGNEES, ARE AUTHORIZED TO PERFORM SUCH ACTS AND OBLIGATIONS AS ARE REASONABLY REQUIRED TO CONSUMMATE THOSE FUTURE TRANSACTIONS WHICH ARE PROVIDED FOR AND AUTHORIZED BY THE 2021 ERMP; FINDING THAT THE PURCHASE OF ELECTRICITY, NATURAL GAS, AND RELATED COMMODITIES AND INSTRUMENTS ARE EXEMPT FROM THE REQUIREMENTS OF COMPETITIVE BIDDING; FINDING THAT THE PURCHASE OF ELECTRIC ENERGY, NATURAL GAS, AND RELATED COMMODITIES AND INSTUMENTS MADE BY THE CITY UNDER THE TERMS OF THE 2021 ERMP ARE IN THE PUBLIC WELFARE OF THE CITIZENS AND ELECTRIC RATEPAYERS OF THE CITY; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND, PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton ("City"), a Texas home-rule municipal corporation governed by the constitution and laws of the State of Texas, operates a municipally-owned electric utility; and WHEREAS, on March 17, 2020, the City Council ("Council") passed Ordinance No. 2020- 420 which repealed the 2019 Denton Municipal Electric -Energy Risk Management Policy and approved the 2020 Denton Municipal Electric - Energy Risk Management Policy ("2020 ERMP"); and WHEREAS, the 2020 ERMP requires that it be reviewed, amended if necessary, and approved annually by the Council; and WHEREAS, the Council has determined and finds that (i) the 2021 ERMP provides for the purchase of electricity, natural gas, related commodities and instruments in the future in strict accordance with the provisions of the 2021 ERMP; (ii) any and all contracts and other documents that are required to be entered into by and between the buyers or sellers of electric energy, natural gas, and related commodities and instruments and the City are, (a) provided that these transactions are within the described and delineated limits and guidelines which are set forth in the 2021 ERMP, authorized, and (b) excepted from public disclosure, as permitted by the provisions of Section 552.133, Texas Government Code, as documents that are reasonably related to the competitive public power matter, the disclosure of which documents would provide an advantage to the competitors or prospective competitors of Denton Municipal Electric; and, (iii) all such documents which are incident to or related with the above-described documents, as from time to time may be required by the City and/or the seller, are (a) authorized, and (b) should be excepted from 303 2 public disclosure, as permitted by the provisions of Section 552.133, Texas Government Code, as documents that are reasonably related to a competitive public power matter, the disclosure of which documents would provide an advantage to the competitors or prospective competitors of Denton Municipal Electric; and WHEREAS, the Council has determined and finds that the 2021 ERMP will not impair the ability of the City to comply with the provisions of any of its utility revenue bonds, as amended, which are now issued and outstanding; and WHEREAS, the Council has determined and finds that both (i) Sections 252.022(a)(15) and 252.022(c), Texas Local Government Code, are applicable to the 2021 ERMP and those subsequent transactions authorized by said 2021 ERMP involving the purchase of electricity, natural gas, and related commodities, and (ii) the Texas statutory competitive bidding law are not applicable to such purchases by the City; and WHEREAS, the Council has further determined and finds that these actions and the 2021 ERMP are in the best interest of its citizens and ratepayers; NOW THERFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The finding and recitations contained in the preamble of this Ordinance are incorporated herein by reference and are made a part of this Ordinance. SECTION 2. Ordinance No. 20-240, and the 2020 Denton Municipal Electric-Energy Risk Management Policy (commonly referred to as the 2020 ERMP) approved by the same, are both repealed and are of no further force and effect, except that all transactions made under the 2020 ERMP remain protected from disclosure Section 552.133, Texas Government Code. SECTION 3. The 2021 Denton Municipal Electric - Energy Risk Management Policy ("2021 ERMP"), attached as Exhibit "A" and incorporated by reference, is approved and adopted. SECTION 4. The City Manager, or his designee, and the City Secretary, or her designee, are authorized to execute, attest and deliver respectively, all contracts which are authorized by the 2021 ERMP, and other such documents which are incident to, or related to, or which arise under the same ("Related Documents"), and to take such other additional actions as the City Manager, or his designee, shall determine to be necessary and appropriate to effectuate the matters set forth in this Ordinance and the 2021 ERMP. SECTION 5. All subsequent actions taken by the Mayor, or his designee; the City Manager, or his designee; the City Attorney, or her designee; or the City Secretary, or her designee, in furtherance of any future transactions that are authorized under the 2021 ERMP are approved and authorized in all respects as of the dates and times that such actions are taken. SECTION 6. Immediately following the adoption by the Council of the 2021 ERMP, any and all subsequent documents and supporting documents which are executed pursuant to the 2021 ERMP as amended are to be sealed by the City Secretary and maintained in her custody and control as documents which are excepted from public disclosure under the provisions of §552.133 of the Texas Government Code (the "Public Power Exception"); unless otherwise law fully ordered to disclose said documents. 304 3 SECTION 7. The expenditure of funds as provided for in this Ordinance is hereby authorized. SECTION 8. This Ordinance shall become effective immediately upon its passage and approval. The motion to approve this ordinance was made by __________________________ and seconded by _________________________________, the ordinance was passed and approved by the following vote [___ - ___]: Aye Nay Abstain Absent Gerard Hudspeth, Mayor: ______ ______ ______ ______ Vicki Byrd, District 1: ______ ______ ______ ______ Brian Beck, District 2: ______ ______ ______ ______ Jesse Davis, District 3: ______ ______ ______ ______ Alison Maguire, District 4: ______ ______ ______ ______ Deb Armintor, At Large Place 5: ______ ______ ______ ______ Paul Meltzer, At Large Place 6: ______ ______ ______ ______ PASSED AND APPROVED this the _________ day of ___________________, 2021. __________________________________ GERARD HUDSPETH, MAYOR 305 4 ATTEST: ROSA RIOS, CITY SECRETARY BY: __________________________________ APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY BY: __________________________________ Digitally signed by Catherine Clifton DN: dc=com, dc=cityofdenton, dc=codad, ou=Department Users and Groups, ou=General Government, ou=Legal, cn=Catherine Clifton, email=Catherine.Clifton@cityofdenton.com Date: 2021.05.19 18:15:27 -05'00' 306 Page 1 5/xx/21 Denton Municipal Electric Energy Risk Management Policy Approved by the City Council of the City of Denton, Texas City Ordinance No. 21-___ Exhibit 'A' 307 Energy Risk Management Policy Page 2 5/xx/21 Contents SECTION 1 PROGRAM OVERVIEW .................................................................. 5 1.1 Introduction ............................................................................................................. 5 1.2 Objectives ................................................................................................................. 5 1.3 Energy Risk Management Framework ...................................................................... 6 1.3.1 Organizational Objectives ............................................................................. 6 1.3.2 Risk Mitigation and Measurement ............................................................... 6 1.3.3 Portfolio Management ................................................................................. 7 1.3.4 Risk Control Infrastructure ........................................................................... 7 1.4 Procedures and Guidelines ....................................................................................... 7 SECTION 2 ORGANIZATION STRUCTURE ......................................................... 8 2.1 Risk Management Committee (“RMC”) .................................................................... 8 2.1.2 Risk Management Committee Structure ......................................................... 8 2.1.3 Meeting Frequency, Voting, Member Vacancies and Reports ......................... 9 2.1.4 Outside RMC Support; Outside Review of Standard Reports; DME Cooperation with Consultant; Quarterly Report from Consultant .......................... 10 2.2 Front, Middle, and Back Offices ............................................................................. 11 2.2.1 Front Office................................................................................................. 11 2.2.2 Middle Office .............................................................................................. 12 2.2.3 Back Office .................................................................................................. 14 SECTION 3 MARKET RISK PROTOCOLS AND EXPOSURE CONTROL ................ 15 3.1 Market Risk Protocols............................................................................................. 15 3.2 Authorized Transactions ......................................................................................... 16 3.3 Market Risk Control ................................................................................................ 16 3.3.1 Risk Tolerance ............................................................................................. 16 3.3.2 Transaction and Exposure Limits ................................................................ 16 3.3.3 Stress Testing .............................................................................................. 17 3.3.4 Model Validation and Controls ................................................................... 17 Exhibit 'A' 308 Energy Risk Management Policy Page 3 5/xx/21 3.4 Credit Risk Control .................................................................................................. 18 3.4.1 Credit Policies ............................................................................................. 18 3.4.2 Credit Limits................................................................................................ 19 3.4.3 Counterparty Credit Function ..................................................................... 19 3.5 Information Systems and Models ........................................................................... 20 SECTION 4 RISK REPORTING ......................................................................... 21 4.1 Risk Management Reporting Policy ........................................................................ 21 4.2 Risk Committee Meeting Updates .......................................................................... 21 4.3 Transaction Valuation ............................................................................................ 22 SECTION 5 OTHER RESPONSIBILITIES AND POLICIES ..................................... 23 5.1 Organization-Wide Responsibilities ........................................................................ 23 5.2 Commercial Interests and Trading for Personal Accounts ...................................... 23 5.3 Acknowledgment of Policy Requirements .............................................................. 24 5.4 Adoption of Energy Risk Management Policy ......................................................... 24 SECTION 6 CREDIT RISK POLICY .................................................................... 25 6.1 Introduction ........................................................................................................... 25 6.2 POLICY OVERVIEW .................................................................................................. 25 Appendix A PORTFOLIO RISKS ...................................................................... 26 A.1. MARKET RISK ............................................................................................................. 26 A.1.1. Price Risk ...................................................................................................... 26 A.1.2. Volume Risk .................................................................................................. 26 A.1.3. Liquidity Risk ................................................................................................ 27 A.2. CREDIT RISK ................................................................................................................ 27 A.2.1 Credit Risk ..................................................................................................... 27 A.2.2. Funding Risk ................................................................................................. 28 A.3. OPERATIONAL RISK .................................................................................................... 28 A.3.1. MODEL RISK ................................................................................................. 28 A.3.2. DENTON ENERGY CENTER OUTAGE RISK ...................................................... 28 A.4. REGULATORY RISK ...................................................................................................... 28 A.4.1 Carbon Cost ................................................................................................... 29 A.4.2 Changes to ERCOT market design ................................................................. 29 Exhibit 'A' 309 Energy Risk Management Policy Page 4 5/xx/21 A.4.3 Ongoing changes to ERCOT Protocols ........................................................... 29 A.4.4 Regulatory Compliance ................................................................................. 29 Appendix B RISK EXPOSURE AND TRANSACTION LIMITS .............................. 30 B.1 Risk Books ................................................................................................................... 30 B.2 Risk Exposure Limits .................................................................................................... 31 B.3 Portfolio Risk Exposure Limits ..................................................................................... 31 B.4 Open Position Management ....................................................................................... 32 B.5 Transaction Limits ....................................................................................................... 33 B.5.1 Bilateral or Financial Power Transaction Limits ........................................... 35 B.5.2 Congestion Management Transaction Limits ................................................ 36 B.5.3 Physical or Financial Natural Gas Transaction Limits ................................... 39 B.5.4 Renewable Energy Credit (“REC”) Transaction Limits .................................. 40 Appendix C ORGANIZATIONAL STRUCTURE .................................................. 41 Appendix D APPROVED TRANSACTION TYPES .............................................. 43 Appendix E FORWARD HEDGING STRATEGIES AND PLANS ........................... 46 Appendix F 2021- 2022 DME HEDGE PLAN ................................................... 48 Hedge Plan Overview ............................................................................................. 48 Appendix G NEW PRODUCT/MARKET INSTRUMENT APPROVAL CHECKLIST . 50 Appendix H ENERGY RISK MANAGEMENT POLICY ACKNOWLEDGEMENT FORM .................................................................................................................... 52 Exhibit 'A' 310 Energy Risk Management Policy Page 5 5/xx/21 SECTION 1 PROGRAM OVERVIEW 1.1 Introduction The City of Denton’s municipally owned electric utility, operated under the trade name of Denton Municipal Electric (“DME”), is in the business of providing affordable and reliable energy and energy services to its customers in an environmentally sustainable manner. This Energy Risk Management Policy (“Policy”) has been developed to establish a comprehensive framework for DME to meet and exceed the overall goals and objectives set by the City Council, subject to approved risk tolerances. This Policy provides specific controls (e.g., segregation of duties, oversight, etc.) for the management of strategic and operational risks and establishes guidelines for DME to plan, execute and control the risks inherent in the generation, purchase and sale of energy for its retail customers. The resulting framework shall govern DME’s energy portfolio activities through which City Management and DME personnel identify, capture, measure, manage, control, monitor and report financial and other risks. This program specifically addresses management of energy portfolio risk and provides a framework to maintain proper controls over portfolio activities as they change over time. 1.2 Objectives The objectives of this Risk Policy are as follows: 1. Identification of inherent risks associated with procurement of energy and ancillary services to serve the retail load of DME’s customer/owners. 2. Periodic and consistent measurement and reporting of risks 3. Establishment of acceptable risks levels 4. Identification of authorized risk management transactions, volumes, terms and authority levels for all employees, committees, and boards involved in execution of risk management transactions. 5. Establishing disciplinary actions for violation of risk management policy including trading limits DME’s energy portfolio consists of its assets such as power plants, power supply contracts of varying delivery patterns and maturity, wholesale physical and financial hedges1, congestion management trades, ancillary service requirements and retail load obligations. A number of inherent risks are associated with DME’s energy portfolio, including market (price) risk, volumetric risk, operational risk, organizational risk, counterparty credit risk, liquidity (funding) 1 As used in this Policy, physical and financial hedges are market transactions used to offset pre-financial existing risk in the portfolio, and are generally used to reduce price exposure associated with DME supply and demand, price volatility or transmission congestion. Exhibit 'A' 311 Energy Risk Management Policy Page 6 5/xx/21 risk, and regulatory/legal risks (for more detail, see Appendix A for a summary of DME’s portfolio risks). DME manages these risks to achieve its core business objectives of delivering energy to its customers at reasonable and stable rates. Key risk management objectives and performance measures are shown in the table below. Objective Performance Metric Reduce risk Reduction in exposure to price volatility and volumetric variability Competitive costs Comparison of actual energy costs (including hedges and ERCOT balancing transactions, but excluding PPAs) to the average annual ERCOT Day Ahead Market (DAM) price, plus a hedging premium Reasonable rates Comparison of DME average rate to that of other Texas municipal utilities Risk Policy Adherence Identification, reporting and disciplinary action of policy violations 1.3 Energy Risk Management Framework DME’s Energy Risk Management Policy is built around a framework that includes the following four elements: Organizational Objectives, Risk Mitigation, and Measurement, Portfolio Management and Risk Control Infrastructure. Each of these elements is discussed further below. 1.3.1 Organizational Objectives The Risk Management Committee (“RMC”) approves goals, strategies, and objectives which help define the appropriate portfolio management activities that are undertaken by DME. This is done in coordination with strategic and business planning activities conducted to establish the budget and through periodic strategic planning activities. 1.3.2 Risk Mitigation and Measurement As part of clarifying organizational objectives, this Policy defines the EMO’s role in identifying, measuring and mitigating energy risks. DME’s risk mitigation practices focus on implementation of the approved Hedge Plan for mid to long term risk mitigation and inside the month risk management activities to meet required targets, along with transaction and risk exposure limits. Exhibit 'A' 312 Energy Risk Management Policy Page 7 5/xx/21 1.3.3 Portfolio Management DME engages in transactions that are conducted in accordance with hedging targets and risk management and transaction limits specified in connection with this Policy and in broader DME policies and operating procedures. 1.3.4 Risk Control Infrastructure DME maintains a collection of internal controls, systems, and processes necessary to achieve the objectives of this Policy. These controls comprise DME’s energy risk control infrastructure and includes provisions for: x Energy Risk Management Organization Structure and Responsibilities x Transaction and Risk Exposure Targets and Limits x Portfolio Position Tracking x Risk Measurement and Mitigation x Performance Measurement x Management Reporting x Operating Procedures 1.4 Procedures and Guidelines This Policy prescribes the management, organization, authority, processes, tools and systems to monitor, measure, control and mitigate market risks through DME’s energy management activities. Upon adoption by the City Council, this Policy shall be implemented through a supporting set of standard operating procedures (“EMO Procedures Manual”). The operating criteria and parameters shall be updated as necessary to reflect changes in market conditions and staffing levels. All standard operating procedures shall be approved by the RMC. All departmental procedures that may impact DME’s energy portfolio shall be in full compliance with this Policy. DME executive management shall evaluate the degree of detail necessary in the operating procedures and may require that additional procedures be developed and implemented. Exhibit 'A' 313 Energy Risk Management Policy Page 8 5/xx/21 SECTION 2 ORGANIZATION STRUCTURE 2.1 Risk Management Committee (“RMC”) While the leadership of the Front, Middle and Back Office groups, along with the DME General Manager regularly review executed transactions, monitor proximity to transaction limits and oversee the implementation of DME’s portfolio management activity, consistent with industry best practices, the executive oversight of DME’s energy management activities is conducted through the Risk Management Committee (“RMC”). The RMC is also responsible for activities governed by this Policy and ensuring that Policy requirements are met. The RMC membership is be comprised of five voting members and two non-voting members. 2.1.1. Risk Management Committee Responsibility The RMC has the responsibility for executive oversight over the Program, which includes: ƒUnderstanding DME’s risk management objectives as described in Section 1.2 above and risk tolerances as described in Appendix B.3 and B.4. ƒApproving annual risk plans, targets and limits as reflected in DME’s proposed annual budget and Hedge Plan. ƒEnsuring Program strategies are consistent with overall City goals and obligations. ƒReviewing this Policy at least annually and making recommendations for changes to the City Council and Public Utilities Board. ƒReviewing and monitoring DME’s progress in managing its hedging plans/targets as described in Appendix E and proximity risk exposure limits specified in Appendix B.3. ƒUnderstanding and discussing DME’s energy-related financial risk exposures and DME’s strategies for monitoring and controlling these exposures. 2.1.2 Risk Management Committee Structure The voting members are: x PUB Chair (or designee) x City Manager (or designee) x DME General Manager (Chair) x DME Regulatory & Risk Division Manager (or designee) x City’s Director of Finance (or designee) Exhibit 'A' 314 Energy Risk Management Policy Page 9 5/xx/21 The non-voting members, both acting solely within their respective responsibilities set out in the City’s Charter, are: x City Auditor (or designee) x City Attorney (or designee) 2.1.3 Meeting Frequency, Voting, Member Vacancies and Reports 1. As needed, but no less than quarterly, the RMC shall meet to review EMO operations as described in Section 4.2. The Chair of the RMC shall provide at least five (5) business days’ notice to the members. 2. Any member of the RMC can request a meeting to address circumstances or issues that may require immediate attention. 3. As needed, but not less than annually, the RMC reports results of DME’s energy management activities and compliance with this Policy to the Public Utilities Board and the City Council 4. Each of the five voting members shall have a single vote on matters that come before the RMC and a voting member, or designee, must participate in the RMC meeting in order to vote and approve a proposed action. If a voting member is unable to attend an RMC meeting in person or by telephone, the member may designate an alternate to vote in the member’s absence. A quorum of at least four (4) voting members is required for a vote to take place. The RMC makes decisions and take actions by a simple majority vote. If the RMC reaches an impasse that cannot be addressed through a vote, the DME General Manager may make a final decision by the end of the next business day on the issue and shall immediately notify all RMC members by email. 5. In cases where a member of the RMC leaves the employ of the City, the City Manager, upon consultation with the DME General Manager, will resolve the RMC vacancy by making an interim appointment at the General Manager’s discretion. 6. A standard set of reports shall be prepared and distributed by the Chair in advance of each RMC meeting. The DME Compliance Officer, or that officer’s designee will act as Secretary to the RMC and will document all meetings and actions taken by the RMC in meeting notes that will be distributed to RMC members for their review and acceptance. Risk Policy compliance and risk position reports will be presented the RMC in a form that is approved by the RMC and which may be amended as determined necessary by the RMC. When establishing the standard set of reports, the RMC will consider the requirements set out in 2.1.3. Exhibit 'A' 315 Energy Risk Management Policy Page 10 5/xx/21 7. Meeting notes approved by the RMC will be distributed by the City Attorney to the RMC members, the City Manager, City Council and PUB. 8. As Chair of the Risk Management Committee, the DME General Manager is responsible for all DME energy management activities, including the day-to-day efforts of the risk control function. At a high level, these responsibilities include understanding and measuring market risk, validating risk mitigation activities, hedge strategy compliance and risk reporting. 2.1.4 Outside RMC Support; Outside Review of Standard Reports; DME Cooperation with Consultant; Quarterly Report from Consultant 1. The City Manager may employ a consultant who directly reports to the City Manager to provide independent support to the RMC including, but not limited to: x Assessment of energy markets including energy news and counterparty information relevant to DME’s risk management and hedge positions x Independent monitoring of DME’s risk and policy limits as defined and approved in this policy x Review of DME’s front office hedge strategy and recommendations for potential improvements x Independent review of DME’s executed hedge positions for compliance with this policy x Review of DME’s hedge positions and portfolio, including review of o Risk report o Position reports o P/L reports o Counterparty exposure reports o Settlements reports x Support in the ongoing development of DME’s RMC standard set of reports x Attendance at DME’s RMC quarterly meetings and other RMC meetings x Performance of a cost benchmark analysis at three (3) year intervals. x Other tasks and responsibilities as may be determined important by the City Manager. 2. The standard reports prepared by DME for the meetings shall be provided to the City Manager at least 5 days before the date of the meeting and the same shall be reviewed by a consultant who reports directly to the City Manager. 3. DME shall cooperate with all requests of the consultant. Exhibit 'A' 316 Energy Risk Management Policy Page 11 5/xx/21 4. In conjunction with the quarterly RMC meetings, the consultant will provide a report to the RMC which will include, but not limited to: x Risk and position reports x Recommendations, as needed, for changes to DME’s risk management program 2.2 Front, Middle, and Back Offices The “Front-Middle-Back Office” model provides for segregation of duties and efficient administrative support. It is a way to segregate DME energy management activities into transactional (“Front Office”), independent risk control and transaction compliance (“Middle Office”) and financial, accounting, and contract administration support (“Back Office”) functions. 2.2.1 Front Office The Front Office is primarily responsible for managing the energy supply portfolio associated with DME’s wholesale market activities and directing its daily physical and financial trading. The Front Office directly executes physical or financial transactions to support activities such as management of fuel, power, congestion, ancillary services, environmental attributes, and wholesale sales activities as well as develops measurable hedge strategies and plans at least annually (see Appendix E for details on hedging framework). Specific responsibilities of Front Office personnel include: 1. Developing and implementing strategies that are consistent with program objectives and this Policy. 2. Monitoring the energy markets including determining the forward prices for products traded by the EMO (“marking curves”) structural/regulatory changes, counterparty activity and financial wherewithal, market liquidity, and new supply and hedging instruments. 3. Advising the RMC of significant changes in the market and in the liquidity of approved hedging instruments, along with advising the RMC of the need for seeking Council approval of in new hedging instruments that may help DME achieve its risk objectives. New hedging instruments shall be approved based on the guidelines shown in Appendix E – New Product / Market Instrument Approval Checklist. 4. Managing the portfolio of positions in physical and financial energy and energy- related commodities in a manner consistent with DME’s risk management objectives and the corresponding Hedge Strategies contained in Appendix E – Forward Hedging Strategies and Plans. Exhibit 'A' 317 Energy Risk Management Policy Page 12 5/xx/21 5. Executing physical and financial transactions with approved counterparties through the appropriate exchange, broker, voice communication, email, etc. 6. Recording details of financial and physical transactions for DME’s ETRM system. 7. Ensuring that transactions comply with DME’s Energy Risk Policy. 8. Functioning as the primary point of contract and as an active participant in the ERCOT stakeholder processes. 9. The Front Office oversight role is accomplished through supervisory review and approval. DME’s Front Office consists of Market Operations and the Market Analytics group and reports to the Assistant General Manager or the functional manager of the EMO. 2.2.2 Middle Office The Middle Office is responsible for monitoring compliance with this Policy, for determining that energy transactions and exposures are within authorized limits and meet minimum targets, identifying any violations of the limits in this Policy and reporting any such violations to the General Manager and Assistant General Manager, and for reporting the market exposure associated with all transactions entered into by the Front Office on an ongoing basis. The Middle Office institutes and reviews energy portfolio management activities, such as portfolio credit exposure, transaction compliance and approval of counterparties. The Middle Office also quantifies and reports risk exposure (including both price and volumetric uncertainty). If, in the opinion of the Middle Office, hedge decisions do not achieve program objectives, the Middle Office will determine why the objectives are not achieved and recommend to the Front Office, changes to existing and proposed hedge transactions and positions. In the event there is no consensus between the Front Office and the Middle Office, the Middle Office with recommend changes to the RMC on potential changes to the hedge transactions and the rationale for such recommended changes. The Middle Office responsibilities include monitoring DME’s energy management risk exposures and mitigation measures and ensuring compliance with policies, guidelines, and procedures. In connection with this responsibility, the Middle Office maintains a compliance log of any operational and/or procedural violations, which will be reported to the RMC each quarter. Alleged violations of and policy or procedures will be immediately reported to the General Manager and the Assistant General Manager. Additionally, the Middle Office is responsible for recommending to the RMC when changes in policy or operating procedures are required. These recommendations may involve the temporary or permanent halting of transactions with one or more Exhibit 'A' 318 Energy Risk Management Policy Page 13 5/xx/21 counterparties, and any other topic the Middle Office believes represents potential unacceptable risk exposure. The Middle Office adopts and updates, as necessary, the Energy Risk Management Policy after such updates are adopted by the RMC, guidelines and procedures so that portfolio management functions occur in compliance with Energy Risk Management Policies and energy risk procedures and guidelines. Specific responsibilities of the Middle Office include the following: 1. On a daily basis, confirms and reconciles physical and financial transactions, including conditions, quantities, and amounts to be paid and dates. The Middle Office verifies the mark for every position that has been entered into the system of record by Front Office and to ensure that the terms recorded and understood by DME to match the terms actually agreed upon with counter parties and/or brokers. 2. Compares energy portfolio to the market (market to market) by collecting and validating market prices, and preparing position reports identifying the financial positions, physical positions, anticipated physical exposures, and the market value of the energy portfolio(s) on a position-by-position and aggregate basis. 3. Operates risk measurement, performance, and valuation models, including various stress tests. 4. Prepares routine risk reports, including those identified in Section 4.2 – Required Reports. 5. On a daily basis, confirms that all exposures and activities comply with authorized market instruments as contained in Appendix D – Approved Types, the risk limits as contained in Appendix A – Risk Exposure and Transaction Limits and hedge coverage targets as contained in Appendix E – Forward Hedging Strategies and Plans. In doing so, the Middle Office monitors transactions and position limits, review daily positions, and activity reports, and ensures that trading instruments comply with current hedging strategies and are permissible. 6. Follows the remedial actions process in the event of any risk limit or hedge target breaches. 7. Ensures all transactions comply with DME’s Energy Risk Policy. 8. Generates, executes and sends written confirmations to counterparties to ensure terms and conditions are mutually agreed upon. 9. The specification of position valuation methods. 10. Calculates and reports the credit risk position of DME with counterparties. Communicates to the Front Office any counterparties that have exceeded allowed credit risk and are prohibited from further trading activities. Exhibit 'A' 319 Energy Risk Management Policy Page 14 5/xx/21 11. Maintains all counterparty enabling agreements and ensures that only enabled counterparties are populated and authorized in the system of record. The Middle Office reports to the DME Regulatory & Risk Division Manager. 2.2.3 Back Office The Back Office’s primary responsibility is to ensure that financial records of DME’s energy management operation accurately reflect the current state of energy risk management and power supply portfolio management activity. The Back Office is responsible for invoice checkout, verifying supply payments, invoicing, and settlements. The Back Office is also responsible, in coordination with City of Denton Finance, AR, and AP departments, for accurately calculating and booking the financial results of energy transaction activities, billing, and accounts payable, as well as recording, reporting and accounting for risk management and hedging. Specific responsibilities of the Back Office include the following: 1. Supports accounts payable and receivable operations. 2. Coordinates with City Finance the recording of all revenue and expenses in the general ledger and other subsidiary ledgers when appropriate. 3. Coordinates the recording of posted cash receipts and revenues with City Finance to the appropriate subsidiary ledger. 4. Settles transactions (verification, accounts payable/receivable) 5. Develops and maintain documentation outlining standard procedures for performing the settlement functions described herein. 6. Notifies the Front Office, Middle Office, and the General Manager of any discrepancies that result from the reconciliation process. 7. Oversees the safekeeping of transaction-related documents. 8. Maintains funding and reconciles and records activity in cash accounts held with other ERCOT and other market participants. The Back Office reports to the Executive Manager of Energy Services and Administration. Exhibit 'A' 320 Energy Risk Management Policy Page 15 5/xx/21 SECTION 3 MARKET RISK PROTOCOLS AND EXPOSURE CONTROL 3.1 Market Risk Protocols The following market risk protocols shall govern DME’s participation in wholesale energy markets. Specific limits, methodologies, reports, operational procedures and approval processes are detailed in the EMO Procedures Manual.  x DME will ensure that it has full knowledge of its energy portfolio position and the resulting exposure, and understands the implications of its energy management activities; x Only personnel authorized by the DME General Manager, or the General Manager’s designee, pursuant to a written Delegation of Authority Memorandum or email copied to the middle office can transact on behalf of DME in the wholesale energy market (see Transaction Limits section of Appendix B); x Personnel involved with DME’s energy management activities will ensure they obtain competitive prices, transact based upon competitive market conditions and that counterparty credit risk is diversified by setting up master enabling agreements [such as the International Swaps and Derivatives Association, Inc. (ISDA), Edison Electric Institute (EEI), and the North American Energy Standards Board (NAESB)] with as many pre-qualified financial counterparties as deemed necessary by the Front Office. x DME may only transact in wholesale energy-market products authorized by this Policy and at retail price levels stipulated in the current rate manual or as approved by the PUB or City Council as applicable. x DME may only transact within transaction limits approved and defined in this Policy. x All energy transactions will be carried out on recorded phone lines, electronic trading platforms, via electronic media (including email and other online methods) or other media that can be recorded and documented; x Metrics for assessing DME’s market risk exposure will be specified, measured, monitored, and reported on a regular basis to the RMC; x On a daily basis, all wholesale market transactions will be recorded in the official system of record which will capture and report physical and financial positions so that each can be reviewed separately and in total so that net volume and price risk and collateralization requirements can be accurately assessed and managed in real time. This system will also serve as a central check and balance tool; therefore, it will allow for reconciliation of physical and financial confirmations with transactional input. This system will also support and report risk information. x Models and inputs for valuation and risk measurement and mitigation shall be subjected to a Exhibit 'A' 321 Energy Risk Management Policy Page 16 5/xx/21 validation and change control process. The models employed and associated processes shall be described in detail in the EMO Procedures Manual. 3.2 Authorized Transactions Authorized types of transactions are addressed in Appendix D of this Policy. These transactions types are, and shall continue to be, focused on supporting the energy portfolio goals of the City Council and this Policy. 3.3 Market Risk Control An important element to any energy risk management and mitigation program is the regular identification, measurement, and communication of market risk. DME’s net “open” position (i.e., whether it needs to buy or sell energy products on a daily, hourly, monthly or annual basis to balance the energy portfolio) and the market exposure associated with its net open positions shall be quantified and compared against exposure limits contained in this Policy and discussed, on a regular basis, with the RMC. Market exposure associated with these net positions shall be quantified using forms of measurement approved by the RMC. The market exposure measurement criteria shall be reviewed at least annually and consider changes in DME’s net positions and existing and projected market conditions. The Middle Office shall have primary responsibility for coordinating the development, maintenance, and modification all market measurement methodologies within DME and for recommending approval of these methodologies by the RMC. 3.3.1 Risk Tolerance For the purposes of this Policy, DME’s Energy Risk tolerance is defined by the degree of uncertainty that DME can accept in its future financial ratios and customer rates on a projected basis. DME’s Energy Risk tolerance and measurement of Energy Risk shall include “at risk” forms of risk measurement such as Cash Flow at Risk (“CFaR”) or Value at Risk (“VaR”), augmented with scenario analysis and stress testing. These forms of risk measurement are described in more detail in Appendix A – Risk Exposure and Transaction Limits and in sections of the EMO Procedures Manual. 3.3.2 Transaction and Exposure Limits The setting of and the adherence to transaction limits is an important control element to ensure DME does not assume greater aggregate energy market exposure than is intended and helps ensure that the transaction strategy level is appropriate at various levels of aggregation (e.g. by commodity, delivery period, strategy, energy portfolio, etc.). Exhibit 'A' 322 Energy Risk Management Policy Page 17 5/xx/21 Appendices B and D, along with the EMO Procedures Manual, contain the Approved Transaction Types and the Transaction Limits for DME. It is the responsibility of the Front Office, Middle Office and the RMC to utilize these limits to manage and mitigate risk- taking activities. The Front Office shall be responsible for maintaining exposures within prescribed limits and for recommending changes to those limits to the RMC when market conditions or operating circumstances result in limits becoming ineffective or inappropriate in controlling these activities. The Middle Office shall be responsible for monitoring compliance with the Transaction Limits and obtaining approval from the RMC for any changes to Transaction Limits or the Transaction Limit structure. It is the responsibility of the Middle Office and Front Office to ensure that Transaction Limits are strictly enforced. 3.3.3 Stress Testing In addition to mitigating and measuring financial exposure using the methods above, stress testing is used to examine performance of the energy portfolio under extreme adverse conditions. In stress testing, extreme market conditions are applied to the portfolio to determine how the portfolio will perform under such conditions. Stress testing requires thorough evaluation of past market periods to determine those that would represent severe outcomes. In addition, the performance of the portfolio is also estimated for individual and combined potential market conditions. Such conditions are intentionally chosen to represent adverse conditions and combinations of conditions, even if they are extremely unlikely. The Middle Office shall design and maintain a stress testing program, in consultation with the Front Office. The stress testing approach shall be reviewed by the Middle Office regularly, and the stress testing program shall be presented to the RMC for review on at least an annual basis. 3.3.4 Model Validation and Controls A risk commonly faced by those involved with energy management activity is model risk— the risk that either the methodology or assumptions used to value the portfolio becomes invalid. Inaccurate assumptions and incorrectly designed models can cause risk management problems in every market. However, the complexity of energy models and their extended lifetimes, make these problems especially common in the energy markets. Model risk occurs primarily for two reasons: Exhibit 'A' 323 Energy Risk Management Policy Page 18 5/xx/21 • The model may have fundamental errors the user is unaware of and may produce inaccurate outputs when viewed against the design objective and intended business uses. • The model may be used incorrectly or inappropriately. Ensuring adequate model documentation is an important control for managing modeling risk. This requires both organizing model information and accountability from people using and developing models. DME keeps a record of all internally and externally developed models used in its operation (see EMO Operating Procedures 1-4), including: x a description of the information input component (assumptions and data used by the model, including quantitative approaches whose inputs are partially or wholly qualitative or based on expert judgment), x version control (when key model inputs or model processes change) x processing component (which transform inputs into estimates), and x reporting component (which translates the estimates into useful business information). The Middle Office will review and validate models used by DME and report to the RMC annually. 3.4 Credit Risk Control Credit Risk is the potential impact on DME’s financial performance due to the chance of non- performance in payment or delivery (either physical or financial) by an energy entity that has executed a commercial agreement with DME to buy and sell energy (“counterparty”). DME actively mitigates its energy credit risk by making informed decisions regarding which counterparties to transact with and to what degree. Credit risk is defined as the risk of counterparty nonperformance, or failure to deliver its obligation (whether with an energy product or the payment of amounts owed). 3.4.1 Credit Policies DME mitigates its energy credit risk by x Incorporating the expected transacting volumes, timing, and expected energy prices, when establishing an energy credit risk tolerance for a calendar year; Exhibit 'A' 324 Energy Risk Management Policy Page 19 5/xx/21 x Assessing counterparty creditworthiness and establishing credit limits for counterparties based on that assessment; x Requiring a counterparty to be assigned a credit limit prior to transacting with it; x Monitoring and assessing market and counterparty events to adjust credit limits as appropriate; and x Calculating and reporting the maximum expected loss if a counterparty defaults (“counterparty credit exposure”). 3.4.2 Credit Limits The EMO Procedures Manual includes a credit limit framework for DME’s counterparties based on various factors such as debt ratings and financial statistics. Specific counterparty credit limits include consideration of financial ratios, audited financial statements, and asset quality. Credit limits and credit exposure based upon the trades in place with each counterparty and the market price for the net long or short positions with each is measured every day by the Middle Office. At least semi-annually the credit strength of each counterparty that DME is exposed to will be evaluated by the Middle Office, or immediately if their business conditions change or their credit rating has been downgraded and negative changes that have the potential to increase DME’s credit risk will be reported to the RMC. Prior to execution of any transaction with a counterparty, the Front Office verifies that the counterparty has available credit. In addition, no transaction shall be executed that will cause the counterparty credit limit to be exceeded unless explicitly approved by the RMC. 3.4.3 Counterparty Credit Function The counterparty credit function concerns counterparty credit analysis and approval of new and existing counterparties as well as the calculation, aggregation, monitoring and reporting of credit exposures. In addition to those activities mentioned in section 3.1, the Middle Office manages DME’s credit function. The objective of the counterparty credit function is to minimize the potential adverse financial impacts on DME in the event of a potential default by a counterparty. The counterparty credit function will minimize DME’s credit exposure and potential adverse financial impacts by: x Establishing a credit risk mitigation structure within the energy risk management program; x Providing a framework to enable DME to qualify energy suppliers and transact with Exhibit 'A' 325 Energy Risk Management Policy Page 20 5/xx/21 approved counterparties; x Determining counterparty transacting parameters (“transaction limits”) to conservatively control and measure DME’s exposure to any one supplier; and x Implementing conservative business processes and procedures (to be included in the EMO Procedures Manual) to gather and monitor financial information on each counterparty to estimate counterparty credit exposures 3.5 Information Systems and Models Energy risk management information systems consist of the data, models and other software and hardware used to collect, analyze, test, and validate transactions within DME’s portfolio in order to monitor and control risk. Although various departments within the City of Denton or DME may have responsibilities for using and maintaining DME’s risk management systems, the Middle Office shall have overall responsibility for ensuring that the systems are sufficient to perform the risk management functions outlined in this Policy. As part of a service level agreement with the City of Denton Technology Services, the Middle Office shall also be responsible for maintaining the security, integrity and reliability of the software used for energy risk management purposes (e.g. valuation models, administrative and reporting software, energy risk management databases, etc.). In accordance with the service level agreement which is currently followed between DME and the City of Denton Technology Services, Technology Services shall be responsible for maintaining the integrity and reliability of the hardware used for both energy management and energy risk management purposes, including business continuity, disaster protection and recovery plans. Exhibit 'A' 326 Energy Risk Management Policy Page 21 5/xx/21 SECTION 4 RISK REPORTING 4.1 Risk Management Reporting Policy Key to energy risk management is the monitoring of risks and the accurate and timely information that must be provided to all parties involved in any aspect of energy risk management to allow them to perform their functions appropriately. The separation of execution and reporting responsibilities ensures that timely and accurate information is being reported. On an annual basis, the RMC Chair will meet with the PUB and City Council and provide details of the DME’s forward purchases, market exposure, credit exposure, counterparty credit ratings, transaction compliance and other relevant data. In addition, DME will provide periodic training to the PUB and Council on energy market fundamentals and commodity trading best practices to help facilitate more productive risk meetings. 4.2 Risk Committee Meeting Updates Minutes and meeting materials from quarterly RMC meetings will be distributed to the PUB and Council for their review. At a minimum, quarterly RMC meetings will include a review of the following topics: Controls Compliance Identification of any activities that have exceeded permissible limits. The General Manager or the General Manager’s designee will provide details of the causes of any limit violations, the measures taken to mitigate future violations and a report of any disciplinary actions taken as a result of such violations. Hedge Target Compliance Provides an update on progress on executing latest hedge plan execution timetable. Portfolio Competitiveness Provides a comparison of latest 12-month cost/MWH vs ERCOT spot markets (Day- Ahead and Real-Time Market) and compares the market value of renewable resources to their contract costs. Credit Exposure Identifies the credit limit for each counterparty, current level of exposure with the counterparty, and remaining available credit. Also includes an update on current ERCOT credit requirements and thresholds. Exhibit 'A' 327 Energy Risk Management Policy Page 22 5/xx/21 4.3 Transaction Valuation DME’s financial records will be maintained in full accordance with generally accepted accounting principles (“GAAP”), Government Accounting Standards Board (GASB) and will be consistent with FERC Uniform System of Accounts. Front, Middle, and Back Office functions shall coordinate their efforts and maintain vigilance to ensure that DME’s energy management transactions and risk exposures are accurately valued in an unbiased manner. Transaction valuation and reporting of positions shall be based on objective, market-observed prices or models. Open positions (i.e., whether DME needs to buy or sell energy on a daily, hourly, monthly or annual basis to balance customer loads against available resources) should be valued (“marked- to-market”) daily, based on consistent valuation methods and data sources. Whenever possible, these valuations shall be based on independent, publicly available market information and data sources (e.g., Bloomberg, Reuters, NYMEX, ICE, broker quotes, etc.). As noted in Section 2.2.2, the specification of position valuation methods is the responsibility of the Middle Office and is subject to RMC review. The Middle Office is responsible for obtaining and disseminating market pricing information (Section 2.2.2, item 2, page 13) in a timely and consistent manner, along with maintaining and updating transaction data and information sources used for trade evaluation (Section 2.2.2, item 1, page 13). The Middle Office is also responsible for assuring that data used for energy risk management calculations represent accurate and timely information available from reputable market or internal sources (Section 2.2.2, items 1 and 2, page 13). Exhibit 'A' 328 Energy Risk Management Policy Page 23 5/xx/21 SECTION 5 OTHER RESPONSIBILITIES AND POLICIES 5.1 Organization-Wide Responsibilities It is the policy of DME and the City of Denton that all personnel adhere to standards of integrity, ethics, conflicts of interest, compliance with statutory law and regulations and other applicable standards of personal conduct. The willful misrepresentation or concealment of information regarding portfolio management and/or risk management activities from senior management or any person responsible for the accurate tracking and reporting of such activities shall result in disciplinary action up to and including termination in accordance with DME and City of Denton policies and possible legal action as allowed or required by law. As an employee of the City of Denton, all DME personnel involved with its energy management activity should not have an expectation of privacy in the conduct of their duties. At any time, recorded phone calls and electronic transactions, emails, texts, etc. may be reviewed to ensure appropriate conduct or to review transactional information. 5.2 Commercial Interests and Trading for Personal Accounts All DME personnel who have any specific responsibilities delineated under this Policy or in the EMO Procedures Manual, are prohibited from engaging in the activities listed below: x Physical or financial trading of any commodities stipulated in this Policy or in supporting departmental procedures for their own account x Holding an undisclosed interest in any account or corporate entity (other than DME), which is used to trade the commodities described above. If there is any doubt as to whether a prohibited condition exists, then it is the employee’s responsibility to disclose and discuss the possible prohibited condition with their supervisor. In addition, any employee receiving taxable income from any person or business doing business with DME must file a Conflicts Disclosure Statement in accordance with Chapter 176 of the Texas Local Government Code. Failure to comply with these requirements may result in disciplinary action up to and including immediate termination of employment, in accordance with DME and City of Denton policies. Exhibit 'A' 329 Energy Risk Management Policy Page 24 5/xx/21 5.3 Acknowledgment of Policy Requirements All DME personnel connected with the energy risk management program must sign a statement attesting that they have received, read, and understand this Policy document and the City of Denton policies regarding employee conduct. A sample statement is provided in Appendix G. 5.4 Adoption of Energy Risk Management Policy The Energy Risk Management Policy shall be formally reviewed, approved and adopted by ordinance of the City Council annually in the second quarter of the City’s fiscal year. Exhibit 'A' 330 Energy Risk Management Policy Page 25 5/xx/21 SECTION 6 CREDIT RISK POLICY 6.1 Introduction The purpose of this credit risk policy is to establish a consistent process whereby the credit risk of future financial loss due to counterparty physical or financial non-performance is significantly diminished for energy purchases and/or sales. This objective will be accomplished by a pre- contract qualification and renewal review process for all energy suppliers and/or purchasers in combination with effective on-going monitoring systems and established limits. Any energy transaction conducted by DME will comply with this Credit Risk Policy. 6.2 POLICY OVERVIEW In general, all energy suppliers and/or purchasers will be subject to a financial review in accordance with DME’s standards for determination of creditworthiness. Evaluation of a counterparty’s financial health and its ability to deliver its product or to pay is crucial. Such review procedures prior to contract execution are designed to protect DME from undue exposure to losses that could arise from an insolvent counterparty not being able to pay for energy that they have purchased or to cover replacement costs incurred for term contracts that have positive economic value in relation to current market prices. A credit review cannot be viewed as the only mechanism to prevent any and all losses, but it can help identify those counterparties where performance has been a problem in the past or may present a problem in the future. Established limits combined with proper monitoring systems will help enable DME to effectively mitigate possible losses due to counterparty insolvency. Exhibit 'A' 331 Energy Risk Management Policy Page 26 5/xx/21 Appendix A PORTFOLIO RISKS As an electric utility, participation in physical and financial energy markets exposes DME and its customer/owners to the risks of cost and pricing uncertainty, revenue and commodity market volatility, and uncertainty in meeting budget targets and the Energy Cost Adjustment (ECA) component of its retail rates. These risks may be broadly categorized into three risk categories: market, credit, and operational. Each category of risk is described below. The categories are not entirely separate: disruptions of planned operations, for instance, can expose a utility to the risk of having to execute unforeseen transactions during adverse market conditions. The following section provides descriptions of the energy-related risks the Policy is intended to address. A.1. MARKET RISK DME manages energy purchases and sales with the goal of reducing the business risks associated with its obligation to serve energy to its customer/owners. These risks include volume-related and price-related risks. A.1.1. Price Risk Because of continual changes in the supply and demand for electricity, significant price changes can occur over a short time frame, otherwise known as price volatility. High price volatility means a high degree of uncertainty about the level of prices in the immediate time frame and the future. DME’s price risk takes several forms, including: 1) exposure to changes in spot prices which DME faces in purchasing electric energy from the ERCOT market, 2) forward price risk of anticipated purchases or sales of power or fuel in the future and 3) the cost of energy-related products and services such as congestion revenue rights and ancillary services. Price risk also includes the basis risk associated with potential differences in the price of a commodity between geographic locations that is inherent in the ERCOT and physical natural gas markets. For example, whenever DME must purchase power to satisfy native load requirements or is exposed to natural gas price uncertainty at various physical delivery points, DME is financially at risk due to the uncertainty in transmission or transportation costs between various locations. A.1.2. Volume Risk Volume Risk refers to uncertainty in the quantity of a commodity or service demanded, acquired, or supplied that has a potential economic impact. A primary volume risk for Exhibit 'A' 332 Energy Risk Management Policy Page 27 5/xx/21 DME is the uncertainty associated with the amount of load DME will be required to serve. Weather conditions affect customer energy usage, and weather changes make forecasting of load and non-dispatchable resources a challenge, causing actual quantities to deviate from forecasts. Forced or unexpected outages of generation resources also impact DME’s volumetric risk. Generation levels from renewable energy resources are based upon the weather conditions experienced at the location of the renewable resources. EMO Operating Procedures 1-4 contain details about DME’s processes for developing forecasts of expected volumes associated with its portfolio of load and resources. A.1.3. Liquidity Risk DME transacts business in commodity markets that have inherent liquidity risk. Liquidity risk for DME arises when its intended transaction quantities exceed the size of current market bids (to buy) and offers (to sell). When DME desires to execute a transaction for a volume/quantity in excess of current market bids or offers, potential counterparties may be unwilling or unavailable to transact with DME. Transactions of nonstandard sizes and types also present liquidity risks. Liquidity risk should also be considered with regard to positions thought to be offsetting, but that may become open in the event that a counterparty defaults on their transaction responsibility (also referred to as “default risk”). It may be difficult to replace defaulted transactions on short notice. If a position must be covered quickly, the price of the necessary replacement transaction can be worse than if no urgency existed, especially if the potential counterparties know about the urgent need, putting DME as a significant disadvantage. A.2. CREDIT RISK DME is at risk if a customer, supplier or trading counterparty is unable or unwilling to fulfill its present or future contractual obligations to deliver power or fuel, or to make a timely payment of invoices or collateral. A.2.1 Credit Risk Credit Risk equals the potential replacement value of counterparty contractual obligations to deliver or receive power or fuel, or to make a timely payment to settle a financial contractual obligation. The potential financial impact from counterparty defaults is significant. DME’s credit risk is addressed in a separate Credit Risk Management Policy. Exhibit 'A' 333 Energy Risk Management Policy Page 28 5/xx/21 A.2.2. Funding Risk Funding risk is related to credit risk. This term refers to the risk that DME might have to pay margin or post collateral to meet requirements to securitize its credit under credit provisions of Power Purchase Agreements, wholesale energy market, or to meet margin requirements for cleared contracts. In the event of significant funding risk associated with the default of a counterparty or the inability of the DEC to produce energy resulting in large replacement energy costs, the City of Denton’s reserves would be required to provide cover costs. A.3. OPERATIONAL RISK The term operational risk is often used as a catch-all category intended to include all risks that are not explicitly designated by other names, such as market risk, volume risk, liquidity risk, and credit risk. Operational risks include problems of several types that can have adverse financial consequences, and that relate to the operations of DME’s energy portfolio, identification and control of risks, and processing and settlement of transactions. One such risk is Model Risk. A.3.1. MODEL RISK Model risk is a form of systems risk associated with unrecognized deficiencies of information systems used to in value transactions. A model may incorporate assumptions to derive unobservable pricing parameters from observable ones. There is a risk that a particular model used to value a transaction may not properly capture the value and risks of the transaction, and that its deficiencies may emerge only after the fact, following unfavorable market movements. A.3.2. DENTON ENERGY CENTER OUTAGE RISK A forced or unexpected outage of the DEC when the output from the units are anticipated to be used to hedge market price risk due to lower than expected renewable energy generation is an operational risk. This risk is mitigated by a) preventative maintenance programs designed to minimize forced outages b) not over-committing energy and capacity from the DEC during times of likely high prices, and c) the purchase of out-of- the-money call options. A.4. REGULATORY RISK Regulatory risk is the uncertainty to DME’s performance due to potential changes in laws or regulatory mandates. Examples include, but are not limited to, the following. Exhibit 'A' 334 Energy Risk Management Policy Page 29 5/xx/21 A.4.1 Carbon Cost Unless explicitly borne by an energy supplier, DME is exposed to the potential risk of carbon costs. Any applicable law, rule, regulation, ordinance, protocol, order, decree, judgment or other similar legal mandate could cause DME to pay carbon costs associated with the production, generation, sale, metering, measurement, transmission, storage or delivery of electric energy. A.4.2 Changes to ERCOT market design The PUCT has directed ERCOT to study the impact of changes to its market design, which could have a significant impact on the flow of dollars between suppliers and consumers of power, possibly triggering the need to renegotiate long-term power contracts and changing the valuation of existing generation assets. A.4.3 Ongoing changes to ERCOT Protocols The rules under which ERCOT operates are in a constant state of change. In fact, they change so often that ERCOT’s governing board has a committee (Protocol Revisions Subcommittee) that meets monthly to review and process proposed changes submitted by ERCOT and its market participants. These changes usually impact how costs are allocated within ERCOT among market sectors, consumers and suppliers of power, and individual market participants like DME. A.4.4 Regulatory Compliance Market Participants in the ERCOT region are subject to both state and federal laws and regulations. Market Participants that own or operate facilities that are part of the Bulk Electric System, as defined in federal law, are subject to oversight by the Federal Energy Regulatory Commission (FERC), the North American Electric Reliability Corporation (NERC), and Texas Reliability Entity, Inc. (Texas RE). Additionally, all ERCOT Market Participants are subject to oversight by the Public Utility Commission of Texas (PUCT). The PUCT administers the Public Utility Regulatory Act (PURA), and adopts and enforces rules pursuant to the authority granted in PURA. The PUCT also has oversight and enforcement authority over the ERCOT Protocols, Operating Guides, and Other Binding Documents. The PUCT has contracts with an Independent Market Monitor (16 T.A.C. §25.365) and a Reliability Monitor (16 T.A.C. §25.503) to assist with oversight and enforcement activities. Exhibit 'A' 335 Energy Risk Management Policy Page 30 5/xx/21 Appendix B RISK EXPOSURE AND TRANSACTION LIMITS DME’s energy supply, trading and risk management-related activities shall be segregated among a number of “risk books.” A risk book is a way of classifying and tracking positions and transactions that have similar or directly related purposes so that value and risk can be measured in sufficient detail to support both risk control and transaction strategy decisions. The establishment and management of risk books enables the EMO to focus on the optimization of individual risk consistent with the approved Hedge Plan. B.1 Risk Books Load Book A Load Book captures all trades associated with procuring energy to serve city load, including hedge transactions and ERCOT day-ahead and real-time market settlements. Renewables Book The Renewables Book captures the value of all transactions associated with long-term renewable energy positions and hedging the cost of renewable PPAs and associated ERCOT day-ahead and real-time market settlements Optimization Book After hedge is placed, if positive MtM is realized and market is in fundamental or technical reversal, EMO will be authorized to “optimize” the original hedge. Such optimization trades are subject to the limitations contained in this Risk Policy and shall be conditional trades as specified in the Hedge Plan. Congestion Book The purpose of the Congestion Book is to track the purchase of CRRs and associated financial instruments (see Section B.5.2 below), which are purchased in ERCOT auctions or in the ERCOT Day Ahead Market and used to hedge against transmission congestion risk. DEC Book The DEC Book includes hedge transactions associated with the Denton Energy Center and associated ERCOT day-ahead and real time market settlements. Natural gas supply transactions whether physical or financial will be housed in this risk book. Cash Book The Cash Book includes records all physical sale and purchases to ERCOT. Exhibit 'A' 336 Energy Risk Management Policy Page 31 5/xx/21 B.2 Risk Exposure Limits An essential control element in the management of market risk is the development and adherence to an appropriate limit structure. A well-designed limit structure helps ensure DME does not assume greater aggregate risk than intended and helps ensure that risk taking at the transaction strategy level is appropriate at various levels of aggregation (e.g., by commodity, delivery period, strategy, etc.). The primary forms of limits listed below shall be applied to DME’s energy management activity: Rates at Risk – Rates at Risk (“RaR”) is a form of Cash Flow at Risk (CFaR) measurement. RaR limits will be set to limit the amount of uncertainty in future rates over the immediately upcoming 12-36 month period. If uncertainty in future rate requirements is higher than DME’s risk tolerance, DME will consider hedging or implementing other risk management strategies to reduce the potential need for unforeseen rate increases and/or deterioration of DME’s financial condition. Value at Risk –Value at Risk (“VaR”) limits will be set to limit the potential loss in value of the portfolio. Notional/Volumetric –To augment RaR and VaR limits, notional limits and/or volumetric limits will be established. Notional limits are specified based on transaction or strategy dollar amount (i.e., contract or strategy volume x price). Volumetric limits are specified based on volume (e.g., MW, MWH, MMBTU, etc.). This provides a concrete limit to account for uncertainties in risk measurement and human judgment capabilities. Other volumetric limits may be established in relation to specific risks not captured by RaR or VaR. ERCOT – Implementation of the ERCOT Real Time Market (RTM) and Day Ahead Markets (DAM) require daily attention to Available Credit Limits (ACL) and forward liability calculations. The Back Office shall actively monitor and communicate any changes affecting current credit positions. Stop Loss –Stop loss limits are set, such that, if an individual position or strategy (or a hedge transaction or strategy which has become ineffective, including optimization trades) is performing adversely and approaches a predetermined level of losses, the position or strategy must be liquidated or completely hedged to prevent further loss. B.3 Portfolio Risk Exposure Limits Because ERCOT is responsible for ensuring physical reliability of the grid, DME’s efforts focus primarily on managing the rate impact of price volatility risk of its portfolio. For the purposes of managing this risk, DME will assume an average consumer risk tolerance (CRT) equivalent to 1 cent per kWh of load over a rolling 12-month period. For the avoidance of doubt, under the Exhibit 'A' 337 Energy Risk Management Policy Page 32 5/xx/21 current DME rate structure, the CRT applies to the total average cost per kWh on an annual average basis for the residential class. A CRT in excess of 1 cent per kWh outside the 12-month rolling average will be reported to the RMC as soon as it becomes known to DME. Hedging is DME’s primary method for reducing market price volatility risk, either by locking in or limiting the amount of variation of a future market price. The “downside” of hedging is that it not only reduces the chances of incurring higher costs than expected, it also reduces the chances of lower than expected energy costs, and correspondingly lower electric rates. DME uses an “at Risk”2 methodology to estimate, at a 95% confidence level, the amount of an electric rate increase that could occur due to changes in market conditions such as volumetric risk associated with its renewable resources, ERCOT day-ahead and real time market price volatility, gas price volatility, nodal price congestion, price correlations and credit risk. If DME’s estimate of a rate increase, at a 95% confidence level, exceeds the CRT threshold by 25%, DME will meet and confer with the RMC within 2 weeks, and with the City Council and PUB as noted in the table below within 30 days after meeting with the RMC, to discuss alternatives for implementing additional hedging strategies to bring the level of possible price volatility back inside the CRT threshold. No particular portfolio action is required, making this notification requirement very different from a trading limit. “At Risk” limits for the total portfolio are: RMC Notification Council / PUB Notification Rolling 12 months (in aggregate) $15.0 million $19.0 million B.4 Open Position Management DME’s primary objective is to protect against risks inherent in its portfolio, such as exposure to price volatility and from variability in supply and demand. DME plans to execute hedging transactions relatively evenly over time, to diversify timing risk (similar to dollar cost averaging) and does not speculate3 . Market transactions shall be executed as a result of strategies designed 2 The “at Risk” metric DME will use is based on a “Rates at Risk” (RaR) methodology, which refers to the statistical dollar amount that can be lost on the net open position of a portfolio over a specific time horizon and with a given confidence interval. DME’s RaR methodology accounts for the increasing potential distribution of prices as time passes, as well as the expiration of the positions in the portfolio with the passage of time. The result is the estimation of loss, at the specified confidence level, assuming that the portfolio remains constant over time until all positions within it have expired. 3 The US Commodity Futures Trading Commission defines a speculator as “a trader who does not hedge, but who trades with the objective of achieving profits through the successful anticipation of price movements” (CFTC Glossary: A guide to the language of the futures industry). Exhibit 'A' 338 Energy Risk Management Policy Page 33 5/xx/21 to maintain the net open position (the gap between expected demand and committed supply) within tolerances which are consistent with current hedging strategies. The resultant net open position shall be updated to reflect the new hedging transactions as soon as practical, but generally no later than the next business day. The hedge plan provides a guideline for hedging action of the DME’s loads, renewable resources and the Denton Energy Center as a function of time for the next three years. B.5 Transaction Limits Another vital control element in the management of energy risk is the development and adherence to transaction limits. Transaction limits ensure the energy portfolio management function is prudent, deliberate, and controlled at various levels of position aggregation and transaction duration. Transaction limits are established in consideration of overall portfolio strategies, market conditions and risk tolerance levels and include the following principles: ƒDME personnel involved with its energy management activity are authorized to execute any intra-day or day-ahead transaction which is necessary to mitigate market and financial risk exposure to DME customer/owners. ƒSpeculative transactions are those transactions not intended for hedging purposes and are strictly prohibited. For the avoidance of doubt, Optimization Trades as described in the Hedge Plan, are not classified as speculative transactions. All transactions shall either reduce risks or be risk-neutral to DME customers. ƒNo transaction may be executed for which DME does not have adequate systems or analytical methods to track, record, value, or analyze the incremental cash flow and risk. ƒAny single transaction for a term greater than three years must be approved by the RMC prior to execution. ƒScheduling of loads and resources, along with corresponding bid or offer prices associated with ERCOT Day Ahead Market (DAM), ERCOT Real Time Market (RTM) or ERCOT Supplementary Ancillary Services (SASM) Market are not subject to this Risk Policy or to the limits outlined below and do not require prior RMC approval. All executed transactions must be recorded and captured in DME’s ETRM system of record. Further, all transactions may be conducted on recorded phone lines, electronic trading platforms, or other media that can be recorded and documented. Confirmations of transactions will be compared with the ETRM transaction records by Middle Office, verified and executed by Middle Office personnel. Confirmations for transactions with ERCOT are evidenced through the ERCOT Settlement Summary statement. The following tables outline the transaction authorization limits established for DME personnel involved with its energy management activity when executing transactions. Those personnel are Exhibit 'A' 339 Energy Risk Management Policy Page 34 5/xx/21 permitted to execute transactions less than or equal to their designated limits or under the direction of someone having the required authority. Only the Approved Transaction Types listed in Appendix D may be executed unless otherwise approved by the RMC. 2021 changes to the Power Transactions table (B.5.1) are required to enable the EMO to execute the Hedge Plan. Increasing terms of transactions authorized beyond the three-year energy hedge transaction window are need for the following reasons: 1. Liquidity of individual months that become available for hedging as the 1st month rolls off and what was the 37th month forward becomes the 36th month. The market will not likely trade the individual 36th month and EMO will need to transact as a calendar deal or a quarterly deal, if market conditions warrant. 2. As the renewable portfolio is firmed up with additional solar resource that become commercial/operational in January 2021, EMO will be exploring the potential of swapping the actual physical output for a financial or physical fixed hourly shaped product for a term that is greater than three years. 3. The Hedge Optimization book will require immediate execution of term transactions if a stop is hit or a market reversal occurs. Such market condition must be reacted to immediately as delays associated with waiting for Risk Committee, Asst. GM or GM approval could cost rate-payers significant additional ECA charges and/or opportunity costs. Exhibit 'A' 340 Energy Risk Management Policy Page 35 5/xx/21 B.5.1 Bilateral or Financial Power Transaction Limits Title Term Lead Time Transaction Size (MW) Cumulative Volume Limits (MWh) City Council No Limit No Limit No Max No limit City Manager or RMC < 5 Year < 7 Years 300 10,000,000 per 5 Full Calendar Years rolling average DME General Manager < 4 Year < 5 Years 150 8,000,000 per 5 Full Calendar Years rolling average Assistant General Manager - Power Supply < 3 Years < 4 Years 100 16,000,000 per 3 Full Calendar Years or 36-month rolling average Manager, EMO Market Operations Manager Energy Analytics Manager < 12 Month < 24 Months 100 24,000,000 per 36 month rolling average Market Operations Supervisor Market Operations Lead Senior Energy Market Analyst < 3 Month < 24 Month 50 6,000,000 per month Senior Market Operator Market Operator < 1 Month < 2 Month 150 1,250,000 per week Notes: x Transaction Size Limits represent MW volume per hour. x Lead time represents the time period from the date a trade is executed to the start of delivery. x Authorized products include electric power, including both physical and financial derivatives4, as well as ancillary services. Financial derivatives may be over the counter Electric Power Futures, Heat Rates and Options on Electric Power and CRRs or Exchange Traded Products 4 As used here, a derivative is a contract that derives its value from the performance of an underlying asset or index. Exhibit 'A' 341 Energy Risk Management Policy Page 36 5/xx/21 x Authorization for approval of these transactions may be delegated. If transaction authority is delegated downward, volumetric limit applies to approving authority. B.5.2 Congestion Management Transaction Limits Title Auction Type CRR Auction Period Approved Instruments Time Period Source/Sink Combinations DME General Manager Annual & Monthly Any month or TOU offered by ERCOT (5 years) CRR Time of Use All ERCOT Resource Nodes, all ERCOT Hubs and Load Zones Assistant General Manager - Power Supply Annual & Monthly Any month or TOU block offered by ERCOT (SEQ 6 or less) CRR Time of Use Conventional Resource Nodes, Primary Hub and Load Zone Energy Analytics Manager Manager, EMO Annual & Monthly Daily Any month or TOU block offered by ERCOT (SEQ 3 or less) N/A CRR Point to Point Obligations/Options Time of Use Hourly Conventional Resource Nodes, Primary Hub and Load Zone Market Operations Manager and Senior Energy Market Analysts Monthly Daily Any month or TOU block offered by ERCOT (Monthly Auction) N/A CRR Point to Point Obligations/Options Time of Use Hourly Conventional Resource Nodes, Primary Hub and Load Zone Senior Market Operators Daily N/A Point to Point Obligations/Options Hourly Conventional Resource Nodes, Primary Hub and Load Zone Notes: x Annual CRR auctions occur monthly for successive 6-month periods (called "sequences" or SEQ) with progressively increasing amounts of transmission capacity available for Exhibit 'A' 342 Energy Risk Management Policy Page 37 5/xx/21 purchase in each sequence. A copy of the current CRR Activity Calendar which shows key dates associated with each Monthly and Annual CRR auction at http://ercot.com/mktinfo/crr x Monthly CRR auctions end about 2 weeks before the CRR effective start date x Conventional Resource Nodes include Denton Energy Center, White Tail & Santa Rita Wind Farms, Blue Bell Solar Farm and resource nodes or ERCOT Hubs associated with fully executed PPAs x Primary ERCOT Hub is “North Hub” x Primary ERCOT Load Zone is “Load Zone North” x The purchase of CRRs for each Source/Sink pair from all ERCOT auctions is limited to the nameplate rating of the generator for City-owned resources or the contract capacity rating for PPAs. A Congestion Revenue Right (CRR) is a financial instrument that results in a charge or a payment to the owner, when the ERCOT transmission grid is congested in the Day Ahead Market (DAM). DME uses CRRs as a financial hedge to lock in the price of congestion at the purchase price of the CRR. DME also hedges congestion in ERCOT’s Real-Time market by buying CRR-like instruments called Point to Point (PTP) Obligations. The main purposes of the ERCOT CRR market are to: x Support a liquid energy market by providing tradable financial instruments for the hedging of transmission congestion charges x Allow market participants to eliminate or greatly reduce the cost uncertainties resulting from transmission congestion charges x Encourage competitive energy trading, where the costs of congestion might otherwise be an impediment DME’s primary objective for hedging congestion risk is to mitigate potentially adverse financial consequences from uncertain price differences caused by transmission congestion between the location where it consumes power (ERCOT LZ_North), the locations where it purchases power on a forward basis (EROTT North Hub), and the ERCOT nodes associated with its resources (Denton Energy Center, White Tail & Santa Rita Wind farms, Blue Bell solar farm and future renewable resources). DME is exposed to transmission congestion risk for all amounts of energy forecasted to be consumed in the ERCOT North Load Zone, and energy that could potentially be produced at their respective resource nodes. By default, ERCOT charges all DME load for energy, along with any congestion, in the Real Time Market (“RT”). DME mitigates congestion risk with congestion hedges using Congestion Revenue Rights (CRRs). Exhibit 'A' 343 Energy Risk Management Policy Page 38 5/xx/21 Figure 1 Figure 2 DME hedges congestion risk between each resource and ERCOT’s North Hub location, and between North Hub and North Load Zone, by participating in ERCOT’s annual and monthly auctions, layering in CRR purchases for up to 3 years into the future. The North Hub is also used as a delivery point for bilateral trades (for liquidity purposes) Consistent with DME’s approach to hedging energy, DME seeks to acquire CRRs at steadily increasing amounts roughly corresponding to Auction Capacity Percentages, to diversify timing risk, similar to dollar cost averaging, and does not use event-driven trading to time the market, trading in and out of positions. DME employs a tiered approach in ERCOT’s annual and monthly auctions5. 5 In practice, this “buy as much as possible as early as possible” strategy means DME includes low bids for the full amount of remaining CRRs needed in each auction to maximize the chances of capturing low clearing prices while at the same time preventing credit collateral requirements from becoming unnecessarily high Exhibit 'A' 344 Energy Risk Management Policy Page 39 5/xx/21 B.5.3 Physical or Financial Natural Gas Transaction Limits Title Term Lead Time Transaction Size (MMBTU) City Council No Limit No Limit No Max City Manager or RMC < 3 Years < 5 Years 246,000,000 per 36 month rolling average DME General Manager < 3 Years < 5 Years 200,000,000 per 36 month rolling average Assistant General Manager - Power Supply < 3 Years < 5 Years 150,000,000 per 24 month rolling average Manager, EMO Market Operations Manager Energy Analytics Manager < 12 Months < 36 Months 50,000,000 per 3 month rolling average Market Operations Supervisor Senior Energy Market Analyst < 3 Months < 24 Months 2,000,000 per month Senior Energy Market Operator Energy Market Operator < 1 Month < 2 Months N/A Notes: x Natural Gas transactions limited to the following locations: Henry hub or locations within Texas which are physically or financially correlated to DME energy costs Exhibit 'A' 345 Energy Risk Management Policy Page 40 5/xx/21 x Authorized products include natural gas, including both physical and financial derivatives. Financial derivatives may be over the counter Gas Futures and Options or Exchange Traded Products B.5.4 Renewable Energy Credit (“REC”) Transaction Limits Per Transaction Limits (up to) Title Vintage Volume $/REC City Council No Limit No Limit No Max City Manager < 5 Years 9,500,000 No Max DME General Manager < 3 Year 5,750,000 No Max Assistant General Manager - Power Supply < 3 Years 5,750,000 No Max Manager, EMO Market Operations Manager Energy Analytics Manager < 2 Years 3,750,000 No Max Exhibit 'A' 346 Energy Risk Management Policy Page 41 5/xx/21 Appendix C ORGANIZATIONAL STRUCTURE Energy Management Organization Front Office DME General Manager Assistant General Manager, Power Supply Market Operations Mgr Market Operations Supervisor & Sr Energy Market Analyst Sr Energy Market Operator & Sr Market Operations Specialist Sr Energy Market Intelligence Analyst & Energy Market Intelligence Analyst Energy Market Operator Energy Analytics Manager SR ERCOT Transmission Analyst & Sr Energy Market Analyst Sr Energy Market Intelligence Analyst & Energy Market Intelligence Analyst Sr Business Intelligence Analyst & Business Intelligence Analyst Sr SCADA Analyst EMO & SCADA Analyst EMO Business Data Scientist (DBA) Exhibit 'A' 347 Energy Risk Management Policy Page 42 5/xx/21 Energy Management Organization Middle Office Energy Management Organization Back Office DME General Manager Executive Manager, Risk & Compliance Sr Risk Control Analyst DME General Manager Executive Manager, Energy Services/Admin Settlements & Rate Administrator Business Analysts Exhibit 'A' 348 Energy Risk Management Policy Page 43 5/xx/21 Appendix D APPROVED TRANSACTION TYPES Products allowed for energy management activities include the purchase and sale of electric energy, ancillary services, ERCOT Congestion Revenue Rights/Point to Point Obligations, Renewable Energy Credits, and natural gas. The City Council is responsible for authorizing all products and commodity types. All transactions must follow certain requirements as described throughout this Policy. Key elements include: x All transactions must be executed to by authorized transacting personnel x All transactions must be with approved counterparties and/or commodity exchanges x All transactions must be with counterparties with adequate available credit or fully collateralized x All transactions must be committed over recorded phone lines or via recordable electronic communications x All transactions must be approved transaction types x All transactions must be consistent with this Policy and the EMO Procedures Manual Failure to observe the above minimum requirements when executing energy transaction is a violation of Policy and is subject to disciplinary action. AURTHORIZED MARKETS DME may only execute transactions to buy or sell energy-related products after some type of enabling agreement has been signed with a counterparty or commodity exchange. In approving DME’s Energy Risk Policy, the City Council has authorized the City Manager, or City Manager’s designee, to sign such agreements. Examples of markets where DME is currently authorized to transact include: x Intercontinental Exchange (ICE) o ERCOT Physical and Financial Power o Natural Gas futures x Bilateral markets with approved counterparties Exhibit 'A' 349 Energy Risk Management Policy Page 44 5/xx/21 o Physical Natural Gas at locations within Texas and Oklahoma to support fuel purchases for the Denton Energy Center and DME’s energy portfolio o Physical and Financial Power x ERCOT o Day Ahead Market o Real Time Market o Ancillary Services Market o Congestion Management Auctions and Markets AUTHORIZED POWER TRANSACTIONS Power transactions shall be limited to delivery or exposure to power within ERCOT. 1. Physical a. Fixed-price & Index-price purchases and sales b. Call & Put Options (e.g., fixed & indexed, hourly, Time of Use, daily monthly, annually) c. Ancillary services 2. Financial a. Fixed-price & Index-price purchases and sales b. Exchange traded, bilateral or OTC Call or Put options 6 c. Ancillary Services d. ERCOT Congestion Revenue Rights (CRRs), Point to Point Obligations (PTPs) and other similar congestion management transactions AUTHORIZED NATURAL GAS TRANSACTIONS Natural Gas transactions shall be limited to Henry Hub or a location within Texas or Oklahoma to support commodity exposure for DME’s energy portfolio. 1. Physical Gas which may be needed to support operation of the Denton Energy Center a. Fixed and index price Natural Gas commodity b. Fixed and index price Natural Gas transportation c. Fixed and index price Natural Gas storage 2. Financial a. Exchange traded, bilateral or cleared futures and Exchange or OTC swaps 6 For example, fixed & indexed, hourly, Time of Use, daily monthly, annual options Exhibit 'A' 350 Energy Risk Management Policy Page 45 5/xx/21 b. Exchange traded, bilateral or cleared and or OTC Call or Put options7 c. Index options OTHER AUTHORIZED ENERGY-RELATED COMMODITY TRANSACTIONS Physical Renewable Energy Credits (RECs) associated with energy that has already been generated within the last 3 years. 7 Ibid. Exhibit 'A' 351 Energy Risk Management Policy Page 46 5/xx/21 Appendix E FORWARD HEDGING STRATEGIES AND PLANS Successful management of the price and volumetric risks faced by DME requires analysis, monitoring, and communication. Analysis of published weather forecasts and market price data serve as key inputs to models used for planning and ensures that the appropriate data is converted into useful information. Consistent with market risk policies defined herein and the risk limits defined in Appendix A, DME, in concert with the RMC, develops annual hedging strategies with underlying hedging plans as a means to manage the volumetric and price risks faced by the utility. A review of the status of current hedging plans will typically be a topic of discussion at RMC meetings. During the second quarter of the Fiscal Year, DME shall submit a confidential updated Hedging Strategy to the RMC for managing the key components of its energy portfolio (load, renewables, congestion risk and the DEC) for the upcoming three (3) full calendar years. Due to the complexity of the wholesale energy markets and the energy regulatory environment, the Hedging Strategy may require several iterations to the Hedging during each year due to market conditions. The RMC shall provide an update of its current Hedging Strategy to the PUB and Council as soon as practical after it has been approved. The Hedge Plan is a confidential strategy document and, if requested, will be presented to the PUB and City Council in closed session. Each Hedging Plan will: x Cover a clearly specified forward time period; x Explain the justification for the hedge (a general description of the resource mix and load that contribute to the open position for the specified time period, along with the Open Position tolerances for the specified forward time period); x Define a volumetric limit for hedge purchases and sales; x Document transaction types expected to be used to carry out the Hedging Plan; and x Proposed price triggers that will enable hedging activity within the Hedging Plan’s limits. DME may, at any time, request that the RMC consider changes to the current Hedging Strategy or to an individual Hedging Plan. Any approved changes to the Hedging Strategy or Hedging Plan shall be recorded in the RMC meeting minutes and an updated written Hedging Strategy or Hedging Plan document will be prepared as soon as practical incorporating such changes. All hedge strategy documents shall be confidential and not subject to the open record requirements due to the proprietary and commercial sensitivity of the plans. On occasion, it will become apparent to DME management that additional transactions to reshape expected monthly forward positions are necessary given changes in Exhibit 'A' 352 Energy Risk Management Policy Page 47 5/xx/21 generation forecasts, market conditions, and load forecasts. The DME General Manager may direct EMO staff to enter into and execute such transactions to rebalance the forward position. These transactions will be discussed in RMC meetings ahead of time if conditions allow or reported after the fact and documented in the minutes of the next RMC meeting. Changes to the Hedge Plan outside the annual review and approval of the Energy Risk Policy does not require approval of the PUB and City Council. However, all transactions undertaken will still comply with the authority limits contained in this Energy Risk Policy. Exhibit 'A' 353 Energy Risk Management Policy Page 48 5/xx/21 Appendix F 2021- 2022 DME HEDGE PLAN Hedge Plan Overview The management of price and volume risk associated with the obligation to provide reliable, economically priced wholesale electric energy to the customers of Denton Municipal Energy (“DME”) is one of the main responsibilities of DME. This responsibility is both a short term and long-term activity. Understanding the potential risks and their impacts along with executing hedging transactions (trades) that reduce or eliminate price risk while providing stable and predictable wholesale energy costs is the objective of the Hedge Plan. The Hedge plan is a comprehensive analysis and a tactical plan for managing the risks associated with the provision of energy and ancillary services required to meet the demands of the City of Denton, its residents and its businesses. Because the Hedge Plan lays out the specific risks and the plans to manage those risks into the future, it is a confidential document containing market sensitive information and is protected pursuant to Texas Government Code Section 551.086. The Hedge plan is however a component of the DME Risk Policy and this summary is included to describe the purpose and methods that will be utilized by the EMO to remove risk from the power supply portfolio. The Hedge Plan does not provide a comprehensive description of the day-to-day activities of the EMO, but rather provides a description of the risk reduction transactions that will be authorized for the EMO to execute. The intra-day optimization of positions for the benefit of customers and the required scheduling and interaction with ERCOT in its role as the transmission reliability entity of Texas will continue to be the primary focus of the EMO. The uncertainty of load and renewable energy generation in any temporal period coupled with the changing price for power at each delivery point (generation and load) every five minutes and the variability of natural gas price for the DEC make a single algorithm to determine hedge actions impossible. Consequently, de-risking the supply and demand component of DME’s positions must be accomplished by looking at each position independently. Maximizing value and minimizing price risk to customers for each position is manageable and quantifiable and as such the Hedge Plan will be executed on a position by position basis. The main positions include: Load; Renewable Energy Generation and associated basis or congestion positions; and the Denton Energy Center Position. This Hedge Plan sets forth the types of risk reducing transactions that are recommended, the detailed execution strategies and the optimization strategies that will be employed by DME through the EMO department. All recommendations are based upon the risk positions that DME owns and their relative risk is the current forward markets. Forward markets change daily and Exhibit 'A' 354 Energy Risk Management Policy Page 49 5/xx/21 on an intraday basis and the Hedge Plan is intended to permit sufficient flexibility to the EMO personnel, consistent with the Risk Management Policy, to react to these market changes. However, the Hedge Plan sets specific targeted volumes for hedging each position by certain dates and with an objective for each set of trades entered into to reduce risk. The DME middle office will monitor compliance with the mandated activities in the Hedge Plan and will report on the compliance status on a daily basis to the front office and DME management. Any violations of limits or requirements in the Hedge plan and Risk Policy will be reported to the Risk Committee along with any recommended mitigation and disciplinary action if required. Exhibit 'A' 355 Energy Risk Management Policy Page 50 5/xx/21 Appendix G NEW PRODUCT/MARKET INSTRUMENT APPROVAL CHECKLIST Checklist Items Primary Accountability Benefits Identify and describe the benefits of using the new product Front Office Risk Understand and document the payoff profile of the new product Front Office Identify and analyze credit risk of new product Middle Office Develop methodology for measuring credit risk of new product (mark-to- market, potential exposure, stress exposure. Middle Office Identify prospective counterparties for new product/instrument and determine credit suitability. Front Office & Middle Office Approve new product valuation methodology. Middle Office Determine if staff, systems, and management skill sets are sufficient for valuing and transacting new product. Middle Office Determine physical disposal or financial settlement requirements. Front Office & Back Office Determine stress test requirements for new product. Middle Office Define how stress testing must be performed (frequency, scope, independent source). Middle Office Financial Define the capital requirements (exchange margin or collateral) of the new product. Front Office & Middle Office Determine contract documentation required. Front Office & Middle Office Accounting, Tax, and Regulations Identify applicable U.S. and local regulatory restrictions for new product. Back Office/City Finance Determine regulatory compliance requirements, if any, for new product. Middle Office & Back Office/City Finance Exhibit 'A' 356 Energy Risk Management Policy Page 51 5/xx/21 Review accounting policies and approve proposed treatment. Back Office/City Finance Determine audit requirements. Back Office/City Finance Consider tax consequences of new product. Back Office/City Finance Policy Verify counterparty authority to enter into contract for new product. Middle Office Develop and implement monitoring and review procedures to ensure Policy compliance. Middle Office Define procedures and responsibilities for independent verification of positions and market valuation inputs (prices, and volatilities if applicable). Middle Office Determine impact on position/risk limits/hedge targets Middle Office Determine and define procedures for confirmation and reconciliation of new product. Middle Office Verify that all groups involved in new product transaction procedures can handle anticipated transaction volume. Middle Office Determine and define management reporting requirements. Middle Office Exhibit 'A' 357 Energy Risk Management Policy Page 52 5/xx/21 Appendix H ENERGY RISK MANAGEMENT POLICY ACKNOWLEDGEMENT FORM The purpose of this form is to confirm that City of Denton employees involved with the Energy Portfolio Management program have received, read, and understand DME’s Energy Risk Management Policy. Employee Name: _______________________________ Title: _______________________________ Department: _______________________________ Supervisor: _______________________________ My signature below confirms that I have received, read and understand DME’s Energy Risk Management Policy and appendices, and the City of Denton policies regarding employee conduct. I understand that my violation of the Risk Policy may result in disciplinary action that may include termination of my employment with the City of Denton. _______________________________ Signature of Employee _______________________________ Date Exhibit 'A' 358 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 21-953,Version:1 AGENDA CAPTION Consider adoption of an ordinance of the City of Denton,a Texas home-rule municipal corporation,authorizing the City Manager,or their designee,to execute a public works contract with Mountain Cascade of Texas,LLC, for the construction of the Hickory Creek Interceptor,Phase I and II Project;providing for the expenditure of funds therefor;and providing an effective date (IFB 7252 -awarded to Mountain Cascade of Texas,LLC,in the not-to-exceed amount of $7,534,784.25). City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™359 City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: May 25, 2021 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or their designee, to execute a public works contract with Mountain Cascade of Texas, LLC, for the construction of the Hickory Creek Interceptor, Phase I and II Project; providing for the expenditure of funds therefor; and providing an effective date (IFB 7252 – awarded to Mountain Cascade of Texas, LLC, in the not-to-exceed amount of $7,534,784.25). INFORMATION/BACKGROUND The Hickory Creek Interceptor Phase I and II Project is a wastewater project that, once completed, will increase the carrying capacity of the primary interceptor for the Hickory Creek Basin. The existing interceptor was installed in the 1980s and does not have adequate capacity to accommodate future growth projected to occur in the Hickory Creek Basin. Once constructed, the new wastewater interceptor line will be approximately 13,000 linear feet and will range in size from 36” to 54.” The City Council authorized the original Professional Services Agreement with Freese and Nichols, Inc. for the design of Hickory Creek Interceptor Phases I and II on June 13, 2016. As part of the Hickory Creek Interceptor Phases I and II project design process, an archeological survey was conducted at the project site in October 2020. Details about the archeological findings were shared through Informal Staff Report 2021-013, which was distributed with the March 5, 2021, Friday Report. The first amendment to the Professional Services Agreement with Freese and Nichols, Inc. was approved by Council on March 23, 2011, to provide additional design, environmental, and archeological services associated with the archeological findings. Updated project plans were needed to reflect the new archeological and environmental boundaries, and an extended design schedule has been necessary to conduct testing with the Texas Historical Commission. In addition to finalizing the Hickory Creek Interceptor Phases I and II project design, the first amendment included an archeological report to send to the Texas Historical Commission to ensure full compliance with the National Historic Preservation Act and the Antiquities Code of Texas. The remaining efforts associated with the archeological findings have been ongoing. The contract has established limits that will not be available to work until cleared by the Texas Historical Commission. The engineer’s opinion of probable construction cost (OPCC) for the Base Bid was $9,449,984. All of the bid prices fell within the engineer’s OPCC range. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 360 The total project cost of $7,534,784.25 for Hickory Creek Interceptor, Phase I and II Project construction consists of $7,175,985.00 total base bid for Alternate 1; and a $358,799.25 contingency. A five (5) percent contingency allowance, if any, is for the sole use of the City and will be subject to written authorization by the City’s Project Manager. Invitation for Bids was sent to 827 prospective suppliers, including 58 Denton firms, of this item. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. Eight (8) bids, with six (6) being responsive, were received. The lowest bid was submitted by Mountain Cascade of Texas, LLC. NIGP Code Used for Solicitation: 912 – Construction Services, General; 913 – Construction Services, Heavy; 968 – Public Works and Related Services Notifications sent for Solicitation sent in IonWave: 827 Number of Suppliers that viewed Solicitation in IonWave: 60 HUB-Historically Underutilized Business Invitations sent out: 70 SBE-Small Business Enterprise Invitations sent out: 305 Responses from Solicitation: 8 Responsive Bids: 6 PRIOR ACTION / REVIEW (COUNCIL, BOARDS, COMMISSIONS) On June 13, 2016, City Council approved the professional services agreement with Freese and Nichols, Inc. for the design of the Hickory Creek Interceptor Phases I and II Project in the not-to-exceed amount of $654,135.00 (Ordinance 2016-181). On March 23, 2021, City Council approved Amendment No. 1, to provide additional design, archeological and environmental services for the Hickory Creek Interceptor Phases I and II Project, in the not-to-exceed amount of $310,420.00 (Ordinance 21-490). On May 24, 2021, this item will be presented to the Public Utilities Board (PUB) for consideration. RECOMMENDATION Award a public works contract with Mountain Cascade of Texas, LLC, for the construction of the Hickory Creek Interceptor, Phase I and II Project, in a not-to-exceed amount of $7,534,784.25. PRINCIPAL PLACE OF BUSINESS Mountain Cascade of Texas, LLC Alvarado, TX ESTIMATED SCHEDULE OF PROJECT This project will be started upon approval with a completion date within 365 calendar days. FISCAL INFORMATION This project will be funded from Wastewater Certificate of Obligation Funds. 361 EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Bid Tabulation Exhibit 3: ISR 2021-013 Exhibit 4: LLC Members Exhibit 5: Presentation Exhibit 6: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Tracy L. Beck, 940-349-8925. Legal point of contact: Marcella Lunn at 940-349-8333. 362 Respondent's Business Name: Mountain Cascade of Texas Blue Star Utilities Western Municipal Construction of Texas, LLC Wilson Contractor Services, LLC Thalle Construction Company S.J. Louis Construction of Texas, Ltd. Principal Place of Business (City and State):Alvarado, TX Venus, TX Hickory Creek, TX Denton, TX Alvarado, TX Mansfield, TX Total Base Bid + Alternate 1 ("A") Amount $7,175,985.00 $7,392,908.00 $7,912,030.00 $7,774,467.00 $8,189,882.00 $8,273,398.50 Total Base Bid + Alternate 2 ("B") Amount $6,964,855.00 $7,279,935.00 $7,482,376.00 $7,855,540.28 $8,059,340.00 $8,062,525.50 Alternate 1 ("A") Contingency - 5%:$358,799.25 Total Contract Amount:$7,534,784.25 Exhibit 2 IFB 7252 - Bid Tabulation for Hickory Creek Interceptor I & II 363 Date: March 5, 2021 Report No. 2021-013 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Provide details on the archeological findings at the Hickory Creek Interceptor project site. EXECUTIVE SUMMARY: During the March 2, 2021 Capital Projects Update work session, Mayor Pro Tem Davis requested information on details associated with the archeological findings at the project site for the Hickory Creek Interceptor Project. BACKGROUND: As part of the Hickory Creek Interceptor project design, an archeological survey was conducted in October 2020 covering 2.46 miles of the proposed wastewater interceptor easement along Hickory Creek. The survey consisted of visual inspection and backhoe trenching of 24 trenches spaced approximately 476 feet apart and approx. 6.5-8.5 feet deep. Two archeological sites were recorded, one formerly known near Bonnie Brae but the area has expanded with this survey. The second is a newly found site near US 377. Both sites had similar characteristics. Specifically, they are deeply buried under more than a meter of alluvium (clay or silt left by flowing water) and both sites exhibit burned sandstone rock concentrations and mussel shell debris in a thick cultural sediment zone marked by calcium carbonate filaments. Both sites are of unknown eligibility as State Antiquities Landmarks until further testing is completed. To-date, one artifact has been collected, a Kent-like dart point (arrowhead). All remaining material at the sites has been field recorded instead of collected. 41DTN580 41DTN624 Site locations are depicted above 364 Date: March 5, 2021 Report No. 2021-013 Conclusion/Next Steps: An archeological survey found that the two sites contain indigenous pre-contact period features. As avoidance of the sites is not feasible for completion of the Hickory Creek Interceptor Project, formal eligibility testing for them has been recommended by the Texas Historical Commission (THC), the state board which oversees review and compliance for Section 106 of the National Historic Preservation Act (NRHP) and the Antiquities Code of Texas (ACT). Staff is currently working with a consultant to ensure necessary site protections and archeological discovery can occur while also proceeding with the selection of a contractor to construct the first two phases of the Hickory Creek Interceptor project. NORTHERN SITE SUMMARY A) Late Archaic/Woodland Period dart point on the surface of the exposed detention pond bank. A B C 365 Date: March 5, 2021 Report No. 2021-013 B) Mussel shell fragments and burned sandstone from Trench 2 C) Burned sandstone feature in floor of Trench 3 at a depth of 8.75 feet below surface. 366 Date: March 5, 2021 Report No. 2021-013 SOUTHERN SITE SUMMARY Four (4) trenches were tested positive (Trenches 12, 13, 14, 15). The main concentration of material at Site 41DN624 is located on the north site of the BNSF Railroad and US 377. Although the limits of the site are drawn to extend around Trench 15 on the south side of the roadway, investigators noted just two tabular burned sandstone rocks and just three mussel shell fragments in trench walls. D) Burned sandstone cluster Trench 12, buried 4.25 feet below surface. (14) D (12) E (13) (15) 367 Date: March 5, 2021 Report No. 2021-013 STAFF CONTACTS: Rachel Wood Deputy Director of Capital Projects (940) 349-7718 Rachel.Wood@cityofdenton.com Tracy Beck Construction Project Manager (940) 349-8925 Tracy.Beck@cityofdenton.com REQUESTOR: Mayor Pro Tem Davis STAFF TIME TO COMPLETE REPORT: One hour 368 369 Hickory Creek Interceptor Phases 1&2 Construction Contract Award ID 21-953 City Council 5/25/21 Project Manager: Tracy L. Beck, P.E. 370 PROJECT SCOPE & PURPOSE •Scope: Replacement of approximately 13,000 linear feet (2.46 miles) of a variety sizes of sewer main from 30, 36, 42, 48 and 54-inch along Hickory Creek between Fort Worth Drive (US 377) and I-35W. •Purpose: Increase the carrying capacity. The existing interceptor was installed in the 1980s and needs expanded capacity to accommodate future growth projected to occur in the Hickory Creek Basin. ID21-953 205/25/21 City Council 371 SCHEDULE ✓Advertise 03/14/21 ✓Design Amend#1 (PUB & Council) 03/22 & 03/23/21 ✓Pre-Bid Meeting 03/31/21 ✓Solicitation Closed, Bids Open 04/13/21 ❑Construction Award (PUB & Council) 05/24 & 05/25/21 ❑Complete Construction (12 mo.) Summer 2022* *Construction Completion may change pending Archeological Findings ID21-953 3 Archeological Site 41DTN580 Archeological Site 41DTN624 05/25/21 City Council 372 BID RESPONSE SUMMARY IFB* Ranking Company City Response Total (Base Bid) 1 Mountain Cascade of Texas Alvarado $7,175,985.00 2 Blue Star Utilities Venus $7,392,908.00 3 Western Municipal Construction of Texas, LLC.Hickory Creek $7,912,030.00 4 Wilson Contractor Services, LLC Denton $7,774,467.00 5 Thalle Construction Company Alvarado $8,189,882.00 6 S.J. Louis Construction of Texas, Ltd.Mansfield $8,273,398.50 OPCC Engineer Opinion of Probable Cost Freese and Nichols $9,449,984.00 05/25/21 City Council ID21-953 4 * IFB (Invitation for Bid) solicitation methodology was used to select lowest responsible bid (aka “Low Bid”) 373 STAFF RECOMMENDATION •Adoption of an ordinance awarding the construction contract for the Hickory Creek Interceptor Phase I & II Project to Mountain Cascade Construction of Texas. ID21-953 5 ✓Project funding is currently available ✓Project funding source: Wastewater Project CO Funds 05/25/21 City Council Contract Amount $ 7,175,985.00 5% Contingency $ 358,799.25 Total Not-to-Exceed Amount $ 7,534,784.25 374 Questions? ID21-953 605/25/21 City Council 375 ORDINANCE NO. ___________ AN ORDINANCE OF THE CITY OF DENTON, A TEXAS HOME-RULE MUNICIPAL CORPORATION, AUTHORIZING THE CITY MANAGER, OR THEIR DESIGNEE, TO EXECUTE A PUBLIC WORKS CONTRACT WITH MOUNTAIN CASCADE OF TEXAS, LLC, FOR THE CONSTRUCTION OF THE HICKORY CREEK INTERCEPTOR, PHASE I AND II PROJECT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (IFB 7252 – AWARDED TO MOUNTAIN CASCADE OF TEXAS, LLC, IN THE NOT-TO-EXCEED AMOUNT OF $7,534,784.25). WHEREAS, the City 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 and City ordinances; and WHEREAS, the City Manager, or a designated employee, has reviewed and recommended that the herein described bids are the lowest responsible bids for the materials, equipment, supplies, or services as shown in the “Bid Proposals” submitted therefore; 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 following competitive bids for the materials, equipment, supplies, or services, as described in the “Bid Invitations”, “Bid Proposals” or plans and specifications on file in the Office of the City’s Purchasing Agent filed according to the bid number assigned hereto, are hereby accepted and approved as being the lowest responsible bids: BID NUMBER VENDOR AMOUNT 7252 Mountain Cascade of Texas, LLC $7,534,784.25 SECTION 2. That the acceptance and approval of the above competitive bids shall not constitute a contract between the City and the person submitting the bid for such items, and agrees to purchase the materials, equipment, supplies, or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Bid Invitations, Bid Proposals, and related documents. SECTION 3. Should the City and the winning bidder(s) wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the bids, the City Manager, or his designated representative, is hereby authorized to execute a written contract, which shall be attached hereto, in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Bid Proposal and related documents and to extend that contract as determined to be advantageous to the City of Denton. 376 SECTION 4. The City Council of the City of Denton, hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under this ordinance to the City Manager of the City of Denton, 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. The motion to approve this ordinance was made by __________________________ and seconded by _________________________________. The ordinance was passed and approved by the following vote [___ - ___]: Aye Nay Abstain Absent Mayor Gerard Hudspeth: ______ ______ ______ ______ Vicki Byrd, District 1: ______ ______ ______ ______ Brian Beck, District 2: ______ ______ ______ ______ Jesse Davis, District 3: ______ ______ ______ ______ Alison Maguire, District 4: ______ ______ ______ ______ Deb Armintor, At Large Place 5: ______ ______ ______ ______ Paul Meltzer, At Large Place 6: ______ ______ ______ ______ PASSED AND APPROVED this the _______ day of ___________________________, 2021. __________________________________ GERARD HUDSPETH, MAYOR 377 ATTEST: ROSA RIOS, CITY SECRETARY BY: __________________________________ APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY BY: _________________________________ 378 Docusign City Council Transmittal Coversheet File Name Purchasing Contact City Council Target Date Piggy Back Option Contract Expiration Ordinance DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 IFB 7252 Hickory Creek Interceptor I and II Cori Power Not Applicable 379 00 52 43 - 1 Agreement Page 1 of 6 CITY OF DENTON IFB 7252 STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 SECTION 00 52 43 1 AGREEMENT 2 THIS AGREEMENT, authorized on ______________is made by and between the City of Denton, 3 a Texas home rule municipality, acting by and through its duly authorized City Manager, (“City”), 4 and Mountain Cascade of Texas, LLC., authorized to do business in Texas, acting by and through 5 its duly authorized representative, (“Contractor”). 6 City and Contractor, in consideration of the mutual covenants hereinafter set forth, agree as follows: 7 Article 1. WORK 8 Contractor shall complete all Work as specified or indicated in the Contract Documents for the 9 Project identified herein. 10 Article 2. PROJECT 11 The project for which the Work under the Contract Documents may be the whole or only a part is 12 generally described as follows: 13 Hickory Creek Interceptor Phase I & II 14 Contract No: 7252 15 Article 3. CONTRACT PRICE 16 City agrees to pay Contractor for performance of the Work in accordance with the Contract 17 Documents an amount, in current funds, of Seven Million, One Hundred Seventy-Five Thousand, 18 Nine Hundred Eighty-Five Dollars and 00/100 Cents ($7,175,985.00). At the sole option of the 19 City, five (5) percent contingency in the amount of Three Hundred Fifty-Eight thousand, Seven 20 Hundred Ninety-Nine Dollars and 25/100 cents ($358,799.25) may be used for a total not-to-21 exceed amount of Seven Million, Five Hundred Thirty-Four Thousand, Seven Hundred Eighty-22 Four Dollars and 25/100 cents ($7,534,784.25). 23 24 Article 4. CONTRACT TIME 25 4.1 Final Acceptance. 26 The Work will be complete for Final Acceptance within 365 days after the date when the 27 Contract Time commences to run, as provided in Paragraph 2.03 of the General Conditions, 28 plus any extension thereof allowed in accordance with Article 12 of the General Conditions. 29 4.2 Liquidated Damages 30 Contractor recognizes that time is of the essence for completion of Milestones, if any, and 31 to achieve Final Acceptance of the Work and City will suffer financial loss if the Work is 32 not completed within the time(s) specified in Paragraph 4.1 above. The Contractor also 33 recognizes the delays, expense and difficulties involved in proving in a legal proceeding, 34 the actual loss suffered by the City if the Work is not completed on time. Accordingly, 35 instead of requiring any such proof, Contractor agrees that as liquidated damages for delay 36 (but not as a penalty), Contractor shall pay City two thousand five hundred Dollars 37 ($2,500.00) for each day that expires after the time specified in Paragraph 4.1 for Final 38 Acceptance until the City issues the Final Letter of Acceptance. 39 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 380 00 52 43 - 2 Agreement Page 2 of 6 CITY OF DENTON IFB 7252 STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 Article 5. CONTRACT DOCUMENTS 1 5.1 CONTENTS: 2 A. The Contract Documents which comprise the entire agreement between City and 3 Contractor concerning the Work consist of the following: 4 1. This Agreement 5 2. Attachments to this Agreement: 6 a. Bid Form 7 1) Proposal Form 8 2) Vendor Compliance to State Law Non-Resident Bidder 9 b. Current Prevailing Wage Rate Table 10 c. Worker’s Compensation Affidavit 11 d. General Conditions. 12 e. Supplementary Conditions. 13 3. The following located in File 7252 at: 14 15 https://lfpubweb.cityofdenton.com/MaterialsManagement/Browse.aspx?startid=1916 &row=1&dbid=0: 17 18 a. Specifications described in the Table of Contents of the Project’s Contract 19 Documents. 20 b. North Central Texas Council of Governments Standard Specifications for Public 21 Works Construction – Fourth Edition, Divisions 200-800, and as amended by 22 City, and described in the Table of Contents of the Project’s Contract Documents. 23 c. Drawings. 24 d. Addenda. 25 e. Documentation submitted by Contractor prior to Notice of Award. 26 4. The following which shall be issued after the Effective Date and delivered to the City 27 within ten (10) days of the Effective Date and before beginning Work: 28 a. Payment Bond 29 b. Performance Bond 30 c. Maintenance Bond 31 d. Power of Attorney for the Bonds 32 e. Form 1295 – Certificate of Interested Parties (email to purchasing) 33 f. Insurance Certificate 34 5. The following which may be delivered or issued after the Effective Date and, if 35 issued, become an incorporated part of the Contract Documents: 36 a. Notice to Proceed. 37 b. Field Orders. 38 c. Change Orders. 39 d. Letter of Final Acceptance. 40 41 42 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 381 00 52 43 - 3 Agreement Page 3 of 6 CITY OF DENTON IFB 7252 STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 Article 6. INDEMNIFICATION 1 6.1 Contractor covenants and agrees to indemnify, hold harmless and defend, at its own 2 expense, the city, its officers, servants and employees, from and against any and all 3 claims arising out of, or alleged to arise out of, the work and services to be performed 4 by the contractor, its officers, agents, employees, subcontractors, licensees or invitees 5 under this contract. This indemnification provision is specifically intended to operate 6 and be effective even if it is alleged or proven that all or some of the damages being 7 sought were caused, in whole or in part, by any act, omission or negligence of the city. 8 This indemnity provision is intended to include, without limitation, indemnity for any 9 and all costs, expenses and legal fees incurred by the city in defending against such 10 claims and causes of actions. 11 12 6.2 Contractor covenants and agrees to indemnify and hold harmless, at its own expense, 13 the city, its officers, servants and employees, from and against any and all loss of, 14 damage to, or destruction of, property of the city, arising out of, or alleged to arise out 15 of, the work and services to be performed by the contractor, its officers, agents, 16 employees, subcontractors, licensees or invitees under this contract. This 17 indemnification provision is specifically intended to operate and be effective even if it is 18 alleged or proven that all or some of the damages being sought were caused, in whole or 19 in part, by any act, omission or negligence of the city. 20 21 Article 7. MISCELLANEOUS 22 7.1 Terms. 23 Terms used in this Agreement which are defined in Article 1 of the General Conditions will 24 have the meanings indicated in the General Conditions. 25 7.2 Assignment of Contract. 26 This Agreement, including all of the Contract Documents may not be assigned by the 27 Contractor without the advanced express written consent of the City. 28 7.3 Successors and Assigns. 29 City and Contractor each binds itself, its partners, successors, assigns and legal 30 representatives to the other party hereto, in respect to all covenants, agreements and 31 obligations contained in the Contract Documents. 32 7.4 Severability. 33 Any provision or part of the Contract Documents held to be unconstitutional, void or 34 unenforceable by a court of competent jurisdiction shall be deemed stricken, and all 35 remaining provisions shall continue to be valid and binding upon City and Contractor. 36 7.5 Governing Law and Venue. 37 This Agreement, including all of the Contract Documents is performable in the State of 38 Texas. Venue shall be Denton County, Texas, or the United States District Court for the 39 Eastern District of Texas, Sherman Division. 40 7.6 Authority to Sign. 41 Contractor shall attach evidence of authority to sign Agreement if signed by someone other 42 than the duly authorized signatory of the Contractor. 43 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 382 00 52 43 - 4 Agreement Page 4 of 6 CITY OF DENTON IFB 7252 STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 1 7.7 Prohibition On Contracts With Companies Boycotting Israel. 2 Contractor acknowledges that in accordance with Chapter 2270 of the Texas Government 3 Code, the City is prohibited from entering into a contract with a company for goods or 4 services unless the contract contains a written verification from the company that it: (1) 5 does not boycott Israel; and (2) will not boycott Israel during the term of the contract. 6 The terms “boycott Israel” and “company” shall have the meanings ascribed to those terms 7 in Section 808.001 of the Texas Government Code. By signing this contract, Contractor 8 certifies that Contractor’s signature provides written verification to the City that 9 Contractor: (1) does not boycott Israel; and (2) will not boycott Israel during the term of 10 the contract. 11 12 7.8 Immigration Nationality Act. 13 Contractor shall verify the identity and employment eligibility of its employees who perform 14 work under this Agreement, including completing the Employment Eligibility Verification 15 Form (I-9). Upon request by City, Contractor shall provide City with copies of all I-9 forms 16 and supporting eligibility documentation for each employee who performs work under this 17 Agreement. Contractor shall adhere to all Federal and State laws as well as establish 18 appropriate procedures and controls so that no services will be performed by any Contractor 19 employee who is not legally eligible to perform such services. CONTRACTOR SHALL 20 INDEMNIFY CITY AND HOLD CITY HARMLESS FROM ANY PENALTIES, 21 LIABILITIES, OR LOSSES DUE TO VIOLATIONS OF THIS PARAGRAPH BY 22 CONTRACTOR, CONTRACTOR’S EMPLOYEES, SUBCONTRACTORS, 23 AGENTS, OR LICENSEES. City, upon written notice to Contractor, shall have the right 24 to immediately terminate this Agreement for violations of this provision by Contractor. 25 26 7.9 No Third-Party Beneficiaries. 27 This Agreement gives no rights or benefits to anyone other than the City and the Contractor 28 and there are no third-party beneficiaries. 29 30 31 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 383 00 52 43 - 5 Agreement Page 5 of 6 CITY OF DENTON IFB 7252 STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 7.10 No Cause of Action Against Engineer. 1 Contractor, its subcontractors and equipment and materials suppliers on the Project or their 2 sureties, shall maintain no direct action against the Engineer, its officers, employees, and 3 subcontractors, for any claim arising out of, in connection with, or resulting from the engineering 4 services performed. Only the City will be the beneficiary of any undertaking by the Engineer. 5 The presence or duties of the Engineer's personnel at a construction site, whether as on-site 6 representatives or otherwise, do not make the Engineer or its personnel in any way 7 responsible for those duties that belong to the City and/or the City's Contractors or other 8 entities, and do not relieve the Contractors or any other entity of their obligations, duties, and 9 responsibilities, including, but not limited to, all construction methods, means, techniques, 10 sequences, and procedures necessary for coordinating and completing all portions of the 11 construction work in accordance with the Contract Documents and any health or safety 12 precautions required by such construction work. The Engineer and its personnel have no 13 authority to exercise any control over any construction contractor or other entity or their 14 employees in connection with their work or any health or safety precautions. 15 16 SIGNATURE PAGE TO FOLLOW 17 18 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 384 00 52 43 - 6 Agreement Page 6 of 6 CITY OF DENTON IFB 7252 STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 IN WITNESS WHEREOF, City and Contractor have each executed this Agreement to be effective 1 as of the date subscribed by the City’s City Manager, or their designee (“Effective Date”). 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 ATTEST: 37 ROSA RIOS, CITY SECRETARY 38 39 40 _______________________________________ 41 42 43 APPROVED AS TO LEGAL FORM: 44 AARON LEAL, CITY ATTORNEY 45 46 _______________________________________ 47 CITY OF DENTON BY: ___________________________________ INTERIM CITY MANAGER CONTRACTOR MOUNTAIN CASCADE OF TEXAS BY: ___________________________________ AUTHORIZED AGENT _______________________________________ NAME _______________________________________ TITLE _______________________________________ PHONE NUMBER _______________________________________ EMAIL ADDRESS THIS AGREEMENT HAS BEEN BOTH REVIEWED AND APPROVED as to financial and operational obligations and business terms. _______________ ________________ SIGNATURE PRINTED NAME __________________________________ TITLE __________________________________ DEPARTMENT DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 Andrew McCulloch Vice-President 925-525-2920 AMcCulloch@mountaincascade.com Rebecca Diviney Director of Capital Projects/City Engineer Capital Projects - Engineering 385 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6386 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6387 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6388 From:Mountain Cascade of Texas, LLC 11729 E. FM 917 Alvarado, TX 76009 Hickory Creek Interceptor Phase I & II 7252 DTN16385 Item No. Spec. Section No.Description of work UOM BID QTY Unit Price Extended Price 1 103.3 Mobilization and Demobilization LS 1 200,000.00$ $200,000.00 2 201 Storm Water Pollution Prevention Plan LS 1 10,000.00$ $10,000.00 3 107.2 Project Signs EA 2 500.00$ $1,000.00 4 808 Traffic Control Plan and Barricades, Warnings & Signs LS 1 15,000.00$ $15,000.00 5 01 35 13 Railroad Coordination LS 1 60,000.00$ $60,000.00 Subtotal:$286,000.00 6 31 10 00 General Site Preparation LS 1 $25,000.00 $25,000.00 7 33 05 23.33 Jack, Bore, or Tunnel (Steel Casing)(72")LF 399 $1,500.00 $598,500.00 8 33 05 23.33 Jack, Bore, or Tunnel (Steel Casing)(60")LF 356 $1,375.00 $489,500.00 9 33 05 23.33 Jack, Bore, or Tunnel (Steel Casing)(54")LF 164 $1,230.00 $201,720.00 10 33 05 23.33 Open Cut (Steel Casing)(54")LF 350 $760.00 $266,000.00 11 32 23 23.34 Flowable Fill CY 82 $140.00 $11,480.00 12 33 01 50 6' Diam. Concrete Manhole (0'-6')EA 23 $16,000.00 $368,000.00 13 33 01 50 6' Diam. Concrete Drop Manhole (0'-6')EA 4 $23,000.00 $92,000.00 14 33 01 50 Additional Concrete 6' Manhole Depth (Over Initial 6')VF 285 $250.00 $71,250.00 15 33 01 50 8' Diam. Concrete Manhole (0'-6')EA 2 $25,000.00 $50,000.00 16 33 01 50 Additional Concrete 8' Manhole Depth (Over Initial 6')VF 24 $750.00 $18,000.00 17 509.5 Siphon Crossing LS 1 $650,000.00 $650,000.00 18 502.1-A Manhole Lining VF 483 $205.00 $99,015.00 19 SS01 Cut and Plug Existing Sanitary Sewer Line EA 3 $3,500.00 $10,500.00 20 02 41 14 Abandon Sanitary Sewer Manhole EA 27 $1,600.00 $43,200.00 21 02 41 14 Remove Existing Sanitary Sewer Manhole EA 1 $2,000.00 $2,000.00 22 601.2 Bypass Pumping LS 1 $40,000.00 $40,000.00 23 33 01 30 CCTV Proposed Sanitary Sewer Pipe LF 12,750 $2.00 $25,500.00 24 202.6 Hydromulch Seeding SY 71,080 $1.50 $106,620.00 25 33 05 05 Excavation Protection (Trench Safety)LF 12,750 $1.00 $12,750.00 26 03 11 00 Concrete Pavement Removal and Replacement LF 222 $170.00 $37,740.00 27 302.1/203.1 Asphalt Pavement Removal and Replacement LF 28 $125.00 $3,500.00 28 801.4/203.1 Barbwire Fence Removal and Replacement LF 1,460 $9.00 $13,140.00 29 801.4 Remove Aerial Crossing LS 1 $6,000.00 $6,000.00 Subtotal:$3,241,415.00 $3,527,415.00 ENG/PMO: City of Denton - Capital Projects 901-A Texas Street Denton, TX 76209 Attn: Cori Power/Purchasing Dept. PROPOSAL FORM: IFB: BIDDERS APPLICATION - UNIT PRICE BID GENERAL SANITARY SEWER IMPROVEMENTS TOTAL BASE BID AMOUNT: DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 389 Item No. Spec. Section No.Description of work UOM BID QTY Unit Price Extended Price A1-1 33 05 01.13 54" PVC Sanitary Sewer Pipe, ASTM F679 (PS46)LF 1,703 $460.00 $783,380.00 A1-2 33 05 01.13 42" PVC Sanitary Sewer Pipe, ASTM F679 (PS46)LF 4,634 $300.00 $1,390,200.00 A1-3 33 05 01.13 36" PVC Sanitary Sewer Pipe, ASTM F679 (PS46)LF 6,413 $230.00 $1,474,990.00 Subtotal:$3,648,570.00 $7,175,985.00 A2-1 33 31 13.13 54" FRP Sanitary Sewer Pipe SN46 LF 1,703 380.00$ $647,140.00 A2-2 33 31 13.13 42" FRP Saniary Sewer Pipe SN46 LF 4,634 270.00$ $1,251,180.00 A2-3 33 31 13.13 36" FRP Sanitary Sewer Pipe SN46 LF 6,413 240.00$ $1,539,120.00 Subtotal:$3,437,440.00 $6,964,855.00 $7,175,985.00 $6,964,855.00 TOTAL BASE BID+ALTERNATE A: ALTERNATE A* GENERAL TOTAL ALTERNATE 1 BID AMOUNT: TOTAL BASE BID+ALTERNATE B: TOTAL ALTERNATE 2 BID AMOUNT: ALTERNATE B* GENERAL * - Contractor to submit a bid for each alternate DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 390 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6391 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6392 "General Decision Number: TX20210025 01/01/2021 Superseded General Decision Number: TX20200025 State: Texas Construction Type: Highway Counties: Archer, Callahan, Clay, Collin, Dallas, Delta, Denton, Ellis, Grayson, Hunt, Johnson, Jones, Kaufman, Parker, Rockwall, Tarrant and Wise Counties in Texas. HIGHWAY CONSTRUCTION PROJECTS (excluding tunnels, building structures in rest area projects & railroad construction; bascule, suspension & spandrel arch bridges designed for commercial navigation, bridges involving marine construction; and other major bridges). Note: Under Executive Order (EO) 13658, an hourly minimum wage of $10.95 for calendar year 2021 applies to all contracts subject to the Davis-Bacon Act for which the contract is awarded (and any solicitation was issued) on or after January 1, 2015. If this contract is covered by the EO, the contractor must pay all workers in any classification listed on this wage determination at least $10.95 per hour (or the applicable wage rate listed on this wage determination, if it is higher) for all hours spent performing on the contract in calendar year 2021. If this contract is covered by the EO and a classification considered necessary for performance of work on the contract does not appear on this wage determination, the contractor must pay workers in that classification at least the wage rate determined through the conformance process set forth in 29 CFR 5.5(a)(1)(ii) (or the EO minimum wage rate, if it is higher than the conformed wage rate). The EO minimum wage rate will be adjusted annually. Please note that this EO applies to the above-mentioned types of contracts entered into by the federal government that are subject to the Davis-Bacon Act itself, but it does not apply to contracts subject only to the Davis-Bacon Related Acts, including those set forth at 29 CFR 5.1(a)(2)-(60). Additional information on contractor requirements and worker protections under the EO is available at www.dol.gov/whd/govcontracts. Modification Number Publication Date 0 01/01/2021 * SUTX2011-007 08/03/2011 Rates Fringes CONCRETE FINISHER (Paving and Structures)......................$ 14.12 ELECTRICIAN......................$ 19.80 Page 1 of 5 4/23/2021https://beta.sam.gov/wage-determination/TX20210025/0?index=wd&is_active=true&date_... DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 393 FORM BUILDER/FORM SETTER Paving & Curb...............$ 13.16 Structures..................$ 13.84 LABORER Asphalt Raker...............$ 12.69 Flagger.....................$ 10.06 Laborer, Common.............$ 10.72 Laborer, Utility............$ 12.32 Pipelayer...................$ 13.24 Work Zone Barricade Servicer....................$ 11.68 POWER EQUIPMENT OPERATOR: Asphalt Distributor.........$ 15.32 Asphalt Paving Machine......$ 13.99 Broom or Sweeper............$ 11.74 Concrete Pavement Finishing Machine...........$ 16.05 Concrete Saw................$ 14.48 Crane Operator, Lattice Boom 80 Tons or Less........$ 17.27 Crane Operator, Lattice Boom over 80 Tons...........$ 20.52 Crane, Hydraulic 80 Tons or Less.....................$ 18.12 Crawler Tractor.............$ 14.07 Excavator, 50,000 pounds or less.....................$ 17.19 Excavator, over 50,000 pounds......................$ 16.99 Foundation Drill , Truck Mounted.....................$ 21.07 Foundation Drill, Crawler Mounted.....................$ 17.99 Front End Loader 3 CY or Less........................$ 13.69 Front End Loader, over 3 CY.$ 14.72 Loader/Backhoe..............$ 15.18 Mechanic....................$ 17.68 Milling Machine.............$ 14.32 Motor Grader, Fine Grade....$ 17.19 Motor Grader, Rough.........$ 16.02 Pavement Marking Machine....$ 13.63 Reclaimer/Pulverizer........$ 11.01 Roller, Asphalt.............$ 13.08 Roller, Other...............$ 11.51 Scraper.....................$ 12.96 Small Slipform Machine......$ 15.96 Spreader Box................$ 14.73 Servicer.........................$ 14.58 Steel Worker (Reinforcing).......$ 16.18 TRUCK DRIVER Lowboy-Float................$ 16.24 Off Road Hauler.............$ 12.25 Single Axle.................$ 12.31 Single or Tandem Axle Dump Truck.......................$ 12.62 Tandem Axle Tractor with Semi Trailer................$ 12.86 Page 2 of 5 4/23/2021https://beta.sam.gov/wage-determination/TX20210025/0?index=wd&is_active=true&date_... DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 394 Transit-Mix.................$ 14.14 WELDER...........................$ 14.84 ---------------------------------------------------------------- WELDERS - Receive rate prescribed for craft performing operation to which welding is incidental. ================================================================ Note: Executive Order (EO) 13706, Establishing Paid Sick Leave for Federal Contractors applies to all contracts subject to the Davis-Bacon Act for which the contract is awarded (and any solicitation was issued) on or after January 1, 2017. If this contract is covered by the EO, the contractor must provide employees with 1 hour of paid sick leave for every 30 hours they work, up to 56 hours of paid sick leave each year. Employees must be permitted to use paid sick leave for their own illness, injury or other health-related needs, including preventive care; to assist a family member (or person who is like family to the employee) who is ill, injured, or has other health-related needs, including preventive care; or for reasons resulting from, or to assist a family member (or person who is like family to the employee) who is a victim of, domestic violence, sexual assault, or stalking. Additional information on contractor requirements and worker protections under the EO is available at www.dol.gov/whd/govcontracts. Unlisted classifications needed for work not included within the scope of the classifications listed may be added after award only as provided in the labor standards contract clauses (29CFR 5.5 (a) (1) (ii)). ---------------------------------------------------------------- The body of each wage determination lists the classification and wage rates that have been found to be prevailing for the cited type(s) of construction in the area covered by the wage determination. The classifications are listed in alphabetical order of ""identifiers"" that indicate whether the particular rate is a union rate (current union negotiated rate for local), a survey rate (weighted average rate) or a union average rate (weighted union average rate). Union Rate Identifiers A four letter classification abbreviation identifier enclosed in dotted lines beginning with characters other than ""SU"" or ""UAVG"" denotes that the union classification and rate were prevailing for that classification in the survey. Example: PLUM0198-005 07/01/2014. PLUM is an abbreviation identifier of the union which prevailed in the survey for this classification, which in this example would be Plumbers. 0198 indicates the local union number or district council number where applicable, i.e., Plumbers Local 0198. The next number, 005 in the example, is an internal number used in processing the wage determination. 07/01/2014 is the effective date of the most current negotiated rate, which in this example is July 1, 2014. Union prevailing wage rates are updated to reflect all rate changes in the collective bargaining agreement (CBA) governing Page 3 of 5 4/23/2021https://beta.sam.gov/wage-determination/TX20210025/0?index=wd&is_active=true&date_... DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 395 this classification and rate. Survey Rate Identifiers Classifications listed under the ""SU"" identifier indicate that no one rate prevailed for this classification in the survey and the published rate is derived by computing a weighted average rate based on all the rates reported in the survey for that classification. As this weighted average rate includes all rates reported in the survey, it may include both union and non-union rates. Example: SULA2012-007 5/13/2014. SU indicates the rates are survey rates based on a weighted average calculation of rates and are not majority rates. LA indicates the State of Louisiana. 2012 is the year of survey on which these classifications and rates are based. The next number, 007 in the example, is an internal number used in producing the wage determination. 5/13/2014 indicates the survey completion date for the classifications and rates under that identifier. Survey wage rates are not updated and remain in effect until a new survey is conducted. Union Average Rate Identifiers Classification(s) listed under the UAVG identifier indicate that no single majority rate prevailed for those classifications; however, 100% of the data reported for the classifications was union data. EXAMPLE: UAVG-OH-0010 08/29/2014. UAVG indicates that the rate is a weighted union average rate. OH indicates the state. The next number, 0010 in the example, is an internal number used in producing the wage determination. 08/29/2014 indicates the survey completion date for the classifications and rates under that identifier. A UAVG rate will be updated once a year, usually in January of each year, to reflect a weighted average of the current negotiated/CBA rate of the union locals from which the rate is based. ---------------------------------------------------------------- WAGE DETERMINATION APPEALS PROCESS 1.) Has there been an initial decision in the matter? This can be: * an existing published wage determination * a survey underlying a wage determination * a Wage and Hour Division letter setting forth a position on a wage determination matter * a conformance (additional classification and rate) ruling On survey related matters, initial contact, including requests for summaries of surveys, should be with the Wage and Hour Regional Office for the area in which the survey was conducted because those Regional Offices have responsibility for the Davis-Bacon survey program. If the response from this initial contact is not satisfactory, then the process described in 2.) and 3.) should be followed. With regard to any other matter not yet ripe for the formal process described here, initial contact should be with the Page 4 of 5 4/23/2021https://beta.sam.gov/wage-determination/TX20210025/0?index=wd&is_active=true&date_... DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 396 Branch of Construction Wage Determinations. Write to: Branch of Construction Wage Determinations Wage and Hour Division U.S. Department of Labor 200 Constitution Avenue, N.W. Washington, DC 20210 2.) If the answer to the question in 1.) is yes, then an interested party (those affected by the action) can request review and reconsideration from the Wage and Hour Administrator (See 29 CFR Part 1.8 and 29 CFR Part 7). Write to: Wage and Hour Administrator U.S. Department of Labor 200 Constitution Avenue, N.W. Washington, DC 20210 The request should be accompanied by a full statement of the interested party's position and by any information (wage payment data, project description, area practice material, etc.) that the requestor considers relevant to the issue. 3.) If the decision of the Administrator is not favorable, an interested party may appeal directly to the Administrative Review Board (formerly the Wage Appeals Board). Write to: Administrative Review Board U.S. Department of Labor 200 Constitution Avenue, N.W. Washington, DC 20210 4.) All decisions by the Administrative Review Board are final. ================================================================ END OF GENERAL DECISION " Page 5 of 5 4/23/2021https://beta.sam.gov/wage-determination/TX20210025/0?index=wd&is_active=true&date_... DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 397 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 398 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 399 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 400 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 401 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6402 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6403 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 STANDARD GENERAL CONDITIONS OF THE CONSTRUCTION CONTRACT DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 404 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 STANDARD GENERAL CONDITIONS OF THE CONSTRUCTION CONTRACT TABLE OF CONTENTS Page Article 1 – Definitions and Terminology .......................................................................................................... 1 1.01 Defined Terms............................................................................................................................... 1 1.02 Terminology .................................................................................................................................. 6 Article 2 – Preliminary Matters ......................................................................................................................... 7 2.01 Copies of Documents .................................................................................................................... 7 2.02 Commencement of Contract Time; Notice to Proceed ................................................................ 7 2.03 Starting the Work .......................................................................................................................... 7 2.04 Before Starting Construction ........................................................................................................ 7 2.05 Preconstruction Conference.......................................................................................................... 8 2.06 Public Meeting .............................................................................................................................. 8 2.07 Initial Acceptance of Schedules.................................................................................................... 8 2.08 Electronic Submittals.................................................................................................................... 8 Article 3 – Contract Documents: Intent, Amending, Reuse ............................................................................ 8 3.01 Intent.............................................................................................................................................. 8 3.02 Reference Standards...................................................................................................................... 9 3.03 Reporting and Resolving Discrepancies....................................................................................... 9 3.04 Amending and Supplementing Contract Documents................................................................. 10 3.05 Reuse of Documents ................................................................................................................... 10 3.06 Electronic Data............................................................................................................................ 11 Article 4 – Availability of Lands; Subsurface and Physical Conditions; Hazardous Environmental Conditions; Reference Points........................................................................................................... 11 4.01 Availability of Lands .................................................................................................................. 11 4.02 Subsurface and Physical Conditions .......................................................................................... 12 4.03 Differing Subsurface or Physical Conditions ............................................................................. 12 4.04 Underground Facilities ............................................................................................................... 13 4.05 Hazardous Environmental Condition at Site .............................................................................. 14 Article 5 – Bonds and Insurance ..................................................................................................................... 15 5.01 Licensed Sureties and Insurers ................................................................................................... 15 5.02 Performance, Payment, and Maintenance Bonds....................................................................... 15 5.03 Certificates of Insurance ............................................................................................................. 16 5.04 Contractor’s Insurance ................................................................................................................ 18 5.05 Acceptance of Bonds and Insurance; Option to Replace........................................................... 19 Article 6 – Contractor’s Responsibilities ........................................................................................................ 19 6.01 Supervision and Superintendence............................................................................................... 19 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 405 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 6.02 Labor; Working Hours ................................................................................................................ 19 6.03 Services, Materials, and Equipment ........................................................................................... 20 6.04 Project Schedule.......................................................................................................................... 20 6.05 Substitutes and “Or-Equals” ....................................................................................................... 21 6.06 Concerning Subcontractors, Suppliers, and Others.................................................................... 23 6.07 Wage Rates.................................................................................................................................. 24 6.08 Patent Fees and Royalties ........................................................................................................... 25 6.09 Permits and Utilities.................................................................................................................... 26 6.10 Laws and Regulations ................................................................................................................. 26 6.11 Taxes ........................................................................................................................................... 27 6.12 Use of Site and Other Areas ....................................................................................................... 27 6.13 Record Documents...................................................................................................................... 28 6.14 Safety and Protection .................................................................................................................. 29 6.15 Safety Representative.................................................................................................................. 29 6.16 Hazard Communication Programs ............................................................................................. 30 6.17 Emergencies and/or Rectification............................................................................................... 30 6.18 Submittals.................................................................................................................................... 30 6.19 Continuing the Work................................................................................................................... 31 6.20 Contractor’s General Warranty and Guarantee .......................................................................... 32 6.21 Indemnification ......................................................................................................................... 32 6.22 Delegation of Professional Design Services .............................................................................. 33 6.23 Right to Audit.............................................................................................................................. 34 6.24 Nondiscrimination....................................................................................................................... 34 Article 7 – Other Work at the Site................................................................................................................... 34 7.01 Related Work at Site ................................................................................................................... 34 7.02 Coordination................................................................................................................................ 35 Article 8 – City’s Responsibilities................................................................................................................... 35 8.01 Communications to Contractor................................................................................................... 35 8.02 Furnish Data ................................................................................................................................ 35 8.03 Pay When Due ............................................................................................................................ 35 8.04 Lands and Easements; Reports and Tests................................................................................... 36 8.05 Change Orders............................................................................................................................. 36 8.06 Inspections, Tests, and Approvals .............................................................................................. 36 8.07 Limitations on City’s Responsibilities ....................................................................................... 36 8.08 Undisclosed Hazardous Environmental Condition .................................................................... 36 8.09 Compliance with Safety Program............................................................................................... 36 Article 9 – City’s Observation Status During Construction ........................................................................... 36 9.01 City’s Project Manager ……...................................................................................................... 36 9.02 Visits to Site ................................................................................................................................ 37 9.03 Authorized Variations in Work .................................................................................................. 37 9.04 Rejecting Defective Work .......................................................................................................... 37 9.05 Determinations for Work Performed .......................................................................................... 37 9.06 Decisions on Requirements of Contract Documents and Acceptability of Work ..................... 38 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 406 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 Article 10 – Changes in the Work; Claims; Extra Work ................................................................................ 38 10.01 Authorized Changes in the Work ............................................................................................... 38 10.02 Unauthorized Changes in the Work ........................................................................................... 38 10.03 Execution of Change Orders....................................................................................................... 38 10.04 Extra Work .................................................................................................................................. 38 10.05 Notification to Surety.................................................................................................................. 39 10.06 Contract Claims Process ............................................................................................................. 39 Article 11 – Cost of the Work; Allowances; Unit Price Work; Plans Quantity Measurement...................... 40 11.01 Cost of the Work ......................................................................................................................... 40 11.02 Allowances .................................................................................................................................. 43 11.03 Unit Price Work .......................................................................................................................... 43 11.04 Plans Quantity Measurement ...................................................................................................... 45 Article 12 – Change of Contract Price; Change of Contract Time................................................................. 45 12.01 Change of Contract Price ............................................................................................................ 45 12.02 Change of Contract Time............................................................................................................ 46 12.03 Delays .......................................................................................................................................... 47 Article 13 – Tests and Inspections; Correction, Removal or Acceptance of Defective Work ...................... 47 13.01 Notice of Defects ........................................................................................................................ 47 13.02 Access to Work ........................................................................................................................... 47 13.03 Tests and Inspections .................................................................................................................. 47 13.04 Uncovering Work........................................................................................................................ 49 13.05 City May Stop the Work ............................................................................................................. 49 13.06 Correction or Removal of Defective Work ................................................................................ 49 13.07 Correction Period ........................................................................................................................ 50 13.08 Acceptance of Defective Work................................................................................................... 51 13.09 City May Correct Defective Work ............................................................................................. 51 Article 14 – Payments to Contractor and Completion .................................................................................... 52 14.01 Schedule of Values...................................................................................................................... 52 14.02 Progress Payments ...................................................................................................................... 52 14.03 Contractor’s Warranty of Title ................................................................................................... 54 14.04 Partial Utilization ........................................................................................................................ 54 14.05 Final Inspection ........................................................................................................................... 55 14.06 Final Acceptance......................................................................................................................... 55 14.07 Final Payment.............................................................................................................................. 55 14.08 Final Completion Delayed and Partial Retainage Release ........................................................ 56 14.09 Waiver of Claims ........................................................................................................................ 56 Article 15 – Suspension of Work and Termination ........................................................................................ 57 15.01 City May Suspend Work............................................................................................................. 57 15.02 City May Terminate for Cause ................................................................................................... 57 15.03 City May Terminate For Convenience ....................................................................................... 59 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 407 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 Article 16 – Dispute Resolution ...................................................................................................................... 61 16.01 Methods and Procedures ............................................................................................................. 61 Article 17 – Miscellaneous .............................................................................................................................. 62 17.01 Giving Notice .............................................................................................................................. 62 17.02 Computation of Times ................................................................................................................ 62 17.03 Cumulative Remedies ................................................................................................................. 62 17.04 Survival of Obligations ............................................................................................................... 63 17.05 Headings...................................................................................................................................... 63 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 408 00 72 00 - 1 GENERAL CONDITIONS Page 1 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 ARTICLE 1 – DEFINITIONS AND TERMINOLOGY 1.01 Defined Terms A. Wherever used in these General Conditions or in other Contract Documents, the terms listed below have the meanings indicated which are applicable to both the singular and plural thereof, and words denoting gender shall include the masculine, feminine and neuter. Said terms are generally capitalized or written in italics, but not always. When used in a context consistent with the definition of a listed-defined term, the term shall have a meaning as defined below whether capitalized or italicized or otherwise. In addition to terms specifically defined, terms with initial capital letters in the Contract Documents include references to identified articles and paragraphs, and the titles of other documents or forms. 1.Addenda—Written or graphic instruments issued prior to the opening of Bids which clarify, correct, or change the Bidding Requirements or the proposed Contract Documents. 2.Agreement—The written instrument which is evidence of the agreement between City and Contractor covering the Work. 3.Application for Payment—The form acceptable to City which is to be used by Contractor during the course of the Work in requesting progress or final payments and which is to be accompanied by such supporting documentation as is required by the Contract Documents. 4.Asbestos—Any material that contains more than one percent asbestos and is friable or is releasing asbestos fibers into the air above current action levels established by the United States Occupational Safety and Health Administration. 5.Award – Authorization by the City Council for the City to enter into an Agreement. 6.Bid—The offer or proposal of a Bidder submitted on the prescribed form setting forth the prices for the Work to be performed. 7.Bidder—The individual or entity who submits a Bid directly to City. 8.Bidding Documents—The Bidding Requirements and the proposed Contract Documents (including all Addenda). 9.Bidding Requirements—The advertisement or Invitation to Bid, Instructions to Bidders, Bid security of acceptable form, if any, and the Bid Form with any supplements. 10.Business Day – A business day is defined as a day that the City conducts normal business, generally Monday through Friday, except for federal or state holidays observed by the City. 11.Calendar Day – A day consisting of 24 hours measured from midnight to the next midnight. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 409 00 72 00 - 1 GENERAL CONDITIONS Page 2 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 12.Change Order—A document, which is prepared and approved by the City, which is signed by Contractor and City and authorizes an addition, deletion, or revision in the Work or an adjustment in the Contract Price or the Contract Time, issued on or after the Effective Date of the Agreement. 13.City— The City of Denton is a Texas home-rule municipal corporation acting by its City Council through its City Manager or his designee. 14.City Attorney – The officially appointed City Attorney of the City of Denton, Texas, or his duly authorized representative. 15.City Council - The duly elected and qualified governing body of the City of Denton, Texas. 16.City Manager – The officially appointed and authorized City Manager of the City of Denton, Texas, or his duly authorized representative. 17.Contract Claim—A demand or assertion by City or Contractor seeking an adjustment of Contract Price or Contract Time, or both, or other relief with respect to the terms of the Contract. A demand for money or services by a third party is not a Contract Claim. 18.Contract—The entire and integrated written document between the City and Contractor concerning the Work. The Contract contains the Agreement and all Contract Documents and supersedes prior negotiations, representations, or agreements, whether written or oral. 19.Contract Documents—Those items so designated in the Agreement. All items listed in the Agreement are Contract Documents. Approved Submittals, other Contractor submittals, and the reports and drawings of subsurface and physical conditions are not Contract Documents. 20.Contract Price—The moneys payable by City to Contractor for completion of the Work in accordance with the Contract Documents as stated in the Agreement (subject to the provisions of Paragraph 11.03 in the case of Unit Price Work). 21.Contract Time—The number of days or the dates stated in the Agreement to: (i) achieve Milestones, if any and (ii) complete the Work so that it is ready for Final Acceptance. 22.Contractor—The individual or entity with whom City has entered into the Agreement. 23.Cost of the Work—See Paragraph 11.01 of these General Conditions for definition. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 410 00 72 00 - 1 GENERAL CONDITIONS Page 3 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 24.Damage Claims – A demand for money or services arising from the Project or Site from a third party, City or Contractor exclusive of a Contract Claim. 25.Day or day – A day, unless otherwise defined, shall mean a Calendar Day. 26.Drawings—That part of the Contract Documents prepared or approved by Engineer which graphically shows the scope, extent, and character of the Work to be performed by Contractor. Submittals are not Drawings as so defined. 27.Effective Date of the Agreement—The date indicated in the Agreement on which it becomes effective, but if no such date is indicated, it means the date on which the Agreement is signed and delivered by the last of the two parties to sign and deliver. 28.Engineer—The licensed professional engineer or engineering firm registered in the State of Texas performing professional services for the City. 29.Extra Work – Additional work made necessary by changes or alterations of the Contract Documents or quantities; or for other reasons for which no prices are provided in the Contract Documents. Extra work shall be part of the Work. 30.Field Order — A written order issued by City which requires changes in the Work but which does not involve a change in the Contract Price, Contract Time, or the intent of the Engineer. 31.Final Acceptance – The written notice given by the City to the Contractor that the Work specified in the Contract Documents has been completed to the satisfaction of the City. 32.Final Inspection – Inspection carried out by the City to verify that the Contractor has completed the Work, and each and every part or appurtenance thereof, fully, entirely, and in conformance with the Contract Documents. 33.General Requirements—Sections of Division 1 of the Contract Documents. 34.Hazardous Environmental Condition — The presence at the Site of Asbestos, PCBs, Petroleum, Hazardous Waste, Radioactive Material, or other materials in such quantities or circumstances that may present a substantial danger to persons or property exposed thereto. 35.Hazardous Waste—Hazardous waste is defined as any solid waste listed as hazardous or possesses one or more hazardous characteristics as defined in the federal waste regulations, as amended from time to time. 36.Incidental – Work items that the Contractor is not paid for directly, but costs for which are included under the various bid items of the Project. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 411 00 72 00 - 1 GENERAL CONDITIONS Page 4 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 37.Laws and Regulations—Any and all applicable laws, rules, regulations, ordinances, codes, and orders of any and all governmental bodies, agencies, authorities, and courts having jurisdiction. 38.Liens—Charges, security interests, or encumbrances upon Project funds, real property, or personal property. 39.Major Item – An Item of work included in the Contract Documents that has a total cost equal to or greater than 5% of the original Contract Price or $25,000 whichever is less. 40.Milestone—A principal event specified in the Contract Documents relating to an intermediate Contract Time prior to Final Acceptance of the Work. 41.Notice of Award—The written notice by City to the Successful Bidder stating that upon timely compliance by the Successful Bidder with the conditions precedent listed therein, City will sign and deliver the Agreement. 42.Notice to Proceed—A written notice given by City to Contractor fixing the date on which the Contract Time will commence to run and on which Contractor shall start to perform the Work specified in Contract Documents. 43.PCBs—Polychlorinated biphenyls. 44.Petroleum—Petroleum, including crude oil or any fraction thereof which is liquid at standard conditions of temperature and pressure (60 degrees Fahrenheit and 14.7 pounds per square inch absolute), such as oil, petroleum, fuel oil, oil sludge, oil refuse, gasoline, kerosene, and oil mixed with other non-Hazardous Waste and crude oils. 45.Plans – See definition of Drawings. 46.Project Schedule—A schedule, prepared and maintained by Contractor, in accordance with the General Requirements, describing the sequence and duration of the activities comprising the Contractor’s plan to accomplish the Work within the Contract Time. 47.Project—The Work to be performed under the Contract Documents. 48.Project Manager —The authorized representative of the City who will be assigned to the Project. 49.Project Manual – The documentary information prepared for bidding and furnishing the Work. A listing of the contents of the Project Manual is contained in its Table of Contents. 50.Public Meeting – An announced meeting conducted by the City to facilitate public participation and to assist the public in gaining an informed view of the Project. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 412 00 72 00 - 1 GENERAL CONDITIONS Page 5 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 51.Radioactive Material—Source, special nuclear, or byproduct material as defined by the Atomic Energy Act of 1954 (42 USC Section 2011 et seq.) as amended from time to time. 52.Regular Working Hours – Excluding legal holidays, regular working hours shall be Monday thru Friday between 6:00 a.m. and 8:30 p.m. from June 1 to September 30 and between 7:00 a.m. and 8:30 p.m. from October 1 to May 31. 53.Samples—Physical examples of materials, equipment, or workmanship that are representative of some portion of the Work and which establish the standards by which such portion of the Work will be judged. 54.Schedule of Submittals—A schedule, prepared and maintained by Contractor, of required submittals and the time requirements to support scheduled performance of related construction activities. 55.Schedule of Values—A schedule, prepared and maintained by Contractor, allocating portions of the Contract Price to various portions of the Work and used as the basis for reviewing Contractor’s Applications for Payment. 56.Site—Lands or areas indicated in the Contract Documents as being furnished by City upon which the Work is to be performed, including rights-of-way, permits, and easements for access thereto, and such other lands furnished by City which are designated for the use of Contractor. 57.Specifications—That part of the Contract Documents consisting of written requirements for materials, equipment, systems, standards and workmanship as applied to the Work, and certain administrative requirements and procedural matters applicable thereto. Specifications may be specifically made a part of the Contract Documents by attachment or, if not attached, may be incorporated by reference as indicated in the Table of Contents (Division 00 00 00) of each Project. 58.Subcontractor—An individual or entity having a direct contract with Contractor or with any other Subcontractor for the performance of a part of the Work at the Site. 59.Submittals—All drawings, diagrams, illustrations, schedules, and other data or information which are specifically prepared or assembled by or for Contractor and submitted by Contractor to illustrate some portion of the Work. 60.Subsidiary – See definition of Incidental. 61.Successful Bidder—The Bidder submitting the lowest and most responsive Bid to whom City makes an Award. 62.Superintendent – The representative of the Contractor who is available at all times and able to receive instructions from the City and to act for the Contractor. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 413 00 72 00 - 1 GENERAL CONDITIONS Page 6 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 63.Supplementary Conditions—That part of the Contract Documents which amends or supplements these General Conditions. 64.Supplier—A manufacturer, fabricator, supplier, distributor, materialman, or vendor having a direct contract with Contractor or with any Subcontractor to furnish materials or equipment to be incorporated in the Work by Contractor or Subcontractor. 65.Underground Facilities—All underground pipelines, conduits, ducts, cables, wires, manholes, vaults, tanks, tunnels, or other such facilities or attachments, and any encasements containing such facilities, including but not limited to, those that convey electricity, gases, steam, liquid petroleum products, telephone or other communications, cable television, water, wastewater, storm water, other liquids or chemicals, or traffic or other control systems. 66.Unit Price Work—See Paragraph 11.03 of these General Conditions for definition. 67.Weekend Working Hours – Hours between 8:00 a.m. and 8:30 p.m., Saturday, and between 1:00 p.m. and 8:30 p.m. Sunday or legal holiday, as approved in advance by the City. 68.Work—The entire construction or the various separately identifiable parts thereof required to be provided under the Contract Documents. Work includes and is the result of performing or providing all labor, services, and documentation necessary to produce such construction including any Change Order or Field Order, and furnishing, installing, and incorporating all materials and equipment into such construction, all as required by the Contract Documents. 69.Working Day – A working day is defined as a day, not including Saturdays, Sundays, or legal holidays authorized by the City for contract purposes, in which weather or other conditions not under the control of the Contractor will permit the performance of the principal unit of work underway for a continuous period of not less than 7 hours between 7 a.m. and 8 p.m. 1.02 Terminology A. The words and terms discussed in Paragraph 1.02.B through E are not defined but, when used in the Bidding Requirements or Contract Documents, have the indicated meaning. B.Intent of Certain Terms or Adjectives: 1. The Contract Documents include the terms “as allowed,” “as approved,” “as ordered,” “as directed” or terms of like effect or import to authorize an exercise of judgment by City. In addition, the adjectives “reasonable,” “suitable,” “acceptable,” “proper,” “satisfactory,” or adjectives of like effect or import are used to describe an action or determination of City as to the Work. It is intended that such exercise of professional judgment, action, or determination will be solely to evaluate, in general, the Work for compliance with the information in the Contract Documents and with the design concept of the Project as a functioning whole as shown or indicated in the Contract Documents (unless there is a specific statement indicating otherwise). DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 414 00 72 00 - 1 GENERAL CONDITIONS Page 7 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 C.Defective: 1. The word “defective,” when modifying the word “Work,” refers to Work that is unsatisfactory, faulty, or deficient in that it: a. does not conform to the Contract Documents; or b. does not meet the requirements of any applicable inspection, reference standard, test, or approval referred to in the Contract Documents; or c. has been damaged prior to City’s written acceptance. D.Furnish, Install, Perform, Provide: 1. The word “Furnish” or the word “Install” or the word “Perform” or the word “Provide” or the word “Supply,” or any combination or similar directive or usage thereof, shall mean furnishing and incorporating in the Work including all necessary labor, materials, equipment, and everything necessary to perform the Work indicated, unless specifically limited in the context used. E. Unless stated otherwise in the Contract Documents, words or phrases that have a well-known technical or construction industry or trade meaning are used in the Contract Documents in accordance with such recognized meaning. ARTICLE 2 – PRELIMINARY MATTERS 2.01 Copies of Documents City shall furnish to Contractor one (1) original executed copy and one (1) electronic copy of the Contract Documents, and three (3) additional copies of the Drawings. Additional copies will be furnished upon request at the cost of reproduction. 2.02 Commencement of Contract Time; Notice to Proceed The Contract Time will commence to run on the day indicated in the Notice to Proceed. A Notice to Proceed may be given at any time within 30 days after the Effective Date of the Agreement. 2.03 Starting the Work Contractor shall start to perform the Work on the date when the Contract Time commences to run. No Work shall be done at the Site prior to the date on which the Contract Time commences to run. 2.04 Before Starting Construction Baseline Schedules: Submit in accordance with the Contract Documents, and prior to starting the Work. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 415 00 72 00 - 1 GENERAL CONDITIONS Page 8 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 2.05 Preconstruction Conference Before any Work at the Site is started, the Contractor shall attend a Preconstruction Conference as specified in the Contract Documents. 2.06 Public Meeting Contractor may not mobilize any equipment, materials or resources to the Site prior to Contractor attending the Public Meeting as scheduled by the City. 2.07 Initial Acceptance of Schedules No progress payment shall be made to Contractor until acceptable schedules are submitted to City in accordance with the Schedule Specification as provided in the Contract Documents. 2.08 Electronic Submittals A. Except as otherwise stated elsewhere in the Contract, the City and Contractor may transmit, and shall accept, Project-related correspondence, text, data, documents, drawings, information, and graphics, including but not limited to Shop Drawings and other submittals, in electronic media or digital format. B. When transmitting items in electronic media or digital format, the transmitting party makes no representations as to long term compatibility, usability, or readability of the items resulting from the recipient’s use of software application packages, operating systems, or computer hardware differing from those used in the drafting or transmittal of the items, or from those established in applicable transmittal protocols. ARTICLE 3 – CONTRACT DOCUMENTS: INTENT, AMENDING, REUSE 3.01 Intent A. The Contract Documents are complementary; what is required by one is as binding as if required by all. B. It is the intent of the Contract Documents to describe a functionally complete project (or part thereof) to be constructed in accordance with the Contract Documents. Any labor, documentation, services, materials, or equipment that reasonably may be inferred from the Contract Documents or from prevailing custom or trade usage as being required to produce the indicated result will be provided whether or not specifically called for, at no additional cost to City. C. Clarifications and interpretations of the Contract Documents shall be issued by City. D. The Specifications may vary in form, format and style. Some Specification sections may be written in varying degrees of streamlined or declarative style and some sections may be DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 416 00 72 00 - 1 GENERAL CONDITIONS Page 9 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 relatively narrative by comparison. Omission of such words and phrases as “the Contractor shall,” “in conformity with,” “as shown,” or “as specified” are intentional in streamlined sections. Omitted words and phrases shall be supplied by inference. Similar types of provisions may appear in various parts of a section or articles within a part depending on the format of the section. The Contractor shall not take advantage of any variation of form, format or style in making Contract Claims. E. The cross referencing of specification sections under the subparagraph heading “Related Sections include but are not necessarily limited to:” and elsewhere within each Specification section is provided as an aid and convenience to the Contractor. The Contractor shall not rely on the cross referencing provided and shall be responsible to coordinate the entire Work under the Contract Documents and provide a complete Project whether or not the cross referencing is provided in each section or whether or not the cross referencing is complete. 3.02 Reference Standards A. Standards, Specifications, Codes, Laws, and Regulations 1. Reference to standards, specifications, manuals, or codes of any technical society, organization, or association, or to Laws or Regulations, whether such reference be specific or by implication, shall mean the standard, specification, manual, code, or Laws or Regulations in effect at the time of opening of Bids (or on the Effective Date of the Agreement if there were no Bids), except as may be otherwise specifically stated in the Contract Documents. 2. No provision of any such standard, specification, manual, or code, or any instruction of a Supplier, shall be effective to change the duties or responsibilities of City, Contractor, or any of their subcontractors, consultants, agents, or employees, from those set forth in the Contract Documents. No such provision or instruction shall be effective to assign to City, or any of its officers, directors, members, partners, employees, agents, consultants, or subcontractors, any duty or authority to supervise or direct the performance of the Work or any duty or authority to undertake responsibility inconsistent with the provisions of the Contract Documents. 3.03 Reporting and Resolving Discrepancies A.Reporting Discrepancies: 1.Contractor’s Review of Contract Documents Before Starting Work: Before undertaking each part of the Work, Contractor shall carefully study and compare the Contract Documents and check and verify pertinent figures therein against all applicable field measurements and conditions. Contractor shall promptly report in writing to City any conflict, error, ambiguity, or discrepancy which Contractor discovers, or has actual knowledge of, and shall obtain a written interpretation or clarification from City before proceeding with any Work affected thereby. 2.Contractor’s Review of Contract Documents During Performance of Work: If, during the performance of the Work, Contractor discovers any conflict, error, ambiguity, or discrepancy DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 417 00 72 00 - 1 GENERAL CONDITIONS Page 10 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 within the Contract Documents, or between the Contract Documents and (a) any applicable Law or Regulation , (b) any standard, specification, manual, or code, or (c) any instruction of any Supplier, then Contractor shall promptly report it to City in writing. Contractor shall not proceed with the Work affected thereby (except in an emergency as required by Paragraph 6.17.A) until an amendment or supplement to the Contract Documents has been issued by one of the methods indicated in Paragraph 3.04. 3. Contractor shall not be liable to City for failure to report any conflict, error, ambiguity, or discrepancy in the Contract Documents unless Contractor had actual knowledge thereof. B.Resolving Discrepancies: 1. Except as may be otherwise specifically stated in the Contract Documents, the provisions of the Contract Documents shall take precedence in resolving any conflict, error, ambiguity, or discrepancy between the provisions of the Contract Documents and the provisions of any standard, specification, manual, or the instruction of any Supplier (whether or not specifically incorporated by reference in the Contract Documents). 2. In case of discrepancies, figured dimensions shall govern over scaled dimensions, Drawings shall govern over Specifications, and Supplementary Conditions shall govern over General Conditions and Specifications. 3.04 Amending and Supplementing Contract Documents A. The Contract Documents may be amended to provide for additions, deletions, and revisions in the Work or to modify the terms and conditions thereof by a Change Order. B. The requirements of the Contract Documents may be supplemented, and minor variations and deviations in the Work not involving a change in Contract Price or Contract Time, may be authorized, by one or more of the following ways: 1. A Field Order; 2. City’s review of a Submittal (subject to the provisions of Paragraph 6.18.C); or 3. City’s written interpretation or clarification. 3.05 Reuse of Documents A. Contractor and any Subcontractor or Supplier shall not: 1. have or acquire any title to or ownership rights in any of the Drawings, Specifications, or other documents (or copies of any thereof) prepared by or bearing the seal of Engineer, including electronic media editions; or 2. reuse any such Drawings, Specifications, other documents, or copies thereof on extensions of the Project or any other project without written consent of City and specific written DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 418 00 72 00 - 1 GENERAL CONDITIONS Page 11 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 verification or adaptation by Engineer. B. The prohibitions of this Paragraph 3.05 will survive final payment, or termination of the Contract. Nothing herein shall preclude Contractor from retaining copies of the Contract Documents for record purposes. 3.06 Electronic Data A. Unless otherwise stated in the Supplementary Conditions, the data furnished by City or Engineer to Contractor, or by Contractor to City or Engineer, that may be relied upon are limited to the printed copies included in the Contract Documents (also known as hard copies). Files in electronic media format of text, data, graphics, or other types are furnished only for the convenience of the receiving party. Any conclusion or information obtained or derived from such electronic files will be at the user’s sole risk. If there is a discrepancy between the electronic files and the hard copies, the hard copies govern. B. When transferring documents in electronic media format, the transferring party makes no representations as to long term compatibility, usability, or readability of documents resulting from the use of software application packages, operating systems, or computer hardware differing from those used by the data’s creator. ARTICLE 4 – AVAILABILITY OF LANDS; SUBSURFACE AND PHYSICAL CONDITIONS; HAZARDOUS ENVIRONMENTAL CONDITIONS; REFERENCE POINTS 4.01 Availability of Lands A. City shall furnish the Site. City shall notify Contractor of any encumbrances or restrictions not of general application but specifically related to use of the Site with which Contractor must comply in performing the Work. City will obtain in a timely manner and pay for easements for permanent structures or permanent changes in existing facilities. 1. The City has obtained or anticipates acquisition of and/or access to right-of-way, and/or easements. Any outstanding right-of-way and/or easements are anticipated to be acquired in accordance with the schedule set forth in the Supplementary Conditions. The Project Schedule submitted by the Contractor in accordance with the Contract Documents must consider any outstanding right-of-way, and/or easements. 2. The City has or anticipates removing and/or relocating utilities, and obstructions to the Site. Any outstanding removal or relocation of utilities or obstructions is anticipated in accordance with the schedule set forth in the Supplementary Conditions. The Project Schedule submitted by the Contractor in accordance with the Contract Documents must consider any outstanding utilities or obstructions to be removed, adjusted, and/or relocated by others. B. Upon reasonable written request, City shall furnish Contractor with a current statement of record legal title and legal description of the lands upon which the Work is to be performed. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 419 00 72 00 - 1 GENERAL CONDITIONS Page 12 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 C. Contractor shall provide for all additional lands and access thereto that may be required for construction facilities or storage of materials and equipment. 4.02 Subsurface and Physical Conditions A.Reports and Drawings: The Supplementary Conditions identify: 1. those reports known to City of explorations and tests of subsurface conditions at or contiguous to the Site; and 2. those drawings known to City of physical conditions relating to existing surface or subsurface structures at the Site (except Underground Facilities). B.Limited Reliance by Contractor on Technical Data Authorized: Contractor may rely upon the accuracy of the “technical data” contained in such reports and drawings, but such reports and drawings are not Contract Documents. Such “technical data” is identified in the Supplementary Conditions. Contractor may not make any Contract Claim against City, or any of their officers, directors, members, partners, employees, agents, consultants, or subcontractors with respect to: 1. the completeness of such reports and drawings for Contractor’s purposes, including, but not limited to, any aspects of the means, methods, techniques, sequences, and procedures of construction to be employed by Contractor, and safety precautions and programs incident thereto; or 2. other data, interpretations, opinions, and information contained in such reports or shown or indicated in such drawings; or 3. any Contractor interpretation of or conclusion drawn from any “technical data” or any such other data, interpretations, opinions, or information. 4.03 Differing Subsurface or Physical Conditions A.Notice: If Contractor believes that any subsurface or physical condition that is uncovered or revealed either: 1. is of such a nature as to establish that any “technical data” on which Contractor is entitled to rely as provided in Paragraph 4.02 is materially inaccurate; or 2. is of such a nature as to require a change in the Contract Documents; or 3. differs materially from that shown or indicated in the Contract Documents; or 4. is of an unusual nature, and differs materially from conditions ordinarily encountered and generally recognized as inherent in work of the character provided for in the Contract Documents; then Contractor shall, promptly after becoming aware thereof and before further disturbing the DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 420 00 72 00 - 1 GENERAL CONDITIONS Page 13 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 subsurface or physical conditions or performing any Work in connection therewith (except in an emergency as required by Paragraph 6.17.A), notify City in writing about such condition. B.Possible Price and Time Adjustments Contractor shall not be entitled to any adjustment in the Contract Price or Contract Time if: 1. Contractor knew of the existence of such conditions at the time Contractor made a final commitment to City with respect to Contract Price and Contract Time by the submission of a Bid or becoming bound under a negotiated contract; or 2. the existence of such condition could reasonably have been discovered or revealed as a result of the examination of the Contract Documents or the Site; or 3. Contractor failed to give the written notice as required by Paragraph 4.03.A. 4.04 Underground Facilities A.Shown or Indicated: The information and data shown or indicated in the Contract Documents with respect to existing Underground Facilities at or contiguous to the Site is based on information and data furnished to City or Engineer by the owners of such Underground Facilities, including City, or by others. Unless it is otherwise expressly provided in the Supplementary Conditions: 1. City and Engineer shall not be responsible for the accuracy or completeness of any such information or data provided by others; and 2. the cost of all of the following will be included in the Contract Price, and Contractor shall have full responsibility for: a. reviewing and checking all such information and data; b. locating all Underground Facilities shown or indicated in the Contract Documents; c. coordination and adjustment of the Work with the owners of such Underground Facilities, including City, during construction; and d. the safety and protection of all such Underground Facilities and repairing any damage thereto resulting from the Work. B.Not Shown or Indicated: 1. If an Underground Facility which conflicts with the Work is uncovered or revealed at or contiguous to the Site which was not shown or indicated, or not shown or indicated with reasonable accuracy in the Contract Documents, Contractor shall, promptly after becoming aware thereof and before further disturbing conditions affected thereby or performing any Work in connection therewith (except in an emergency as required by Paragraph 6.17.A), DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 421 00 72 00 - 1 GENERAL CONDITIONS Page 14 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 identify the owner of such Underground Facility and give notice to that owner and to City. City will review the discovered Underground Facility and determine the extent, if any, to which a change may be required in the Contract Documents to reflect and document the consequences of the existence or location of the Underground Facility. Contractor shall be responsible for the safety and protection of such discovered Underground Facility. 2. If City concludes that a change in the Contract Documents is required, a Change Order may be issued to reflect and document such consequences. 3. Verification of existing utilities, structures, and service lines shall include notification of all utility companies a minimum of 48 hours in advance of construction including exploratory excavation if necessary. 4.05 Hazardous Environmental Condition at Site A.Reports and Drawings: The Supplementary Conditions identify those reports and drawings known to City relating to Hazardous Environmental Conditions that have been identified at the Site. B.Limited Reliance by Contractor on Technical Data Authorized: Contractor may rely upon the accuracy of the “technical data” contained in such reports and drawings, but such reports and drawings are not Contract Documents. Such “technical data” is identified in the Supplementary Conditions. Contractor may not make any Contract Claim against City, or any of their officers, directors, members, partners, employees, agents, consultants, or subcontractors with respect to: 1. the completeness of such reports and drawings for Contractor’s purposes, including, but not limited to, any aspects of the means, methods, techniques, sequences and procedures of construction to be employed by Contractor and safety precautions and programs incident thereto; or 2. other data, interpretations, opinions and information contained in such reports or shown or indicated in such drawings; or 3. any Contractor interpretation of or conclusion drawn from any “technical data” or any such other data, interpretations, opinions or information. C. Contractor shall not be responsible for any Hazardous Environmental Condition uncovered or revealed at the Site which was not shown or indicated in Drawings or Specifications or identified in the Contract Documents to be within the scope of the Work. Contractor shall be responsible for a Hazardous Environmental Condition created with any materials brought to the Site by Contractor, Subcontractors, Suppliers, or anyone else for whom Contractor is responsible. D. If Contractor encounters a Hazardous Environmental Condition or if Contractor or anyone for whom Contractor is responsible creates a Hazardous Environmental Condition, Contractor shall immediately: (i) secure or otherwise isolate such condition; (ii) stop all Work in connection with such condition and in any area affected thereby (except in an emergency as required by DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 422 00 72 00 - 1 GENERAL CONDITIONS Page 15 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 Paragraph 6.17.A); and (iii) notify City (and promptly thereafter confirm such notice in writing). City may consider the necessity to retain a qualified expert to evaluate such condition or take corrective action, if any. E. Contractor shall not be required to resume Work in connection with such condition or in any affected area until after City has obtained any required permits related thereto and delivered written notice to Contractor: (i) specifying that such condition and any affected area is or has been rendered suitable for the resumption of Work; or (ii) specifying any special conditions under which such Work may be resumed. F. If after receipt of such written notice Contractor does not agree to resume such Work based on a reasonable belief it is unsafe, or does not agree to resume such Work under such special conditions, then City may order the portion of the Work that is in the area affected by such condition to be deleted from the Work. City may have such deleted portion of the Work performed by City’s own forces or others. G.To the fullest extent permitted by Laws and Regulations, Contractor shall indemnify and hold harmless City, from and against all claims, costs, losses, and damages (including but not limited to all fees and charges of engineers, architects, attorneys, and other professionals and all court or arbitration or other dispute resolution costs) arising out of or relating to a Hazardous Environmental Condition created by Contractor or by anyone for whom Contractor is responsible. Nothing in this Paragraph 4.06.G shall obligate Contractor to indemnify any individual or entity from and against the consequences of that individual’s or entity’s own negligence. H. The provisions of Paragraphs 4.02, 4.03, and 4.04 do not apply to a Hazardous Environmental Condition uncovered or revealed at the Site. ARTICLE 5 – BONDS AND INSURANCE 5.01 Licensed Sureties and Insurers All bonds and insurance required by the Contract Documents to be purchased and maintained by Contractor shall be obtained from surety or insurance companies that are duly licensed or authorized in the State of Texas to issue bonds or insurance policies for the limits and coverages so required. Such surety and insurance companies shall also meet such additional requirements and qualifications as may be provided in the Supplementary Conditions. 5.02 Performance, Payment, and Maintenance Bonds A. Contractor shall furnish performance and payment bonds, in accordance with Texas Government Code Chapter 2253 or successor statute, each in an amount equal to the Contract Price as security for the faithful performance and payment of all of Contractor’s obligations under the Contract Documents. B. Contractor shall furnish maintenance bonds in an amount equal to the Contract Price as security DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 423 00 72 00 - 1 GENERAL CONDITIONS Page 16 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 to protect the City against any defects in any portion of the Work described in the Contract Documents. Maintenance bonds shall remain in effect for two (2) years after the date of Final Acceptance by the City. C. All bonds shall be in the form prescribed by the Contract Documents except as provided otherwise by Laws or Regulations, and shall be executed by such sureties as are named in the list of “Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies” as published in Circular 570 (amended) by the Financial Management Service, Surety Bond Branch, U.S. Department of the Treasury. All bonds signed by an agent or attorney-in-fact must be accompanied by a sealed and dated power of attorney which shall show that it is effective on the date the agent or attorney-in-fact signed each bond. The bonds must be dated on, or after, the date of the Contract. D. If the surety on any bond furnished by Contractor is declared bankrupt or becomes insolvent or its right to do business is terminated in the State of Texas or it ceases to meet the requirements of Paragraph 5.02.C, Contractor shall promptly notify City and shall, within 30 days after the event giving rise to such notification, provide another bond and surety, both of which shall comply with the requirements of Paragraphs 5.01 and 5.02.C. 5.03 Certificates of Insurance A. Contractor shall deliver to City, with copies to each additional insured and loss payee identified in the Supplementary Conditions, certificates of insurance (and other evidence of insurance requested by City or any other additional insured) which Contractor is required to purchase and maintain. 1. The certificate of insurance shall document the City, and all identified entities named in the Supplementary Conditions as “Additional Insured” on all liability policies. 2. The Contractor’s general liability insurance shall include a, “per project” or “per location”, endorsement, which shall be identified in the certificate of insurance provided to the City. 3. The certificate shall be signed by an agent authorized to bind coverage on behalf of the insured, be complete in its entirety, and show complete insurance carrier names as listed in the current A.M. Best Property & Casualty Guide 4. The insurers for all policies must be licensed and/or approved to do business in the State of Texas. Except for workers’ compensation, all insurers must have a minimum rating of A-: VII in the current A. M. Best Key Rating Guide or have reasonably equivalent financial strength and solvency to the satisfaction of Risk Management. If the rating is below that required, written approval of City is required. 5. All applicable policies shall include a Waiver of Subrogation (Rights of Recovery) in favor of the City. In addition, the Contractor agrees to waive all rights of subrogation against the Engineer (if applicable), and each additional insured identified in the Supplementary Conditions DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 424 00 72 00 - 1 GENERAL CONDITIONS Page 17 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 6. Failure of the City to demand such certificates or other evidence of full compliance with the insurance requirements or failure of the City to identify a deficiency from evidence that is provided shall not be construed as a waiver of Contractor’s obligation to maintain such lines of insurance coverage. 7. If insurance policies are not written for specified coverage limits, an Umbrella or Excess Liability insurance for any differences is required. Excess Liability shall follow form of the primary coverage. 8. Unless otherwise stated, all required insurance shall be written on the “occurrence basis”. If coverage is underwritten on a claims-made basis, the retroactive date shall be coincident with or prior to the date of the effective date of the agreement and the certificate of insurance shall state that the coverage is claims-made and the retroactive date. The insurance coverage shall be maintained for the duration of the Contract and for three (3) years following Final Acceptance provided under the Contract Documents or for the warranty period, whichever is longer. An annual certificate of insurance submitted to the City shall evidence such insurance coverage. 9. Policies shall have no exclusions by endorsements, which, neither nullify or amend, the required lines of coverage, nor decrease the limits of said coverage unless such endorsements are approved in writing by the City. In the event a Contract has been bid or executed and the exclusions are determined to be unacceptable or the City desires additional insurance coverage, and the City desires the contractor/engineer to obtain such coverage, the contract price shall be adjusted by the cost of the premium for such additional coverage plus 10%. 10. Any self-insured retention (SIR), in excess of $25,000.00, affecting required insurance coverage shall be approved by the City in regards to asset value and stockholders' equity. In lieu of traditional insurance, alternative coverage maintained through insurance pools or risk retention groups, or self-funding, must also be approved by City. 11. Any deductible in excess of $5,000.00, for any policy that does not provide coverage on a first-dollar basis, must be acceptable to and approved by the City. 12. City, at its sole discretion, reserves the right to review the insurance requirements and to make reasonable adjustments to insurance coverage’s and their limits when deemed necessary and prudent by the City based upon the scope of the Work, changes in statutory law, court decision or the claims history of the industry as well as of the contracting party to the City. The City shall be required to provide prior notice of 90 days, and the insurance adjustments shall be incorporated into the Work by Change Order. 13. City shall be entitled, upon written request and without expense, to receive copies of policies and endorsements thereto and may make any reasonable requests for deletion or revision or modifications of particular policy terms, conditions, limitations, or exclusions necessary to conform the policy and endorsements to the requirements of the Contract. Deletions, revisions, or modifications shall not be required where policy provisions are established by DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 425 00 72 00 - 1 GENERAL CONDITIONS Page 18 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 law or regulations binding upon either party or the underwriter on any such policies. 14. City shall not be responsible for the direct payment of insurance premium costs for Contractor’s insurance. 5.04 Contractor’s Insurance A.Workers Compensation and Employers’ Liability. Contractor shall purchase and maintain such insurance coverage with limits consistent with statutory benefits outlined in the Texas Workers’ Compensation Act (Texas Labor Code, Ch. 406, as amended), and minimum limits for Employers’ Liability as is appropriate for the Work being performed and as will provide protection from claims set forth below which may arise out of or result from Contractor’s performance of the Work and Contractor’s other obligations under the Contract Documents, whether it is to be performed by Contractor, any Subcontractor or Supplier, or by anyone directly or indirectly employed by any of them to perform any of the Work, or by anyone for whose acts any of them may be liable: 1. claims under workers’ compensation, disability benefits, and other similar employee benefit acts; 2. claims for damages because of bodily injury, occupational sickness or disease, or death of Contractor’s employees. B.Commercial General Liability. Coverage shall include but not be limited to covering liability (bodily injury or property damage) arising from: premises/operations, independent contractors, products/completed operations, personal injury, liability under an insured contract, and explosion/collapse/underground (where those exposures exist). Insurance shall be provided on an occurrence basis, and as comprehensive as the current Insurance Services Office (ISO) policy. This insurance shall apply as primary insurance with respect to any other insurance or self-insurance programs afforded to the City. The Commercial General Liability policy, shall have no exclusions by endorsements that would alter of nullify premises/operations, products/completed operations, contractual, personal injury, or advertising injury, which are normally contained with the policy, unless the City approves such exclusions in writing. For construction projects that present a substantial completed operation exposure, the City may require the contractor to maintain completed operations coverage for a minimum of no less than three (3) years following the completion of the project (if identified in the Supplementary Conditions). C.Automobile Liability. A commercial business auto policy shall provide coverage on “any auto”, defined as autos owned, hired and non-owned and provide indemnity for claims for damages because bodily injury or death of any person and or property damage arising out of the work, maintenance or use of any motor vehicle by the Contractor, any Subcontractor or Supplier, or by anyone directly or indirectly employed by any of them to perform any of the Work, or by anyone for whose acts any of them may be liable. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 426 00 72 00 - 1 GENERAL CONDITIONS Page 19 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 D.Railroad Protective Liability. If any of the work or any warranty work is within the limits of railroad right-of-way, the Contractor shall comply with the requirements identified in the Supplementary Conditions. E.Notification of Policy Cancellation: Contractor shall immediately notify City upon cancellation or other loss of insurance coverage. Contractor shall stop work until replacement insurance has been procured. There shall be no time credit for days not worked pursuant to this section. 5.05 Acceptance of Bonds and Insurance; Option to Replace If City has any objection to the coverage afforded by or other provisions of the bonds or insurance required to be purchased and maintained by the Contractor in accordance with Article 5 on the basis of non-conformance with the Contract Documents, the City shall so notify the Contractor in writing within 10 Business Days after receipt of the certificates (or other evidence requested). Contractor shall provide to the City such additional information in respect of insurance provided as the City may reasonably request. If Contractor does not purchase or maintain all of the bonds and insurance required by the Contract Documents, the City shall notify the Contractor in writing of such failure prior to the start of the Work, or of such failure to maintain prior to any change in the required coverage. ARTICLE 6 – CONTRACTOR’S RESPONSIBILITIES 6.01 Supervision and Superintendence A. Contractor shall supervise, inspect, and direct the Work competently and efficiently, devoting such attention thereto and applying such skills and expertise as may be necessary to perform the Work in accordance with the Contract Documents. Contractor shall be solely responsible for the means, methods, techniques, sequences, and procedures of construction. B. At all times during the progress of the Work, Contractor shall assign a competent Superintendent, who is proficient in English, and who shall not be replaced without written notice to City. If at any time the Superintendent is not satisfactory to the City, Contractor shall, if requested by City, replace the Superintendent with another satisfactory to City. C. Contractor shall notify the City 24 hours prior to moving areas during the sequence of construction. 6.02 Labor; Working Hours A. Contractor shall provide competent, suitably qualified personnel to perform construction as required by the Contract Documents. Contractor shall at all times maintain good discipline and order at the Site. B. Except as otherwise required for the safety or protection of persons or the Work or property at the Site or adjacent thereto, and except as otherwise stated in the Contract Documents, all Work at the Site shall be performed during Regular Working Hours. Contractor will not permit the DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 427 00 72 00 - 1 GENERAL CONDITIONS Page 20 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 performance of Work beyond Regular Working Hours or for Weekend Working Hours without City’s written consent (which will not be unreasonably withheld). Written request (by letter or electronic communication) to perform Work: 1. for beyond Regular Working Hours, request must be made by noon at least two (2) Business Days prior 2. for Weekend Working Hours, request must be made by noon of the preceding Wednesday 3. for legal holidays, request must be made by noon seven Days prior to the legal holiday. 6.03 Services, Materials, and Equipment A. Unless otherwise specified in the Contract Documents, Contractor shall provide and assume full responsibility for all services, materials, equipment, labor, transportation, construction equipment and machinery, tools, appliances, fuel, power, light, heat, telephone, water, sanitary facilities, temporary facilities, and all other facilities and incidentals necessary for the performance, Contractor required testing, start-up, and completion of the Work, whether or not such items are specifically called for in the Contract Documents. B. All materials and equipment incorporated into the Work shall be as specified or, if not specified, shall be of sufficient quality to complete the Work and new, except as otherwise provided in the Contract Documents. All special warranties and guarantees required by the Specifications shall expressly run to the benefit of City. If required by City, Contractor shall furnish satisfactory evidence (including reports of required tests) as to the source, kind, and quality of materials and equipment. C. All materials and equipment to be incorporated into the Work shall be stored, applied, installed, connected, erected, protected, used, cleaned, and conditioned in accordance with instructions of the applicable Supplier, except as otherwise may be provided in the Contract Documents. D. All items of standard equipment to be incorporated into the Work shall be the latest model at the time of bid, unless otherwise specified. 6.04 Project Schedule A. Contractor shall adhere to the Project Schedule established in accordance with Paragraph 2.07 and the General Requirements as it may be adjusted from time to time as provided below. 1. Contractor shall submit to City for acceptance (to the extent indicated in Paragraph 2.07 and the General Requirements) proposed adjustments in the Project Schedule that will not result in changing the Contract Time. Such adjustments will comply with any provisions of the General Requirements applicable thereto. 2. Contractor shall submit to City a monthly Project Schedule with a monthly progress payment DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 428 00 72 00 - 1 GENERAL CONDITIONS Page 21 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 for the duration of the Contract in accordance with the schedule specification 01 32 16. 3. Proposed adjustments in the Project Schedule that will change the Contract Time shall be submitted in accordance with the requirements of Article 12. Adjustments in Contract Time may only be made by a Change Order. 6.05 Substitutes and “Or-Equals” A. Whenever an item of material or equipment is specified or described in the Contract Documents by using the name of a proprietary item or the name of a particular Supplier, the specification or description is intended to establish the type, function, appearance, and quality required. Unless the specification or description contains or is followed by words reading that no like, equivalent, or “or-equal” item or no substitution is permitted, other items of material or equipment of other Suppliers may be submitted to City for review under the circumstances described below. 1.“Or-Equal” Items: If in City’s sole discretion an item of material or equipment proposed by Contractor is functionally equal to that named and sufficiently similar so that no change in related Work will be required, it may be considered by City as an “or-equal” item, in which case review and approval of the proposed item may, in City’s sole discretion, be accomplished without compliance with some or all of the requirements for approval of proposed substitute items. For the purposes of this Paragraph 6.05.A.1, a proposed item of material or equipment will be considered functionally equal to an item so named if: a. the City determines that: 1) it is at least equal in materials of construction, quality, durability, appearance, strength, and design characteristics; 2) it will reliably perform at least equally well the function and achieve the results imposed by the design concept of the completed Project as a functioning whole; and 3) it has a proven record of performance and availability of responsive service; and 4) it is not objectionable to the City. b. Contractor certifies that, if approved and incorporated into the Work: 1) there will be no increase in cost to the City or increase in Contract Time; and 2) it will conform substantially to the detailed requirements of the item named in the Contract Documents. 2.Substitute Items: a. If in City’s sole discretion an item of material or equipment proposed by Contractor does not qualify as an “or-equal” item under Paragraph 6.05.A.1, it may be submitted as a DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 429 00 72 00 - 1 GENERAL CONDITIONS Page 22 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 proposed substitute item. b. Contractor shall submit sufficient information as provided below to allow City to determine if the item of material or equipment proposed is essentially equivalent to that named and an acceptable substitute therefor. Requests for review of proposed substitute items of material or equipment will not be accepted by City from anyone other than Contractor. c. Contractor shall make written application to City for review of a proposed substitute item of material or equipment that Contractor seeks to furnish or use. The application shall comply with Section 01 25 00 and: 1) shall certify that the proposed substitute item will: a) perform adequately the functions and achieve the results called for by the general design; b) be similar in substance to that specified; c) be suited to the same use as that specified; and 2) will state: a) the extent, if any, to which the use of the proposed substitute item will prejudice Contractor’s achievement of final completion on time; b) whether use of the proposed substitute item in the Work will require a change in any of the Contract Documents (or in the provisions of any other direct contract with City for other work on the Project) to adapt the design to the proposed substitute item; c) whether incorporation or use of the proposed substitute item in connection with the Work is subject to payment of any license fee or royalty; and 3) will identify: a) all variations of the proposed substitute item from that specified; b) available engineering, sales, maintenance, repair, and replacement services; and 4) shall contain an itemized estimate of all costs or credits that will result directly or indirectly from use of such substitute item, including costs of redesign and Damage Claims of other contractors affected by any resulting change. B.Substitute Construction Methods or Procedures: If a specific means, method, technique, sequence, or procedure of construction is expressly required by the Contract Documents, Contractor may furnish or utilize a substitute means, method, technique, sequence, or procedure DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 430 00 72 00 - 1 GENERAL CONDITIONS Page 23 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 of construction approved by City. Contractor shall submit sufficient information to allow City, in City’s sole discretion, to determine that the substitute proposed is equivalent to that expressly called for by the Contract Documents. Contractor shall make written application to City for review in the same manner as those provided in Paragraph 6.05.A.2. C.City’s Evaluation: City will be allowed a reasonable time within which to evaluate each proposal or submittal made pursuant to Paragraphs 6.05.A and 6.05.B. City may require Contractor to furnish additional data about the proposed substitute. City will be the sole judge of acceptability. No “or-equal” or substitute will be ordered, installed or utilized until City’s review is complete, which will be evidenced by a Change Order in the case of a substitute and an accepted Submittal for an “or-equal.” City will advise Contractor in writing of its determination. D.Special Guarantee: City may require Contractor to furnish at Contractor’s expense a special performance guarantee, warranty, or other surety with respect to any substitute. Contractor shall indemnify and hold harmless City and anyone directly or indirectly employed by them from and against any and all claims, damages, losses and expenses (including attorneys fees) arising out of the use of substituted materials or equipment. E.City’s Cost Reimbursement: City will record City’s costs in evaluating a substitute proposed or submitted by Contractor pursuant to Paragraphs 6.05.A.2 and 6.05.B. Whether or not City approves a substitute so proposed or submitted by Contractor, Contractor may be required to reimburse City for evaluating each such proposed substitute. Contractor may also be required to reimburse City for the charges for making changes in the Contract Documents (or in the provisions of any other direct contract with City) resulting from the acceptance of each proposed substitute. F.Contractor’s Expense: Contractor shall provide all data in support of any proposed substitute or “or-equal” at Contractor’s expense. G.City Substitute Reimbursement: Costs (savings or charges) attributable to acceptance of a substitute shall be incorporated to the Contract by Change Order. H.Time Extensions: No additional time will be granted for substitutions. 6.06 Concerning Subcontractors, Suppliers, and Others A. Contractor shall perform with his own organization, work of a value not less than 35% of the value embraced on the Contract, unless otherwise approved by the City. B. Contractor shall not employ any Subcontractor, Supplier, or other individual or entity, whether initially or as a replacement, against whom City may have reasonable objection. Contractor shall not be required to employ any Subcontractor, Supplier, or other individual or entity to furnish or perform any of the Work against whom Contractor has reasonable objection (excluding those acceptable to City as indicated in Paragraph 6.06.C). C. The City may from time to time require the use of certain Subcontractors, Suppliers, or other DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 431 00 72 00 - 1 GENERAL CONDITIONS Page 24 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 individuals or entities on the project, and will provide such requirements in the Supplementary Conditions. D. Contractor shall be fully responsible to City for all acts and omissions of the Subcontractors, Suppliers, and other individuals or entities performing or furnishing any of the Work just as Contractor is responsible for Contractor’s own acts and omissions. Nothing in the Contract Documents: 1. shall create for the benefit of any such Subcontractor, Supplier, or other individual or entity any contractual relationship between City and any such Subcontractor, Supplier or other individual or entity; nor 2. shall create any obligation on the part of City to pay or to see to the payment of any moneys due any such Subcontractor, Supplier, or other individual or entity except as may otherwise be required by Laws and Regulations. E. Contractor shall be solely responsible for scheduling and coordinating the Work of Subcontractors, Suppliers, and other individuals or entities performing or furnishing any of the Work under a direct or indirect contract with Contractor. F. All Subcontractors, Suppliers, and such other individuals or entities performing or furnishing any of the Work shall communicate with City through Contractor. G. All Work performed for Contractor by a Subcontractor or Supplier will be pursuant to an appropriate agreement between Contractor and the Subcontractor or Supplier which specifically binds the Subcontractor or Supplier to the applicable terms and conditions of the Contract Documents for the benefit of City. 6.07 Wage Rates A.Duty to pay Prevailing Wage Rates. The Contractor shall comply with all requirements of Chapter 2258, Texas Government Code (as amended), including the payment of not less than the rates determined by the City Council of the City of Denton to be the prevailing wage rates in accordance with Chapter 2258. Such prevailing wage rates are included in these Contract Documents. B.Penalty for Violation. A Contractor or any Subcontractor who does not pay the prevailing wage shall, upon demand made by the City, pay to the City $60 for each worker employed for each calendar day or part of the day that the worker is paid less than the prevailing wage rates stipulated in these contract documents. This penalty shall be retained by the City to offset its administrative costs, pursuant to Texas Government Code 2258.023. C.Complaints of Violations and City Determination of Good Cause. On receipt of information, including a complaint by a worker, concerning an alleged violation of 2258.023, Texas Government Code, by a Contractor or Subcontractor, the City shall make an initial determination, before the 31st day after the date the City receives the information, as to whether DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 432 00 72 00 - 1 GENERAL CONDITIONS Page 25 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 good cause exists to believe that the violation occurred. The City shall notify in writing the Contractor or Subcontractor and any affected worker of its initial determination. Upon the City’s determination that there is good cause to believe the Contractor or Subcontractor has violated Chapter 2258, the City shall retain the full amounts claimed by the claimant or claimants as the difference between wages paid and wages due under the prevailing wage rates, such amounts being subtracted from successive progress payments pending a final determination of the violation. D.Arbitration Required if Violation Not Resolved. An issue relating to an alleged violation of Section 2258.023, Texas Government Code, including a penalty owed to the City or an affected worker, shall be submitted to binding arbitration in accordance with the Texas General Arbitration Act (Article 224 et seq., Revised Statutes) if the Contractor or Subcontractor and any affected worker does not resolve the issue by agreement before the 15th day after the date the City makes its initial determination pursuant to Paragraph C above. If the persons required to arbitrate under this section do not agree on an arbitrator before the 11th day after the date that arbitration is required, a district court shall appoint an arbitrator on the petition of any of the persons. The City is not a party in the arbitration. The decision and award of the arbitrator is final and binding on all parties and may be enforced in any court of competent jurisdiction. E.Records to be Maintained. The Contractor and each Subcontractor shall, for a period of three (3) years following the date of acceptance of the work, maintain records that show (i) the name and occupation of each worker employed by the Contractor in the construction of the Work provided for in this Contract; and (ii) the actual per diem wages paid to each worker. The records shall be open at all reasonable hours for inspection by the City. The provisions of Paragraph 6.23, Right to Audit, shall pertain to this inspection. F.Progress Payments. With each progress payment or payroll period, whichever is less, the Contractor shall submit an affidavit stating that the Contractor has complied with the requirements of Chapter 2258, Texas Government Code. G.Posting of Wage Rates. The Contractor shall post prevailing wage rates in a conspicuous place at all times. H.Subcontractor Compliance. The Contractor shall include in its subcontracts and/or shall otherwise require all of its Subcontractors to comply with Paragraphs A through G above. 6.08 Patent Fees and Royalties A. Contractor shall pay all license fees and royalties and assume all costs incident to the use in the performance of the Work or the incorporation in the Work of any invention, design, process, product, or device which is the subject of patent rights or copyrights held by others. If a particular invention, design, process, product, or device is specified in the Contract Documents for use in the performance of the Work and if, to the actual knowledge of City, its use is subject to patent rights or copyrights calling for the payment of any license fee or royalty to others, the existence of such rights shall be disclosed by City in the Contract Documents. Failure of the City to disclose such information does not relieve the Contractor from its obligations to pay for the DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 433 00 72 00 - 1 GENERAL CONDITIONS Page 26 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 use of said fees or royalties to others. B.To the fullest extent permitted by Laws and Regulations, Contractor shall indemnify and hold harmless City, from and against all claims, costs, losses, and damages (including but not limited to all fees and charges of engineers, architects, attorneys, and other professionals and all court or arbitration or other dispute resolution costs) arising out of or relating to any infringement of patent rights or copyrights incident to the use in the performance of the Work or resulting from the incorporation in the Work of any invention, design, process, product, or device not specified in the Contract Documents. 6.09 Permits and Utilities A.Contractor obtained permits and licenses. Contractor shall obtain and pay for all construction permits and licenses except those provided for in the Supplementary Conditions or Contract Documents. City shall assist Contractor, when necessary, in obtaining such permits and licenses. Contractor shall pay all governmental charges and inspection fees necessary for the prosecution of the Work which are applicable at the time of opening of Bids, or, if there are no Bids, on the Effective Date of the Agreement, except for permits provided by the City as specified in 6.09.B. City shall pay all charges of utility owners for connections for providing permanent service to the Work. B.City obtained permits and licenses. City will obtain and pay for all permits and licenses as provided for in the Supplementary Conditions or Contract Documents. It will be the Contractor’s responsibility to carry out the provisions of the permit. If the Contractor initiates changes to the Contract and the City approves the changes, the Contractor is responsible for obtaining clearances and coordinating with the appropriate regulatory agency. The City will not reimburse the Contractor for any cost associated with these requirements of any City acquired permit. The following are permits the City will obtain if required: 1. Texas Department of Transportation Permits 2. U.S. Army Corps of Engineers Permits 3. Texas Commission on Environmental Quality Permits 4. Railroad Company Permits 5. Texas Department of Licensing and Regulation (TDLR) Permits C.Outstanding permits and licenses. The City anticipates acquisition of and/or access to permits and licenses. Any outstanding permits and licenses are anticipated to be acquired in accordance with the schedule set forth in the Supplementary Conditions. The Project Schedule submitted by the Contractor in accordance with the Contract Documents must consider any outstanding permits and licenses. 6.10 Laws and Regulations DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 434 00 72 00 - 1 GENERAL CONDITIONS Page 27 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 A. Contractor shall give all notices required by and shall comply with all Laws and Regulations applicable to the performance of the Work. Except where otherwise expressly required by applicable Laws and Regulations, the City shall not be responsible for monitoring Contractor’s compliance with any Laws or Regulations. B. If Contractor performs any Work knowing or having reason to know that it is contrary to Laws or Regulations, Contractor shall bear all claims, costs, losses, and damages (including but not limited to all fees and charges of engineers, architects, attorneys, and other professionals and all court or arbitration or other dispute resolution costs) arising out of or relating to such Work. However, it shall not be Contractor’s responsibility to make certain that the Specifications and Drawings are in accordance with Laws and Regulations, but this shall not relieve Contractor of Contractor’s obligations under Paragraph 3.02. C. Changes in Laws or Regulations not known at the time of opening of Bids having an effect on the cost or time of performance of the Work may be the subject of an adjustment in Contract Price or Contract Time. 6.11 Taxes A. On a contract awarded by the City, an organization which qualifies for exemption pursuant to Texas Tax Code, Subchapter H (as amended), the Contractor may purchase, rent or lease all materials, supplies and equipment used or consumed in the performance of this contract by issuing to his supplier an exemption certificate in lieu of the tax, said exemption certificate to comply with State Comptroller’s Rulings applicable to Texas Tax Code, Subchapter H. Any such exemption certificate issued to the Contractor in lieu of the tax shall be subject to and shall comply with all applicable rulings pertaining to the Texas Tax Code, Subchapter H. B. Texas Tax permits and information may be obtained from: 1. Comptroller of Public Accounts Sales Tax Division Capitol Station Austin, TX 78711; or 2. http://www.window.state.tx.us/taxinfo/taxforms/93-forms.html 6.12 Use of Site and Other Areas A.Limitation on Use of Site and Other Areas: 1. Contractor shall confine construction equipment, the storage of materials and equipment, and the operations of workers to the Site and other areas permitted by Laws and Regulations, and shall not unreasonably encumber the Site and other areas with construction equipment or other materials or equipment. Contractor shall assume full responsibility for any damage to any such land or area, or to the owner or occupant thereof, or of any adjacent land or areas DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 435 00 72 00 - 1 GENERAL CONDITIONS Page 28 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 resulting from the performance of the Work. 2. At any time when, in the judgment of the City, the Contractor has obstructed, closed, or is carrying on operations in a portion of a street, right-of-way, or easement greater than is necessary for proper execution of the Work, the City may require the Contractor to finish the section on which operations are in progress before work is commenced on any additional area of the Site. 3. Construction equipment, spoil materials, supplies, forms, buildings, labs, or equipment and supply storage buildings, or any other item that may be transported by flood flows, shall not be stored within existing federal floodways during the course of the Work. 4. Should any Damage Claim be made by any such owner or occupant because of the performance of the Work, Contractor shall promptly attempt to resolve the Damage Claim. 5.Pursuant to Paragraph 6.21, Contractor shall indemnify and hold harmless City, from and against all claims, costs, losses, and damages arising out of or relating to any claim or action, legal or equitable, brought by any such owner or occupant against City. B.Removal of Debris During Performance of the Work: During the progress of the Work Contractor shall keep the Site and other areas free from accumulations of waste materials, rubbish, and other debris. Removal and disposal of such waste materials, rubbish, and other debris shall conform to applicable Laws and Regulations. C.Site Maintenance Cleaning: 24 hours after written notice is given to the Contractor that the clean-up on the job site is proceeding in a manner unsatisfactory to the City, if the Contractor fails to correct the unsatisfactory procedure, the City may take such direct action as the City deems appropriate to correct the clean-up deficiencies cited to the Contractor in the written notice (by letter or electronic communication), and the costs of such direct action, plus 25% of such costs, shall be deducted from the monies due or to become due to the Contractor. D.Final Site Cleaning: Prior to Final Acceptance of the Work, Contractor shall clean the Site and the Work and make it ready for utilization by City or adjacent property owner. At the completion of the Work Contractor shall remove from the Site all tools, appliances, construction equipment and machinery, and surplus materials and shall restore to original condition or better all property disturbed by the Work. E.Loading Structures: Contractor shall not load nor permit any part of any structure to be loaded in any manner that will endanger the structure, nor shall Contractor subject any part of the Work or adjacent property to stresses or pressures that will endanger it. 6.13 Record Documents A. Contractor shall maintain in a safe place at the Site or in a place designated by the Contractor and approved by the City, one (1) record copy of all Drawings, Specifications, Addenda, Change Orders, Field Orders, and written interpretations and clarifications in good order and annotated to DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 436 00 72 00 - 1 GENERAL CONDITIONS Page 29 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 show changes made during construction. These record documents together with all approved Samples and a counterpart of all accepted Submittals will be available to City for reference. Upon completion of the Work, these record documents, any operation and maintenance manuals, and Submittals will be delivered to City prior to Final Inspection. Contractor shall include accurate locations for buried and embedded items. 6.14 Safety and Protection A. Contractor shall be solely responsible for initiating, maintaining and supervising all safety precautions and programs in connection with the Work. Such responsibility does not relieve Subcontractors of their responsibility for the safety of persons or property in the performance of their work, nor for compliance with applicable safety Laws and Regulations. Contractor shall take all necessary precautions for the safety of, and shall provide the necessary protection to prevent damage, injury or loss to: 1. all persons on the Site or who may be affected by the Work; 2. all the Work and materials and equipment to be incorporated therein, whether in storage on or off the Site; and 3. other property at the Site or adjacent thereto, including trees, shrubs, lawns, walks, pavements, roadways, structures, utilities, and Underground Facilities not designated for removal, relocation, or replacement in the course of construction. B. Contractor shall comply with all applicable Laws and Regulations relating to the safety of persons or property, or to the protection of persons or property from damage, injury, or loss; and shall erect and maintain all necessary safeguards for such safety and protection. Contractor shall notify owners of adjacent property and of Underground Facilities and other utility owners when prosecution of the Work may affect them, and shall cooperate with them in the protection, removal, relocation, and replacement of their property. C. Contractor shall comply with the applicable requirements of City’s safety programs, if any. D. Contractor shall inform City of the specific requirements of Contractor’s safety program, if any, with which City’s employees and representatives must comply while at the Site. E. All damage, injury, or loss to any property referred to in Paragraph 6.14.A.2 or 6.14.A.3 caused, directly or indirectly, in whole or in part, by Contractor, any Subcontractor, Supplier, or any other individual or entity directly or indirectly employed by any of them to perform any of the Work, or anyone for whose acts any of them may be liable, shall be remedied by Contractor. F. Contractor’s duties and responsibilities for safety and for protection of the Work shall continue until such time as all the Work is completed and City has accepted the Work. 6.15 Safety Representative Contractor shall inform City in writing of Contractor’s designated safety representative at the Site. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 437 00 72 00 - 1 GENERAL CONDITIONS Page 30 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 6.16 Hazard Communication Programs Contractor shall be responsible for coordinating any exchange of material safety data sheets or other hazard communication information required to be made available to or exchanged between or among employers in accordance with Laws or Regulations. 6.17 Emergencies and/or Rectification A. In emergencies affecting the safety or protection of persons or the Work or property at the Site or adjacent thereto, Contractor is obligated to act to prevent threatened damage, injury, or loss. Contractor shall give City prompt written notice if Contractor believes that any significant changes in the Work or variations from the Contract Documents have been caused thereby or are required as a result thereof. If City determines that a change in the Contract Documents is required because of the action taken by Contractor in response to such an emergency, a Change Order may be issued. B. Should the Contractor fail to respond to a request from the City to rectify any discrepancies, omissions, or correction necessary to conform with the requirements of the Contract Documents, the City shall give the Contractor written notice that such work or changes are to be performed. The written notice shall direct attention to the discrepant condition and request the Contractor to take remedial action to correct the condition. In the event the Contractor does not take positive steps to fulfill this written request, or does not show just cause for not taking the proper action, within 24 hours, the City may take such remedial action with City resources or by contract. The City shall deduct an amount equal to the entire costs for such remedial action, plus 25%, from any funds due or become due the Contractor on the Project. 6.18 Submittals A. Contractor shall submit required Submittals to City for review and acceptance in accordance with the accepted Schedule of Submittals (as required by Paragraph 2.07). Each submittal will be identified as City may require. 1. Submit in accordance with the General Requirements. 2. Data shown on the Submittals will be complete with respect to quantities, dimensions, specified performance and design criteria, materials, and similar data, to demonstrate to City the services, materials, and equipment Contractor proposes to provide, and to enable City to review the information for the limited purposes required by Paragraph 6.18.C. 3. Submittals submitted as herein provided by Contractor and reviewed by City for conformance with the design concept shall be executed in conformity with the Contract Documents unless otherwise required by City. 4. When Submittals are submitted for the purpose of showing the installation in greater detail, their review shall not excuse Contractor from requirements shown on the Drawings and Specifications. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 438 00 72 00 - 1 GENERAL CONDITIONS Page 31 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 5. For-Information-Only submittals upon which the City is not expected to conduct review or take responsive action may be so identified in the Contract Documents. 6. Submit required number of Samples specified in the Specifications. 7. Clearly identify each Sample as to material, Supplier, pertinent data such as catalog numbers, the use for which intended and other data as City may require to enable City to review the submittal for the limited purposes required by Paragraph 6.18.C. B. Where a Submittal is required by the Contract Documents or the Schedule of Submittals, any related Work performed prior to City’s review and acceptance of the pertinent submittal will be at the sole expense and responsibility of Contractor. C.City’s Review: 1. City will provide timely review of required Submittals in accordance with the Schedule of Submittals acceptable to City. City’s review and acceptance will be only to determine if the items covered by the submittals will, after installation or incorporation in the Work, conform to the information given in the Contract Documents and be compatible with the design concept of the completed Project as a functioning whole as indicated by the Contract Documents. 2. City’s review and acceptance will not extend to means, methods, techniques, sequences, or procedures of construction (except where a particular means, method, technique, sequence, or procedure of construction is specifically and expressly called for by the Contract Documents) or to safety precautions or programs incident thereto. The review and acceptance of a separate item as such will not indicate approval of the assembly in which the item functions. 3. City’s review and acceptance shall not relieve Contractor from responsibility for any variation from the requirements of the Contract Documents unless Contractor has complied with the requirements of Section 01 33 00 and City has given written acceptance of each such variation by specific written notation thereof incorporated in or accompanying the Submittal. City’s review and acceptance shall not relieve Contractor from responsibility for complying with the requirements of the Contract Documents. 6.19 Continuing the Work Except as otherwise provided, Contractor shall carry on the Work and adhere to the Project Schedule during all disputes or disagreements with City. No Work shall be delayed or postponed pending resolution of any disputes or disagreements, except as City and Contractor may otherwise agree in writing. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 439 00 72 00 - 1 GENERAL CONDITIONS Page 32 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 6.20 Contractor’s General Warranty and Guarantee A. Contractor warrants and guarantees to City that all Work will be in accordance with the Contract Documents and will not be defective. City and its officers, directors, members, partners, employees, agents, consultants, and subcontractors shall be entitled to rely on representation of Contractor’s warranty and guarantee. B. Contractor’s warranty and guarantee hereunder excludes defects or damage caused by: 1. abuse, modification, or improper maintenance or operation by persons other than Contractor, Subcontractors, Suppliers, or any other individual or entity for whom Contractor is responsible; or 2. normal wear and tear under normal usage. C. Contractor’s obligation to perform and complete the Work in accordance with the Contract Documents shall be absolute. None of the following will constitute an acceptance of Work that is not in accordance with the Contract Documents or a release of Contractor’s obligation to perform the Work in accordance with the Contract Documents: 1. observations by City; 2. recommendation or payment by City of any progress or final payment; 3. the issuance of a certificate of Final Acceptance by City or any payment related thereto by City; 4. use or occupancy of the Work or any part thereof by City; 5. any review and acceptance of a Submittal by City; 6. any inspection, test, or approval by others; or 7. any correction of defective Work by City. D. The Contractor shall remedy any defects or damages in the Work and pay for any damage to other work or property resulting therefrom which shall appear within a period of two (2) years from the date of Final Acceptance of the Work unless a longer period is specified and shall furnish a good and sufficient maintenance bond, complying with the requirements of Article 5.02.B. The City will give notice of observed defects with reasonable promptness. 6.21 Indemnification A.Contractor covenants and agrees to indemnify, hold harmless and defend, at its own expense, the City, its officers, servants and employees, from and against any and all claims arising out of, or alleged to arise out of, the work and services to be performed by the Contractor, its officers, agents, employees, subcontractors, licenses or invitees under this DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 440 00 72 00 - 1 GENERAL CONDITIONS Page 33 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 Contract. THIS INDEMNIFICATION PROVISION IS SPECIFICALLY INTENDED TO OPERATE AND BE EFFECTIVE EVEN IF IT IS ALLEGED OR PROVEN THAT ALL OR SOME OF THE DAMAGES BEING SOUGHT WERE CAUSED, IN WHOLE OR IN PART, BY ANY ACT, OMISSION OR NEGLIGENCE OF THE CITY. This indemnity provision is intended to include, without limitation, indemnity for costs, expenses and legal fees incurred by the City in defending against such claims and causes of actions. B.Contractor covenants and agrees to indemnify and hold harmless, at its own expense, the City, its officers, servants and employees, from and against any and all loss, damage or destruction of property of the City, arising out of, or alleged to arise out of, the work and services to be performed by the Contractor, its officers, agents, employees, subcontractors, licensees or invitees under this Contract. THIS INDEMNIFICATION PROVISION IS SPECIFICALLY INTENDED TO OPERATE AND BE EFFECTIVE EVEN IF IT IS ALLEGED OR PROVEN THAT ALL OR SOME OF THE DAMAGES BEING SOUGHT WERE CAUSED, IN WHOLE OR IN PART, BY ANY ACT, OMISSION OR NEGLIGENCE OF THE CITY. 6.22 Delegation of Professional Design Services A. Contractor will not be required to provide professional design services unless such services are specifically required by the Contract Documents for a portion of the Work or unless such services are required to carry out Contractor’s responsibilities for construction means, methods, techniques, sequences and procedures. B. If professional design services or certifications by a design professional related to systems, materials or equipment are specifically required of Contractor by the Contract Documents, City will specify all performance and design criteria that such services must satisfy. Contractor shall cause such services or certifications to be provided by a properly licensed professional, whose signature and seal shall appear on all drawings, calculations, specifications, certifications, and Submittals prepared by such professional. Submittals related to the Work designed or certified by such professional, if prepared by others, shall bear such professional’s written approval when submitted to City. C. City shall be entitled to rely upon the adequacy, accuracy and completeness of the services, certifications or approvals performed by such design professionals, provided City has specified to Contractor performance and design criteria that such services must satisfy. D. Pursuant to this Paragraph 6.22, City’s review and acceptance of design calculations and design drawings will be only for the limited purpose of checking for conformance with performance and design criteria given and the design concept expressed in the Contract Documents. City’s review and acceptance of Submittals (except design calculations and design drawings) will be only for the purpose stated in Paragraph 6.18.C. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 441 00 72 00 - 1 GENERAL CONDITIONS Page 34 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 6.23 Right to Audit A. The City shall have the right to audit and make copies of the books, records and computations pertaining to the Contract. The Contractor shall retain such books, records, documents and other evidence pertaining to the Contract period and five years thereafter, except if an audit is in progress or audit findings are yet unresolved, in which case records shall be kept until all audit tasks are completed and resolved. These books, records, documents and other evidence shall be available, within ten (10) business days of written request. Further, the Contractor shall also require all Subcontractors, material suppliers, and other payees to retain all books, records, documents and other evidence pertaining to the Contract, and to allow the City similar access to those documents. All books and records will be made available within a 50 mile radius of the City. The cost of the audit will be borne by the City unless the audit reveals an overpayment of 1% or greater. If an overpayment of 1% or greater occurs, the reasonable cost of the audit, including any travel costs, must be borne by the Contractor which must be payable within five (5) business days of receipt of an invoice. B. Failure to comply with the provisions of this section shall be a material breach of the Contract and shall constitute, in the City’s sole discretion, grounds for termination thereof. Each of the terms “books”, “records”, “documents” and “other evidence”, as used above, shall be construed to include drafts and electronic files, even if such drafts or electronic files are subsequently used to generate or prepare a final printed document. 6.24 Nondiscrimination A. The City is responsible for operating Public Transportation Programs and implementing transit- related projects, which are funded in part with Federal financial assistance awarded by the U.S. Department of Transportation and the Federal Transit Administration (FTA), without discriminating against any person in the United States on the basis of race, color, or national origin. B.Title VI, Civil Rights Act of 1964 as amended: Contractor shall comply with the requirements of the Act and the Regulations as further defined in the Supplementary Conditions for any project receiving Federal assistance. ARTICLE 7 – OTHER WORK AT THE SITE 7.01 Related Work at Site A. City may perform other work related to the Project at the Site with City’s employees, or other City contractors, or through other direct contracts therefor, or have other work performed by utility owners. If such other work is not noted in the Contract Documents, then written notice thereof will be given to Contractor prior to starting any such other work; and B. Contractor shall afford each other contractor who is a party to such a direct contract, each utility owner, and City, if City is performing other work with City’s employees or other City contractors, proper and safe access to the Site, provide a reasonable opportunity for the DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 442 00 72 00 - 1 GENERAL CONDITIONS Page 35 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 introduction and storage of materials and equipment and the execution of such other work, and properly coordinate the Work with theirs. Contractor shall do all cutting, fitting, and patching of the Work that may be required to properly connect or otherwise make its several parts come together and properly integrate with such other work. Contractor shall not endanger any work of others by cutting, excavating, or otherwise altering such work; provided, however, that Contractor may cut or alter others' work with the written consent of City and the others whose work will be affected. C. If the proper execution or results of any part of Contractor’s Work depends upon work performed by others under this Article 7, Contractor shall inspect such other work and promptly report to City in writing any delays, defects, or deficiencies in such other work that render it unavailable or unsuitable for the proper execution and results of Contractor’s Work. Contractor’s failure to so report will constitute an acceptance of such other work as fit and proper for integration with Contractor’s Work except for latent defects in the work provided by others. 7.02 Coordination A. If City intends to contract with others for the performance of other work on the Project at the Site, the following will be set forth in Supplementary Conditions: 1. the individual or entity who will have authority and responsibility for coordination of the activities among the various contractors will be identified; 2. the specific matters to be covered by such authority and responsibility will be itemized; and 3. the extent of such authority and responsibilities will be provided. B. Unless otherwise provided in the Supplementary Conditions, City shall have authority for such coordination. ARTICLE 8 – CITY’S RESPONSIBILITIES 8.01 Communications to Contractor Except as otherwise provided in the Supplementary Conditions, City shall issue all communications to Contractor. 8.02 Furnish Data City shall timely furnish the data required under the Contract Documents. 8.03 Pay When Due City shall make payments to Contractor in accordance with Article 14. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 443 00 72 00 - 1 GENERAL CONDITIONS Page 36 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 8.04 Lands and Easements; Reports and Tests City’s duties with respect to providing lands and easements and providing engineering surveys to establish reference points are set forth in Paragraphs 4.01 and 4.05. Paragraph 4.02 refers to City’s identifying and making available to Contractor copies of reports of explorations and tests of subsurface conditions and drawings of physical conditions relating to existing surface or subsurface structures at or contiguous to the Site that have been utilized by City in preparing the Contract Documents. 8.05 Change Orders City shall execute Change Orders in accordance with Paragraph 10.03. 8.06 Inspections, Tests, and Approvals City’s responsibility with respect to certain inspections, tests, and approvals is set forth in Paragraph 13.03. 8.07 Limitations on City’s Responsibilities A. The City shall not supervise, direct, or have control or authority over, nor be responsible for, Contractor’s means, methods, techniques, sequences, or procedures of construction, or the safety precautions and programs incident thereto, or for any failure of Contractor to comply with Laws and Regulations applicable to the performance of the Work. City will not be responsible for Contractor’s failure to perform the Work in accordance with the Contract Documents. B. City will notify the Contractor of applicable safety plans pursuant to Paragraph 6.14. 8.08 Undisclosed Hazardous Environmental Condition City’s responsibility with respect to an undisclosed Hazardous Environmental Condition is set forth in Paragraph 4.06. 8.09 Compliance with Safety Program While at the Site, City’s employees and representatives shall comply with the specific applicable requirements of Contractor’s safety programs of which City has been informed pursuant to Paragraph 6.14. ARTICLE 9 – CITY’S OBSERVATION STATUS DURING CONSTRUCTION 9.01 City’s Project Manager or Duly Authorized Representative City will provide a Project Manager or duly authorized representative during the construction period. The duties and responsibilities and the limitations of authority of City’s Project Manager or duly appointed representative during construction are set forth in the Contract Documents. City’s Project Manager for this Contract is as set forth in the Supplementary Conditions. City will establish a duly authorized representative at the Preconstruction Meeting in accordance with Section 01 31 19. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 444 00 72 00 - 1 GENERAL CONDITIONS Page 37 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 9.02 Visits to Site A. City will make visits to the Site at intervals appropriate to the various stages of construction as City deems necessary in order to observe the progress that has been made and the quality of the various aspects of Contractor’s executed Work. Based on information obtained during such visits and observations, City will determine, in general, if the Work is proceeding in accordance with the Contract Documents. City will not be required to make exhaustive or continuous inspections on the Site to check the quality or quantity of the Work. City’s efforts will be directed toward providing City a greater degree of confidence that the completed Work will conform generally to the Contract Documents. B. City’s visits and observations are subject to all the limitations on authority and responsibility set forth in Paragraph 8.07. Particularly, but without limitation, during or as a result of City’s visits or observations of Contractor’s Work, City will not supervise, direct, control, or have authority over or be responsible for Contractor’s means, methods, techniques, sequences, or procedures of construction, or the safety precautions and programs incident thereto, or for any failure of Contractor to comply with Laws and Regulations applicable to the performance of the Work. 9.03 Authorized Variations in Work City’s Project Manager or duly authorized representative may authorize minor variations in the Work from the requirements of the Contract Documents which do not involve an adjustment in the Contract Price or the Contract Time and are compatible with the design concept of the completed Project as a functioning whole as indicated by the Contract Documents. These may be accomplished by a Field Order and will be binding on City and also on Contractor, who shall perform the Work involved promptly. 9.04 Rejecting Defective Work City will have authority to reject Work which City’s Project Manager or duly authorized representative believes to be defective, or will not produce a completed Project that conforms to the Contract Documents or that will prejudice the integrity of the design concept of the completed Project as a functioning whole as indicated by the Contract Documents. City will have authority to conduct special inspection or testing of the Work as provided in Article 13, whether or not the Work is fabricated, installed, or completed. 9.05 Determinations for Work Performed Contractor will determine the actual quantities and classifications of Work performed. City’s Project Manager or duly authorized representative will review with Contractor the preliminary determinations on such matters before rendering a written recommendation. City’s written decision will be final (except as modified to reflect changed factual conditions or more accurate data). DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 445 00 72 00 - 1 GENERAL CONDITIONS Page 38 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 9.06 Decisions on Requirements of Contract Documents and Acceptability of Work A. City will be the initial interpreter of the requirements of the Contract Documents and judge of the acceptability of the Work thereunder. B. City will render a written decision on any issue referred. C. City’s written decision on the issue referred will be final and binding on the Contractor, subject to the provisions of Paragraph 10.06. ARTICLE 10 – CHANGES IN THE WORK; CLAIMS; EXTRA WORK 10.01 Authorized Changes in the Work A. Without invalidating the Contract and without notice to any surety, City may, at any time or from time to time, order Extra Work. Upon notice of such Extra Work, Contractor shall proceed with the Work involved only upon receiving written notice from City. Extra Work will be performed under the applicable conditions of the Contract Documents (except as otherwise specifically provided). Extra Work shall be memorialized by a Change Order which may or may not precede an order of Extra work. B. For minor changes of Work not requiring changes to Contract Time or Contract Price, a Field Order may be issued by the City. 10.02 Unauthorized Changes in the Work Contractor shall not be entitled to an increase in the Contract Price or an extension of the Contract Time with respect to any work performed that is not required by the Contract Documents as amended, modified, or supplemented as provided in Paragraph 3.04, except in the case of an emergency as provided in Paragraph 6.17. 10.03 Execution of Change Orders A. City and Contractor shall execute appropriate Change Orders covering: 1. changes in the Work which are: (i) ordered by City pursuant to Paragraph 10.01.A, (ii) required because of acceptance of defective Work under Paragraph 13.08 or City’s correction of defective Work under Paragraph 13.09, or (iii) agreed to by the parties; 2. changes in the Contract Price or Contract Time which are agreed to by the parties, including any undisputed sum or amount of time for Work actually performed. 10.04 Dispute of Extra Work A. Should a difference arise as to what does or does not constitute Extra Work, or as to the payment thereof, and the City insists upon its performance, the Contractor shall proceed with the work after making written request for written orders and shall keep accurate account of the actual DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 446 00 72 00 - 1 GENERAL CONDITIONS Page 39 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 reasonable cost thereof. Contract Claims regarding Extra Work shall be made pursuant to Paragraph 10.06. B. The Contractor shall furnish the City such installation records of all deviations from the original Contract Documents as may be necessary to enable the City to prepare for permanent record a corrected set of plans showing the actual installation. C. The compensation agreed upon for Extra Work whether or not initiated by a Change Order shall be a full, complete and final payment for all costs Contractor incurs as a result or relating to the change or Extra Work, whether said costs are known, unknown, foreseen or unforeseen at that time, including without limitation, any costs for delay, extended overhead, ripple or impact cost, or any other effect on changed or unchanged work as a result of the change or Extra Work. 10.05 Notification to Surety If the provisions of any bond require notice to be given to a surety of any change affecting the general scope of the Work or the provisions of the Contract Documents (including, but not limited to, Contract Price or Contract Time), the giving of any such notice will be Contractor’s responsibility. The amount of each applicable bond will be adjusted by the Contractor to reflect the effect of any such change. 10.06 Contract Claims Process A. City’s Decision Required: All Contract Claims, except those waived pursuant to Paragraph 14.09, shall be referred to the City for decision. A decision by City shall be required as a condition precedent to any exercise by Contractor of any rights or remedies he may otherwise have under the Contract Documents or by Laws and Regulations in respect of such Contract Claims. B.Notice: 1. Written notice stating the general nature of each Contract Claim shall be delivered by the Contractor to City no later than 15 days after the start of the event giving rise thereto. The responsibility to substantiate a Contract Claim shall rest with the party making the Contract Claim. 2. Notice of the amount or extent of the Contract Claim, with supporting data shall be delivered to the City on or before 45 days from the start of the event giving rise thereto (unless the City allows additional time for Contractor to submit additional or more accurate data in support of such Contract Claim). 3. A Contract Claim for an adjustment in Contract Price shall be prepared in accordance with the provisions of Paragraph 12.01. 4. A Contract Claim for an adjustment in Contract Time shall be prepared in accordance with the provisions of Paragraph 12.02. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 447 00 72 00 - 1 GENERAL CONDITIONS Page 40 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 5. Each Contract Claim shall be accompanied by Contractor’s written statement that the adjustment claimed is the entire adjustment to which the Contractor believes it is entitled as a result of said event. 6. The City shall submit any response to the Contractor within 30 days after receipt of the claimant’s last submittal (unless Contract allows additional time). C.City’s Action: City will review each Contract Claim and, within 30 days after receipt of the last submittal of the Contractor, if any, take one of the following actions in writing: 1. deny the Contract Claim in whole or in part; 2. approve the Contract Claim; or 3. notify the Contractor that the City is unable to resolve the Contract Claim if, in the City’s sole discretion, it would be inappropriate for the City to do so. For purposes of further resolution of the Contract Claim, such notice shall be deemed a denial. D. City’s written action under Paragraph 10.06.C will be final and binding, unless City or Contractor invoke the dispute resolution procedure set forth in Article 16 within 30 days of such action or denial. E. No Contract Claim for an adjustment in Contract Price or Contract Time will be valid if not submitted in accordance with this Paragraph 10.06. F. If the City fails to take any action pursuant to Paragraph 10.06 (C) the contract Claim is considered to have been denied by the City. ARTICLE 11 – COST OF THE WORK; ALLOWANCES; UNIT PRICE WORK; PLANS QUANTITY MEASUREMENT 11.01 Cost of the Work A.Costs Included: The term Cost of the Work means the sum of all costs, except those excluded in Paragraph 11.01.B, necessarily incurred and paid by Contractor in the proper performance of the Work. When the value of any Work covered by a Change Order, the costs to be reimbursed to Contractor will be only those additional or incremental costs required because of the change in the Work. Such costs shall not include any of the costs itemized in Paragraph 11.01.B, and shall include but not be limited to the following items: 1. Payroll costs for employees in the direct employ of Contractor in the performance of the Work under schedules of job classifications agreed upon by City and Contractor. Such employees shall include, without limitation, superintendents, foremen, and other personnel employed full time on the Work. Payroll costs for employees not employed full time on the Work shall be apportioned on the basis of their time spent on the Work. Payroll costs shall include; DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 448 00 72 00 - 1 GENERAL CONDITIONS Page 41 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 a. salaries and wages plus the cost of fringe benefits, which shall include social security contributions, unemployment, excise, and payroll taxes, workers’ compensation, health and retirement benefits, bonuses, sick leave, vacation and holiday pay applicable thereto. The expenses of performing Work outside of Regular Working Hours, Weekend Working Hours, or legal holidays, shall be included in the above to the extent authorized by City. 2. Cost of all materials and equipment furnished and incorporated in the Work, including costs of transportation and storage thereof, and Suppliers’ field services required in connection therewith. 3. Rentals of all construction equipment and machinery, and the parts thereof whether rented from Contractor or others in accordance with rental agreements approved by City, and the costs of transportation, loading, unloading, assembly, dismantling, and removal thereof. All such costs shall be in accordance with the terms of said rental agreements. The rental of any such equipment, machinery, or parts shall cease when the use thereof is no longer necessary for the Work. 4. Payments made by Contractor to Subcontractors for Work performed by Subcontractors. If required by City, Contractor shall obtain competitive bids from subcontractors acceptable to City and Contractor and shall deliver such bids to City, who will then determine, which bids, if any, will be acceptable. If any subcontract provides that the Subcontractor is to be paid on the basis of Cost of the Work plus a fee, the Subcontractor’s Cost of the Work and fee shall be determined in the same manner as Contractor’s Cost of the Work and fee as provided in this Paragraph 11.01. 5. Costs of special consultants (including but not limited to engineers, architects, testing laboratories, surveyors, attorneys, and accountants) employed for services specifically related to the Work. 6. Supplemental costs including the following: a. The proportion of necessary transportation, travel, and subsistence expenses of Contractor’s employees incurred in discharge of duties connected with the Work. b. Cost, including transportation and maintenance, of all materials, supplies, equipment, machinery, appliances, office, and temporary facilities at the Site, and hand tools not owned by the workers, which are consumed in the performance of the Work, and cost, less market value, of such items used but not consumed which remain the property of Contractor. c. Sales, consumer, use, and other similar taxes related to the Work, and for which Contractor is liable not covered under Paragraph 6.11, as imposed by Laws and Regulations. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 449 00 72 00 - 1 GENERAL CONDITIONS Page 42 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 d. Deposits lost for causes other than negligence of Contractor, any Subcontractor, or anyone directly or indirectly employed by any of them or for whose acts any of them may be liable, and royalty payments and fees for permits and licenses. e. Losses and damages (and related expenses) caused by damage to the Work, not compensated by insurance or otherwise, sustained by Contractor in connection with the performance of the Work, provided such losses and damages have resulted from causes other than the negligence of Contractor, any Subcontractor, or anyone directly or indirectly employed by any of them or for whose acts any of them may be liable. Such losses shall include settlements made with the written consent and approval of City. No such losses, damages, and expenses shall be included in the Cost of the Work for the purpose of determining Contractor’s fee. f. The cost of utilities, fuel, and sanitary facilities at the Site. g. Minor expenses such as telegrams, long distance telephone calls, telephone and communication services at the Site, express and courier services, and similar petty cash items in connection with the Work. h. The costs of premiums for all bonds and insurance Contractor is required by the Contract Documents to purchase and maintain. B.Costs Excluded: The term Cost of the Work shall not include any of the following items: 1. Payroll costs and other compensation of Contractor’s officers, executives, principals (of partnerships and sole proprietorships), general managers, safety managers, engineers, architects, estimators, attorneys, auditors, accountants, purchasing and contracting agents, expediters, timekeepers, clerks, and other personnel employed by Contractor, whether at the Site or in Contractor’s principal or branch office for general administration of the Work and not specifically included in the agreed upon schedule of job classifications referred to in Paragraph 11.01.A.1 or specifically covered by Paragraph 11.01.A.4, all of which are to be considered administrative costs covered by the Contractor’s fee. 2. Expenses of Contractor’s principal and branch offices other than Contractor’s office at the Site. 3. Any part of Contractor’s capital expenses, including interest on Contractor’s capital employed for the Work and charges against Contractor for delinquent payments. 4. Costs due to the negligence of Contractor, any Subcontractor, or anyone directly or indirectly employed by any of them or for whose acts any of them may be liable, including but not limited to, the correction of defective Work, disposal of materials or equipment wrongly supplied, and making good any damage to property. 5. Other overhead or general expense costs of any kind. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 450 00 72 00 - 1 GENERAL CONDITIONS Page 43 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 C.Contractor’s Fee: When all the Work is performed on the basis of cost-plus, Contractor’s fee shall be determined as set forth in the Agreement. When the value of any Work covered by a Change Order for an adjustment in Contract Price is determined on the basis of Cost of the Work, Contractor’s fee shall be determined as set forth in Paragraph 12.01.C. D.Documentation: Whenever the Cost of the Work for any purpose is to be determined pursuant to Paragraphs 11.01.A and 11.01.B, Contractor will establish and maintain records thereof in accordance with generally accepted accounting practices and submit in a form acceptable to City an itemized cost breakdown together with supporting data. 11.02 Allowances A.Specified Allowance: It is understood that Contractor has included in the Contract Price all allowances so named in the Contract Documents and shall cause the Work so covered to be performed for such sums and by such persons or entities as may be acceptable to City. B.Cash Allowances: 1. Contractor agrees that: a. the cash allowances include the cost to Contractor (less any applicable trade discounts) of materials and equipment required by the allowances to be delivered at the Site, and all applicable taxes; and b. Contractor’s costs for unloading and handling on the Site, labor, installation, overhead, profit, and other expenses contemplated for the cash allowances have been included in the allowances, and no demand for additional payment on account of any of the foregoing will be valid. C.Contingency Allowance: Contractor agrees that a contingency allowance, if any, is for the sole use of City. D. Prior to final payment, an appropriate Change Order will be issued to reflect actual amounts due Contractor on account of Work covered by allowances, and the Contract Price shall be correspondingly adjusted. 11.03 Unit Price Work A. Where the Contract Documents provide that all or part of the Work is to be Unit Price Work, initially the Contract Price will be deemed to include for all Unit Price Work an amount equal to the sum of the unit price for each separately identified item of Unit Price Work times the estimated quantity of each item as indicated in the Agreement. B. The estimated quantities of items of Unit Price Work are not guaranteed and are solely for the purpose of comparison of Bids and determining an initial Contract Price. Determinations of the actual quantities and classifications of Unit Price Work performed by Contractor will be made by DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 451 00 72 00 - 1 GENERAL CONDITIONS Page 44 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 City subject to the provisions of Paragraph 9.05. C. Each unit price will be deemed to include an amount considered by Contractor to be adequate to cover Contractor’s overhead and profit for each separately identified item. Work described in the Contract Documents, or reasonably inferred as required for a functionally complete installation, but not identified in the listing of unit price items shall be considered incidental to unit price work listed and the cost of incidental work included as part of the unit price. D. City may make an adjustment in the Contract Price in accordance with Paragraph 12.01 if: 1. the quantity of any item of Unit Price Work performed by Contractor differs materially and significantly from the estimated quantity of such item indicated in the Agreement; and 2. there is no corresponding adjustment with respect to any other item of Work. E.Increased or Decreased Quantities: The City reserves the right to order Extra Work in accordance with Paragraph 10.01. 1. If the changes in quantities or the alterations do not significantly change the character of work under the Contract Documents, the altered work will be paid for at the Contract unit price. 2. If the changes in quantities or alterations significantly change the character of work, the Contract will be amended by a Change Order. 3. If no unit prices exist, this will be considered Extra Work and the Contract will be amended by a Change Order in accordance with Article 12. 4. A significant change in the character of work occurs when: a. the character of work for any Item as altered differs materially in kind or nature from that in the Contract or b. a Major Item of work varies by more than 25% from the original Contract quantity. 5. When the quantity of work to be done under any Major Item of the Contract is more than 125% of the original quantity stated in the Contract, then either party to the Contract may request an adjustment to the unit price on the portion of the work that is above 125%. 6. When the quantity of work to be done under any Major Item of the Contract is less than 75% of the original quantity stated in the Contract, then either party to the Contract may request an adjustment to the unit price. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 452 00 72 00 - 1 GENERAL CONDITIONS Page 45 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 11.04 Plans Quantity Measurement for Unclassified Excavation or Embankment A. Plans quantities may or may not represent the exact quantity of work performed or material moved, handled, or placed during the execution of the Contract. The estimated bid quantities are designated as final payment quantities, unless revised by the governing Section or this Article. B. If the quantity measured as outlined under “Price and Payment Procedures” varies by more than 25% (or as stipulated under “Price and Payment Procedures” for specific Items) from the total estimated quantity for an individual Item originally shown in the Contract Documents, an adjustment may be made to the quantity of authorized work done for payment purposes. The party to the Contract requesting the adjustment will provide field measurements and calculations showing the final quantity for which payment will be made. Payment for revised quantity will be made at the unit price bid for that Item, except as provided for in Article 10. C. When quantities are revised by a change in design approved by the City, by Change Order, or to correct an error, or to correct an error on the plans, the plans quantity will be increased or decreased by the amount involved in the change, and the 25% variance will apply to the new plans quantity. D. If the total Contract quantity multiplied by the unit price bid for an individual Item is less than $250 and the Item is not originally a plans quantity Item, then the Item may be paid as a plans quantity Item if the City and Contractor agree in writing to fix the final quantity as a plans quantity. E. For callout work or non-site specific Contracts, the plans quantity measurement requirements are not applicable. ARTICLE 12 – CHANGE OF CONTRACT PRICE; CHANGE OF CONTRACT TIME 12.01 Change of Contract Price A. The Contract Price may only be changed by a Change Order. B. The value of any Work covered by a Change Order will be determined as follows: 1. where the Work involved is covered by unit prices contained in the Contract Documents, by application of such unit prices to the quantities of the items involved (subject to the provisions of Paragraph 11.03); or 2. where the Work involved is not covered by unit prices contained in the Contract Documents, by a mutually agreed lump sum or unit price (which may include an allowance for overhead and profit not necessarily in accordance with Paragraph 12.01.C.2), and shall include the cost of any secondary impacts that are foreseeable at the time of pricing the cost of Extra Work; or 3. where the Work involved is not covered by unit prices contained in the Contract Documents DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 453 00 72 00 - 1 GENERAL CONDITIONS Page 46 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 and agreement to a lump sum or unit price is not reached under Paragraph 12.01.B.2, on the basis of the Cost of the Work (determined as provided in Paragraph 11.01) plus a Contractor’s fee for overhead and profit (determined as provided in Paragraph 12.01.C). C.Contractor’s Fee: The Contractor’s additional fee for overhead and profit shall be determined as follows: 1. a mutually acceptable fixed fee; or 2. if a fixed fee is not agreed upon, then a fee based on the following percentages of the various portions of the Cost of the Work: a. for costs incurred under Paragraphs 11.01.A.1, 11.01.A.2. and 11.01.A.3, the Contractor’s additional fee shall be 15 percent except for: 1) rental fees for Contractor’s own equipment using standard rental rates; 2) bonds and insurance; b. for costs incurred under Paragraph 11.01.A.4 and 11.01.A.5, the Contractor’s fee shall be five percent (5%); 1) where one or more tiers of subcontracts are on the basis of Cost of the Work plus a fee and no fixed fee is agreed upon, the intent of Paragraphs 12.01.C.2.a and 12.01.C.2.b is that the Subcontractor who actually performs the Work, at whatever tier, will be paid a fee of 15 percent of the costs incurred by such Subcontractor under Paragraphs 11.01.A.1 and 11.01.A.2 and that any higher tier Subcontractor and Contractor will each be paid a fee of five percent (5%) of the amount paid to the next lower tier Subcontractor, however in no case shall the cumulative total of fees paid be in excess of 25%; c. no fee shall be payable on the basis of costs itemized under Paragraphs 11.01.A.6, and 11.01.B; d. the amount of credit to be allowed by Contractor to City for any change which results in a net decrease in cost will be the amount of the actual net decrease in cost plus a deduction in Contractor’s fee by an amount equal to five percent (5%) of such net decrease. 12.02 Change of Contract Time A. The Contract Time may only be changed by a Change Order. B. No extension of the Contract Time will be allowed for Extra Work or for claimed delay unless the Extra Work contemplated or claimed delay is shown to be on the critical path of the Project Schedule or Contractor can show by Critical Path Method analysis how the Extra Work or claimed delay adversely affects the critical path. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 454 00 72 00 - 1 GENERAL CONDITIONS Page 47 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 12.03 Delays A. Where Contractor is reasonably delayed in the performance or completion of any part of the Work within the Contract Time due to delay beyond the control of Contractor, the Contract Time may be extended in an amount equal to the time lost due to such delay if a Contract Claim is made therefor. Delays beyond the control of Contractor shall include, but not be limited to, acts or neglect by City, acts or neglect of utility owners or other contractors performing other work as contemplated by Article 7, fires, floods, epidemics, abnormal weather conditions, or acts of God. Such an adjustment shall be Contractor’s sole and exclusive remedy for the delays described in this Paragraph. B. If Contractor is delayed, City shall not be liable to Contractor for any claims, costs, losses, or damages (including but not limited to all fees and charges of engineers, architects, attorneys, and other professionals and all court or arbitration or other dispute resolution costs) sustained by Contractor on or in connection with any other project or anticipated project. C. Contractor shall not be entitled to an adjustment in Contract Price or Contract Time for delays within the control of Contractor. Delays attributable to and within the control of a Subcontractor or Supplier shall be deemed to be delays within the control of Contractor. D. The Contractor shall receive no compensation for delays or hindrances to the Work, except when direct and unavoidable extra cost to the Contractor is caused by the failure of the City to provide information or material, if any, which is to be furnished by the City. ARTICLE 13 – TESTS AND INSPECTIONS; CORRECTION, REMOVAL OR ACCEPTANCE OF DEFECTIVE WORK 13.01 Notice of Defects Notice of all defective Work of which City has actual knowledge will be given to Contractor. Defective Work may be rejected, corrected, or accepted as provided in this Article 13. 13.02 Access to Work City, independent testing laboratories, and governmental agencies with jurisdictional interests will have access to the Site and the Work at reasonable times for their observation, inspection, and testing. Contractor shall provide them proper and safe conditions for such access and advise them of Contractor’s safety procedures and programs so that they may comply therewith as applicable. 13.03 Tests and Inspections A. Contractor shall give City timely notice of readiness of the Work for all required inspections, tests, or approvals and shall cooperate with inspection and testing personnel to facilitate required inspections or tests. B. If Contract Documents, Laws or Regulations of any public body having jurisdiction require any DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 455 00 72 00 - 1 GENERAL CONDITIONS Page 48 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 of the Work (or part thereof) to be inspected, tested, or approved, Contractor shall assume full responsibility for arranging and obtaining such independent inspections, tests, retests or approvals, pay all costs in connection therewith, and furnish City the required certificates of inspection or approval; excepting, however, those fees specifically identified in the Supplementary Conditions or any Texas Department of Licensure and Regulation (TDLR) inspections, which shall be paid as described in the Supplementary Conditions. C. Contractor shall be responsible for arranging and obtaining and shall pay all costs in connection with any inspections, tests, re-tests, or approvals required for City’s acceptance of materials or equipment to be incorporated in the Work; or acceptance of materials, mix designs, or equipment submitted for approval prior to Contractor’s purchase thereof for incorporation in the Work. Such inspections, tests, re-tests, or approvals shall be performed by organizations acceptable to City. D. City may arrange for the services of an independent testing laboratory (“Testing Lab”) to perform any inspections or tests (“Testing”) for any part of the Work, as determined solely by City. 1. City will coordinate such Testing to the extent possible, with Contractor; 2. Should any Testing under this Section 13.03 D result in a “fail”, “did not pass” or other similar negative result, the Contractor shall be responsible for paying for any and all retests. Contractor’s cancellation without cause of City initiated Testing shall be deemed a negative result and require a retest. 3. Any amounts owed for any retest under this Section 13.03 D shall be paid directly to the Testing Lab by Contractor. City will forward all invoices for retests to Contractor. 4. If Contractor fails to pay the Testing Lab, City will not issue Final Payment until the Testing Lab is paid. E. If any Work (or the work of others) that is to be inspected, tested, or approved is covered by Contractor without written concurrence of City, Contractor shall, if requested by City, uncover such Work for observation. F. Uncovering Work as provided in Paragraph 13.03.E shall be at Contractor’s expense. G. Contractor shall have the right to make a Contract Claim regarding any retest or invoice issued under Section 13.03 D. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 456 00 72 00 - 1 GENERAL CONDITIONS Page 49 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 13.04 Uncovering Work A. If any Work is covered contrary to the Contract Documents or specific instructions by the City, it must, if requested by City, be uncovered for City’s observation and replaced at Contractor’s expense. B. If City considers it necessary or advisable that covered Work be observed by City or inspected or tested by others, Contractor, at City’s request, shall uncover, expose, or otherwise make available for observation, inspection, or testing as City may require, that portion of the Work in question, furnishing all necessary labor, material, and equipment. 1. If it is found that the uncovered Work is defective, Contractor shall pay all claims, costs, losses, and damages (including but not limited to all fees and charges of engineers, architects, attorneys, and other professionals and all court or other dispute resolution costs) arising out of or relating to such uncovering, exposure, observation, inspection, and testing, and of satisfactory replacement or reconstruction (including but not limited to all costs of repair or replacement of work of others); or City shall be entitled to accept defective Work in accordance with Paragraph 13.08 in which case Contractor shall still be responsible for all costs associated with exposing, observing, and testing the defective Work. 2. If the uncovered Work is not found to be defective, Contractor shall be allowed an extension of the Contract Time directly attributable to such uncovering, exposure, observation, inspection, testing, replacement, and reconstruction. 13.05 City May Stop the Work If the Work is defective, or Contractor fails to supply sufficient skilled workers or suitable materials or equipment, or fails to perform the Work in such a way that the completed Work will conform to the Contract Documents, City may order Contractor to stop the Work, or any portion thereof, until the cause for such order has been eliminated; however, this right of City to stop the Work shall not give rise to any duty on the part of City to exercise this right for the benefit of Contractor, any Subcontractor, any Supplier, any other individual or entity, or any surety for, or employee or agent of any of them. 13.06 Correction or Removal of Defective Work A. Promptly after receipt of written notice, Contractor shall correct all defective Work pursuant to an acceptable schedule, whether or not fabricated, installed, or completed, or, if the Work has been rejected by City, remove it from the Project and replace it with Work that is not defective. Contractor shall pay all claims, costs, additional testing, losses, and damages (including but not limited to all fees and charges of engineers, architects, attorneys, and other professionals and all court or arbitration or other dispute resolution costs) arising out of or relating to such correction or removal (including but not limited to all costs of repair or replacement of work of others). Failure to require the removal of any defective Work shall not constitute acceptance of such Work. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 457 00 72 00 - 1 GENERAL CONDITIONS Page 50 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 B. When correcting defective Work under the terms of this Paragraph 13.06 or Paragraph 13.07, Contractor shall take no action that would void or otherwise impair City’s special warranty and guarantee, if any, on said Work. 13.07 Correction Period A. If within two (2) years after the date of Final Acceptance (or such longer period of time as may be prescribed by the terms of any applicable special guarantee required by the Contract Documents), any Work is found to be defective, or if the repair of any damages to the land or areas made available for Contractor’s use by City or permitted by Laws and Regulations as contemplated in Paragraph 6.10.A is found to be defective, Contractor shall promptly, without cost to City and in accordance with City’s written instructions: 1. repair such defective land or areas; or 2. correct such defective Work; or 3. if the defective Work has been rejected by City, remove it from the Project and replace it with Work that is not defective, and 4. satisfactorily correct or repair or remove and replace any damage to other Work, to the work of others or other land or areas resulting therefrom. B. If Contractor does not promptly comply with the terms of City’s written instructions, or in an emergency where delay would cause serious risk of loss or damage, City may have the defective Work corrected or repaired or may have the rejected Work removed and replaced. All claims, costs, losses, and damages (including but not limited to all fees and charges of engineers, architects, attorneys, and other professionals and all court or other dispute resolution costs) arising out of or relating to such correction or repair or such removal and replacement (including but not limited to all costs of repair or replacement of work of others) will be paid by Contractor. C. In special circumstances where a particular item of equipment is placed in continuous service before Final Acceptance of all the Work, the correction period for that item may start to run from an earlier date if so provided in the Contract Documents. D. Where defective Work (and damage to other Work resulting therefrom) has been corrected or removed and replaced under this Paragraph 13.07, the correction period hereunder with respect to such Work may be required to be extended for an additional period of one year after the end of the initial correction period. City shall provide 30 days written notice to Contractor should such additional warranty coverage be required. Contractor may dispute this requirement by filing a Contract Claim, pursuant to Paragraph 10.06. E. Contractor’s obligations under this Paragraph 13.07 are in addition to any other obligation or warranty. The provisions of this Paragraph 13.07 shall not be construed as a substitute for, or a waiver of, the provisions of any applicable statute of limitation or repose. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 458 00 72 00 - 1 GENERAL CONDITIONS Page 51 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 13.08 Acceptance of Defective Work If, instead of requiring correction or removal and replacement of defective Work, City prefers to accept it, City may do so. Contractor shall pay all claims, costs, losses, and damages (including but not limited to all fees and charges of engineers, architects, attorneys, and other professionals and all court or other dispute resolution costs) attributable to City’s evaluation of and determination to accept such defective Work and for the diminished value of the Work to the extent not otherwise paid by Contractor. If any such acceptance occurs prior to Final Acceptance, a Change Order will be issued incorporating the necessary revisions in the Contract Documents with respect to the Work, and City shall be entitled to an appropriate decrease in the Contract Price, reflecting the diminished value of Work so accepted. 13.09 City May Correct Defective Work A. If Contractor fails within a reasonable time after written notice from City to correct defective Work, or to remove and replace rejected Work as required by City in accordance with Paragraph 13.06.A, or if Contractor fails to perform the Work in accordance with the Contract Documents, or if Contractor fails to comply with any other provision of the Contract Documents, City may, after seven (7) days written notice to Contractor, correct, or remedy any such deficiency. B. In exercising the rights and remedies under this Paragraph 13.09, City shall proceed expeditiously. In connection with such corrective or remedial action, City may exclude Contractor from all or part of the Site, take possession of all or part of the Work and suspend Contractor’s services related thereto, and incorporate in the Work all materials and equipment incorporated in the Work, stored at the Site or for which City has paid Contractor but which are stored elsewhere. Contractor shall allow City, City’s representatives, agents, consultants, employees, and City’s other contractors, access to the Site to enable City to exercise the rights and remedies under this Paragraph. C. All claims, costs, losses, and damages (including but not limited to all fees and charges of engineers, architects, attorneys, and other professionals and all court or other dispute resolution costs) incurred or sustained by City in exercising the rights and remedies under this Paragraph 13.09 will be charged against Contractor, and a Change Order will be issued incorporating the necessary revisions in the Contract Documents with respect to the Work; and City shall be entitled to an appropriate decrease in the Contract Price. D. Contractor shall not be allowed an extension of the Contract Time because of any delay in the performance of the Work attributable to the exercise of City’s rights and remedies under this Paragraph 13.09. ARTICLE 14 – PAYMENTS TO CONTRACTOR AND COMPLETION 14.01 Schedule of Values The Schedule of Values for lump sum contracts established as provided in Paragraph 2.07 will serve as the basis for progress payments and will be incorporated into a form of Application for Payment DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 459 00 72 00 - 1 GENERAL CONDITIONS Page 52 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 acceptable to City. Progress payments on account of Unit Price Work will be based on the number of units completed. 14.02 Progress Payments A.Applications for Payments: 1. Contractor is responsible for providing all information as required to become a vendor of the City. 2. At least 20 days before the date established in the General Requirements for each progress payment, Contractor shall submit to City for review an Application for Payment filled out and signed by Contractor covering the Work completed as of the date of the Application and accompanied by such supporting documentation as is required by the Contract Documents. 3. If payment is requested on the basis of materials and equipment not incorporated in the Work but delivered and suitably stored at the Site or at another location agreed to in writing, the Application for Payment shall also be accompanied by a bill of sale, invoice, or other documentation warranting that City has received the materials and equipment free and clear of all Liens and evidence that the materials and equipment are covered by appropriate insurance or other arrangements to protect City’s interest therein, all of which must be satisfactory to City. 4. Beginning with the second Application for Payment, each Application shall include an affidavit of Contractor stating that previous progress payments received on account of the Work have been applied on account to discharge Contractor’s legitimate obligations associated with prior Applications for Payment. 5. The amount of retainage with respect to progress payments will be as stipulated in the Contract Documents. B.Review of Applications: 1. City will, after receipt of each Application for Payment, either indicate in writing a recommendation of payment or return the Application to Contractor indicating reasons for refusing payment. In the latter case, Contractor may make the necessary corrections and resubmit the Application. 2. City’s processing of any payment requested in an Application for Payment will be based on City’s observations of the executed Work, and on City’s review of the Application for Payment and the accompanying data and schedules, that to the best of City’s knowledge: a. the Work has progressed to the point indicated; b. the quality of the Work is generally in accordance with the Contract Documents (subject to an evaluation of the Work as a functioning whole prior to or upon Final Acceptance, DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 460 00 72 00 - 1 GENERAL CONDITIONS Page 53 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 the results of any subsequent tests called for in the Contract Documents, a final determination of quantities and classifications for Work performed under Paragraph 9.05, and any other qualifications stated in the recommendation). 3. Processing any such payment will not thereby be deemed to have represented that: a. inspections made to check the quality or the quantity of the Work as it has been performed have been exhaustive, extended to every aspect of the Work in progress, or involved detailed inspections of the Work beyond the responsibilities specifically assigned to City in the Contract Documents; or b. there may not be other matters or issues between the parties that might entitle Contractor to be paid additionally by City or entitle City to withhold payment to Contractor, or c. Contractor has complied with Laws and Regulations applicable to Contractor’s performance of the Work. 4. City may refuse to process the whole or any part of any payment because of subsequently discovered evidence or the results of subsequent inspections or tests, and revise or revoke any such payment previously made, to such extent as may be necessary to protect City from loss because: a. the Work is defective, or the completed Work has been damaged by the Contractor or his subcontractors, requiring correction or replacement; b. discrepancies in quantities contained in previous applications for payment; c. the Contract Price has been reduced by Change Orders; d. City has been required to correct defective Work or complete Work in accordance with Paragraph 13.09; or e. City has actual knowledge of the occurrence of any of the events enumerated in Paragraph 15.02.A. C.Retainage: 1. For all contracts, retainage shall be five percent (5%). D.Liquidated Damages: For each calendar day that any work shall remain uncompleted after the time specified in the Contract Documents, the sum per day specified in the Agreement, will be deducted from the monies due the Contractor, not as a penalty, but as liquidated damages suffered by the City. E.Payment: Contractor will be paid pursuant to the requirements of this Article 14 and payment will become due in accordance with the Contract Documents. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 461 00 72 00 - 1 GENERAL CONDITIONS Page 54 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 F.Reduction in Payment: 1. City may refuse to make payment of the amount requested because: a. Claims have been made against City on account of Contractor’s performance or furnishing of the Work; b. Liens have been filed in connection with the Work, except where Contractor has delivered a specific bond satisfactory to City to secure the satisfaction and discharge of such Liens; c. there are other items entitling City to a set-off against the amount recommended; or d. City has actual knowledge of the occurrence of any of the events enumerated in Paragraphs 14.02.B.4.a through 14.02.B.4.e or Paragraph 15.02.A. 2. If City refuses to make payment of the amount requested, City will give Contractor written notice stating the reasons for such action and pay Contractor any amount remaining after deduction of the amount so withheld. City shall pay Contractor the amount so withheld, or any adjustment thereto agreed to by City and Contractor, when Contractor remedies the reasons for such action. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 462 00 72 00 - 1 GENERAL CONDITIONS Page 55 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 14.03 Contractor’s Warranty of Title Contractor warrants and guarantees that title to all Work, materials, and equipment covered by any Application for Payment, whether incorporated in the Project or not, will pass to City no later than the time of payment free and clear of all Liens. 14.04 Partial Utilization A. Prior to Final Acceptance of all the Work, City may use or occupy any substantially completed part of the Work which has specifically been identified in the Contract Documents, or which City, determines constitutes a separately functioning and usable part of the Work that can be used by City for its intended purpose without significant interference with Contractor’s performance of the remainder of the Work. City at any time may notify Contractor in writing to permit City to use or occupy any such part of the Work which City determines to be ready for its intended use, subject to the following conditions: 1. Contractor at any time may notify City in writing that Contractor considers any such part of the Work ready for its intended use. 2. Within a reasonable time after notification as enumerated in Paragraph 14.05.A.1, City and Contractor shall make an inspection of that part of the Work to determine its status of completion. If City does not consider that part of the Work to be substantially complete, City will notify Contractor in writing giving the reasons therefor. 3. Partial Utilization will not constitute Final Acceptance by City. 14.05 Final Inspection A. Upon written notice from Contractor that the entire Work is complete in accordance with the Contract Documents: 1. City will promptly schedule a Final Inspection with Contractor. 2. City will notify Contractor in writing of all particulars in which this inspection reveals that the Work is incomplete or defective. Contractor shall immediately take such measures as are necessary to complete such Work or remedy such deficiencies. B. City reserves the right to deny request for Final Inspection if City determines that the entire Work is not sufficiently complete to warrant a Final Inspection. 14.06 Final Acceptance Upon completion by Contractor to City’s satisfaction, of any additional Work identified in the Final Inspection, City will issue to Contractor a letter of Final Acceptance. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 463 00 72 00 - 1 GENERAL CONDITIONS Page 56 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 14.07 Final Payment A.Application for Payment: 1. Upon Final Acceptance, and in the opinion of City, Contractor may make an application for final payment following the procedure for progress payments in accordance with the Contract Documents. 2. The final Application for Payment shall be accompanied (except as previously delivered) by: a. all documentation called for in the Contract Documents, including but not limited to the evidence of insurance required by Paragraph 5.03; b. consent of the surety, if any, to final payment; c. a list of all pending or released Damage Claims against City that Contractor believes are unsettled; and d. affidavits of payments and complete and legally effective releases or waivers (satisfactory to City) of all Lien rights arising out of or Liens filed in connection with the Work. B. Payment Becomes Due: 1. After City’s acceptance of the Application for Payment and accompanying documentation, requested by Contractor, less previous payments made and any sum City is entitled, including but not limited to liquidated damages, will become due and payable. 2. After all Damage Claims have been resolved: a. directly by the Contractor or; b. Contractor provides evidence that the Damage Claim has been reported to Contractor’s insurance provider for resolution. 3. The making of the final payment by the City shall not relieve the Contractor of any guarantees or other requirements of the Contract Documents which specifically continue thereafter. 14.08 Final Completion Delayed and Partial Retainage Release A. If final completion of the Work is significantly delayed, and if City so confirms, City may, upon receipt of Contractor’s final Application for Payment, and without terminating the Contract, make payment of the balance due for that portion of the Work fully completed and accepted. If the remaining balance to be held by City for Work not fully completed or corrected is less than the retainage stipulated in Paragraph 14.02.C, and if bonds have been furnished as required in Paragraph 5.02, the written consent of the surety to the payment of the balance due for that portion of the Work fully completed and accepted shall be submitted by Contractor to City with the Application for such payment. Such payment shall be made under the terms and conditions DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 464 00 72 00 - 1 GENERAL CONDITIONS Page 57 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 governing final payment, except that it shall not constitute a waiver of Contract Claims. B.Partial Retainage Release. For a Contract that provides for a separate vegetative establishment and maintenance, and test and performance periods following the completion of all other construction in the Contract Documents for all Work locations, the City may release a portion of the amount retained provided that all other work is completed as determined by the City. Before the release, all submittals and final quantities must be completed and accepted for all other work. An amount sufficient to ensure Contract compliance will be retained. 14.09 Waiver of Claims The acceptance of final payment will constitute a release of the City from all claims or liabilities under the Contract for anything done or furnished or relating to the work under the Contract Documents or any act or neglect of City related to or connected with the Contract. ARTICLE 15 – SUSPENSION OF WORK AND TERMINATION 15.01 City May Suspend Work A. At any time and without cause, City may suspend the Work or any portion thereof by written notice to Contractor and which may fix the date on which Work will be resumed. Contractor shall resume the Work on the date so fixed. During temporary suspension of the Work covered by these Contract Documents, for any reason, the City will make no extra payment for stand-by time of construction equipment and/or construction crews. B. Should the Contractor not be able to complete a portion of the Project due to causes beyond the control of and without the fault or negligence of the Contractor, and should it be determined by mutual consent of the Contractor and City that a solution to allow construction to proceed is not available within a reasonable period of time, Contractor may request an extension in Contract Time, directly attributable to any such suspension. C. If it should become necessary to suspend the Work for an indefinite period, the Contractor shall store all materials in such a manner that they will not obstruct or impede the public unnecessarily nor become damaged in any way, and he shall take every precaution to prevent damage or deterioration of the work performed; he shall provide suitable drainage about the work, and erect temporary structures where necessary. D. Contractor may be reimbursed for the cost of moving his equipment off the job and returning the necessary equipment to the job when it is determined by the City that construction may be resumed. Such reimbursement shall be based on actual cost to the Contractor of moving the equipment and no profit will be allowed. Reimbursement may not be allowed if the equipment is moved to another construction project for the City. 15.02 City May Terminate for Cause A. The occurrence of any one or more of the following events by way of example, but not of DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 465 00 72 00 - 1 GENERAL CONDITIONS Page 58 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 limitation, may justify termination for cause: 1. Contractor’s persistent failure to perform the Work in accordance with the Contract Documents (including, but not limited to, failure to supply sufficient skilled workers or suitable materials or equipment, failure to adhere to the Project Schedule established under Paragraph 2.07 as adjusted from time to time pursuant to Paragraph 6.04. 2. Contractor’s disregard of Laws or Regulations of any public body having jurisdiction; 3. Contractor’s repeated disregard of the authority of City; or 4. Contractor’s violation in any substantial way of any provisions of the Contract Documents; or 5. Contractor’s failure to promptly make good any defect in materials or workmanship, or defects of any nature, the correction of which has been directed in writing by the City; or 6. Substantial indication that the Contractor has made an unauthorized assignment of the Contract or any funds due therefrom for the benefit of any creditor or for any other purpose; or 7. Substantial evidence that the Contractor has become insolvent or bankrupt, or otherwise financially unable to carry on the Work satisfactorily; or 8. Contractor commences legal action in a court of competent jurisdiction against the City. B. If one or more of the events identified in Paragraph 15.02A. occur, City will provide written notice to Contractor and Surety to arrange a conference with Contractor and Surety to address Contractor's failure to perform the Work. Conference shall be held not later than 15 days, after receipt of notice. 1. If the City, the Contractor, and the Surety do not agree to allow the Contractor to proceed to perform the construction Contract, the City may, to the extent permitted by Laws and Regulations, declare a Contractor default and formally terminate the Contractor's right to complete the Contract. Contractor default shall not be declared earlier than 20 days after the Contractor and Surety have received notice of conference to address Contractor's failure to perform the Work. 2. If Contractor's services are terminated, Surety shall be obligated to take over and perform the Work. If Surety does not commence performance thereof within 15 consecutive calendar days after date of an additional written notice demanding Surety's performance of its obligations, then City, without process or action at law, may take over any portion of the Work and complete it as described below. a. If City completes the Work, City may exclude Contractor and Surety from the site and take possession of the Work, and all materials and equipment incorporated into the DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 466 00 72 00 - 1 GENERAL CONDITIONS Page 59 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 Work stored at the Site or for which City has paid Contractor or Surety but which are stored elsewhere, and finish the Work as City may deem expedient. 3. Whether City or Surety completes the Work, Contractor shall not be entitled to receive any further payment until the Work is finished. If the unpaid balance of the Contract Price exceeds all claims, costs, losses and damages sustained by City arising out of or resulting from completing the Work, such excess will be paid to Contractor. If such claims, costs, losses and damages exceed such unpaid balance, Contractor shall pay the difference to City. Such claims, costs, losses and damages incurred by City will be incorporated in a Change Order, provided that when exercising any rights or remedies under this Paragraph, City shall not be required to obtain the lowest price for the Work performed. 4. Neither City, nor any of its respective consultants, agents, officers, directors or employees shall be in any way liable or accountable to Contractor or Surety for the method by which the completion of the said Work, or any portion thereof, may be accomplished or for the price paid therefor. 5. City, notwithstanding the method used in completing the Contract, shall not forfeit the right to recover damages from Contractor or Surety for Contractor's failure to timely complete the entire Contract. Contractor shall not be entitled to any claim on account of the method used by City in completing the Contract. 6. Maintenance of the Work shall continue to be Contractor's and Surety's responsibilities as provided for in the bond requirements of the Contract Documents or any special guarantees provided for under the Contract Documents or any other obligations otherwise prescribed by law. C. Notwithstanding Paragraphs 15.02.B, Contractor’s services will not be terminated if Contractor begins within seven days of receipt of notice of intent to terminate to correct its failure to perform and proceeds diligently to cure such failure within no more than 30 days of receipt of said notice. D. Where Contractor’s services have been so terminated by City, the termination will not affect any rights or remedies of City against Contractor then existing or which may thereafter accrue. Any retention or payment of moneys due Contractor by City will not release Contractor from liability. E. If and to the extent that Contractor has provided a performance bond under the provisions of Paragraph 5.02, the termination procedures of that bond shall not supersede the provisions of this Article. 15.03 City May Terminate For Convenience A. City may, without cause and without prejudice to any other right or remedy of City, terminate the Contract. Any termination shall be effected by mailing a notice of the termination to the DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 467 00 72 00 - 1 GENERAL CONDITIONS Page 60 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 Contractor specifying the extent to which performance of Work under the contract is terminated, and the date upon which such termination becomes effective. Receipt of the notice shall be deemed conclusively presumed and established when the letter is placed in the United States Postal Service Mail by the City. Further, it shall be deemed conclusively presumed and established that such termination is made with just cause as therein stated; and no proof in any claim, demand or suit shall be required of the City regarding such discretionary action. B. After receipt of a notice of termination, and except as otherwise directed by the City, the Contractor shall: 1. Stop work under the Contract on the date and to the extent specified in the notice of termination; 2. place no further orders or subcontracts for materials, services or facilities except as may be necessary for completion of such portion of the Work under the Contract as is not terminated; 3. terminate all orders and subcontracts to the extent that they relate to the performance of the Work terminated by notice of termination; 4. transfer title to the City and deliver in the manner, at the times, and to the extent, if any, directed by the City: a. the fabricated or unfabricated parts, Work in progress, completed Work, supplies and other material produced as a part of, or acquired in connection with the performance of, the Work terminated by the notice of the termination; and b. the completed, or partially completed plans, drawings, information and other property which, if the Contract had been completed, would have been required to be furnished to the City. 5. complete performance of such Work as shall not have been terminated by the notice of termination; and 6. take such action as may be necessary, or as the City may direct, for the protection and preservation of the property related to its contract which is in the possession of the Contractor and in which the owner has or may acquire the rest. C. At a time not later than 30 days after the termination date specified in the notice of termination, the Contractor may submit to the City a list, certified as to quantity and quality, of any or all items of termination inventory not previously disposed of, exclusive of items the disposition of which has been directed or authorized by City. D. Not later than 15 days thereafter, the City shall accept title to such items provided, that the list DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 468 00 72 00 - 1 GENERAL CONDITIONS Page 61 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 submitted shall be subject to verification by the City upon removal of the items or, if the items are stored, within 45 days from the date of submission of the list, and any necessary adjustments to correct the list as submitted, shall be made prior to final settlement. E. Not later than 60 days after the notice of termination, the Contractor shall submit his termination claim to the City in the form and with the certification prescribed by the City. Unless an extension is made in writing within such 60 day period by the Contractor, and granted by the City, any and all such claims shall be conclusively deemed waived. F. In such case, Contractor shall be paid for (without duplication of any items): 1. completed and acceptable Work executed in accordance with the Contract Documents prior to the effective date of termination, including fair and reasonable sums for overhead and profit on such Work; 2. expenses sustained prior to the effective date of termination in performing services and furnishing labor, materials, or equipment as required by the Contract Documents in connection with uncompleted Work, plus fair and reasonable sums for overhead and profit on such expenses; and 3. reasonable expenses directly attributable to termination. G. In the event of the failure of the Contractor and City to agree upon the whole amount to be paid to the Contractor by reason of the termination of the Work, the City shall determine, on the basis of information available to it, the amount, if any, due to the Contractor by reason of the termination and shall pay to the Contractor the amounts determined. Contractor shall not be paid on account of loss of anticipated profits or revenue or other economic loss arising out of or resulting from such termination. ARTICLE 16 – DISPUTE RESOLUTION 16.01 Methods and Procedures A. Either City or Contractor may request mediation of any Contract Claim submitted for a decision under Paragraph 10.06 before such decision becomes final and binding. The request for mediation shall be submitted to the other party to the Contract. Timely submission of the request shall stay the effect of Paragraph 10.06.E. B. City and Contractor shall participate in the mediation process in good faith. The process shall be commenced within 60 days of filing of the request. C. If the Contract Claim is not resolved by mediation, City’s action under Paragraph 10.06.C or a denial pursuant to Paragraphs 10.06.C.3 or 10.06.D shall become final and binding 30 days after termination of the mediation unless, within that time period, City or Contractor: 1. elects in writing to invoke any other dispute resolution process provided for in the DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 469 00 72 00 - 1 GENERAL CONDITIONS Page 62 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 Supplementary Conditions; or 2. agrees with the other party to submit the Contract Claim to another dispute resolution process; or 3. gives written notice to the other party of the intent to submit the Contract Claim to a court of competent jurisdiction. ARTICLE 17 – MISCELLANEOUS 17.01 Giving Notice A. Whenever any provision of the Contract Documents requires the giving of written notice, it will be deemed to have been validly given if: 1. delivered in person to the individual or to a member of the firm or to an officer of the corporation for whom it is intended; or 2. delivered at or sent by registered or certified mail, postage prepaid, to the last business address known to the giver of the notice. 3. delivered by electronic means to or from the Project Manager. B. Business address changes must be promptly made in writing to the other party. C. Whenever the Contract Documents specifies giving notice by electronic means such electronic notice shall be deemed sufficient upon confirmation of receipt by the receiving party. 17.02 Computation of Times When any period of time is referred to in the Contract Documents by days, it will be computed to exclude the first and include the last day of such period. If the last day of any such period falls on a Saturday or Sunday or on a day made a legal holiday the next Working Day shall become the last day of the period. 17.03 Cumulative Remedies The duties and obligations imposed by these General Conditions and the rights and remedies available hereunder to the parties hereto are in addition to, and are not to be construed in any way as a limitation of, any rights and remedies available to any or all of them which are otherwise imposed or available by Laws or Regulations, by special warranty or guarantee, or by other provisions of the Contract Documents. The provisions of this Paragraph will be as effective as if repeated specifically in the Contract Documents in connection with each particular duty, obligation, right, and remedy to which they apply. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 470 00 72 00 - 1 GENERAL CONDITIONS Page 63 of 63 CITY OF DENTON STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS Revised September 20, 2018 17.04 Survival of Obligations All representations, indemnifications, warranties, and guarantees made in, required by, or given in accordance with the Contract Documents, as well as all continuing obligations indicated in the Contract Documents, will survive final payment, completion, and acceptance of the Work or termination or completion of the Contract or termination of the services of Contractor. 17.05 Headings Article and paragraph headings are inserted for convenience only and do not constitute parts of these General Conditions. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 471 00 73 00 - 1 SUPPLEMENTARY CONDITIONS Page 1 of 5 CITY OF DENTON File # / IFB #7252 STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS DTN16385 Revised September 20, 2018 SECTION 00 73 00 SUPPLEMENTARY CONDITIONS TO GENERAL CONDITIONS Supplementary Conditions These Supplementary Conditions modify and supplement Section 00 72 00 - General Conditions, and other provisions of the Contract Documents as indicated below. All provisions of the General Conditions that are modified or supplemented remain in full force and effect as so modified or supplemented. All provisions of the General Conditions which are not so modified or supplemented remain in full force and effect. Defined Terms The terms used in these Supplementary Conditions which are defined in the General Conditions have the meaning assigned to them in the General Conditions, unless specifically noted herein. Modifications and Supplements The following are instructions that modify or supplement specific paragraphs in the General Conditions and other Contract Documents. SC-4.01A Easement limits shown on the Drawing are approximate and were provided to establish a basis for bidding. Upon receiving the final easements descriptions, Contractor shall compare them to the lines shown on the Contract Drawings. SC-4.01A.1., “Availability of Lands” The following is a list of known outstanding right-of-way, and/or easements to be acquired, if any as January 2021. Outstanding Right-Of-Way, and/or Easements to Be Acquired PARCEL NUMBER OWNER TARGET DATE OF POSSESSION None The Contractor understands and agrees that the dates listed above are estimates only, are not guaranteed, and do not bind the City. If Contractor considers the final easements provided to differ materially from the representations on the Contract Drawings, Contractor shall within five (5) Business Days and before proceeding with the Work, notify City in writing associated with the differing easement line locations. SC-4.01A.2, “Availability of Lands” Utilities or obstructions to be removed, adjusted, and/or relocated The following is list of utilities and/or obstructions that have not been removed, adjusted, and/or relocated as of January 2021. DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 472 00 73 00 - 2 SUPPLEMENTARY CONDITIONS Page 2 of 5 CITY OF DENTON File # / IFB #7252 STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS DTN16385 Revised September 20, 2018 EXPECTED OWNER UTILITY AND LOCATION TARGET DATE OF ADJUSTMENT None The Contractor understands and agrees that the dates listed above are estimates only, are not guaranteed, and do not bind the City. SC-4.02A., “Subsurface and Physical Conditions” The following are reports of explorations and tests of subsurface conditions at the site of the Work: A Geotechnical Investigation for Hickory Creek Interceptor Report, dated 9/7/2017, prepared by Freese and Nichols, Inc., a consultant of the City, providing additional information on periodic geotechnical conditions. The following are drawings of physical conditions in or relating to existing surface and subsurface structures (except Underground Facilities) which are at or contiguous to the site of the Work: None. SC-4.06A., “Hazardous Environmental Conditions at Site” The following are reports and drawings of existing hazardous environmental conditions known to the City: None. SC-5.03A., “Certificates of Insurance” The entities listed below are "additional insureds as their interest may appear" including their respective officers, directors, agents and employees. (1) City (2) Consultant: Freese and Nichols, Inc. (3) Other: Teague Nall and Perkins, Inc., Geoscience Consultants, Gorrondona & Associates, Inc., Texplor of Dallas, Inc. SC-5.04A., “Contractor’s Insurance” The limits of liability for the insurance required by Paragraph GC-5.04 shall provide the following coverages for not less than the following amounts or greater where required by laws and regulations: 5.04A. Workers' Compensation, under Paragraph GC-5.04A. Statutory limits Employer's liability $100,000 each accident/occurrence $100,000 Disease - each employee $500,000 Disease - policy limit SC-5.04B., “Contractor’s Insurance” DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 473 00 73 00 - 3 SUPPLEMENTARY CONDITIONS Page 3 of 5 CITY OF DENTON File # / IFB #7252 STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS DTN16385 Revised September 20, 2018 5.04B. Commercial General Liability, under Paragraph GC-5.04B. Contractor's Liability Insurance under Paragraph GC-5.04B., which shall be on a per project basis covering the Contractor with minimum limits of: $1,000,000 each occurrence $2,000,000 aggregate limit The policy must have an endorsement (Amendment – Aggregate Limits of Insurance) making the General Aggregate Limits apply separately to each job site. The Commercial General Liability Insurance policies shall provide “X”, “C”, and “U” coverage’s. Verification of such coverage must be shown in the Remarks Article of the Certificate of Insurance. SC 5.04C., “Contractor’s Insurance” 5.04C. Automobile Liability, under Paragraph GC-5.04C. Contractor’s Liability Insurance under Paragraph GC-5.04C., which shall be in an amount not less than the following amounts: (1)Automobile Liability - a commercial business policy shall provide coverage on "Any Auto", defined as autos owned, hired and non-owned. $1,000,000 each accident on a combined single limit basis. Split limits are acceptable if limits are at least: $250,000 Bodily Injury per person / $500,000 Bodily Injury per accident / $100,000 Property Damage SC-5.04D., “Contractor’s Insurance” The Contractor’s construction activities will require its employees, agents, subcontractors, equipment, and material deliveries to cross railroad properties and tracks, or perform work within 25 feet of the center line of tracks owned and operated by Union Pacific Railroad. The Contractor shall conduct its operations on railroad properties in such a manner as not to interfere with, hinder, or obstruct the railroad company in any manner whatsoever in the use or operation of its/their trains or other property. Such operations on railroad properties may require that Contractor to execute a “Right of Entry Agreement” with the particular railroad company or companies involved, and to this end the Contractor should satisfy itself as to the requirements of each railroad company and be prepared to execute the right-of-entry (if any) required by a railroad company. The requirements specified herein likewise relate to the Contractor’s use of private and/or construction access roads crossing said railroad company’s properties. The Contractual Liability coverage required by Paragraph 5.04D of the General Conditions shall provide coverage for not less than the following amounts, issued by companies satisfactory to the City and to the Railroad Company for a term that continues for so long as the Contractor’s operations and work cross, occupy, or touch railroad property: (1) General Aggregate:$Confirm Limits with Railroad (2) Each Occurrence:$Confirm Limits with Railroad Required for this Contract Not required for this Contract <Provide an “X” next to the appropriate selection above based on the Contract requirements> With respect to the above outlined insurance requirements, the following shall govern: DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 474 00 73 00 - 4 SUPPLEMENTARY CONDITIONS Page 4 of 5 CITY OF DENTON File # / IFB #7252 STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS DTN16385 Revised September 20, 2018 1. Where a single railroad company is involved, the Contractor shall provide one insurance policy in the name of the railroad company. However, if more than one grade separation or at-grade crossing is affected by the Project at entirely separate locations on the line or lines of the same railroad company, separate coverage may be required, each in the amount stated above. 2. Where more than one railroad company is operating on the same right-of-way or where several railroad companies are involved and operated on their own separate rights-of-way, the Contractor may be required to provide separate insurance policies in the name of each railroad company. 3. If, in addition to a grade separation or an at-grade crossing, other work or activity is proposed on a railroad company’s right-of-way at a location entirely separate from the grade separation or at- grade crossing, insurance coverage for this work must be included in the policy covering the grade separation. 4. If no grade separation is involved but other work is proposed on a railroad company’s right-of- way, all such other work may be covered in a single policy for that railroad, even though the work may be at two or more separate locations. No work or activities on a railroad company’s property to be performed by the Contractor shall be commenced until the Contractor has furnished the City with an original policy or policies of the insurance for each railroad company named, as required above. All such insurance must be approved by the City and each affected Railroad Company prior to the Contractor’s beginning work. The insurance specified above must be carried until all Work to be performed on the railroad right-of-way has been completed and the grade crossing, if any, is no longer used by the Contractor. In addition, insurance must be carried during all maintenance and/or repair work performed in the railroad right-of-way. Such insurance must name the railroad company as the insured, together with any tenant or lessee of the railroad company operating over tracks involved in the Project. SC-6.09., “Permits and Utilities” SC-6.09A., “Contractor obtained permits and licenses” The following are known permits and/or licenses required by the Contract to be acquired by the Contractor: 1. None. SC-6.09B. “City obtained permits and licenses” The following are known permits and/or licenses required by the Contract to be acquired by the City: 2. TxDOT 3. TCEQ 4. Union Pacific Railroad SC-6.09C. “Outstanding permits and licenses” The following is a list of known outstanding permits and/or licenses to be acquired, if any as of January 29, 2021. Outstanding Permits and/or Licenses to Be Acquired OWNER PERMIT OR LICENSE AND LOCATION TARGET DATE OF POSSESSION Union Pacific Railroad Railroad crossing at STA 25+41.58 to STA 26+91.58.April 1, 2021 DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 475 00 73 00 - 5 SUPPLEMENTARY CONDITIONS Page 5 of 5 CITY OF DENTON File # / IFB #7252 STANDARD CONSTRUCTION SPECIFICATION DOCUMENTS DTN16385 Revised September 20, 2018 SC-7.02., “Coordination” The individuals or entities listed below have contracts with the City for the performance of other work at the Site: Vendor Scope of Work Coordination Authority THC/Archaeology Phase 2 Archaeological Testing City of Denton SC-8.01, “Communications to Contractor” TxDOT Union Pacific Railroad SC-9.01., “City’s Project Manager” The City’s Project Manager for this Contract is Tracy Beck, PE, or his/her successor pursuant to written notification from the City Engineer. SC-13.03C., “Tests and Inspections” None. SC-16.01C.1, “Methods and Procedures” None. END OF SECTION DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 476 Exhibit CONFLICT OF INTEREST QUESTIONNAIRE - FORM CIQ For vendor or other person doing business with local governmental entity This questionnaire reflects changes made to the law by H.B. 23, 84th Leg., Regular Session. This questionnaire is being filed in accordance with Chapter 176, Local Government Code, by a vendor who has a business relationship as defined by Section 176.001(1-a) with a local governmental entity and the vendor meets requirements under Section 176.006(a). By law this questionnaire must be filed with the records administrator of the local government entity not later than the 7th business day after the date the vendor becomes aware of facts that require the statement to be filed. See Section 176.006(a-1), Local Government Code. A vendor commits an offense if the vendor knowingly violates Section 176.006, Local Government Code. An offense under this section is a misdemeanor. 1 Name of vendor who has a business relationship with local governmental entity. 2 Check this box if you are filing an update to a previously filed questionnaire. (The law requires that you file an updated completed questionnaire with the appropriate filing authority not later than the 7th business day after the date on which you became aware that the originally filed questionnaire was incomplete or inaccurate.) 3 Name of local government officer about whom the information in this section is being disclosed. Name of Officer This section, (item 3 including subparts A, B, C & D), must be completed for each officer with whom the vendor has an employment or other business relationship as defined by Section 176.001(1-a), Local Government Code. Attach additional pages to this Form CIQ as necessary. A. Is the local government officer named in this section receiving or likely to receive taxable income, other than investment income, from the vendor? Yes No B. Is the vendor receiving or likely to receive taxable income, other than investment income, from or at the direction of the local government officer named in this section AND the taxable income is not received from the local governmental entity? Yes No C. Is the filer of this questionnaire employed by a corporation or other business entity with respect to which the local government officer serves as an officer or director, or holds an ownership of one percent or more? Yes No D. Describe each employment or business and family relationship with the local government officer named in this section. 4 I have no Conflict of Interest to disclose. 5 Signature of vendor doing business with the governmental entity Date DocuSign Envelope ID: 087DA53D-2052-4386-B4E4-F75AC92315F6 CIQ Mountain Cascade of Texas, LLC 4/29/2021 477 Certificate Of Completion Envelope Id: 087DA53D20524386B4E4F75AC92315F6 Status: Sent Subject: Please DocuSign: City Council Contract 7252 - Hickory Creek Interceptor I and II Source Envelope: Document Pages: 99 Signatures: 4 Envelope Originator: Certificate Pages: 6 Initials: 1 Cori Power AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-06:00) Central Time (US & Canada) 901B Texas Street Denton, TX 76209 cori.power@cityofdenton.com IP Address: 198.49.140.104 Record Tracking Status: Original 4/27/2021 6:15:56 PM Holder: Cori Power cori.power@cityofdenton.com Location: DocuSign Signer Events Signature Timestamp Cori Power cori.power@cityofdenton.com Senior Buyer City of Denton Security Level: Email, Account Authentication (None) Completed Using IP Address: 198.49.140.104 Sent: 4/27/2021 6:16:44 PM Viewed: 4/27/2021 6:18:12 PM Signed: 4/27/2021 6:19:27 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Lori Hewell lori.hewell@cityofdenton.com Purchasing Manager City of Denton Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 198.49.140.104 Sent: 4/27/2021 6:19:30 PM Viewed: 4/27/2021 6:48:37 PM Signed: 4/27/2021 6:50:01 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Marcella Lunn marcella.lunn@cityofdenton.com Deputy City Attorney City of Denton Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 68.185.202.16 Sent: 4/27/2021 6:50:03 PM Viewed: 4/28/2021 1:42:56 PM Signed: 4/28/2021 1:46:06 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Andrew McCulloch AMcCulloch@mountaincascade.com Vice-President Harber Co.Inc. dba Mountain Cascade of Nevada Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 67.161.180.218 Sent: 4/28/2021 1:46:09 PM Viewed: 4/29/2021 2:22:31 PM Signed: 4/29/2021 4:25:27 PM Electronic Record and Signature Disclosure: Accepted: 4/29/2021 2:22:31 PM ID: 67f805ed-b09c-4ce6-9fe2-9b8661ea0b22 478 Signer Events Signature Timestamp Rebecca Diviney Rebecca.Diviney@cityofdenton.com Director of Capital Projects/City Engineer Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 198.49.140.10 Sent: 4/29/2021 4:25:31 PM Viewed: 4/29/2021 4:26:41 PM Signed: 4/29/2021 4:27:13 PM Electronic Record and Signature Disclosure: Accepted: 4/29/2021 4:26:41 PM ID: 622a5e1c-5c68-4ad9-973b-227a0564c474 Cheyenne Defee cheyenne.defee@cityofdenton.com Contract Administrator City of Denton Security Level: Email, Account Authentication (None) Sent: 4/29/2021 4:27:17 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Sara Hensley sara.hensley@cityofdenton.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Rosa Rios rosa.rios@cityofdenton.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Accepted: 4/28/2021 10:43:28 AM ID: d27d63bf-b64d-49ec-bdc3-f66149f56cec In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Cheyenne Defee cheyenne.defee@cityofdenton.com Contract Administrator City of Denton Security Level: Email, Account Authentication (None) Sent: 4/27/2021 6:19:30 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Sherri Thurman sherri.thurman@cityofdenton.com City of Denton Security Level: Email, Account Authentication (None) Sent: 4/29/2021 4:27:17 PM 479 Carbon Copy Events Status Timestamp Electronic Record and Signature Disclosure: Not Offered via DocuSign Gretna Jones gretna.jones@cityofdenton.com Legal Secretary City of Denton Security Level: Email, Account Authentication (None) Sent: 4/29/2021 4:27:17 PM Viewed: 4/30/2021 8:59:22 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign City Secretary Office citysecretary@cityofdenton.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Tracy Beck Tracy.Beck@cityofdenton.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Accepted: 3/18/2021 6:29:33 PM ID: ab4003d0-7899-49c6-947e-ced05cf09ea9 Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 4/27/2021 6:16:44 PM Payment Events Status Timestamps Electronic Record and Signature Disclosure 480 ELECTRONIC RECORD AND SIGNATURE DISCLOSURE From time to time, City of Denton (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through your DocuSign, Inc. (DocuSign) Express user account. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to these terms and conditions, please confirm your agreement by clicking the 'I agree' button at the bottom of this document. Getting paper copies At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. For such copies, as long as you are an authorized user of the DocuSign system you will have the ability to download and print any documents we send to you through your DocuSign user account for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below. Withdrawing your consent If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below. Consequences of changing your mind If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. To indicate to us that you are changing your mind, you must withdraw your consent using the DocuSign 'Withdraw Consent' form on the signing page of your DocuSign account. This will indicate to us that you have withdrawn your consent to receive required notices and disclosures electronically from us and you will no longer be able to use your DocuSign Express user account to receive required notices and consents electronically from us or to sign electronically documents from us. All notices and disclosures will be sent to you electronically Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through your DocuSign user account all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us. Electronic Record and Signature Disclosure created on: 7/21/2017 3:59:03 PM Parties agreed to: Andrew McCulloch, Rebecca Diviney, Rosa Rios, Tracy Beck 481 How to contact City of Denton: You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows: To contact us by email send messages to: purchasing@cityofdenton.com To advise City of Denton of your new e-mail address To let us know of a change in your e-mail address where we should send notices and disclosures electronically to you, you must send an email message to us at melissa.kraft@cityofdenton.com and in the body of such request you must state: your previous e-mail address, your new e-mail address. We do not require any other information from you to change your email address.. In addition, you must notify DocuSign, Inc to arrange for your new email address to be reflected in your DocuSign account by following the process for changing e-mail in DocuSign. To request paper copies from City of Denton To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, you must send us an e-mail to purchasing@cityofdenton.com and in the body of such request you must state your e-mail address, full name, US Postal address, and telephone number. We will bill you for any fees at that time, if any. To withdraw your consent with City of Denton To inform us that you no longer want to receive future notices and disclosures in electronic format you may: i. decline to sign a document from within your DocuSign account, and on the subsequent page, select the check-box indicating you wish to withdraw your consent, or you may; ii. send us an e-mail to purchasing@cityofdenton.com and in the body of such request you must state your e-mail, full name, IS Postal Address, telephone number, and account number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process.. Required hardware and software Operating Systems: Windows2000? or WindowsXP? Browsers (for SENDERS): Internet Explorer 6.0? or above Browsers (for SIGNERS): Internet Explorer 6.0?, Mozilla FireFox 1.0, NetScape 7.2 (or above) Email: Access to a valid email account Screen Resolution: 800 x 600 minimum Enabled Security Settings: •Allow per session cookies •Users accessing the internet behind a Proxy Server must enable HTTP 1.1 settings via proxy connection ** These minimum requirements are subject to change. If these requirements change, we will provide you with an email message at the email address we have on file for you at that time providing you with the revised hardware and software requirements, at which time you will have the right to withdraw your consent. 482 Acknowledging your access and consent to receive materials electronically To confirm to us that you can access this information electronically, which will be similar to other electronic notices and disclosures that we will provide to you, please verify that you were able to read this electronic disclosure and that you also were able to print on paper or electronically save this page for your future reference and access or that you were able to e-mail this disclosure and consent to an address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving notices and disclosures exclusively in electronic format on the terms and conditions described above, please let us know by clicking the 'I agree' button below. By checking the 'I Agree' box, I confirm that: • I can access and read this Electronic CONSENT TO ELECTRONIC RECEIPT OF ELECTRONIC RECORD AND SIGNATURE DISCLOSURES document; and • I can print on paper the disclosure or save or send the disclosure to a place where I can print it, for future reference and access; and • Until or unless I notify City of Denton as described above, I consent to receive from exclusively through electronic means all notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to me by City of Denton during the course of my relationship with you. 483 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 21-955,Version:1 AGENDA CAPTION Consider adoption of an ordinance of the City of Denton,a Texas home-rule municipal corporation,authorizing the City Manager,or their designee,to execute a contract with Viking Construction,Inc.,for Micro Surfacing Services for the Streets Department;providing for the expenditure of funds therefor;and providing an effective date (RFP 7619 -awarded to Viking Construction,Inc.,for one (1)year,with the option for three (3)additional one (1) year extensions, in the total four (4) year not-to-exceed amount of $4,400,000.00). City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™484 City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: May 25, 2021 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or their designee, to execute a contract with Viking Construction, Inc., for Micro Surfacing Services for the Streets Department; providing for the expenditure of funds therefor; and providing an effective date (RFP 7619 – awarded to Viking Construction, Inc., for one (1) year, with the option for three (3) additional one (1) year extensions, in the total four (4) year not-to-exceed amount of $4,400,000.00). INFORMATION/BACKGROUND The City’s Street Department developed a work plan for preventative maintenance, which provides a list of suitable candidates to be treated for the 2021-22 Fiscal Year. Based on the Overall Condition Index (OCI) and field inspections, staff confirmed the street segments are suitable candidates for micro-surfacing. The contract is a set rate per square yard, which includes labor, equipment, and material as well as mobilization cost. The contractor will be required to meet the Street Department’s schedule, so the product is not compromised due to weather. Micro-surfacing can extend the life of a pavement section from five (5) to seven (7) years. This pavement treatment consists of a cold-applied paving mixture composed of polymer-modified asphalt emulsion, crushed aggregate, mineral filler, water, and a hardening-controlling additive. Micro-surfacing is used on flexible or rigid pavements in good structural condition with rutting or minor leveling needed, loss of friction, and/or low to medium severity surface distresses such as cracking and raveling. The City's micro surfacing program includes the following benefits: 1. High-quality materials 2. Strict specifications and performance-based design procedures, which yield a high-performance surface that corrects minor surface profile irregularities and ruts 3. Cures quickly for traffic return in less than an hour 4. Lasts longer than some other surface treatments such as slurry seals 5. Can be applied at night (or during cooler temperatures) The micro-surfacing material protects the pavement structure from moisture and the surface from further deterioration. Micro-surfacing is a cost-effective alternative to hot mix asphalt overlays for pavement preservation. Based on a historical spend and future projections the recommended not to exceed (NTE) for this contract is $4,400,000 for a total potential four (4) year contract. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 485 Request for Proposals was sent to 89 prospective suppliers, including seven (7) Denton firms. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. Three (3) proposals were received, references were checked, and proposals were evaluated based upon published criteria including price, delivery, compliance with specifications, and probable performance. Best and Final Offers (BAFO) were requested from the top firm. Based upon this evaluation, Viking Construction, Inc. was ranked the highest and determined to be the best value for the City. NIGP Code Used for Solicitation: 745-Road and Highway Building Materials (Asphaltic) Notifications sent for Solicitation sent in IonWave: 89 Number of Suppliers that viewed Solicitation in IonWave: 18 HUB-Historically Underutilized Business Invitations sent out: 6 SBE-Small Business Enterprise Invitations sent out: 31 Responses from Solicitation: 3 RECOMMENDATION Award a contract with Viking Construction, Inc., for Micro Surfacing Services for the Street Department, in a one (1) year, with the option for three (3) additional one (1) year extensions, in the total four (4) year not-to-exceed amount of $4,400,000. PRINCIPAL PLACE OF BUSINESS Viking Construction, Inc. Georgetown, TX ESTIMATED SCHEDULE OF PROJECT This is an initial one (1) year contract with options to extend the contract for three (3) additional one (1) year periods, with all terms and conditions remaining the same. FISCAL INFORMATION These services will be funded from Street Department Operating Funds. The City will only pay for services rendered and is not obligated to pay the full contract amount unless needed. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Pricing Evaluation Exhibit 3: Presentation Exhibit 4: Ordinance and Contract Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Daniel Kremer, 940-349-7193. Legal point of contact: Marcella Lunn at 940-349-8333. 486 Viking Construction, Inc.Intermountain Slurry Seal, Inc.Missouri Petroleum Products Company LLC Georgetown, TX Lewisville, TX St. Louis, MO Line #Description UOM Unit Unit Unit 1 Microsurfacing, Type III, 24-26 pounds per square yard 430,000 SY $2.51 $2.55 $3.33 2 Mobilization 1 Each $20,000.00 $50,000.00 $19,000.00 $1,099,300.00 $1,146,500.00 $1,450,900.00 $4,400,000.00 Item #Viking Construction, Inc.Intermountain Slurry Seal, Inc.Missouri Petroleum Products Company LLC 1 12 6.67 8 2 18 10 14 3 12 8 8 4 30 28.76 22.73 72 53.43 52.73 Exhibit 2 RFP 7619 - Pricing Evaluation for Micro Seal Total Contract Amount (4 years): Evaluation Total: Respondent's Business Name: Principal Place of Business (City and State): Price, Total Cost of Ownership - 30% Delivery/Project Schedule - 20% Compliance with Specifications - 30% Probable Performance - 20% Total: Description 487 Micro Surfacing Services Council Presentation May 25, 2021 File ID 21-955 488 Micro Surfacing •Utilized as preventive maintenance for City streets. •The micro surfacing material protects the pavement structure from moisture and the surface from further deterioration. •Seals entire surface preventing moisture penetration into the subgrade •Extends the useful life of pavement when used in conjunction with other maintenance practices. Estimated Annual Usage Year 1 1,000,000$ Year 2 1,000,000$ Year 3 1,000,000$ Year 4 1,000,000$ Contingency (10%)400,000$ Total 4,400,000$ File ID 21-955 489 Recommendations: •Staff recommends to award a contract with Viking Construction, Inc., for Micro Surfacing Services for the Street Department, in a one (1) year, with the option for three (3) additional one (1) year extensions, in the total four (4) year not-to-exceed amount of $4,400,000. File ID 21-955 490 QUESTIONS Daniel Kremer Deputy Director of Operations (940) 349-7193 Daniel.Kremer@CityofDenton.com File ID 21-955 491 ORDINANCE NO. _________ AN ORDINANCE OF THE CITY OF DENTON, A TEXAS HOME-RULE MUNICIPAL CORPORATION, AUTHORIZING THE CITY MANAGER, OR THEIR DESIGNEE, TO EXECUTE A CONTRACT WITH VIKING CONSTRUCTION, INC., FOR MICRO SURFACING SERVICES FOR THE STREETS DEPARTMENT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (RFP 7619 AWARDED TO VIKING CONSTRUCTION, INC., FOR ONE (1) YEAR, WITH THE OPTION FOR THREE (3) ADDITIONAL ONE (1) YEAR EXTENSIONS, IN THE TOTAL FOUR (4) YEAR NOT-TO- EXCEED AMOUNT OF $4,400,000.00). WHEREAS, the City has solicited, received, and evaluated competitive proposals for Micro Surfacing Services for the Streets Department; and WHEREAS, the City Manager, or a designated employee, has received, reviewed, and recommended that the herein described proposals are the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies, or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The items in the following numbered request for proposal for materials, equipment, supplies, Purchasing Agent, are hereby accepted and approved as being the most advantageous to the City considering the relative importance of price and the other evaluation factors included in the request for proposals. RFP NUMBER CONTRACTOR AMOUNT 7619 Viking Construction, Inc. $4,400,000.00 SECTION 2. That by the acceptance and approval of the above numbered items of the submitted proposals, the City accepts the offer of the persons submitting the proposals for such items and agrees to purchase the materials, equipment, supplies, or services in accordance with the terms, specifications, standards, quantities, and for the specified sums contained in the Proposal Invitations, Proposals, and related documents. SECTION 3. That should the City and person submitting approved and accepted items wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the proposals, the City Manager, or their designated representative, is hereby authorized to execute the 492 written contract which shall be attached hereto; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities, and specified sums contained in the Proposal and related documents herein approved and accepted. SECTION 4. The City Council of the City of Denton, hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under this ordinance to the City Manager of the City of Denton, or their 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. The motion to approve this ordinance was made by __________________________ and seconded by _________________________________. The ordinance was passed and approved by the following vote [___ - ___]: Aye Nay Abstain Absent Mayor Gerard Hudspeth: ______ ______ ______ ______ Vicki Byrd, District 1: ______ ______ ______ ______ Brian Beck, District 2: ______ ______ ______ ______ Jesse Davis, District 3: ______ ______ ______ ______ Alison Maguire, District 4: ______ ______ ______ ______ Deb Armintor, At Large Place 5: ______ ______ ______ ______ Paul Meltzer, At Large Place 6: ______ ______ ______ ______ PASSED AND APPROVED this the _______ day of ___________________________, 2021. __________________________________ GERARD HUDSPETH, MAYOR ATTEST: ROSA RIOS, CITY SECRETARY BY: __________________________________ APPROVED AS TO LEGAL FORM: 493 AARON LEAL, CITY ATTORNEY BY: _________________________________ 494 Docusign City Council Transmittal Coversheet File Name Purchasing Contact City Council Target Date Piggy Back Option Contract Expiration Ordinance DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 7619RFP Gabby Leeper Yes Micro Seal 495 Contract # 7619 CONTRACT BY AND BETWEEN CITY OF DENTON, TEXAS AND VIKING CONSTRUCTION, INC (CONTRACT 7619) THIS CONTRACT is made and entered into this date ______________________, by and between Viking Construction, Inc. a Texas corporation, whose address is 2592 Shell Road Georgetown, TX 78628, hereinafter referred to as "Contractor," and the CITY OF DENTON, TEXAS, a home rule municipal corporation, hereinafter referred to as "City," to be effective upon approval of the Denton City Council and subsequent execution of this Contract by the Denton City Manager or his duly authorized designee. For and in consideration of the covenants and agreements contained herein, and for the mutual benefits to be obtained hereby, the parties agree as follows: SCOPE OF SERVICES Contractor shall provide products and/or services in accordance with the City’s document RFP 7619- Micro Seal, a copy of which is on file at the office of Purchasing Agent and incorporated herein for all purposes. The Contract consists of this written agreement and the following items which are attached hereto and incorporated herein by reference: (a) Special Terms and Conditions (Exhibit “A”); (b) City of Denton’s RFP 7619 (Exhibit “B” on File at the Office of the Purchasing Agent); (c) City of Denton Standard Terms and Conditions (Exhibit “C”); (d) Insurance Requirements (Exhibit “D”); (e) Certificate of Interested Parties Electronic Filing (Exhibit "E"); (f) Contractor’s Proposal (Exhibit "F"); (g) Form CIQ – Conflict of Interest Questionnaire (Exhibit "G"); These documents make up the Contract documents and what is called for by one shall be as binding as if called for by all. In the event of an inconsistency or conflict in any of the provisions of the Contract documents, the inconsistency or conflict shall be resolved by giving precedence first to the written agreement then to the contract documents in the order in which they are listed above. These documents shall be referred to collectively as “Contract Documents.” Prohibition on Contracts with Companies Boycotting Israel Contractor acknowledges that in accordance with Chapter 2270 of the Texas Government Code, City is prohibited from entering into a contract with a company for goods or services unless the contract contains a written verification from the company that it: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the contract. The terms “boycott Israel” and “company” shall have the meanings ascribed to those terms in Section 808.001 of the Texas Government Code. By signing this agreement, Contractor certifies that Contractor’s signature provides written verification to the City that Contractor: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the agreement. Failure to meet or maintain the requirements under this provision will be considered a material breach. Prohibition On Contracts With Companies Doing Business with Iran, Sudan, or a Foreign DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 496 Contract # 7619 Terrorist Organization Section 2252 of the Texas Government Code restricts CITY from contracting with companies that do business with Iran, Sudan, or a foreign terrorist organization. By signing this agreement, Contractor certifies that Contractor’s signature provides written verification to the City that Contractor, pursuant to Chapter 2252, is not ineligible to enter into this agreement and will not become ineligible to receive payments under this agreement by doing business with Iran, Sudan, or a foreign terrorist organization. Failure to meet or maintain the requirements under this provision will be considered a material breach. The parties agree to transact business electronically. Any statutory requirements that certain terms be in writing will be satisfied using electronic documents and signing. Electronic signing of this document will be deemed an original for all legal purposes. IN WITNESS WHEREOF, the parties of these presents have executed this agreement in the year and day first above written. CONTRACTOR BY:______________________________ AUTHORIZED SIGNATURE Printed Name:_____________________ Title:____________________________ __________________________________ PHONE NUMBER _________________________________ EMAIL ADDRESS ___________________________________ TEXAS ETHICS COMMISSION 1295 CERTIFICATE NUMBER CITY OF DENTON, TEXAS BY: _____________________________ ATTEST: ROSA RIOS, CITY SECRETARY BY: _______________________________ APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY BY: _______________________________ THIS AGREEMENT HAS BEEN BOTH REVIEWED AND APPROVED as to financial and operational obligations and business terms. _______________ ________________ SIGNATURE PRINTED NAME __________________________________ TITLE __________________________________ DEPARTMENT DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 Vice-President brad@vciss.com (512) 413-0006 Brad J Pearce 2021-746707 Director of Capital Projects/City Engineer Capital Projects - Engineering Rebecca Diviney 497 Contract # 7619 Exhibit A Special Terms and Conditions 1. Total Contract Amount The contract total for services shall not exceed $4,400.000. Pricing shall be per Exhibit F attached. 2. The Quantities The quantities indicated on Exhibit F are estimates based upon the best available information. The City reserves the right to increase or decrease the quantities to meet its actual needs without any adjustments in the bid price. Individual purchase orders will be issued on an as needed basis. 3. Contract Terms The contract term will be one (1) year, effective from date of award. The City and the Supplier shall have the option to renew this contract for an additional three (3) one-year periods. The Contract shall commence upon the issuance of a Notice of Award by the City of Denton and shall automatically renew each year, from the date of award by City Council. The Supplier’s request to not renew the contract must be submitted in writing to the Purchasing Manager at least 60 days prior to the contract renewal date for each year. At the sole option of the City of Denton, the Contract may be further extended as needed, not to exceed a total of six (6) months. 4. Price Escalation and De-escalation On Supplier’s request in the form stated herein, the City will implement an escalation/de-escalation price adjustment annually based on these special terms. Any request for price adjustment must be based on the, U.S Department of Labor, Bureau of Labor Statistics, Producer Price Index (PPI) or the manufacturer published pricing list. The maximum escalation will not exceed +/- 8% for any individual year. The escalation will be determined annually at the renewal date. The price will be increased or decreased based upon the annual percentage change in the PPI or the percentage change in the manufacturer’s price list. Should the PPI or manufacturer price list change exceed a minimum threshold value of +/-1%, then the stated eligible bid prices shall be adjusted in accordance with the percent change not to exceed the 8% limit per year. The supplier should provide documentation as percentage of each cost associated with the unit prices quoted for consideration. Request must be submitted in writing with supporting evidence for need of such increase to the Purchasing Manager at least 60 days prior to contract expiration of each year. Respondent must also provide supporting documentation as justification for the request. If no request is made, then it will be assumed that the current contract price will be in effect. Upon receipt of such request, the City of Denton reserves the right to either: accept the escalation as competitive with the general market price at the time, and become effective upon the renewal DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 498 Contract # 7619 date of the contract award or reject the increases within 30 calendar days after receipt of a properly submitted request. If a properly submitted increase is rejected, the Contractor may request cancellation of such items from the Contract by giving the City of Denton written notice. Cancellation will not go into effect for 15 calendar days after a determination has been issued. Pre-price increase prices must be honored on orders dated up to the official date of the City of Denton approval and/or cancellation. The request can be sent by e-mail to: purchasing@cityofdenton.com noting the solicitation number. The City of Denton reserves the right to accept, reject, or negotiate the proposed price changes. 5. Performance Liquidated Damages The Contractor shall incur contractual payment losses, as initiated by the City for performance that falls short of specified performance standards as outlined below:  Delivery beyond contracted lead times  Performance below contracted levels (services only) The Contractor shall be assessed a one (1%) percent fee each month when any one of the performance standards outlined above are not met in full. The Contractor shall be assessed a two (2%) percent profit fee each month when any two (2) or more performance standards outlined above are not met in full. At the end of each month, the City will review the monthly reports and determine the percentage of penalty to be assessed to the Contractor’s monthly profit margin. DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 499 Contract # 7619 Exhibit C Standard Purchase Terms and Conditions These standard Terms and Conditions and the Terms and Conditions, Specifications, Drawings and other requirements included in the City of Denton’s contract are applicable to contracts/purchase orders issued by the City of Denton hereinafter referred to as the City or Buyer and the Seller or respondent herein after referred to as Contractor or Supplier. Any deviations must be in writing and signed by a representative of the City’s Procurement Department and the Supplier. No Terms and Conditions contained in the seller’s proposal response, invoice or statement shall serve to modify the terms set forth herein. If there is a conflict between the provisions on the face of the contract/purchase order these written provisions will take precedence. The Contractor agrees that the contract shall be governed by the following terms and conditions, unless exceptions are duly noted and fully negotiated. Unless otherwise specified in the contract, Sections 3, 4, 5, 6, 7, 8, 20, 21, and 36 shall apply only to a solicitation to purchase goods, and sections 9, 10, 11, 22 and 32 shall apply only to a solicitation to purchase services to be performed principally at the City’s premises or on public rights-of-way. 1. CONTRACTOR’S OBLIGATIONS. The Contractor shall fully and timely provide all deliverables described in the Solicitation and in the Contractor’s Offer in strict accordance with the terms, covenants, and conditions of the Contract and all applicable Federal, State, and local laws, rules, and regulations. 2. EFFECTIVE DATE/TERM. Unless otherwise specified in the Solicitation, this Contract shall be effective as of the date the contract is signed by the City, and shall continue in effect until all obligations are performed in accordance with the Contract. 3. CONTRACTOR TO PACKAGE DELIVERABLES: The Contractor will package deliverables in accordance with good commercial practice and shall include a packing list showing the description of each item, the quantity and unit price unless otherwise provided in the Specifications or Supplemental Terms and Conditions, each shipping container shall be clearly and permanently marked as follows: (a) The Contractor's name and address, (b) the City’s name, address and purchase order or purchase release number and the price agreement number if applicable, (c) Container number and total number of containers, e.g. box 1 of 4 boxes, and (d) the number of the container bearing the packing list. The Contractor shall bear cost of packaging. Deliverables shall be suitably packed to secure lowest transportation costs and to conform to all the requirements of common carriers and any applicable specification. The City's count or weight shall be final and conclusive on shipments not accompanied by packing lists. 4. SHIPMENT UNDER RESERVATION PROHIBITED: The Contractor is not authorized to ship the deliverables under reservation and no tender of a bill of lading will operate as a tender of deliverables. 5. TITLE & RISK OF LOSS: Title to and risk of loss of the deliverables shall pass to the City only when the City actually receives and accepts the deliverables. DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 500 Contract # 7619 6. DELIVERY TERMS AND TRANSPORTATION CHARGES: Deliverables shall be shipped F.O.B. point of delivery unless otherwise specified in the Supplemental Terms and Conditions. Unless otherwise stated in the Offer, the Contractor’s price shall be deemed to include all delivery and transportation charges. The City shall have the right to designate what method of transportation shall be used to ship the deliverables. The place of delivery shall be that set forth the purchase order. 7. RIGHT OF INSPECTION AND REJECTION: The City expressly reserves all rights under law, including, but not limited to the Uniform Commercial Code, to inspect the deliverables at delivery before accepting them, and to reject defective or non-conforming deliverables. If the City has the right to inspect the Contractor’s, or the Contractor’s Subcontractor’s, facilities, or the deliverables at the Contractor’s, or the Contractor’s Subcontractor’s, premises, the Contractor shall furnish, or cause to be furnished, without additional charge, all reasonable facilities and assistance to the City to facilitate such inspection. 8. NO REPLACEMENT OF DEFECTIVE TENDER: Every tender or delivery of deliverables must fully comply with all provisions of the Contract as to time of delivery, quality, and quantity. Any non-complying tender shall constitute a breach and the Contractor shall not have the right to substitute a conforming tender; provided, where the time for performance has not yet expired, the Contractor may notify the City of the intention to cure and may then make a conforming tender within the time allotted in the contract. 9. PLACE AND CONDITION OF WORK: The City shall provide the Contractor access to the sites where the Contractor is to perform the services as required in order for the Contractor to perform the services in a timely and efficient manner, in accordance with and subject to the applicable security laws, rules, and regulations. The Contractor acknowledges that it has satisfied itself as to the nature of the City’s service requirements and specifications, the location and essential characteristics of the work sites, the quality and quantity of materials, equipment, labor and facilities necessary to perform the services, and any other condition or state of fact which could in any way affect performance of the Contractor’s obligations under the contract. The Contractor hereby releases and holds the City harmless from and against any liability or claim for damages of any kind or nature if the actual site or service conditions differ from expected conditions. The contractor shall, at all times, exercise reasonable precautions for the safety of their employees, City Staff, participants and others on or near the City’s facilities. 10. WORKFORCE A. The Contractor shall employ only orderly and competent workers, skilled in the performance of the services which they will perform under the Contract. B. The Contractor, its employees, subcontractors, and subcontractor's employees may not while engaged in participating or responding to a solicitation or while in the course and scope of delivering goods or services under a City of Denton contract or on the City's property . i. use or possess a firearm, including a concealed handgun that is licensed under state law, except as required by the terms of the contract; or ii. use or possess alcoholic or other intoxicating beverages, illegal drugs or controlled substances, nor may such workers be intoxicated, or under the influence of alcohol or drugs, on the job. DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 501 Contract # 7619 C. If the City or the City's representative notifies the Contractor that any worker is incompetent, disorderly or disobedient, has knowingly or repeatedly violated safety regulations, has possessed any firearms, or has possessed or was under the influence of alcohol or drugs on the job, the Contractor shall immediately remove such worker from Contract services, and may not employ such worker again on Contract services without the City's prior written consent. Immigration: The Contractor represents and warrants that it shall comply with the requirements of the Immigration Reform and Control Act of 1986 and 1990 regarding employment verification and retention of verification forms for any individuals hired on or after November 6, 1986, who will perform any labor or services under the Contract and the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (“IIRIRA) enacted on September 30, 1996. 11. COMPLIANCE WITH HEALTH, SAFETY, AND ENVIRONMENTAL REGULATIONS: The Contractor, its Subcontractors, and their respective employees, shall comply fully with all applicable federal, state, and local health, safety, and environmental laws, ordinances, rules and regulations in the performance of the services, including but not limited to those promulgated by the City and by the Occupational Safety and Health Administration (OSHA). In case of conflict, the most stringent safety requirement shall govern. The Contractor shall indemnify and hold the City harmless from and against all claims, demands, suits, actions, judgments, fines, penalties and liability of every kind arising from the breach of the Contractor’s obligations under this paragraph. Environmental Protection: The Respondent shall be in compliance with all applicable standards, orders, or regulations issued pursuant to the mandates of the Clean Air Act (42 U.S.C. §7401 et seq.) and the Federal Water Pollution Control Act, as amended, (33 U.S.C. §1251 et seq.). 12. INVOICES: A. The Contractor shall submit separate invoices in duplicate on each purchase order or purchase release after each delivery. If partial shipments or deliveries are authorized by the City, a separate invoice must be sent for each shipment or delivery made. B. Proper Invoices must include a unique invoice number, the purchase order or delivery order number and the master agreement number if applicable, the Department’s Name, and the name of the point of contact for the Department. Invoices shall be itemized and transportation charges, if any, shall be listed separately. A copy of the bill of lading and the freight waybill, when applicable, shall be attached to the invoice. The Contractor’s name, remittance address and, if applicable, the tax identification number on the invoice must exactly match the information in the Vendor’s registration with the City. Unless otherwise instructed in writing, the City may rely on the remittance address specified on the Contractor’s invoice. C. Invoices for labor shall include a copy of all time-sheets with trade labor rate and deliverables order number clearly identified. Invoices shall also include a tabulation of work-hours at the appropriate rates and grouped by work order number. Time billed for labor shall be limited to hours actually worked at the work site. D. Unless otherwise expressly authorized in the Contract, the Contractor shall pass through all Subcontract and other authorized expenses at actual cost without markup. E. Federal excise taxes, State taxes, or City sales taxes must not be included in the invoiced amount. The City will furnish a tax exemption certificate upon request. 13. PAYMENT: DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 502 Contract # 7619 A. All proper invoices need to be sent to Accounts Payable. Approved invoices will be paid within thirty (30) calendar days of the City’s receipt of the deliverables or of the invoice being received in Accounts Payable, whichever is later. B. If payment is not timely made, (per paragraph A); interest shall accrue on the unpaid balance at the lesser of the rate specified in Texas Government Code Section 2251.025 or the maximum lawful rate; except, if payment is not timely made for a reason for which the City may withhold payment hereunder, interest shall not accrue until ten (10) calendar days after the grounds for withholding payment have been resolved. C. If partial shipments or deliveries are authorized by the City, the Contractor will be paid for the partial shipment or delivery, as stated above, provided that the invoice matches the shipment or delivery. D. The City may withhold or set off the entire payment or part of any payment otherwise due the Contractor to such extent as may be necessary on account of: i. delivery of defective or non-conforming deliverables by the Contractor; ii. third party claims, which are not covered by the insurance which the Contractor is required to provide, are filed or reasonable evidence indicating probable filing of such claims; iii. failure of the Contractor to pay Subcontractors, or for labor, materials or equipment; iv. damage to the property of the City or the City’s agents, employees or contractors, which is not covered by insurance required to be provided by the Contractor; v. reasonable evidence that the Contractor’s obligations will not be completed within the time specified in the Contract, and that the unpaid balance would not be adequate to cover actual or damages for the anticipated delay; vi. failure of the Contractor to submit proper invoices with purchase order number, with all required attachments and supporting documentation; or vii. failure of the Contractor to comply with any material provision of the Contract Documents. E. Notice is hereby given that any awarded firm who is in arrears to the City of Denton for delinquent taxes, the City may offset indebtedness owed the City through payment withholding. F. Payment will be made by check unless the parties mutually agree to payment by credit card or electronic transfer of funds. The Contractor agrees that there shall be no additional charges, surcharges, or penalties to the City for payments made by credit card or electronic funds transfer. G. The awarding or continuation of this contract is dependent upon the availability of funding. The City’s payment obligations are payable only and solely from funds Appropriated and available for this contract. The absence of Appropriated or other lawfully available funds shall render the Contract null and void to the extent funds are not Appropriated or available and any deliverables delivered but unpaid shall be returned to the Contractor. The City shall provide the Contractor written notice of the failure of the City to make an adequate Appropriation for any fiscal year to pay the amounts due under the Contract, or the reduction of any Appropriation to an amount insufficient to permit the City to pay its obligations under the Contract. In the event of none or inadequate appropriation of funds, there will be no penalty nor removal fees charged to the City. 14. TRAVEL EXPENSES: All travel, lodging and per diem expenses in connection with the Contract shall be paid by the Contractor, unless otherwise stated in the contract terms. During the term of this contract, the contractor shall bill and the City shall reimburse contractor for all reasonable and approved out of pocket expenses which are incurred in the connection with the performance of duties hereunder. Notwithstanding the foregoing, expenses for the time spent by the contractor in traveling to and from City facilities shall not be reimbursed, unless otherwise DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 503 Contract # 7619 negotiated. 15. FINAL PAYMENT AND CLOSE-OUT: A. If a DBE/MBE/WBE Program Plan is agreed to and the Contractor has identified Subcontractors, the Contractor is required to submit a Contract Close-Out MBE/WBE Compliance Report to the Purchasing Manager no later than the 15th calendar day after completion of all work under the contract. Final payment, retainage, or both may be withheld if the Contractor is not in compliance with the requirements as accepted by the City. B. The making and acceptance of final payment will constitute: i. a waiver of all claims by the City against the Contractor, except claims (1) which have been previously asserted in writing and not yet settled, (2) arising from defective work appearing after final inspection, (3) arising from failure of the Contractor to comply with the Contract or the terms of any warranty specified herein, (4) arising from the Contractor’s continuing obligations under the Contract, including but not limited to indemnity and warranty obligations, or (5) arising under the City’s right to audit; and ii. a waiver of all claims by the Contractor against the City other than those previously asserted in writing and not yet settled. 16. SPECIAL TOOLS & TEST EQUIPMENT: If the price stated on the Offer includes the cost of any special tooling or special test equipment fabricated or required by the Contractor for the purpose of filling this order, such special tooling equipment and any process sheets related thereto shall become the property of the City and shall be identified by the Contractor as such. 17. RIGHT TO AUDIT: A. The City shall have the right to audit and make copies of the books, records and computations pertaining to the Contract. The Contractor shall retain such books, records, documents and other evidence pertaining to the Contract period and five years thereafter, except if an audit is in progress or audit findings are yet unresolved, in which case records shall be kept until all audit tasks are completed and resolved. These books, records, documents and other evidence shall be available, within ten (10) business days of written request. Further, the Contractor shall also require all Subcontractors, material suppliers, and other payees to retain all books, records, documents and other evidence pertaining to the Contract, and to allow the City similar access to those documents. All books and records will be made available within a 50 mile radius of the City of Denton. The cost of the audit will be borne by the City unless the audit reveals an overpayment of 1% or greater. If an overpayment of 1% or greater occurs, the reasonable cost of the audit, including any travel costs, must be borne by the Contractor which must be payable within five (5) business days of receipt of an invoice. B. Failure to comply with the provisions of this section shall be a material breach of the Contract and shall constitute, in the City’s sole discretion, grounds for termination thereof. Each of the terms “books”, “records”, “documents” and “other evidence”, as used above, shall be construed to include drafts and electronic files, even if such drafts or electronic files are subsequently used to generate or prepare a final printed document. 18. SUBCONTRACTORS: A. If the Contractor identified Subcontractors in a DBE/MBE/WBE agreed to Plan, the Contractor shall comply with all requirements approved by the City. The Contractor shall not initially employ any Subcontractor except as provided in the Contractor’s Plan. The Contractor shall not substitute any Subcontractor identified in the Plan, unless the substitute has been accepted by the City in writing. No acceptance by the City of any Subcontractor shall constitute a waiver of any rights or DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 504 Contract # 7619 remedies of the City with respect to defective deliverables provided by a Subcontractor. If a Plan has been approved, the Contractor is additionally required to submit a monthly Subcontract Awards and Expenditures Report to the Procurement Manager, no later than the tenth calendar day of each month. B. Work performed for the Contractor by a Subcontractor shall be pursuant to a written contract between the Contractor and Subcontractor. The terms of the subcontract may not conflict with the terms of the Contract, and shall contain provisions that: i. require that all deliverables to be provided by the Subcontractor be provided in strict accordance with the provisions, specifications and terms of the Contract; ii. prohibit the Subcontractor from further subcontracting any portion of the Contract without the prior written consent of the City and the Contractor. The City may require, as a condition to such further subcontracting, that the Subcontractor post a payment bond in form, substance and amount acceptable to the City; iii. require Subcontractors to submit all invoices and applications for payments, including any claims for additional payments, damages or otherwise, to the Contractor in sufficient time to enable the Contractor to include same with its invoice or application for payment to the City in accordance with the terms of the Contract; iv. require that all Subcontractors obtain and maintain, throughout the term of their contract, insurance in the type and amounts specified for the Contractor, with the City being a named insured as its interest shall appear; and v. require that the Subcontractor indemnify and hold the City harmless to the same extent as the Contractor is required to indemnify the City. C. The Contractor shall be fully responsible to the City for all acts and omissions of the Subcontractors just as the Contractor is responsible for the Contractor's own acts and omissions. Nothing in the Contract shall create for the benefit of any such Subcontractor any contractual relationship between the City and any such Subcontractor, nor shall it create any obligation on the part of the City to pay or to see to the payment of any moneys due any such Subcontractor except as may otherwise be required by law. D. The Contractor shall pay each Subcontractor its appropriate share of payments made to the Contractor not later than ten (10) calendar days after receipt of payment from the City. 19. WARRANTY-PRICE: A. The Contractor warrants the prices quoted in the Offer are no higher than the Contractor's current prices on orders by others for like deliverables under similar terms of purchase. B. The Contractor certifies that the prices in the Offer have been arrived at independently without consultation, communication, or agreement for the purpose of restricting competition, as to any matter relating to such fees with any other firm or with any competitor. C. In addition to any other remedy available, the City may deduct from any amounts owed to the Contractor, or otherwise recover, any amounts paid for items in excess of the Contractor's current prices on orders by others for like deliverables under similar terms of purchase. 20. WARRANTY – TITLE: The Contractor warrants that it has good and indefeasible title to all deliverables furnished under the Contract, and that the deliverables are free and clear of all liens, claims, security interests and encumbrances. The Contractor shall indemnify and hold the City harmless from and against all adverse title claims to the deliverables. 21. WARRANTY – DELIVERABLES: The Contractor warrants and represents that all deliverables sold the City under the Contract shall be free from defects in design, workmanship or DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 505 Contract # 7619 manufacture, and conform in all material respects to the specifications, drawings, and descriptions in the Solicitation, to any samples furnished by the Contractor, to the terms, covenants and conditions of the Contract, and to all applicable State, Federal or local laws, rules, and regulations, and industry codes and standards. Unless otherwise stated in the Solicitation, the deliverables shall be new or recycled merchandise, and not used or reconditioned. A. Recycled deliverables shall be clearly identified as such. B. The Contractor may not limit, exclude or disclaim the foregoing warranty or any warranty implied by law; and any attempt to do so shall be without force or effect. C. Unless otherwise specified in the Contract, the warranty period shall be at least one year from the date of acceptance of the deliverables or from the date of acceptance of any replacement deliverables. If during the warranty period, one or more of the above warranties are breached, the Contractor shall promptly upon receipt of demand either repair the non-conforming deliverables, or replace the non-conforming deliverables with fully conforming deliverables, at the City’s option and at no additional cost to the City. All costs incidental to such repair or replacement, including but not limited to, any packaging and shipping costs shall be borne exclusively by the Contractor. The City shall endeavor to give the Contractor written notice of the breach of warranty within thirty (30) calendar days of discovery of the breach of warranty, but failure to give timely notice shall not impair the City’s rights under this section. D. If the Contractor is unable or unwilling to repair or replace defective or non-conforming deliverables as required by the City, then in addition to any other available remedy, the City may reduce the quantity of deliverables it may be required to purchase under the Contract from the Contractor, and purchase conforming deliverables from other sources. In such event, the Contractor shall pay to the City upon demand the increased cost, if any, incurred by the City to procure such deliverables from another source. E. If the Contractor is not the manufacturer, and the deliverables are covered by a separate manufacturer’s warranty, the Contractor shall transfer and assign such manufacturer’s warranty to the City. If for any reason the manufacturer’s warranty cannot be fully transferred to the City, the Contractor shall assist and cooperate with the City to the fullest extent to enforce such manufacturer’s warranty for the benefit of the City. 22. WARRANTY – SERVICES: The Contractor warrants and represents that all services to be provided the City under the Contract will be fully and timely performed in a good and workmanlike manner in accordance with generally accepted industry standards and practices, the terms, conditions, and covenants of the Contract, and all applicable Federal, State and local laws, rules or regulations. A. The Contractor may not limit, exclude or disclaim the foregoing warranty or any warranty implied by law, and any attempt to do so shall be without force or effect. B. Unless otherwise specified in the Contract, the warranty period shall be at least one year from the Acceptance Date. If during the warranty period, one or more of the above warranties are breached, the Contractor shall promptly upon receipt of demand perform the services again in accordance with above standard at no additional cost to the City. All costs incidental to such additional performance shall be borne by the Contractor. The City shall endeavor to give the Contractor written notice of the breach of warranty within thirty (30) calendar days of discovery of the breach warranty, but failure to give timely notice shall not impair the City’s rights under this section. C. If the Contractor is unable or unwilling to perform its services in accordance with the above standard as required by the City, then in addition to any other available remedy, the City may reduce the amount of services it may be required to purchase under the Contract from the DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 506 Contract # 7619 Contractor, and purchase conforming services from other sources. In such event, the Contractor shall pay to the City upon demand the increased cost, if any, incurred by the City to procure such services from another source. 23. ACCEPTANCE OF INCOMPLETE OR NON-CONFORMING DELIVERABLES: If, instead of requiring immediate correction or removal and replacement of defective or non-conforming deliverables, the City prefers to accept it, the City may do so. The Contractor shall pay all claims, costs, losses and damages attributable to the City’s evaluation of and determination to accept such defective or non-conforming deliverables. If any such acceptance occurs prior to final payment, the City may deduct such amounts as are necessary to compensate the City for the diminished value of the defective or non-conforming deliverables. If the acceptance occurs after final payment, such amount will be refunded to the City by the Contractor. 24. RIGHT TO ASSURANCE: Whenever one party to the Contract in good faith has reason to question the other party’s intent to perform, demand may be made to the other party for written assurance of the intent to perform. In the event that no assurance is given within the time specified after demand is made, the demanding party may treat this failure as an anticipatory repudiation of the Contract. 25. STOP WORK NOTICE: The City may issue an immediate Stop Work Notice in the event the Contractor is observed performing in a manner that is in violation of Federal, State, or local guidelines, or in a manner that is determined by the City to be unsafe to either life or property. Upon notification, the Contractor will cease all work until notified by the City that the violation or unsafe condition has been corrected. The Contractor shall be liable for all costs incurred by the City as a result of the issuance of such Stop Work Notice. 26. DEFAULT: The Contractor shall be in default under the Contract if the Contractor (a) fails to fully, timely and faithfully perform any of its material obligations under the Contract, (b) fails to provide adequate assurance of performance under Paragraph 24, (c) becomes insolvent or seeks relief under the bankruptcy laws of the United States or (d) makes a material misrepresentation in Contractor’s Offer, or in any report or deliverable required to be submitted by the Contractor to the City. 27. TERMINATION FOR CAUSE: In the event of a default by the Contractor, the City shall have the right to terminate the Contract for cause, by written notice effective ten (10) calendar days, unless otherwise specified, after the date of such notice, unless the Contractor, within such ten (10) day period, cures such default, or provides evidence sufficient to prove to the City’s reasonable satisfaction that such default does not, in fact, exist. In addition to any other remedy available under law or in equity, the City shall be entitled to recover all actual damages, costs, losses and expenses, incurred by the City as a result of the Contractor’s default, including, without limitation, cost of cover, reasonable attorneys’ fees, court costs, and prejudgment and post-judgment interest at the maximum lawful rate. Additionally, in the event of a default by the Contractor, the City may remove the Contractor from the City’s vendor list for three (3) years and any Offer submitted by the Contractor may be disqualified for up to three (3) years. All rights and remedies under the Contract are cumulative and are not exclusive of any other right or remedy provided by law. 28. TERMINATION WITHOUT CAUSE: The City 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 DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 507 Contract # 7619 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. 29. FRAUD: Fraudulent statements by the Contractor on any Offer or in any report or deliverable required to be submitted by the Contractor to the City shall be grounds for the termination of the Contract for cause by the City and may result in legal action. 30. DELAYS: A. The City may delay scheduled delivery or other due dates by written notice to the Contractor if the City deems it is in its best interest. If such delay causes an increase in the cost of the work under the Contract, the City and the Contractor shall negotiate an equitable adjustment for costs incurred by the Contractor in the Contract price and execute an amendment to the Contract. The Contractor must assert its right to an adjustment within thirty (30) calendar days from the date of receipt of the notice of delay. Failure to agree on any adjusted price shall be handled under the Dispute Resolution process specified in paragraph 49. However, nothing in this provision shall excuse the Contractor from delaying the delivery as notified. B. Neither party shall be liable for any default or delay in the performance of its obligations under this Contract if, while and to the extent such default or delay is caused by acts of God, fire, riots, civil commotion, labor disruptions, sabotage, sovereign conduct, or any other cause beyond the reasonable control of such Party. In the event of default or delay in contract performance due to any of the foregoing causes, then the time for completion of the services will be extended; provided, however, in such an event, a conference will be held within three (3) business days to establish a mutually agreeable period of time reasonably necessary to overcome the effect of such failure to perform. 31. INDEMNITY: A. Definitions: i. "Indemnified Claims" shall include any and all claims, demands, suits, causes of action, judgments and liability of every character, type or description, including all reasonable costs and expenses of litigation, mediation or other alternate dispute resolution mechanism, including attorney and other professional fees for: (1) damage to or loss of the property of any person (including, but not limited to the City, the Contractor, their respective agents, officers, employees and subcontractors; the officers, agents, and employees of such subcontractors; and third parties); and/or (2) death, bodily injury, illness, disease, worker's compensation, loss of services, or loss of income or wages to any person (including but not limited to the agents, officers and employees of the City, the Contractor, the Contractor’s subcontractors, and third parties), ii. "Fault" shall include the sale of defective or non-conforming deliverables, negligence, willful misconduct or a breach of any legally imposed strict liability standard. B. THE CONTRACTOR SHALL DEFEND (AT THE OPTION OF THE CITY), INDEMNIFY, AND HOLD THE CITY, ITS SUCCESSORS, ASSIGNS, OFFICERS, EMPLOYEES AND ELECTED OFFICIALS HARMLESS FROM AND AGAINST ALL INDEMNIFIED CLAIMS DIRECTLY ARISING OUT OF, INCIDENT TO, CONCERNING OR RESULTING FROM THE FAULT OF THE CONTRACTOR, OR THE CONTRACTOR'S AGENTS, EMPLOYEES OR SUBCONTRACTORS, IN THE PERFORMANCE OF THE CONTRACTOR’S OBLIGATIONS UNDER THE DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 508 Contract # 7619 CONTRACT. NOTHING HEREIN SHALL BE DEEMED TO LIMIT THE RIGHTS OF THE CITY OR THE CONTRACTOR (INCLUDING, BUT NOT LIMITED TO, THE RIGHT TO SEEK CONTRIBUTION) AGAINST ANY THIRD PARTY WHO MAY BE LIABLE FOR AN INDEMNIFIED CLAIM. 32. INSURANCE: The following insurance requirements are applicable, in addition to the specific insurance requirements detailed in Appendix A for services only. The successful firm shall procure and maintain insurance of the types and in the minimum amounts acceptable to the City of Denton. The insurance shall be written by a company licensed to do business in the State of Texas and satisfactory to the City of Denton. A. General Requirements: i. The Contractor shall at a minimum carry insurance in the types and amounts indicated and agreed to, as submitted to the City and approved by the City within the procurement process, for the duration of the Contract, including extension options and hold over periods, and during any warranty period. ii. The Contractor shall provide Certificates of Insurance with the coverage’s and endorsements required to the City as verification of coverage prior to contract execution and within fourteen (14) calendar days after written request from the City. Failure to provide the required Certificate of Insurance may subject the Offer to disqualification from consideration for award. The Contractor must also forward a Certificate of Insurance to the City whenever a previously identified policy period has expired, or an extension option or hold over period is exercised, as verification of continuing coverage. iii. The Contractor shall not commence work until the required insurance is obtained and until such insurance has been reviewed by the City. Approval of insurance by the City shall not relieve or decrease the liability of the Contractor hereunder and shall not be construed to be a limitation of liability on the part of the Contractor. iv. The Contractor must submit certificates of insurance to the City for all subcontractors prior to the subcontractors commencing work on the project. v. The Contractor’s and all subcontractors’ insurance coverage shall be written by companies licensed to do business in the State of Texas at the time the policies are issued and shall be written by companies with A.M. Best ratings of A- VII or better. The City will accept workers’ compensation coverage written by the Texas Workers’ Compensation Insurance Fund. vi. All endorsements naming the City as additional insured, waivers, and notices of cancellation endorsements as well as the Certificate of Insurance shall contain the solicitation number and the following information: City of Denton Materials Management Department 901B Texas Street Denton, Texas 76209 vii. The “other” insurance clause shall not apply to the City where the City is an additional insured shown on any policy. It is intended that policies required in the Contract, covering both the City and the Contractor, shall be considered primary coverage as applicable. viii. If insurance policies are not written for amounts agreed to with the City, the Contractor shall carry Umbrella or Excess Liability Insurance for any differences in amounts specified. If Excess Liability Insurance is provided, it shall follow the form of the primary coverage. ix. The City shall be entitled, upon request, at an agreed upon location, and without expense, to review certified copies of policies and endorsements thereto and may make any DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 509 Contract # 7619 reasonable requests for deletion or revision or modification of particular policy terms, conditions, limitations, or exclusions except where policy provisions are established by law or regulations binding upon either of the parties hereto or the underwriter on any such policies. x. The City reserves the right to review the insurance requirements set forth during the effective period of the Contract and to make reasonable adjustments to insurance coverage, limits, and exclusions when deemed necessary and prudent by the City based upon changes in statutory law, court decisions, the claims history of the industry or financial condition of the insurance company as well as the Contractor. xi. The Contractor shall not cause any insurance to be canceled nor permit any insurance to lapse during the term of the Contract or as required in the Contract. xii. The Contractor shall be responsible for premiums, deductibles and self-insured retentions, if any, stated in policies. All deductibles or self-insured retentions shall be disclosed on the Certificate of Insurance. xiii. The Contractor shall endeavor to provide the City thirty (30) calendar days’ written notice of erosion of the aggregate limits below occurrence limits for all applicable coverage’s indicated within the Contract. xiv. The insurance coverage’s specified in within the solicitation and requirements are required minimums and are not intended to limit the responsibility or liability of the Contractor. B. Specific Coverage Requirements: Specific insurance requirements are contained in the solicitation instrument. 33. CLAIMS: If any claim, demand, suit, or other action is asserted against the Contractor which arises under or concerns the Contract, or which could have a material adverse effect on the Contractor’s ability to perform thereunder, the Contractor shall give written notice thereof to the City within ten (10) calendar days after receipt of notice by the Contractor. Such notice to the City shall state the date of notification of any such claim, demand, suit, or other action; the names and addresses of the claimant(s); the basis thereof; and the name of each person against whom such claim is being asserted. Such notice shall be delivered personally or by mail and shall be sent to the City and to the Denton City Attorney. Personal delivery to the City Attorney shall be to City Hall, 215 East McKinney Street, Denton, Texas 76201. 34. NOTICES: Unless otherwise specified, all notices, requests, or other communications required or appropriate to be given under the Contract shall be in writing and shall be deemed delivered three (3) business days after postmarked if sent by U.S. Postal Service Certified or Registered Mail, Return Receipt Requested. Notices delivered by other means shall be deemed delivered upon receipt by the addressee. Routine communications may be made by first class mail, telefax, or other commercially accepted means. Notices to the Contractor shall be sent to the address specified in the Contractor’s Offer, or at such other address as a party may notify the other in writing. Notices to the City shall be addressed to the City at 901B Texas Street, Denton, Texas 76209 and marked to the attention of the Purchasing Manager. 35. RIGHTS TO BID, PROPOSAL AND CONTRACTUAL MATERIAL: All material submitted by the Contractor to the City shall become property of the City upon receipt. Any portions of such material claimed by the Contractor to be proprietary must be clearly marked as such. Determination of the public nature of the material is subject to the Texas Public Information Act, Chapter 552, and Texas Government Code. DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 510 Contract # 7619 36. NO WARRANTY BY CITY AGAINST INFRINGEMENTS: The Contractor represents and warrants to the City that: (i) the Contractor shall provide the City good and indefeasible title to the deliverables and (ii) the deliverables supplied by the Contractor in accordance with the specifications in the Contract will not infringe, directly or contributorily, any patent, trademark, copyright, trade secret, or any other intellectual property right of any kind of any third party; that no claims have been made by any person or entity with respect to the ownership or operation of the deliverables and the Contractor does not know of any valid basis for any such claims. The Contractor shall, at its sole expense, defend, indemnify, and hold the City harmless from and against all liability, damages, and costs (including court costs and reasonable fees of attorneys and other professionals) arising out of or resulting from: (i) any claim that the City’s exercise anywhere in the world of the rights associated with the City’s’ ownership, and if applicable, license rights, and its use of the deliverables infringes the intellectual property rights of any third party; or (ii) the Contractor’s breach of any of Contractor’s representations or warranties stated in this Contract. In the event of any such claim, the City shall have the right to monitor such claim or at its option engage its own separate counsel to act as co-counsel on the City’s behalf. Further, Contractor agrees that the City’s specifications regarding the deliverables shall in no way diminish Contractor’s warranties or obligations under this paragraph and the City makes no warranty that the production, development, or delivery of such deliverables will not impact such warranties of Contractor. 37. CONFIDENTIALITY: In order to provide the deliverables to the City, Contractor may require access to certain of the City’s and/or its licensors’ confidential information (including inventions, employee information, trade secrets, confidential know-how, confidential business information, and other information which the City or its licensors consider confidential) (collectively, “Confidential Information”). Contractor acknowledges and agrees that the Confidential Information is the valuable property of the City and/or its licensors and any unauthorized use, disclosure, dissemination, or other release of the Confidential Information will substantially injure the City and/or its licensors. The Contractor (including its employees, subcontractors, agents, or representatives) agrees that it will maintain the Confidential Information in strict confidence and shall not disclose, disseminate, copy, divulge, recreate, or otherwise use the Confidential Information without the prior written consent of the City or in a manner not expressly permitted under this Agreement, unless the Confidential Information is required to be disclosed by law or an order of any court or other governmental authority with proper jurisdiction, provided the Contractor promptly notifies the City before disclosing such information so as to permit the City reasonable time to seek an appropriate protective order. The Contractor agrees to use protective measures no less stringent than the Contractor uses within its own business to protect its own most valuable information, which protective measures shall under all circumstances be at least reasonable measures to ensure the continued confidentiality of the Confidential Information. 38. OWNERSHIP AND USE OF DELIVERABLES: The City shall own all rights, titles, and interests throughout the world in and to the deliverables. A. Patents. As to any patentable subject matter contained in the deliverables, the Contractor agrees to disclose such patentable subject matter to the City. Further, if requested by the City, the Contractor agrees to assign and, if necessary, cause each of its employees to assign the entire right, title, and interest to specific inventions under such patentable subject matter to the City and to execute, acknowledge, and deliver and, if necessary, cause each of its employees to execute, acknowledge, and deliver an assignment of letters patent, in a form to be reasonably approved by DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 511 Contract # 7619 the City, to the City upon request by the City. B. Copyrights. As to any deliverables containing copyrightable subject matter, the Contractor agrees that upon their creation, such deliverables shall be considered as work made-for-hire by the Contractor for the City and the City shall own all copyrights in and to such deliverables, provided however, that nothing in this Paragraph 38 shall negate the City’s sole or joint ownership of any such deliverables arising by virtue of the City’s sole or joint authorship of such deliverables. Should by operation of law, such deliverables not be considered works made-for-hire, the Contractor hereby assigns to the City (and agrees to cause each of its employees providing services to the City hereunder to execute, acknowledge, and deliver an assignment to the City of) all worldwide right, title, and interest in and to such deliverables. With respect to such work made-for-hire, the Contractor agrees to execute, acknowledge, and deliver and cause each of its employees providing services to the City hereunder to execute, acknowledge, and deliver a work- made-for-hire agreement, in a form to be reasonably approved by the City, to the City upon delivery of such deliverables to the City or at such other time as the City may request. C. Additional Assignments. The Contractor further agrees to, and if applicable, cause each of its employees to, execute, acknowledge, and deliver all applications, specifications, oaths, assignments, and all other instruments which the City might reasonably deem necessary in order to apply for and obtain copyright protection, mask work registration, trademark registration and/or protection, letters patent, or any similar rights in any and all countries and in order to assign and convey to the City, its successors, assigns and nominees, the sole and exclusive right, title, and interest in and to the deliverables. The Contractor’s obligations to execute, acknowledge, and deliver (or cause to be executed, acknowledged, and delivered) instruments or papers such as those described in this Paragraph 38 a., b., and c. shall continue after the termination of this Contract with respect to such deliverables. In the event the City should not seek to obtain copyright protection, mask work registration or patent protection for any of the deliverables, but should desire to keep the same secret, the Contractor agrees to treat the same as Confidential Information under the terms of Paragraph 37 above. 39. PUBLICATIONS: All published material and written reports submitted under the Contract must be originally developed material unless otherwise specifically provided in the Contract. When material not originally developed is included in a report in any form, the source shall be identified. 40. ADVERTISING: The Contractor shall not advertise or publish, without the City’s prior consent, the fact that the City has entered into the Contract, except to the extent required by law. 41. NO CONTINGENT FEES: The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure the Contract upon any agreement or understanding for commission, percentage, brokerage, or contingent fee, excepting bona fide employees of bona fide established commercial or selling agencies maintained by the Contractor for the purpose of securing business. For breach or violation of this warranty, the City shall have the right, in addition to any other remedy available, to cancel the Contract without liability and to deduct from any amounts owed to the Contractor, or otherwise recover, the full amount of such commission, percentage, brokerage or contingent fee. 42. GRATUITIES: The City may, by written notice to the Contractor, cancel the Contract without liability if it is determined by the City that gratuities were offered or given by the Contractor or DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 512 Contract # 7619 any agent or representative of the Contractor to any officer or employee of the City of Denton with a view toward securing the Contract or securing favorable treatment with respect to the awarding or amending or the making of any determinations with respect to the performing of such contract. In the event the Contract is canceled by the City pursuant to this provision, the City shall be entitled, in addition to any other rights and remedies, to recover or withhold the amount of the cost incurred by the Contractor in providing such gratuities. 43. PROHIBITION AGAINST PERSONAL INTEREST IN CONTRACTS: No officer, employee, independent consultant, or elected official of the City who is involved in the development, evaluation, or decision-making process of the performance of any solicitation shall have a financial interest, direct or indirect, in the Contract resulting from that solicitation as defined in the City’s Ethic Ordinance 18-757 and in the City Charter chapter 2 article XI(Ethics). Any willful violation of this section shall constitute impropriety in office, and any officer or employee guilty thereof shall be subject to disciplinary action up to and including dismissal. Any violation of this provision, with the knowledge, expressed or implied, of the Contractor shall render the Contract voidable by the City. The Contractor shall complete and submit the City’s Conflict of Interest Questionnaire. 44. INDEPENDENT CONTRACTOR: The Contract shall not be construed as creating an employer/employee relationship, a partnership, or a joint venture. The Contractor’s services shall be those of an independent contractor. The Contractor agrees and understands that the Contract does not grant any rights or privileges established for employees of the City of Denton, Texas for the purposes of income tax, withholding, social security taxes, vacation or sick leave benefits, worker’s compensation, or any other City employee benefit. The City shall not have supervision and control of the Contractor or any employee of the Contractor, and it is expressly understood that Contractor shall perform the services hereunder according to the attached specifications at the general direction of the City Manager of the City of Denton, Texas, or his designee under this agreement. The contractor is expressly free to advertise and perform services for other parties while performing services for the City. 45. ASSIGNMENT-DELEGATION: The Contract shall be binding upon and ensure to the benefit of the City and the Contractor and their respective successors and assigns, provided however, that no right or interest in the Contract shall be assigned and no obligation shall be delegated by the Contractor without the prior written consent of the City. Any attempted assignment or delegation by the Contractor shall be void unless made in conformity with this paragraph. The Contract is not intended to confer rights or benefits on any person, firm or entity not a party hereto; it being the intention of the parties that there are no third party beneficiaries to the Contract. The Vendor shall notify the City’s Purchasing Manager, in writing, of a company name, ownership, or address change for the purpose of maintaining updated City records. The president of the company or authorized official must sign the letter. A letter indicating changes in a company name or ownership must be accompanied with supporting legal documentation such as an updated W-9, documents filed with the state indicating such change, copy of the board of director’s resolution approving the action, or an executed merger or acquisition agreement. Failure to do so may adversely impact future invoice payments. 46. WAIVER: No claim or right arising out of a breach of the Contract can be discharged in whole DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 513 Contract # 7619 or in part by a waiver or renunciation of the claim or right unless the waiver or renunciation is supported by consideration and is in writing signed by the aggrieved party. No waiver by either the Contractor or the City of any one or more events of default by the other party shall operate as, or be construed to be, a permanent waiver of any rights or obligations under the Contract, or an express or implied acceptance of any other existing or future default or defaults, whether of a similar or different character. 47. MODIFICATIONS: The Contract can be modified or amended only by a writing signed by both parties. No pre-printed or similar terms on any the Contractor invoice, order or other document shall have any force or effect to change the terms, covenants, and conditions of the Contract. 48. INTERPRETATION: The Contract is intended by the parties as a final, complete and exclusive statement of the terms of their agreement. No course of prior dealing between the parties or course of performance or usage of the trade shall be relevant to supplement or explain any term used in the Contract. Although the Contract may have been substantially drafted by one party, it is the intent of the parties that all provisions be construed in a manner to be fair to both parties, reading no provisions more strictly against one party or the other. Whenever a term defined by the Uniform Commercial Code, as enacted by the State of Texas, is used in the Contract, the UCC definition shall control, unless otherwise defined in the Contract. 49. DISPUTE RESOLUTION: A. If a dispute arises out of or relates to the Contract, or the breach thereof, the parties agree to negotiate prior to prosecuting a suit for damages. However, this section does not prohibit the filing of a lawsuit to toll the running of a statute of limitations or to seek injunctive relief. Either party may make a written request for a meeting between representatives of each party within fourteen (14) calendar days after receipt of the request or such later period as agreed by the parties. Each party shall include, at a minimum, one (1) senior level individual with decision-making authority regarding the dispute. The purpose of this and any subsequent meeting is to attempt in good faith to negotiate a resolution of the dispute. If, within thirty (30) calendar days after such meeting, the parties have not succeeded in negotiating a resolution of the dispute, they will proceed directly to mediation as described below. Negotiation may be waived by a written agreement signed by both parties, in which event the parties may proceed directly to mediation as described below. B. If the efforts to resolve the dispute through negotiation fail, or the parties waive the negotiation process, the parties may select, within thirty (30) calendar days, a mediator trained in mediation skills to assist with resolution of the dispute. Should they choose this option; the City and the Contractor agree to act in good faith in the selection of the mediator and to give consideration to qualified individuals nominated to act as mediator. Nothing in the Contract prevents the parties from relying on the skills of a person who is trained in the subject matter of the dispute or a contract interpretation expert. If the parties fail to agree on a mediator within thirty (30) calendar days of initiation of the mediation process, the mediator shall be selected by the Denton County Alternative Dispute Resolution Program (DCAP). The parties agree to participate in mediation in good faith for up to thirty (30) calendar days from the date of the first mediation session. The City and the Contractor will share the mediator’s fees equally and the parties will bear their own costs of participation such as fees for any consultants or attorneys they may utilize to represent them or otherwise assist them in the mediation. 50. JURISDICTION AND VENUE: The Contract is made under and shall be governed by the DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 514 Contract # 7619 laws of the State of Texas, including, when applicable, the Uniform Commercial Code as adopted in Texas, V.T.C.A., Bus. & Comm. Code, Chapter 1, excluding any rule or principle that would refer to and apply the substantive law of another state or jurisdiction. All issues arising from this Contract shall be resolved in the courts of Denton County, Texas and the parties agree to submit to the exclusive personal jurisdiction of such courts. The foregoing, however, shall not be construed or interpreted to limit or restrict the right or ability of the City to seek and secure injunctive relief from any competent authority as contemplated herein. 51. INVALIDITY: The invalidity, illegality, or unenforceability of any provision of the Contract shall in no way affect the validity or enforceability of any other portion or provision of the Contract. Any void provision shall be deemed severed from the Contract and the balance of the Contract shall be construed and enforced as if the Contract did not contain the particular portion or provision held to be void. The parties further agree to reform the Contract to replace any stricken provision with a valid provision that comes as close as possible to the intent of the stricken provision. The provisions of this section shall not prevent this entire Contract from being void should a provision which is the essence of the Contract be determined to be void. 52. HOLIDAYS: The following holidays are observed by the City: New Year’s Day (observed) MLK Day Memorial Day 4th of July Labor Day Thanksgiving Day Day After Thanksgiving Christmas Eve (observed) Christmas Day (observed) New Year’s Day (observed) If a Legal Holiday falls on Saturday, it will be observed on the preceding Friday. If a Legal Holiday falls on Sunday, it will be observed on the following Monday. Normal hours of operation shall be between 8:00 am and 4:00 pm, Monday through Friday, excluding City of Denton Holidays. Any scheduled deliveries or work performance not within the normal hours of operation must be approved by the City Manager of Denton, Texas or his authorized designee. 53. SURVIVABILITY OF OBLIGATIONS: All provisions of the Contract that impose continuing obligations on the parties, including but not limited to the warranty, indemnity, and confidentiality obligations of the parties, shall survive the expiration or termination of the Contract. 54. NON-SUSPENSION OR DEBARMENT CERTIFICATION: The City of Denton is prohibited from contracting with or making prime or sub-awards to parties that are suspended or debarred or whose principals are suspended or debarred from Federal, State, or City of Denton Contracts. By accepting a Contract with the City, the Vendor certifies that its firm and its principals are not currently suspended or debarred from doing business with the Federal Government, as indicated by the General Services Administration List of Parties Excluded from Federal Procurement and Non-Procurement Programs, the State of Texas, or the City of Denton. 55. EQUAL OPPORTUNITY DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 515 Contract # 7619 A. Equal Employment Opportunity: No Offeror, or Offeror’s agent, shall engage in any discriminatory employment practice. No person shall, on the grounds of race, sex, sexual orientation, age, disability, creed, color, genetic testing, or national origin, be refused the benefits of, or be otherwise subjected to discrimination under any activities resulting from this RFQ. B. Americans with Disabilities Act (ADA) Compliance: No Offeror, or Offeror’s agent, shall engage in any discriminatory employment practice against individuals with disabilities as defined in the ADA. 56. BUY AMERICAN ACT-SUPPLIES (Applicable to certain federally funded requirements) The following federally funded requirements are applicable. A. Definitions. As used in this paragraph – i. "Component" means an article, material, or supply incorporated directly into an end product. ii. "Cost of components" means - (1) For components purchased by the Contractor, the acquisition cost, including transportation costs to the place of incorporation into the end product (whether or not such costs are paid to a domestic firm), and any applicable duty (whether or not a duty-free entry certificate is issued); or (2) For components manufactured by the Contractor, all costs associated with the manufacture of the component, including transportation costs as described in paragraph (1) of this definition, plus allocable overhead costs, but excluding profit. Cost of components does not include any costs associated with the manufacture of the end product. iii. "Domestic end product" means- (1) An unmanufactured end product mined or produced in the United States; or (2) An end product manufactured in the United States, if the cost of its components mined, produced, or manufactured in the United States exceeds 50 percent of the cost of all its components. Components of foreign origin of the same class or kind as those that the agency determines are not mined, produced, or manufactured in sufficient and reasonably available commercial quantities of a satisfactory quality are treated as domestic. Scrap generated, collected, and prepared for processing in the United States is considered domestic. iv. "End product" means those articles, materials, and supplies to be acquired under the contract for public use. v. "Foreign end product" means an end product other than a domestic end product. vi. "United States" means the 50 States, the District of Columbia, and outlying areas. B. The Buy American Act (41 U.S.C. 10a - 10d) provides a preference for domestic end products for supplies acquired for use in the United States. C. The City does not maintain a list of foreign articles that will be treated as domestic for this Contract; but will consider for approval foreign articles as domestic for this product if the articles are on a list approved by another Governmental Agency. The Offeror shall submit documentation with their Offer demonstrating that the article is on an approved Governmental list. D. The Contractor shall deliver only domestic end products except to the extent that it specified delivery of foreign end products in the provision of the Solicitation entitled "Buy American Act Certificate". 57. RIGHT TO INFORMATION: The City of Denton reserves the right to use any and all information presented in any response to this contract, whether amended or not, except as prohibited by law. Selection of rejection of the submittal does not affect this right. 58. LICENSE FEES OR TAXES: Provided the solicitation requires an awarded contractor or supplier to be licensed by the State of Texas, any and all fees and taxes are the responsibility of the DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 516 Contract # 7619 respondent. 59. PREVAILING WAGE RATES: The contractor shall comply with prevailing wage rates as defined by the United States Department of Labor Davis-Bacon Wage Determination at http://www.dol.gov/whd/contracts/dbra.htm and at the Wage Determinations website www.wdol.gov for Denton County, Texas (WD-2509). 60. COMPLIANCE WITH ALL STATE, FEDERAL, AND LOCAL LAWS: The contractor or supplier shall comply with all State, Federal, and Local laws and requirements. The Respondent must comply with all applicable laws at all times, including, without limitation, the following: (i) §36.02 of the Texas Penal Code, which prohibits bribery; (ii) §36.09 of the Texas Penal Code, which prohibits the offering or conferring of benefits to public servants. The Respondent shall give all notices and comply with all laws and regulations applicable to furnishing and performance of the Contract. 61. FEDERAL, STATE, AND LOCAL REQUIREMENTS: Respondent shall demonstrate on-site compliance with the Federal Tax Reform Act of 1986, Section 1706, amending Section 530 of the Revenue Act of 1978, dealing with issuance of Form W-2's to common law employees. Respondent is responsible for both federal and State unemployment insurance coverage and standard Workers’ Compensation insurance coverage. Respondent shall ensure compliance with all federal and State tax laws and withholding requirements. The City of Denton shall not be liable to Respondent or its employees for any Unemployment or Workers' Compensation coverage, or federal or State withholding requirements. Contractor shall indemnify the City of Denton and shall pay all costs, penalties, or losses resulting from Respondent's omission or breach of this Section. 62. DRUG FREE WORKPLACE: The contractor shall comply with the applicable provisions of the Drug-Free Work Place Act of 1988 (Public Law 100-690, Title V, Subtitle D; 41 U.S.C. 701 ET SEQ.) and maintain a drug-free work environment; and the final rule, government-wide requirements for drug-free work place (grants), issued by the Office of Management and Budget and the Department of Defense (32 CFR Part 280, Subpart F) to implement the provisions of the Drug-Free Work Place Act of 1988 is incorporated by reference and the contractor shall comply with the relevant provisions thereof, including any amendments to the final rule that may hereafter be issued. 63. RESPONDENT LIABILITY FOR DAMAGE TO GOVERNMENT PROPERTY: The Respondent shall be liable for all damages to government-owned, leased, or occupied property and equipment caused by the Respondent and its employees, agents, subcontractors, and suppliers, including any delivery or cartage company, in connection with any performance pursuant to the Contract. The Respondent shall notify the City of Denton Procurement Manager in writing of any such damage within one (1) calendar day. 64. FORCE MAJEURE: The City of Denton, any Customer, and the Respondent shall not be responsible for performance under the Contract should it be prevented from performance by an act of war, order of legal authority, act of God, or other unavoidable cause not attributable to the fault or negligence of the City of Denton. In the event of an occurrence under this Section, the Respondent will be excused from any further performance or observance of the requirements so affected for as long as such circumstances prevail and the Respondent continues to use commercially reasonable efforts to recommence performance or observance whenever and to DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 517 Contract # 7619 whatever extent possible without delay. The Respondent shall immediately notify the City of Denton Procurement Manager by telephone (to be confirmed in writing within five (5) calendar days of the inception of such occurrence) and describe at a reasonable level of detail the circumstances causing the non-performance or delay in performance. 65. NON-WAIVER OF RIGHTS: Failure of a Party to require performance by another Party under the Contract will not affect the right of such Party to require performance in the future. No delay, failure, or waiver of either Party’s exercise or partial exercise of any right or remedy under the Contract shall operate to limit, impair, preclude, cancel, waive or otherwise affect such right or remedy. A waiver by a Party of any breach of any term of the Contract will not be construed as a waiver of any continuing or succeeding breach. 66. NO WAIVER OF SOVEREIGN IMMUNITY: The Parties expressly agree that no provision of the Contract is in any way intended to constitute a waiver by the City of Denton of any immunities from suit or from liability that the City of Denton may have by operation of law. 67. RECORDS RETENTION: The Respondent shall retain all financial records, supporting documents, statistical records, and any other records or books relating to the performances called for in the Contract. The Respondent shall retain all such records for a period of four (4) years after the expiration of the Contract, or until the CPA or State Auditor's Office is satisfied that all audit and litigation matters are resolved, whichever period is longer. The Respondent shall grant access to all books, records and documents pertinent to the Contract to the CPA, the State Auditor of Texas, and any federal governmental entity that has authority to review records due to federal funds being spent under the Contract. Should a conflict arise between any of the contract documents, it shall be resolved with the following order of precedence (if applicable). In any event, the final negotiated contract shall take precedence over any and all contract documents to the extent of such conflict. 1. Final negotiated contract 2. RFP/Bid documents 3. City’s standard terms and conditions 4. Purchase order 5. Supplier terms and conditions DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 518 Contract # 7619 Exhibit D INSURANCE REQUIREMENTS AND WORKERS’ COMPENSATION REQUIREMENTS Upon contract execution, all insurance requirements shall become contractual obligations, which the successful contractor shall have a duty to maintain throughout the course of this contract. STANDARD PROVISIONS: Without limiting any of the other obligations or liabilities of the Contractor, the Contractor shall provide and maintain until the contracted work has been completed and accepted by the City of Denton, Owner, the minimum insurance coverage as indicated hereinafter. Contractor shall file with the Purchasing Department satisfactory certificates of insurance including any applicable addendum or endorsements, containing the contract number and title of the project. Contractor may, upon written request to the Purchasing Department, ask for clarification of any insurance requirements at any time; however, Contractor shall not commence any work or deliver any material until he or she receives notification that the contract has been accepted, approved, and signed by the City of Denton. All insurance policies proposed or obtained in satisfaction of these requirements shall comply with the following general specifications, and shall be maintained in compliance with these general specifications throughout the duration of the Contract, or longer, if so noted:  Each policy shall be issued by a company authorized to do business in the State of Texas with an A.M. Best Company rating of at least A or better.  Any deductibles or self-insured retentions shall be declared in the proposal. If requested by the City, the insurer shall reduce or eliminate such deductibles or self-insured retentions with respect to the City, its officials, agents, employees and volunteers; or, the contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.  Liability policies shall be endorsed to provide the following:  Name as Additional Insured the City of Denton, its Officials, Agents, Employees and volunteers.  That such insurance is primary to any other insurance available to the Additional Insured with respect to claims covered under the policy and that this insurance applies separately to each insured against whom claim is made or suit is brought. The inclusion of more than one insured shall not operate to increase the insurer's limit of liability.  Provide a Waiver of Subrogation in favor of the City of Denton, its officials, agents, employees, and volunteers.  Cancellation: City requires 30 day written notice should any of the policies described on the certificate be cancelled or materially changed before the expiration date. DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 519 Contract # 7619  Should any of the required insurance be provided under a claims made form, Contractor shall maintain such coverage continuously throughout the term of this contract and, without lapse, for a period of three years beyond the contract expiration, such that occurrences arising during the contract term which give rise to claims made after expiration of the contract shall be covered.  Should any of the required insurance be provided under a form of coverage that includes a general annual aggregate limit providing for claims investigation or legal defense costs to be included in the general annual aggregate limit, the Contractor shall either double the occurrence limits or obtain Owners and Contractors Protective Liability Insurance.  Should any required insurance lapse during the contract term, requests for payments originating after such lapse shall not be processed until the City receives satisfactory evidence of reinstated coverage as required by this contract, effective as of the lapse date. If insurance is not reinstated, City may, at its sole option, terminate this agreement effective on the date of the lapse. SPECIFIC ADDITIONAL INSURANCE REQUIREMENTS: All insurance policies proposed or obtained in satisfaction of this Contract shall additionally comply with the following marked specifications, and shall be maintained in compliance with these additional specifications throughout the duration of the Contract, or longer, if so noted: [X] A. General Liability Insurance: General Liability insurance with combined single limits of not less than $1,000,000.00 shall be provided and maintained by the Contractor. The policy shall be written on an occurrence basis either in a single policy or in a combination of underlying and umbrella or excess policies. If the Commercial General Liability form (ISO Form CG 0001 current edition) is used:  Coverage A shall include premises, operations, products, and completed operations, independent contractors, contractual liability covering this contract and broad form property damage coverage.  Coverage B shall include personal injury.  Coverage C, medical payments, is not required. If the Comprehensive General Liability form (ISO Form GL 0002 Current Edition and ISO Form GL 0404) is used, it shall include at least:  Bodily injury and Property Damage Liability for premises, operations, products and completed operations, independent contractors and property damage resulting from explosion, collapse or underground (XCU) exposures.  Broad form contractual liability (preferably by endorsement) covering this contract, personal injury liability and broad form property damage liability. DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 520 Contract # 7619 [X] Automobile Liability Insurance: Contractor shall provide Commercial Automobile Liability insurance with Combined Single Limits (CSL) of not less than $500,000 either in a single policy or in a combination of basic and umbrella or excess policies. The policy will include bodily injury and property damage liability arising out of the operation, maintenance and use of all automobiles and mobile equipment used in conjunction with this contract. Satisfaction of the above requirement shall be in the form of a policy endorsement for:  any auto, or  all owned hired and non-owned autos. [X] Workers’ Compensation Insurance Contractor shall purchase and maintain Workers’ Compensation insurance which, in addition to meeting the minimum statutory requirements for issuance of such insurance, has Employer's Liability limits of at least $100,000 for each accident, $100,000 per each employee, and a $500,000 policy limit for occupational disease. The City need not be named as an "Additional Insured" but the insurer shall agree to waive all rights of subrogation against the City, its officials, agents, employees and volunteers for any work performed for the City by the Named Insured. For building or construction projects, the Contractor shall comply with the provisions of Attachment 1 in accordance with §406.096 of the Texas Labor Code and rule 28TAC 110.110 of the Texas Workers’ Compensation Commission (TWCC). [ ] Owner's and Contractor's Protective Liability Insurance The Contractor shall obtain, pay for and maintain at all times during the prosecution of the work under this contract, an Owner's and Contractor's Protective Liability insurance policy naming the City as insured for property damage and bodily injury which may arise in the prosecution of the work or Contractor's operations under this contract. Coverage shall be on an “occurrence" basis and the policy shall be issued by the same insurance company that carries the Contractor's liability insurance. Policy limits will be at least $500,000.00 combined bodily injury and property damage per occurrence with a $1,000,000.00 aggregate. [ ] Fire Damage Legal Liability Insurance Coverage is required if Broad form General Liability is not provided or is unavailable to the contractor or if a contractor leases or rents a portion of a City building. Limits of not less than each occurrence are required. [ ] Professional Liability Insurance Professional liability insurance with limits not less than $1,000,000.00 per claim with respect to negligent acts, errors or omissions in connection with professional services is required under this Agreement. DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 521 Contract # 7619 [ ] Builders' Risk Insurance Builders' Risk Insurance, on an All-Risk form for 100% of the completed value shall be provided. Such policy shall include as "Named Insured" the City of Denton and all subcontractors as their interests may appear. [ ] Environmental Liability Insurance Environmental liability insurance for $1,000,000 to cover all hazards contemplated by this contract. [ ] Riggers Insurance The Contractor shall provide coverage for Rigger’s Liability. Said coverage may be provided by a Rigger’s Liability endorsement on the existing CGL coverage; through and Installation Floater covering rigging contractors; or through ISO form IH 00 91 12 11, Rigger’s Liability Coverage form. Said coverage shall mirror the limits provided by the CGL coverage [ ] Commercial Crime Provides coverage for the theft or disappearance of cash or checks, robbery inside/outside the premises, burglary of the premises, and employee fidelity. The employee fidelity portion of this coverage should be written on a “blanket” basis to cover all employees, including new hires. This type insurance should be required if the contractor has access to City funds. Limits of not less than $ each occurrence are required. [ ] Additional Insurance Other insurance may be required on an individual basis for extra hazardous contracts and specific service agreements. If such additional insurance is required for a specific contract, that requirement will be described in the "Specific Conditions" of the contract specifications. DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 522 Contract # 7619 ATTACHMENT 1 [ ] Workers’ Compensation Coverage for Building or Construction Projects for Governmental Entities A. Definitions: Certificate of coverage ("certificate")-A copy of a certificate of insurance, a certificate of authority to self-insure issued by the commission, or a coverage agreement (TWCC-81, TWCC-82, TWCC-83, or TWCC-84), showing statutory workers' compensation insurance coverage for the person's or entity's employees providing services on a project, for the duration of the project. Duration of the project - includes the time from the beginning of the work on the project until the contractor's/person's work on the project has been completed and accepted by the governmental entity. Persons providing services on the project ("subcontractor" in §406.096) - includes all persons or entities performing all or part of the services the contractor has undertaken to perform on the project, regardless of whether that person contracted directly with the contractor and regardless of whether that person has employees. This includes, without limitation, independent contractors, subcontractors, leasing companies, motor carriers, owner- operators, employees of any such entity, or employees of any entity which furnishes persons to provide services on the project. "Services" include, without limitation, providing, hauling, or delivering equipment or materials, or providing labor, transportation, or other service related to a project. "Services" does not include activities unrelated to the project, such as food/beverage vendors, office supply deliveries, and delivery of portable toilets. B. The contractor shall provide coverage, based on proper reporting of classification codes and payroll amounts and filing of any overage agreements, which meets the statutory requirements of Texas Labor Code, Section 401.011(44) for all employees of the Contractor providing services on the project, for the duration of the project. C. The Contractor must provide a certificate of coverage to the governmental entity prior to being awarded the contract. D. If the coverage period shown on the contractor's current certificate of coverage ends during the duration of the project, the contractor must, prior to the end of the coverage period, file a new certificate of coverage with the governmental entity showing that coverage has been extended. E. The contractor shall obtain from each person providing services on a project, and provide to the governmental entity: 1. a certificate of coverage, prior to that person beginning work on the DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 523 Contract # 7619 project, so the governmental entity will have on file certificates of coverage showing coverage for all persons providing services on the project; and 2. no later than seven days after receipt by the contractor, a new certificate of coverage showing extension of coverage, if the coverage period shown on the current certificate of coverage ends during the duration of the project. F. The contractor shall retain all required certificates of coverage for the duration of the project and for one year thereafter. G. The contractor shall notify the governmental entity in writing by certified mail or personal delivery, within 10 days after the contractor knew or should have known, of any change that materially affects the provision of coverage of any person providing services on the project. H. The contractor shall post on each project site a notice, in the text, form and manner prescribed by the Texas Workers' Compensation Commission, informing all persons providing services on the project that they are required to be covered, and stating how a person may verify coverage and report lack of coverage. I. The contractor shall contractually require each person with whom it contracts to provide services on a project, to: 1. provide coverage, based on proper reporting of classification codes and payroll amounts and filing of any coverage agreements, which meets the statutory requirements of Texas Labor Code, Section 401.011(44) for all of its employees providing services on the project, for the duration of the project; 2. provide to the contractor, prior to that person beginning work on the project, a certificate of coverage showing that coverage is being provided for all employees of the person providing services on the project, for the duration of the project; 3. provide the contractor, prior to the end of the coverage period, a new certificate of coverage showing extension of coverage, if the coverage period shown on the current certificate of coverage ends during the duration of the project; 4. obtain from each other person with whom it contracts, and provide to the contractor: a. a certificate of coverage, prior to the other person beginning work on the project; and DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 524 Contract # 7619 b. a new certificate of coverage showing extension of coverage, prior to the end of the coverage period, if the coverage period shown on the current certificate of coverage ends during the duration of the project; 5. retain all required certificates of coverage on file for the duration of the project and for one year thereafter; 6. notify the governmental entity in writing by certified mail or personal delivery, within 10 days after the person knew or should have known, of any change that materially affects the provision of coverage of any person providing services on the project; and 7. Contractually require each person with whom it contracts, to perform as required by paragraphs (1) - (7), with the certificates of coverage to be provided to the person for whom they are providing services. J. By signing this contract or providing or causing to be provided a certificate of coverage, the contractor is representing to the governmental entity that all employees of the contractor who will provide services on the project will be covered by workers' compensation coverage for the duration of the project, that the coverage will be based on proper reporting of classification codes and payroll amounts, and that all coverage agreements will be filed with the appropriate insurance carrier or, in the case of a self-insured, with the commission's Division of Self-Insurance Regulation. Providing false or misleading information may subject the contractor to administrative penalties, criminal penalties, civil penalties, or other civil actions. K. The contractor’s failure to comply with any of these provisions is a breach of contract by the contractor which entitles the governmental entity to declare the contract void if the contractor does not remedy the breach within ten days after receipt of notice of breach from the governmental entity. DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 525 Contract # 7619 Exhibit E Certificate of Interested Parties Electronic Filing In 2015, the Texas Legislature adopted House Bill 1295, which added section 2252.908 of the Government Code. The law states that the City may not enter into this contract unless the Contractor submits a disclosure of interested parties (Form 1295) to the City at the time the Contractor submits the signed contract. The Texas Ethics Commission has adopted rules requiring the business entity to file Form 1295 electronically with the Commission. Contractor will be required to furnish a Certificate of Interest Parties before the contract is awarded, in accordance with Government Code 2252.908. The contractor shall: 1. Log onto the State Ethics Commission Website at : https://www.ethics.state.tx.us/whatsnew/elf_info_form1295.htm 2. Register utilizing the tutorial provided by the State 3. Print a copy of the completed Form 1295 4. Enter the Certificate Number on page 2 of this contract. 5. Complete and sign the Form 1295 6. Email the form to purchasing@cityofdenton.com with the contract number in the subject line. (EX: Contract 1234 – Form 1295) The City must acknowledge the receipt of the filed Form 1295 not later than the 30th day after Council award. Once a Form 1295 is acknowledged, it will be posted to the Texas Ethics Commission’s website within seven business days. DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 526 7619 RFP Microseal Exhibit F Line # Description QTY UOM Unit 1 Microsurfacing, Type III, 24‐26 pounds per sq430000 SY $2.51 2 Mobilization 1 EA $20,000.00 DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268 527 DocuSign Envelope ID: 905914A8-1C19-4F86-A198-D596A7C6B268Exhibit GViking Construction, Inc.528 Certificate Of Completion Envelope Id: 905914A81C194F86A198D596A7C6B268 Status: Sent Subject: Please DocuSign: City Council Contract 7619 Micro Seal Source Envelope: Document Pages: 34 Signatures: 3 Envelope Originator: Certificate Pages: 6 Initials: 1 Gabby Leeper AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-06:00) Central Time (US & Canada) 901B Texas Street Denton, TX 76209 Gabby.Leeper@cityofdenton.com IP Address: 198.49.140.104 Record Tracking Status: Original 4/27/2021 11:10:58 AM Holder: Gabby Leeper Gabby.Leeper@cityofdenton.com Location: DocuSign Signer Events Signature Timestamp Gabby Leeper gabby.leeper@cityofdenton.com Buyer City of Denton Security Level: Email, Account Authentication (None) Completed Using IP Address: 198.49.140.104 Sent: 4/27/2021 11:43:38 AM Viewed: 4/27/2021 11:44:06 AM Signed: 4/30/2021 12:07:54 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Lori Hewell lori.hewell@cityofdenton.com Purchasing Manager City of Denton Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 198.49.140.104 Sent: 4/30/2021 12:07:57 PM Viewed: 4/30/2021 4:05:16 PM Signed: 4/30/2021 4:06:14 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Marcella Lunn marcella.lunn@cityofdenton.com Deputy City Attorney City of Denton Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 68.185.202.16 Sent: 4/30/2021 4:06:16 PM Viewed: 5/3/2021 3:34:06 PM Signed: 5/3/2021 3:34:57 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Brad J Pearce brad@vciss.com Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 71.221.78.37 Sent: 5/3/2021 3:34:59 PM Viewed: 5/5/2021 8:47:41 PM Signed: 5/5/2021 8:50:06 PM Electronic Record and Signature Disclosure: Accepted: 5/5/2021 8:47:41 PM ID: 90ffa8dd-e5f1-4ea1-aa9a-ceb4c15709b9 529 Signer Events Signature Timestamp Rebecca Diviney Rebecca.Diviney@cityofdenton.com Director of Capital Projects/City Engineer Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 198.49.140.10 Sent: 5/5/2021 8:50:08 PM Viewed: 5/6/2021 9:22:37 AM Signed: 5/6/2021 9:23:35 AM Electronic Record and Signature Disclosure: Accepted: 5/6/2021 9:22:37 AM ID: c198cae8-bd33-428a-af0d-58ea83e3202d Cheyenne Defee cheyenne.defee@cityofdenton.com Contract Administrator City of Denton Security Level: Email, Account Authentication (None) Sent: 5/6/2021 9:23:38 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Sara Hensley sara.hensley@cityofdenton.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Rosa Rios rosa.rios@cityofdenton.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Accepted: 5/5/2021 12:36:13 PM ID: 8ebc5470-4b0e-485e-bdf5-d84847baa5b2 In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Cheyenne Defee cheyenne.defee@cityofdenton.com Contract Administrator City of Denton Security Level: Email, Account Authentication (None) Sent: 4/30/2021 12:07:56 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Sherri Thurman sherri.thurman@cityofdenton.com Security Level: Email, Account Authentication (None) Sent: 5/6/2021 9:23:37 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign 530 Carbon Copy Events Status Timestamp Gretna Jones gretna.jones@cityofdenton.com Legal Secretary City of Denton Security Level: Email, Account Authentication (None) Sent: 5/6/2021 9:23:38 AM Viewed: 5/6/2021 9:33:41 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign City Secretary Office citysecretary@cityofdenton.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Robbin Webber Robbin.Webber@cityofdenton.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Accepted: 4/28/2021 6:49:56 PM ID: 103cae98-73f4-4468-8467-0fc1edd40269 Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 4/27/2021 11:43:38 AM Payment Events Status Timestamps Electronic Record and Signature Disclosure 531 ELECTRONIC RECORD AND SIGNATURE DISCLOSURE From time to time, City of Denton (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through your DocuSign, Inc. (DocuSign) Express user account. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to these terms and conditions, please confirm your agreement by clicking the 'I agree' button at the bottom of this document. Getting paper copies At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. For such copies, as long as you are an authorized user of the DocuSign system you will have the ability to download and print any documents we send to you through your DocuSign user account for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below. Withdrawing your consent If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below. Consequences of changing your mind If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. To indicate to us that you are changing your mind, you must withdraw your consent using the DocuSign 'Withdraw Consent' form on the signing page of your DocuSign account. This will indicate to us that you have withdrawn your consent to receive required notices and disclosures electronically from us and you will no longer be able to use your DocuSign Express user account to receive required notices and consents electronically from us or to sign electronically documents from us. All notices and disclosures will be sent to you electronically Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through your DocuSign user account all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us. Electronic Record and Signature Disclosure created on: 7/21/2017 3:59:03 PM Parties agreed to: Brad J Pearce, Rebecca Diviney, Rosa Rios, Robbin Webber 532 How to contact City of Denton: You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows: To contact us by email send messages to: purchasing@cityofdenton.com To advise City of Denton of your new e-mail address To let us know of a change in your e-mail address where we should send notices and disclosures electronically to you, you must send an email message to us at melissa.kraft@cityofdenton.com and in the body of such request you must state: your previous e-mail address, your new e-mail address. We do not require any other information from you to change your email address.. In addition, you must notify DocuSign, Inc to arrange for your new email address to be reflected in your DocuSign account by following the process for changing e-mail in DocuSign. To request paper copies from City of Denton To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, you must send us an e-mail to purchasing@cityofdenton.com and in the body of such request you must state your e-mail address, full name, US Postal address, and telephone number. We will bill you for any fees at that time, if any. To withdraw your consent with City of Denton To inform us that you no longer want to receive future notices and disclosures in electronic format you may: i. decline to sign a document from within your DocuSign account, and on the subsequent page, select the check-box indicating you wish to withdraw your consent, or you may; ii. send us an e-mail to purchasing@cityofdenton.com and in the body of such request you must state your e-mail, full name, IS Postal Address, telephone number, and account number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process.. Required hardware and software Operating Systems: Windows2000? or WindowsXP? Browsers (for SENDERS): Internet Explorer 6.0? or above Browsers (for SIGNERS): Internet Explorer 6.0?, Mozilla FireFox 1.0, NetScape 7.2 (or above) Email: Access to a valid email account Screen Resolution: 800 x 600 minimum Enabled Security Settings: •Allow per session cookies •Users accessing the internet behind a Proxy Server must enable HTTP 1.1 settings via proxy connection ** These minimum requirements are subject to change. If these requirements change, we will provide you with an email message at the email address we have on file for you at that time providing you with the revised hardware and software requirements, at which time you will have the right to withdraw your consent. 533 Acknowledging your access and consent to receive materials electronically To confirm to us that you can access this information electronically, which will be similar to other electronic notices and disclosures that we will provide to you, please verify that you were able to read this electronic disclosure and that you also were able to print on paper or electronically save this page for your future reference and access or that you were able to e-mail this disclosure and consent to an address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving notices and disclosures exclusively in electronic format on the terms and conditions described above, please let us know by clicking the 'I agree' button below. By checking the 'I Agree' box, I confirm that: • I can access and read this Electronic CONSENT TO ELECTRONIC RECEIPT OF ELECTRONIC RECORD AND SIGNATURE DISCLOSURES document; and • I can print on paper the disclosure or save or send the disclosure to a place where I can print it, for future reference and access; and • Until or unless I notify City of Denton as described above, I consent to receive from exclusively through electronic means all notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to me by City of Denton during the course of my relationship with you. 534 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 21-970,Version:1 AGENDA CAPTION Consider adoption of an ordinance of the City of Denton,a Texas home-rule municipal corporation,authorizing the City Manager,or their designee,to authorize the spend for an insurance binder to Archer Contingent Energy Risk,LLC,for forced outage insurance of the Denton Energy Center for the Summer of 2021;providing for the expenditure of funds therefor;and providing an effective date (RFP 7686 -authorizing the spend for Power Plant Forced Outage Insurance Coverage or Products and awarding such insurance binder to Archer Contingent Energy Risk, LLC, in the Summer 2021 not-to-exceed amount of $975,000.00). City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™535 City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement & Compliance ACM: David Gaines DATE: May 25, 2021 SUBJECT Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager, or their designee, to authorize the spend for an insurance binder to Archer Contingent Energy Risk, LLC, for forced outage insurance of the Denton Energy Center for the Summer of 2021; providing for the expenditure of funds therefor; and providing an effective date (RFP 7686 – authorizing the spend for Power Plant Forced Outage Insurance Coverage or Products and awarding such insurance binder to Archer Contingent Energy Risk, LLC, in the Summer 2021 not-to-exceed amount of $975,000.00). INFORMATION/BACKGROUND The twelve (12) generating units of the Denton Energy Center consist of mechanical, electrical, and control systems that, despite using best practices to maintain the systems, are subject to forced outage due to unforeseen equipment malfunctions. The length of time of these forced outages are normally short in duration but can happen during periods of very high wholesale market prices. Some forced outages, where the malfunction of equipment requires a protracted period of time to repair, could take one or more units out of the wholesale market during those high wholesale market price periods. The effect of not having generating units available to generate can be financially significant to both the DEC proforma (net income) and potentially to electric rate-payers through the Energy Cost Adjustment. The Risk Management Policy, approved by Council on March 17, 2020, requires DME to purchase outage insurance to hedge this forced outage risk and thus limit potential losses. Insurance was procured and approved last year on May 5, 2020. In establishing the annual power supply budget for DME, the Energy Management Organization (EMO) determines the amount of energy to be purchased to meet the electrical demand of the customers of DME for each hour of each day. The renewable energy hourly supply is then delivered to the electric grid to offset against that hourly electric demand. Any shortage quantities are filled by the lower of the projected wholesale market hourly price or the generating cost of the DEC. Consequently, when the DEC is not available to meet the hourly demand due to forced outages, the EMO must purchase the energy from the wholesale market at the then applicable hourly wholesale electric price. While the DEC is a very small contributor to the overall energy supply in ERCOT, on days of potential wholesale energy shortages, its inability to generate can, and does, cause the wholesale price to rise in the vicinity of Denton – ERCOT North Hub. This is due to the supply and demand relationship that sets the wholesale market price at each price node. Because these potential forced outage episodes are random and are correlated with higher wholesale prices, to the extent DME can cost-effectively purchase insurance to insulate customers from City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 536 high price periods, it will be prudent and is considered a best practice in the generation sector of the electric utility industry. To put the risk in perspective, in 2019 during the week of August 12th, the wholesale price of energy was above $5000/MWh for over 12 hours. Had half the DEC units been unavailable due to a forced outage, the cost to replace the energy that would have been generated, and that was counted on in developing the power supply budget, would have been $6,750,000. The objective of the DME Hedge Plan (a confidential chapter of the Risk Management Policy) is to manage the Energy Cost Adjustment fund balance within +/- $5,000,000 and the forced outage risk of the DEC units is a major risk variable that requires hedging. Table 1 depicts the one-hour cost implications for a forced outage of a specified number of generating units and associated hourly wholesale market prices. Table 1 One Hour Forced Outage Costs Wholesale Price ($/MWH) Number of Units $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 2 $37,500 $75,000 $112,500 $150,000 $187,500 $225,000 $262,500 $300,000 $337,500 4 $75,000 $150,000 $225,000 $300,000 $375,000 $450,000 $525,000 $600,000 $675,000 6 $112,500 $225,000 $337,500 $450,000 $562,500 $675,000 $787,500 $900,000 $1,012,500 8 $150,000 $300,000 $450,000 $600,000 $750,000 $900,000 $1,050,000 $1,200,000 $1,350,000 10 $187,500 $375,000 $562,500 $750,000 $937,500 $1,125,000 $1,312,500 $1,500,000 $1,687,500 12 $225,000 $450,000 $675,000 $900,000 $1,125,000 $1,350,000 $1,575,000 $1,800,000 $2,025,000 The February 2021 winter weather event also demonstrates how valuable forced outage insurance would have been. For approximately 48 hours, the DEC could not operate due to an interruption of fuel supply and the consequent term to unfreeze the cooling system. Using the above table, the damages associated with this term was $2.025 million per hour. For the 48 period, the damages at $9,000/MWh totaled $97.2 million. Prior forced outage policies included the interruption of fuel supply as a valid event for a claim. While the probability of such a prolonged fuel supply interruption is low, it nevertheless remains a potential in the event of a natural gas pipeline disruption. Forced outage insurance in North America is offered by a limited number of providers - Archer Contingent Risk, Swiss re and AEGIS are the providers - because they must have excellent credit and demonstrated history of providing the product and settling claims. These providers are backed/underwritten in full or at least in part by Lloyds of London or Swiss Re, one of the largest reinsurance providers in the world. They are qualified bidders and DME has shared the required historical forced outage information and preventative maintenance plans/actions with potential bidders. The City of Denton Procurement Department issued a Request for Proposal for Forced Outage Insurance in April. The specification provided the bidders with the term of the insurance (June through September) – the term will ultimately be determined by DME - the deductible amount stated as either a dollar amount per claim or the number of DEC Engines ‘units’ or both, that would have to be impacted by a forced outage before a claim could be filed, the maximum payout of the policy and the mechanics of how the payout will be calculated. Bidders provide an indicative and non-binder offer for the policy but more importantly will provide Procurement, Risk Management, and DME with the standard terms and conditions for the policy and the form of Binder Agreement. The Binder Agreement will be the document that is executed by the City Manager on the day that DME determines it would like to lock in the policy amount. Because the providers use energy and weather derivatives to hedge their risk on the date that the Binder Agreement is expected, the premium will be determined using live market prices on that date and DME will enter into the agreement with the lowest cost provider on that date. 537 DME is seeking Council’s approval to permit the City Manager to execute the Binder Agreement on the date determined by the EMO. The authority to transact will be limited to a not-to-exceed amount of $975,000. Requests for Proposals was sent to 173 prospective suppliers of this item. In addition, specifications were placed on the Materials Management website for prospective suppliers to download and advertised in the local newspaper. Four (4) proposals were received, references were checked, and proposals evaluated based upon published criteria including experience, financial security, and value proposition. Based upon this evaluation, Archer Contingent Energy Risk, LLC was ranked the highest and determined to be the best value for the City. NIGP Code Used for Solicitation: 941-(Service Only) - Equipment Maint, Repair, & Related Services For Power Generation & Transmission Equip. & 953 - (Service Only) – Insurance & Insurance Services, (All Types) Notifications sent for Solicitation sent in IonWave: 173 Number of Suppliers that viewed Solicitation in IonWave: 10 HUB-Historically Underutilized Business Invitations sent out: 12 SBE-Small Business Enterprise Invitations sent out: 50 Responses from Solicitation: 4 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On March 17, 2020, City Council approved a Risk Management Policy (Ordinance 20-420). On May 5, 2020, City Council approved procurement of this insurance (Ordinance 20-744). On May 24, 2021, this item will be presented to the Public Utilities Board (PUB) for consideration. RECOMMENDATION Award the authority to spend for forced outage insurance of the Denton Energy Center to Archer Contingent Energy Risk, LLC, in a not-to-exceed amount of $975,000. PRINCIPAL PLACE OF BUSINESS Archer Contingent Energy Risk, LLC Leawood, KS ESTIMATED SCHEDULE OF PROJECT(S) This is for the Summer of 2021. FISCAL INFORMATION These services will be funded by Denton Municipal Electric Operating Funds. 538 EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Evaluation Exhibit 3: LLC Members Exhibit 4: Ordinance Exhibit 5: Presentation Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Terry Naulty, 940-349-7567. Legal point of contact: Marcella Lunn at 940-349-8333. 539 Archer Contingent Energy Risk, LLC (Argo Syndicate 1200) Marsh Wortham Houston Series of Lockton Companies Powerline Risk Advisors LLC Leawood, KS Houston, TX Houston, TX New York, NY Item #Description 1 Experience and Track Record - 40%40 34 38 28 2 Financial Security - 20%18 16 16 16 3 Value Proposition - 40%38 28 20 16 96 78 74 60 $975,000Not to Exceed Amount Total Score: Respondent's Business Name: Principal Place of Business (City and State): Exhibit 2 RFP 7686 - Evaluation for Power Plant Forced Outage Insurance Coverage or Products 540 5/10/2021 BUSINESS ORGANIZATIONS INQUIRY - VIEW ENTITY https://direct.sos.state.tx.us/corp_inquiry/corp_inquiry-entity.asp?spage=mgmt&:Spagefrom=&:Sfiling_number=801126484&:Ndocument_number=104…1/1 TEXAS SECRETARY of STATE RUTH R. HUGHS BUSINESS ORGANIZATIONS INQUIRY - VIEW ENTITY Filing Number: 801126484 Entity Type: Foreign Limited Liability Company (LLC) Original Date of Filing: May 22, 2009 Entity Status: In existence Formation Date: N/A Tax ID: 32039587087 FEIN: Name: Archer Contingent Energy Risk, LLC Address: 4000 W. 114th St., Ste. 190 Leawood, KS 66211 USA Fictitious Name: N/A Jurisdiction: DE, USA Foreign Formation Date: March 10, 2009 REGISTERED AGENT FILING HISTORY NAMES MANAGEMENT ASSUMED NAMES ASSOCIATED ENTITIES Last Update Name Title Address December 29, 2017 JOSEPH A LETO MANAGER December 29, 2017 DAVID HOOG MANAGER Order Return to Search Instructions: To place an order for additional information about a filing press the 'Order' button. 541 ORDINANCE NO. __________________ AN ORDINANCE OF THE CITY OF DENTON, A TEXAS HOME-RULE MUNICIPAL CORPORATION, AUTHORIZING THE CITY MANAGER, OR THEIR DESIGNEE, TO AUTHORIZE THE SPEND FOR AN INSURANCE BINDER TO ARCHER CONTINGENT ENERGY RISK, LLC, FOR FORCED OUTAGE INSURANCE OF THE DENTON ENERGY CENTER FOR THE SUMMER OF 2021; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (RFP 7686 AUTHORIZING THE SPEND FOR POWER PLANT FORCED OUTAGE INSURANCE COVERAGE OR PRODUCTS AND AWARDING SUCH INSURANCE BINDER TO ARCHER CONTINGENT ENERGY RISK, LLC, IN THE SUMMER 2021 NOT-TO-EXCEED AMOUNT OF $975,000.00). WHEREAS, the Energy Risk Management Policy, approved by Ordinance No. 20-420, requires Denton Municipal Electric to purchase outage insurance to hedge the forced outage risk and to limit potential losses for the Denton Energy Center; and WHEREAS, the City has solicited, received, and evaluated competitive proposals for an insurance binder for forced outage insurance of the Denton Energy Center for the Summer of 2021; and WHEREAS, because the premium for forced outage insurance uses live market prices on the date that the insurance binder agreement is executed, the City Manager, or a designated employee, is authorized by this ordinance to select from the proposals the most advantageous proposal to the City considering the relative importance of price and the other evaluation factors included in the request for proposals, and to execute an insurance binder agreement with such provider; 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 following numbered request for proposal for materials, equipment, supplies, or services is hereby accepted and approved and the City Manager, or a designated employee, is authorized to select from the following bidders the most advantageous proposal to the City considering the relative importance of price and the other evaluation factors included in the request for proposals. RFP NUMBER CONTRACTOR AMOUNT 7686 Archer Contingent Energy Risk, LLC $975,000.00 SECTION 2. That by the acceptance and approval of a submitted proposal from a bidder 542 listed above by the City Manager, or a designated employee, the City accepts the offer of the bidder submitting the proposal for such item and agrees to purchase the materials, equipment, supplies, or services in accordance with the terms, specifications, standards, quantities, and for the specified sums contained in the Proposal Invitations, Proposals, outage insurance binder agreement, and related documents. SECTION 3. That should the City and the selected bidder wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the proposal, the City Manager, or their designated representative, is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications, standards, quantities, and specified sums contained in the Proposal and related documents herein approved and accepted. Any agreement is limited to a not-to-exceed amount of $975,000. SECTION 4. The City Council of the City of Denton, hereby expressly delegates the authority to take any actions that may be required or permitted to be performed by the City of Denton under this ordinance to the City Manager, or their designee. SECTION 5. The City Council hereby authorizes, accepts, and approves the bidder selected by the City Manager, or their designated representative, from the above enumerated bidder list and authorizes the expenditure of funds therefor in the amount and in accordance with the approved bid. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. The motion to approve this ordinance was made by __________________________ and seconded by _________________________________. The ordinance was passed and approved by the following vote [___ - ___]: Aye Nay Abstain Absent Mayor Gerard Hudspeth: ______ ______ ______ ______ Vicki Byrd, District 1: ______ ______ ______ ______ Brian Beck, District 2: ______ ______ ______ ______ Jesse Davis, District 3: ______ ______ ______ ______ Alison Maguire, District 4: ______ ______ ______ ______ Deb Armintor, At Large Place 5: ______ ______ ______ ______ Paul Meltzer, At Large Place 6: ______ ______ ______ ______ PASSED AND APPROVED this the _______ day of ___________________________, 2021. __________________________________ GERARD HUDSPETH, MAYOR 543 ATTEST: ROSA RIOS, CITY SECRETARY BY: __________________________________ APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY BY: _________________________________ 544 Terry Naulty -Denton Municipal Electric May 25, 2021 City Council Presentation ID 21-970 Denton Energy Center Forced Outage Insurance 545 Objectives 2 To provide price protection to the customer/owners of DME in the event of forced outage of one or more of the DEC generating units during period of high wholesale prices during the summer of 2021 (June –September) To comply with the Energy Risk Management Policy (ERMP) approved by City Council Winter outage insurance will be procured in December for Jan/Feb 2022. ID 21-970 546 3 Any malfunction of equipment that causes a generating unit to no longer be able to deliver energy to the ERCOT transmission grid •Loss of fuel supply •Engine mechanical systems •Controls/ logic systems •Generator systems •Transformer systems •Natural gas control system •Air pollution control systems •Cooling water systems ➢No differentiating between operator or equipment failures Forced Outages ID 21-970 547 4 Term –June 1 –September 31, 2021 •Hours insured –on-peak weekdays and/or on-peak weekends ➢Deductible Amount •18.75 MWh (one unit for one hour) ➢Settlement Basis •Difference in price between the spot hourly market clearing price and an established strike price •i.e. Strike = $50/MWh, clearing price =$5,000/MWh; settlement price = ($5000 -$50)x volume impacted ➢Maximum Payout –maximum settlement for the Term •$18.5 million ➢Premium –$629,550 -$800,000 (dependent on market day of binder) ➢Determined by bidder based upon the market price when final offers are received ➢Summer 2021 premium was $493,000 –increased volatility driving premiums up Forced Insurance Parameters ID 21-970 548 5 ➢Issue request for proposals (April 2021) ➢Receive indicative offers and term & conditions (May 3rd, 2021) •Form of Binder Agreement for each proposer ➢RFP required similar terms from each proposer ➢Obtain legal sign-off and approval (1 week) ➢Request firm offers at 8:00 AM (May 15th –May 30th) ➢Execute Binder Agreement within 30 minutes of receiving firm pricing ➢Pay 2% insurance tax Transaction Process ID 21-970 549 6 Forced Outage Insurance is a cost effective way to manage this risk Mandated by Energy Risk Management Policy Transaction process requires City Council pre- approval and authorization for execution Process is competitive and achieves lowest cost Staff recommends approval Summary ID 21-970 550 Questions: 7 Terry Naulty –Assistant General Manager ID 21-970 551 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:HL21-0001a,Version:1 AGENDA CAPTION Consider approval of a resolution of the City of Denton,Texas approving an application for a partial tax exemption of designated historic sites,in accordance with Chapter 10,Article VI,Sections 10-126 through 10-129 of the Denton Municipal Code of Ordinances,for a Local Historic Landmark,located at 1003 West Oak Street in the Oak-Hickory Historic District (OHH),generally located on the south side of West Oak Street,between Denton Street and Welch Street;providing for severability;and providing an effective date. (HL21-0001a, 1003 W Oak Street - Tax Exemption, Cameron Robertson) City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™552 City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Department of Development Services ICM: Sara Hensley DATE: May 25, 2021 SUBJECT Consider approval of a resolution of the City of Denton, Texas approving an application for a partial tax exemption of designated historic sites, in accordance with Chapter 10, Article VI, Sections 10-126 through 10-129 of the Denton Municipal Code of Ordinances, for a Local Historic Landmark, located at 1003 West Oak Street in the Oak-Hickory Historic District (OHH), generally located on the south side of West Oak Street, between Denton Street and Welch Street; providing for severability; and providing an effective date. (HL21-0001a, 1003 W Oak Street – Tax Exemption, Cameron Robertson) BACKGROUND The applicants and current property owners Walter “Salty” and JoAnn Rishel, have submitted an application for a partial tax exemption of designated historic sites for their property. Prior to the Historic Landmark Commission meeting and consideration, the applicant provided staff with information and receipts for restoration and improvements to the home. This includes updating their HVAC system and adding a new rear porch with electrical fixtures to their property. The HVAC system update included the installation of a new thermostat, condenser, and evaporator coil with a new furnace, as well as the redirection of the existing unit from up flow to a horizontal application. The new rear porch required the placement of a wall/ground wrap drain, installation of concrete piers, anchors, electric and granite slabs, and the construction of the lumber deck and bench, along with the stain. The applicants have submitted photos, invoices, and a letter for the subject work and is included in their application. Refer to Exhibit 5 – Application and Exhibit 6 – Photos for additional information. The expense for the updated HVAC system was $11,540.00, and the expense for the new rear porch was $17,119.48. The total expense for the restoration and improvements presented is $28,659.48. The applicant has provided staff with proof that payment was paid for (Refer to Exhibit 5). According to the applicant the improvements and restoration were performed between May and October of 2020. The work that was completed and the expense amount qualifies the applicant for the City’s tax exemption for a property that is designated as a Local Historic Landmark or Site. The home at 1003 W Oak Street, also referred to as the James Newton and Eva Tabor Rayzor House, was designated as a Local Historic Landmark in 1981. On January 7, 1981, the City Council adopted an ordinance (81-01) designating the subject property a Local Historic Landmark. CONSIDERATIONS: 1. Per the City’s Code of Ordinances, Sec. 10-128 (d), Additional ten (10) year exemptions thereafter will require the property owner to demonstrate to city qualifying expenses of ten thousand dollars ($10,000.00) or more, beyond those demonstrated for the initial or subsequent exemption, for City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 553 permanent improvements and/or for restoration of said property. The Historical Landmark Commission must determine whether the qualifying expenses result in a permanent improvement and/or restoration of said property as a condition of receiving the exemption. 2. The subject property is designated as a Local Historic Landmark. 3. The applicant has spent a total of $28,659.48 toward improvements and restoration. 4. If the Historic Landmark Commission recommends a favorable determination that the expenses presented resulted in a permanent improvement and/or for restoration of the landmarked property, staff will forward a draft Resolution to the City Council to consider approving the subject property as a designated Local Historic Landmark in need of tax relief. 5. If the City Council approves the Resolution, the applicant will then need to apply for the partial tax exception with the chief appraiser of the Denton Central Appraisal District. PRIOR ACTION/REVIEW Date Council, Board, Commission Request Action January 7, 1981 City Council Designate the subject property a Local Historic Landmark Approval (Ordinance 81-01) April 13, 2010 Historic Landmark Commission Historic Tax Exemption (New roof, minor wood repairs and paint) Approval (COA10- 0013) May 10, 2021 Historic Landmark Commission Historic Tax Exemption (HVAC updates and new rear porch) Favorable Finding of Improvement (HL21- 0001) NEIGHBORHOOD MEETING No neighborhood meeting was held. DISCLOSURE No disclosure has been provided to staff from members of this body as of the issuance of this report. OPTIONS 1. Approve as submitted 2. Approve subject to conditions 3. Deny 4. Postpone consideration 5. Table item RECOMMENDATION Staff recommends approval of the application for a partial tax exemption of designated historic sites for the property located at 1003 West Oak Street, in accordance with Chapter 10, Article VI, Sections 10-126 through 10-129 of the Denton Municipal Code of Ordinances as a designated as a Local Historic Landmark in need of tax relief. EXHIBITS: 1. Agenda Information Sheet 2. Site Location Map 3. Oak-Hickory Historic District Map 554 4. Chapter 10, Article VI, Sections 10-126 through 10-129 5. Application 6. Photos 7. May 10, 2020 – Draft HLC Meeting Minutes 8. Draft Resolution 9. Presentation Respectfully submitted: Richard Cannone, AICP Deputy Director Development Services Planning Director Prepared By: Cameron Robertson, AICP Historic Preservation Officer 555 556 Oak Hickory Historic District Date: 1/7/2020 The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, engineering or surveying purposes but rather for reference purposes. These maps are the property of the Cityof Denton and have been made available to the public based on the Public Information Act. The City of Denton makes every effort to produce and publish the most current and accurate information possible. No warranties, expressed or implied, areprovided for the data herein, its use, or its interpretation. Utilization of this map indicates understanding and acceptance of this statement.SWELCHSTW MULBERRY ST W OAK ST W HICKORY ST M O UNTS AVE FULTON STBERNARD STGRACE TEMPLE AVE AMARILLO STDENTON STWILLIAMS STN WELCH STGREGG ST PEARL ST W PARKWAY ST ANDERSON ST HAYNES ST µ0 150 30075FeetOak Hickory Historic District Parcels 557 ARTICLE VI. ‐ TAX EXEMPTION FOR DESIGNATED HISTORIC SITES[7]     Footnotes:   ‐‐‐ (7) ‐‐‐   Cross reference— Historic land preservation and historic districts, § 35-211 et seq. Sec. 10‐126. ‐ Purpose.   This article is enacted for the purpose of encouraging the preservation of individually designated historic sites by providing for a reduction of the city's property tax to qualifying properties. (Ord. No. 87-189, § I(22-50), 10-20-87) Sec. 10‐127. ‐ Definition.   As used in this article, "designated historic site" means any structure or archeological site and the land necessary for access to and use of the structure or archeological site, if the structure or archeological site is designated as a historically or archeologically significant site in need of tax relief to encourage its preservation pursuant to an ordinance or other law adopted by the governing body of the unit. (Ord. No. 87-189, § I(22-51), 10-20-87; Ord. No. 2009-290, § 1, 11-17-09) Cross reference— Definitions and rules of construction generally, § 1-2. Sec. 10‐128. ‐ Partial tax exemption of designated historic sites.   (a) Any property which was a designated historic site on the first day of January for any year beginning with 1989 and extending to and including 2008, shall be exempt from real property ad valorem taxes levied by the City of Denton to the extent of fifty (50) percent of the assessed value of the designated historic site. The exemption provided for herein shall apply for a maximum of fifteen (15) successive years, beginning with the first year the property is entitled to the exemption during the specified years and continuing and including each and every year of the fourteen (14) successive years thereafter during which the property is a designated historic site on the first day of January of those fourteen (14) years. (b) Any property which was a designated historic site on the first day of January 2009 shall be exempt from real property ad valorem taxes levied by the City of Denton for tax year 2009 to the extent of fifty (50) percent of the assessed value of the designated historic site. (c) Any property which is designated a historic site after the first day of January 2009 may be exempt from real property ad valorem taxes levied by the City of Denton to the extent of fifty (50) percent of the assessed value of the designated historic site if the property owner demonstrates to city qualifying expenses of ten thousand dollars ($10,000.00) or more for permanent improvements and/or for restoration of said property. The qualifying expenses are limited to two (2) years prior to designation as a historic site. The historical landmark commission must determine whether the qualifying expenses result in a permanent improvement and/or restoration of said property as a condition of receiving the exemption. The exemption provided for herein shall apply for a maximum of ten (10) successive years, beginning with the first year the property is entitled to the exemption during the specified years and continuing and including each and every year of the nine (9) 558 successive years thereafter during which the property is a designated historic site on the first day of January of those nine (9) successive years. (d) Additional ten (10) year exemptions thereafter will require the property owner to demonstrate to city qualifying expenses of ten thousand dollars ($10,000.00) or more, beyond those demonstrated for the initial or subsequent exemption, for permanent improvements and/or for restoration of said property. The historical landmark commission must determine whether the qualifying expenses result in a permanent improvement and/or restoration of said property as a condition of receiving the exemption. (e) Upon designation as a historic site eligible for a tax exemption or reauthorization of a tax exemption, the director of planning and development shall provide the property owner a certified ordinance or other document that authorizes the tax exemption. To receive the exemption provided herein, a person claiming the exemption must apply for the exemption with the chief appraiser of the Denton Central Appraisal District as provided by state law. Immediately after issuance of a certificate of demolition or removal, the director of planning and development shall notify the chief appraiser of the Denton Central Appraisal District. (Ord. No. 87-189, § I(22-52), 10-20-87; Ord. No. 98-110, § I, 4-21-98; Ord. No. 2009-290, § 1, 11-17-09) Sec. 10‐129. ‐ Recapture of taxes.   (a) If any designated historic site is, within twenty-five (25) years from any year in which the property received a tax exemption under this article: (1) Removed as a designated historic site by ordinance, upon the request of the owner; or (2) Removed as a designated historic site by ordinance after it has been determined to have been totally or partially destroyed or altered by the willful or negligent act of the owner or the owner's agent, in violation of article V of chapter 35 of this Code; an additional tax is imposed, on the effective date of the ordinance providing for its removal as a designated historic site, equal to the difference between the city taxes imposed for each year an exemption was made under this article, and the taxes that would have been imposed had the exemption not been made, plus interest on the additional amount at an annual rate of seven (7) percent, calculated from the dates on which the additional taxes would have become due if not exempted. (b) If, in providing for the removal of a property as a designated historic site because of its being partially or totally destroyed or altered, as provided in subsection (a)(2) of this section, the city council, after receiving the determination of the historic landmark commission and planning and zoning commission, determines, after public hearing for which the owner shall be given notice, that the property was totally or partially destroyed or altered by the willful or negligent act of the owner or his representative, in violation of article V of chapter 35, the additional tax provided for in this section shall be imposed. (c) A tax lien attaches to the property on the date it is removed as a designated historic site to secure payment of the additional tax and interest imposed by this section. The lien exists in favor of the city for which the additional tax is imposed. (d) The city tax assessor and collector shall notify the chief appraiser of the additional tax imposed and shall prepare and deliver a statement to the owner for the additional taxes plus interest as soon as practicable after removal of the property as a designated historic site. The taxes and interest are due and become delinquent and incur penalties and interest as provided by law for ad valorem taxes imposed by the city if not paid before February 1 of the year following the year in which the additional tax is imposed. (Ord. No. 87-189, § I(22-53), 10-20-87) 559 560 561 562 563 564 565 566 567 568 569 570 571 572 573 574 575 576 577 578 Historic Landmark Commission Meeting Minutes May 10, 2021 After determining that a quorum was present, the Historic Landmark Commission convened in a Regular Meeting on Monday, May 10, 2021 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 were considered: PRESENT: Chair Roy Anderson, Vice-Chair Mary Anderson. Commissioners: Cassandra Berry, Melody Kohout, Evan Stone, Linnie McAdams and Angie Stripling. ABSENT: Commissioner: Kady Finley. STAFF: Cameron Robertson, Mack Reinwand, Ron Menguita, and Monica Salcedo. NOTE: Chair Roy Anderson, Vice-Chair Mary Anderson, and Commissioners Linnie McAdams, Evan Stone, Angie Stripling, Kady Finley, Cassandra Berry and Melody Kohout will be participating in the meeting via video/teleconference. Chair Roy Anderson opened the Historic Landmark Commission meeting at 3:0 p.m. REGULAR MEETING 1. PLEDGE OF ALLEGIANCE A. U.S. Flag B. Texas Flag 2. ITEMS FOR CONSIDERATION A. Consider the approval of the March 15, 2021 minutes. No comments or corrections. Commissioner Linnie McAdams motioned to approve the January 11, 2021 meeting minutes. Motion seconded by. Unanimous vote. Motion carried 5-0-4. AYES (5): Chair Roy Anderson, Vice-Chair Mary Anderson. Commissioners: Cassandra Berry, Melody Kohout, and Angie Stripling. NAYS (0): None ABSENT (4): Commissioner Evan Stone, Kady Finley, Linnie McAdams, and Janell Cottam. B. Hold a public meeting and consider an application for a Certificate of Appropriateness (COA), in accordance with Section 2.9.2 of the Denton Development Code, to construct an awning and reconfigure the front façade windows at 219 Jagoe Street, within the West Oak Area Historic District (WOH). The site is located on the west side of Jagoe Street, just north of W Oak Street. (COA21-0003, 219 Jagoe Street, Cameron Robertson) 579 Commissioner Linnie McAdams motioned to deny Item 2B. Motion seconded by. Unanimous vote. Motion carried 5-0-4. Check reason on 3:32 from Roy Anderson and Melody Kohouts. AYES (5): Chair Roy Anderson, Vice-Chair Mary Anderson. Commissioners: Cassandra Berry, Melody Kohout, and Angie Stripling. NAYS (0): None ABSENT (4): Commissioner Evan Stone, Kady Finley, Linnie McAdams, and Janell Cottam. C. Hold a public meeting and consider an application for a Certificate of Appropriateness, in accordance with Section 2.9.2 of the Denton Development Code, to remove the flower boxes and replace exterior ground-floor windows at 120 W Oak Street, a local Historic Landmark and a contributing building to the Denton County Courthouse Square National Register Historic District. The site is located on the northeast corner of N Elm Street and W Oak Street. (COA21-0004, 120 W Oak Street, Cameron Robertson) Commissioner motioned to approve Item 2C. Motion seconded by. Unanimous vote. Motion carried 5-0-4. AYES (5): Chair Roy Anderson, Vice-Chair Mary Anderson. Commissioners: Cassandra Berry, Melody Kohout, and Angie Stripling. NAYS (0): None ABSENT (4): Commissioner Evan Stone, Kady Finley, Linnie McAdams, and Janell Cottam. D. Hold a public meeting and consider an application for a Certificate of Appropriateness (COA), in accordance with Section 2.9.2 of the Denton Development Code, to construct a new house and relocate and reduce an existing two-story garage apartment to one-story at 2230 West Oak Street, within the West Oak Area Historic District (WOH). The site is located on the northeast corner of West Oak Street and Thomas Street. (COA21-0005, 2230 W Oak Street New Construction, Cameron Robertson) Commissioner motioned to approve Item 2D. Motion seconded by. Unanimous vote. Motion carried 5-0-4. AYES (5): Chair Roy Anderson, Vice-Chair Mary Anderson. Commissioners: Cassandra Berry, Melody Kohout, and Angie Stripling. NAYS (0): None ABSENT (4): Commissioner Evan Stone, Kady Finley, Linnie McAdams, and Janell Cottam. E. Hold a public meeting and determine whether the presented expenses resulted in a permanent improvement or restoration of a local historic landmarked property located at 1003 West Oak Street, within the Oak-Hickory Historic District (OHH). The site is located on the south side of West Oak Street, midblock between North Welch and Denton Streets. (HL21-0001, 1003 W Oak Street, Cameron Robertson) 580 Commissioner motioned to approve Item 2E. Motion seconded by. Unanimous vote. Motion carried 5-0-4. AYES (5): Chair Roy Anderson, Vice-Chair Mary Anderson. Commissioners: Cassandra Berry, Melody Kohout, and Angie Stripling. NAYS (0): None ABSENT (4): Commissioner Evan Stone, Kady Finley, Linnie McAdams, and Janell Cottam. With no other business, the meeting was adjourned at 4:13 p.m. X Roy Anderson Chair of Historic Landmark Commission X Monica Salcedo Administrative Assistant 581 RESOLUTION NO. __________ A RESOLUTION OF THE CITY OF DENTON, TEXAS APPROVING AN APPLICATION FOR A PARTIAL TAX EXEMPTION OF DESIGNATED HISTORIC SITES, IN ACCORDANCE WITH CHAPTER 10, ARTICLE VI, SECTIONS 10-126 THROUGH 10-129 OF THE DENTON MUNICIPAL CODE OF ORDINANCES, FOR A LOCAL HISTORIC LANDMARK, LOCATED AT 1003 WEST OAK STREET IN THE OAK-HICKORY HISTORIC DISTRICT (OHH), GENERALLY LOCATED ON THE SOUTH SIDE OF WEST OAK STREET, BETWEEN DENTON STREET AND WELCH STREET; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. (HL21-0001) WHEREAS, Article 8, Section 1-f of the Texas Constitution and Section 11.24 of the Texas Tax Code enable the City of Denton to exempt from taxation part or all of the assessed value of certain historically significant sites in need of tax relief to encourage their preservation; and WHEREAS, pursuant to §10-128(c) of the Denton Code of Ordinances, the owner of the real property located at 1003 W Oak Street, legally described as set forth in Exhibit A, attached, and designated for purposes of ad valorem tax appraisal and assessment as DCAD property ID 34996 (hereinafter, the “Property”), has made and filed with the City Historic Preservation Officer a sworn, complete, and sufficient application for tax abatement of the Property, thereby satisfying all threshold substantive and procedural requirements of §10-128 of the Denton Code of Ordinances; and WHEREAS, On May 10, 2021, the Historic Landmark Commission of the City of Denton has received, reviewed, and recommended the Property to the City Council for tax abatement in accordance with Chapter 10, Article VI of the Denton Code of Ordinances of the City of Denton, as a historically significant site in need of preservation; and WHEREAS, pursuant to §10-126 of the Denton Code of Ordinances, all other prerequisites have been satisfied for the City Council’s certification of eligibility for such a tax abatement on the Property, as a historically significant site in need of preservation; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The foregoing recitals are incorporated into this Resolution by reference as findings of fact, as if expressly set forth herein. The City Council further finds from the matters presented before it that the Property, specifically including the structure located at 1003 W Oak Street, satisfies the tax abatement criterion set forth in Section 10-128(d) of the Denton Code of Ordinances, as a historically significant site in need of preservation, as well as the criteria set forth in §11.24(2) of the Texas Tax Code, as a historically significant site in need of tax relief to encourage its preservation pursuant to City of Denton Code of Ordinances. SECTION 2. Notwithstanding these findings, and in compliance with the limitations set forth at §10-128 of the Denton Code of Ordinances and §11.24 of the Texas Tax Code, the determination of that portion of land which is reasonably necessary for access to, and use of, the historic structures declared herein (the “Eligible Land”), is deferred to the discretion of the Chief 582 Page 2 of 3 Appraiser of the Denton County Appraisal District, together with the discretion to determine whether annual applications must be made to the Denton County Appraisal District in order to obtain the abatement herein approved. SECTION 3. Accordingly, in compliance with Texas Tax Code §11.24(2), this Resolution stands as the official action of the City of Denton to abate and exempt from taxation for a period of ten (10) years following completion of the planned renovation, that portion of the assessed value of the structure located at 1003 W Oak Street and Eligible Land. SECTION 4. Notwithstanding any approvals provided herein, the abatement remains subject to all limitations imposed by State and Federal law, specifically including, but not limited to, the Texas Tax Code. SECTION 5. Should any paragraph, section, sentence, phrase, clause or word of this Resolution be declared unconstitutional or invalid for any reason, the remainder of this Resolution shall not be affected thereby. SECTION 6. This resolution shall become effective immediately upon its passage and approval. The motion to approve this Resolution was made by __________________________ and seconded by _________________________________, the Resolution was passed and approved by the following vote [___ - ___]: Aye Nay Abstain Absent Mayor Gerard Hudspeth: ______ ______ ______ ______ Vicki Byrd, District 1: ______ ______ ______ ______ Brian Beck, District 2: ______ ______ ______ ______ Jesse Davis, District 3: ______ ______ ______ ______ Alison Maguire, District 4: ______ ______ ______ ______ Deb Armintor, At Large Place 5: ______ ______ ______ ______ Paul Meltzer, At Large Place 6: ______ ______ ______ ______ PASSED AND APPROVED this, the _____ day of _____________, 2021. _______________________________________ GERARD HUDSPETH, MAYOR 583 Page 3 of 3 ATTEST: ROSA RIOS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY BY: Digitally signed by Mack Reinwand Date: 2021.05.19 18:02:05 -05'00' 584 EXHIBIT “A” BEING A 0.466 ACRE TRACT OF LAND SITUATED IN THE EUGENE PUCHALSKI SURVEY, ABSTRACT NO. 996, IN THE CITY OF DENTON, DENTON COUNTY, TEXAS AND BEING MORE PARTICULARLY DESCRIBED AS: 585 Da HL21-0001a 1003 W Oak St May 25, 2021 City Council Meeting 1 586 Location 2 •Oak-Hickory Historic District 5/25/21 HL21-0001a 587 Location 35/25/21 •1003 W Oak Street •South side of W Oak Street, between Welch Street and Denton Street HL21-0001a 588 Location 45/25/21 •1003 W Oak Street •Salty and JoAnn Rishel •Local Historic Landmark •James Newton and Eva Tabor Rayzor House HL21-0001a 589 Request 5 •Application for Historic Landmark Tax Exemption •Section 10-128 (d) –Partial Tax Exemption of Designated Historic Sites •HVAC System Updates and New Rear Porch •$28,659.48 5/25/21 HL21-0001a 590 Background 6 •Section 10-128 (d) Additional ten (10) year exemptions thereafter will require the property owner to demonstrate to city qualifying expenses of ten thousand dollars ($10,000.00) or more, beyond those demonstrated for the initial or subsequent exemption, for permanent improvements and/or for restoration of said property. The historical landmark commission must determine whether the qualifying expenses result in a permanent improvement and/or restoration of said property as a condition of receiving the exemption. 5/25/21 HL21-0001a 591 75/25/21 HL21-0001a 592 85/25/21 HL21-0001a 593 95/25/21 HL21-0001a •Install New Porch at Rear Door •Install Wall/Ground Wrap Drain •Install Concrete Piers, Metal, and Anchors •Install Treated Lumber Deck, Bench, Stain, Electric and Granite •Install 5-ton Bosch condenser and evaporator coil with Amana furnace •Existing unit was up flow, and was converted to a horizontal application •Install New Thermostat 594 Recommendation 10 •Staff recommends approval of the application for a partial tax exemption of designated historic sites for the property located at 1003 West Oak Street, in accordance with Chapter 10, Article VI, Sections 10‐126 through 10‐129 of the Denton Municipal Code of Ordinances as a designated as a Local Historic Landmark in need of tax relief. 5/25/21 HL21-0001a 595 Questions? 115/25/21 HL21-0001a 596 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 21-1055,Version:1 AGENDA CAPTION Consider approval of a resolution confirming City Council’s prior policy direction on public meetings strategy and transition back to in-person meetings. City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™597 City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: City Manager’s Office CM/ DCM/ ACM: Sara Hensley, Interim City Manager DATE: May 25, 2021 SUBJECT Consider approval of a resolution confirming City Council’s prior policy direction on public meetings strategy and transition back to in-person meetings. BACKGROUND When the impacts of the COVID-19 pandemic began in March 2020, staff took immediate emergency action to quickly create, implement, and staff a virtual solution for public meetings for City Council, Council Committees, and Boards and Commissions. The City was allowed, and continues to be allowed, to hold all virtual meetings per a gubernatorial suspension of certain Texas Open Meetings Act (TOMA) requirements. This suspension is tied to the continuation of Governor Abbott’s statewide disaster declaration, which has been extended for 30-day periods since the start of the pandemic. However, to meet certain TOMA requirements for virtual meetings under the disaster, all 28 (now 30) public meetings bodies had to become produced and streamed for public viewing online since the public could not attend and view the meeting in-person. DISCUSSION On May 11, 2021, staff presented a COVID Update work session to City Council and sought direction on public meetings moving forward. A copy of work session materials are linked here and available in Exhibit 4. The presentation reviewed public meeting production prior to COVID-19 and the current temporary meeting production and its challenges and considerations. At the end of the presentation, Council gave City staff direction to begin the process of returning to in- person meetings for boards, commissions, and committees beginning June 1 as follows: • Return all public meetings to in-person meetings as of June 1 o Allows bodies the option to return to meeting schedule and frequency o Allows public participation and viewing in-person • Continue Temporary Modifications for those 8 bodies (chart to the right) that are regularly produced o Through summer (until Sept. 1, 2021 or expiration of Governor’s waiver) o Use Zoom platform and continue temporary meeting production/staffing o Public Comment can be done in-person or remotely City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Meetings Produced •City Council •Planning and Zoning •Public Utilities Board •Zoning board of Adjustment •Board of Ethics •Mobility Committee •Persons with Disabilities •Economic Development Partnership Board 598 o Council or Board members can participate remotely if they choose to o Use Council Chambers As presented on May 11, the following next steps are in action or planned: • Placed item on tonight, May 25 Council agenda, to update Rules of Procedure to allow for public comment in-person at meetings again (ID#21-1022); • Sent initial communications to staff liaisons and Board & Commission members; • Outfitting the Council Chambers with barriers between seats on the dais, marking off some seats, and setting up a separate microphone if any of members of the public are in-person to speak; • Follow health & safety protocols o Updated signage to advise and ask individuals to follow the CDC’s latest guidance to individuals for health & safety After further review and starting to take the actions necessary to transition to the hybrid model for City Council and certain meeting bodies as specified, staff is recommending delaying the start of the hybrid meetings transition by two weeks to Monday, June 14. In addition, staff is recommending that the Committee on Persons with Disabilities and the Economic Development Partnership Board (EDPB), due to their large size and other considerations, continue temporarily to stay all virtual until Sept. 1, 2021 or until expiration of the Governor’s waiver of certain TOMA requirements. PRIOR ACTION/REVIEW (Council, Boards, Commissions) This Resolution is to confirm the prior Council direction received by City Council on May 11 and proceed with planned next steps. EXHIBITS Exhibit 1 – Agenda Information Sheet Exhibit 2 – Resolution Exhibit 3 – Presentation Respectfully submitted: Sarah Kuechler Chief of Staff 599 RESOLUTION NO. ______________ A RESOLUTION CONFIRMING CITY COUNCIL’S PRIOR POLICY DIRECTION ON PUBLIC MEETINGS STRATEGY AND TRANSITION BACK TO IN-PERSON MEETINGS. WHEREAS, when the COVID-19 pandemic began in March 2020, City staff took immediate emergency action to quickly create, implement, and staff a virtual solution for public meetings for City Council, Council Committees, and Boards and Commissions; and WHEREAS, the City of Denton was allowed, and continues to be allowed, to hold all virtual meetings per a gubernatorial suspension of certain Texas Open Meetings Act (TOMA) requirements, so long as Governor Abbott’s statewide disaster declaration continues; and WHEREAS, in order to meet certain TOMA requirements for virtual meetings under the statewide disaster declaration, all public meetings bodies had to be produced and streamed for public viewing online since the public could not attend and view the meeting in-person; and WHEREAS, on May 11, 2021, staff presented a COVID Update work session to City Council and sought direction on public meetings moving forward; and WHEREAS, at the end of the presentation on May 11, Council gave City staff direction to begin the process of returning to in-person meetings for boards, commissions, and committees beginning June 1; and WHEREAS, after further review and starting to take the actions necessary to transition to the hybrid model for City Council and certain meeting bodies as specified, staff is recommending delaying the start of the hybrid meetings transition by two weeks to Monday, June 14; and WHEREAS, the City Council wishes to confirm its policy direction and communicate how public meetings will be conducted to community members; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. No later than June 14, 2021, the following boards, commissions, and committee meetings will be held on an in-person basis with public access and will not be produced for viewing and streaming: x Agenda Committee x Airport Advisory Board x Animal Shelter Advisory Committee x Audit Finance Committee x Bond Oversight Committee x Civil Service Commission 600 x Committee on Community Engagement x Committee on the Environment x Community Development Advisory Committee x Community Partnership Committee x Council Appointee Performance Review Committee x Council Airport Committee x Development Code Review Committee x Downtown Denton Tax Increment Financing Reinvestment Zone (TIRZ) Board x Health and Building Standards Commission x Historic Landmark Commission x Human Services Advisory Committee x Library Board x Parks, Recreation, and Beautification Board x Public Art Committee x Sustainability Framework Advisory Committee x Tax Increment Reinvestment Zone (TIRZ) Number Two Board x Traffic Safety Committee SECTION 2. No later than June 14, 2021, the following boards, commissions, and committee meetings will be held on an in-person basis but allow for virtual participation by members and for public comment until September 1, 2021 or until Governor Abbott amends or removes the ability for government entities to hold virtual meetings, whichever comes first. x City Council x Planning and Zoning x Public Utilities Board x Zoning Board of Adjustments x Board of Ethics x Mobility Committee SECTION 3. The following boards, commissions, and committee meetings will continue to be held virtually until September 1, 2021 or until Governor Abbott amends or removes the ability for government entities to hold virtual meetings, whichever comes first. x Persons with Disabilities x Economic Development Partnership Board (EDPB) SECTION 4. This resolution shall become effective immediately upon its passage and approval. The motion to approve this resolution was made by and seconded by , the resolution was passed and approved by the following vote [ _- _ ]: 601 Aye Nay Abstain Absent Gerard Hudspeth, Mayor: ______ ______ ______ ______ Vicki Byrd, District 1: ______ ______ ______ ______ Brian Beck, District 2: ______ ______ ______ ______ Jesse Davis, District 3: ______ ______ ______ ______ Alison Maguire, District 4: ______ ______ ______ ______ Deb Armintor, At Large Place 5: ______ ______ ______ ______ Paul Meltzer, At Large Place 6: ______ ______ ______ ______ PASSED AND APPROVED this the _________ day of ___________________, 2021. __________________________________ GERARD HUDSPETH, MAYOR ATTEST: ROSA RIOS, CITY SECRETARY BY: _______________________________ APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY BY: _______________________________ Digitally signed by Catherine Clifton DN: dc=com, dc=cityofdenton, dc=codad, ou=Department Users and Groups, ou=General Government, ou=Legal, cn=Catherine Clifton, email=Catherine.Clifton@cityofdenton.com Date: 2021.05.20 21:46:08 -05'00' 602 Items for Individual Consideration Public Meetings May 25, 2021 1ID#21-1055 and #21-1022, May 25, 2021 603 •On May 11, staff presented to City Council and received direction for how to proceed with public meetings •Approved policy direction by Council •Allows bodies the option to return to pre-COVID-19 meeting schedule and frequency (instead of reduced frequency due to limited resources) •Allows for public participation and viewing in-person (while still allowing the option for remote participation for the hybrid meetings) •Returns meeting production to pre-COVID-19 status (produce 8 public meeting bodies selected and budgeted for; allow staff to return to a sustainable level of meeting production) 2ID#21-1055 and #21-1022, May 25, 2021 Resolution on Public Meetings (21-1055) 604 Resolution on Public Meetings (21-1055) •What’s been done: •Developed item to update Rules of Procedure to allow for public comment in-person at meetings again (ID#21-1022); •Sent initial communications to staff liaisons and Board & Commission members; •Making room modifications (including outfitting the Council Chambers with barriers between seats on the dais, marking off some seats, and setting up a separate microphone if any of members of the public are in-person to speak) •Updated signage to advise and ask individuals to follow the CDC’s latest guidance to individuals for health & safety •Recommended modifications incorporated into resolution: •Delay the start of hybrid meetings transition by two weeks to Monday, June 14 (due to staff training, testing, and availability) •Continue Committee on Persons with Disabilities and the Economic Development Partnership Board temporarily as all virtual due to their large size and other considerations, until Sept. 1, 2021 or until expiration of the Governor’s waiver of certain TOMA requirements •Resolution would confirm prior policy direction received by City Council 3ID#21-1055 and #21-1022, May 25, 2021 605 Ordinance for Rules of Procedure (21-1022) 4 •City Council meetings are conducted in accordance with the Council Rules of Procedure (Code of Ordinances Section 2-29) •Council temporarily amended the Rules of Procedure on March 31, 2020 in order to facilitate virtual meetings •Council, boards, commissions, and committees operating under these Rules since that time. •With return to in person and hybrid meetings, staff is proposing to repeal and replace Rules on a permanent basis to: •Allow for in-person and/or virtual attendance as applicable •Allow for public participation in person, by phone, or online comment •Provide general flexibility with regard to the method of member or public participation and interaction ID#21-1055 and #21-1022, May 25, 2021 606 Questions? 5ID#21-1055 and #21-1022, May 25, 2021 607 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 21-1022,Version:1 AGENDA CAPTION Consider adoption of an ordinance of the City of Denton repealing and replacing City of Denton Code of Ordinances Section 2-29 (City Council Rules of Procedure); providing for a severability clause; providing for codification; and providing for an effective date. City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™608 City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: City Manager’s Office CM/ DCM/ ACM: Sara Hensley, Interim City Manager DATE: May 25, 2021 SUBJECT Consider adoption of an ordinance of the City of Denton repealing and replacing City of Denton Code of Ordinances section 2-29 (City Council Rules of Procedure); providing for a severability clause; providing for codification; and providing for an effective date. BACKGROUND On March 13, 2020, then Mayor Watts executed a “Declaration of Local Disaster for Public Health Emergency,” in response to the COVID-19 pandemic. On March 17, 2020, Mayor Watts extended the Declaration of Emergency and issued an Order of the Council of the City of Denton. This declaration, as extended and along with the Twelfth Order of Council, continues to be in effect through June 30, 2021. In accordance with 418.06 of the Texas Government Code and in an effort to reduce the spread of COVID-19, Governor Abbott temporarily suspended various provisions of the Texas Open Meetings Act (TOMA) on March 16, 2020 to allow for telephonic or videoconference meetings of governmental bodies so long as those meetings are accessible to the public. Denton City Council meetings are conducted in accordance with the Rules of Procedure set forth in Section 2-29 of the Code of Ordinances. During the March 31, 2020 meeting, the City Council adopted an ordinance that temporarily amended Section 2-29 (City Council Rules of Procedure). These temporary changes to the Rules of procedure allowed for virtual, or videoconference, meetings of the City Council and boards and commissions to take place. During the March 31, 2020 meeting, the Council was advised that when in-person public meetings resume, the temporary amendments will be lifted or amended to restore the procedural requirements that were in place prior to March 31, 2020. DISCUSSION The ordinance presented for Council consideration would amend the Rules of Procedure to facilitate the direction provided by Council on May 11, 2021 regarding public meetings as presented in item ED 20- 1055. In contrast to the ordinance adopted on March 31, 2020, the changes presented are not temporary in nature but are permanent amendments intended to provide ongoing flexibility so that virtual, hybrid, or in- person public meeting formats may be used without the need for future Rules of Procedure revisions. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 609 PRIOR ACTION/REVIEW (Council, Boards, Commissions) March 31, 2020 – Ordinance temporarily amending the Rules of Procedure EXHIBITS Exhibit 1 – Agenda Information Sheet Exhibit 2 – Ordinance Exhibit 3 – Presentation Exhibit 4 – Rules of Procedure (Redline) Exhibit 5 – March 31, 2020 Temporary Amendments Respectfully submitted: Ryan Adams Director of Customer Service and Public Affairs 610 ORDINANCE NO. ______________ AN ORDINANCE OF THE CITY OF DENTON REPEALING AND REPLACING CITY OF DENTON CODE OF ORDINANCES SECTION 2-29 (CITY COUNCIL RULES OF PROCEDURE); PROVIDING FOR A SEVERABILITY CLAUSE; PROVIDING FOR CODIFICATION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, beginning in December 2019, a novel coronavirus, now designated SARS- CoV2 which causes the disease COVID-19, has spread throughout the world and has now been declared a global pandemic by the World Health Organization; and WHEREAS, in March of 2020 the Attorney General suspended certain statutes related to the Texas Open Meetings Act so that governmental entities can continue governmental business during the term of the state of emergency using alternative measures for meetings; and WHEREAS, consistent with the Attorney General’s suspension of certain statutes related to the Texas Open Meetings Act, the City Council of the City of Denton temporarily amended Section 2-29 of the City of Denton Code of Ordinances on March 31, 2020 to provide for flexibility in conducting City business and to specify alternative means for both Councilmembers and the public to attend and participate in open meetings; and WHEREAS, the City Council desires to allow for flexibility in meetings to accommodate both in-person and videoconference meetings; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The recitals contained in the preamble of this ordinance are true and correct, and are hereby incorporated as if set out fully herein. SECTION 2. Section 2-29, entitled Council Rules of Procedure, of the City of Denton Code of Ordinances, including temporary amendments thereto, is hereby repealed and replaced as follows: Subpart A – Code of Ordinances ARTICLE II. - ADMINISTRATIVE ORGANIZATION Sec. 2-29. - City council rules of procedure. (a) Authority. (1) Charter: Pursuant to the provisions of Section 2.07 of the Charter of the City of Denton, Texas, the City Council hereby enacts these rules of procedure for all meetings of the City Council of the City of Denton, Texas. During any meeting, a reasonable opportunity shall be given for citizens to be heard under these rules. These Rules of Procedure are enacted as guidelines to be followed by 611 all persons in the Council Chamber including the city administrative staff, news media, and visitors. (b) General rules. (1) Meetings to be public: All official meetings of the Council and Council committees and subcommittees, except closed meetings permitted by the provisions of the Texas Open Meetings Act, V.T.C.A. Government Code Ch. 551, (Vernon 2014), as amended, shall be open to the public. (2) Quorum: Four (4) members of the council shall constitute a quorum for the transaction of business. (Charter, Section 2.06) (3) Compelling attendance: No member shall be excused from attendance at a council meeting except for good and valid reasons. It will be the duty of the council member to notify the city secretary prior to the meeting at which he or she is going to be absent. The city secretary will record each council member as being present or absent as a part of the minutes prepared for each council meeting. (4) Misconduct: The council may punish its own members for misconduct consistent with any ethics policy adopted by the council. (5) Minutes of meetings: An account of all proceedings of the council shall be kept by the city secretary and shall be entered in a book constituting the official record of the council. A certified agenda shall be prepared and shall be approved by the mayor for all closed meetings for which a certified agenda is required to be kept in accordance with the Texas Open Meetings Act. (6) Questions to contain one subject: All questions submitted for a vote shall contain one subject, except the city council may approve all items which are on the consent agenda in one motion, regardless of how many subjects are contained in the consent agenda, so long as all items have been properly posted in accordance with the Texas Open Meetings Act and have not been removed from the consent agenda by a council member. If two or more points are involved, any member may require a division, if the question reasonably admits of a division. (7) Right to floor: Any member desiring to speak shall be recognized by the chairperson, and shall confine his or her remarks to the subject under consideration or to be considered. No member shall be allowed to speak more than once on any one subject until every member wishing to speak shall have spoken. (8) City manager: The city manager, or acting city manager, shall attend all meetings of the council unless excused. He or she may make recommendations to the council and shall have the right to take part in all discussions of the council, but shall have no vote. (Charter, Section 5.03 (d)) (9) City attorney: The city attorney, or acting city attorney, shall be available upon request for all meetings of the council unless excused and shall, upon request, give an opinion, either written or oral, on questions of law. The city attorney shall act as the council's parliamentarian. (10) City secretary: The city secretary, or acting city secretary, shall attend all meetings of the council unless excused, and shall keep the official minutes and perform such other duties as may be requested by the council. (11) Officers and employees: Any officer or employee of the city, when requested by the city manager, shall attend any meeting of the council. If requested to do so by the city manager, such employee may present information relating to matters before the council. 612 (12) Rules of order: These rules govern the proceedings of the council in all cases, except that where these rules are silent, the most recent Edition of Robert's Rules of Order shall govern. (13) Suspension of rules: Any provision of these rules not governed by the City Charter or other City Code provisions may be temporarily suspended by the affirmative vote of four (4) members of the council. The vote on any such suspension shall be taken by yeas or nays and entered into the minutes of the council. (14) Amendment of rules: These rules may be amended, or new rules adopted by the affirmative vote of four members of the council, provided that the proposed amendments or new rules shall have been introduced before the city council at a prior council meeting. (15) Attendance under this subsection may be in-person or via videoconference or teleconference. (c) Code of conduct. (1) Council members: a. During council meetings, council members shall preserve order and decorum and shall neither by conversation or otherwise delay or interrupt the proceedings nor refuse to observe the rules of the council. b. A council member, once recognized, shall not be interrupted while speaking unless called to order by the mayor or presiding officer, unless a point of order is raised by another member or the parliamentarian, or unless the speaker chooses to yield to questions from another member. If a council member is called to order while he or she is speaking, he or she shall cease speaking immediately until the question of order is determined. If ruled to be in order, he or she shall be permitted to proceed. If ruled not to be in order, he or she shall remain silent or shall alter his or her remarks so as to comply with rules of the council. (2) Administrative staff: a. Members of the administrative staff and employees of the city shall observe the same rules of procedure and decorum applicable to members of the council, and shall have no voice unless and until recognized by the chair. b. While the presiding officer shall have the authority to preserve decorum in meetings as far as staff members and city employees are concerned, the city manager also shall be responsible for the orderly conduct and decorum of all city employees under his or her direction and control. c. The city manager shall take such disciplinary action as may be necessary to insure that such decorum is preserved at all times by city employees in council meetings. d. All remarks and questions addressed to the council shall be addressed to the council as a whole and not to any individual member thereof. e. No staff member, other than a staff member having the floor, shall enter into any discussion either directly or indirectly without permission of the presiding officer. (3) Citizens: a. Citizens and other visitors are welcome to attend all public meetings of the city council, and participate via any method the City makes available, including but not limited to personal appearance, telephonic participation, and email/internet submissions. b. All meeting attendees shall conduct themselves with propriety and decorum. Conversations between or among audience members should be conducted outside the 613 meeting room. Attendees will refrain from excessively loud private conversations while the council is in session. c. Unauthorized remarks from the audience, stamping of the feet, applauding, whistles, yells, and similar demonstrations shall not be permitted. d. Placards, banners, signs, pamphlets, flyers, or political materials of any type will not be permitted in the city council chamber or in any other room in which the city council is meeting. Exhibits, displays, and visual aids used in connection with presentations to the city council, however, are permitted. e. Audience members may not place their feet on any chairs in the city council chamber or other room in which the city council is meeting. f. Only city council members and city staff may step onto the dais. g. All people wishing to address the city council shall first be recognized by the presiding officer and shall limit their remarks to the matter under discussion. h. All remarks and questions addressed to the city council shall be addressed to the city council as a whole and not to any individual members. i. Any person addressing the city council in the city council chamber shall do so from the lectern unless physically unable to do so. People addressing the city council shall not be permitted to approach the dais. If they wish to hand out papers or other materials to the city council, they should express that desire to the presiding officer, and the city manager shall direct a staff member to hand out the materials. Electronic materials should be submitted through a dedicated email account at least four hours prior to the start of the meeting. j. When the time has expired for a presentation to the city council, the presiding officer shall direct the person speaking to cease. A second request from the presiding officer to cease speaking shall be cause of the removal of the speaker if that person continues to speak. k. Equipment, apparatus, or paraphernalia such as camera tripods, easels, or wheelchairs shall not obstruct, block, or otherwise be located in the doorway, entranceway, or walkways of the city council chambers or of any other room in which the city council may choose to meet. Representatives of the electronic media may set up cameras and other equipment only in the back of the room. It is permissible for television camera operators to film for short periods of time (several minutes) from the entranceway to the city council chambers. Any radio station, which broadcasts the regular city council meetings live, may hook their equipment up at the front of the room as long as it remains out of sight and out of the way. l. There will be a uniformed City of Denton police officer present at all regular meetings of the city council. This police officer shall act in the capacity of a security officer/sergeant-at-arms, and shall enforce the meeting rules and act upon the direction of the presiding officer. m. Any person making personal, impertinent, profane, or slanderous remarks, or who becomes boisterous while addressing the city council or who otherwise violates any of the above-mentioned rules while attending a city council meeting shall be removed from the meeting at the direction of the presiding officer, and the person shall be barred from further audience and participation before the city council during that session of the city council. If the presiding officer fails to act, any member of the city council may move to require the offending person's removal, and the affirmative vote 614 of a majority of the city council shall require the presiding officer to act. The sergeant-at-arms, if so directed by the presiding officer or an affirmative vote of the majority of the city council, shall remove the offending person from the meeting. (4) Enforcement: The city manager, in the absence of a designated law enforcement officer, shall act as sergeant at arms for the council, and shall furnish whatever assistance is needed to enforce the rules of decorum herein established. (5) Seating arrangement: The city secretary, city manager and city attorney shall occupy the respective seats in the council chamber assigned to them by the mayor, but any two (2) or more members of the council may exchange seats. (6) Videoconferencing: City council members may elect to participate in a city council meeting by videoconference in the event the member is traveling or unable to attend a meeting due to illness or declaration of disaster or emergency. a. Procedures for meeting by videoconference if a quorum will be in one physical location: The council meeting notice shall specify where the quorum of the governmental body will be physically present, and the intent to have a quorum present at that location. The video and audio feed of a remote councilmember or employee shall be broadcast live at the meeting. Each portion of the meeting held by videoconference call that is required to be open to the public shall be visible and audible to the public at the location where the quorum is present. The location at which the quorum is present, and each remote location from which a member of the governmental body participates, shall have two-way audio and video communication with each other location during the entire meeting. Each participant's face in the videoconference call, while speaking, shall be clearly visible and audible to each other participant and, during the open portion of the meeting, to the members of the public in attendance at the location where a quorum is present, and at any other location of the meeting that is open to the public. The audio and video signals perceptible by members of the public at each location of the meeting shall meet or exceed minimum standards established by Texas Department of Information Resources (DIR) rules. The audio and video signals perceptible by members of the public at the location where the quorum is present and, any other location open to the public, shall be of sufficient quality so that members of the public at each location can observe the demeanor and hear the voice of each participant in the open portion of the meeting. If a problem occurs that causes a meeting to no longer be visible and audible to the public at the location where a quorum is present, the meeting shall be recessed until the problem is resolved, and if the problem is not resolved in six hours or less, the meeting shall be adjourned. The city shall make at least an audio recording of the meeting, and the recording shall be made available to the public. b. Procedures for meeting by videoconference if a quorum will not be in one physical location: The city shall make available to the public at least one suitable physical space in the city that is equipped with videoconference equipment that provides an audio and video display, as well as a camera and microphone, by which a member of the public can provide testimony or otherwise participate in the meeting. The member of the governmental body presiding over the meeting shall be present at this site, and the location must be open to the public. The meeting notice shall specify the physical 615 space provided, and shall also specify the intent to have the presiding officer present at the location. Any member of the public present at this location shall be provided the opportunity to participate in the meeting by means of a videoconference call in the same manner as a person who is physically present at a meeting of the governmental body that is not conducted by videoconference. Each portion of the meeting held by videoconference call that is required to be open to the public shall be visible and audible to the public. The video and audio feed of a remote councilmember or employee shall be broadcast live at the meeting. The site provided in the city and each remote location from which a member participates, shall have two-way audio and video communication with each member who is participating by videoconference during the entire meeting. Each participant's face in the videoconference, while speaking, must be clearly visible and audible to each other participant and, during the open portion of the meeting, to the members of the public in attendance at the meeting location in the city, and at any other location of the meeting that may be open to the public. The audio and video signals perceptible by members of the public at each location of the meeting shall meet or exceed minimum standards established by DIR rules. The audio and video signals perceptible by members of the public at each location of the meeting that is open to the public, and each remote location, must be of sufficient quality so that members of the public at each location can observe the demeanor and hear the voice of each participant in the open portion of the meeting. If a problem occurs that causes the meeting to no longer be visible and audible to the public at the meeting site in the city, the meeting must be recessed until the problem is resolved, and if the problem is not resolved in six hours or less, the meeting shall be adjourned. The city shall make at least an audio recording of the meeting, and the recording shall be made available to the public. c. Council members wishing to participate in a meeting by videoconference shall provide notice to the city manager and the agenda committee not less than four (4) days prior to the meeting. (d) Types of meetings. (1) Regular meetings: The council shall meet on the first and third Tuesday of each month, at such time as may be set by the city council, unless the meeting is postponed or cancelled for valid reasons. All regular meetings of the council will be held in City Hall at 215 East McKinney Street, Denton, Texas or at such other location as the city council may, from time to time by proper posting under the Open Meetings Act and so long as the meeting is available to the public, designate. In the event a regular meeting falls on a day the city observes a paid holiday, or the day after, no regular meeting shall be scheduled. Furthermore, no regular meetings shall be held the first two weeks in July, nor the last two weeks of November and December. The limitations in this provision do not apply to other types of meetings which may be called under Section 2-29(d). (2) Special meetings: Special meetings may be called by the mayor, the city manager, or by any three (3) members of the council. The city secretary shall post notice thereof as provided by the Texas Open Meetings Act. The mayor, city manager, or three (3) of the council members may designate a location for the special meeting other than City Hall, as long as the location is open to the public. (3) Workshop meetings: Workshop meetings (also referred to as "work sessions") may be held on the first and third Tuesday of each month at such time as may be set by the city 616 council, or on such other day as the city council may designate and at such time as may be set by the city council, to discuss near to mid or long range issues and to answer city council questions concerning all agenda items. Workshops or work sessions may be called using the same procedure required for special meetings as provided for in subsection (2) above. The purpose of the workshop meeting is to discuss or explore matters of interest to the city, to meet with city boards, commissions, or committee members, city staff or officers of civic organizations, governing bodies or individuals specifically invited to the session by the mayor, council or city manager. These meetings are informational and normally no final action shall be taken unless the posted agenda indicates otherwise. However, the city council may, by consensus, provide general direction to staff with regard to matters of interest or concern, understanding such matters ultimately may require a formal vote of the council for implementation. (4) Luncheon meetings: Luncheon workshop or work session meetings may be held on the first Monday of each month at such time as may be set by the city council, or on such other day as the city council may designate. Such meetings may be called using the same procedure required for special meetings as provided for in subsection (2) above. The purpose of the luncheon meeting is to discuss or explore matters of interest to the city, to meet with city boards, commissions, or committee members, city staff or officers of civic organizations, governing bodies or individuals specifically invited to the session by the mayor, council or city manager. These meetings are informational and normally no final action shall be taken unless the posted agenda indicates otherwise. However, the city council may, by consensus, provide general direction to staff with regard to matters of interest or concern, understanding such matters ultimately may require a formal vote of the council for implementation. (5) Emergency meetings: In case of emergency or urgent public necessity, which shall be expressed in the notice of the meeting, an emergency meeting may be called by the mayor, the city manager or by three members of the council, and it shall be sufficient if the notice is posted one hour before the meeting is convened. Council members shall notify staff as soon as possible if they will participate in an emergency meeting via videoconference. (6) Closed meetings: The council may meet in a closed meeting pursuant to the requirements of the Texas Open Meetings Act. (7) Recessed meetings: Any meeting of the council may be recessed to a later time, provided that no recess shall be for a longer period than until the next business day. (8) Notice of meetings: The agenda for all meetings, including council committee or subcommittee meetings, shall be posted by the city secretary on the city's official bulletin board and notice of all meetings shall be given by the city secretary pursuant to the requirements of the Texas Open Meetings Act. (e) Presiding officer and duties. (1) Presiding officer: The mayor, or in the absence of the mayor, the mayor pro-tem, shall preside as chairman, or presiding officer at all meetings of the council. In the absence of the mayor and the mayor pro-tem, the council shall elect a temporary presiding officer. (Charter, Section 2.03) (2) Call to order: The meetings of the council shall be called to order by the mayor, or in his or her absence, by the mayor pro-tem. In the absence of both the mayor and the mayor 617 pro-tem, the meeting shall be called to order by the city secretary, and a temporary presiding officer shall be elected as provided above. (3) Preservation of order: The presiding officer shall preserve order and decorum, and confine members in debate to the question under discussion. The presiding officer shall call upon the sergeant-at-arms as necessary to enforce compliance with the rules contained herein. (4) Points of order: The presiding officer shall determine all points of order, subject to the right of any member to appeal to the council. If any appeal is taken, the question shall be, "Shall the decision of the presiding officer be sustained?" If a majority of the members present vote "No," the ruling of the chair is overruled; otherwise, it is sustained. (5) Questions to be stated: The presiding officer shall state all questions submitted for a vote and announce the result. A roll call vote shall be taken upon the request of any member, and upon the passage of all ordinances and resolutions. (6) Substitution for presiding officer: The presiding officer may call any other member to take his or her place in the chair, such substitution not to continue beyond adjournment. (7) Call for recess: The presiding officer may call for a recess of up to fifteen (15) minutes at regular intervals of approximately one hour at appropriate points in the meeting agenda, or if requested by any two (2) members. (f) Order of business. (1) Agenda: The order of business of each meeting shall be as contained in the agenda prepared by the city manager, which shall be reviewed and approved by an agenda committee composed of the mayor, the mayor pro-tem, and the city manager. When items are removed from the consent agenda and placed on the regular agenda by members of the council, the removed items shall be taken up in the order of removal right after the consent agenda. Placement of items on the agenda shall be governed by this ordinance; provided that if a council member has an "emergency" item that the council member believes should be placed on the next regular or special meeting agenda, the placement must be approved by two members of the agenda committee or at the direction of a majority of the council. Conduct of business at special meetings will likewise be governed by an agenda and these rules of procedure. (2) Pledge of Allegiance: Each agenda shall provide an item for the recital of the "Pledge of Allegiance" at the regularly scheduled city council meetings. This item shall begin with the recital of the pledge of allegiance for the United States flag and shall follow with a recital of the pledge of allegiance for the Texas state flag in accordance with V.T.C.A. Government Code § 3100.101. (3) Presentations by members of council or city manager: The agenda shall provide a time when the mayor or any council member may bring before the council any business that he or she feels should be deliberated upon by the council at a future council meeting. These matters need not be specifically listed on the agenda, but discussion and formal action on such matters shall be deferred until a subsequent council meeting. Any member may suggest an item for discussion at a future work session. The city manager or city staff shall only respond preliminarily on this item at the work session. If the city council believes the item requires a more detailed review, the council will give the city manager or city staff direction to place the item on a future regular meeting agenda and advise staff as to the background materials to be desired at such meeting. The city council may receive from the city manager or city staff or a member of the city council reports about 618 items of community interest including expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen, except that a discussion regarding a change in the status of a person's public office or public employment is not an honorary or salutary recognition for purposes of this subdivision; 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; and announcements involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda so long as authorized by the Texas Open Meetings Act. (4) Presentations from members of the public: a. Reports from members of the public: Reports from members of the public shall be received through either of two (2) methods: 1) prior registration or 2) open microphone. A total of up to seven (7) speakers are permitted to provide public comment and may include any combination of prior registration and open microphone speakers. Public comment is provided during regular meetings of the city council, which typically occur on the first and third Tuesday of each month. Presentations made in accordance with this section may be made via teleconference or videoconference technology as specified by the City on its website or meeting notice. 1) Prior registration. Any person who wishes to place a subject on the council agenda at regular council meetings shall advise the city manager's office of that fact and the specified subject matter which he or she desires to place on the agenda no later than 12:00 p.m. Thursday prior to the council meeting at which he or she wishes the designated subject to be considered. Such reports shall be heard at the beginning of the regular meeting of the city council pursuant to an agenda posting allowing a period of public comment. Each speaker providing a report shall speak for no longer than four (4) minutes. At the conclusion of each report, council may pose questions to the speaker concerning his or her report. Council may also engage in discussion concerning each report. If the city council believes that a speaker's report requires a more detailed review, the council will give the city manager or city staff direction to place the item on a future work session or regular meeting agenda and advise staff as to the background materials to be desired at such meeting. 2) Open microphone. At the beginning of the regular meeting of the city council, persons who have not registered to speak as above described may make comments through the open microphone procedure. Such person(s) shall have filed a "Blue Card" requesting to speak during this period prior to the calling of this agenda item. Prior to the beginning of the regular meeting of the city council, persons who wish to participate remotely shall register via any manner specified by the City on its website or meeting notice. At the time the city council calls the Open Microphone comment period, a person may present himself or herself and make 619 public comments regarding public business; provided however, such persons shall not be allowed to speak to items on the current agenda in light of other established procedures for taking such comments as specified in these rules. No person may submit a "request to speak" form in order to speak or comment on another person's report, which is given at the same council meeting. An announcement may be made, prior to the time for reports from members of the public on the agenda, summarizing the main portions of the rules and the "code of conduct" as they may apply to members of the public speaking to the council. Any speaker providing a report shall speak for no longer than four (4) minutes on all items that he or she may bring before the council at each meeting. b. Work session or workshop items: As it concerns the workshop agenda, citizens or other interested persons may not participate in the session unless invited to do so by the mayor. If the mayor invites citizens to participate in a work session, their participation will cease at the point the mayor closes the session to public input to allow the council to give city staff direction as to needed information for the possible future meeting on the item. Citizens should be advised of the nature of the work session, but that their input on these items is premature until such item is placed upon a city council agenda for final action. The purpose of this procedure is to allow the citizens attending the regular meeting the opportunity of hearing the views of their fellow citizens in a more formal setting. Any citizen may supply the city council a written statement or report regarding the citizen's opinion on a matter being discussed in a work session. c. Commenting on consent and regular agenda items: Any person who wishes to address the council regarding a non-public hearing regular or consent agenda item that is on the council's agenda, shall complete a "request to speak" form asking to speak regarding the item and shall return it to the city secretary. On consent items, the request to speak card shall be submitted prior to the citizen comment on consent agenda items at the beginning of the city council meeting. On regular agenda items, the request to speak card shall be submitted prior to the time the city council considers the item. The mayor will call upon the person who desires to speak. Comments may also be submitted via web form at the link provided on the agenda or by telephonic participation. For both consent and regular agenda items, web comments must be received at least one (1) hour prior to the posted time of the start meeting, and will provided to council prior to consideration of any item to which a comment pertains. 1) Consent agenda items: When consent agenda items are posted on an agenda, citizens or other interested persons will be allowed to make citizen comment immediately after the opening of the city council meeting and prior to workshop or work session items on the agenda by filling out a "request to speak" card (aka a "blue card") asking to speak on any or all consent agenda items and returning the form to the city secretary. In the event a person is unable to attend the city council workshop or work session, he or she may contact the city secretary prior to the opening of the meeting and request that a consent agenda item be pulled from the consent agenda in order to allow comment as an individual item at the regular meeting of the city council. The city secretary shall make any such request known to the city council. Consent agenda items are generally routine nature, so 620 comment at this time facilitates the regular council meeting where no citizen comment on consent agenda items will be permitted, unless the item is removed from the consent agenda by a member of the council to be considered as an individual item during the regular meeting. Speakers will be allowed three (3) minutes per speaker and may comment on any or all consent agenda items so long as any speaker's time does not exceed a total of three (3) minutes. 2) Regular agenda items: During the regular session of the city council meeting, any citizen or interested person may comment on an item posted on the agenda for final action. Any person who wishes to address the council regarding a non-public hearing item that is on the council's agenda, shall complete a "request to speak" form asking to speak regarding the item and shall return it to the city secretary before the council considers the item. This procedure applies to speakers desiring to speak to items for individual consideration on the agenda during the regular meeting of the city council. The mayor will call upon the person to speak. Speakers will be allowed three (3) minutes per speaker as to any particular agenda item being considered by the city council. a. Public hearings: 1) Any person who wishes to address the council at a public hearing is encouraged to complete a "request to speak" form and return it to the city secretary or online, or by calling the phone number provided in the meeting notice before the applicable hearing or at a time set by the City. The mayor will call upon the person to speak. Speakers will be allowed an initial four (4) minutes per speaker as to any public hearing item. However, if numerous speakers desire to comment on an item, council may limit speakers to three (3) minutes per speaker. Only those speakers who previously provided input on a specific item will be permitted to provide a final rebuttal of up to two (2) minutes per speaker. Applicants and their agents on public hearing items shall be allowed to speak for no longer than ten (10) minutes per speaker with a total of twenty (20) minutes for all speakers representing the applicant. Speakers will have the opportunity to make a single, final rebuttal after hearing the applicant’s rebuttal as set forth in Section 2-29(f)(4)(d)(2)(g). 2) To facilitate the public hearing process in zoning cases the following procedure will be used: a) The mayor reads the zoning case caption, and then opens the public hearing. b) The city manager introduces the city staff for presentation. c) City staff presents facts relevant to the matter. d) The applicant presents his or her case, with potential questions of the applicant from the city council. e) The council receives input from the public, with potential questions of speakers from the city council. f) The applicant will be given an opportunity to make rebuttal comments. g) Members of the public who previously provided input on a specific item will have the opportunity to make a single, final rebuttal. h) The city staff and/or the applicant will answer any questions of the city council. i) Upon conclusion of these questions and answers, the mayor will continue or close the public hearing. 621 3) Groups or organizations: Any group or organization comprised of four (4) or more members present in the city council chambers who wishes to address the council at a public hearing or on a non-public hearing agenda item shall designate a representative to address the city council and shall limit their remarks to ten (10) minutes or less. The group or organization shall turn in a written designation to the city secretary, on cards prepared by the city secretary of a different color from cards submitted by individual speakers or via online form or email, prior to the commencement of the meeting identifying the representative who will address the city council on behalf of the group or organization. At the time the representative is recognized by the mayor to speak, the group or organization present in the meeting room will be asked to stand to be recognized prior to the receipt of comments by the representative. b. Discretionary time: At the discretion of the presiding officer or a majority of the city council, any speaker may be granted an extension of time to speak. c. Audio/Visual aids: Any citizen desiring to use audio/visual aids during presentations to council shall submit such presentation to the city secretary twenty-four (24) hours prior to the meeting where the presentation will occur. (5) Presentation of proclamations: The agenda may provide a time for the presentation of proclamations. The mayor or presiding officer may deliver and present proclamations upon the request of citizens. Proclamations may encompass any activity or theme except that proclamations with a theme religious or partisan in nature shall not be presented. Moreover, proclamations shall not be used for any commercial or advertising purpose. (g) Consideration of ordinances, resolutions, and motions. (1) Printed or typewritten form: All ordinances and resolutions shall be presented to the council in printed, typewritten or electronic form. The council may, by proper motion, amend any ordinance or resolution presented to it at the meeting at which it is presented or direct that the amended ordinance be placed on the next or any future council agenda for adoption. (2) City attorney to approve: All ordinances, resolutions, and contracts and amendments thereto, shall be approved as to form and legality by the city attorney, or he or she shall file a written opinion on the legality of such ordinance, resolution or contract prior to submission to the council. (Charter, Section 6.02) (3) Distribution of ordinances and resolutions: The city manager shall prepare copies of all proposed ordinances and resolutions for distribution to all members of the council at the meeting at which the ordinance or resolution is introduced, or at such earlier time as is expedient. (4) Recording of votes: The yeas and nays shall be taken upon the passage of all ordinances and resolutions and the vote of each member shall be recorded in the minutes and within each respective ordinance and resolution. (Charter, Section 2.06 (b)) (5) Majority vote required: An affirmative vote of four (4) members is necessary to repeal any ordinance or take any official action in the name of the city except as otherwise provided in the Charter, by the laws of the State of Texas, or these rules. (Charter, Section 2.06) a. Tie-Vote: 1. City Council: Matters voted on by the City Council which end in a tie-vote due to absence(s) shall automatically be placed on each subsequent council meeting 622 agenda until the full Council is present or the matter does not end in a tie vote. Matters voted on by the City Council when the full Council is present, which end in a tie-vote due to recusal(s) shall be considered a denial. 2. Boards, Commissions, and Committees: With the exception of the Planning and Zoning Commission, matters voted on by boards, commissions, and committees, which end in a tie-vote, regardless of the cause, shall be considered a denial. This provision applies to all task forces, ad hoc committees, or other limited duration groups established by the City Council. i. The Denton Development Code outlines the process for City Council review and decision of any recommendations made by the Planning and Zoning Commission. (6) Demand for roll call: Upon demand of any member, the roll shall be called for yeas and nays upon any question before the council, with the exception of those circumstances set forth in subsection (12), the previous question. It shall not be in order for members to explain their vote during the roll call. (7) Personal privilege: The right of a member to address the Council on a question of personal privilege shall be limited to cases in which his or her integrity, character, or motives are assailed, questioned, or impugned. (8) Dissents and protests: Any member shall have the right to express dissent from or protest against any ordinance or resolution of the council and have the reason therefor entered upon the minutes. Such dissent or protest may be filed in writing, and presented to the council not later than the next regular meeting following the date of passage of the ordinance or resolution objected to. (9) Voting required: No member shall be excused from voting except for lack of information and except on matters involving the consideration of his or her own official conduct, or where his or her personal interests are involved in accordance with V.T.C.A. Local Government Code Ch. 171 (Vernon 2014), and in these instances he or she shall abstain. Any member prohibited from voting by personal interest shall announce this at the commencement of consideration of the matter and shall not enter into discussion or debate on any such matter, shall leave the meeting, and shall file an affidavit of recusal. The member having briefly stated the reason for his or her request, the excuse from voting shall be made without debate. (10) Order of precedence of motions: a. The following motions shall have priority in the order indicated: 1. Adjourn (when unqualified) and is not debatable and may not be amended; 2. Take a recess (when privileged); 3. Raise a question of privilege; 4. Lay on the table; 5. Previous question (⅔ vote required); 6. Limit or extend limits of debate (⅔ vote required); 7. Postpone to a certain time; 8. Commit or refer; 9. Amend; 10. Postpone indefinitely; 11. Main motion. 623 b. The first two motions are not always privileged. To adjourn shall lose its privilege character and be a main motion if in any way qualified. To take a recess shall be privileged only when other business is pending. c. A motion to adjourn is not in order: 1. When repeated without intervening business or discussion; 2. When made as an interruption of a member while speaking; 3. While a vote is being taken. d. Only certain motions may be amended as provided in the most current edition of Robert's Rules of Order, revised. A motion to amend shall be undebatable when the question to be amended is undebatable. (11) Reconsideration: A motion to reconsider any action of the council can be made not later than the next succeeding official meeting of the council. Such a motion can only be made by a member who voted with the prevailing side. It can be seconded by any member. In order to comply with the Texas Open Meetings Act, any council member who wishes to make such a motion at a meeting succeeding the meeting where the action was taken shall notify the city manager to place the item for reconsideration on the council agenda. No question shall be twice reconsidered, except by unanimous consent of the council, except that action related to any contract may be reconsidered at any time before the final execution thereof. A matter which was not timely reconsidered in the manner provided by this section or was reconsidered but the action originally taken was not changed by the council cannot be reintroduced to the council or placed on a council meeting agenda for a period of six (6) months unless this rule is suspended as provided for in these rules of procedure. (12) The previous question: When the previous question is moved and seconded, it shall be put as follows: "Shall the main question be now put?". There shall then be no further amendment or debate; except that nothing herein shall allow the previous question to be called prior to a least one opportunity for each member of the council to speak on the question before the council. Any pending amendments shall be put in their order before the main question. If the motion for the previous question is lost, the main question remains before the council. An affirmative vote of ⅔ of the council shall be required to move the previous question. To demand the previous question is equivalent in effect to moving "That debate now cease, and the council shall immediately proceed to vote on the pending motion". In practice, this is done with the phrase "Call for the question", or simply saying "Question". (13) Withdrawal of motions: A motion may be withdrawn, or modified, by its movant without asking permission until the motion has been stated by the presiding officer. If the movant modifies his or her motion, the seconding council member may withdraw his or her second. After the question has been stated, the movant shall neither withdraw it nor modify it without the consent of the council. The subject different from that under consideration shall be admitted under color of amendment. A motion to amend an amendment shall be in order, but one to amend an amendment to an amendment shall not be in order. (14) Appropriations of money: Before formal approval by the council of motions providing for appropriation of money, information must be presented to the council showing purpose of the appropriation. In addition, before finally acting on such an 624 appropriation, the council shall obtain a report from the city manager as to the availability of funds and his or her recommendations as to the desirability of the appropriation. (15) Transfer of appropriations: At the request of the city manager, at any time during the fiscal year, the council may by resolution transfer an unencumbered balance of an appropriation made for the use of one department, division, or purpose; but no transfer shall be made of revenues or earnings of any non-tax supported public utility to any other purpose. (h) Creation of committees, boards and commissions. (1) Council committees: The council may, by resolution and as the need arises, authorize the appointment of council committees. Any committee so created shall cease to exist when abolished by resolution of the council. Council committees shall comply with the Texas Open Meetings Act. (2) Citizen boards, commissions, and committees: The council may create other citizen boards, commissions, and committees to assist in the conduct of the operation of the city government with such duties as the council may specify not inconsistent with the City Charter or Code. Creation of such boards, commissions, and committees and memberships and selection of members shall be by council resolution if not otherwise specified by the City Charter or Code. Any board, commission, or committee so created shall cease to exist when abolished by a resolution approved by the council. No committee so appointed shall have powers other than advisory to the council or to the city manager, except as otherwise specified by the Charter or Code. All citizen boards, commissions, and committees shall comply with the procedural requirements of the Texas Open Meetings Act. Any reference in this article to "citizen boards, commissions, and committees" includes citizen task forces and citizen ad hoc boards, commissions, and committees unless otherwise indicated herein. (3) Appointments: a. Individual city council members making nominations for members to citizen boards, commissions, and committees will consider interested persons on a citywide basis. b. The city council will make an effort to be inclusive of all segments of the community in the board, commission, and committee appointment process. City council members will consider ethnicity, gender, socio-economic levels, and other factors to ensure a diverse representation of Denton citizens. c. The city council will take into consideration an individual's qualifications, willingness to serve, and application information in selecting nominations for membership to each board, commission, and committee. d. In an effort to ensure maximum citizen participation, city council members will continue the general practice of nominating new citizens to replace board members who have served three (3) consecutive terms on the same board per the provisions of Denton Code of Ordinances, section 2-65. This provision does not apply to citizen task forces and citizen ad hoc committees. e. Each city council member will be responsible for making nominations for board, committee, and commission places assigned to him or her, which shall correspond to the city council member's place. Individual city council members will make nominations to the full city council for the governing body's approval or disapproval. (4) Rules of procedure: 625 a. All board, commission, and committee members, including citizen board, commission, and committee members, shall comply with the provisions of article II of chapter 2 of the Code of Ordinances. All board, commission and committee members, including citizen board, commission, and committee members, shall be provided a copy of these rules of procedure and a copy of the City of Denton Handbook for Boards, Commissions and Committees, which shall govern operational procedures of all boards, commissions and committees, including citizen boards, commissions, and committees. All boards, commissions, and committees, including citizen boards, commissions and committees, shall comply with these rules as to the preparation of minutes of meetings, and such minutes shall be prepared in accordance with the policies and procedures of the city secretary. b. All citizen board, commission, and committee members shall comply with the procedural requirements of the V.T.C.A., Texas Government Code Chapter 551, also known as the "Texas Open Meetings Act" as they appear in statute or as they may be amended or otherwise modified. Notice of all meetings shall be posted in compliance with the Texas Open Meetings Act and minutes and records will be maintained in accordance with requirements of the city secretary's office. Each citizen board, commission, and committee member shall be provided a copy of the Texas Open Meetings Act. Penalty provisions of the Texas Open Meetings Act shall only apply to citizen boards, commissions, and committees with rule making or quasi-judicial power, as set forth in the Texas Open Meetings Act and as interpreted by Texas Courts. City Council and city boards, commissions and committees may operate via videoconference to the extent permitted by law and as directed by council. c. Unless otherwise provided by law, the City Council and each board, commission, or committee, shall adopt a regular meeting schedule by no later than the body’s first meeting of the calendar year. All regular meeting schedules shall be sent to the City Secretary’s Office for official record keeping purposes upon adoption. Regular meeting schedules should include all planned meetings the body intends to have during the calendar year. (i) Votes required. Questions on which the voting requirement is varied by the Charter, State Statutes and these rules are listed below: (1) Charter and state statutory requirements: a. Charter amendment—Five (5) votes: Ordinances submitting proposed Charter amendments must be adopted by a two-thirds (⅔) vote of the council. (TEX. CONST. art. XI, § 3 and V.T.C.A. Local Government Code Ch. 9 (Vernon 2014.)) For a seven-member council, this means five (5) members must vote affirmatively. b. Levying taxes—Five (5) votes: Ordinances providing for the assessment and collection of certain taxes require the approval of two-thirds (⅔) of the members of the council (V.T.C.A. Tax Code § 302.101 (Vernon 2014)). c. Changing paving assessment plans—Five (5) votes: Changes in plans for paving assessment require a two-thirds (⅔) vote of the council (V.T.C.A. Transportation Code § 313.053(e) (Vernon 2014)). d. Changes in zoning ordinance or zoning classifications: In cases of a written protest of a change in a zoning regulation or zoning classification by the owners of twenty (20) percent or more either of the area of the lots included in such proposed change, or of the lots immediately adjoining the same and extending two hundred (200) feet 626 therefrom, such amendment shall not become effective except by the favorable vote of three-fourths (¾) of all members of the city council; further, three-fourths (¾) of all the members of the city council is required to override the decision of the planning and zoning commission that a zoning change be denied (V.T.C.A. Local Government Code § 211.066 (Vernon 2014)) and section 35.3.4.C.(4) Denton City Code (Development Code)). ("All" members of the city council is construed to mean all who are qualified to vote on a matter, and any legal disqualification of a member could change the requisite number of votes required for passage. City of Alamo Heights v. Gerety et al., 264 S.W. 2d 778 (Ct. App. — San Antonio (1954)). e. Amendment of tax abatement policy: The guidelines and criteria adopted as the city's tax abatement policy may be amended or repealed by a vote of three-fourths (¾) of all members of the city council (V.T.C.A. Tax Code § 312.002(c) (Vernon 2014)). (j) Severability clause. If any section, subsection, paragraph, sentence, clause, phrase or word in this section, or application thereof to any person or circumstances, is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 3. The City Secretary is hereby directed to record and publish the foregoing ordinance in the City’s Code of Ordinances as authorized by Chapter 53 of the Texas Local Government Code. SECTION 4. If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances, is held invalid or unconstitutional by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance; the City Council declares that it would have ordained such remaining portions despite any such invalidity, and such remaining portion shall remain in full force and effect. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. The motion to approve this ordinance was made by __________________________ and seconded by _________________________________, the ordinance was passed and approved by the following vote [___ - ___]: 627 Aye Nay Abstain Absent Gerard Hudspeth, Mayor: ______ ______ ______ ______ Vicki Byrd, District 1: ______ ______ ______ ______ Brian Beck, District 2: ______ ______ ______ ______ Jesse Davis, District 3: ______ ______ ______ ______ Alison Maguire, District 4: ______ ______ ______ ______ Deb Armintor, At Large Place 5: ______ ______ ______ ______ Paul Meltzer, At Large Place 6: ______ ______ ______ ______ PASSED AND APPROVED this the _________ day of ___________________, 2021. __________________________________ GERARD HUDSPETH, MAYOR ATTEST: ROSA RIOS, CITY SECRETARY BY: __________________________________ APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY BY: _________________________________ Digitally signed by Catherine Clifton DN: dc=com, dc=cityofdenton, dc=codad, ou=Department Users and Groups, ou=General Government, ou=Legal, cn=Catherine Clifton, email=Catherine.Clifton@cityofdenton.com Date: 2021.05.20 21:58:20 -05'00' 628 Items for Individual Consideration Public Meetings May 25, 2021 1ID#21-1055 and #21-1022, May 25, 2021 629 •On May 11, staff presented to City Council and received direction for how to proceed with public meetings •Approved policy direction by Council •Allows bodies the option to return to pre-COVID-19 meeting schedule and frequency (instead of reduced frequency due to limited resources) •Allows for public participation and viewing in-person (while still allowing the option for remote participation for the hybrid meetings) •Returns meeting production to pre-COVID-19 status (produce 8 public meeting bodies selected and budgeted for; allow staff to return to a sustainable level of meeting production) 2ID#21-1055 and #21-1022, May 25, 2021 Resolution on Public Meetings (21-1055) 630 Resolution on Public Meetings (21-1055) •What’s been done: •Developed item to update Rules of Procedure to allow for public comment in-person at meetings again (ID#21-1022); •Sent initial communications to staff liaisons and Board & Commission members; •Making room modifications (including outfitting the Council Chambers with barriers between seats on the dais, marking off some seats, and setting up a separate microphone if any of members of the public are in-person to speak) •Updated signage to advise and ask individuals to follow the CDC’s latest guidance to individuals for health & safety •Recommended modifications incorporated into resolution: •Delay the start of hybrid meetings transition by two weeks to Monday, June 14 (due to staff training, testing, and availability) •Continue Committee on Persons with Disabilities and the Economic Development Partnership Board temporarily as all virtual due to their large size and other considerations, until Sept. 1, 2021 or until expiration of the Governor’s waiver of certain TOMA requirements •Resolution would confirm prior policy direction received by City Council 3ID#21-1055 and #21-1022, May 25, 2021 631 Ordinance for Rules of Procedure (21-1022) 4 •City Council meetings are conducted in accordance with the Council Rules of Procedure (Code of Ordinances Section 2-29) •Council temporarily amended the Rules of Procedure on March 31, 2020 in order to facilitate virtual meetings •Council, boards, commissions, and committees operating under these Rules since that time. •With return to in person and hybrid meetings, staff is proposing to repeal and replace Rules on a permanent basis to: •Allow for in-person and/or virtual attendance as applicable •Allow for public participation in person, by phone, or online comment •Provide general flexibility with regard to the method of member or public participation and interaction ID#21-1055 and #21-1022, May 25, 2021 632 Questions? 5ID#21-1055 and #21-1022, May 25, 2021 633 Subpart A – Code of Ordinances ARTICLE II. - ADMINISTRATIVE ORGANIZATION Sec. 2-29. - City council rules of procedure. (a) Authority. (1) Charter: Pursuant to the provisions of Section 2.07 of the Charter of the City of Denton, Texas, the City Council hereby enacts these rules of procedure for all meetings of the City Council of the City of Denton, Texas. During any meeting, a reasonable opportunity shall be given for citizens to be heard under these rules. These Rules of Procedure are enacted as guidelines to be followed by all persons in the Council Chamber including the city administrative staff, news media, and visitors. (b) General rules. (1) Meetings to be public: All official meetings of the Council and Council committees and subcommittees, except closed meetings permitted by the provisions of the Texas Open Meetings Act, V.T.C.A. Government Code Ch. 551, (Vernon 2014), as amended, shall be open to the public. (2) Quorum: Four (4) members of the council shall constitute a quorum for the transaction of business. (Charter, Section 2.06) (3) Compelling attendance: No member shall be excused from attendance at a council meeting except for good and valid reasons. It will be the duty of the council member to notify the city secretary prior to the meeting at which he or she is going to be absent. The city secretary will record each council member as being present or absent as a part of the minutes prepared for each council meeting. (4) Misconduct: The council may punish its own members for misconduct consistent with any ethics policy adopted by the council. (5) Minutes of meetings: An account of all proceedings of the council shall be kept by the city secretary and shall be entered in a book constituting the official record of the council. A certified agenda shall be prepared and shall be approved by the mayor for all closed meetings for which a certified agenda is required to be kept in accordance with the Texas Open Meetings Act. (6) Questions to contain one subject: All questions submitted for a vote shall contain one subject, except the city council may approve all items which are on the consent agenda in one motion, regardless of how many subjects are contained in the consent agenda, so long as all items have been properly posted in accordance with the Texas Open Meetings Act and have not been removed from the consent agenda by a council member. If two or more points are involved, any member may require a division, if the question reasonably admits of a division. (7) Right to floor: Any member desiring to speak shall be recognized by the chairperson, and shall confine his or her remarks to the subject under consideration or to be considered. No member shall be allowed to speak more than once on any one subject until every member wishing to speak shall have spoken. (8) City manager: The city manager, or acting city manager, shall attend all meetings of the council unless excused. He or she may make recommendations to the council and shall have the right to take part in all discussions of the council, but shall have no vote. (Charter, Section 5.03 (d)) 634 (9) City attorney: The city attorney, or acting city attorney, shall be available upon request for all meetings of the council unless excused and shall, upon request, give an opinion, either written or oral, on questions of law. The city attorney shall act as the council's parliamentarian. (10) City secretary: The city secretary, or acting city secretary, shall attend all meetings of the council unless excused, and shall keep the official minutes and perform such other duties as may be requested by the council. (11) Officers and employees: Any officer or employee of the city, when requested by the city manager, shall attend any meeting of the council. If requested to do so by the city manager, such employee may present information relating to matters before the council. (12) Rules of order: These rules govern the proceedings of the council in all cases, except that where these rules are silent, the most recent Edition of Robert's Rules of Order shall govern. (13) Suspension of rules: Any provision of these rules not governed by the City Charter or other City Code provisions may be temporarily suspended by the affirmative vote of four (4) members of the council. The vote on any such suspension shall be taken by yeas or nays and entered into the minutes of the council. (14) Amendment of rules: These rules may be amended, or new rules adopted by the affirmative vote of four members of the council, provided that the proposed amendments or new rules shall have been introduced before the city council at a prior council meeting. (15) Attendance under this subsection may be in-person or via videoconference or teleconference. (c) Code of conduct. (1) Council members: a. During council meetings, council members shall preserve order and decorum and shall neither by conversation or otherwise delay or interrupt the proceedings nor refuse to observe the rules of the council. b. A council member, once recognized, shall not be interrupted while speaking unless called to order by the mayor or presiding officer, unless a point of order is raised by another member or the parliamentarian, or unless the speaker chooses to yield to questions from another member. If a council member is called to order while he or she is speaking, he or she shall cease speaking immediately until the question of order is determined. If ruled to be in order, he or she shall be permitted to proceed. If ruled not to be in order, he or she shall remain silent or shall alter his or her remarks so as to comply with rules of the council. (2) Administrative staff: a. Members of the administrative staff and employees of the city shall observe the same rules of procedure and decorum applicable to members of the council, and shall have no voice unless and until recognized by the chair. b. While the presiding officer shall have the authority to preserve decorum in meetings as far as staff members and city employees are concerned, the city manager also shall be responsible for the orderly conduct and decorum of all city employees under his or her direction and control. c. The city manager shall take such disciplinary action as may be necessary to insure that such decorum is preserved at all times by city employees in council meetings. 635 d. All remarks and questions addressed to the council shall be addressed to the council as a whole and not to any individual member thereof. e. No staff member, other than a staff member having the floor, shall enter into any discussion either directly or indirectly without permission of the presiding officer. (3) Citizens: a. Citizens and other visitors are welcome to attend all public meetings of the city council, and will be admittedparticipate via any method the City makes available, including but not limited to the city council chamber or other room in which the city council is meeting, up to the fire safety capacity of the roompersonal appearance, telephonic participation, and email/internet submissions. b. All meeting attendees shall conduct themselves with propriety and decorum. Conversations between or among audience members should be conducted outside the meeting room. Attendees will refrain from excessively loud private conversations while the council is in session. c. Unauthorized remarks from the audience, stamping of the feet, applauding, whistles, yells, and similar demonstrations shall not be permitted. d. Placards, banners, signs, pamphlets, flyers, or political materials of any type will not be permitted in the city council chamber or in any other room in which the city council is meeting. Exhibits, displays, and visual aids used in connection with presentations to the city council, however, are permitted. e. Audience members may not place their feet on any chairs in the city council chamber or other room in which the city council is meeting. f. Only city council members and city staff may step onto the dais. g. All people wishing to address the city council shall first be recognized by the presiding officer and shall limit their remarks to the matter under discussion. h. All remarks and questions addressed to the city council shall be addressed to the city council as a whole and not to any individual members. i. Any person addressing the city council in the city council chamber shall do so from the lectern unless physically unable to do so. People addressing the city council shall not be permitted to approach the dais. If they wish to hand out papers or other materials to the city council, they should express that desire to the presiding officer, and the city manager shall direct a staff member to hand out the materials. Electronic materials should be submitted through a dedicated email account at least four hours prior to the start of the meeting. j. When the time has expired for a presentation to the city council, the presiding officer shall direct the person speaking to cease. A second request from the presiding officer to cease speaking shall be cause of the removal of the speaker if that person continues to speak. k. Equipment, apparatus, or paraphernalia such as camera tripods, easels, or wheelchairs shall not obstruct, block, or otherwise be located in the doorway, entranceway, or walkways of the city council chambers or of any other room in which the city council may choose to meet. Representatives of the electronic media may set up cameras and other equipment only in the back of the room. It is permissible for television camera operators to film for short periods of time (several minutes) from the entranceway to the city council chambers. Any radio station, which broadcasts the regular city council 636 meetings live, may hook their equipment up at the front of the room as long as it remains out of sight and out of the way. l. There will be a uniformed City of Denton police officer present at all regular meetings of the city council. This police officer shall act in the capacity of a security officer/sergeant-at-arms, and shall enforce the meeting rules and act upon the direction of the presiding officer. m. Any person making personal, impertinent, profane, or slanderous remarks, or who becomes boisterous while addressing the city council or who otherwise violates any of the above-mentioned rules while attending a city council meeting shall be removed from the roommeeting at the direction of the presiding officer, and the person shall be barred from further audience and participation before the city council during that session of the city council. If the presiding officer fails to act, any member of the city council may move to require the offending person's removal, and the affirmative vote of a majority of the city council shall require the presiding officer to act. The sergeant- at-arms, if so directed by the presiding officer or an affirmative vote of the majority of the city council, shall remove the offending person from the meeting. (4) Enforcement: The city manager, in the absence of a designated law enforcement officer, shall act as sergeant at arms for the council, and shall furnish whatever assistance is needed to enforce the rules of decorum herein established. (5) Seating arrangement: The city secretary, city manager and city attorney shall occupy the respective seats in the council chamber assigned to them by the mayor, but any two (2) or more members of the council may exchange seats. (6) Videoconferencing: City council members may elect to participate in a city council meeting by videoconference in the event the member is traveling or unable to attend a meeting due to illness. or declaration of disaster or emergency. a. Procedures for meeting by videoconference if a quorum will be in one physical location: The council meeting notice shall specify where the quorum of the governmental body will be physically present, and the intent to have a quorum present at that location. The video and audio feed of a remote councilmember or employee shall be broadcast live at the meeting. Each portion of the meeting held by videoconference call that is required to be open to the public shall be visible and audible to the public at the location where the quorum is present. The location at which the quorum is present, and each remote location from which a member of the governmental body participates, shall have two- way audio and video communication with each other location during the entire meeting. Each participant's face in the videoconference call, while speaking, shall be clearly visible and audible to each other participant and, during the open portion of the meeting, to the members of the public in attendance at the location where a quorum is present, and at any other location of the meeting that is open to the public. The audio and video signals perceptible by members of the public at each location of the meeting shall meet or exceed minimum standards established by Texas Department of Information Resources (DIR) rules. The audio and video signals perceptible by members of the public at the location where the quorum is present and, any other location open to the public, shall be of sufficient quality so that members of the public at each location can observe the demeanor and hear the voice of each participant in the open portion of the meeting. If a problem occurs that causes a meeting to no longer be 637 visible and audible to the public at the location where a quorum is present, the meeting shall be recessed until the problem is resolved, and if the problem is not resolved in six hours or less, the meeting shall be adjourned. The city shall make at least an audio recording of the meeting, and the recording shall be made available to the public. b. Procedures for meeting by videoconference if a quorum will not be in one physical location: The city shall make available to the public at least one suitable physical space in the city that is equipped with videoconference equipment that provides an audio and video display, as well as a camera and microphone, by which a member of the public can provide testimony or otherwise participate in the meeting. The member of the governmental body presiding over the meeting shall be present at this site, and the location must be open to the public. The meeting notice shall specify the physical space provided, and shall also specify the intent to have the presiding officer present at the location. Any member of the public present at this location shall be provided the opportunity to participate in the meeting by means of a videoconference call in the same manner as a person who is physically present at a meeting of the governmental body that is not conducted by videoconference. Each portion of the meeting held by videoconference call that is required to be open to the public shall be visible and audible to the public. The video and audio feed of a remote councilmember or employee shall be broadcast live at the meeting. The site provided in the city and each remote location from which a member participates, shall have two-way audio and video communication with each member who is participating by videoconference during the entire meeting. Each participant's face in the videoconference, while speaking, must be clearly visible and audible to each other participant and, during the open portion of the meeting, to the members of the public in attendance at the meeting location in the city, and at any other location of the meeting that may be open to the public. The audio and video signals perceptible by members of the public at each location of the meeting shall meet or exceed minimum standards established by DIR rules. The audio and video signals perceptible by members of the public at each location of the meeting that is open to the public, and each remote location, must be of sufficient quality so that members of the public at each location can observe the demeanor and hear the voice of each participant in the open portion of the meeting. If a problem occurs that causes the meeting to no longer be visible and audible to the public at the meeting site in the city, the meeting must be recessed until the problem is resolved, and if the problem is not resolved in six hours or less, the meeting shall be adjourned. The city shall make at least an audio recording of the meeting, and the recording shall be made available to the public. c. Council members wishing to participate in a meeting by videoconference shall provide notice to the city manager and the agenda committee not less than seven (7four (4) days prior to the meeting. (d) Types of meetings. (1) Regular meetings: The council shall meet on the first and third Tuesday of each month, at such time as may be set by the city council, unless the meeting is postponed or cancelled for valid reasons. All regular meetings of the council will be held in City Hall at 215 East McKinney Street, Denton, Texas or at such other location as the city council may, from time to time by proper posting under the Open Meetings Act and so long as the 638 locationmeeting is openavailable to the public, designate. In the event a regular meeting falls on a day the city observes a paid holiday, or the day after, no regular meeting shall be scheduled. Furthermore, no regular meetings shall be held the first two weeks in July, nor the last two weeks of November and December. The limitations in this provision do not apply to other types of meetings which may be called under Section 2-29(d). (2) Special meetings: Special meetings may be called by the mayor, the city manager, or by any three (3) members of the council. The city secretary shall post notice thereof as provided by the Texas Open Meetings Act. The mayor, city manager, or three (3) of the council members may designate a location for the special meeting other than City Hall, as long as the location is open to the public. (3) Workshop meetings: Workshop meetings (also referred to as "work sessions") may be held on the first and third Tuesday of each month at such time as may be set by the city council, or on such other day as the city council may designate and at such time as may be set by the city council, to discuss near to mid or long range issues and to answer city council questions concerning all agenda items. Workshops or work sessions may be called using the same procedure required for special meetings as provided for in subsection (2) above. The purpose of the workshop meeting is to discuss or explore matters of interest to the city, to meet with city boards, commissions, or committee members, city staff or officers of civic organizations, governing bodies or individuals specifically invited to the session by the mayor, council or city manager. These meetings are informational and normally no final action shall be taken unless the posted agenda indicates otherwise. However, the city council may, by consensus, provide general direction to staff with regard to matters of interest or concern, understanding such matters ultimately may require a formal vote of the council for implementation. (4) Luncheon meetings: Luncheon workshop or work session meetings may be held on the first Monday of each month at such time as may be set by the city council, or on such other day as the city council may designate. Such meetings may be called using the same procedure required for special meetings as provided for in subsection (2) above. The purpose of the luncheon meeting is to discuss or explore matters of interest to the city, to meet with city boards, commissions, or committee members, city staff or officers of civic organizations, governing bodies or individuals specifically invited to the session by the mayor, council or city manager. These meetings are informational and normally no final action shall be taken unless the posted agenda indicates otherwise. However, the city council may, by consensus, provide general direction to staff with regard to matters of interest or concern, understanding such matters ultimately may require a formal vote of the council for implementation. (5) Emergency meetings: In case of emergency or urgent public necessity, which shall be expressed in the notice of the meeting, an emergency meeting may be called by the mayor, the city manager or by three members of the council, and it shall be sufficient if the notice is posted two hoursone hour before the meeting is convened. Council members shall notify staff as soon as possible if they will participate in an emergency meeting via videoconference. (6) Closed meetings: The council may meet in a closed meeting pursuant to the requirements of the Texas Open Meetings Act. (7) Recessed meetings: Any meeting of the council may be recessed to a later time, provided that no recess shall be for a longer period than until the next business day. 639 (8) Notice of meetings: The agenda for all meetings, including council committee or subcommittee meetings, shall be posted by the city secretary on the city's official bulletin board and notice of all meetings shall be given by the city secretary pursuant to the requirements of the Texas Open Meetings Act. (e) Presiding officer and duties. (1) Presiding officer: The mayor, or in the absence of the mayor, the mayor pro-tem, shall preside as chairman, or presiding officer at all meetings of the council. In the absence of the mayor and the mayor pro-tem, the council shall elect a temporary presiding officer. (Charter, Section 2.03) (2) Call to order: The meetings of the council shall be called to order by the mayor, or in his or her absence, by the mayor pro-tem. In the absence of both the mayor and the mayor pro- tem, the meeting shall be called to order by the city secretary, and a temporary presiding officer shall be elected as provided above. (3) Preservation of order: The presiding officer shall preserve order and decorum, and confine members in debate to the question under discussion. The presiding officer shall call upon the sergeant-at-arms as necessary to enforce compliance with the rules contained herein. (4) Points of order: The presiding officer shall determine all points of order, subject to the right of any member to appeal to the council. If any appeal is taken, the question shall be, "Shall the decision of the presiding officer be sustained?" If a majority of the members present vote "No," the ruling of the chair is overruled; otherwise, it is sustained. (5) Questions to be stated: The presiding officer shall state all questions submitted for a vote and announce the result. A roll call vote shall be taken upon the request of any member, and upon the passage of all ordinances and resolutions. (6) Substitution for presiding officer: The presiding officer may call any other member to take his or her place in the chair, such substitution not to continue beyond adjournment. (7) Call for recess: The presiding officer may call for a recess of up to fifteen (15) minutes at regular intervals of approximately one hour at appropriate points in the meeting agenda, or if requested by any two (2) members. (f) Order of business. (1) Agenda: The order of business of each meeting shall be as contained in the agenda prepared by the city manager, which shall be reviewed and approved by an agenda committee composed of the mayor, the mayor pro-tem, and the city manager. When items are removed from the consent agenda and placed on the regular agenda by members of the council, the removed items shall be taken up in the order of removal right after the consent agenda. Placement of items on the agenda shall be governed by this ordinance; provided that if a council member has an "emergency" item that the council member believes should be placed on the next regular or special meeting agenda, the placement must be approved by two members of the agenda committee or at the direction of a majority of the council. Conduct of business at special meetings will likewise be governed by an agenda and these rules of procedure. (2) Pledge of Allegiance: Each agenda shall provide an item for the recital of the "Pledge of Allegiance" at the regularly scheduled city council meetings. This item shall begin with the recital of the pledge of allegiance for the United States flag and shall follow with a recital of the pledge of allegiance for the Texas state flag in accordance with V.T.C.A. Government Code § 3100.101. 640 (3) Presentations by members of council or city manager: The agenda shall provide a time when the mayor or any council member may bring before the council any business that he or she feels should be deliberated upon by the council at a future council meeting. These matters need not be specifically listed on the agenda, but discussion and formal action on such matters shall be deferred until a subsequent council meeting. Any member may suggest an item for discussion at a future work session. The city manager or city staff shall only respond preliminarily on this item at the work session. If the city council believes the item requires a more detailed review, the council will give the city manager or city staff direction to place the item on a future regular meeting agenda and advise staff as to the background materials to be desired at such meeting. The city council may receive from the city manager or city staff or a member of the city council reports about items of community interest including expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen, except that a discussion regarding a change in the status of a person's public office or public employment is not an honorary or salutary recognition for purposes of this subdivision; 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; and announcements involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda so long as authorized by the Texas Open Meetings Act. (4) Presentations from members of the public: a. Reports from members of the public: Reports from members of the public shall be received through either of two (2) methods: 1) prior registration or 2) open microphone. A total of up to seven (7) speakers are permitted to provide public comment and may include any combination of prior registration and open microphone speakers. Public comment is provided during regular meetings of the city council, which typically occur on the first and third Tuesday of each month. Presentations made in accordance with this section may be made via teleconference or videoconference technology as specified by the City on its website or meeting notice. 1) Prior registration. Any person who wishes to place a subject on the council agenda at regular council meetings shall advise the city manager's office of that fact and the specified subject matter which he or she desires to place on the agenda no later than 12:00 p.m. Thursday prior to the council meeting at which he or she wishes the designated subject to be considered. Such reports shall be heard at the beginning of the regular meeting of the city council pursuant to an agenda posting allowing a period of public comment. Each speaker providing a report shall speak for no longer than four (4) minutes. At the conclusion of each report, council may pose questions to the speaker concerning his or her report. Council may also engage in discussion concerning each report. If the city council believes that a speaker's report requires a more detailed review, the council will give the city manager or city staff direction to place the item on a future 641 work session or regular meeting agenda and advise staff as to the background materials to be desired at such meeting. 2) Open microphone. At the beginning of the regular meeting of the city council, persons who have not registered to speak as above described may make comments through the open microphone procedure. Such person(s) shall have filed a "Blue Card" requesting to speak during this period prior to the calling of this agenda item. Prior to the beginning of the regular meeting of the city council, persons who wish to participate remotely shall register via any manner specified by the City on its website or meeting notice. At the time the city council calls the Open Microphone comment period, a person may present himself or herself and make public comments regarding public business; provided however, such persons shall not be allowed to speak to items on the current agenda in light of other established procedures for taking such comments as specified in these rules. No person may fill outsubmit a "request to speak" form in order to speak or comment on another person's report, which is given at the same council meeting. An announcement may be made, prior to the time for reports from members of the public on the agenda, summarizing the main portions of the rules and the "code of conduct" as they may apply to members of the public speaking to the council. Any speaker providing a report shall speak for no longer than four (4) minutes on all items that he or she may bring before the council at each meeting. b. Work session or workshop items: As it concerns the workshop agenda, citizens or other interested persons may not participate in the session unless invited to do so by the mayor. If the mayor invites citizens to participate in a work session, their participation will cease at the point the mayor closes the session to public input to allow the council to give city staff direction as to needed information for the possible future meeting on the item. Citizens should be advised of the nature of the work session, but that their input on these items is premature until such item is placed upon a city council agenda for final action. The purpose of this procedure is to allow the citizens attending the regular meeting the opportunity of hearing the views of their fellow citizens in a more formal setting. Any citizen may supply the city council a written statement or report regarding the citizen's opinion on a matter being discussed in a work session. c. SpeakingCommenting on consent and regular agenda items: Any person who wishes to address the council regarding a non-public hearing regular or consent agenda item that is on the council's agenda, shall complete a "request to speak" form asking to speak regarding the item and shall return it to the city secretary. On consent items, the request to speak card shall be submitted prior to the citizen comment on consent agenda items at the beginning of the city council meeting. On regular agenda items, the request to speak card shall be submitted prior to the time the city council considers the item. The mayor will call upon the person who desires to speak. Comments may also be submitted via web form at the link provided on the agenda or by telephonic participation. For both consent and regular agenda items, web comments must be received at least one (1) hour prior to the posted time of the start meeting, and will provided to council prior to consideration of any item to which a comment pertains. 1) Consent agenda items: When consent agenda items are posted on an agenda, citizens or other interested persons will be allowed to make citizen comment immediately after the opening of the city council meeting and prior to workshop or 642 work session items on the agenda by filling out a "request to speak" card (aka a "blue card") asking to speak on any or all consent agenda items and returning the form to the city secretary. In the event a person is unable to attend the city council workshop or work session, he or she may contact the city secretary prior to the opening of the meeting and request that a consent agenda item be pulled from the consent agenda in order to allow comment as an individual item at the regular meeting of the city council. The city secretary shall make any such request known to the city council. Consent agenda items are generally routine nature, so comment at this time facilitates the regular council meeting where no citizen comment on consent agenda items will be permitted, unless the item is removed from the consent agenda by a member of the council to be considered as an individual item during the regular meeting. Speakers will be allowed three (3) minutes per speaker and may comment on any or all consent agenda items so long as any speaker's time does not exceed a total of three (3) minutes. 2) Regular agenda items: During the regular session of the city council meeting, any citizen or interested person may comment on an item posted on the agenda for final action. Any person who wishes to address the council regarding a non-public hearing item that is on the council's agenda, shall complete a "request to speak" form asking to speak regarding the item and shall return it to the city secretary before the council considers the item. This procedure applies to speakers desiring to speak to items for individual consideration on the agenda during the regular meeting of the city council. The mayor will call upon the person to speak. Speakers will be allowed three (3) minutes per speaker as to any particular agenda item being considered by the city council. a. Public hearings: 1) Any person who wishes to address the council at a public hearing is encouraged to complete a "request to speak" form and return it to the city secretary or online, or by calling the phone number provided in the meeting notice before the applicable hearing or at a time set by the City. The mayor will call upon the person to speak. Speakers will be allowed an initial four (4) minutes per speaker as to any public hearing item. However, if numerous speakers desire to comment on an item, council may limit speakers to three (3) minutes per speaker. Only those speakers who previously provided input on a specific item will be permitted to provide a final rebuttal of up to two (2) minutes per speaker. Applicants and their agents on public hearing items shall be allowed to speak for no longer than ten (10) minutes per speaker with a total of twenty (20) minutes for all speakers representing the applicant. Speakers will have the opportunity to make a single, final rebuttal after hearing the applicant’s rebuttal as set forth in Section 2-29(f)(4)(d)(2)(g). 2) To facilitate the public hearing process in zoning cases the following procedure will be used: a) The mayor reads the zoning case caption, and then opens the public hearing. b) The city manager introduces the city staff for presentation. c) City staff presents facts relevant to the matter. d) The applicant presents his or her case, with potential questions of the applicant from the city council. 643 e) The council receives input from the public, with potential questions of speakers from the city council. f) The applicant will be given an opportunity to make rebuttal comments. g) Members of the public who previously provided input on a specific item will have the opportunity to make a single, final rebuttal. h) The city staff and/or the applicant will answer any questions of the city council. i) Upon conclusion of these questions and answers, the mayor will continue or close the public hearing. 3) Groups or organizations: Any group or organization comprised of four (4) or more members present in the city council chambers who wishes to address the council at a public hearing or on a non-public hearing agenda item shall designate a representative to address the city council and shall limit their remarks to ten (10) minutes or less. The group or organization shall turn in a written designation to the city secretary, on cards prepared by the city secretary of a different color from cards submitted by individual speakers or via online form or email, prior to the commencement of the meeting identifying the representative who will address the city council on behalf of the group or organization. At the time the representative is recognized by the mayor to speak, the group or organization present in the meeting room will be asked to stand to be recognized prior to the receipt of comments by the representative. b. Discretionary time: At the discretion of the presiding officer or a majority of the city council, any speaker may be granted an extension of time to speak. c. Audio/Visual aids: Any citizen desiring to use audio/visual aids during presentations to council shall submit such presentation to the city secretary twenty-four (24) hours prior to the meeting where the presentation will occur. (5) Presentation of proclamations: The agenda may provide a time for the presentation of proclamations. The mayor or presiding officer may deliver and present proclamations upon the request of citizens. Proclamations may encompass any activity or theme except that proclamations with a theme religious or partisan in nature shall not be presented. Moreover, proclamations shall not be used for any commercial or advertising purpose. (g) Consideration of ordinances, resolutions, and motions. (1) Printed or typewritten form: All ordinances and resolutions shall be presented to the council in printed, typewritten or electronic form. The council may, by proper motion, amend any ordinance or resolution presented to it at the meeting at which it is presented or direct that the amended ordinance be placed on the next or any future council agenda for adoption. (2) City attorney to approve: All ordinances, resolutions, and contracts and amendments thereto, shall be approved as to form and legality by the city attorney, or he or she shall file a written opinion on the legality of such ordinance, resolution or contract prior to submission to the council. (Charter, Section 6.02) (3) Distribution of ordinances and resolutions: The city manager shall prepare copies of all proposed ordinances and resolutions for distribution to all members of the council at the meeting at which the ordinance or resolution is introduced, or at such earlier time as is expedient. 644 (4) Recording of votes: The yeas and nays shall be taken upon the passage of all ordinances and resolutions and the vote of each member shall be recorded in the minutes and within each respective ordinance and resolution. (Charter, Section 2.06 (b)) (5) Majority vote required: An affirmative vote of four (4) members is necessary to repeal any ordinance or take any official action in the name of the city except as otherwise provided in the Charter, by the laws of the State of Texas, or these rules. (Charter, Section 2.06) a. Tie-Vote: 1. City Council: Matters voted on by the City Council which end in a tie-vote due to absence(s) shall automatically be placed on each subsequent council meeting agenda until the full Council is present or the matter does not end in a tie vote. Matters voted on by the City Council when the full Council is present, which end in a tie-vote due to recusal(s) shall be considered a denial. 2. Boards, Commissions, and Committees: With the exception of the Planning and Zoning Commission, matters voted on by boards, commissions, and committees, which end in a tie-vote, regardless of the cause, shall be considered a denial. This provision applies to all task forces, ad hoc committees, or other limited duration groups established by the City Council. i. The Denton Development Code outlines the process for City Council review and decision of any recommendations made by the Planning and Zoning Commission. (6) Demand for roll call: Upon demand of any member, the roll shall be called for yeas and nays upon any question before the council, with the exception of those circumstances set forth in subsection (12), the previous question. It shall not be in order for members to explain their vote during the roll call. (7) Personal privilege: The right of a member to address the Council on a question of personal privilege shall be limited to cases in which his or her integrity, character, or motives are assailed, questioned, or impugned. (8) Dissents and protests: Any member shall have the right to express dissent from or protest against any ordinance or resolution of the council and have the reason therefor entered upon the minutes. Such dissent or protest may be filed in writing, and presented to the council not later than the next regular meeting following the date of passage of the ordinance or resolution objected to. (9) Voting required: No member shall be excused from voting except for lack of information and except on matters involving the consideration of his or her own official conduct, or where his or her personal interests are involved in accordance with V.T.C.A. Local Government Code Ch. 171 (Vernon 2014), and in these instances he or she shall abstain. Any member prohibited from voting by personal interest shall announce this at the commencement of consideration of the matter and shall not enter into discussion or debate on any such matter, shall leave the meeting room, and shall file an affidavit of recusal. The member having briefly stated the reason for his or her request, the excuse from voting shall be made without debate. (10) Order of precedence of motions: a. The following motions shall have priority in the order indicated: 1. Adjourn (when unqualified) and is not debatable and may not be amended; 2. Take a recess (when privileged); 3. Raise a question of privilege; 645 4. Lay on the table; 5. Previous question (⅔ vote required); 6. Limit or extend limits of debate (⅔ vote required); 7. Postpone to a certain time; 8. Commit or refer; 9. Amend; 10. Postpone indefinitely; 11. Main motion. b. The first two motions are not always privileged. To adjourn shall lose its privilege character and be a main motion if in any way qualified. To take a recess shall be privileged only when other business is pending. c. A motion to adjourn is not in order: 1. When repeated without intervening business or discussion; 2. When made as an interruption of a member while speaking; 3. While a vote is being taken. d. Only certain motions may be amended as provided in the most current edition of Robert's Rules of Order, revised. A motion to amend shall be undebatable when the question to be amended is undebatable. (11) Reconsideration: A motion to reconsider any action of the council can be made not later than the next succeeding official meeting of the council. Such a motion can only be made by a member who voted with the prevailing side. It can be seconded by any member. In order to comply with the Texas Open Meetings Act, any council member who wishes to make such a motion at a meeting succeeding the meeting where the action was taken shall notify the city manager to place the item for reconsideration on the council agenda. No question shall be twice reconsidered, except by unanimous consent of the council, except that action related to any contract may be reconsidered at any time before the final execution thereof. A matter which was not timely reconsidered in the manner provided by this section or was reconsidered but the action originally taken was not changed by the council cannot be reintroduced to the council or placed on a council meeting agenda for a period of six (6) months unless this rule is suspended as provided for in these rules of procedure. (12) The previous question: When the previous question is moved and seconded, it shall be put as follows: "Shall the main question be now put?". There shall then be no further amendment or debate; except that nothing herein shall allow the previous question to be called prior to a least one opportunity for each member of the council to speak on the question before the council. Any pending amendments shall be put in their order before the main question. If the motion for the previous question is lost, the main question remains before the council. An affirmative vote of ⅔ of the council shall be required to move the previous question. To demand the previous question is equivalent in effect to moving "That debate now cease, and the council shall immediately proceed to vote on the pending motion". In practice, this is done with the phrase "Call for the question", or simply saying "Question". (13) Withdrawal of motions: A motion may be withdrawn, or modified, by its movant without asking permission until the motion has been stated by the presiding officer. If the movant modifies his or her motion, the seconding council member may withdraw his or her second. After the question has been stated, the movant shall neither withdraw it nor 646 modify it without the consent of the council. The subject different from that under consideration shall be admitted under color of amendment. A motion to amend an amendment shall be in order, but one to amend an amendment to an amendment shall not be in order. (14) Appropriations of money: Before formal approval by the council of motions providing for appropriation of money, information must be presented to the council showing purpose of the appropriation. In addition, before finally acting on such an appropriation, the council shall obtain a report from the city manager as to the availability of funds and his or her recommendations as to the desirability of the appropriation. (15) Transfer of appropriations: At the request of the city manager, at any time during the fiscal year, the council may by resolution transfer an unencumbered balance of an appropriation made for the use of one department, division, or purpose; but no transfer shall be made of revenues or earnings of any non-tax supported public utility to any other purpose. (h) Creation of committees, boards and commissions. (1) Council committees: The council may, by resolution and as the need arises, authorize the appointment of council committees. Any committee so created shall cease to exist when abolished by resolution of the council. Council committees shall comply with the Texas Open Meetings Act. (2) Citizen boards, commissions, and committees: The council may create other citizen boards, commissions, and committees to assist in the conduct of the operation of the city government with such duties as the council may specify not inconsistent with the City Charter or Code. Creation of such boards, commissions, and committees and memberships and selection of members shall be by council resolution if not otherwise specified by the City Charter or Code. Any board, commission, or committee so created shall cease to exist when abolished by a resolution approved by the council. No committee so appointed shall have powers other than advisory to the council or to the city manager, except as otherwise specified by the Charter or Code. All citizen boards, commissions, and committees shall comply with the procedural requirements of the Texas Open Meetings Act. Any reference in this article to "citizen boards, commissions, and committees" includes citizen task forces and citizen ad hoc boards, commissions, and committees unless otherwise indicated herein. (3) Appointments: a. Individual city council members making nominations for members to citizen boards, commissions, and committees will consider interested persons on a citywide basis. b. The city council will make an effort to be inclusive of all segments of the community in the board, commission, and committee appointment process. City council members will consider ethnicity, gender, socio-economic levels, and other factors to ensure a diverse representation of Denton citizens. c. The city council will take into consideration an individual's qualifications, willingness to serve, and application information in selecting nominations for membership to each board, commission, and committee. d. In an effort to ensure maximum citizen participation, city council members will continue the general practice of nominating new citizens to replace board members who have served three (3) consecutive terms on the same board per the provisions of Denton Code of Ordinances, section 2-65. This provision does not apply to citizen task forces and citizen ad hoc committees. 647 e. Each city council member will be responsible for making nominations for board, committee, and commission places assigned to him or her, which shall correspond to the city council member's place. Individual city council members will make nominations to the full city council for the governing body's approval or disapproval. (4) Rules of procedure: a. All board, commission, and committee members, including citizen board, commission, and committee members, shall comply with the provisions of article II of chapter 2 of the Code of Ordinances. All board, commission and committee members, including citizen board, commission, and committee members, shall be provided a copy of these rules of procedure and a copy of the City of Denton Handbook for Boards, Commissions and Committees, which shall govern operational procedures of all boards, commissions and committees, including citizen boards, commissions, and committees. All boards, commissions, and committees, including citizen boards, commissions and committees, shall comply with these rules as to the preparation of minutes of meetings, and such minutes shall be prepared in accordance with the policies and procedures of the city secretary. b. All citizen board, commission, and committee members shall comply with the procedural requirements of the V.T.C.A., Texas Government Code Chapter 551, also known as the "Texas Open Meetings Act" as they appear nowin statute or as they may be amended in the futureor otherwise modified. Notice of all meetings shall be posted in compliance with the Texas Open Meetings Act and minutes and records will be maintained in accordance with requirements of the city secretary's office. Each citizen board, commission, and committee member shall be provided a copy of the Texas Open Meetings Act. Penalty provisions of the Texas Open Meetings Act shall only apply to citizen boards, commissions, and committees with rule making or quasi-judicial power, as set forth in the Texas Open Meetings Act and as interpreted by Texas Courts. City Council and city boards, commissions and committees may operate via videoconference to the extent permitted by law and as directed by council. c. Unless otherwise provided by law, the City Council and each board, commission, or committee, shall adopt a regular meeting schedule by no later than the body’s first meeting of the calendar year. All regular meeting schedules shall be sent to the City Secretary’s Office for official record keeping purposes upon adoption. Regular meeting schedules should include all planned meetings the body intends to have during the calendar year. (i) Votes required. Questions on which the voting requirement is varied by the Charter, State Statutes and these rules are listed below: (1) Charter and state statutory requirements: a. Charter amendment—Five (5) votes: Ordinances submitting proposed Charter amendments must be adopted by a two-thirds (⅔) vote of the council. (TEX. CONST. art. XI, § 3 and V.T.C.A. Local Government Code Ch. 9 (Vernon 2014.)) For a seven- member council, this means five (5) members must vote affirmatively. b. Levying taxes—Five (5) votes: Ordinances providing for the assessment and collection of certain taxes require the approval of two-thirds (⅔) of the members of the council (V.T.C.A. Tax Code § 302.101 (Vernon 2014)). 648 c. Changing paving assessment plans—Five (5) votes: Changes in plans for paving assessment require a two-thirds (⅔) vote of the council (V.T.C.A. Transportation Code § 313.053(e) (Vernon 2014)). d. Changes in zoning ordinance or zoning classifications: In cases of a written protest of a change in a zoning regulation or zoning classification by the owners of twenty (20) percent or more either of the area of the lots included in such proposed change, or of the lots immediately adjoining the same and extending two hundred (200) feet therefrom, such amendment shall not become effective except by the favorable vote of three-fourths (¾) of all members of the city council; further, three-fourths (¾) of all the members of the city council is required to override the decision of the planning and zoning commission that a zoning change be denied (V.T.C.A. Local Government Code § 211.066 (Vernon 2014)) and section 35.3.4.C.(4) Denton City Code (Development Code)). ("All" members of the city council is construed to mean all who are qualified to vote on a matter, and any legal disqualification of a member could change the requisite number of votes required for passage. City of Alamo Heights v. Gerety et al., 264 S.W. 2d 778 (Ct. App. — San Antonio (1954)). e. Amendment of tax abatement policy: The guidelines and criteria adopted as the city's tax abatement policy may be amended or repealed by a vote of three-fourths (¾) of all members of the city council (V.T.C.A. Tax Code § 312.002(c) (Vernon 2014)). (j) Severability clause. If any section, subsection, paragraph, sentence, clause, phrase or word in this section, or application thereof to any person or circumstances, is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. 649 CITY COUNCIL RULES OF PROCEDURE Subpart A – Code of Ordinances ARTICLE II. - ADMINISTRATIVE ORGANIZATION Sec. 2-29. - City council rules of procedure. (a) Authority. (1) Charter: Pursuant to the provisions of Section 2.07 of the Charter of the City of Denton, Texas, the City Council hereby enacts these rules of procedure for all meetings of the City Council of the City of Denton, Texas. During any meeting, a reasonable opportunity shall be given for citizens to be heard under these rules. These Rules of Procedure are enacted as guidelines to be followed by all persons in the Council Chamber including the city administrative staff, news media, and visitors. (b) General rules. (1) Meetings to be public: All official meetings of the Council and Council committees and subcommittees, except closed meetings permitted by the provisions of the Texas Open Meetings Act, V.T.C.A. Government Code Ch. 551, (Vernon 2014), as amended, shall be open available to the public. (2) Quorum: Four (4) members of the council shall constitute a quorum for the transaction of business. (Charter, Section 2.06) (3) Compelling attendance: No member shall be excused from attendance at a council meeting except for good and valid reasons. It will be the duty of the council member to notify the city secretary prior to the meeting at which he or she is going to be absent. The city secretary will record each council member as being present or absent as a part of the minutes prepared for each council meeting. (4) Misconduct: The council may punish its own members for misconduct consistent with any ethics policy adopted by the council. (5) Minutes of meetings: An account of all proceedings of the council shall be kept by the city secretary and shall be entered in a book constituting the official record of the council. A certified agenda shall be prepared and shall be approved by the mayor for all closed meetings for which a certified agenda is required to be kept in accordance with the Texas Open Meetings Act. (6) Questions to contain one subject: All questions submitted for a vote shall contain one subject, except the city council may approve all items which are on the consent agenda in one motion, regardless of how many subjects are contained in the consent agenda, so long as all items have been properly posted in accordance with the Texas Open Meetings Act and have not been removed from the consent agenda by a council member. If two or more points are involved, any member may require a division, if the question reasonably admits of a division. (7) Right to floor: Any member desiring to speak shall be recognized by the chairperson, and shall confine his or her remarks to the subject under consideration or to be considered. No member shall be allowed to speak more than once on any one subject until every member wishing to speak shall have spoken. 650 City Council Rules of Procedure Page | 2 (8) City manager: The city manager, or acting city manager, shall attend all meetings of the council unless excused. He or she may make recommendations to the council and shall have the right to take part in all discussions of the council, but shall have no vote. (Charter, Section 5.03 (d)) (9) City attorney: The city attorney, or acting city attorney, shall be available upon request for all meetings of the council unless excused and shall, upon request, give an opinion, either written or oral, on questions of law. The city attorney shall act as the council's parliamentarian. (10) City secretary: The city secretary, or acting city secretary, shall attend all meetings of the council unless excused, and shall keep the official minutes and perform such other duties as may be requested by the council. (11) Officers and employees: Any officer or employee of the city, when requested by the city manager, shall attend any meeting of the council. If requested to do so by the city manager, such employee may present information relating to matters before the council. (12) Rules of order: These rules govern the proceedings of the council in all cases, except that where these rules are silent, the most recent Edition of Robert's Rules of Order shall govern. Attendance under this subsection may be in-person or via videoconference or teleconference. (13) Suspension of rules: Any provision of these rules not governed by the City Charter or other City Code provisions may be temporarily suspended by the affirmative vote of four (4) members of the council. The vote on any such suspension shall be taken by yeas or nays and entered into the minutes of the council. (14) Amendment of rules: These rules may be amended, or new rules adopted by the affirmative vote of four members of the council, provided that the proposed amendments or new rules shall have been introduced before the city council at a prior council meeting.. (c) Code of conduct. (1) Council members: a. During council meetings, council members shall preserve order and decorum and shall neither by conversation or otherwise delay or interrupt the proceedings nor refuse to observe the rules of the council. b. A council member, once recognized, shall not be interrupted while speaking unless called to order by the mayor or presiding officer, unless a point of order is raised by another member or the parliamentarian, or unless the speaker chooses to yield to questions from another member. If a council member is called to order while he or she is speaking, he or she shall cease speaking immediately until the question of order is determined. If a member fails to cease speaking when called to order, the presiding officer may mute the member through use of videoconferencing or teleconferencing technology. If ruled to be in order, he or she shall be permitted to proceed. If ruled not to be in order, he or she shall remain silent or shall alter his or her remarks so as to comply with rules of the council. (2) Administrative staff: a. Members of the administrative staff and employees of the city shall observe the same rules of procedure and decorum applicable to members of the council, and shall have no voice unless and until recognized by the chair. 651 City Council Rules of Procedure Page | 3 b. While the presiding officer shall have the authority to preserve decorum in meetings as far as staff members and city employees are concerned, the city manager also shall be responsible for the orderly conduct and decorum of all city employees under his or her direction and control. c. The city manager shall take such disciplinary action as may be necessary to insure that such decorum is preserved at all times by city employees in council meetings. d. All remarks and questions addressed to the council shall be addressed to the council as a whole and not to any individual member thereof. e. No staff member, other than a staff member having the floor, shall enter into any discussion either directly or indirectly without permission of the presiding officer. (3) Citizens: a. Citizens and other visitors are welcome to viewattend all public meetings of the city council, and will be admitted to the city council chamber or other room in which the city council is meeting, up to the fire safety capacity of the roomparticipate via any method the City makes available other than personal appearance, including but not limited to telephonic participation and email/internet submission. b. All meeting attendees shall conduct themselves with propriety and decorum. Conversations between or among audience members should be conducted outside the meeting room. Attendees will refrain from excessively loud private conversations while the council is in session. c. Unauthorized remarks from the audience, stamping of the feet, applauding, whistles, yells, and similar demonstrations shall not be permitted. d. Placards, banners, signs, pamphlets, flyers, or political materials of any type will not be permitted in the city council chamber or in any other room in which the city council is meeting. Exhibits, displays, and visual aids used in connection with presentations to the city council, however, are permitted. e. Audience members may not place their feet on any chairs in the city council chamber or other room in which the city council is meeting. f. Only city council members and city staff may step onto the dais. g. All people wishing to address the city council shall first be recognized by the presiding officer andbe able to do so remotely in a manner provided by the City, and shall limit their remarks to the matter under discussion. h. All remarks and questions addressed to the city council shall be addressed to the city council as a whole and not to any individual members. i. Any person addressing the city council in the city council chamber shall do so by from the lectern unless physically unable to do soelectronic participation means as provided by the City. People addressing the city council shall not be permitted to approach the dais. If they wish to hand out papers or other materials to the city council, they should express that desire to the presiding officer, and the city manager shall direct a staff member to hand out the materialssubmit those items through a dedicated email account at least four hours prior to the start of the meeting. j. When the time has expired for a presentation to the city council, the presiding officer shall direct the person speaking to cease. A second request from the presiding officer to cease speaking shall be cause of the removal of the speaker if that person continues to speak. 652 City Council Rules of Procedure Page | 4 k. Equipment, apparatus, or paraphernalia such as camera tripods, easels, or wheelchairs shall not obstruct, block, or otherwise be located in the doorway, entranceway, or walkways of the city council chambers or of any other room in which the city council may choose to meet. Representatives of the electronic media may set up cameras and other equipment only in the back of the room. It is permissible for television camera operators to film for short periods of time (several minutes) from the entranceway to the city council chambers. Any radio station, which broadcasts the regular city council meetings live, may hook their equipment up at the front of the room as long as it remains out of sight and out of the way. l. There will be a uniformed City of Denton police officer present atin or near all regular meetings of the city council. This police officer shall act in the capacity of a security officer/sergeant-at-arms, and shall enforce the meeting rules and act upon the direction of the presiding officer. m. Any person making personal, impertinent, profane, or slanderous remarks, or who becomes boisterous while addressing the city council or who otherwise violates any of the above-mentioned rules while attending a city council meeting shall be removed from the room meeting at the direction of the presiding officer, and the person shall be barred from further audience and participation before the city council during that session of the city council. If the presiding officer fails to act, any member of the city council may move to require the offending person's removal, and the affirmative vote of a majority of the city council shall require the presiding officer to act. The sergeant-at-armsCity staff, if so directed by the presiding officer or an affirmative vote of the majority of the city council, shall remove the offending person from the meeting. (4) Enforcement: The city manager, in the absence of a designated law enforcement officer, shall act as sergeant at arms for the council, and shall furnish whatever assistance is needed to enforce the rules of decorum herein established. (5) Seating arrangement: For in-person meetings, Tthe city secretary, city manager and city attorney shall occupy the respective seats in the council chamber assigned to them by the mayor, but any two (2) or more members of the council may exchange seats. (6) Videoconferencing: City council members may elect to participate in a city council meeting by videoconference in the event the member is traveling or unable to attend a meeting due to illness or declaration of disaster or emergency. a. Procedures for meeting by videoconference if a quorum will be in one physical location: The council meeting notice shall specify where the quorum of the governmental body will be physically present, and the intent to have a quorum present at that location. The video and audio feed of a remote councilmember or employee shall be broadcast live at the meeting. Each portion of the meeting held by videoconference call that is required to be open to the public shall be visible and audible to the public at the location where the quorum is present. The location at which the quorum is present, and each remote location from which a member of the governmental body participates, shall have two-way audio and video communication with each other location during the entire meeting. Each participant's face in the videoconference call, while speaking, shall be clearly visible and audible to each other participant and, during the open portion of the meeting, to the members of the public in attendance at 653 City Council Rules of Procedure Page | 5 the location where a quorum is present, and at any other location of the meeting that is open to the public. The audio and video signals perceptible by members of the public at each location of the meeting shall meet or exceed minimum standards established by Texas Department of Information Resources (DIR) rules. The audio and video signals perceptible by members of the public at the location where the quorum is present and, any other location open to the public, shall be of sufficient quality so that members of the public at each location can observe the demeanor and hear the voice of each participant in the open portion of the meeting. If a problem occurs that causes a meeting to no longer be visible and audible to the public at the location where a quorum is present, the meeting shall be recessed until the problem is resolved, and if the problem is not resolved in six hours or less, the meeting shall be adjourned. The city shall make at least an audio recording of the meeting, and the recording shall be made available to the public. b. Procedures for meeting by videoconference if a quorum will not be in one physical location: The city shall make available to the public at least one suitable physical space in the city that is equipped with videoconference equipment that provides an audio and video display, as well as a camera and microphone, by which a member of the public can provide testimony or otherwise participate in the meeting. The member of the governmental body presiding over the meeting shall be present at this site, and the location must be open to the public. The meeting notice shall specify the physical space provided, and shall also specify the intent to have the presiding officer present at the location. Any member of the public present at this location shall be provided the opportunity to participate in the meeting by means of a videoconference call in the same manner as a person who is physically present at a meeting of the governmental body that is not conducted by videoconference. Each portion of the meeting held by videoconference call that is required to be open to the public shall be visible and audible to the public. The video and audio feed of a remote councilmember or employee shall be broadcast live at the meeting as the technology employed permits. The site provided in the city and each remote location from which a member participates, shall have two-way audio and video communication with each member who is participating by videoconference during the entire meeting. Each participant's face in the videoconference, while speaking, must be clearly visible and audible to each other participant and, during the open portion of the meeting, to the members of the public in attendance at the meeting location in the city, and at any other location of the meeting that may be open to the public. The audio and video signals perceptible by members of the public at each location of the meeting shall meet or exceed minimum standards established by DIR rules. The audio and video signals perceptible by members of the public at each location of the meeting that is open to the public, and each remote location, must be of sufficient quality so that members of the public at each location can observe the demeanor and hear the voice of each participant in the open portion of the meeting. If a problem occurs that causes the meeting to no longer be visible and audible to the public at the meeting site in the city, the meeting must be recessed until the problem is resolved, and if the problem is not resolved in six hours or less, the meeting shall be adjourned. 654 City Council Rules of Procedure Page | 6 The city shall make at least an audio recording of the meeting, and the recording shall be made available to the public. c. Council members wishing to participate in a meeting by videoconference shall provide notice to the city manager and the agenda committee not less than seven four (47) days prior to the meeting. (d) Types of meetings. (1) Regular meetings: The council shall meet on the first and third Tuesday of each month, at such time as may be set by the city council, unless the meeting is postponed or cancelled for valid reasons. All regular meetings of the council will be held in City Hall at 215 East McKinney Street, Denton, Texas or at such other location as the city council may, from time to time by proper posting under the Open Meetings Act and so long as the location meeting is open available to the public, designate. In the event a regular meeting falls on a day the city observes a paid holiday, or the day after, no regular meeting shall be scheduled. Furthermore, no regular meetings shall be held the first two weeks in July, nor the last two weeks of November and December. The limitations in this provision do not apply to other types of meetings which may be called under Section 2-29(d). (2) Special meetings: Special meetings may be called by the mayor, the city manager, or by any three (3) members of the council. The city secretary shall post notice thereof as provided by the Texas Open Meetings Act. The mayor, city manager, or three (3) of the council members may designate a location for the special meeting other than City Hall, as long as the location is open to the public. (3) Workshop meetings: Workshop meetings (also referred to as "work sessions") may be held on the first and third Tuesday of each month at such time as may be set by the city council, or on such other day as the city council may designate and at such time as may be set by the city council, to discuss near to mid or long range issues and to answer city council questions concerning all agenda items. Workshops or work sessions may be called using the same procedure required for special meetings as provided for in subsection (2) above. The purpose of the workshop meeting is to discuss or explore matters of interest to the city, to meet with city boards, commissions, or committee members, city staff or officers of civic organizations, governing bodies or individuals specifically invited to the session by the mayor, council or city manager. These meetings are informational and normally no final action shall be taken unless the posted agenda indicates otherwise. However, the city council may, by consensus, provide general direction to staff with regard to matters of interest or concern, understanding such matters ultimately may require a formal vote of the council for implementation. (4) Luncheon meetings: Luncheon workshop or work session meetings may be held on the first Monday of each month at such time as may be set by the city council, or on such other day as the city council may designate. Such meetings may be called using the same procedure required for special meetings as provided for in subsection (2) above. The purpose of the luncheon meeting is to discuss or explore matters of interest to the city, to meet with city boards, commissions, or committee members, city staff or officers of civic organizations, governing bodies or individuals specifically invited to the session by the mayor, council or city manager. These meetings are informational and normally no final action shall be taken unless the posted agenda indicates otherwise. However, the city council may, by consensus, provide general direction to staff with regard to matters of 655 City Council Rules of Procedure Page | 7 interest or concern, understanding such matters ultimately may require a formal vote of the council for implementation. (5) Emergency meetings: In case of emergency or urgent public necessity, which shall be expressed in the notice of the meeting, an emergency meeting may be called by the mayor, the city manager or by three members of the council, and it shall be sufficient if the notice is posted two one hours before the meeting is convened. Council members shall notify staff as soon as possible if they will participate in an emergency meeting via videoconference. (6) Closed meetings: The council may meet in a closed meeting pursuant to the requirements of the Texas Open Meetings Act. (7) Recessed meetings: Any meeting of the council may be recessed to a later time, provided that no recess shall be for a longer period than until the next business day. (8) Notice of meetings: The agenda for all meetings, including council committee or subcommittee meetings, shall be posted by the city secretary on the city's official bulletin board and notice of all meetings shall be given posted by the city secretary pursuant to the requirements of the Texas Open Meetings Act. (e) Presiding officer and duties. (1) Presiding officer: The mayor, or in the absence of the mayor, the mayor pro-tem, shall preside as chairman, or presiding officer at all meetings of the council. In the absence of the mayor and the mayor pro-tem, the council shall elect a temporary presiding officer. (Charter, Section 2.03) (2) Call to order: The meetings of the council shall be called to order by the mayor, or in his or her absence, by the mayor pro-tem. In the absence of both the mayor and the mayor pro-tem, the meeting shall be called to order by the city secretary, and a temporary presiding officer shall be elected as provided above. (3) Preservation of order: The presiding officer shall preserve order and decorum, and confine members in debate to the question under discussion. The presiding officer shall call upon the sergeant-at-arms as necessary to enforce compliance with the rules contained herein. (4) Points of order: The presiding officer shall determine all points of order, subject to the right of any member to appeal to the council. If any appeal is taken, the question shall be, "Shall the decision of the presiding officer be sustained?" If a majority of the members present vote "No," the ruling of the chair is overruled; otherwise, it is sustained. (5) Questions to be stated: The presiding officer shall state all questions submitted for a vote and announce the result. A roll call vote shall be taken upon the request of any member, and upon the passage of all ordinances and resolutions. (6) Substitution for presiding officer: The presiding officer may call any other member to take his or her place in the chair, such substitution not to continue beyond adjournment. (7) Call for recess: The presiding officer may call for a recess of up to fifteen (15) minutes at regular intervals of approximately one hour at appropriate points in the meeting agenda, or if requested by any two (2) members. (f) Order of business. (1) Agenda: The order of business of each meeting shall be as contained in the agenda prepared by the city manager, which shall be reviewed and approved by an agenda committee composed of the mayor, the mayor pro-tem, and the city manager. When items are removed from the consent agenda and placed on the regular agenda by members of 656 City Council Rules of Procedure Page | 8 the council, the removed items shall be taken up in the order of removal right after the consent agenda. Placement of items on the agenda shall be governed by this ordinance; provided that if a council member has an "emergency" item that the council member believes should be placed on the next regular or special meeting agenda, the placement must be approved by two members of the agenda committee or at the direction of a majority of the council. Conduct of business at special meetings will likewise be governed by an agenda and these rules of procedure. (2) Pledge of Allegiance: Each agenda shall provide an item for the recital of the "Pledge of Allegiance" at the regularly scheduled city council meetings. This item shall begin with the recital of the pledge of allegiance for the United States flag and shall follow with a recital of the pledge of allegiance for the Texas state flag in accordance with V.T.C.A. Government Code § 3100.101. (3) Presentations by members of council or city manager: The agenda shall provide a time when the mayor or any council member may bring before the council any business that he or she feels should be deliberated upon by the council at a future council meeting. These matters need not be specifically listed on the agenda, but discussion and formal action on such matters shall be deferred until a subsequent council meeting. Any member may suggest an item for discussion at a future work session. The city manager or city staff shall only respond preliminarily on this item at the work session. If the city council believes the item requires a more detailed review, the council will give the city manager or city staff direction to place the item on a future regular meeting agenda and advise staff as to the background materials to be desired at such meeting. The city council may receive from the city manager or city staff or a member of the city council reports about items of community interest including expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen, except that a discussion regarding a change in the status of a person's public office or public employment is not an honorary or salutary recognition for purposes of this subdivision; 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; and announcements involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda so long as authorized by the Texas Open Meetings Act. (4) Presentations from members of the public: a. Reports from members of the public: Reports from members of the public shall be received through either of two (2) methods: 1) prior registration or 2) open microphone. A total of up to seven (7) speakers are permitted to provide public comment and may include any combination of prior registration and open microphone speakers. Public comment is provided during regular meetings of the city council, which typically occur on the first and third Tuesday of each month. Presentations made in accordance with this section will be made via teleconference or videoconference technology as specified by the City on its website or meeting notice. 657 City Council Rules of Procedure Page | 9 1) Prior registration. Any person who wishes to place a subject on the council agenda at regular council meetings shall advise the city manager's office of that fact and the specified subject matter which he or she desires to place on the agenda no later than 12:00 p.m. Thursday prior to the council meeting at which he or she wishes the designated subject to be considered. Such reports shall be heard at the beginning of the regular meeting of the city council pursuant to an agenda posting allowing a period of public comment. Each speaker providing a report shall speak for no longer than four (4) minutes. At the conclusion of each report, council may pose questions to the speaker concerning his or her report. Council may also engage in discussion concerning each report. If the city council believes that a speaker's report requires a more detailed review, the council will give the city manager or city staff direction to place the item on a future work session or regular meeting agenda and advise staff as to the background materials to be desired at such meeting. 2) Open microphone. Prior to At the beginning of the regular meeting of the city council, persons who have not registered to speak as above described may make comments through the open microphone procedure. Such person(s) shall have filed a "Blue Card" requesting to speak during this period prior to the calling of this agenda item. At the time the city council calls the Open Microphone comment period, a person may present himself or herself and make public comments regarding public businesshave registered via email or telephone as specified by the City on its website or meeting notice; provided however, such persons shall not be allowed to speak to items on the current agenda in light of other established procedures for taking such comments as specified in these rules. No person may fill outsubmit a "request to speak" form in order to speak or comment on another person's report, which is given at the same council meeting. An announcement may be made, prior to the time for reports from members of the public on the agenda, summarizing the main portions of the rules and the "code of conduct" as they may apply to members of the public speaking to the council. Any speaker providing a report shall speak for no longer than four (4) minutes on all items that he or she may bring before the council at each meeting. b. Work session or workshop items: As it concerns the workshop agenda, citizens or other interested persons may not participate in the session unless invited to do so by the mayor. If the mayor invites citizens to participate in a work session, their participation will cease at the point the mayor closes the session to public input to allow the council to give city staff direction as to needed information for the possible future meeting on the item. Citizens should be advised of the nature of the work session, but that their input on these items is premature until such item is placed upon a city council agenda for final action. The purpose of this procedure is to allow the citizens attending the regular meeting the opportunity of hearing the views of their fellow citizens in a more formal setting. Any citizen may supply the city council a written statement or report regarding the citizen's opinion on a matter being discussed in a work session. 658 City Council Rules of Procedure Page | 10 1) c. Speaking Commenting on consent and regular agenda items: Any person who wishes to address the council regarding a non-public hearing regular or consent agenda item may do so by submitting a web form found at the link provided on the agenda or by telephonic participationthat is on the council's agenda, shall complete a "request to speak" form asking to speak regarding the item and shall return it to the city secretary. On For both consent and regular agenda items, comments must be received at least one (1) hour prior to the posted start time of the meeting. Comments will be provided to the Council prior to consideration of any item to which a comment pertains. This procedure will be the only method for the public to provide comment, and no other avenue of public comment under this section will be recognized during the course of the meeting. 3) the request to speak card shall be submitted prior to the citizen comment on consent agenda items at the beginning of the city council meeting. On regular agenda items, the request to speak card shall be submitted prior to the time the city council considers the item. The mayor will call upon the person who desires to speak. 4) Consent agenda items: When consent agenda items are posted on an agenda, citizens or other interested persons will be allowed to make citizen comment immediately after the opening of the city council meeting and prior to workshop or work session items on the agenda by filling out a "request to speak" card (aka a "blue card") asking to speak on any or all consent agenda items and returning the form to the city secretary. In the event a person is unable to attend the city council workshop or work session, he or she may contact the city secretary prior to the opening of the meeting and request that a consent agenda item be pulled from the consent agenda in order to allow comment as an individual item at the regular meeting of the city council. The city secretary shall make any such request known to the city council. Consent agenda items are generally routine nature, so comment at this time facilitates the regular council meeting where no citizen comment on consent agenda items will be permitted, unless the item is removed from the consent agenda by a member of the council to be considered as an individual item during the regular meeting. Speakers will be allowed three (3) minutes per speaker and may comment on any or all consent agenda items so long as any speaker's time does not exceed a total of three (3) minutes. 5) Regular agenda items: During the regular session of the city council meeting, any citizen or interested person may comment on an item posted on the agenda for final action. Any person who wishes to address the council regarding a non-public hearing item that is on the council's agenda, shall complete a "request to speak" form asking to speak regarding the item and shall return it to the city secretary before the council considers the item. This procedure applies to speakers desiring to speak to items for individual consideration on the agenda during the regular meeting of the city council. The mayor will call upon the person to speak. Speakers will be allowed three (3) minutes per speaker as to any particular agenda item being considered by the city council. f.c. Public hearings: 1) Any person who wishes to address the council at a public hearing is encouraged to complete a "request to speak" form online or by calling the phone number 659 City Council Rules of Procedure Page | 11 provided in the meeting noticeand return it to the city secretary before the applicable hearing. The mayor will call upon the person to speak. Speakers will be allowed an initial four (4) minutes per speaker as to any public hearing item. However, if numerous speakers desire to comment on an item, council may limit speakers to three (3) minutes per speaker. Only those speakers who previously provided input on a specific item will be permitted to provide a final rebuttal of up to two (2) minutes per speaker. Applicants and their agents on public hearing items shall be allowed to speak for no longer than ten (10) minutes per speaker with a total of twenty (20) minutes for all speakers representing the applicant. Speakers will have the opportunity to make a single, final rebuttal after hearing the applicant’s rebuttal as set forth in Section 2-29(f)(4)(d)(2)(g). 2) To facilitate the public hearing process in zoning cases the following procedure will be used: a) The mayor reads the zoning case caption, and then opens the public hearing. b) The city manager introduces the city staff for presentation. c) City staff presents facts relevant to the matter. d) The applicant presents his or her case, with potential questions of the applicant from the city council. e) The council receives input from the public, with potential questions of speakers from the city council. f) The applicant will be given an opportunity to make rebuttal comments. g) Members of the public who previously provided input on a specific item will have the opportunity to make a single, final rebuttal. h) The city staff and/or the applicant will answer any questions of the city council. i) Upon conclusion of these questions and answers, the mayor will continue or close the public hearing. 3) Groups or organizations: Any group or organization comprised of four (4) or more members who have communicated via the online form or phone number that they present in the city council chambers who wishes to address the council at a public hearing or on a non-public hearing agenda item shall designate a representative to address the city council and shall limit their remarks to ten (10) minutes or less. The group or organization shall turn inprovide a written designation to the city secretary, on cards prepared by the city secretary of a different color from cards submitted by individual speakersvia the online form or email to the city secretary, prior to the commencement of the meeting identifying the representative who will address the city council on behalf of the group or organization. At the time the representative is recognized by the mayor to speak, the group or organization will be asked to stand to be recognized prior to the receipt of comments by the representative. g.d.Discretionary time: At the discretion of the presiding officer or a majority of the city council, any speaker may be granted an extension of time to speak. h.e. Audio/Visual aids: Any citizen desiring to use audio/visual aids during presentations to council shall submit such presentation to the city secretary twenty-four (24) hours prior to the meeting where the presentation will occur. 660 City Council Rules of Procedure Page | 12 (5) Presentation of proclamations: The agenda may provide a time for the presentation of proclamations. The mayor or presiding officer may deliver provide and present proclamations upon the request of citizens. Proclamations may encompass any activity or theme except that proclamations with a theme religious or partisan in nature shall not be presented. Moreover, proclamations shall not be used for any commercial or advertising purpose. (g) Consideration of ordinances, resolutions, and motions. (1) Printed or typewritten form: All ordinances and resolutions shall be presented to the council in printed, typewritten or electronic form. The council may, by proper motion, amend any ordinance or resolution presented to it at the meeting at which it is presented or direct that the amended ordinance be placed on the next or any future council agenda for adoption. (2) City attorney to approve: All ordinances, resolutions, and contracts and amendments thereto, shall be approved as to form and legality by the city attorney, or he or she shall file a written opinion on the legality of such ordinance, resolution or contract prior to submission to the council. (Charter, Section 6.02) (3) Distribution of ordinances and resolutions: The city manager shall prepare copies of all proposed ordinances and resolutions for distribution to all members of the council at the meeting at which the ordinance or resolution is introduced, or at such earlier time as is expedient. (4) Recording of votes: The yeas and nays shall be taken upon the passage of all ordinances and resolutions and the vote of each member shall be recorded in the minutes and within each respective ordinance and resolution. (Charter, Section 2.06 (b)) (5) Majority vote required: An affirmative vote of four (4) members is necessary to repeal any ordinance or take any official action in the name of the city except as otherwise provided in the Charter, by the laws of the State of Texas, or these rules. (Charter, Section 2.06) a. Tie-Vote: 1. City Council: Matters voted on by the City Council which end in a tie-vote due to absence(s) shall automatically be placed on each subsequent council meeting agenda until the full Council is present or the matter does not end in a tie vote. Matters voted on by the City Council when the full Council is present, which end in a tie-vote due to recusal(s) shall be considered a denial. 2. Boards, Commissions, and Committees: With the exception of the Planning and Zoning Commission, matters voted on by boards, commissions, and committees, which end in a tie-vote, regardless of the cause, shall be considered a denial. This provision applies to all task forces, ad hoc committees, or other limited duration groups established by the City Council. i. The Denton Development Code outlines the process for City Council review and decision of any recommendations made by the Planning and Zoning Commission. (6) Demand for roll call: Upon demand of any member, the roll shall be called for yeas and nays upon any question before the council, with the exception of those circumstances set forth in subsection (12), the previous question. It shall not be in order for members to explain their vote during the roll call. 661 City Council Rules of Procedure Page | 13 (7) Personal privilege: The right of a member to address the Council on a question of personal privilege shall be limited to cases in which his or her integrity, character, or motives are assailed, questioned, or impugned. (8) Dissents and protests: Any member shall have the right to express dissent from or protest against any ordinance or resolution of the council and have the reason therefor entered upon the minutes. Such dissent or protest may be filed in writing, and presented to the council not later than the next regular meeting following the date of passage of the ordinance or resolution objected to. (9) Voting required: No member shall be excused from voting except for lack of information and except on matters involving the consideration of his or her own official conduct, or where his or her personal interests are involved in accordance with V.T.C.A. Local Government Code Ch. 171 (Vernon 2014), and in these instances he or she shall abstain. Any member prohibited from voting by personal interest shall announce this at the commencement of consideration of the matter and shall not enter into discussion or debate on any such matter, shall leave the meeting room, and shall file an affidavit of recusal. The member having briefly stated the reason for his or her request, the excuse from voting shall be made without debate. (10) Order of precedence of motions: a. The following motions shall have priority in the order indicated: 1. Adjourn (when unqualified) and is not debatable and may not be amended; 2. Take a recess (when privileged); 3. Raise a question of privilege; 4. Lay on the table; 5. Previous question (⅔ vote required); 6. Limit or extend limits of debate (⅔ vote required); 7. Postpone to a certain time; 8. Commit or refer; 9. Amend; 10. Postpone indefinitely; 11. Main motion. b. The first two motions are not always privileged. To adjourn shall lose its privilege character and be a main motion if in any way qualified. To take a recess shall be privileged only when other business is pending. c. A motion to adjourn is not in order: 1. When repeated without intervening business or discussion; 2. When made as an interruption of a member while speaking; 3. While a vote is being taken. d. Only certain motions may be amended as provided in the most current edition of Robert's Rules of Order, revised. A motion to amend shall be undebatable when the question to be amended is undebatable. (11) Reconsideration: A motion to reconsider any action of the council can be made not later than the next succeeding official meeting of the council. Such a motion can only be made by a member who voted with the prevailing side. It can be seconded by any member. In order to comply with the Texas Open Meetings Act, any council member who wishes to make such a motion at a meeting succeeding the meeting where the action was taken shall notify the city manager to place the item for reconsideration on the 662 City Council Rules of Procedure Page | 14 council agenda. No question shall be twice reconsidered, except by unanimous consent of the council, except that action related to any contract may be reconsidered at any time before the final execution thereof. A matter which was not timely reconsidered in the manner provided by this section or was reconsidered but the action originally taken was not changed by the council cannot be reintroduced to the council or placed on a council meeting agenda for a period of six (6) months unless this rule is suspended as provided for in these rules of procedure. (12) The previous question: When the previous question is moved and seconded, it shall be put as follows: "Shall the main question be now put?". There shall then be no further amendment or debate; except that nothing herein shall allow the previous question to be called prior to a least one opportunity for each member of the council to speak on the question before the council. Any pending amendments shall be put in their order before the main question. If the motion for the previous question is lost, the main question remains before the council. An affirmative vote of ⅔ of the council shall be required to move the previous question. To demand the previous question is equivalent in effect to moving "That debate now cease, and the council shall immediately proceed to vote on the pending motion". In practice, this is done with the phrase "Call for the question", or simply saying "Question". (13) Withdrawal of motions: A motion may be withdrawn, or modified, by its movant without asking permission until the motion has been stated by the presiding officer. If the movant modifies his or her motion, the seconding council member may withdraw his or her second. After the question has been stated, the movant shall neither withdraw it nor modify it without the consent of the council. The subject different from that under consideration shall be admitted under color of amendment. A motion to amend an amendment shall be in order, but one to amend an amendment to an amendment shall not be in order. (14) Appropriations of money: Before formal approval by the council of motions providing for appropriation of money, information must be presented to the council showing purpose of the appropriation. In addition, before finally acting on such an appropriation, the council shall obtain a report from the city manager as to the availability of funds and his or her recommendations as to the desirability of the appropriation. (15) Transfer of appropriations: At the request of the city manager, at any time during the fiscal year, the council may by resolution transfer an unencumbered balance of an appropriation made for the use of one department, division, or purpose; but no transfer shall be made of revenues or earnings of any non-tax supported public utility to any other purpose. (h) Creation of committees, boards and commissions. (1) Council committees: The council may, by resolution and as the need arises, authorize the appointment of council committees. Any committee so created shall cease to exist when abolished by resolution of the council. Council committees shall comply with the Texas Open Meetings Act, as may be amended, suspended, or otherwise modified in times of emergency. (2) Citizen boards, commissions, and committees: The council may create other citizen boards, commissions, and committees to assist in the conduct of the operation of the city government with such duties as the council may specify not inconsistent with the City Charter or Code. Creation of such boards, commissions, and committees and 663 City Council Rules of Procedure Page | 15 memberships and selection of members shall be by council resolution if not otherwise specified by the City Charter or Code. Any board, commission, or committee so created shall cease to exist when abolished by a resolution approved by the council. No committee so appointed shall have powers other than advisory to the council or to the city manager, except as otherwise specified by the Charter or Code. All citizen boards, commissions, and committees shall comply with the procedural requirements of the Texas Open Meetings Act, as may be amended, suspended, or otherwise modified in times of emergency. Any reference in this article to "citizen boards, commissions, and committees" includes citizen task forces and citizen ad hoc boards, commissions, and committees unless otherwise indicated herein. (3) Appointments: a. Individual city council members making nominations for members to citizen boards, commissions, and committees will consider interested persons on a citywide basis. b. The city council will make an effort to be inclusive of all segments of the community in the board, commission, and committee appointment process. City council members will consider ethnicity, gender, socio-economic levels, and other factors to ensure a diverse representation of Denton citizens. c. The city council will take into consideration an individual's qualifications, willingness to serve, and application information in selecting nominations for membership to each board, commission, and committee. d. In an effort to ensure maximum citizen participation, city council members will continue the general practice of nominating new citizens to replace board members who have served three (3) consecutive terms on the same board per the provisions of Denton Code of Ordinances, section 2-65. This provision does not apply to citizen task forces and citizen ad hoc committees. e. Each city council member will be responsible for making nominations for board, committee, and commission places assigned to him or her, which shall correspond to the city council member's place. Individual city council members will make nominations to the full city council for the governing body's approval or disapproval. (4) Rules of procedure: a. All board, commission, and committee members, including citizen board, commission, and committee members, shall comply with the provisions of article II of chapter 2 of the Code of Ordinances, as may be amended. All board, commission and committee members, including citizen board, commission, and committee members, shall be provided a copy of these rules of procedure and a copy of the City of Denton Handbook for Boards, Commissions and Committees, which shall govern operational procedures of all boards, commissions and committees, including citizen boards, commissions, and committees. All boards, commissions, and committees, including citizen boards, commissions and committees, shall comply with these rules as to the preparation of minutes of meetings, and such minutes shall be prepared in accordance with the policies and procedures of the city secretary. b. All citizen board, commission, and committee members shall comply with the procedural requirements of the V.T.C.A., Texas Government Code Chapter 551, also known as the "Texas Open Meetings Act" as they appear now or may be amended in the future, insofar as the procedural requirements have not been suspended during a time of emergency. Notice of all meetings shall be posted in compliance with the 664 City Council Rules of Procedure Page | 16 Texas Open Meetings Act and minutes and records will be maintained in accordance with requirements of the city secretary's office. Each citizen board, commission, and committee member shall be provided a copy of the Texas Open Meetings Act. Penalty provisions of the Texas Open Meetings Act shall only apply to citizen boards, commissions, and committees with rule making or quasi-judicial power, as set forth in the Texas Open Meetings Act and as interpreted by Texas Courts. c. Unless otherwise provided by law, the City Council and each board, commission, or committee, shall adopt a regular meeting schedule by no later than the body’s first meeting of the calendar year. All regular meeting schedules shall be sent to the City Secretary’s Office for official record keeping purposes upon adoption. Regular meeting schedules should include all planned meetings the body intends to have during the calendar year. (i) Votes required. Questions on which the voting requirement is varied by the Charter, State Statutes and these rules are listed below: (1) Charter and state statutory requirements: a. Charter amendment—Five (5) votes: Ordinances submitting proposed Charter amendments must be adopted by a two-thirds (⅔) vote of the council. (TEX. CONST. art. XI, § 3 and V.T.C.A. Local Government Code Ch. 9 (Vernon 2014.)) For a seven-member council, this means five (5) members must vote affirmatively. b. Levying taxes—Five (5) votes: Ordinances providing for the assessment and collection of certain taxes require the approval of two-thirds (⅔) of the members of the council (V.T.C.A. Tax Code § 302.101 (Vernon 2014)). c. Changing paving assessment plans—Five (5) votes: Changes in plans for paving assessment require a two-thirds (⅔) vote of the council (V.T.C.A. Transportation Code § 313.053(e) (Vernon 2014)). d. Changes in zoning ordinance or zoning classifications: In cases of a written protest of a change in a zoning regulation or zoning classification by the owners of twenty (20) percent or more either of the area of the lots included in such proposed change, or of the lots immediately adjoining the same and extending two hundred (200) feet therefrom, such amendment shall not become effective except by the favorable vote of three-fourths (¾) of all members of the city council; further, three-fourths (¾) of all the members of the city council is required to override the decision of the planning and zoning commission that a zoning change be denied (V.T.C.A. Local Government Code § 211.066 (Vernon 2014)) and section 35.3.4.C.(4) Denton City Code (Development Code)). ("All" members of the city council is construed to mean all who are qualified to vote on a matter, and any legal disqualification of a member could change the requisite number of votes required for passage. City of Alamo Heights v. Gerety et al., 264 S.W. 2d 778 (Ct. App. — San Antonio (1954)). e. Amendment of tax abatement policy: The guidelines and criteria adopted as the city's tax abatement policy may be amended or repealed by a vote of three-fourths (¾) of all members of the city council (V.T.C.A. Tax Code § 312.002(c) (Vernon 2014)). Severability clause. If any section, subsection, paragraph, sentence, clause, phrase or word in this section, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. 665 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 21-975,Version:1 AGENDA CAPTION Consider nominations/appointments to the City’s Boards,Commissions,and Committees:Planning &Zoning Commission. City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™666 City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: City Manager’s Office ICM: Sara Hensley DATE: May 25, 2021 SUBJECT Consider nominations/appointments to the City’s Boards, Commissions, and Committees: Planning & Zoning Commission. BACKGROUND On January 4, 2021, the 2020-2022 Boards & Commissions Screening & Appointment Process was presented and discussed with the City Council. This item is the first step in appointing members. Exhibit 2 includes those seats for the above-noted Boards, Commissions, and Committees for whom nominations have been received, nominees fully vetted and found to meet all necessary qualifications to serve on the respective board/commission/committee. As previously discussed, only those nominees who have been fully vetted and qualified will be presented for appointment. This is not a complete listing of nominees received to date as the vetting is still in progress for some or (re)nominations have not been received. EXHIBITS Exhibit 1 – Agenda Information Sheet Exhibit 2 – Nominations Sheet Respectfully submitted: Rosa Rios City Secretary City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 667 BOARD/COMMITTEE/COMMISSION COUNCIL PLACE NOMINATING CCM NOMINEE PRESENT TERM NEW TERM STATUS & QUALIFICATION OR PREFERENCE, IF ANY Planning & Zoning Commission 2 Beck-2 Eric Pruett N/A Unexpired September 1, 2019 through August 31, 2021 New BOARDS & COMMISSIONS ‐ NOMINATIONS LIST May 25, 2021 668 City of Denton Legislation Text City Hall 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com File #:ID 21-1009,Version:1 AGENDA CAPTION Consider appointments to City Council Committees,Development Code Review Committee,Dallas Regional Mobility Coalition,Discover Denton Advisory Board,Lake Ray Roberts P&Z Commission,and Denton County Leadership Teams (Behavioral Health, Homelessness, and Workforce Success). City of Denton Printed on 5/21/2021Page 1 of 1 powered by Legistar™669 City of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: City Manager’s Office ICM: Sara Hensley DATE: May 25, 2021 SUBJECT Consider appointments to City Council Committees, Development Code Review Committee, Dallas Regional Mobility Coalition, Discover Denton Advisory Board, Lake Ray Roberts P&Z Commission, and Denton County Leadership Teams (Behavioral Health, Homelessness, and Workforce Success). BACKGROUND During the work session held earlier in the day, City Council discussed the role of City Council Committees including other internal/external boards. Deliberations also included the Committees of Interest identified by each member of the City Council, applicable appointment processes, as well as proposed appointments to each applicable board/committee. This item will officiate the appointments as well as provide staff the direction needed for those external boards that require other official action by the City Council. Exhibit 2 is not available at this time but will be updated following the work session. The following boards/committees, members identified within the exhibit will not be part of the approval process, but rather, proposed appointments will be forthcoming at future meetings as applicable for each. • Community Justice Council [inactive as of 06/03/2019] • Denton County Transportation Authority (DCTA) o NOTE: DCTA reported this appointment expiring November 2021 • Downtown Denton Tax Increment Financing (TIF) reinvestment zone no. 1 • Economic Development Partnership Board • North Texas Commission (NTC) • Regional Transportation Council (RTC) • Tax Increment Reinvestment Zone No. 2 (Westpark TIRZ No. 2) • Texas Municipal Power Agency (TMPA) EXHIBITS Exhibit 1 – Agenda Information Sheet Exhibit 3 – Council Committee Narrative City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com 670 Exhibit 2 – Proposed Appointments (Not currently available) Respectfully submitted: Rosa Rios City Secretary 671 CITY COUNCIL COMMITTEES AGENDA COMMITTEE The Agenda Committee is composed of the Mayor, the Mayor Pro Tem, and the City Manager. The Agenda Committee reviews the City Manager’s proposed City Council agendas as to form and agenda content. AUDIT/FINANCE COMMITTEE The Audit/Finance Committee is composed of three Council Members. The City Manager, or his designee, is an ex-officio member. The duties and purpose of the Committee shall be to assist the Council in fulfilling its organizational oversight responsibilities relating to the audit function, the investment function and any other financial related activities as delegated by the City Council. COMMITTEE ON COMMUNITY ENGAGEMENT The Committee on Citizen Engagement is composed of three Council Members. The City Manager, or his designee, will provide guidance and assistance to the Committee. The duties and purpose of the Committee shall be to provide advice to the Council and/or staff regarding the timely distribution of accurate and complete information to Denton citizens and devise methods of engaging Denton citizens in the various processes of city government. COMMITTEE ON THE ENVIRONMENT The Committee on the Environment is composed of three Council Members. The duties of the Committee shall be to review, discuss, deliberate, and consider environmental issues and resources and make recommendations to the Council. The Committee will also deliberate and make recommendations regarding any other matter delegated to the Committee by the Council. COUNCIL AIRPORT COMMITTEE The Council Airport Committee is composed of three City Council members. The City Manager, or his designee, will provide guidance and assistance as needed. The duties and purpose of the Committee shall be to review, consider and make recommendations to the City Council on: the Airport Business Plan and Airport Master Plan; any airport infrastructure improvement or other major project impacting the airport; the acquisition, review, and consideration of grant funding for the airport; contracts and leases of airport property, including recommending appropriate terms to the City Council; long term financial planning and budgetary issues affecting the airport, and issues raised as a result of interface between citizens, airport tenants, or other interested parties. COUNCIL APPOINTEE PERFORMANCE REVIEW COMMITTEE The Council Appointee Performance Review Committee is composed of three Council Members, with the Director of Human Resources as an ex-officio member. The duties and purpose of the Committee shall be to assist the City Council in performance review of the City Council appointees and to ensure that the appointee’s job descriptions are accurate and properly reflect current job duties in order to make recommendations to the Council to assist the Council in evaluating the job performance of the council appointees. Additionally, the Committee will make recommendations regarding employment agreements, including renewals, of council appointee positions. 672 COMMUNITY PARTNERSHIP COMMITTEE The Hotel Occupancy Tax and Sponsorship Committee is composed of three Council Members. The duties and purpose of the Committee shall be to monitor allocation and use of both the hotel occupancy tax and sponsorship funds, ensuring HOT funds are being used to directly enhance and promote tourism and the hotel/ convention industry, ensuring the sponsorship funds are being used to further a charitable cause, economic or community growth and serve a public purpose in the best interest of the general welfare of the City of Denton, and recommend organizations to receive funding to the City Council. MOBILITY COMMITTEE The Mobility Committee is composed of three Council Members. The duties and purpose of the Committee shall be to review, consider and make recommendations to the City Council regarding any changes to the Mobility Plan, local transportation policy, and any items concerning regional transportation policies and activities. 673 EXTERNAL COUNCIL COMMITTEES COMMUNITY JUSTICE COUNCIL [Inactive as of 06/03/2019] The Community Justice Council is established according to Chapter 76 of the Texas Government Code. That Chapter indicates that a Justice Council has to be established as a prerequisite to establishing a community corrections facility. The Community Justice Council provides continuing policy guidance and direction for the development of criminal justice plans and community correction facilities and programs and conditions of community supervision. Among the members of the Justice Council is a council member of the most populous municipality in the County that the facility will serve. Membership: Because Inactive, unable to determine if this must be an elected official; but historically has been an elected official. DISCOVER DENTON ADVISORY BOARD The Discover Denton Advisory Board (initially established as the Convention and Visitors Bureau Advisory Board) was initiated in 1976 by the Denton Chamber of Commerce to promote events and attractions, provide hospitality education, and ensure a positive experience to Denton visitors. It operates via an agreement between the City of Denton and the Denton Chamber of Commerce. The Advisory Board makes recommendations to the Chamber of Commerce Board of Directors. Membership: Must be three (3) elected officials, at least two of whom must also serve on the Community Partnership Committee. DALLAS REGIONAL MOBILITY COALITION The Dallas Regional Mobility Coalition is a transportation advocacy group made up of cities, counties and transportation agencies in a five-county region (Dallas, Denton, Collin, Rockwall and Ellis) with a primary mission to advance critical mobility projects through advocacy efforts with state and federal elected officials and regional transportation agencies. The DRMC is governed by a 27-member board of directors representing cities, counties and transportation agencies in the greater Dallas area. It consists of seven members, one each from the cities of Carrollton, Garland, Grand Prairie, Irving, Mesquite, Plano and Richardson being either the Mayor or another elected official designated by the City Council; four members, designated by the Mayor of Dallas, being either two or three elected officials from the City of Dallas and one or two community leaders who are non-elected officials; four members, one each from Collin, Dallas, Denton, and Ellis County, being either the County Judge or another elected official designated by the County Judge; elected officials from those cities not represented in either of the first two categories; one community leader (non-elected official) appointed by the Dallas County Judge; four ex-officio members being the Texas Department of Transportation District 18 District Engineer, the Executive Director of the Texas Turnpike Authority, the Executive Director of the Dallas Area Rapid Transit Authority, the Staff Director of the Regional Transportation Council; and one business leader (non-elected official) appointed annually by the Legislative Coalition of the Dallas Area Chambers of Commerce. Membership: Must be the Mayor or another elected official. 674 DENTON COUNTY BEHAVIORAL HEALTH LEADERSHIP TEAM The Denton County Behavioral Health Leadership Team (DCBHLT) is composed of fifteen to thirty-three members, including one to two appointees from Denton City Council. Per the DCBHLT bylaws, “Cities/Towns should identify a council member, senior staff, executive, or community member” to serve on the team. Appointees shall serve at least one two-year term and attend six meetings in the calendar year. The purpose of the Denton County Behavioral Leadership Team (DCBHLT) is to convene as a policy making team tasked with improving the planning, coordination, oversight, and implementation required to create systems change, for behavioral health services in Denton County. Membership: May be an elected official, senior staff, executive, or community member. DENTON COUNTY HOMELESSNESS LEADERSHIP TEAM The Denton County Homelessness Leadership Team (DCHLT) is composed of seventeen to thirty-eight members, including one to two appointees from the City of Denton. Per the DCHLT bylaws, “Cities/Towns should identify a council member, senior staff, executive, or community member” to serve on the team. The DCHLT shall have one to two appointees from Law Enforcement. A member of city staff serves as an ex-officio member. Appointees shall serve at least one two-year term and attend six meetings in the calendar year. The purpose of the Denton County Homelessness Leadership Team (DCHLT) is to convene as a policy making team tasked with improving the planning, coordination, oversight, and implementation required to create systems change, for housing/homelessness initiatives in Denton County. Membership: May be elected official(s), senior staff, executive, or community member. DENTON COUNTY TRANSPORTATION AUTHORITY BOARD (DCTA) The Denton County Transportation Authority is governed by a five (5) voting-member Board which includes a representative from Denton, Lewisville, Highland Village, and two members from Denton County serving two-year terms. Each member city is permitted to have a primary and alternate representative. Denton County is permitted to have two primary and two alternate representatives. The Board adopts the annual operating budget and is responsible for setting policy. Membership: Elected officials may serve as board members; includes an alternate. Board members must have professional experience in the field of transportation, business, government, engineering or law. DENTON COUNTY WORKFORCE SUCCESS LEADERSHIP TEAM The Denton County Workforce Success Leadership Team (DCWSLT) is composed of twenty-seven to forty-two members, including one appointee from the City of Denton. Per the DCWSLT bylaws, “Cities/Towns should identify a council member, senior staff, executive, or community member” to serve on the team. The DCWSLT shall have one to two appointees from Economic Development Departments. Appointees shall serve at least one two-year term and attend twelve meetings in the calendar year. The purpose of the Denton County Workforce Success Leadership Team (DCWSLT) is to convene as a policy making team tasked with improving the planning, coordination, oversight, and implementation required to create systems change for workforce/employment initiatives in Denton County. Membership: May be an elected official, senior staff, executive, or community member 675 LAKE RAY ROBERTS PLANNING AND ZONING COMMISSION The Lake Ray Roberts Planning & Zoning Commission hears requests for zoning changes, special use permits, recreational park permits, sign permits, planned development applications and variances. The Mayor or his/her designee of each city for the territory extraterritorial jurisdiction of which includes any part of the Lake Ray Roberts lake area in the County. Membership: Must be the Mayor NORTH TEXAS COMMISSION The North Texas Commission is a public-private partnership of businesses, cities, counties, chambers of commerce, economic development entities and higher education institutions dedicated to advancing the vibrancy of the North Texas region. The North Texas Commission provides the resources to carry out programs that benefit the entire region and to address regional problems and opportunities. Membership: Prefer it be an elected official (historically the Mayor) otherwise a City employee; can appoint a proxy (historically the City Manager). REGIONAL TRANSPORTATION COUNCIL The North Central Texas Council of Governments has served as the Metropolitan Planning Organization (MPO) for the Dallas-Fort Worth Metropolitan Area. The Regional Transportation Council is the independent transportation policy body of the Metropolitan Planning Organization. The RTC consists of 44 members which include local elected or appointed officials from the metropolitan area and representatives from each of the area's transportation providers. The RTC oversees the metropolitan transportation planning process. Membership: Must be elected officials. TEXAS MUNICIPAL POWER AGENCY The Board of Directors assists in establishing policies, setting regulations, and overseeing the administration and management of the agency as well as approving and auditing the budget. The City of Denton has two representatives serve on the Board of Directors. Membership: Two representatives approved by the City Council who may, but need not necessarily be, members of the City Council and/or the Public Utilities Board. Once appointed by City Council, members may only be removed for cause in accordance with the Denton City Charter, Section 14.16. 676 OTHER COUNCIL COMMITTEES AND BOARDS DEVELOPMENT CODE REVIEW COMMITTEE The Development Code Review Committee is composed of three City Council members plus three Planning and Zoning Commissioners. The duties and purpose of the Committee shall be to review all proposed revisions to the Denton Development Code and make recommendation to the City Council regarding the proposed revisions. Membership: Per City ordinance, the Committee shall be comprised of three City Council Members (plus three Planning and Zoning Commissioners). ECONOMIC DEVELOPMENT PARTNERSHIP BOARD The Economic Development Partnership Board consists of twelve members: (1) two members from City Council at the time of their appointment, (2) two members from the Denton Chamber of Commerce Board of Directors at the time of their appointment who reside or work in the City, (3) two members who will be, or must be currently employed by a top 20 City of Denton ad valorem or sales tax payer and who reside or work in the City, (4) the President of UNT or his/her designee who does not have a city residency requirement; (5) the Chancellor and President of TWU or his/her designee who does not have a city residency requirement; (6) a member with knowledge or experience in general aviation-related matters with no financial interest at the Denton Enterprise Airport and who resides or works in the City, (7) a citizen of Denton with specific knowledge, skills and abilities to assist in the functions of the Economic Development Partnership Board; (8) a member nominated by the Denton Black Chamber of Commerce Board of Directors who resides or works in the City; (9) a member nominated by the Denton Hispanic Chamber of commerce who resides or works in the City. The City Manager, or his designee, the President of the Chamber, and the Superintendent of the Denton Independent School District, will serve as ex-officio members of the Board. The Board provides economic development policy guidance and makes recommendations to the City Council and Chamber of Commerce; reviews, considers and makes recommendations to the City Council regarding marketing and branding for the Denton Enterprise Airport; reviews, considers and makes recommendations to the City Council regarding Denton Enterprise Airport incentive policies as assigned by the City Council or requested by the City Manager; and acts as a recommending body to the City Council for specific airport economic development incentives as assigned by the City Council or requested by the City Manager and permitted by City and State law. Membership: Per City ordinance, two members of the Board shall be City Council Members. DOWNTOWN DENTON TAX INCREMENT FINANCING (TIF) REINVESTMENT ZONE NO. 1 The Downtown Denton Tax Increment Financing (TIF) Reinvestment Zone No. 1 Board is composed of seven members: two City Council members, two are either property owners of property located within the Tax Increment Reinvestment Zone or residents whose primary residence is located within the Tax Increment Reinvestment Zone, two are either business owners of businesses located within the Tax Increment Reinvestment Zone or members of the Denton Chamber of Commerce Board of Directors, and one a qualified voter of the City of Denton. 677 The Board makes recommendations to the City Council concerning the administration of the Zone; prepares and adopts a project plan and Tax Increment Financing Reinvestment Zone financing plan for the Zone and submits the plans to the City Council for approval; prepares, implements and monitors such project and financing plans for the Tax Increment Financing Reinvestment Zone as the City Council considers advisable including the submission of an annual report on the status of the Zone. Membership: Per City ordinance, two members shall be City Council Members. TAX INCREMENT REINVESTMENT ZONE NO. 2 (WESTPARK TIRZ NO. 2) The Tax Increment Reinvestment Zone Number Two Board consists of fourteen members: twelve members of the Economic Development Partnership Board, one member appointed by the governing body of Denton County, and one member appointed by the “developer”, Rayzor Investments, LLP. The Board makes recommendations to the City Council concerning the administration of the Zone; prepare and adopt a project plan and Tax Increment Reinvestment Zone financing plan for the Zone and submit the plans to the City Council for approval; prepare, implement and monitor such project plan and financing plan for the Zone as the Council considers advisable, including the submission of an annual report on the status of the Zone. Membership: Per City ordinance, board membership consists of members of the EDP Board, of which two members shall be City Council Members. 678